YC - Audit Report / Information 2024

YEM CHIO CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

WITH INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2024 AND 2023

Address: 7F, No. 397, Xingshan Rd., Neihu Dist., Taipei City 114521, Taiwan (R.O.C.) Telephone: (02)8170-6199

Notice to Readers

For the convenience of readers, the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language consolidated 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 consolidated financial statements of Yem Chio Co., Ltd. and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the consolidated statements of comprehensive income, changes in equity and cash flows for the year ended December 31, 2024 and 2023, and the notes to the consolidated financial statements, including a summary of material accounting policies (collectively referred to as the “consolidated financial statements”).

In our opinion, based on our audits and the reports of the other auditors (please refer to the Other Matter ) , the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2024 and 2023, and its consolidated financial performance and cash flows for the years ended December 31, 2024 and 2023, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company and its subsidiaries in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits and the reports of the 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 consolidated financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Valuation of inventory

The Group 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 Group’s inventories were measured at the lower of cost and net realisable value. Considering the Group’s inventories were significant to the consolidated financial statements and the determination of net realizable value for the inventories involves judgements and estimates, 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 Group 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 consolidated financial statements for the accounting policies, significant accounting estimates and the information about inventories, respectively.

Valuation of investment property

As of December 31, 2024 and 2023, the fair value of investment property was $2,399,775 and $2,294,881, constituting 7% and 8% of total assets, respectively. The Group’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 consolidated 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 subsidiaries which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these subsidiaries, is based solely on the reports of the other auditors. Total assets of these subsidiaries amounted to $1,728,606 and $1,625,238, constituting 5% and 5% of consolidated total assets as at December 31, 2024 and 2023, respectively, and net operating revenue amounted to $2,738,331 and $1,186,474, constituting 17% and 9% of consolidated operating revenue for the year ended December 31, 2024 and 2023, respectively.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2024 consolidated 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.

Others

We and other auditors have audited and expressed an unqualified opinion with other matter section on the parent company only financial statements of the Group as of and both for the years ended December 31, 2024 and 2023.

Liu, Jung Chin Hsieh, Sheng-An Ernst & Young, Taiwan March 14, 2025

Notice to Readers

The accompanying consolidated 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 consolidated financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying consolidated 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. and Subsidiaries

Consolidated Balance Sheets

December 31, 2024 and 2023

(Expressed in thousands of New Taiwan Dollars)

December 31, 2024 AMOUNT % $ 2,360,882 7 545,305 2 1,422,985 4 1,394,610 4 371,053 1 2,196,257 6 120,327 - 13,256,338 37 451,904 1 212,549 1 22,332,210 63 1,000 - 118,764 - 22,567 - 1,043,936 3 8,442,100 24 315,287 1 2,399,775 7 292,849 1 157,489 1 61,249 - 12,855,016 37 $ 35,187,226 100	December 31, 2023	December 31, 2023
AMOUNT $ 2,360,882 545,305 1,422,985 1,394,610 371,053 2,196,257 120,327 13,256,338 451,904 212,549 22,332,210 1,000 118,764 22,567 1,043,936 8,442,100 315,287 2,399,775 292,849 157,489 61,249 12,855,016 $ 35,187,226	AMOUNT $ 1,697,871 794,086 1,214,833 698,414 349,701 2,214,185 157,808 10,612,544 467,720 288,588 18,495,750 - 84,840 62,664 1,061,432 8,386,151 322,711 2,294,881 185,670 207,563 39,075 12,644,987 $ 31,140,737	%
		5 3 4 2 1 7 - 34 2 1
		59
		- - - 3 27 1 8 1 1 -
		41
		100

(Continued)

Consolidated Balance Sheets (Continued)

Yem Chio Co., Ltd. and Subsidiaries

December 31, 2024 and 2023

(Expressed in thousands of New Taiwan Dollars)

December 31, 2024 AMOUNT % $ 6,055,610 17 50,000 - 476,432 2 236,167 1 759,961 2 723,310 2 104,414 - 40,641 - 4,124,158 12 52,951 - 12,623,644 36 8,078,152 23 495,967 2 95,018 - 109,811 - 8,778,948 25 21,402,592 61 6,792,085 19 - - 2,755,697 8 676,958 2 560,736 2 2,323,104 7 529,627 1 ( 414,345) ( 1) 13,223,862 38 560,772 1 13,784,634 39 $ 35,187,226 100	December 31, 2023	December 31, 2023
AMOUNT $ 6,055,610 50,000 476,432 236,167 759,961 723,310 104,414 40,641 4,124,158 52,951 12,623,644 8,078,152 495,967 95,018 109,811 8,778,948 21,402,592 6,792,085 - 2,755,697 676,958 560,736 2,323,104 529,627 ( 414,345) ( 13,223,862 560,772 13,784,634 $ 35,187,226	AMOUNT $ 5,721,162 400,000 756,897 267,387 738,009 605,372 111,394 39,550 3,442,019 117,434 12,199,224 5,538,878 457,726 114,127 123,455 6,234,186 18,433,410 6,582,467 66,857 2,718,738 568,926 511,756 1,868,613 94,532 ( 414,345) ( 11,997,544 709,783 12,707,327 $ 31,140,737	%
		19 1 3 1 2 2 - - 11 -
		39
		18 2 - -
		20
		59
		21 - 9 2 2 6 - 1)
		39
		2
		41
		100

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

Yem Chio Co., Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income

For the Years Ended December 31, 2024 and 2023

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

Items	Notes	2024		2023
		AMOUNT	%	AMOUNT	%
4000 Net revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit gains (losses) 6000 Total operating expenses 6900 Operating 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 8310 Other comprehensive (loss) income 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 8367 Unrealised losses from investments in debt instruments measured at fair value through other comprehensive income 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	6(18)`、`7 and 14 6(6) and (21) 6(16)`、`(20) and (21) 6(19) 6(22) and 7 6(22) 6(22) 6(7) 6(23) 6(23)	$ 15,891,082 ( 13,265,074)	100 (83)	$ 13,223,736 ( 11,045,427)	100 (84)
		2,626,008	17	2,178,309	16
		( 995,122) ( 590,766) ( 36,881) 25,059	( 6) ( 4) - -	( 908,915) ( 509,887) ( 59,105) ( 27,876)	( 7) ( 4) - -
		( 1,597,710)	(10)	( 1,505,783)	(11)
		1,028,298	7	672,526	5
		53,240 206,980 97,539 ( 291,592) 49,617	- 1 1 ( 2) -	72,657 346,917 42,407 ( 186,348) 47,226	1 3 - ( 1) -
		115,784	-	322,859	3
		1,144,082 ( 254,711)	7 (1)	995,385 ( 139,847)	8 (1)
		$ 889,371	6	$ 855,538	7
		$ 4,347 603,502 ( 868)	- 3 -	$ 9,609 412,137 ( 1,922)	- 3 -
		606,981	3	419,824	3
		254,548 484 35,000	2 - -	( 34,439) 1,359 ( 23,383)	- - (1)
		290,032	2	( 56,463)	(1)
		$ 897,013	5	$ 363,361	2
		$ 1,786,384	11	$ 1,218,899	9

(Continued)

Yem Chio Co., Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income (Continued) For the Years Ended December 31, 2024 And 2023

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

Items	Notes	2024		2023
		AMOUNT	%	AMOUNT	%
Profit attributable to: 8610 Owners of the parent 8620 Non-controlling interests Total Comprehensive income (loss) attributable to: 8710 Owners of the parent 8720 Non-controlling interests Total Earnings per share (in dollars) 9750 Basic earnings per share 9850 Diluted earnings per share	6(24)	$ 816,889 72,482	6 -	$ 801,205 54,333	7 -
		$ 889,371	6	$ 855,538	7
		$ 1,697,286 89,098	11 -	$ 1,171,180 47,719	9 -
		$ 1,786,384	11	$ 1,218,899	9
		$	1.27	$	1.30
		$	1.24	$	1.21

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

Yem Chio Co., Ltd. and Subsidiaries Consolidated Statements of Changes in Equity For the Years Ended December 31, 2024 and 2023

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent

Capital	Capital	Capital surplus		Retained Earnings			Other EquityInteres	t	Treasurystocks	Equity attributable to owners of the parent	Non-controlling interest	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
$ 6,404,897	$ 10,000	$ 2,638,722	$ 467,875	$ 477,708	$ 1,549,179	($ 313,587)	($ 122,317)	$ 439,576	($ 414,345)	$ 11,137,708	$ 683,448	$ 11,821,156
- -	- -	- -	- -	- -	801,205 7,687	- ( 51,208)	- 413,496	- -	- -	801,205 369,975	54,333 ( 6,614)	855,538 363,361
-	-	-	-	-	808,892	( 51,208)	413,496	-	-	1,171,180	47,719	1,218,899
- - - - - - 177,570 - -	- - - - - 234,427 ( 177,570) - -	- - - - 43,512 18,081 - 18,423 -	- 101,051 - - - - - - -	- - 34,048 - - - - - -	( 625,787) ( 101,051) ( 34,048) 271,428 - - - - -	- - - - - - - - -	- - - ( 271,428) - - - - -	- - - - - - - - -	- - - - - - - - -	( 625,787) - - - 43,512 252,508 - 18,423 -	- - - - - - - - ( 21,384)	( 625,787) - - - 43,512 252,508 - 18,423 ( 21,384)
$ 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	$ 709,783	$ 12,707,327
$ 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	$ 709,783	$ 12,707,327
- -	- -	- -	- -	- -	816,889 3,479	- 272,932	- 603,986	- -	- -	816,889 880,397	72,482 16,616	889,371 897,013
-	-	-	-	-	820,368	272,932	603,986	-	-	1,697,286	89,098	1,786,384
- - - - 209,618 - - - -	- - - - 142,761 ( 209,618) - - - -	- - - - 6,026 - 12,589 18,423 ( 79) -	- 108,032 - - - - - - - -	- - 48,980 - - - - - - -	( 650,688) ( 108,032) ( 48,980) 441,823 - - - - - -	- - - - - - - - - -	- - - ( 441,823) - - - - - -	- - - - - - - - - -	- - - - - - - - - -	( 650,688) - - - 148,787 - 12,589 18,423 ( 79) -	- - - - - - - - - ( 238,109)	( 650,688) - - - 148,787 - 12,589 18,423 ( 79) ( 238,109)
$ 6,792,085	$ -	$ 2,755,697	$ 676,958	$ 560,736	$ 2,323,104	($ 91,863)	$ 181,914	$ 439,576	($ 414,345)	$ 13,223,862	$ 560,772	$ 13,784,634

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

Yem Chio Co., Ltd. and Subsidiaries

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2024 and 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Net income before tax Adjustments Adjustments to reconcile profit Depreciation Amortisation Expected credit (gains) losses Net gain 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 Impairment loss on 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 Other receivables Financial assets at amortised cost Inventories Prepayments Other current assets Other non-current assets Changes in operating liabilities Notes payable Contract liabilities Accounts payable Other payables Other payables - related parties Other current liabilities Other non-current liabilities Cash inflow used in operations Interest received Dividend received Interest paid Income taxes paid Net cash used in by operating activities (Continued)	2024	2023
	$ 1,144,082 600,820 965 ( 25,059) ( 128,801) 291,592 ( 53,240) ( 49,617) ( 6,691) 226,263 ( 83,602) 7,097 ( 63,201) ( 17,593) 117,543 43,659 ( 44,562) ( 2,627,203) 36,877 76,361 266 ( 31,263) ( 322,584) ( 10,507) 250,539 - ( 64,610) ( 4,910)	$ 995,385 549,086 883 27,876 ( 39,186) 186,348 ( 72,657) ( 47,226) 3,558 - ( 54,248) 2,757 ( 197,297) ( 50,730) ( 164,805) ( 63,369) 93,897 ( 1,919,763) 25,430 28,108 - 18,866 17,013 78,993 ( 25,094) ( 10,097) ( 43,200) ( 10,100)
	( 737,379) 47,115 63,201 ( 388,711) ( 168,907)	( 669,572) 58,671 239,749 ( 285,391) ( 234,514)
	( 1,184,681)	( 891,057)

Yem Chio Co., Ltd. and Subsidiaries

Consolidated Statements of Cash Flows (Continued)

For the Years Ended December 31, 2024 and 2023

(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 Return of capital from an investee company under the equity method upon liquidation Increase in financial assets at amortised cost Acquisition of a subsidiary (deducted acquired cash and cash equivalents) Decrease in other receivables Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease in other non-current assets Decrease in other non-current liabilities Net cash (used in) provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-term notes and bills payable Proceeds from long-term borrowings Repayment of long-term borrowings Repayment of corporate bonds payable Decrease in lease liabilities Acquisition of subsidiaries Change in non-controlling interests Payment of cash dividends Net cash provided by financing activities Effect of changes in foreign exchange rates Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	2024	2023
	( 4,679,659) 5,074,928 - ( 2,172,606) 2,540,312 5,060 ( 611,536) 16,337 - ( 444,640) 29,302 ( 821) 6,453 ( 8,695)	( 4,196,654) 3,897,186 ( 72,105) ( 1,156,874) 1,283,597 - ( 42,410) ( 37,815) 632,285 ( 301,442) 2,564 ( 575) 10,130 ( 16,820)
	( 245,565)	1,067
	246,812 ( 350,000) 8,256,939 ( 5,187,280) ( 405) ( 46,382) - - ( 650,688)	1,150,353 ( 330,000) 1,875,049 ( 1,499,445) ( 118,600) ( 43,373) ( 41,385) 20,967 ( 625,787)
	2,268,996	387,779
	( 175,739)	36,752
	663,011 1,697,871	( 465,459) 2,163,330
	$ 2,360,882	$ 1,697,871

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

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2024 and 2023

(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 and its subsidiaries (collectively referred to as the “Group”) are 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.

