YC - Audit Report / Information 2023

YEM CHIO CO., LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS WITH INDEPENDENT

AUDITORS’ REPORT

DECEMBER 31, 2023 AND 2022

Notice to Readers

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

The Board of Directors and Shareholders Yem Chio Co., Ltd.

Opinion

We have audited the accompanying parent company only financial statements of Yem Chio Co., Ltd. (the “Company”), which comprise the parent company only balance sheets as of December 31, 2023, and the parent company only statements of comprehensive income, changes in equity and cash flows for the year then ended, and the notes to the parent company only financial statements, including a summary of material accounting policies (collectively referred to as the “parent company only financial statements”).

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter ) , the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2023, and its parent company only financial performance and cash flows for the year then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

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

Key audit matters for the Company’s 2023 parent company only financial statements are stated as follows:

Valuation of inventory

The Company is mainly engaged in the manufacture, processing, and sales of packaging materials, including BOPP film, adhesives and polystyrene sheets, as well as land development and construction. The Company’s inventories were measured at the lower of cost and net realisable value. Considering the Company’s inventories were significant to the parent company only financial statements and the determination of net realizable value for the inventories involves judgements and estimates, and the aforementioned matters exist in the Company, we identified the evaluation of inventories as a key audit matter.

Our audit procedures including (but are not limited to) assessing the appropriateness of the management’s accounting policy for inventory evaluation; evaluating and testing the effectiveness of relevant internal control; sampling the inventory aging report by checking the inventory entry dates are consistent with relevant supportive documents; recalculating the inventory obsolescence loss based on the aging report; reviewing and calculating the reasonableness of the inventory net realizable value report; and participating in the annual inventory count to identify if there is obsolete or impaired inventory. For the inventory of land development and construction business, obtaining the valuation data in relation to the net realisable value of inventories to ascertain whether the data source, assumptions and methods adopted by the Company are reasonable. Testing data in order to check the reasonableness of the net realisable value of construction-in-progress and land held for building.

Please refer to Notes 4, 5 and 6(6) of the parent company only financial statements for the accounting policies, significant accounting estimates and the information about inventories, respectively.

Valuation of investment property

As of December 31, 2023, the fair value of investment property was NT$2,165,699 thousand, constituting 9% of total assets. The Company’s investment property is valued by external experts using the fair value model. Given that the valuation process is subject to significant assumptions on discount rate and future lease income and has material effect on the fair value measurement. We identified the evaluation of investment property as a key audit matter.

Our audit procedures including (but are not limited to) assessing the qualifications and independence of appointed external appraisers; obtaining and reviewing reasonableness of appraisal report, including valuation method and key appraisal assumptions and estimates, etc.; assessing reasonableness of the lease income and rental growth rate are reasonable by referencing to the market rental rate for the investment properties using the income approach.

Please refer to Notes 4, 5 and 6(9) of the parent company only financial statements for the accounting policies, significant accounting estimates and the information about investment property, respectively.

Other matter

We did not audit the financial statements of certain investees accounted for under the equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these investments, is based solely on the reports of the other auditors. Total accounted for under the equity method of these investees amounted to NT$1,207,009 thousand, constituting 4% of total assets as at December 31, 2023, and the comprehensive loss amounted to (NT$254) thousand, constituting (0)% of total comprehensive income for the year ended December 31, 2023.

The parent company only financial statements of the Company for the year ended December 31, 2022 were audited by other auditor, who expressed an unqualified opinion with emphasis of matter and other matter section on those statements on March 15, 2023.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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

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

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

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

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

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

Liu, Jung Chin Hsieh, Sheng-An Ernst & Young, Taiwan March 14, 2024

Notice to Readers

The accompanying parent company only financial statements are not intended to present the financial position and results of operations 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 parent company only financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying parent company only financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or the Standards on Auditing of the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

Yem Chio Co., Ltd.

Parent Company Only Balance Sheets

December 31, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars)

Assets	Notes	December 31, 2023	December 31, 2023	December 31, 2022	December 31, 2022
		AMOUNT	%	AMOUNT	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1120 Financial assets at fair value through other comprehensive income - current 1136 Financial assets at amortised cost - current 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1210 Other receivables - related parties 1220 Current tax assets 130X Inventories 1470 Other current assets 11XX Total current assets Non-current assets 1517 Financial assets at fair value through other comprehensive income - non-current 1535 Financial assets at amortised cost - non-current 1550 Investments accounted for using the equity method 1600 Property, plant and equipment, net 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets, net 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets	6(1) 6(2) 6(3) and 8 6(4) and 8 6(5) and 17 6(5) and 17 7 7 5, 6(6), 7 and 8 7 6(3) 6(4) and 8 6(7) 6(8) and 8 6(18) 5, 6(9), 6(18), 7 and 8 6(21) 8	338,716 $ - 1,214,833 397,079 38,145 236,311 111,136 20,418 637,600 202 9,104,511 565,176	1 - 5 2 - 1 - - 3 - 37 2	558,201 $ 81 959,378 392,067 31,759 260,126 109,989 20,423 1,030,746 202 6,361,685 522,347	3 - 4 2 - 1 1 - 5 - 29 2
		12,664,127	51	10,247,004	47
		5,597 59,147 6,191,621 3,479,364 56,059 2,165,699 122 69,610 4,965	- - 26 14 - 9 - - -	5,597 104,793 6,130,083 3,218,674 59,174 2,123,774 144 52,765 5,046	- - 28 15 - 10 - - -
		12,032,184	49	11,700,050	53
		24,696,311 $	100	21,947,054 $	100

(Continued)

Yem Chio Co., Ltd.

Parent Company Only Balance Sheets

December 31, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars)

Liabilities and Equity	Notes	December 31, 2023	December 31, 2023	December 31, 2022	December 31, 2022
		AMOUNT	%	AMOUNT	%
Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Lease liabilities - current 2320 Current portion of long-term liabilities 2399 Other current liabilities 21XX Total current liabilities Non-current liabilities 2530 Corporate bonds payable 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common stock 3130 Certificate of entitlement to new shares from convertible bonds Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury stocks 3XXX Total equity 3X2X Total liabilities and equity	6(10) and 8 6(11) 6(16) and 7 7 7 6(18) 6(12), 6(13) and 8 6(12) and 8 6(13) and 8 6(21) 6(18) 6(7) and 6(14) 6(15) 6(15) 6(15) 6(8) 6(15)	4,187,493 $ 400,000 676,908 95,044 107,735 17,952 114,682 70,199 22,370 2,591 3,307,502 41,132	17 2 3 - - - 1 - - - 13 -	2,471,092 $ 550,000 593,201 40,079 108,905 14,129 128,489 754 28,761 2,534 2,448,500 6,996	11 3 3 - - - 1 - - - 11 -
		9,043,608	36	6,393,440	29
		- 2,673,278 89,223 54,255 838,403	- 12 - - 3	411,778 2,964,750 88,583 56,846 893,949	2 14 - - 4
		3,655,159	15	4,415,906	20
		12,698,767	51	10,809,346	49
		6,582,467 66,857 2,718,738 568,926 511,756 1,868,613 94,532 414,345) (	27 - 11 2 2 8 1 2) (	6,404,897 10,000 2,638,722 467,875 477,708 1,549,179 3,672 414,345) (	29 - 12 2 2 7 1 2) (
		11,997,544	49	11,137,708	51
		24,696,311 $	100	21,947,054 $	100

The accompanying notes are an integral part of these parent company only financial statements.

Yem Chio Co., Ltd.

Parent Company Only Statements of Comprehensive Income

For the Years Ended December 31, 2023 And 2022

(Expressed in thousands of New Taiwan dollars, except for earnings per share)

Items	Notes	2023		2022
		AMOUNT	%	AMOUNT	%
4000 Net revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6000 Total operating expenses 6900 Operating (loss) profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit or loss of associates accounted for using the equity method 7000 Total non-operating income and expenses 7900 Net income before tax 7950 Income tax expense 8200 Net Income Other comprehensive income (loss) Components of other comprehensive income that will not be reclassified to profit or loss 8311 Actuarial gains on defined benefit plans 8316 Unrealised gains (losses) from equity instruments investments measured at fair value through other comprehensive income 8320 Share of other comprehensive income (loss) of associates which will not be reclassified subsequently to profit or loss 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Other comprehensive income (loss) that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8370 Share of other comprehensive income (loss) of associates which may be reclassified subsequently to profit or loss 8360 Other comprehensive income (loss) that will be reclassified to profit or loss 8300 Total other comprehensive income (loss) for the year 8500 Total comprehensive income for the year Earnings per share (in dollars) Basic earnings per share 9750 Basic earnings per share 9850 Diluted earnings per share	6(16) and 7 6(6), 6(19) and 7 6(14), 6(17), 6(18) and 6(19) 7 6(9), 6(18), 6(20) and 7 6(20) 6(20) and 7 6(7) 6(21) 6(14) 6(21) 6(22)	2,657,952 $ 2,600,404) (	100 98) (	3,642,524 $ 3,248,693) (	100 89) (
		57,548	2	393,831	11
		112,368) ( 121,812) (	4) ( 5) (	227,257) ( 124,090) (	6) ( 4) (
		234,180) (	9) (	351,347) (	10) (
		176,632) (	7) (	42,484	1
		20,404 268,244 35,356 69,272) ( 740,118	1 10 1 3) ( 28	12,334 192,867 124,386 68,726) ( 795,961	- 5 4 2) ( 22
		994,850	37	1,056,822	29
		818,218 17,013) (	30 1) (	1,099,306 61,480) (	30 1) (
		801,205 $	29	1,037,826 $	29
		2,758 $ 395,498 22,119 552) (	- 15 1 -	3,373) ( 213,299) ( 20,342) ( 675	- 6) ( 1) ( -
		419,823	16	236,339) (	7) (
		27,823) ( 22,025) (	1) ( 1) (	304,097 14,987	8 1
		49,848) (	2) (	319,084	9
		369,975 $	14	82,745 $	2
		1,171,180 $	43	1,120,571 $	31
		$	1.30	$	1.72
		$	1.21	$	1.58

The accompanying notes are an integral part of these parent company only financial statements.

Yem Chio Co., Ltd.

Parent Company Only Statements of Changes in Equity

For the Years Ended December 31, 2023 and 2022

Capital	Capital	Capital surplus		Retained Earnings			Other Equity Interest		Treasurystocks	Total equity
Common stock	Certificate of entitlement to new shares from convertible bonds		Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income	Revaluation propertysurplus
6,380,540 $	2,333 $	2,384,602 $	359,243 $	490,572 $	1,256,999 $	642,002) ( $	96,041 $	439,576 $	414,345) ( $	10,353,559 $
- -	- -	- -	- -	- -	1,037,826 38,503	- 328,415	- 284,173) (	- -	- -	1,037,826 82,745
-	-	-	-	-	1,076,329	328,415	284,173) (	-	-	1,120,571
- - - - - - - - 24,357 - -	- - - - - - 32,024 - 24,357) ( - -	- - - - - 232,209 3,214 17) ( - 18,423 291	- 108,632 - - - - - - - - -	- - 12,864) ( - - - - - - - -	622,566) ( 108,632) ( 12,864 10,871) ( 54,944) ( - - - - - -	- - - - - - - - - - -	- - - 10,871 54,944 - - - - - -	- - - - - - - - - - -	- - - - - - - - - - -	622,566) ( - - - - 232,209 35,238 17) ( - 18,423 291
6,404,897 $	10,000 $	2,638,722 $	467,875 $	477,708 $	1,549,179 $	313,587) ( $	122,317) ( $	439,576 $	414,345) ( $	11,137,708 $
6,404,897 $	10,000 $	2,638,722 $	467,875 $	477,708 $	1,549,179 $	313,587) ( $	122,317) ( $	439,576 $	414,345) ( $	11,137,708 $
- -	- -	- -	- -	- -	801,205 7,687	- 51,208) (	- 413,496	- -	- -	801,205 369,975
-	-	-	-	-	808,892	51,208) (	413,496	-	-	1,171,180
- - - - - - - 177,570 -	- - - - - - 234,427 177,570) ( -	- - - - - 43,512 18,081 - 18,423	- 101,051 - - - - - - -	- - 34,048 - - - - - -	625,787) ( 101,051) ( 34,048) ( 264,895 6,533 - - - -	- - - - - - - - -	- - - 264,895) ( 6,533) ( - - - -	- - - - - - - - -	- - - - - - - - -	625,787) ( - - - - 43,512 252,508 - 18,423
6,582,467 $	66,857 $	2,718,738 $	568,926 $	511,756 $	1,868,613 $	364,795) ( $	19,751 $	439,576 $	414,345) ( $	11,997,544 $

The accompanying notes are an integral part of these parent company only financial statements.

Yem Chio Co., Ltd.

Parent Company Only Statements of Cash Flows For the Years Ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Net income before tax Adjustments Adjustments to reconcile profit Depreciation Amortisation Net loss on financial assets at fair value through profit or loss Interest expenses Interest income Share of profit or loss of associates accounted for using the equity method `(`Gain) loss on disposal of property, plant and equipment Gain on fair value adjustment of investment property Employees' compensation Dividend income Changes in operating assets and liabilities Changes in operating assets Notes receivable, net Accounts receivable, net Accounts receivable - related parties Other receivables Other receivables - related parties Inventories Prepayments Other current assets Changes in operating liabilities Notes payable Current contract liabilities Accounts payable Accounts payable - related parties Other payables Other payables - related parties Other current liabilities Other non-current liabilities Cash inflow (used in) generated from operations Interest received Dividend received Interest paid Income taxes paid Net cash (used in) provided by operating activities	2023	2022
	818,218 $ 204,175 22 65 69,272 20,404) ( 740,118) ( 60) ( 41,925) ( - 181,212) ( 6,386) ( 23,815 - 508 2,278 2,614,430) ( 28,160 70,988) ( 54,965 83,707 1,129) ( 3,823 29,338) ( 754) ( 34,136 335	1,099,306 $ 203,085 22 48,470 68,726 12,334) ( 795,961) ( 20 25,498) ( 5,575 107,062) ( 37,268 287,135 136,895 6,174) ( 2,460) ( 585,220) ( - 9,201) ( 36,386) ( 113,306 42,621) ( 2,565) ( 12,751) ( 5,388) ( 3,808) ( 55) (
	2,383,265) ( 19,901 181,212 182,760) ( 35,037) (	352,324 28,311 205,381 159,180) ( 92,993) (
	2,399,949) (	333,843

(Continued)

Yem Chio Co., Ltd.

Parent Company Only Statements of Cash Flows For the Years Ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES 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 investments accounted for using equity method Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Decrease (increase) in financial assets at amortised cost Decrease in other receivables - related parties Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in other non-current assets Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term borrowings (Decrease) increase in short-term notes and bills payable Increase`(`decrease) in other payables - related parties Proceeds from long-term borrowings Repayment of long-term borrowings Repayment of lease liabilities Payment of cash dividends Gains from exercise of disgorgement Net cash provided by (used in) financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at the beginning of year Cash and cash equivalents at the end of year	2023	2022
	297) ( 295 72,105) ( 1,127,946) ( 1,267,704 40,633 1,122,636 463,394) ( 60 80	212,132) ( 298,328 - 923,599) ( 1,141,612 91,105) ( 1,373,182 59,448) ( 95 2,582) (
	767,666	1,524,351
	1,716,401 150,000) ( 70,000 1,875,049 1,469,021) ( 3,844) ( 625,787) ( -	1,256,500) ( 140,000 355,000) ( 1,174,000 732,512) ( 1,282) ( 622,566) ( 291
	1,412,798	1,653,569) (
	219,485) ( 558,201	204,625 353,576
	338,716 $	558,201 $

The accompanying notes are an integral part of these parent company only financial statements.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements For the Years Ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. History and organization

Yem Chio Co., Ltd. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company is primarily engaged in researching, designing, manufacturing, processing, and sales of petrochemical and packaging materials, including BOPP film and adhesive tape, as well as land development and construction. On December 1, 2022, the Company conducted a short-form merger with the whollyowned subsidiary, Chuang-Yi Investment Co., Ltd. Under the merger, the Company was the surviving company while Chuang-Yi Investment Co., Ltd. was the dissolved company.

The Company had been listed as Second (TIGER) category securities on Gre Tai Securities Market since April, 2000, and had been listed as general securities since April, 2001. Since January 21, 2008, the Company had been listed on the Taiwan Stock Exchange.

2. Date and procedures of authorization of financial statements for issue

The parent company only financial statements were authorised for issuance by the Board of Directors on March 14, 2024.

3. Newly issued or revised standards and interpretations

(1) Changes in accounting policies resulting from applying for the first time certain standards and amendments

The Company applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended (collectively referred to as the “IFRS”), which are recognised by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after 1 January 2023. The adoption of these new standards and amendments had no material impact on the Company.

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which are endorsed by FSC, but not yet adopted by the Company as at the end of the reporting period are listed below:

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
a	Classification of Liabilities as Current or Non-current – Amendments to IAS 1	1 January 2024
b	Lease Liabilityin a Sale and Leaseback – Amendments to IFRS 16	1 January2024
c	Non-current Liabilities with Covenants – Amendments to IAS 1	1 January2024
d	Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7	1 January2024

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The abovementioned standards and interpretations were issued by IASB and endorsed by FSC so that they are applicable for annual periods beginning on or after January 1, 2024. The Company assessed above standards and interpretations have no material impact on the Company.

