YHT - Annual Report 2023 | FinancialReports.eu

Stock Code:4562

YING HAN Technology Co., Ltd. and Subsidiaries

Consolidated Financial Statements for Year 2023 and 2022 and Independent Auditors’ Report

Address: No.50, Keji 1st Rd., Annan Dist., Tainan City 709405, Taiwan Telephone: +886-6-384-318

Consolidated Financial Statements Disclaimer

The entities that are required to be included in the consolidated financial statements of YING HAN Technology Co., Ltd. as of and for the year 202 3 (January 1, 2023 - December 31, 2023) under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standard 10, “Consolidated Financial Statements”. In addition, all information required to be disclosed in the consolidated financial statements has been included. Consequently, YING HAN Technology Co., Ltd. and Subsidiaries do not prepare a separate set of consolidated financial statements.

Very truly yours,

Company:YING HAN Technology Co., Ltd. Chairman: HU PING KUN

March 8,2024

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders YING HAN Technology Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of YING HAN Technology Co., Ltd. And Subsidiaries (the "Company"), which comprise the consolidated balance sheets as of December 31, 2023 and 2022, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2023 and 2022 and it’s consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFR IC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2023. These matters were addressed in the context of our audit of the consolidated financial statements, and in forming our opinion thereon, and we do not provide a separate opinion on thes e matters.

Key audit matter for the Company’s consolidated financial statements for the year ended December 31, 2023, is stated as follows:

The revenue authenticity of specific customer

The Company is dedicated in designing, manufacturing, installing and s ales of parts for automatic machinery such as intelligent pipe bender, forming machine, vertical working machine. The Company’s major revenue is from the sales of machinery. The machinery is small in quantity but has higher unit price. The revenue for specific customers has significant impact on the Company’s Operating Revenue which is shown on the customer sales report of machineries for year 2023 and 2022. In consequence, we listed the authenticity of the revenue

of specific customers for the Company as a key audit matter.

Our audit procedures based on the key audit matter found above includes:

Understand and test the internal control systems of operating procedures related to sales cycle and evaluate the effectiveness of the rationale behind the set up and implementation.
Sampling the year sales transaction report of specific customers, review the sales orders, customs declarations, invoices, and shipment or loading certificates with customer’s signature. And tally the payment afterwards or notices to verify the revenue authenticity.

Other Matter

We have also audited the parent company only financial statements of the Company Limited as of and for the years ended December 31, 2023 and 2022 on which we have issued an unmodified opinion.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform
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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 Company’s internal control.
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 Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 202 3 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would

reasonably be expected to outweigh the public interest benefits of such communication.

Deloitte & Touche Taipei, Taiwan Republic of China Auditor WU CHANG JUN

Auditor LIAO HUNG JU

No.Financial-Supervisory-Securities-Auditing1110348898

No.Financial-Supervisory-Securities-Auditing0990031652

08 March 2024

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and pra ctices to audit such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and the consolidated financial statements shall prevail.

YING HAN Technology Co., Ltd. and Subsidiaries CONSOLIDATED BALANCE SHEETS December 31, 2023 & 2022

Code 1100 1150 1170 1180 1200 1220 130X 1410 1479 11XX 1600 1755 1760 1805 1821 1840 1915 1931 1942 1920 1990 15XX 1XXX Code 2100 2110 2130 2150 2170 2180 2219 2220 2230 2250 2280 2320 2399 21XX 2540 2570 2580 2640 2645 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 31XX 36XX 3XXX	Assets CURRENT ASSETS Cash and cash equivalents (Note 4 and 6) Note receivable（Note 4, 7 and 20） Account receivable (Note 4, 7 and 20) Account receivable from related parties（Note 4, 7, 20 and 27） Other receivables（Note 4 and 7） Tax assets (Note 22) Inventories (Note 4 and 8) Prepayments (Note 27) Other current assets Total current assets NONCURRENT ASSETS Property, plant and equipment (note 4,10, 27and 28) Right-of-use assets (Note 4 and 11) Investment properties (Note 4, 12 and 28) Goodwill (Note 4, 13 and 24) Other intangible assets (Note 4 and 14) Deferred income tax assets (Note 4 and 22) Prepayment for equipment Long term Notes receivable (Note 7 and 20) Long term Receivables from related parties（Note 7, 20 and 27） Refundable deposits (Note 4) Other noncurrent assets Total noncurrent assets Total Assets LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 15 and 28) Short-term commercial note (Note 15) Current contracts liabilities (Note 20) Note payable Account payable Account payable from related parties (Note 27) Other payables (Note 16) Other payables from related parties (Note 27) Current tax liabilities (Note 22) Current Provision for Liabilities (Note 4 and 17) Current Lease liabilities (Note 4, 11 and 27) Long-term loans due within one year (Note 15 and 28) Other current liabilities Total current liabilities NONCURRENT LIABILITIES Long-term bank loans (Note 15 and 28) Deferred income tax liabilities (Note 4 and 22) Non-current Lease liability (Note 4, 11 and 27) Non-current Net defined benefit liability (Note 4 and 18) Guarantee deposits (Note 27) Total noncurrent liabilities Total liabilities Equity attributable to owners (Note 19) Common stock Capital reserve Accumulated deficits Legal reserve Special reserve Accumulated deficit Total accumulated deficit Other interests Total of owners' equity Non-controlling interest Total equity Total liabilities and equity		December 31, 2023	December 31, 2023	Unit: Thousands of New Taiwan December 31, 2022 % Amount 12 $ 265,115 4 107,694 7 189,762 1 44,281 - 4,188 - 1,329 34 820,034 1 67,681 - 3,316 59 1,503,400 36 804,531 3 83,640 1 18,694 - 5,333 - 350 1 27,487 - - - 7,773 - 15,917 - 6,026 - 400 41 970,151 100 $ 2,473,551 17 $ 360,000 5 82,058 2 84,567 - - 3 108,863 - 3,458 3 70,730 - 4,752 - 72 - 4,003 - 8,605 4 82,902 - 3,336 34 813,346 15 414,270 - 3,275 3 75,657 1 10,840 1 25,104 20 529,146 54 1,342,492 38 875,460 15 347,593 4 86,606 1 16,373 13) ( 206,732) ( 8) ( 103,753) ( 1 ( 2,601) 46 1,116,699 - 14,360 46 1,131,059 100 $ 2,473,551	Unit: Thousands of New Taiwan December 31, 2022 % Amount 12 $ 265,115 4 107,694 7 189,762 1 44,281 - 4,188 - 1,329 34 820,034 1 67,681 - 3,316 59 1,503,400 36 804,531 3 83,640 1 18,694 - 5,333 - 350 1 27,487 - - - 7,773 - 15,917 - 6,026 - 400 41 970,151 100 $ 2,473,551 17 $ 360,000 5 82,058 2 84,567 - - 3 108,863 - 3,458 3 70,730 - 4,752 - 72 - 4,003 - 8,605 4 82,902 - 3,336 34 813,346 15 414,270 - 3,275 3 75,657 1 10,840 1 25,104 20 529,146 54 1,342,492 38 875,460 15 347,593 4 86,606 1 16,373 13) ( 206,732) ( 8) ( 103,753) ( 1 ( 2,601) 46 1,116,699 - 14,360 46 1,131,059 100 $ 2,473,551	Unit: Thousands of New Taiwan December 31, 2022 % Amount 12 $ 265,115 4 107,694 7 189,762 1 44,281 - 4,188 - 1,329 34 820,034 1 67,681 - 3,316 59 1,503,400 36 804,531 3 83,640 1 18,694 - 5,333 - 350 1 27,487 - - - 7,773 - 15,917 - 6,026 - 400 41 970,151 100 $ 2,473,551 17 $ 360,000 5 82,058 2 84,567 - - 3 108,863 - 3,458 3 70,730 - 4,752 - 72 - 4,003 - 8,605 4 82,902 - 3,336 34 813,346 15 414,270 - 3,275 3 75,657 1 10,840 1 25,104 20 529,146 54 1,342,492 38 875,460 15 347,593 4 86,606 1 16,373 13) ( 206,732) ( 8) ( 103,753) ( 1 ( 2,601) 46 1,116,699 - 14,360 46 1,131,059 100 $ 2,473,551	Unit: Thousands of New Taiwan December 31, 2022 % Amount 12 $ 265,115 4 107,694 7 189,762 1 44,281 - 4,188 - 1,329 34 820,034 1 67,681 - 3,316 59 1,503,400 36 804,531 3 83,640 1 18,694 - 5,333 - 350 1 27,487 - - - 7,773 - 15,917 - 6,026 - 400 41 970,151 100 $ 2,473,551 17 $ 360,000 5 82,058 2 84,567 - - 3 108,863 - 3,458 3 70,730 - 4,752 - 72 - 4,003 - 8,605 4 82,902 - 3,336 34 813,346 15 414,270 - 3,275 3 75,657 1 10,840 1 25,104 20 529,146 54 1,342,492 38 875,460 15 347,593 4 86,606 1 16,373 13) ( 206,732) ( 8) ( 103,753) ( 1 ( 2,601) 46 1,116,699 - 14,360 46 1,131,059 100 $ 2,473,551	Dollars % 11 4 8 2 - - 33 3 - 61 33 3 1 - - 1 - - 1 - - 39 100 15 3 4 - 5 - 3 - - - - 3 - 33 17 - 3 - 1 21 54 35 14 3 1 8) 4) - 45 1 46 100
			Amount $ 276,536 85,391 146,640 13,284 4,865 1,586 774,497 31,754 2,777 1,337,330 822,192 73,303 18,147 5,333 276 20,785 201 252 3,157 3,521 400 947,567 $ 2,284,897 $ 380,000 99,550 52,603 8 75,759 4,761 76,565 - - 2,432 6,712 82,698 2,864 783,952 337,747 2,564 67,594 9,673 25,104 442,682 1,226,634 875,460 347,593 86,606 16,373 287,427) 184,448) 10,254 1,048,859 9,404 1,058,263 $ 2,284,897				Amount $ 265,115 107,694 189,762 44,281 4,188 1,329 820,034 67,681 3,316 1,503,400 804,531 83,640 18,694 5,333 350 27,487 - 7,773 15,917 6,026 400 970,151 $ 2,473,551 $ 360,000 82,058 84,567 - 108,863 3,458 70,730 4,752 72 4,003 8,605 82,902 3,336 813,346 414,270 3,275 75,657 10,840 25,104 529,146 1,342,492 875,460 347,593 86,606 16,373 206,732) 103,753) 2,601) 1,116,699 14,360 1,131,059 $ 2,473,551
		( (		( (		( ( (		( (

The appended notes are parts of this consolidated financial statements.

Chairman:

Chief Accounting Supervisor:

Manager:

YING HAN Technology Co., Ltd. and Subsidiaries Consolidated Statements of Comprehensive Income January 1 – December 31, 2023 & 2022

Unit: Thousands of New Taiwan Dollars *The net loss per share is New Taiwan Dollars

Code 4100 Operating revenues (Note 4, 20 and 27) 5110 Operating costs (Note 8, 21 and 27) 5900 Operating margin Operating expenses (Note 8, 21 and 27) 6100 Sales and marketing expenses 6200 General and administrative expenses 6300 Research expenses 6450 Expected credit impairment losses（Rotation benefits） 6000 Total of operating expenses 6500 Other non-operating income and expenses (Note 21) 6900 Operating Loss ( Non-operating revenue and expenses (Note 4, 21 and 27) 7100 Interest income 7010 Other income 7020 Other gains and losses ( 7050 Finance costs ( 7000 Total of Non-operating revenue and expenses ( 7900 Loss before tax ( 7950 Income tax expense (Benefit) (Note 4 and 22)		Year 2023	Year 2023
		Amount $ 742,197 490,600 251,597 169,724 92,911 46,474 5,830 314,939 678 62,664) 7,946 15,862 22,615 ) 21,332) 20,139) 82,803 ) 3,038

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Code 8200 Net loss Other comprehensive income Items not classified to profit or loss: 8311 Remeasurements of the net defined benefit (Note 18) 8360 Items may be classified to profit or loss: 8361 Exchange Differences on Translation of Foreign Financial Statements 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss. (Note 19) 8300 Other comprehensive income (Net of tax） 8500 Total comprehensive income Net losses belongs to: 8610 Owners 8620 Non-controlling interests 8600 Comprehensive imcome belongs to: 8710 Owners 8720 Non-controlling interests 8700 Net loss per share (Note 23) 9750 Basic 9850 Dilution		Year 2023	Year 2023
		Amount $ 85,841) 147 16,112 3,214) 12,898 13,045 $ 72,796) $ 80,842 ) 4,999) $ 85,841) $ 67,840 ) 4,956) $ 72,796) $ 0.92 ) 0.92 )
	( ( ( ( ( ( ( ( ( ( (

T h e a p p e n d e d n o t e s a r e p a r t s o f t h i s c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s .

C h a i r m a n : M a n a g e r : C h i e f A c c o u n t i n g S u p e r v i s o r :

YING HAN Technology Co., Ltd. and Subsidiaries Consolidated Statements of Changes in Equity January 1 – December 31, 2023 & 2022

Unit: Thousands of New Taiwan Dollars

		Equity attributable to own	Equity attributable to own	ers			Total Equity
Stock Common Stock $ 875,460 - - - - 875,460 - - - $ 875,460	Capital Reserve $ 347,593 - - - - 347,593 - - - $ 347,593		Accumulated loss	Accumulated Deficits ( $ 197,774 ) ( 12,325 ) 3,367 ( 8,958) - ( 206,732 ) ( 80,842 ) 147 ( 80,695) ($ 287,427)	Other Equity Interest Exchange Differences on Translation of Foreign Financial Statements ( $ 11,370 ) - 8,769 8,769 - ( 2,601 ) - 12,855 12,855 $ 10,254
		Legal Reserve $ 86,606 - - - - 86,606 - - - $ 86,606	Special Reserve $ 16,373 - - - - 16,373 - - - $ 16,373
				( ( ( ( ( ( (	( (	( ( ( (	$ 1,123,433 14,064 ) 12,553 1,511) 9,137 1,131,059 85,841 ) 13,045 72,796) $ 1,058,263

The appended notes are parts of this consolidated financial statements.