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 consolidated financial statements were authorised for issuance by the Board of Directors on March 14, 2025.

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 Group applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognised by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after 1 January 2024. The adoption of these new standards and amendments had no material impact on the Group.

(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 Group as at the end of the reporting period are listed below:

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
a	Lack of Exchangeability– Amendments to IAS 21	1 January2025

The abovementioned amendments are applicable for annual periods beginning on or after 1 January 2025 and have no material impact on the Group.

(3) Standards or interpretations issued, revised or amended, by IASB which have not been endorsed by FSC, and not yet adopted by the Group as at the end of the reporting period are listed below.

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

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

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
a	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
b	IFRS 17 “Insurance Contracts”	1 January2023
c	IFRS 18 “Presentation and Disclosure in Financial Statements”	1 January2027
d	Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures(IFRS 19)	1 January 2027
e	Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7	1 January 2026
f	Annual Improvements to IFRS AccountingStandards – Volume 11	1 January2026
g	Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7	1 January 2026

IFRS 18 replaces IAS 1 Presentation of Financial Statements. The main changes are as below:

A. Improved comparability in the statement of profit or loss (income statement)

IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit or loss. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities’ performance and make it easier to compare entities.

B. Enhanced transparency of management-defined performance measures

IFRS 18 requires entities to disclose explanations of those entity-specific measures that are related to the income statement, referred to as management-defined performance measures.

C. Useful grouping of information in the financial statements

IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need.

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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

(1) Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”), IFRS, IASs, IFRIC and SIC, which are endorsed by FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

The consolidated 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 consolidated financial statements are expressed in thousands of New Taiwan Dollars (“NT$”) unless otherwise stated.

(3) Basis of consolidation

Preparation principle of consolidated financial statements

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:

A. power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee),
B. exposure, or rights, to variable returns from its involvement with the investee, and
C. the ability to use its power over the investee to affect its returns.

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

A. the contractual arrangement with the other vote holders of the investee;

B. rights arising from other contractual arrangements;
C. the Group’s voting rights and potential voting rights.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

Subsidiaries are fully consolidated from the acquisition date, being the date on which the Company obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using uniform accounting policies. All intra-Group balances, income and expenses, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full.

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

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

A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.

Total comprehensive income of the subsidiaries is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

If the Group loses control of a subsidiary, it:

A. derecognises the assets (including goodwill) and liabilities of the subsidiary;
B. derecognises the carrying amount of any non-controlling interest;
C. recognises the fair value of the consideration received;
D. recognises the fair value of any investment retained;
E. reclassifies the parent’s share of components previously recognised in other comprehensive income to profit or loss, or transfer directly to retained earnings if required by other IFRSs; and
F. recognises any resulting difference in profit or loss.

The consolidated entities are listed as follows:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Note
			December 31,2024	December 31,2023
Yem Chio Co., Ltd. YEM CHIO	Yem Chio (BVI) Co., Ltd. (YEM CHIO) ACHEM Technology Corporation Yem Chio Distribution Co., Ltd.(Original Name:Xin Chio Global Co.,Ltd.) UINN Hotel Co., Ltd. (UINN HOTEL) Wong Chio Development, Ltd. King Sun New Tech Co., Ltd. Asia Plastics (BVI) Co., Ltd. (ASIA PLASTICS) Wan Chio (BVI) Co., Ltd. (WAN CHIO)	Investment holdings Manufacturing of adhesives and polystyrene sheets; investment holdings Sales of wrapping materials and business of import and export Hotel management and related business Undertaking civil engineering and hydraulic engineering Solar power system engineering, manufacturing and sales of solar-related electronic equipment. Investment holdings Investment holdings	100 100 38.86 100 100 66.36 45 68.47	100 100 38.86 100 100 27.5 45 68.47	Note 5 Note 6

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Note
			December 31,2024	December 31,2023
ACHEM Technology Corporation Yem Chio Distribution Co., Ltd. ASIA PLASTICS WAN CHIO ASIACHEM International Corporation ACHEM Technology Holdings Limited ACHEM Technology China	ASIACHEM International Corporation ACHEM Opto-Electronic Corporation Valueline Investment Corporation ACHEM Technology Holdings Limited Yem Chio Distribution Co., Ltd. Pantech Tape Co., Ltd. Master Package (Shanghai) Material Technology Co., Ltd. ACHEM Technology (Wuhan) Limited Achem Technology (Ningbo) Co., Ltd. (Ningbo Yem Chio Co., Ltd.) Wan Chio Petrochemical (Jiangsu) Co., Ltd. Fuzhou Fuda Plastic Products Co., Ltd. ACHEM Technology China ACHEM Technology Americas Ltd. ACHEM Technology (M) Sdn. Bhd. ACHEM Technology (Vietnam) Ltd. Wan Chio (BVI) Co., Ltd. (WAN CHIO) ACHEM Technology (India) Ltd. Asia plastics (BVI) CO., Ltd. (ASIA PLASTICS) ACHEM Technology (Chengdu) Limited	Investment holdings Manufacturing of electronic parts and components Investment holdings Investment of high technology industry Sales of wrapping materials and business of import and export Manufacturing and sales of various adhesive products Import and export trading of packaging materials Sales of various adhesiveproducts Manufacturing and sales of adhesives and polystyrene sheets Discontinued operations Discontinued operations Investment in high technology industry Investment in high technology industry Business of import, export and distribution Manufacturing and sales of various adhesive products Investment holdings Discontinued operations Investment holdings Manufacturing and sales of various adhesive products	100 100 100 100 22.54 100 100 100 100 50.06 - 100 100 90 100 31.53 100 55 100	100 100 100 100 22.54 100 100 100 100 50.06 100 100 100 90 100 31.53 100 55 100	Note 1 Note 5 Note 4 Note 10 Note 8 Note 2

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Note
			December 31,2024	December 31,2023
ACHEM Technology China ACHEM Technology Americas Ltd. Wanchio Adhesive Product (Jiangsu) ACHEM Opto- Electronic Corporation Ningbo Yem Chio Co., Ltd. Wanchio Adhesive Product (Jiangsu) LANDMART King Sun New Tech Co., Ltd.	ACHEM Technology (Dongguan) Adhesive Products Co., Ltd. Foshan Inder Adhesive Product Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. Landmart Global Limited (LANDMART) ACHEM Technology (Shanghai) Limited ACHEM Industry America Inc. Foshan Inder Adhesive Product Co., Ltd. AOE Holding Limited Wan Chio Petrochemical (Jiangsu) Co., Ltd. Wan Chio Petrochemical (Jiangsu) Co., Ltd. ACHEM Technology (Shanghai) Limited Hong Yi Energy Co., Ltd. Hong How Technology Co., Ltd. Hong Er Technology Co., Ltd. Hong Wu Technology Co., Ltd. Hong Ba Technology Co., Ltd. Hong Ning International Co., Ltd. Hong Cheng Technology Co., Ltd. Hong Kai Technology Co., Ltd.	Manufacturing and sales of various adhesive products Manufacturing and sales of various adhesive products Sales of various adhesive products Investment holdings Manufacturing and sales of various adhesive products Manufacturing and sales of various adhesive products Manufacturing and sales of various adhesive products Investment in high technology industry Discontinued operations Discontinued operations Manufacturing and sales of various adhesive products Renewable-energy-based electricity retailing Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry	100 - 100 - 100 100 62.30 100 26.16 23.78 - 100 100 100 100 100 100 100 100	100 62.30 100 100 - 100 - 100 26.16 23.78 100 - - - - - - - -	Note 7 Note 3 Note 3 Note 7 Note 10 Note 10 Note 3

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Note
			December 31,2024	December 31,2023
King Sun New Tech Co., Ltd.	Hong He Energy Co., Ltd. Hong Chang Technology Co., Ltd. Rong Cheng Energy Co., Ltd.	Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry	100 100 100	- - -	Note 9

Note 1: 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. The shareholding ratio increased from 87.09% to 100%. The registration of the change was completed on October 13, 2023.
Note 2: ACHEM Technology (India) Ltd. underwent liquidation in May 2017.
Note 3: LANDMART completed its liquidation process in September 2024. The 100% equity interest in ACHEM Technology (Shanghai) previously held by LANDMART was transferred to ACHEM Technology (China), a wholly owned subsidiary of LANDMART's 100% parent company.
Note 4: 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 5: As of December 31, 2024, the Company and ACHEM Technology Corporation held 38.86% and 22.54% shareholding of Yem Chio Distribution Co., Ltd., respectively, which constituted over 50% shareholding.
Note 6: On January 2, 2024, the Company acquired 27.5% shareholding of King Sun New Tech Co., Ltd. for a cash consideration of $72,105, and participated in its cash capital increase of $80,000. Since that date, the cumulative shareholding has exceeded 50%, making the investee company a subsidiary of our company. Please refer to Notes 6 (25) for details.
Note 7: In response to the Group’s organizational restructuring, the Group transferred the equity of Foshan Inder held by ACHEM Technology China to Wanchio Adhesive Product (Jiangsu) in the first quarter of 2024.
Note 8: Fuzhou Fuda completed the liquidation and deregistration process in December 2024.
Note 9: RongCheng Energy Co., Ltd. was approved for establishment in December 2024.
Note 10: Wan Chio Petrochemical (Jiangsu) Co., Ltd. underwent liquidation in December 2024.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Related parties in the consolidated financial statements:

Names and relationship of related parties

Associate Winda Opto-Electronics Co., Ltd. Yanrun Development Co., Ltd.(Note)

Other related party - companies with significant influence over Foshan Inder Adhesive Product Co., Ltd. Foshan Plastics Group Co., Ltd. Other related parties Li, Qi-Zheng Li, Shu-Wei Key management Li, Zhi-Xian

Note ： Yanrun Development Co.,Ltd. underwent liquidation in March 2024.

Subsidiaries that have non-controlling interests that are material to the Group ： None.

(4) Foreign currency transactions

The Group’s consolidated financial statements are presented in NT$, which is also the Company’s functional currency.

Transactions in foreign currencies are initially recorded by the Group 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:

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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

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. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognised in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognised. On the partial disposal of foreign operations that result in a loss of control, loss of significant influence but retain partial equity is considered disposal.

On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognised in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or joint arrangement that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognised in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(6) Current and non-current distinction

An asset is classified as current when:

A. The Group expects to realize the asset, or intends to sell or consume it, in its normal operating cycle
B. The Group holds the asset primarily for the purpose of trading
C. The Group 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. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

A liability is classified as current when:

A. The Group expects to settle the liability in its normal operating cycle
B. The Group 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 Group does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

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 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 Group 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 a financial asset or financial liability not at fair value through profit or loss,transaction costs that are directly attributable to the acquisition or issue of the financial assets or financial liabilities.

A. Financial instruments: Recognition and Measurement

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

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

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.

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

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

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 Group 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 Group applies the effective interest rate to the amortised cost of the financial asset in subsequent reporting periods.

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 Group 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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

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 Group 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 Group applies the effective interest rate to the amortised cost of the financial asset in subsequent reporting periods.

B. Impairment of financial assets

The Group 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 Group 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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

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 Group 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 Group 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 Group measures the loss allowance at an amount equal to lifetime expected credit losses.

At each reporting date, the Group 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 Group has transferred the asset and substantially all the risks and rewards of the asset have been transferred
(c) The Group 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 Group 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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

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 Group evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Group 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.

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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

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.

(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 Group.

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 act 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 Group 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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

(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.

Except for recognising profit or loss using the completed contract method, costs 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 Group’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 Group has significant influence.

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 Group’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 Group has incurred legal or constructive obligations or made payments on behalf of the associate. Unrealized gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the Group’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 Group’s percentage of ownership interests in the associate, the Group 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 Group’s interest in an associate is reduced or increased as the Group 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 Group disposes of the associate.

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

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

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

The Group 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 Group 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 Group estimates:

A. 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
B. 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.

Upon loss of significant influence over the associate, the Group 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 Group 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	1-12 years
Office equipment	1-15 years

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

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.

(14) Leases

The Group 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 Group 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 Group 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 Group 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 stand-alone 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 Group for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Group estimates the stand-alone price, maximising the use of observable information.

Group as a lessee

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

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

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

At the commencement date, the Group 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 Group 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:

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

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

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

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Except for those leases that the Group accounted for as short-term leases or leases of lowvalue assets, the Group 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.

For short-term leases or leases of low-value assets, the Group 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.

Group as a lessor

At inception of a contract, the Group 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 Group 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 Group allocates the consideration in the contract applying IFRS 15.

The Group 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) Intangible assets

Goodwill arises in a business combination accounted for by applying the acquisition method. Goodwill shall be tested annually for impairment, and recognised based on the cost less accumulated depreciation. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed.

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

Other intangible assets, mainly acquired special technology, are amortised using the straight line method over 3 years.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

(16) Impairment of non-financial assets

The Group 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 Group 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 Group 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.

A cash generating unit, or groups of cash-generating units, to which goodwill has been allocated is tested for impairment annually at the same time, irrespective of whether there is any indication of impairment. If an impairment loss is to be recognised, it is first allocated to reduce the carrying amount of any goodwill allocated to the cash generating unit (group of units), then to the other assets of the unit (group of units) pro rata on the basis of the carrying amount of each asset in the unit (group of units). Impairment losses relating to goodwill cannot be reversed in future periods for any reason.

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

(17) 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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

(18) 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 Group 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 Group 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 Group 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.

(19) 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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

(20) Post-employment benefits

All regular employees of the Company and its domestic subsidiaries 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 and its domestic subsidiaries. Therefore, fund assets are not included in the Group’s consolidated financial statements. Pension benefits for employees of the overseas subsidiaries and the branches are provided in accordance with the respective local regulations.

