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

Dec 22, 2023

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

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

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as at December 31, 2023 and 2022, and its parent company only financial performance and its parent company only 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 Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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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 Company’s 2023 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

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

Cut-off of sales revenue recognition

Description

For the accounting policy of revenue recognition, please refer to Note 4(28); and for details of operating revenue, please refer to Note 6(19). The Company 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, which also affected the Company’s subsidiary accounted for using equity method. Therefore, we included the cutoff 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(13); 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(6). The Company 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$ 278,340 thousand and NT$ 25,437 thousand, respectively.

The Company 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. Considered that the Company’s inventories were material to its financial statements, and the determination of net realisable value in the balance sheet date involved judgements and estimates, which also affected the Company’s subsidiary accounted for using equity method. We identified the assessment of allowance for inventory valuation losses a key audit matter.

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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 Company’s business and industry and assessed the reasonableness of provision policies in the determination of allowance for inventory valuation losses.

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

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

4. 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.

Responsibilities of management and those charged with governance for the parent company only financial statements

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

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable,

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matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

Auditors’ responsibilities for the audit of the parent company only financial

statements

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

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

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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 Company’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 Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

4. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only 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 Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with

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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 parent company only 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 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 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. BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(4) 6(5) 6(5) 7(2) 7(2) 6(6) 7(2) 6(3) 6(4) and 8 6(7) 6(8) and 8 6(9) 6(10) 6(26) 6(11)	December 31, 2023 AMOUNT % $ 252,454 5 124,815 3 125,890 3 16,821 - 293,989 6 18,108 - 9,503 - 633,360 12 252,903 5 19,933 - 1,747,776 34 128,299 2 300 - 506,021 10 2,240,616 44 22,586 - 80,887 2 95,981 2 317,107 6 3,391,797 66 $ 5,139,573 100	December 31, 2022	December 31, 2022
		AMOUNT $ 252,454 124,815 125,890 16,821 293,989 18,108 9,503 633,360 252,903 19,933 1,747,776 128,299 300 506,021 2,240,616 22,586 80,887 95,981 317,107 3,391,797 $ 5,139,573	AMOUNT $ 905,487 118,291 - 14,275 227,195 27,489 3,712 317,288 158,269 26,819 1,798,825 75,247 300 573,977 2,281,091 6,630 - 94,477 136,813 3,168,535 $ 4,967,360	%
Current assets Cash and cash equivalents Financial assets at fair value through profit or loss Financial assets at amortised cost Notes receivable, net Accounts receivable, net Accounts receivable due from related parties, net Other receivables Other receivables due from related parties Inventories Other current assets Total current assets Non-current assets Non-current financial assets at fair value through other comprehensive income Non-current financial assets at amortised cost Investments accounted for using equity method Property, plant and equipment Right-of-use assets Investment property, net Deferred tax assets Other non-current assets Total non-current assets Total assets				18 2 - - 5 1 - 6 3 1
				36
				1 - 12 46 - - 2 3
				64
				100

(Continued)

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Y.C.C. PARTS MFG. CO., LTD. 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(2) $ 2,952 - $ - - 6(19) 1,866 - 2,811 - 178,103 3 179,943 4 20,981 - 12,954 - 6(12) 137,444 3 132,118 3 6(26) 188,159 4 143,864 3 6(13) 133,167 3 169,662 3 6(9) 5,310 - 2,233 - 667,982 13 643,585 13 6(13) 446,846 9 566,370 11 6(26) 56,283 1 28,511 1 6(26) - - 513 - 6(9)(14)(15) 22,587 - 14,072 - 525,716 10 609,466 12 1,193,698 23 1,253,051 25 6(16) 741,239 14 741,239 15 6(17) 1,193,349 24 1,193,349 24 6(18) 383,999 8 343,211 7 109,142 2 120,040 2 1,612,189 31 1,425,612 29 ( 94,043) ( 2) ( 109,142) ( 2 ) 6(16) - - - - 3,945,875 77 3,714,309 75 9 $ 5,139,573 100 $ 4,967,360 100

Current liabilities Financial liabilities at fair value through profit or loss Current contract liabilities Notes payable Accounts payable Other payables Current tax liabilities Long-term liabilities, current portion Other current liabilities, others Total current liabilities Non-current liabilities Long-term borrowings Income tax liabilities - non-current Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Equity Share capital Ordinary share Capital surplus Capital surplus Retained earnings Legal reserve Special reserve Unappropriated retained earnings Other equity interest Other equity interest Treasury shares Total equity Significant contingent liabilities and unrecognised contract commitments Total liabilities and equity

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

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Y.C.C. PARTS MFG. CO., LTD. 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) and 7(2) $ 1,456,959 100 $ 1,259,707 100 6(6)(24)(25) and 7(2) ( 773,514) ( 53) ( 786,838) ( 63) 683,445 47 472,869 37 6(24)(25) ( 113,412) ( 8) ( 91,298) ( 7) ( 64,871) ( 4) ( 83,849) ( 7) ( 59,655) ( 4) ( 53,029) ( 4) 12(2) ( 167) - ( 3,895) - ( 238,105) ( 16) ( 232,071) ( 18) 445,340 31 240,798 19 6(20) and 7(2) 49,049 3 21,893 2 6(21) and 7(2) 51,591 4 41,769 3 6(22) 68,815 5 331,936 26 6(23) ( 10,644) ( 1) ( 9,941) ( 1) 6(7) ( 56,750) ( 4) ( 91,701) ( 7) 102,061 7 293,956 23 547,401 38 534,754 42 6(26) ( 111,740) ( 8) ( 126,194) ( 10) 435,661 30 408,560 32 $ 435,661 30 $ 408,560 32 6(15) $ 3,972 - ($ 381) - 6(3) 26,304 2 7,008 1 6(26) ( 794) - 76 - 29,482 2 6,703 1 ( 11,205) ( 1) 3,890 - ( 11,205) ( 1) 3,890 - $ 18,277 1 $ 10,593 1 $ 453,938 31 $ 419,153 33 6(27) $ 5.88 $ 5.51 $ 5.86 $ 5.50

Operating revenue Operating costs Gross profit from operations Operating expenses Selling expenses Administrative expenses Research and development expenses Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 Total operating expenses Net operating income Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of loss of associates and joint ventures accounted for using equity method Total non-operating income and expenses Profit before income tax Income tax expense Profit from continuing operations Profit Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss Gains on remeasurements of defined benefit plans Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Total components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss Exchange differences on translation Total components of other comprehensive (loss) income that will be reclassified to profit or loss Other comprehensive income Total comprehensive income Basic earnings per share Basic earnings per share Diluted earnings per share

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

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Y.C.C. PARTS MFG. CO., LTD. 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 for the year Other comprehensive income (loss) for the year Total comprehensive income Appropriation and distribution of 2021 earnings Legal reserve (Reversal of) Special reserve Cash dividends Decrease in treasury shares Balance at December 31, 2022 Year 2023 Balance at January 1, 2023 Profit for the year Other comprehensive (loss) income Total comprehensive (loss) income Appropriation and distribution of 2022 earnings Legal reserve (Reversal of) Special reserve Cash dividends Balance at December 31, 2023	Notes		Ordinary share	Capital surplus, additional paid- in capital	Capital surplus, additional paid- in capital			Retained earnings	Retained earnings	Other equity interest	Other equity interest	Treasury shares		Total equity
							Legal reserve	Special reserve	Unappropriated retained earnings	Exchange differences on translation of foreign financial statements	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(3) 6(18) 6(7) 6(3) 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

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

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Y.C.C. PARTS MFG. CO., LTD. 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 Depreciation expense - right-of-use assets Amortization expense Expected credit impairment loss Net loss on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Government grant Dividend income Share of loss (profit) of associates accounted for under equity method Gain on disposal of property, plant and equipment Changes in operating assets and liabilities Changes in operating assets Notes receivable Accounts receivable Accounts receivable-related parties Other receivables Other receivables-related parties 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 tax paid Net cash flows from operating activities

