Y.C.C. - Interim / Quarterly Report 2023

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

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT SEPTEMBER 30, 2023 AND 2022

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

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INDEPENDENT AUDITORS `’` 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, 2023 and 2022, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the 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” that came into effect 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 Standard on Review Engagements 2410 , "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$323,578 thousand and NT$846,611 thousand, constituting 6.05% and 15.01% of the consolidated total assets as at September 30, 2023 and 2022, respectively, total liabilities amounted to NT$59,591 thousand and NT$322,249 thousand, constituting 4.19% and 18.02%

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of the consolidated total liabilities as at September 30, 2023 and 2022, respectively, and the total comprehensive income (loss) amounted to (NT$3,395) thousand, NT$2,960 thousand, (NT$6) thousand and (NT$18,668) thousand, constituting (2.04)%, 1.73%, (0.01)% and (4.20%) of the consolidated total comprehensive income (loss) for the three 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, 2023 and 2022, and of its consolidated financial performance and its consolidated cash flows for the three months and 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” that came into effect as endorsed by the Financial Supervisory Commission.

Wang, Yu-Chuan[Liu, Mei Lan ] For and on behalf of PricewaterhouseCoopers, Taiwan November 8, 2023

------------------------------------------------------------------------------------------------------------------------------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’ review 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, 2023, DECEMBER 31, 2022 AND SEPTEMBER 30, 2022

(Expressed in thousands of New Taiwan dollars)

Assets	Notes	September 30, 2023 AMOUNT % `$` `501,247` `10` `113,987` `2` `180,856` `3` `41,047` `1` `547,082` `10` `6,097` `-` `361,251` `7` `57,260` `1` `1,808,827` `34` `102,464` `2` `300` `-` `2,895,165` `54` `136,155` `2` `94,782` `2` `2,824` `-` `106,007` `2` `199,830` `4` `3,537,527` `66` `$` `5,346,354` `100`	December 31, 2022 AMOUNT % `$` `1,036,374` `19` `129,623` `2` `-` `-` `27,081` `1` `534,281` `10` `10,366` `-` `300,192` `5` `43,097` `1` `2,081,014` `38` `75,247` `1` `300` `-` `2,974,815` `54` `140,906` `3` `14,713` `-` `5,016` `-` `107,967` `2` `137,492` `2` `3,456,456` `62` `$` `5,537,470` `100`	September 30, 2022	September 30, 2022
		AMOUNT `$` `501,247` `113,987` `180,856` `41,047` `547,082` `6,097` `361,251` `57,260` `1,808,827` `102,464` `300` `2,895,165` `136,155` `94,782` `2,824` `106,007` `199,830` `3,537,527` `$` `5,346,354`	AMOUNT `$` `1,036,374` `129,623` `-` `27,081` `534,281` `10,366` `300,192` `43,097` `2,081,014` `75,247` `300` `2,974,815` `140,906` `14,713` `5,016` `107,967` `137,492` `3,456,456` `$` `5,537,470`	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`	%
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 Total current Assets Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 1535 Non-current financial assets at amortised cost 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets	6(1) 6(2) 6(3) 6(4) 6(4) 6(5) 6(6) 6(3) and 8 6(7) and 8 6(8) and 8 6(9) and 8 6(10)				`16` `3` `4` `1` `10` `-` `5` `1`
					`40`
					`1` `-` `52` `3` `-` `-` `2` `2`
					`60`
					`100`

(Continued)

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Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2023, DECEMBER 31, 2022 AND SEPTEMBER 30, 2022

(Expressed in thousands of New Taiwan dollars)

					September 30, 2023	September 30, 2023			December 31, 2022	December 31, 2022			September 30, 2022	September 30, 2022
	Liabilities and Equity	Notes			AMOUNT	%			AMOUNT	%			AMOUNT	%
	Current liabilities
2100	Short-term borrowings	6(11)		`$`	`98,105`		`2`	`$`	`261,721`		`5`	`$`	`266,886`		`5`
2130	Current contract liabilities	6(19)			`12,902`		`-`		`14,852`		`-`		`9,506`		`-`
2150	Notes payable	6(27)			`147,521`		`3`		`179,968`		`3`		`161,080`		`3`
2170	Accounts payable				`128,062`		`2`		`141,453`		`2`		`171,948`		`3`
2200	Other payables	6(12)			`177,768`		`3`		`197,101`		`4`		`222,414`		`4`
2230	Current income tax liabilities	6(25)			`151,696`		`3`		`143,864`		`3`		`141,252`		`2`
2320	Long-term liabilities, current	6(13)
	portion				`133,167`		`3`		`169,662`		`3`		`158,829`		`3`
2399	Other current liabilities, others	6(8)			`2,214`		`-`		`2,655`		`-`		`2,027`		`-`
21XX	Total current Liabilities				`851,435`	`16`			`1,111,276`	`20`			`1,133,942`	`20`
	Non-current liabilities
2540	Long-term borrowings	6(13)			`479,695`		`9`		`566,370`	`10`			`602,094`	`11`
2560	Current tax liabilities-non-current	6(25)			`70,757`		`2`		`28,511`		`1`		`36,304`		`1`
2570	Deferred income tax liabilities				`6,386`		`-`		`513`		`-`		`5,307`		`-`
2600	Other non-current liabilities	6(8)(14)			`13,948`		`-`		`15,251`		`-`		`16,082`		`-`
25XX	Total non-current liabilities				`570,786`	`11`			`610,645`	`11`			`659,787`	`12`
2XXX	Total Liabilities				`1,422,221`	`27`			`1,721,921`	`31`			`1,793,729`	`32`
	Equity attributable to owners of
	parent
	Share capital	6(16)
3110	Share capital - common stock				`741,239`	`14`			`741,239`	`13`			`741,239`	`13`
	Capital surplus	6(17)
3200	Capital surplus				`1,193,349`	`23`			`1,193,349`	`22`			`1,193,349`	`21`
	Retained earnings	6(18)
3310	Legal reserve				`383,999`		`7`		`343,211`		`6`		`343,211`		`6`
3320	Special reserve				`109,141`		`2`		`120,040`		`2`		`120,040`		`2`
3350	Unappropriated retained earnings				`1,510,223`	`28`			`1,425,612`	`26`			`1,440,968`	`25`
	Other equity interest
3400	Other equity interest		`(`		`112,144 ) (`		`3) (`		`109,142 ) (`		`2) (`		`94,647) (`		`1)`
31XX	Equity attributable to owners
	of the parent				`3,825,807`	`71`			`3,714,309`	`67`			`3,744,160`	`66`
36XX	Non-controlling interests				`98,326`		`2`		`101,240`		`2`		`102,363`		`2`
3XXX	Total equity				`3,924,133`	`73`			`3,815,549`	`69`			`3,846,523`	`68`
	Significant events after the balance	9
	sheet date
3X2X	Total liabilities and equity			`$`	`5,346,354`	`100`		`$`	`5,537,470`	`100`		`$`	`5,640,252`	`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, 2023 AND 2022

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

					Three months ended	Three months ended	Three months ended	September 30			Nine months ended	Nine months ended	Nine months ended	September 30
					2023			2022			2023			2022
	Items	Notes			AMOUNT	%		AMOUNT	%		AMOUNT	%		AMOUNT	%
4000	Sales revenue	6(19)		`$`	`546,909`	`100`	`$`	`513,461`	`100`	`$`	`1,505,205`	`100`	`$`	`1,518,686`	`100`
5000	Operating costs	6(5)(23)(24)	`(`		`358,271 ) (`	`66) (`		`377,518 ) (`	`74) (`		`1,036,340 ) (`	`69) (`		`1,132,670) (`	`75 )`
5900	Net operating margin				`188,638`	`34`		`135,943`	`26`		`468,865`	`31`		`386,016`	`25`
	Operating expenses	6(23)(24)
6100	Selling expenses		`(`		`43,195 ) (`	`8) (`		`40,480 ) (`	`8) (`		`112,801 ) (`	`7) (`		`102,535) (`	`7 )`
6200	General and administrative
	expenses		`(`		`31,402 ) (`	`5) (`		`33,086 ) (`	`7) (`		`83,583 ) (`	`6) (`		`119,479) (`	`8 )`
6300	Research and development
	expenses		`(`		`15,292 ) (`	`3) (`		`17,474 ) (`	`3) (`		`46,160 ) (`	`3) (`		`51,804) (`	`3 )`
6450	Impairment loss (impairment	12(2)
	gain and reversal of
	impairment loss) determined in
	accordance with IFRS 9				`630`	`- (`		`6,225 ) (`	`1)`		`29,126`	`2 (`		`7,852)`	`-`
6000	Total operating expenses		`(`		`89,259 ) (`	`16) (`		`97,265 ) (`	`19) (`		`213,418 ) (`	`14) (`		`281,670) (`	`18 )`
6900	Operating profit				`99,379`	`18`		`38,678`	`7`		`255,447`	`17`		`104,346`	`7`
	Non-operating income and
	expenses
7100	Interest income				`9,519`	`2`		`3,873`	`1`		`27,739`	`2`		`5,519`	`-`
7010	Other income	6(20)			`13,121`	`2`		`9,087`	`2`		`43,896`	`3`		`26,482`	`2`
7020	Other gains and losses	6(21)			`74,606`	`14`		`165,882`	`32`		`110,102`	`7`		`415,399`	`27`
7050	Finance costs	6(22)	`(`		`4,767 ) (`	`1) (`		`5,111 ) (`	`1) (`		`13,443 ) (`	`1) (`		`14,899) (`	`1 )`
7000	Total non-operating income
	and expenses				`92,479`	`17`		`173,731`	`34`		`168,294`	`11`		`432,501`	`28`
7900	Profit before income tax				`191,858`	`35`		`212,409`	`41`		`423,741`	`28`		`536,847`	`35`
7950	Income tax expense	6(25)	`(`		`42,649 ) (`	`8) (`		`45,419 ) (`	`9) (`		`89,993 ) (`	`6) (`		`120,920) (`	`8 )`
8200	Profit for the period			`$`	`149,209`	`27`	`$`	`166,990`	`32`	`$`	`333,748`	`22`	`$`	`415,927`	`27`