Manager:

Chairman:

Chief Accounting Supervisor:

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YING HAN Technology Co., Ltd. and Subsidiaries Consolidated Statements of Cash Flows

January 1 – December 31, 2023 & 2022

Unit: Thousands of New Taiwan Dollars

Code Operating Cash Flow A10000 Net loss before tax A20010 Adjustments to reconcile profit (loss): A20100 Depreciation A20200 Amortization A29900 Expected Credit Losses A20900 Finance costs A21100 Profit from lease modification A21200 Interest income from bank deposits A22500 Loss (gain) from disposal of fixed assets A23700 Inventory Valuation and Obsolescence Losses A30000 Changes in operating assets and liabilities A31130 Note receivable A31150 Account receivable A31160 Account receivable from related parties A31180 Other receivable A31190 Other receivable from related parties A31200 Inventory A31230 Prepayments A31240 Other current assets A32130 Note payable A32150 Account payable A32160 Account payable from related parties A32180 Other payable A32190 Other payable from related parties A32200 Liability reserve A32125 Contract liabilities A32230 Other current liabilities A32240 Liability – defined benefit liability A33000 Operating cash inflow A33100 Interest chargeable A33300 Interest payment	Year 2023 ( $ 82,803 ) 47,772 74 5,830 21,332 - ( 7,946 ) ( 678 ) 8,200 30,257 37,427 43,757 ( 792 ) 115 37,465 ( 1,048 ) 539 8 ( 33,104 ) 1,303 5,811 ( 4,752 ) ( 1,571 ) ( 31,964 ) ( 472 ) ( 1,167) 73,593 7,946 ( 21,616 )	Year 2022
		( $ 15,817 ) 50,253 74 8,095 19,858 ( 45 ) ( 4,159 ) 30 507 ( 29,883 ) 46,170 8,049 1,989 ( 115 ) 3,360 ( 47,785 ) 649 ( 1 ) ( 23,905 ) ( 886 ) 4,896 ( 518 ) 1,124 18,149 ( 4,268 ) ( 3,992) 31,829 4,159 ( 19,599 )

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Code
A33500
Rebate of income tax

AAAA
Net cash inflow from operating activities

Cash Flows from Investing Activities

B00050
Financial assets measured at amortized cost are
assets
B02200
Net cash outflow from obtainning subsidiaries

B02700
Purchase of property, plant and equipment

B02800
Price on disposal of property, plant and
equipment
B03700
Increase of refundable deposit

B03800
Decrease of refundable deposit

B07100
Increase of prepayments for equipment

BBBB
Net cash inflow(outflow) from investment
activities
Cash Flows from Financing Activities
C00100
Increase of short-term borrowings

C00200
Decrease of short-term borrowings

C00500
Increase of short-term commercial note

C00600
Decrease of short-term commercial note

C01700
Repayment of long-term loan

C04020
Payments of lease liabilities

C05800
Change in non-controlling interests

CCCC
Net cash outlow from financing activities

DDDD
Effect of exchange rate changes on cash and cash
equivalents

EEEE
Net increase (decrease) in cash and cash equivalents

E00100
Cash and cash equivalents at the beginning of year

E00200
Cash and cash equivalents at the end of year

The appended notes are parts of this consolidated financial statements.

Chairman: Manager: Chief Accounting Supervisor:

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YING HAN Technology Co., Ltd. Notes to the Consolidated Financial Statements January 1 – December 31, 2023 & 2022

(Unit: Thousands of New Taiwan Dollars. Unless otherwise stated.)

(1) Company History

Founded in January 2008, YING HAN Technology Co., Ltd. ( The ‘Company’) is a leading and well organized manufacturer in Taiwan, specialized in designing, manufacturing, installing and sales of parts for automatic machinery such as tube & pipe bender, forming machine.

The Company was approved to issue stocks in August 2015 and was allowed to trade on the Taiwan Stock Exchange (TWSE) in November of the same year. In August 2017, the Company was listed on Taiwan Stock Exchange.

The use of currency in this Consolidated Financial Statements is New Taiwan Dollars.

(2) Date and Procedures of Authorization of Financial Statements for Issuance
The accompanying consolidated financial statements were approved and authorized for issue by the Board of Directors on March 8, 2024.
(3) Newly Issued or Revised Standards and Interpretations
1. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC)(collectively, “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC).
  - The initial application of the amendments to the IFRSs endorsed and issued into effect by the FSC did not have a significant effect on the accounting policies of the Company.

The IFRSs issued by International Accounting Standards Board (IASB) and
endorsed by the FSC with effective date starting 2024
New, Revised or Amended Standards and
Interpretations
Effective Date Issued
byIASB(Note1)
Amendments to IFRS 16 “Leases Liability in a Sale
and Leaseback”
January 1, 2024
(Note 2)
Amendments to IAS 1 “Classification of Liabilities
as Current or Non-current”
January 1, 2024
Amendments to IAS 1 “Non-current Liabilities with
Covenants”
January 1, 2024
Amendments to IAS 7 and IFRS 7 “Supplier
Finance Arrangements”
January 1, 2024
(Note 3)

Note 1: The above new, revised or amended standards and interpretations is applicable to annual reporting periods mentioned above. Unless otherwise stated.
Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.
Note 3: The first time this amendment is applied, some disclosure requirements are exempted.
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The rest of the revised standards and interpretations did not have a significant effect on the financial condition and financial performance of the Company as of the release date of this consolidated financial statements.

The IFRSs issued by IASB but not yet endorsed and issued into effect by the FSC

New, Revised or Amended Standards and Effective Date Issued Interpretations by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or To be determined by Contribution of Assets between an Investor and IASB its Associate or Joint Venture” Amendments to IAS 17 “Insurance Contract” January 1, 2023 Amendments to IAS 17 January 1, 2023 Amendments to IAS 17 “Application of IFRS 17 January 1, 2023 and IFRS 9- Comparison” Amendments to IAS 21 “Lack of Exchangeability” January 1, 2025 (Note 2)

Note 1: The above new, revised or amended standards and interpretations is applicable to annual reporting periods mentioned above. Unless otherwise stated.
Note 2: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments, the entity recognizes any effect as an adjustment to the opening balance of retained earnings. When the Group uses a presentation currency other than its functional currency, it shall, at the date of initial application, recognize any effect as an adjustment to the cumulative amount of translation differences in equity.

As of the release date of this consolidated financial statements, the Company continues to evaluate the impact on its financial condition and financial performance from the initial adoption of the standards or interpretations and related applicable period. The related impact will be disclosed when the Company completes its evaluation.

(4) Summary Explanation of Significant Accounting Policies
Statement of Compliance

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed by the FSC with the effective dates (collectively, “Taiwan-IFRSs”).

Basis of Preparation

The accompanying consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for the assets.

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Financial assets can be categorized into 3 levels based on the degree of observability and importance of the input value:

1) Level 1:Refers to quoted prices (unadjusted) in active markets for identical assets or liabilities that are available at the measurement date.
2) Level 2:Refers to observable inputs other than quoted prices at level 1, either directly (that is, prices) or indirectly (that is, derived from prices) for the asset or liability.
3) Level 3:An unobservable assets or liabilities.
Classification of Current and Noncurrent Assets and Liabilities

Current assets are:

1) Assets held for trading purposes;
2) Assets expected to be converted to cash, sold or consumed within one year from the end of the reporting period;
3) Cash and cash equivalents (but excluding those that subject to restrictions on exchange or settlement of liabilities more than 12 months after the balance sheet date)

Current liabilities are:

1) Liabilities incurred for trading purposes;
2) Liabilities expected to be settled within one year from the end of the reporting period;
3) Liabilities for which settlement cannot be unconditionally deferred for at least 12 months after the balance sheet date.

Assets and liabilities that are not classified as current are noncurrent assets and liabilities, respectively.

4. Basis of Consolidation

The consolidated financial statements incorporate the financial statements of the Company its subsidiaries. Income and expenses of subsidiaries acquired or disposed of are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

For details of subsidiaries, shareholding ratios and business items, please refer to Note 9 and Schedules 3 and 4.

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Foreign Currencies In the preparation of the financial statements of each individual consolidated entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Such exchange differences are recognized in profit or loss in the year in which they arise. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the year except for exchange differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured in terms of historical cost in foreign currencies are not retranslated.

For the purposes of presenting consolidated financial statements, the assets and liabilities of the Company’s foreign operations are translated into NT$ using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity.

Inventories

Inventories include raw materials, work in progress and finished goods, etc. Inventories are stated at the lower of cost or net realizable value. The comparison of cost to net realizable value is done on an individual basis. Net realizable value represents the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are adjusted to approximate weighted-average cost at the end of the reporting period.

Property, Plant and Equipment

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment.

Property, plant and equipment in the course of construction for production, supply or administrative purposes are carried at cost, less any recognized impairment loss. Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other identical categories of property, plant and equipment, commences when the assets are available for their intended use.

Except for freehold land which is not depreciated, depreciation is recognized so as to write off the cost of the assets less their residual values over their useful lives, and it is computed using the straight-line method. The estimated useful

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lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

8. Investment properties

Investment properties is real estate held to earn rentals or for capital appreciation or both. Investment properties also includes land that has not yet been determined for future use.

Owned investment properties is initially measured at cost (including transaction costs), and subsequently measured at the cost minus accumulated depreciation and accumulated impairment losses.

9. Goodwill

Goodwill arising from the acquisition of a business is carried at cost as established at the date of the acquisition of the business less accumulated impairment loss.

For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually or more frequently whenever there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit or groups of cash-generating units is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

If goodwill has been allocated to a cash-generating unit and the Group disposes of an operation within that unit, the goodwill associated with the operation that is disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal and is measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained.

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10. Intangible Assets

(1) Acquired Separately
- Other separately acquired intangible assets with finite useful lives are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized using the straight-line method. The company shall review the estimated useful life, residual value and amortization method at least at the end of each year, and postpone the impact of changes in applicable accounting estimates.
(2) Derecognition
- When an intangible asset is derecognized, the difference between the net disposal price and the value of the asset is recognized in profit or loss for the year.
Impairment of Property, Plant, Equipment, Right-of-use assets, Investment properties and Intangible Assets

At each balance sheet date, the Company reviews the carrying amounts of property, plant, equipment, right-of-use assets, investment properties and intangible assets and other intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

For intangible assets with undetermined useful lives and not available for use, impairment tests are conducted at least annually and when there is evidence of impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset or a cash-generating unit is increased to the revised estimate of its recoverable amount, but the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

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Financial Instruments

Financial assets and financial liabilities are recognized in the consolidated balance sheet when the Company becomes a party to the contractual terms of the instrument.

If the financial assets and financial liabilities are not recognized by fair values of financial instruments initially, they are measured at fair value plus transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities. Transaction costs directly attributable to the acquisition or issue of a financial asset or financial liability at fair value through profit or loss are recognized immediately in profit or loss and included in the originally recognized amounts of the financial asset and financial liability.

(1) Financial Assets
Customary transactions of financial assets are recognized and derecognized by transaction date.
1) Type of measurement
- The types of financial assets held by the consolidated company are financial assets measured at amortized cost.

Financial assets measured at amortized cost.

Financial assets invested by the consolidated company should be categorized as financial assets measured at amortized cost if both of the below conditions are met:

A. Held under an operating model whose purpose is to hold financial assets for the purpose of receiving contractual cash flows; and
B. The interest is based on the cash flow on the date agreed in the contract, the principal paid to complete the relevant cash flow, and the principal amount circulated overseas.

Financial assets measured at amortized cost (including cash and cash equivalents, notes receivable and accounts (including related parties) measured at amortized cost, other receivables and deposits) after original recognition is measured at the amortized cost of the gross carrying amount determined by the effective interest method less any impairment losses, and any foreign exchange gains or losses are recognized in profit or loss.

Interest income from bank deposits is calculated by multiplying the effective interest rate and the total amount if the financial asset except for the below 2 situations:

A. Purchased or initial impairment financial assets is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial asset.
B. Non-purchased or initial impairment financial assets becomes
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impairment financial assets shall be calculated by multiplying the effective interest rate by the amortized cost of the financial asset from the reporting period following the credit-impairment.

Impairment financial assets means the issuer or debtor had encountered significant financial difficulties, defaulted or the debtor is likely having a bankruptcy or other financial difficulties that will make the active market disappear.

Cash equivalents included deposit and repurchase bonds with high liquidity that is convertible into cash within 3-month and has lower risk of value change. It’s to satisfy the short-term cash commitments.

2) Impairment financial assets

The consolidated company evaluates the impairment loss of financial assets (including notes receivable and accounts) measured at amortized cost based on expected credit losses on each balance sheet date.

Notes and accounts receivable are recognized as allowance losses based on expected credit losses during the duration. For other financial assets, first assess whether the credit risk has increased significantly since the original recognition. If there is no significant increase, the loss will be recognized as the 12-month expected credit loss. If there has been a significant increase, it will be recognized as the expected credit loss during the duration Allow for losses.

Expected credit loss is calculated average credit losses weighted by the risk of default. The 12-month expected credit loss represents the expected credit loss arising from possible default events of the financial instrument within 12 months after the reporting date, and the expected credit loss during the duration represents the expected credit loss arising from all possible default events of the financial instrument during the duration.

For the purpose of internal risk control, the consolidated company will regard the below situation as defaulted in financial assets without considering the collateral held:

A. The internal or external indication showing the debtor is unlikely to pay back the debt.
B. Overdue exceeds the days of credit terms without reasonable and supportable information that shows a delayed payment is more appropriate.

Impairment losses on all financial assets are achieved by reducing their carrying amounts through the use of an allowance account.

3) Derecognition of financial assets
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A consolidated company derecognized a financial asset only when the contractual rights to the cash flows from the financial asset have lapsed, or when the financial asset has been transferred and substantially all the risks and rewards of ownership of the asset have been transferred to another entity.

When a financial asset is measured at amortized cost as a whole, the difference between its carrying amount and the consideration received is recognized in profit or loss. When an investment in a debt instrument at fair value through other comprehensive profit or loss is derecognized as a whole, the difference between its carrying amount and the sum of the consideration received plus any cumulative gain or loss that has been recognized in other comprehensive profit or loss is recognized in profit or loss. When an equity instrument investment measured at fair value through other comprehensive income is derecognized as a whole, the accumulated gain or loss is transferred directly to retained earnings and is not reclassified as profit or loss.

(2) Financial Liabilities

1) Measurement

All financial liabilities are measured at amortized cost using the effective interest method.

2) Derecognition of financial liabilities

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

Preparation for financial liabilities

The amount recognized as a liability reserve is the best estimate of the expenditure required to settle the obligation on the balance sheet date, considering the risks and uncertainties of the obligation. The liability provision is measured at the discounted value of the estimated cash flows of the settlement obligation.

Warranty

The warranty obligation to ensure that the product is compatible to the agreed specifications is recognized when the relevant product is recognized as revenue based on the management's best estimate of the expenditure required to settle the obligations of the consolidated company.

