Y.C.C. - Interim / Quarterly Report 2022

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

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT SEPTEMBER 30, 2022 AND 2021

For the convenience of readers and for information purpose only, the auditors’ review 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 Chineselanguage auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

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

Introduction

We have reviewed the accompanying consolidated balance sheets of Y.C.C. Parts Mfg. Co., Ltd. and subsidiaries (the “Group”) as at September 30, 2022 and 2021, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the related statements of changes in equity and of cash flows for the nine months then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of review

Except as explained in the Basis for Qualified Conclusion, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65, “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for qualified conclusion

As explained in Note 4(3), the financial statements of insignificant consolidated subsidiaries were not reviewed by independent auditors. Total assets of these subsidiaries amounted to NT$846,611 thousand and NT$749,637 thousand, constituting 15.01% and 14.79% of the consolidated total assets as at September 30, 2022 and 2021, respectively, total liabilities amounted to NT$322,249 thousand and NT$265,884 thousand, constituting 18.02% and 16.86% of the consolidated total liabilities as at September 30, 2022 and 2021, respectively, and the total comprehensive income loss amounted to NT$2,960 thousand, NT$396 thousand, (NT$18,668) thousand and (NT$8,710) thousand, constituting 1.73%, 9.63%, (4.20%) and (16.32%) of the consolidated total comprehensive income (loss) for the three

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months and nine months then ended, respectively.

Qualified conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of consolidated subsidiaries been reviewed by independent auditors as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at September 30, 2022 and 2021, and of its consolidated financial performance for the three months and nine months then ended and its consolidated cash flows for the nine months then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Wang, Yu-Chuan

[Liu, Mei Lan ]

For and on behalf of PricewaterhouseCoopers, Taiwan November 11, 2022

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

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2022, DECEMBER 31, 2021 AND SEPTEMBER 30, 2021 (Expressed in thousands of New Taiwan dollars) (The balance sheets as of September 30, 2022 and 2021 are reviewed, not audited)

Assets	Notes	September 30, 2022 AMOUNT % `$` `893,290` `16` `148,425` `3` `233,199` `4` `40,653` `1` `564,263` `10` `4,596` `-` `308,582` `5` `51,306` `1` `2,244,314` `40` `79,807` `1` `300` `-` `2,909,396` `52` `143,389` `3` `15,153` `-` `6,426` `-` `102,717` `2` `138,750` `2` `3,395,938` `60` `$` `5,640,252` `100`	December 31, 2021 AMOUNT % `$` `635,392` `13` `117,251` `2` `199,416` `4` `55,055` `1` `441,993` `9` `10,792` `-` `313,690` `6` `52,099` `1` `1,825,688` `36` `48,308` `1` `300` `-` `2,830,766` `56` `140,137` `3` `15,477` `-` `11,147` `-` `108,171` `2` `71,871` `2` `3,226,177` `64` `$` `5,051,865` `100`	September 30, 2021	September 30, 2021
		AMOUNT `$` `893,290` `148,425` `233,199` `40,653` `564,263` `4,596` `308,582` `51,306` `2,244,314` `79,807` `300` `2,909,396` `143,389` `15,153` `6,426` `102,717` `138,750` `3,395,938` `$` `5,640,252`	AMOUNT `$` `635,392` `117,251` `199,416` `55,055` `441,993` `10,792` `313,690` `52,099` `1,825,688` `48,308` `300` `2,830,766` `140,137` `15,477` `11,147` `108,171` `71,871` `3,226,177` `$` `5,051,865`	AMOUNT `$` `607,924` `101,973` `252,685` `82,079` `433,971` `5,854` `326,315` `69,347` `1,880,148` `40,272` `300` `2,804,210` `140,434` `15,575` `6,971` `108,584` `71,756` `3,188,102` `$` `5,068,250`	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Current financial assets at amortised cost 1150 Notes receivable, net 1170 Accounts receivable, net 1200 Other receivables 130X Inventories 1470 Other current assets 11XX Current Assets Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 1535 Non-current financial assets at amortised cost 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Non-current assets 1XXX Total assets	6(1) 6(2) 6(3) 6(4) 6(4) 6(5) 8 6(6) 6(3) and 8 6(7) and 8 6(8) and 8 8 6(22) 6(9)				`12` `2` `5` `2` `9` `-` `6` `1`
					`37`
					`1` `-` `55` `3` `-` `-` `2` `2`
					`63`
					`100`

(Continued)

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2022, DECEMBER 31, 2021 AND SEPTEMBER 30, 2021

(Expressed in thousands of New Taiwan dollars) (The balance sheets as of September 30, 2022 and 2021 are reviewed, not audited)

					September 30, 2022	September 30, 2022			December 31, 2021	December 31, 2021			September 30, 2021	September 30, 2021
	Liabilities and Equity	Notes			AMOUNT	%			AMOUNT	%			AMOUNT	%
	Current liabilities
2100	Short-term borrowings	6(10)		`$`	`266,886`		`5`	`$`	`264,320`		`5`	`$`	`402,915`		`8`
2110	Short-term notes and bills payable				`-`		`-`		`50,000`		`1`		`-`		`-`
2120	Financial liabilities at fair value	6(2)
	through profit or loss - current				`-`		`-`		`12,111`		`-`		`4,560`		`-`
2130	Current contract liabilities	6(18)			`9,506`		`-`		`17,912`		`-`		`19,245`		`1`
2150	Notes payable				`161,080`		`3`		`92,502`		`2`		`84,684`		`2`
2170	Accounts payable				`171,948`		`3`		`157,602`		`3`		`151,343`		`3`
2200	Other payables	6(11)			`222,414`		`4`		`145,514`		`3`		`116,331`		`2`
2230	Current income tax liabilities	6(22)			`141,252`		`2`		`68,729`		`2`		`60,526`		`1`
2320	Long-term liabilities, current	6(12)
	portion				`158,829`		`3`		`105,835`		`2`		`112,797`		`2`
2399	Other current liabilities, others	6(8)			`2,027`		`-`		`1,703`		`-`		`1,751`		`-`
21XX	Current Liabilities				`1,133,942`	`20`			`916,228`	`18`			`954,152`	`19`
	Non-current liabilities
2540	Long-term borrowings	6(12)			`602,094`	`11`			`540,190`	`11`			`566,073`	`11`
2560	Current tax liabilities-non current	6(22)			`36,304`		`1`		`31,538`		`1`		`42,163`		`1`
2570	Deferred income tax liabilities	6(22)			`5,307`		`-`		`-`		`-`		`-`		`-`
2600	Other non-current liabilities	6(8)(13)(14)			`16,082`		`-`		`13,651`		`-`		`15,068`		`-`
25XX	Non-current liabilities				`659,787`	`12`			`585,379`	`12`			`623,304`	`12`
2XXX	Total Liabilities				`1,793,729`	`32`			`1,501,607`	`30`			`1,577,456`	`31`
	Equity attributable to owners of
	parent
	Share capital	6(15)
3110	Share capital - common stock				`741,239`	`13`			`741,389`	`15`			`741,389`	`15`
	Capital surplus	6(16)
3200	Capital surplus				`1,193,349`	`21`			`1,193,349`	`24`			`1,193,259`	`24`
	Retained earnings	6(17)
3310	Legal reserve				`343,211`		`6`		`329,574`		`6`		`329,574`		`7`
3320	Special reserve				`120,040`		`2`		`105,211`		`2`		`105,212`		`2`
3350	Unappropriated retained earnings				`1,440,968`	`25`			`1,194,447`	`24`			`1,135,908`	`22`
	Other equity interest
3400	Other equity interest		`(`		`94,647 ) (`		`1) (`		`120,040 ) (`		`3) (`		`122,258) (`		`3)`
3500	Treasury shares	6(15)			`-`		`- (`		`526 )`		`- (`		`526)`		`-`
31XX	Equity attributable to owners
	of the parent				`3,744,160`	`66`			`3,443,404`	`68`			`3,382,558`	`67`
36XX	Non-controlling interests				`102,363`		`2`		`106,854`		`2`		`108,236`		`2`
3XXX	Total equity				`3,846,523`	`68`			`3,550,258`	`70`			`3,490,794`	`69`
	Significant events after the balance	11
	sheet date
3X2X	Total liabilities and equity			`$`	`5,640,252`	`100`		`$`	`5,051,865`	`100`		`$`	`5,068,250`	`100`

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

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

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

(UNAUDITED)

v					Three months ended	Three months ended	Three months ended	September 30			Nine months ended	Nine months ended	Nine months ended	September 30
					2022			2021			2022			2021
	Items	Notes			AMOUNT	%		AMOUNT	%		AMOUNT	%		AMOUNT	%
4000	Sales revenue	6(18)		`$`	`513,461`	`100`	`$`	`462,340`	`100`	`$`	`1,518,686`	`100`	`$`	`1,443,711`	`100`
5000	Operating costs	6(5)(20)(21)	`(`		`377,518 ) (`	`74) (`		`357,840 ) (`	`77) (`		`1,132,670 ) (`	`75) (`		`1,104,358) (`	`77 )`
5900	Net operating margin				`135,943`	`26`		`104,500`	`23`		`386,016`	`25`		`339,353`	`23`
	Operating expenses	6(20)(21)
6100	Selling expenses		`(`		`40,480 ) (`	`8) (`		`25,477 ) (`	`6) (`		`102,535 ) (`	`7) (`		`89,715) (`	`6 )`
6200	General and administrative
	expenses		`(`		`33,086 ) (`	`7) (`		`28,994 ) (`	`6) (`		`119,479 ) (`	`8) (`		`89,193) (`	`6 )`
6300	Research and development
	expenses		`(`		`17,474 ) (`	`3) (`		`11,041 ) (`	`2) (`		`51,804 ) (`	`3) (`		`25,518) (`	`2 )`
6450	Impairment loss (impairment	12(2)
	gain and reversal of
	impairment loss) determined in
	accordance with IFRS 9		`(`		`6,225 ) (`	`1) (`		`2,517 ) (`	`1) (`		`7,852 )`	`- (`		`1,928)`	`-`
6000	Total operating expenses		`(`		`97,265 ) (`	`19) (`		`68,029 ) (`	`15) (`		`281,670 ) (`	`18) (`		`206,354) (`	`14 )`
6900	Operating profit				`38,678`	`7`		`36,471`	`8`		`104,346`	`7`		`132,999`	`9`
	Non-operating income and
	expenses
7100	Interest income				`3,873`	`1`		`526`	`-`		`5,519`	`-`		`2,150`	`-`
7010	Other income				`9,087`	`2`		`8,684`	`2`		`26,482`	`2`		`16,502`	`1`
7020	Other gains and losses	6(19)			`165,882`	`32 (`		`6,726 ) (`	`2)`		`415,399`	`27 (`		`35,287) (`	`2 )`
7050	Finance costs		`(`		`5,111 ) (`	`1) (`		`4,872 ) (`	`1) (`		`14,899 ) (`	`1) (`		`13,977) (`	`1 )`
7000	Total non-operating income
	and expenses				`173,731`	`34 (`		`2,388 ) (`	`1)`		`432,501`	`28 (`		`30,612) (`	`2 )`
7900	Profit before income tax				`212,409`	`41`		`34,083`	`7`		`536,847`	`35`		`102,387`	`7`
7950	Income tax expense	6(22)	`(`		`45,419 ) (`	`9) (`		`12,104 ) (`	`2) (`		`120,920 ) (`	`8) (`		`30,422) (`	`2 )`
8200	Profit for the period			`$`	`166,990`	`32`	`$`	`21,979`	`5`	`$`	`415,927`	`27`	`$`	`71,965`	`5`