(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, 2023 AND 2022

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

					Three months ended	Three months ended	Three months ended	September 30			Nine months ended	Nine months ended	Nine months ended	September 30
					2023			2022			2023			2022
	Items	Notes			AMOUNT	%		AMOUNT	%		AMOUNT	%		AMOUNT	%
	Other comprehensive income
	Components of other
	comprehensive income that will
	not be reclassified to profit or
	loss
8316	Unrealized gains (losses) on	6(6)
	investments in equity
	instruments measured at fair
	value through other
	comprehensive income			`$`	`1,241`	`-`	`$`	`4,625`	`1`	`$`	`469`	`-`	`$`	`16,799`	`1`
8310	Components of other
	comprehensive income that
	will not be reclassified to
	profit or loss				`1,241`	`-`		`4,625`	`1`		`469`	`-`		`16,799`	`1`
	Components of other
	comprehensive income that will
	be reclassified to profit or loss
8361	Financial statements
	translation differences of
	foreign operations				`15,869`	`3 (`		`881)`	`- (`		`3,261)`	`-`		`11,787`	`1`
8360	Components of other
	comprehensive income that
	will be reclassified to profit
	or loss				`15,869`	`3 (`		`881)`	`- (`		`3,261)`	`-`		`11,787`	`1`
8300	Total other comprehensive
	income (loss) for the period			`$`	`17,110`	`3`	`$`	`3,744`	`1 ($`		`2,792)`	`-`	`$`	`28,586`	`2`
8500	Total comprehensive income for
	the period			`$`	`166,319`	`30`	`$`	`170,734`	`33`	`$`	`330,956`	`22`	`$`	`444,513`	`29`
	Profit (loss), attributable to:
8610	Owners of parent			`$`	`150,709`	`27`	`$`	`168,696`	`32`	`$`	`336,872`	`22`	`$`	`423,611`	`28`
8620	Non-controlling interests		`(`		`1,500)`	`- (`		`1,706)`	`- (`		`3,124)`	`- (`		`7,684) (`	`1)`
	Total			`$`	`149,209`	`27`	`$`	`166,990`	`32`	`$`	`333,748`	`22`	`$`	`415,927`	`27`
	Comprehensive income (loss)
	attributable to:
8710	Owners of parent			`$`	`165,021`	`30`	`$`	`171,715`	`33`	`$`	`333,870`	`22`	`$`	`449,004`	`29`
8720	Non-controlling interests				`1,298`	`- (`		`981)`	`- (`		`2,914)`	`- (`		`4,491)`	`-`
	Total			`$`	`166,319`	`30`	`$`	`170,734`	`33`	`$`	`330,956`	`22`	`$`	`444,513`	`29`
	Basic earnings per share	6(26)
9750	Basic earnings per share			`$`		`2.03`	`$`		`2.28`	`$`		`4.54`	`$`		`5.71`
9850	Diluted earnings per share			`$`		`2.03`	`$`		`2.27`	`$`		`4.54`	`$`		`5.69`

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, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

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				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(18) 6(6) 6(18)	`$ 741,389` `-` `-` `-` `-` `-` `-` `(` `150` `)` `$ 741,239` `$ 741,239` `-` `-` `-` `-` `-` `-` `$ 741,239`			`$ 1,193,349` `-` `-` `-` `-` `-` `-` `-` `$ 1,193,349` `$ 1,193,349` `-` `-` `-` `-` `-` `-` `$ 1,193,349`	`$ 329,574` `-` `-` `-` `13,637` `-` `-` `-` `$ 343,211` `$ 343,211` `-` `-` `-` `40,788` `-` `-` `$ 383,999`	`$ 105,211` `-` `-` `-` `-` `14,829` `-` `-` `$ 120,040` `$ 120,040` `-` `-` `-` `-` `(` `10,899 )` `-` `$ 109,141`	`$ 1,194,447` `423,611` `-` `423,611` `(` `13,637` `)` `(` `14,829` `)` `(` `148,248` `)` `(` `376` `)` `$ 1,440,968` `$ 1,425,612` `336,872` `-` `336,872` `(` `40,788` `)` `10,899` `(` `222,372` `)` `$ 1,510,223`	`($` `86,492 )` `-` `8,594` `8,594` `-` `-` `-` `-` `($` `77,898 )` `($` `82,602 )` `-` `(` `3,471 )` `(` `3,471 )` `-` `-` `-` `($` `86,073 )`	`($` `33,548 )` `-` `16,799` `16,799` `-` `-` `-` `-` `($` `16,749 )` `($` `26,540 )` `-` `469` `469` `-` `-` `-` `($` `26,071 )`	`($` `526` `)` `-` `-` `-` `-` `-` `-` `526` `$` `-` `$` `-` `-` `-` `-` `-` `-` `-` `$` `-`	`$ 3,443,404` `423,611` `25,393` `449,004` `-` `-` `(` `148,248 )` `-` `$ 3,744,160` `$ 3,714,309` `336,872` `(` `3,002 )` `333,870` `-` `-` `(` `222,372 )` `$ 3,825,807`		`$ 106,854` `(` `7,684 )` `3,193` `(` `4,491 )` `-` `-` `-` `-` `$ 102,363` `$ 101,240` `(` `3,124 )` `210` `(` `2,914 )` `-` `-` `-` `$` `98,326`	`$ 3,550,258` `415,927` `28,586` `444,513` `-` `-` `(` `148,248` `)` `-` `$ 3,846,523` `$ 3,815,549` `333,748` `(` `2,792` `)` `330,956` `-` `-` `(` `222,372` `)` `$ 3,924,133`
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 Nine months ended September 30,
2023 Balance at January 1, 2023 Profit (loss) for the period Other comprehensive income (loss) Total comprehensive income (loss) Appropriation and distribution of 2022 earnings Legal reserve Special reserve Cash dividends Balance at September 30, 2023

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, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

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

Depreciation expense - right-of-use assets

Amortisation expense

Expected credit impairment loss

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

Interest expense

Interest income
Government grant revenues

Dividend income

Proceeds from disposal of property, plant and
equipment

Changes in operating assets and liabilities
Changes in operating assets
Notes receivable, net
Accounts receivable, net
Other receivables
Inventories
Other current assets
Changes in operating liabilities
Contract liabilities - current
Notes payable
Accounts payable
Other payables
Other current liabilities
Cash inflow generated from operations
Interest received
Interest paid
Income taxes paid
Net cash flows from operating activities Notes
Nine months ended September 30
2023
2022
$
423,741 $
536,847
6(9)(23)
272,088
269,593
6(8)(23)
4,895
5,602
6(23)
5,265
8,157
12(2)
(
29,126 )
7,852
6(2)(21)
11,984 (
54,693 )
6(22)
13,443
14,899
(
27,739 ) (
5,519 )
6(14)
(
1,053 ) (
902 )
6(20)
(
7,107 ) (
5,532 )
6(21)
(
3,981 ) (
3,550 )
(
13,966 )
14,480
16,325 (
130,122 )
(
3,331 )
7,773
(
61,059 )
5,108
(
14,163 ) (
682 )
(
1,950 ) (
8,406 )
(
27,104 )
68,578
(
13,391 )
14,346
(
9,068 ) (
34,095 )
1,312 (
3,662 )
536,015
706,072
27,201
3,942
(
13,342 ) (
14,605 )
(
37,120 ) (
27,932 )
512,754
667,477

(Continued)

~9~

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

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

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

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

Acquisition of intangible assets
Decrease in other financial assets
Decrease (increase) in refundable deposits
Dividend received
Acquisition of non-current financial assets at fair
value through other comprehensive income
Acquisition of investment property

Decrease (increase) in other non-current assets
Increase in prepayment of equipment and
construction
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings

Decrease in short-term borrowings

Decrease in short-term notes and bills payable
Proceeds from long-term borrowings
Repayments of long-term borrowings

Increase in refundable deposits

Repayments of principal portion of lease liabilities
Cash dividends paid

Net cash flows used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Notes
Nine months ended September 30
2023
2022
6(27)
($
12,263 ) ($
90,836 )
14,532
98,671
(
180,856 ) (
33,783 )
6(27)
(
162,810 ) (
228,079 )
18,058
4,073
6(7)
- (
1,193 )
- (
962 )
-
1,475
931 (
1,800 )
7,107
5,532
(
26,748 ) (
14,700 )
6(9)
(
80,887 )
-
1,380 (
35,937 )
(
133,605 ) (
65,885 )
(
555,161 ) (
363,424 )
6(28)
36,503
226,117
6(28)
(
197,908 ) (
233,484 )
- (
50,000 )
-
192,540
6(28)
(
121,132 ) (
79,376 )
6(28)
390
-
6(28)
(
1,808 ) (
1,102 )
6(27)
(
222,372 ) (
148,248 )
(
506,327 ) (
93,553 )
13,607
47,398
(
535,127 )
257,898
1,036,374
635,392
$
501,247 $
893,290

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, 2023 AND 2022

(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 November 8, 2023.

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”) that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

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

	Effective date by
	International Accounting
New Standards,Interpretations andAmendments	Standards Board
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 relating to assets and liabilities arising from a single transaction’	January 1, 2023
Amendments to IAS 12, ‘International tax reform - pillar two model rules’	May 23, 2023

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

~11~

(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 and will become effective from 2024 are as follows:

==> picture [485 x 31] intentionally omitted <==

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

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

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

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

(3) 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:

and financial performance based on the Group's assessment. )IFRSs issued by IASB but not yet endorsed by the FSC New standards, interpretations and amendments issued by IASB but not endorsed by the FSC are as follows:	yet included in the IFRSs as
New Standards,Interpretations andAmendments	International Accounting StandardsBoard
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, ‘Insurance contracts’ Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’ Amendments to IAS 21, ‘Lack of exchangeability’	To be determined by International Accounting Standard Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2025

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

4. Summary of Significant Accounting Policies

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2022, 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’ that came into effect as endorsed by the FSC.
B. The consolidated financial statements should be read together with the consolidated financial

~12~

statements for the year ended December 31, 2022.

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
- (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
- (b) Financial assets at fair value through other comprehensive income.
- (c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the 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, 2022.

