Stock code: 3622

Young Fast Optoelectronics Co., Ltd. and Subsidiaries

Consolidated Financial Statements and Independent Auditors’ Report

2022 and 2021

Company address: No. 31, Jingjian 1st Road, Guanyin Industrial Zone, Guanyin District, Taoyuan City Telephone: (03) 483-3665

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Item
I.
Cover
II.
Contents
III. Statement
IV. Auditing Report of the Certified Accountants
V.
Consolidated Balance Sheet
VI. Consolidated Statements of Comprehensive Income
VII. Consolidated Statements of Changes in Equity
VIII. Consolidated Statements of Cash Flows
IX. Notes to the Consolidated Financial Statements
I. Company history
(II) Approval date and procedures of the financial statements
(III) New standards, amendments and interpretations adopted
(IV) Summary of significant accounting policies
(V) Significant accounting assumptions and judgments, and major
sources of estimation uncertainty
(VI) Explanation of significant accounts
(VII) Related party transactions
(VIII) Pledged assets
(IX) Significant commitments and contingencies
(X) Losses due to major disasters
(XI) Subsequent Events
(XII) Other
(XIII) Other disclosures
1. Information on significant transactions
2. Information on investees
3. Information on investment in Mainland China
4. Information on major shareholders
(XIV) Segment information Page

1
2
3
4
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6
7
8
9
10
10
11～28
28
28～62
62
64
64
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65～68
68
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70

Item I. Cover II. Contents III. Statement IV. Auditing Report of the Certified Accountants V. Consolidated Balance Sheet VI. Consolidated Statements of Comprehensive Income VII. Consolidated Statements of Changes in Equity VIII. Consolidated Statements of Cash Flows IX. Notes to the Consolidated Financial Statements I. Company history (II) Approval date and procedures of the financial statements (III) New standards, amendments and interpretations adopted (IV) Summary of significant accounting policies (V) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (VI) Explanation of significant accounts (VII) Related party transactions (VIII) Pledged assets (IX) Significant commitments and contingencies (X) Losses due to major disasters (XI) Subsequent Events (XII) Other (XIII) Other disclosures 1. Information on significant transactions 2. Information on investees 3. Information on investment in Mainland China 4. Information on major shareholders (XIV) Segment information	Page
	1 2 3 4 5 6 7 8 9 10 10 11`～`28 28 28`～`62 62 64 64 64 64 64 65`～`68 68 68 69 70

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Statement

For the year 2022 (January 1 - December 31, 2022), the Company complies with the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises in that the companies that should be included in the preparation of the consolidated financial statements of the affiliated companies are the same as the companies that should be included in the preparation of the consolidated financial statements of the parent and subsidiary companies in accordance with IFRS 10 as approved by the Financial Supervisory Commission. In addition, the relevant information that should be disclosed in the consolidated financial statements of the associated companies has been disclosed in the consolidated financial statements of the parent and subsidiary companies of the former disclosure. Therefore, there is no separate preparation of consolidated financial statements of associated companies.

Hereby declared

Company name: Young Fast Optoelectronics Co., Ltd. Date: February 23, 2023

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Accountants’ Audit Report

To the Board of Directors of Young Fast Optoelectronics Co., Ltd.:

Audit Opinion

We have completed our review of Young Fast Optoelectronics Co. and Subsidiaries (Young Fast Group) Consolidated Balance Sheet for December 31, 2022 and 2021; and Consolidated Statements of Comprehensive Income, Consolidated Statements of Changes in Equity, Consolidated Statements of Cash Flows, and Notes to the Consolidated Financial Statements (including a summary of significant accounting policies) for January 1 – December 31, 2022 and 2021.

In our opinion, the aforementioned consolidated financial statements in all major respects are in compliance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretation, or SIC Interpretation endorsed by the Financial Supervisory Commission. They are sufficient to adequately express the consolidated financial status of Young Fast Group as of December 31, 2022 and 2021 and its consolidated financial performance and consolidated cash flow from January 1 through December 31, 2022 and 2021.

Basis for audit opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of Young Fast Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters refer to the most important matters for the audit of Young Fast Group's 2022 consolidated financial statements based on our professional judgment. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In our judgment, revenue recognition constitutes a key audit matter to be communicated in the audit report.

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For details of accounting policies regarding revenue recognition, please refer to Note 4 (16) of the consolidated financial statements on Recognition of Revenue; for details of revenue related disclosures, please refer to Note 6 (22) the consolidated financial statements. Explanation of Key Audit Matters:

Sales revenue of Young Fast Group stands as the primary indicator for investors and management in evaluating its financial or business performance. Moreover, as a listed company, Young Fast Group is highly regarded by the investing public. Therefore, we identify revenue recognition as an important item in the audit of current year financial statements. Corresponding Audit Procedures:

Our main audit procedures regarding the above key audit matters include:

Testing the effectiveness of internal control design and implementation related to revenue recognition.
Conducting trend analysis for the top ten customers in terms of sales, including a comparison of the customer list and sales revenue amounts between the current period and the most recent period and the same period of last year to assess whether there are any significant abnormalities. If there are major changes, the causes are identified and analyzed.
Sampling and checking sales transactions of the whole year to evaluate the authenticity of sales transactions, the correctness of the recognized amounts of sales revenue, and the reasonableness of the time of accounting.
Testing a sample of sales transactions in the period before and after the end of the year to assess whether the timing of revenue recognition is appropriate.

Other Matters

Young Fast Optoelectronics Co., Ltd. has prepared parent company only financial statements for 2022 and 2021, and the audit reports with unqualified opinions that we have issued are on file for reference.

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

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

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

Those charged with governance (including the Audit Committee) are responsible for overseeing the financial reporting process of Young Fast Group.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

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

As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also perform the following tasks:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of Young Fast Group.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern of Young Fast Group. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause Young Fast Group to cease to continue as a going concern.

～ 4-2 ～

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the accompanying notes, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence for the parent company only financial information within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the Group. We remain solely responsible for our audit opinion regarding the Group.

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

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

From the matters communicated with the governance unit, we have determined key audit matters of Young Fast Group's 2022 consolidated financial statements. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

KPMG Taiwan CERTIFIED PUBLIC ACCOUNTANTS February 23, 2023

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries

Consolidated balance sheet

December 31, 2022 and 2021

Unit: NTD Thousand

2022.12.31 Amount ％ $ 546,502 9 74,970 1 3,196,620 51 70,710 1 102,952 2 96,016 2 24,242 - 5,758 - 237,781 4 11,249 - 4,366,800 70	2022.12.31 Amount ％ $ 546,502 9 74,970 1 3,196,620 51 70,710 1 102,952 2 96,016 2 24,242 - 5,758 - 237,781 4 11,249 - 4,366,800 70	2022.12.31 Amount ％ $ - - 5,579 - 546 - 96,380 2 5,607 - 184,978 3 20,408 - 34,249 1 113 - 17,168 - 5,780 - 370,808 6 5,337 - 93,936 1 5,164 - 932 - 19,029 - 51,549 1 82,451 2 258,398 4 629,206 10 1,513,276 24	2022.12.31 Amount ％ $ - - 5,579 - 546 - 96,380 2 5,607 - 184,978 3 20,408 - 34,249 1 113 - 17,168 - 5,780 - 370,808 6 5,337 - 93,936 1 5,164 - 932 - 19,029 - 51,549 1 82,451 2 258,398 4 629,206 10 1,513,276 24	2021.12.31 Amount ％ 132,641 2 6,028 - 675 - 148,099 3 8,675 - 175,032 4 19,604 - 16,104 - 94 - 17,421 - 4,496 -
	70		6	528,869 9
154,905 - 327,189 870,838 134,793 303,792 5,172 39,813 8,964 69,594	2 - 5 14 2 5 - 1 - 1			8,405 - 80,284 1 6,131 - 2,003 - 17,254 - 61,622 1 72,505 1
				248,204 3
				777,073 12
				1,513,276 25
1,915,060	30
		2,001,516 32		2,077,180 34
		71,324 1 817,484 13		43,385 1 532,991 9
		888,808 14		576,376 10
		1,187,733 19		1,062,751 18
		5,591,333 89		5,229,583 87
		61,321 1		53,914 1
		5,652,654 90		5,283,497 88
		$ 6,281,860 100		6,060,570 100

1xxx Total assets

$ 6,281,860 100 6,060,570 100

(Please refer to the attached notes to the consolidated financial statements)

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries Consolidated Statements of Comprehensive Income

January 1 to December 31, 2022 and 2021

Young Fast Optoelectronics Co., Ltd. and Subsidiaries Consolidated Statements of Comprehensive Income January 1 to December 31, 2022 and 2021
4000 Operating revenue (Note 6 (21) and 7) 5000 Operating costs (Notes 6 (7), (10), (11), (13), (15), (16), (17), 7, and 12) 5900 Gross profit 6000 Operating expenses (Notes 6 (5), (6), (10), (11), (13), (15), (17), (22), 7, and 12): 6100 Marketing expenses 6200 Management expenses 6300 Research and development expenses 6450 Expected credit loss Total operating expenses 6900 Net operating profit (loss) 7000 Non-operating revenue and expenses (Notes 6 (2), (8), (9), (12), (15), (23), 7 and 12): 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs, net 7060 Share of profit of associates accounted for using equity method Total non-operating revenue and expenses 7900 Net profit from continuing operations before tax 7950 Less: Income tax expense (Note 6 (18)) 8000 Net profit from continuing operations Profit or loss from discontinued operations: 8100 Gain (loss) from discontinued operations, net of tax (Note 6 (8)) 8200 Net profit for the period 8300 Other comprehensive income (Note 6 (9), (17), (18), and (19)): 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8311 Remeasurement of defined benefit plan 8316 Unrealized losses from investments in equity instruments measured at fair value through other comprehensive income 8320 Share of other comprehensive profits and losses of affiliated companies recognized using the equity method 8349 Income tax related to components of other comprehensive Total items that will not be reclassified to profit or loss 8360 Items that may subsequently be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8370 Share of other comprehensive profits and losses of affiliated companies recognized using the equity method 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss Total items that may subsequently be reclassified to profit or loss 8300 Other comprehensive income for the current period 8500 Total comprehensive income for the current period Profit attributable to: 8610 Owners of parent 8620 Non-controlling interests Comprehensive income attributable to: 8710 Owners of parent 8720 Non-controlling interests 9750 Basic EPS (Unit: New Taiwan Dollars) (Note 6 (20)) Net profit derived from continuing operations Net profit (loss) derived from discontinued operations 9850 Diluted EPS (Unit: New Taiwan Dollars) (Note 6 (20)) Net profit derived from continuing operations Net profit (loss) derived from discontinued operations	Unit: NTD Thousand 2022 2021 Amount ％ Amount ％ $ 1,545,646 100 1,449,291 100 1,137,404 74 1,167,724 81 408,242 26 281,567 19 46,369 3 38,561 3 135,733 9 139,071 10 41,092 2 45,049 3 (15,574) (1) 4,795 - 207,620 13 227,476 16 200,622 13 54,091 3 3,600 - 293 - 204,496 13 185,534 13 (7,863) - 2,132 - (3,495) - (3,250) - 52,576 3 25,702 2 249,314 16 210,411 15 449,936 29 264,502 18 16,066 1 29,973 2 433,870 28 234,529 16 - - 61,936 4 433,870 28 296,465 20 2,714 - (50) - 21,486 1 574,849 40 139 - (3) - 543 - (10) - 23,796 1 574,806 40 102,110 7 (110,763) (8) 1,386 - (567) - - - - - 103,496 7 (111,330) (8) 127,292 8 463,476 32 $ 561,162 36 759,941 52 $ 416,051 27 279,430 19 17,819 1 17,035 1 $ 433,870 28 296,465 20 $ 543,343 35 742,906 51 17,819 1 17,035 1 $ 561,162 36 759,941 52 $ 2.75 1.44 - 0.41
	Amount		Amount 1,449,291 1,167,724
	$ 1,545,646 1,137,404
	408,242	26	281,567
	46,369 135,733 41,092 (15,574)	3 9 2 (1)	38,561 139,071 45,049 4,795
	207,620	13	227,476
	200,622	13	54,091
	3,600 204,496 (7,863) (3,495) 52,576	- 13 - - 3	293 185,534 2,132 (3,250) 25,702
	249,314	16	210,411
	449,936 16,066	29 1	264,502 29,973
	433,870 -	28 -	234,529 61,936
	433,870	28	296,465
	2,714 21,486 139 543 23,796	- 1 - -	(50) 574,849 (3) (10)
		1	574,806
	102,110 1,386 -	7 - -	(110,763) (567) -
	103,496	7	(111,330)
	127,292	8	463,476
	$ 561,162	36	759,941
	$ 416,051 17,819	27 1	279,430 17,035
	$ 433,870	28	296,465
	$ 543,343 17,819	35 1	742,906 17,035
	$ 561,162	36	759,941
	$	2.75 -
	$	2.75		1.85
	$	2.74 -		1.43 0.41
	$	2.74		1.84

(Please refer to the attached notes to the consolidated financial statements)

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries Consolidated Statements of Changes in Equity

January 1 to December 31, 2022 and 2021

Unit: NTD Thousand

		Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Non- controlling interests Total equity 44,316 4,682,321 - - - (151,328) 17,035 296,465 - 463,476 17,035 759,941 (7,437) (7,437) 53,914 5,283,497 - - - (105,929) - (75,664) 17,819 433,870 - 127,292 17,819 561,162 (10,412) (10,412) 61,321 5,652,654
Share capital from common stock	Capital reserve	Retained earnings			Total other equity interest Exchange differences on translation of foreign financial statements Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Total equity attributable to owners of parent Total
		Legal reserve	Undistributed surplus earnings	Total 296,989 - - 279,430 (43)
$ 1,513,276 - - - -	2,228,508 - (151,328) - -	24,523 18,862 - - -	272,466 (18,862) - 279,430 (43)		21,361 577,871 - - - - - - (111,330) 574,849	599,232 4,638,005 - - - (151,328) - 279,430 463,519 463,476
-	-	-	279,387	279,387	(111,330) 574,849	463,519 742,906	17,035
-	-	-	-	-	- -	- -	(7,437)
1,513,276 - - - - -	2,077,180 - - (75,664) - -	43,385 27,939 - - - -	532,991 (27,939) (105,929) - 416,051 2,310	576,376 - (105,929) - 416,051 2,310	(89,969) 1,152,720 - - - - - - - - 103,496 21,486	1,062,751 5,229,583 - - - (105,929) - (75,664) - 416,051 124,982 127,292
-	-	-	418,361	418,361	103,496 21,486	124,982 543,343
-	-	-	-	-	- -	- -
$ 1,513,276	2,001,516	71,324	817,484	888,808	13,527 1,174,206	1,187,733 5,591,333

(Please refer to the attached notes to the consolidated financial statements)

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries Consolidated Statements of Cash Flows

January 1 to December 31, 2022 and 2021

Unit: NTD Thousand

Cash flows from operating activities: Profit (loss) from continuing operations before tax Pre-tax net profit (loss) from discontinued operations Net profit before tax for the current period Adjustments: Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Expected credit loss Loss (gain) on financial assets at fair value through profit or loss Interest expense Interest income Dividend income Share of profit of associates accounted for using equity method Proceeds from disposal of property, plant and equipment Lease modification benefits Lease modification gains Disposal gain on discontinued operations Total income and expense items Changes in operating assets and liabilities: Changes in operating assets, net: Current Financial Assets at Fair Value through Profit or Loss Notes receivable Accounts receivable (including related parties) Other receivables (including related parties) Inventory Other current assets Other non-current assets Total changes in operating assets, net Changes in operating liabilities, net: Contract liabilities Notes payable Accounts payable (including related parties) Other payables Provisions Other current liabilities Non-current net defined benefit liability Decrease in other operating liabilities Net changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Interest paid Payment of income tax Net cash inflow from operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through other comprehensive income Capital reduction of non-current financial assets at fair value through other comprehensive income Acquired financial assets measured at amortized cost Disposal of financial assets at amortised cost Acquisition of property, plant and equipment Disposal of property, plant and equipment Increase in refundable deposits Acquisition of intangible assets Acquisition ofInvestment real estate Decrease (increase) in prepaid equipment Dividends received Net cash flows (used in) from investing activities Cash flows from (used in) financing activities: Increase in short-term borrowings Decrease in short-term borrowings Increase (decrease) in deposits received Payment of lease liabilities Payment of cash dividends Change in non-controlling interests Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents for the period Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2022 $ 449,936 -	2021 264,502 61,936
	449,936 117,294 1,064 (15,574) (7,120) 3,495 (3,600) (128,166) (52,576) (16,264) (28,163) (292) -	326,438 94,721 331 4,795 3,780 3,250 (351) (115,581) (25,702) (120) - (39) (65,633)
	(129,902)	(100,549)
	(10,718) 25,347 54,043 (2,122) 89,551 5,505 (2,229)	- (8,085) (92,206) 1,930 (129,814) (4,619) 13,979
	159,377	(218,815)
	(449) (129) (54,787) 12,203 30,830 1,284 (354)	(8,955) 643 26,037 12,697 39,764 181 (385)
	(11,402)	69,982
	147,975	(148,833)
	18,073	(249,382)
	468,009 3,600 (3,495) (23,679)	77,056 351 (3,250) (14,839)
	444,435	59,318
	(42,759) - (70,710) 2,632 (26,968) 17,270 1,008 - (816) (8,964) 152,407	(129,276) 19,418 (827) - (73,301) 120 (361) (6,138) - 5,551 139,822
	23,100	(44,992)
	806,873 (946,524) 3,897 (17,387) (181,593) (10,412)	797,760 (689,529) 2,625 (17,602) (151,328) (7,437)
	(345,146)	(65,511)
	66,060	(24,635)
	188,449 358,053	(75,820) 433,873
	$ 546,502	358,053

(Please refer to the attached notes to the consolidated financial statements)

～ 8 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Young Fast Optoelectronics Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements

2022 and 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

I. Company history

Young Fast Optoelectronics Co., Ltd. (“the Company”), previously known as Dahelong Electromechanical Co., Ltd., was established and registered with the approval of the Ministry of Economic Affairs on July 30, 2002, in accordance with the Company Law and its relevant laws and regulations, and obtained registration as a for-profit enterprise with its main business being the manufacture of power cable accessories such as power generation, transmission and distribution. Please refer to Note 14 for details.

