Y.C.C. — Audit Report / Information 2023

Dec 22, 2023

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2023 AND 2022

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

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Y.C.C. Parts Mfg. Co., Ltd. Opinion

We have audited the accompanying consolidated balance sheets of Y.C.C. Parts Mfg. Co., Ltd. and subsidiaries (the “Group”) as at December 31, 2023 and 2022, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2023 and 2022, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

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

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Key audit matters

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

Key audit matters for the Group’s 2023 consolidated financial statements are stated as follows:

Cut-off of sales revenue recognition

Description

For the accounting policy of revenue recognition, please refer to Note 4(29); and for details of operating revenue, please refer to Note 6(19). The Group is primarily engaged in manufacturing and trading automobile parts. Sale revenue is recognised when the control over the goods was transferred under the transaction terms.

The sales revenue recognition involves the use of several manual judgements and procedures. As a result, the timing of sales revenue recognition may be inappropriate. Therefore, we included the cut-off of sales revenue recognition as one of the key areas of focus for this year.

How our audit addressed the matter

Our audit procedures in relation to the above key audit matter included:

1. Understanding and evaluating the operating procedures and internal controls over sales revenue, and assessing the effectiveness on how the management controls the timing of recognizing sales revenue.

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1. Examined the transaction documents to ensure that transactions had been recorded in the proper period for a certain period around the balance sheet date.

Assessment of allowance for inventory valuation loss

Description

For the accounting policy of inventory assessment, please refer to Note 4(14); for accounting estimates and assumption uncertainty in relation to inventory valuation, please refer to Note 5; and for details of allowance for inventory valuation losses, please refer to Note 6(5). The Group is primarily engaged in manufacturing and trading automobile parts. Sale revenue is recognised when the control over the goods was transferred under the transaction terms.

As of December 31, 2023, the balances of inventories and allowance for inventory valuation losses were NT$ 411,843 thousand and NT$ 54,522 thousand, respectively.

The Group is primarily engaged in manufacturing and trading automobile parts. Inventories that are over a certain age and separately recognised as impaired inventories are stated at the lower of cost and net realisable value. Those inventory items separately identified as obsolete and damaged are corroborated against supporting documents in recognising valuation losses. Considering that the Group’s inventories were material to its financial statements, and the determination of net realisable value as at balance sheet date involved judgements and estimates, we identified the assessment of allowance for inventory valuation losses a key audit matter.

How our audit addressed the matter

Our audit procedures in relation to the above key audit matter included:

1. Obtained an understanding of the nature of the Group’s business and industry and assessed the reasonableness of provision policies in the determination of allowance

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for inventory valuation losses.

1. Reviewed the Group’s annual counting plan and conducted their physical counts on inventories to evaluate the control effectiveness on inventory classification.

2. Obtained the Group’s inventory aging report and verified dates of movements with supporting documents. Ensured the proper categorisation of inventory aging report in accordance with the Group’s policy.

3. Obtained the net realisable value statement of each inventory, assessed whether the estimation policy was consistently applied, tested the estimation basis of the net realisable value with relevant information, including verifying the sales and purchase prices with supporting evidence, and recalculated and evaluated the reasonableness of the inventory valuation.

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion on the parent company only financial statements of Y.C.C. Parts Mfg. Co., Ltd. as at and for the years ended December 31, 2023 and 2022.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, 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.

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

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

Auditors’ responsibilities for the audit of the consolidated financial

statements

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

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:

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of

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internal control.

1. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

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

3. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

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

5. 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.

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

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

Wang, Yu-Chuan[Liu, Mei Lan ]

For and on behalf of PricewaterhouseCoopers, Taiwan March 7, 2024

------------------------------------------------------------------------------------------------------------------------------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 generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers 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.

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(3) 6(4) 6(4) 6(5) 6(6) 6(3) and 8 6(7) and 8 6(8) and 8 6(9) and 8 6(25) 6(10)	December 31, 2023 AMOUNT % $ 550,670 10 135,445 2 125,890 2 37,971 1 499,189 9 10,072 - 357,322 7 33,194 1 1,749,753 32 128,299 2 300 - 2,873,418 53 150,100 3 94,441 2 3,758 - 109,196 2 309,435 6 3,668,947 68 $ 5,418,700 100	December 31, 2022	December 31, 2022
		AMOUNT $ 550,670 135,445 125,890 37,971 499,189 10,072 357,322 33,194 1,749,753 128,299 300 2,873,418 150,100 94,441 3,758 109,196 309,435 3,668,947 $ 5,418,700	AMOUNT $ 1,036,374 129,623 - 27,081 534,281 10,366 300,192 43,097 2,081,014 75,247 300 2,974,815 140,906 14,713 5,016 107,967 137,492 3,456,456 $ 5,537,470	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Financial assets at amortised cost 1150 Notes receivable, net 1170 Accounts receivable, net 1200 Other receivables 130X Inventories 1470 Other current assets 11XX Total current Assets Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 1535 Non-current financial assets at amortised cost 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets				19 2 - 1 10 - 5 1
				38
				1 - 54 3 - - 2 2
				62
				100

(Continued)

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December 31, 2023 December 31, 2022 Notes AMOUNT % AMOUNT % 6(11) $ 35,786 1 $ 261,721 5 6(2) 2,952 - - - 6(19) 22,267 - 14,852 - 6(27) 178,448 3 179,968 3 101,114 2 141,453 2 6(12) 182,257 3 197,101 4 6(25) 188,160 4 143,864 3 6(13) 133,167 2 169,662 3 6(8) 5,696 - 2,655 - 849,847 15 1,111,276 20 6(13) 446,846 8 566,370 10 56,283 1 28,511 1 6(25) - - 513 - 6(8)(14) 23,763 1 15,251 - 526,892 10 610,645 11 1,376,739 25 1,721,921 31 6(16) 741,239 14 741,239 13 6(17) 1,193,349 22 1,193,349 22 6(18) 383,999 7 343,211 6 109,142 2 120,040 2 1,612,189 30 1,425,612 26 ( 94,043) ( 2) ( 109,142) ( 2 ) 3,945,875 73 3,714,309 67 96,086 2 101,240 2 4,041,961 75 3,815,549 69 9 $ 5,418,700 100 $ 5,537,470 100

Current liabilities 2100 Short-term borrowings 2120 Financial liabilities at fair value through profit or loss - current 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2200 Other payables 2230 Current income tax liabilities 2320 Long-term liabilities, current portion 2399 Other current liabilities, others 21XX Total current Liabilities Non-current liabilities 2540 Long-term borrowings 2560 Current tax liabilities-non-current 2570 Deferred income tax liabilities 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total Liabilities Equity attributable to owners of parent Share capital 3110 Share capital - common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interests 3XXX Total equity Significant events after the balance sheet date 3X2X Total liabilities and equity

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

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

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

Items

Year ended December 31 2023 2022 Notes AMOUNT % AMOUNT % 6(19) $ 2,051,209 100 $ 2,020,758 100 6(5)(23)(24) ( 1,361,742) ( 67) ( 1,490,296) ( 74) 689,467 33 530,462 26 6(23)(24) ( 146,205) ( 7) ( 126,108) ( 6) ( 113,344) ( 6) ( 136,240) ( 7) ( 69,766) ( 3) ( 70,601) ( 3) 12(2) 41,711 2 ( 17,511) ( 1) ( 287,604) ( 14) ( 350,460) ( 17) 401,863 19 180,002 9 34,593 2 18,751 1 6(20) 52,075 2 33,458 1 6(21) 72,947 4 321,339 16 6(22) ( 17,269) ( 1) ( 26,327) ( 1) 142,346 7 347,221 17 544,209 26 527,223 26 6(25) ( 111,745) ( 5) ( 126,230) ( 6) $ 432,464 21 $ 400,993 20

4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 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 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year

(Continued)

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

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

Items	Notes 6(16) 6(6) ( ( ( ( ( 6(26)	Year ended December 31	Year ended December 31	Year ended December 31
		2023	2022 % AMOUNT - ($ 381) 2 7,008 - 76 2 6,703 1) 5,843 1) 5,843 1 $ 12,546 22 $ 413,539 21 $ 408,560 - ( 7,567) 21 $ 400,993 22 $ 419,153 - ( 5,614) 22 $ 413,539 5.88 $ 5.86 $	2022
		AMOUNT $ 3,972 26,304 794) 29,482 13,162) ( 13,162) ( $ 16,320 $ 448,784 $ 435,661 3,197) $ 432,464 $ 453,938 5,154) $ 448,784 $			%
Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8311 Other comprehensive income, before tax, actuarial gains (losses) on defined benefit plans 8316 Unrealized gains (losses) on investments in equity instruments measured at fair value through other comprehensive income 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive 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 8360 Components of other comprehensive income that will be reclassified to profit or loss 8300 Total other comprehensive income for the year 8500 Total comprehensive income for the year Profit (loss), attributable to: 8610 Owners of parent 8620 Non-controlling interests Total Comprehensive income (loss) attributable to: 8710 Owners of parent 8720 Non-controlling interests Total Basic earnings per share 9750 Basic earnings per share 9850 Diluted earnings per share					- -
					-
					-
					-
					-
					-
					20
					20 -
					20
					20 -
					20
					5.51
		$		$	5.50

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

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Year 2022 Balance at January 1, 2022 Profit (loss) for the year Other comprehensive income (loss) Total comprehensive income (loss) Appropriation and distribution of 2021 earnings Legal reserve Special reserve Cash dividends Retirement of treasury shares Balance at December 31, 2022 Year 2023 Balance at January 1, 2023 Profit (loss) for the period Other comprehensive income (loss) Total comprehensive income (loss) Appropriation and distribution of 2022 earnings Legal reserve Special reserve Cash dividends Balance at December 31, 2023	Notes							Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent				Non-controlling interests		Total equity
			Share capital - common stock	Capital surplus, additional paid- in capital				Retained earnings		Other equity interest		Treasury shares		Total
							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
	6(6) 6(18) 6(6) 6(18)	$ 741,389 - - - - - - ( 150 ) $ 741,239 $ 741,239 - - - - - - $ 741,239			$ 1,193,349 - - - - - - - $ 1,193,349 $ 1,193,349 - - - - - - $ 1,193,349		$ 329,574 - - - 13,637 - - - $ 343,211 $ 343,211 - - - 40,788 - - $ 383,999	$ 105,211 - - - - 14,829 - - $ 120,040 $ 120,040 - - - - ( 10,898 ) - $ 109,142	$ 1,194,447 408,560 ( 305 ) 408,255 ( 13,637 ) ( 14,829 ) ( 148,248 ) ( 376 ) $ 1,425,612 $ 1,425,612 435,661 3,178 438,839 ( 40,788 ) 10,898 ( 222,372 ) $ 1,612,189	($ 86,492 ) - 3,890 3,890 - - - - ($ 82,602 ) ($ 82,602 ) - ( 11,205 ) ( 11,205 ) - - - ($ 93,807 )	($ 33,548 ) - 7,008 7,008 - - - - ($ 26,540 ) ($ 26,540 ) - 26,304 26,304 - - - ($ 236 )	($ 526 ) - - - - - - 526 $ - $ - - - - - - - $ -	$ 3,443,404 408,560 10,593 419,153 - - ( 148,248 ) - $ 3,714,309 $ 3,714,309 435,661 18,277 453,938 - - ( 222,372 ) $ 3,945,875		$ 106,854 ( 7,567 ) 1,953 ( 5,614 ) - - - - $ 101,240 $ 101,240 ( 3,197 ) ( 1,957 ) ( 5,154 ) - - - $ 96,086	$ 3,550,258 400,993 12,546 413,539 - - ( 148,248 ) - $ 3,815,549 $ 3,815,549 432,464 16,320 448,784 - - ( 222,372 ) $ 4,041,961