~13~

B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Main Business Activities		September 30,2023 December 31,2022 September 30,2022 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 89.44% 89.44% 89.44% 99.83% 99.83% 99.83% 100.00% 100.00% 100.00% 82.61% 82.61% 82.61% 100.00% 100.00% 100.00% Ownership(%)	September 30,2023 December 31,2022 September 30,2022 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 89.44% 89.44% 89.44% 99.83% 99.83% 99.83% 100.00% 100.00% 100.00% 82.61% 82.61% 82.61% 100.00% 100.00% 100.00% Ownership(%)	Description Note 1 Note 1 Note 2 Note 1
				September 30,2023	December 31,2022
The Company The Company RISE BRIGHT RISE BRIGHT CHINA FIRST CHINA FIRST CHINA FIRST	RISE BRIGHT HOLDINGS LTD. (RISE BRIGHT) UNITED SKILLS CO., LTD. (UNITED SKILLS) CHINA FIRST HOLDINGS LTD. (CHINA FIRST) CHANG JIE TECHNOLOGY CO., LTD. (CHANG JIE) CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. (CHANGSHU FUTE) LIAONING HETAI AUTOMOTIVE PARTS CO.,LTD. (LIAONING HETAI) CHANGSHU XINXIANG AUTOMOBILE PARTS CO., LTD. (CHANGSHU XINXIANG)	Holding company and selling interior and exterior accessories of automobiles Manufacturing automobiles and their parts Holding company and selling interior and exterior accessories of automobiles Producing and selling interior and exterior accessories of automobiles Producing and selling interior and exterior accessories of automobiles Producing and selling interior and exterior accessories of automobiles Producing and selling interior and exterior accessories of automobiles		100.00% 100.00% 89.44% 99.83% 100.00% 82.61% 100.00%	100.00% 100.00% 89.44% 99.83% 100.00% 82.61% 100.00%

Note 1: The financial statements of the entity as of and for the nine months ended September 30, 2023 and 2022 were not reviewed by independent auditors as the entity did not meet the definition of significant subsidiaries.

Note 2: The financial statements of the entity as of and for the nine months ended September 30,

2022 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.

~14~

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 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.Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
B.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.
C.When the tax rate changes during the interim period, the Group recognizes the impact of the change once in the current period when the change occurs. For income tax related to items recognized out of profit or loss, the impact of the change is recognized in other comprehensive profit or loss or equity items. For income tax related to items recognized in profit or loss, the effect of the change is recognized in profit or loss.

(6) Dividends

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

~15~

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

There have been no significant changes as of September 30, 2023. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2022.

6. Details of Significant Accounts

(1) Cash and cash equivalents

solidated financial statements for the tails of Significant Accounts Cash and cash equivalents	year ended December	31, 2022.
Cash on hand Checking accounts and demand deposits Time deposits Short-term notes and bills - Re- Purchase	September30,2023 245 $ 247,640 253,362 - 501,247 $	December 31, 2022 331 $ 126,158 755,859 154,026 1,036,374 $	September 30, 2022
			363 $ 311,901 581,026 -
			893,290 $

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.

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

Items September 30, 2023 Financial assets mandatorily measured at fair value through profit or loss Listed stocks 104,824 $ Valuation adjustment 9,039 Total 113,863 $ Financial assets (liabilities) held for trading Foreign exchange swap contracts 124 $ Total financial assets at fair value through profit or loss 113,987 $	December31,2022 108,476 $ 18,582 127,058 $ 2,565 $ 129,623 $	September30,2022
		108,146 $ 34,528
		142,674 $
		5,751 $
		148,425 $

A. The Group recognized financial assets and liabilities at fair value through profit or loss of ($11,187), $19,911, ($9,398) and $55,140 for the three months and nine months ended September 30, 2023 and 2022, respectively.

~16~

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:

==> picture [458 x 194] intentionally omitted <==

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

September 30, 2023
Derivative financial assets (liabilities) Contract amount
(Notional principal) Contract period
Foreign exchange swap contracts USD 5,540 thousand 2023.09.28 ~ 2023.10.06
December 31, 2022
Derivative financial assets (liabilities) Contract amount
(Notional principal) Contract period
Foreign exchange swap contracts USD 26,100 thousand 2022.12.05 ~ 2023.01.30
September 30, 2022
Derivative financial assets (liabilities) Contract amount
(Notional principal) Contract period
Foreign exchange swap contracts USD 22,450 thousand 2022.09.20 ~ 2022.10.11
----- End of picture text -----

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

(3) Financial assets at amortised cost

==> picture [489 x 146] intentionally omitted <==

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

Items September 30, 2023 December 31, 2022 September 30, 2022
Current items:
Time deposits maturing over
three months $ 180,856 $ - $ 233,199
USD bonds sold under repurchase
- - -
agreement
Total $ 180,856 $ - $ 233,199
Non-current items
Restricted time deposits $ 300 $ 300 $ 300
----- End of picture text -----

A. As at September 30, 2023, December 31, 2022 and September 30, 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group were $181,156, $300 and $233,499, respectively.
B. Information about the financial assets at amortised cost that were pledged to others as collateral is provided in Note 8.
C. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2). The counterparties of the Group’s investments in certificates of deposit are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

~17~

(4) Notes and accounts receivable, net

	September	September	30,2023	December	31,2022	September	September	30,2022
Notes receivable		$	41,247	$	27,225		$	40,737
Less: Allowance for uncollectible
accounts	(		200)	(	144)	(		84)
		$	41,047	$	27,081		$	40,653
		September30,2023		December	31,2022		September30,2022
Accounts receivable		$	582,190	$	598,967		$	621,482
Less: Allowance for uncollectible
accounts	(		35,108)	(	64,686)	(		57,219)
		$	547,082	$	534,281		$	564,263

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

Not past due 1~60 days 61~120 days 121~180 days 181-240 days Over 241 days Not past due 1~60 days 61~120 days 121~180 days 181-240 days Over 241 days Not past due 1~60 days 61~120 days 121~180 days 181-240 days Over 241 days	September	30,2023
	Notesreceivable 41,247 $ - - - - - 41,247 $ December	Accountsreceivable
		361,200 $ 138,658 45,104 10,599 4,853 21,776
		582,190 $
		31,2022
	Notesreceivable 27,225 $ - - - - - 27,225 $ September	Accountsreceivable
		481,130 $ 52,368 10,909 4,968 3,226 46,366
		598,967 $
		30,2022
	Notesreceivable 40,737 $ - - - - - 40,737 $	Accountsreceivable
		506,477 $ 86,283 10,523 5,494 5,729 6,976
		621,482 $

~18~

As of September 30, 2023, December 31, 2022 and September 30, 2022, the ageing analysis was based on past due date.

B. As of September 30, 2023, December 31, 2022 and September 30, 2022, the balances of accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2022, the balances of accounts receivable and notes receivable from contracts with customers amounted to $489,954 and $55,217, respectively.
C. As at September 30, 2023, December 31, 2022 and September 30, 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes receivable and accounts receivable were $41,047, $27,081 and $40,653 as well as $547,082, $534,281 and $564,263, respectively.
D. Information relating to credit risk of notes receivable and accounts receivable is provided in Note 12(2).

(5) Inventories

12(2). Inventories
Materials and supplies Work in progress Semi-finished goods Finished goods Merchandise Total Materials and supplies Work in progress Semi-finished goods Finished goods Merchandise Total Materials and supplies Work in progress Semi-finished goods Finished goods Merchandise Total		September30,2023
	Cost 171,628 $ 65,472 8,324 190,881 9,848 446,153 $	Allowance for valuation loss 35,105) ($ 3,841) ( 2,457) ( 43,499) ( - 84,902) ($ December31,2022	Bookvalue
			136,523 $ 61,631 5,867 147,382 9,848
			361,251 $

	Cost 107,144 $ 50,090 11,167 204,095 12,612 385,108 $		Bookvalue
			73,863 $ 45,771 8,767 161,114 10,677
			300,192 $

	Cost 122,083 $ 39,238 28,399 191,187 7,147 388,054 $		Bookvalue
			90,263 $ 37,617 21,105 154,617 4,980
			308,582 $

~19~

The cost of inventories recognised as expense for the period :

			Three months ended	Three months ended	September30,
			2023		2022
Cost of goods sold		$	359,860	$	370,422
Unallocated fixed overheads			-		-
Loss on scrapping inventory			221		3,000
Loss on (gain on reversal of) market value decline and slow-moving inventories	(		2,892)		3,872
Loss on physical inventory			1,082		224
		$	358,271	$	377,518
			Ninemonths ended		September30,
			2023		2022
Cost of goods sold		$	1,034,084	$	1,119,794
Unallocated fixed overheads			1,129		656
Loss on scrapping inventory			473		3,357
Loss on (gain on reversal of) market value
decline and obsolete and slow-moving	(		73)		7,806
inventories
Loss on physical inventory			727		1,057
		$	1,036,340	$	1,132,670

The Group reversed a previous inventory write-down because inventories with decline in market value were partially sold by the Group for the three months and nine months ended September 30, 2023.

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

Items			September30,2023			December31,2022			September30,2022
Non-current items:
Equity instruments
Listed stocks		$	128,535		$	101,787		$	96,556
Valuation adjustment	(		26,071)	(		26,540)	(		16,749)
Total		$	102,464		$	75,247		$	79,807

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 $102,464, $75,247 and $79,807, as at September 30, 2023, December 31, 2022 and September 30, 2022, respectively.

~20~

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:

Three months ended September 30, 2023 2022 Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income $ 1,241 $ 4,625 Dividend income recognised in profit or loss held at end of period $ 1,710 $ 2,137

Nine months ended September 30, 2023 2022 Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income $ 469 $ 16,799 Dividend income recognised in profit or loss held at end of period $ 3,262 $ 2,534

C. As at September 30, 2023, December 31, 2022 and September 30, 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group were $102,464, $75,247 and $79,807, 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			30,2023
		Beginningbalance				Additions		Decreases			Transfers	Net exchange		differences			Endingbalance
Cost
Land		$	956,365		$	-		$	-	$	-		$	-		$	956,365
Buildings and structures			1,617,747			2,828			-		1,135			434			1,622,144
Machinery and equipment			1,345,856			34,309	(		57,355)		27,049			433			1,350,292
Molding equipment			2,136,767			44,844	(		22,993)		109,770			26			2,268,414
Transportation equipment			35,281			-			-		-			2			35,283
Furniture equipment			3,485			101	(		239)		-			-			3,347
Other equipment			189,283			31,062	(		5,057)		7,305			61			222,654
Unfinished construction and
equipment under acceptance			328,357			23,006	(		2,720)	(	76,303)			100			272,440
		$	6,613,141		$	136,150	($		88,364)	$	68,956		$	1,056		$	6,730,939
Accumulated Depreciation
Buildings and structures	($		896,986)	($		55,001)		$	-	$	-	($		177)	($		952,164)
Machinery and equipment	(		860,554)	(		75,736)			50,741		-	(		247)	(		885,796)
Molding equipment	(		1,706,235)	(		121,827)			18,251		-	(		29)	(		1,809,840)
Transportation equipment	(		26,864)	(		1,941)			-		-	(		2)	(		28,807)
Furniture equipment	(		2,825)	(		264)			239		-			-	(		2,850)
Other equipment	(		144,862)	(		16,487)			5,057		-	(		25)	(		156,317)
	(		3,638,326)	($		271,256)		$	74,288	$	-	($		480)	(		3,835,774)
Total		$	2,974,815													$	2,895,165

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.