Revenue Recognition

The Company recognizes revenue when performance obligations are satisfied. The performance obligations are satisfied when customers obtain control of the promised goods.

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Revenue from sale of goods

Revenue from sale of goods is recognized when the Company automatic machinery such as intelligent pipe bender, forming machine, vertical working machine are delivered to designated place or the installation certificate is obtained. The customer has the right to set the price and is responsible for the resales of it. In the meanwhile, customer should bear the risk of obsolete goods. The company recognized the revenue from sale of goods at that point of time. Advance payment is recognized as contract liabilities before shipment or installation certificates are obtained.

15. Leases

The consolidated company assesses whether the contract is (or contains) a lease on the contract inception date.

The Company as lessor
When the term of the lease is transferred to the lessee substantially all the risks and rewards of ownership of the asset, it’s categorized as finance lease. All the other leases are categorized as operating leases.

Under operating leases, lease payments after deducting lease incentives are recognized as income on a straight-line basis over the relevant lease period. The original direct cost incurred in obtaining the operating lease is added to the book amount of the underlying asset and recognized as an expense on a straight-line basis over the lease term.

The Company as lessee Except for payments for low-value asset leases and short-term leases (leases of machinery and equipment and others) which are recognized as expenses on a straight-line basis, the Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of the lease.

Right-of-use assets are measured at cost. The cost of right-of-use assets comprises the initial measurement of lease liabilities adjusted for lease payments and initial direct costs made at or before the commencement date, plus an estimate of costs needed to restore the underlying assets. Subsequent measurement is calculated as cost less accumulated depreciation and accumulated impairment loss and adjusted for changes in lease liabilities as a result of lease term modifications or other related factors. Right-of-use assets are presented separately in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms. If the lease transfers ownership of the underlying assets to the Company by the end of the lease terms or if the cost of right-of-use assets reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use

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assets from the commencement dates to the end of the useful lives of the underlying assets.

Lease liabilities are measured at the present value of the lease payments. Lease payments comprise fixed payments, variable lease payments which depend on an index or a rate and the exercise price of a purchase option if the Company is reasonably certain to exercise that option. The lease payments are discounted using the lessee’s incremental borrowing rates. Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in future lease payments resulting from a change in an index or a rate used to determine those payments, or a change in the assessment of an option to purchase an underlying asset, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. Lease liabilities are presented on a separate line in the consolidated balance sheets.

The company has negotiated with the leaser on the rental with regards to Covid-19 situation. The rental before June 30, 2021, has been adjust and reduced. The negotiation has no significant impact on the other part of the contract. The company chooses to adopt a practical expedient approach to deal with the rent negotiation of the factory building and office lease contract that meets the conditions. It does not evaluate whether the negotiation is a lease modification but recognizes the reduction of the lease payment in profit or loss when the concession event or situation occurs (other income and expense), and correspondingly reduce the lease liability.

16. Borrowing Costs

Borrowing costs is the cost to directly obtain, construct or produce the destinated assets. It’s considered part of the cost of the assets until the use or sale of the item has been performed.

Investment income earned on the temporary investment of specific borrowings prior to the occurrence of eligible capital expenditures is deducted from the borrowing costs eligible for capitalization.

Except for the above, all other borrowing costs are recognized as profit or loss in the year in which they are incurred.

17. Government Grants

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

Government grants related to revenue are recognized in other income on a systematic basis over the period in which they are intended to compensate for the associated costs that are recognized as an expense by the combined company.

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Government grants that are receivables as compensation for expenses already incurred are deducted from incurred expenses in the period in which they become receivables.

18. Employee Benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for service rendered by employees.

2) Retirement benefits

For defined contribution retirement benefit plans, payments to the benefit plan are recognized as an expense when the employees have rendered service entitling them to the contribution. For defined benefit retirement benefit plans, the cost of providing benefit is recognized based on actuarial calculations.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the Projected Unit Credit Method. Service cost (including current service cost), and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability represents the actual deficit in the Company’s defined benefit plan.

19. Share-based payment arrangements

Employee Stock Options

Employee stock options are recognized as expenses on a straight-line basis during the vesting period based on the fair value of the equity instrument on the grant date and the best estimated quantity expected to be acquired, and the capital reserve - employee stock options is adjusted at the same time. If it is immediately vested on the grant date, it shall be fully recognized as an expense on the grant date.

At the end of each reporting period, the Company revises its estimate of the number of restricted shares for employees that are expected to vest. The impact from such revision is recognized in profit or loss so that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capital surplus - restricted shares for employees.

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20. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax
Income tax on unappropriated earnings (excluding earnings from foreign consolidated subsidiaries) is expensed in the year the shareholders approved the appropriation of earnings which is the year subsequent to the year the earnings are generated.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, net operating loss carryforwards and tax credits for research and development expenses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered. The deferred tax assets which originally not recognized is also reviewed at the end of each reporting period and recognized to the extent that it is probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the year in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company

25 -

expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.

(5) Critical accounting judgements and key sources of estimation and uncertainty

In the application of the Company’s accounting policies, the Company is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The management of the Group evaluated that there were no critical accounting judgments or estimation uncertainty on the accounting policies, estimates and basic assumptions that were adopted by the Group.

(6) Cash and cash equivalents

Cash on hand Cheque and Deposit Cash equivalents (investment with initial due date within 3 month) Fixed deposit Repurchase agreements collateralized by bonds	December 31, 2023 $ 1,921 130,645 143,970 - $ 276,536	December 31, 2022	December 31, 2022
			$ 2,187 164,566 82,917 15,445 $ 265,115

The interest rate range of cash equivalent on the balance sheet date is as follows:

Fixed deposit Repurchase agreements collateralized by bonds	December 31, 2023 1.40%`～`5.40% -	December 31, 2022
		3.20%`～`3.75% 4%

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(7) Note receivable, account receivable (including related parties), other receivable (including related parties), long-term notes receivable and long-term receivable - related parties

related parties
Note receivable Arising from operating activities Less: Allowance to reduce Account receivable (including related parties) Carried at amortized cost Total carrying amount Less: Allowance to reduce Less: Unrealized Interest Income Other receivable (including related parties) Long-term note receivable Long-term receivable - related parties Total carrying amount Less: Unrealized Interest Income	December 31, 2023 $ 85,989 598 $ 85,391 $ 179,140 19,216 - $ 159,924 $ 4,865 $ 252 $ 3,227 70 $ 3,157	December 31, 2022
			$ 108,725 1,031 $ 107,694 $ 247,921 13,521 357 $ 234,043 $ 4,188 $ 7,773 $ 16,267 350 $ 15,917

Note and account receivable measured at amortized cost

The consolidated company set the credit term based on the financial condition, market region, and trading experience of each client. To management the risk, the consolidated company has assigned a dedicated team to be responsible for the determination and examination of credit term of each client and to ensure all the note receivable have been managed properly. Additionally, on the balance sheet date, the consolidated company will review the recoverable number of receivables one by one to ensure that unrecoverable receivables have been set aside for appropriate derogation losses. Hence the management of the consolidated company believes that the credit risk of consolidated company has been eased significantly.

The consolidated company recognizes the allowance loss of account receivable according to the expected credit loss during the existence period. The expected credit loss during the duration is calculated using the provision matrix, which considers the customer’s past default record and current financial situation. As the Group’s historical credit loss experience does show significantly different loss patterns for different sales segments, the Group uses different provision matrixes based on sales segments by geographical region, and determines the expected credit loss rate by reference to past due days of accounts receivable.

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If there is evidence that shows the counterparty is facing severe financial difficulties and the consolidated company cannot reasonably expect the recoverable amount, for example, the counterparty is undergoing liquidation, the consolidated company will directly write off the relevant accounts receivable, but it will continue with the activities. The amount is recognized in profit or loss.

The consolidated company measures the allowance loss of account receivable based on the reserve matrix as follows:

Note receivable as of December 31, 2023

Note receivable as of December 31, 2023	Note receivable as of December 31, 2023	Note receivable as of December 31, 2023
Not Overdue Overdue 0~180 days Overdue 181 ~ 270 days Overdue 271 ~ 450 days Overdue 451 days and above Expected credit losses ratio 0% 100% 100% 100% 100% Total carrying amount $ 85,391 $ 33 $ 33 $ 40 $ 492 Allowance to reduce (Expected credit losses during the duration) - ( 33 ) ( 33 ) ( 40 ) ( 492 ) Amortized cost $ 85,391 $ - $ - $ - $ - Account receivable as of December 31, 2023 0~120 days 121~210 days 211~300 days 301~485 days 485 days and above Individual recognition Expected credit losses ratio 1%`～`18% 15%`～`31% 17%`～`68% 18%`～`100% 100% Total carrying amount $ 26,572 $ 930 $ 66 $ 134 $ 6,768 $ 144,670 Allowance to reduce (Expected credit losses during the duration) ( 427 ) ( 272 ) ( 45 ) ( 134 ) ( 6,768 ) ( 11,570 ) Amortized cost $ 26,145 $ 658 $ 21 $ - $ - $ 133,100			Total
			$ 85,989 ( 598 ) $ 85,391 Total $ 179,140 ( 19,216 ) $ 159,924
Expected credit losses ratio Total carrying amount Allowance to reduce (Expected credit losses during the duration) Amortized cost	0~120 days 1%`～`18% $ 26,572 ( 427 ) $ 26,145	121~210 days 15%`～`31% $ 930 ( 272 ) $ 658
				$ 179,140 ( 19,216 ) $ 159,924

Note receivable as of December 31, 2022

Expected credit losses ratio Total carrying amount Allowance to reduce (Expected credit losses during the duration) Amortized cost		Note Overdue 0% $ 107,694 - $ 107,694	Overdue 0~180 days 100% $ 499 ( 499 ) $ -		Overdue 181 ~ 270 days 100% $ - - $ -		Overdue 271 ~ 450 days 100% $ - - $ -	Overdue 451 days and above 100% $ 532 ( 532 ) $ -	Total
									$ 108,725 ( 1,031 ) $ 107,694

Account receivable as of December 31, 2022

Expected credit losses ratio Total carrying amount Allowance to reduce (Expected credit losses during the duration) Amortized cost	0~120 days 0%`～`1% $ 54,502 ( 142 ) $ 54,360	121~210 days 5%`～`36% $ 475 ( 50 ) $ 425	211~300 days 25%`～`61% $ 223 ( 104 ) $ 119	301~485 days 50%`～`88% $ 1,492 ( 1,292 ) $ 200	485 days and above	Individual recognition $ 184,114 ( 5,175 ) $ 178,939	Total
					100% $ 6,758 ( 6,758 ) $ -		$ 247,564 ( 13,521 ) $ 234,043

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Changes in the provision for losses on receivables are as follows: Year 2023

Year 2023
Balance at the start of year Add: Impairment loss provision for the year Foreign currency exchange difference Balance at the end of year	Note receivable $ 1,031 ( 110 ) ( 323) $ 598		Account receivable $ 13,521 5,940 245) $ 19,216		Total
		(		(	$ 14,552 5,830 568) $ 19,814

Year 2022

Year 2022
Balance at the start of the year Add: Provision (reversal) impairment losses for the year Foreign currency exchange difference Balance at the end of year	Note receivable $ 753 442 ( 164) $ 1,031		Account receivable $ 5,833 7,653 35 $ 13,521		Total
				(	$ 6,586 8,095 129) $ 14,552

Other receivable have not been provisioned for bad debts because past experience shows that the probability of recovery is extremely high.

(8) Inventories

Inventories
Finished product WIP- Work in process Raw material	December 31, 2023 $ 72,823 529,335 172,339 $ 774,497	December 31, 2022
			$ 94,712 545,777 179,545 $ 820,034

The cost of goods sold related to inventories in 2023 and 2022 was NT $490,600 thousands and NT $526,333 thousands respectively, and the cost of goods sold, including the inventory price loss, was NT $8,200 thousands and NT $507 thousands , respectively.

(9) Subsidiaries

Subsidiaries included in the consolidated financial report

The entities preparing this consolidated financial report are as follows:

Name of Investment Company YING HAN Technology Co., Ltd.	Name of Subsidiaries YING HAN TECHNOLOGY Sp. Zo.o. (Poland) YING HANG TEKNOLOJI LTD. STI (Turkey) YING HAN TECHNOLOGY Limited (Russia) HANNSA PRECISION SDN. BHD. (Malaysia) YLM INDUSTRIAL CO., LTD. (Thailand) YING HAN Technology Co., Ltd. (Vietnam) YING HAN Technology Co., Ltd. (Tianjin) YING HAN Technology Co., Ltd. (Shanghai)	Nature of Business Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts	Stock Ratio (％) Year 2023 31 December Year 2022 31 December 100 100 100 100 100 100 100 100 46 46 100 100 100 100 100 100	Remarks
			Year 2023 31 December 100 100 100 100 46 100 100 100

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(Continued)

ed)
Name of Investment Company	Name of Subsidiaries YLM TUBE SOLUTIONS AND SERVICE P. LTD.(India) PT. YING LIN MACHINE AND SERVICE(Indonesia) Rdata System Co., Ltd(Original funding Company) YING HAN TECHNOLOGY (USA), INC.(USA)	Nature of Business Trading of machinery equipment and parts Trading of machinery equipment and parts UAV- Unmanned Aerial Vehicle system testing and sales Trading of machinery equipment and parts	Stock Ratio (％)		Remarks Note 1 Note 2
			Year 2023 31 December 99.99 99 55 100	Year 2022 31 December
				99.99 99 55 100

Note 1: NT $8,250 thousands was agreed by the board of directors of the company on April 1, 2022, with a 55% shareholding of the non-affiliated company. The transfer of the joint venture to the joint venture was approved for the difference of NT $5,333 thousands, please refer to notes 13 and 24. In September 2022, the company increased $8,250 thousands of the shareholding of the orginal company.
Note 2: USD$1,500 thousands was agreed by the board of directors of the company on March 1, 2022 set YING HAN TECHNOLOGY (USA), INC. And increased the investment amount of USD$200 thousands on May 19, 2023.
Note 3: The company increased the investment amount of USD$177 thousands in YING HAN TECHNOLOGY Sp. Z.o.o. (Poland) on Nov. 2023.