(3) Standards or interpretations issued, revised or amended, by IASB which are not endorsed by FSC, and not yet adopted by the Company As of the end of the reporting period are listed below:

Items	New, Revised or Amended Standards and Interpretations	Effective Date Issued byIASB
1	IFRS 10_Consolidated Financial Statements_and IAS 28_Investments_ in Associates and Joint Ventures– Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
2	IFRS 17_Insurance Contracts_	January1,2023
3	Lack of Exchangeability– Amendments to IAS 21	January1,2025

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Company’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. The Company assessed above standards and interpretations have no material impact on the Company.

4. Summary of material accounting policies

The material accounting policies are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Statement of compliance

The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”).

(2) Basis of preparation

The Company prepared parent company only financial statements in accordance with Article 21of the Regulations, which provided that the profit or loss and other comprehensive income for the period presented in the parent company only financial statements shall be the same as the profit or loss and other comprehensive income attributable to stockholders of the parent presented in the consolidated financial statements for the period, and the total equity presented in the parent company only financial statements shall be the same as the equity attributable to the parent company presented in the consolidated financial statements. Therefore, the Company accounted for its investments in subsidiaries using equity method and, accordingly, made necessary adjustments.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The parent company only financial statements have been prepared on a historical cost basis, except for financial instruments, defined benefit liabilities and investment property that have been measured at fair value. The parent company only financial statements are expressed in thousands of New Taiwan Dollars (“NT$”) unless otherwise stated.

(3) Names and relationship of related parties

Names and relationshipof relatedparties	Abbreviated companyname	Note
Subsidiaries of the Company Yem Chio (BVI) Co., Ltd. ACHEM Technology Corporation Xin Chio Co., Ltd. Chuang-Yi Investment Co., Ltd. UINN Hotel Co., Ltd. Wong Chio Development, Ltd. Wong Chio (SAMOA) Co., Ltd. Subsidiary of YEM CHIO Wan Chio (BVI) Co., Ltd. Subsidiaries of ACHEM Technology Corporation ASIACHEM International Corporation ACHEM Opto-Electronic Corporation Valueline Investment Corporation ACHEM Technology Holdings Limited Pantech Tape Co., Ltd. Subsidiaries of Xin Chio Co., Ltd. Master Package (Shanghai) Material Technology Co., Ltd. ACHEM (Tianjin) Adhesive Product Co., Ltd. ACHEM Technology (Wuhan) Limited Subsidiary of WAN CHIO Wan Chio Petrochemical (Jiangsu) Co., Ltd. Subsidiary of ASIACHEM International Corporation Fuzhou Fuda Plastic Products Co., Ltd. Subsidiaries of ACHEM Technology Holdings Limited ACHEM Technology China ACHEM Technology Americas Ltd. ACHEM Technology (M) Sdn. Bhd. ACHEM Technology (Vietnam) Ltd. ACHEM Technology (India) Ltd. Asia Plastics (BVI) Co., Ltd.	YEM CHIO - - - UINN HOTEL - WONG CHIO WAN CHIO - - - - - - - - - - - - - - - ASIA PLASTICS	Note 3 Note 7 Note 6 Note 4 Note 1 Note 2

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Names and relationshipof relatedparties	Abbreviated companyname	Note
Subsidiary of ASIA PLASTICS ACHEM Technology (Ningbo) Co., Ltd. Subsidiaries of ACHEM Technology China ACHEM Technology (Chengdu) Limited ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. Foshan Inder Adhesive Product Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. Landmart Global Limited Subsidiary of ACHEM Technology Americas Ltd. ACHEM Industry America Inc. Subsidiary of ACHEM Opto-Electronic Corporation AOE Holding Limited Subsidiary of LANDMART ACHEM Technology (Shanghai) Limited Associate Winda Opto-Electronics Co., Ltd Yanrun Development Co., Ltd. King Sun New Tech Co., Ltd. Other related parties Li, Qi-Zheng Li, Shu-Wei Key management of the Company Li, Zhi-Xian	- - - - - - LANDMART - - - - - - - - -	Note 5 Note 5 Note 8

Note 1 : Fuzhou Fuda Plastic Products Co., Ltd. has ceased operations. Note 2 : ACHEM Technology (India) Ltd. underwent liquidation in May 2017. Note 3: Chuang-Yi Investment Co., Ltd. was dissolved and merged with the Company since the effective date of the merger, December 1, 2022.

Note 4 : ACHEM (Tianjin) Adhesive Product Co., Ltd. completed the liquidation and deregistration in December 2022. Note 5 : In October 2017, ACHEM Technology China increased its investment in its whollyowned subsidiary, LANDMART, in the amount of US$28 million and then transferred its 100% equity interest in ACHEM Technology (Shanghai) Limited to LANDMART. As of December 31, 2022, ACHEM Technology (Shanghai) Limited has not yet completed the registration.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Note 6 : In May 2023, ACHEM Technology Corporation acquired 100% shareholding of Pantech Tape Co., Ltd. for a cash consideration of $41,160. The registration of the change was completed on May 5, 2023.
Note 7 : ACHEM Technology Corporation entered into a shares repurchase agreement with ACHEM Opto-Electronic Corporation's non-controlling interest. ACHEM Technology Corporation acquired an additional 8.6% of outstanding shares of ACHEM Opto-Electronic Corporation for a total cash consideration of USD 700 thousand. The shareholding ratio increased from 78.48% to 87.09%, resulting in an increase in capital surplus - recognition of changes in ownership interest in subsidiaries by $15,277. The registration of the change was completed on September 5, 2022. ACHEM Technology Corporation entered into a shares purchase agreement with ACHEM Opto-Electronic Corporation's non-controlling interest. ACHEM Technology Corporation acquired an additional 12.91% shareholding of ACHEM Opto-Electronic Corporation for a total cash consideration of USD 1,280 thousand. The shareholding ratio increased from 87.09% to 100%. The registration of the change was completed on October 13, 2023.
Note 8 : In December 2023, the Company acquired 27.5% shareholding of King Sun New Tech Co., Ltd. for a cash consideration of $72,105. The registration of the change was completed on January 24, 2024.
(4) Foreign currency transactions

The Company’s parent company only financial statements are presented in NT$, which is also the Company’s functional currency.

Transactions in foreign currencies are initially recorded by the Company entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

A. Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.
B. Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instruments.
C. Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation is recognised initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognised in other comprehensive income, any exchange component of that gain or loss is recognised in other comprehensive income. When a gain or loss on a non-monetary item is recognised in profit or loss, any exchange component of that gain or loss is recognised in profit or loss.

(5) Translation of financial statements in foreign currency

The assets and liabilities of foreign operations are translated into NT$ at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average rate for the period. The exchange differences arising on the translation are recognised in other comprehensive income and accumulated in the foreign operation of equity.

(6) Current and non-current distinction

An asset is classified as current when:

A. The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle
B. The Company holds the asset primarily for the purpose of trading
C. The Company expects to realize the asset within twelve months after the reporting period
D. The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

A liability is classified as current when:

A. The Company expects to settle the liability in its normal operating cycle
B. The Company holds the liability primarily for the purpose of trading
C. The liability is due to be settled within twelve months after the reporting period
D. The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

(7) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and short-term, highly liquid time deposits (including ones that have maturity within three months) or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(8) Financial instruments

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

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognised initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

A. Financial instruments: Recognition and Measurement

The Company accounts for regular way purchase or sales of financial assets on the trade date.

The Company classified financial assets as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

(a) the Company’s business model for managing the financial assets and
(b) the contractual cash flow characteristics of the financial asset.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Financial asset measured at fair value through profit or loss

Financial assets were classified as measured at amortised cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognised in profit or loss which includes any dividend or interest received on such financial assets.

Financial asset measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
(b) 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.

Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

(a) A gain or loss on a financial asset measured at fair value through other comprehensive income recognised in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognised or reclassified.
(b) When the financial asset is derecognised the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.
(c) Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:
(i) Purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortised cost of the financial asset from initial recognition.
(ii) Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortised cost of the financial asset in subsequent reporting periods.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognised by an acquirer in a business combination to which IFRS 3 applies, the Company made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognised in profit or loss unless the dividends clearly represent a recovery of part of the cost of investment.

Financial assets measured at amortised cost

A financial asset is measured at amortised cost if both of the following conditions are met and presented as note receivables, trade receivables, financial assets measured at amortised cost and other receivables etc., on balance sheet as at the reporting date:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and
(b) 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.

Such financial assets are subsequently measured at amortised cost and is not part of a hedging relationship. A gain or loss is recognised in profit or loss when the financial asset is derecognised, through the amortisation process or in order to recognise the impairment gains or losses.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(a) purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortised cost of the financial asset from initial recognition.
(b) financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortised cost of the financial asset in subsequent reporting periods.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

B. Impairment of financial assets

The Company recognises a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortised cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognised in other comprehensive income and not reduce the carrying amount in the balance sheet.

The Company measures expected credit losses of a financial instrument in a way that reflects:

(a) an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
(b) the time value of money; and
(c) reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measures as follow:

(a) At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Company measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.
(b) At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.
(c) For trade receivables or contract assets arising from transactions within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.
(d) For lease receivables arising from transactions within the scope of IFRS 16, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

At each reporting date, the Company needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

C. Derecognition of financial assets

A financial asset is derecognised when:

(a) The rights to receive cash flows from the asset have expired
(b) The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred
(c) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognised in other comprehensive income, is recognised in profit or loss.

D. Financial liabilities and equity

Classification between liabilities or equity

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

Compound instruments

The Company evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Company assesses if the economic characteristics and risks of the put and call options contained in the convertible bonds are closely related to the economic characteristics and risk of the host contract before separating the equity element.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

For the liability component excluding the derivatives, its fair value is determined based on the rate of interest applied at that time by the market to instruments of comparable credit status. The liability component is classified as a financial liability measured at amortised cost before the instrument is converted or settled.

For the embedded derivative that is not closely related to the host contract (for example, if the exercise price of the embedded call or put option is not approximately equal on each exercise date to the amortised cost of the host debt instrument), it is classified as a liability component and subsequently measured at fair value through profit or loss unless it qualifies for an equity component. The equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. Its carrying amount is not remeasured in the subsequent accounting periods. If the convertible bond issued does not have an equity component, it is accounted for as a hybrid instrument in accordance with the requirements under IFRS 9 Financial Instruments .

Transaction costs are apportioned between the liability and equity components of the convertible bond based on the allocation of proceeds to the liability and equity components when the instruments are initially recognised.

On conversion of a convertible bond before maturity, the carrying amount of the liability component being the amortised cost at the date of conversion is transferred to equity.

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortised cost upon initial recognition.

Financial liabilities at amortised cost

Financial liabilities measured at amortised cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the effective interest rate method amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(9) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

(a) In the principal market for the asset or liability, or
(b) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

(10) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads allocated based on normal operating capacity. It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

Costs of buildings and land held for sale are stated at acquisition cost basis during construction. In accordance with IFRSs, the related interest expense is capitalised.

(11) Investments accounted for using the equity method

The Company’s investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Company has significant influence.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Under the equity method, the investment in the associate is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Company’s share of net assets of the associate. After the interest in the associate is reduced to zero, additional losses are provided for, and a liability is recognised, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the Company’s related interest in the associate.

When changes in the net assets of an associate occur and not those that are recognised in profit or loss or other comprehensive income and do not affect the Company’s percentage of ownership interests in the associate, the Company recognises such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognised will be reclassified to profit or loss at the time of disposing the associate on a prorata basis.

When the associate issues new stock, and the Company’s interest in an associate is reduced or increased as the Company fails to acquire shares newly issued in the associate proportionately to its original ownership interest, the increase or decrease in the interest in the associate is recognised in Additional Paid in Capital and Investment accounted for using the equity method. When the interest in the associate is reduced, the cumulative amounts previously recognised in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognised is reclassified to profit or loss on a pro rata basis when the Company disposes the associate.

The financial statements of the associate are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognises the amount in the ‘share of profit or loss of an associate’ in the statement of comprehensive income. In determining the value in use of the investment, the Company estimates:

(1) Its share of the present value of the estimated future cash flows expected to be generated by the associate, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or
(2) The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate is not separately recognised, it is not tested for impairment separately by applying the requirements for impairment testing goodwill.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Upon loss of significant influence over the associate, the Company measures and recognises any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognised in profit or loss.

(12) Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Company recognised such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced. When a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Buildings	1-60 years
Machinery and equipment	1-25 years
Transportation equipment	1-8 years
Office equipment	1-10 years

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognised in profit or loss.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(13) Investment property

An investment property is stated initially at its cost and measured subsequently using the fair value model. A gain or loss arising from a change in the fair value of investment property is recognised in profit or loss.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(14) Leases

The Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Company assesses whether, throughout the period of use, has both of the following:

A. the right to obtain substantially all of the economic benefits from use of the identified asset; and
B. the right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate standalone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximising the use of observable information.

Company as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Company recognises right-of-use asset and lease liability for all leases which the Company is the lessee of those lease contracts.

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

A. fixed payments (including in-substance fixed payments), less any lease incentives receivable;
B. variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
C. amounts expected to be payable by the lessee under residual value guarantees;
D. the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and
E. payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Company measures the lease liability on an amortised cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

A. the amount of the initial measurement of the lease liability;
B. any lease payments made at or before the commencement date, less any lease incentives received;
C. any initial direct costs incurred by the lessee; and
D. an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

For subsequent measurement of the right-of-use asset, the Company measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the rightof-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The Company applies IAS 36 Impairment of Assets to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Company accounted for as short-term leases or leases of lowvalue assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statement of comprehensive income.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

For short-term leases or leases of low-value assets, the Company elects to recognise the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

Company as a lessor

At inception of a contract, the Company classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Company recognises assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

For a contract that contains lease components and non-lease components, the Company allocates the consideration in the contract applying IFRS 15.

The Company recognises lease payments from operating leases as rental income on either a straight-line basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognised as rental income when incurred.

(15) Impairment of non-financial assets

The Company assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cashgenerating unit’s (“CGU”) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or cashgenerating unit’s recoverable amount. A previously recognised impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

An impairment loss of continuing operations or a reversal of such impairment loss is recognised in profit or loss.

(16) Treasury shares

Own equity instruments which are reacquired (treasury shares) are recognised at cost and deducted from equity. Any difference between the carrying amount and the consideration is recognised in equity.

(17) Revenue recognition

A. Sales of goods

(a) Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.
(b) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

B. Land development and resale

(a) The Company develops and sells residential properties. Revenue is recognised when control over the property has been transferred to the customer. The properties have generally no alternative use for the Company due to contractual restrictions. However, an enforceable right to payment does not arise until legal title has passed to the customer. Therefore, revenue is recognised at a point in time when the legal title has passed to the customer.
(b) The revenue is measured at an agreed upon amount under the contract. The consideration is due when legal title has been transferred. While deferred payment terms may be agreed in rare circumstances, the deferral never exceeds twelve months. The transaction price is therefore not adjusted because the contract does not include a significant financing component.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(18) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(19) Post-employment benefits

All regular employees of the Company are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee’s name in the specific bank account and hence, not associated with the Company Therefore, fund assets are not included in the Company’s the parent company only financial statements.

For the defined contribution plan, the Company will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognises expenses for the defined contribution plan in the period in which the contribution becomes due.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Remeasurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognised as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur. Past service costs are recognised in profit or loss on the earlier of:

A. the date of the plan amendment or curtailment, and
B. the date that the Group recognises restructuring-related costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

(20) Income taxes

Income tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognised in other comprehensive income or directly in equity is recognised in other comprehensive income or equity and not in profit or loss.

The income tax for undistributed earnings is recognised as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders’ meeting.

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

A. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
B. In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

A. Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
B. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognised accordingly.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

5. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s parent company only financial statements require management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

(1) Judgement

None.

(2) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

A. Inventories

As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. The Company evaluates the amounts of normal inventory consumption and obsolete inventories on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

B. Investment property

The fair value valuation of investment property relies on the real estate appraisers to determine future cash flows, discount rate and profit or loss which is likely to accrue or incur afterwards based on the experts’ judgement, utilisation of the assets and industrial characteristics. Any changes of economic circumstances or estimates due to the change of the Company’s strategy might affect the value of investment property.

6. Contents of significant accounts

(1) Cash and cash equivalents

Cash on hand and revolving funds Checking accounts and demand deposits Total	December 31, 2023	December 31, 2022
	$399 338,317	$398 557,803
	$338,716	$558,201

The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

The Company’s Cash and cash equivalents that were pledged as collateral were reclassified to financial assets at amortized cost. Details are provided in Notes 6(4) and 8.

(2) Financial assets and liabilities at fair value through profit or loss

Assets items	December 31, 2023	December 31, 2022
Current items: Financial assets designated as at fair value through profit or loss Derivative financial instruments - bonds payable	$-	$81

As of December 31, 2023 and 2022, the convertible bonds issued by the Company amounting to $0 and $81, respectively, was recognised under “financial assets designated as at fair value through profit or loss on initial recognition” due to the compound instrument feature.

For the years ended December 31, 2023 and 2022, the Company has recognised the changes in fair value amounting to $(63) and $(660), respectively, which are not attributable to the changes in credit risk of the assets.

For the terms of the 8th and 9th secured convertible bonds issued by the Company, refer to Note 6(12). Information relating to credit risk of financial assets are provided in Note 12(4).

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(3) Financial assets at fair value through other comprehensive income

Current items: Equity instruments Listed stocks Valuation adjustments Total Non-current items: Equity instruments Unlisted shares Valuation adjustments Total	December 31, 2023	December 31, 2022
	$1,100,492 114,341	$975,640 (16,262)
	$1,214,833	$959,378
	$1,719 3,878	$1,719 3,878
	$5,597	$5,597

The Company has selected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $1,220,430 and $964,975 as of December 31, 2023 and 2022, respectively.