(Original) Young Fast Optoelectronics Co., Ltd. (formerly Young Fast Optoelectronics Company) was established on August 1, 2007 in accordance with the Business Mergers and Acquisitions Act. Its main business items are the research and development, manufacturing, and sales of various types of touch panels. Please refer to Note 14 for details.

In order to improve our operational performance and competitiveness, the Company passed a resolution of its extraordinary shareholders’ meeting of November 23, 2007 to undergo a merger with the former Young Fast Optoelectronics Company and change the Company’s name to Young Fast Optoelectronics Co., Ltd. Following the merger, the Company was to be the surviving company with a swap of 0.5 common shares of the original Young Fast Optoelectronics for 1 common share of the Company. All rights and obligations of the original Young Fast Optoelectronics was to be generally accepted by the Company. The Company issued 84,000 thousand ordinary shares for the merger and capital increase, and December 24, 2007 was the base date for the merger and capital increase and issuance of new shares.

The Company passed a resolution of the Board of Directors on April 28, 2017 such that in accordance with Article 19 of the Business Mergers And Acquisitions Act and taking May 31, 2017 as the base date, a simple merger was undertaken with the 100%owned reinvested companies Lucky Chance Enterprise Co., Ltd. (“Lucky Chance”) and with Lead Well Technology Co., Ltd. (“Lead Well”). After the mergers, Lucky Chance and Lead Well were to be the extinguished companies and the Company was to be the surviving company.

～ 9 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

II. Approval date and procedures of the financial statements

These consolidated financial statements were published after authorization by the Board of Directors on February 23, 2023.

III. New standards, amendments and interpretations adopted

(I) The impact of adopting the newly issued and revised standards and interpretations approved by the Financial Supervisory Commission (“the FSC”).

The Group will apply the following newly amended International Financial

Reporting Standards from January 1, 2022, and there is no significant impact on the consolidated financial statements.

Amendments to IAS 16 “Property, Plant, and Equipment – Proceeds before Intended Use”
Amendments to IAS 37 “Onerous Contracts – Costs of Fulfilling a Contract”
Annual Improvements to IFRSs2018-2020 Cycle
Amendments to IFRS 3 “References to Conceptual Frameworks”
(II) Implications of adopting International Financial Reporting Standards not yet endorsed by the FSC

The following amended IFRSs will take effect on January 1, 2023, and may have the following impact:

Amendment to IAS 1 “Disclosure of Accounting Policies”

The main content of the amendment includes the following:

Entities are required to disclose their material, as opposed to important, accounting policies;
Entities are required to state that the accounting policies in relation to immaterial transactions or other matters or circumstances are immaterial and thus need not be disclosed.
Entities are required to state that the accounting policies in relation to immaterial transactions or other matters or circumstances are crucial to the entities’ financial statements.

The Company is assessing the reviewing the accounting policies to be disclosed in the parent company only financial statements, to align with the amendment.

Others

The Company does not expect the following amended standards to have a material impact on its parent company only financial statements.

Amendments to IAS 12 “Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction”
Amendment to IAS 8 “Definition of Accounting Estimates”
(III) The impact of IFRS issued by IASB but not yet endorsed by the FSC

～ 10 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Regarding IFRSs that have been issued by the International Accounting Standards Board (IASB) but have not yet been endorsed by the FSC, points of likely concern are as follows:

New or amended standards Main points of amendment Amendments to IAS 1 Under existing IAS 1 requirements, “Classification of Liabilities as Current or companies classify a liability as Non-current” current when they do not have an unconditional right to defer settlement for at least 12 months after the reporting date. The amended clause has removed the requirement for a right to be unconditional and instead now requires that a right to defer settlement must exist at the reporting date and have substance. The amendments also clarify how a company classifies a liability that can be settled in its own shares – e.g. convertible debt.

Effective date of IASB publication January 1, 2024

The Group is evaluating the impact of its initial adoption of the above mentioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other unapproved new and revised standards to have a material impact on the consolidated financial statements.

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” and amendments to IFRS 17
Amendments to IAS 1 “Non-current Liabilities with Covenants”
Amendment to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative Information”
Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

IV. Summary of significant accounting policies

A summary of the significant accounting policies adopted in the consolidated

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

financial statements is as follows. The following accounting policies have been applied consistently to all periods presented in the consolidated financial statements.

(I) Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Regulations”) and International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), and Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) as endorsed by the Financial Supervisory Committee (hereinafter the “FSC-endorsed IFRS standards”).

(II) Compilation basis
Measurement basis

Except for the following significant items of the balance sheet, the

consolidated financial statements have been prepared on a historical cost basis:

(1) Financial assets at fair value through profit or loss measured at fair value;
(2) Financial assets at fair value through other comprehensive income measured at fair value;
(3) Defined benefit liabilities are measured by adding unrecognized upfront service costs and unrecognized actuarial losses to pension fund assets, less unrecognized actuarial benefits and the present value of defined benefit obligations, and the impact of the upper limit stated in Note 4 (18).
Functional currency and currency of presentation

Each entity of the Group uses the currency of the primary economic environment in of said entity’s operations as its functional currency. The consolidated financial statements are expressed in the Company's functional currency, which is the New Taiwan Dollar. All financial information presented in New Taiwan Dollars is in thousands of New Taiwan Dollars.

(III) Basis of consolidation
Principles for the preparation of the consolidated financial statements Entities preparing the consolidated financial statements include the Company

and its subsidiaries.

From the date that control over a subsidiary is obtained, its financial statements will be included in the consolidated financial statements until the date when such control is no longer in effect. Profits or losses attributable to noncontrolling interests in subsidiaries are attributed to the non-controlling interests even if the non-controlling interests thus bring a balance in loss.

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Intercompany transactions, balances, and any unrealized gains and losses have been eliminated in preparing the consolidated financial statements.

Changes in the Group's ownership interests in subsidiaries that do not result in a loss of control are treated as equity transactions with the owner.

Subsidiaries of these consolidated financial statements are listed as follows:

Name of Investing Company Subsidiary name Nature of business	Shareholding ratio 2022.12.31 2021.12.31 Explanation 100.00% 100.00% Note 1 100.00% 100.00% Note 1、3 51.00% 51.00% - % -% Note 2 - % 100.00% Note 1 100.00% 100.00% Note 1 100.00% 100.00%
The Company Young Fast (BELIZE) Co., Ltd. (Young Fast Belize) Professiona l investment The Company Young Fast (SAMOA) Co., Ltd. (Young Fast Samoa) Professiona l investment The Company Taiwan SRU Corporation Limited (Taiwan SRU) Manufacturi ng of wire and cable accessories The Company Youwei Photoelectricity (Huizhou) Co., Ltd. (Youwei) Manufacturi ng of touch panels Young Fast Belize Young Fast Optoelectronics (HK) Co., Ltd. (Young Fast Hong Kong) Professiona l investment Young Fast Samoa Young Fast Optoelectronics (VIETNAM) Co., Ltd. (Young Fast Vietnam) Manufactur e and sales of touch panels Young Fast Samoa Tengyang Optoelectronics (Huizhou) Co., Ltd. (Tengyang Optoelectronics) After sales services (labor)

Name of
Investing
Company
Subsidiary name
Nature of
business

Shareholding ratio
2022.12.31
2021.12.31
Explanation
100.00%
100.00%
Note 1
100.00%
100.00%
Note 1、3
51.00%
51.00%
-
%
-%
Note 2
-
%
100.00%
Note 1
100.00%
100.00%
Note 1
100.00%
100.00%

The
Company
Young Fast (BELIZE) Co.,
Ltd. (Young Fast Belize)
Professiona
l investment
The
Company
Young Fast (SAMOA) Co.,
Ltd. (Young Fast Samoa)
Professiona
l investment
The
Company
Taiwan SRU Corporation
Limited (Taiwan SRU)
Manufacturi
ng of wire
and cable
accessories
The
Company
Youwei Photoelectricity
(Huizhou) Co., Ltd.
(Youwei)
Manufacturi
ng of touch
panels
Young
Fast
Belize
Young Fast Optoelectronics
(HK) Co., Ltd. (Young Fast
Hong Kong)
Professiona
l investment
Young
Fast
Samoa
Young Fast Optoelectronics
(VIETNAM) Co., Ltd.
(Young Fast Vietnam)
Manufactur
e and sales
of touch
panels
Young
Fast
Samoa
Tengyang Optoelectronics
(Huizhou) Co., Ltd.
(Tengyang Optoelectronics)
After sales
services
(labor)

Note 1: The Company passed a resolution of the Board of Directors on November 13, 2019, such that in response to the adjustment of the internal investment structure of the Group, Young Fast Belize invested in Young Fast Hong Kong and then re-invested in Young Fast Vietnam, and Young Fast Hong Kong sold and transferred its equity in Young Fast Vietnam to Young Fast Samoa. Furthermore, through the completion of operations of Young Fast Hong Kong, Young Fast Belize was to be liquidated after the completion of the liquidation of Young Fast Hong Kong. Note 1: On March 25, 2020, as resolved by the Board of Directors, the transaction amount of Young Fast Hong Kong's transfer of Young Fast Vietnam was USD 22.2 million with reference to opinions issued by experts. Furthermore, on August 28, 2020, a contract for the transfer of the equity of Young Fast Vietnam was signed based on the aforementioned amount, and the base date for the equity transfer was August 31, 2020. The aforementioned equity transfer procedure was completed on July 23, 2021. Young Fast Hong Kong already completed all liquidation proceedings on August 19, 2022. Young Fast Belize was still undergoing the liquidation proceeding

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

on December 31, 2022, and already wired back the liquidation proceeds of 529,540 thousand.

Note 2: On November 11, 2015, the Board of Directors of the Company passed a resolution

for the liquidation of Youwei, and all liquidation procedures were completed on December 15, 2021.

Note 3: The Company’s Board of Directors’ meetings dated March 11, 2022 and August 10, 2022 resolved to conduct a follow-on offering for NT$684,333 thousand, i.e. USD23,500 thousand, for investment in Young Fast (Samoa)and to conduct a capital reduction to compensate for prior losses of NT$278,604 thousand, i.e. USD9,305, respectively, and already registered the change in registered capital on July 7, 2022 and December 20, 2022, respectively.

Subsidiaries excluded from the consolidated financial statements: None.
(IV) Foreign currency

1. Foreign currency transactions

Foreign currency transactions are translated into functional currency at the exchange rate as of the date of transaction. On the end date of each subsequent reporting period (the “reporting date”), foreign currency monetary items are converted into the functional currency according to the exchange rate of that date.

Foreign currency non-monetary items measured at fair value are converted into functional currency at the exchange rate on the day when the fair value was measured. Foreign currency non-monetary items measured at historical cost are translated at the exchange rate on the date of the transaction. Foreign currency translation differences arising from translation are normally recognized in profit or loss. However, foreign currency translation differences arising from the translation of equity investments at fair value through other comprehensive income are recognized in other comprehensive income.

Foreign operating entities

Assets and liabilities of foreign operating entities, including goodwill arising from acquisitions and fair value adjustments, are translated into the currency of presentation of the entity's financial statements at the exchange rate on the reporting date; items of income and expenses are translated into the currency of presentation of the consolidated financial statements at the average exchange rate of the current period, and the resulting exchange differences are recognized as other comprehensive income.

When disposal of a foreign operating entity results in a loss of control, joint control, or significant influence, the accumulated exchange differences related to

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

the foreign operating entity are fully reclassified to profit or loss. In the case of partial disposal of a subsidiary that includes a foreign operating entity, the relevant accumulated exchange differences are re-attributed to non-controlling interests on a pro rata basis. When partially disposing of an investment involving an affiliated enterprise or a joint venture of a foreign operating entity, the relevant accumulated exchange differences are reclassified to profit or loss on a pro rata basis.

For monetary receivables or payables to foreign operating entities, if there is no repayment plan and it is impossible to repay in the foreseeable future, the foreign currency exchange gains and losses arising therefrom are regarded as part of the net investment in the foreign operating entity and are recognized as other comprehensive income.

(V) Classification criteria for distinguishing current and non-current assets and liabilities Assets that meet one of the following conditions are classified as current assets; all other assets that are not current assets are classified as non-current assets:

The asset is expected to be recognized in its normal operating cycle, or there is intent to sell or consume it;
The asset is held mainly for trading purposes;
The asset is expected to be recognized within twelve months after the reporting period; or
The asset is cash or a cash equivalent, unless there are other restrictions on exchanging the asset or using it to settle a liability at least twelve months after the reporting period.

Liabilities that meet one of the following conditions are classified as current liabilities; all other liabilities that are not current liabilities are classified as noncurrent liabilities:

It is expected that the liability will be settled during the normal operating cycle;
The liability is held mainly for trading purposes;
The liability is expected to be settled within twelve months after the reporting period; or
The liability does not have an unconditional right to defer settlement to at least twelve months after the reporting period. The terms of the liability, which may be liquidated by the issuance of equity instruments at the choice of the counterparty, do not affect their classification.
(VI) Cash and cash equivalents

Cash includes cash on hand, checking deposits, and demand deposits. Cash

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

equivalents are short-term, highly liquid investments that are readily convertible into fixed amounts of cash with little risk of changes in value. Fixed deposits that meet the above definition and are held for short-term cash commitments, rather than investment or other purposes, are presented in cash equivalents.

Bank overdrafts are immediately repayable and form part of the Group's overall cash management, and are included in the cash flow statement as a component of cash and cash equivalents.

(VII) Financial instruments

Accounts receivable are originally recognized as they are incurred. All other financial assets and financial liabilities are originally recognized when the Group becomes a party to the contractual terms of the financial instrument. Financial assets and financial liabilities not measured at fair value through profit or loss (except for accounts receivable that do not contain significant financial components) are originally measured at fair value plus transaction costs directly attributable to their acquisition or issuance. Accounts receivable that do not contain significant financial components are originally measured at their transaction prices.

Financial assets

When the purchase or sale of financial assets conforms to conventional transactions, the Group shall adopt transaction-day accounting for all purchases and sales of financial assets classified in the same way.

Financial assets are classified as: financial assets at amortized cost, financial assets at fair value through other comprehensive income, or financial assets at fair value through profit or loss. The Group reclassifies all affected financial assets from the first day of the following reporting period only when changing the business model for managing financial assets.

(1) Financial assets measured at amortized cost

Financial assets are measured at amortized cost when they meet both of the following conditions and when they are not designated as fair value through profit or loss:

The financial asset is held under the operating model for the purpose of collecting contractual cash flow.
The contractual terms of the financial asset generate cash flows on a specified date and entirely for the sake of payment of principal and interest on the principal amount in circulation.

The assets in question are subsequently calculated by adding or

subtracting the original recognized amount to the accumulated amortization

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

amount calculated using the effective interest method, and adjusts any measure of post amortized cost of loss allowance. Interest income, foreign currency exchange gains and losses, and impairment losses are recognized in profit or loss. Upon derecognition, profits or losses are to be included under profit or loss.

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

At the original time of recognition, the Group may make an irrevocable election to present subsequent changes in fair value of investments in equity instruments not held for trading in other comprehensive income. The foregoing elections are made on the basis of the individual instrument.

Investments in equity instruments are to be subsequently measured at fair value. Dividend income is to be recognized under profit or loss (unless it clearly represents the recovery of a portion of the investment cost). Remaining net gains or losses are to be recognized as other comprehensive income and are not to be reclassified to profit or loss.