(10) Property, plant and equipment

	Land	Building	Machinery Vehicles Equipment	Machinery Vehicles Equipment	Machinery Vehicles Equipment	Machinery Vehicles Equipment	Machinery Vehicles Equipment	Lease	Other Equipment Property in built Total	Other Equipment Property in built Total	Other Equipment Property in built Total	Other Equipment Property in built Total	Other Equipment Property in built Total
Cost
Balance as of January
1, 2023	$ 499,064	$ 364,377	$ 87,822 $ 24,966 $ 75,189					$ 8,907	$ 65,212 $ 590 $ 1,126,127
Addition	862	12,882	3,098	3,564		331		-	1,940	-		22,677
Loss	-	-	- ( 270 ) ( 56 )					-	- - ( 326 )
Re-classified	4,225	32,986	-		-		164	-	- ( 599 )				36,776
Net foreign exchange difference (	27) (	2,831) (	181) (		1,232) (		63) (	67) (	78)		9 (
													4,470)
Balance as of December 31, 2023	$ 504,124	$ 407,414	$ 90,739		$ 27,028		$ 75,565	$ 8,840	$ 67,074		$ -
													$ 1,180,784

Accumulated depreciation and reduction

Balance as of January 1, 2023	$ -	$ 139,943	$ 77,087		$ 22,870		$ 15,768	$ 8,869	$ 57,059		$ -
													$ 321,596
Fee of depreciation	-	22,801	4,953		1,390		4,459	24	4,601		-		38,228
Loss	-	-	- ( 270 ) ( 56 )					-	-		- ( 326 )
Net foreign exchange difference	- (	199) (	106) (		415) (		56) (	69) (	61)		- (
													906)
Balance as of December 31, 2023	$ -	$ 162,545	$ 81,934		$ 23,575		$ 20,115	$ 8,824	$ 61,599		$ -
													$ 358,592

Net as of December 31, 2023	$ 504,124	$ 244,869	$ 8,805		$ 3,453		$ 55,450	$ 16	$ 5,475		$ -
													$ 822,192

Cost
Balance as of January 1, 2022	$ 499,064	$ 354,220	$ 87,286		$ 24,859		$ 73,821	$ 8,844	$ 63,650		$ 2,772
													$ 1,114,516
Occurred by merging	-	-	520		-		-	-	-		-		520
Addition	-	5,253	50		-		1,547	-	1,498		3,092		11,440
Loss	-	- ( 189 )			- ( 202 )			-	-		- ( 391 )
Re-classified	-	3,806	-		-		-	-	1 ( 3,807 )				-
Net foreign exchange difference	-	1,098	155		107		23	63	63 (		1,467)
													42
Balance as of December 31, 2022	$ 499,064	$ 364,377	$ 87,822		$ 24,966		$ 75,189	$ 8,907	$ 65,212		$ 590
													$ 1,126,127

Accumulated depreciation and reduction

Balance as of January 1, 2022	$ -	$ 118,273	$ 69,827		$ 21,619		$ 11,206	$ 8,717	$ 52,007		$ -
													$ 281,649
Occurred by merging	-	-	325		-		-	-	-		-		325
Fee of depreciation	-	21,643	7,046		1,169		4,710	91	5,015		-		39,674
Loss	-	- ( 179 )			- ( 182 )			-	-		- ( 361 )
Net foreign exchange difference	-	27	68		82		34	61	37		-
													309
Balance as of December 31, 2022	$ -	$ 139,943	$ 77,087		$ 22,870		$ 15,768	$ 8,869	$ 57,059		$ -
													$ 321,596

1 Net as of December 31, 2022	$ 499,064	$ 224,434	$ 10,735		$ 2,096		$ 59,421	$ 38	$ 8,153		$ 590
													$ 804,531

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Part of the warehouses and extended shelters of the consolidated company's factory buildings have been listed as impairment losses of NT $3,638 thousands in 2015.

Depreciation expense is provided on a straight-line basis over the following useful years:

Building
Main warehouse	20~50 years
Renovation	10~15 years
Machinery	3~8 years
Vehicles	2~8 years
Equipment	3~15 years
Lease	5~10 years
Other equipment	2~10 years

Please refer to Note 28 for the amount of property, plant and equipment pledged by the consolidated company as a loan guarantee.

(11)	Lease 1. Right to use Carrying amount Building Vehicles Addition Depreciation Building Vehicles 2. Lease liabilities Carrying amount Current Non-current	December 31, 2023 $ 71,216 2,087 $ 73,303 Year 2023 $ - $ 7,432 1,565 $ 8,997 December 31, 2023 $ 6,712 $ 67,594	December 31, 2022	December 31, 2022
				$ 79,988 3,652 $ 83,640 Year 2022
			$ 11,136 $ 8,989 1,043 $ 10,032 December 31, 2022
				$ 8,605 $ 75,657

The discount rate range for the lease liability is as follows:

Building and vehicles	December 31, 2023 1.30% ~ 1.41%	December 31, 2022
		1.41%

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Important lease activities and terms
If the consolidated company leases official vehicles, the term is for a period of 3 years. These rental agreements do not have terms of renewal or right of purchase.

The consolidated company also leases buildings as warehouse, and the lease period is 3 to 19 years. When the lease period ends, the consolidated company has no preferential right to purchase the leased building, and it is agreed that the consolidated company shall not sublease or transfer all or part of the leased object without the consent of the lessor.

Other lease information

Other lease information
Short-term Lease Total cash outflow from leases (Continue on the next page)		Year 2023 $ 6,927 $ 16,643		Year 2022
				$ 4,071 $ 14,854

The consolidated company chooses to apply the recognition exemption to the factory buildings and official vehicles that qualify for short-term leases, and does not recognize the relevant right-of-use assets and lease liabilities for these leases.

(12) Investment Property

Investment Property
Cost Balance as of January 1, 2023, and December 31, 2023. Accumulated Depreciation Balance as of January 1, 2023 Depreciation Balance as of December 31, 2023 Net as of December 31, 2023 Cost Balance as of January 1, 2022, and December 31, 2022 Accumulated Depreciation Balance as of January 1, 2022 Depreciation Balance as of December 31, 2022 Net as of December 31, 2022		Building
		$ 22,251 $ 3,557 547 $ 4,104 $ 18,147 Building
		$ 22,251 $ 3,010 547 $ 3,557 $ 18,694

The lease for investment property is 5 years. The lessee does not have the preferential purchase right of investment real estate at the end of the lease period.

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The total lease payments to be received in the future for leasing investment property under operating leases are as follows:

1stYear 2ndYear	December 31, 2023 $ 450 - $ 450	December 31, 2022	December 31, 2022
			$ 1,800 1,800 $ 3,600

Investment properties are depreciated on a straight-line basis over a useful life of 41 years.

The fair value of the investment real estate on December 31, 2021 was approximately NT $46,101 thousands respectively. There is no significant change in fair value on December 31, 2023 and 2022 compared with December 31, 2021. The fair value was evaluated by the management of the consolidated company with reference to the transactions in the neighboring housing market.

Please refer to Note 28 for the amount of investment real estate set as loan guarantee.

(13) Goodwill

Goodwill
COST Balance as of the start of year Acquired due to merging Balance as of the end of year	December 31, 2023 $ 5,333 - $ 5,333		December 31, 2022
		$		$

The consolidated company acquired the original company in April, 2022 and recognized the goodwill of NT$5,333 thousands for the difference between the transfer consideration and the fair value. Please refer to Notes 09 and 24.

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(14) Other intangible assets

		Patent		Software		Total
Cost
Balance as of January 1, 2023, and	$	2,610	$	6,815	$	9,425
December 31, 2023
Accumulated depreciation
Balance as of January 1, 2023	$	2,307	$	6,768	$	9,075
Depreciation		45		29		74
Balance as of December 31, 2023	$	2,352	$	6,797	$	9,149
Net as of December 31, 2023	$	258	$	18	$	276
Cost
Balance as of January 1 and December	$	2,610	$	6,815	$	9,425
31, 2022
Accumulated depreciation
Balance as of January 1, 2022	$	2,262	$	6,739	$	9,001
Depreciation		45		29		74
Balance as of December 31, 2022	$	2,307	$	6,768	$	9,075
Net as of December 31, 2022	$	303	$	47	$	350

Amortization charges are calculated on a straight-line basis based on the number of useful years listed below:

Patent 5~14 years Software 3 years

Other intangible assets of the consolidated company are not mortgaged.

(15) Borrowings

(1) Short-term borrowings

Short-term borrowings
Unsecured Loan Bank credit loan Annual interest rate on unsecured loan	December 31, 2023 $ 380,000 2.1076%`～`2.265%	December 31, 2022
		$ 360,000 1.7982%`～`2.1038%

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(2) Short-term commercial note

Commercial note IBFC MEGA BILLS Less: Discount The refinancing rate Long-term borrowings Secured Loan Borrowings（Note1） Unsecured Loan Bank credit loan（Note2） Total Less: Due in one year	December31,2023 $ 49,900 50,000 99,900 350 $ 99,550 2.278%`～`2.678% December 31, 2023 $ 385,757 34,688 420,445 82,698 $ 337,747	December31,2022	December31,2022
		$ 32,100 50,000 82,100 42 $ 82,058 2.038%`～`2.408% December 31, 2022
			$ 458,114 39,058 497,172 82,902 $ 414,270

(3) Long-term borrowings

Note 1:As of December 31, 2023 and 2022, the annual effective interest rate of bank borrowings secured by the the company’s freehold land and building (refer to Note 28) was 1.97%-4.3% and 1.85% - 4.3% per annum, respectively. And the aforementioned long-tern borrowings will mature from Novermber 2025 to March 2032, with interest calculated and principal repaid on schedule.

Note 2:The bank credit loan will mature sequentially before October 2028, with interest calculated and principal repaid on schedule. As of December 31, 2023 and 2022, the annual effective interest rate was 2.1%-2.97% and 1.67%-2.84% per annum, respectively.

(16) Other payable

Salaries Leave payment Commission payable Labor health insurance Pension Professional service fees Others	December 31, 2023 $ 32,192 6,190 4,218 3,144 2,247 1,925 26,649 $ 76,565	December 31, 2022	December 31, 2022
			$ 31,824 5,989 7,069 3,054 2,255 1,925 18,614 $ 70,730

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(17) Liability provision- Current

Warranty liability reserve	December31,2023 $ 2,432	December31,2022	December31,2022
			$ 4,003

Warranty liability reserve is the current value of the best estimate of future economic benefit outflows caused by warranty obligations by the management of the consolidated company in accordance with the sales contract. This estimate is based on historical warranty experience.

(18) Retirement Benefit

Defined contribution plans

The consolidated Company have made monthly contributions of 6% of each employee’s monthly salary to employees’ pension accounts based on the R.O.C. Labor Pension Act (“the Act”).

The employees of the consolidated company's local subsidiary in China are members of the retirement benefit plan operated by the local Chinese government. The subsidiary is required to contribute a specified percentage of payroll costs to the retirement benefit plan. The consolidated Company's obligation is only to contribute a specified amount in order to fund the plan.

2. Defined benefit plans

The Company has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds, which are administered by the Labor Pension Fund Supervisory and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the Funds.

Defined benefit plans loans listed in the consolidated balance sheet are listed as follows:

Defined benefit obligation Plan assets at fair value Net defined benefit liability	December31,2023 $ 12,939 ( 3,266) $ 9,673	December31,2022	December31,2022
	(	(	$ 13,326 2,486) $ 10,840

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The changes of net defined benefit liability are as follow:

Balance as of January 1, 2022, Interest expense Recognized in profit or loss Remeasurement Return on planned assets (In addition to the amount included in net interest) Actuarial interest－experience adjustment Actuarial benefits - changes in financial assumptions Relating to components of other comprehensive income Contributions by employer Benefit Payment Balance as of December 31, 2022 Interest expense Recognized in profit or loss Remeasurement Return on planned assets (In addition to the amount included in net interest) Actuarial interest－experience adjustment Actuarial benefits - changes in financial assumptions Relating to components of other comprehensive income Contributions by employer Benefit Payment Balance as of December 31, 2023	Defined benefit obligation $ 17,399 91 91 17 ( 893 ) ( 2,285 ) ( 3,161) - ( 1,003) 13,326 180 180 52 ( 357 ) 216 ( 89) - ( 478) $ 12,939

The company is exposed to the following risks due to the pension system of the "Labor Standards Act":

1) Investment risk: The Labor Fund Utilization Bureau of the Ministry of Labor invests labor pension funds in domestic (foreign) equity securities, debt securities, and bank deposits through self-use and entrusted operation methods, but the planned assets of the merged company may be allocated The amount is calculated based on the local bank's 2-year fixed deposit interest rate.
2) Interest rate risk: The decline in the interest rate of government bonds will increase the present value of defined benefit obligations, but the debt investment return on project assets will also increase accordingly, and the impact of the two on net defined benefit liabilities will have a partial offset effect.
3) Salary risk: The calculation of the present value of the defined benefit
37 -

obligation refers to the future salary of the plan members. An increase in plan member salaries will therefore increase the present value of the defined benefit obligation.

The present value of the confirmed benefit obligations of the consolidated company is calculated by a qualified actuary, and the major assumptions on the measurement date are as follows:

Discount rate Expected rate of salary increases	December31,2023 1.625% 3%	December31,2022
		1.75% 3%

If there are reasonably possible changes in major actuarial assumptions, and all other assumptions remain unchanged, the amount that will increase (decrease) the present value of the defined benefit obligation is as follows:

Discount rate Increase 0.25% Decrease 0.25% Expected rate of salary increases Increase 0.25% Decrease 0.25%	December 31, 2023 ($ 428) $ 446 $ 432 ($ 417)	December 31, 2022	December 31, 2022
	( (	( (	$ 451) $ 470 $ 456 $ 440)

Since the actuarial assumptions may be related to each other, the possibility of only a single assumption changing is unlikely, so the above sensitivity analysis may not be able to reflect the actual changes in the present value of the defined benefit obligations.

Expected amount allocated within 1 year Determining the weighted average of benefit obligations Duration	December 31, 2023 $ 1,200 13.52 years	December 31, 2022	December 31, 2022
			$ 1,200 13.87years

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(19)	Equity 1. 2.	Capital Stock Common stock Authorized shares (in thousands) Authorized capital Issued and paid shares (in thousands) Issued capital Capital reserve Can be used to make up for losses, distribute cash or allocate capital (Note) Additional paid-in capital Lapsed employee stock options	December31,2023 150,000 $ 1,500,000 87,546 $ 875,460 December31,2023 $ 347,203 390 $ 347,593	December31,2022	December31,2022
				150,000 $ 1,500,000 87,546 $ 875,460 December31,2022
					$ 347,203 390 $ 347,593

Note: This kind of capital reserve can be used to make up for losses, and can also be used to distribute cash dividends or transfer capital when the company has no losses.