(Continued)

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

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

(UNAUDITED)

					Three months ended	Three months ended	Three months ended	September 30			Nine months ended	Nine months ended	Nine months ended	September 30
					2022			2021			2022			2021
	Items	Notes			AMOUNT	%		AMOUNT	%		AMOUNT	%		AMOUNT	%
	Other comprehensive income
	Components of other
	comprehensive income that will
	not be reclassified to profit or
	loss
8316	Total expenses, by nature	6(6)		`$`	`4,625`	`1 ($`		`16,160) (`	`4)`	`$`	`16,799`	`1 ($`		`11,970) (`	`1)`
8310	Components of other
	comprehensive income
	(loss) that will not be
	reclassified to profit or loss				`4,625`	`1 (`		`16,160) (`	`4)`		`16,799`	`1 (`		`11,970) (`	`1)`
	Components of other
	comprehensive income that will
	be reclassified to profit or loss
8361	Financial statements
	translation differences of
	foreign operations		`(`		`881)`	`- (`		`1,705)`	`-`		`11,787`	`1 (`		`6,614)`	`-`
8360	Components of other
	comprehensive income that
	will be reclassified to profit
	or loss		`(`		`881)`	`- (`		`1,705)`	`-`		`11,787`	`1 (`		`6,614)`	`-`
8300	Total other comprehensive
	income (loss) for the period			`$`	`3,744`	`1 ($`		`17,865) (`	`4)`	`$`	`28,586`	`2 ($`		`18,584) (`	`1)`
8500	Total comprehensive income for
	the period			`$`	`170,734`	`33`	`$`	`4,114`	`1`	`$`	`444,513`	`29`	`$`	`53,381`	`4`
	Profit (loss), attributable to:
8610	Owners of parent			`$`	`168,696`	`32`	`$`	`23,741`	`5`	`$`	`423,611`	`28`	`$`	`77,836`	`5`
8620	Non-controlling interests		`(`		`1,706)`	`- (`		`1,762)`	`- (`		`7,684) (`	`1) (`		`5,871)`	`-`
	Total			`$`	`166,990`	`32`	`$`	`21,979`	`5`	`$`	`415,927`	`27`	`$`	`71,965`	`5`
	Comprehensive income (loss)
	attributable to:
8710	Owners of parent			`$`	`171,715`	`33`	`$`	`6,128`	`1`	`$`	`449,004`	`29`	`$`	`60,789`	`5`
8720	Non-controlling interests		`(`		`981)`	`- (`		`2,014)`	`- (`		`4,491)`	`- (`		`7,408) (`	`1)`
	Total			`$`	`170,734`	`33`	`$`	`4,114`	`1`	`$`	`444,513`	`29`	`$`	`53,381`	`4`
	Basic earnings per share	6(23)
9750	Basic earnings per share			`$`		`2.28`	`$`		`0.32`	`$`		`5.71`	`$`		`1.05`
9850	Diluted earnings per share			`$`		`2.27`	`$`		`0.32`	`$`		`5.69`	`$`		`1.05`

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

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

Nine months ended September 30,	Notes					Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent				Non-controlling interests
			Share capital - common stock	Capital surplus, additional paid- in capital		Retained Earnings			Other equity interest		Treasury shares		Total
						Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(6) 6(6) 6(17) 6(15)	`$ 741,389` `-` `-` `-` `-` `-` `-` `$ 741,389` `$ 741,389` `-` `-` `-` `-` `-` `-` `(` `150` `)` `$ 741,239`			`$ 1,193,259` `-` `-` `-` `-` `-` `-` `$ 1,193,259` `$ 1,193,349` `-` `-` `-` `-` `-` `-` `-` `$ 1,193,349`	`$ 317,795` `-` `-` `-` `11,779` `-` `-` `$ 329,574` `$ 329,574` `-` `-` `-` `13,637` `-` `-` `-` `$ 343,211`	`$ 119,480` `-` `-` `-` `-` `(` `14,268 )` `-` `$ 105,212` `$ 105,211` `-` `-` `-` `-` `14,829` `-` `-` `$ 120,040`	`$ 1,203,831` `77,836` `-` `77,836` `(` `11,779` `)` `14,268` `(` `148,248` `)` `$ 1,135,908` `$ 1,194,447` `423,611` `-` `423,611` `(` `13,637` `)` `(` `14,829` `)` `(` `148,248` `)` `(` `376` `)` `$ 1,440,968`	`($` `75,596 )` `-` `(` `5,077 )` `(` `5,077 )` `-` `-` `-` `($` `80,673 )` `($` `86,492 )` `-` `8,594` `8,594` `-` `-` `-` `-` `($` `77,898 )`	`($` `29,615 )` `-` `(` `11,970 )` `(` `11,970 )` `-` `-` `-` `($` `41,585 )` `($` `33,548 )` `-` `16,799` `16,799` `-` `-` `-` `-` `($` `16,749 )`	`($` `526` `)` `-` `-` `-` `-` `-` `-` `($` `526` `)` `($` `526` `)` `-` `-` `-` `-` `-` `-` `526` `$` `-`	`$ 3,470,017` `77,836` `(` `17,047 )` `60,789` `-` `-` `(` `148,248 )` `$ 3,382,558` `$ 3,443,404` `423,611` `25,393` `449,004` `-` `-` `(` `148,248 )` `-` `$ 3,744,160`		`$ 115,644` `(` `5,871 )` `(` `1,537 )` `(` `7,408 )` `-` `-` `-` `$ 108,236` `$ 106,854` `(` `7,684 )` `3,193` `(` `4,491 )` `-` `-` `-` `-` `$ 102,363`	`$ 3,585,661` `71,965` `(` `18,584` `)` `53,381` `-` `-` `(` `148,248` `)` `$ 3,490,794` `$ 3,550,258` `415,927` `28,586` `444,513` `-` `-` `(` `148,248` `)` `-` `$ 3,846,523`
2021 Balance at January 1, 2021 Profit (loss) for the period Other comprehensive loss for the period Total comprehensive income (loss) Appropriation and distribution of 2020 earnings Legal reserve Special reserve Cash dividends Balance at September 30, 2021 Nine months ended September 30,
2022 Balance at January 1, 2022 Profit (loss) for the period Other comprehensive income Total comprehensive income (loss) Appropriation and distribution of 2021 earnings Legal reserve Special reserve Cash dividends Retirement of treasury shares Balance at September 30, 2022

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

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense (including investment
property)

Depreciation expense - right-of-use assets

Amortisation expense

Expected credit impairment loss

Net gain on financial assets or liabilities at fair
value through profit or loss

Interest expense
Interest income
Government grant revenues

Dividend income

Proceeds from disposal of property, plant and
equipment

Unrealised foreign exchange gain
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable, net
Accounts receivable, net
Other receivables
Inventories
Other current assets
Changes in operating liabilities
Contract liabilities - current
Notes payable
Accounts payable
Other payables
Other current liabilities
Cash inflow generated from operations
Interest received
Interest paid
Dividend received
Income taxes paid
Net cash flows from operating activities Nine months ended September 30
Notes
2022
2021
$
536,847 $
102,387
6(20)
269,593
246,086
6(20)
5,602
4,216
6(20)
8,157
5,322
12(2)
7,852
1,928
6(2)(19)
(
55,140 ) (
25,283 )
14,899
13,977
(
5,519 ) (
2,150 )
6(13)
(
902 ) (
676 )
14(3)
(
5,532 ) (
4,036 )
6(19)
(
3,550 ) (
1,083 )
(
57,409 ) (
6,507 )
14,480 (
52,566 )
(
130,122 )
157,957
7,773 (
2,587 )
5,108 (
23,561 )
(
682 ) (
2,272 )
(
8,406 ) (
932 )
68,578 (
35,766 )
14,346 (
99,760 )
(
34,095 ) (
52,597 )
(
3,662 )
218
648,216
222,315
3,942
2,462
(
14,605 ) (
14,130 )
5,532
4,036
(
27,932 ) (
16,443 )
615,153
198,240

(Continued)

~9~

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through
profit or loss

Proceeds from disposal of financial assets at fair
value through profit or loss
(Increase) decrease in financial assets at amortised
cost
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and
equipmentt
Payment for capitalized interest

Acquisition of intangible assets
Decrease in other financial assets
Increase in other non-current assets
Increase in refundable deposits
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

Repayments of principal portion of lease liabilities
Cash dividends paid
Net cash flows used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Nine months ended September 30
Notes
2022
2021
6(24)
($
90,836 ) ($
102,121 )
102,691
20,987
(
33,783 )
12,722
6(24)
(
197,627 ) (
129,195 )
4,073
2,073
6(7)
(
1,193 ) (
1,627 )
(
962 ) (
1,432 )
1,475
19,351
(
35,937 ) (
43,574 )
(
1,800 ) (
15 )
(
253,899 ) (
222,831 )
226,117
749,128
(
233,484 ) (
675,514 )
6(25)
(
50,000 )
-
192,540
75,860
6(25)
(
79,376 ) (
109,626 )
6(25)
(
1,102 ) (
445 )
(
148,248 ) (
148,248 )
(
93,553 ) (
108,845 )
(
9,803 ) (
1,050 )
257,898 (
134,486 )
635,392
742,410
$
893,290 $
607,924

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

~10~

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

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

(Reviewed, not audited)

1. History and Organisation

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

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

These consolidated financial statements were authorised for issuance by the Board of Directors on August 9, 2022.

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”) as endorsed by the Financial Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’ Amendments to IAS 16, ‘Property, plant and equipment: proceeds before intended use’ Amendments to IAS 37, ‘Onerous contracts - cost of fulfilling a contract’ Annual improvements to IFRS Standards 2018-2020	January 1, 2022 January 1, 2022 January 1, 2022 January 1, 2022

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

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

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

~11~

	Effective date by
	International Accounting
New Standards,Interpretations andAmendments	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 arising from a single transaction’	January 1, 2023

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

(3) IFRSs issued by IASB but not yet endorsed by the FSC

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

==> picture [467 x 48] intentionally omitted <==

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

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

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

4. Summary of Significant Accounting Policies

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2021, except for the compliance statement, basis of preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34, ‘Interim financial reporting’ as endorsed by the FSC.
B. The consolidated financial statements should be read together with the consolidated financial statements for the year ended December 31, 2021.