Dividend income from equity investments is to be recognized on the date when the Group is entitled to receive dividends (usually the ex-dividend date).

(3) Financial assets at fair value through profit or loss

Financial assets other than those measured at amortized cost above or at fair value through other comprehensive income are to be measured at fair value through profit or loss. In order to eliminate or significantly reduce accounting misalignments at the original time of recognition, financial assets that meet the criteria to be measured at amortized cost or at fair value through other comprehensive income may be irrevocably designated by the Group as financial assets at fair value through profit or loss.

These assets are to be subsequently measured at fair value and their net gains or losses are to be recognized in profit or loss (including their associated dividends and interest income).

(4) Impairment of financial assets

The Group recognizes loss allowance for expected credit losses on financial assets measured at amortized cost.

Loss allowance for bills and accounts receivables are measured based on expected credit loss during the period. Other financial assets measured at amortized cost are based on reasonable and corroborative information (obtainable without undue cost or investment), including qualitative and quantitative information; and based on the Group's historical experience, credit

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

assessment and analysis of forward-looking information, if the credit risk has not increased significantly since the original recognition, the impairment is measured by the 12-month expected credit loss. If it is assessed that credit risk has increased significantly since original recognition, the impairment is measured according to the duration of the credit losses.

Expected credit loss during the period refers to the expected credit losses arising from all possible default events during the expected period of a financial instrument.

Twelve-month expected credit loss constitutes expected credit losses arising from possible defaults of financial instruments within twelve months after the reporting date (or a shorter period if the expected duration of the financial instrument is less than twelve months).

The maximum period over which expected credit losses are measured is the maximum contractual period over which the Group is exposed to credit risk.

Expected credit losses are probability-weighted estimates of credit losses over the expected lifetime of a financial instrument. Credit losses are measured at the present value of all cash shortfalls; that is, the difference between the cash flows that the Group can receive under the contract and the cash flows that the Group expects to receive. Expected credit losses are discounted at the effective interest rate on the financial asset.

Loss allowance for financial assets measured at amortized cost are deducted from the asset's carrying amount. Amounts set aside or reversed from loss allowance are recognized in profit or loss.

When the Group cannot reasonably expect to recover the financial assets in whole or in part, it directly reduces the total carrying amount of its financial assets. For company accounts, the Group analyzes the timing and amount of write-offs individually on the basis of whether they are reasonably expected to be recoverable. The Group does not expect a material reversal of the written-off amounts. However, financial assets that have been written off remain enforceable in order to comply with the Group's procedures for recovering overdue amounts.

(5) Derecognition of financial assets

The Group derecognizes financial assets only upon termination of the contractual rights to cash flows from the asset, or upon transfer of the financial assets where substantially all risks and rewards of ownership of the asset have been transferred to other enterprises, or when substantially all risks and

～ 18 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

rewards of title have neither been transferred nor retained and we do not retain control of the financial asset.

When the Group enters into a transaction to transfer financial assets, if all or substantially all risks and rewards of title to the transferred assets are retained, they shall continue to be recognized on the balance sheet.

Financial liabilities and equity instruments
(1) Equity Instruments

An equity instrument constitutes any contract that recognizes the Group's remaining interest in assets less all of its liabilities. Equity instruments issued by the Group are recognized at the price obtained after deducting direct issue costs.

(2) Financial liabilities

Financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and exchange gains and losses are recognized in profit or loss. Any gain or loss upon derecognition is also recognized in profit or loss.

(3) Derecognition of financial liabilities

Financial liabilities of the Group are to be derecognized when the

contractual obligations have been fulfilled, canceled, or expired. When the terms of financial liabilities are modified and the cash flows of the modified liabilities are substantially different, the original financial liabilities are to be derecognized and new financial liabilities are to be recognized at fair value based on the modified terms.

When derecognizing a financial liability, the difference between its carrying amount and the total consideration paid or payable (including any non-cash assets transferred or liabilities assumed) is to be recognized in profit or loss.

(4) Offset of financial assets and liabilities

Financial assets and financial liabilities shall only be offset when the Group currently has legally enforceable rights to offset each other and intends to settle on a net basis or to realize assets and settle liabilities at the same time. They are to be offset against each other and presented on a net basis on the balance sheet.

(VIII) Inventories

Inventories are measured at the lower of cost and net realizable value. Costs include acquisition, production or processing costs, and other costs incurred to bring them to a place and condition in which it is ready for use, and are calculated using

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

the weighted average method. The cost of finished goods and work-in-progress inventories includes an appropriate proportion of manufacturing overhead allocated to normal production capacity.

Net realizable value represents the estimated selling price under normal operations less the estimated costs to be spent on completion and the estimated costs to complete the sale.

(IX) Investment related companies

An affiliate is a company over which the Group holds significant influence over its financial and operating policies but it is not controlled or jointly controlled.

The Group adopts the equity method to deal with equity in affiliated companies. Under the equity method, it is recognized at cost at the time of original acquisition and investment costs include transaction costs. The carrying amount of an investment in an affiliated company includes the goodwill identified at the time of the original investment less any accumulated impairment losses.

The consolidated financial statements cover from the date of material impact to the date of loss of material impact. After making adjustments consistent with the Group's accounting policies, the Group recognizes the amount of profit and loss and other comprehensive in come of each invested affiliate in proportion to its equity. When there is a change in non-income items and other comprehensive income of an affiliated company that does not affect the Group's associated shareholding ratio, the Group recognizes changes in equity attributable to the Group's share of the affiliated companies as capital reserve in proportion to its shareholding.

Unrealized profits and losses arising from transactions between the Group and its affiliates are only recognized in the corporate financial statements within the scope of the rights and interests of non-related party investors in the affiliated companies.

When the proportion of losses that the Group should recognize in an affiliated company is equal to or exceeds our equity in the affiliated company, recognition of such losses should be halted; and additional losses and related liabilities are to be recognized only to the extent that statutory obligations, constructive obligations, or payments have been made on behalf of the investee company.

(X) Investment real estate

Investment real estate is held for lease income or asset appreciation or both, constituting real estate that is not for sale in normal business, for production, provision of goods or services, or for administrative purposes. Investment real estate is originally measured at cost and subsequently it is measured by cost less

～ 20 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

accumulated depreciation and accumulated impairment. Its depreciation method, useful life, and residual value shall be treated in accordance with the provisions of property, plant and equipment.

Investment real estate disposal gains or losses (calculated by the difference between the net disposal price and the carrying amount of the item) are recognized in profit or loss.

Lease income from investment real estate is recognized as non-operating

income on a straight-line basis over the lease term. Lease incentives are recognized as part of the lease income during the leasing period.

(XI) Property, plant and equipment
Identification and measurement

Items of property, plant and equipment are measured at cost less

accumulated depreciation and any accumulated impairment.

When the useful lives of major components of property, plant and equipment are different, they are treated as separate items (major components) of property, plant and equipment.

Disposal gains or losses from property, plant and equipment are recognized in profit or loss.

Subsequent costs

Subsequent expenses are capitalized only when it is probable that their future economic benefits will flow to the Company.

Depreciation

Depreciation is calculated as the cost of the asset less the residual value. It is recognized in profit or loss on a straight-line basis over the estimated useful life of each component.

Land is not depreciated.

component. Land is not depreciated.	component. Land is not depreciated.
Estimated useful life for the current and comparison periods are as follows:
Housing and construction	2 to 40 years
Machinery and equipment	1 to 9 years
Leased assets	3 to 20 years
Other equipment	1 to 8 years

The Group reviews the depreciation method, useful life and salvage value on each reporting date and makes appropriate adjustments when necessary.

(XII) Leases

The Group assesses whether a contract constitutes or contains a lease on the date of establishment of the contract. If a contract transfers control over the use of

～ 21 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

an identified asset for a period of time in exchange for consideration, the contract constitutes or contains a lease.

As a lessee

The Group recognizes right-of-use assets and lease liabilities as of the lease commencement date. Right-of-use assets are initially measured at cost, which includes the original measured amount of the lease liability adjusted for any lease benefits paid on or before the lease commencement date, plus the original direct costs incurred and the estimated costs for dismantling, removing, and restoring the location or the underlying asset, and also net of any lease incentives received.

The right-of-use asset is subsequently depreciated on a straight-line basis from the lease inception date to the expiry of the useful life of the right-of-use asset or the expiry of the lease term, whichever is earlier. In addition, the Group regularly assesses whether the right-of-use asset is impaired and handles any impairment losses that have occurred. The right-of-use asset is adjusted in conjunction with the remeasurement of the lease liability.

The lease liability is initially measured at the present value of the unpaid lease payments at the inception date of the lease. If the interest rate implied by the lease is easily determined, then the discount rate is that rate. If it is not easily determined, the Group's incremental borrowing rate of interest shall be used. Generally speaking, the Group adopts its incremental borrowing rate of interest as the discount rate.

Lease payments included in the measurement of lease liabilities include:

(1) Fixed payments, including substantial fixed benefits;
(2) Changes in lease benefits depending on an index or rate, using the index or rate on the lease commencement date as the original measure;
(3) The residual value guarantee amount expected to be paid; and
(4) The exercise price or penalty payable when it is reasonably certain that a purchase option or lease termination option will be exercised.

Interest on a lease liability is subsequently accrued using the effective interest method, and its amount is re-measured when the following conditions occur:

(1) There are changes in the index or rate used to determine lease payments resulting in changes in future lease payments;
(2) There are changes in the residual value guarantee amount expected to be paid;
(3) There are changes in the assessment of the underlying asset purchase option;

～ 22 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

(4) There are changes in estimates of whether to exercise extension or termination options and changes in the assessment of the lease term;
(5) There are modifications to the subject matter, scope, or other terms of the lease.

When the lease liability is re-measured due to the aforementioned changes in the index or rate used to determine lease payments, changes in the residual value guarantee amount, and changes in the assessment of options to purchase, extend, or terminate, the carrying amount of the right-of-use asset is adjusted accordingly. When the carrying amount of the right-of-use asset is reduced to zero, the remaining remeasured amount is recognized in profit or loss.

For lease modifications that reduce the scope of the lease, constituting a reduction in the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, the difference between this and the remeasured amount of the lease liability is recognized in profit or loss.

The Group presents right-of-use assets and lease liabilities that do not meet the definition of investment real estate as separate line items in the balance sheet.

For short-term leasing of some office and transportation equipment and the lease of low-value target assets, the Group chooses not to recognize right-of-use assets and lease liabilities. Instead, the related lease payments are recognized as expenses on a straight-line basis over the lease term.

As a lessor

In transactions where the Group is the lessor, classification of lease contracts is undertaken by whether they transfer substantially all risks and rewards of ownership of the underlying asset on the lease inception date. If this is the case, a lease is classified as a finance lease; otherwise, it is classified as an operating lease. At the time of evaluation, the Group considers relevant specific indicators including whether the lease period covers the main part of the economic life of the underlying asset.

If the Group is a lessor of a sublease, the main lease and sublease transactions are handled separately. The classification of sublease transactions is also assessed with the right-of-use asset arising from the main lease. If a

sublease transaction meets the definition of investment real estate, the sublease transaction shall be classified as investment real estate.

For business leases, the Group recognizes lease payments received as lease income over the lease term on a straight-line basis.

(XIII) Intangible assets

Identification and measurement

～ 23 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Intangible assets are measured at cost less accumulated amortization and accumulated impairment.

Subsequent expenses

Subsequent expenses are capitalized only to the extent that they increase the future economic benefits of the specific asset in question.

Amortization

Amortization is calculated based on the cost of the asset less the estimated residual value, and is recognized in profit or loss using the straight-line method over its estimated useful life from when the intangible asset is ready for use.

Estimated useful life for the current and comparison periods are as follows: Computer software 3 to 8 years

The Group reviews the intangible asset amortization method, useful life and salvage value on each reporting date and makes appropriate adjustments when necessary.

(XIV) Impairment of non-financial assets

The Group assesses on each reporting date whether there is an indication that

the carrying amount of non-financial assets may be impaired

(except for inventories, deferred tax assets, and assets arising from employee

benefits). If any such sign is present, then the recoverable amount of the asset is estimated.

For the purposes of the impairment test, the smallest identifiable group of assets is formed by a group of assets whose cash inflows are largely independent of the cash inflows of other individual assets or groups of assets.

The recoverable amount is the higher of the individual asset or cash-generating unit's fair value less costs of disposal and its value in use. If the recoverable amount of an individual asset or cash-generating unit is less than the carrying amount, an impairment loss is recognized.

(XV) Provisions

The recognition of a liability provision is a present obligation due to past events where it is probable that the Group will need to outflow economic resources to settle the obligation in the future and where the amount of the obligation can be estimated reliably.

Liability provision for after-sales service is based on historical experience, management's judgment and other known reasons to estimate possible product returns, discounts and replacements, and it is recognized as cost of goods sold in the year when the related products are sold.

～ 24 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Decommissioning, restoration, and rehabilitation costs is to estimate the restoration cost of the leased plant that may occur in the future.
(XVI) Revenue recognition

Revenue is measured as the consideration to which the transfer of goods or services is expected to be entitled. The Group recognizes revenue when control of goods or services is transferred to the customer and performance obligations are satisfied. The transfer of control of a product means that the product has been delivered to the customer, the customer can decide the sales channel and price of a product in their entirety, and there are no outstanding obligations that will affect the customer's acceptance of the product. Delivery occurs when the product is shipped to a specific location, its obsolescence and risk of loss has been passed to the customer, and the customer has accepted the product in accordance with the sales contract; or when the acceptance clause has expired or when the Group has objective evidence that all acceptance conditions have been met.

(XVII) Government subsidies

When the Group receives government subsidies related to salaries and working capital subsidies, the unconditional grant is recognized as other income.

(XVIII) Employee benefits

Defined contribution plan

Contribution obligations to a defined contribution plan are recognized as expenses during the period during which an employee provides service.

Defined benefit plan

The Group's net obligation to the defined benefit plan is calculated by converting the future benefit amount earned by the employee's service in the current or previous period to the present value for each benefit plan and less the fair value of any plan assets.

Defined benefit obligations are actuated annually by a qualified actuary using the projected unit credit method. When the calculation result may be beneficial to the Group, recognized assets are limited to the present value of any economic benefits that would be available in the form of refunds of contributions from the program or reductions in future contributions to the program. Any minimum funding requirements are considered when calculating the present value of economic benefits.

Remeasurement of net defined benefit liability is immediately recognized in other comprehensive income and reflected in accumulated in retained earnings. This includes actuarial profit and loss, plan asset remuneration (excluding

～ 25 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

interest), and any change in the upper asset limit (excluding interest). The Group determines the net defined benefit liabilities (assets) and net interest expense (income), using the net defined benefit liabilities (assets) determined at the beginning of the annual reporting and the discount rate. Net interest expense and other expenses of defined benefit plans are recognized in profit or loss.

When a plan is revised or curtailed, the resulting change in benefits related to prior service costs or curtailment benefits or losses is immediately recognized in profit or loss. When settlement occurs, the Group recognizes the settlement gain or loss of the defined benefit plan.

Short-term employee benefits

Short-term employee benefit obligations are recognized as expenses when services are provided. If the Group has a current statutory or constructive payment obligation due to the employee's past services and the obligation can be reliably estimated, this amount is recognized as a liability.

(XIX) Income taxes

Income taxes include current income tax and deferred income tax. Current income tax and deferred income tax are recognized in profit or loss, except for those related to business combinations, items directly recognized in equity, or other comprehensive income.

Current income tax includes taxable income (losses) based on the current year, calculated estimated income tax payable or tax refund receivable, and any adjustments to tax payable or refunds receivable from prior years. The amount is the best estimate of the amount expected to be paid or received at the statutory tax rate or substantive legislative tax rate at the reporting date.

Deferred income tax is recognized as a measure of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Temporary differences arising from the following situations are not recognized as deferred income tax:

Assets or liabilities originally recognized in a transaction that is not a business combination and that do not affect accounting profits and taxable income (loss) at the time of the transaction;
Temporary differences arising from invested subsidiaries, affiliates, and joint ventures where the Group can control the timing of the reversal of the temporary differences and it is probable that they will not be reversed in the foreseeable future; as well as
Taxable temporary differences arising from the original recognition of goodwill.

～ 26 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Deferred income tax is measured at the tax rate at which the temporary difference is expected to reverse, based on statutory or substantive legislative tax rates at the reporting date.

Deferred tax assets and deferred tax liabilities are offset only when the following conditions are met simultaneously:

They have the legal enforcement right to offset current income tax assets and current income tax liabilities; and
Deferred income tax assets and deferred income tax liabilities are related to one of the following taxpayers that are subject to income tax by the same tax authority;

(1) The same taxpayer; or

(2) Although the taxpayers are distinct, each entity intends to settle current tax liabilities and assets on a net basis, or to realize assets and settle liabilities simultaneously, in each future period in which significant amounts of deferred tax assets are expected to be recovered and deferred tax liabilities are expected to be settled.