Retained earnings and dividend policy

According to the Company’s Articles of Incorporation, if the Company's annual final accounts have surplus, after paying all taxes and contributions in accordance with the law and making up for previous years' losses, 10% should be allocated as the legal surplus reserve. However, this is not applicable when the total amount of paid-in capital is reached or it is listed or reversed according to the laws and regulations of the competent authority; if there is still a balance, no less than 10% should be allocated as shareholder dividends. The board of directors will submit to the shareholders' meeting for a resolution on the distribution of shareholder dividends and bonuses together with the previous surplus. Please refer to Note 21 (8) Employee Remuneration and Director Remuneration for the distribution policy of employees, directors and supervisors' remuneration after the revision of the Articles of Incorporation.

According to the Company’s Articles of Incorporation, cash dividends shall not be less than 10% of the total dividends distributed in the current year. However, it can be adjusted depends on whether the company has improved its financial structure or major capital expenditure plans in the current year. The ratio of cash dividend distribution can be increased or decreased by the resolution of the shareholders' meeting.

Legal reserve can be used to make up losses. When the Company has no losses,

39 -

the portion of the legal reserve which exceeding 25% of the total paid-in share capital may be allocated to share capital and distributed in cash.

The Company withdraw and reverse the special reserve according Financial-Supervisory-Securities-Auditing-1010012865, 1010047490 and 1030006415 and IFRSs- Questions and Answers about the Application of Special Reserve.

The company held regular shareholders' meetings on June 07, 2023, and June 14, 2022, and passed resolutions to make up for losses in 2022 and 2021, respectively.

The 2023 loss surplus plan is yet to be resolved at the shareholders' meeting expected to be held in June 2024.

Others Exchange differences arising on translation of foreign operations. Year 2023 Year 2022 Balance as of the beginning of the year ( $ 2,601 ) ( $ 11,370 ) Occurred in the current year Exchange differences arising on translation of foreign operations. 16,069 10,961 Income tax arising on translation of foreign operations. ( 3,214) ( 2,192) Balance as of the end of the year $ 10,254 ($ 2,601)	Others Exchange differences arising on translation of foreign operations. Year 2023 Year 2022 Balance as of the beginning of the year ( $ 2,601 ) ( $ 11,370 ) Occurred in the current year Exchange differences arising on translation of foreign operations. 16,069 10,961 Income tax arising on translation of foreign operations. ( 3,214) ( 2,192) Balance as of the end of the year $ 10,254 ($ 2,601)	Others Exchange differences arising on translation of foreign operations. Year 2023 Year 2022 Balance as of the beginning of the year ( $ 2,601 ) ( $ 11,370 ) Occurred in the current year Exchange differences arising on translation of foreign operations. 16,069 10,961 Income tax arising on translation of foreign operations. ( 3,214) ( 2,192) Balance as of the end of the year $ 10,254 ($ 2,601)	Others Exchange differences arising on translation of foreign operations. Year 2023 Year 2022 Balance as of the beginning of the year ( $ 2,601 ) ( $ 11,370 ) Occurred in the current year Exchange differences arising on translation of foreign operations. 16,069 10,961 Income tax arising on translation of foreign operations. ( 3,214) ( 2,192) Balance as of the end of the year $ 10,254 ($ 2,601)	Others Exchange differences arising on translation of foreign operations. Year 2023 Year 2022 Balance as of the beginning of the year ( $ 2,601 ) ( $ 11,370 ) Occurred in the current year Exchange differences arising on translation of foreign operations. 16,069 10,961 Income tax arising on translation of foreign operations. ( 3,214) ( 2,192) Balance as of the end of the year $ 10,254 ($ 2,601)
Balance as of the beginning of the year Occurred in the current year Exchange differences arising on translation of foreign operations. Income tax arising on translation of foreign operations. Balance as of the end of the year		Year 2023 $ 2,601 ) 16,069 3,214) $ 10,254
	( (		( ( (	$ 11,370 ) 10,961 2,192) $ 2,601)

40 -

5. Non-controlling interests Balance as of the beginning of the year Share attributable to non-controlling interests Net loss of the year Exchange differences arising on translation of foreign operations Acquisition of non-controlling interests in subsidiaries Increased of non-controlling interests in cash capital injection Balance as of the end of the year		Year 2023 $ 14,360 4,999 ) 43 - - $ 9,404		Year 2022
	(		(	$ 6,545 1,739 ) 417 2,387 6,750 $ 14,360

(20) Revenue

The Company and Subsidiaries are selling a single machinery and parts and the sales department is the same operation unit. The contract revenue breakdown is as below:

Contract revenue Sales of goods		Year 2023 $ 742,197		Year 2022
				$ 762,235

Description of customer contract

Sales of goods

The Company recognized its revenue and accounts receivable when the automatic machinery such as intelligent pipe bender, forming machine, vertical working machine has been delivered or loading certificates with customer’s signature. The consolidated company set the credit term based on the financial condition, market region, and trading experience of each customer. Most of the contracts are regards as accounts receivable when the commodity is transferred and there is an unconditional right to receive the consideration amount. These accounts receivable usually have a short collection period and do not have a significant financial component; only some contracts charge part of the consideration from the customer before transferring the goods, and the Company needs to undertake the obligation to transfer the goods later, so it is recognized as contract liabilities.

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2. Contract balance Notes receivable(Note 7) Accounts receivable (Note 7) Accounts receivable from related parties(Note 7) Long-term notes receivable(Note 7) Long-term accounts receivable from related parties(Note 7) Contract Liabilities－Current Sales of goods	2023 December 31 $ 85,391 $ 146,640 13,284 $ 159,924 $ 252 $ 3,157 $ 52,603	2022 December 31 $ 107,694 $ 189,762 44,281 $ 234,043 $ 7,773 $ 15,917 $ 84,567		2022 January 1
				$ 78,651 $ 243,581 48,949 $ 292,530 $ 7,211 $ 19,298 $ 66,418

Revenue from the beginning balance of the contract liability and satisfaction during the year 2023 and 2022 were as follows:

(21)	Net loss	Year 2023 Revenue from the beginning balance of contract liabilities Sales of goods $ 77,838 before income tax Other income and net loss Year 2023 Loss (gain) from disposal of property, plant and equipment $ 678 Lease modification benefit $ 678 Interest income from bank deposits Year 2023 Bank deposit $ 7,031 Long-term account receivable 864 Others 51 $ 7,946		Year 2022
				$ 64,230 Year 2022
	1. 2.
				($ 30) 45 $ 15 Year 2022
				$ 3,157 993 9 $ 4,159

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3. Other income Year 2023 Solar Power Revenue $ 12,306 Lease(Note 27) 1,532 Subsidies 278 Others 1,746 $ 15,862 4. Other benefit and loss Year 2023 Net foreign currency exchange gains (Loss) ( $ 21,802 ) Others ( 813) ($ 22,615) 5. Financial costs Year 2023 Interest on borrowings from bank $ 20,077 Interest on lease liabilities 1,116 Less: Interest capitalization - 21,193 Other financial costs 139 $ 21,332 Information on interest capitalization: Year 2023 Amount $ - Interest rate - 6. Depreciation and amortization Year 2023 Depreciation classified by function Operation cost $ 30,113 Operation expense 17,659 $ 47,772 Depreciation classified by function Operation cost $ 74		Year 2022
		$ 12,559 1,820 785 2,169 $ 17,333 Year 2022
	(	$ 48,047 46) $ 48,001 Year 2022
	(	$ 18,541 1,214 3) 19,752 106 $ 19,858 Year 2022
		$ 3 1.3% Year 2022
		$ 34,333 15,920 $ 50,253 $ 74

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7. Employee benefit

Employee benefit
Short-term employee benefit Salary Labor health insurance Others Post-employment benefits(Note 18) Defined contribution plan Defined benefit plans Total Classified by function Operation cost Operation expense		Year 2023 $ 231,317 27,428 4,535 263,280 11,551 180 11,731 $ 275,011 $ 95,956 179,055 $ 275,011		Year 2022
				$ 222,940 27,419 4,152 254,511 12,601 91 12,692 $ 267,203 $ 101,546 165,657 $ 267,203

Employee and directors’ bonus stock

The company allocates employee remuneration and director remuneration at a rate of 1% to 5% and no more than 5% of the pre-tax profit before deducting the distribution of employee and director remuneration in the current year. The company's 2023 and 2022 years were net losses before tax, so the employee remuneration and director's remuneration were not estimated.

For information on employee remuneration and director remuneration for resolutions of the company's board of directors, please visit the "Public Information Observatory" of the Taiwan Stock Exchange.

Foreign currency exchange gain and loss

Foreign currency exchange gain and loss
Year 2023 Total gains $ 294,777 Total losses ( 316,579) Net losses/gains ($ 21,802) Impairment losses on non-financial assets Year 2023 Inventories(Included in the operating cost) $ 8,200		Year 2022
	(	$ 480,886 432,839) $ 48,047 Year 2022
		$ 507

Impairment losses on non-financial assets
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(22) Income Tax

Income tax expense (benefit) recognized relating to comprehensive income

The main components of income tax expense (benefit) are as follows:

2.	Year 2023 Year 2022 Current income tax Occurred at current year $ 261 $ 39 Undistributed retained earnings - 72 261 111 Deferred income tax Occurred at current year 2,777 ( 1,864) Income tax expense (benefit) relating to comprehensive income $ 3,038 ($ 1,753) The adjustment of accounting income and income tax expense (benefit) is as follows: Year 2023 Year 2022 Net loss before tax ($ 82,803) ($ 15,817) Net loss before tax Income tax benefit calculated at statutory tax rate ( $ 16,790 ) ( $ 3,240 ) Tax-free income 36 - Non-deductible expenses ( 4 ) - Unrecognized loss deductions and deductible temporary differences 19,796 1,415 Income tax on unappropriated earnings - 72 Income tax expense (benefit) relating to comprehensive income $ 3,038 ($ 1,753) Income tax recognized in other comprehensive income Year 2023 Year 2022 Deferred tax assets Occurred at current year Conversion of foreign operating units ($ 3,214) ($ 2,192)		Year 2022
		( ( (	$ 15,817) $ 3,240 ) - - 1,415 72 $ 1,753) Year 2022
		(	$ 2,192)

The adjustment of accounting income and income tax expense (benefit) is as follows:

45 -
Current tax asset and liability

December 31, 2023 December 31, 2022 Current tax asset Tax refund receivable $ 1,586 $ 1,329 Current tax liability Income tax payable $ - $ 72

Deferred tax asset and liability Changes in deferred tax asset and liability are as follows: Year 2023

Year 2023
Deferred tax asset Temporary differences Uncollectible accounts Inventory depreciation and sluggish loss Leave Payable Unrealized sales benefit Unrealized exchange loss Liabilities provision Conversion of foreign operating units Others Deferred tax liability Temporary differences Exchange balance of foreign operating institutions Unrealized exchange loss Year 2022 Deferred tax asset Temporary differences Uncollectible accounts Inventory depreciation and sluggish loss Leave Payable Unrealized sales benefit Unrealized exchange loss Liabilities provision Conversion of foreign operating units Others	Balance as of the beginning of year $ 803 8,970 1,198 9,186 - 739 650 5,941 $ 27,487 $ - 3,275 $ 3,275 Balance as of the beginning of year $ - 9,186 1,068 4,502 1,358 517 2,842 5,067 $ 24,540	Recognized in profit or loss $ 14 ( 546 ) 40 ( 5,055 ) 534 ( 254 ) - ( 785) ($ 6,052) $ - ( 3,275) ($ 3,275) Recognized in profit or loss $ 803 ( 216 ) 130 4,684 ( 1,358 ) 222 - 874 $ 5,139	Recognized in OCI $ - - - - - - ( 650 ) - ($ 650) $ 2,564 - $ 2,564 Recognized in OCI $ - - - - - - ( 2,192 ) - ($ 2,192)	Balance as of the end of year
				$ 817 8,424 1,238 4,131 534 485 - 5,156 $ 20,785 $ 2,564 - $ 2,564 Balance as of the end of year
		( (	( (		$ 803 8,970 1,198 9,186 - 739 650 5,941 $ 27,487

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Deferred tax liability Temporary differences - - Unrealized exchange gain $ $ 3,275 $ $ 3,275

Deductible temporary differences and unused loss deduction amounts not recognized in the balance sheet as deferred tax asset

December 31, 2023 December 31, 2022 Loss deductions Due year 2030 $ 110,483 $ 110,513 Due year 2031 116,568 116,568 $ 227,051 $ 227,081

Deductible temporary differences

Net defined benefit liability $ 15,647 $ 16,667 Impairment loss on property, plant and equipment 2,058 2,255 $ 17,705 $ 18,922

Information about unuse loss deductions and tax exemptions The information as of December 31, 2023 is as follow:

Balance not yet deducted $ 110,483 116,568 $ 227,051	Final deduction year
	2030 2031

Income tax verification

The year 2020 and 2021 income tax declaration of the Company and subsidiary of Rdata has been approved by the tax collection agency, respectively.

(23) Net loss per share

The loss and weighted average number of common stocks used to calculate the net loss per share are as follows:

Net loss of the year Net loss attributable to owners of the company Number of shares Weighted average number of common stocks used to calculate diluted net loss per share		Year 2023 Year 2022 $ 80,842) ($ 12,325) Unit: Thousands share Year 2023 Year 2022 87,546 87,546
	(

47 -

If the consolidated company can choose to issue employee remuneration in stock or cash, when calculating the diluted net loss per share, it is assumed that the employee remuneration will be issued in the form of stock, and when the potential ordinary shares have a dilutive effect, it will be included in the weighted average number of outstanding shares. Calculate diluted net loss per share. When calculating the diluted net loss per share before deciding on the number of shares issued for employee compensation in the next year, the dilution effect of these potential common stock will also continue to be considered.

(24) Company merger and acquisition

Acquisition of a subsidiary

Acquired company Rdata System Co., Ltd	Nature of business Unmanned aerial system related business	Acquired date April 1, 2022	With voting rights ownership interest/ Acquisition ratio (%) 55		Transfer Pricing
					$ 8,250

Assets acquired, and liabilities assumed on acquisition date

Current assets Cash Inventories Accounts receivable Prepayment Non-current assets Property, plant and equipment Refundable deposits Current liabilities Accounts payable Others payable Tax liabilities Other current liabilities Non-current liabilities Bank loans	Rdata System Co., Ltd	Rdata System Co., Ltd
	( ( ( ( (	$ 7,596 1,313 39 274 195 286 184 ) 733 ) 575 ) 201 ) 2,706) $ 5,304

Non-controlling interest

The non-controlling interest (45% ownership interest) of Rdata System Co., Ltd. is measured by the proportionate share of the recognized amount of the acquiree's identifiable net assets on the acquisition date.