Year ended December 31 Notes 2023 2022 $ 547,401 $ 534,754 6(8)(24) 278,723 276,987 6(9)(24) 2,678 2,268 6,231 9,779 12(2) 167 3,895 6(2)(22) ( 4,953 ) ( 38,008 ) 6(23) 10,644 9,941 6(20) ( 49,049 ) ( 21,893 ) 6(14) ( 1,410 ) ( 1,099 ) 6(21) ( 6,733 ) ( 4,958 ) 6(7) 56,750 91,701 6(22) - ( 3,550 ) ( 2,546 ) 1,791 ( 66,961 ) ( 63,919 ) 9,381 ( 5,522 ) ( 16,239 ) 6,471 ( 4,016 ) ( 84 ) ( 94,634 ) 18,856 6,885 2,938 ( 945 ) 326 14,972 ( 15,513 ) 8,027 ( 11,634 ) 6,683 ( 13,598 ) ( 3 ) 2 ( 138 ) 202 700,915 780,133 49,260 19,874 ( 10,539 ) ( 9,809 ) 6,733 4,958 ( 51,135 ) ( 31,622 ) 695,234 763,534

(Continued)

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Y.C.C. PARTS MFG. CO., LTD. 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 Increase in other receivables due from related parties Acquisition of property, plant and equipment Payment for capitalized interests Gain on disposal of property, plant and equipment Acquisition of intangible assets Increase in other non-current assets Increase in guarantee deposits Acquisition of financial assets measured at fair value through other comprehensive profit or loss - non-current Acquisition of real estate investment Increase in prepaid equipment and project payments 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 Repayment 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

Year ended December 31 Notes 2023 2022 6(28) ($ 12,263 ) ($ 78,280 ) 12,261 77,419 ( 125,890 ) 180,449 ( 312,056 ) ( 83,709 ) 6(28) ( 156,864 ) ( 238,237 ) 6(8) - ( 1,193 ) 2,010 4,073 ( 1,533 ) ( 861 ) ( 2,690 ) ( 3,496 ) ( 2,900 ) ( 1,809 ) ( 26,748 ) ( 19,932 ) 6(10) ( 80,887 ) - ( 261,248 ) ( 129,289 ) ( 968,808 ) ( 294,865 ) - 15,000 - ( 15,000 ) 6(29) - ( 50,000 ) 6(29) - 192,540 6(29) ( 154,424 ) ( 105,835 ) 6(29) ( 2,663 ) ( 2,668 ) 6(29) ( 222,372 ) ( 148,248 ) ( 379,459 ) ( 114,211 ) - 42,272 ( 653,033 ) 396,730 905,487 508,757 $ 252,454 $ 905,487

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

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Y.C.C. PARTS MFG. CO., LTD. NOTES TO THE 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 is primarily engaged in manufacturing and trading automobiles 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 parent company only financial statements were authorized 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 FSC and became effective from 2023

are as follows:

==> picture [488 x 47] intentionally omitted <==

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Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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New Standards, Interpretations and Amendments	StandardsBoard
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities	January 1, 2023
arising from a single transaction’
Amendments to IAS 12, ‘International tax reform - pillar two model rules’	May 23, 2023
The above standards and interpretations have no significant impact to the Company’s financial
condition and financial performance based on the Company’s assessment.

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

but not yet adopted by the Company

None.

(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:

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Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ January 1, 2024 Amendments to IAS 1, ‘Classification of liabilities as current or nonJanuary 1, 2024 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 Company’s financial condition and financial performance based on the Company’s assessment.

4. Summary of Material Accounting Policies

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

• (2) Basis of preparation

• A. Except for the following items, the parent company only 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 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”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

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

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange

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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 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 Company 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 Company 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 operation.

• (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.

(4) 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

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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:

• (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.

(5) 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.

(6) 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 Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

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

(7) 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 Company 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 Company’s business model is achieved both by collecting contractual cash flows and selling financial assets; and

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  - (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 Company measures the financial assets at fair value plus transaction costs. The Company 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 payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

• (8) 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 Company’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 Company’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.

(9) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Company 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.

• (10) Impairment of financial assets

• For financial assets at amortised cost, at each reporting date, the Company 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 Company recognises the impairment provision for lifetime ECLs.

(11) Derecognition of financial assets

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

－ (12) Leasing arrangements (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in

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profit or loss on a straight-line basis over the lease term.

(13) 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.

• (14) Investments accounted for using equity method-subsidiaries

• A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company 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.

• B. Unrealised gains on transactions between the Company and its subsidiaries are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company recognise loss continuously in proportion to its ownership.

• 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. Difference of adjustment of non-controlling interest and fair value of consideration paid or received is recognised in equity.

• E. When the Company loses control of a subsidiary, the Company 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. If the Company loses significant influence over the subsidiary, the 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 relevant assets or liabilities were disposed of.

• F. Pursuant to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the nonconsolidated financial statements shall be equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners’ equity in the non-consolidated financial statements shall be equal to equity attributable to owners of the parent in the consolidated

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financial statements.

(15) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the 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 Company 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 10 ~ 20 years Machinery and equipment 1~ 15 years Molding equipment 2 ~ 5 years Transportation equipment 2 ~ 8 years Furniture equipment 2 ~ 5 years Other equipment 2 ~ 10 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 Company. For short-term leases or leases of low-value 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 Company 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

~21~

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;

• (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 real estate

Investment real estate is recognized at acquisition cost, and subsequent measurement adopts the cost model.

(18) Intangible assets

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

(19) Impairment of non-financial assets

The Company 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.

(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.

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(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 Company measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Company 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 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 Company 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

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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 Company 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 loss and does not give rise to equal taxable and deductible temporary differences. 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 Company 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

~24~

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

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities.

(29) Revenue recognition

Sales of goods

• A. The Company 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 Company 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 60 to 120 days after the delivery date. which is consistent with market practice. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Company 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 Company 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 noncurrent liabilities and are amortised to profit or loss over the estimated useful lives of the related assets using the straight-line method.

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

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are

~25~

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 Company’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 Company 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 $252,903.

6. Details of Significant Accounts

(1) Cash and cash equivalents

tails of Significant Accounts Cash and cash equivalents
Cash on hand Checking accounts and demand deposits Time deposits Short-term notes and bills - Re-Purchase Interest rate range Time deposits	December31,2023 103 $ 46,627 205,724 - 252,454 $ 5.64%~5.72%	December31,2022
		198 $ 27,404 723,859 154,026
		905,487 $
		0.95%~4.35%

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

• 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(4) for details.

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

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(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 95,422 $ Valuation adjustment 29,393 Total 124,815 $ Financial (liabilities) assets held for trading Foreign exchange swap contracts 2,952) ($ Total amount of fiancial assets at fair value through profit or loss 124,815 $ Total amount of fiancial liabilities at fair value through profit or loss 2,952) ($	December31,2022
	96,804 $ 18,922
	115,726 $
	2,565 $
	118,291 $
	- $

• A. The Company recognised financial assets and liabilities at fair value through profit of $6,415 and $38,008 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 Company 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 (Notional principal)	Contractperiod
	Contract amount (Notionalprincipal) Maturity period USD 26,100 thousand 2022.12.05 ~ 2023.01.30

The Company entered into cross currency swap contracts to hedge risk arising from the changes in currency rates of assets and liabilities denominated in foreign currencies. However, the forward exchange contracts did not meet the criteria for hedge accounting.

• C. The Company 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 and liabilities at fair value through profit or loss is provided in Note 12(2).

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

==> picture [488 x 345] 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)
$ 128,299 $ 75,247
A. The Company 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:
Years ended December 31,
2023 2022
Equity instruments at fair value through
other comprehensive income
Fair value change recognised in other
comprehensive loss $ 26,304 $ 7,008
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 Company were $128,299 and $75,247, respectively.