Unused tax losses and unused income tax credits are recognized as deferred tax assets to the extent that it is probable that future taxable income will be available to the extent that the deductible temporary differences are carried forward. Furthermore, it is reassessed on each reporting date and reduced to the extent that the relevant income tax benefit is not probable to be realized; or reverses the previously reduced amount to the extent that it becomes probable that sufficient taxable income will be available.

(XX) Earnings per share

The Group presents basic and diluted earnings per share attributable to holders of ordinary shares of the Group. Basic earnings per share of the Group is the profit or loss attributable to the holders of ordinary shares of the Group calculated by dividing by the weighted average number of ordinary shares outstanding for the period. Diluted earnings per share refers to the profit and loss attributable to the holders of the Company's ordinary shares and the weighted average number of ordinary shares outstanding, calculated after separately adjusting for the effect of all potential dilutive ordinary shares. The Group's potentially dilutive ordinary shares include employee remuneration.

(XXI) Segment information

Operating segments form components of the Group and are engaged in operating activities that may earn income and incur expenses, including income and expenses related to transactions between other parts of the Group. The operating

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

results of all operating segments are regularly reviewed by the Groups key operating decision makers to make decisions on allocating resources to those segments and to measure their performances. Each operating segment maintains separate financial information.

V. Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

The preparation of the consolidated financial statements in conformity with FSCendorsed IFRS standards requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Management continues to review estimates and underlying assumptions. Changes in accounting estimates are recognized in the period in which they are changed and in the future periods that are affected.

Determination of whether an investee company involves substantial control involves significant judgment and this information has a significant impact on the amounts recognized in this consolidated financial statements, shown as follows:

The Group is the single largest shareholder of Epoch Chemtronics Corp., holding 23.75% of the voting shares of Epoch Chemtronics Corp. Although the remaining 76.25% of Epoch Chemtronics Corp. shares are not centrally held by specific shareholders, the Group is still unable to obtain more than half of the directors' seats in Epoch Chemtronics Corp., and has not obtained more than half of the voting rights of shareholders attending the shareholders meeting. Therefore, it has been determined that the Group does not exercise control over Epoch Chemtronics Corp.

Among the uncertainties in the estimates and assumptions incorporated in these consolidated financial statements, there is no significant risk that a material adjustment will result in the following year.

VI. Explanation of significant accounts

(I) Cash and cash equivalents

on of significant accounts and cash equivalents
Cash Demand deposits Checking deposits Fixed deposits	2022.12.31 $ 461 499,896 80 46,065		2021.12.31 498 356,800 755 - 358,053
	$ 546,502

Please refer to Note 6 (25) for the fair value sensitivity analysis and exchange

～ 28 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

rate risk of the financial assets and liabilities.

(II) Financial assets at fair value through profit or loss`－`current 2022.12.31 Financial assets designated as at fair value through profit or loss: Gold passbook accounts $ 74,970 Please refer to Note 6 (24) for the remeasurement of fair value. (III) Financial assets at fair value through other comprehensive income 2022.12.31 Equity investments at fair value through other comprehensive income Current: Domestic TWSE listed company shares: Taiwan Cooperative Financial Holding Co., Ltd. $ 1,389,557 Mega Financial Holding Company Limited 707,724 First Financial Holding Co.,Ltd. 745,533 Taiwan Business Bank 177,832 Taiwan Fertilizer Co., Ltd. 109,087 Cathay Financial Holdings Co., Ltd. 66,887 3,196,620 Non current: Domestic TWSE listed company shares: Hold-Key Electric Wire & Cable Co., Ltd. 137,763 Unlisted domestic common shares: Sol Young Enterprises Co., Ltd. 12,610 ICP Technology Co., Ltd. 3,032 Willide Optoelectronics Co., Ltd. 1,500 17,142 154,905 Total $ 3,351,525	(II) Financial assets at fair value through profit or loss`－`current 2022.12.31 Financial assets designated as at fair value through profit or loss: Gold passbook accounts $ 74,970 Please refer to Note 6 (24) for the remeasurement of fair value. (III) Financial assets at fair value through other comprehensive income 2022.12.31 Equity investments at fair value through other comprehensive income Current: Domestic TWSE listed company shares: Taiwan Cooperative Financial Holding Co., Ltd. $ 1,389,557 Mega Financial Holding Company Limited 707,724 First Financial Holding Co.,Ltd. 745,533 Taiwan Business Bank 177,832 Taiwan Fertilizer Co., Ltd. 109,087 Cathay Financial Holdings Co., Ltd. 66,887 3,196,620 Non current: Domestic TWSE listed company shares: Hold-Key Electric Wire & Cable Co., Ltd. 137,763 Unlisted domestic common shares: Sol Young Enterprises Co., Ltd. 12,610 ICP Technology Co., Ltd. 3,032 Willide Optoelectronics Co., Ltd. 1,500 17,142 154,905 Total $ 3,351,525	2021.12.31 57,132 2021.12.31 1,320,546 808,763 675,752 131,098 142,730 80,125
	3,196,620	3,159,014
	137,763	112,624
	12,610 3,032 1,500	12,610 3,032 -
	17,142	15,642
	154,905	128,266
	$ 3,351,525	3,287,280

The Group designated the investments shown above as equity securities as at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term for strategic purposes.

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

The Group did not dispose of strategic investments in 2022and 2021 and the accumulated gains and losses during these periods have not been transferred in equity.

For market risk information please refer to Note 6 (25).

(IV) Financial assets measured at amortized cost

2022.12.31 $ 70,710	2022.12.31 $ 70,710	2021.12.31 -
0.69~4.06 $ -		- 2,632
$ -
	-	1.75

The Group assesses these assets as being held to maturity in order to receive their contractual cash flows, and the cash flows of these financial assets constitute in their entirety the payment of principal and interest on the outstanding principal amounts. They are therefore presented as financial assets measured at amortized cost.

For details of the above-mentioned financial asset pledge information, please refer to Note 8.

(V) Notes receivable and accounts receivable

Notes receivable Accounts receivable Accounts receivable - related parties Less: Loss allowance`－`notes receivable Loss allowance - accounts receivable	2022.12.31 $ 113,919 97,023 24,242 (10,967) (1,007) $ 223,210	2021.12.31 139,266 159,832 15,476 (27,548) -
		287,026

The Group executed an accounts receivable factoring contract with domestic financial institutions in 2022. Under the contract, the Group need not assume the risk of the transferred accounts receivable being unrecovered but only need bear the losses arising from business disputes. In addition, the Group does not participate in the transferred accounts receivable anymore in any way, and a credit risk coverage rate up to 90% has been provided by banks. As of December 31, 2022, the Group did not have any factored accounts receivable. In addition, The Group did not

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

execute any accounts receivable factoring contract with any domestic financial institution in 2021.

As of December 31, 2022, the cap on factored accounts receivable under the contract executed by the Group and the bank was 122,840 thousand.

The Group applies the simplified approach to provide for its expected credit losses, i.e., using the measurement of expected credit loss during the period. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. According to the historical experience of the Group's credit losses, there is no significant difference in the loss patterns of different customer groups. Therefore the provision matrix does not further differentiate customer groups.

According to historical experience, the Group's accounts receivable due from related parties have experienced no credit losses, and we also consider that as of the balance sheet date, the accounts receivable due from related parties have not been overdue and there is no other indication that the credit quality of accounts receivable due from related parties has changed from the original credit dates. Therefore, the Group's assessment of accounts receivable due from related parties is that they will not generate credit losses, and they are not included for calculation in the analysis table of expected credit losses.

Analysis of expected credit losses of the Group's notes receivable and accounts receivable (excluding related parties) is as follows:

2022.12.31

Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due More than 180 days past due	Carrying values of notes receivable and accounts receivable $ 202,018 228 36 30 8,630 $ 210,942	Weighted average loss rate(`％`)		Loss allowance provision 3,300 10 17 17 8,630
		0.00~1.63 4.39 47.22 56.67 100.00
				11,974

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

2021.12.31	2021.12.31	2021.12.31	Loss allowance provision 2,932 188 - 523 - 508 23,397
Carrying values of notes receivable and accounts receivable		Weighted average loss rate(`％`) 1.15 1.70 - 10.59 - 9.67 100.00
	$ 254,004 11,055 449 4,942 1 5,250 23,397 $ 299,098
			27,548

Changes in loss allowance for notes and trade receivables was as follows: 2022 2021 Opening balance $ 27,548 8,774 Provision for impairment loss (reversal gain) (15,574) 18,774 Ending balance $ 11,974 27,548	Changes in loss allowance for notes and trade receivables was as follows: 2022 2021 Opening balance $ 27,548 8,774 Provision for impairment loss (reversal gain) (15,574) 18,774 Ending balance $ 11,974 27,548	Changes in loss allowance for notes and trade receivables was as follows: 2022 2021 Opening balance $ 27,548 8,774 Provision for impairment loss (reversal gain) (15,574) 18,774 Ending balance $ 11,974 27,548
	$ 11,974	27,548

(VI) Other receivables and long-term receivables

Other receivables Long-term receivables Less: Loss allowance	2022.12.31 $ 5,758 65,166 (65,166)	2021.12.31 3,665 65,166 (65,166)
	$ 5,758	3,665

The table of changes in loss allowance for other receivables and long-term receivables of the Group is as follows:

ivables of the Group is as follows:
Opening balance Reversal of impairment losses Ending balance	2022 $ 65,166 -	2021 79,145 (13,979)
	$ 65,166	65,166

For other credit risk information please refer to Note 6 (25).

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

(VII) Inventory

Raw materials Work in process Finished products Goods held in inventory Inventory in transit	2022.12.31 $ 151,577 51,575 19,380 12,759 2,490	2022.12.31 $ 151,577 51,575 19,380 12,759 2,490	2021.12.31 180,040 77,178 52,517 15,327 2,270
	$ 237,781		327,332

In addition to transferring inventory to operating costs due to normal sales in 2022 and 2021, the Group’s other total expenses and losses directly included in operating costs are listed as follows:

ating costs are listed as follows:
Inventory valuation and obsolescence loss (gain from recovery) Inventory obsolescence loss Inclusion in operating costs	2022 $ 23,994 3,697	2021 16,346 2,743
	$ 27,691	19,089

None of the Group's inventory was pledged as collateral as of December 31, 2022 and 2021.

(VIII) Non-current assets held for sale

On November 11, 2015, the Board of Directors of the Group passed a resolution to liquidate the touch panel manufacturing business unit Youwei Company located in mainland China. This disposal plan was passed in recognition of fierce touch panel industry competition. In order to enhance our competitiveness and reduce our operating costs, we planned to concentrate production in Young Fast Vietnam, another touch panel manufacturing business unit.

Operating results of discontinued operations after the Groups’ write-off are as follows:

Operating income Costs and expenses Non-operating income and expenses Operating income before tax Income tax expense Operating income, net of tax Disposal gain on discontinued operations Profit (loss from discontinued operations	2021 $ - (3,321) (376)
	(3,697) -
	(3,697) 65,633
	$ 61,936

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

2.Cash flows from discontinued operations are as follows:

2021 Net cash outflow from operating activities $ (21,421)

The Group completed the liquidation process of Youwei Photoelectricity (Huizhou) Co., Ltd. on December 15, 2021. The recovered cash and disposal gains are as follows:

Details of the carrying amounts of the net assets of Youwei Photoelectricity (Huizhou) Co., Ltd. on the date of disposal are as follows:

Cash etails of the amounts of disposal gains are as follows: Reclassification from other equity to profit or loss from exchange differences on translation of foreign financial statements	2021.12.15 $ 17,375
	2021.12.15 $ 65,633

Details of the amounts of disposal gains are as follows:

(IX) Investments accounted for using equity method

The Group’s financial information for investments accounted for using the equity method at the reporting date was as follows:

2022.12.31 2021.12.31 Affiliated companies $ 327,189 297,329 1. Affiliated companies Affiliates which are material to the Group consisted of the following: Affiliated companies Within the Group Main operating location / incorporation Proportion of shareholding and voting rights Name Nature of Relationship Country 2022.12.31 2021.12.31	2022.12.31 2021.12.31 Affiliated companies $ 327,189 297,329 1. Affiliated companies Affiliates which are material to the Group consisted of the following: Affiliated companies Within the Group Main operating location / incorporation Proportion of shareholding and voting rights Name Nature of Relationship Country 2022.12.31 2021.12.31	2022.12.31 2021.12.31 Affiliated companies $ 327,189 297,329 1. Affiliated companies Affiliates which are material to the Group consisted of the following: Affiliated companies Within the Group Main operating location / incorporation Proportion of shareholding and voting rights Name Nature of Relationship Country 2022.12.31 2021.12.31	2022.12.31 2021.12.31 Affiliated companies $ 327,189 297,329 1. Affiliated companies Affiliates which are material to the Group consisted of the following: Affiliated companies Within the Group Main operating location / incorporation Proportion of shareholding and voting rights Name Nature of Relationship Country 2022.12.31 2021.12.31	2022.12.31 2021.12.31 Affiliated companies $ 327,189 297,329 1. Affiliated companies Affiliates which are material to the Group consisted of the following: Affiliated companies Within the Group Main operating location / incorporation Proportion of shareholding and voting rights Name Nature of Relationship Country 2022.12.31 2021.12.31	2022.12.31 2021.12.31 Affiliated companies $ 327,189 297,329 1. Affiliated companies Affiliates which are material to the Group consisted of the following: Affiliated companies Within the Group Main operating location / incorporation Proportion of shareholding and voting rights Name Nature of Relationship Country 2022.12.31 2021.12.31
				2022.12.31	2021.12.31
Epoch Chemtronics Corp. (Epoch)	Optical instrument manufacturing, etc.	Taiwan		23.75%	23.75%

Aggregated financial information of affiliated companies that are material to the Group are set forth below.

Current assets Non-current assets Current liabilities Non-current liabilities Net assets	2022.12.31 $ 2,671,160 906,762 (2,203,917) (84,158)	2021.12.31 2,043,870 863,316 (1,691,409) (51,654)
	$ 1,289,847	1,164,123

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Operating income Profit from continuing operations Other comprehensive income Total comprehensive income Dividends received from affiliated companies Share of net assets attributable to the Group on January 1 Comprehensive income (loss) attributable to the Group Dividends received from affiliated companies Share of net assets attributable to the Group on June 30 Add: Goodwill Book value of net assets attributable to the Group on June 30	2022
	306,342 276,482 20,847 20,847
	$ 327,189 297,329

The difference between the Group's equity and the carrying amount of the

investment using the equity method mainly constitutes goodwill arising from the purchase of the investment at a premium when originally acquired.

2. Collateral

As of December 31, 2022 and 2021, none of the Group's investments using the equity method were pledged as collateral.

(XII) Disposal of subsidiaries

The Group’s Board of Directors meeting dated November 13, 2019 resolved to liquidate the subsidiary Young Fast Hong Kong; the liquidation proceedings were completed on August 19, 2022, and a gain on disposal in the amount of 28,163 thousand was recognized under other gains and losses.

Below are the details of the carrying amount of Young Fast Hong Kong’s net assets on the disposal date ：

August 19, 2022 Cash $ 759,364

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

2. Below are the details of the gain on disposal of subsidiaries by the Group `：`

August 19, 2022 Exchange differences on translation of the financial $ 28,163 statement of foreign operations reclassified from other equity to profit or loss

(XI) Property, plant and equipment

The cost, depreciation, and impairment loss of the property, plant and equipment of the Group for 2022 and 2021 were as follows:

Land	Housing and construction 1,443,439 2,291 - - 96,241	Machinery and equipment 2,824,249 4,268 6,043 (562,092) 201,554	Leased assets 60,653 1,908 9,931 (27,304) -	Other equipment 514,728 16,244 - (32,129) 42,200	Total 5,106,696 24,711 15,974 (621,525) 339,995
$ 263,627 - - - - $ 263,627 $ 263,627 - - - $ 263,627 Land
	1,541,971	2,474,022	45,188	541,043	4,865,851
	1,467,118 1,731 - (25,410)	2,870,332 41,770 (32,904) (54,949)	33,841 26,812 - -	520,602 6,041 (729) (11,186)	5,155,520 76,354 (33,633) (91,545)
	1,443,439	2,824,249	60,653	514,728	5,106,696
	Housing and construction Machinery and equipment		Leased assets	Other equipment	Total
$ - - - - $ - $ - -	966,433 2,743,721 39,564 20,869 - (561,536) 56,878 198,258		33,679 10,061 (27,008) -	494,847 9,425 (31,975) 41,797	4,238,680 79,919 (620,519) 296,933
	1,062,875 2,401,312		16,732	514,094	3,995,013
	942,974 2,816,933 37,713 13,831		32,292 1,387	498,815 7,868	4,291,014 60,799

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Disposal Effect of movements in exchange rates Balance as at December 31, 2021 Carrying amounts: Balance as at December 31, 2022 Balance as at December 31, 2021	- - $ - $ 263,627 $ 263,627	- (32,904) - (729) (33,633) (14,254) (54,139) - (11,107) (79,500)
		966,433 2,743,721 33,679 494,847 4,238,680
		479,096 72,710 28,456 26,949 870,838
		477,006 80,528 26,974 19,881 868,016

Note 1: Transferred from payments for prepaid equipment.