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Goodwill arising from acquisitions

Goodwill arising from acquisitions
Transfer Pricing Add: Non-controlling interest(45% ownership interest in Original Capital Rdata System Co., Ltd) Less: Fair value of identifiable net assets acquired Goodwill arising from acquisitions	Rdata System Co., Ltd
	(	$ 8,250 2,387 5,304 ) $ 5,333

The goodwill arising from the acquisition of Rdata System Co., Ltd. is due to the fact that the merger cost includes a control premium.

Net cash outflow from acquisition of subsidiaries

Net cash outflow from acquisition of subsidiaries
Consideration paid Less: Cash	Rdata System Co., Ltd
	( (	$ 8,250 ) 7,596 $ 654)

Effect of business acquisition on operating results The operating results from the invested company Since the acquisition date are as follows:

as follows:
Operation Income Net loss for the period	April 1, 2022 to December 31, 2022
	Rdata System Co., Ltd
	(	$ 6,253 $ 981)

If such a business acquisition occurs on the start date of the accounting year to which the acquisition date falls, the operating income and net profit of the consolidated company are as follows:

consolidated company are as follows:
Operation Income Net loss for the period	January 1, 2022 to December 31, 2022
	(	$ 762,263 $ 14,777)

These amounts cannot reflect the actual income and operating results of the consolidated company if the business acquisition is completed on the beginning date of the acquisition year, and should not be used to predict future operating results.

49 -

(25) Capital Risk Management

The capital management of the consolidated company is to optimize the balance of debt and equity to make effective use of capital and ensure the smooth operation of each company. The overall strategy of the consolidated company has not changed. The capital structure of the consolidated company is composed of net debt and equity and does not need to comply with other external capital requirements. The management of the consolidated company re-examines the capital structure on a quarterly basis, including consideration of the cost of various types of capital and related risks. According to the recommendations of the management, the consolidated company will pay dividends or repay liabilities, and invest in financial products to increase the company's income and management capital structure.

(26) Financial instruments

Fair value information - financial instruments not measured at fair value

Financial instruments of the consolidated company that are not measured at fair value, such as cash and cash equivalents, net receivables, other receivables, deposits, long-term and short-term loans The book amounts of , payables, other payables and deposits are reasonable approximations of fair values.

Type of financial instruments

Type of financial instruments
Financial Assets Financial assets measured at amortized cost (Note 1) Financial Liabilities Financial assets measured at amortized cost ( Note 2)	December 31, 2023 $ 533,646 1,082,192	December 31, 2022
		$ 640,756 1,152,137

Note 1: The balance includes cash and cash equivalents, note and account receivable (including related parties), other receivables (including related parties), deposits and long-term notes receivable and long-term receivables - related parties and other financial assets measured at cost after amortization.
Note 2: The balance includes short-term loans, short-term commercial note, note and account payable (including related parties), other payable (including related parties), long-term loans (including long-term loans due within one year) and deposits, etc. Financial liabilities are measured at amortized cost.
50 -
Objectives and policies on financial risks

The main financial instruments of the consolidated company include equity investment, account and note receivable, loans, account and note payable, etc. The financial management of the consolidated company provides services for each business unit, supervises, and manages the financial risks related to the operation of the consolidated company according to the level of risk. These risks include market risk (including exchange rate risk and interest rate risk), credit risk and liquidity risk.

1) Market risk
a. Foreign currency risk

The consolidated company engages sales activities in foreign currency thus exposing the consolidated company to risk of exchange rate fluctuations.

Please refer to Note 29 for the carrying amount of monetary assets and monetary liabilities denominated in non-functional currency of the consolidated company on the balance sheet date.

Sensitivity Analysis

The consolidated company is mainly affected by fluctuations in foreign exchange rates such as the U.S. dollar and the Chinese Yuan. The table below details the sensitivity analysis of the consolidated company when the exchange rates of the consolidated company’s foreign currency to NT change. When the relevant foreign currencies appreciate by 1%, the impact on the profit and loss of the consolidated company is as follows:

Profit and loss Profit and loss Profit and loss	US Dollar	US Dollar
	Year 2023 Year 2022 $ 4,983 $ 4,617 EURO	Year 2022
	Year 2023 $ 177 Chinese	Year 2022
		$ 124 Yuan
	Year 2023 $ 836	Year 2022
		$ 953

The above-mentioned exchange rate impact is mainly due to the foreign currency-denominated cash and equivalent cash, receivables and payables of the consolidated company that are still in circulation on the balance sheet date and have not undergone cash flow hedging. The decline in exchange rate sensitivity of the consolidated company in the current period is mainly due to the decrease in net assets in US dollars.

51 -

b. Interest Rate Risk

Because individuals within the consolidated company borrow funds at floating rates, risks arise. The consolidated company manages interest rate risk by maintaining an appropriate mixture of fixed and floating interest rates.

The carrying amounts of the financial assets and financial liabilities of the consolidated company subject to interest rate exposure on the balance sheet date are as follows:

Fair value interest rate risk Financial Assets Financial Liabilities Cash flow interest rate risk Financial Assets Financial Liabilities	December 31, 2023 $ 143,970 173,856 130,625 800,445	December 31, 2022
		$ 98,362 166,320 164,546 857,172

Sensitivity Analysis

The sensitivity analysis below is based on the interest rate exposure of non-derivative instruments at the balance sheet date. For floating rate liabilities, the analysis method assumes that the amount of liabilities outstanding on the balance sheet date is all outstanding during the reporting period. The rate of change used when reporting interest rates internally to key management within the Group is a 1% increase or decrease in interest rates and represents management's assessment of the range of reasonably possible changes in interest rates.

If the interest rate increases by 1%, and all other variables remain unchanged, the combined company’s net loss before tax in 2023 and 2022 will increase by NT $6,698 thousands and NT $6,926 thousands, respectively, mainly due to the change in interest rates of deposits and loans of the consolidated company.

The sensitivity of the consolidated company to interest rates decreased in the current period, mainly due to the reduction of debt instruments with variable interest rates.

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2) Credit risk
Credit risk refers to the risk that the counterparty defaults in contractual obligations and causes financial losses to the Group. As of the balance sheet date, the largest credit risk exposure of the consolidated company that may cause financial losses due to the counterparty's failure to perform its obligations mainly comes from the book value of financial assets recognized in the consolidated balance sheet.

The policy adopted by the consolidated company is to conduct transactions with reputable objects. The consolidated company uses other publicly available financial information and mutual transaction records to evaluate major customers. The consolidated company continues to monitor the credit risk and the credit evaluation of the counterparty, and controls the credit risk through the annual credit limit of the counterparty.

3) Liquidity risk

The consolidated company manages and maintains sufficient cash and equivalent cash to support the group's operations and mitigate the impact of cash flow fluctuations. The management of the consolidated company supervises the use of bank financing facilities and ensures compliance with the terms of the loan contract.

The operating capital of the consolidated company and the amount of bank financing obtained are sufficient to meet future operating needs, so there is no liquidity risk due to inability to raise funds to fulfill contractual obligations

a. Liquidity and interest rate risk table for non-derivative financial liabilities
The remaining contractual maturity analysis of non-derivative financial liabilities is prepared based on the undiscounted cash flows (including principal and estimated interest) of financial liabilities based on the earliest date on which the Company may be required to repay. Therefore, the bank loans that the company can be required to repay immediately are listed in the earliest period in the table below, regardless of the probability of the bank's immediate execution of the right; the maturity analysis of other non-derivative financial liabilities is prepared according to the agreed repayment date.

For interest cash flows paid at floating rates, the undiscounted interest amount is derived based on the yield curve on the balance sheet date.

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December 31, 2023 No interest liabilities Lease liability Floating Rate Instrument – Bank Loans 1.97% ~ 4.3% Fixed Rate Instruments - Short-Term Notes Payable 2.278% ~ 2.678%	Withinone year $ 157,093 8,047 472,631 99,900 $ 737,671	More thanone year	More thanone year
			$ 25,104 73,787 353,556 - $ 452,447

Further information on the lease liability maturity analysis is as follows:

follows:
Less than one year 1 ~ 5 years 5 ~ 10 years Lease liabilities $ 8,047 $ 24,533 $ 29,851 Withinone year December 31, 2022 No interest liabilities $ 187,803 Lease liability 9,110 Floating Rate Instrument – Bank Loans 1.7982% ~ 4.3% 453,452 Fixed Rate Instruments - Short-Term Notes Payable 2.038% ~ 2.408% 82,100 $ 732,465		5 ~ 10 years	10 ~ 15 years 15 ~ 20 years $ 19,403 $ - More thanone year			15 ~ 20 years
				$ 25,104 76,584 436,167 - $ 537,855

Further information on the lease liability maturity analysis is as follows:

follows:
Lease liability		Less than one year $ 9,110		1 ~ 5 years $ 24,645		5 ~ 10 years		10 ~ 15 years $ 23,864		15 ~ 20 years
						$ 28,075				$ -

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b. Financing amount Unsecured Bank Overdraft Facility -Amount used -Amount unused Secured Bank Overdraft Facility -Amount used -Amount unused	December 31, 2023 $ 415,333 120,000 $ 535,333 $ 403,606 - $ 403,606	December 31, 2022	December 31, 2022
			$ 399,333 90,000 $ 489,333 $ 469,685 - $ 469,685

(27) Related party transactions

Transactions, account balances, income and expenses between the Company and its subsidiaries (related persons of the Company) are all eliminated upon consolidation, so they are not disclosed in this note. The transactions between the merged company and other related parties are as follows:

Name of the related part and relationship

Name of the related party
YLM USA, Inc(YLM USA)
Ying Lin Machine Industrial Co.,
Ltd.(Ying Lin)
Lian
Yang
(TIAN
JIN)
Machine
Co.,Ltd.(Lian Yang)
Tian Jin Jing Feng Machine Co.,Ltd
(Jing Feng)
TM Technology, Inc.(TM)
Long-Sing Construction Co., Ltd.
(Long-Sing)
Kaixing Energy Co., Ltd.(Kaixing)
HPN.LLC（HPN）

Relationship

Other related party(The director of the
Company is the immediate family to
this related party’s person in charge)
Investors with Significant Influence
Other related party(The chairman of the
Company is the second degree family
to this related party’s person in
charge)
Other related party(The spouse of the
chairman of the Company is the
chairman of to this related party’s
person in charge)
Other related party(The chairman of the
Company is also the chairman of this
related party’s person in charge)
Other related party(The chairman of the
Company is the immediate family to
this related party’s person in charge)
Other related party(TM Technology
100% holds this related party)
Other related party(The chairman of the
company and the spouse of the
chairman of the company are the same
person

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2.	Operating Revenue Item Sales Revenue	Category Other related party YLM USA		Year 2023 $ 43,604		Year 202
						$ 54,628

The sales price of the parts and machinery is negotiated by both parties due to the nature of the product is customization.

The consolidated company set the credit term based on the financial condition, market region, and trading experience of each client.

3. Purchase

Purchase
Category Investors with Significant Influence Ying Lin Other related party Lian Yang YLM USA		Year 2023 $ 2,232 1,024 287 $ 3,543		Year 2022
				$ 4,180 2,210 953 $ 7,343

The price of equipment, machines and spare parts and credit terms set for the replated parties is the same as non-related party.

Receivables from related parties

Item Account receivable Long-term account receivable	Category Other related party YLM USA Other related party YLM USA	December 31 2023 $ 13,284 $ 3,157	December 31 2022	December 31 2022
				$ 44,281 $ 15,917

There is no guarantee for the outstanding receivables from related parties. The amount receivable from related parties in 2023 and 2022 has not been provisioned for loss.

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Accounts payable – related party Item Category December 31 2023 December 31 2022 Account Payable Investors with Significant Influence Ying Lin $ 4,555 $ 3,254 Other related party YLM USA 143 - Lian Yang 63 204 $ 4,761 $ 3,458 Others Payable Other related party YLM USA $ - $ 4,752 Prepayment Category December 31 2023 December 31 2022 Other related party $ - $ 481 Acquisition of property , plant and equipment -Year 2023 Category Price Other related party HPN.LLC $ 42,932 TM 1,175 $ 44,107 Guarantee deposit Item Category December 31 2023 December 31 2022 Guarantee deposit Other related party YLM USA $ 25,104 $ 25,104 Lease Agreement Item Category December 31 2023 December 31 2022 Lease Liabilities Investors with Significant Influence Ying Lin $ - $ 1,561 Other related party Jing Feng 72,044 78,397 $ 72,044 $ 79,958 Item Category Year 2023 Year 2022 Interest Investors with Significant Influence $ - $ 16 Other related party 1,075 1,152 $ 1,075 $ 1,168	Accounts payable – related party Item Category December 31 2023 December 31 2022 Account Payable Investors with Significant Influence Ying Lin $ 4,555 $ 3,254 Other related party YLM USA 143 - Lian Yang 63 204 $ 4,761 $ 3,458 Others Payable Other related party YLM USA $ - $ 4,752 Prepayment Category December 31 2023 December 31 2022 Other related party $ - $ 481 Acquisition of property , plant and equipment -Year 2023 Category Price Other related party HPN.LLC $ 42,932 TM 1,175 $ 44,107 Guarantee deposit Item Category December 31 2023 December 31 2022 Guarantee deposit Other related party YLM USA $ 25,104 $ 25,104 Lease Agreement Item Category December 31 2023 December 31 2022 Lease Liabilities Investors with Significant Influence Ying Lin $ - $ 1,561 Other related party Jing Feng 72,044 78,397 $ 72,044 $ 79,958 Item Category Year 2023 Year 2022 Interest Investors with Significant Influence $ - $ 16 Other related party 1,075 1,152 $ 1,075 $ 1,168	Accounts payable – related party Item Category December 31 2023 December 31 2022 Account Payable Investors with Significant Influence Ying Lin $ 4,555 $ 3,254 Other related party YLM USA 143 - Lian Yang 63 204 $ 4,761 $ 3,458 Others Payable Other related party YLM USA $ - $ 4,752 Prepayment Category December 31 2023 December 31 2022 Other related party $ - $ 481 Acquisition of property , plant and equipment -Year 2023 Category Price Other related party HPN.LLC $ 42,932 TM 1,175 $ 44,107 Guarantee deposit Item Category December 31 2023 December 31 2022 Guarantee deposit Other related party YLM USA $ 25,104 $ 25,104 Lease Agreement Item Category December 31 2023 December 31 2022 Lease Liabilities Investors with Significant Influence Ying Lin $ - $ 1,561 Other related party Jing Feng 72,044 78,397 $ 72,044 $ 79,958 Item Category Year 2023 Year 2022 Interest Investors with Significant Influence $ - $ 16 Other related party 1,075 1,152 $ 1,075 $ 1,168	Accounts payable – related party Item Category December 31 2023 December 31 2022 Account Payable Investors with Significant Influence Ying Lin $ 4,555 $ 3,254 Other related party YLM USA 143 - Lian Yang 63 204 $ 4,761 $ 3,458 Others Payable Other related party YLM USA $ - $ 4,752 Prepayment Category December 31 2023 December 31 2022 Other related party $ - $ 481 Acquisition of property , plant and equipment -Year 2023 Category Price Other related party HPN.LLC $ 42,932 TM 1,175 $ 44,107 Guarantee deposit Item Category December 31 2023 December 31 2022 Guarantee deposit Other related party YLM USA $ 25,104 $ 25,104 Lease Agreement Item Category December 31 2023 December 31 2022 Lease Liabilities Investors with Significant Influence Ying Lin $ - $ 1,561 Other related party Jing Feng 72,044 78,397 $ 72,044 $ 79,958 Item Category Year 2023 Year 2022 Interest Investors with Significant Influence $ - $ 16 Other related party 1,075 1,152 $ 1,075 $ 1,168	December 31 2022	December 31 2022
	$ 4,555 143 63
	$ 4,761
	$	-

Other related party Acquisition of property Category			$	481 Price

Other related party HPN.LLC TM Guarantee deposit Item Guarantee deposit Lease Agreement Item Lease Liabilities Item Interest			$	42,932 1,175 44,107 December 31 2022
			$
				$ 25,104 December 31 2022
					$ 1,561 78,397 $ 79,958 Year 2022
					$ 16 1,152 $ 1,168

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10. Rental Agreement

The consolidated company is leased to other related parties under an operating lease with a lease period of 1 to 5 years. The rental income recognized in 2023 and 2022 is NT$ 1,489 thousands and NT $1,820 thousands, respectively.