For the defined contribution plan, the Company and its domestic subsidiaries 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. Overseas subsidiaries and branches make contribution to the plan based on the requirements of local regulations.

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 or termination benefits.

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.

(21) 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. and Subsidiaries Notes to the Consolidated 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 at the reporting date.

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; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.
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; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.
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. and Subsidiaries

Notes to the Consolidated 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 Group 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.

According to the temporary exception in the International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12), information about deferred tax assets and liabilities related to Pillar Two income tax will neither be recognized nor be disclosed.

5. Significant accounting judgements, estimates and assumptions

The preparation of the Group’s consolidated 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 Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. The Group 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. and Subsidiaries Notes to the Consolidated 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 Group’s strategy might affect the value of investment property.

6. Contents of significant accounts

(1) Cash and cash equivalents

Assets items	December 31, 2024	December 31, 2023
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits Total	$4,911 2,150,023 205,948	$4,918 1,513,317 179,636
	$2,360,882	$1,697,871

The Group 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 Group’s cash that was pledged to others as collateral were classified to financial assets at amortised cost. Details are provided in Note 6(4) and 8.

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

Assets items	December 31, 2024	December 31, 2023
Current items: Financial assets mandatorily measured as at fair value through profit or loss: Wealth management product Capital guarantee products Listed stocks Total Non-Current items: Financial assets mandatorily measured as at fair value through profit or loss: Funds	$44,780 335,882 164,643	$51,924 475,897 266,265
	$545,305	$794,086
	$1,000	$-

For the years ended December 31, 2024 and 2023, the Group has recognised the changes in fair value amounting to $0 and $(63), respectively, which are not attributable to the changes in credit risk of the assets.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

For the terms of the 8th and 9th secured convertible bonds issued by the Company, refer to Note 6(14). Information relating to credit risk of financial assets are provided in Note 12(4).

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

Current items: Equity instruments Listed stocks Valuation adjustments Total Non-current items: Debt instruments Bank debenture Valuation adjustments Subtotal Equity instruments Listed stocks Unlisted shares Valuation adjustments Subtotal Total	December 31, 2024	December 31, 2023
	$1,155,230 267,755	$1,100,492 114,341
	$1,422,985	$1,214,833
	$65,226 (6,669)	$64,201 (10,268)
	58,557	53,933
	$44,076 95,598 (79,467)	$22,743 95,598 (87,434)
	60,207	30,907
	$118,764	$84,840

The Group 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 $1,483,192 and $1,245,740 as of December 31, 2024 and 2023, respectively.

In consideration of the Group’s investment strategy, the Group 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, 2024 and 2023 are as follows:

The fair value of the investments at the date of derecognition The cumulative gain on disposal reclassified from other equity to retained earnings	Year ended December 31	Year ended December 31
	2024	2023
	$2,540,312 441,823	$1,283,597 271,428

The Group’s dividend income related to equity instrument investments measured at fair value through other comprehensive income for the years ended December 31, 2024 and 2023 are as follows:

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

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

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
	2024	2023
	$52,768 10,433	$178,151 7,248
	$63,201	$185,399

Details of the Group’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, 2024	December 31, 2023
	$402,688 991,922	$327,769 370,645
	$1,394,610	$698,414
	$10,799 11,768	$26,900 35,764
	$22,567	$62,664

As of December 31, 2024 and 2023, 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 Group’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, 2024	December 31, 2023
	$371,053 -	$349,701 -
	$371,053	$349,701
	$2,301,676 (105,419)	$2,348,494 (134,309)
	$2,196,257	$2,214,185

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated 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 31,2024	December 31,2024	December 31,2023	December 31,2023
Notes receivable	Accounts receivable	Notes receivable	Accounts receivable
$1,902,762 230,045 94,146 16,301 58,422 (105,419)	$371,053 - - - - -	$1,959,334 231,899 63,681 21,809 71,771 (134,309)	$349,701 - - - - -
$2,196,257	$371,053	$2,214,185	$349,701

The above ageing analysis was based on past due date.

The Group’s accounts receivable pledged to others as collateral are provided in Note 8. Loss allowance and information relating to credit of risk are provided in Note 6(19) and Note 12(4).

(6) Inventories

Packaging material sales channel business: Raw materials and supplies Work-in-progress Finished goods Merchandise Inventories in transit Subtotal Land development & construction business: Construction-in-progress Land held for building Real estate held for sale Prepayments of land Subtotal Renewable energy business: Raw materials and supplies Merchandise Subtotal Total	December 31, 2024	December 31, 2023
	$797,463 312,289 320,313 220,788 59,753	$696,137 322,488 322,516 179,847 71,675
	1,710,606	1,592,663
	4,448,547 6,922,029 56,738 108,333	6,520,632 2,198,660 - 300,589
	11,535,647	9,019,881
	5,202 4,883	- -
	10,085	-
	$13,256,338	$10,612,544

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

The cost of inventories recognised in expenses amounts to $13,265,074 and $11,045,427 for the years ended December 31, 2024 and 2023, including the (reversal gain) loss of net realizable value of inventories of $(24,932) and $20,334, respectively. The reversal is due to the volatility in the raw materials and actively dealing with obsolescence inventory.

Amount of borrowing costs capitalised as part of inventory were $112,585 and $128,397 and the range of rates for such capitalisation were 2.14%-3.14% and 1.99%-2.72% for the years ended December 31, 2024 and 2023, 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:

	December31,2024	December31,2024	December31,2023	December31,2023
Investees	Amount	Ownership%	Amount	Ownership%
Investments in associates:
Winda Opto- Electronics Co., Ltd.	$1,049,880	31.42%	$990,961	31.42%
Yanrun Development Co., Ltd.	(5,944)	40.00%	(5,478)	40.00%
King SunNewTechCo.,Ltd.	Not Applicable	Not Applicable	75,949	27.50%
Total	$1,043,936		$1,061,432

Note ： On January 2, 2024, the Group acquired more than 50% shareholding of King Sun New Tech Co., Ltd, obtaining control over the company. From that date, it has been included as a consolidated entity.

The information of the associate that is material to the Group is as follows:

Company name: Winda Opto-Electronics Co., Ltd.

Principal place of business: China

Judgments in determining that the Group only has significant influence: The Group holds the less than 50% voting rights and is unable to lead the critical activities of Winda OptoElectronics Co., Ltd. Therefore, the Group has no control of Winda Opto- Electronics Co., Ltd and only has significant influence over Winda Opto- Electronics Co., Ltd.

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

The material associate of the Group, Winda Opto-Electronics Co., Ltd., had a publicly quoted market price starting from December 27, 2022. Its fair value as of December 31, 2024 and 2023 were $3,626,690 and $3,201,085, respectively.

Reconciliation of the associate’s summarized financial information presented to the carrying amount of the Company’s interest in the associate as below:

Current assets Non-current assets Current liabilities Non-current liabilities Equities Share in associate’s net assets Subtotal Negative goodwill Carrying amount of the associate Revenue Profit for the year from continuing operations Other comprehensive income (loss), net of tax Comprehensive income Dividends received from the associate	December 31, 2024	December 31, 2023
	$2,564,929 1,131,032 (102,265) (251,155)	$2,786,713 436,622 (59,933) (7,650)
	$3,342,541	$3,155,752
	31.42% 1,050,456 (576)	31.42% 991,537 (576)
	$1,049,880	$990,961
	2024	2023
	$983,343	$901,409
	$143,266 111,395	$145,359 (88,967)
	$254,661	$56,392
	$21,686	$42,452

The Group’s investment in Yanrun Development Co., Ltd. is not individually material and has been liquidated. Therefore, the Group will no longer disclose the aggregate financial information.

As of December 31, 2024 and 2023, the above associates had no contingent liabilities, capital commitments or guarantees.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

(8) Property, plant and equipment

Land	Buildings	Machinery and equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment awaiting examination	Total
$2,746,663 -	$4,376,404 (1,810,609)	$7,990,117 (5,428,145)	$196,120 (157,345)	$397,424 (300,615)	$244,186 (140,166)	$272,117 -	$16,223,031 (7,836,880)
$2,746,663	$2,565,795	$2,561,972	$38,775	$96,809	$104,020	$272,117	$8,386,151
$2,746,663 - (8,621) - 7 7,135 - - 20,175	$2,565,795 10,395 (7,162) 41,779 810 258,120 (134,155) - 39,744	$2,561,972 58,401 (5,529) 285,003 5,098 199 (369,509) (164,459) 27,321	$38,775 6,225 (515) 4,514 - - (11,698) - 374	$96,809 4,547 (231) 39,074 6 3 (26,679) - 363	$104,020 6,384 (553) 2,280 - - (17,011) (61,804) 689	$272,117 358,688 - (372,650) 52,426 4,569 - - 2,196	$8,386,151 444,640 (22,611) - 58,347 270,026 (559,052) (226,263) 90,862
$2,765,359	$2,775,326	$2,398,497	$37,675	$113,892	$34,005	$317,346	$8,442,100
$2,765,359 -	$4,802,299 (2,026,973)	$8,292,841 (5,894,344)	$201,476 (163,801)	$442,110 (328,218)	$251,861 (217,856)	$317,346 -	$17,073,292 (8,631,192)
$2,765,359	$2,775,326	$2,398,497	$37,675	$113,892	$34,005	$317,346	$8,442,100
$2,682,669 (886)	$4,333,169 (1,702,690)	$7,583,966 (5,052,465)	$193,628 (148,223)	$379,781 (274,362)	$229,684 (125,112)	$439,795 -	$15,842,692 (7,303,738)
$2,681,783	$2,630,479	$2,531,501	$45,405	$105,419	$104,572	$439,795	$8,538,954
$2,681,783 - (64) 13,594 - 51,398 - (48)	$2,630,479 3,474 - 33,611 (142) 12,252 (106,397) (7,482)	$2,531,501 31,880 (4,902) 362,086 - 7,032 (352,663) (12,962)	$45,405 3,663 (519) 2,692 - - (12,330) (136)	$105,419 4,436 (148) 14,117 79 101 (27,049) (146)	$104,572 646 (489) 1,769 (79) 11,964 (14,009) (354)	$439,795 263,400 - (427,869) (1,736) - - (1,473)	$8,538,954 307,499 (6,122) - (1,878) 82,747 (512,448) (22,601)
$2,746,663	$2,565,795	$2,561,972	$38,775	$96,809	$104,020	$272,117	$8,386,151
$2,746,663 -	$4,376,404 (1,810,609)	$7,990,117 (5,428,145)	$196,120 (157,345)	$397,424 (300,615)	$244,186 (140,166)	$272,117 -	$16,223,031 (7,836,880)
$2,746,663	$2,565,795	$2,561,972	$38,775	$96,809	$104,020	$272,117	$8,386,151

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Components of building that have different useful lives are main building structure, air conditioning units and elevators, which are depreciated over 60 years, 8 years and 10 years, respectively.

Due to intense industry competition and changes in product demand, the Group plans to sell the thin film production line. After evaluation in the 2024, an impairment loss of $164,459 is expected to be recognized for the related real estate, plant, and equipment. In addition, considering the operational adjustment of a subsidiary, the Group intends to change the classification of a building. Therefore, the entire amount of leasehold improvements related to the building will be fully impaired, amounting to $61,804. The total impairment loss of $226,263 has been recognized in the consolidated statement of comprehensive income.

Amount of borrowing costs capitalised as part of property, plant and equipment were $1,843 and $3,361, and the range of interest rates for such capitalisation were 2.00% and 1.86% for the years ended December 31, 2024 and 2023, respectively.

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.

From 2010 to 2022, ACHEM Technology Corporation gradually acquired the agricultural land located in Rui-Hu Section, Yangmei District, Taoyuan City, in the amount of $82,339, which was registered under the names of the Group’s employees and has been fully mortgaged to ACHEM Technology Corporation.

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

(9) Investment property

The Group’s investment property mainly comprises office buildings and plant located in Neihu District, Zhongzheng District, Taipei City and Shanghai, China. The Group earns rental income from leasing and the lease terms are between 1 to 7 years.

At January 1 Exchange differences Gain on fair value adjustments At December 31	December 31, 2024	December 31, 2023
	$2,294,881 21,292 83,602	$2,251,475 (10,842) 54,248
	$2,399,775	$2,294,881

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

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	Year Ended December 31	Year Ended December 31
	2024	2023
	$51,496 (10,341) (493)	$66,223 (9,184) (405)
	$40,662	$56,634

As of December 31, 2024 and 2023, the related assumptions are as follows:

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 31,2024	December 31,2023
	Office building and plant Neihu District, Zhongzheng District, Taipei City and Shanghai, China Income approach PANASIA Real Estate Appraisers Firm YANG, MIN-AN December 31, 2024	Office building and plant Neihu District, Zhongzheng District, Taipei City and Shanghai, China Income approach PANASIA Real Estate Appraisers Firm YANG, MIN-AN December 31, 2023

The information on the average leasing rate for the years ended December 31, 2024 and 2023, changes in income generated in the past, and comparison between local rents and rents for objects similar to the Group’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	Year Ended December 31
	2024	2023
	$730-1,413 Approximate to estimated rents $51,496 89%-100%	$675-1,404 Approximate to estimated rents $66,223 89%-100%

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

The fair value of the Group’s office buildings and plants 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; while the discount rates used by the Group’s China subsidiaries are based on the rate of 10 years national debt issued by the Bank of China. Risk premium is determined based on liquidity, risk, value increment and the difficulty of management.