In consideration of the Company’s investment strategy, the Company disposed, and derecognized partial equity instrument investments measured at fair value through other comprehensive income. Details on derecognition of such investments for the years ended December 31, 2023 and 2022 are as follows:

The fair value of the investments at the date of derecognition The cumulative gain (loss) on disposal reclassified from other equity to retained earnings	Year ended December 31	Year ended December 31
	2023	2022
	$1,267,704 264,895	$1,141,612 (10,871)

The Company’s dividend income related to equity instrument investments measured at fair value through other comprehensive income for the years ended December 31, 2023 and 2022 are as follows:

Related to investments held at the end of year Related to investments derecognized during the year Dividend income recognised during the year	Year Ended December 31	Year Ended December 31
	2023	2022
	$174,222 6,990	$63,604 43,458
	$181,212	$107,062

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Details of the ’s financial assets at fair value through other comprehensive income pledged to others as collateral are provided in Note 8. Information relating to credit risk is provided in Note 12(4).

(4) Financial assets at amortised cost

Current items: Restricted demand deposits Restricted time deposits Total Non-current items: Restricted demand deposits Restricted time deposits Total	December 31, 2023	December 31, 2022
	$212,849 184,230	$207,807 184,260
	$397,079	$392,067
	$23,383 35,764	$47,011 57,782
	$59,147	$104,793

As of December 31, 2023 and 2022, the demand deposits under current items were restricted domestic pre-sold house project trust funds, which may not be drawn during the term of the trust.

Details of the Company’s financial assets at amortised cost pledged to others as collateral are provided in Note 8. Information relating to credit risk is provided in Note 12(4).

(5) Notes and accounts receivable

Notes receivable Less: loss allowance Total Accounts receivable Less: loss allowance Total	December 31, 2023	December 31, 2022
	$38,145 -	$31,759 -
	$38,145	$31,759
	$252,143 (15,832)	$275,958 (15,832)
	$236,311	$260,126

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The ageing analysis of accounts receivable and notes receivable that were past due but not impaired is as follows:

December 31,2023	December 31,2023	December 31,2022	December 31,2022
Accounts receivable	Notes receivable	Accounts receivable	Notes receivable
$194,593 43,816 5,361 5,827 2,546 (15,832)	$38,145 - - - - -	$201,569 43,973 29,468 - 948 (15,832)	$31,759 - - - - -
$236,311	$38,145	$260,126	$31,759

The above ageing analysis was based on past due date.

No notes and accounts receivable were pledged. Loss allowance and information relating to credit of risk are provided in Note 6(17) and Note 12(4).

(6) Inventories

Packaging material sales channel business: Raw materials and supplies Finished goods Subtotal Land development & construction business: Construction-in-progress Land held for building Prepayments of land Subtotal Total	December 31, 2023	December 31, 2022
	$180,805 189,777	$215,093 183,014
	370,582	398,107
	6,234,680 2,198,660 300,589	5,566,134 397,444 -
	8,733,929	5,963,578
	$9,104,511	$6,361,685

The cost of inventories recognised in expenses amounts to $2,600,404 and $3,248,693 for the years ended December 31, 2023 and 2022.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Amount of borrowing costs capitalised as part of inventory were $128,397 and $94,300 and the range of rates for such capitalisation were 1.99%-2.72% and 1.98%-2.88% for the years ended December 31, 2023 and 2022, respectively.

Inventories that were pledged to others as collateral is provided in Note 8.

(7) Investments accounted for using the equity method

Details are listed below:

	December 31,2023	December 31,2023	December 31,2022	December 31,2022
Investees	Amount	Ownership%	Amount	Ownership%
Investments in subsidiaries:
ACHEM Technology Corporation	$5,731,324	100.00%	$5,768,267	100.00%
Wong Chio Development, Ltd.	302,149	100.00%	294,887	100.00%
Xin Chio Co., Ltd.	82,199	38.86%	66,929	41.76%
UINN HOTEL	(35,918)	100.00%	(28,190)	100.00%
YEM CHIO	(762,942)	100.00%	(826,083)	100.00%
Investments in associates:
Yanrun Development Co., Ltd.	(5,478)	40.00%	(3,188)	40.00%
KingSun New Tech Co.,Ltd.	75,949	27.50%	-	-
Total	$5,387,283		$5,272,622
Recorded under assets Recorded under liabilities Total	$6,191,621 (804,338) $5,387,283		$6,130,083 (857,461) $5,272,622

Refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2023 for the information regarding the Company’s subsidiaries.

The share of profit of these subsidiaries and associates accounted for using the equity method amount to $740,118 and $795,961 for the years ended December 31, 2023 and 2022, respectively.

As of December 31, 2023 and December 31, 2022, the above associates had no contingent liabilities, capital commitments or guarantees.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(8) Property, plant and equipment

Land	Buildings	Machinery and equipment	Transportatio n equipment	Office equipment	Construction in progress and equipment awaiting examination	Total
$723,524 -	$1,716,425 (617,037)	$3,137,884 (1,793,882)	$2,136 (1,798)	$48,472 (42,213)	$45,163 -	$5,673,604 (2,454,930)
$723,524	$1,099,388	$1,344,002	$338	$6,259	$45,163	$3,218,674
$723,524 - 312,175 - -	$1,099,388 - 97,279 (143) (42,272)	$1,344,002 - 35,519 - (155,507)	$338 - - - (107)	$6,259 - 2,234 - (3,174)	$45,163 463,394 (447,207) (1,501) -	$3,218,674 463,394 - (1,644) (201,060)
$1,035,699	$1,154,252	$1,224,014	$231	$5,319	$59,849	$3,479,364
$1,035,699 -	$1,813,704 (659,452)	$3,171,477 (1,947,463)	$2,136 (1,905)	$50,706 (45,387)	$59,849 -	$6,133,571 (2,654,207)
$1,035,699	$1,154,252	$1,224,014	$231	$5,319	$59,849	$3,479,364
$723,524 -	$1,708,295 (575,084)	$3,096,223 (1,638,551)	$2,136 (1,655)	$47,177 (38,205)	$37,949 -	$5,615,304 (2,253,495)
$723,524	$1,133,211	$1,457,672	$481	$8,972	$37,949	$3,361,809
$723,524 - - - - -	$1,133,211 - - 8,130 - (41,953)	$1,457,672 (115) 42,392 (3) (155,944)	$481 - - - - (143)	$8,972 - - 1,293 - (4,006)	$37,949 59,448 - (51,815) (419) -	$3,361,809 59,448 (115) - (422) (202,046)
$723,524	$1,099,388	$1,344,002	$338	$6,259	$45,163	$3,218,674
$723,524 -	$1,716,425 (617,037)	$3,137,884 (1,793,882)	$2,136 (1,798)	$48,472 (42,213)	$45,163 -	$5,673,604 (2,454,930)
$723,524	$1,099,388	$1,344,002	$338	$6,259	$45,163	$3,218,674

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

No borrowing cost was capitalised as part of property, plant and equipment for the years ended December 31, 2023 and 2022.

In June 2011, ACHEM Technology Corporation revalued its assets in accordance with the laws and regulations. The gross revaluation increment in the amount of $569,967, net of provision for land revaluation increment tax of $228,975, was recorded as “Unrealised revaluation increment” in the amount of $340,992, under other equity adjustments. The Company recognised the “Unrealised revaluation increment” into special reserve amounting to $170,769 in proportion to shares held.

Information about the property, plant and equipment that were pledged to others as collaterals are provided in Note 8.

(9) Investment property

The Company’s investment property mainly comprises office buildings and hotels located in Neihu District, Zhongzheng District, Shihlin District, Taipei City, etc. The Company earns rental income from leasing and the lease terms are between 1 to 13 years.

At January 1 Gain on fair value adjustments At December 31 Rental income from investment property Less: Direct operating expenses arising from the investment property that generated rental income during the year Direct operating expenses arising from the investment property that did not generate rental income during the year Total	2023	2022
	$2,123,774 41,925	$2,098,276 25,498
	$2,165,699	$2,123,774
	Year Ended	December 31
	2023	2022
	$24,542 (5,369) (405)	$29,414 (5,398) (407)
	$18,768	$23,609

As of December 31, 2023 and 2022, the related assumptions are as follows:

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The location, valuation method, appraisal firm, appraiser and appraisal date are shown below:

Object Location Valuation method Appraisal firm Appraiser Effective date for appraisal	December 31, 2023	December 31, 2022
	Office building and hotel Neihu District, Zhongzheng District, Shihlin District, Taipei City Income approach PANASIA Real Estate Appraisers Firm YANG, MIN-AN December 31, 2023	Office building and hotel Neihu District, Zhongzheng District, Shihlin District, Taipei City Income approach PANASIA Real Estate Appraisers Firm YANG, MIN-AN December 31, 2022

The information on the average leasing rate for the years ended December 31, 2023 and 2022, changes in income generated in the past, and comparison between local rents and rents for objects similar to the Company’s office buildings and plant is provided in the table below:

Estimated rents (in dollars/per ping /monthly) Local rents and rent quotes for similar objects Income Average leasing rates	Year Ended	December 31
	2023	2022
	$1,053-$1,404 Approximate to estimated rents $1,429-$14,165 89%-100%	$1,012-$1,472 Approximate to estimated rents $1,429-$17,606 89%-100%

The fair value of the Company’s office buildings and hotels is measured using the discounted cash flow analysis of income approach. Valuation is based on local rents and rents of similar objects, which are used to determine the annual increase range in the rents. Net rental income for the next 10 years is estimated based on idling loss. The estimated net rental income plus the ending disposal value is the future cash inflow, which is calculated to the appraisal date by using appropriate discount rate. Future cash outflow is estimated based on the Company’s current operations and possible future changes and future cash outflow refers to expenses directly related to operations, such as land value tax, house tax, insurance fees, management fees and repair expense that were actually incurred for the year.

Discount rate range is set in the table below. Discount rates are based on the interest rate for a two-year deposit of a small amount, as posted by the Chunghwa Post Co. Ltd., plus 0.75 percentage points. Risk premium is determined based on liquidity, risk, value increment and the difficulty of management.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Discount rates	December 31, 2023	December 31, 2022
	2.41%-2.80%	2.46%-2.67%

The information on the Company’s investment property is provided in Note 12(7).

Information about the investment property that was pledged to others as collateral is provided in Note 8.

(10) Short-term borrowings

Unsecured bank borrowings Secured bank borrowings Total Range of the interest rates	December 31, 2023	December 31, 2022
	$2,311,000 1,876,493	$1,350,092 1,121,000
	$4,187,493	$2,471,092
	December 31, 2023	December 31, 2022
	1.70%-2.11%	1.65%-2.02%

As of December 31, 2023 and 2022, details of assets pledged as collateral for short-term borrowings are provided in Note 8.

(11) Short-term bills payable

Commercial paper Range of the interest rates	December 31, 2023	December 31, 2022
	$400,000	$550,000
	2.04%-2.10%	1.438%-2.275%

(12) Bonds payable

Domestic convertible corporate bonds payable Less: Discount on bonds payable Total Less: Bonds payable - current portion Net	December 31, 2023	December 31, 2022
	$162,900 (1,398)	$418,500 (6,722)
	161,502 (161,502)	411,778 -
	$-	$411,778

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

A. The terms of the domestic secured convertible corporate bonds by the Company are as follows:

8th domestic secured 9th domestic secured convertible corporate bonds convertible corporate bonds Principal amount $500,000 $500,000 Face rate 0% 0% Effective rate 0.93% 0.93% Outstanding period 5 years 5 years Maturity date June 14, 2024 June 14, 2024 Guarantee banks Mega International Commercial Bank First Bank Collateral Cash in banks of $102,530 Cash in banks of $102,530 Repayment at The bonds along with yield to maturity The bonds along with yield to maturity maturity annual rate of 0.25% are repayable in full annual rate of 0.25% are repayable in full by cash at face value at maturity. by cash at face value at maturity. Redemption From the date after three months of the From the date after three months of the bonds issue (September 15, 2019) to 40 bonds issue (September 15, 2019) to 40 days (May 5, 2024) before the maturity days (May 5, 2024) before the maturity date. Convertible corporate bonds will be date. Convertible corporate bonds will be redeemed based on the rule for issuance redeemed based on the rule for issuance and conversion of convertible bonds if and conversion of convertible bonds if one one of the following criteria is met: From of the following criteria is met: From the the date after three months of the bonds date after three months of the bonds issue issue (September 15, 2019) to 40 days (September 15, 2019) to 40 days (May 5, (May 5, 2024) before the maturity date. 2024) before the maturity date. Convertible corporate bonds will be Convertible corporate bonds will be redeemed based on the rule for issuance redeemed based on the rule for issuance and conversion of convertible bonds if and conversion of convertible bonds if one one of the following criteria is met: of the following criteria is met:

(a) The closing price of the Company's common shares is above the then conversion price by 30% for 30 consecutive trading days in the centralized market.

(a) The closing price of the Company's common shares is above the then conversion price by 30% for 30 consecutive trading days in the centralized market.

(b) The outstanding balance of the bonds (b) The outstanding balance of the bonds is less than 10% of total issue amount. is less than 10% of total issue amount. Put options The bondholders have the right to require The bondholders have the right to require the Company to redeem any bonds at face the Company to redeem any bonds at face value plus 0.25% interest during the value plus 0.25% interest during the period period from the date after issuance to 30 from the date after issuance to 30 days days before three years. before three years.

Conversion price (dollars/per share) (Adjusted) $10.50 $10.50 Conversion period During the period from the date after During the period from the date after three three months of issuance of bonds to the months of issuance of bonds to the maturity date. maturity date. Converted amount $424,700 $425,000 Redeemed amount $- $- Repurchased amount $- $-

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

With regards to the issuance of convertible bonds, the equity conversion options of 8th and 9th issuances amounting to $29,091 was separated from the liability components and was recognised in “capital surplus - stock options” in accordance with IAS 32. As of December 31, 2023 and 2022, the balance of “Capital surplus - stock options” changed to $4,372 and $11,808, due to execution of conversion from bonds into common stock and bonds matured. The fair value of put and call options embedded in bonds payable was separated from the value of bonds payable, and was recognised in “financial assets at fair value through profit or loss” in accordance with IFRS 9.

(13) Long-term borrowings

Long-term bank borrowings Secured borrowings Unsecured borrowings Subtotal Less: Current portion - within one year or one operating cycle Total Range of the interest rates	December 31, 2023	December 31, 2022
	$4,819,278 1,000,000	$3,913,250 1,500,000
	5,819,278	5,413,250
	(3,146,000)	(2,448,500)
	$2,673,278	$2,964,750
	2.03%-3.14%	1.43%-2.88%

A. In October 2020, the Company entered into a syndicated loan agreement with a syndicated banking group consisting of Land Bank of Taiwan and others for a period of 5 years. The Company is allowed to settle the borrowings and use the working capital if the total amount is within the scope of $1.59 billion pursuant to the agreement. The primary terms of the agreement are as follows:
(a) Tranche A: Non-revolving line of $1,100,000.
(b) Tranche B: Non-revolving line of $390,000.
(c) Tranche C: Non-revolving line of $100,000.
(d) The Company’s revolving credit facility is subject to the following terms and financial covenants:
- i. The Company shall pledge land serial No. 4 and 5, Section 1, Fuduxin section, Xinzhuang District, New Taipei City as collateral for tranche B and C.
- ii. The Company on each annual consolidated financial statements is required to maintain the following financial ratios:

Liability ratio (total liabilities/consolidated tangible net worth) of not higher than 300%; interest coverage ((income before tax + depreciation + amortisation + interest expense)/interest expense) of at least 150%; consolidated tangible net worth of not less than $7 billion.

(e) As of December 31, 2023 and 2022, the amount drawn were both $1,205,000.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

B. In March 2021, the Company entered into a syndicated loan agreement with a syndicated banking group consisting of Taiwan Cooperative Bank and others for a period of 5 years. The Company is allowed to settle the borrowings and use the working capital if the total amount is within the scope of $3.6 billion pursuant to the agreement. The primary terms of the agreement are as follows:
(a) Tranche A: Non-revolving line of $1,100,000.
(b) Tranche B: Revolving line of $2,500,000. The proceeds of the loan were used to increase medium-term working capital. The credit facility will be reduced after three years from the first drawdown date, and will be further reduced on the same date of each succeeding year. The reduction of the credit facility will be done in three phases as follows: a 15% reduction for the first phase, 20% reduction for the second phase and 65% reduction for the third phase.
(c) The Company’s revolving credit facility is subject to following terms and financial covenants:
- i. The Company shall pledge land, plant and auxiliary facilities, machinery and equipment, and related auxiliary equipment at Changhua Coastal Industrial Park as collateral of Tranche A.
- ii. The Company on each semi-annual and annual consolidated financial statements is required to maintain the following financial ratios:
  - Current ratio (current assets/current liabilities) of at least 100%; liability ratio ((total liabilities + contingent liabilities)/(total stockholders’ equity - intangible assets)) of not higher than 300%; interest coverage ((income before tax + depreciation + amortisation + interest expense)/interest expense) of at least 150%; consolidated tangible net worth of not less than $7 billion.
(d) As of December 31, 2023 and 2022, the amount drawn were $1,880,000 and $2,600,000, respectively.
C. There was no violation of the loan covenant as of December 31, 2023 and 2022.
D. In addition to the collaterals provided as stated in Note 8, as of December 31, 2023, the Company had issued guarantee notes totalling $13,833,115 for the bank loans.
E. The Company’s borrowings should be paid in full by January 2032 at the latest in accordance with the contracts.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(14) Post-employment benefits

The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contribute monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions to cover the deficit by next March.