11. Others

In year 2023 and 2022, the consolidated company recognized the processing fees and business-related expenses of investors with significant influence as NT $6,511 thousands and NT $5,832 thousands, respectively; the business-related expenses recognized as other related party were NT $2,795 thousands and NT $11,097 thousands, respectively; The other income listed in Other related party is NT $390 thousands and NT $301 thousands, respectively.

12. Salary of management

The total amount paid to chairman and management is as follows:

Short-term employee benefit Post-employment benefits		Year 2023 $ 12,946 296 $ 13,242		Year 2022
				$ 11,805 296 $ 12,101

The remuneration of directors and other management personnel is determined by the remuneration committee in accordance with individual performance and market trends.

(28) Pledged assets

The following assets were provided as collateral for financing borrowings:

Land Building Investment property	December 31, 2023 $ 499,064 207,108 18,147 $ 724,319	December 31, 2022	December 31, 2022
			$ 499,064 223,672 18,694 $ 741,430

(29) Foreign currency with significant impact and liabilities

The following information is summarized and expressed in terms of foreign currencies other than the individual functional currencies of the consolidated companies. The disclosed exchange rates refer to the exchange rates converted from these foreign currencies to the functional currencies. Information on foreign currency financial assets with significant impact is as follows:

58 -

Unit: Thousands

December 31, 2023

December 31, 2023			Unit: Thousands
Foreign Currency Assets Monetary items USD EUR CNY JPY Foreign Currency Liability Monetary items USD EUR CNY December 31, 2022 Foreign Currency Assets Monetary items USD EUR CNY JPY Foreign Currency Assets Monetary items USD EUR CNY	Foreign Currency $ 16,580 542 20,105 894 350 20 794 Foreign Currency $ 16,242 506 22,704 1,918 Foreign Currency $ 1,210 127 1,088	Exchange Rate 30.705 (USD:TWD) 33.98 (EUR:TWD) 4.327 (CNY:TWD) 0.2172 (JYP:TWD) 30.705 (USD:TWD) 33.98 (EUR:TWD) 4.327 (CNY:TWD) Exchange Rate 30.71 (USD:TWD) 32.72 (EUR:TWD) 4.408 (CNY:TWD) 0.2201 (JYP:TWD) Exchange Rate 30.71 (USD:TWD) 32.72 (EUR:TWD) 4.408 (CNY:TWD)	Amount
			$ 509,043 18,408 86,993 194 10,754 666 3,434 Amount
			$ 498,839 16,561 100,078 422 Amount
			$ 37,143 4,143 4,796

(Continue on the next page)

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(Continued)

Foreign currency exchange profits and losses with significant impact (realized and unrealized) are as follows:

Year 2023	Net Losses and Profits ( $ 2,331 ) 21 3,452 ( 22,579 ) ( 81 ) 436 ($ 21,082)	Year 2022
Functional currency Exchange currency 1(TWD:TWD) 4.3956(CNY:TWD) 7.4224(PLN:TWD) 1.3491(TRY:TWD) 0.9005(THB:TWD)		Functional currency Exchange currency 1(TWD:TWD) 4.4218(CNY:TWD) 6.6877(PLN:TWD) 1.8131(TRY:TWD) 0.8555(THB:TWD)	Net Losses and Profits
	( ( ( (		( ( (	$ 70,783 107 4,008 ) 18,441 ) 45 439) $ 48,047

(30) Other disclosures

1) Major transactions
Lending funds to others(Schedule I)
Endorsement for others(Schedule II)
Securities held at the end of the period(N/A)
Accumulated buying or selling of the same securities amounted to NT $300 million or more than 20% of the paid-in capital. (N/A)
The amount of property acquired is NT$300 million or more than 20% of the paid-in capital. (N/A)
The amount of disposing of property is NT$300 million or more than 20% of the paid-in capital. (N/A)
The amount of goods purchased and sold with related parties reaches NT$100 million or more than 20% of the paid-in capital. (N/A)
Receivables from related parties amount to NT$100 million or more than 20% of the capital. (VII)
Engage in derivative transactions. (N/A)
Others: The business relationship between the parent company and the subsidiaries, and the status and amount of important transactions. (Schedule XI)
2) Reinvestment Business (Schedule III)
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3) Mainland Investment Information:
The name of the mainland invested company, main business items, paid-in capital, investment method, capital remittance, shareholding ratio, investment profit and loss, investment book amount at the end of the period, repatriated investment profit and loss, and investment quota in the mainland. (Schedule IX)
The following major transactions, prices, payment terms, and unrealized profits and losses with mainland invested companies directly or indirectly via third regions. (Schedule V)
<1> The purchase amount and percentage and the ending balance and percentage of related payables.
<2> The sales amount and percentage and the closing balance and percentage of related receivables.
<3> The amount of assets transactions and the amount of profits and losses arising therefrom.
<4> Ending balance of bill endorsement or guarantee and its purpose.
<5> Maximum balance of financing, ending balance, interest rate range and total interest of the current period.
<6> Other transactions that have a significant impact on the current profit and loss or financial status, such as the provision or receipt of labor services, etc.
4) Corporate shareholders: The name, amount, and ratio of the shareholding. (Schedule VIII)

(31) Segment Information

The operating decision makers of the consolidated company focus on the financial information of the plant for allocating resources and evaluating departmental performance. Each plant uses similar processes to produce similar products and sells them through a unified sales method of the group. Consolidated companies are aggregated into a single operating segment report. In addition, the departmental information provided by the consolidated company to the operating decision-makers for review is based on the same basis as the consolidated financial report. The departmental income, operating results, and assets and liabilities that should be reported in year 2023 and 2022. Please refer to the merger of year 2023 and 2022 balance sheet and consolidated statement of comprehensive income for more information.

Regional Information The consolidated company has two main operating and production plant in Taiwan and China. Other region is for sales only.

The operating income of the consolidated company from external customers according to the region of operation and the information of non-current assets are listed as follows:

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Income from external

	Income from external
Taiwan China Turkey Poland Others	customer Year 2023 Year 2022 $ 461,431 $ 462,184 94,232 104,512 67,973 85,989 46,579 50,759 71,982 58,791 $ 742,197 $ 762,235	Non-current Assets
	Year 2023 $ 461,431 94,232 67,973 46,579 71,982 $ 742,197	2023 December 31 $ 712,067 154,249 1,348 16 46,839 $ 914,519	2022 December 31
				$ 744,413 162,420 - 23 5,692 $ 912,548

Non-current assets exclude financial instruments, goodwill and deferred tax assets.

2. Main customer information

The consolidated company has no revenue from a single customer accounted for more than 10% of the total revenue of the merged company in year 2022 and 2023.

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YING HAN Technology Co., Ltd. and Subsidiaries Funds Lent to Others

January 1 to December 31, 2023

Schedule I

Units: Thousands of New Taiwan Dollars

No. (Note 1)	Company that lent funds	Company lent funds to	Business Objective	If It’s Related Party	Highest Balance of the period	Balance at the end of the period (Note4)	Actual spending amount	Ratio (%)	Fund loan nature(Note3)	Business dealings amount	Reasons for short-term financing	Allowance and debt amount	Collateral	Collateral	Individual fund loan and limit	Loan and total limit
													Item	Value
0	The Company	YING HAN TECHNOLOGY LIMITED(Russia) Ying Han Teknoloji Ltd. Ylm Industrial Co., Ltd.(Vietnam) HANNSA PRECISION SDN. BHD.(Malaysia Ying Han) YING HAN TEKNOLOJI LTD. STI(Turkey Ying Han ) YING HAN TECHNOLOGY SP. ZO. O. (Poland Ying Han ) YLM TUBE SOLUTIONS AND SERVICE P. LTD(India Ying Han ) PT.YING LIN MACHINE AND SERVICE(Indonesia Ying Han) YLM INDUSTRIAL CO., LTD. (Thailand Ying Han) Tianjin Yinghan Technology Co., Ltd. Shanghai Yingheng Machinery Technology Co., Ltd.	Other accounts payable Other accounts payable Other accounts payable Other accounts payable Other accounts payable Other accounts payable Other accounts payable Other accounts payable Other accounts payable Other accounts payable	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	$ 3,674 4,789 4,941 80,996 31,260 502 952 22,666 39,052 62,578	$ 389 4,789 4,941 80,996 31,260 115 903 17,551 39,052 36,861	$ - 2,222 - 65,975 22,242 9 - - 27,526 31,050	- - - - - - - - - -	1 1 1 1 1 1 1 1 1 1	$ 389 4,789 4,941 80,996 31,260 115 903 17,551 39,052 36,861	Business dealings Business dealings Business dealings Business dealings Business dealings Business dealings Business dealings Business dealings Business dealings Business dealings	$ - - - - - - - - - -	- - - - - - - - - -	$ - - - - - - - - - -	$ 389 (Note2) 4,789 (Note2) 4,941 (Note2) 80,996 (Note2) 31,260 (Note2) 115 (Note2) 903 (Note2) 17,551 (Note2) 39,052 (Note2) 36,861 (Note2)	$ 419,543 (Note2) 419,543 (Note2) 419,543 (Note2) 419,543 (Note2) 419,543 (Note2) 419,543 (Note2) 419,543 (Note2) 419,543 (Note2) 419,543 (Note2) 419,543 (Note2)

Note 1: Number 0 in the number column refers to the issuer. Invested companies are numbered sequentially starting from the Arabic numeral 1 by company.

Note 2: (1) The total amount of the company's funds lent to others shall not exceed 40% of the company's net value at the end of the period.

(2) The limit of the company's capital loan to individual companies or firms is limited to the lower of the business transaction amount and 10% of the company's net value at the end of the period. Note 3: (1) Business dealings.

(2) There is a need for short-term financing.

Note 4: It is the amount approved by the board of directors for the loan.

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YING HAN Technology Co., Ltd. and Subsidiaries Endorsement for Others

January 1 to December 31, 2023

Schedule II

Units: Thousands of New Taiwan Dollars except for remarks

No. (Note1)	Endorsement guarantor company name	Guaranteed bythe endorsement	Guaranteed bythe endorsement	Quota for a single enterprise endorsement guarantee (Note3)	The highest endorsement in this period guaranteed balance(Note4)	End of term endorsement guaranteed balance(Note4)	Actual spending amount	Guarantee Amount secured by property Endorsement	Cumulative Endorsement Guarantee The amount accounted for the most recent Financial Statement Net Worth ratio of(％)	Endorsement guarantee maximum limit(Note3)	Parent company Subsidiary endorsement guarantee	Subsidiary pair Parent company endorsement guarantee	Mainland China endorsement guarantee
		Name of the company	Relationship (Note2)
0	The Company	Tianjin Yinghan Technology Co., Ltd.	(2)	$ 209,771	$ 173,080 (RMB 40,000,000)	$ 173,080 (RMB 40,000,000)	$ -	$ -	16.5	$ 524,429	Y	N	Y

Note1: The description of the number column is as follows:

(1) 0 for the issuer.

(2) Invested companies are numbered sequentially starting from the Arabic numeral 1 by company.

Note2: (1) Companies with business deals.

(2) A company in which the company directly and indirectly holds more than 50% of the voting shares.

(3) Inter-companies in which the company directly and indirectly holds 90% of the voting shares.

Note3: The company's endorsement guarantee limit for a single enterprise is 20% of the company's net value at the end of the period, but for subsidiaries that hold more than 50% of the company's shares, it is limited to no more than 50% of the company's net value at the end of the period. Note4: The relevant amount is converted based on the exchange rate at the end of the period when one RMB equals NT$4.327.