Discount rates	December 31, 2024	December 31, 2023
	2.43%-8.67%	2.41%-8.54%

The information on the Group’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) Intangible assets

Goodwill	Others	Total
$170,976 - - 95,661 11,637	$14,694 821 (965) 21 4	$185,670 821 (965) 95,682 11,641
$278,274	$14,575	$292,849
Goodwill	Others	Total
$171,004 - - (28)	$15,005 575 (883) (3)	$186,009 $575 (883) (31)
$170,976	$14,694	$185,670

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Amount of amortisation on intangible assets are as follows:

Administrative expenses	Year Ended December 31	Year Ended December 31
	2024	2023
	$965	$883

Goodwill allocated to the cash-generating units of material packaging department:

ACHEM Industry America Inc. King Sun New Tech Co., Ltd. Yem Chio Distribution Co., Ltd. Total	December 31, 2024	December 31, 2023
	$111,893 95,661 70,720	$100,256 - 70,720
	$278,274	$170,976

Goodwill is allocated to the cash-generating units identified by the Group. The recoverable amount of all cash-generating units has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by the management covering a five-year period.

The recoverable amount of all cash-generating units calculated using the value-in-use exceeded their carrying amount, so goodwill was not impaired. The key assumptions used for value-in-use calculations are gross profit margin, growth rate and discount rate. Management determined budgeted gross margin based on past performance and its expectations of market development. The weighted average growth rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risks relating to the relevant operating segments.

(11) Short-term borrowings

Unsecured bank borrowings Secured bank borrowings Total	December 31, 2024	December 31, 2023
	$1,957,486 4,098,124	$3,144,783 2,576,379
	$6,055,610	$5,721,162

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Range of the interest rates	December 31, 2024	December 31, 2023
	1.83%-7.80%	1.70%-6.57%

As of December 31, 2024 and 2023, details of assets pledged as collateral for short-term borrowings are provided in Note 8.

(12) Short-term bills payable

Commercial paper Range of the interest rates	December 31, 2024	December 31, 2023
	$50,000	$400,000
	2.10%	2.04%-2.10%

(13) Other current liabilities

Advance receipts for the group held for sales Others Total	December 31, 2024	December 31, 2023
	$- 52,951	$53,214 64,220
	$52,951	$117,434

(14) Bonds payable

Domestic convertible corporate bonds payable Less: Discount on bonds payable Total Less: Bonds payable - current portion Net	December 31, 2024	December 31, 2023
	$- (-)	$162,900 (1,398)
	- (-)	161,502 (161,502)
	$-	$-

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

Principal amount Face rate Effective rate Outstanding period	8th domestic secured convertible corporate bonds	9th domestic secured convertible corporate bonds
	$500,000 0% 0.93% 5 years	$500,000 0% 0.93% 5 years

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

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

8th domestic secured 9th domestic secured convertible corporate bonds convertible corporate bonds Maturity date June 14, 2024 June 14, 2024 Guarantee banks Mega International Commercial First Commercial Bank Bank

Collateral Cash in banks of $102,530 Cash in banks of $102,530 Repayment at The bonds along with yield to The bonds along with yield to maturity maturity annual rate of 0.25% maturity annual rate of 0.25% are repayable in full by cash at are repayable in full by cash at face value at maturity. face value at maturity. Redemption From the date after three months From the date after three months of the bonds issue (September of the bonds issue (September 15, 2019) to 40 days (May 5, 15, 2019) to 40 days (May 5, 2024) before the maturity date. 2024) before the maturity date. Convertible corporate bonds will Convertible corporate bonds will be redeemed based on the rule be redeemed based on the rule for issuance and conversion of for issuance and conversion of convertible bonds if one of the convertible bonds if one of the following criteria is met: From following criteria is met: From the date after three months of the the date after three months of the bonds issue (September 15, bonds issue (September 15, 2019) to 40 days (May 5, 2024) 2019) to 40 days (May 5, 2024) before the maturity date. before the maturity date. Convertible corporate bonds will Convertible corporate bonds will be redeemed based on the rule be redeemed based on the rule for issuance and conversion of for issuance and conversion of convertible bonds if one of the convertible bonds if one of the following criteria is met: following criteria is met:

(a) The closing price of the (a) The closing price of the Company's common shares Company's common shares is above the then conversion is above the then conversion price by 30% for 30 price by 30% for 30 consecutive trading days in consecutive trading days in the centralized market. the centralized market.
(b) The outstanding balance of (b) The outstanding balance of the bonds is less than 10% of the bonds is less than 10% of total issue amount. total issue amount.
Put options The bondholders have the right The bondholders have the right to require the Company to to require the Company to redeem any bonds at face value redeem any bonds at face value plus 0.25% interest during the plus 0.25% interest during the period from the date after period from the date after issuance to 30 days before three issuance to 30 days before three years. years.

Conversion price (dollars/per share) $10.50 $10.50

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

(Adjusted) Conversion period Converted amount Redeemed amount Repurchased amount	8th domestic secured convertible corporate bonds	9th domestic secured convertible corporate bonds
	During the period from the date after three months of issuance of bonds to the maturity date. $499,600 $- $400	During the period from the date after three months of issuance of bonds to the maturity date. $500,000 $- $-

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, 2024 and 2023, the balance of “Capital surplus - stock options” changed to $0 and $4,372, 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.

B. The terms of the domestic secured convertible corporate bonds of the Company have been repaid on June 14, 2024.
C. The terms of the domestic secured convertible corporate bonds of Yem Chio Distribution Co., Ltd. have been repaid on October 15, 2023.

(15) 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, 2024	December 31, 2023
	$10,317,310 1,885,000	$7,819,395 1,000,000
	12,202,310	8,819,395
	(4,124,158)	(3,280,517)
	$8,078,152	$5,538,878
	1.72%-3.16%	1.80%-3.14%

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:

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

(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) The amount drawn was fully repaid in September 2024. As of December 31 2023, the amount drawn were $1,205,000.
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.

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

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

(d) The amount drawn was fully repaid in July 2024. As of December 31 2023, the amount drawn were $1,880,000.
C. In June 2024, the Company entered into a syndicated loan agreement with First Commercial Bank. The primary terms of the agreement are as follows:
(a) Tranche A: Ten-year non-revolving line of $1,715,000.
(b) Tranche B: Five-year revolving line of $1,885,000.
(c) The Company’s revolving credit facility is subject to following terms and financial covenants:
- The company was required to provide the land, factory buildings, and ancillary engineering facilities in the Changbin Industrial Zone as collateral for the credit facility. Additionally, a negative pledge agreement has been signed, committing that the machinery equipment and related ancillary equipment placed within the collateral for this project will not be used to establish pledges or mortgages for other creditors.
(d) As of December 31, 2024, the amounts drawn were $3,600,000.
D. In November 2021, ACHEM Technology Corporation entered into a syndicated loan agreement with Hua Nan Commercial Bank, and in July 2024, an additional loan agreement was signed. The primary terms of the agreement are as follows:
(a) Tranche A: Ten-year non-revolving line of $1,680,000. The facility can be drawn at one time or multiple times.
(b) Tranche B: Five-year revolving line of $2,000,000.
(c) The Company shall pledge 12 lots at Yangmei District, Taoyuan City and plants located in the lots as collateral.
(d) As of December 31, 2024 and 2023, the amounts drawn were $3,545,600 and $3,000,000, respectively.
E. There was no violation of the loan covenant as of December 31, 2024 and 2023.
F. In addition to the collaterals provided as stated in Note 8, as of December 31, 2024, the Group had issued guarantee notes totalling $24,873,940 for the bank loans.
G. The Group’s borrowings should be paid in full by July 2034 at the latest in accordance with the contracts.

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

(16) Post-employment benefits

The Company and its domestic subsidiaries have 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 and its domestic subsidiaries 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 and its domestic subsidiaries 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 Group 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, 2024	December 31, 2023
	$286,715 (196,941)	$279,704 (184,901)
	$89,774	$94,803

Movements in net defined benefit liabilities are as follows:

Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
$279,704 970 3,356	$(184,901) - (2,218)	$94,803 970 1,138
284,030	(187,119)	96,911
- (4,488) 18,126	(17,985) - -	(17,985) (4,488) 18,126
297,668	(205,104)	92,564
- (10,953)	(2,790) 10,953	(2,790) -
$286,715	$(196,941)	$89,774

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated 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
$316,364 1,137 3,796	$(211,463) - (2,537)	$104,901 1,137 1,259
321,297	(214,000)	107,297
- (8,514)	(1,095) -	(1,095) (8,514)
312,783	(215,095)	97,688
- (33,079)	(2,885) 33,079	(2,885) -
$279,704	$(184,901)	$94,803

The Bank of Taiwan was commissioned to manage the Fund of the Company’s and domestic subsidiaries’ 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 and its domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and its domestic subsidiaries are 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, 2024 and 2023 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
	2024	2023
	1.50%-1.60%	1.20%
	2.00-3.00%	2.00-3.00%

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

For the years ended December 31, 2024 and 2023, 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%
$(3,508)	$3,591	$2,842	$(2,791)
$(3,753)	$3,847	$3,096	$(3,038)

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 Group for the year ending December 31, 2025 amounted to $2,666.

As of December 31, 2024, the weighted average duration of that retirement plan is 5-6 years.

Effective July 1, 2005, the Company and its domestic subsidiaries have 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 and its domestic subsidiaries 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.

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

The Company’s China subsidiaries have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. Other than the monthly contributions, the Group has no further obligations.

The pension costs under the defined contribution pension plan of the Company and local subsidiaries for the years ended December 31, 2024, and 2023 were $33,923 and $31,109, respectively.

The contributions to pension costs under the local employment act of the overseas subsidiaries for the years ended December 31, 2024, and 2023 were $36,270 and $30,517, respectively.

(17) Equities

A. Common stock

As of December 31, 2024 and 2023, 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 $6,792,085 and $6,582,467 with a par value of $10 (in dollars) per share, divided into 679,209 thousand shares and 658,247 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, 2024, and 2023 are as follows:

At January 1 Conversion of convertible corporate bonds At December 31	December 31, 2024	December 31, 2023
	630,788 14,276	607,345 23,443
	645,064	630,788

For the year ended December 31, 2024, convertible bonds amounting to $149,900 in total par value were requested for conversion into 14,276 thousand ordinary shares.

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 6,686 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 2024.

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

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

B. Capital surplus

Share premium Stock options Others Total	December 31, 2024	December 31, 2023
	$1,816,327 4,863 934,507	$1,805,940 9,236 903,562
	$2,755,697	$2,718,738

According to the Group Act, the capital reserve shall not be used except for making good the deficit of the Group. 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, 2024 and 2023, the Group 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 Group’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, 2024 and 2023 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. and Subsidiaries Notes to the Consolidated 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.
(f) 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:

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Legal reserve Reversal of 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

(g) The Company’s appropriations of 2023 earnings for cash dividends had been approved through majority vote by the Board of Directors on March 14, 2024, and has been approved by shareholders on June 21, 2024. The appropriations of 2023 earnings were as follows:

Legal reserve Special 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

Please refer to Note 6(21) on employee remuneration and directors' remuneration.

(h) Event after the balance sheet date

The appropriation of 2024 earnings had been proposed by the Board of Directors on March 14, 2025. Details are as follows:

Special reserve Legal reserve Cash dividends Stock dividends Total	Year ended December 31, 2024	Year ended December 31, 2024
	Amount	Dividends per share(in dollars)
	$126,219 70,404 663,487 132,697	$1.00 0.20
	$992,807

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

As of March 14, 2025, the Company’s’ distribution of 2024 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.

E. Non-controlling interests

Beginning balance Profit attributable to non-controlling interests Other comprehensive income, attributable to non- controlling interests: Exchange differences resulting from translating the financial statements of a foreign operation Others Ending balance	Year Ended December 31	Year Ended December 31
	2024	2023
	$709,783 72,482 16,616 (238,109)	$683,448 54,333 (6,614) (21,384)
	$560,772	$709,783

(18) Operating revenue

A. Disaggregation of revenue

The Group’s revenue from contracts with customers during the years ended December 31, 2024 and 2023 can be segmented by major product lines as follow:

		Year ended December 31, 2024	Year ended December 31, 2024	Year ended December 31, 2024
Tape manufacturin g business segment	Packaging materials business segment	Real estate business segment	Specialty chemical business segment	Renewable energy business segment	Total
$13,168,493 (2,558,365)	$1,436,198 -	$2,961,758 (163)	$472,008 (6,942)	$418,123 (28)	$18,456,580 (2,565,498)
$10,610,128	$1,436,198	$2,961,595	$465,066	$418,095	$15,891,082
$10,610,128 -	$1,436,198 -	$2,961,595 -	$465,066 -	$418,095 -	$15,891,082 -
$10,610,128	$1,436,198	$2,961,595	$465,066	$418,095	$15,891,082

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

		Year ended December 31, 2023	Year ended December 31, 2023	Year ended December 31, 2023
Tape manufacturin g business segment	Packaging materials business segment	Real estate business segment	Specialty chemical business segment	Renewable energy business segment	Total
$12,812,073 (2,273,026)	$1,405,497 -	$889,490 -	$394,605 (4,903)	$- -	$15,501,665 (2,277,929)
$10,539,047	$1,405,497	$889,490	$389,702	$-	$13,223,736
$10,539,047 -	$1,405,497 -	$889,490 -	$389,702 -	$- -	$13,223,736 -
$10,539,047	$1,405,497	$889,490	$389,702	$-	$13,223,736

B. Contract balances

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

Contract liabilities - Advance sales receipts Contract liabilities - Pre-sold house Total	December 31, 2024	December 31, 2023
	$115,035 361,397	$73,256 683,641
	$476,432	$756,897

For the years ended December 31, 2024 and 2023, revenue recognised that was included in the contract liability balance at the beginning of the year amounted to $524,134 and $32,137, respectively.