(XII) Right of use assets

The cost, depreciation, and impairment loss of the land and buildings of the Group were as follows:

Right of use asset costs: Balance as at January 1, 2022 Addition Remeasurements due to change in lease term Disposal (early termination of the contract) Effect of movements in exchange rates Balance as at December 31, 2022 Balance as at January 1, 2021 Addition Disposal (early termination of the contract) Effect of movements in exchange rates Balance as at December 31, 2021 Right of use asset depreciation: Balance as at January 1, 2022 Depreciation for the current period Disposal (early termination of the contract) Effect of movements in exchange rates Balance as at December 31, 2022 Balance as at January 1, 2021 Depreciation for the current period	Land	Total 155,440 1,988 7,324 (3,665) 6,979
	$ 73,732 94,334	168,066
	$ 68,682 43,865 - 87,011 - (42,189) (1,929) -	112,547 87,011 (42,189) (1,929)
	$ 66,753 88,687	155,440
	$ 4,800 9,957 1,774 17,769 - (1,606) 579 -	14,757 19,543 (1,606) 579
	$ 7,153 26,120	33,273
	$ 3,148 20,395 1,761 15,255	23,543 17,016

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Disposal (early termination of the contract) Effect of movements in exchange rates Balance as at December 31, 2021 Carrying amounts: Balance as at December 31, 2022 Balance as at December 31, 2021	- (25,693) (25,693) (109) - (109)
	$ 4,800 9,957 14,757
	$ 66,579 68,214 134,793
	$ 61,953 78,730 140,683

(XIII) Investment real estate

Investment real estate constitutes the Group's own assets and right-of-use assets that recognize leasehold rights. Changes in the cost, depreciation, and impairment losses investment real estate of the Group are detailed as follows:

Own assets Land Land and buildings $ 69,908 405,160 - 816 - (1,573) - 43,542	Own assets Land Land and buildings $ 69,908 405,160 - 816 - (1,573) - 43,542	Right of use assets Land 29,991 - - 10,466	Total 505,059 816 (1,573) 54,008
Land $ 69,908 - - -
$ 69,908	447,945	40,457	558,310
$ 69,908 -	416,662 (11,502)	30,858 (867)	517,428 (12,369)
$ 69,908	405,160	29,991	505,059
$ - - - -	205,616 17,035 (1,573) 22,894	2,158 797 - 7,591	207,774 17,832 (1,573) 30,485
$ -	243,972	10,546	254,518
$ - - -	195,156 16,114 (5,654)	1,415 792 (49)	196,571 16,906 (5,703)

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Balance as at December 31, 2021 Carrying amount: Balance as at December 31, 2022 Balance as at December 31, 2021 Fair value: Balance as at December 31, 2022 Balance as at December 31, 2021	$ - 205,616 2,158 207,774	$ - 205,616 2,158 207,774
	$ 69,908 203,973 29,911 303,792
	$ 69,908 199,544 27,833 297,285
		$ 322,093
		$ 369,830

The Group’s investment property on Zhongxiao East Road of Taipei City was valuated for its fair value by referencing the market evidence of the transaction price of similar real properties.

The fair value of the Group’s investment property in Thach That – Quoc Oai Industrial Park, Hanoi, Vietnam was appraised by independent appraisers.

(XIV) Intangible assets

The cost, depreciation, and impairment loss of the Intangible assets of the Group in 2021 were as follows:

Cost: Balance as at December 31, 2022 (i.e., balance as at January 1, 2022) Balance as at January 1, 2021 Addition Balance as at December 31, 2021 Amortization and impairment loss: Balance as at January 1, 2022 Amortization for the period Balance as at December 31, 2022 Balance as at January 1, 2021 Amortization for the period Balance as at December 31, 2021 Carrying amounts: Balance as at December 31, 2022 Balance as at December 31, 2021	Computer software $ 6,138
	$ - 6,138
	$ 6,138
	$ 78 888
	$ 966
	$ - 78
	$ 78
	$ 5,172
	$ 6,060

(XV) Short-term loans

Details, conditions, and terms of short-term loans of the Group are as follows:

Credit loans	2022.12.31		2021.12.31 132,641
	$-

～ 39 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Unused credit line Interest rate range (%)	$ 1,382,169	$ 1,382,169	1,131,902
		-	0.71~0.88

(XVI) Lease liabilities

Book value of the Group’s lease liabilities is as follows: 2022.12.31 Current: Lease liabilities $ 113 Lease liabilities - Related parties 17,168 $ 17,281 Non current: Lease liabilities $ 19,029 Lease liabilities - Related parties 51,549 $ 70,578	Book value of the Group’s lease liabilities is as follows: 2022.12.31 Current: Lease liabilities $ 113 Lease liabilities - Related parties 17,168 $ 17,281 Non current: Lease liabilities $ 19,029 Lease liabilities - Related parties 51,549 $ 70,578	2021.12.31 94 17,421
	$ 17,281	17,515
	$ 19,029 51,549	17,254 61,622
	$ 70,578	78,876

For maturity analysis of financial instruments, please refer to Note 6 (25). Amounts recognized as profit or loss are as follows:

Interest on lease liabilities Expenses relating to short term leases Expenses relating to leases of low value assets, excluding short term leases of low value assets Amounts recognized in the Statements of Cash Total amount of net cash flows from operating activities Total amount net cash flows from financing activities Total cash flows from leases	2022 $ 2,765	2021 2,305
	$ 474	762
	$ 827	764
	Flows are as follows: 2022 2021 $ 4,066 3,831 17,387 17,602
	$ 21,453 21,433

The Group leases land, houses, and buildings as factories, offices and leases. Land and building leases are typically for three to five years. When the lease period expires, the option to extend the same period as the original contract is available. In addition, the land lease period is 37 years.

The Group leases some offices and transportation equipment for a period of one year to three years. Such leases are leases of short term or low value subject matter, and the Company has elected not to recognize right of use assets and lease

～ 40 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

liabilities for these leases.

As of December 31, 2022 and 2021. The Group’s lease liabilities Increase by NTD 4,973 thousand due and decreased by NTD 16,535 thousand due to early termination and re-assessment of some lease contracts.

(XVII) Provisions

After-sales service provisions:

Beginning balance as of January 1 Newly added provisions for the period Provisions used in the period Current reversal provision Ending balance as of December 31	2022 $ 96,388 50,626 - (18,829)	2021 56,624 47,100 (881) (6,455)
	$ 128,185	96,388

Carrying amount of after-sales service provisions is as follows:

Current Non current	2022.12.31
	$ 128,185 96,388

Decommissioning, restoration, and rehabilitation costs - non current:

Beginning balance as of January 1 Provisions used in the period Ending balance as of December 31	2022 $ 6,131 (967)		2021 6,131 -

	$ 5,164		6,131

Liability provision for after-sales service is based on historical experience, management's judgment and other known reasons to estimate possible product returns, discounts and replacements, and it is recognized as cost of goods sold in the year when the related products are sold.
Decommissioning, restoration, and rehabilitation costs is to estimate the restoration cost of the leased plant that may occur in the future.

(XVIII) Employee benefits

Defined benefit plan

Reconciliation between the present value of the Company's defined benefit obligations and the fair value of plan assets is as follows:

Present value of defined benefit obligations Fair value of plan assets	2022.12.31 $ 16,493 (11,156)	2021.12.31 18,331 (9,926)

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Non-current net defined benefit liability $ 5,337 8,405

The Company's defined benefit plan is transferred to labor retirement reserve accounts of the Bank of Taiwan. Retirement payments for each employee are subject to the Labor Standards Act; they are calculated on the basis of years of service and the average salary for the six months prior to retirement.

(1) Composition of plan assets

In accordance with the Labor Standards Act, the pension fund provided for by the Company is under the overall management of the Bureau of Labor Funds under the Ministry of Labor. In accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, the minimum income distributed in the annual final settlement for the use of the fund shall not be lower than the income calculated according to the two-year fixed deposit interest rate of local banks.

As of the reporting date, the balance of the Company's labor retirement reserve account at the Bank of Taiwan was NTD 11,156 thousand. Information on the use of assets of the labor pension fund includes fund yield and fund asset allocation; please refer to the information published on the website of the Bureau of Labor Funds.

(2) Changes in present value of defined benefit obligations

Changes in the present value of the Company's defined benefit obligations in 2022 and 2021 were as follows:

22 and 2021 were as follows:
Benefit obligations determined as at January 1 Current service cost and interest Remeasurement of net defined benefit liabilities (assets) - Actuarial gains and losses due to experience adjustments - Actuarial gains and losses arising from changes in demographic assumptions - Actuarial gains and losses arising from changes in financial assumptions Benefit obligations determined as at December 31	2022 $ 18,331 114 (1,269) - (683)	2021 18,074 90 (10) 369 (192)
	$ 16,493	18,331

(3) Changes in fair value of plan assets

Changes in the fair value of the Company's defined benefit plan assets in 2022 and 2021 were as follows:

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Fair value of identifiable plan net assets as at January 1 Interest income Remeasurement of net defined benefit liabilities (assets)`－`plan asset return (excluding current interest) Amount allocated to the plan Fair value of identifiable plan net assets as at December 31	2022 $ 9,926 63 762 405	2021 9,334 48 117 427
	$ 11,156	9,926

(4) Expenses recognized in profit or loss

Details of expenses reported by the Company in 2022 and 2021 are as follows:

Current service cost Net interest on net defined benefit liabilities	2022 $ - 51	2021 - 42
	$ 51	42

(5) Net defined benefit assets recognized in remeasurement of other comprehensive income (liabilities)

The Company's cumulative net defined benefit assets recognized in

remeasurement of other comprehensive income (liabilities) are as follows:

Cumulative balance as at January 1 Recognized this period Cumulative balance as at December 31	2022 $ 226 2,714 $ 2,940	2021 276 (50)
		226

(6) Actuarial assumptions

Significant actuarial assumptions used by the Company for the present value of the defined benefit obligations at the reporting date are as follows:

Discount rate Future salary increases	2022.12.31 1.375% 2.250%	2021.12.31 0.625% 2.000%

The Company expects a provision amount paid to defined benefit plan of

$394 thousand within one year after the 2022 annual report date.

The weighted average duration of the defined benefit plan is 7.9 years.

(7) Sensitivity analysis

The impact of changes in key actuarial assumptions when applied at 31 December 2022 and 2021 on the present value of the defined benefit

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

obligations is as follows:

December 31, 2022 Discount rate (change of 0.25%) Future salary adjustments (change of 0.25%) December 31, 2021 Discount rate (change of 0.25%) Future salary adjustments (change of 0.25%)	Impact on defined benefit obligations Increase0.25 % Decrease 0.25% (319) 331 323 (313) (381) 397 385 (372)

The above sensitivity analysis is based on the analysis of the impact of a change in a single assumption while other assumptions remain unchanged. In practice, many changes in assumptions may be linked. The sensitivity analysis is consistent with the methodology used to calculate the net defined benefit liability on the balance sheet.

The methods and assumptions used in the preparation of the sensitivity analysis in this period are the same as those in the previous period. 2. Defined contribution plan

Among the Group, in the Company and in its subsidiary Taiwan SRU Corp. established in the Republic of China, transfers are made to individual labor pension accounts established by the Bureau of Labor Insurance in line with the contribution rate of 6% of monthly employee salaries and in accordance with the provisions of the Labor Pension Act. Under this setup, after the Company and Taiwan SRU Corp. have provided a fixed amount to the Bureau of Labor Insurance, there is no statutory or constructive obligation to pay an additional amount.

The Groups’ subsidiaries located in China and Vietnam are determined as providing for retirement, and these pension are based on employee salaries. A certain percentage of the related allocations are deposited into a special account of the retirement fund, which is managed by the local statutory insurance agency. When an employee retires, he or she can receive the employee's self-provided funds and the Company's relative contribution funds and its yield from the special fund account.

Pension expenses under the Group's 2022 and 2021 defined pension appropriation measures are NTD 5,198 thousand and NTD 5,545 thousand

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

respectively, which have been allocated to the Bureau of Labor Insurance.

(XIX) Income taxes

ncome taxes	ncome taxes	ncome taxes
1. The Group's 2022 and 2021 income tax expenses (gains) are detailed			as follows:
		2022	2021
Current income tax expense
Current period	$	26,334	19,603
Adjustment for prior periods		(1,822)	1,658
		24,512	21,261
Deferred tax expense (gain)
Occurrence and reversal of temporary		(8,446)	8,712
differences
Income tax expense	$	16,066	29,973
Income tax gain (expense) recognized by the	Group under other
comprehensive income in 2022 and 2021 are detailed as follows:
		2022	2021
Components of other comprehensive
income that will not be reclassified to profit
or loss:
Remeasurement of defined benefit plan	$	(543)	10
The Group's 2022 and 2021 income tax expenses and reconciliation with net
profit before tax are detailed as follows:
		2022	2021
Net profit before tax	$	449,936	264,502
Income tax calculated at the domestic tax	$	89,987	52,900
rate of the Company's location
Impact of tax rate differences in foreign jurisdictions		5,098	-
Tax-exempt dividend income		(25,633)	(23,116)
Valuation gain of financial assets		(1,424)	756
Investment income accounted for using the		(10,537)	(10,844)
equity method
Liquidation losses		-	(9,651)
Non-deductible expenses		2,598	3,725
Subsidiary capital reduction to make up for		(55,721)	-
losses
Recognition of tax losses not recognized in the previous period		-	(22,810)
Tax difference in depreciation expenses		(374)	(3,196)
Changes in deferred tax assets		-	17,201

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Previous underestimation Undistributed surplus earnings Disposal gain on discontinued operations Other Total	1,822 1,658 7,337 7,220 - 13,127 6,557 3,003
	$ 16,066 29,973

2. Deferred tax assets and liabilities

(1) Unrecognized deferred tax assets

Items not recognized as deferred tax assets by the Group are as follows: 2022.12.31 2021.12.31 Temporary differences that can be deducted $ 2,624,107 2,902,710 Tax loss 1,596,547 1,596,634 $ 4,220,654 4,499,344	Items not recognized as deferred tax assets by the Group are as follows: 2022.12.31 2021.12.31 Temporary differences that can be deducted $ 2,624,107 2,902,710 Tax loss 1,596,547 1,596,634 $ 4,220,654 4,499,344	Items not recognized as deferred tax assets by the Group are as follows: 2022.12.31 2021.12.31 Temporary differences that can be deducted $ 2,624,107 2,902,710 Tax loss 1,596,547 1,596,634 $ 4,220,654 4,499,344
	$ 4,220,654	4,499,344

Taxable losses are subject to the provisions of the Income Tax Act. As approved by the tax collection authority, losses for the previous ten years may be deducted from the net profit of the current year to re-assess income tax. These items are not recognized as deferred tax assets. This is because it is not probable that the Group will have sufficient taxable income for the temporary difference in the future.

As of December 31, 2022, the Group has not yet recognized tax losses as deferred tax assets. The deduction period is as follows:

Year of Loss	Loss not yet deducted $ 36,458 274,845 370,175 98,904 808,806 7,359	The last year for which the deduction can be made
2013 approved number 2014 approved number 2015 approved number 2016 approved number 2017 approved number 2018 declared number Total		2023 2024 2025 2026 2027 2028
	$ 1,596,547

(2) Deferred tax assets and liabilities recognized

Changes in deferred tax assets and liabilities for 2022 and 2021 were as follows:

Deferred tax assets:

Inventory Expected Exchange allowance credit losses Other Total

～ 46 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

for impairmen t losses $ 6,841 3,816 -	loss 4,749 - (2,955) 24 - -	21,391 32,981 6,490 7,375 (543) (543) 27,338 39,813 17,375 39,707 4,006 (6,736) 10 10 21,391 32,981
$ 10,657	1,794 24	27,338
$ 5,017 1,824 -	17,023 292 (12,274) (292) - -
$ 6,841	4,749 -

Deferred tax liabilities: January 1, 2022 Debit (credit) profit and loss December 31, 2022	Foreign exchange gains
	$ 2,003 (1,071) $ 932

January 1, 2021 Debit (credit) profit and loss December 31, 2021	Foreign exchange gains $ - 2,003	Other 27 (27)	Total 27 1,976
	$ 2,003	-	2,003

3. Income tax approval status

The Company’s tax returns for the years through 2020 were examined and approved by the tax authority.

(XX) Capital and other equity

1. Issuance of ordinary shares

As at December 31, 2022 and 2021, the Company's total authorized capital stock is NTD 2,000,000 thousand and the par value of each share is NTD 10. Total issued shares amount to 151,328 thousand shares.