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

(4) Financial assets at amortised cost

to others as collateral. 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 $	December 31, 2022
		- $
		300 $

• 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 Company were $126,190 and $300, respectively.

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• 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).

• (5) Notes and accounts receivable, net

Notes and accounts receivable, net
	December	31, 2023	December	31, 2022
Notes receivable	$	17,028	$	14,419
Less: Allowance for uncollectible accounts	(	207)	(	144)
	$	16,821	$	14,275
	December	31,2023	December	31,2022
Accounts receivable	$	301,204	$	234,306
Less: Allowance for uncollectible accounts	(	7,215)	(	7,111)
	$	293,989	$	227,195

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

Not past due 1~60 days 61~120 days 121~180 days Over 241 days	Notesreceivable Accountsreceivable 17,028 $ 249,844 $ - 47,809 - 843 - - - 2,708 17,028 $ 301,204 $ December31,2023	December31,2022
		Notesreceivable Accountsreceivable 14,419 $ 182,842 $ - 41,634 - 8,926 - - - 904 14,419 $ 234,306 $

As of December 31, 2023 and 2022, the ageing analysis was based on past due date and invoice 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 notes receivable from contracts with customers amounted to $170,793 and $16,228, 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 Company’s notes receivable and accounts receivable were $16,821 and $14,275 as well as $293,989 and $227,195, respectively.

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

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(6) Inventories

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 113,928 $ 8,851 3,142 152,047 372 278,340 $	Allowance for valuation loss Bookvalue 11,552) ($ 102,376 $ 473) ( 8,378 799) ( 2,343 12,613) ( 139,434 - 372 25,437) ($ 252,903 $ December31,2023 December 31, 2022
	Cost 39,303 $ 6,801 3,727 138,650 386 188,867 $	Allowance for valuation loss Book value 9,385) ($ 29,918 $ 1,187) ( 5,614 1,563) ( 2,164 18,463) ( 120,187 - 386 30,598) ($ 158,269 $

The cost of inventories recognised as expense for the period:

Cost of goods sold Unallocated fixed overheads Loss on (gain on reversal of) market value decline and slow-moving inventories Gain on physical inventory Loss on scrapping inventory	Year ended December 31,2023 Year ended December 31, 2022 782,117 $ 777,199 $ 1,129 - 5,161) ( 11,678 4,798) ( 2,436) ( 227 397 773,514 $ 786,838 $

The Company 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.

(7) Investments accounted for using equity method

Investments accounted for using equity method
Subsidiaries RISE BRIGHT HOLDINGS LTD. (RISE BRIGHT) UNITED SKILLS CO., LTD. (UNITED SKILLS)	December31,2023 455,103 $ 50,918 506,021 $	December31,2022
		525,692 $ 48,285
		573,977 $

• A. Share of profit or loss of subsidiaries accounted for using equity method is evaluated based on each investee’s audited financial statements for the corresponding period. For the years ended

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December 31, 2023 and 2022, the Company recognised loss in the amount of $56,750 thousand and $91,701 thousand, respectively.

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

• (Remainder of page intentionally left blank)

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(8) Property, plant and equipment

Property, plant and equipment
						Year ended			December31,	2023
			Beginningbalance			Additions			Decreases		Transfers			Endingbalance
Cost
Land		$	956,365		$	-		$	-	$	-		$	956,365
Buildings and structures			1,217,374			2,615			-		-			1,219,989
Machinery and equipment			808,629			22,953	(		22,943)		33,329			841,968
Molding equipment			2,099,665			68,671	(		14,810)		122,867			2,276,393
Transportation equipment			32,760			-	(		538)		-			32,222
Furniture equipment			2,441			-	(		171)		-			2,270
Other equipment			154,839			22,435	(		288)		8,243			185,229
Unfinished construction and
equipment under acceptance			268,679			41,738			-	(	82,593)			227,824
		$	5,540,752		$	158,412	($		38,750)	$	81,846		$	5,742,260
Accumulated Depreciation
Buildings and structures	($		792,484)	($		52,867)		$	-	$	-	($		845,351)
Machinery and equipment	(		624,021)	(		54,595)			20,932		-	(		657,684)
Molding equipment	(		1,690,885)	(		153,850)			14,810		-	(		1,829,925)
Transportation equipment	(		24,912)	(		2,231)			538		-	(		26,605)
Furniture equipment	(		2,056)	(		177)			172		-	(		2,061)
Other equipment	(		125,303)	(		15,003)			288		-	(		140,018)
	($		3,259,661)	($		278,723)		$	36,740	$	-	($		3,501,644)
Total		$	2,281,091										$	2,240,616

~32~

						Year ended	Year ended	Year ended	December31,	2022
			Beginningbalance			Additions			Decreases		Transfers			Endingbalance
Cost
Land		$	956,365		$	-		$	-	$	-		$	956,365
Buildings and structures			1,174,953			-			-		42,421			1,217,374
Machinery and equipment			767,115			68,559	(		30,433)		3,388			808,629
Molding equipment			1,909,813			144,299			-		45,553			2,099,665
Transportation equipment			29,929			6,051	(		3,220)		-			32,760
Furniture equipment			2,119			322			-		-			2,441
Other equipment			144,789			3,429	(		289)		6,910			154,839
Unfinished construction and
equipment under acceptance			171,389			137,687			-	(	40,397)			268,679
		$	5,156,472		$	360,347	($		33,942)	$	57,875		$	5,540,752
Accumulated Depreciation
Buildings and structures	($		742,283)	($		50,201)		$	-	$	-	($		792,484)
Machinery and equipment	(		598,423)	(		55,509)			29,911		-	(		624,021)
Molding equipment	(		1,531,873)	(		159,012)			-		-	(		1,690,885)
Transportation equipment	(		26,216)	(		1,916)			3,220		-	(		24,912)
Furniture equipment	(		1,954)	(		102)			-		-	(		2,056)
Other equipment	(		115,344)	(		10,247)			288		-	(		125,303)
	($		3,016,093)	($		276,987)		$	33,419	$	-	($		3,259,661)
Total		$	2,140,379										$	2,281,091

A. Transfers for the period were from inventories and prepayments for business facilities.

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

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

• December 31, 2023: None.

December 31, 2022 Amount capitalised $ 1,193 Range of the interest rates for capitalisation 0.95%

• (9) Lease transactions – lessee

• A. The Company leases various assets including business vehicles. Rental contracts are typically made for periods of 5 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. The carrying amount of right-of-use assets and the depreciation charge are as follows:

The carrying amount of right-of-use assets and the	depreciation charge are as follows:	depreciation charge are as follows:
Transportation equipment (Business vehicles) Transportation equipment (Business vehicles)	December31,2023 December 31, 2022 Carrying amount Carrying amount 22,586 $ 6,630 $ Years endedDecember31,
	2023 Depreciation charge 2,678 $	2022
		Depreciation charge 2,268 $

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

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

E.

As of December 31, 2023 and 2022, the balances of lease liabilities -current and lease liabilities - non-current are as follows : 2023 2022 Items affecting profit or loss Interest expense on lease liabilities 101 $ 98 $ Expense on leases of low-value assets 75 $ 33 $ Years ended December31, December31,2023 December31,2022 Lease liabilities - current 5,308 $ 2,228 $ Lease liabilities - non-current 17,355 $ 4,465 $

• F. For the years ended December 31, 2023 and 2022, the Company’s total cash outflow for leases were $2,839 and $2,799, respectively.

(10) Investment property

Investment property
Cost Land	YearendedDecember31,2023
	Beginning balance - $	Additions 80,887 $	Decreases - $	Ending balance
				80,887 $

• A.The fair value of the investment property held by the Company, 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

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of the Ministry of Interior, the fair value is classified as a level 2 fair value.