~22~

						Ninemonths ended	Ninemonths ended	Ninemonths ended	Ninemonths ended	Ninemonths ended	September30,2022	September30,2022	September30,2022
		Beginning balance			Additions			Decreases			Transfers	Net exchange		differences			Ending balance
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

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 capitalized as part of property, plant and equipment and the range of the interest rates for such capitalization are as follows: Nine months ended September 30, 2023 ： None.

Nine months ended September 30, 2022 Amount capitalised $ 1,193 Range of the interest rates for capitalisation

0.95%

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

Land Transportation equipment (Business vehicles)	September30,2023 Carrying amount 131,331 $ 4,824 136,155 $	December31,2022 Carrying amount 134,276 $ 6,630 140,906 $	September30,2022
			Carrying amount
			136,908 $ 6,481
			143,389 $

Land Transportation equipment (Business vehicles) Land Transportation equipment (Business vehicles)	Threemonths ended September30,	Threemonths ended September30,
	2023 2022 Depreciationcharge Depreciationcharge 1,087 $ 1,042 $ 421 1,240 1,508 $ 2,282 $ Ninemonths ended September30,	2022
		Depreciationcharge
		1,042 $ 1,240
		2,282 $
	2023 Depreciationcharge 3,089 $ 1,806 4,895 $	2022
		Depreciationcharge
		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 both $5,034. For the three months and nine months ended September 30, 2023, there were no additions to right-of-use assets.
E. Information on profit or loss in relation to lease contracts are as follows:

==> picture [469 x 217] intentionally omitted <==

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

Three months ended September 30,
2023 2022
Items affecting profit or loss
Interest expense on lease liabilities $ 16 $ 20
Expense on short-term lease contracts $ 97 $ 111
Expense on leases of low-value assets $ 206 $ 626
Nine months ended September 30,
2023 2022
Items affecting profit or loss
Interest expense on lease liabilities $ 55 $ 54
Expense on short-term lease contracts $ 338 $ 488
Expense on leases of low-value assets $ 756 $ 947
----- End of picture text -----

F. As of September 30, 2023, December 31, 2022 and September 30, 2022, the balances of lease liabilities -current and lease liabilities - non-current are as follows (shown as other current liabilities - others and other non-current liabilities):

Lease liabilities - current Lease liabilities - non-current	September30,2023 1,687 $ 3,198 $	December31,2022 2,228 $ 4,465 $	September30,2022
			1,430 $
			4,839 $

G. For the three months and nine months ended September 30, 2023 and 2022, the Group’s total cash outflow for leases were $738, $1,149, $2,957 and $2,591, respectively.
H. Information about the right-of-use assets that were pledged to others as collateral is provided in Note 8.

~25~

(9) Investment property

Investment property
Beginning balance Cost Land - $ Land use right 4,240 Buildings and structures 17,411 21,651 $ Accumulated Depreciation Land use right 449) ($ Buildings and structures 6,489) ( 6,938) ( Total 14,713 $ Beginning balance Cost Land use right 4,553 $ Buildings and structures 16,122 20,675 $ Accumulated Depreciation Land use right 697) ($ Buildings and structures 4,501) ( 5,198) ( Total 15,477 $			Ninemonths ended September30,2023
	Beginning balance		Additions	Decreases		Net exchange differences
	Beginning balance		Additions	Decreases		Net exchange differences
		- $ - - $ 96) ($ 617) ( 713) ($		- $ - - $ - $ - - $	127 $ 449 576 $ 20) ($ 167) ( 187) ($		4,680 $ 16,571 21,251 $ 813) ($ 5,285) ( 6,098) ( 15,153 $

~26~

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

property are shown below:
Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the period Direct operating expenses arising from the investment property that did not generate rental income during the period Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the period Direct operating expenses arising from the investment property that did not generate rental income during the period	2023 2022 916 $ 587 $ 272 $ 238 $ - $ - $ 2023 2022 2,749 $ 2,346 $ 832 $ 713 $ - $ - $ Three months ended September 30, Nine months ended September 30,

		2,346 $ 713 $ - $

Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the period Direct operating expenses arising from the investment property that did not generate rental income during the period

B. The fair value of the investment property held by the Group, which is the land , as at September 30, 2023 was $92,468. The land price is obtained from the actual value of real estate transactions of the Ministry of Interior, the fair value is classified as a level 2 fair value. The fair values of the investment properties held by the Group, which is the land use right and buildings and structures, as at September 30, 2023, December 31, 2022 and September 30, 2022 were $20,394, $21,002 and $21,457, respectively. The valuations were made using the carrying amount of land use rights upon the expiry of the lease and the discounted inflow of future rental income for 3 years, using the borrowing interest rate of 4.35%, after taking into consideration of future economic growth and results of inflation. The fair value is classified as a level 3 fair value.
C. CHANGSHU FUTE subleases its 36.5-year land use right in Changshu city, Jiangsu Province, China to DAQIAOJIXIE JIANGSU YOUXIANGONGSI (DAQIAOJIXIE) under noncancellable operating lease agreements. The lease term is 3 years, and rental is adjusted to reflect market rental rates when the lessee exercises extension options. The lessee is not granted the right of priority to buy the investment property when the lease expires.
D. The Group acquired land located in the Yutengping section of Sanyi Township, Miaoli County in September 2023, and it is expected to be used for sustainable development.

~27~

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

Not later than one year Later than one year but not later than five years		September30,2023		December31,2022 3,689 $ 3,873 $7,562	September30,2022
		3,811 $ 964 $4,775			3,607 $ 5,727
					$ 9,334

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

(10) Other non-current assets

Note 8. 0)Other non-current assets
Prepayments for business facilities and construction Guarantee deposits paid Others	September30,2023 193,910 $ 3,161 2,759 199,830 $	December31,2022 129,261 $ 4,092 4,139 137,492 $	September 30, 2022
			131,253 $ 4,095 3,402
			138,750 $

(11) Short-term borrowings

Other payables Type ofborrowings Secured borrowings Interest rate range Machinery and equipment payable Salaries and bonus payable Employees’ compensation payable Transportation fee payable Directors’ remuneration payable Securities expense payable Others	September30,2023 98,105 $ 4.35% September30,2023 56,326 $ 51,470 7,377 6,378 4,368 - 51,849 177,768 $	December 31, 2022 261,721 $ 4.35% December31,2022 65,309 $ 45,061 7,360 7,011 5,661 1,383 65,316 197,101 $	September30,2022 266,886 $ 4.35% September30,2022 77,543 $ 49,688 11,209 3,223 11,209 - 69,542 222,414 $

(12) Other payables

~28~

- (13) Long term borrowings

Long-term borrowings
Type ofborrowings	Borrowing period	Repayment term	September30,2023
Long-term bank
borrowings
Unsecured borrowings	From December 26,	Principal and interest are	$	39,000
	2019 to December	repayable monthly after a 3-
	26, 2026	year grace period;interest is
		repayable monthly;principal is
		repayable monthly in 48
		installments
Secured borrowings	From January 6,	Principal and interest are		213,889
	2016 to January 6,	repayable monthly after a 3-
	2031	year grace period
Secured borrowings	From January 3,	Principal and interest are		299,000
	2020 to December	repayable monthly after a 3-
	26, 2026	year grace period;interest is
		repayable monthly;principal is
		repayable monthly in 48
		installments
Secured borrowings	From September 19,	The loan is disbursed within
	2022 to December	three years after contract
	26, 2029	signed; interest is repayable
		monthly; principal is repayable
		monthly in 51 installments
		with a 3-year grace period on
		principal only		63,238
			$	615,127
Less: Current portion			(	133,167)
Less: Discount on
government grants			(	2,265)
			$	479,695
Interest rate range				1.25%~1.78%

~29~

Type ofborrowings
Borrowing period
Repayment term
Long-term bank
borrowings
Unsecured borrowingsFrom 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 borrowingsFrom August 31,
2016 to February 15,
2023
Starting from August 15,
2019, principal is repayable
quarterly; interest is repayable
monthly
Unsecured borrowingsFrom 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 December
26, 2026
Interest is repayable monthly;
principal is repayable monthly
in 48 installments with 3-year
grace period on principal only
Secured borrowings
From December 26,
2019 to December
26, 2029
The loan is disbursed within
three years after contract
signed; interest is repayable
monthly; principal is repayable
monthly in 51 installments with
a 3-year grace period on
principal only
Less: Current portion
Less: Discount on
government
grants
Interest rate range

December31,2022
13,833
$ 6,662
48,000
235,764
368,000
64,000
736,259
$ 169,662)
(
227)
(
566,370
$ 1.13%~1.66%

~30~

Type ofborrowings	Borrowing period	Repayment term		September30,2022	September30,2022
Long-term bank
borrowings
Unsecured borrowingsFrom 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 borrowingsFrom August 31,		Starting from August 15,			13,329
	2016 to February 15,	2019, principal is repayable
	2023	quarterly; interest is repayable
		monthly
Unsecured borrowingsFrom 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			(		1,794)
			$		602,094
Interest rate range					0.88%~1.41%

~31~

(14) Government grants

As of September 30, 2023, the Group obtained government concessional loans under the “Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan” from the Bank of Taiwan in the amounts of $432,000 and $48,000, respectively, for supporting capital expenditure and working capital. Such loans will mature in December 2029 and December 2026, respectively. The fair values for the loans were $424,935 and $47,277, respectively which were calculated at a market rate of 1.25% and 1.375%. The differences between the acquired amount obtained and the fair value were $7,065 and $723, respectively, which were deemed as a low interest loan subsidy from government and recognized in deferred revenue (shown as other non-current liabilities). The deferred revenue is reclassified to other income on a straight-line basis over their estimated useful life during the period of paying interest. The realized deferred government grants revenue were $358, $301, $1,053 and $902, respectively, for the three months and nine months ended September 30, 2023 and 2022.

(15) Pensions

A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an a mount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.
(b) For the three months and nine months ended September 30, 2023 and 2022, the estimated appropriations paid to the defined pension plan are $52, $52, $152 and $155, respectively.
(c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2023 amount to $204.
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

~32~

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, 2023 and 2022 and December 31, 2022, were all 16%. Other than the monthly contributions, the Group has no further obligations.

  - (c) For the aforementioned pension plan, the Group recognized pension costs of $3,337, $2,959, $10,657 and $10,748 for the three months and nine months ended September 30, 2023 and 2022, respectively.