2. Capital reserve

The balance of the Company's capital reserve is as follows:

Additional paid-in capital - may be used to compensate for losses, distributed in cash, or recapitalized. Additional paid-in capital may be used - only to compensate for prior losses.	2022.12.31 $ 1,934,757 50,804	2022.12.31 2,010,421 50,804

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Changes in the net equity value of affiliated companies recognized under the equity method Employee stock options	13,634 13,634 2,321 2,321
	$ 2,001,516 2,077,180

In accordance with provisions of the Company Act, after capital reserve is given priority to cover losses, it may be issued to new shares or cash in proportion to the shareholders' original shares in the form of realized capital gains. Realized capital gains as mentioned in the preceding paragraph includes excess from the issuance of shares in excess of par value as well as grants received. In accordance with provisions of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the total amount of capital reserves that can be used as capital shall not exceed 10% of the paid-in capital. 3. Retained earnings

According to the provisions of the earnings distribution policy of the Articles of Incorporation of the Company, if there is a surplus in the annual final accounts, taxes should first be paid to offset any prior deficit, and 10% is to be subsequently set aside as legal reserve. In addition, in accordance with the provisions of Article 41, Paragraph 1 of the Securities and Exchange Act, for the deduction amount of shareholders' equity incurred in the current year, the same amount of special reserve shall be set aside from the after-tax surplus earnings of the current year and the undistributed surplus earnings of the previous period. For the deduction amount of other shareholders' equity accumulated in the previous period, the special reserve of the same amount shall not be distributed from the undistributed surplus earnings in the previous period. In the event of a subsequent reversal of the amount of the deduction of shareholders' equity, earnings may be distributed to the reversed portion.

In addition, and in accordance with the Articles of incorporation of the Company, the dividend policy of the Company is based on current and future development plans while considering the investment environment, capital needs, and the domestic and foreign competitive environment, and takes into account the interests of shareholders and other factors. Each year, no less than 20% of the distributable surplus shall be allocated for distribution to shareholders as dividends and bonuses; but when the accumulated distributable surplus is less than 100% of paid-in capital, it may not be distributed.

(1) Legal reserve

When the Company has no losses, then subject to a resolution of the

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

shareholders' meeting there may be issuance of new shares or cash with the legal reserve. However, this is limited to the portion of the reserve exceeding 25% of the paid-in capital.

(2) Earnings distribution

At its respective General Meetings of Shareholders onJune 29, 2022 and August 3, 2021, the Company passed corresponding resolutions for 2021 and 2020, announcing cash dividends from capital reserve and earnings distribution with the amounts of cash dividends being as follows:

Dividends distributed to owners of ordinary shares: Cash - retained earnings Cash - capital reserve Distribution rate in NT dollars (NTD)	2021
	$ 181,593 151,328
	$ 1.2 1.00

Information on the distribution of earnings as resolved by the Company's shareholders' meeting can be inquired through the Market Observation Post System.

4. Other equity (net of tax)

Balance as at January 1, 2022 Exchange differences on translation of foreign financial statements Share of other comprehensive income of subsidiaries, affiliates, and joint ventures recognized using the equity method Unrealized valuation gains and losses on financial assets at fair value through other comprehensive income Balance as at December 31, 2022 Balance as at January 1, 2021 Exchange differences on translation of foreign financial	Foreign currency translation differences for foreign operations $ (89,969) 102,110 1,386 -	Unrealized valuation gains (losses) on financial assets at fair value through other comprehensive income 1,152,720 - - 21,486	Total 1,062,751 102,110 1,386 21,486 1,187,733 599,232 (110,763)
	$ 13,527	1,174,206
	$ 21,361 (110,763)	577,871 -

～ 49 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

statements Share of other comprehensive income of subsidiaries, affiliates, and joint ventures recognized using the equity method Unrealized valuation gains and losses on financial assets at fair value through other comprehensive income Balance as at December 31, 2021	(567) - (567) - 574,849 574,849
	$ (89,969) 1,152,720 1,062,751

(XXI) Earnings per share

Basic EPS: Net profit attributable to the Company for the period - continuing operations Net profit (loss) attributable to the Company for the period - discontinued operations Net profit attributable to holders of ordinary shares of the Company Weighted average number of ordinary shares outstanding Basic EPS - Continuing Operations (Unit: New Taiwan Dollars) Basic EPS - Discontinued Operations (Unit: New Taiwan Dollars) Diluted EPS: Net profit attributable to the Company for the period - continuing operations Net profit (loss) attributable to the Company for the period - discontinued operations Net profit attributable to holders of ordinary shares of the Company Weighted average number of ordinary shares outstanding Effect of dilutive potential ordinary shares Employees’ compensation Weighted average number of ordinary	Unit: Thousand shares 2022 2021 $ 416,051 217,494 - 61,936	Unit: Thousand shares 2022 2021 $ 416,051 217,494 - 61,936
	$ 416,051	279,430
	151,328	151,328
	$ 2.75	1.44
	$ -	0.41
	$ 416,051 -	217,494 61,936
	$ 416,051	279,430
	151,328 390	151,328 332
	151,718	151,660

～ 50 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

shares outstanding (diluted) Diluted EPS - Continuing Operations (Unit: New Taiwan Dollars) Diluted EPS - Discontinued Operations (Unit: New Taiwan Dollars)	$ 2.74 1.43
	$ - 0.41

(XXII) Revenue from contracts with customers

1. Details of revenue

		2022	Total 118,483 27,406 1,399,757
Optoelectronics Division		Electromechanical Division 1,428 - 665,745
$ 117,055 27,406 734,012 $ 878,473
		667,173	1,545,646
		2021	Total 157,725 14,686 1,276,880
Optoelectronics Division		Electromechanical Division 1,061 - 563,017
$	156,664 14,686 713,863 885,213 2022.12.31
$		564,078	1,449,291
		2021.12.31 139,266 159,832 15,476 (27,548) -	2021.1.1 131,181 82,781 321 (8,609) (165)
		287,026	205,509
	$ 5,579	6,028	14,983

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Please refer to Note 6 (5) for disclosure of notes and accounts receivable and their impairment.

The opening balances of contract liabilities on January 1, 2022 and 2021were recognized as revenue in 2022 and 2021, amounting to NTD 2,335 thousand and NTD14,303 thousand respectively.

(XXIII) Remuneration of employees and directors

According to the Articles of Incorporation of the Company, if there is profit for the year then not less than 2% shall be set aside for employees’ remuneration and not more than 1.5% shall be set aside as remuneration for directors. However, when the Company still has accumulated losses, it should reserve the compensatory amount in advance. Stock or cash may be distributed to persons to whom employee remuneration is to be distributed as in the preceding paragraph, including employees of controlling or subordinate companies meeting certain conditions.

The Company’s estimated amounts of employee remuneration for 2022 and 2021 were NTD 8,636 thousand and NTD 6,353 thousand respectively. The corresponding estimated amounts for directors' remuneration were NTD 6,463 thousand and NTD 4,765 thousand. The estimated amounts mentioned above are calculated based on net profit before tax of the Company, excluding remuneration to employees and directors, and multiplied by the percentage of remuneration to employees and directors as stipulated in the Company’s Articles of Incorporation. These remunerations were reported under operating expenses. The differences between the actual distributed amounts, as determined by the Board of Directors, and those recognized in the financial statements, if any, shall be accounted for as changes in accounting estimates and recognized in profit or loss in the following year. Relevant information can be inquired through the Market Observation Post System. If the Board of Directors decides to pay employee compensation in stock, the numbers of shares to be distributed were calculated based on the closing price of the Company’s shares one day before the date of the decision of the Board of Directors.

The estimated compensation to directors and employees recognized in the 2021 consolidated financial statements differed from the distribution amount approved by the Board of Directors meeting dated May 11, 2022 by (142) thousand, primarily due to variation in accounting estimates. Such differences were accounted for as changes in accounting estimates, and recognized in profit or loss of 2022. For details, see the Market Observation Post System (MOPS).

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

(XXIV) Non-operating revenue and expenses

1. Interest income

Details of the interest income of the Group are as follows:

Bank deposit interest	2022 $ 3,600	2021 293

2. Other income

The details of other revenue of the Group were as follows:

Lease income Dividend income Other income	2022 $ 67,364 128,166 8,966	2021 62,855 115,581 7,098
	$ 204,496	185,534

3. Other gains and losses

The details of other gains and losses were as follows:

Proceeds from disposal of property, plant and equipment Gain on disposal of investments Investment real estate depreciation expense Net foreign currency exchange gains (loss) Gain (loss) on financial assets at fair value through profit or loss Loss on payment of output tax past due Other	2022 $ 16,264 28,163 (17,832) (20,420) 7,120 (21,141) (17)	2021 120 - (16,906) 23,653 (3,780) - (955)
	$ (7,863)	2,132

4. Finance costs

The Group’s finance costs were as follows:

Bank loans Lease liabilities Other	2022 $ 722 2,765 8	2021 932 2,305 13
	$ 3,495	3,250

(XXV) Financial instruments

1. Credit risk

(1) Credit risk exposure

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

The carrying amount of financial assets represents the maximum credit risk exposure amount.

(2) Concentration of credit risk

Among the balances of accounts receivable and notes receivable of the Group as at December 31, 2022 and 2021, three major customers accounted for 51% and 63% respectively.

(3) Credit risk on receivables and financial assets at amortized cost

For credit risk exposure of notes receivable and accounts receivable, please refer to Note 6 (5). For credit risk exposure of other receivables and long-term receivables, please refer to Note 6 (6). Other receivables, long-term receivables and other financial assets measured at amortized cost are financial assets with low credit risk. The loss allowance for that period is therefore measured at the twelve-month expected credit loss amount.

2. Liquidity risk

The Group manages and maintains sufficient cash and cash equivalents to support the Group's operations and mitigate the impact of fluctuations in cash flow. The Group's management supervises the use of bank financing lines and ensures compliance with terms of the loan contracts.

The following are the contractual maturities of financial liabilities, including

estimated interest payments and excluding the impact of netting agreements.

Contractual cash flows 546 101,987 184,978 127,545 21,139 61,312	Within 1 year 546 101,987 184,978 19,825 35 -	1-2years	2-5 years - - - 39,767 17,580 - 57,347	More than 5 years - - - 48,128 2,571 61,312
		- - - 19,825 953 -
497,507	307,371	20,778		112,011
133,003 675 156,774 175,032 135,384 17,242 55,262	133,003 675 156,774 175,032 20,088 - -	- - - - 37,764 17,242 -	- - - - 32,605 - -	- - - - 44,927 - 55,262
673,372	485,572	55,006	32,605	100,189

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

The Group does not expect that the cash flows included in the maturity

analysis could occur significantly earlier or in significantly different amounts.

Exchange rate risk
(1) Exposure to exchange rate risk

The Group's financial assets and liabilities exposed to significant foreign currency exchange rate risk were as follows:

Financial assets Monetary items US Dollar RMB Vietnamese Dong Japanese Yen Financial liabilities Monetary items US Dollar Vietnamese Dong Japanese Yen		2022.12.31			2021.12.31	New Taiwan Dollar 2,038,443 22 10,048 2,746 1,834,488 24,622 9,498
	Foreign currency	Exchange rate	New Taiwan Dollar	Foreign currency	Exchange rate
	$ 12,248 290 7,417,274 188,994 6,920 16,621,614 79,757	30.7100 4.4080 0.0013 0.2324 30.7100 0.0013 0.2324	376,144 1,279 9,568 43,922 212,503 21,442 18,536	73,643 5 8,373,696 11,418 66,275 20,518,468 39,494	27.6800 4.3440 0.0012 0.2405 27.6800 0.0012 0.2405

(2) Sensitivity analysis

The Group’s exposure to exchange rate risk arises from the translation of

the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable (including related parties), accounts payable (including related parties), and other payables that are denominated in foreign currency. As at December 31, 2022 and 2021, if the TWD, when compared with the USD, CNY, VND, and JPY had appreciated or depreciated 5% with all other factors remaining constant, then net profit before tax for 2022 and 2021 would have respectively increased or decreased by approximately NTD8,922 thousand and NTD9,133 thousand. The analysis is performed on the same basis for both periods.

(3) Exchange gains and losses on monetary items

Due to the wide variety of foreign currency transactions of the Group, gains or losses on foreign exchange are summarized as a single amount. Foreign currency exchange gains and (losses) (including both realized and unrealized) in 2022 and 2021 were NTD (20,420) thousand and NTD 23,653 thousand, respectively.

4. Interest rate risk

The following sensitivity analysis is based on the exposure to interest rate risk of non-derivative financial instruments on the reporting date. For floating rate financial instruments, the sensitivity analysis assumes that the amounts of assets

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

and liabilities outstanding at the reporting date were outstanding throughout the year. The rate of change used in reporting interest rates internally to key management of the Group constituted a 1% increase or decrease in interest rates; this also represented the range of changes in interest rates considered by management to be reasonably possible.

If interest rates had increased or decreased by 1% and all assuming all other variable factors remained constant, pre-tax net profit in 2022 and 2021 would have decreased or increased by approximately NTD 0 thousand and NTD 1,300 thousand respectively, mainly due to the Group's variable interest rate borrowings.

Other market price risk

Sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

w:
Price of securities at reporting date Up 5% Down 5%	2022 $ 167,576	2021 164,364
	$ (167,576)	(164,364)

6. Fair value information

(1) Hierarchy and fair value of financial instruments

The Group's financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income are measured at fair value on a recurring basis. The carrying amount and fair value of each category of financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and for equity investments that has no quoted prices in the active markets and whose fair value cannot be reliably measured, disclosure of fair value information is not required:

2022.12.31

Financial assets at fair value through profit or loss Non-derivative financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income	Carrying amount $ 74,970		Fair value	Fair value	Total 74,970
		Level 1 74,970	Level 2 -	Level 3 -

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

3,334,383 17,142	3,334,383 - - - - 17,142	3,334,383 - - - - 17,142	3,334,383 - - - - 17,142	3,334,383 17,142
3,351,525	3,334,383 - 17,142			3,351,525
546,502 70,710 223,210 5,758 5,735 61,312	- - - - - - - - - - - - - - - - - -			- - - - - -
913,227	- - -			-
$ 4,339,722	3,409,353 - 17,142			3,426,495
$ 102,533 184,978 87,859 21,139 61,312	- - - - - - - - - - - - - - -			- - - - -
$ 457,821	- - -			-
	2021.12.31			Total 57,132
Carrying amount $ 57,132		Fair value
	Level 1 57,132	Level 2 -	Level 3 -
3,271,638 15,642	3,271,638 -	- -	- 15,642	3,271,638 15,642
3,287,280	3,271,638	-	15,642	3,287,280

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

amortized cost Cash and cash equivalents Current financial assets at amortised cost Notes receivable and accounts receivable (including related parties) Other receivables Refundable deposits Other non-current assets Subtotal Total Financial liabilities measured at amortized cost Bank loans Notes payable and accounts payable (including related parties) Other payables Lease liabilities (including related parties) Deposits received Other non-current liabilities Total	358,053 - - - - 2,632 - - - - 287,026 - - - - 3,665 - - - - 6,743 - - - - 55,262 - - - -
	713,381 - - - -
	$ 4,057,793 3,328,770 - 15,642 3,344,412
	$ 132,641 - - - - 157,449 - - - - 175,032 - - - - 96,391 - - - - 17,242 - - - - 55,262 - - - -
	$ 634,017 - - - -

(2) Valuation techniques for financial instruments measured at fair value—nonderivative financial instruments

If there is a quoted market price in an active market for a financial instrument, the fair value is based on the quoted market price in an active market. The market price announced by the major exchanges for all listed (overthe-counter) equity instruments taken as the basis for fair value.

Among financial instruments held by the Group, the stocks of listed (overthe-counter listed) companies and gold passbook accounts are financial assets with standard terms and conditions and are traded in the active market, and their fair values are determined by reference to market quotations.

Except for the above-mentioned financial instruments for which there is an active market, the fair values of other financial instruments are based on valuation techniques. Fair value obtained through valuation techniques may refer to the current fair value of other financial instruments with substantially similar conditions and characteristics, discounted cash flow methods, or other valuation techniques including those calculated using models based on market information available at the consolidated balance sheet date.

Financial instruments held by the Group constitute equity instruments

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

without an active market that are not publicly quoted and are measured at fair value. Fair value is estimated using the market comparables approach as well as net asset value. The main assumptions of the market comparables approach are based on the after-tax net profit or equity net worth of the investee and the earnings or book value multipliers derived from market quotations of comparable listed companies. This estimate has been adjusted for the discounting effect of the lack of market liquidity of the equity securities. Because the amount of equity investment estimated by the Group using the market comparable company method and net asset value to estimate the fair value is not significant, there is no intention to disclose quantitative information.