Present value of defined benefit obligations Fair value of plan assets Net defined benefit liability	December 31, 2023	December 31, 2022
	$29,831 (3,040)	$35,701 (6,043)
	$26,791	$29,658

Movements in net defined benefit liabilities are as follows:

Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
$35,701 88 428	$(6,043) - (72)	$29,658 88 356
36,217	(6,115)	30,102
- (2,732)	(26) -	(26) (2,732)
(2,732)	(26)	(2,758)
33,485	(6,141)	27,344
- (3,654)	(553) 3,654	(553) -
$29,831	$(3,040)	$26,791

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
$31,632 48 221	$(5,107) - (36)	$26,525 48 185
31,901	(5,143)	26,758
- (1,225) 5,025	(427) - -	(427) (1,225) 5,025
3,800	(427)	3,373
35,701	(5,570)	30,131
-	(473)	(473)
$35,701	$(6,043)	$29,658

The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2023 and 2022 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	Year Ended December 31	Year Ended December 31
	2023	2022
	1.20%	1.20%
	2.00%	2.00%

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

For the years ended December 31, 2023 and 2022, assumptions regarding future mortality rate were both estimated in accordance with the 6th Taiwan Standard Ordinary Experience Mortality Table, respectively. Future mortality rate of the Company and domestic subsidiaries was set based on the improved Taiwan’s published annuity table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

Discount rate	Discount rate	Future salaryincreases	Future salaryincreases
Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
$(471)	$483	$404	$ (396)
$(588)	$604	$509	$(498)

The sensitivity analysis above was arrived at based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2024 amounted to $601.

As of December 31, 2023, the weighted average duration of that retirement plan is 7 years.

Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2023 and 2022 were $8,454 and $8,460, respectively.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(15) Equities

A. Common stock

As of December 31, 2023 and 2022, the Company’s authorized capital were both $10,000,000 (including reserve for issuance of employee share options of $40,000), consisting of 1,000,000 thousand shares of ordinary stock, and the paid-in capital were $6,582,467 and $6,404,897 with a par value of $10 (in dollars) per share, divided into 658,247 thousand shares and 640,490 thousand shares. Each share has one voting right and a right to receive dividends.

Movements in the number of the Company’s ordinary shares (include bond conversion entitlement certificates and deduct treasury stocks) outstanding in thousand shares for the years ended December 31, 2023, and 2022 are as follows:

At January 1 Conversion of convertible corporate bonds At December 31	December 31, 2023	December 31, 2022
	607,345 23,443	604,143 3,202
	630,788	607,345

For the year ended December 31, 2023, convertible bonds amounting to $255,600 in total par value were requested for conversion into 23,443 thousand ordinary shares. As of December 31, 2023, the amount of 66,857 thousand ordinary shares was recorded under ‘certificate of entitlement to new shares from convertible bonds’ because the registration of the change has not yet been completed.

For the year ended December 31, 2022, convertible bonds amounting to $594,100 in total par value were requested for conversion into 3,202 thousand ordinary shares. As of December 31, 2022, the amount of 1,000 thousand ordinary shares was recorded under ‘certificate of entitlement to new shares from convertible bonds’ because the registration of the change has not yet been completed. The registration of the change was completed in 2023.

B. Capital surplus

Share premium Stock options Others Total	December 31, 2023	December 31, 2022
	$1,805,940 9,236 903,562	$1,780,424 16,672 841,626
	$2,718,738	$2,638,722

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

According to the Company Act, the capital reserve shall not be used except for making good the deficit of the Company. When a Company incurs no loss, it may distribute the capital reserves related to the income derived from the issuance of new shares at a premium or income from endowments received by the Company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

C. Treasury shares
(a) As of December 31, 2023 and 2022, the Company held treasury shares were both $414,345, divided into 34,144 thousand shares.
(b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.
(c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.
(d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired. Treasury shares to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition.
(e) Details of the Company’s common stock held by the subsidiaries as at December 31, 2023 and 2022 are as follows:

Name of companyholdingthe shares	Reason for reacquisition	Number of Shares (thousand shares)	Carrying amount
YEM CHIO ACHEM Technology Holdings Limited Valueline Investment Corporation Total	Investment Investment Investment	16,822 1,194 406	$223,108 15,838 5,049
		18,422	$243,995

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

D. Retained earnings and dividend policies

(a) In accordance with the Company’s Articles of Incorporation, the annual net profit should be used initially to pay all taxes and to cover any accumulated deficit; 10% of the annual net profit should be set aside as legal reserve; and setting aside an additional special reserve pursuant to Article 41 of ROC Securities Exchange Act. The remainder, if any, shall be distributed which will be proposed by the Board of Directors and approved by the stockholders. If the aforementioned purposes or reasons of setting aside special reserve no longer apply, the Company should reverse and recognise such special reserve as distributable, and be distributed in accordance with this Article. The Company authorises the Board of Directors to distribute earnings in cash or dividends and bonuses from capital surplus by the special resolution; and in addition thereto a report of such distribution shall be submitted to the shareholders during their meeting.
(b) As the Company operates in a mature industry and is in the stable profit stage with sound financial structure, it has a steady dividend pay out ratio policy. According to the policy, after setting aside legal and special reserve, the remainder shall be appropriated as dividends, and cash dividends shall account for at least 10% of the total dividends distributable.
(c) Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.
(d) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
(e) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(f) The Company’s appropriations of 2021 earnings for cash dividends had been approved through majority vote by the Board of Directors on March 25, 2022, and has been approved by shareholders on June 17, 2022. The appropriations of 2021 earnings were as follows:

Legal reserve Reversal of special reserve Cash dividends Total	Year ended December 31,2021	Year ended December 31,2021
	Amount	Dividend per share(in dollars)
	$108,632 (12,864) 622,566	$1.00
	$718,334

(g) The Company’s appropriations of 2022 earnings for cash dividends had been approved through majority vote by the Board of Directors on March 15, 2023, and has been approved by shareholders on June 16, 2023. The appropriations of 2022 earnings were as follows:

Legal reserve Special reserve Cash dividends Total	Year ended December 31,2022	Year ended December 31,2022
	Amount	Dividend per share(in dollars)
	$101,051 34,048 625,787	$1.00
	$760,886

(h) Event after the balance sheet date

The appropriation of 2023 earnings had been proposed by the Board of Directors on March 14, 2024. Details are as follows:

Special reserve Legal reserve Cash dividends Total	Year ended December 31,2023	Year ended December 31,2023
	Amount	Dividend per share(in dollars)
	$108,032 48,980 650,688	$1.00
	$807,700

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

As of March 14, 2024, the Company’s’ distribution of 2023 earnings, apart from cash dividends resolved by the Board of Directors and only requiring reporting to the shareholders' meeting, other distribution have not yet been resolved at the shareholders' meeting.

(i) Please refer to Note 6(19) on employee remuneration and directors' remuneration.

(16) Operating revenue

A. Disaggregation of revenue

The Company’s revenue from contracts with customers during the years ended December 31, 2023 and 2022 can be segmented by major product lines as follow:

Year ended December 31,2023	Year ended December 31,2023	Year ended December 31,2023
Packaging materials business segment	Real estate business segment	Total
$1,911,236 746,716	$- -	$1,911,236 746,716
$2,657,952	$-	$2,657,952
$2,657,952 -	$- -	$2,657,952 -
$2,657,952	$-	$2,657,952
Packaging materials business segment	Real estate business segment	Total
$2,889,851 752,673	$- -	$2,889,851 752,673
$3,642,524	$-	$3,642,524
$3,642,524 -	$- -	$3,642,524 -
$3,642,524	$-	$3,642,524

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

B. Contract balances

The Company has recognised the following revenue-related contract liabilities:

Contract liabilities - Advance sales receipts Contract liabilities - Pre-sold house Total	December 31, 2023	December 31, 2022	January 1, 2022
	$7,953 668,955	$10,555 582,646	$13,289 466,606
	$676,908	$593,201	$479,895

For the years ended December 31, 2023 and 2022, revenue recognised that was included in the contract liability balance at the beginning of the year amounted to $10,687 and $10,838, respectively.

(17) Expected credit losses

A. The Company measures the loss allowance of its account receivables at an amount equal to lifetime expected credit losses. The Company used the loss rates calculated based on historical and timely information to assess the default possibility of accounts receivable. As of December 31, 2023 and 2022, the provision matrix are as follows:

individual	Group	Group	Total
	Notpast due	Up to 90 days past due
100% $10,475 10,475 individual			$252,143 15,832 Total
	Notpast due	Up to 90 dayspast due
100% $10,475 10,475	0.15% $201,569 2,415	0.37%-3.66% $63,914 2,942	$275,958 15,832

Note: The Company’s notes receivable were not past due.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

B. The movements in loss allowance for notes and accounts receivable for the years ended December 31, 2023 and 2022 are as follows:

At January 1, 2023 Provision (reversal) of impairment loss At December 31, 2023 At January 1, 2022 Provision (reversal) of impairment loss At December 31, 2022	Notes receivable	Accounts receivable
	$- -	$15,832 -
	-	$15,832
	$- -	$15,832 -
	$-	$15,832

(18) Lease

A. Company as a lessee

The Company leases various assets including land. Rental contracts are typically made for periods of 19 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

The Company’s leases effect on the financial position, financial performance and cash flows are as follow:

(a) Right-of-use assets

Land	December 31, 2023	December 31, 2022
	$56,059	$59,174

For the years ended December 31, 2023 and 2022, the Company’s additions to rightof-use assets amounting to $0 and $60,213, respectively.

(b) Lease liabilities

Current Non-current Lease liabilities	December 31, 2023	December 31, 2022
	$2,591 54,255	$2,534 56,846
	$56,846	$59,380

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Interest expenses on lease liabilities, recognised for the years ended December 31, 2023 and 2022, are provided in Note 6(20)C Finance costs. For the maturity analysis of lease liabilities are provided in Note 12(5) Liquidity Risk Management.

Land	Year ended December 31	Year ended December 31
	2023	2022
	$3,115	$1,039

(d) Income and costs relating to leasing activities

The expense relating to short-term leases	Year ended December 31	Year ended December 31
	2023	2022
	$3,152	$3,233

(e) Cash outflow relating to leasing activities

For the years ended December 31, 2023 and 2022, the Company’s total cash outflows for leases amounting to $6,996 and $4,515, respectively.

B. Company as a lessor

Please refer to Note 6(9) for details on the Company’s owned investment properties and investment properties held by the Company as right-of-use assets. Leases of owned investment properties are classified as operating leases as they do not transfer substantially all the risks and rewards incidental to ownership of underlying assets.

The Company leases various assets including land and buildings. Rental contracts are typically made for periods of 1 to 13 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

For the years ended December 31, 2023 and 2022, the Company recognised rent income in the amount of $31,121 and $34,880, respectively, based on the operating lease agreement, which does not include variable lease payments.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The maturity analysis of the lease payments under the operating leases is as follows:

2023 2024 2025 2026 2027 2028 After 2029 Total	December 31, 2023	December 31, 2022
	$- 16,011 9,693 8,473 4,686 3,992 3,000	$10,836 15,675 11,268 5,351 7,219 - -
	$45,855	$50,349

(19) The Company's employee benefits, depreciation and amortisation expenses incurred for the years ended December 31, 2023 and 2022 are as follows:

			Year ended December 31	Year ended December 31	Year ended December 31
		2023			2022
	Operation costs	Operation expenses	Total	Operation costs	Operation expenses	Total
Employee benefits expense
Wages and salaries	$ 140,202	$ 65,132	$ 205,334	$ 144,760	$ 69,017	$ 213,777
Labor and health insurance	15,316	6,952	22,268	15,471	6,497	21,968
Pension	5,238	3,660	8,898	5,420	3,273	8,693
Directors transportation expenses	-	432	432	-	510	510
Other employee benefit expenses	7,058	1,141	8,199	6,943	1,286	8,229
Depreciation	191,467	12,708	204,175	192,350	10,735	203,085
Amortisation	-	22	22	-	22	22

Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to offset prior years’ operating losses. For the remainder, if any, at least 0.5% shall be distributed as employees’ compensation and the Board of Directors is authorised to determine the distribution of directors’ remuneration based on the usual industry standard but shall not exceed 1%. Have the profit distributable as employees’ compensation in the form of shares or in cash; after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution is submitted to the shareholders’ meeting.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

For the years ended December 31, 2023 and 2022, employees’ compensation was accrued at $2,757 and $5,575, respectively; while no directors’ remuneration was accrued. The aforementioned amount was recognised in salary expenses.

The employees’ compensation for the year ended December 31, 2022 resolved by the Board of Directors amounted to $5,524. The difference of $(51) between the amount resolved by the Board of Directors and the amount of $5,575 recognised in the 2022 financial statements, had been adjusted in the profit or loss for 2023.

Information on the Board of Directors’ resolution regarding the employees’ compensation and remuneration to directors can be obtained from the “Market Observation Post System” on the website of the Taiwan Stock Exchange.

(20) Non-operating income and expenses

A. Other income

Rental income Dividend income Income from managerial services Others Total	Year ended December 31	Year ended December 31
	2023	2022
	$31,121 181,212 49,860 6,051	$34,880 107,062 46,226 4,699
	$268,244	$192,867

B. Other gains and losses

Gains (losses) on disposal of property, plant and equipment Net losses on disposal of financial assets at fair value through profit or loss Net losses on valuation of financial assets at fair value through profit or loss Foreign exchange gain, net Gains on fair value adjustment of investment property Handling fee Others Total	Year ended December 31	Year ended December 31
	2023	2022
	$60 (2) (63) 4,858 41,925 (7,183) (4,239)	$(20) (47,810) (660) 156,543 25,498 (7,919) (1,246)
	$35,356	$124,386

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

C. Finance costs

Interest expenses from bank borrowings Interest expenses of convertible corporate bonds Internet expenses on lease liabilities Interest expenses of related parties Less: capitalisation of qualifying assets Total	Year ended December 31	Year ended December 31
	2023	2022
	$193,909 2,251 1,310 199 (128,397)	$150,783 3,662 449 8,132 (94,300)
	$69,272	$68,726

(21) Income tax

A. The major components of income tax expense for the years ended December 31, 2023 and 2022 are as follows:

Income tax expenses recognised in profit or loss

Current income tax expense: Current income tax charge Tax on undistributed surplus earnings Prior year income tax under estimation Deferred tax expense: Deferred tax expenses relating to origination and reversal of temporary differences Total	Year ended December 31	Year ended December 31
	2023	2022
	$13,912 10,283 9,575 (16,757)	$13,451 18,399 2,031 27,599
	$17,013	$61,480

Income tax recognised in other comprehensive income

Remeasurement of defined benefit obligations	Year ended December 31	Year ended December 31
	2023	2022
	552	$(675)

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

B. Reconciliation between tax expenses and the product of accounting profit multiplied by applicable tax rates:

Income tax expenses at the statutory rate Tax effect of revenues exempt and non-deductible expenses for tax purposes Tax on undistributed surplus earnings Prior year income tax under estimation Additional income tax under the Alternative Minimum Tax Act Others Income tax expense	Year ended December 31	Year ended December 31
	2023	2022
	$163,644 (172,324) 10,283 9,575 13,912 (8,077)	$219,861 (177,397) 18,399 2,031 - (1,414)
	$17,013	$61,480

C. Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses are as follows:

losses are as follows:
Temporary differences: Deferred tax assets: Provision for inventory obsolescence Accrued pension liabilities Unrealised exchange loss Deferred selling expenses Deferred interest expenses Operating loss carryforward Others Subtotal Deferred tax liabilities: Unrealised loss from sales Fair value adjustment of investment property Gain on foreign investment Subtotal Total		2023
	January1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
	$2,549 5,553 4,025 9,478 27,355 - 3,805	$- 10 (423) - - 17,625 185	$- (552) - - - - -	$2,549 5,011 3,602 9,478 27,355 17,625 3,990
	52,765	17,397	(552)	69,610
	(11,108) (43,976) (33,499)	- (640) -	- - -	(11,108) (44,616) (33,499)
	(88,583)	(640)	-	(89,223)
	$(35,818)	$16,757	$(552)	$(19,613)

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	2022	2022
January1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
$2,549 4,916 28,211 9,458 27,355 3,767	$- (38) (24,186) 20 - 38	$- 675 - - - -	$2,549 5,553 4,025 9,478 27,355 3,805
76,256	(24,166)	675	52,765
(11,108) (40,542) (33,499)	- (3,434) -	- - -	(11,108) (43,976) (33,499)
(85,149)	(3,434)	-	(88,583)
$(8,893)	$(27,600)	$675	$(35,818)

D. The assessment of income tax returns

As of December 31, 2023, the Company’s income tax returns through 2020 have been assessed.

(22) Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent entity (after adjusting for Interest expense of convertible bonds) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Basic earnings per share Profit attributable to ordinary equity holders of the Company (in thousand NT$) Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands) Basic earnings per share (NT$) Diluted earnings per share Profit attributable to ordinary equity holders of the Company (in thousand NT$) Subsidiaries’ domestic convertible bonds (in thousand NT$) Interest expense of convertible corporate bonds (in thousand NT$) Profit attributable to the parent plus assumed conversion of all dilutive potential ordinary shares (in thousand NT$) Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands) Effect of dilution: Employees’ compensation - stock (in thousands) Treasury stock transferred to employees (in thousands) Convertible corporate bonds (in thousands) Weighted average number of ordinary shares outstanding after dilution (in thousands) Diluted earnings per share (NT$)	Year ended December 31	Year ended December 31
	2023	2022
	2023	2022
	$801,205 (9,095) 1,801	$1,037,826 (9,115) 2,930
	$793,911	$1,031,641
	618,614 230 15,721 22,382	605,119 238 15,721 32,545
	656,947	653,623
	$1.21	$1.58

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date that the financial statements were authorized for issue.