(16) Share capital
A. As of September 30, 2023, the Company’s authorized capital was $1,000,000, constituting 100,000 thousand shares and the paid-in capital was $741,239 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.
B. The Company reacquired treasury shares in 2018. After a comprehensive consideration of the stock price and as the treasury shares were not reissued to the employees within three years from the reacquisition date, the treasury shares reacquired to be reissued to employees were retired and registered pursuant to the Article 28-2 of Securities and Exchange Act. The capital reduction amounted to $150 consisting of 15 thousand shares retired. The paid-in capital before and after the capital reduction was $741,389 and $741,239, respectively.
C. Movements in the number of the Company’s ordinary shares outstanding are as follows:

2023 2022 Number of thousand shares Number of thousand shares At January 1 and September 30 $ 74,124 $ 74,124

(17) Capital surplus

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

~33~

==> picture [501 x 205] intentionally omitted <==

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

September 30, 2023 December 31, 2022 September 30, 2022
Used to offset deficits, distributed
as cash dividends or transferred to
share capital (Note 1)
Additional paid-in capital in excess
of par-ordinary share $ 1,163,298 $ 1,163,298 $ 1,163,298
Difference between consideration
and carrying amount of subsidiaries
acquired $ 2,125 $ 2,125 $ 2,125
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.

(18) Retained earnings

A. According to the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset against prior years’ operating losses and then be distributed as follows: 10% as legal reserve, and appropriate or reverse for special reserve until the legal reserve equals the Company’s paid-in capital. The remaining earnings, if any, may be appropriated along with the accumulated unappropriated earnings according to a resolution proposed by the Board of Directors and resolved at the shareholders’ meeting.
B. The Board of Directors of the Company may distribute all or part of dividends and bonuses, legal reserve and capital reserve in the form of cash, with the presence of more than two-thirds of the directors and the resolution of more than half of the directors present, and reports it to the shareholders’ meeting.
C. The Company's dividend policy is to distribute dividends to shareholders in line with current and future development plans, considering the investment environment, capital needs, and domestic and foreign competition conditions, and taking into account shareholders' interests and other factors. Shareholder dividends shall not be less than 40% of the distributable surplus of the current year, of which cash dividends should be more than 20% of the total dividends for shareholders, and the Board of Directors will submit it to the shareholders' meeting for resolution.
D. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their

~34~

share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

E. (a) In accordance with Order No. Financial-Supervisory-Securities-Corporate-1090150022, dated March 31, 2021, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
(b) The amounts previously set aside by the Company as special reserve in accordance with Order No. Financial-Supervisory-Securities-Corporate-1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.
F. The appropriations of 2022 earnings had been resolved at the Board of Directors’ meeting on May 31, 2023. The appropriations of 2021 earnings had been resolved at the shareholders’ meeting on May 27, 2022. Details are summarized below:

investment property other than land. The appropriations of 2022 earnings had been resolved at the Board of Directors’ meeting on May 31, 2023. The appropriations of 2021 earnings had been resolved at the shareholders’ meeting on May 27, 2022. Details are summarized below:	investment property other than land. The appropriations of 2022 earnings had been resolved at the Board of Directors’ meeting on May 31, 2023. The appropriations of 2021 earnings had been resolved at the shareholders’ meeting on May 27, 2022. Details are summarized below:	investment property other than land. The appropriations of 2022 earnings had been resolved at the Board of Directors’ meeting on May 31, 2023. The appropriations of 2021 earnings had been resolved at the shareholders’ meeting on May 27, 2022. Details are summarized below:
Dividend per Dividend per share share Amount (indollars) Amount (indollars) Legal reserve appropriated 40,788 $ 13,637 $ Special reserve appropriated (reversed) 10,899) ( 14,829 Cash dividend 222,372 3.00 $ 148,248 2.00 $ YearendedDecember31 2022 2021
	Amount 13,637 $ 14,829 148,248	Dividend per share (indollars)
		2.00 $

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

~35~

(19) Operating revenue

A. Disaggregation of revenue from contracts with customers

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

products:
Auto parts Others Auto parts Others Auto parts Others Auto parts Others	Domestic operating entities Overseas operating entities Total $ 390,670 $ 155,176 545,846 $ 1,063 - 1,063 $ 391,733 $155,176 546,909 $ 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 $ Threemonths ended September30,2023 Threemonths ended September30,2022 Nine months ended September 30, 2023
	Domestic operating entities		Total 1,494,471 $ 10,734

			1,505,205 $
	Domestic operating entities	Overseas operating entities 548,161 $ 22,226 570,387 $	Total
	942,995 $ 5,304 948,299 $		1,491,156 $ 27,530
			1,518,686 $

B. Contract liabilities

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

September 30, 2023 December 31, 2022 September 30, 2022 January 1, 2022

Contract liabilities: Contract liabilities - advance sales receipts	12,902 $	14,852 $	9,506 $ 17,912 $

For the three months and nine months ended September 30, 2023 and 2022, revenue recognized that were included in the contract liability balance at the beginning of the period amounted to $330, $1,984, $5,676 and $6,439, respectively.

~36~

(20) Other income

Other income
		Threemonths ended September30,
		2023		2022
Revenue for Government Grants (Note)	`($`	`12)`	`$`	`-`
Rent income		`2,391`		`9,347`
Dividend income		`3,037`		`4,380`
Other income		`7,705`	`(`	`4,640)`
	`$`	`13,121`	`$`	`9,087`
		Nine months ended	September 30,
		2023		2022
Revenue for Government Grants (Note)	`$`	`3,967`	`$`	`-`
Rent income		`6,149`		`13,758`
Dividend income		`7,107`		`5,532`
Other income		`26,673`		`7,192`
	`$`	`43,896`	`$`	`26,482`

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

(21) Other gains and losses

from the Financial Services Bureau in Anqing. Other gains and losses
			Three months ended		September30,
			2023			2022
Gains on disposal of property, plant and equipment		$	3,965		$	2,030
Foreign exchange gains			82,279			163,552
(Losses) gains on financial assets and liabilities at fair value through profit or loss	(		11,187)			19,911
Other losses	(		451)	(		19,611)
		$	74,606		$	165,882
			Ninemonths ended	September30,
			2023			2022
Gains on disposal of property, plant and equipment		$	3,981		$	3,550
Foreign exchange gains			116,162			376,664
(Losses) gains on financial assets and liabilities at fair value through profit or loss	(		9,398)			55,140
Other losses	(		643)	(		19,955)
		$	110,102		$	415,399

~37~

(22) Finance costs

Finance costs
Expenses by nature Interest expense Less: Capitalisation of qualifying assets Interest expense Less: Capitalisation of qualifying assets Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Depreciation charges on investment property Amortisation Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Depreciation charges on investment property Amortisation	2023 2022 4,767 $ 5,111 $ - - 4,767 $ 5,111 $ 2023 2022 13,443 $ 16,092 $ - 1,193) ( 13,443 $ 14,899 $ Threemonths ended September30, Ninemonths ended September30, 2023 2022 85,524 $ 78,251 $ 90,236 90,167 1,508 2,282 272 238 1,550 2,791 179,090 $ 173,729 $ 2023 2022 235,633 $ 268,063 $ 271,256 268,880 4,895 5,602 832 713 5,265 8,157 517,881 $ 551,415 $ Three months endedSeptember30, Ninemonths ended September30,
	2023 235,633 $ 271,256 4,895 832 5,265 517,881 $

Finance costs

Expenses by nature
Interest expense
Less: Capitalisation of qualifying assets
Interest expense
Less: Capitalisation of qualifying assets
Employee benefit expense
Depreciation charges on property,
plant and equipment
Depreciation charges on right-of-use assets
Depreciation charges on investment property
Amortisation
Employee benefit expense
Depreciation charges on property,
plant and equipment
Depreciation charges on right-of-use assets
Depreciation charges on investment property
Amortisation

2023
2022
4,767
$ 5,111
$ -

-
4,767
$
5,111
$ 2023
2022
13,443
$ 16,092
$ -

1,193)
(
13,443
$ 14,899
$
Threemonths ended September30,
Ninemonths ended September30,
2023
2022
85,524
$ 78,251
$ 90,236
90,167
1,508
2,282
272
238
1,550
2,791
179,090
$ 173,729
$ 2023
2022
235,633
$ 268,063
$ 271,256
268,880
4,895
5,602
832
713
5,265
8,157
517,881
$ 551,415
$ Three months endedSeptember30,
Ninemonths ended September30,

2023
235,633
$ 271,256
4,895
832
5,265
517,881
$

(23) Expenses by nature

~38~

(24) Employee benefit expense

Employee benefit expense
		Three months ended	September30,
		2023		2022
Wages and salaries	$	70,345	$	64,813
Labour and health insurance fees		5,176		5,036
Pension costs		3,389		3,011
Other personnel expenses		6,614		5,391
	$	85,524	$	78,251
		Ninemonths ended	September30,
		2023		2022
Wages and salaries	$	191,690	$	227,938
Labour and health insurance fees		15,699		15,041
Pension costs		10,809		10,903
Other personnel expenses		17,435		14,181
	$	235,633	$	268,063

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, 2023 and 2022, the accrued employees’ compensation and directors’ remuneration were as follows:

Employees’ compensation Directors’ remuneration Employees’ compensation Directors’ remuneration	Threemonths ended	September30,
	2023 2022 2,580 $ 4,160 $ 1,984 4,160 4,564 $ 8,320 $ Ninemonths ended September30,	2022
		4,160 $ 4,160
		8,320 $
	2023 5,679 $ 4,368 10,047 $	2022
		11,209 $ 11,209
		22,418 $

For the three months and nine months ended September 30, 2023 and 2022, the employees’ compensation and directors’ remuneration were estimated and accrued based on 1.3% and 2% as well as 1.0% and 2%, respectively, of distributable profit of current year as of the end of reporting period.