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under

~12~

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 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 Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements:
- Basis for preparation of these consolidated financial statements are the same as that for the preparation of the consolidated financial statements as of and for the year ended December 31, 2021.
B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Main Business Activities		September 30,2022 December 31,2021 September 30,2021 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 89.44% 89.44% 89.44% Ownership(%)	September 30,2022 December 31,2021 September 30,2021 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 89.44% 89.44% 89.44% Ownership(%)	Description Note 1 Note 2
				September 30,2022	December 31,2021
The Company The Company RISE BRIGHT	RISE BRIGHT HOLDINGS LTD. (RISE BRIGHT) UNITED SKILLS CO., LTD. (UNITED SKILLS) CHINA FIRST HOLDINGS LTD. (CHINA FIRST)	Holding company and selling interior and exterior accessories of automobiles Manufacturing automobiles and their parts Holding company and selling interior and exterior accessories of automobiles		100.00% 100.00% 89.44%	100.00% 100.00% 89.44%

~13~

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

Ownership(%)
Name of Name of Main Business September December September
Investor Subsidiary Activities 30, 2022 31, 2021 30, 2021 Description
----- End of picture text -----

RISE	CHANG JIE	Producing and	99.83%	99.83%	99.78%	Note 1
BRIGHT	TECHNOLOGY CO.,	selling interior and				Note 2
	LTD. (CHANG JIE)	exterior
		accessories of
		automobiles
CHINA	CHANGSHU FUTE	Producing and	100.00%	100.00%	100.00%
FIRST	AUTOMOTIVE TRIM	selling interior and
	CO., LTD. (CHANGSHU	exterior
	FUTE)	accessories of
		automobiles
CHINA	LIAONING HETAI	Producing and	82.61%	82.61%	82.61%	Note 2
FIRST	AUTOMOTIVE PARTS	selling interior and
	CO.,LTD. (LIAONING	exterior
	HETAI)	accessories of
		automobiles
CHINA	CHANGSHU	Producing and	100.00%	100.00%	100.00%	Note 2
FIRST	XINXIANG	selling interior and
	AUTOMOBILE PARTS	exterior
	CO., LTD. (CHANGSHU	accessories of
	XINXIANG)	automobiles

Note 1:The Board of Directors resolved to increase its capital in the subsidiary, Rise Bright Holdings Ltd., in the amount of US$5.3 million (NT$158,179 thousand) on November 12, 2021, and then reinvested in Chang Jie Technology Co., Ltd.. The capital was remitted in December 2021. Due to the original shareholders of Chang Jie Technology Co., Ltd. not subscribing proportionately, Rise Bright Holdings Ltd.’s shareholding ratio increased to 99.83%.

Note 2:The financial statements of the entity as of and for the nine months ended September 30, 2022 and 2021 were not reviewed by independent auditors as the entity did not meet the definition of significant subsidiaries.
C. Subsidiaries not included in the consolidated financial statements
None.
D. Adjustments for subsidiaries with different balance sheet dates None.
E. Significant restrictions
None.
F. Subsidiaries that have non-controlling interests that are material to the Group None.

(4) Employee benefits

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate

~14~

derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.

(5) Income tax
- A. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
- B. The accounting policy of effect of changes in tax rate from tax regulation amendments for the interim period and the transactions with tax consequences are consistent. The effect is recognised in profit or loss, other comprehensive income or equity immediately in the interim period in which the change occurs.
Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty
There have been no significant changes as of September 30, 2022. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2021.
Details of Significant Accounts

(1) Cash and cash equivalents

tails of Significant Accounts Cash and cash equivalents
Cash on hand Time deposits Checking accounts and demand deposits Short-term notes and bills - Re- Purchase Interest rate range Time deposits	September30,2022 363 $ 311,901 581,026 - 893,290 $ 0.53%~3.25%	December31,2021 356 $ 129,327 477,775 27,934 635,392 $ 0.07%~0.41%	September 30, 2021
			384 $ 158,510 295,635 153,395
			607,924 $
			0.13%~0.35%

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. The time deposits maturing over three months and time deposits that are restricted and are not held for the purpose of meeting short-term cash commitments were presented as ‘financial assets at amortised cost’. Refer to Note 6(3) for details.
C. Information about the financial assets at amortised cost that were pledged to others as collaterals is provided in Notes 6(3) and 8.

~15~

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

==> picture [494 x 192] intentionally omitted <==

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

Items September 30, 2022December 31, 2021September 30, 2021
Financial assets mandatorily measured
at fair value through profit or loss
Listed stocks $ 108,146 $ 103,910 $ 105,694
Valuation adjustment 34,528 13,341 ( 3,721)
Total $ 142,674 $ 117,251 $ 101,973
Financial assets (liabilities) held for trading
Foreign exchange swap contracts $ 5,751 ($ 12,111) ($ 4,560)
Total financial assets at fair value through
$ 148,425 $ 117,251 $ 101,973
profit or loss
Total financial liabilities at fair value
through profit or loss $ - ($ 12,111) ($ 4,560)
----- End of picture text -----

A. The Group recognised financial assets and liabilities at fair value through profit or loss of $19,911, ($13,239), $55,140 and $25,283 for the three months and nine months ended September 30, 2022 and 2021, respectively.
B. Explanations of the transactions and contract information in respect of derivative financial assets and liabilities that the Group does not adopt hedge accounting are as follows:

Derivative financial assets (liabilities) Foreign exchange swap contracts Derivative financial assets (liabilities) Foreign exchange swap contracts Derivative financial assets (liabilities) Foreign exchange swap contracts	September30,2022	September30,2022
	Contract amount (Notionalprincipal) Contract period USD22,450 thousand 2022.09.20 ~ 2022.10.11 Contract amount (Notionalprincipal) Contract period USD 78,240 thousand 2021.09.03 ~ 2022.06.06 December31,2021 September30,2021
	Contract amount (Notionalprincipal)	Contract period
	USD71,740 thousand	2021.07.05 ~ 2022.01.27

C. The Group has no financial assets and liabilities at fair value through profit or loss pledged to others as collateral.
D. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

~16~

(3) Financial assets at amortised cost

==> picture [483 x 156] intentionally omitted <==

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

Items September 30, 2022 December 31, 2021 September 30, 2021
Current items:
Time deposits maturing over
three months $ 233,199 $ 18,967 $ 28,365
USD bonds sold under repurchase
agreement - 180,449 224,320
$ 233,199 $ 199,416 $ 252,685
Non-current items
Restricted time deposits $ 300 $ 300 $ 300
----- End of picture text -----

A. As at September 30, 2022, December 31, 2021 and September 30, 2021, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group were $233,199, $199,716 and $252,985, respectively.
B. Information about the financial assets at amortised cost that were pledged to others as collateral is provided in Note 8.
C. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2). The counterparties of the Group’s investments in certificates of deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

(4) Notes and accounts receivable, net

Notes and accounts receivable, net
	September		30,2022	December		31,2021	September		30,2021
Notes receivable		$	40,737		$	55,217		$	82,198
Less: Allowance for uncollectible
accounts	(		84)	(		162)	(		119)
		$	40,653		$	55,055		$	82,079
	September		30,2022	December		31,2021	September		30,2021
Accounts receivable		$	621,482		$	489,954		$	479,084
Less: Allowance for uncollectible
accounts	(		57,219)	(		47,961)	(		45,113)
		$	564,263		$	441,993		$	433,971

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

~17~

Not past due 0~60 days 61~120 days 121~180 days 181-240 days Over 241 days Not past due 0~60 days 61~120 days 121~180 days 181-240 days Over 241 days Not past due 0~60 days 61~120 days 121~180 days 181-240 days Over 241 days	Notes receivable 40,737 $ - - - - - 40,737 $ Notes receivable 55,217 $ - - - - - 55,217 $ September December September	Accounts receivable 30,2022
		506,477 $ 86,283 10,523 5,494 5,729 6,976
		621,482 $
		Accounts receivable 31,2021
		424,119 $ 45,462 4,590 2,750 324 12,709
		489,954 $
		30,2021
	Notes receivable 82,198 $ - - - - - 82,198 $	Accounts receivable 438,311 $ 13,781 3,025 11,338 227 12,402
		479,084 $

As of September 30, 2022, December 31, 2021 and September 30, 2021, the ageing analysis was based on past due date.

B. As of September 30, 2022, December 31, 2021 and September 30, 2021, the balances of accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2021, the balances of accounts receivable and notes receivable from contracts with customers amounted to $635,490 and $29,632, respectively.
C. As at September 30, 2022, December 31, 2021 and September 30, 2021, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes receivable and accounts receivable were $40,653, $55,055 and $82,079 as well as $564,263, $441,993 and $433,971, respectively.
D. Information relating to credit risk of notes receivable and accounts receivable is provided in Note 12(2).

~18~

(5) Inventories

nventories
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 Materials and supplies Work in progress Semi-finished goods Finished goods Merchandise Total	Cost 122,083 $ 39,238 28,399 191,187 7,147 388,054 $ Cost 98,198 $ 40,802 16,621 220,493 7,799 383,913 $ Cost 107,331 $ 33,145 24,811 214,875 22,522 402,684 $	Allowance for valuation loss 31,820) ($ 1,621) ( 7,294) ( 36,570) ( 2,167) ( 79,472) ($ Allowance for valuation loss 30,162) ($ 3,192) ( 5,587) ( 31,282) ( - 70,223) ($ Allowance for valuation loss 30,277) ($ 4,676) ( 8,291) ( 33,125) ( - 76,369) ($ September30,2022 December31,2021 September30,2021	Bookvalue
			90,263 $ 37,617 21,105 154,617 4,980
			308,582 $
			Book value
			68,036 $ 37,610 11,034 189,211 7,799
			313,690 $
			Bookvalue
			77,054 $ 28,469 16,520 181,750 22,522
			326,315 $

The cost of inventories recognised as expense for the period :

			Threemonths ended	Threemonths ended	September30,
			2022		2021
Cost of goods sold		$	370,962	$	271,278
Unallocated fixed overheads	(		540)		90,192
Loss on scrapping inventory			3,000		373
Loss on (gain on reversal of) market value decline and slow-moving inventories			3,872	(	3,067)
Loss (gain) on physical inventory			224	(	936)
		$	377,518	$	357,840

~19~

		Ninemonths ended	Ninemonths ended	Ninemonths ended	September30,
		2022			2021
Cost of goods sold	$	1,120,450		$	1,010,508
Unallocated fixed overheads		-			92,286
Loss on scrapping inventory		3,357			1,304
Loss on market value decline and obsolete and slow-moving inventories		7,806			6,914
Loss (gain) on physical inventory		1,057	(		6,654)
	$	1,132,670		$	1,104,358

The Group reversed from a previous inventory write-down because inventories with decline in market value were partially sold by the Group for the three months ended September 30, 2021.