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

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation expense (including investment property) Depreciation expense - right-of-use assets Amortisation expense Expected credit impairment loss Net gain on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Government grant revenues Dividend income Proceeds from disposal of property, plant and equipment Changes in operating assets and liabilities Changes in operating assets Notes receivable, net Accounts receivable, net Other receivables Inventories Other current assets Changes in operating liabilities Contract liabilities - current Notes payable Accounts payable Other payables Other current liabilities Net defined benefit liability Cash inflow generated from operations Interest received Interest paid Dividend received Income taxes paid Net cash flows from operating activities

Notes Year ended December 31 2023 2022 $ 544,209 $ 527,223 6(9)(23) 363,594 362,608 6(8)(23) 6,714 6,383 6(23) 6,291 7,087 12(2) ( 41,711 ) 17,511 6(2)(21) ( 6,522 ) ( 39,275 ) 6(22) 17,269 26,327 ( 34,593 ) ( 18,751 ) 6(14) ( 1,410 ) ( 1,099 ) 6(20) ( 7,132 ) ( 4,958 ) 6(21) ( 4,283 ) ( 3,798 ) ( 10,890 ) 27,974 76,803 ( 109,799 ) ( 14,222 ) 2,445 ( 57,130 ) 13,498 9,903 7,000 7,415 ( 3,060 ) 17,202 ( 15,488 ) ( 40,339 ) ( 16,149 ) ( 4,692 ) ( 1,620 ) 5,603 ( 677 ) ( 138 ) 409 831,941 783,791 34,863 16,732 ( 17,182 ) ( 26,212 ) 7,132 4,958 ( 51,135 ) ( 31,677 ) 805,619 747,592

(Continued)

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss (Increase) decrease in financial assets at amortised cost Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Payment for capitalized interest Acquisition of intangible assets Decrease in other financial assets Increase in refundable deposits Acquisition of non-current financial assets at fair value through other comprehensive income Acquisition of real estate investment Decrease in other non-current assets Increase in prepayment of equipment and construction Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-term borrowings Decrease in short-term notes and bills payable Proceeds from long-term borrowings Repayments of long-term borrowings Increase in refundable deposits Repayments of principal portion of lease liabilities Cash dividends paid Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Notes Year ended December 31 2023 2022 6(27) ($ 12,263 ) ($ 102,240 ) 14,532 95,485 ( 125,890 ) 199,416 6(27) ( 209,306 ) ( 365,716 ) 32,504 5,040 6(7) - ( 1,193 ) ( 1,533 ) ( 937 ) - 2,002 ( 3,651 ) ( 1,797 ) ( 26,748 ) ( 19,932 ) 6(9) ( 80,887 ) - 1,279 39,339 ( 269,191 ) ( 137,939 ) ( 681,154 ) ( 288,472 ) 6(28) 35,883 289,015 6(28) ( 256,369 ) ( 298,582 ) - ( 50,000 ) - 192,540 6(28) ( 154,424 ) ( 105,835 ) 6(28) 381 132 6(28) ( 2,663 ) ( 2,668 ) 6(27) ( 222,372 ) ( 148,248 ) ( 599,564 ) ( 123,646 ) ( 10,605 ) 65,508 ( 485,704 ) 400,982 1,036,374 635,392 $ 550,670 $ 1,036,374

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

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2023 AND 2022

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

1. History and Organisation

Y.C.C. PARTS MFG. CO., LTD. (the “Company”) was incorporated in March 1986 and has been listed on the Taiwan Stock Exchange since April 2012. The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in manufacturing and trading automobile parts, import and export as well as operating and reinvesting related businesses.

1. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

These consolidated financial statements were authorised for issuance by the Board of Directors on March 7, 2024.

3. Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS®”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC and became effective from 2023 are as follows:

New Standards,Interpretations andAmendments Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 12, ‘Deferred tax relating to assets and liabilities arising from a single transaction’ Amendments to IAS 12, ‘International tax reform - pillar two model rules’	Effective date by International Accounting StandardsBoard
	January 1, 2023 January 1, 2023 January 1, 2023 May 23, 2023

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC

but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC and will become effective from 2024 are as follows:

	Effective date by
	International Accounting
New Standards,Interpretations andAmendments	StandardsBoard
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’	January 1, 2024
Amendments to IAS 1, ‘Classification of liabilities as current	January 1, 2024
or non-current’
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024

The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

==> picture [486 x 48] intentionally omitted <==

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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New Standards,Interpretations andAmendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of	To be determined by
assets between an investor and its associate or joint venture’	International Accounting
	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

4. Summary of Material Accounting Policies

The principal accounting policies applied in the preparation of these consolidated financial statements

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

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(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

• A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

• (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

• (b) Financial assets at fair value through other comprehensive income.

• (c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

• (b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

• (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of

~18~

the consideration paid or received is recognised directly in equity.

• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

• B. Subsidiaries included in the consolidated financial statements:

Ownership(%)

Name of Investor	Name of Subsidiary	Main Business Activities	December31,2023	December31,2022 100.00% 100.00% 89.44% 99.83% 100.00%	Description
The Company The Company RISE BRIGHT RISE BRIGHT CHINA FIRST	RISE BRIGHT HOLDINGS LTD. (RISE BRIGHT) UNITED SKILLS CO., LTD. (UNITED SKILLS) CHINA FIRST HOLDINGS LTD. (CHINA FIRST) CHANG JIE TECHNOLOGY CO., LTD. (CHANG JIE) CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. (CHANGSHU FUTE)	Holding company and selling interior and exterior accessories of automobiles Manufacturing automobiles and their parts Holding company and selling interior and exterior accessories of automobiles Producing and selling interior and exterior accessories of automobiles Producing and selling interior and exterior accessories of automobiles	100.00% 100.00% 89.44% 99.83% 100.00%

~19~

==> picture [472 x 45] intentionally omitted <==

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

Ownership(%)
Name of Name of Main Business
Investor Subsidiary Activities December 31, 2023 December 31, 2022 Description
----- End of picture text -----

CHINA	LIAONING HETAI	Producing and	82.61%	82.61%
FIRST	AUTOMOTIVE PARTS	selling interior and
	CO.,LTD. (LIAONING	exterior
	HETAI)	accessories of
		automobiles
CHINA	CHANGSHU	Producing and	NA	100.00%	(Note)
FIRST	XINXIANG	selling interior and
	AUTOMOBILE PARTS	exterior
	CO., LTD.	accessories of
	(CHANGSHU	automobiles
	XINXIANG)

Note ： In order to simplify the organizational structure, CHANSHU FUTE AUTOMOTIVE TRIM CO., LTD. used November 30, 2023 as the merger base date to absorb and merge with CHANSHU XINXIANG AUTOMOBILE PARTS CO., LTD.

• C. Subsidiaries not included in the consolidated financial statements

• None.

• D. Adjustments for subsidiaries with different balance sheet dates

• None.

• E. Significant restrictions

None.

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

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Group’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet

~20~

date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

  - (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

• B. Translation of foreign operations

  • (a) The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

    • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

    • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

    • iii. All resulting exchange differences are recognised in other comprehensive income.

  • (b) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group still retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operations.

  • (c) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

• (5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

  • (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

  • (b) Assets held mainly for trading purposes;

  • (c) Assets that are expected to be realised within twelve months from the balance sheet date;

  • (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

~21~

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within twelve months from the balance sheet date;

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

• (6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

• (7) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

• (8) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

  • (a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and

  • (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value: The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive

~22~

payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(9) Financial assets at amortised cost

• A. Financial assets at amortised cost are those that meet all of the following criteria:

• (a) The objective of the Group’s business model is achieved by collecting contractual cash flows.

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.

• C. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

• (10) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

• (11) Impairment of financial assets

• For financial assets at amortised cost, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

• (12) Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

• －

• (13) Leasing arrangements (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(14) 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. It excludes borrowing costs. Except for the same types of inventory, 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.

(15) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the

~23~

construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. 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 must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures Machinery and equipment Molding equipment Transportation equipment Furniture equipment Other equipment

10 ~ 20 years 1 ~ 15 years 2 ~ 12 years 5 ~ 10 years 2 ~ 5 years 2 ~ 20 years

(16) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable.

• The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

• (a) The amount of the initial measurement of lease liability;

~24~

• (b) Any lease payments made at or before the commencement date;

• (c) Any initial direct costs incurred by the lessee.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

• D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognise the difference between remeasured lease liability in profit or loss.

• (17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Land use right is depreciated on a straight-line basis over its contract of 50 years signed with the government of Changshu City, Jiangsu Province, People's Republic of China; buildings and structures are depreciated on a straight-line basis over its estimated useful life of 20 years.

• (18) Intangible assets

• A. Computer software

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 3 to 5 years.

• B. Goodwill

Goodwill arises in a business combination accounted for by applying the acquisition method. Acquisition prices in the business combination are calculated based on the acquisition price. The excess of the acquisition price over the fair value of the identifiable assets acquired is recorded as goodwill.

(19) Impairment of non-financial assets

• A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

• B. The recoverable amounts of goodwill are evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed in the following years.

• C. 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

~25~

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 eqtity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

(20) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

• (21) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(22) Financial liabilities at fair value through profit or loss

• A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of held for trading. Derivatives are also categorised as financial liabilities held for trading unless they are designated as hedges.

• B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.

(23) Derecognition of financial liabilities

• A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

(24) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(25) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

• B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent

~26~

of a cash refund or a reduction in the future payments.

  - (b) Defined benefit plans

     - i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

     - ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

     - iii. Past service costs are recognised immediately in profit or loss.

• C. Employees’ compensation and directors’ and supervisors’ remuneration Employees’ compensation and directors’ and supervisors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

• (26) Income tax

• A . The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or

~27~

loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

• (27) Share capital

• A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

• B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

• (28) Dividends

• Cash dividends distributed to shareholders are recognized as liabilities in the financial report when the Board of Directors of the Company decides to distribute, and stock dividends distributed are recognized as stock dividends to be distributed in the financial report when the Company’s shareholders’ meeting decides to distribute, and transferred to the Company on the base date of new share issuance.

• (29) Revenue recognition

• Sales of goods

• A. The Group manufactures and sells automobiles parts products. Sales are recognised when control of the products has transferred. 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. Sales revenue was recognized based on the contract price net of sales discount. Goods are often sold with sales discounts and allowances based on future estimated sales volume. Accumulated experience is used to estimate and provide for the sales discounts and allowances, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. The sales usually are made with a credit term of 30 to 120 days after the delivery date. which is consistent with market practice. As the time interval between the transfer of

~28~

committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

• C. 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.

(30) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Company will comply with conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are recognised as non-current liabilities and are amortised to profit or loss over the estimated useful lives of the related assets using the straight-line method.

(31) Business combinations

• A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisitionrelated costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation at the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

• B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognised and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognised directly in profit or loss on the acquisition date.

(32) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group’s chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments.

~29~

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group’s accounting policies

• None.

(2) Critical accounting estimates and assumptions

• Evaluation of 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. As net realisable value of inventories is estimated at the estimated selling price in the ordinary course of business, less the estimated cost of completion and estimated selling expenses, the estimates are based on current market conditions and historical sales experience of similar products and the result of the estimates might be significantly influence by changes in market conditions.

As of December 31, 2023, the carrying amount of inventories was $357,322.