~39~

C. Employees’ compensation and directors’ remuneration of 2022 as resolved by the Board of Directors were in agreement with those amounts recognized in the 2022 financial statements.
D. Information about employees’ compensation and directors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(25) Income tax

A. Income tax expense
(a)Components of income tax expense

			Threemonths ended	Threemonths ended	September30,	September30,
			2023			2022
Current tax:
Current tax on profits for the period		$	42,446		$	47,311
Prior year income tax under (over)estimation			-			-
Origination and reversal of
temporary differences			203	(		1,892)
Income tax expense		$	42,649		$	45,419

			Nine months ended	September 30,
			2023			2022
Current tax:
Current tax on profits for the period		$	95,171		$	109,783
Prior year income tax under (over)estimation	(		13,026)			6
Origination and reversal of
temporary differences			7,848			11,131
Income tax expense		$	89,993		$	120,920

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

~40~

C. As of September 30, 2023, the current income tax liabilities and non-current income tax liabilities amounted to $151,696 and $70,757, respectively. Relevant information is as follows:

==> picture [496 x 137] intentionally omitted <==

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

September 30, 2023 December 31, 2022 September 30, 2022
Income tax payable Income tax payable Income tax payable
Current Non-current Current Non-current Current Non-current
(within one year) (over one year) (within one year) (over one year) (within one year) (over one year)
2020 $ 1,654 $ - $ 21,025 $ 10,513 $ 21,025 $ 15,306
2021 11,999 8,999 11,999 17,998 11,999 20,998
2022 37,055 61,758 110,840 - 108,228 -
2023 100,988 - - - - -
$ 151,696 $ 70,757 $ 143,864 $ 28,511 $ 141,252 $ 36,304
----- End of picture text -----

(a) The Company incurred an income tax of $111,164 from the 2022 profit-seeking enterprise income tax (including the filing of unappropriated retained earnings of 2021), and applied for the installment payments in accordance with Article 26 of the Tax Collection Act and Decree No.11004575510 issued by the Ministry of Finance, R.O.C. on June 3, 2021.
(b) The Company incurred an income tax of $35,997 from the 2021 profit-seeking enterprise income tax (including the filing of unappropriated retained earnings of 2020), and applied for the installment payments in accordance with Article 26 of the Tax Collection Act and Decree No.11004575510 issued by the Ministry of Finance, R.O.C. on June 3, 2021.
(c) The Company incurred an income tax of $63,075 from the 2020 profit-seeking enterprise income tax (including the filing of unappropriated retained earnings of 2019), and applied for the installment payments in accordance with Article 26 of the Tax Collection Act and Decree No.10904533690 issued by the Ministry of Finance, R.O.C. on March 19, 2020.

~41~

(26) Earnings per share

)Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares -Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares -Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Threemonths ended September30,2023
	Weighted average number of ordinary shares outstanding Earnings per share Amount aftertax (shareinthousands) (indollars) 150,709 $ 74,124 2.03 $ 150,709 74,124 - 87 150,709 $ 74,211 2.03 $ Threemonths ended September30,2022	Earnings per share (indollars)
		2.03 $
		2.03 $
	Weighted average number of ordinary shares outstanding Amount aftertax (shareinthousands) 168,696 $ 74,124 168,696 74,124 - 88 168,696 $ 74,212	Earnings per share (indollars)
		2.28 $
		2.27 $

~42~

		Nine months endedSeptember30,	Nine months endedSeptember30,	Nine months endedSeptember30,	2023
			Weighted average
			number of ordinary
			shares outstanding	Earnings per share
	Amount	after tax	(share in thousands)		(in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent	$	336,872	74,124	$	4.54
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent		336,872	74,124
Assumed conversion of all
dilutive potential ordinary shares
-Employees’ compensation		-	128
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all dilutive
potential ordinary shares	$	336,872	74,252	$	4.54
		Nine months endedSeptember30,			2022
			Weighted average
			number of ordinary
			shares outstanding	Earnings per share
	Amount	after tax	(share in thousands)		(in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent	$	423,611	74,124	$	5.71
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent		423,611	74,124
Assumed conversion of all
dilutive potential ordinary shares
-Employees’ compensation		-	324
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all dilutive
potential ordinary shares	$	423,611	74,448	$	5.69
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.

~43~

(27) Supplemental cash flow information

A. Investing activities with partial cash payments:

Supplemental cash flow information A. Investing activities with partial cash payments:
	Nine months endedSeptember30,2023
Purchase of property, plant and equipment		$	136,150
Add:Opening balance of notes payable			102,954
Opening balance of payable on equipment
and construction			65,309
Less:Ending balance of notes payable	(		85,277)
Ending balance of payable on equipment
and construction	(		56,326)
Cash paid during the period		$	162,810
	Ninemonths ended September30,2022
Purchase of property, plant and equipment		$	257,388
Add:Opening balance of notes payable			-
Opening balance of payable on equipment
and construction			48,234
Less:Ending balance of notes payable			-
Ending balance of payable on equipment
and construction	(		77,543)
Cash paid during the period		$	228,079
B. Investing activities with partial cash payments :
	Ninemonths ended September30,2023
Purchase of financial assets at fair value through
profit or loss		$	10,880
Add: Opening balance of securities payables
(shown as other payables)			1,383
Cash paid during the period		$	12,263
	Ninemonths ended September30,2022
Purchase of financial assets at fair value through
profit or loss		$	87,263
Add: Opening balance of securities payables
(shown as other payables)			3,573
Cash paid during the period		$	90,836

~44~

(28) Changes in liabilities from financing activities

				Long-term
				borrowings		Guarantee		Lease liabilities					Liabilities from
		Short-term		(including		deposits		(including non-			Dividends			financing
		borrowings	current portion)			received			current)		payable		activities gross
At January 1, 2023	$	261,721	$	736,259	$	821	$		6,693	$	-	$		1,005,494
Additions for the period		-		-		-			-		222,372			222,372
Changes in cash flow from financing activities	(	161,405)	(	121,132)		390	(		1,808)	(	222,372)	(		506,327)
Changes in other non-cash items		-	(	2,265)		-			-		-	(		2,265)
Impact of changes in foreign
exchange rate	(	2,211)		-	(	9)			-		-	(		2,220)
At September 30, 2023	$	98,105	$	612,862	$	1,202	$		4,885	$	-	$		717,054

~45~

Long-term
borrowings
Short-term
Short-term notes
(including
borrowings
and bills payable
current portion)
At January 1, 2022
264,320
$ 50,000
$ 646,025
$ Additions for the period
-
-
192,540
Changes in cash flow
from financing activities
7,367)
(
50,000)
(
79,376)
(
Changes in other non-cash
items
2,652
-
1,734

Impact of changes in foreign
exchange rate
7,281
-
-
At September 30, 2022
266,886
$ -
$ 760,923
$

Guarantee
Lease liabilities
Liabilities from
deposits
(including non-
Dividends
financing
received
current)
payable
activities gross
929
$ 2,337
$ -
$ 963,611
$ -
-

148,248
340,788
-
1,102)
(
148,248)
(
286,093)
(
-
5,034
-
9,420
-
-
-
7,281
929
$ 6,269
$ -
$
1,035,007
$

~46~

7. Related Party Transactions

Key management compensation

Salaries and other short-term employee benefits Post-employment benefits Salaries and other short-term employee benefits Post-employment benefits	2023 2022 7,078 $ 9,243 $ 14 6 7,092 $ 9,249 $ 2023 2022 19,462 $ 24,060 $ 42 17 19,504 $ 24,077 $ Threemonths ended September30, Ninemonths ended September30,

8. Pledged Assets

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

Pledged asset Property, plant and equipment Right-of-use assets Investment property Financial assets at amortised cost - non-current Total	Book value	September 30, 2022 1,273,018 $ 79,540 15,191 300 1,368,049 $	Purpose
	September 30, 2023 December31,2022 1,181,779 $ 1,237,237 $ 76,087 77,852 16,218 14,713 300 300 1,274,384 $ 1,330,102 $
			Short-term borrowings and long-term borrowings Short-term borrowings Short-term borrowings Natural gas for manufacturing

9. Significant Contingent Liabilities and Unrecognized Contract Commitments

(1) Contingencies

None.

(2) Commitments

As of September 30, 2023, December 31, 2022 and September 30, 2022, the Group’s capital expenditure contracted but not yet incurred in respect of machinery and equipment as well as construction of plants were $349,312, $517,281 and $444,178, respectively.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

None.

~47~

12. Others

(1) Capital management

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

(2) Financial instruments

A. Financial instruments by category

ncial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instruments Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable Other receivables Guarantee deposits paid		September 30, 2023		December 31, 2022		September 30, 2022
		113,987 $ 102,464 $ 501,247 $ 181,156 41,047 547,082 6,097 3,161 1,279,790 $		129,623 $ 75,247 $ 1,036,374 $ 300 27,081 534,281 10,366 4,092 1,612,494 $		148,425 $ 79,807 $ 893,290 $ 233,499 40,653 564,263 4,596 4,095 1,740,396 $

~48~

==> picture [465 x 218] intentionally omitted <==

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

September 30, December 31, September 30,
2023 2022 2022
Financial liabilities
Financial liabilities at amortised cost
Short-term borrowings $ 98,105 $ 261,721 $ 266,886
Notes payable 147,521 179,968 161,080
Accounts payable 128,062 141,453 171,948
Other payables 177,768 197,101 222,414
Long-term borrowings (including
612,862 736,032 760,923
current portion)
Guarantee deposits received 1,202 821 821
$ 1,165,520 $ 1,517,096 $ 1,584,072
Lease liabilities (including current
portion) $ 4,885 $ 6,693 $ 6,269
----- 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).

~49~

C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the United States Dollar and Chinese Renminbi. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.
ii. The companies within the Group are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable United States Dollar and Chinese Renminbi expenditures. Entities of the Group use natural hedge to decrease the risk exposure in the foreign currency through the Group treasury.
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, 2023

	September30,2023
(Foreign currency: functional currency) Financial assets Monetary items USD : NTD EUR : NTD USD : RMB RMB : NTD RMB : USD Financial liabilities Monetary items USD : NTD RMB : USD	Foreign currency amount (Inthousands) Exchange rate 21,346 $ 32.27 125 33.91 83 7.30 4,856 4.42 1,335 0.14 72 $ 32.27 140,719 0.14	Book value (NTD)
		688,835 $ 4,239 2,676 21,439 5,898 2,323 $ 621,663

~50~

December 31, 2022

Foreign currency amount (In thousands)	Exchange rate 30.71 6.96 30.71 September30,2022	Book value (NTD)
36,581 $ 287 156 $		1,123,403 $ 8,807 4,791 $ Book value (NTD)
Foreign currency amount (In thousands)	Exchange rate
32,574 $ 335 182 $ 96 $	31.75 7.12 31.60 31.75	1,034,225 $ 2,385 5,751 $ 3,048 $

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 recognized.

iv. The total exchange gain (loss), including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the three months and nine months ended September 30, 2023 and 2022, amounted to $82,279, $163,552, $116,162 and $376,664, respectively.