(23) Supplemental cash flow information

Investing activities with partial cash payments:

Investing activities with partial cash payments:
Purchase of property, plant and equipment Add: Beginning balance of equipment payable Less: Ending balance of equipment payable Cash payment during the year	Year ended December 31
	2023	2022
	$463,394 38,300 (38,300)	$59,448 38,300 (38,300)
	$463,394	$59,448

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

7. Related party transactions

(1) Names and relationship of related parties: Please refer to Note 4(3).
(2) Significant transactions with the related parties
A. Operating revenue

Operating revenue
Sales of products: Subsidiaries	Year ended December 31
	2023	2022
	$746,716	$752,673

Goods are sold based on the price mutually agreed by both parties. The credit terms to related parties are 15 to 30 days and 60 to 120 days after monthly billings, compared to 60 to 120 days to third parties.

B. Purchases

Purchases
Purchases of goods: Subsidiaries	Year ended December 31
	2023	2022
	$52,394	$47,920

The prices of goods purchased from related parties are available to third parties. The payment terms are 30 days and 60 to 90 days after monthly billings.

C. Receivables from related parties

Receivables from related parties
Accounts receivable: Subsidiaries Other receivables: Receivables from managerial services income Subsidiaries Loans to Wan Chio Petrochemical (Jiangsu) Co., Ltd. Subsidiaries Total	December 31, 2023	December 31, 2022
	$111,136	$109,989
	12,767 624,833 -	13,471 1,013,253 4,022
	$637,600	$1,030,746

Other receivables from related parties refer to raw materials purchased on behalf of related parties and loans to related parties. The other receivables are unsecured in nature, and there are no allowances for uncollectible accounts held against other receivables from related parties.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

D. Payables to related parties

Accounts payable: Subsidiaries Other payables: Loans from Xin Chio Co., Ltd. Headquarters cost allocation ACHEM Technology Corporation Total	December 31, 2023	December 31, 2022
	$17,952	$14,129
	$70,199 -	$- 754
	$70,199	$754

Accounts payable arise mainly from purchase transactions. Other payables arise mainly from loans from subsidiaries including interest, etc.

E. Prepayments (recorded under inventory)

Wong Chio Development, Ltd	December 31, 2023	December 31, 2022
	$983,682	$592,523

F. Investment property

Details of investment property leased to UINN HOTEL are as follow:

Investment property Rental income	December 31, 2023	December 31, 2022
	$858,331	$834,916
	2023	2022
	$4,552	$5,989

G. Pre-sold house contracts

Contract liabilities - Pre-sold house: Other related parties	December 31, 2023	December 31, 2022
	$4,648	$4,648

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

On May 13, 2021, the Company's Board of Directors resolved to pre-sell the houses and parking space of the building project ‘THE ONE’ in Xinzhuang District of New Taipei City to Li, Qi-Zheng and Li, Shu-Wei. The total contract liabilities - pre-sold houses was $4,648, however, the transfer of ownership has not yet been completed.

H. Loans to/from related parties
(a) Loans to related parties
- I. Outstanding balance

I. Outstanding balance
Wan Chio Petrochemical (Jiangsu) Co., Ltd. Subsidiaries Total II. Interest income Subsidiaries	December 31, 2023	December 31, 2022
	$624,774 -	$1,013,253 4,000
	$624,774	$1,017,253
	Year ended December 31
	2023	2022
	$503	$10,070

The loans to subsidiaries are repayable within 1 year and carry interest at 0%-2% and 0%-2.5% per annum for the years ended December 31, 2023 and 2022, respectively.

(b) Loans from related parties
I. Outstanding balance

I. Outstanding balance
Xin Chio Co., Ltd. II. Interest expense	December 31, 2023	December 31, 2022
	$70,000	$-

Interest expense
Xin Chio Co., Ltd. Subsidiaries Total	Year ended December 31
	2023	2022
	$199 -	$- 8,132
	$199	$8,132

The loans from subsidiaries are repayable within 1 year and carry interest at 2.00% per annum for the years ended December 31, 2023 and 2022.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

I. Other income

(a) Income from managerial services

Subsidiaries (b) Rent income	Year ended December 31	Year ended December 31
	2023	2022
	$49,860	$46,226

Subsidiaries	Year ended December 31	Year ended December 31
	2023	2022
	$10,732	$11,603

`－` J. Lease transactions lessee

The Company leases buildings from subsidiaries. Rental contracts are typically made for periods of 1 year. Rents are paid at the end of month.

Year ended December 31 2023 2022 Subsidiaries $1,250 $1,120 K. Deferred marketing expenses (recorded under “other current assets”) December 31, 2023 December 31, 2022 Associates $48,653 $48,653 L. Endorsements and guarantees provided by related parties December 31, 2023 December 31, 2022 Related parties $23,054,118 $12,574,880 M. Endorsements and guarantees provided to related parties December 31, 2023 December 31, 2022 Related parties $432,117 $579,940	Year ended December 31	Year ended December 31
	2023	2022
	$1,250	$1,120
		December 31, 2022
	$48,653	$48,653
	December 31, 2023	December 31, 2022
	$23,054,118	$12,574,880
	December 31, 2023	December 31, 2022
	$432,117	$579,940

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(3) Key management personnel compensation

Short-term employee benefits Post-employment benefits Total	Year ended December 31	Year ended December 31
	2023	2022
	$10,509 334	$11,898 243
	$10,843	$12,141

8. Pledged assets

The following table lists assets of the Company pledged as collateral:

Pledged assets	Carryingamount	Carryingamount	Purpose
	December 31, 2023	December 31, 2022
Financial assets at fair value through other comprehensive income -current Financial assets at amortised cost - current Financial assets at amortised cost - non- current - demand deposits Financial assets at amortised cost - non- current - time deposits Inventories Property, plant and equipment Investment property Other non-current assets - guarantee deposits paid Total	$766,905 184,230 23,383 35,764 8,050,561 2,082,723 2,165,699 4,965	$224,924 - 47,011 57,782 5,962,185 3,662,242 2,123,774 5,046	Long-term borrowings, short-term borrowings Borrowings, purchase and performance guarantee for construction Long-term borrowings, corporate bond guarantee and consideration trust for inventory purchases and sales, etc. Leasehold land guarantees, performance guarantee for construction and guarantee for corporate bonds Long-term borrowings, short-term borrowings Long-term borrowings, short-term borrowings Long-term borrowings, short-term borrowings Performance guarantee
	$13,314,230	$12,082,964

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

9. Significant contingencies and unrecognised contractual commitments

Except for those mentioned in Notes 6(13) and 7(2) the Company’s significant commitments are as follows:

(1) As of December 31, 2023 and 2022, the unused letters of credit amounted to $120,960 and $221,795 for the purchase of goods and machinery as collateral, respectively.
(2) Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

follows:
Consigned to construction companies to construct buildings	December 31, 2023	December 31, 2022
	$117,820	$213,803

10. Losses due to major disasters

None.

11. Significant subsequent events

In January 2024, the Company acquired additional 27.5% shareholding of King Sun New Tech Co., Ltd. for a consideration of $72,105 (since that day, the cumulative shareholding has exceeded 50%, so the investee became a subsidiary of the Company) and participated in its cash capital increase of $80,000.

12. Others

(1) Categories of financial instruments

Financial assets

Financial assets at fair value through profit or loss Financial assets designated as at fair value through profit or loss Financial assets at fair value through other comprehensive income	December 31, 2023	December 31, 2022
	$-	$81
	1,220,430	964,975

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable (including related parties) Other receivables (including related parties) Guarantee deposits paid Subtotal Total Financial liabilities Financial liabilities at amortised cost Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable (including related parties) Other payables (including related parties) Bonds payable (including current portion) Long-term borrowings (within 1 year or 1 operating cycle) Lease liabilities (within 1 year) Guarantee deposits received Total	December 31, 2023	December 31, 2022
	338,716 456,226 38,145 347,447 658,018 4,965	558,201 496,860 31,759 370,115 1,051,169 5,046
	1,843,517	2,513,150
	$3,063,947	$3,478,206
	December 31, 2023	December 31, 2022
	$4,187,493 400,000 95,044 125,687 184,881 161,502 5,819,278 56,846 7,273	$2,471,092 550,000 40,079 123,034 129,243 411,778 5,413,250 59,380 6,829
	$11,038,004	$9,204,685

(2) Financial risk management objectives and policies

The Company’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Company identifies measures and manages the aforementioned risks based on the Company’s policy and risk appetite.

Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(3) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise currency risk, interest rate risk and price risk.

In practice, it is rarely the case that a single risk variable will change independently from other risk variable, there is usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Company operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.

Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury.

The Company has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company’s profit is performed on significant monetary items denominated in foreign currencies as at the end of the reporting period. The Company’s foreign currency risk is mainly related to the volatility in the exchange rates for USD. The information of the sensitivity analysis is as follows:

When NTD strengthens/weakens against USD by 5%, the profit for the years ended December 31, 2023 and 2022 is decreased/increased by $45,549 and $75,263, respectively.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term borrowings. During 2023 and 2022, the Company’s borrowings at variable rate were mainly denominated in NTD.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The Company’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at the end of the reporting period, including investments and borrowings with variable interest rates. At the reporting date, a change of 5% of interest rate in a reporting period could cause the profit for the years ended December 31, 2023 and 2022 to decrease/increase by $5,457 and $5,591, respectively.

Equity price risk

The Company’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

The Company’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 5% with all other variables held constant, post-tax profit for the years ended December 31, 2023 and 2022 would have increased/decreased by $61,022 and $48,249, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss.

(4) Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The Company is exposed to credit risk from operating activities (primarily for accounts receivable) and financing activities (primarily for various financial instrument).

For banks and financial institutions, only banks and financial institutions with optimal credit ratings are accepted. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

According to the internal management policy, that is, the default occurs when the contract payments are past due over 240 days.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The Company adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

The Company applies the simplified approach using the provision matrix to estimate expected credit loss to assess the Company’s accounts receivable.

The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

A. It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
B. The disappearance of an active market for that financial asset because of financial difficulties;
C. Default or delinquency in interest or principal repayments;
D. Adverse changes in national or regional economic conditions that are expected to cause a default.

The Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights.

The Company applied historical and timely information to assess the default possibility. The simplified approach using the provision matrix provision matrix to estimate loss allowance of accounts receivable and the movements in loss allowance for notes and accounts receivable please refer to Note 6(17).

(5) Liquidity risk management

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, highly liquid equity investments, bank borrowings, convertible bonds and finance leases, etc. The table below summarizes the maturity profile of the Company’s financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as of the end of the reporting period.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

The table below analyses the Company’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

December 31, 2023

Non-derivative financial liabilities Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable (including related parties) Other payables (including related parties) Bonds payable Long-term borrowings (including current portion) Lease liabilities (including current portion) Total	Less than 1year	Over 1year	Total
	$4,205,036 400,000 95,044 125,687 184,881 162,900 776,357 3,844	$- - - - - - 5,306,359 65,341	$4,205,036 400,000 95,044 125,687 184,881 162,900 6,082,716 69,185
	$5,953,749	$5,371,700	$11,325,449

December 31, 2022

Non-derivative financial liabilities Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable (including related parties) Other payables (including related parties) Bonds payable Long-term borrowings (including current portion) Lease liabilities (including current portion) Total	Less than 1year	Over 1year	Total
	$2,480,727 550,000 40,079 123,034 129,243 - 1,052,289 3,844	$- - - - - 418,500 4,588,019 69,185	$2,480,727 550,000 40,079 123,034 129,243 418,500 5,640,308 73,029
	$4,379,216	$5,075,704	$9,454,920

As of December 31, 2023 and 2022, the Company all held no derivative financial liabilities.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(6) Reconciliation of liabilities arising from financing activities

2023.1.1 Cash flows Non-cash changes (Note) 2023.12.31	Short-term borrowings	long-term borrowings (including current portion)	Short-term notes and billspayable	Other payables to relatedparties	Lease liabilities	Bonds payable (including current portion)	Liabilities from financing activities-gross
	$2,471,092 1,716,401 -	$5,413,250 406,028 -	$550,000 (150,000) -	$- 70,000 -	$59,380 (3,844) 1,310	$411,778 - (250,276)	$8,905,500 2,038,585 (248,966)
	$4,187,493	$5,819,278	$400,000	$70,000	$56,846	$161,502	$10,695,119

2022.1.1 Cash flows Non-cash changes (Note) 2022.12.31	Short-term borrowings	long-term borrowings (including current portion)	Short-term notes and billspayable	Other payables to relatedparties	Lease liabilities	Bonds payable (including current portion)	Liabilities from financing activities-gross
	$3,727,592 (1,256,500) -	$4,971,762 441,488 -	$410,000 140,000 -	$355,000 (355,000) -	$- (1,282) 60,662	$443,361 - (31,583)	$9,907,715 (1,031,294) 29,079
	$2,471,092	$5,413,250	$550,000	$-	$59,380	$411,778	$8,905,500

Note: Including amortization of convertible bonds, conversion of convertible bonds into equity, acquiring assets by leasing and financial costs of lease liabilities, etc.

(7) Fair value information
A. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:
- Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date. The fair value of the Company’s investment in listed stocks is included in Level 1.
- Level 2: Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly.
- Level 3: Unobservable inputs for the assets or liabilities. The fair value of redemption rights of convertible corporate bonds issued by the Company and wealth management products are included in Level 3.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

B. Financial instruments not measured at fair value

Except for bonds payable, the carrying amounts of cash and cash equivalents, financial assets at amortised cost, notes receivable, accounts receivable (including related parties), other receivables (including related parties), short-term borrowings, short-term notes and bills payable, notes payable, accounts payable (including related parties) and other payables (including related parties) are approximate to their fair values. Interest rates of long-term borrowings (including maturity within 1 year or 1 operating cycle) are approximately the same as market interest rates, thus, the carrying amount should be a reasonable basis for fair value estimation.

The bonds payable are convertible corporate bonds issued by the Company, with a coupon rate approximately equivalent to the current market rate. Therefore, the fair value is estimated using the present value of the expected cash flows approximate to the carrying amount.

Carrying amount		Fair value
	Level 1	Level 2	Level 3
$161,502	$-	$150,009	$-
Carrying amount		Fair value
	Level 1	Level 2	Level 3
$411,778	$-	$402,804	$-

The methods and assumptions of fair value measurement are as follows:

Convertible debentures payable: Regarding the convertible bonds issued by the Company, the coupon rate approximates to the current market rate. Therefore, the fair value is estimated using the present value of the expected cash flows and approximate to the book value.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

C. The related information on financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets are as follows:
(a) The related information on the nature of the assets and liabilities is as follows:

Level 1	Level 2	Level 3	Total
$1,214,833 -	$- -	$5,597 2,165,699	$1,220,430 2,165,699
$1,214,833	$-	$2,171,296	$3,386,129
Level 1	Level 2	Level 3	Total
$- 959,378 -	$- - -	$81 5,597 2,123,774	$81 964,975 2,123,774
$959,378	$-	$2,129,371	$3,088,749

(b) The methods and assumptions the Company measure the fair value are as follows:
i. The instruments the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Market quoted price	Listed shares
	Closing price

ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques. The fair value of financial instruments measured by using valuation techniques can be referred to valuation methods.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

iii. Under the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, the Company makes self-assessment using the income approach to calculate the fair value of investment property. Related assumptions and information on inputs are as follows:
- (i) Cash flow: Cash flow shall be evaluated on the basis of existing lease contracts, rent at local market rates, or current market rents for similar comparable properties in the same location and condition, and overvalued and undervalued comparable properties shall be excluded. If there is a period-end value, the discounted present period-end value may be added.
- (ii) Analysis period: When there is no specified period for the income, the analysis period in principle shall not be longer than 10 years; when there is a specified period for the income, the income shall be estimated for the remainder of the specified period.
- (iii) Discount rate: The discount rate shall be determined using the risk premium approach only, with the calculation based on a certain interest rate, plus the estimate for the individual characteristics of the investment property. The phrase "based on a certain interest rate" means the interest rate may not be lower than the floating interest rate on a 2-year time deposit of a small amount, as posted by the Chunghwa Post Co. Ltd., plus 0.75 percentage points.
D. For the years ended December 31, 2023 and 2022, there was no transfer between Level 1 and Level 2.
E. For the years ended December 31, 2023 and 2022, there was no transfer into or out from Level 3.
F. The information on change in fair value of investment property for the years ended December 31, 2023 and 2022 is provided in Note 6(9).
G. Treasury segment is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and making any other necessary adjustments to the fair value. Investment property and call options and put options of convertible corporate bonds are evaluated through outsourced appraisal performed by the external valuer.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Item	Fair value at December 31, 2023	Valuation technique	Significant observable input	Range	Relationship of inputs to fair value
Unlisted stocks Investment property Item	$5,597 2,165,699 Fair value at December 31, 2022	Market comparable companies Income approach Valuation technique	Industrial average price to book ratio Discounted rate Significant observable input	Not applicable (Note) Range	The higher the book value per share, the higher the fair value. The higher the discount rate, the lower the fair value. Relationship of inputs to fair value
Unlisted stocks Investment property Call options and put options of convertible corporate bonds	$5,597 2,123,774 81	Market comparable companies Income approach Binary tree valuation model	Industrial average price to book ratio Discounted rate Volatility	Not applicable (Note) 18.16%	The higher the book value per share, the higher the fair value. The higher the discount rate, the lower the fair value. The higher the volatility, the higher the fair value.