(19)Expected credit gains (losses)

A. Operating expenses - Expected credit gains (losses) Notes receivable Accounts receivable Total	YearendedDecember31	YearendedDecember31
	2024	2023
	$- 25,059	$- (27,876)
	$25,059	$(27,876)

Please refer to Note 12(4) for more details on credit risk.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

B. The Group measures the loss allowance of its account receivables at an amount equal to lifetime expected credit losses. The Group used the loss rates calculated based on historical and timely information to assess the default possibility of accounts receivable. As of December 31, 2024 and 2023, the provision matrix are as follows:

Individual		Group		Total
	Notpast due	Up to 90 days past due	Over 90 days past due
100% $67,605 67,605 Individual	0.02%-2.34% $1,902,762 6,850	0.02%-97.68% $310,781 26,627 Group	0.02%-100% $20,528 4,337	$2,301,676 105,419 Total
	Notpast due	Up to 90 days past due	Over 90 days past due
100% $64,299 64,299	0.02%-3.06% $1,956,995 8,892	0.02%-66.52% $289,084 23,002	0.02%-100% $38,116 38,116	$2,348,494 134,309

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

C. The movements in loss allowance for notes and accounts receivable for the years ended December 31, 2024 and 2023 are as follows:

At January 1, 2024 Provision (reversal) of impairment loss Write off Exchange differences At December 31, 2024 At January 1, 2023 Provision (reversal) of impairment loss Write off Exchange differences At December 31, 2023	Notes receivable	Accounts receivable
	$- - - -	$134,309 (25,059) (5,192) 1,361
	$-	$105,419
	Notes receivable	Accounts receivable
	$- - - -	$108,150 27,876 (575) (1,142)
	$-	$134,309

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

(20) Lease

A. Group as a lessee

The Group leases various assets including land, buildings as well as machinery and equipment. Rental contracts are typically made for periods of 2 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

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

(a) Right-of-use assets

Land - Taiwan Land use right - China and Vietnam Buildings and structures Total	December 31, 2024	December 31, 2023
	$61,178 189,767 64,342	$56,059 186,292 80,360
	$315,287	$322,711

For the years ended December 31, 2024 and 2023, the Group’s additions to right-ofuse assets amounting to $21,887 and $13,076, respectively.

The Group leases land with lease terms of 20 years in Taiwan Science Park. The lease payments will be adjusted every 2 years on the basis of changes in announced land value prices.

Land use rights are contracts signed by the Group for land use rights in China and Vietnam. The lease terms are 44-50 years. The aforementioned land use rights have been paid in full at the inception of the lease.

(b) Lease liabilities

Current Non-current Lease liabilities	December 31, 2024	December 31, 2023
	$40,641 95,018	$39,550 114,127
	$135,659	$153,677

Interest expenses on lease liabilities, recognised for the years ended December 31, 2024 and 2023, are provided in Note 6(22)C Finance costs. For the maturity analysis of lease liabilities are provided in Note 12(5) Liquidity Risk Management.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Land - Taiwan Land use right - China and Vietnam Buildings and structures Total	Year ended December 31	Year ended December 31
	2024	2023
	$3,771 4,516 33,481	$3,115 4,461 29,062
	$41,768	$36,638

(d) Income and costs relating to leasing activities

The expense relating to short-term leases	Year ended December 31	Year ended December 31
	2024	2023
	$10,177	$11,724

(e) Cash outflow relating to leasing activities

For the years ended December 31, 2024 and 2023, the Group’s total cash outflows for leases amounting to $56,897 and $55,097, respectively.

(f) Other information relating to leasing activities

Extension and termination options

When determining the lease terms, the Group takes into account all facts and circumstances that create economic incentives to exercise the option to renew the lease. The lease term will be reassessed when a significant event occurs in assessing the exercise of the option to renew the lease.

B. Group as a lessor

Please refer to Note 6(9) for details on the Group’s owned investment properties and investment properties held by the Group 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 Group leases various assets including land and buildings. Rental contracts are typically made for periods of 1 to 10 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

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

For the years ended December 31, 2024 and 2023, the Group recognised rent income in the amount of $58,300 and $76,797, respectively, based on the operating lease agreement, which does not include variable lease payments.

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

2024 2025 2026 2027 2028 2029 After 2030 Total	December 31, 2024	December 31, 2023
	$- 19,682 13,995 5,635 3,992 1,800 1,200	$44,117 10,953 8,473 4,686 3,992 3,000 -
	$46,304	$75,221

(21) The Group's employee benefits, depreciation and amortisation expenses incurred for the years ended December 31, 2024 and 2023 are as follows:

			Year ended December 31	Year ended December 31
		2024			2023
	Operation costs	Operation expenses	Total	Operation costs	Operation expenses	Total
Employee benefits expense
Wages and salaries	$ 854,898	$ 594,726	$ 1,449,624	$ 757,459	$ 546,224	$ 1,303,683
Labor and health insurance	54,295	39,545	93,840	51,747	31,808	83,555
Pension	43,999	28,022	72,021	37,910	26,112	64,022
Other employee benefit expenses	98,938	40,295	139,233	87,164	36,947	124,111
Depreciation	514,742	86,078	600,820	415,566	133,520	549,086
Amortisation	-	965	965	-	883	883

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. and Subsidiaries Notes to the Consolidated Financial Statements (Continued) (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

For the years ended December 31, 2024 and 2023, employees’ compensation was accrued at $5,749 and $2,757, respectively; while no directors’ remuneration was accrued. The aforementioned amount was recognised in salary expenses.

The employees’ compensation for the year ended December 31, 2023 resolved by the Board of Directors amounted to $4,105. The difference of $1,348 between the amount resolved by the Board of Directors and the amount of $2,757 recognised in the 2023 financial statements, had been adjusted in the profit or loss for 2024.

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.

(22) Non-operating income and expenses

A. Other income

Rental income Dividend income Others Total	Year ended December 31	Year ended December 31
	2024	2023
	$58,300 63,201 85,479	$76,797 197,297 72,823
	$206,980	$346,917

B. Other gains and losses

Gain (Losses) on disposal of property, plant and equipment Impairment loss on property, plant, and equipment Foreign exchange gain, net Gains on fair value adjustment of investment property Gains on financial assets and liabilities at fair value through profit or loss Other losses Total	Year ended December 31	Year ended December 31
	2024	2023
	$6,691 (226,263) 123,361 83,602 128,801 (18,653)	$(3,558) - 14,048 54,248 39,186 (61,517)
	$97,539	$42,407

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated 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 Others Less: capitalisation of qualifying assets Total	Year ended December 31	Year ended December 31
	2024	2023
	$399,589 279 6,148 4 (114,428)	$306,594 3,967 7,541 4 (131,758)
	$291,592	$186,348

(23) Income tax

A. The major components of income tax expense for the years ended December 31, 2024 and 2023 are as follows:

Income tax expenses recognised in profit or loss

Current income tax expense: Current income tax charge Tax on undistributed surplus earnings Land value increment tax Prior year income tax (over) 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
	2024	2023
	$148,144 13,631 25,164 (19,674) 87,446	$167,793 10,283 - (8,387) (29,842)
	$254,711	$139,847

Income tax recognised in other comprehensive income

Remeasurement of defined benefit obligations	Year ended December 31	Year ended December 31
	2024	2023
	$(868)	$(1,922)

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated 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:

Accounting profit before tax from continuing operations Income tax expenses at the statutory rate Tax effect of revenues exempt and non-deductible expenses for tax purposes Additional income tax under the Alternative Minimum Tax Act Prior year income tax (over) under estimation Tax on undistributed surplus earnings Land value increment tax Others Total	Year ended December 31	Year ended December 31
	2024	2023
	$1,144,082	$995,385
	425,028 (207,254) 30,021 (19,674) 13,631 25,164 (12,205)	346,562 (214,482) 13,912 (8,387) 10,283 - (8,041)
	$254,711	$139,847

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

2024

January1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
$28,859 30,954 56,569 28,155 63,026	$(21,218) (137) - (12,853) (15,627)	$- (239) - - -	$7,641 30,578 56,569 15,302 47,399
$207,563	$(49,835)	$(239)	$157,489
$(93,316) (11,108) (228,975) (36,832) (72,311) (15,184)	$(50,049) - - - (3,061) 15,499	$- - - - - (629)	$(143,365) (11,108) (228,975) (36,832) (75,372) (314)
$(457,726)	$(37,611)	$(629)	$(495,966)

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

	2023	2023
January1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
$29,666 31,555 56,569 12,312 54,728	$(807) (49) - 15,843 8,298	$- (552) - - -	$28,859 30,954 56,569 28,155 63,026
$184,830	$23,285	$(552)	$207,563
$(93,170) (11,108) (228,975) (36,832) (74,012) (18,816)	$(146) - - - 1,701 5,002	$- - - - - (1,370)	$(93,316) (11,108) (228,975) (36,832) (72,311) (15,184)
$(462,913)	$6,557	$(1,370)	$(457,726)

D. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets for

the Company’s other domestic subsidiaries as of December 31, 2024 and 2023 are as follows:

(a) Domestic subsidiaries

	December 31,2024	December 31,2024
Year incurred	Amount estimated/ filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2016-2024		$235,369	$177,569	2034

Year incurred	Amount estimated/ filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2016-2023	Estimated/ filed/ assessed	$309,673	$172,016	2033

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

(b) Foreign subsidiaries

	December 31,2024	December 31,2024
Year incurred	Amount estimated/ filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2018-2021		$230,722	$195,879	2026

Year incurred	Amount estimated/ filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2018-2021	Assessed	$245,815	$191,847	2026

E. The assessment of income tax returns

As of December 31, 2024, the assessment of the income tax returns of the Company is as follows:

The Company, Pantech Tape Co., Ltd. and King Sun New Tech Co., Ltd.

Yem Chio Distribution Co., Ltd., Achem Technology Corporation., Valueline Investment Corporation., Wong Chio Development, Ltd., Hong Ning International Co., Ltd., Hong Ba Technology Co., Ltd., Hong Chang Technology Co., Ltd., Hong Yi Energy Co., Ltd., Hong Er Technology Co., Ltd., Hong He Energy Co., Ltd., Hong Kai Technology Co., Ltd., Hong How Technology Co., Ltd., Hong Wu Technology Co., Ltd. and Hong Cheng Technology Co., Ltd.

ACHEM Opto-Electronic Corporation. and UINN HOTEL.

The assessment of income tax returns Assessed and approved up to 2021

Assessed and approved up to 2022

Assessed and approved up to 2023

The Company and its subsidiaries are located in the Cayman Islands, British Virgin Islands, the PRC, America, Vietnam, Malaysia and Samoa. Their tax authorities will not take the initiative to send a tax returns assessment to enterprises. When there are tax disputes, they issue a tax payment notice to enterprises and reserve the right to propose additional taxes.

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

(24) 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.

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
	2024	2023
	2024	2023
	$816,889 - -	$801,205 (9,095) 1,801
	$816,889	$793,911
	642,135 379 15,721 -	618,614 230 15,721 22,382
	658,235	656,947
	$1.24	$1.21

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

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.

(25)Business combinations

In December 2023, the Company acquired a 27.5% shareholding of King Sun New Tech Co., Ltd. for a cash consideration of $72,105. Subsequently, on January 2, 2024, the Company acquired an additional 27.5% of voting shares in King Sun New Tech Co., Ltd. As a result, the cumulative shareholding exceeded 50%, making the investee company a subsidiary of our company from that date. The Company established in Taiwan, specializes in the construction of solar power plants and is not publicly listed. The reason for the Group’s acquisition of King Sun New Tech Co., Ltd. is to expand our renewable energy business in response to the Global trend and future direction towards renewable energy.

The Group has chosen to measure the non-controlling interest in King Sun New Tech Co., Ltd. at fair value.

The provisional amounts of King Sun New Tech Co., Ltd.'s identifiable assets and liabilities as of the acquisition date are as follows:

Assets Cash and cash equivalents Financial assets at fair value through profit or loss Notes receivable and accounts receivable Inventories Prepayments Property, plant and equipment Right-of-use asset Other assets Assets subtotal	Provisional amounts as of the acquisition date
	$168,442 869 78,316 16,591 21,061 270,026 18,681 40,190
	614,176

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Liabilities Short-term borrowings Notes payable and accounts payable Current contract liabilities Long-term borrowings Lease liabilities Other liabilities Liabilities subtotal Identifiable net assets The amount of goodwill for King Sun New Tech Co., Ltd. is as follows: Purchase consideration Add`：`Fair value of non-controlling interests Less`：`Fair value of identifiable net assets Goodwill	Provisional amounts as of the acquisition date
	72,949 32,503 42,119 307,564 18,602 36,720
	510,457
	$103,719
	$152,105 47,275 (103,719)
	$95,661

Prior to the business combination, the Group held a 27.5% interest in King Sun New Tech Co., Ltd. The remeasurement of this interest at fair value resulted in a recognized gain of $3,844.

(26) Supplemental cash flow information

A. Cash payments for acquiring a subsidiary

The consideration for acquiring a subsidiary Less: Cash and cash equivalents from acquiring a subsidiary Cash payments to acquire the control (deducted acquiring cash)	Year ended December 31	Year ended December 31
	2024	2023
	$152,105 (168,442)	$41,160 (3,345)
	$(16,337)	$37,815

B. Cash payments for acquiring partial ownership of a subsidiary

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

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

Cash payments for acquiring partial ownership of a subsidiary	Year ended December 31	Year ended December 31
	2024	2023
	$-	$41,385

7. Related party transactions

Information of the related parties that had transactions with the Group during the financial reporting period is as follows:

(1) Names and relationship of related parties

Please refer to Note 4(3)B.