6. Details of Significant Accounts

(1) Cash and cash equivalents

estimates might be significantly influence by changes in market conditions. As of December 31, 2023, the carrying amount of inventories was $357,322. ails of Significant Accounts Cash and cash equivalents
December 31, 2023 Cash on hand 231 $ Checking accounts and demand deposits 312,716 Time deposits 237,723 Short-term notes and bills - Re-Purchase - 550,670 $	December31,2022
	331 $ 126,158 755,859 154,026
	1,036,374 $

• A. 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.

• B. The time deposits maturing over three months and time deposits that are restricted and are not held for the purpose of meeting short-term cash commitments were presented as ‘financial assets at amortised cost’. Refer to Note 6(3) for details.

• C. Information about the financial assets at amortised cost that were pledged to others as collaterals is provided in Notes 6(3) and 8.

~30~

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

Financial assets and liabilities at fair value through profit or loss-current
Items December31,2023 Financial assets mandatorily measured at fair value through profit or loss Listed stocks 104,823 $ Valuation adjustment 30,622 Total 135,445 $ Financial (liabilities) assets held for trading Foreign exchange swap contracts 2,952) ($ Total financial assets at fair value through profit or loss 135,445 $ Total financial liabilities at fair value through profit or loss 2,952) ($	December31,2022
	108,476 $ 18,582
	127,058 $
	2,565 $
	129,623 $
	- $

• A. The Group recognized financial assets and liabilities at fair value through profit or loss of $9,110 and $39,275 for the years ended December 31, 2023 and 2022, respectively.

• B. Explanations of the transactions and contract information in respect of derivative financial assets and liabilities that the Group does not adopt hedge accounting are as follows:

Derivative financial assets (liabilities) Foreign exchange swap contracts Derivative financial assets (liabilities) Foreign exchange swap contracts	December31,2023	December31,2023
	Contract amount (Notionalprincipal) Contractperiod USD 7,086 thousand 2023.12.07 ~ 2024.01.29 December31,2022	Contractperiod
	Contract amount (Notionalprincipal) USD 26,100 thousand	Contractperiod
		2022.12.05 ~ 2023.01.30

The Group entered into forward exchange contracts to manage exposures due to fluctuations of foreign exchange rates. Therefore, the Group did not apply hedge accounting treatment for these forward exchange contracts.

• C. The Group has no financial assets and liabilities at fair value through profit or loss pledged to others as collateral.

• D. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

(3) Financial assets at amortised cost

Items Current items: Time deposits maturing over three months Non-current items Restricted time deposits	December31,2023 125,890 $ 300 $	December31,2022
		- $
		300 $

~31~

• A. As at December 31, 2023 and 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group were $126,190 and $300, respectively.

• B. Information about the financial assets at amortised cost that were pledged to others as collateral is provided in Note 8.

• C. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2). The counterparties of the Group’s investments in certificates of deposit are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

(4) Notes and accounts receivable, net

Notes and accounts receivable, net
		December31,2023			December	31, 2022
Notes receivable		$	38,179		$	27,225
Less: Allowance for uncollectible accounts	(		208)	(		144)
		$	37,971		$	27,081
		December31,2023			December	31,2022
Accounts receivable		$	521,330		$	598,967
Less: Allowance for uncollectible accounts	(		22,141)	(		64,686)
		$	499,189		$	534,281
A. The aging analysis of notes receivable and	accounts		receivable are as follows:
			December		31,2023
			Notes receivable		Accounts	receivable
Not past due		$	38,179		$	337,528
1~60 days			-			118,126
61~120 days			-			42,614
121~180 days			-			10,464
181-240 days			-			3,380
Over 241 days			-			9,218
		$	38,179		$	521,330
			December		31,2022
			Notes receivable		Accounts	receivable
Not past due		$	27,225		$	481,130
1~60 days			-			52,368
61~120 days			-			10,909
121~180 days			-			4,968
181-240 days			-			3,226
Over 241 days			-			46,366
		$	27,225		$	598,967

• A. The aging analysis of notes receivable and accounts receivable are as follows:

As of December 31, 2023 and 2022, the ageing analysis was based on past due date.

B. As of December 31, 2023 and 2022, the balances of accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2022, the balances of accounts receivable and

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notes receivable from contracts with customers amounted to $489,954 and $55,217, respectively.

• C. As at December 31, 2023 and 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes receivable and accounts receivable were $37,971 and $27,081 as well as $499,189 and $534,281, respectively.

• D. Information relating to credit risk of notes receivable and accounts receivable is provided in Note 12(2).

(5) Inventories

12(2). Inventories
Materials and supplies Work in progress Semi-finished goods Finished goods Merchandise Total Materials and supplies Work in progress Semi-finished goods Finished goods Merchandise Total	Cost 154,153 $ 51,953 7,142 188,772 9,824 411,844 $	Allowance for valuation loss 30,736) ($ 1,700) ( 1,761) ( 20,325) ( - 54,522) ($ December31,2023 December 31, 2022	Bookvalue 123,417 $ 50,253 5,381 168,447 9,824 357,322 $
	Cost 107,144 $ 50,090 11,167 204,095 12,612 385,108 $		Book value
			73,863 $ 45,771 8,767 161,114 10,677
			300,192 $

The cost of inventories recognised as expense for the period :

			Years ended	December31,	December31,
			2023		2022
Cost of goods sold		$	1,387,024	$	1,472,571
Unallocated fixed overheads			1,129		325
Loss on scrapping inventory			8,496		5,983
(Gain on reversal of) loss on market value decline
and obsolete and slow-moving inventories	(		29,713)		13,872
Loss (gain) on physical inventory	(		5,194)	(	2,455)
		$	1,361,742	$	1,490,296

The Group reversed a previous inventory write-down because inventories with decline in market value were partially sold and scrapped by the Group for the year ended December 31, 2023.

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(6) Non-current financial assets at fair value through other comprehensive income

==> picture [478 x 91] intentionally omitted <==

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

Items December 31, 2023 December 31, 2022
Non-current items:
Equity instruments
Listed stocks $ 128,535 $ 101,787
Valuation adjustment ( 236) ( 26,540)
Total $ 128,299 $ 75,247
----- End of picture text -----

• A. The Group has elected to classify investments that are considered to be strategic investments or steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $128,299 and $75,247, as at December 31, 2023 and 2022, respectively.

• B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

==> picture [458 x 122] intentionally omitted <==

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

Year ended December 31,
2023 2022
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
$ 26,304 $ 7,008
comprehensive income
Dividend income recognised in profit or loss
held at end of period $ 3,262 $ 2,534
----- End of picture text -----

• C. As at December 31, 2023 and 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group were $128,299 and $75,247, respectively.

• D. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

(Remainder of page intentionally left blank)

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(7) Property, plant and equipment

Property, plant and equipment
									Year ended		December31,		2023
		Beginningbalance				Additions		Decreases				Transfers	Net exchange		differences			Endingbalance
Cost
Land		$	956,365		$	-		$	-		$	-		$	-		$	956,365
Buildings and structures			1,617,747			3,230			-			2,154	(		8,163)			1,614,968
Machinery and equipment			1,345,856			39,317	(		105,828)			86,282	(		9,934)			1,355,693
Molding equipment			2,136,767			74,029	(		25,336)			123,905	(		685)			2,308,680
Transportation equipment			35,281			-	(		538)			403	(		45)			35,101
Furniture equipment			3,485			126	(		572)			-	(		17)			3,022
Other equipment			189,283			34,217	(		7,773)			8,243	(		762)			223,208
Unfinished construction and
equipment under acceptance			328,357			52,005	(		493)	(		90,232)	(		1,251)			288,386
		$	6,613,141		$	202,924	($		140,540)		$	130,755	($		20,857)		$	6,785,423
Accumulated Depreciation
Buildings and structures	($		896,986)	($		72,561)		$	-	($		1,094)		$	2,462	($		968,179)
Machinery and equipment	(		860,554)	(		101,062)			82,879	(		29,868)			4,498	(		904,107)
Molding equipment	(		1,706,235)	(		163,248)			20,201	(		173)			394	(		1,849,061)
Transportation equipment	(		26,864)	(		2,605)			538			-			33	(		28,898)
Furniture equipment	(		2,825)	(		374)			571			-			12	(		2,616)
Other equipment	(		144,862)	(		22,801)			8,131			-			388	(		159,144)
	(		3,638,326)	($		362,651)		$	112,320	($		31,135)		$	7,787	(		3,912,005)
Total		$	2,974,815														$	2,873,418

A. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

B. Transfers for the period were from prepayments for business facilities.

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									Yearended	December31,	December31,	2022	2022	2022
		Beginning balance				Additions			Decreases		Transfers		Net exchange differences					Ending balance
Cost
Land		$	956,365		$	-		$	-	$		-		$	-		$	956,365
Buildings and structures			1,551,839			7,136	(		6,343)		59,079				6,036			1,617,747
Machinery and equipment			1,247,878			93,130	(		45,400)		43,475				6,773			1,345,856
Molding equipment			1,950,026			153,167	(		12,639)		45,554				659			2,136,767
Transportation equipment			32,421			6,051	(		3,220)			-			29			35,281
Furniture equipment			3,153			373	(		57)			-			16			3,485
Other equipment			181,171			8,436	(		9,065)		7,637				1,104			189,283
Unfinished construction and
equipment under acceptance			255,075			153,559			-	(	81,699)				1,422			328,357
		$	6,177,928		$	421,852	($		76,724)	$	74,046			$	16,039		$	6,613,141
Accumulated Depreciation
Buildings and structures	($		831,855)	($		69,602)		$	6,343	$		-	($		1,872)	($		896,986)
Machinery and equipment	(		803,344)	(		99,635)			44,877			-	(		2,452)	(		860,554)
Molding equipment	(		1,547,657)	(		170,953)			12,639			-	(		264)	(		1,706,235)
Transportation equipment	(		27,784)	(		2,282)			3,220			-	(		18)	(		26,864)
Furniture equipment	(		2,564)	(		309)			57			-	(		9)	(		2,825)
Other equipment	(		133,958)	(		18,711)			8,346			-	(		539)	(		144,862)
	(		3,347,162)	($		361,492)		$	75,482	$		-	($		5,154)	(		3,638,326)
Total		$	2,830,766														$	2,974,815

A. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

B. Transfers for the period were from prepayments for business facilities.

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• C.Amount of borrowing costs capitalized as part of property, plant and equipment and the range of the interest rates for such capitalization are as follows:

• Year ended December 31, 2023 ： None.

Amount capitalised Range of the interest rates for capitalisation

Year ended December 31, 2022 $ 1,193 0.95%

• (8) Lease transactions – lessee

• A. The Group leases various assets including land, structures and transportation equipment. Rental contracts are typically made for periods of 1 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes. Upon expiry of the lease, the terms of lease agreements do not give priority rights to renew the lease or purchase the property.

• B. Short-term leases with a lease term of 12 months or less comprise certain buildings. Low-value assets comprise transportation equipment.

• C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Transportation equipment (Business vehicles) Land Transportation equipment (Business vehicles)	December31,2023 December31,2022 Carrying amount Carrying amount 127,514 $ 134,276 $ 22,586 6,630 150,100 $ 140,906 $ YearendedDecember31,	December31,2022
		Carrying amount
		134,276 $ 6,630
		140,906 $
	2023 Depreciation charge 4,036 $ 2,678 6,714 $	2022
		Depreciation charge
		4,115 $ 2,268
		6,383 $

• D. For the years ended December 31, 2023 and 2022, the additions to right-of-use assets were $18,925 and $4,956, respectively.