(XXVI) Financial risk management

The Group's financial management department provides services for each business units including overall coordination of access to domestic and international financial market operations, supervision and management of financial risks related to the Group's operations through internal risk reports that analyze exposure in accordance with risk procedures and breadth. Such risks include market risk (including exchange rate risk, interest rate risk, and other price risk), credit risk, and liquidity risk.

The Group avoids exposure to risk through derivative financial instruments to mitigate the impact of these risks. The use of derivative financial instruments is regulated by the policies adopted by the Board of Directors of the Company, which are written principles of exchange rate risk, interest rate risk, credit risk, and the use of derivative financial instruments. Internal auditors continually review policy compliance and exposure limits. The Group does not trade in financial instruments for speculative purposes (including derivative financial instruments).

1. Credit risk

Credit risk refers to the risk of financial losses by the Group caused by a counterparty defaulting on its contractual obligations. As of the balance sheet date, the Group's largest credit risk exposure for financial losses arising from a counterparty's failure to perform its obligations is mainly from the book values of financial assets recognized in the balance sheet.

The policy adopted by the Group is to only deal with reputable parties, and, if necessary, obtain sufficient guarantee to reduce the risk of financial loss due to default. The Group continuously monitors the credit risk insurance and the credit ratings of counterparties and distributes the total transaction amounts to customers with qualified credit ratings. The credit risk is controlled through the

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

counterparty's credit limit, which is reviewed and approved by the Group's most competent personnel every year.

The Group continuously evaluates the financial status of accounts receivable customers. The Group has no significant credit exposure to any single counterparty or any group of counterparties with similar characteristics. When the counterparty to a transaction is an affiliated company, the Group defines it as a counterparty with similar characteristics. The Group has no significant concentration of credit risk.

2. Liquidity risk

The Group manages and maintains sufficient cash and cash equivalents to support the Group's operations and mitigate the impact of fluctuations in cash flows. The Group's management supervises the use of bank financing lines and ensures compliance with terms of the loan contracts.

The Group's working capital is sufficient to cover its needs; therefore, there is no liquidity risk due to an inability to raise funds to fulfill contractual obligations.

Bank borrowings are an important source of liquidity for the Group. As at December 31, 2022 and 2021, the Group's unutilized short-term bank facilities amounted to NTD 1,382,169 thousand and NTD 1,131,902 thousand respectively.

3. Market risk

Market risk refers to changes in market prices such as changes in exchange rates, interest rates, and equity instrument prices, and the risk that this affects the Group's income or the value of financial instruments held. The objective of market risk management is to control the exposure of market risks within an acceptable range and optimize the return on investment.

(1) Currency risk

The Group is exposed to exchange rate risks arising from sales, purchases, fixed deposits and borrowing transactions that are not denominated in the functional currency of the Group. The functional currency of the Group companies is mainly New Taiwan Dollars. The main denomination currencies for these transactions are New Taiwan Dollars, US Dollars, and Renminbi.

There is no significant difference or significant change in the receivables and payables of the Group. Therefore, the Group currently adopts natural hedging as the main exchange rate avoidance policy in terms of exchange rate risk.

(2) Interest rate risk

The Group's financial assets with fair value risk from changes in interest

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

rates are bank deposits; financial liabilities are short-term borrowings, but the impact on the fair value of the relevant financial assets due to changes in interest rates is not material.

(3) Other market price risk

The Group’s holdings of financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income are invested in domestic gold passbook accounts as well as domestic TWSE and TPEx listed company stocks. Because they are measured at fair value, the Group will be exposed to the risk of changes in the market prices of equity securities. We thus prudently select investment targets and control the positions held for the sake of managing market risk.

(XXVII) Capital management

The Group's capital risk management policy is based on the existing and possible future assets, liabilities and capital structure, taking moderate risks, and earning reasonable profits for shareholders. The goal is to achieve an ideal balance between risk control and business development and to optimize shareholder value.

In addition to appropriating legal reserve and special reserve according to law, the Group retains surplus funds and capital increase premium funds for plant expansion and operating turnover. The debt ratio is controlled below 30%, and we maintain adequate asset liquidity.

(XXVIII) Investing and financing activities not affecting current cash flow

The Group's investing and financing activities not affecting current cash flow in 2022 and 2021 were as follows:

For acquisition of the right-of-use asset by lease, please refer to Note 6 (12).
Reconciliation of liabilities from financing activities is as follows:

2022.1.1 Cash flows	Non cash changes Addition Disposal and Remeasurem ent Contracts in the Current Period Exchange rate changes	Non cash changes Addition Disposal and Remeasurem ent Contracts in the Current Period Exchange rate changes	Non cash changes Addition Disposal and Remeasurem ent Contracts in the Current Period Exchange rate changes
	Addition Disposal and Remeasurem ent Contracts in the Current Period
$ 132,641 (139,651) 96,391 (17,387)	- 1,988 1,988	- 4,973 4,973	7,010 1,894 8,904
$ 229,032 (157,038)

2021.1.1 Cash flows	Non cash changes Addition Disposal and Remeasurem ent Contracts Exchange rate changes 2021.12.31

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Short-term loans Lease liabilities Total liabilities from financing activities	in the Current Period	in the Current Period	(560) 1,803 1,243	132,641 96,391 229,032
	$ 24,970 108,231 - 41,714 (17,602) 87,011 $ 66,684 90,629 87,011	- (16,535) (16,535)

VII. Related party transactions

(I) Names and relationship with related parties

Parties involved in transactions with the Group during the period covered by this

consolidated financial report are as follows:

Name of related party Luminous Optical Technology Co., Ltd. (Luminous Optical Technology) Luminous Optical Technology (Vietnam) Co., Ltd. (Luminous Optical Technology Vietnam) Epoch Chemtronics Corp (Epoch) Hold-Key Electric Wire & Cable Co., Ltd. (Hold-Key)	Relationship with the Group
	Other related parties (de facto related parties) Other related parties (de facto related parties) Associate of the Company Other related parties (major shareholders of the Company)

(II) Significant transactions with related parties
Operating revenue

The Group's significant sales amounts with related parties are as follows:

Related party	2022 $ 141,164 220 $ 141,384	2021 90,014 -
Hold-Key Other related parties Total
		90,014

2. Purchase and processing costs

Amounts of purchase and processing costs between the Group and related parties are as follows:

Related party	2022 $ 17,420	2021 26,075
Other related parties

The Group's purchase, sales and processing costs for the above-mentioned related parties are in the form of cooperative export or division of production and sales. Therefore, the purchase, sales prices, receipt and payment terms, and processing costs between the Group and the related parties are mutually negotiated.

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

3. Receivables from related parties

Details of the Group's receivables from related parties are as follows:

Accounts	Related Party Category/Name	2022.12.31 $ 24,026 216	2021.12.31 15,476 - 15,476
Accounts receivable Total	Hold-Key Other related parties
		$ 24,242

As of December 31, 2022 and 2021, none of the above accounts receivable has any loss allowance.

4. Payable to related parties

Details of the Group's payables to related parties are as follows:

Accounts	Related Party Category/Name	2022.12.31 $ 5,607 416	2021.12.31 8,675 486
Accounts payable Other payables	Other related parties Other related parties
		$ 6,023	9,161

5. Leases

The Group leased factories from Hold-Key in January 2018 and May 2020 respectively, negotiating the lease according to the agreed price and signing fiveyear and three-year lease contracts with a total contract value of NTD 55,189 thousand. In April 2022 and July 2021, the Group renewed some of the said leases with HOLD-KEY for 5 years for88,868 thousand and 94,008 thousand, respectively. Since the Group terminated or remeasured some of the said leases, lease liabilities as of December 31, 2022 and 2021 increased by 4,973 thousand and decreased by 16,535 thousand, respectively. Interest on the said leases that was paid by the Group in 2022 and 2021 was 1,201 thousand and 826 thousand, respectively. Outstanding lease liability balance as of December 31, 2022 and 2021 was 68,717 thousand and 79,043 thousand, respectively.

6. Leasing revenue

1 was 68,717 thousand and 79,043 thousand, sing revenue	respectively.
Related party	2022 $ 11,772	2021 16,124
Other related parties Luminous Optical Vietnam

Through December 31, 2022 and 2021, the Group's deposits for renting out its factory to Luminous Optical Vietnam were NTD 3,523 thousand and NTD 3,425

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

thousand respectively.

(III) Remuneration of key management personnel

Short-term employee benefits Retirement benefits	2022 $ 37,233 484	2021 32,164 466
	$ 37,717	32,630

VIII. Pledged assets

Pledged assets of the Group were as follows:

Assets	Purpose of pledge	2022.12.31 $ -	2021.12.31 2,632
Restricted time deposits (financial assets measured at amortized cost)	Power guarantee

IX. Significant commitments and contingencies

Amounts of unused standby letters of credit that the Group has issued for the purchase

of raw materials and machinery and equipment are as follows:

Japanese Yen USD NTD	2022.12.31 JPY 131,103 USD 85 NTD -	2021.12.31 JPY 28,667 USD 349 25,907

X. Losses Due to Major Disasters: None.

XI. Subsequent Events: None.

XII. Other

A summary of current period employee benefits, depreciation, and amortization, by function, is as follows:

By function By nature	2022	2022	2022	2021	2021	2021
	Classified as operating costs	Classified as operating expenses	Total	Classified as operating costs	Classified as operating expenses	Total
Employee benefits Salary Health and labor insurance Pension Director's remuneration Other employee benefit expenses	107,209 13,079 2,861 - 7,691	113,443 6,489 2,587 7,892 2,361	220,652 19,568 5,448 7,892 10,052	112,627 12,929 2,751 - 9,158	115,803 7,314 2,836 6,385 3,000	228,430 20,243 5,587 6,385 12,158

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Depreciation expense (Note) Amortization expense	81,763 510	17,699 554	99,462 1,064	65,661 326	12,154 5	77,815 331

Note: Depreciation expenses incurred for investment real estate in 2022 and 201 were NTD 17,832 thousand and NTD 16,906 thousand respectively, accounted under other gains and losses.

XIII. Other disclosures

(I) Information on significant transactions:

The following is the information on significant transactions required for

disclosure by the Regulations Governing the Preparation of Financial Reports by Securities Issuers for the Group for 2022:

1. Loans to other parties:

Number (Note 1)	Lending company	Loan and counter party	Whether the current subject	is a relate d party	Maximum amount for the current period (Note 2)	Ending balance (Note 3)	Actual expenditur e amount	Interes t rate range (%)	Nature of the loan of funds (Note 4)	Transactio n amount for business between two parties	Reasons for necessity of short- term financing	Allow ance for bad debt	Collateral	Collateral	Loan of funds and limit for individual counterpart ies (Notes 5 and 6)	Loan of funds and total limit (Notes 5 and 6)
													Name	Value
0 1 2 3	The Company Young Fast Hong Kong Young Fast Belize Young Fast Samoa	Young Fast Belize Young Fast Belize Young Fast Samoa Young Fast Vietnam	Other receivabl es Other receivabl es Other receivabl es Other receivabl es	Yes Yes Yes Yes	135,124 852,180 767,750 153,550	- - - 153,550	- - - -	0.65 0 0.25 0.20~ 0.65	2 2 2 2	- - - -	Loan repayment and operating turnover In response to capital needs arising from investment structure adjustments of the Group In response to capital needs arising from investment structure adjustments of the Group Operating turnover	- - - -		- - - -	559,133 - 794,310 1,309,961	1,118,267 - 794,310 1,309,961

Note 1: The method for filling in the “Number” column is as follows:

The Company is filled in as 0.
Subsidiaries - in sequence by company from the Arabic numeral 1.
Note 2: The highest balance of funds loaned to others in the current year.

Note 3: Refers to the quota approved by the Board of Directors as of December 31, 2022.

Note 4: Method for filling in “Nature of the loan of funds”:

For those with business dealings please fill in “1.”
If there is a need for short-term financing, please fill in “2.”
Note 5: The total amount of the Company's loans of funds to others shall not exceed 40% of the net value of the Company. If the nature of the loans of funds is short-term financing, the total loan amount shall not exceed 20% of the net value of the Company, and the total amount of loans of funds to individual counterparties shall not exceed 10% of the net value of the Company. If the nature of the loans of funds is for business transactions, the amount of individual loans should not exceed the transaction amount for business between the two parties involved in the previous year or in the current year. For companies that have short-term financing with Young Fast Hong Kong, the individual loan and limit amount shall not exceed 10% of the net value of Young Fast Hong Kong, and the total loan and amount shall not exceed 30% of the net value of Young Fast Hong Kong. When the counterparty of a loan of funds is the Company or is a company of the Group not located in Taiwan and in which the Company holds 100% of its total shares, the total amount and individual loans and limit amounts shall not exceed 150% of the net worth of Young Fast Hong Kong. For companies that have short-term financing with Young Fast Belize and Young Fast Samoa, the individual loan amount shall not exceed 10% of the net value of the Company, and the total loan amount shall not exceed 30% of the net value of the Company. When the counterparty of a loan of funds is the Company or is a company of the Group not located in Taiwan and in which the Company holds 100% of its total shares, the total amount and individual loans and limits shall not exceed 150% of the net worth of Young Fast Belize and Young Fast Samoa.

Note 6: Loans of funds and limit amounts are calculated based on the most recent financial statements audited and certified by an accountant.

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Note 7: Young Fast Hong Kong completed all liquidation proceedings on August 19, 2022.

2. Guarantees and endorsements for other parties:

Number (Note 1)	Endorsemen t/guarantee company name	Counterparty of guarantee/ endorsement	Counterparty of guarantee/ endorsement	Endorseme nt/guarante e limit for a single business (Note 3)	Maximum endorsement /guarantee balance in the current period	Endorseme nt/guarante e balance at end of period	Actual expendit ure amount	Endorseme nt/guarante e amount by property guarantee	Proportion of cumulative endorsement/gu arantee amounts to the net value of the most recent financial statements(%)	Maximum endorseme nt/guarante e amount (Note 3)	Parent company to subsidiar y Endorse ment/gua rantee	Subsid iary to parent compa ny Endors ement/ guaran tee	Endorse ment/gua rantee for the Mainland China region
		Company name	Relationship (Note 2)
0 0	The Company The Company	Young Fast Vietnam Young Fast Samoa	2 2	1,677,400 1,677,400	276,390 1,596,920	138,195 767,750	- -	- -	2.47 13.73	2,795,667 2,795,667	Y Y	N N	N N

Note 1: The method for filling in the “Number” column is as follows:

The Company is filled in as 0.
Subsidiaries - in sequence by company from the Arabic numeral 1.
Note 2: The relationship between the one providing endorsements/guarantees and the one receiving endorsements/guarantees is classified into six types:
Intercompany business transactions
Companies in which the Company directly and indirectly holds more than 50% of the voting rights.
Companies that directly and indirectly hold more than 50% of the voting shares of the Company.
The Company holds, directly or indirectly, 90% or more of the voting shares of the Company.
Companies that are mutually protected under contractual requirements based on the needs of the contractor.
Companies that are endorsed by shareholders in accordance with their shareholding ratios because of the joint investment relationship.
Performance guarantees for pre-sale contracts under the Consumer Protection Act.
Note 3: The total amount of the Company's endorsements/guarantees shall be 50% of the net value of the Company's most recent financial statements, and endorsements/guarantees for a single enterprise shall not exceed 20% of the net value of the Company's most recent financial statements. Endorsements/guarantees for a single overseas affiliate shall not exceed 30% of the net value of the Company's most recent financial statements.