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

Items		September	30, 2022		December	31, 2021		September	30,2021
Non-current items:
Equity instruments
Listed stocks		$	96,556		$	81,856		$	81,857
Valuation adjustment	(		16,749)	(		33,548)	(		41,585)
		$	79,807		$	48,308		$	40,272

A. The Group has elected to classify investments that are considered to be strategic investments or steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $79,807, $48,308 and $40,272 as at September 30, 2022, December 31, 2021 and September 30, 2021, 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:

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income Dividend income recognised in profit or loss held at end of period	2022 2021 4,625 $ 16,160) ($ - $ 2,993 $ Threemonths ended September30,

~20~

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income Dividend income recognised in profit or loss held at end of period	2022 2021 16,799 $ 11,970) ($ - $ 2,993 $ Ninemonths ended September30,

C. As at September 30, 2022, December 31, 2021 and September 30, 2021, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group were $79,807, $48,308 and $40,272, respectively.
D. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

(Remainder of page intentionally left blank)

~21~

(7) Property, plant and equipment

Property, plant and equipment
							Nine		months endedSeptember			30,2022
		Beginningbalance				Additions		Decreases			Transfers	Net exchange		differences			Endingbalance
Cost
Land		$	956,365		$	-			- $	$	-		$	-		$	956,365
Buildings and structures			1,551,839			7,879	(		3,732)		57,912			11,730			1,625,628
Machinery and equipment			1,247,878			52,016	(		35,523)		33,164			12,260			1,309,795
Molding equipment			1,950,026			101,075	(		11,524)		43,761			1,067			2,084,405
Transportation equipment			32,421			704	(		3,220)		-			51			29,956
Furniture equipment			3,153			181	(		39)		-			28			3,323
Other equipment			181,171			2,175	(		3,910)		8,338			1,511			189,285
Unfinished construction and
equipment under acceptance			255,075			93,358			-	(	73,711)			3,354			278,076
		$	6,177,928		$	257,388	($		57,948)	$	69,464		$	30,001		$	6,476,833
Accumulated Depreciation
Buildings and structures	($		831,855)	($		51,426)		$	3,732	$	-	($		2,819)	($		882,368)
Machinery and equipment	(		803,344)	(		73,664)			35,000		-	(		4,745)	(		846,753)
Molding equipment	(		1,547,657)	(		128,952)			11,524		-	(		436)	(		1,665,521)
Transportation equipment	(		27,784)	(		1,544)			3,220		-	(		34)	(		26,142)
Furniture equipment	(		2,564)	(		214)			39		-	(		17)	(		2,756)
Other equipment	(		133,958)	(		13,080)			3,910		-	(		769)	(		143,897)
	(		3,347,162)	($		268,880)		$	57,425	$	-	($		8,820)	(		3,567,437)
Total		$	2,830,766													$	2,909,396

~22~

							Ninemonths ended	Ninemonths ended	Ninemonths ended	Ninemonths ended	September30,2021	September30,2021	September30,2021
		Beginning balance				Additions			Decreases		Transfers	Net exchange		differences			Ending balance
Cost
Land		$	956,365		$	-		$	-	$	-		$	-		$	956,365
Buildings and structures			1,548,691			4,252	(		5,031)		1,302	(		5,395)			1,543,819
Machinery and equipment			1,207,914			35,566	(		11,917)		47,902	(		5,531)			1,273,934
Molding equipment			1,678,794			34,047	(		702)		181,016	(		366)			1,892,789
Transportation equipment			32,456			-	(		24)		-	(		27)			32,405
Furniture equipment			3,195			68	(		132)		-	(		14)			3,117
Other equipment			181,056			2,713	(		7,331)		568	(		552)			176,454
Unfinished construction and
equipment under acceptance			259,837			40,960			-	(	55,780)	(		1,157)			243,860
		$	5,868,308		$	117,606	($		25,137)	$	175,008	($		13,042)		$	6,122,743
Accumulated Depreciation
Buildings and structures	($		767,777)	($		52,327)		$	5,012	$	-		$	1,148	($		813,944)
Machinery and equipment	(		779,366)	(		72,416)			10,992		-			2,346	(		838,444)
Molding equipment	(		1,402,903)	(		104,586)			702		-			168	(		1,506,619)
Transportation equipment	(		25,534)	(		1,742)			24		-			15	(		27,237)
Furniture equipment	(		2,449)	(		197)			132		-			7	(		2,507)
Other equipment	(		123,178)	(		14,121)			7,285		-			232	(		129,782)
	(		3,101,207)	($		245,389)		$	24,147	$	-		$	3,916	(		3,318,533)
		$	2,767,101													$	2,804,210

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

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

~23~

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:

	September30,2022	September30,2022	September30,2022	December 31, 2021	December 31, 2021	December 31, 2021	September 30, 2021	September 30, 2021	September 30, 2021
Amount capitalised	$		1,193	$		1,972	$		1,627
Range of the interest rates
for capitalisation		0.95%			0.81%			0.81%

(8) Lease transactions – lessee
A. The Group leases various assets including land, structures and transportation equipment. Rental contracts are typically made for periods of 1 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes. Upon expiry of the lease, the terms of lease agreements do not give priority rights to renew the lease or purchase the property.
B. Short-term leases with a lease term of 12 months or less comprise certain buildings. Low-value assets comprise transportation equipment.
C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

September30,2022 December 31, 2021 September 30, 2021 Carrying amount Carrying amount Carrying amount 136,908 $ 136,195 $ 136,027 $ 6,481 3,942 4,407 143,389 $ 140,137 $ 140,434 $ 2022 2021 Depreciationcharge Depreciationcharge 1,042 $ 1,004 $ 1,240 346 2,282 $ 1,350 $ 2022 2021 Depreciation charge Depreciation charge 3,108 $ 3,035 $ 2,494 1,181 5,602 $ 4,216 $ Threemonths ended September30, Ninemonths ended September30,	September30,2022 December 31, 2021 September 30, 2021 Carrying amount Carrying amount Carrying amount 136,908 $ 136,195 $ 136,027 $ 6,481 3,942 4,407 143,389 $ 140,137 $ 140,434 $ 2022 2021 Depreciationcharge Depreciationcharge 1,042 $ 1,004 $ 1,240 346 2,282 $ 1,350 $ 2022 2021 Depreciation charge Depreciation charge 3,108 $ 3,035 $ 2,494 1,181 5,602 $ 4,216 $ Threemonths ended September30, Ninemonths ended September30,	September 30, 2021
		Carrying amount
$		136,027 $ 4,407
$		140,434 $

	2022 Depreciation charge 3,108 $ 2,494 5,602 $

~24~

D. For the three months and nine months ended September 30, 2022, the additions to right-of-use assets were $5,034. For the three months and nine months ended September 30, 2021, there were no additions to right-of-use assets.
E. Information on profit or loss in relation to lease contracts are as follows:

==> picture [453 x 215] intentionally omitted <==

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

Three months ended September 30,
2022 2021
Items affecting profit or loss
Interest expense on lease liabilities $ 20 $ 7
Expense on short-term lease contracts $ 111 $ 187
Expense on leases of low-value assets $ 626 $ 135
Nine months ended September 30,
2022 2021
Items affecting profit or loss
Interest expense on lease liabilities $ 54 $ 22
Expense on short-term lease contracts $ 488 $ 611
Expense on leases of low-value assets $ 947 $ 446
----- End of picture text -----

F. As of September 30, 2022, December 31, 2021 and September 30, 2021, the balances of lease liabilities -current and lease liabilities - non-current are as follows (shown as other current liabilities - others and other non-current liabilities):

Lease liabilities - current Lease liabilities - non-current	September30,2022 1,430 $ 4,839 $	December31,2021 601 $ 1,736 $	September 30, 2021
			599 $
			1,887 $

For the three months and nine months ended September 30, 2022 and 2021, the Group’s total cash outflow for leases were $1,149, $478, $2,591 and $1,524 respectively.

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

(9) Other non-current assets

Prepayments for business facilities and construction Guarantee deposits paid Others	September30,2022 December31,2021 131,253 $ 65,368 $ 4,095 2,295 3,402 4,208 138,750 $ 71,871 $	September30,2021 64,014 $ 2,293 5,449 71,756 $

~25~

(10) Short-term borrowings

==> picture [468 x 90] intentionally omitted <==

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

Type of borrowings September 30, 2022 December 31, 2021 September 30, 2021
-
Unsecured borrowings $ $ 41,525 $ 48,884
Secured borrowings 266,886 222,795 354,031
$ 266,886 $ 264,320 $ 402,915
Interest rate range 4.35% 1.99%~4.35% 0.96%~4.15%
----- End of picture text -----

(11) Other payables

Other payables
	September	30,2022	December	31,2021	September	30,2021
Salaries and bonus payable	$	49,688	$	33,865	$	33,034
Machinery and equipment payable		77,543		48,234		22,958
Directors’ remuneration payable		11,209		4,017		2,841
Employees’ compensation payable		11,209		6,529		4,699
Transportation fee payable		3,223		6,260		5,771
Payable on transportation expenses		-		3,573		-
Others		69,542		43,036		47,028
	$	222,414	$	145,514	$	116,331

(Remainder of page intentionally left blank)

~26~

- (12) Long term borrowings

g-term borrowings
Type ofborrowings	Borrowing period	Repayment term		September30,2022
Long-term bank
borrowings
Unsecured borrowings	From November 26,	The loan is fully disbursed		$	26,333
	2018 to November	once the contract is signed;
	26, 2023	interest is repayable monthly;
		principal is repayable
		monthly in 48 installments
		with 1-year grace period on
		principal only
Unsecured borrowings	From August 31,	Starting from August 15,			13,329
	2016 to February 15,	2019, principal is repayable
	2023	quarterly; interest is
		repayable monthly
Unsecured borrowings	From December 26,	The loan is disbursed within			48,000
	2019 to December	three years after contract is
	26, 2026	signed; interest is repayable
		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			243,055
	2016 to January 6,	repayable monthly after a 3-
	2031	year grace period
Secured borrowings	From December 26,	The loan is disbursed within
	2019 to September	three years after contract
	16, 2028	signed; interest is repayable
		monthly; principal is
		repayable monthly in 48
		installments with a 3-year
		grace period on principal
		only			432,000
				$	762,717
Less: Current portion			(		158,829)
Less: Discount on
government grants			(		1,794)
				$	602,094
Interest rate range					0.88%~1.41%

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Type ofborrowings
Borrowing period
Repayment term
Long-term bank
borrowings
Unsecured borrowings From November
26, 2018 to
November 26,
2023
The loan is fully disbursed once the
contract is signed; interest is
repayable monthly; principal is
repayable monthly in 48
installments with 1-year grace
period on principal only
Unsecured borrowings From August 31,
2016 to February
15, 2023
Starting from August 15, 2019,
principal is repayable quarterly;
interest is repayable monthly
Unsecured borrowings From December
26, 2019 to
December 26,
2026
The loan is disbursed within three
years after contract is signed;
interest is repayable monthly;
principal is repayable monthly in 48
installments with a 3-year grace
period on principal only
Secured borrowings
From January 6,
2016 to January 6,
2031
Principal and interest are repayable
monthly after a 3-year grace period
Secured borrowings
From December
26, 2019 to
September 16,
2028
The loan is disbursed within three
years after contract signed; interest
is repayable monthly; principal is
repayable monthly in 48
installments with a 3-year grace
period on principal only
Less: Current portion
Less: Discount on
government grants
Interest rate range

December31,2021
63,833
$ 33,330
18,300
264,931
269,160
649,554
$ 105,835)
(
3,529)
(
540,190
$ 0.75%~1.00%