• E. Information on profit or loss in relation to lease contracts are as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets	YearendedDecember31,	YearendedDecember31,
	2023 101 $ 368 $ 1,048 $	2022
		98 $
		622 $
		760 $

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• F. As of December 31, 2023 and 2022, the balances of lease liabilities -current and lease liabilities - non-current are as follows (shown as other current liabilities - others and other non-current liabilities):

liabilities):
Lease liabilities - current Lease liabilities - non-current	December31,2023 5,308 $ 17,355 $	December31,2022
		2,228 $
		4,465 $

For the years ended December 31, 2023 and 2022, the Group’s total cash outflow for leases were $4,180 and $4,149, respectively.

• G. Information about the right-of-use assets that were pledged to others as collateral is provided in Note 8.

(9) Investment property

Note 8. Investment property
Beginning balance Additions Decreases Transfers Net exchange differences Ending balance Cost Land - $ 80,887 $ - $ - $ - $ 80,887 $ Land use right 4,240 - - 22) ( 67) ( 4,151 Buildings and structures 17,411 - - 3,265) ( 1,902 16,048 21,651 $ 80,887 $ - $ 3,287) ($ 1,835 $ 101,086 $ Accumulated Depreciation Land use right 449) ($ 126) ($ - $ 4 $ 11 $ 560) ($ Buildings and structures 6,489) ( 817) ( - 1,094 127 6,085) ( 6,938) ( 943) ($ - $ 1,098 $ 138 $ 6,645) ( Total 14,713 $ 94,441 $ YearendedDecember31,2023 Beginning balance Additions Decreases Net exchange differences Ending balance Cost Land use right 4,553 $ - $ - $ 313) ($ 4,240 $ Buildings and structures 16,122 - - 1,289 17,411 20,675 $ - $ - $ 976 $ 21,651 $ Accumulated Depreciation Land use right 697) ($ 132) ($ - $ 380 $ 449) ($ Buildings and structures 4,501) ( 984) ( - 1,004) ( 6,489) ( 5,198) ( 1,116) ($ - $ 624) ($ 6,938) ( Total 15,477 $ 14,713 $ YearendedDecember31,2022					YearendedDecember31,2023										Ending balance
	Beginning balance				Additions
	$		- 4,240 17,411 21,651 449) 6,489) 6,938) 14,713	$ $ ($ ( ($	$
	$				$							$
												$
												$
	$
			Beginning balance				Additions			Decreases	Net exchange differences
						- $ - - $ 132) ($ 984) ( 1,116) ($				- $ - - $ - $ - - $	313) ($ 1,289 976 $ 380 $ 1,004) ( 624) ($

~38~

• A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

property are shown below:
	Year ended	December 31,
	2023	2022
Rental income from investment property	3,667 $	3,513 $
Direct operating expenses arising from the
investment property that generated rental income
during the period	943 $	1,116 $

• B. The fair value of the investment property held by the Group, which is the land , as at December 31, 2023 was $92,468. The land price is obtained from the actual value of real estate transactions of the Ministry of Interior, the fair value is classified as a level 2 fair value. The fair values of the investment properties held by the Group, which is the land use right and buildings and structures, as at December 31, 2023 and 2022 were $19,752 and $21,002, respectively. The valuations were made using the carrying amount of land use rights upon the expiry of the lease and the discounted inflow of future rental income for 3 years, using the borrowing interest rate of 4.35%, after taking into consideration of future economic growth and results of inflation. The fair value is classified as a level 3 fair value.

• C. CHANGSHU FUTE subleases its 36.5-year land use right in Changshu city, Jiangsu Province, China to DAQIAOJIXIE JIANGSU YOUXIANGONGSI (DAQIAOJIXIE) under noncancellable operating lease agreements. The lease term is 3 years, and rental is adjusted to reflect market rental rates when the lessee exercises extension options. The lessee is not granted the right of priority to buy the investment property when the lease expires.

• D. The Group acquired land located in the Yutengping section of Sanyi Township, Miaoli County in September 2023, and it is expected to be used for sustainable development.

• E. The future aggregate minimum lease payments receivable are as follows:

Not later than one year Later than one year but not later than five years	December31,2023 3,784 $ - 3,784 $	December31,2022
		3,689 $ 3,873
		7,562 $

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

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(10) Other non-current assets

Prepayments for business facilities and construction Guarantee deposits paid Others	December31,2023 December31,2022 298,832 $ 129,261 $ 7,743 4,092 2,860 4,139 309,435 $ 137,492 $

(11) Short-term borrowings

==> picture [466 x 53] intentionally omitted <==

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

Type of borrowings December 31, 2023 December 31, 2022
Secured borrowings $ 35,786 $ 261,721
Interest rate range 4.35% 4.35%
----- End of picture text -----

Type of borrowings Secured borrowings Interest rate range	December31,2023 35,786 $ 4.35%	December31,2022 261,721 $ 4.35%
Other payables Machinery and equipment payable Salaries and bonus payable Employees’ compensation payable Transportation fee payable Directors’ remuneration payable Securities expense payable Others	December31,2023 56,453 $ 53,647 8,425 5,745 5,841 - 52,146 182,257 $	December31,2022
		65,309 $ 45,061 7,360 7,011 5,661 1,383 65,316
		197,101 $

(12) Other payables

(Remainder of page intentionally left blank)

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- (13) Long term borrowings

Long-term borrowings
Type ofborrowings	Borrowing period	Repayment term		December31,2023
Long-term bank
borrowings
Unsecured borrowings	From December 26,	Principal and interest are		$	36,000
	2019 to December	repayable monthly after a 3-
	15, 2026	year grace period;interest is
		repayable monthly;principal is
		repayable monthly in 48
		installments
Secured borrowings	From January 6,	Principal and interest are			206,597
	2016 to January 6,	repayable monthly after a 3-
	2031	year grace period
Secured borrowings	From December 26,	Principal and interest are			276,000
	2019 to December	repayable monthly after a 3-
	15, 2026	year grace period;interest is
		repayable monthly;principal is
		repayable monthly in 48
		installments
Secured borrowings	From September 19,	The loan is disbursed within
	2019 to December	three years after contract
	15, 2029	signed; interest is repayable
		monthly; principal is repayable
		monthly in 51 installments
		with a 3-year grace period on
		principal only			63,238
				$	581,835
Less: Current portion			(		133,167)
Less: Discount on government grants			(		1,822)
				$	446,846
Interest rate range					1.25%~1.78%

~41~

Type ofborrowings	Borrowing period	Repayment term	December31,2022	December31,2022	December31,2022
Long-term bank
borrowings
Unsecured borrowings	From November	The loan is fully disbursed		$	13,833
	26, 2018 to	once the contract is signed;
	November 26,	interest is repayable monthly;
	2023	principal is repayable
		monthly in 48 installments
		with 1-year grace period on
		principal only
Unsecured borrowings	From August 31,	Starting from August 15,			6,662
	2016 to February	2019, principal is repayable
	15, 2023	quarterly; interest is
		repayable monthly
Unsecured borrowings	From December	The loan is disbursed within			48,000
	26, 2019 to	three years after contract is
	December 26,	signed; interest is repayable
	2026	monthly; principal is
		repayable monthly in 48
		installments with a 3-year
		grace period on principal
		only
Secured borrowings	From January 6,	Principal and interest are			235,764
	2016 to January 6,	repayable monthly after a 3-
	2031	year grace period
Secured borrowings	From December	Interest is repayable monthly;			368,000
	26, 2019 to	principal is repayable
	December 15,	monthly in 48 installments
	2026	with 3-year grace period on
		principal only
Secured borrowings	From December	The loan is disbursed within
	26, 2019 to	three years after contract
	December 15,	signed; interest is repayable
	2029	monthly; principal is
		repayable monthly in 51
		installments with a 3-year
		grace period on principal
		only			64,000
			$		736,259
Less: Current portion			(		169,662)
Less: Discount on government grants			(		227)
			$		566,370
Interest rate range					1.13%~1.66%

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(14) Government grants

As of December 31, 2023, the Group obtained government concessional loans under the “Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan” from the Bank of Taiwan in the amounts of $432,000 and $48,000, respectively, for supporting capital expenditure and working capital. Such loans will mature in December 2029 and December 2026, respectively. The fair values for the loans were $424,935 and $47,217, respectively which were calculated at a market rate of 1.25% and 1.375%. The differences between the acquired amount obtained and the fair value were $7,065 and $723, respectively, which were deemed as a low interest loan subsidy from government and recognized in deferred revenue (shown as other non-current liabilities). The deferred revenue is reclassified to other income on a straight-line basis over their estimated useful life during the period of paying interest. The realized deferred government grants revenue were $1,410 and $1,099, respectively, for the years ended December 31, 2023 and 2022.

(15) Pensions

• A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, 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 a mount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

• (b) The amounts recognised in the balance sheet are as follows:

		December	31,2023		December	31,2022
Present value of defined benefit obligations		$	16,431		$	20,037
Fair value of plan assets	(		14,658)	(		14,153)
Net defined benefit liability		$	1,773		$	5,884

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(c) Movements in net defined benefit liabilities are as follows:

					2023
			Present value
			of defined		Fair value of			Net defined
		benefit obligations			planassets		benefitliability
Balance at January 1		$	20,037	($	14,153)		$	5,884
Interest expense (income)			225	(	161)			64
			20,262	(	14,314)			5,948
Remeasurements:
Return on plan assets (excluding
amounts included in interest
income or expense)			-	(	141)	(		141)
Change in financial assumptions			-		-			-
Experience adjustments	(		3,831)		-	(		3,831)
	(		3,831)	(	141)	(		3,972)
Pension fund contribution			-	(	203)	(		203)
Balance at December 31		$	16,431	($	14,658)		$	1,773
					2022
			Present value
			of defined		Fair value of			Net defined
		benefit obligations			planassets		benefitliability
Balance at January 1		$	18,546	($	12,865)		$	5,681
Interest expense (income)			93	(	65)			28
			18,639	(	12,930)			5,709
Remeasurements:
Return on plan assets (excluding
amounts included in interest
income or expense)			-	(	1,017)	(		1,017)
Change in financial assumptions	(		331)		-	(		331)
Experience adjustments			1,729		-			1,729
			1,398	(	1,017)			381
Pension fund contribution			-	(	206)	(		206)
Balance at December 31		$	20,037	($	14,153)		$	5,884

(d) The Bank of Taiwan was commissioned to manage the fund of the Company’s defined benefit pension plan assets 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-thecounter, or private placement equity securities, investment in domestic or foreign real estate

~44~

securitisation products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that Fund and therefore, the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2023 and 2022 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e) The principal actuarial assumptions used were as follows:

The principal actuarial assumptions used were	as follows:
Discount rate Future salary increases	December31,2023 1.13% 2.50%	December31,2022
		1.13%
		2.50%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table for the years ended December 31, 2023 and 2022, respectively.

Sensitivity analysis of the effect on present value of defined benefit obligation due from the changes of main actuarial assumptions was as follows:

==> picture [447 x 158] intentionally omitted <==

The sensitivity analysis above is based on other condition that are unchanged but only one assumption is changed. In practice, more than one assumption may change all at once. The method utilised in sensitivity analysis is the same as the method utilised in calculating net pension liability on the balance sheet.

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

(f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2024 amount to $ 213.

(g) As of December 31, 2023, the weighted average duration of that retirement plan is 3.7 years.

~45~

• B. (a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes 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.

  • (b) The Company’s mainland 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. The contribution percentage for the years ended December 31, 2023 and 2022 were both 16%. Other than the monthly contributions, the Group has no further obligations.

  • (c) For the aforementioned pension plan, the Group recognised pension costs of $14,063 and $15,652 for the years ended December 31, 2023 and 2022, respectively.