B. The Company 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.

(11) Other non-current assets

Other non-current assets
	December 31, 2023		December 31, 2022
Prepayments for business facilities	$	304,136	$	124,734
Guarantee deposits paid		6,754		3,854
Other non-current assets-others		6,217		8,225
	$	317,107	$	136,813
Other payables
	December31,2023		December31,2022
Salaries and bonus payable	$	47,267	$	38,944
Machinery and equipment payable		43,263		44,189
Employees’ compensation payable		8,426		7,360
Directors’ remuneration payable		5,841		5,661
Utilities expense payable		4,795		4,188
Payables on insurance premiums		1,358		1,266
Securities expense payable		-		1,383
Others		26,494		29,127
	$	137,444	$	132,118

(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	The loan is disbursed within		$	36,000
	26, 2019 to	three years after contract is
	December 15,	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			206,597
	2016 to January 6,	repayable monthly after a 3-
	2031	year grace period
Secured borrowings	From December	Principal and interest are			276,000
	26, 2019 to	repayable monthly after a 3-
	December 15,	year grace period;interest is
	2026	repayable monthly; principal is
		repayable monthly in 48
		installments
Secured borrowings	From September	The loan is disbursed within
	19, 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			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%

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Type ofborrowings	Borrowing period	Repayment term		December31,2022	December31,2022
Long-term bank
borrowings
Unsecured borrowings	From November	The loan is fully disbursed once		$	13,833
	26, 2018 to	the contract signed; interest is
	November 26,	repayable monthly; principal is
	2023	repayable monthly in 48
		installments with a year grace
		period on principal only
Unsecured borrowings	From August 31,	Starting from August 15, 2019,			6,662
	2016 to February	principal is repayable quarterly;
	15, 2023	interest is repayable monthly
Unsecured borrowings	From December	The loan is disbursed within			48,000
	26, 2019 to	three years after contract is
	December 15,	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	Principal and interest are			368,000
	26, 2019 to	repayable monthly after a 3-
	December 15,	year grace period;interest is
	2026	repayable monthly; principal is
		repayable monthly in 48
		installments
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 Company acquired government concessional loans under the “Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan” from 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 $47,277, respectively which were calculated at a market rate of 1.25% and 1.375%. The differences between the acquired amount and the fair value were $7,065 and $723, respectively, which were deemed as a low interest loan subsidy from government and recognised 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 realised 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 has 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 contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions 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:

Year ended December 31, 2023

		Present value
		of defined		Fair value of			Net defined benefit
	benefit obligations				plan assets			liability
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		-	(		141)	(		141)
income or expense)
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
		Year ended December31,2022
		Present value
		of defined		Fair value of			Net defined benefit
	benefit obligations				plan assets			liability
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		-	(		1,017)	(		1,017)
income or expense)
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 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

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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:

Discount rate Future salary increases	December 31, 2023 1.13% 2.50%	December 31, 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:

Increase 0.25% Decrease 0.25% December 31, 2023 Effect on present value of defined benefit obligation 151) ($ 156 $ December 31, 2022 Effect on present value of defined benefit obligation 209) ($ 215 $ Discountrate	Increase 0.25% Decrease 0.25% 151 $ 147) ($ 208 $ 204) ($ Future salary increases

The sensitivity analysis above is based on other conditions 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 were consistent with previous period.

(f) Expected contributions to the defined benefit pension plans of the Company 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.

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• 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 pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2023 and 2022 were $6,273 and $5,966, respectively.

• (16) Share capital

• A. As of December 31, 2023, the Company’s authorised 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

(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 capitalised mentioned above should not exceed 10% of the paidin capital each year. However, capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

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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 associates accounted for using equity method $ 2,125 $ 2,125 Used to offset accumulated deficits only (Note 2) Changes in ownership interests in associates accounted for using equity method $ 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 accounted for using equity method.

(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 by the shareholders’ meeting.

• B. The Company retains some earnings after taking into account the environment, growth stage and long-term financial plan of the Company, and the reminder along with the accumulated unappropriated earnings of prior years can be distributed as shareholders’ bonus, of which the cash bonus shall exceed 20% of total shareholders’ bonus, by the Board of Directors depending on the current capital position and the economic development.

• C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• D. (a)In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

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• (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.

• E. The appropriation of 2022 and 2021 earnings have been approved by the stockholders during their meeting on May 31, 2023 and May 27, 2022, respectively. Details are summarised below:

Legal reserve appropriated Provision for (reversal of) special reserve Cash dividend	Amount Dividend per share(in dollars) Amount Dividend per share (in dollars) 40,788 $ 13,637 $ 10,898) ( 14,829 222,372 3.00 $ 148,248 2.00 $ Years endedDecember31, 2022 2021
	Amount
	40,788 $ 10,898) ( 222,372

• F. The appropriation of 2023 earnings proposed by the Board of Directors on March 7, 2024 is as follows:

follows:
			Year ended December31,2023
					Dividend per
			Amount		share (indollars)
Legal reserve		$	43,884
special reserve	(		15,099)
Cash dividends			222,372	$	3.00

• G. Refer to Note 6 (25) for further information relating to employees’ compensation and directors’ and supervisors’ remuneration.

(19) Operating revenue

• A. Disaggregation of revenue from contracts with customers

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

following products:
Auto parts Others	Years ended December31,
	2023 1,444,806 $ 12,153 1,456,959 $	2022
		1,251,975 $ 7,732
		1,259,707 $

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B. Contract liabilities

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

==> picture [463 x 60] intentionally omitted <==

For the years ended December 31, 2023 and 2022, revenue recognised that were included in the contract liability balance at the beginning of the period amounted to $2,314 and $2,125, respectively.

(20) Interest income

Interest income from bank deposits Interest income from loans to related parties

Years ended December31,	Years ended December31,
2023 33,636 $ 15,413 49,049 $	2022
	11,338 $ 10,555
	21,893 $

(21) Other income

Other income
Dividend income Rent income Other income - others	Years ended December31,
	2023 6,733 $ 4,856 40,002 51,591 $	2022
		3,958 $ 4,958 32,853
		41,769 $

(22) Other gains and losses

Other gains and losses
			Years ended	December31,
			2023		2022
Foreign exchange losses		$	62,464	$	309,933
Losses on financial assets and liabilities at fair value			6,415		38,008
through profit or loss
Gains on disposal of property, plant and equipment			-		3,550
Other losses	(		64)	(	19,555)
		$	68,815	$	331,936
Finance costs
			Years ended	December31,
			2023		2022
Interest expense		$	10,644	$	11,134
Less: Capitalisation of qualifying assets			-	(	1,193)
		$	10,644	$	9,941

(23) Finance costs

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(24) Expenses by nature

Expenses by nature
Employee benefit expense Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of- use assets Amortisation Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of- use assets Amortisation Wages and salaries Labour and health insurance fees Pension costs Directors’ remuneration Other personnel expenses Wages and salaries Labour and health insurance fees Pension costs Directors’ remuneration Other personnel expenses	Classified as Classified as Operating Costs OperatingExpenses Total 133,713 $ 88,217 $ 221,930 $ 257,491 21,232 278,723 - 2,678 2,678 2,916 3,315 6,231 394,120 $ 115,442 $ 509,562 $ YearendedDecember31,2023 Year ended December 31, 2022
	Classified as Classified as Operating Costs OperatingExpenses Total 124,989 $ 86,167 $ 211,156 $ 264,824 12,163 276,987 - 2,268 2,268 2,863 6,916 9,779 392,676 $ 107,514 $ 500,190 $ Year ended December31,2023		Total
			211,156 $ 276,987 2,268 9,779
			500,190 $
	Classified as Classified as Operating Costs OperatingExpenses Total 110,770 $ 72,656 $ 183,426 $ 12,169 4,748 16,917 3,766 2,572 6,338 - 6,427 6,427 7,008 1,814 8,822 133,713 $ 88,217 $ 221,930 $ YearendedDecember31,2022		Total
			183,426 $ 16,917 6,338 6,427 8,822
			221,930 $
	Classified as Operating Costs 102,907 $ 10,686 3,754 - 7,642 124,989 $	Classified as OperatingExpenses 73,104 $ 3,648 2,418 5,121 1,876 86,167 $	Total
			176,011 $ 14,334 6,172 5,121 9,518
			211,156 $

(25) Employee benefit expense

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• 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	Years ended December31,
	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% 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 recognised 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.