Note: Information on discount rate and income capitalisation rate is provided in Note 6(9).

The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued)

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(8) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies is listed below:

Financial assets	December 31,2023	December 31,2023
	Foreign currencies (in thousand)	Foreign exchange rate	NTD (in thousand)
			$910,987 $762,942
Monetary items: USD:NTD Financial liabilities
Non-monetary items: Long-term equity investments accounted for under the equity method USD:NTD Financial liabilities
	Foreign currencies (in thousand)	Foreign exchange rate	NTD (in thousand)
	$49,015 $26,899	30.71 30.71	$1,505,251 $826,083
Monetary items: USD:NTD Financial liabilities
Non-monetary items: Long-term equity investments accounted for under the equity method USD:NTD

(9) Capital management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. Refer to the balance sheet of each period for related liabilities and capital ratio.

Yem Chio Co., Ltd. Notes to the Parent Company Only Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

13. Supplementary disclosures

(1) Significant transactions information
A. Financing provided to others: Please refer to table 1.
B. Endorsement/Guarantee provided to others: Please refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to table 4.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to table 5.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to table 6.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paidin capital or more: Please refer to table 7.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 8.
I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Note 6(2).
J. Significant inter-company transactions during the reporting periods: Please refer to table 9.
(2) Information on investees

Names, locations and other information of investee companies (not including investees in China): Please refer to table 10.

(3) Information on investments in China
A. Basic information: Please refer to table 11.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to items (1) A, B, G, H and J above.
(4) Major shareholders information

Major shareholders information: Please refer to table 12.

14. Segment information

Not applicable.

Yem Chio Co., Ltd. and Subsidiaries

Financing provided to others For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 1

Table 1
No. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	(Note 3) Maximum outstanding balance during the year ended December 31, 2023	Balance at December 31, 2023 (Note 8)	Actual amount drawn down	Interest rate	(Note 4) Nature of loan	(Note 5) Amount of transactions with the borrower	(Note 6) Reason for short-term financing	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party (Note 7)	Ceiling on total loans granted (Note 7)	Footnote
													Item	Value
0 0 0 0 0 1 1 1 1 1 2 2 2 2 2 3 3 3 4 4 5 5 5 6 7 8 8 9 10 11 12 13 13	The Company The Company The Company The Company The Company ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Holding Limited ACHEM Technology Holding Limited ACHEM Technology Holding Limited ACHEM Technology Holding Limited ACHEM Technology Holding Limited ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. ASIACHEM International Corporation ASIACHEM International Corporation ACHEM Technology (Shanghai) Limited ACHEM Technology (Shanghai) Limited ACHEM Technology (Shanghai) Limited Valueline Investment Corporation ACHEM Technology China Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ASIA PLASTICS ACHEM Opto-Electronic Corporation AOE Holding Limited Master Package (Shanghai) Material Technology Co., Ltd. Xin Chio Co., Ltd. Xin Chio Co., Ltd.	UINN HOTEL Wong Chio Development., Ltd. Wang Chio petrochemical (Jiangsu) Co., Ltd. ACHEM Technology Corporation ACHEM Technology Holding Limited ACHEM Technology Holding Limited Wong Chio Development., Ltd. UINN HOTEL Pantech Tape Co., Ltd. ACHEM Opto-Electronic Corporation Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. ASIA PLASTICS ACHEM Technology (Vietnam) Ltd. WAN CHIO Wang Chio petrochemical (Jiangsu) Co., Ltd. Ningbo Yem Chio Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology Holding Limited Wanchio Adhesive Product (Jiangsu) Co., Ltd. Ningbo Yem Chio Co., Ltd. Wang Chio petrochemical (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology Corporation ACHEM Technology Holding Limited Ningbo Yem Chio Co., Ltd. Wang Chio petrochemical (Jiangsu) Co., Ltd. Wang Chio petrochemical (Jiangsu) Co., Ltd. ACHEM Technology Corporation ACHEM Technology Holding Limited Ningbo Yem Chio Co., Ltd. ACHEM Technology Corporation The Company	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	180,000 $ 500,000 1,013,253 900,000 324,250 614,200 730,000 180,000 52,000 16,000 660,083 55,278 32,425 82,201 157,261 311,150 80,010 143,817 701,677 152,819 30,856 735,648 270,870 27,000 32,425 80,010 462,584 647,469 43,000 45,395 46,673 325,000 70,000	- $ 500,000 624,774 900,000 307,050 383,813 380,000 150,000 - 16,000 376,146 - 30,705 80,754 148,919 204,018 77,886 142,142 664,456 148,762 - 592,366 270,870 27,000 30,705 34,616 373,117 - - 42,987 42,405 325,000 70,000	- $ - 624,774 - - 191,906 50,000 110,000 - 16,000 376,146 - 25,792 80,754 148,919 204,018 77,886 142,142 664,456 148,762 - 592,366 268,707 27,000 15,353 34,616 373,117 - - 41,452 42,405 325,000 70,000	2.00% 2.00% 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.50% 2.50% 2.00% 2.50% 2.00% 0.00% 2.00% 2.00% 2.00% 2.00% 2.00% 0.00% 2.00% 2.00% 2.00% 2.8%-4.9% 0.00% 0.00% 2.00% 2.00% 4.00% 2.00% 2.00%	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital	- $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None	- $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	2,399,509 $ 2,399,509 2,399,509 2,399,509 2,399,509 1,170,874 1,170,874 1,170,874 1,170,874 1,170,874 3,930,486 3,930,486 3,930,486 3,930,486 3,930,486 970,616 970,616 970,616 1,402,881 1,402,881 1,358,389 1,358,389 1,358,389 29,013 3,433,894 15,563,750 15,563,750 - 210,837 543,372 45,989 427,476 427,476	4,799,018 $ 4,799,018 4,799,018 4,799,018 4,799,018 2,049,030 2,049,030 2,049,030 2,049,030 2,049,030 3,930,486 3,930,486 3,930,486 3,930,486 3,930,486 970,616 970,616 970,616 1,402,881 1,402,881 1,358,389 1,358,389 1,358,389 29,013 3,433,894 15,563,750 15,563,750 - 210,837 543,372 45,989 427,476 427,476	- - - - - - - - - - - - - - - - - - - - - - - - - - - Note 7(16) - - - - -

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1) The Company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc.
Note 3: Fill in the maximum outstanding balance of loans to others for the year ended December 31, 2023.
Note 4: Nature of loan' belong to business relationship or short-term financing shall fill in ‘1’and ‘2’, respectively.
Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current year.
Note 6: Fill in purpose of loan when nature of loan is for short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc.
Note 7: Fill in limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company’s “Procedures for Provision of Loans”, and state each individual party to which the loans have been provided and
(1) In accordance with the financing policy of the Company, the ceiling for total financing amount shall not exceed 40% of stockholders’ equity, and separate financing amount shall not exceed 20% of stockholders' equity.
(2) In accordance with the financing policy of YEM CHIO, the ceiling for total financing amount shall not exceed 40% of stockholders’ equity, and separate financing amount shall not exceed 40% of stockholders' equity.

If the borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company, the financing amount shall not exceed 400% of stockholders' equity.

(3) Limit on Xin Chio Co., Ltd.'s total loans to others is 40% of the Company's net assets.
Limit on loans to a single party with short-term financing is 40% of the Company’s net assets.
(4) Ceiling on total loans to others and limit on loans to a single party granted by Master Package (Shanghai) shall not exceed 40% of the stockholders' equity.

If the borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company, the ceiling for total financing amount granted by Master Package (Shanghai) shall not exceed 100% of stockholders' equity.

(5) For the short-term financing from ACHEM Technology Corporation, the total and individual lending amount shall not exceed 35% and 20% of its nets assets, respectively.
(6) Limit on loans granted by ACHEM Technology Holdings Limited to others and to a single party shall not exceed 40% of the stockholders' equity. But for foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company, the limit on loans is 100% of the stockholders’ equity.
(7) Limit on loans granted by ASIACHEM International Corporation to others and to a single party shall not exceed 40% of the stockholders' equity. But for foreign companies whose voting rights are directly and indirectly wholly-owned by the parent company of ASIACHEM International Corporation, the limit on loans is 100% of the stockholders' equity of ASIACHEM International Corporation.
(8) In accordance with the financing policy of Valueline Investment Corporation, the ceiling for total and separate financing amount shall not exceed 40% of the stockholders’ equity of the subsidiaries.
(9) Limit on loans granted by ACHEM Technology (Shanghai) Limited to others and to a single party shall not exceed 40% of the stockholders’ equity of ACHEM Technology (Shanghai) Limited.
If borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company of ACHEM Technology (Shanghai) Limited, the limit on loans is 100%
of the stockholders' equity of ACHEM Technology (Shanghai) Limited.
(10) Limit on loans granted by ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. to others and to a single party shall not exceed 40% of the stockholders’ equity of ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.
If borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company of ACHEM Technology (Dongguan) Adhesive Products Co., Ltd., the limit on loans is
100% of the stockholders’ equity of ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.
(11) Limit on loans granted by ASIA PLASTICS to others and to a single party shall not exceed 40% of the stockholders’ equity of ASIA PLASTICS.

If borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company of ASIA PLASTICS, the limit on loans is

1000% of the stockholders’ equity of ASIA PLASTICS.
(12) Limit on loans granted by ACHEM Technology China to others and to a single party shall not exceed 40% of the stockholders' equity of ACHEM Technology China. If borrowers are foreign companies whose voting rights are directly and
indirectly wholly-owned by the ultimate parent company of ACHEM Technology China, the limit on loans is 100% of the stockholders' equity of ACHEM Technology China.
(13) The total and individual lending amount of Wanchio Adhesive Product (Jiangsu) Co., Ltd. shall not exceed 40% of its net assets.
However, the loans among foreign entities to which the ultimate parent company of Wanchio Adhesive Product (Jiangsu) Co., Ltd. directly or indirectly has 100% voting rights, the total and individual lending amount shall not exceed 3000% of net assets of the lender company.
(14) Limit on ACHEM Opto-Electronic Corporation' s total loans to others is 40% of the Company' s net assets.
(15) Limit on loans granted by AOE Holding Limited to others and to a single party shall not exceed 40% of the stockholders' equity. But for foreign companies whose voting rights are directly and indirectly wholly-owned by the parent company of AOE Holding Limited, the limit on loans is 100% of the stockholders' equity of AOE Holding Limited.
(16) ASIA PLASTICS’s Board of Directors held in December 2023 approved the cancellation of ASIA PLASTICS’s loans to Wan Chio Petrochemical (Jiangsu) Co., Ltd. The situation of exceeding the limit of the loan amount was improved accordingly.
Note 8: The amounts of funds to be loaned to others which have been approved by the board of directors of a public company in accordance with Article 14, Item 1 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies” should be included in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the board of directors of a public company has authorized the chairman to loan funds in instalments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies”, the published balance of loans to
others at the end of the reporting period should also include these lines of loaning approved by the board of directors, and these lines of loaning should not be excluded from this balance even though the loans are repaid subsequently,
for taking into consideration they could be loaned again thereafter.

Table 2

Yem Chio Co., Ltd. and Subsidiaries

Endorsement/Guarantee provided to others For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 2
No. (Note 1)	Endorser/Guarantor	Endorsee/Guarantee		Limit on endorsement/ guarantee Given on behalf of each party (Note 3)	Maximum balance for the period (Note 4)	Ending balance (Note 5)	Actual Borrowing Amount (Note 6)	Amount of endorsement/guarant ee collateralized by properties	Percentage of accumulated guarantee amount to net assets value from the latest financial statement	Limit of total guarantee/endorsement amount (Note 3)	Provision of endorsements/guarantees by parent company to subsidiary (Note7)	Provision of endorsements/guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/guarantees to the party in Mainland China (Note 7)	Footnote
		Company name	Relationship (Note 2)
0 0 0 0 1 1 1 1 1 2	The Company The Company The Company The Company ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology (Shanghai) Limited	Wong Chio Development., Ltd. ACHEM Technology (Vietnam) Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. ACHEM Technology Holding Limited Ningbo Yem Chio Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology (Vietnam) Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd.	2 2 2 2 2 2 2 2 2 2	11,997,544 $ 11,997,544 11,997,544 11,997,544 5,854,371 5,854,371 5,854,371 5,854,371 5,854,371 1,358,389	150,000 $ 32,425 418,592 153,700 154,460 1,107,000 200,025 213,360 38,910 271,436	- $ 30,705 401,412 - 30,000 829,035 194,715 121,156 36,846 268,274	- $ - - - 19,443 - 27,260 - 305 138,464	- $ - - - - - - - - -	- - 3 - 1 14 3 2 1 19	17,996,316 $ 17,996,316 17,996,316 17,996,316 5,854,371 5,854,371 5,854,371 5,854,371 5,854,371 1,358,389	Y Y Y Y Y Y Y Y Y N	N N N N N N N N N N	N N Y Y Y N Y Y N Y	- - - - - - - - - -

Note1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1) The Company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories:

(1) Having business relationship.
(2) The endorser/guarantor parent company owns directly or indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(3) The endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.
(4) The endorser/guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company.
(5) Mutual guarantee of the trade made by the endorsed/guaranteed company or joint contractor as required under the construction contract.
(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company’s “Procedures for Provision of Endorsements and

Guarantees”, and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote.
(1) Calculation for ceiling on endorsements/guarantees provided by the Company to others and to a single party is based on 150% and 100% of the Company’s net equity in the latest financial statements, respectively.
(2) Calculation for ceiling on endorsements/guarantees provided by ACHEM Technology Corporation to others and to a single party is based on 100% of stockholders’ equity in the latest financial statements.
(3) For ACHEM Technology (Shanghai) Limited, the ceiling on total amount of endorsements/guarantees provided and the limit on endorsements/guarantees provided for a single party are both calculated based on 100% of net assets disclosed on the latest financial statements.

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

Note 5: Fill in the amount approved by the Board of Directors or the chairman if the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of

Endorsements/Guarantees by Public Companies.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Yem Chio Co., Ltd. and Subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 3

Table 3
Securities held by	Type of securities (Note 1)	Name of securities	Relationship with the securities issuer (Note 2)	General ledger account	As of December 31, 2023 ~~Number of shares~~				Footnote (Note 4)
					(Including stock dividends)	Book value (Note 3)	Ownership	Fair value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company YEM CHIO YEM CHIO ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation Valueline Investment Corporation Valueline Investment Corporation Valueline Investment Corporation ACHEM Technology Holding Limited ACHEM Technology Holding Limited AOE Holding Limited Foshan Inder Adhesive Product Co., Ltd Foshan Inder Adhesive Product Co., Ltd Master Package(Shanghai)Material TechnologyCo., Ltd.	Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Common stock Bank debenture Common stock Common stock Common stock Beneficiary certificates Common stock Bank debenture Capital guarantee products Capital guarantee products Wealth managementproducts	ASE Technology Holding Co., Ltd. Quanta Computer Inc. LITE-ON Technology Corp. HON HAI PRECISION IND. CO., LTD. Formosa Plastics Corporation Fubon Financial Holding Co., Ltd. MediaTek Inc. Taiwan Semiconductor Manufacturing Co., Ltd. Yuanta Taiwan Top 50 ETF EVERGREEN MARINE CORP. (TAIWAN) LTD. UNI-PRESIDENT ENTERPRISES CORP. U-Ming Marine Transport Corporation Tong Hsing Electronic Industries, LTD. Unipex Global Co., Ltd Yem Chio Co., Ltd. Vanguard S&P 500 ETF Yuanta Taiwan Top 50 ETF Fubon FSTE TWSE Taiwan 50 ETF CTBC Taiwan ESG Leading Semiconductor ETF Fubon Taiwan Core Semi ETF LITE-ON Technology Corp. HON HAI PRECISION IND. CO., LTD. Taiwan Semiconductor Manufacturing Co., Ltd. GIGA-BYTE TECHNOLOGY CO., LTD. Micro-Star International Co., Ltd. Quanta Computer Inc. EVERGREEN MARINE CORP. (TAIWAN) LTD. U-Ming Marine Transport Corporation Fubon Financial Holding Co., Ltd. E.SUN Financial Holding Co., Ltd. ASE Technology Holding Co., Ltd. Sercomm Corporation Quanta Storage Inc. Tong Hsing Electronic Industries, LTD. INPAQ Technology Co., Ltd. International Engineering & Construction Corp. Citigroup Inc. Yem Chio Co., Ltd. Lucky-Heart Co., Ltd. Taiwan Virtual Reality Technologies Inc. Augustus Multi - Strategy Fund Yem Chio Co., Ltd. Codeis Securities S.A. Structured Investment Deposit in Bank of China Structured Investment Deposit in Bank of Communications Wealth management products launched by Bank of China	None " " " " " " " " " " " " " Ultimate parent company None " " " " " " " " " " " " " " " " " " " " " Ultimate parent company None " " Ultimate parent company None " " "	Financial assets at fair value through other comprehensive income - current " " " " " " " " " " " " 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 other comprehensive income - non-current 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 other comprehensive income - non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current " Financial assets at fair value through profit or loss - current	1,390,897 213,000 90,000 3,295,000 500,000 1,636,025 164,000 260,000 62,000 671,000 87,000 191,000 235,000 171,900 16,822,281 1,882 34,000 150,000 520,000 396,000 117,000 507,000 120,000 18,000 1,000 92,000 15,000 28,000 382,350 125,000 94,000 14,000 76,000 96,000 60,000 7,212,885 - 406,409 800,000 1,600,000 58,721 1,194,138 - - - -	187,771 $ 47,818 10,530 344,328 39,600 106,014 166,460 154,180 8,398 96,289 6,481 9,951 37,013 5,597 297,754 25,310 4,605 11,572 8,523 5,540 13,689 52,982 71,160 4,788 204 20,654 2,153 1,459 24,776 3,225 12,690 1,883 6,232 15,120 5,010 - 53,933 7,193 - - - 21,136 - 216,317 259,580 51,924	0.03% 0.01% 0.00% 0.02% 0.01% 0.01% 0.01% 0.00% 0.00% 0.03% 0.00% 0.02% 0.11% 17.19% 2.56% 0.00% 0.00% 0.02% 0.05% 0.07% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.01% 0.03% 0.05% 0.04% 7.99% - 0.06% 6.96% 10.00% 0.00% 0.18% - - - -	187,771 $ 47,818 10,530 344,328 39,600 106,014 166,460 154,180 8,398 96,289 6,481 9,951 37,013 5,597 297,754 25,309 4,605 11,572 8,523 5,540 13,689 52,982 71,160 4,788 204 20,654 2,153 1,459 24,776 3,225 12,690 1,883 6,232 15,120 5,010 - 53,934 7,193 - - - 21,136 - 216,317 259,580 51,924	1,390,000 - 1,000 3,010,000 500,000 224,000 164,000 74,000 1,000 - - - - - Note 5 - - - - - - - - - - - - - - - - - - - - - - Note 5 - - - Note 5 - - - -

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9 ‘Financial instruments.’