• (16) Share capital

• A. As of December 31, 2023, the Company’s authorized capital was $1,000,000, constituting 100,000 thousand shares and the paid-in capital was $741,239 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

• B. The Company reacquired treasury shares in 2018. After a comprehensive consideration of the stock price and as the treasury shares were not reissued to the employees within three years from the reacquisition date, the treasury shares reacquired to be reissued to employees were retired and registered pursuant to the Article 28-2 of Securities and Exchange Act. The capital reduction amounted to $150 consisting of 15 thousand shares retired. The paid-in capital before and after the capital reduction was $741,389 and $741,239, respectively.

• C. Movements in the number of the Company’s ordinary shares outstanding are as follows:

2023 2022 Number of thousand shares Number of thousand shares At January 1 and December 31 $ 74,124 $ 74,124

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(17) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. However, capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

December 31, 2023 December 31, 2022

Used to offset deficits, distributed as cash dividends or transferred to share capital (Note 1) Additional paid-in capital in excess of par-ordinary share $ 1,163,298 $ 1,163,298 Difference between consideration and carrying amount of subsidiaries acquired $ 2,125 $ 2,125 Used to offset accumulated deficits only (Note 2) Changes in ownership interests in subsidiaries $ 27,926 $ 27,926

• Note 1: Such capital surplus can be used in offsetting deficit and distributed as cash dividends or transferred to capital provided that the Company has no deficit. However, the amount that can be transferred to capital is limited to a certain percentage of paid-in capital every year.

• Note 2: Such capital surplus arises from the effect of changes in ownership interests in subsidiaries under equity transactions when there is no actual acquisition or disposal of subsidiaries by the Company, or from changes in capital surplus of subsidiaries.

(18) Retained earnings

• A. According to the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset against prior years’ operating losses and then be distributed as follows: 10% as legal reserve, and appropriate or reverse for special reserve until the legal reserve equals the Company’s paid-in capital. The remaining earnings, if any, may be appropriated along with the accumulated unappropriated earnings according to a resolution proposed by the Board of Directors and resolved at the shareholders’ meeting.

• B. The Board of Directors of the Company may distribute all or part of dividends and bonuses, legal reserve and capital reserve in the form of cash, with the presence of more than two-thirds of the directors and the resolution of more than half of the directors present, and reports it to the shareholders’ meeting.

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• C. The Company's dividend policy is to distribute dividends to shareholders in line with current and future development plans, considering the investment environment, capital needs, and domestic and foreign competition conditions, and taking into account shareholders' interests and other factors. Shareholder dividends shall not be less than 40% of the distributable surplus of the current year, of which cash dividends should be more than 20% of the total dividends for shareholders, and the Board of Directors will submit it to the shareholders' meeting for resolution.

• D. 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 distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• E. (a) In accordance with Order No. Financial-Supervisory-Securities-Corporate-1090150022, dated March 31, 2021, 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.

• (b) The amounts previously set aside by the Company as special reserve in accordance with Order No. Financial-Supervisory-Securities-Corporate-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 appropriations of 2022 earnings had been resolved at the Board of Directors’ meeting on May 31, 2023. The appropriations of 2021 earnings had been resolved at the shareholders’ meeting on May 27, 2022. Details are summarized below:

Dividend per Dividend per share share Amount (indollars) Amount (indollars) Legal reserve appropriated 40,788 $ 13,637 $ Special reserve (reversed) appropriated 10,899) ( 14,829 Cash dividend 222,372 3.00 $ 148,248 2.00 $ YearendedDecember31 2022 2021	YearendedDecember31	YearendedDecember31	YearendedDecember31
		2021
		Amount 13,637 $ 14,829 148,248	Dividend per share (indollars)
			2.00 $

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• G. The appropriations of 2023 earnings have been approved by the Board of Directors during their meetings on March 7, 2024. Details are summarised below:

			Yearended	December31	December31
			2023
				Dividend per
					share
			Amount		(indollars)
Legal reserve appropriated		$	43,884
Special reserve (reversed) appropriated	(		15,099)
Cash dividend			222,372	$	3.00

• H. Refer to Note 6 (24) for further information relating to employees’ compensation and directors’ remuneration.

(19) Operating revenue

• A. Disaggregation of revenue from contracts with customers

The Group derives revenue primarily from the transfer of goods at a point in time in the following products:

following products:
Auto parts Others Auto parts Others		Year ended December 31, 2023
		Domestic operating entities			Total
					2,038,690 $ 12,519
					2,051,209 $
		Domestic operating entities 1,238,624 $ 7,732 1,246,356 $		Overseas operating entities 762,272 $ 12,130 774,402 $	Total
					2,000,896 $ 19,862
					2,020,758 $

B. Contract liabilities

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

December 31, 2023 December 31, 2022 January 1, 2022 Contract liabilities: Contract liabilities - advance sales receipts $ 22,267 $ 14,852 $ 17,912

For the years ended December 31, 2023 and 2022, revenue recognized that were included in the contract liability balance at the beginning of the period amounted to $11,920 and $6,503, respectively.

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(20) Other income

Other income
		Yearended	December	31,
		2023		2022
Rent income	$	8,665	$	8,139
Dividend income		7,132		4,958
Revenue for Government Grants (Note)		3,968		-
Other income		32,310		20,361
	$	52,075	$	33,458

Note: It pertains to government grants for obtaining the policy of accelerating industrial development from the Financial Services Bureau in Anqing.

(21) Other gains and losses

Other gains and losses
			YearendedDecember		31,
			2023		2022
Gains on disposal of property, plant and equipment		$	4,283	$	3,798
Foreign exchange gains			60,398		306,502
Gains on financial assets and liabilities at fair value through profit or loss			9,110		39,275
Other losses	(		844)	(	28,236)
		$	72,947	$	321,339

(22) Finance costs

Finance costs
Expenses by nature Interest expense Less: Capitalisation of qualifying assets Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Depreciation charges on investment property Amortisation	2023 2022 17,269 $ 27,520 $ - 1,193) ( 17,269 $ 26,327 $ Year ended December31, 2023 2022 313,858 $ 305,402 $ 362,651 361,492 6,714 6,383 943 1,116 6,291 7,087 690,457 $ 681,480 $ YearendedDecember31,
	2023 313,858 $ 362,651 6,714 943 6,291 690,457 $

(23) Expenses by nature

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(24) Employee benefit expense

Employee benefit expense
		Yearended	December	31,
		2023		2022
Wages and salaries	$	263,003	$	252,108
Labour and health insurance fees		20,871		19,029
Pension costs		14,276		15,858
Other personnel expenses		15,708		18,407
	$	313,858	$	305,402

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall appropriate 1%~3% for employees’ compensation and no higher than 3% for directors’ remuneration. If the Company has accumulated deficit, earnings should be reserved to cover losses and then be appropriated as employees’ compensation and directors’ remuneration based on the abovementioned ratios.

• B. For the years ended December 31, 2023 and 2022, the accrued employees’ compensation and directors’ remuneration were as follows:

directors’ remuneration were as follows:
Employees’ compensation Directors’ remuneration	Year ended December 31,
	2023 8,425 $ 5,841 14,266 $	2022
		7,360 $ 5,661
		13,021 $

For the years ended December 31, 2023 and 2022, the employees’ compensation and directors’ remuneration were estimated and accrued based on 1.5% and 1.04% as well as 1.0% and 1.02%, respectively, of distributable profit of current year as of the end of reporting period.

• C. Employees’ compensation and directors’ remuneration of 2022 as resolved by the Board of Directors were in agreement with those amounts recognized in the 2022 financial statements.

• D. Information about employees’ compensation and directors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

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(25) Income tax

A. Income tax expense

• (a)Components of income tax expense

e tax ome tax expense Components of income tax expense
			YearendedDecember		31,
			2023		2022
Current tax:
Current tax on profits for the period		$	127,582	$	125,431
Prior year income tax (over) under
estimation	(		13,026)		6
Total income tax for the current period			114,556		125,437
Deferred income tax balance：
Origination and reversal of
temporary differences	(		2,811)		793
Total deferred income tax	(		2,811)		793
Income tax expense		$	111,745	$	126,230

• (b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

follows:
		Years ended	December 31,
		2023		2022
Remeasurement of defined benefit obligations	($	794)	$	76

• B. Reconciliation between income tax expense and accounting profit

			Years ended	December31,	December31,
			2023		2022
Tax calculated based on profit before tax
and statutory tax rate		$	74,300	$	79,244
Expenses disallowed by tax regulation			94		4,431
Tax exempt income by tax regulation	(		4,325)	(	2,097)
Temporary differences not recognized
as deferred tax assets	(		5,256)		18,073
Taxable loss not recognised as deferred
tax assets			52,821		26,573
Change in assessment of realisation of
deferred tax assets			7,137		-
Prior year income tax overestimation	(		13,026)		6
Income tax expense		$	111,745	$	126,230

• C. Details of the Group’s applicable tax rate are as follows:

Entity Tax application and applicable tax rate Taiwan parent company and Taiwan subsidiaries Applicable tax rate:20% Other China subsidiaries Applicable tax rate:25%

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• D. Amounts of deferred tax assets or liabilities as a result of temporary differences, tax losses and investment tax credits are as follows:

investment tax credits are as follows:	as follows:
Recognised Recognised in other Net in profit comprehensive exchange January1 or loss income differences Deferred tax assets: Allowance for inventory valuation and obsolescence losses 12,410 $ 1,119) ($ - $ 132) ($ Allowance for bad debts 7,213 3,592) ( - 72) ( Unrealised exchange loss 3,696 1,778 - - Losses on valuation of financial instruments at fair value through profit or loss - 590 - - Defined benefit plan 1,551 28) ( 794) ( - Share of profit (loss) of subsidiaries accounted for under the equity method 80,563 - - - Others 2,534 4,653 - 55) ( 107,967 $ 2,282 $ 794) ($ 259) ($ Deferred tax liabilities: Gains on valuation of financial instruments at fair value through profit or loss 513) ($ 513 $ - $ - $ 107,454 $ 2,795 $ 794) ($ 259) ($ 2023			2023
					December31
					11,159 $ 3,549 5,474 590 729 80,563 7,132
					109,196 $
					- $
					109,196 $

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Deferred tax assets: Allowance for inventory valuation and obsolescence losses Allowance for bad debts Unrealised exchange loss Losses on valuation of financial instruments at fair value through profit or loss Defined benefit plan Share of profit (loss) of subsidiaries accounted for under the equity method Others Deferred tax liabilities: Gains on valuation of financial instruments at fair value through profit or loss			2022
	Recognised in profit January1 or loss 9,876 $ 2,336 $ 6,484 560 4,284 588) ( 2,422 2,422) ( 1,325 150 80,563 - 3,217 530) ( 108,171 $ 494) ($ - $ 513) ($ 108,171 $ 1,007) ($

~54~

• E. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

follows:
Year incurred 2018 2019 2020 2021 2022 2023	Unused Amountfiled/assessed amount Assessed 70,910 $ Assessed 35,075 Assessed 21,699 Assessed 59,507 Assessed 106,559 Amount estimated to file 211,356 505,106 $ December31,2023	Unrecognised deferred tax assets 70,910 $ 35,075 21,699 59,507 106,559 211,356 505,106 $	Expiry year
			2028 2029 2030 2031 2032 2033

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

December 31, 2022
Unrecognised
Year Unused deferred tax Expiry
incurred Amount filed/assessed amount assets year
2018 Assessed $ 70,910 $ 70,910 2028
2019 Assessed 35,075 35,075 2029
2020 Assessed 21,699 21,699 2030
2021 Assessed 59,507 59,507 2031
2022 Amount estimated to file 106,559 106,559 2032
$ 293,750 $ 293,750
----- End of picture text -----

• F. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows:

are as follows:
Deductible temporary differences	December31,2023 390,013 $	December31,2022
		330,629 $

• G. The Company’s and domestic subsidiaries’ income tax returns through 2021 have been assessed and approved by the Tax Authority.