• E.As at December 31, 2023 and 2022, the Company had 281 and 271 employees, including 4 nonemployee directors.

• F.Average employee benefit expenses in current and previous years were $801 and $791, respectively.

• G.Average employees salaries in current and previous years were $662 and $659, respectively.

• H.Adjustments of average employees salaries were 0.48%.

• I.The Company has no supervisors as it has set up the audit committee.

• J.The directors’ emolument includes directors’ salaries, transportation allowances and remuneration from earnings. Directors’ salaries are determined based on the pay levels in the same industry. Transportation allowances are paid based on their attendance to the board meetings. Directors’ remuneration from earnings are appropriated in accordance with the Articles of Incorporation of the Company, which shall be reviewed by the Remuneration Committee, resolved by the Board of Directors and approved at the shareholders’ meeting. The salary to an individual director is determined based on each director’s performance results assessed according to ‘Regulations Governing the Board Performance Evaluation’ and then calculated in accordance with the ‘Rules for Distribution of Remuneration to Directors’. The salary payments shall be submitted to be reviewed by the Remuneration Committee and resolved by Board of Directors. Managers’ and employees’ emoluments include salaries, bonuses, employee compensations, pensions, etc.

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Salaries are determined based on the positions and responsibilities assumed by each manager or employee by reference to the pay levels for the same position in the same industry and the individual’s performance results assessed according to ‘Regulations Governing Performance Evaluation’. The managers’ emolument shall be reviewed by the Remuneration Committee and resolved by the Board of Directors.

(26) Income tax

A.Income tax expense

• (a) Components of income tax expense

			Years ended	December31,	December31,
			2023		2022
Current tax:
Current tax on profits for the year		$	127,577	$	125,181
Prior year income tax (over) underestimation	(		13,026)		6
Total current tax			114,551		125,187
Deferred tax:
Origination and reversal of temporary
differences	(		2,811)		1,007
Total deferred tax	(		2,811)		1,007
Income tax expense		$	111,740	$	126,194

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

follows:
			Years endedDecember31,
			2023			2022
Remeasurement of defined benefit obligations	($		794)	$		76
B.Reconciliation between income tax expense and accounting			profit
			Years ended	December31,
			2023			2022
Tax calculated based on profit before tax and statutory tax rate		$	109,480		$	106,951
Expenses disallowed by tax regulation			-			3,261
Tax exempt income by tax regulation	(		3,728)	(		2,097)
Temporary differences not recognised as deferred tax assets			11,877			18,073
Change in assessment of realisation of deferred tax assets			7,137			-
Prior year income tax overestimation	(		13,026)			6
Income tax expense		$	111,740		$	126,194

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C.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:
Recognised in other Recognised in comprehensive January1 profit or loss income Deferred tax assets: Unrealised exchange loss 3,696 $ 1,778 - Inventory valuation loss 6,120 1,032) ( - 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 2,547 990 - 94,477 $ 2,298 $ 794) ($ Deferred tax liabilities: Gains on valuation of financial instruments at fair value through profit or loss 513) ($ 513 - 93,964 $ 2,811 $ 794) ($ 2023	December31
	5,474 $ 5,088 590 729 80,563 3,537
	95,981 $
	- $
	95,981 $

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2022

Deferred tax assets: Unrealised exchange loss Inventory valuation 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	Recognised in other Recognised in comprehensive January1 profit or loss income December31 4,284 $ 588) ($ - $ 3,696 $ 3,784 2,336 - 6,120 2,422 2,422) ( - - 1,325 150 76 1,551 80,563 - - 80,563 2,517 30 - 2,547 94,895 $ 494) ($ 76 $ 94,477 $ - $ 513) ( - 513) ($ 94,895 $ 1,007) ($ 76 $ 93,964 $

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

Deductible temporary differences	December31,2023 310,196 $	December31,2022
		250,821 $

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

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

2020 2021 2022 2023		Current (Withinanyear) Non-current (Over 1year) - $ - $ 11,999 3,789 37,055 52,494 139,105 - 188,159 $ 56,283 $ December31,2023 Income taxpayable	Current (Withinanyear) Non-current (Over 1year) - $ - $ 11,999 3,789 37,055 52,494 139,105 - 188,159 $ 56,283 $ December31,2023 Income taxpayable	Current (Withinanyear) Non-current (Over 1year) - $ - $ 11,999 3,789 37,055 52,494 139,105 - 188,159 $ 56,283 $ December31,2023 Income taxpayable		Current (Withinanyear) Non-current (Over 1year) 21,025 $ 10,513 $ 11,999 17,998 110,840 - - - 143,864 $ 28,511 $ December31,2022 Income taxpayable	Current (Withinanyear) Non-current (Over 1year) 21,025 $ 10,513 $ 11,999 17,998 110,840 - - - 143,864 $ 28,511 $ December31,2022 Income taxpayable	Current (Withinanyear) Non-current (Over 1year) 21,025 $ 10,513 $ 11,999 17,998 110,840 - - - 143,864 $ 28,511 $ December31,2022 Income taxpayable
		Current (Withinanyear)				Current (Withinanyear)
		- $ 11,999 37,055 139,105 188,159 $		- $ 3,789 52,494 - 56,283 $		21,025 $ 11,999 110,840 - 143,864 $		10,513 $ 17,998 - - 28,511 $

• (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.10904533690 issued by the Ministry of Finance, R.O.C. on June 3, 2020.

• (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.

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(27) Earnings per share

Earnings per share of ordinary shares:

Basic earnings per share Profit for the year Diluted earnings per share Profit for the year Assumed conversion of all dilutive potential ordinary shares -Employees’ compensation Profit for the year plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit for the year Diluted earnings per share Profit for the year Assumed conversion of all dilutive potential ordinary shares -Employees’ compensation Profit for the year plus assumed conversion of all dilutive potential ordinary shares

Weighted average number of ordinary shares outstanding Earnings per share Amount aftertax (shareinthousands) (indollars) 435,661 $ 74,124 5.88 $ 435,661 74,124 - 162 435,661 74,286 5.86 $ YearendedDecember31,2023 Year ended December 31, 2022

Weighted average number of ordinary shares outstanding Earnings per share Amount aftertax (shareinthousands) (in dollars) 408,560 $ 74,124 5.51 $ 408,560 74,124 - 212 408,560 $ 74,336 5.50 $

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(28) Supplemental cash flow information

A. Investing activities with partial cash payments in property, plant and equipment:

		December	31,2023		December	31,2022
Purchase of property, plant and equipment		$	158,412		$	360,347
Add: Opening balance of payable on
equipment and construction			44,189			25,033
Opening balance of notes payable			102,954			-
Less: Ending balance of payable on equipment
and construction	(		43,263)	(		44,189)
Ending balance of notes payable	(		105,428)	(		102,954)
Cash paid during the year		$	156,864		$	238,237
Investing activities with partial cash payments in:
		December	31, 2023		December	31,2022
Purchase of financial assets at fair value through profit or loss		$	10,880		$	76,090
Add: Opening balance of securities payables			1,383			3,573
Less: Ending balance of securities payables			-	(		1,383)
Cash paid during the year		$	12,263		$	78,280

B. Investing activities with partial cash payments in:

(Remainder of page intentionally left blank)

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(29) Changes in liabilities from financing activities