~28~

Type ofborrowings	Borrowing period	Repayment term	September30,2021	September30,2021
Long-term bank
borrowings
Unsecured borrowings	From November	The loan is fully disbursed once the	$	76,334
	26, 2018 to	contract is signed; interest is
	November 26,	repayable monthly; principal is
	2023	repayable monthly in 48
		installments with 1-year grace
		period on principal only
Unsecured borrowings	From August 31,	Starting from August 15, 2019,		39,997
	2016 to February	principal is repayable quarterly;
	15, 2023	interest is repayable monthly
Unsecured borrowings	From September	Starting from October 14, 2018,		6,962
	14, 2017 to	principal and interest are repayable
	September 14,	monthly in 48 installments
	2022
Unsecured borrowings	From December	The loan is disbursed within three		18,300
	26, 2019 to	years after contract is signed;
	December 26,	interest is repayable monthly;
	2026	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 repayable		272,222
	2016 to January 6,	monthly after a 3-year grace period
	2031
Secured borrowings	From December	The loan is disbursed within three
	26, 2019 to	years after contract signed; interest
	December 26,	is repayable monthly; principal is
	2026	repayable monthly in 48
		installments with a 3-year grace
		period on principal only		269,160
			$	682,975
Less: Current portion			(	112,797)
Less: Discount on
government grants			(	4,105)
			$	566,073
Interest rate range				0.75%~1.90%

Interest rate range

(13) Government grants

As of September 30, 2022, the Group obtained government concessional loans under the “Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan” from the Bank of Taiwan in the amounts of $269,160 and $18,300, respectively, for supporting capital expenditure and working capital. Such loans will mature in September 2028. The fair values for the loans were $262,883 and $17,871, respectively which were calculated at a market rate of 1.25%.

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The differences between the amount obtained and the fair value were $6,277 and $429, 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 $902 and $676, respectively, for the nine months ended September 30, 2022 and 2021.

(14) Pensions

A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an 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) For the aforementioned pension plan, the Group recognised pension costs of $52, $58, $155 and $178 for the three months and nine months ended September 30, 2022 and 2021, respectively.
(c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2022 amount to $234.
B. (a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
(b) The Company’s mainland China subsidiaries, have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. The contribution percentage as of September 30, 2022 and 2021 were both 16%. Other than the monthly contributions, the Group has no

~30~

further obligations.

  - (c) For the aforementioned pension plan, the Group recognised pension costs of $2,959, $3,937, $10,748 and $10,587 for the three months and nine months ended September 30, 2022 and 2021, respectively.

(15) Share capital
A. As of September 30, 2022, 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:

			2022		2021
		Number of thousand shares		Number of thousand shares
At January 1		$	74,139	$	74,139
Treasury shares			-	(	15)
Retirement of treasury shares	(		15)		-
At September 30		$	74,124	$	74,124

D. Treasury shares
(a) Reason for share reacquisition and movements in the number of the Company’s treasury shares are as follows:

Name of company holding the shares	Reason for reacquisition		September	September	Carrying amount 30,2022		December	December	Carrying amount 31,2021		Number of thousand shares Carrying amount 15 526 $ September30,2021	Number of thousand shares Carrying amount 15 526 $ September30,2021
			Number of thousand shares				Number of thousand shares				Number of thousand shares
The Company	To be reissued to employees		-		- $		15		526 $		15	526 $

(b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.
(c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.
(d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the

~31~

employees within five years from the reacquisition date and shares not reissued to be retired. Treasury shares to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition.

(16) 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 paid-in capital each year. However, capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

September 30, 2022 December 31, 2021 September 30, 2021

==> picture [477 x 186] intentionally omitted <==

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

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 $ 1,163,298
Difference between consideration
and carrying amount of subsidiaries
acquired $ 2,125 $ 2,125 $ 2,035
Used to offset accumulated deficits
only (Note 2)
Changes in ownership interests
in subsidiaries $ 27,926 $ 27,926 $ 27,926
----- End of picture text -----

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.

(17) 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. On August 30, 2021, the shareholders approved to adopt a resolution made by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors in order

~32~

to distribute dividends and bonuses, legal reserve and capital reserve, in whole or in part, in the form of cash, and in addition thereto a report of such distribution should be submitted to the shareholders. However, if the distribution is made by issuing new shares, the distribution should be implemented after obtaining approval from the shareholders.

C. 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.
D. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
E. (a) In accordance with 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.
(b) The amounts previously set aside by the Company as special reserve in accordance with Order No. Financial-Supervisory-Securities-Corporate-1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.
F. The appropriations of 2021 and 2020 earnings had been resolved at the shareholders’ meeting on May 27, 2022 and August 30, 2021, respectively. Details are summarized below:

Year ended December 31	Year ended December 31	Year ended December 31
Dividend per Dividend per share share Amount (indollars) Amount (indollars) 13,637 $ 11,779 $ 14,829 14,269) ( 148,248 2.00 $ 148,248 2.00 $ 2021 2020	2020
Amount 13,637 $ 14,829 148,248		Dividend per share (indollars)
		2.00 $

G. Refer to Note 6 (21) for further information relating to employees’ compensation and directors’ remuneration.

~33~

(18) Operating revenue

A. Disaggregation of revenue from contracts with customers

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

Auto parts Others Auto parts Others Auto parts Others Auto parts Others		Domestic operating entities Overseas operating entities Total $ 294,634 $ 194,637 489,271 $ 1,964 22,226 24,190 $296,598 $216,863 513,461 $ Domestic operating entities Overseas operating entities Total $ 266,322 $ 168,866 435,188 $ 7,617 19,535 27,152 $273,939 $188,401 462,340 $ Threemonths ended September30,2022 Threemonths ended September30,2021 Ninemonths ended September30,2022	Domestic operating entities Overseas operating entities Total $ 294,634 $ 194,637 489,271 $ 1,964 22,226 24,190 $296,598 $216,863 513,461 $ Domestic operating entities Overseas operating entities Total $ 266,322 $ 168,866 435,188 $ 7,617 19,535 27,152 $273,939 $188,401 462,340 $ Threemonths ended September30,2022 Threemonths ended September30,2021 Ninemonths ended September30,2022	Domestic operating entities Overseas operating entities Total $ 294,634 $ 194,637 489,271 $ 1,964 22,226 24,190 $296,598 $216,863 513,461 $ Domestic operating entities Overseas operating entities Total $ 266,322 $ 168,866 435,188 $ 7,617 19,535 27,152 $273,939 $188,401 462,340 $ Threemonths ended September30,2022 Threemonths ended September30,2021 Ninemonths ended September30,2022
		Domestic operating entities		Total
				1,491,156 $ 27,530
				1,518,686 $

B. Contract liabilities

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

September 30, 2022 December 31, 2021 September 30, 2021 January 1, 2021

Contract liabilities: Contract liabilities - advance sales receipts $ 9,506 $ 17,912 $ 19,245 $ 20,177

For the three months and nine months ended September 30, 2022 and 2021, revenue recognised that were included in the contract liability balance at the beginning of the period amounted to $1,984, $390, $6,439 and $2,653, respectively.

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(19) Other gains and losses

Other gains and losses
			Three months ended			September30,
			2022			2021
Gains on disposal of property, plant and equipment		$	2,030		$	14
Foreign exchange gains			163,552			6,874
Gains (losses) on financial assets and liabilities at fair value through profit or loss			19,911	(		13,239)
Other losses	(		19,611)	(		375)
		$	165,882	($		6,726)
			Nine months ended	September 30,
			2022			2021
Gains on disposal of property, plant and equipment		$	3,550		$	1,083
Foreign exchange gains (losses)			376,664	(		60,196)
Gains on financial assets and liabilities at fair value through profit or loss			55,140			25,283
Other losses	(		19,955)	(		1,457)
		$	415,399	($		35,287)

(20) Expenses by nature

Expenses by nature
Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Depreciation charges on investment property Amortisation Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Depreciation charges on investment property Amortisation	Three months endedSeptember30,
	2022 2021 78,251 $ 77,028 $ 90,167 85,599 2,282 1,350 238 230 2,791 1,633 173,729 $ 165,840 $ Nine months endedSeptember30,	2021
		77,028 $ 85,599 1,350 230 1,633
		165,840 $
	2022 268,063 $ 268,880 5,602 713 8,157 551,415 $	2021
		254,689 $ 245,389 4,216 697 5,322
		510,313 $

~35~

(21) Employee benefit expense

Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses	2022 2021 64,813 $ 64,481 $ 5,036 4,796 3,011 2,811 5,391 4,940 78,251 $ 77,028 $ 2022 2021 227,938 $ 214,497 $ 15,041 14,548 10,903 10,765 14,181 14,879 268,063 $ 254,689 $ Threemonths ended September30, Nine months ended September 30,

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 three months and nine months ended September 30, 2022 and 2021, the accrued employees’ compensation and directors’ remuneration were as follows:

Employees’ compensation Directors’ remuneration Employees’ compensation Directors’ remuneration	Three months ended September 30,	Three months ended September 30,
	2022 2021 4,160 $ 918 $ 4,160 678 8,320 $ 1,596 $ Nine months endedSeptember30,	2021
		918 $ 678
		1,596 $
	2022 11,209 $ 11,209 22,418 $	2021
		2,841 $ 2,841
		5,682 $

For the nine months ended September 30, 2022 and 2021, the employees’ compensation and directors’ remuneration were estimated and accrued based on 2.0% and 2.5%, respectively, of distributable profit of current year as of the end of reporting period.

C. Employees’ compensation and directors’ remuneration of 2021 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2021 financial statements.

~36~

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.

(22) Income tax

A. Income tax expense

Components of income tax expense

e tax ome tax expense mponents of income tax expense
		Three months ended		September30,
		2022		2021
Current tax:
Current tax on profits for the period	$	47,311	$	12,293
Prior year income tax overestimation		-		-
Origination and reversal of
temporary differences	(	1,892)	(	189)
Income tax expense	$	45,419	$	12,104

		Nine months ended September 30,
		2022		2021
Current tax:
Current tax on profits for the period	$	109,783	$	24,117
Prior year income tax under (over)estimation		6	(	398)
Origination and reversal of
temporary differences		11,131		6,703
Income tax expense	$	120,920	$	30,422

B. The Company’s and domestic subsidiaries’ income tax returns through 2020 have been assessed and approved by the Tax Authority.

As of September 30, 2022, the current income tax liabilities and non-current income tax liabilities amounted to $141,252 and $36,304, respectively. Relevant information is as follows:

September30,2022	September30,2022	December31,2021	December31,2021	September30,2021	September30,2021
Income taxpayable		Income taxpayable		Income taxpayable
Current (within oneyear)	Non-current (over oneyear)	Current (within oneyear)	Non-current (over oneyear)	Current (within oneyear)	Non-current (over oneyear)
$ - 21,025 11,999 108,228 141,252 $	$ - 15,306 20,998 - 36,304 $	$ 11,695 21,025 36,009 - 68,729 $	$ - 31,538 - - 31,538 $	$ 15,355 21,025 - - 36,380 $	$ 5,369 36,794 - - 42,163 $

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

~37~

(b) 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.
(c) The Company incurred an income tax of $48,654 from the 2019 profit-seeking enterprise income tax (including the filing of unappropriated retained earnings of 2018), 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.