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security should be stated in the footnote if the securities presented herein have such conditions.

Note 5: The stocks are held by the Company’s subsidiary; hence, the investment is accounted for treasury shares.

Yem Chio Co., Ltd. and Subsidiaries

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 4

Table 4
Investor	Marketable securities (Note 2)	General ledger account (Note 1)	Counterparty (Note 3)	Relationship with the investor (`註`3)	Balance as at January1, 2023		Addition (Note 4)		Disposal (Notte 4)				Balance as at December 31, 2023
					Number of shares (in thousands)	Amount	Number of shares (in thousands)	Amount	Number of shares (in thousands)	Selling price	Book value	Gain (loss) on disposal	Number of shares (in thousands)	Amount
The Company Foshan Inder Adhesive Product Co., Ltd. Foshan Inder Adhesive Product Co., Ltd. Master Package (Shanghai) Material TechnologyCo., Ltd.	Common stock: Quanta Computer Inc. Capital guarantee products : Financial product launched by Bank of China Capital guarantee products : Structured Investment Deposit in Bank of Communications Financial product: Financial product launched by Bank of China	(2) (1) (1) (1)	- - - -	- - - -	2,851 - - -	206,127 $ - 264,413 52,896	321 - - -	46,262 $ 943,141 1,583,438 479,131	2,959 - - -	414,622 $ 726,824 1,588,271 480,060	204,653 $ 726,824 1,588,271 480,060	209,969 $ - - -	213 - - -	47,818 $ 216,317 259,580 51,924

Note 1: The numbers filled in general ledger account are as follows:
(1) Financial assets at fair value through profit or loss
(2) Financial assets at fair value through other comprehensive income
Note 2: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.
Note 3: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank.
Note 4: The gain on disposal of financial assets at fair value through other comprehensive income will be directly transferred to retained earnings and not be reflected in the profit or loss.

Yem Chio Co., Ltd. and Subsidiaries

Acquisition of real estate reaching $300 million or 20% of paid-in capital or more For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 5

Table 5
Realestate acquired by	Realestate acquired	Transactiondate	Transactionamount	Payment status	Counterparty	Relationship with the Counterparty	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:				Basis or reference used in setting the price	Reason for acquisition of real estate and status oftherealestate	Other commitments
							Original owner who sold the real estate to the counterparty	Relationship between the original owner and the acquirer	Date of the original transaction	Amount
The Company The Company The Company The Company	Office building in 5F and parking lots in Neihu District, Taipei City Land in Zhoumei Section, Beitou District, Taipei City. Eight tracts of land in No.553, Taishan Section, Taishan District, New Taipei City Twelve tracts of land in No.754-1, Taishan Section, Taishan District, New Taipei City	2023.8.11 2023.8.11 2023.10.23 2023.12.19	$ 400,000 (Including business tax $4,190) $ 707,357 $ 347,618 $ 375,298	Full Paid Based on the terms in the contracts Based on the terms in the contracts Based on the terms in the contracts	Xin Chio Co., Ltd. A group of 5 people Jing Cheng Construction Co., Ltd. A group of 5 people	Subsidiary Third party Third party Third party	Wong Chio Development., Ltd. N/A N/A N/A	It was dissolved and consolidated in the Company N/A N/A N/A	2015.6.25 N/A N/A N/A	390,000 $ N/A N/A N/A	According to appraisal report issued by the Panasia Real Estate, the estimated value is $410,199. According to appraisal report issued by the Panasia Real Estate, the estimated value is $720,831. According to appraisal report issued by the Cathay Real Estate, the estimated value is $362,016. According to appraisal report issued by the Cathay Real Estate, the estimated value is $376,729.	The Company purchase this property for office usage requirement in responses to business expansion. The Company purchase this land for the usage of construction and development in the future. The Company purchase this land for the usage of construction and development in the future. The Company purchase this land for the usage of construction and development in the future.	- - - -

Not 1: The appraisal result should be presented in the ‘Basis or reference used in setting the price’ column if the real estate acquired should be appraised pursuant to the regulations.

Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Note 3: Date of the event referred to herein is the date of contract signing date, date of payment, date of execution of a trading order, date of title transfer, date of board resolution, or other date that can confirm the counterparty and the monetary amount of the transaction, whichever is earlier.

Yem Chio Co., Ltd. and Subsidiaries

Disposal of real estate reaching $300 million or 20% of paid-in capital or more

For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 6

Table 6
Real estate disposed by	Real estate	Transaction date (Note 1)	Acquisition date	Carrying amount	Disposal amount	Status of collection ofproceeds	Gain (loss) on disposal	Counterparty	Relationship with the seller	Reason for disposal	Basis or reference used in settingtheprice	Other commitments
Xin Chio Co., Ltd.	Office building in 5F and 24 parking lots in Neihu District, Taipei City	2023.8.10	2015.08.27	373,136 $	400,000 $ (Including business tax $4,190)	Full collected	22,674 $	The Company	Parent company	The primary office location had been moved to Taishan Building, and the office in Neihu is underutilized.	According to appraisal report issued by the Cathay Real Estate, the estimated value is $390,150.	-

Note 1: Date of the event referred to herein is the date of contract signing, date of payment, date of execution of a trading order, date of title transfer, date of board resolution, or other date that can confirm the counterparty and the monetary amount of the transaction, whichever is earlier.

Yem Chio Co., Ltd. and Subsidiaries

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more

For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 7

Table 7
Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions (Note 1)		Notes/accounts receivable(payable)		Footnote (Note 2)
			Purchases (sales)	Amount	Percentage of total purchases (sales) (%)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable) (%)
The Company The Company The Company ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd.	ACHEM Technology Corporation Xin Chio Co., Ltd. ACHEM Industry America Inc. Foshan Inder Adhesive Product Co., Ltd. Ningbo Yem Chio Co., Ltd. ACHEM Industry America Inc. ACHEM Technology Corporation ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	Subsidiary Subsidiary An indirect subsidiary Subsidiary Subsidiary Subsidiary Parent company Sister company	Sales Sales Sales Purchases Purchases Sales Sales Sales	516,730 $ 107,249 117,584 170,679 191,131 138,253 226,742 294,437	19.44% 4.04% 4.42% 6.18% 6.92% 3.11% 9.78% 12.69%	30 days after monthly billings 90 days after monthly billings 60 days after the receipt of shipment 100 days after shipment 60 days after monthly billings 60 days after monthly billings 60 days after monthly billings 60 days after monthly billings	Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3	Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3	36,117 $ 38,182 36,838 (69,832) (36,831) 24,266 28,978 99,811	9.37% 9.90% 9.55% (17.45%) (9.20%) 2.77% 3.85% 13.24%	None None None None None None None None

Note1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the ‘Unit price’ and ‘Credit term’ columns.

Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party transactions.

Note 3: The description of the transaction is not significantly different with third parties and as such, no need to disclose.

Yem Chio Co., Ltd. and Subsidiaries

Receivables from related parties reaching $100 million or 20% of paid-in capital or more

December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 8

Table 8
Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2023 (Note 1)	Turnover rate (Note 2)	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
The Company Xin Chio Co., Ltd. ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology (Shanghai) Limited ACHEM Technology (Shanghai) Limited ACHEM Technology Holding Limited ACHEM Technology Holding Limited ASIACHEM International Corporation ASIACHEM International Corporation ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd.	Wang Chio petrochemical (Jiangsu) Co., Ltd. ACHEM Technology Corporation ACHEM Technology Holding Limited UINN HOTEL Wang Chio petrochemical (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. WAN CHIO ACHEM Technology Holding Limited Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wang Chio petrochemical (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wang Chio petrochemical (Jiangsu) Co., Ltd.	An indirect subsidiary Associate Subsidiary Sister company Sister company Sister company An indirect subsidiary Associate Sister company Sister company Sister company Sister company Associate	Other receivables 624,774 $ Other receivables 328,994 Other receivables 192,413 Other receivables 110,432 Other receivables 592,366 Other receivables 271,773 Other receivables 377,110 Other receivables 150,927 Other receivables 676,991 Other receivables 157,192 Other receivables 204,018 Other receivables 145,082 Other receivables 373,117	- - - - - - - - - - - - -	- $ - - - - - - - - - - - -	- - - - - - - - - - - - -	- $ - - - - - - - - - - - -	- $ - - - - - - - - - - - -

Note 1: Fill in separately the balances of accounts receivable - related parties, notes receivable - related parties, other receivables–related parties.

Note 2: Other receivables is not applicable to use turnover days calculation.

Yem Chio Co., Ltd. and Subsidiaries

Significant inter-company transactions during the reporting period

For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 9

Table 9
No. (Note 1)	Companyname	Counterparty	Relationship (Note 2)	Transaction
				Account	Amount	Transaction terms	Percentage of consolidated operating revenues or total assets (Note 3)
0 0 1 2 2 2 3 4 5 6 6 6	The Company The Company Xin Chio Co., Ltd. ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology (Shanghai) Limited ACHEM Technology Holding Limited ASIACHEM International Corporation Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd.	ACHEM Technology Corporation Wang Chio petrochemical (Jiangsu) Co., Ltd. ACHEM Technology Corporation Foshan Inder Adhesive Product Co., Ltd. Ningbo Yem Chio Co., Ltd. ACHEM Industry America Inc. Wang Chio petrochemical (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology Holding Limited ACHEM Technology Corporation ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. Wang Chio petrochemical (Jiangsu) Co., Ltd.	(1) (1) (3) (1) (1) (1) (3) (1) (3) (2) (3) (3)	Sales Other receivables Other receivables Purchase Purchase Sales Other receivables Other receivables Other receivables Sales Sales Other receivables	516,730 $ 624,774 328,994 170,679 191,131 138,253 592,366 377,110 676,991 226,742 294,437 373,117	30 days after monthly billings Depends on negotiation Depends on negotiation 100 days after shipment 60 days after monthly billings 60 days after monthly billings Depends on negotiation Depends on negotiation Depends on negotiation 60 days after monthly billings 60 days after monthly billings Depends on negotiation	3.91% 2.01% 1.06% 1.29% 1.45% 1.05% 1.90% 1.21% 2.17% 1.71% 2.23% 1.20%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

(1) Parent company to subsidiary.
(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Yem Chio Co., Ltd. and Subsidiaries

Information on investees (not including investees in Mainland China) For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 10

Table 10
Investor	Investee (Note 1`、`2)	Location	Mainbusiness activities	Initial investment amount		Sharesheld as atDecember31		,2023	Net profit (loss) of the investee for the year ended December 31, 2023	Investment income (loss) recognised by the Company for the year ended December 31, 2023 (Note 3)	Footnote
				Balance as at December 31,2023	Balance as at December31,2022	Numberofshares	Ownership (%)	Carrying amount
The Company The Company The Company The Company The Company The Company The Company YEM CHIO YEM CHIO ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Holding Limited ACHEM Technology Holding Limited ACHEM Technology Holding Limited ACHEM Technology Holding Limited ACHEM Technology Holding Limited ACHEM Technology Holding Limited ACHEM Technology Americas Ltd. ACHEM Opto-Electronic Corporation ACHEM Technology China	YEM CHIO UINN HOTEL Wong Chio Development., Ltd. ACHEM Technology Corporation Xin Chio Co., Ltd. Yanrun Development Co., Ltd. King Sun New Tech Co., Ltd. ASIA PLASTICS WAN CHIO ASIACHEM International Corporation ACHEM Technology Holding Limited Valueline Investment Corporation ACHEM Opto-Electronic Corporation Xin Chio Co., Ltd. Pantech Tape Co., Ltd. ACHEM Technology Americas Ltd. ACHEM Technology China ACHEM Technology (Vietnam) Ltd. WAN CHIO ASIA PLASTICS ACHEM Technology (M) SDN. Bhd. ACHEM Industry America Inc. AOE Holding Limited LANDMART	BVI Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan BVI BVI BVI BVI Taiwan Taiwan Taiwan Taiwan Cayman Islands Cayman Islands Vietnam BVI BVI Malaysia U.S.A. BVI Samoa	Manufacturing of adhesives and polystyrene sheets; investment holdings Hotel management and related business Undertaking civil engineering and hydraulic engineering Manufacturing of adhesives and polystyrene sheets; investment holdings Sales of wrapping material Operating real estate related business Construction and Management of Solar Sales of adhesives and polystyrene sheets; investment holdings Sales of raw materials; investment holdings Investment of adhesives and related products Investment of high technology industry Investment holdings Manufacturing of electronic parts and components Sales of wrapping material Manufacturing and sales of various adhesives products Investment of high technology industry Investment of high technology industry Manufacturing and sales of various adhesives products Sales of raw materials; investment holdings Sales of raw materials; investment holdings Business of import, export and distribution Manufacturing and sales of various adhesives products Investment of high technology industry Investment of high technology industry	1,446,758 $ 25,740 345,077 3,999,048 299,264 8,000 72,105 357,191 899,657 357,237 3,098,876 249,287 362,935 242,903 41,160 418,908 2,094,360 368,460 571,113 536,370 4,268 267,134 64,996 859,740	1,446,758 $ 25,740 345,077 3,999,048 299,264 8,000 - 357,191 899,657 357,237 3,098,876 249,287 321,550 242,903 - 418,908 2,094,360 368,460 571,113 536,370 4,268 267,134 64,996 859,740	47,117,523 - 34,507,664 399,904,848 25,740,120 1,320,000 1,650,000 11,632,500 40,400,000 23,269 100,924 826,089 24,575,000 14,930,000 1,200,000 13,643,000 68,209,075 - 18,600,000 14,217,500 353,152 50,000 4,234 28,000,000	100.00% 100.00% 100.00% 100.00% 38.86% 40.00% 27.50% 45.00% 68.47% 100.00% 100.00% 100.00% 100.00% 22.54% 100.00% 100.00% 100.00% 100.00% 31.53% 55.00% 90.00% 100.00% 100.00% 100.00%	762,942) $( (35,918) 302,149 5,731,324 82,199 (5,478) 75,949 (203,484) (715,698) 1,402,874 3,921,212 72,533 527,092 311,160 39,429 1,121,675 3,433,908 182,755 (329,574) (248,702) 20,788 1,003,466 543,372 1,359,216	28,171 $ 20,089 6,660 675,688 131,017 (5,724) 37,023 (472,614) 311,969 33,636 338,986 1,078 21,631 131,017 (1,731) 17,349 515,671 (27,795) 311,969 (472,614) 2,201 17,565 21,223 58,863	12,007 $ (7,728) 7,262 688,802 38,220 (2,289) 3,844 - - - - - - - - - - - - - - - - -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate Associate An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary Associate An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect subsidiary An indirect Subsidiary An indirect subsidiary An indirect subsidiary

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.

Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:

(1) The columns of ‘Investee’, ‘Location’, ‘Main business activities’, Initial investment amount’ and ‘Shares held as at December 31, 2023’ should fill orderly in the Company’s (public company’s) information on investees and every

directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column.

(2) The ‘Net profit (loss) of the investee for the year ended December 31, 2023’ column should fill in amount of net profit (loss) of the investee for this period.
(3) The ‘Investment income (loss) recognised by the Company for the year ended December 31, 2023’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and

recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Note 3: Indirect subsidiary' s income is recognised by subsidiary.