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• H. As of December 31, 2023, relevant information of current income tax liabilities and non-current income tax liabilities is as follows:

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

December 31, 2023 December 31, 2022
Income tax payable Income tax payable
Current Non-current Current Non-current
(within one year) (over one year) (within one year) (over one year)
2020 $ - $ - $ 21,025 $ 10,513
2021 11,999 3,789 11,999 17,998
2022 37,055 52,494 110,840 -
2023 139,106 - - -
$ 188,160 $ 56,283 $ 143,864 $ 28,511
----- End of picture text -----

• (a) The Company incurred an income tax of $111,164 from the 2022 profit-seeking enterprise income tax (including the filing of unappropriated retained earnings of 2021), and applied for the installment payments in accordance with Article 26 of the Tax Collection Act and Decree No.11004575510 issued by the Ministry of Finance, R.O.C. on June 3, 2021.

• (b) The Company incurred an income tax of $35,997 from the 2021 profit-seeking enterprise income tax (including the filing of unappropriated retained earnings of 2020), and applied for the installment payments in accordance with Article 26 of the Tax Collection Act and Decree No.11004575510 issued by the Ministry of Finance, R.O.C. on June 3, 2021.

• (c) The Company incurred an income tax of $63,075 from the 2020 profit-seeking enterprise income tax (including the filing of unappropriated retained earnings of 2019), and applied for the installment payments in accordance with Article 26 of the Tax Collection Act and Decree No.10904533690 issued by the Ministry of Finance, R.O.C. on March 19, 2020. (Remainder of page intentionally left blank)

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(26) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares -Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares -Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	YearendedDecember31,	2023
	Weighted average number of ordinary shares outstanding Amount aftertax (shareinthousands) 435,661 $ 74,124 435,661 74,124 - 162 435,661 $ 74,286 YearendedDecember31,	Earnings per share (indollars)
		5.88 $
		5.86 $
		2022
	Weighted average number of ordinary shares outstanding Amount aftertax (shareinthousands) 408,560 $ 74,124 408,560 74,124 - 212 408,560 $ 74,336	Earnings per share (indollars)
		5.51 $
		5.50 $

The number of weighted-average outstanding shares is included for assumed conversion of all dilutive potential ordinary shares at the calculation of diluted earnings per share, based on the assumption that employees’ compensation will all be distributed in the form of shares.

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(27) Supplemental cash flow information

A. Investing activities with partial cash payments:

Supplemental cash flow information A. Investing activities with partial cash payments:
		Year ended December31,2023
Purchase of property, plant and equipment		$	202,924
Add:Opening balance of notes payable			102,954
Opening balance of payable on equipment and construction			65,309
Less:Ending balance of notes payable	(		105,428)
Ending balance of payable on equipment and
construction	(		56,453)
Cash paid during the period		$	209,306
		YearendedDecember31,2022
Purchase of property, plant and equipment		$	421,852
Add:Opening balance of notes payable			-
Opening balance of payable on equipment and construction			48,234
Less:Ending balance of notes payable	(		102,954)
Ending balance of payable on equipment and
construction	(		65,309)
Cash paid during the period		$	365,716
B. Investing activities with partial cash payments :
		YearendedDecember31,2023
Purchase of financial assets at fair value through profit or loss		$	10,880
Add: Opening balance of securities payables
(shown as other payables)			1,383
Cash paid during the period		$	12,263
		Year ended December 31, 2022
Purchase of financial assets at fair value through profit or loss		$	100,050
Add: Opening balance of securities payables
(shown as other payables)			3,573
Less: Ending balance of securities payables
(shown as other payables)	(		1,383)
Cash paid during the period		$	102,240

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(28) Changes in liabilities from financing activities

					Long-term
					borrowings				Guarantee		Lease liabilities							Liabilities from
		Short-term			(including				deposits		(including non-				Dividends				financing
		borrowings		current portion)					received			current)			payable			activities gross
At January 1, 2023	$	261,721		$	736,032		$		821	$		6,693		$		-	$		1,005,267
Changes in cash flow from financing activities	(	220,486)		(	154,424)				381	(		2,663)		(	222,372)		(		599,564)
Changes in other non-cash items			-			-			-			18,633			222,372				241,005
Impact of changes in foreign
exchange rate	(	5,449)		(	1,596)		(		26)				-			-	(			7,071)
At December 31, 2023	$	35,786		$	580,012		$		1,176	$		22,663		$		-	$		639,637
									Long-term
								borrowings			Guarantee		Lease		liabilities					Liabilities from
		Short-term	Short-term notes						(including			deposits	(including non-			Dividends				financing
	borrowings		and		bills payable	current portion)						received		current)		payable				activities gross
At January 1, 2022	$	264,320	$		50,000	$			646,025	$		929	$		2,337	$			-	963,611 $
Changes in cash flow from financing activities	(	9,567)	(		50,000)				86,705	(		132)	(		2,668)	(	148,248)			123,910) (
Changes in other non-cash items		2,647			-				3,302			-			7,024		148,248			161,221
Impact of changes in foreign
exchange rate		4,321			-				-			24			-				-	4,345
At December 31, 2022	$	261,721	$		-	$			736,032	$		821	$		6,693	$			-	1,005,267 $

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7. Related Party Transactions

Key management compensation

Salaries and other short-term employee benefits Post-employment benefits	2023 2022 25,730 $ 28,614 $ 56 24 25,786 $ 28,638 $ YearendedDecember31,

8. Pledged Assets

The Group’s assets pledged as collateral are as follows:

Pledged Assets The Group’s assets pledged as	collateral are as follows:
Pledged asset Property, plant and equipment Right-of-use assets Investment property Financial assets at amortised cost - non-current Total	December31,2023 December31,2022 Purpose 1,151,385 $ 1,237,237 $ Short-term borrowings and long-term borrowings 73,839 77,852 Short-term borrowings 13,554 14,713 Short-term borrowings 300 300 Natural gas for manufacturing 1,239,078 $ 1,330,102 $ Bookvalue
	December31,2023 1,151,385 $ 73,839 13,554 300 1,239,078 $

9. Significant Contingent Liabilities and Unrecognized Contract Commitments

(1) Contingencies

None.

(2) Commitments

As of December 31, 2023 and 2022, the Group’s capital expenditure contracted but not yet incurred in respect of machinery and equipment as well as construction of plants were $286,885 and $517,281, respectively.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

None.

12. Others

(1) Capital management

• A. The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to maximize returns for shareholders and to optimize the balance of liabilities and equity.

• B. The Group’s capital structure comprises net liabilities (borrowings net of cash and cash equivalents) and equity (common shares, capital surplus, retained earnings, other equity interest and non-controlling interests).

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• C. The Group has no obligation to comply with any external capital requirements.

• D. The key management of the Group monitors the capital structure every year, including capital costs and related risks, and the Group may adjust capital structure by paying dividends to shareholders, issuing new shares, buying shares back and issuing new bonds or repaying old bonds based on the advices from the management.

(2) Financial instruments

• A. Financial instruments by category

ncial instruments Financial instruments by category
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 Designation of equity instruments Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable Other receivables Guarantee deposits paid Financial liabilities Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable Other payables Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities (including current portion)		December31,2023 135,445 $ 128,299 $ 550,670 $ 126,190 37,971 499,189 10,072 7,743 1,231,835 $ December31,2023 35,786 $ 178,448 101,114 182,257 580,013 1,176 1,078,794 $ 22,663 $	December31,2022
			129,623 $
			75,247 $
			1,036,374 $ 300 27,081 534,281 10,366 4,092
			1,612,494 $
			December31,2022
			261,721 $ 179,968 141,453 197,101 736,032 821
			1,517,096 $
			6,693 $

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• B. Financial risk management policies

• (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk. To minimise any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange forward contracts are used to hedge certain exchange rate risk. Derivatives are used for hedging exchange rate risk arising from export proceeds by using forward foreign exchange contracts.

• (b) The Company treasury performs the financial risk management for each business unit. The treasury operates in domestic and international financial markets through planning and coordination, as well as monitors and manages the financial risks related to the Group’s operation based on internal risk reports about exposure to risk with the analysis of the extent and width of risk.

  • The Board of Directors of the Group supervises the compliance by the management with financial risk policy and procedure, and reviews the appropriateness of structure of financial risk related to the Company. The internal auditors act as supervisors to assist the Board of Directors of the Company by conducting regular and irregular reviews, and report the results to the Board of Directors.

• (c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2).

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the United States Dollar and Chinese Renminbi. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.

• ii. The companies within the Group are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable United States Dollar and Chinese Renminbi expenditures. Entities of the Group use natural hedge to decrease the risk exposure in the foreign currency through the Group treasury.

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• iii. The Group’s businesses involve some non-functional currency operations (the Company’s functional currency: New Taiwan Dollars; certain subsidiaries’ functional currency: New Taiwan Dollars, United States Dollar and Chinese Renminbi). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations and analysis of foreign currency market risk arising from significant foreign exchange variation is as follows:

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD EUR : NTD USD : RMB RMB : NTD RMB : USD Financial liabilities Monetary items RMB : USD (Foreign currency: functional currency) Financial assets Monetary items USD : NTD USD : RMB Financial liabilities Monetary items USD : NTD RMB : USD			December31,2023	Book value (NTD)
		Foreign currency amount (Inthousands) 28,521 $ 123 72 98,232 1,335 3,496 $	Exchangerate 30.71 33.98 7.10 4.33 0.14 0.14 December 31, 2022
				875,737 $ 4,180 2,213 425,050 5,772 15,114 $ Book value (NTD)
		Foreign currency amount (In thousands) 36,581 $ 287 156 $ 3,589	Exchange rate 30.71 6.96 30.71 0.14
				1,123,403 $ 8,807 4,791 $ 15,519

iv. The total exchange (loss) gain, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2023 and 2022, amounted to $60,398 and $306,502, respectively.

• v. Analysis of foreign currency market risk arising from significant foreign exchange variation:

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Year ended December 31, 2023

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD EUR : NTD USD : RMB RMB : NTD RMB : USD Financial liabilities Monetary items RMB : USD (Foreign currency: functional currency) Financial assets Monetary items USD : NTD USD : RMB Financial liabilities Monetary items USD : NTD RMB : USD	Degree of Effect on other comprehensive variation Effect onprofit or loss income 1% 8,757 $ - $ 1% 42 - 1% 22 - 1% 4,251 - 1% 58 - 1% 151 $ - $ Degree of Effect on other comprehensive variation Effect onprofit or loss income 1% 11,234 $ - $ 1% 88 - 1% 48 $ - $ 1% 155 - Sensitivity analysis YearendedDecember31,2022 Sensitivity analysis	Effect on other comprehensive income
		- $ - - $ -

Price risk

• i. The Group’s equity securities, which are exposed to price risk, are the held financial assets (liabilities) 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.

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• ii. The Group’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, per-tax profit for the years ended December 31, 2023 and 2022 would have increased/decreased by $1,354 and $1,271, respectively, as a result of losses/gains on equity securities classified as at fair value through profit or loss. Other components of equity would have decreased/increased by $1,283 and $752 respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

• Cash flow and fair value interest rate risk

• i. The Group’s main interest rate risk arises from short-term and long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During the years ended December 31, 2023 and 2022, the Group’s borrowings at variable rate were mainly denominated in New Taiwan Dollars and United States Dollars.

• ii. If the borrowing interest rate had increased/decreased by 0.1% with all other variables held constant, profit before tax for the years ended December 31, 2023 and 2022 would have increased/decreased by $617 and $998, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of equity instruments stated at amortized cost, at fair value through profit or loss and at fair value through other comprehensive income.