(23) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares -Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary shares outstanding Earnings per share Amount aftertax (shareinthousands) (in dollars) 168,696 $ 74,124 2.28 $ 168,696 74,124 - 88 168,696 $ 74,212 2.27 $ Three months endedSeptember30,2022
		2.28 $
		2.27 $

~38~

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares -Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares -Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Threemonths ended September30,2021	Threemonths ended September30,2021
	Weighted average number of ordinary shares outstanding Earnings per share Amount aftertax (shareinthousands) (indollars) 23,741 $ 74,124 0.32 $ 23,741 74,124 81 23,741 $ 74,205 0.32 $ Ninemonths ended September30,2022	Earnings per share (indollars)
		0.32 $
		0.32 $
	Weighted average number of ordinary shares outstanding Amount aftertax (shareinthousands) 423,611 $ 74,124 423,611 74,124 - 324 423,611 $ 74,448	Earnings per share (indollars)
		5.71 $
		5.69 $

~39~

(24)

The number of weighted-average outstanding shares is included for assumed conversion of all
dilutive potential ordinary shares at the calculation of diluted earnings per share, based on the
assumption that employees’ compensation will all be distributed in the form of shares.
Supplemental cash flow information
A. Investing activities with partial cash payments:
Weighted average
number of ordinary
shares outstanding
Earnings per
share
Amount aftertax
(shareinthousands)
(indollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent
77,836
$ 74,124
1.05
$
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent
77,836
74,124

Assumed conversion of all
dilutive potential ordinary shares
-Employees’ compensation
-

117
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all dilutive
potential ordinary shares
77,836
$ 74,241
$ 1.05
$ Nine months endedSeptember30,2021
Ninemonths ended September30,2022
Purchase of property, plant and equipment
257,388
$ Add: Opening balance of payable on equipment
and construction
48,234
Ending balance of prepayments for business facilities
131,253
Less: Ending balance of payable on equipment
and construction
77,543)
(
Ending balance of notes payable
96,337)
(
Opening balance of prepayments for business
facilities
65,368)
(
Cash paid during the period
197,627
$

~40~

B. Investing activities with partial cash payments :
Purchase of property, plant and equipment
Add: Opening balance of payable on equipment and
construction
Less: Ending balance of payable on equipment and
construction
Ending balance of notes payable
Opening balance of prepayments for business
facilities
Cash paid during the period
Purchase of financial assets at fair value through
profit or loss
Add: Opening balance of securities payables
(shown as other payables)
Less: Ending balance of securities payables
(shown as other payables)
Cash paid during the period
Purchase of financial assets at fair value through
profit or loss
Add: Opening balance of securities payables
(shown as other payables)
Less: Ending balance of securities payables
(shown as other payables)
Cash paid during the period

Ninemonths ended September30,2021
117,606
$ 34,547
22,958)
(
-
-
129,195
$ Nine months endedSeptember30,2022
87,263
$ 3,573
-
90,836
$ Ninemonths ended September30,2021
30,570
$ 3,573)
(
26,997
$

(Remainder of page intentionally left blank)

~41~

(25) Changes in liabilities from financing activities

							Long-term
							borrowings			Guarantee			Lease liabilities							Liabilities from
		Short-term	Short-term notes				(including				deposits		(including non-				Dividends			financing activities
	borrowings		and bills payable			current portion)					received			current)			payable				gross
At January 1, 2022	$	264,320		$	50,000	$	646,025			$	929		$	2,337			$		-	$	963,611
Additions for the period		-			-	$	192,540					-				$	148,248			$	340,788
Changes in cash flow from financing activities	(	7,367)	(		50,000)	(	79,376)					-	(	1,102)		(	148,248)			(	286,093)
Impact of changes in foreign exchange rate		7,281			-			-				-			-				-		7,281
Changes in other non-cash
items		2,652			-		1,734					-		5,034					-		9,420
At September 30, 2022	$	266,886	$		-	$	760,923			$	929		$	6,269		$			-	$	1,035,007

							Long-term
							borrowings			Guarantee			Lease liabilities							Liabilities from
					Short-term		(including			deposits			(including non-			Dividends					financing
					borrowings	current portion)				received			current)			payable				activities gross
At January 1, 2021				$	333,396	$	712,560		$		935		$	2,931			$	-	$		1,049,822
Additions for the period					-		-				-			-	$		148,248		$		148,248
Changes in cash flow from financing activities					73,614	(	33,766)				-	(		445)	(		148,248)		(		108,845)
Impact of changes in foreign	exchange rate			(	4,607)	(	382)	(			14)			-				-	(		5,003)
Changes in other non-cash items					512		458				-			-				-			970
At September 30, 2021				$	402,915	$	678,870		$		921		$	2,486		$		-	$		1,085,192

~42~

7. Related Party Transactions

Key management compensation

Salaries and other short-term employee benefits Post-employment benefits

	Threemonths ended	Threemonths ended	September30,
	2022		2021
$	9,243	$	4,573
	6		5
$	9,249	$	4,578

				Nine months endedSeptember30,	Nine months endedSeptember30,	Nine months endedSeptember30,	Nine months endedSeptember30,	Nine months endedSeptember30,
				2022				2021
Salaries and other short-term employee benefits				$		24,060	$	15,654
Post-employment benefits						17		15
				$		24,077	$	15,669
Pledged Assets
The Group’s assets pledged	as	collateral are as follows:
				Bookvalue
Pledged asset	September30,2022		December31,2021 September30,				2021	Purpose
Other financial assets (shown as	$	-	$	1,475	$	6,862		Guarantee for acceptance bill
other current assets)
Financial assets at amortised cost		300		300			300	Long-term borrowings and
- non-current								natural gas for manufacturing
Property, plant and equipment		1,273,018		1,191,921		1,153,839		Short-term borrowings and
								long-term borrowings
Right-of-use assets		79,540		79,307		79,260		Short-term borrowings
Investment property		15,191		15,477		15,575		Short-term borrowings
Total	$	1,368,049	$	1,288,480	$	1,255,836

8. Pledged Assets

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contingencies

None.

(2) Commitments

As at September 30, 2022, December 31, 2021 and September 30, 2021, the Group’s capital expenditure contracted but not yet incurred in respect of machinery and equipment as well as construction of plants were $444,178, $327,900, $384,630, respectively.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

On November 11, 2022, the Board of Directors approved the purchase of land and property in Lukang Township, Changhua County under the consideration of capital appreciation.

~43~

12. Others

(1) Capital management

A. The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to maximise returns for shareholders and to optimise the balance of liabilities and equity.
B. The Group’s capital structure comprises net liabilities (borrowings net of cash and cash equivalents) and equity (common shares, capital surplus, retained earnings, other equity interest and non-controlling interests).
C. The Group has no obligation to comply with any external capital requirements.
D. The key management of the Group monitors the capital structure every year, including capital costs and related risks, and the Group may adjust capital structure by paying dividends to shareholders, issuing new shares, buying shares back and issuing new bonds or repaying old bonds based on the advices from the management.

(2) Financial instruments

A. Financial instruments by category

ncial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instruments Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable Other receivables Other financial assets - current Guarantee deposits paid		September 30, 2022		December 31, 2021		September 30, 2021
		148,425 $ 79,807 $ 893,290 $ 233,499 40,653 564,263 4,596 - 4,095 1,740,396 $		117,251 $ 48,308 $ 635,392 $ 199,716 55,055 441,993 10,792 1,475 2,295 1,346,718 $		101,973 $ 40,272 $ 607,924 $ 252,985 82,079 433,971 5,854 6,862 2,293 1,391,968 $

~44~

==> picture [457 x 279] intentionally omitted <==

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

September 30, December 31, September 30,
2022 2021 2021
Financial liabilities
Financial liabilities at fair value
through profit or loss
Financial liabilities held for trading $ - $ 12,111 $ 4,560
Financial liabilities at amortised cost
Short-term borrowings $ 266,886 $ 264,320 $ 402,915
- -
Short-term notes and bills payable 50,000
Notes payable 161,080 92,502 84,684
Accounts payable 171,948 157,602 151,343
Other payables 222,414 145,514 116,331
Long-term borrowings (including
760,923 646,025 678,870
current portion)
Guarantee deposits received 821 929 921
$ 1,584,072 $ 1,356,892 $ 1,435,064
Lease liabilities (including current
portion) $ 6,269 $ 2,337 $ 2,486
----- End of picture text -----

B. Financial risk management policies
(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk. To minimise any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange forward contracts are used to hedge certain exchange rate risk. Derivatives are used for hedging exchange rate risk arising from export proceeds by using forward foreign exchange contracts.
(b) The Company treasury performs the financial risk management for each business unit. The treasury operates in domestic and international financial markets through planning and coordination, as well as monitors and manages the financial risks related to the Group’s operation based on internal risk reports about exposure to risk with the analysis of the extent and width of risk.

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

(c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2).
C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

~45~

i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the United States Dollar and Chinese Renminbi. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.
ii. The companies within the Group are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable United States Dollar and Chinese Renminbi expenditures. Entities of the Group use natural hedge to decrease the risk exposure in the foreign currency through the Group treasury.
iii. The Group’s businesses involve some non-functional currency operations (the Company’s functional currency: New Taiwan Dollars; certain subsidiaries’ functional currency: New Taiwan Dollars, United States Dollar and Chinese Renminbi). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations and analysis of foreign currency market risk arising from significant foreign exchange variation is as follows:

September 30, 2022

Foreign currency amount (In thousands) (Foreign currency: functional currency) Financial assets Monetary items USD : NTD 32,574 $ USD : RMB 335 $ Foreign exchange swap contracts USD : NTD 182 $ Financial liabilities Monetary items USD : RMB 96 $	Exchange rate	Book value (NTD)
	31.75 7.12 31.60 31.75	1,034,225 $ 2,384 $ 5,751 $ 3,048 $

~46~

December 31, 2021

Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)

Foreign currency amount (In thousands)	Exchange rate
28,421 $ 1,776 $ 163 $	27.85 6.47 27.97	791,525 $ 49,462 $ 4,560 $

The Group conducts foreign exchange swap contracts. Foreign currency amount is the notional principal. Exchange rate is estimated to be settled at the balance sheet date, and the book value is the amount recognised.

iv. The total exchange gain (loss), including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the three months and nine months ended September 30, 2022 and 2021, amounted to $163,552, $6,874, $376,664 and ($60,196), respectively.
v. Analysis of foreign currency market risk arising from significant foreign exchange variation:

~47~

==> picture [421 x 505] intentionally omitted <==

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

Nine months ended September 30, 2022
Sensitivity analysis
Effect on other
Degree of comprehensive
variation Effect on profit or loss income
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD : NTD 1% $ 10,400 $ -
Foreign exchange
swap contracts
USD : NTD 1% $ 58 $ -
Financial liabilities
Monetary items
USD : RMB 1% $ 30 $ -
Nine months ended September 30, 2021
Sensitivity analysis
Effect on other
Degree of comprehensive
variation Effect on profit or loss income
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD : NTD 1% $ 7,915 $ -
Financial liabilities
Monetary items
USD : RMB 1% 495 $ -
Foreign exchange
swap contracts
USD : NTD 1% $ 46 $ -
----- End of picture text -----