(2) Significant transactions with the related parties

A. Operating revenue

Sales of products: Other related parties	Year ended December 31	Year ended December 31
	2024	2023
	$1,797	$1,609

Goods are sold based on the price lists in force and terms that are under mutual agreement.

B. Purchases

Purchases of goods: Other related parties	Year ended December 31	Year ended December 31
	2024	2023
	$245	$-

The purchase terms and prices to related parties are based on mutual agreement.

C. Receivables from related parties

Accounts receivable: Other related parties	December 31, 2024	December 31, 2023
	$123	$115

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

The receivables are unsecured in nature and bear no interest. There are no allowances for uncollectible accounts held against receivables from related parties.

D. Contract liabilities - Pre-sold house

Contract liabilities - Pre-sold house: Other related parties	December 31, 2024	December 31, 2023
	$4,648	$4,648

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.

E. Rental income

Associates	Year ended December 31	Year ended December 31
	2024	2023
	$105	$638

The Company leases parts of offices to associates. Rental contracts are made for periods of 3 years. Rents are paid at the beginning of every month.

F. Deferred marketing expenses (recorded under other current assets)

Associates	December 31, 2024	December 31, 2023
	$-	$48,653

G. Endorsements and guarantees provided to the Group by related parties

Li, Zhi-Xian	December 31, 2024	December 31, 2023
	$26,848,735	$31,960,684

(3) Key management personnel compensation

Short-term employee benefits Post-employment benefits Total	Year ended December 31	Year ended December 31
	2024	2023
	$29,559 761	$22,774 484
	$30,320	$23,258

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

8. Pledged assets

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

Pledged assets	Carryingamount	Carryingamount	Purpose
	December 31, 2024	December 31, 2023
Financial assets at fair value through other comprehensive income Financial assets at amortised cost - current Financial assets at amortised cost - non-current - demand deposits Financial assets at amortised cost - non-current - time deposits Other current assets - guarantee deposits paid Accounts receivable Inventories Property, plant and equipment Investment property Other non-current assets - guarantee deposits paid Total	$1,036,776 1,394,610 10,799 11,768 - 126,817 12,703,054 6,942,511 1,718,609 41,409	$766,905 698,414 26,900 35,764 58,458 95,104 9,452,781 6,708,330 1,689,236 15,627	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 Guarantee for court litigation Long-term borrowings, short- term borrowings Long-term borrowings, short- term borrowings Long-term borrowings, short- term borrowings Long-term borrowings, short- term borrowings Performance guarantee
	$23,986,353	$19,547,519

9. Significant contingencies and unrecognised contractual commitments

Except for those mentioned in Notes 6(15), the Group’s significant commitments are as follows:

(1) As of December 31, 2024 and 2023, the unused letters of credit amounted to $214,874 and $156,189 for the purchase of goods and machinery as collateral, respectively.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

(2) Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

Property, plant and equipment Consigned to construction companies to construct buildings Total	December 31, 2024	December 31, 2023
	$234,576 1,135,551	$155,768 779,025
	$1,370,127	$934,793

10. Losses due to major disasters

None.

11. Significant subsequent events

None.

12. Others

(1) Categories of financial instruments

Financial assets

Financial assets
Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable (including related parties) Other receivables Guarantee deposits paid Others Total	December 31, 2024	December 31, 2023
	$546,305	$794,086
	1,541,749	1,299,673
	2,360,882 1,417,177 371,053 2,196,257 120,327 41,409	1,697,871 761,078 349,701 2,214,185 157,808 74,085
	6,507,105	5,254,728
	$8,595,159	$7,348,487

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Financial liabilities

Financial liabilities at amortised cost Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable 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, 2024	December 31, 2023
	$6,055,610 50,000 236,167 759,961 723,310 - 12,202,310 135,659 16,183	$5,721,162 400,000 267,387 738,009 605,372 161,502 8,819,395 153,677 16,557
	$20,179,200	$16,883,061

(2) Financial risk management objectives and policies

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

Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group 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.

(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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Foreign currency risk

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

A. When NTD strengthens/weakens against USD by 5%, the profit for the years ended December 31, 2024 and 2023 is decreased/increased by $79,666 and $42,590, respectively.
B. When USD strengthens/weakens against RMB dollar by 5%, the profit for the years ended December 31, 2024 and 2023 is increased/decreased by $20,702 and $19,254, 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 Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term borrowings. During 2024 and 2023, the Group’s borrowings at variable rate were mainly denominated in NTD, USD and RMB.

The Group’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 and interest rate swaps. 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, 2024 and 2023 to decrease/increase by $16,062 and $11,655, respectively.

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

Equity price risk

The Group’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 Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

The Group’s investments in equity securities comprise shares and open-end funds 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, 2024 and 2023 would have increased/decreased by $8,232 and $13,313, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $74,160 and $62,287, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

(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 Group is exposed to credit risk from operating activities (primarily for notes receivable and accounts receivable) and financing activities (primarily for various financial instrument).

The Group manages their credit risk taking into consideration the entire group’s concern. 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 of the Group, that is, the default occurs when the contract payments are past due over 240 days.

The Group 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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

The Group applies the simplified approach using the provision matrix to estimate expected credit loss to assess the Group’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 Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

The Group 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(19).

(5) Liquidity risk management

The Group’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 Group’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.

The table below analyses the Group’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.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

December 31, 2024

Non-derivative financial liabilities Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other payables (including related parties) Long-term borrowings (including current portion) Lease liabilities (including current portion) Total	Less than 1 year	Over 1year	Total
	$6,100,938 50,000 236,167 759,961 723,310 436,514 43,118	$- - - - - 12,747,754 109,107	$6,100,938 50,000 236,167 759,961 723,310 13,184,268 152,225
	$8,350,008	$12,856,861	$21,206,869

December 31, 2023

Non-derivative financial liabilities Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other payables (including related parties) Bonds payable Long-term borrowings (including current portion) Lease liabilities (including current portion) Other non-current liabilities Total	Less than 1 year	Over 1year	Total
	$5,753,214 400,000 267,387 738,009 605,372 162,900 965,574 44,002 -	$- - - - - - 8,425,181 129,354 21,115	$5,753,214 400,000 267,387 738,009 605,372 162,900 9,390,755 173,356 21,115
	$8,936,458	$8,575,650	$17,512,108

As of December 31, 2024 and 2023 the Group all held no derivative financial liabilities.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

(6) Reconciliation of liabilities arising from financing activities

Short-term borrowings	long-term borrowings (including current portion)	Short-term notes and billspayable	Bonds payable (including current portion)	Lease liabilities	Liabilities from financing activities-gross
$5,721,162 246,812 72,949 14,687	$8,819,395 3,069,659 313,383 (127)	$400,000 (350,000) - -	$161,502 (405) (161,097) -	$153,677 (46,382) 25,558 2,806	$15,255,736 2,919,684 250,793 17,366
$6,055,610	$12,202,310	$50,000	$-	$135,659	$18,443,579
Short-term borrowings	long-term borrowings (including current portion)	Short-term notes and billspayable	Bonds payable (including current portion)	Lease liabilities	Liabilities from financing activities-gross
$4,582,817 1,150,353 - (12,008)	$8,443,364 375,604 - 427	$730,000 (330,000) - -	$610,021 - (448,519) -	$177,588 (43,373) 20,617 (1,155)	$14,543,790 1,152,584 (427,902) (12,736)
$5,721,162	$8,819,395	$400,000	$161,502	$153,677	$15,255,736

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 Group’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 Group and wealth management products are included in Level 3.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated 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
$-	$-	$-	$-
Carrying amount		Fair value
	Level 1	Level 2	Level 3
$161,502	$-	$150,009	$-

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:

December 31, 2024 Recurring fair value measurements for assets: Financial assets at fair value through profit or loss Equity securities Wealth management product Fund Financial assets at fair value through other comprehensive income Equity securities Bank debentures Investment property Total	Level 1	Level 2	Level 3	Total
	$164,643 - - 1,477,595 - -	$- - 1,000 - 58,557 -	$- 380,662 - 5,597 - 2,399,775	$164,643 380,662 1,000 1,483,192 58,557 2,399,775
	$1,642,238	$59,557	$2,786,034	$4,487,829

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

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

December 31, 2023 Recurring fair value measurements for assets: Financial assets at fair value through profit or loss Equity securities Wealth management product Capital guarantee products Financial assets at fair value through other comprehensive income Equity securities Bank debentures Investment property Total	Level 1	Level 2	Level 3	Total
	$266,265 - - 1,240,143 - -	$- - - - 53,933 -	$- 51,924 475,897 5,597 - 2,294,881	$266,265 51,924 475,897 1,245,740 53,933 2,294,881
	$1,506,408	$53,933	$2,828,299	$4,388,640

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

Listed shares Market quoted price 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.
iii. Under the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, the Group 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; while the discount rates used by the Group’s China subsidiaries are based on the rate of 10 years national debt issued by the Bank of China.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

D. For the years ended December 31, 2024 and 2023, there was no transfer between Level 1 and Level 2.
E. The following chart is the movement of Level 3 for the years ended December 31, 2024 and 2023:

Wealth management product	Wealth management product	Capitalguaranteeproducts	Capitalguaranteeproducts
2024	2023	2024	2023
$51,924 3,940 1,607,463 (1,286,365) 3,700	$52,896 929 479,131 (480,060) (972)	$475,897 - (489,788) - 13,891	$264,413 - 219,807 - (8,323)
$380,662	$51,924	$-	$475,897

F. For the years ended December 31, 2024 and 2023, there was no transfer into or out from Level 3.
G. The information on change in fair value of investment property for the years ended December 31, 2024 and 2023 is provided in Note 6(9).
H. 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. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

I. 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, 2024	Valuation technique	Significant observable input	Range	Relationship of inputs to fair value The higher the discount rate, the lower the fair value. 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
Financial assets at fair value through profit or loss: Wealth management product Financial assets at fair value through other comprehensive income: Equity securities Investment property Item	$380,662 5,597 2,399,775 Fair value at December 31, 2023	Discounted cash flow Market comparable companies Income approach Valuation technique	Discounted rate Industrial average price to book ratio Discounted rate Significant observable input	Not applicable Not applicable (Note) Range Not applicable Not applicable Not applicable (Note)
Financial assets at fair value through profit or loss: Wealth management product Capital guarantee products Financial assets at fair value through other comprehensive income: Equity securities Investment property	$51,924 475,897 5,597 2,294,881	Discounted cash flow Discounted cash flow Market comparable companies Income approach	Discounted rate Discounted rate Industrial average price to book ratio Discounted rate		The higher the discount rate, the lower the fair value. The higher the discount rate, the lower the fair value. The higher the book value per share, the higher the fair value. The higher the discount rate, the lower the fair value.

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

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated 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 31,2024	December 31,2024	December 31,2024
	Foreign currencies (in thousand)	Foreign exchange rate	NTD (in thousand)
Monetary items: USD:NTD USD:RMB Financial liabilities
Monetary items: USD:NTD USD:RMB Financial assets
	Foreign currencies (in thousand)	Foreign exchange rate	NTD (in thousand)
	$34,082 12,917 $6,341 376	30.71 7.31 30.71 7.31	$1,046,503 396,617 $194,700 11,545
Monetary items: USD:NTD USD:RMB Financial liabilities
Monetary items: USD:NTD USD:RMB

The total exchange gain, including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2024 and 2023, amounted to $123,361 and 14,048, respectively.

(9) Capital management

The primary objective of the Group’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. and Subsidiaries Notes to the Consolidated 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: None.
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 6.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 7.
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 8.
(2) Information on investees

Names, locations and other information of investee companies (not including investees in China): Please refer to table 9.

(3) Information on investments in China
A. Basic information: Please refer to table 10.
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 11.

14. Segment information

Management has determined the reportable operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. Reportable operating segments classified by products and business structure mainly contain tape manufacturing segment, package material business segment, real estate business segment and specialty chemical segment.

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

Tape manufacturing segment	Packaging material business segment	Year ended December 31, 2024 Real estate business segment Specialty chemical segment Renewable energy business segment	Year ended December 31, 2024 Real estate business segment Specialty chemical segment Renewable energy business segment	Year ended December 31, 2024 Real estate business segment Specialty chemical segment Renewable energy business segment	Adjustments and eliminations	Consolidated
$10,610,128 2,558,365	$1,436,198 -	$2,961,595 163	$465,066 6,942	$418,095 28	$- (2,565,498)	$15,891,082 -
$13,168,493	$1,436,198	$2,961,758	$472,008	$418,123	$(2,565,498)	$15,891,082
$409,836	$121,469	$303,214	$48,424	$74,851	$70,504	$1,028,298
Tape manufacturing segment	Packaging material business segment	Year ended December Real estate business segment Specialty chemical segment		31, 2023 Renewable energy business segment	Adjustments and eliminations	Consolidated
$10,539,047 2,273,026	$1,405,497 -	$889,490 -	$389,702 4,903	$- -	$- (2,277,929)	$13,223,736 -
$12,812,073	$1,405,497	$889,490	$394,605	$-	$(2,277,929)	$13,223,736
$402,041	$126,890	$20,864	$47,352	$-	$75,379	$672,526

Note: Including losses from discontinued operations.

Information on segment assets and liabilities was not disclosed because the Group did not provide the information to the Chief Operating Decision-Maker.

The revenue from external customers reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the statement of comprehensive income.