At January 1, 2023 Changes in cash flow from financing activities Changes in other non-cash items At December 31, 2023 At January 1, 2022 Changes in cash flow from financing activities Changes in other non-cash items At December 31, 2022		Short-term notes and billspayable	Long-term borrowings (including currentportion)	Long-term borrowings (including currentportion)	Dividends payable	Lease liabilities (includingnon-current)	Liabilities from financing activities- gross 742,725 $ 379,459) ( 239,409 602,675 $ Liabilities from financing activities- gross
		- $ - - - $ Short-term notes and billspayable	736,032 $ 154,424) ( 1,596) ( 580,012 $ Long-term borrowings (including currentportion)		- $ 222,372) ( 222,372 - $ Dividends payable	6,693 $ 2,663) ( 18,633 22,663 $ Lease liabilities (includingnon-current)
	50,000 $ 50,000) ( - - $			646,025 $ 86,705 3,302 736,032 $	- $ 148,248) ( 148,248 - $	2,337 $ 2,668) ( 7,024 6,693 $	698,362 $ 114,211) ( 158,574 742,725 $

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7. Related Party Transactions

(1) Names of related parties and relationship

Names of related parties Relationship with the Company RISE BRIGHT HOLDINGS LTD. (RISE BRIGHT) The Company’s subsidiary UNITED SKILLS CO., LTD. (UNITED SKILLS) The Company’s subsidiary CHANG JIE TECHNOLOGY CO., LTD. (CHANG JIE) The Company’s subsidiary CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. The Company’s subsidiary (CHANGSHU FUTE) CHANGSHU XINXIANG AUTOMOBILE PARTS CO., The Company’s subsidiary (Note) LTD. (CHANGSHU XINXIANG) LIAONING HETAI AUTOMOTIVE PARTS CO., LTD. The Company’s subsidiary (LIAONING HETAI)

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

(2) Significant related party transactions

• A. Operating revenue

NXIANG AUTOMOBILE PARTS CO., LTD. nificant related party transactions Operating revenue
Sales of goods: Subsidiaries	2023 2022 12,188 $ 13,756 $ Years endedDecember31,
		13,756 $

Goods are sold based on the price that would be available to general customers. The credit terms to related parties and general customer are 30~90 days and 60~120 days after the monthly billings, respectively.

B. Purchases

respectively. Purchases
Purchases of goods: Subsidiaries	Years endedDecember31,
	2023 9,044 $	2022
		5,848 $

Goods are purchased based on the price that would be available to general customers. The transaction price and payment terms are not significantly different from those of general suppliers. The payment terms of general manufacturers are prepayments.

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C. Receivables from related parties

Accounts receivable: RISE BRIGHT LIAONING HETAI CHANG JIE Other receivables: Subsidiaries	December31,2023 December31,2022 7,241 $ 9,603 $ - 6,806 10,867 11,080 18,108 $ 27,489 $ 17,702 $ 17,720 $

The receivables from related parties arise mainly from sales of automatic equipment and goods. Other receivables arise mainly from technical service revenue. The receivables are unsecured in nature and bear no interest. There are no allowances for uncollectible accounts held against receivables from related parties.

• D. Prepayments (shown as other current assets)

CHANG JIE

December	31, 2023	December	31, 2022
$	8,353	$	11,758

The prepayments mainly represent the purchase of steel products from CHANG JIE.

E. Technical service revenue (shown as other income)

	Years ended	December 31,	December 31,
	2023		2022
CHANGSHU FUTE	7,477 $	$	7,370
Subsidiaries	6,729		11,056
	14,206 $	$	18,426

Technical service revenue refers to the supervision services rendered by the Company to CHANGSHU FUTE 、 LIAONING HETAI and CHANG JIE, including wages and salaries, meal expenses, insurance expenses and other expenses.

• F. Loans to/from related parties

• (a) Loans to related parties

  • i. Outstanding balance

ns to/from related parties Loans to related parties i. Outstanding balance
ii. Interest receivable CHANGSHU FUTE LIAONING HETAI RISE BRIGHT Subsidiaries	December31,2023 379,602 $ 121,776 107,468 608,846 $ December31,2023 6,812 $	December 31, 2022
		61,420 $ 127,885 107,485
		296,790 $
		December31,2022
		2,778 $

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iii. Interest income

. Interest income
		Years ended	December31,
		2023		2022
CHANGSHU FUTE	$	8,105	$	3,389
LIAONING HETAI		5,777	$	5,692
RISE BRIGHT		1,531		1,474
	$	15,413	$	10,555

The loans carry interest at 1.4%~5% and 1.4%~4.35% per annum for both the years ended December 31, 2023 and 2022, respectively.

• G. Endorsements and guarantees provided to related parties

Information on provision of endorsements and guarantees to others is provided in Note 13(1)B.

(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits	2023 2022 21,668 $ 23,862 $ 56 24 21,724 $ 23,886 $ Years endedDecember31,
		23,862 $ 24
		23,886 $

8. Pledged Assets

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

Pledged asset Property, plant and equipment Financial assets at amortised cost - non-current (shown as other non- current assets)	December31,2023 December31,2022 1,023,108 $ 1,096,571 $ 300 300 1,023,408 $ 1,096,871 $ Bookvalue	Purpose
		Short-term borrowings and long-term borrowings Natural gas for manufacturing

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contingencies

None.

(2) Commitments

As at December 31, 2023 and 2022, the Company’s capital expenditure contracted but not yet incurred in respect of machinery and equipment as well as construction of plants were $168,542 and $355,775, respectively.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

None.

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12. Others

(1) Capital management

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

• B. The Company’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).

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

• D. The key management of the Company monitors the capital structure every year, including capital costs and related risks, and the Company 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

bonds based on the advices from the management. nancial 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 instrument instrument Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable (including related parties) Other receivables (including related parties) Guarantee deposits paid	December 31, 2023 124,815 $ 128,299 $ 252,454 $ 126,190 16,821 312,097 642,863 6,754 1,357,179 $	December31,2022
		118,291 $
		75,247 $
		905,487 $ 300 14,275 254,684 321,000 3,854
		1,499,600 $

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==> picture [476 x 195] intentionally omitted <==

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

December 31, 2023 December 31, 2022
Financial liabilities
Financial liabilities at fair value
through profit or loss
-
Financial liabilities held for trading $ 2,952 $
Financial liabilities at amortised cost
Notes payable $ 178,103 $ 179,943
Accounts payable 20,981 12,954
Other payables 137,444 132,118
Long-term borrowings (including current portion) 580,013 736,032
$ 916,541 $ 1,061,047
Lease liabilities (including current portion) $ 22,663 $ 6,693
----- End of picture text -----

• B. Financial risk management policies

• (a) The Company’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 Company, 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 Company’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 Company 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 Company operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company used in various functional currency, primarily with respect to the United States Dollar and Chinese Ren Min Bi. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.

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• ii. The Company is required to hedge their entire foreign exchange risk exposure with the treasury. Exchange rate risk is measured through a forecast of highly probable United States Dollar and Chinese Ren Min Bi expenditures. Company uses natural hedge to decrease the risk exposure in the foreign currency through the treasury.

• iii. The Company hedges foreign exchange rate by using forward exchange contracts. However, the Company does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(2).

• iv. The Company’s businesses involve some non-functional currency operations (the Company’s functional currency: New Taiwan Dollars. 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 RMB : NTD Non-monetary items Investments accounted for using equity method USD : NTD (Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : NTD Non-monetary items Investments accounted for using equity method USD : NTD	Foreign currency amount (In thousands) Exchange rate Book value (NTD) 28,521 $ 30.71 875,737 $ 98,232 4.33 425,050 14,822 $ 30.71 455,103 $ Foreign currency amount (In thousands) Exchange rate Book value (NTD) 36,581 $ 30.71 1,123,403 $ 1,191 4.41 5,252 17,118 $ 30.71 525,694 $ December31,2023 December31,2022	Foreign currency amount (In thousands) Exchange rate Book value (NTD) 28,521 $ 30.71 875,737 $ 98,232 4.33 425,050 14,822 $ 30.71 455,103 $ Foreign currency amount (In thousands) Exchange rate Book value (NTD) 36,581 $ 30.71 1,123,403 $ 1,191 4.41 5,252 17,118 $ 30.71 525,694 $ December31,2023 December31,2022	Foreign currency amount (In thousands) Exchange rate Book value (NTD) 28,521 $ 30.71 875,737 $ 98,232 4.33 425,050 14,822 $ 30.71 455,103 $ Foreign currency amount (In thousands) Exchange rate Book value (NTD) 36,581 $ 30.71 1,123,403 $ 1,191 4.41 5,252 17,118 $ 30.71 525,694 $ December31,2023 December31,2022
		Exchange rate
	36,581 $ 1,191 17,118 $	30.71 4.41 30.71	1,123,403 $ 5,252 525,694 $

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• v. The total exchange (loss) gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2023 and 2022, amounted to $62,464 and $309,933, respectively.