3. Securities held at the end of the period (excluding investment in subsidiaries,

associates and joint ventures):

Name of holder	Category and name of security	Relationship with issuer of securities	Account title		End ofperiod	End ofperiod	End ofperiod	Highest sharehol ding or capital contribut ion in the interim
				Shares/Units	Carrying amount	Percentag e of ownership	Fair value
The Company	Shares: Promell Materials Technology Inc. Ritfast Corporation Shares: First Financial Holding Co.,Ltd. Mega Financial Holding Company Limited Taiwan Cooperative Financial Holding Co., Ltd. Taiwan Business Bank Taiwan Fertilizer Co., Ltd. Cathay Financial Holdings Co., Ltd.	- - - - - - - -	Financial assets mandatorily designated as at fair value through profit or loss-current " Financial assets at fair value through other comprehensive income- current " " " " "	2,647 245 28,133 23,319 55,445 13,732 2,039 1,672	- - 745,533 707,724 1,389,557 177,832 109,087 66,887	7.42% 0.74% 0.21% 0.17% 0.38% 0.17% 0.21% 0.01%	- - 745,333 707,724 1,389,557 177,832 109,087 66,887	2,647 245 28,133 23,319 53,445 13,732 2,039 1,672

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

The Company	Hold-Key Electric Wire & Cable Co., Ltd. t Sol Young Enterprises Co., Ltd. ICP Technology Co., Ltd. Willide Optoelectronics Co., Ltd.	Major shareholders of he Company Corporate director of the Company - -	Financial assets at fair value through other comprehensive income `－`non current " " "	9,600 356 295 1.5	3,196,620	4.98% 0.55% 0.94% 15.00%	3,196,620	9,600 356 295 1.5
					137,763 12,610 3,032 1,500		137,763 12,610 3,032 1,500
					154,905		154,905

Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
Related party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

Purchasing (selling) company	Name of transaction counterparty	Relationshi p	Transaction status	Transaction status	Transaction status	Transaction status	Circumstances and reasons why transaction conditions different from normal trading	Circumstances and reasons why transaction conditions different from normal trading	Notes and accounts receivable (payable)	Notes and accounts receivable (payable)	Note
			Purchase d(sold)	Amount	Proportion of total purchased (sold) (%)	Credit period	Unit price	Credit period	Balance	Proportion of total notes and accounts receivable (payable) (%)
The Company The Company The Company Young Fast Vietnam Taiwan SRU Corp.	Hold-Key Young Fast Vietnam Taiwan SRU Corp. The Company The Company	Other related parties Sub- subsidiary Subsidiary Parent company Parent company	Sales Purchase of goods Purchase of goods Sales Sales	141,164 475,177 135,035 (475,177) (135,035)	9.11 47.20 13.41 99.96 100.00	Note 1 Note 1 Note 1 Note 1 Note 1	Note1 Note1 Note1 Note1 Note1	Note 1 Note 1 Note 1 Note 1 Note 1	24,026 (93,363) (46,494) 93,363 46,494	10.78 (41.76) (20.80) 100.00 100.00	Note 2 Note 2

Note 1: The Company's transaction conditions with the related party are mutually negotiated.

Note 2: In respect to transactions between merged entities listed above, these have been eliminated in preparing the consolidated financial statements.

Receivables from related parties with amounts exceeding the lower of NT$100

million or 20% of the capital stock: None.

Trading in derivative instruments: None.
Business relationships and significant intercompany transactions:

Number	Name of transaction party	Name of counter party	Relationship with transaction party	Intercompany transactions	Intercompany transactions	Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 0	The Company The	Young Fast Vietnam Young Fast Vietnam	1 1	Cost of goods sold Accounts	475,177 93,363	Mutually negotiated Mutually	30.74% 1.49%

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

	0	Company The Company	Taiwan SRU Corp.	1	payable Cost of goods sold	135,035	negotiated Mutually negotiated	8.74%

Note 1: The method for filling in the “Number” column is as follows:

Parent company - 0.
Subsidiaries - in sequence from 1.

Note 2: Relationships are classified into three types:

Parent company to subsidiary.
Subsidiary to parent company.
Subsidiary to subsidiary.
Note 3: It is hereby disclosed that the amount of this item is a balance sheet account accounting for more than 1% of consolidated total assets and an income account accounting for more than 1% of the consolidated total revenue.
Note 4: In respect to transactions between merged entities listed above, these have been eliminated in preparing the consolidated financial statements.

(II) Information on investees

Information on the company's reinvestment business for the Group in 2022 is as

follows (excluding investments in Mainland China companies):

Investing company name	Investee company name	Region	Main business items	Initial investment amount (Note 3)	Initial investment amount (Note 3)	Held at the end of theperiod	Held at the end of theperiod	Held at the end of theperiod	Highest shareholding or capital contribution in the interim	Profit and loss of the investee company for the current period (Note 2)	Investment gains and losses recognized in the current period (Note 2)	Note
				End of the currentperiod	End of prior year	Number of shares	Percentage (%)	Carrying amount (Note 2)
The Company " " " Young Fast Belize Young Fast Samoa	Young Fast Belize Young Fast Samoa Taiwan SRU Corp. Epoch Young Fast Hong Kong Young Fast Vietnam	Belize Samoa Taiwan Taiwan Hong Kong Vietnam	Professional investment Professional investment Manufacturing of wire and cable accessories Optical instruments Professional investment Manufacture and sales of touch panels	3,000,130 (USD 100,000 ) 1,946,551 (USD 66,500 ) 30,960 150,626 - 965,402 (USD 32,200 )	3,000,130 (USD 100,000 ) 1,262,218 (USD 43,000 ) 30,960 150,626 3,093,236 (USD 103,080 ) 965,402 (USD 32,200 )	100,000 57,195 3,096 8,080 - -	100.00% 100.00% 51.00% 23.75% - % 100.00%	- 866,518 63,738 327,189 - 791,565	3,000,130 (USD 100,000 ) 1,946,551 (USD 66,500 ) 30,960 150,626 3,093,236 (USD 103,080) 965,402 (USD 32,200 )	4,522 (25,541) 43,621 221,374 4,624 (746)	4,522 (22,959) 18,544 52,576 4,624 3,730	Note 6 Note 1 Note 1 Note 5 Note 1

Note 1: Taking into account unrealized and realized gains and losses on intercompany transactions.

Note 2: The amounts of investment gains and losses recognized by the Company are based on financial statements of the investee company audited by accountants and estimated by the equity method.
Note 3: In respect to transactions between merged entities listed above, these have been eliminated in preparing the consolidated financial statements.

Note 4: Initial investment amount is calculated based on historical exchange rates.

Note 5: The proposal to liquidate Young Fast Hong Kong was approved by the Company’s Board of Directors meeting dated November 13, 2019, and all liquidation proceedings were completed on August 19, 2022.
Note 6: Young Fast Belize was still undergoing the liquidation proceeding on December 31, 2022, and already wired back the liquidation proceeds of 529,540 thousand.

(III) Information on investment in Mainland China:

1. Information on business reinvestment in Mainland China:

==> picture [478 x 68] intentionally omitted <==

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

amount remitted from Taiwan at Accumulated investment remitted or recovered in the current Investment amount period amount remitted Accumulated investment Profit and loss investee of the ratio of direct or Shareholding indirect contribution shareholding or capital Highest recognized in Investment gains and losses investments Book value of Investment repatriated income
Mainland Main Investment the beginning of from Taiwan at company for investment by in the the current at the end of up to the
investee business method the current the end of the the current the Company interim period (Note the period current
company name items Paid-in capital (Note 1) period Outflow Inflow current period period (%) 3) (Note 3) period
Tengyang After sales 4,660 (II) - - - - 431 100.00 4,660 431 2,518 -
Optoelectronics services (labor) (USD 150 ) (USD 150 )
----- End of picture text -----

Note 1: The investment methods are divided into the following three categories, and it is sufficient to indicate the category:

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

(I) Direct investment in mainland China.

(II) Reinvestment in mainland China through a company in a third region. The current investment amount of USD 150 thousand is invested by Young Fast Samoa using its own funds.

(III) Other methods.

Note 2: The amounts of investment gains and losses recognized by the Company and the book values of investments at the end of the period are based on financial statements of the investee company checked by CPAs of the parent company with estimation carried out using by the equity method.

Note 3: In respect to transactions between merged entities listed above, these have been eliminated in preparing the consolidated financial statements.

Note 4: The above listed USD to NTD exchange rates are based on historical exchange rates.

Limits on reinvestment in mainland China:

Unit: NTD thousand Accumulated investment amount remitted from Taiwan to the mainland at the end of the current period (Note 3) Investment amounts authorized by the Investment Commission of the Ministry of Economic Affairs (Note 2) Investment limits for the Mainland Area in accordance with the regulations of the Investment Committee of the Ministry of Economic Affairs (Note 1) - 2,242,106 (USD 73,009 ) 3,354,800	Unit: NTD thousand Accumulated investment amount remitted from Taiwan to the mainland at the end of the current period (Note 3) Investment amounts authorized by the Investment Commission of the Ministry of Economic Affairs (Note 2) Investment limits for the Mainland Area in accordance with the regulations of the Investment Committee of the Ministry of Economic Affairs (Note 1) - 2,242,106 (USD 73,009 ) 3,354,800	Unit: NTD thousand Accumulated investment amount remitted from Taiwan to the mainland at the end of the current period (Note 3) Investment amounts authorized by the Investment Commission of the Ministry of Economic Affairs (Note 2) Investment limits for the Mainland Area in accordance with the regulations of the Investment Committee of the Ministry of Economic Affairs (Note 1) - 2,242,106 (USD 73,009 ) 3,354,800
Accumulated investment amount remitted from Taiwan to the mainland at the end of the current period (Note 3)	Investment amounts authorized by the Investment Commission of the Ministry of Economic Affairs (Note 2)	Investment limits for the Mainland Area in accordance with the regulations of the Investment Committee of the Ministry of Economic Affairs (Note 1)
-	2,242,106 (USD 73,009 )	3,354,800

Note 1: 60% of net value.

Note 2: Accumulated remittance amount from Taiwan at the end of the current period (net

of repatriation) calculated using historical exchange rates. The amount approved by the Investment Committee of the Ministry of Economic Affairs is calculated at the exchange rate of December 31, 2022 (USD:NTD exchange rate = 1:30.71).

Note 3: Does not include cumulative disposals (including sale, liquidation, dissolution,

merger and bankruptcy, etc.) (net of repatriation). The amount of investment that has not been repatriated is NTD 2,044,027 thousand (USD 66,559 thousand).

Significant transactions: None.
(IV) Information on major shareholders:

Unit:Shares Name of major shareholder Number of shares held % of shareholding Sol Young Enterprises Co., Ltd. 30,605,114 20.22% Hold-Key Electric Wire & Cable Co., Ltd. 20,414,832 13.49% Zhangmiao Development Co., Ltd. 9,403,000 6.21%	Unit:Shares Name of major shareholder Number of shares held % of shareholding Sol Young Enterprises Co., Ltd. 30,605,114 20.22% Hold-Key Electric Wire & Cable Co., Ltd. 20,414,832 13.49% Zhangmiao Development Co., Ltd. 9,403,000 6.21%	Unit:Shares Name of major shareholder Number of shares held % of shareholding Sol Young Enterprises Co., Ltd. 30,605,114 20.22% Hold-Key Electric Wire & Cable Co., Ltd. 20,414,832 13.49% Zhangmiao Development Co., Ltd. 9,403,000 6.21%
Name of major shareholder	Number of shares held	% of shareholding
Sol Young Enterprises Co., Ltd. Hold-Key Electric Wire & Cable Co., Ltd. Zhangmiao Development Co., Ltd.	30,605,114 20,414,832 9,403,000	20.22% 13.49% 6.21%

Note: (1) Information on major shareholders in this table is calculated from the

depository company on the last business day at the end of each quarter, and includes shareholders holding more than 5% of ordinary shares and preferred shares of the Company that have completed physical registration and delivery (including treasury shares). As for share capital recorded in the Company's financial statements and the actual number of shares delivered by the Company without physical registration, there may be differences or discrepancies due to different calculation bases.
(2) If the above-mentioned information indicates that shareholders are to

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

hand over shares to a trust, this shall be disclosed by the trustee who has opened an individual sub-account of the trustor of the special trust account. As for the insider shareholding declaration of shareholders holding more than 10% of the shares in accordance with the Securities and Exchange Act, such shareholdings include self-held shares plus the shares that are delivered to the trust and have the right to exercise decision-making power over the trust property, and so on. Please refer to the Market Observation Post System for information on insider shareholding declarations.

(3) Shareholding ratios are unconditionally rounded to two decimal places.

XIV. Segment information

(I) General information

Information is provided to key operating decision makers to make decisions on allocating resources and to measure departmental performances, focusing on each type of product or service delivered or provided. Reporting segments of the Group are divided into the Electromechanical Business Group and the Optoelectronics Business Group. Among them, the Electromechanical Business Group is mainly engaged in the manufacture of power cable accessories such as power generation, transmission and distribution as its main business. The Optoelectronics Business Group is mainly engaged in the research and development, manufacturing, and sales of various types of touch panels.

(II) Profit and loss, segment assets, and reconciliation of reporting segments

The Group’s operating segment information and reconciliation are as follows:

	2022	2022	Total 1,545,646
Optoelect ronics Business Group		Adjustm ents and write- offs -
$ (69,516) 270,498		(360)	200,622
	2021		Total 1,449,291
Optoelect ronics Business Group		Adjustm ents and write- offs -

～ 70 ～

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Reportable segment profit (loss) $ (139,830) 194,281 (360) 54,091

Reporting segment assets (Note): December 31, 2022 December 31, 2021	Optoelect ronics Business Group	Adjustm ents and write- offs (241,781)	Total 6,281,860
	$ 4,328,590 2,083,635	(351,655)	6,060,570

Note: Does not include non-current assets held for sale.

The Group reports that the profit and loss of operating segments and the pre-tax profit and loss of segments with continuing operations are reconciled as follows:

Profit and loss of operating segments to be reported Non-operating income and expenses Profit and loss before tax from segments with continuing operations	2022 $ 200,622 249,314	2021 54,091 210,411
	$ 449,936	264,502

(III) Products and services

The Group's segment information is divided into reporting segments based on different products and services, and revenue from external customers has been disclosed therein. Therefore, there is no additional disclosure of information on products and services.

(IV) Geographical differentiation

The Group's geographical differentiation is as follows, where revenue is classified based on the geographical location of customers and non-current assets are classified based on the geographical location of the assets.

Revenue from external customers:

Regional breakdown Asia Americas Taiwan Total Non-current assets: Regional breakdown Taiwan Vietnam	2022 $ 118,483 27,406 1,399,757	2021 157,725 14,686 1,276,880
	$ 1,545,646	1,449,291
	2022.12.31 $ 678,607 708,811	2021.12.31 649,988 733,656

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Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Total $ 1,387,418 1,383,644

Non-current assets include property, plant and equipment, investment real estate, right-of-use assets, intangible assets, prepaid equipment, and other noncurrent assets, but exclude financial instruments and deferred tax assets.

(V) Key customer information

Revenues from individual customers that account for more than 10% of the Group's total revenues are as follows:

p's total revenues are as follows:
Company A Company B Total Company A	2022
	Sales amount	Contribution %
	$ 306,191 171,177 $ 477,368 2021		19.81 11.07 30.88
	Sales amount	Contribution %
	$ 465,710		32.13

～ 72 ～

AI assistant

YFO — Annual Report 2022

52356_rns_2022-11-10_5166a248-f1a0-4c13-a0db-d4fee1b06ccd.pdf

Young Fast Optoelectronics Co., Ltd. and Subsidiaries

Contents

Statement

Accountants’ Audit Report

Audit Opinion

Basis for audit opinion

Key Audit Matters

Other Matters

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

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Young Fast Optoelectronics Co., Ltd. and Subsidiaries

Consolidated balance sheet

December 31, 2022 and 2021

Unit: NTD Thousand

Young Fast Optoelectronics Co., Ltd. and Subsidiaries Consolidated Statements of Comprehensive Income

January 1 to December 31, 2022 and 2021

Young Fast Optoelectronics Co., Ltd. and Subsidiaries Consolidated Statements of Changes in Equity

January 1 to December 31, 2022 and 2021

Unit: NTD Thousand

Young Fast Optoelectronics Co., Ltd. and Subsidiaries Consolidated Statements of Cash Flows

January 1 to December 31, 2022 and 2021

Unit: NTD Thousand

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

Young Fast Optoelectronics Co., Ltd. and Subsidiaries Notes to the Consolidated Financial Statements

2022 and 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

I. Company history

II. Approval date and procedures of the financial statements

III. New standards, amendments and interpretations adopted

IV. Summary of significant accounting policies

1. Foreign currency transactions

(4) Impairment of financial assets

(5) Derecognition of financial assets

(VIII) Inventories

(IX) Investment related companies

(XII) Leases

V. Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

VI. Explanation of significant accounts

(VII) Inventory

(IX) Investments accounted for using equity method

2. Collateral

(XII) Disposal of subsidiaries

2. Below are the details of the gain on disposal of subsidiaries by the Group ：

(XI) Property, plant and equipment

(XII) Right of use assets

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

(XIII) Investment real estate

(XIV) Intangible assets

(XV) Short-term loans

(XVI) Lease liabilities

(4) Expenses recognized in profit or loss

(6) Actuarial assumptions

(7) Sensitivity analysis

2. Deferred tax assets and liabilities

(1) Unrecognized deferred tax assets

(2) Deferred tax assets and liabilities recognized

Young Fast Optoelectronics Co., Ltd. and Subsidiaries, Notes to Consolidated Financial Statements (Continued)

3. Income tax approval status

(XX) Capital and other equity

1. Issuance of ordinary shares

2. Capital reserve

(2) Earnings distribution

4. Other equity (net of tax)

(XXI) Earnings per share

(XXII) Revenue from contracts with customers

1. Details of revenue

(XXIV) Non-operating revenue and expenses

1. Interest income

2. Other income

3. Other gains and losses

4. Finance costs

(XXV) Financial instruments

1. Credit risk

2. Liquidity risk

(2) Sensitivity analysis

(3) Exchange gains and losses on monetary items

4. Interest rate risk

YFO Annual Report 2022

2. Below are the details of the gain on disposal of subsidiaries by the Group `：`