A reconciliation of reportable segment income or loss to the income/(loss) before tax from continuing operations for the years ended December 31, 2024 and 2023 is provided as follows:

Reportable segments income Non-operating income and expenses Profit before tax from continuing operations	Year ended December 31 2024 2023 $1,028,298 $672,526 115,784 322,859 $1,144,082 $995,385	Year ended December 31 2024 2023 $1,028,298 $672,526 115,784 322,859 $1,144,082 $995,385
		2023
		$672,526 322,859
		$995,385

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

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

Information on products and services

Revenue from external customers is primarily derived from the trading business of all kinds of tape, adhesives and real estate business. Details of sales revenue are as follows:

Tape BOPP Film Packaging materials Real estate business Renewable energy business Others Total	Year ended December 31	Year ended December 31
	2024	2023
	$9,393,095 1,217,033 1,436,198 2,961,595 418,095 465,066	$9,150,103 1,388,944 1,405,497 829,871 - 449,321
	$15,891,082	$13,223,736

Geographical information

The Group’s operations are located in Taiwan, China, the United States and other countries. Information on the Group's revenue from external customers and non-current assets classified based on the location of assets is as follows:

Year ended December 31	Year ended December 31	Year ended December 31	Year ended December 31
2024		2023
Revenue	Non-current assets	Revenue	Non-current assets
$10,508,325 4,068,924 1,042,268 271,565	$8,208,002 1,297,448 925,864 1,038,537	$8,231,259 3,805,665 972,087 214,725	$8,066,453 1,248,529 892,407 1,005,471
$15,891,082	$11,469,851	$13,223,736	$11,212,860

Note: Revenue is classified based on the location of sales departments.

Major customer information

There was no sale to a single customer constituting more than 10% of the Group’s consolidated net sales in 2024 and 2023.

Yem Chio Co., Ltd. and Subsidiaries

Financing provided to others For the year ended December 31, 2024

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

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)	(Expressed in thousands of New Taiwan Dollars unless otherwise specified)
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, 2024	Balance at December 31, 2024 (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 1 1 2 2 2 2 2 2 3 3 3 3 4 4 4 5 5 5 6 6 7 8 8 9 9 10 11 12 13 13	The Company The Company The Company The Company King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. 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 (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 ASIACHEM International Corporation ACHEM Technology (Shanghai) Limited ACHEM Technology (Shanghai) Limited Valueline Investment Corporation ACHEM Technology China ACHEM Technology China Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. AOE Holding Limited Fuzhou Fuda Plastic Products Co., Ltd. Master Package (Shanghai) Material Technology Co., Ltd. Yem Chio Distribution Co., Ltd. Yem Chio Distribution Co., Ltd.	Wong Chio Development., Ltd. ACHEM Technology Corporation ACHEM Technology Holding Limited Wang Chio petrochemical (Jiangsu) Co., Ltd. Hong Cheng Technology Co., Ltd. Hong Kai Technology Co., Ltd. Wong Chio Development., Ltd. UINN HOTEL The Company ACHEM Opto-Electronic Corporation ACHEM Technology Holding Limited Pantech Tape Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ASIA PLASTICS ACHEM Technology (Vietnam) Ltd. WAN CHIO Wang Chio petrochemical (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. Ningbo Yem Chio Co., Ltd. ACHEM Technology Holding Limited Wanchio Adhesive Product (Jiangsu) Co., Ltd. The Company Wang Chio petrochemical (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. ACHEM Technology Corporation ACHEM Technology Holding Limited The Company Ningbo Yem Chio Co., Ltd. Wang Chio petrochemical (Jiangsu) Co., Ltd. ACHEM Technology Holding Limited Wanchio Adhesive Product (Jiangsu) Co., Ltd. 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 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 Yes	$500,000 900,000 325,450 642,578 1,007 904 380,000 150,000 400,000 16,000 410,438 55,000 380,753 32,835 119,191 162,286 206,517 205,775 81,810 683,391 156,257 242,979 599,622 279,972 27,000 32,835 290,147 36,360 377,687 45,563 59,085 44,541 325,000 385,000	$- - - - - - 200,000 100,000 400,000 13,000 163,925 55,000 - 32,785 119,010 162,286 - 205,316 80,604 491,447 153,954 242,609 - - 27,000 - 290,147 35,824 - 34,424 - 43,884 - 260,000	$- - - - - - 200,000 85,000 - 13,000 88,520 53,000 - 27,867 119,010 162,286 - 205,316 80,604 491,447 153,954 242,609 - - 27,000 - 290,147 35,824 - 32,785 - 43,884 - 60,000	2.00% 2.00% 2.00% 0.00% 3.00% 3.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 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% 2.00% 2.8%-4.9% 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 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 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 None	$- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	$2,644,772 2,644,772 2,644,772 2,644,772 44,652 44,652 1,222,557 1,222,557 1,222,557 1,222,557 1,222,557 1,222,557 4,310,900 4,310,900 4,310,900 4,310,900 906,964 906,964 906,964 1,452,539 1,452,539 581,016 557,050 557,050 29,234 3,236,929 1,294,771 40,695,175 40,695,175 567,492 - 47,782 288,121 288,121	$5,289,545 5,289,545 5,289,545 5,289,545 89,304 89,304 2,139,475 2,139,475 2,139,475 2,139,475 2,139,475 2,139,475 4,310,900 4,310,900 4,310,900 4,310,900 906,964 906,964 906,964 1,452,539 1,452,539 581,016 557,050 557,050 29,234 3,236,929 1,294,771 40,695,175 40,695,175 567,492 - 47,782 288,121 288,121	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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, 2024.

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 King Sun New Tech Co., Ltd., the ceiling for total financing amount shall not exceed 40% of stockholders’ equity, and separate financing amount shall not exceed 20% of stockholders' equity.
(3) 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.
(4) 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.
(5) 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.
(6) 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.
(7) 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.
(8) 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.
(9) 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.
(10) 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.
(11) 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.
(12) Limit on loans granted by Fuzhou Fuda Plastic Products Co., Ltd. to others and to a single party shall not exceed 40% of the stockholders’ equity .
If borrowers are foreign companies whose voting rights are directly and indirectly wholly-owned by the ultimate parent company of Fuzhou Fuda Plastic Products Co., Ltd., the limit on loans is
100% of the stockholders’ equity of Fuzhou Fuda Plastic Products Co., Ltd.
(13) 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.
(14) Limit on Yem Chio Distribution 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.
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.

Endorsement/Guarantee provided to others For the year ended December 31, 2024

Yem Chio Co., Ltd. and Subsidiaries

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

Table 2

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/guaran tee 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
		Companyname	Relationship (Note 2)
0 0 1 1 1 1 1 2 2 2 2 2 3	The Company The Company King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology Corporation ACHEM Technology (Shanghai) Limited	ACHEM Technology (Vietnam) Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd. Hong How Technology Co., Ltd. Hong Ning International Co., Ltd. Hong Wu Technology Co., Ltd. Hong Kai Technology Co., Ltd. Hong He Energy 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 2 2 2	$13,223,862 13,223,862 223,259 223,259 223,259 223,259 223,259 6,112,786 6,112,786 6,112,786 6,112,786 6,112,786 557,050	$32,835 426,300 52,928 30,000 16,225 15,990 69,971 30,000 878,715 204,525 127,260 65,570 349,284	$32,785 161,208 52,928 30,000 16,225 15,990 69,971 30,000 590,130 201,510 125,384 65,570 349,284	$65 - 46,455 24,462 13,690 14,907 67,681 - - - - - 300,026	$- - - - - - - - - - - - -	0% 1% 27% 15% 8% 8% 36% 1% 10% 3% 2% 1% 43%	$19,835,793 19,835,793 669,777 669,777 669,777 669,777 669,777 6,112,786 6,112,786 6,112,786 6,112,786 6,112,786 557,050	Y Y N N N N N N N N N N N	N N N N N N N N N N N N N	N Y N N N N N 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 King Sun New Tech Co., Ltd. to others and to a single party is based on 300% and 100% of King Sun New Tech Co., Ltd.’s net equity in the latest financial statements, respectively.
(3) 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.
(4) 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, 2024

(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, 2024				Footnote (Note 4)
					Number of shares (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 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 Valueline Investment Corporation Valueline Investment Corporation Valueline Investment Corporation ACHEM Technology Holding Limited ACHEM Technology Holding Limited Foshan Inder Adhesive Product Co., Ltd Master Package (Shanghai) Material Technology Co., Ltd. King Sun New Tech Co., 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 Bank debenture Common stock Common stock Common stock Beneficiary certificates Common stock Wealth management products Wealth management products Fund	Yuanta Taiwan Top 50 ETF UNI-PRESIDENT ENTERPRISES CORP. DELTA ELECTRONICS, INC. HON HAI PRECISION IND. CO., LTD. YAGEO CORPORATION Taiwan Semiconductor Manufacturing Co., Ltd. ASUSTEK COMPUTER INCORPORATION Micro-Star International Co., Ltd. Quanta Computer Inc. MediaTek Inc. CATCHER TECHNOLOGY CO., LTD. EVERGREEN MARINE CORP. (TAIWAN) LTD. U-Ming Marine Transport Corporation EVA Airways Corporation AIDC/AEROSPACE INDUSTRIAL DEVELOPMENT CORP. Fubon Financial Holding Co., Ltd. CTBC Financial Holding Co., Ltd. ASE Technology Holding Co., 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 HON HAI PRECISION IND. CO., LTD. YAGEO CORPORATION Taiwan Semiconductor Manufacturing Co., Ltd. ASUSTEK COMPUTER INCORPORATION Quanta Computer Inc. MediaTek Inc. CATCHER TECHNOLOGY CO., LTD. AIDC/AEROSPACE INDUSTRIAL DEVELOPMENT CORP. ASE Technology Holding Co., 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. Wealth management products launched by Bank of China Wealth management products launched by Bank of China Eastspring Investments Target Maturity 3-6 Year Global EM Bond Fund Acc USD	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 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 - non-current	231,000 101,000 59,000 380,000 52,000 264,000 78,000 13,000 771,000 198,000 10,000 514,000 820,000 1,420,000 582,000 833,426 1,609,000 111,000 171,900 16,822,281 3,079 89,000 43,000 49,000 51,000 16,000 7,000 130,000 28,000 9,000 45,000 10,000 23,000 7,212,885 - 406,409 800,000 1,600,000 58,721 1,194,138 - - 3,000	45,218 $ 8,170 25,400 69,920 28,132 283,800 48,048 2,386 221,277 280,170 1,940 115,650 47,642 62,977 26,103 75,258 62,912 17,982 5,597 290,184 54,610 17,422 4,906 9,016 27,591 17,200 4,312 37,310 39,620 1,746 2,018 1,620 1,882 - 58,557 7,011 - - - 20,599 335,882 44,780 1,000	0.01% 0.00% 0.00% 0.00% 0.01% 0.00% 0.01% 0.00% 0.02% 0.01% 0.00% 0.02% 0.10% 0.03% 0.06% 0.01% 0.01% 0.00% 17.19% 2.48% 0.00% 0.00% 0.00% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.02% 7.99% - 0.06% 6.96% 10.00% - 0.18% - - -	$45,218 $8,170 25,400 69,920 28,132 283,800 48,048 2,386 221,277 280,170 1,940 115,650 47,642 62,977 26,103 75,258 62,912 17,982 5,597 290,184 54,610 17,422 4,906 9,016 27,591 17,200 4,312 37,310 39,620 1,746 2,018 1,620 1,882 - 58,557 7,011 - - - 20,599 335,882 44,780 1,000	61,000 10,000 53,000 336,000 - 234,000 67,000 - 682,000 142,000 - 455,000 - 1,330,000 506,000 361,000 610,000 58,000 - - - - - - - - - - - - - - - - - - - - - - - - -

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.

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, 2024

(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 (Note 3)	Balance as at January1,2024		Addition(Note 4)		Disposal(Notte 4)				Balance as at December 31,2024
					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 The Company ACHEM Technology Corporation ACHEM Technology Corporation Foshan Inder Adhesive Product Co., Ltd. Foshan Inder Adhesive Product Co., Ltd. Foshan Inder Adhesive Product Co., Ltd. Master Package (Shanghai) Material Technology Co., Ltd.	Common stock: HON HAI PRECISION IND. CO., LTD. Common stock: Quanta Computer Inc. Common stock: Taiwan Semiconductor Manufacturing Co., Ltd. Common stock: Quanta Computer Inc. Financial product: Financial product launched by Bank of China 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) (2) (1) (1) (1) (1) (1) (1)	- - - - - - - -	- - - - - - - -	3,295 213 120 92 - - - -	$344,328 47,818 71,160 20,654 - 216,317 259,580 51,924	516 1,173 302 1,066 - - - -	$84,542 306,016 270,886 292,901 1,349,143 356,209 534,314 258,320	3,431 615 406 1,028 - - - -	$521,614 181,675 355,927 304,933 1,013,261 572,526 793,894 268,107	$389,264 143,164 321,293 275,374 1,013,261 572,526 793,894 268,107	$132,350 38,511 34,634 29,559 - - - -	380 771 16 130 - - - -	$69,920 221,277 17,200 37,310 335,882 - - 44,780

Note 1: The numbers filled in general ledger account are as follows:
(1) Financial assets at fair value through profit or loss
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 cumulative amounts of purchases and sales should be separately calculated at market value to determine whether they reach $300 million or 20% of the paid-in capital.