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

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : NTD Non-monetary items Investments accounted for using equity method USD : NTD (Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : NTD Non-monetary items Investments accounted for using equity method USD : NTD	Year ended December31,2023	Year ended December31,2023	Year ended December31,2023
		Sensitivityanalysis
	Degree of Effect on Effect on other comprehensive variation profit or loss income 1% 8,757 $ - $ 1% 4,251 - 1% 4,551 $ Not applicable Year ended December31,2022		Effect on other comprehensive income
	Degree of variation 1% 1% 1%	Effect on Effect on other comprehensive profit or loss income 11,234 $ - $ 53 5,257 $ Not applicable Sensitivityanalysis
			- $ Not applicable

Price risk

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

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• ii. The Company’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, per-tax profit for the years ended December 31, 2023 and 2022 would have decreased/increased by $1,248 and $1,185, 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 increased/decreased 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 Company’s main interest rate risk arises from short-term and long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During years ended December 31, 2023 and 2022, the Company’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 $582 and $736, 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 Company 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 amortised 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 Company’s credit policy, the Company is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. The utilisation of credit limits is regularly monitored.

• iii.The Company 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. The Company used the forecastability to adjust historical and timely information to assess the default possibility of 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 61 days	61 to 120 days 1%~10% 843 $ 31) ( 812 $ 61 to 120 days 30%~50% 8,926 $ 4,858) ( 4,068 $	121 to 180 days 100% - $ - - $ 121 to 180 days 70%~99% - $ - - $		181 to 240 days	Over 241 days	Total
		0%~1% 266,872 $ - 266,872 $ Not past due	1%~10% 47,809 $ 4,683) ( 43,126 $ 1 to 61 days				100% - $ - - $ 181 to 240 days	100% 2,708 $ 2,708) ( - $ Over 241 days	318,232 $ 7,422) ($ 310,810 $ Total
		0%~1% 197,261 $ - 197,261 $	1%~5% 41,634 $ 1,493) ( 40,141 $				100% - $ - - $	100% 904 $ 904) ( - $	248,725 $ 7,255) ($ 241,470 $

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

			December31,2023	December31,2023	December31,2023	December31,2023
		Accounts	receivable		Notes receivable				Total
At January 1		$	7,111		$	144		$	7,255
Provision for impairment			704			85			789
Reversal of an impairment loss	(		600)	(		22)	(		622)
At December 31		$	7,215		$	207		$	7,422
			December31,2022
		Accounts	receivable		Notesreceivable				Total
At January 1		$	3,622		$	162			3,784
Provision for impairment			3,913			-			3,913
Reversal of an impairment loss			-	(		18)	(		18)
Written-off	(		424)			-	(		424)
At December 31		$	7,111		$	144		$	7,255

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the v and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’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 Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

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ii. The Company has the following undrawn borrowing facilities:

Expiring within one year	December31,2023 300,000 $	December31,2022
		300,000 $

iii. The table below analyses the Company’s non-derivative financial liabilities and netsettled 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 non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

cash flows.	cash flows.
Non-derivative financial liabilities: December 31, 2023 Less than 1year Notes payable 178,103 $ Accounts payable 20,981 Other payables 137,444 Lease liabilities 5,565 Long-term borrowings (including current portion) 155,083		Between 1 and2years	Between 2 and 3 years Between 3 and 5 years - $ - $ - - - - 4,943 7,355 152,380 61,578	Over 5 years	Total
December 31, 2023 Notes payable Accounts payable Other payables Lease liabilities Long-term borrowings (including current portion)
	178,103 $ 20,981 137,444 5,565 155,083	- $ - - 5,461 154,399		- $ - - - 61,936	178,103 $ 20,981 137,444 23,324 585,376

Non-derivative financial liabilities:

December 31, 2022 Notes payable Accounts payable Other payables Lease liabilities 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 - $ 179,943 $ - 12,954 - 132,118 - 6,845 92,287 761,883
	179,943 $ 12,954 132,118 2,299 176,790	- $ - - 1,739 155,796	- $ - - 1,630 153,963	- $ - - 1,177 183,047

(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 Company’s investment in listed stocks and over-the-counter stocks is included in Level 1.

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• 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 Company’s investment in foreign exchange swap contracts is included in Level 2.

Level 3: Unobservable inputs for the asset or liability.

• B. For information on the fair value of investment real estate measured at cost, please refer to Note 6. (10).

• 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 (including related parties), other receivables(including related parties), financial assets at amortised cost, guarantee deposits paid, short-term borrowings, notes payable, accounts payable (including related parties), other payables, long-term borrowings (including current portion) and guarantee deposits received.

• 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 at 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 December 31, 2022 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	Level 1 124,815 $ 128,299 $ - $ Level 1 115,727 $ 75,247 $	Level 2 - $ - $ 2,952 $ Level 2 2,564 $ - $	Level3 - $ - $ - $ Level3 - $ - $	Total
				124,815 $
				128,299 $
				2,952 $
				Total
				118,291 $
				75,247 $

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• (b) The methods and assumptions the Company used to measure fair value are as follows:

• i. The instruments the Company used market quoted prices as their fair values (that is, Level

• 1) are listed below by characteristics:

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: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital: 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 4.

• 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 5.

• (2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 6.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 7.

• 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 8.

14. Segment Information

Not applicable.

~65~

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

Loans to others Year ended December 31, 2023

No. (Note 1) Table 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)	Expressed in thousands of NTD (Except as otherwise indicated) Footnote Notes 5 and 8 Notes 6 and 9 Notes 7 and 10
													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

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

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

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

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

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 1290 109 135,445 $ 36,680 $ 91,619 128,299 $

Table 2, Page 1

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

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2023 (Note 1)	Turnover rate (Note5)	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date (Note6)	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

Expressed in thousands of NTD (Except as otherwise indicated)

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

Significant inter-company transactions during the reporting periods

Year ended December 31, 2023

Transaction

						Transaction
Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note3)
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 receivables Operating income Operating income	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

				Information on investees Year ended December 31, 2023	Information on investees Year ended December 31, 2023
Investor Table 5	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) Expressed in thousands of NTD
				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

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of 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 December 31,2023	Net income of investee as of December 31,2023	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2023(Note 2)	Book value of investments in Mainland China as of December 31,2023	Accumulated amount of investment income remitted back to Taiwan as of December 31,2023	Footnte
					Remitted to Mainland China	Remitted back to Taiwan
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.

Investment amount approved Ceiling on investments by the Investment in Mainland China Accumulated amount of remittance from Commission of the Ministry imposed by the Taiwan to Mainland China as of of Economic Affairs Investment Company name December 31, 2023 (MOEA) Commission of MOEA Y.C.C. PARTS MFG. CO., $ 1,336,275 $ 1,518,474 $ 2,425,177 LTD.