Yem Chio Co., Ltd. and Subsidiaries

Information on investments in Mainland China - Basic Information

For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

Table 11

Table 11
Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2023	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2023		Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 20223	Net income of investee for the year ended December 31, 2023	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2023 (Note 2)	Book value of investments in Mainland China as of December 31, 2023	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2023	Footnote (Note 2)
					Remitted to Mainland China	Remitted back to Taiwan
Ningbo Yem Chio Co., Ltd. Master Package (Shanghai) Material Technology Co., Ltd. ACHEM (Tianjin) Adhesive Product Co., Ltd. (liquidated and deregistered) ACHEM Technology (Wuhan) Limited Foshan Inder Adhesive Product Co., Ltd. Fuzhou Fuda Plastic Products Co., Ltd. ACHEM Technology (Chengdu) Limited ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. ACHEM Technology (Shanghai) Limited Winda Opto-Electronics Co., Ltd. Wan Chio Petrochemical (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd.	Sales of adhesives andpolystyrene sheets Wholesale, import and export of various wrapping materials, computer software, hardware and peripherals Sales of various adhesives products Sales of various adhesives products Manufacturing and sales of various adhesives products Manufacturing and sales of various adhesives products and material Manufacturing and sales of adhesives and BOPP film Manufacturing and sales of adhesives and BOPP film Manufacturing and sales of adhesives and BOPP film Manufacturing and sales of polarizing film, photoelectric material, optical thin-film and polarizing adhesives Manufacturing and sale of various plastic materials Manufacturing and sale of various plastic materials	344,816 $ 187,300 - 31,319 433,723 39,917 4,606 230,656 494,351 626,093 2,456,400 921,150	2 1 1 1 2 2 2 2 2 2 2 2	879,726 $ 187,300 22,151 35,751 170,658 32,240 4,606 230,656 494,351 152,800 1,470,770 921,150	- $ - - - - - - - - - - -	- $ - 63 - - - - - - - - -	879,726 $ 187,300 - 35,751 170,658 32,240 4,606 230,656 494,351 152,800 1,470,770 921,150	181,359 $ 2,605 - 365 37,080 (154) 1,192 104,210 58,886 145,358 629,307 328,433	100.00% 61.40% 61.40% 61.40% 62.30% 100.00% 100.00% 100.00% 100.00% 31.42% 100.00% 100.00%	181,359 $ 1,685 - 236 23,101 (154) 1,192 104,210 58,886 45,671 629,307 328,433	439,655) $( 70,593 - 3,615 507,824 60,363 9,803 970,627 1,358,402 990,961 (1,789,166) 518,796	- $ - - - - - - - - 392,697 - -	B B Note 4 B B B B B B B B B

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2023	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA (Note 3)
Yem Chio Co., Ltd. ACHEM Technology Corporation Xin Chio Co., Ltd.	$1,110,504 $3,272,658 $223,051	$223,051 $1,130,463 $3,272,658	$7,624,396 $3,577,526 $641,215

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.

(3) Others.

Note 2: In the ‘Investment income (loss) recognised by the Company for the year ended December 31, 2023’ column:

(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.

(2) Indicate the basis for investment income (loss) recognition in the number of one of the following four categories:

A. The financial statements were audited and attested (reviewed) by international accounting firm which has cooperative relationship with accounting firm in R.O.C.

B. The financial statements were audited (reviewed) by R.O.C. parent company’s CPA.
C. The financial statements for the same periods ended were not audited (reviewed) by auditors.

D. Others.

Note 3: (1) Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2023 is USD 36,167 thousand and investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) is USD 36,817 thousand.

(2) ACHEM Technology Corporation’s accumulated amount of remittance to Mainland China as of December 31, 2023 was USD 102,362 thousand, (in addition there is USD 2,342 thousand to be remitted) and the amount approved by MOEA was USD 123,818 thousand.
(3) Xin Chio Co., Ltd.’s accumulated amount of remittance to Mainland China as of December 31, 2023 was USD 7,264 thousand, and the amount approved by MOEA was USD 7,264 thousand.
Note 4: The company received approval from the Investment Commission of the Ministry of Economic Affairs to invest USD 721 thousand in ACHEM (Tianjin) Adhesive Product Co., Ltd. ACHEM (Tianjin) was liquidated and deregistered in 2022 and the Company had collected the remaining liquidation amount 63 thousand in 2023. In July 2023, Investment Commission of MOEA had approved the cancellation of this investment in ACHEM (Tianjin) of USD 721 thousand.

Yem Chio Co., Ltd.

Major shareholders information

December 31, 2023

Table 12

Table 12
Name of major shareholders	Shares
	Number of shares held	Ownership (%)
ASIA PLASTICS CO., LTD. YING CHUNG CO., LTD. INGS CHYUANG INTERNATIONAL CO., LTD.	52,974,405 51,698,666 42,748,839	7.96% 7.77% 6.42%

Note: The major shareholders' information was derived from the data using the Company issued common shares (including treasury shares) and preference

shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of the quarter and was calculated by Taiwan Depository & Clearing Corporation.

The share capital which was recorded on the financial statements of the Company may be different from the actual number of shares

in dematerialised form due to the difference of calculation basis.

YEM CHIO CO., LTD.

1.STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item	Description	Description		Amount
Petty cash Checking deposits Demand deposits `－`NTD `－`Foreign currency Total	USD 2,911 EUR 132 HKD 27 JPY 451 RMB 225 thousand	Exchange rate 30.7050 33.9800 3.9290 0.2172 4.3270		399 $ 15,658 227,599 95,060 322,659 338,716 $

YEM CHIO CO., LTD.

2.STATEMENT OF ACCOUNTS RECETVABLE

DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Client Name	Description		Amount	Note
Third parties`:` Client A Client B Client C Client D Client E Client F Others Less: Loss allowance	Subtotal Total		45,267 $ 27,254 20,687 15,693 15,612 12,303 115,327 252,143 (15,832) 236,311 $	The amount of individual client in others does not exceed 5% of the account balance.

YEM CHIO CO., LTD.

3.STATEMENT OF INVENTORIES

DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item	Description	Amount	Amount	Note
		Cost	Net Realisable Value
Packaging material sales channel business: Raw materials Finished goods Less: Allowance for loss on inventory Subtotal Land development & construction business: Construction-in-progress Land held for building Prepayments of land Less: Allowance for loss on inventory Subtotal Total	Based on net realisable value `〃` Based on net realisable value (note) `〃` `〃`	186,388 $ 195,144 381,532 (10,950) 370,582 6,234,680 2,198,660 300,589 8,733,929 - 8,733,929 9,104,511 $	180,805 $ 189,777 370,582 - 370,582 6,234,680 2,198,660 300,589 8,733,929 - 8,733,929 9,104,511 $

Note: Due to the industry characteristics of the land development and construction business, the net realisable value of

the construction-in-progress is difficult to determine, therefore, the net realisable value presented represents that the value of the construction-in-progress is not lower than its cost.

YEM CHIO CO., LTD.

4.STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Name	As of 1 January 2023	As of 1 January 2023	Additions (Note 1)	Additions (Note 1)	Decrease	(Note 2)	Ending Balance	Ending Balance		Market Value or Net Assets Value	Market Value or Net Assets Value	Collateral
	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Shares (in thousands)	%	Amount	Unit Price	Amount
Recorded under assets ACHEM Technology Corporation Wong Chio Development, Ltd. Xin Chio Co., Ltd. King Sun New Tech Co., Ltd. Recorded under liabilities Yanrun Development Co., Ltd. UINN HOTEL YEM CHIO	399,905 34,508 25,740 - 1,320 - 47,118	5,768,267 $ 294,887 66,929 -	- - - 1,650 - - -	739,193 $ 7,262 67,370 75,949	- - - - - - -	776,136 $ - 52,100 -	399,905 34,508 25,740 1,650 1,320 - 47,118	100.00% 100.00% 38.86% 27.50% 40.00% 100.00% 100.00%	5,731,324 $ 302,149 82,199 75,949	14.33 $ 8.76 20.30 (Note 3) 46.03 $- - -	5,731,324 $ 302,149 82,199 75,949	None None None None None None None
		$6,130,083		$889,774		$828,236			$6,191,621		$6,191,621
		3,188) ( $ (28,190) (826,083)		- $ - 63,141		2,290 $ 7,728 -			5,478) ( $ (35,918) (762,942)		5,478) ( $ (35,918) (762,942)
		857,461) ( $		63,141 $		10,018 $			804,338) ( $		$(804,338)

Note 1: The amount includes investment income, changes in equity of investees, and increase in investments, etc.

Note 2: The amount includes investment loss, changes in equity of investees, and decrease in investments, etc.

Note 3: The unit price is calculated by closing price of the Taipei Exchange or the Taiwan Stock Exchange as of December 29,2023.

YEM CHIO CO., LTD.

5.STATEMENT OF SHORT-TERM BORROWINGS

DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Creditor	Amount	Range of interest rates	Collateral
Taiwan Cooperative Bank Bank of Taiwan First Commercial Bank Chang Hwa Commercial Bank Mega International Commercial Bank Bank of Kaohsiung Taipei Fubon Bank Taiwan Cooperative Bank First Commercial Bank Hua Nan Commercial Bank Bank of Kaohsiung O-Bank Shin Kong Commercial Bank Bank SinoPac Yuanta Commercial Bank Taishin International Bank Taipei Fubon Commercial Bank EnTie Commercial Bank Total	370,000 $ Expiring within 1 yea 300,000 `〃` 160,000 `〃` 750,000 `〃` 300,000 `〃` 201,000 `〃` 230,000 `〃` 90,000 `〃` 387,493 `〃` 100,000 `〃` 99,000 `〃` 100,000 `〃` 100,000 `〃` 200,000 `〃` 250,000 `〃` 250,000 `〃` 100,000 `〃` 200,000 `〃` 4,187,493 $	Note `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Pledged Pledged Pledged Pledged Pledged Pledged Pledged None None None None None None None None None None None
	4,187,493 $

Note: The interest rate ranged from 1.70%-2.11%.

YEM CHIO CO., LTD.

6.STATEMENT OF LONG-TERM BORROWINGS

DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Creditor	Amount	Contract Period	Range of interest rates	Collateral
Syndicated loan of Land Bank of Taiwan Syndicated loan of 6 other banks consisting of Taiwan Cooperative Bank (Tranche A) Syndicated loan of 6 other banks consisting of Taiwan Cooperative Bank (Tranche B) Taiwan Shin Kong Commercial Bank First Commercial Bank CTBC Bank President Securities Corporation KGI Bank Subtotal Less: Expiring within 1 year Less: 1 Operating cycle Total	1,205,000 $ 880,000 1,000,000 1,083,200 258,000 701,000 392,078 300,000	The loan shall be repaid starting from October 2020, on schedule, with the deadline of repayment in December 2025 pursuant to the agreement The loan shall be repaid starting from March 2023, on schedule, with the deadline of repayment in March 2026 pursuant to the agreement. The loan shall be repaid starting from March 2024, on schedule, with the deadline of repayment in March 2026 pursuant to the agreement. March 2021-December 2026 August 2016-August 2031 November 2021-February 2027 June 2023-March 2025 December 2023-December 2026	Note `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Pledged Pledged None Pledged Pledged Pledged Pledged Pledged
	5,819,278 (865,000) (2,281,000)
	2,673,278 $

Note: The interest rate ranged from 2.03%-3.14%.

100

YEM CHIO CO., LTD.

7.STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Vendor Name	Description		Amount	Note
Third Parties: Vendor A Vendor B Vendor C Vendor D Others Total			18,200 $ 17,695 11,128 8,118 52,594 107,735 $	The amount of individual client in others does not exceed 5% of the account balance.

101

YEM CHIO CO., LTD.

8.STATEMENT OF SALES OF GOODS

DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item	Volume		Amount	Note
Sales of goods Adhesives BOPP Film Subtotal Less: Sales discounts and allowances Construction revenue	223,593 square meters 43,972 tons		628,277 $ 2,042,519 2,670,796 (12,844) 2,657,952 - 2,657,952 $

102

YEM CHIO CO., LTD.

9.STATEMENT OF COST OF SALES

FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item	Description		Amount	Note
Cost of goods sold from manufacturing Raw materials used Beginning raw materials Add: Raw materials purchased Less: Ending raw materials Transfers to manufacturing and operating expenses Raw materials used for the year Direct labor Manufacturing expense Manufacturing cost Beginning finished goods Add: Purchase for the year Less: Transfers to operating expenses Ending finished goods Others Manufacturing and selling costs Less: Revenue from sale of scraps Cost of goods sold from manufacturing Cost of construction Operating costs			220,675 $ 1,917,443 (186,388) (26,428) 1,925,302 91,100 589,108 2,605,510 188,382 27,746 (33,850) (195,144) 7,736 2,600,380 (814) 2,599,566 838 2,600,404 $

103

YEM CHIO CO., LTD.

10.STATEMENT OF MANUFACTURING EXPENSES

FOR THE YEAR ENDED 31 DECEMBER 2023

(Expressed in thousands of New Taiwan dollars)

Item	Description		Amount	Note
Utilities Depreciation Labour and health insurance fees Indirect labour Repairs and maintenance expense Pensions Indirect materials Other manufacturing expenses			207,389 $ 191,467 15,316 49,102 41,814 5,238 31,003 47,779 589,108 $

104

YEM CHIO CO., LTD.

11.STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED 31 DECEMBER 2023

(Expressed in thousands of New Taiwan dollars)

Item	Selling Expenses	Administrativ e Expenses	Research and Development Expenses	Total
Payroll expense Freight expense Import/export (customs) expense Labour and health insurance expense Depreciation expense Amortisation expense Pensions Others Total	9,750 $ 80,133 11,914 1,134 115 - 539 8,783 112,368 $	55,382 $ - - 5,818 12,593 22 3,121 44,876 121,812 $	- $ - - - - - - - - $	65,132 $ 80,133 11,914 6,952 12,708 22 3,660 53,659 234,180 $

105

YEM CHIO CO., LTD.

12.STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION

(Expressed in thousands of New Taiwan dollars)

Function Nature	For theyears ended 31 December	For theyears ended 31 December	For theyears ended 31 December	For theyears ended 31 December	For theyears ended 31 December	For theyears ended 31 December
	2023			2022
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits expense Salaries Labor and health insurance Pension Remuneration to directors Other employee benefits expense Total Depreciation Amortization	140,202 $ 15,316 5,238 - 7,058	65,132 $ 6,952 3,660 432 1,141	205,334 $ 22,268 8,898 432 8,199	144,760 $ 15,471 5,420 - 6,943	69,017 $ 6,497 3,273 510 1,286	213,777 $ 21,968 8,693 510 8,229
	167,814 $	77,317 $	245,131 $	172,594 $	80,583 $	253,177 $
	191,467 $	12,708 $	204,175 $	192,350 $	10,735 $	203,085 $
	- $	22 $	22 $	- $	22 $	22 $

Note `：`

1.As of December 31, 2023 and 2022, the Company had an average of 363 and 378 employees, respectively, including 4 non-employee directors for both years.

2.Companies who have been listed on Taiwan Stock Exchange or Taipei Exchange should disclose the following information:

(1)For the years ended December 31, 2023 and 2022, the average of employees benefits expense were $675 and $676, respectively.

(2)For the years ended December 31, 2023 and 2022, the average of employees salaries were $566 and $572, respectively.

(3)The average salaries are increase by 1% over the year.

(4)The Company set up an audit committee and thus there's no supervisors' remuneration for both years.

(5)Criteria applied for compensation:

General employees: The Company assesses employees’ salaries based on the industry standard, the Company’s operation structure, and makes adjustments

depending on the market salary dynamics, changes in the overall economic and industrial climate, and the laws and regulations.

Directors and management: The Company refers to the general pay levels in the industry and considers individual's performance and the Company's

operation the correlation of and future risk exposure.

106

AI assistant

YC — Audit Report / Information 2023

52391_rns_2023-11-14_6a838c3e-8400-49a6-86a9-05e23aebb57b.pdf

YEM CHIO CO., LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS WITH INDEPENDENT

AUDITORS’ REPORT

Notice to Readers

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

Opinion

Basis for Opinion

Key Audit Matters

Valuation of inventory

Valuation of investment property

Other matter

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

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

Yem Chio Co., Ltd.

Parent Company Only Balance Sheets

December 31, 2023 and 2022

Yem Chio Co., Ltd.

Parent Company Only Balance Sheets

December 31, 2023 and 2022

Yem Chio Co., Ltd.

Parent Company Only Statements of Comprehensive Income

For the Years Ended December 31, 2023 And 2022

Parent Company Only Statements of Changes in Equity

For the Years Ended December 31, 2023 and 2022

Yem Chio Co., Ltd.

Parent Company Only Statements of Cash Flows For the Years Ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan dollars)

Yem Chio Co., Ltd.

Parent Company Only Statements of Cash Flows For the Years Ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan dollars)

1. History and organization

2. Date and procedures of authorization of financial statements for issue

3. Newly issued or revised standards and interpretations

4. Summary of material accounting policies

(2) Basis of preparation

A. Financial instruments: Recognition and Measurement

Financial asset measured at fair value through profit or loss

Financial asset measured at fair value through other comprehensive income

Financial assets measured at amortised cost

B. Impairment of financial assets

C. Derecognition of financial assets

D. Financial liabilities and equity

Classification between liabilities or equity

Equity instruments

Compound instruments

Financial liabilities

Financial liabilities at amortised cost

Derecognition of financial liabilities

(10) Inventories

(12) Property, plant and equipment

(13) Investment property

(14) Leases

Company as a lessee

Company as a lessor

(15) Impairment of non-financial assets

(16) Treasury shares

(17) Revenue recognition

A. Sales of goods

B. Land development and resale

(18) Borrowing costs

(19) Post-employment benefits

(20) Income taxes

Current income tax

Deferred tax

5. Significant accounting judgements, estimates and assumptions

(1) Judgement

(2) Estimates and assumptions

A. Inventories

B. Investment property

6. Contents of significant accounts

(3) Financial assets at fair value through other comprehensive income

(6) Inventories

(8) Property, plant and equipment

(9) Investment property

(10) Short-term borrowings

YC Audit Report / Information 2023

`－` J. Lease transactions lessee