Yem Chio Co., Ltd. and Subsidiaries

(Expressed in thousands of New Taiwan Table 5 Acquisition of real estate reaching $300 mi For the year ended De	(Expressed in thousands of New Taiwan Table 5 Acquisition of real estate reaching $300 mi For the year ended De	(Expressed in thousands of New Taiwan Table 5 Acquisition of real estate reaching $300 mi For the year ended De	(Expressed in thousands of New Taiwan Table 5 Acquisition of real estate reaching $300 mi For the year ended De	(Expressed in thousands of New Taiwan Table 5 Acquisition of real estate reaching $300 mi For the year ended De	(Expressed in thousands of New Taiwan Table 5 Acquisition of real estate reaching $300 mi For the year ended De	(Expressed in thousands of New Taiwan Table 5 Acquisition of real estate reaching $300 mi For the year ended De	Dollars unless otherwise specified) llion or 20% of paid-in capital or more cember 31, 2024	Dollars unless otherwise specified) llion or 20% of paid-in capital or more cember 31, 2024	Dollars unless otherwise specified) llion or 20% of paid-in capital or more cember 31, 2024	Dollars unless otherwise specified) llion or 20% of paid-in capital or more cember 31, 2024	Dollars unless otherwise specified) llion or 20% of paid-in capital or more cember 31, 2024	Dollars unless otherwise specified) llion or 20% of paid-in capital or more cember 31, 2024	Dollars unless otherwise specified) llion or 20% of paid-in capital or more cember 31, 2024
Real estate acquired by	Real estate acquired	Transaction date	Transaction amount	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 of the real estate	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	Thirty-one tracts of land in No.805, Taishan Section, Taishan District, New Taipei City Thirteen tracts of land in No.114-12, Zhonggangcuo Section, Xinzhuang District, New Taipei City One tract of land in No.88, Dafeng Section, Xindian District, New Taipei City	2024.2.2 2024.3.14 2024.6.27	$ 472,555 $ 1,005,000 $ 652,886	The payment was completed in April 2024 The payment was completed in April 2024 Based on the terms in the contracts	A group of one person A group of 7 people A group of 19 people	Third party Third party Third party	N/A N/A N/A	N/A N/A N/A	N/A N/A N/A	N/A N/A N/A	According to appraisal report issued by the Panasia Real Estate, the estimated value is $497,885. According to appraisal report issued by the Cathay Real Estate, the estimated value is $1,059,064. According to appraisal report issued by the Panasia Real Estate, the estimated value is $1,007,543. According to appraisal report issued by the Cathay Real Estate, the estimated value is $662,633.	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.	- - -

Note 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

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, 2024

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

Table 6

Table 6
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 Yem Chio Distribution 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	$533,670 111,626 287,542 129,770 157,351 189,265 271,642 330,018	21.68% 4.53% 11.68% 4.34% 5.26% 4.12% 10.87% 13.20%	30 days after monthly billings 30 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 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4	Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4	$11,335 - - 35,776 47,504 31,831 42,778 82,908	3.02% 0.00% 0.00% 9.22% 12.24% 3.80% 6.00% 11.63%	None None None None None None None None

Note 1: 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: 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 4: The description of the transaction is not significantly different with third parties and as such, no need to disclose.

100

Yem Chio Co., Ltd. and Subsidiaries

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

December 31, 2024

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

Table 7

Table 7
Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2024 (Note 1)	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
				Amount	Action taken
ACHEM Technology Corporation ACHEM Technology Holding Limited ACHEM Technology Holding Limited ASIACHEM International Corporation ASIACHEM International Corporation ASIACHEM International Corporation ACHEM Technology China ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	Wong Chio Development., Ltd. ACHEM Technology (Vietnam) Ltd. WAN CHIO The Company ACHEM Technology Holding Limited Wanchio Adhesive Product (Jiangsu) Co., Ltd. The Company Wanchio Adhesive Product (Jiangsu) Co., Ltd.	Brother company An indirect subsidiary Associate Parent company Brother company Brother company Parent company Brother company	Other receivables $201,245 Other receivables 120,947 Other receivables 164,494 Other receivables 246,389 Other receivables 504,724 Other receivables 165,765 Other receivables 291,393 Other receivables 208,387	- $ - - - - - - -	- - - - - - - -	- $ - - - - - - -	- $ - - - - - - -

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

101

Yem Chio Co., Ltd. and Subsidiaries

Significant inter-company transactions during the reporting period

For the year ended December 31, 2024

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

Table 8

Table 8
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 3 3	The Company The Company ACHEM Technology Corporation ASIACHEM International Corporation Wanchio Adhesive Product (Jiangsu) Co., Ltd. Wanchio Adhesive Product (Jiangsu) Co., Ltd.	ACHEM Technology Corporation ACHEM Industry America Inc. ACHEM Industry America Inc. ACHEM Technology Holding Limited ACHEM Technology Corporation ACHEM Technology (Dongguan) Adhesive Products Co., Ltd.	(1) (1) (1) (3) (2) (3)	Sales Sales Sales Other receivables Sales Sales	$533,670 287,542 189,265 504,724 271,642 330,018	30 days after monthly billings 60 days after the receipt of shipment 60 days after monthly billings Depends on negotiation 60 days after monthly billings 60 days after monthly billings	3.36% 1.81% 1.19% 1.43% 1.71% 2.08%

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.

Note 5: Individual transaction amounts that do not reach 1% of the total consolidated assets or total consolidated revenue will not be disclosed; or disclosure will be based on assets and revenue.

102

Information on investees (not including investees in Mainland China) For the year ended December 31, 2024

Yem Chio Co., Ltd. and Subsidiaries

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

Table 9

Table 9
Investor	Investee (Note 1`、`2)	Location	Main business activities	Initial investment amount		Shares held as at December 31,2024			Net profit (loss) of the investee for the year ended December 31,2024	Investment income (loss) recognised by the Company for the year ended December 31, 2024 (Note 3)	Footnote
				Balance as at December 31,2024	Balance as at December 31,2023	Number of shares	Ownership (%)	Carryingamount
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 King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd.	YEM CHIO UINN HOTEL Wong Chio Development., Ltd. ACHEM Technology Corporation Yem Chio Distribution 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 Yem Chio Distribution 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 Hong Yi Energy Co., Ltd. Hong How Technology Co., Ltd. Hong Er Technology Co., Ltd. Hong Wu Technology Co., Ltd. Hong Ba Technology Co., Ltd. Hong Ning International Co., Ltd.	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 Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	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 Solar power system engineering, manufacturing and sales of solar-related electronic equipment. Investment holdings Investment holdings Investment holdings 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 Investment holdings Investment holdings Business of import, export and distribution Manufacturing and sales of various adhesives products Investment of high technology industry Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry	$1,544,764 25,740 345,077 3,999,048 170,563 2,940 224,210 381,388 960,601 381,437 3,308,798 249,287 362,935 168,253 41,160 447,286 2,236,235 393,420 609,801 572,705 4,557 285,230 69,399 5,000 8,000 5,000 2,000 4,000 7,000	$1,544,764 25,740 345,077 3,999,048 299,264 8,000 72,105 381,388 960,601 381,437 3,308,798 249,287 362,935 242,903 41,160 447,286 2,236,235 393,420 609,801 572,705 4,557 285,230 69,399 - - - - - -	47,117,523 - 34,507,664 399,904,848 12,870,060 1,320,000 7,300,000 11,632,500 40,400,000 23,269 100,924 826,089 24,575,000 7,465,000 1,200,000 13,643,000 68,209,075 - 18,600,000 14,217,500 353,152 50,000 4,234 - - - 200,000 400,000 -	100.00% 100.00% 100.00% 100.00% 38.86% 40.00% 66.36% 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% 100.00% 100.00% 100.00% 50.00% 100.00%	$121,020 (82,883) 281,977 6,006,899 (53,933) (5,944) 243,824 19,469 (110,672) 1,452,526 4,299,597 73,084 549,134 232,722 23,151 1,202,561 3,236,922 153,465 (50,964) 23,796 25,618 1,076,595 567,492 (1,687) (1,382) 4,909 (1,796) 1,955 6,725	$878,937 (45,824) (20,773) 596,350 111,037 (1,452) 56,666 490,319 919,978 (30,591) 208,358 1,134 21,975 111,037 (16,278) 4,800 (328,799) (29,289) 919,978 490,319 2,991 5,046 25,500 1,034 1,606 (7) 354 986 1,365	$862,356 (46,965) (20,172) 609,823 42,401 4,593 37,606 - - - - - - - - - - - - - - - - - - - - - -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary 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 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 An indirect subsidiary An indirect subsidiary An indirect subsidiary

103

Investor	Investee (Note 1`、`2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2024	Shares held as at December 31,2024	Shares held as at December 31,2024	Net profit (loss) of the investee for the year ended December 31,2024	Investment income (loss) recognised by the Company for the year ended December 31, 2024 (Note 3)	Footnote
				Balance as at December 31,2024	Balance as at December 31,2023	Number of shares	Ownership (%)	Carryingamount
King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd. King Sun New Tech Co., Ltd.	Hong Cheng Technology Co., Ltd. Hong Kai Technology Co., Ltd. Hong He Energy Co., Ltd. Hong Chang Technology Co., Ltd. RongCheng Energy Co., Ltd.	Taiwan Taiwan Taiwan Taiwan Taiwan	Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry Renewable energy power generation industry	5,000 5,000 20,000 2,000 50	- - - - -	500,000 500,000 2,000,000 200,000 5,000	100.00% 100.00% 100.00% 100.00% 100.00%	3,573 1,900 2,263 1,991 40	144 162 803 (9) (10)	- - - - -	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, 2024’ 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, 2024’ 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, 2024’ 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.

104

Yem Chio Co., Ltd. and Subsidiaries

Information on investments in Mainland China - Basic Information

For the year ended December 31, 2024

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

Table 10

Table 10
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, 2024	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2024		Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2024	Net income of investee for the year ended December 31, 2024	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2024 (Note 2)	Book value of investments in Mainland China as of December 31,2024	Accumulated amount of investment income remitted back to Taiwan as of December 31,2024	Footnote (Note 2)
					Remitted to Mainland China	Remitted back to Taiwan
Ningbo Yem Chio Co., Ltd. Master Package (Shanghai) Material Technology Co., Ltd. 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.	Manufacturing and sales of adhesives and polystyrene sheets Import and export trading of packaging materials Manufacturing and sales of various adhesives products Manufacturing and sales of various adhesives products Discontinued operations Manufacturing and sales of various adhesives products Manufacturing and sales of various adhesives products Manufacturing and sales of various adhesives products Manufacturing and sales of polarizing film, photoelectric material, optical thin-film and polarizing adhesives Discontinued operations Manufacturing and sales of various adhesives products	$368,175 199,988 33,441 463,105 42,621 4,918 246,281 527,839 668,505 2,622,800 1,272,065	2 1 1 2 2 2 2 2 2 2 2	$939,319 199,988 38,173 182,219 34,424 4,918 246,281 527,839 163,151 1,570,402 983,550	- $ - - - - - - - - - -	- $ - - - - - - - - - -	$939,319 199,988 38,173 182,219 34,424 4,918 246,281 527,839 163,151 1,570,402 983,550	$492,915 466 267 25,914 - 464 (97,207) (524,709) 143,266 1,844,243 292,101	100.00% 61.40% 61.40% 62.30% 100.00% 100.00% 100.00% 100.00% 31.42% 100.00% 100.00%	$492,915 286 164 16,144 - 464 (97,207) (524,709) 45,014 1,844,243 292,101	$59,298 119,452 6,361 378,818 - 10,614 906,980 557,052 1,049,880 2,867 1,356,506	$- - - - - - - - 416,370 - -	B B B B B B B B B B B

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2024	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 Yem Chio Distribution Co., Ltd.	$1,185,731 $3,324,887 $238,161	$1,207,042 $3,324,887 $238,161	$8,270,780 $3,819,884 $432,181

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, 2024’ 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, 2024 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, 2024 was USD 101,415 thousand, and the amount approved by MOEA was USD 101,415 thousand.
(3) Yem Chio Distribution Co., Ltd.’s accumulated amount of remittance to Mainland China as of December 31, 2024 was USD 7,264 thousand, and the amount approved by MOEA was USD 7,264 thousand.

105

Yem Chio Co., Ltd.

Major shareholders' information

December 31, 2024

Table 11

Table 11
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	7.79% 7.61% 6.29%

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.

106

AI assistant

YC — Audit Report / Information 2024

52391_rns_2024-11-13_8f62782d-0dce-4963-98cf-d01bbccfba26.pdf

YEM CHIO CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

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 Consolidated Financial Statements

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Others

Notice to Readers

Yem Chio Co., Ltd. and Subsidiaries

Consolidated Balance Sheets

December 31, 2024 and 2023

Yem Chio Co., Ltd. and Subsidiaries

December 31, 2024 and 2023

Yem Chio Co., Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income

For the Years Ended December 31, 2024 and 2023

Yem Chio Co., Ltd. and Subsidiaries

Consolidated Statements of Comprehensive Income (Continued) For the Years Ended December 31, 2024 And 2023

Yem Chio Co., Ltd. and Subsidiaries Consolidated Statements of Changes in Equity For the Years Ended December 31, 2024 and 2023

(Expressed in thousands of New Taiwan dollars)

Yem Chio Co., Ltd. and Subsidiaries

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2024 and 2023

Yem Chio Co., Ltd. and Subsidiaries

Consolidated Statements of Cash Flows (Continued)

For the Years Ended December 31, 2024 and 2023

1. History and organization

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

3. Newly issued or revised standards and interpretations

Yem Chio Co., Ltd. and Subsidiaries

Notes to the Consolidated Financial Statements (Continued)

4. Summary of material accounting policies

Preparation principle of consolidated financial statements

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

Yem Chio Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements (Continued)

Names and relationship of related parties

(4) Foreign currency transactions

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

(11) Investments accounted for using the equity method

(12) Property, plant and equipment

(13) Investment property

(14) Leases

Group as a lessee

Group as a lessor

(15) Intangible assets

(16) Impairment of non-financial assets

(17) Treasury shares

(18) Revenue recognition

A. Sales of goods

B. Land development and resale

(19) Borrowing costs

(20) Post-employment benefits

(21) Income taxes

Current income tax

Deferred tax

5. Significant accounting judgements, estimates and assumptions

(1) Judgement

(2) Estimates and assumptions

YC Audit Report / Information 2024