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets (liabilities) at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
ii. The Group’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased

~48~

by 1% with all other variables held constant, per-tax profit for the three months and nine months ended September 30, 2022 and 2021 would have decreased/increased by $545, $640, $1,484 and $1,020, 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 $46, $161, $798 and $403 respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Group’s main interest rate risk arises from short-term and long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During the nine months ended September 30, 2022 and 2021, the Group’s borrowings at variable rate were mainly denominated in New Taiwan Dollars and United States Dollars.
ii. If the borrowing interest rate had increased/decreased by 0.1% with all other variables held constant, profit before tax for the three months and nine months ended September 30, 2022 and 2021 would have increased/decreased by $351, $339, $771 and $814, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of equity instruments stated at 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 Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. The utilisation of credit limits is regularly monitored.
iii.The Group adopts credit risk management procedure to assess whether there has been a significant increase in credit risk on that instrument since initial recognition. If the contract payments were past due over 3 months based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
iv.In line with credit risk management procedure, the default occurs when the contract payments are past due over 180 days.
v. Impairment loss is assessed and recognized when there is objective evidence that individual receivables cannot be recovered. The Group used historical and timely information to establish loss rate of remaining receivables and used the forecastability to assess the default

~49~

possibility of accounts receivable. As of September 30, 2022, December 31, 2021 and September 30, 2021, accumulated loss allowance provided for individually assessed receivables amounted to $39,134, $29,840 and $22,677, respectively. The Group used the forecastability to adjust historical and timely information to assess the default possibility of remaining receivables (including notes receivables). On September 30, 2022, December 31, 2021 and September 30, 2021, the provision matrix is as follows:

Not past due	1 to 60 days	61 to 120 days		121 to 180 days 30%~40% 5,494 $ 1,553) ( $ 3,941 121 to 180 days	Over 241 days	Total
0%~1% 508,080 $ 1,229) ( $ 506,851 Not past due 0%-3% 449,496 $ 1,271) ( $448,225 Not past due	1%~10% 86,283 $ 1,419) ( $ 84,864 1 to 60 days	15%~20% 10,523 $ 1,263) ( $ 9,260 61 to 120 days			100% 6,976 $ 6,976) ( $- Over 241 days	623,085 $ 18,169) ( $ 604,916 Total

	3%-10% 45,462 $ 1,344) ( $ 44,118 1 to 60 days	30%-35% 4,590 $ 1,383) ( $ 3,207 61 to 120 days		40%-50% 2,750 $ 1,252) ( $1,498 121 to 180 days	100% 12,709 $ 12,709) ( $-	515,331 $ 18,283) ( $ 497,048 Total
					Over 241 days
0%-2% 498,877 $ 5,056) ( $493,821	7%-20% 13,781 $ 2,580) ( $11,201	30%-45% 3,025 $ 1,312) ( $1,713	100% 978 $ 978) ( $-		100% 12,402 $ 12,402) ( $-	529,290 $ 22,555) ( $ 506,735

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

~50~

At January 1 Provision for (reversal of) impairment loss Effect of foreign exchange At September 30 At January 1 Provision for (reversal of) impairment loss Effect of foreign exchange At September 30	Notes receivable Accounts receivable Total 162 $ 47,961 $ 48,123 $ 78) ( 7,930 7,852 - 1,328 1,328 84 $ 57,219 $ 57,303 $ Notes receivable Accounts receivable Total $ 79 43,832 $ 43,911 $ 40 1,888 1,928 - 607) ( 607) ( 119 $ 45,113 $ 45,232 $ 2022 2021

(c) Liquidity risk

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

ii. The Group has the following undrawn borrowing facilities:

Fixed rate: Expiring within one year Expiring beyond one year Floating rate: Expiring within one year	September30,2022 - $ - 300,893 300,893 $	December31,2021 300,000 $ 192,540 - 492,540 $	September30,2021
			500,000 $ 192,540 -
			692,540 $

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

~51~

Non-derivative financial liabilities:

Non-derivative financial liabilities:	ties:
September 30, 2022 Less than 1year Short-term borrowings 271,789 $ Notes payable 161,080 Accounts payable 171,948 Other payables 222,414 Long-term borrowings (including current portion) 163,606 Lease liability 1,657 Non-derivative financial liabilities: December 31, 2021 Less than 1year Short-term borrowings 266,230 $ Short-term notes and bills payable 50,000 Notes payable 92,502 Accounts payable 157,602 Other payables 145,514 Long-term borrowings (including current portion) 111,089 Lease liability 622 Derivative financial liabilities: Less than 1year December 31, 2021 Foreign exchange swap contracts 12,111 $ Non-derivative financial liabilities: September 30, 2021 Less than 1year Short-term borrowings 408,919 $ Notes payable 84,684 Accounts payable 151,343 Other payables 116,331 Long-term borrowings (including current portion) 118,389 Lease liability 622	Less than 1year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 5 years	Over 5 years	Total
		- $ - - - 154,328 1,657 Between 1 and 2 years	- $ - - - 153,025 1,657 Between 2 and 3 years	- $ - - - 212,374 1,431 Between 3 and 5 years	- $ - - - 99,348 - Over 5 years	271,789 $ 161,080 171,948 222,414 782,681 6,402 Total
December 31, 2021 Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other payables Long-term borrowings (including current portion) Lease liability Derivative financial liabilities:
	266,230 $ 50,000 92,502 157,602 145,514 111,089 622 Less than 1year	- $ - - - - 87,286 622 Between 1 and 2 years	- $ - - - - 90,462 622 Between 2 and 3 years	- $ - - - - 206,968 519 Between 3 and 5 years	- $ - - - - 174,650 - Over 5 years	266,230 $ 50,000 92,502 157,602 145,514 670,455 2,385 Total
		$ - Between 1 and 2 years	$ - Between 2 and 3 years	$ - Between 3 and 5 years	$ - Over 5 years	12,111 $ Total
September 30, 2021 Short-term borrowings Notes payable Accounts payable Other payables Long-term borrowings (including current portion) Lease liability
	408,919 $ 84,684 151,343 116,331 118,389 622	$ - - - - 93,425 622	$ - - - - 85,895 622	$ - - - - 207,383 674	$ - - - - 200,340 -	408,919 $ 84,684 151,343 116,331 705,432 2,540

~52~

Derivative financial liabilities:	Less than 1year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 5 years	Over 5 years	Total
September 30, 2021 Foreign exchange swap contracts	4,560 $	$ -	$ -	$ -	$ -	4,560 $

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and over-the-counter stocks is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in foreign exchange swap contracts is included in Level 2.
Level 3: Unobservable inputs for the asset or liability.
B. Financial instruments not measured at fair value
The carrying amounts of financial instruments not measured at fair value are approximate to their fair value, including cash and cash equivalents, notes receivable, accounts receivable other receivables, financial assets at amortised cost, guarantee deposits paid, short-term borrowings, notes payable, accounts payable other payables, long-term borrowings (including current portion) , guarantee deposits received and lease liabilities (including current portion).
C. 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 September 30, 2022, December 31, 2021 and September 30, 2021, are as follows:
(a) The related information of natures of the assets and liabilities is as follows:

~53~

September 30, 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 December 31, 2021 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 September 30, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income - Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss	Level 1 142,674 $ 79,807 $ Level 1 117,251 $ 48,308 $ - $ Level 1 101,973 $ 40,272 $ - $	Level 2 5,751 $ - $ Level 2 - $ - $ 12,111 $ Level 2 - $ - $ 4,560 $	Level3 - $ - $ Level3 - $ - $ - $ Level3 - $ - $ - $	Total
				148,425 $
				79,807 $
				Total
				117,251 $
				48,308 $
				12,111 $
				Total
				101,973 $
				40,272 $
				4,560 $

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

Listed shares Market quoted price Closing price

~54~

ii. Foreign exchange swap contracts are usually valued based on the current foreign exchange swap rate.
D. For the nine months ended September 30, 2022 and 2021, there was no transfer between Level 1 and Level 2.
E. For the nine months ended September 30, 2022 and 2021, there was no transfer into or out from Level 3.

(4) Other matter

The government established several preventive measures in response to the COVID-19 pandemic, however, these had no actual impact on the Group’s operations. Additionally, the Group has adopted countermeasures and continued managing the relevant matters to prevent the spread of COVID-19 from affecting its operations.

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).

~55~

(4) Major shareholders information: Please refer to table 8.

14. Segment Information

(1) General information

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

Domestic operation area - domestic consolidated entities.

Foreign operation area - foreign consolidated entities.

(2) Measurement of segment information

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

~56~

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

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

segments are as follows:
Domestic operation entities Foreign operation entities Others Inter-segment eliminations Total amount from continuing operations Interest income Rent income Dividend income Other income - others Foreign exchange gain (loss) Gain on financial assets and liabilities at fair value through profit or loss Gain on disposal of property, plant and equipment Other losses Finance costs Profit before income tax	Three months ended September 30,2022	Segment revenue		Nine months ended September 30,2021	Three months ended September 30,2022	Segment income(loss)		Nine months ended September 30,2021
		Three months ended September 30,2021	Nine months ended September 30,2022			Three months ended September 30,2021	Nine months ended September 30,2022
	298,414 $ 210,946 4,509 408) ( 513,461 $	273,569 $ 185,072 11,653 7,954) ( 462,340 $	953,229 $ 562,352 27,530 24,425) ( 1,518,686 $	824,679 $ 632,209 42,891 56,068) ( 1,443,711 $	40,164 $ 15,871) ( 7,773 6,612 38,678 $ 3,873 9,347 5,532 5,792) ( 163,552 19,911 2,030 19,611) ( 5,111) ( 212,409 $	49,599 $ 22,242) ( 732 8,382 36,471 $ 526 2,040 4,036 2,608 6,874 13,239) ( 14 375) ( 4,872) ( 34,083 $	143,605 $ 61,188) ( 1,227 20,702 104,346 $ 5,519 13,758 5,532 7,192 376,664 55,140 3,550 19,955) ( 14,899) ( 536,847 $	159,618 $ 56,148) ( 5,019 24,510 132,999 $ 2,150 4,738 4,036 7,728 60,196) ( 25,283 1,083 1,457) ( 13,977) ( 102,387 $

~57~

Table 1

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

Loans to others

Nine months ended September 30, 2022

Expressed in thousands of NTD

(Except as otherwise indicated)

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the nine months ended September 30,2022	Balance at September 30, 2022 (Note 6,7 and 8)	Actual amount drawn down (Note 2)	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party (Note 3)	Ceiling on total loans granted(Note 3)	Footnote
													Item	Value
0 0 0	Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD.	RISE BRIGHT HOLDINGS LTD. CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. LIAONING HETAI AUTOMOTIVE PARTS CO.,LTD	Other receivables Other receivables Other receivables	Y Y Y	333,375 $ 222,250 201,285	111,125 $ 127,000 129,717	111,125 $ 63,500 130,446	1.40% 4.35% 4.35%	2 2 2	- $ - -	Operating capital Operating capital Operating capital	- $ - -	N N N	- $ - -	357,245 $ 357,245 357,245	1,428,978 $ 1,428,978 1,428,978	Notes 5 and 7 Notes 6 and 8 Note 9

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 September 30, 2022 and actual amount drawn down were calculated at the USD and RMB buying and selling spot exchange rate of 31.75 and 4.473 on September 30, 2022. 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 o RISE BRIGHT HOLDINGS LTD. by Y.C.C. amounted to NT$333,375. This is because the amount of NT$333,375 includes NT$222,250 that was matured on May 27, 2022. The remaining total facility was NT$111,125. Note 6: The maximum outstanding balance of loans granted to CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. by Y.C.C. amounted to NT$222,250. This is because the amount of NT$222,250 includes NT$95,250 that was matured on March 16, 2022. and a new facility of NT$31,750 that were added at the Board of Directors’ meeting on March 10, 2022. The remaining total facility was NT$127,000.