~51~

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

Ninemonths ended September	Ninemonths ended September	30,2023
	Sensitivity analysis
Degree of variation Effect onprofit or loss 1% 6,888 $ 1% 42 1% 27 1% 214 1% 59 1% 23 $ 1% 6,217 Nine months endedSeptember		Effect on other comprehensive income
		- $ - - - - - $ - 30,2022
	Sensitivity analysis
Degree of variation 1% 1% 1% 1%	Effect onprofit or loss 10,342 $ 24 $ 58 $ 30 $	Effect on other comprehensive income
		- $ - - $ - $

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets (liabilities) at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in

~52~

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 by 1% with all other variables held constant, per-tax profit for the three months and nine months ended September 30, 2023 and 2022 would have increased/decreased by $112, $545, $1,140 and $1,484, respectively, as a result of losses/gains on equity securities classified as at fair value through profit or loss. Other components of equity would have decreased/increased by $95, $46, $1,025 and $798 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, 2023 and 2022, the Group’s borrowings at variable rate were mainly denominated in New Taiwan Dollars and United States Dollars.
ii. If the borrowing interest rate had increased/decreased by 0.1% with all other variables held constant, profit before tax for the three months and nine months ended September 30, 2023 and 2022 would have increased/decreased by $139, $351, $534 and $771, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of equity instruments stated at amortized cost, at fair value through profit or loss and at fair value through other comprehensive income.
ii. For banks and financial institutions, after reviewing deposit ratings, only the counterparties with good credit quality are accepted. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. The utilization of credit limits is regularly monitored.
iii.The Group adopts credit risk management procedure to assess whether there has been a significant increase in credit risk on that instrument since initial recognition. If the contract payments were past due over 3 months based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

~53~

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 forecast ability to assess the default possibility of accounts receivable. As of September 30, 2023, December 31, 2022 and September 30, 2022, accumulated loss allowance provided for individually assessed receivables amounted to $5,027, $29,383 and $39,134, respectively. The Group used the forecast ability to adjust historical and timely information to assess the default possibility of remaining receivables (including notes receivables). On September 30, 2023, December 31, 2022 and September 30, 2022, the provision matrix is as follows:

Not past due	Not past due	1 to 60 days	1 to 60 days	61 to 120 days	61 to 120 days	121 to 180 days	121 to 180 days	181 to 240 days	Over 241 days	Total
0%-1% 402,446 $ 1,727) ( 400,719 $ Not past due		1%-10% 138,658 $ 1,853) ( 136,805 $ 1 to 60 days		1%-10% 45,104 $ 1,808) ( 43,296 $ 61 to 120 days		20%~40% 10,586 $ 3,277) ( 7,309 $ 121 to 180 days		100% 4,850 $ 4,850) ( - $ 181 to 240 days	100% 16,766 $ 16,766) ( - $ Over 241 days	618,410 $ 30,281) ( 588,129 $ Total
0%-1% 508,355 $ 2,044) ( 506,311 $ Not past due		1%-10% 52,368 $ 4,291) ( 48,077 $ 1 to 60 days		30%-50% 10,777 $ 5,735) ( 5,042 $ 61 to 120 days		30%-50% 4,804 $ 2,872) ( 1,932 $ 121 to 180 days		100% 1,414 $ 1,414) ( - $ 181 to 240 days	100% 19,091 $ 19,091) ( - $ Over 241 days	596,809 $ 35,447) ( 561,362 $ Total
	0%-1% 508,080 $ 1,229) ( 506,851 $		1%-10% 86,283 $ 1,419) ( 84,864 $		15%~20% 10,523 $ 1,263) ( 9,260 $		30%~40% 5,494 $ 1,553) ( 3,941 $	100% 5,729 $ 5,729) ( - $	100% 6,976 $ 6,976) ( - $	623,085 $ 18,169) ( 604,916 $

~54~

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

					2023
	Notes	receivable	Accounts receivable					Total
At January 1	$	144		$	64,686		$	64,830
Provision for (reversal of) impairment loss		56	(		29,182)	(		29,126)
Write-offs		-	(		327)	(		327)
Effect of foreign exchange		-	(		69)	(		69)
At September 30	$	200		$	35,108		$	35,308

					2022
	Notes	receivable	Accounts receivable					Total
At January 1	$	162		$	47,961		$	48,123
Provision for (reversal of) impairment loss	(	78)			7,930			7,852
Effect of foreign exchange		-			1,328			1,328
At September 30	$	84		$	57,219		$	57,303

(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:

September 30, 2023 December 31, 2022 September 30, 2022

Floating rate: Expiring within one year $ 465,224 $ 303,089 $ 300,893 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.

~55~

Non-derivative financial liabilities:

Non-derivative financial liabilities:
September 30, 2023 Short-term borrowings Notes payable Accounts payable Other payables Lease liability Long-term borrowings (including current portion) Non-derivative financial liabilities: December 31, 2022 Short-term borrowings Notes payable Accounts payable Other payables Lease liability Long-term borrowings (including current portion) Non-derivative financial liabilities: September 30, 2022 Short-term borrowings Notes payable Accounts payable Other payables Lease liability Long-term borrowings (including current portion)	Less than 1year	Between 1 and2years	Between 2 and 3 years - $ - - - 1,140 152,885 Between 2 and 3 years	Between 3 and 5 years	Over 5 years	Total
	99,864 $ 147,521 128,062 177,768 1,740 155,588 Less than 1year	- $ - - - 1,739 154,904 Between 1 and2years		- $ - - - 362 91,900 Between 3 and 5 years	- $ - - - - 69,519 Over 5 years - $ - - - - 92,287 Over 5 years	99,864 $ 147,521 128,062 177,768 4,981 624,796 Total
	266,464 $ 179,968 141,453 197,101 2,299 176,790 Less than 1year	- $ - - - 1,739 155,796 Between 1 and2years	- $ - - - 1,630 153,963 Between 2 and 3 years	- $ - - - 1,177 183,047 Between 3 and 5 years		266,464 $ 179,968 141,453 197,101 6,845 761,883 Total
	271,789 $ 161,080 171,948 222,414 1,657 163,606	$ - - - - 1,657 154,328	$ - - - - 1,657 153,025	$ - - - - 1,431 212,374	$ - - - - - 99,348	271,789 $ 161,080 171,948 222,414 6,402 782,681

(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.

~56~

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 amortized cost, guarantee deposits paid, short-term borrowings, notes payable, accounts payable other payables, long-term borrowings (including current portion) , guarantee deposits received and lease liabilities (including current portion).
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 on September 30, 2023 and 2022, are as follows:
(a) The related information of natures of the assets and liabilities is as follows:

September 30, 2023 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income - Equity securities December 31, 2022 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income - Equity securities 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	Level 1 113,863 $ 102,464 $ Level 1 127,058 $ 75,247 $ Level 1 142,674 $ 79,807 $	Level 2 124 $ - $ Level 2 2,565 $ - $ Level 2 5,751 $ - $	Level3 - $ - $ Level3 - $ - $ Level3 - $ - $	Total
				113,987 $
				102,464 $
				Total
				129,623 $
				75,247 $
				Total
				148,425 $
				79,807 $

~57~

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

Listed shares

Market quoted price Closing price

ii. Foreign exchange swap contracts are usually valued based on the current foreign exchange swap rate.
D. For the nine months ended September 30, 2023 and 2022, there was no transfer between Level 1 and Level 2.
E. For the nine months ended September 30, 2023 and 2022, there was no transfer into or out from Level 3.

13. Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital: None.
E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paidin capital or more: None.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 3.
I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Notes 6(2) and 12(2).
J. Significant inter-company transactions during the reporting periods: Please refer to table 4.

(2) Information on investees

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

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 6.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to Note 13(1).

~58~

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

14. Segment Information

(1) General information

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

Domestic operation area - domestic consolidated entities.

Foreign operation area - foreign consolidated entities.

(2) Measurement of segment information

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

(Remainder of page intentionally left blank)

~59~

(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:

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		Segment revenue	Segment revenue	Nine months ended September30,2022		Segment income(loss)	Segment income(loss)	Nine months ended September30,2022
	Three months ended September30,2023	Three months ended September30,2022	Nine months ended September30,2023		Three months ended September30,2023	Three months ended September30,2022	Nine months ended September30,2023
	393,662 $ 155,763 5,517 8,033) ( 546,909 $	298,414 $ 210,946 4,509 408) ( 513,461 $	1,045,876 $ 459,573 22,145 22,389) ( 1,505,205 $	953,229 $ 562,352 27,530 24,425) ( 1,518,686 $	116,705 $ 20,029) ( 3,273) ( 5,976 99,379 $ 9,519 2,391 3,037 7,693 82,279 11,187) ( 3,965 451) ( 4,767) ( 191,858 $	40,164 $ 15,871) ( 7,773 6,612 38,678 $ 3,873 9,347 4,380 4,640) ( 163,552 19,911 2,030 19,611) ( 5,111) ( 212,409 $	288,314 $ 46,489) ( 5,598) ( 19,220 255,447 $ 27,739 6,149 7,107 30,640 116,162 9,398) ( 3,981 643) ( 13,443) ( 423,741 $	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 $

~60~

Table 1

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

Loans to others

Nine months ended September 30, 2023

Expressed in thousands of NTD

(Except as otherwise indicated)

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the nine months ended September 30,2023	Balance at September 30,2023	Actual amount drawn down (Note 2)	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party (Note 3)	Ceiling on total loans granted(Note 3)	Footnote
													Item	Value
0 0 0	Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD.	RISE BRIGHT HOLDINGS LTD. CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. LIAONING HETAI AUTOMOTIVE PARTS CO.,LTD	Other receivables Other receivables Other receivables	Y Y Y	225,890 $ 350,536 253,446	112,945 $ 285,996 182,806	112,945 $ 212,178 129,826	1.40% 4%~4.35% 4.35%~5%	2 2 2	- $ - -	Operating capital Operating capital Operating capital	- $ - -	N N N	- $ - -	382,580 $ 382,580 382,580	1,530,322 $ 1,530,322 1,530,322	Notes 5,8 Notes 6,9 Notes 7,10

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

(1)The Company is ‘0’.
(2)The subsidiaries are numbered in order starting from ‘1’.

Note 2: Balance at September 30, 2023 and actual amount drawn down were calculated at the USD and RMB buying and selling spot exchange rate of 32.27 and 4.415 on September 30, 2023.

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

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

(1) Fill in ‘1’ for business transaction.
(2) Fill in ‘2’ for short-term financing.

Note 5:The maximum outstanding balance of loans granted to RISE BRIGHT HOLDINGS LTD. by Y.C.C. amounted to NT$225,890. This is because the amount of NT$225,890 includes NT$112,945 that was matured on May 26, 2023. The remaining total facility was NT$112,945. Note 6:The maximum outstanding balance of loans granted to CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. by Y.C.C. amounted to NT$350,536. This is because the amount of NT$350,536 includes NT$64,540 that was matured on May 14, 2023. The remaining total facility was NT$285,996.