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	Ownership (%)
	Number of shares held
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

(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

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2023

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

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Statement 1
Item Description Amount
Cash on hand and petty cash $ 103
Cash in banks:
Checking accounts and NTD 18,492
demand deposits
USD 911,571.58 at exchange rate approximately 27,990
Foreign currency demand deposits
1 ： 30.705
Time deposits EUR 2.89 at exchange rate approximately 1 ： 33.98 -
RMB 33,619.81 at exchange rate approximately 1 ： 4.327 145
Short-term notes and bills - Re- USD 6,700,000 at exchange rate approximately 1 ：
Purchase 30.705 205,724
$ 252,454
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Statement 1,Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF ACCOUNTS RECEIVABLE DECEMBER 31, 2023

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

Statement 2

Statement 2
Item	Description Amount 18,108 $ 80,044 $ 34,920 34,354 24,905 19,654 107,327 301,204 $ 7,215) ( 293,989 $	Note
Related parties: Non-related parties: A client B client C client D client Eclient Others Less: Allowance for uncollectible accounts		None of the balance of each remaining client is greater than 5% of this account balance

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Statement 2,Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF INVENTORIES DECEMBER 31, 2023

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

Statement 3

Statement 3
Item	Description		Amount			Note
			Cost		Market Value
Materials: Work in progress Semi-finished goods Finished goods Merchandises Less: Allowance for inventory valuation losses and loss for obsolete and slow- moving inventories			113,928 $ 8,851 3,142 152,047 372 278,340 25,437) ( 252,903 $		111,497 $ 20,880 6,839 252,087 438 391,741 $	Replacement cost method Net Realisable Value Net Realisable Value Net Realisable Value Net Realisable Value

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Statement 3,Page1

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

STATEMENT OF FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT DECEMBER 31, 2023

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

Statement 4

Financial Total Interest Accumulated Fair Value Instrument Description Shares Face Value Amount Rate Cost Impairment Unit Price Total Amount Note

Information on Financial Assets Measured at Fair Value through profit or loss for the year is provided in 6(2) and table2.

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Statement 4,Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2023

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

Statement 5

Statement 5
Nane	BeginningBalance		Addition			Shares Amount Shares Percentage of Ownership Amount - 70,589) ($ - 100% 455,103 $ - - 5,000 100% 50,918 70,589) ($ 506,021 $ Decrease EndingBalance				Market Value or Net			Collateral	Note
	Shares	Amount	Shares		Amount	Shares				Unit Price		Total Amount
			- -		- $ 2,633 2,633 $	- -	100% 100%		455,103 $ 50,918 506,021 $	- 10		455,103 $ 50,918 $ 506,021	None None	Note 1 Note 2

Note 1: The investee is a limited company without shares. The shareholding ratio is calculated proportionately to the contributed amount. Note 2: The amounts of shares are expressed in thousands of New Taiwan dollars.

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Statement 5,Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31, 2023

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

Statement 6 Item Beginning Balance Addition Decrease Ending Balance Collateral Information on change in property, plant and equipment for the year is provided in Note 6(8).	Collateral	Note

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Statement 6,Page1

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

STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT

FOR THE YEAR ENDED DECEMBER 31, 2023

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

Statement 7

Item Beginning Balance Addition Decrease

Ending Balance

Collateral

Note

Information on change in property, plant and equipment for the year is provided in Note 6(8).

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Statement 7, Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF LONG-TERM BORROWINGS DECEMBER 31, 2023

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

Statement 8

Statement 8
Creditor Description Bank of Taiwan Medium- and long- term borrowings Bank of Taiwan Medium- and long- term borrowings Bank of Taiwan Medium- and long- term borrowings Bank of Taiwan Medium- and long- term borrowings Less: Long-term borrowings, current portion Less: Government grant discounts	Amount	ContractPeriod	InterestRate Collateral 1.25% None 1.78% Land 1.25% Machinery and equipment 1.25% Building	Note
	36,000 $ 206,597 276,000 63,238 581,835 133,167) ( 1,822) ( 446,846 $	2019.12.26-2026.12.15 2016.01.06-2031.01.06 2019.12.26-2026.12.15 2019.09.19-2029.12.15

Statement 8, Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2023

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

Statement 9
	Item Volume		Amount	Note
Auto parts	1,524	$	1,453,627
				None of the balance of
Others				each remaining item is greater than 5% of this
			12,153	account balance
			1,465,780
Less: Sales	discounts and
allowances as well
as sales returns		(	8,821)
		$	1,456,959

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Statement 9, Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF COST OF GOOD SOLD FOR THE YEAR ENDED DECEMBER 31, 2023

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

Statement 10

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Item Amount
----- End of picture text -----

Item		Amount
Beginning inventories	$	386
Add: Purchase for the year		9,660
Less: Ending inventories	(	372)
Cost of goods purchased and sold		9,674
Beginning raw materials		39,303
Add: Purchase for the year		363,396
Gain on physical inventory for raw materials		5,567
Transferred from work in progress		297
Less: Ending inventories	(	113,928)
Transfer to various expenses	(	1,714)
Loss on disposals	(	143)
Gain on material sold	(	23)
Raw materials used		292,755
Add: Direct labor		95,585
Manufacturing expense		406,509
Less: Unallocated fixed overhead	(	1,129)
Manufacturing cost		793,720
Add: Beginning work in progress		10,528
Transfer of finished goods		340,631
Less: Ending work in progress	(	11,993)
Loss on physical inventory for work in progress	(	3)
Loss on disposals	(	39)
Transfer raw materials	(	297)
Transferred to various expenses	(	182)
Cost of finished goods		1,132,365
Add: Beginning finished goods		138,650
Less: Ending finished goods	(	152,047)
Transfer to work in progress	(	340,631)
Transfer various expenses	(	2,910)
Transferred to property, plant and equipment	(	2,199)
Loss on physical inventory for finished goods	(	766)
Loss on disposals	(	45)
Cost of goods manufactured and sold		772,417
Cost of goods purchased and sold		9,674
Loss on slow-moving inventories and valuation loss	(	5,161)
Gain on physical inventories	(	4,798)
Loss on scrapping of inventories		227
Gain on material sold		23
Unallocated fixed manufacturing overhead		1,129
Cost adjustments		3
Operating costs	$	773,514

Statement 10, Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2023

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

Statement 11
	Item Description	Amount	Note
Depreciation	$	257,491
Utilities expense		57,667
Wages and salaries		25,433
			None of the balance of
Other expenses			each remaining client is greater than 5% of this
		65,918	account balance
	$	406,509

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Statement 11, Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

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

Statement 12

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Administrative Research and
Item Selling expenses expenses development expenses Note
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Item	Sellin	g expenses	e	xpenses	develop	ment expenses Note
Import/export	$	42,798	$	-	$	-
(customs) expense
Wages and salaries		32,303		31,585		11,168
Freight		19,309		-		762
Charity		751		4,478
Depreciation		2,348		8,206		13,355
Inspection fee		-		-		5,898

Other expenses 15,903 113,412 $	20,602 64,871 $	28,472 None of the balance of each remaining client is greater than 5% of this account balance 59,655 $

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Statement 12, Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF OTHER INCOME FOR THE YEAR ENDED DECEMBER 31, 2023

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

Statement 13

Item

Beginning Balance Addition Decrease Ending Balance Collateral Note Information on other income for the year is provided in Note 6(21).

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Statement 13, Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF OTHER INCOME AND EXPENSES, NET FOR THE YEAR ENDED DECEMBER 31, 2023

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

Statement 14

Item Description Amount Note

Information on other income and expenses for the year is provided in Note 6(22).

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Statement 14, Page1

Y.C.C. PARTS MFG. CO., LTD. STATEMENT OF FINANCE COST FOR THE YEAR ENDED DECEMBER 31, 2023

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

Statement 15

Item Description Amount Note Information on finance cost for the year is provided in Note 6(23).

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Statement 15, Page1

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

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION

FOR THE YEAR ENDED DECEMBER 31, 2023

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

Statement 16

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Function Year ended December 31, 2023 Year ended December 31, 2022
Classified as Classified as
Classified as Classified as
Operating Total Operating Total
Nature Operating Costs Operating Costs
Expenses Expenses
Information on employee benefits, depreciation and amortisation expenses for the year is provided in Notes 6(24) and (25).
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Statement 16, Page1