• ii. For banks and financial institutions, after reviewing deposit ratings, only the counterparties with good credit quality are accepted. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing 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. The utilization of credit limits is regularly monitored.

• iii.The Group adopts credit risk management procedure 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 3 months based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• iv.In line with credit risk management procedure, the default occurs when the contract payments are past due over 180 days.

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• v. Impairment loss is assessed and recognized when there is objective evidence that individual receivables cannot be recovered. The Group used historical and timely information to establish loss rate of remaining receivables and used the forecast ability to assess the default possibility of accounts receivable. As of December 31, 2023 and 2022, accumulated loss allowance provided for individually assessed receivables amounted to $5,406 and $29,383, respectively. The Group used the forecast ability to adjust historical and timely information to assess the default possibility of remaining receivables (including notes receivables). On December 31, 2023 and 2022, the provision matrix is as follows:

December 31, 2023 Expected loss rate Total book value Loss allowance December 31, 2022 Expected loss rate Total book value Loss allowance	Not past due	1 to 60 days	61 to 120 days	121 to 180 days	181 to 240 days	Over 241 days	Total
	1%~10% 375,708 $ 4,477) ( 371,231 $ Not past due	1%~10% 118,126 $ 1,023) ( 117,103 $ 1 to 60 days	1%~10% 42,599 $ 294) ( 42,305 $ 61 to 120 days	10%-30% 9,245 $ 2,723) ( 6,522 $ 121 to 180 days	100% 3,355 $ 3,355) ( - $ 181 to 240 days	100% 5,071 $ 5,071) ( - $ Over 241 days	554,104 $ 16,943) ( 537,161 $ Total
	0%~1% 508,355 $ 2,044) ( 506,311 $	1%~10% 52,368 $ 4,291) ( 48,077 $	30%~50% 10,777 $ 5,735) ( 5,042 $	30%~50% 4,804 $ 2,872) ( 1,932 $	100% 1,414 $ 1,414) ( - $	100% 19,091 $ 19,091) ( - $	596,809 $ 35,447) ( 561,362 $

• vi. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

					2023
	Notes		receivable	Accountsreceivable				Total
At January 1		$	144	$	64,686		$	64,830
Provision for (reversal of) impairment loss			64	(	41,775)	(		41,711)
Write-offs			-	(	326)	(		326)
Effect of foreign exchange			-	(	444)	(		444)
At December 31		$	208	$	22,141		$	22,349
					2022
	Notes		receivable	Accounts receivable				Total
At January 1		$	162	$	47,961		$	48,123
Provision for (reversal of) impairment loss	(		18)		17,529			17,511
Written-Off			-	(	424)	(		424)
Effect of foreign exchange			-	(	380)	(		380)
At December 31		$	144	$	64,686		$	64,830

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(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

ii. The Group has the following undrawn borrowing facilities:

December 31, 2023 December 31, 2022 Floating rate: Expiring within one year $ 523,513 $ 303,089

• iii. The table below analyses the Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

Non-derivative financial liabilities:
December 31, 2023 Short-term borrowings Notes payable Accounts payable Other payables Lease liability Long-term borrowings (including current portion) Non-derivative financial liabilities: December 31, 2022 Short-term borrowings Notes payable Accounts payable Other payables Lease liability Long-term borrowings (including current portion)	Less than 1year	Between 1 and2years	Between 2 and 3 years	Between 3 and 5 years	Over 5 years	Total
	36,237 $ 178,448 101,114 182,257 5,565 155,083 Less than 1year	- $ - - - 5,461 154,399 Between 1 and2years	- $ - - - 4,943 152,380 Between 2 and 3 years	- $ - - - 7,355 61,578 Between 3 and 5 years	- $ - - - - 61,936 Over 5 years	36,237 $ 178,448 101,114 182,257 23,324 585,376 Total
	266,464 $ 179,968 141,453 197,101 2,299 176,790	- $ - - - 1,739 155,796	- $ - - - 1,630 153,963	- $ - - - 1,177 183,047	- $ - - - - 92,287	266,464 $ 179,968 141,453 197,101 6,845 761,883

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(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and over-the-counter stocks is included in Level 1.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in foreign exchange swap contracts is included in Level 2.

• Level 3: Unobservable inputs for the asset or liability.

• B. Fair value information of investment property at cost is provided in Note 6(9).

• C. Financial instruments not measured at fair value The carrying amounts of financial instruments not measured at fair value are approximate to their fair value, including cash and cash equivalents, notes receivable, accounts receivable other receivables, financial assets at amortized cost, guarantee deposits paid, short-term borrowings, notes payable, accounts payable, other payables, long-term borrowings (including current portion) , guarantee deposits received and lease liabilities (including current portion).

• D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities on December 31, 2023 and 2022, are as follows:

• (a) The related information of natures of the assets and liabilities is as follows:

December 31, 2023 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income - Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss	Level 1 135,445 $ 128,299 $ - $	Level 2 - $ - $ 2,952 $	Level3 - $ - $ - $	Total
				135,445 $
				128,299 $
				2,952 $

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==> picture [440 x 144] intentionally omitted <==

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

Level 1 Level 2 Level 3 Total
December 31, 2022
Assets
Recurring fair value measurements
Financial assets at fair value through
profit or loss $ 127,058 $ 2,565 $ - $ 129,623
Financial assets at fair value through
other comprehensive income
- -
- Equity securities $ 75,247 $ $ $ 75,247
----- End of picture text -----

• (b) The methods and assumptions the Group used to measure 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. Foreign exchange swap contracts are usually valued based on the current foreign exchange swap rate.

• E. For the years ended December 31, 2023 and 2022, there was no transfer between Level 1 and Level 2.

• F. For the years ended December 31, 2023 and 2022, there was no transfer into or out from Level 3.

13. Supplementary Disclosures

• (1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: None.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital: None.

• E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

• F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paidin capital or more: None.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 3.

• I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Notes 6(2) and 12(2).

• J. Significant inter-company transactions during the reporting periods: Please refer to table 4.

~69~

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 5.

• (3) Information on investments in Mainland China

• A. Basic information: Please refer to table 6.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to Note 13(1).

• (4) Major shareholders information: Please refer to table 7.

14. Segment Information

(1) General information

The information provided to the Chief Operating Decision-Maker to allocate resources and evaluate segment performance focuses on area of operations. The Group is primarily engaged in the manufacture of parts for the interior and exterior of automobiles and manages the business from a geographic perspective due to the different characteristics in culture, environment and economic condition although the manufacturing process and marketing strategy are the same throughout the operations. The reportable segments are as follows:

Domestic operation area - domestic consolidated entities.

Foreign operation area - foreign consolidated entities.

(2) Measurement of segment information

The Chief Operating Decision-Maker evaluates the performance of the operating segments based on a measure of adjusted profit from operations. This measurement basis excludes the effects of nonrecurring expenditure from the operating segments.

(Remainder of page intentionally left blank)

~70~

(3) Information about segment profit or loss, assets and liabilities

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

segments are as follows:
Domestic operation entities Foreign operation entities Others Inter-segment eliminations Total amount from continuing operations Interest income Rent income Dividend income Other income - others Foreign exchange (loss) gain Gain on financial assets and liabilities at fair value through profit or loss Gain on disposal of property, plant and equipment Other losses Finance costs Profit before income tax	Year ended December31,2023 Year ended December31,2022 1,444,806 $ 1,251,975 $ 609,585 785,354 38,694 19,862 41,876) ( 36,433) ( 2,051,209 $ 2,020,758 $ Segmentrevenue		Year ended December31,2023 Year ended December31,2022 442,050 $ 229,043 $ 54,601) ( 76,067) ( 6,470) ( 414) ( 20,884 27,440 401,863 $ 180,002 $ 34,593 18,751 8,665 8,139 7,132 4,958 36,278 20,361 60,398 306,502 9,110 39,275 4,283 3,798 844) ( 28,236) ( 17,269) ( 26,327) ( 544,209 $ 527,223 $ Segmentincome (loss)
	1,444,806 $ 609,585 38,694 41,876) ( 2,051,209 $	1,251,975 $ 785,354 19,862 36,433) ( 2,020,758 $	442,050 $ 54,601) ( 6,470) ( 20,884 401,863 $ 34,593 8,665 7,132 36,278 60,398 9,110 4,283 844) ( 17,269) ( 544,209 $	229,043 $ 76,067) ( 414) ( 27,440 180,002 $ 18,751 8,139 4,958 20,361 306,502 39,275 3,798 28,236) ( 26,327) ( 527,223 $

(4) Information on products

Please refer to Note 6 (22) for the related information.

(5) Geographical information

Geographical information for the years ended December 31, 2023 and 2022 is as follows:

Taiwan China Others	Revenue Non-current assets 1,444,772 $ 2,654,442 $ 588,311 768,967 18,126 - 2,051,209 $ 3,423,409 $ 2023	Revenue Non-current assets 1,246,356 $ 2,421,925 $ 755,770 846,932 18,632 - 2,020,758 $ 3,268,857 $ 2022

Revenue was calculated based on geographic location of segments. Non-current assets were classified based on geographic location of assets, including property, plant and equipment, intangible assets and other non-current assets but excluding financial instruments, guarantee deposits paid and deferred income tax. Geographical information for the years ended December 31, 2023 and 2022 is stated as above.

~71~

(6) Major customer information

Major customer information of the Group for the years ended December 31, 2023 and 2022 is as follows:

follows:
A Group B customer	Years ended December31,
	Revenue Segment 387,148 $ Domestic operations 198,283 Foreign operations 585,431 $ 2023	2022
		Revenue Segment 464,885 $ Domestic operations 110,706 Foreign operations 575,591 $	Segment

(Remainder of page intentionally left blank)

~72~

Table 1

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

Loans to others

Year ended December 31, 2023

Expressed in thousands of NTD

(Except as otherwise indicated)

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31,2023	Balance at December 31,2023	Actual amount drawn down (Note 2)	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party (Note 3)	Ceiling on total loans granted(Note 3)	Footnote
													Item	Value
0 0 0	Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD.	RISE BRIGHT HOLDINGS LTD. CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. LIAONING HETAI AUTOMOTIVE PARTS CO.,LTD.	Other receivables Other receivables Other receivables	Y Y Y	214,935 $ 484,245 247,151	107,468 $ 379,602 121,776	107,468 $ 379,602 121,776	1.40% 4%~4.35% 4.35%~5%	2 2 2	- $ - -	Operating capital Operating capital Operating capital	- $ - -	N N N	- $ - -	394,587 $ 394,587 394,587	1,578,350 $ 1,578,350 1,578,350	Notes 5,8 Notes 6,9 Notes 7,10

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: Balance at December 31, 2023 and actual amount drawn down were calculated at the RMB to USD and USD to TWD spot buy and selling spot exchange rate of 0.1408 and 30.705 on December 31, 2023.

Note 3: Limit on total loans granted to others by the Company is 40% of the net assets and limit on loans granted to a single party is 10% of the net assets.

Note 4: The nature of the loan are as follows:

• (1) Fill in ‘1’ for business transaction.

• (2) Fill in ‘2’ for short-term financing.

Note 5:The maximum outstanding balance of loans granted to RISE BRIGHT HOLDINGS LTD. by Y.C.C. amounted to NT$214,935. This is because the amount of NT$214,935 includes NT$107,467 that was matured on May 26, 2023. The remaining total facility was NT$107,468. Note 6:The maximum outstanding balance of loans granted to CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. by Y.C.C. amounted to NT$484,245. This is because the amount of NT$484,245 includes NT$61,410 that was matured on May 14, 2023. Another part of the quota, NT$43,233, was repaid on March 9, 2023 and expired on November 11, 2023, the remaining total facility was NT$379,602.�

Note 7:The maximum outstanding balance of loans granted to LIAONING HETAI AUTOMOTIVE PARTS CO., LTD. by Y.C.C. amounted to NT$247,151. This is because the amount of NT$247,151 includes NT$125,375 that was matured on July 24, August 8, and November 10, 2023. The remaining total facility was NT$121,776.