Note 7: Loans granted to RISE BRIGHT HOLDINGS LTD. approved by the Board of Directors amounted to US$3,500 thousand.

Note 8: Loans granted to CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. approved by the Board of Directors amounted to US$4,000 thousand.

Note 9: Loans granted to LIAONING HETAI AUTOMOTIVE PARTS CO., LTD approved by the Board of Directors amounted to RMB 29,000 thousand.

Table 1, Page 1

Provision of endorsements and guarantees to others

Nine months ended September 30, 2022

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

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

Number (Note1)	Endorser/guarantor	Partybeingendorsed/guaranteed	Partybeingendorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantees amount as of September30,2022	Outstanding endorsement/ guarantee amount at September 30, 2022 (Note 5)	Actual amount drawn down (Note4)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantorcompany	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
		Companyname	Relationship with the endorser/ guarantor(Note2)
0	Y.C.C. PARTS MFG. CO., LTD.	CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD.	3	769,305 $	79,375 $	29,720 $	- $	-	0.00%	1,428,978 $	Y	N	Y	Note 5

Note 1: The numbers filled in for the endorsements/guarantees 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: Relationship between the endorser/guarantor and the Company is classified into the following three categories:

(1) Having business relationship.

(2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/ guaranteed company.

(3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/ guaranteed company.

Note 3: The Company’s limit on total endorsements/guarantees is 40% of net assets and limit on endorsements/guarantees provided for a single party is 20% of net assets. Note 4: Balance at September 30, 2022 and actual amount drawn down were calculated at the USD buying and selling spot exchange rate of 31.750 on September 30, 2022.

Note 5: Endorsements and guarantees to CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. approved by the Board of Directors amounted to US$3,000 thousand. Unused amount to US$1,000 has been cancelled by the Board of Directors on August 9, 2022.

Table 2, Page 1

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

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

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

September 30, 2022

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of September 30,2022	As of September 30,2022
				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. 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. EVERGREEN MARINE CO., LTD. WANHWA ENTERPRISE COMPANY SHIEH YIH MACHINERY INDUSTRY CO., LTD. COWEALTH MEDICAL HOLDING CO., LTD. TUL CORPORATION. GLOBAL BRANDS MANUFACTURE LTD. HIROCA HOLDINGS LTD. GORDON AUTO BODY PARTS CO., LTD.	N N 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 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 5,071 805,000 355,000 10,000 100,000 62,000 68,000 15,000 20,000 855,000 1,322,000	27,518 $ 25,540 1,030 3,342 278 36,505 5,132 1,590 1,228 681 2,038 2,495 769 34,528 142,674 $ 81,856 $ 14,701 (16,750) 79,807 $	0.53% 1.52% 0.08% 0.05% 0.04% 0.23% 0.42% 0.00% 0.02% 0.04% 0.09% 0.03% 0.00% 1.02% 0.80%	24,055 $ 63,579 1,028 2,373 154 39,848 5,449 1,460 1,200 630 1,615 777 507
							142,675 $
							46,427 $ 33,380
							79,807 $

Table 3, 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

September 30, 2022

Table 4 Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30, 2022 (Note 1)	Turnover rate (Note 4)	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date (Note 5)	Allowance for doubtful accounts Footnote Expressed in thousands of NTD (Except as otherwise indicated)	Allowance for doubtful accounts Footnote Expressed in thousands of NTD (Except as otherwise indicated)
					Amount	Action taken
Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD.	LIAONING HETAI AUTOMOTIVE PARTS CO., LTD RISE BRIGHT HOLDINGS LTD.	Subsidiary Subsidiary	145,048 $ 121,772	- 8.97	- $ -	- -	- $ -	- $ -	Note 2 Note 3

Note 1: The transactions were eliminated when preparing the consolidated financial statements. Note 2: It pertains to principal and interest aggregating to $132,933 from loans to the subsidiary, technical service expense amounting to $5,144 and sales of equipment amounting to $6,971 shown as other receivables. Note 3: It pertains to principal and interest aggregating to $111,666 from loans to the subsidiary and sales of equipment amounting to $8,263 shown as other receivables and sales of product amounting to $1,843 shown as accounts receivable. Note 4: Only accounts receivable was used for the calculation of turnover rate. Note 5: Subsequent collection is the amount collected as of November 1, 2022.

Table 4, Page 1

Table 5

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

Significant inter-company transactions during the reporting periods

Nine months ended September 30, 2022

Expressed in thousands of NTD

(Except as otherwise indicated)

Number (Note1)	Companyname	Counterparty	Relationship (Note 2)			Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 0 0 0 0 1	Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD.	RISE BRIGHT HOLDINGS LTD. CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. RISE BRIGHT HOLDINGS LTD. CHANG JIE TECHNOLOGY CO., LTD. CHANGSHU XINXIANG AUTOMOBILE PARTS CO., LTD. RISE BRIGHT HOLDINGS LTD.	1 1 1 1 1 3	Other receivables Other receivables Accounts receivables Prepayment Other receivables Revenue	111,666 $ 67,605 10,106 12,159 20,745 10,234	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% 1.20% 0.20% 0.20% 0.40% 0.70%

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 5, Page 1

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

Table 6

Information on investees

Nine months ended September 30, 2022

Expressed in thousands of NTD

Table 6										Expressed in thousands of NTD	Expressed in thousands of NTD
Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at September 30,2022			Net profit (loss) of the investee for the nine months ended September 30,2022	Investment income (loss) recognised by the Company for the nine months ended September 30,2022 Footnote (Except as otherwise indicated)
				Balance as at September 30,2022	Balance as at December 31,2021	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%	48,083 $ 544,952 487,084	1,536) ($ 75,811) ( 66,462) (	1,536) ($ 75,811) ( 59,444) (	Subsidiary Subsidiary (Note) Subsidiary (Note)

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

Table 6, Page 1

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

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

Information on investments in Mainland China

Nine months ended September 30, 2022

Investeein Mainland China	Mainbusiness activities	Paid-incapital	Investment method (Note1)	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2022	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine months ended September 30, 2022	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine months ended September 30, 2022	Accumulated amount of remittance from Taiwan of Mainland China as of September30,2022	Net income of investee as of September30,2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine months ended September31,2022(Note2)	Book value of investments in Mainland China as of September30,2022	Accumulated amount of investment income remitted back to Taiwan as of September30,2022	Footnte
					Remitted to Mainland China	Remitted back toTaiwan
CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. LIAONING HETAI AUTOMOTIVE PARTS CO., LTD. CHANGSHU XINXIANG AUTOMOBILE PARTS CO., LTD. CHANG JIE TECHNOLOGY CO., LTD.	Injecting and surface coating air bag covers of automobiles,producing and selling various accessories of automobiles and electronic plastic parts Injecting and surface coating parts of air bags with inflation system,covers, interior and exterior accessories of air bag and electronic equipment systems Manufacturing and selling parts, interior and exterior accessories and electronic system parts of automobiles and molds, gauges, clamps and jigs for injection Injecting and surface coating air bag covers of automobiles,producing and selling various accessories of automobiles and automatic production equipments for spraying	423,150 $ 347,588 60,450 176,665	2 2 2 2	827,609 $ 268,009 63,055 177,602	- $ - - -	- $ - - -	827,609 $ 268,009 63,055 177,602	64,522) ($ 3,683) ( 1,392 14,841) (	89.44% 73.89% 89.44% 99.83%	57,708) ($ 2,721 1,245 14,816) (	219,939 $ 189,465 56,859 156,046	- $ - - -	Note 3 Note 7 Note 4 Note 5 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 nine months ended September 30, 2022 was based on the financial statements that were reviewed by parent company’s CPA.

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of September30,2022	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commissionof MOEA
Y.C.C. PARTS MFG. CO., LTD.	$ 1,336,275	$ 1,337,564	$ 2,307,914

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$42,951 thousand.

Table 7, Page 1

Table 8

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

Major shareholders information

September 30, 2022

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

Description: If the company applies Taiwan Depository & Clearing Corporation for the information of the table, the following can be explained in the notes of the table. (1) The major shareholders information was from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of each quarter.

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

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

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

Table 8, Page 1

AI assistant

Y.C.C. — Interim / Quarterly Report 2022

51783_rns_2022-11-14_e052c39c-01f3-4745-a849-f85dbb44aa90.pdf

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

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

Introduction

Scope of review

Basis for qualified conclusion

months and nine months then ended, respectively.

Qualified conclusion

Wang, Yu-Chuan

[Liu, Mei Lan ]

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2022, DECEMBER 31, 2021 AND SEPTEMBER 30, 2021

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

1. History and Organisation

3. Application of New Standards, Amendments and Interpretations

(3) IFRSs issued by IASB but not yet endorsed by the FSC

4. Summary of Significant Accounting Policies

(1) Compliance statement

(2) Basis of preparation

(4) Employee benefits

(1) Cash and cash equivalents

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

(3) Financial assets at amortised cost

(4) Notes and accounts receivable, net

(5) Inventories

(7) Property, plant and equipment

(9) Other non-current assets

(10) Short-term borrowings

(11) Other payables

- (12) Long term borrowings

(13) Government grants

(14) Pensions

(16) Capital surplus

(17) Retained earnings

(18) Operating revenue

A. Disaggregation of revenue from contracts with customers

B. Contract liabilities

(19) Other gains and losses

(20) Expenses by nature

(21) Employee benefit expense

(22) Income tax

(23) Earnings per share

(25) Changes in liabilities from financing activities

7. Related Party Transactions

8. Pledged Assets

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contingencies

(2) Commitments

10. Significant Disaster Loss

11. Significant Events after the Balance Sheet Date

12. Others

(1) Capital management

(2) Financial instruments

Foreign exchange risk

Price risk

(c) Liquidity risk

Non-derivative financial liabilities:

(3) Fair value information

(4) Other matter

13. Supplementary Disclosures

(2) Information on investees

(3) Information on investments in Mainland China

(4) Major shareholders information: Please refer to table 8.

14. Segment Information

(1) General information

(2) Measurement of segment information

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

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

Y.C.C. Interim / Quarterly Report 2022