Note 7:The maximum outstanding balance of loans granted to LIAONING HETAI AUTOMOTIVE PARTS CO., LTD by Y.C.C. amounted to NT$253,446. This is because the amount of NT$253,446 includes NT$70,640 that was matured on July 24, 2023 and August 8, 2023. The remaining total facility was NT$182,806.

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

Note 9: Loans granted to CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. approved by the Board of Directors amounted to US$4,000 thousand and RMB$ 50,160 thousand.

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

Table 1, Page 1

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

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

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

September 30, 2023

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of September 30,2023	As of September 30,2023
				Number of shares	Book value	Ownership (%)	Fair value
Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. UNITED SKILLS CO., LTD. UNITED SKILLS CO., LTD. UNITED SKILLS CO., LTD. UNITED SKILLS CO., LTD. UNITED SKILLS CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD.	HIROCA HOLDINGS LTD. GORDON AUTO BODY PARTS CO., LTD. ROUNDTOP MACHINERY INDUSTRIES CO., LTD. SHUN ON ELECTRONIC CO., LTD. NUUO INC. TANVEX BIOLOGICS CORPORATION ROUNDTOP MACHINERY INDUSTRIES CO., LTD. WANHWA ENTERPRISE COMPANY COWEALTH MEDICAL HOLDING CO., LTD. GLOBAL BRANDS MANUFACTURE LTD. TANVEX BIOLOGICS CORPORATION HIROCA HOLDINGS LTD. GORDON AUTO BODY PARTS CO., LTD.	N N N N N N N N N N N N N	Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Valuation adjustment Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Valuation adjustment	443,000 2,518,000 67,000 73,000 5,071 277,869 355,000 100,000 68,000 20,000 1,667 855,000 2,739,000	27,517 $ 25,540 1,030 3,342 278 37,716 5,132 1,227 2,038 769 235 9,039 113,863 $ 81,855 $ 46,680 (26,071) 102,464 $	0.53% 1.52% 0.08% 0.05% 0.04% 0.21% 0.42% 0.02% 0.09% 0.00% 0.00% 1.02% 1.66%	16,192 $ 65,468 1,156 2,241 226 18,172 6,124 1,235 1,700 1,240 109
							113,863 $
							31,250 $ 71,214
							102,464 $

Table 2, Page 1

Table 3

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, 2023

Expressed in thousands of NTD

(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30, 2023 (Note 1)	Turnover rate(Note 5)	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date (Note 6)	Allowance for doubtful accounts	Footnote
					Amount	Action taken
Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD.	LIAONING HETAI AUTOMOTIVE PARTS CO., LTD CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. RISE BRIGHT HOLDINGS LTD.	Subsidiary Subsidiary Subsidiary	137,937 $ 220,872 120,361	- - -	- $ - -	- - -	- $ - -	- $ - -	Note 2 Note 3 Note 4

Note 1: The transactions were eliminated when preparing the consolidated financial statements. Note 2:It pertains to principal and interest aggregating to $132,709 from loans to the subsidiary and technical service expense amounting to $5,228 shown as other receivables. Note 3: It pertains to principal and interest aggregating to $215,063 from loans to the subsidiary and technical service expense amounting to $5,809 shown as other receivables. Note 4: It pertains to principal and interest aggregating to $113,500 from loans to the subsidiary shown as other receivables and sales of product amounting to $6,861 shown as accounts receivable. Note 5: Only accounts receivable was used for the calculation of turnover rate.

Note 6: Subsequent collection is the amount collected as of November 7, 2023.

Table 3, Page 1

Table 4

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

Significant inter-company transactions during the reporting periods

Nine months ended September 30, 2023

Expressed in thousands of NTD

(Except as otherwise indicated)

Transaction

						Transaction
Number (Note1)	Companyname	Counterparty	Relationship (Note 2)	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. CHANG JIE TECHNOLOGY CO., LTD. LIAONING HETAI AUTOMOTIVE PARTS CO.,LTD CHANG JIE TECHNOLOGY CO., LTD. CHANGSHU XINXIANG AUTOMOBILE PARTS CO., LTD.	1 1 1 1 1 3	Other receivables Other receivables Other receivables Other receivables Accounts receivable Other payable	113,500 $ 220,872 12,004 137,937 11,105 30,987	Based on the contract Based on the contract Based on the contract Based on the contract Based on the contract Based on the contract	2.12% 4.13% 0.22% 2.58% 0.21% 0.58%

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

(1) Parent company is ‘0’.

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

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, and subsidiaries or between subsidiaries refer to it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):

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

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

Note 4: Transaction amount that did not reach $10 million or more will not be disclosed.

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

Table 4, Page 1

Table 5

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

Information on investees

Nine months ended September 30, 2023

Expressed in thousands of NTD

Table 5										Expressed in thousands of NTD	Expressed in thousands of NTD
Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at September 30,2023			Net profit (loss) of the investee for the nine months ended September 30,2023	Investment income (loss) recognised by the Company for the nine months ended September 30,2023 Footnote (Except as otherwise indicated)
				Balance as at September 30,2023	Balance as at December 31,2022	Number of shares	Ownership (%)	Book value
Y.C.C. PARTS MFG. CO., LTD. Y.C.C. PARTS MFG. CO., LTD. RISE BRIGHT HOLDINGS LTD.	UNITED SKILLS CO., LTD. RISE BRIGHT HOLDINGS LTD. CHINA FIRST HOLDINGS LTD.	Taiwan Samoa Samoa	Manufacturing vehicles and their parts Holding company Holding company	50,000 $ 1,235,358 1,158,673	50,000 $ 1,235,358 1,158,673	5,000 - -	100.00% 100.00% 89.44%	51,098 $ 473,637 425,492	2,813 $ 48,584) ( 50,062) (	2,813 $ 48,584) ( 44,775) (	Subsidiary Subsidiary (Note) Subsidiary (Note)

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

Table 5, Page 1

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

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

Information on investments in Mainland China

Nine months ended September 30, 2023

Amount remitted from Taiwan to

					Amount remitted from Taiwan to	Amount remitted from Taiwan to
Investeein Mainland China	Mainbusiness activities	Paid-incapital	Investment method (Note1)	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2023	Mainland China/Amount remitted back to Taiwan for the nine months ended September 30, 2023		Accumulated amount of remittance from Taiwan to Mainland China as of September30,2023	Net income of investee as of September30,2023	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine months ended September30,2023 (Note2)	Book value of investments in Mainland China as of September30,2023	Accumulated amount of investment income remitted back to Taiwan as of September30,2023	Footnte
					Remitted to Mainland China	Remitted back toTaiwan
CHANGSHU FUTE AUTOMOTIVE TRIM CO., LTD. LIAONING HETAI AUTOMOTIVE PARTS CO., LTD. CHANGSHU XINXIANG AUTOMOBILE PARTS CO., LTD. CHANG JIE TECHNOLOGY CO., LTD.	Injecting and surface coating air bag covers of automobiles,producing and selling various accessories of automobiles and electronic plastic parts Injecting and surface coating parts of air bags with inflation system,covers, interior and exterior accessories of air bag and electronic equipment systems Manufacturing and selling parts, interior and exterior accessories and electronic system parts of automobiles and molds, gauges, clamps and jigs for injection Injecting and surface coating air bag covers of automobiles,producing and selling various accessories of automobiles and automatic production equipments for spraying	423,150 $ 347,588 60,450 176,406	2 2 2 2	827,609 $ 268,009 63,055 177,602	- $ - - -	- $ - - -	827,609 $ 268,009 63,055 177,602	60,469) ($ 12,467 98 2,917) (	89.44% 73.89% 89.44% 99.83%	54,083) ($ 9,211 88 2,912) (	145,280 $ 203,239 56,390 149,587	- $ - - -	Note 3 Note 7 Note 4 Note 7 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, 2023 was based on the financial statements that were reviewed by parent company’s CPA.

Investment amount approved by the Investment Commission Ceiling on investments in Accumulated amount of remittance from of the Ministry of Mainland China imposed Taiwan to Mainland China as of Economic Affairs by the Investment Company name September 30, 2023 (MOEA) Commission of MOEA Y.C.C. PARTS MFG. CO., $ 1,336,275 $ 1,423,884 $ 2,354,479 LTD.

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

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

Note 3: At the end of this period, the investment amount transmitted from Taiwan to mainland China was US$42,961 thousand. The investment amount permitted by the Investment Commission of Ministry of Economic Affairs(MOEA) was US$45,765 thousand. Note 4: The investment amount permitted by the Investment Commission of Ministry of Economic Affairs(MOEA) to CHANG JIE TECHNOLOGY CO., LTD. was RMB$10,000 thousand.

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

Table 6, Page 1

Table 7

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

Major shareholders information

September 30, 2023

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

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

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

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

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

Table 7, Page 1

AI assistant

Y.C.C. — Interim / Quarterly Report 2023

51783_rns_2023-12-22_52688857-cb11-4865-b301-24f9a2a392d0.pdf

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

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS ’ REVIEW REPORT TRANSLATED FROM CHINESE

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

Scope of review

Basis for qualified conclusion

Qualified conclusion

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2023, DECEMBER 31, 2022 AND SEPTEMBER 30, 2022

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2023, DECEMBER 31, 2022 AND SEPTEMBER 30, 2022

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

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

THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

Y.C.C. PARTS MFG. CO. LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

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

B. Subsidiaries included in the consolidated financial statements:

(4) Employee benefits

(5) Income tax

(6) Dividends

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

6. Details of Significant Accounts

(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

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

(5) Inventories

(7) Property, plant and equipment

(9) Investment property

(10) Other non-current assets

(11) Short-term borrowings

(12) Other payables

- (13) Long term borrowings

(14) Government grants

(15) Pensions

(17) Capital surplus

(18) Retained earnings

(19) Operating revenue

B. Contract liabilities

(20) Other income

(21) Other gains and losses

(22) Finance costs

(23) Expenses by nature

(24) Employee benefit expense

(25) Income tax

(26) Earnings per share

(27) Supplemental cash flow information

A. Investing activities with partial cash payments:

(28) Changes in liabilities from financing activities

7. Related Party Transactions

8. Pledged Assets

9. Significant Contingent Liabilities and Unrecognized 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

Price risk

(c) Liquidity risk

Non-derivative financial liabilities:

(3) Fair value information

13. Supplementary Disclosures

(1) Significant transactions information

(2) Information on investees

(3) Information on investments in Mainland China

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

14. Segment Information

(1) General information

Y.C.C. Interim / Quarterly Report 2023

INDEPENDENT AUDITORS `’` REVIEW REPORT TRANSLATED FROM CHINESE