Note 8: Loans granted to RISE BRIGHT HOLDINGS LTD. approved by the Board of Directors amounted to US$7,000 thousand.

Note 9: Loans granted to CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. approved by the Board of Directors amounted to US$4,000 thousand and RMB$ 83,600 thousand.

Note 10: Loans granted to LIAONING HETAI AUTOMOTIVE PARTS CO., LTD approved by the Board of Directors amounted to US$1,150 thousand and RMB$ 49,000 thousand.

Table 1, Page 1

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

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

December 31, 2023

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2023	As of December 31,2023		Footnote
				Number of shares	Book value	Ownership (%)	Fair value
Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. UNITED SKILLS CO., LTD. UNITED SKILLS CO., LTD. UNITED SKILLS CO., LTD. UNITED SKILLS CO., LTD. UNITED SKILLS CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD.	HIROCA HOLDINGS LTD. GORDON AUTO BODY PARTS CO., LTD. ROUNDTOP MACHINERY INDUSTRIES CO., LTD. SHUN ON ELECTRONIC CO., LTD. NUUO INC. TANVEX BIOLOGICS CORPORATION ROUNDTOP MACHINERY INDUSTRIES CO., LTD. WANHWA ENTERPRISE COMPANY COWEALTH MEDICAL HOLDING CO., LTD. GLOBAL BRANDS MANUFACTURE LTD. TANVEX BIOLOGICS CORPORATION HIROCA HOLDINGS LTD. GORDON AUTO BODY PARTS CO., LTD.	N N N N N N N N N N N N N	Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Valuation adjustment Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Valuation adjustment	443,000 2,518,000 67,000 73,000 5,071 277,869 355,000 100,000 68,000 20,000 1,667 855,000 2,739,000	27,517 $ 25,539 1,030 3,342 278 37,716 5,132 1,227 2,038 769 235 30,622 135,445 $ 81,855 $ 46,680 (236) 128,299 $	0.53% 1.52% 0.08% 0.05% 0.04% 0.21% 0.42% 0.02% 0.09% 0.00% 0.00% 1.02% 1.66%	19,005 $ 84,227 1,166 2,066 262 18,089 6,177 1,300 1,754 1,290 109
							135,445 $
							36,680 $ 91,619
							128,299 $

Table 2, Page 1

Table 3

Expressed in thousands of NTD

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

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

December 31, 2023

(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2023 (Note 1)	Turnover rate(Note 5)	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date (Note 6)	Allowance for doubtful accounts	Footnote
					Amount	Action taken
Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD.	LIAONING HETAI AUTOMOTIVE PARTS CO., LTD CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. RISE BRIGHT HOLDINGS LTD.	Subsidiary Subsidiary Subsidiary	126,858 $ 389,268 115,616	- - -	- $ - -	- - -	- $ 123,017 2,917	- $ - -	Note 2 Note 3 Note 4

Note 1: The transactions were eliminated when preparing the consolidated financial statements. Note 2: It pertains to principal and interest aggregating to $123,542 from loans to the subsidiary and technical service expense amounting to $3,316 shown as other receivables. Note 3: It pertains to principal and interest aggregating to $383,741 from loans to the subsidiary and technical service expense amounting to $5,527 shown as other receivables. Note 4: It pertains to principal and interest aggregating to $108,375 from loans to the subsidiary shown as other receivables and sales of product amounting to $7,241 shown as accounts receivable. Note 5: Only accounts receivable was used for the calculation of turnover rate.

Note 6: Subsequent collection is the amount collected as of March 1, 2024.

Table 3, Page 1

Table 4

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

Significant inter-company transactions during the reporting periods

Year ended December 31, 2023

Expressed in thousands of NTD

(Except as otherwise indicated)

Number (Note1)	Companyname	Counterparty	Relationship (Note 2)			Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 0 0 0 0 1	Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. CHANG JIE TECHNOLOGY CO., LTD.	RISE BRIGHT HOLDINGS LTD. CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. LIAONING HETAI AUTOMOTIVE PARTS CO.,LTD CHANG JIE TECHNOLOGY CO., LTD. RISE BRIGHT HOLDINGS LTD. CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD.	1 1 1 1 1 3	Other receivables Other receivables Other receivables Accounts receivable Revenue Revenue	108,375 $ 389,268 126,858 10,867 12,188 11,585	Based on the contract Based on the contract Based on the contract Based on the contract Based on the contract Based on the contract	2.00% 7.18% 2.34% 0.20% 0.59% 0.56%

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; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, and subsidiaries or between subsidiaries refer to it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):

(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: Transaction amount that did not reach $10 million or more will not be disclosed.

Note 5: The transactions were eliminated when preparing the consolidated financial statements.

Table 4, Page 1

Table 5

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

Information on investees

Year ended December 31, 2023

Expressed in thousands of NTD

Table 5										Expressed in thousands of NTD	Expressed in thousands of NTD
Investor	Investee	Location	Main business activities	Initial investment amount		Shares	held as at December 31,2023		Net profit (loss) of the investee for the year ended December 31,2023	Investment income (loss) recognised by the Company for the year ended December 31,2023 Footnote (Except as otherwise indicated)
				Balance as at December 31,2023	Balance as at December 31,2022	Number of shares	Ownership (%)	Book value
Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. RISE BRIGHT HOLDINGS LTD.	UNITED SKILLS CO., LTD. RISE BRIGHT HOLDINGS LTD. CHINA FIRST HOLDINGS LTD.	Taiwan Samoa Samoa	Manufacturing vehicles and their parts Holding company Holding company	50,000 $ 1,235,358 1,158,673	50,000 $ 1,235,358 1,158,673	5,000 - -	100.00% 100.00% 89.44%	50,918 $ 455,103 407,608	2,633 $ 59,384) ( 59,431) (	2,634 $ 59,384) ( 53,155) (	Subsidiary Subsidiary (Note) Subsidiary (Note)

Note: The company does not hold any share in the investee because the investee is a limited company.

Table 5, Page 1

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

Information on investments in Mainland China

Year ended December 31, 2023

Investeein Mainland China	Mainbusiness activities	Paid-incapital	Investment method (Note1)	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2023	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2023	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2023	Accumulated amount of remittance from Taiwan to Mainland China as of December31,2023	Net income of investee as of December31,2023	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2023 (Note2)	Book value of investments in Mainland China as of December31,2023	Accumulated amount of investment income remitted back to Taiwan as of December31,2023	Footnte
					Remitted to Mainland China	Remitted back toTaiwan
CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. LIAONING HETAI AUTOMOTIVE PARTS CO., LTD. CHANGSHU XINXIANG AUTOMOBILE PARTS CO., LTD. CHANG JIE TECHNOLOGY CO., LTD.	Injecting and surface coating air bag covers of automobiles,producing and selling various accessories of automobiles and electronic plastic parts Injecting and surface coating parts of air bags with inflation system,covers, interior and exterior accessories of air bag and electronic equipment systems Manufacturing and selling parts, interior and exterior accessories and electronic system parts of automobiles and molds, gauges, clamps and jigs for injection Injecting and surface coating air bag covers of automobiles,producing and selling various accessories of automobiles and automatic production equipments for spraying	423,150 $ 347,588 60,450 176,406	2 2 2 2	827,609 $ 268,009 63,055 177,602	- $ - - -	- $ - - -	827,609 $ 268,009 63,055 177,602	74,321) ($ 17,762 108 5,744) (	89.44% 73.89% 89.44% 99.83%	66,473) ($ 13,124 96 5,734) (	185,201 $ 202,734 - 143,615	- $ - - -	Note 3 Note 7 Note 4 Note 5 Note 8 Note 6

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

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

(2) Through investing in existing companies in the third area, RISE BRIGHT HOLDINGS LTD. and CHINA FIRST HOLDINGS LTD. , which then invested in the investee in Mainland China.

Note 2: The amounts listed in the table denominated in foreign currencies are translated into New Taiwan dollars at the exchange rates at the balance sheet date. Note 3: Paid-in capital is US$14,000 thousand and accumulated amount of remittance from Taiwan to Mainland China is US$26,300 thousand. Note 4: Paid-in capital is US$11,500 thousand and accumulated amount of remittance from Taiwan to Mainland China is US$8,591 thousand. Note 5: Paid-in capital is US$2,000 thousand and accumulated amount of remittance from Taiwan to Mainland China is US$2,000 thousand. Note 6: Paid-in capital is US$6,080 thousand and accumulated amount of remittance from Taiwan to Mainland China is US$6,070 thousand.

Note 7: Investment income (loss) recognised by the Company for the year ended December 31, 2023 was based on the financial statements that were audited by parent company’s CPA. Note 8: CHANGSHU XINXIANG AUTOMOBILE PARTS CO., LTD. merged with CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. on November 30, 2023.

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December31,2023	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commissionof MOEA
Y.C.C. PARTS MFG. CO., LTD.	$ 1,336,275	$ 1,518,474	$ 2,425,177

Note 1: The amounts listed in the table denominated in foreign currencies are translated into New Taiwan dollars at the exchange rates at the balance sheet date.

Note 2: Calculation for ceiling on investments in Mainland China (60% of net assets) is based on MOEA “Regulations Governing the Permission of Investment or Technical Cooperation in Mainland Area”.

Note 3: At the end of this period, the investment amount transmitted from Taiwan to mainland China was US$42,961 thousand. The investment amount permitted by the Investment Commission of Ministry of Economic Affairs(MOEA) was US$48,765 thousand. Note 4: The investment amount permitted by the Investment Commission of Ministry of Economic Affairs(MOEA) to CHANG JIE TECHNOLOGY CO., LTD. was RMB$10,000 thousand.

There is US$10 thousand difference with MOEA due to exchange rate fluctuations. Paid-in capital is US$1,560 thousand and accumulated amount of remittance from Taiwan to Mainland China is US$1,570 thousand.

Table 6, Page 1

Table 7

Y.C.C. PARTS MFG. CO., LTD. and subsidiaries

Major shareholders information

December 31, 2023

Name of major shareholders	Shares	Shares
	Number of shares held	Ownership (%)
HAO QUN INVESTMENT & DEVELOPMENT CO.,LTD SONG QUN INVESTMENT & DEVELOPMENT CO.,LTD HE HAN INVESTMENT CO.,LTD RU HAN INVESTMENT CO.,LTD HUANG KAI INVESTMENT CO.,LTD	11,791,000 10,731,000 7,586,503 5,964,420 5,791,500	15.90% 14.47% 10.23% 8.04% 7.81%

Description: If the company applies Taiwan Depository & Clearing Corporation for the information of the table, the following can be explained in the notes of the table. (1) The major shareholders information was from the data that 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 each quarter.

The share capital which was recorded on the financial statements may be different from the actual number of shares in dematerialised form because of a different calculation basis.

(2) If the aforementioned data contains shares which were kept in trust by the shareholders, the data that was disclosed was the settlor's separate account for the fund set by the trustee.

As for the shareholder who reports share equity as an insider whose shareholding ratio is greater than 10% in accordance with Securities and Exchange Act, the shareholding ratio includes the self-owned shares and trusted shares, at the same time, persons who have power to decide how to allocate the trust assets. For the information of reported share equity of insider, please refer to the Market Observation Post System.

Table 7, Page 1