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YING HAN Technology Co., Ltd. And Subsidiaries Invested Company Related Information

January 1 to December 31, 2022

Schedule III

Unit: Share, Thousands of New Taiwan Dollars (Except for foreign currency)

Name of Company	Name of Invested Company	Location	Main business items	Beginning investment amount	Beginning investment amount	Balance	at the end	of period	Loss and profit of invested company	Loss and profit recognized in this period (Note1)	Note
				The end of period	The end of last period	Share	Ratio (%)	Booking Amount
The Company	YING HAN TECHNOLOGY Sp. Z O.O.(Poland Ying Han) YING HAN TEKNOLOJI LTD. STI.(Turkey Ying Han) YING HAN TECHNOLOGY(Russia Ying Han) HANNSA PRECISION SDN. BHD.(Malaysia Ying Han) YLM INDUSTRIAL CO., LTD.(Thailand Ying Han) DING LINH MACHINE INDUSTRIAL TRADING CO ., LTD. YLM TUBE SOLUTIONS AND SERVICE P. LTD.(India Ying Han) PT. YING LIN MACHINE AND SERVICE(Indonesia Ying Han) Rdata System Co., Ltd YING HAN TECHNOLOGY(USA), INC.(USA Ying Han)	Poland Turkey Russia Malaysia Thailand Vietnam India Indonesia Taiwan USA	Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts Trading of machinery equipment and parts UAV- Unmanned Aerial Vehicle system testing and sales Trading of machinery equipment and parts	$ 12,016 21,006 6,253 161 4,477 6,141 `（`USD 200,000`）` 2,193 `（`USD 71,434`）` 3,344 `（`USD 108,900`）` 16,500 52,199 `（`USD 1,700,000`）`	$ 6,466 21,006 6,253 161 4,477 6,454 `（`USD 200,000`）` 2,305 `（`USD 71,434`）` 3,514 `（`USD 108,900`）` 16,500 48,408 `（`USD 1,500,000`）`	500 - - 400,000 23,000 - 369,999 108,900 1,100,000 60,000	100 100 100 100 46 100 99.99 99 55 100	( $ 24,722 ) ( 50,508 ) ( 230 ) 4,392 1,613 ( 222 ) 1,691 3,231 12,010 52,025	( $ 835 ) ( 29,743 ) 1,018 2,208 ( 3,278 ) 1,099 ( 364 ) 224 ( 7,181 ) ( 82 )	( $ 1,078 ) ( 29,743 ) 1,018 2,208 ( 1,308 ) 830 ( 364 ) 224 ( 3,950 ) ( 82 )	Note2 Note3 Note4

Note1: It is only necessary to list the profit and loss amount of each subsidiary recognized by the company as a direct transfer investment and each investee company that adopts the equity method, and the rest is not required. Note2: The investment profit and loss recognized in the current period include the current loss of NT $835 thousands minus the unrealized sales gross profit of NT $2,683 thousands in downstream transactions, plus the realized sales gross profit of NT $2,440 thousands. Note3: The investment profit and loss recognized in the current period include the current loss of NT $1,508 thousands minus the unrealized sales gross profit of NT $827 thousands in downstream transactions, plus the realized sales gross profit of NT $1,027 thousands. Note4: The investment profit and loss recognized in the current period include the current profit of NT $1,099 thousands minus the unrealized sales gross profit of NT $398 thousands in downstream transactions, plus the realized sales gross profit of NT $129 thousands. Note5: Please refer to schedule IX for relevant information on investee companies in mainland China.

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YING HAN Technology Co., Ltd. And Subsidiaries Mainland Investment Information

January 1 to December 31, 2023

Schedule IV

Units: Thousands of New Taiwan Dollars except for remarks

Schedule IV												U	nits: Thousands of New	Taiwan Dollars except fo	r remarks
Invested Company in Mainland	Main Business Items	Paid-in capital (Note4)		Investment method (Note1)	Beginning of period Accumulated Remittance from Taiwan Amount(Note4)	Remittance or withdrawal of investment amount in the current period			The end of period Accumulated Remittance from Taiwan Amount(Note4)	Loss and profit of invested company this period	The company directly or indirect investment Shareholding %	Recognized in this period Loss and profit of investment (Note2)	Investment at the end of period Booking Value	As of this period Repatriated investment income	Note
						Export		Import
Tianjin Yinghan Technology Co., Ltd. Shanghai Yingheng Machinery Technology Co., Ltd.	Manufacturing of machinery equipment and parts Trading of machinery equipment and parts	$ 175,019 (USD 5,700,000) 113,608 (USD 3,700,000)		(1) (1)	$ 175,019 (USD 5,700,000) 113,608 (USD 3,700,000)	$ - -		$ - -	$ 175,019 (USD 5,700,000) 113,608 (USD 3,700,000)	( $ 33,770 ) ( 26,733 )	100 100	( $ 30,168 ) (2)B. ( 26,733 ) (2)B.	$ 118,061 61,921	$ - -	Note3 －
			The investment amount approved by the Investment Review Committee of the Ministry of Economic Affairs According to the regulations of the Investment Review Committee of the Ministry of Economic Affairs (Note4) In ve s tm e nt lim it fo r m a in la nd Ch ina (Note5) $ 288,674 (USD 9,400,000) $ 629,315
Accumulated remittances from Taiwan at the end of the current period Amount of investment in mainland China (Note4)			The investment amount approved by the Investment Review Committee of the Ministry of Economic Affairs (Note4)				According to the regulations of the Investment Review Committee of the Ministry of Economic Affairs In ve s tm e nt lim it fo r m a in la nd Ch ina (Note5)
$ 288,674 (USD 9,400,000)			$ 288,674 (USD 9,400,000)				$ 629,315

Note1: Investment methods are divided into the following three types, just classify by the category:

(1) Directly engage investment in Mainland.

(2) Reinvest in mainland China through a company in a third area (please specify the investment company in the third area).

(3) Other methods.

Note2: Investment profit and loss column recognized in the current period:

(1) If it is under preparation and there is no investment profit or loss, it should be noted.
(2) The recognition basis of investment profit and loss is divided into the following three types, which should be noted.
A. Financial statements audited by an international accounting firm that has cooperative relations with accounting firms in the Republic of China.
B. Financial statements audited by certified accountants of the parent company in Taiwan.

C. Other.

Note3: The investment gains and losses recognized in the current period include the current loss of NT$33,770 thousands plus the unrealized sales gross profit of NT$2,195 thousands from the downstream transaction, plus the realized sales gross profit of NT$5,797 thousands from the downstream transaction. Note4: The relevant amount is converted based on the exchange rate at the end of the period, when one U.S. dollar equals NT$30.705.

Note5: The company's NT$1,048,859 thousands × 60% = NT$629,315 thousands.

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YING HAN Technology Co., Ltd. And Subsidiaries Major transactions with mainland investee companies directly or indirectly through the third region, as well as their prices, payment terms, unrealized gains and losses, and other relevant information January 1 to December 31, 2023

Schedule V

Unit: Thousands of New Taiwan Dollars

The company that imports (sells) goods	Trading partners	Relationship		Trading Status	Trading Status		Circumstances and reasons why the transaction amount is different from the general transaction	Circumstances and reasons why the transaction amount is different from the general transaction	Notes receivable (payable), accounts	Notes receivable (payable), accounts
									Balance	Total receivables (payable) notes, Account ratio Ratio(%)
			Import (selling) goods	Amount	Accounted for total sales Ratio(%)	Credit terms
							Unit Price	Credit period
The Company	Tianjin Yinghan Technology Co., Ltd. Ying Han Teknoloji Ltd.	Subsidiary(Holding 100% share) Subsidiary(Holding 100% share)	Sales Sales	( $ 15,743 ) ( 14,047 )	2 2	To set individually To set individually	Fairly Fairly	To set individually To set individually	$ 14,533 13,467	6 5

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Unit: Thousands of New Taiwan Dollars

YING HAN Technology Co., Ltd. And Subsidiaries Business relationship and important transactions between the parent company and the subsidiary companies January 1 to December 31, 2023

Schedule VI

No.	Name of trader	Business Dealing Company	Relationship (Note)			Business Dealing Status
				Subject	Amount	Dealing Conditions	Total consolidated revenue or ratio of total assets (%)
0	YING HAN Technology Co., Ltd.	Tianjin Yinghan Technology Co., Ltd. Shanghai Yingheng Machinery Technology Co., Ltd Vietnam DING LINH MACHINE INDUSTRIAL TRADING CO ., LTD. YING HAN TECHNOLOGY Sp. Z O. O.(Poland Ying Han) YING HAN TEKNOLOJI LTD. STI.(Turkey Ying Han) YLM INDUSTRIAL CO., LTD.(Thailand Ying Han) YLM TUBE SOLUTIONS AND SERVICE P. LTD.(India Ying Han) PT. YING LIN MACHINE AND SERVICE(Indonesia Ying Han)	1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 1.	Sales revenue Accounts Receivable Sales revenue Accounts Receivable Sales revenue Other payables Operating Costs Accounts Receivable Sales revenue Other payables Operating Costs Accounts Receivable Sales revenue Other payables Operating Costs Accounts Receivable Sales revenue Accounts Receivable Sales revenue Operating Costs Accounts Receivable Sales revenue Other payables Operating Costs Accounts Receivable	$ 15,743 14,533 14,047 13,467 2,362 - 2,943 2,346 25,186 3,731 5,043 24,014 61,713 5,527 2,815 42,659 25,997 13,121 779 5,043 219 705 - 860 450	Pricing is based on the price agreed by both parties, and the credit terms are individually determined － Pricing is based on the price agreed by both parties, and the credit terms are individually determined － Pricing is based on the price agreed by both parties, and the credit terms are individually determined －－ Pricing is based on the price agreed by both parties, and the credit terms are individually determined －－ Pricing is based on the price agreed by both parties, and the credit terms are individually determined －－ Pricing is based on the price agreed by both parties, and the credit terms are individually determined － Pricing is based on the price agreed by both parties, and the credit terms are individually determined － Pricing is based on the price agreed by both parties, and the credit terms are individually determined －－	2 2 2 2 - - - - 3 - 1 2 8 - - 5 4 1 - 1 - - - -

(Continue on the next page)

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(Continued)

No.	Name of trader	Business Dealing Company	Relationship (Note)			Business Dealing Status
				Subject	Subject	Subject	Total consolidated revenue or ratio of total assets (％)
1 2 3	Rdata System Co., Ltd Shanghai Yingheng Machinery Technology Co., Ltd Tianjin Yinghan Technology Co., Ltd. Shanghai Yingheng Machinery Technology Co., Ltd	HANNSA PRECISION SDN. BHD.(Malaysia Ying Han) YING HAN TECHNOLOGY LIMITED(Russia Ying Han) YING HAN TECHNOLOGY `（`USA`）`INC. YING HAN Technology Co., Ltd. YING HAN Technology Co., Ltd. Shanghai Yingheng Machinery Technology Co., Ltd Tianjin Yinghan Technology Co., Ltd.	1. 1. 1. 1. 1. 1. 1. 2. 2. 2. 3. 3. 3. 3.	Sales revenue Other payables Operating Costs Accounts Receivable Other payables Operating Costs Sales revenue Accounts Receivable Sales revenue Sales revenue Accounts Receivable Sales revenue Accounts Receivable Sales revenue Accounts Receivable	14,993 614 1,072 5,895 7 2,032 10,028 9,626 555 2,570 - 18,997 23,637 392 431	Pricing is based on the price agreed by both parties, and the credit terms are individually determined －－－－ Pricing is based on the price agreed by both parties, and the credit terms are individually determined － Pricing is based on the price agreed by both parties, and the credit terms are individually determined －	2 - - - - - 1 - - 3 1 - -

Note: There are the following three types of relationship with the trader, and the types of marking are as follows:

Parent company to subsidiary company.
Subsidiary to parent company.
Subsidiary to Subsidiary.
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YING HAN Technology Co., Ltd. And Subsidiaries Receivable from related parties amount to NT$100 million or more than 20% of the capital January 1 to December 31, 2023

Schedule VII	Schedule VII							Unit: Thousands of New Taiwan Dollars	Unit: Thousands of New Taiwan Dollars
No.	Name of trader	Business Dealing Company	Relationship	Amount of receivable due from related parties (Note 1)	Turnover Rate (Note 2)	Overdue amounts receivable from related parties		Amount recovered in Subsequent period	Amount of provision for losses
						Amount	Processingmethod
0	The Company	YING HAN TEKNOLOJI LTD. STI.(Turkey Ying Han)	Subsidiary	Account Receivable $ 42,659 Other Receivable 65,975	0.7129	$ -	NA	$ 11,131	-

Note 1: The account receivable, note receiveable, other receivables, etc. of the related parties are filled in respectively. Note 2: Turnover rate = sales to the related party/average account receivable, note receiveable and collections receivable from the related party.

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YING HAN Technology Co., Ltd. Main Shareholder’s information December 31, 2023

Schedule VIII

Name of the main shareholder	Share	Share
	Number of shares held	Percentage %
YING LIN INVESTMENT CO., LTD XIAO,CAI-YUN INVESTMENT CO., LTD HU CHUN CHIA HU BO XIANG	14,678,838 6,270,000 5,649,600 5,112,600	16.76% 7.16% 6.45% 5.83%

Note 1: The main shareholder information in this table is calculated by CHEP on the last business day at the end of the quarter, and the shareholders hold more than 5% of the company's ordinary shares that have been delivered without physical registration. The capital recorded in the company's consolidated financial report and the actual number of shares delivered without physical registration may be different or different due to the different basis of preparation and calculation.
Note 2: If the above-mentioned information is that the shareholder transfers the holdings to the trust, it is disclosed by the individual account of the trustor who opened the trust account opened by the trustee. As for insider equity declarations for shareholders who hold more than 10% of the shares in accordance with the Securities and Exchange Act, their shareholding includes their own shares plus the shares they have delivered to the trust and have the right to use the trust property, etc. For information on insider equity declarations, please refer to public information Observatory.
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AI assistant

YHT — Annual Report 2023

52408_rns_2023-11-13_09ef22ec-28f4-4c25-93ce-d983cd061751.pdf

YING HAN Technology Co., Ltd. and Subsidiaries

Consolidated Financial Statements Disclaimer

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Other Matter

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

YING HAN Technology Co., Ltd. and Subsidiaries CONSOLIDATED BALANCE SHEETS December 31, 2023 & 2022

YING HAN Technology Co., Ltd. and Subsidiaries Consolidated Statements of Comprehensive Income January 1 – December 31, 2023 & 2022

（ Continued ）

YING HAN Technology Co., Ltd. and Subsidiaries Consolidated Statements of Changes in Equity January 1 – December 31, 2023 & 2022

YING HAN Technology Co., Ltd. and Subsidiaries Consolidated Statements of Cash Flows

January 1 – December 31, 2023 & 2022

（ Continued ）

YING HAN Technology Co., Ltd. Notes to the Consolidated Financial Statements January 1 – December 31, 2023 & 2022

4. Basis of Consolidation

8. Investment properties

9. Goodwill

10. Intangible Assets

Financial assets measured at amortized cost.

(2) Financial Liabilities

Warranty

Revenue from sale of goods

15. Leases

16. Borrowing Costs

17. Government Grants

18. Employee Benefits

1) Short-term employee benefits

19. Share-based payment arrangements

Employee Stock Options

20. Taxation

(6) Cash and cash equivalents

Note and account receivable measured at amortized cost

Note receivable as of December 31, 2023

Note receivable as of December 31, 2022

Account receivable as of December 31, 2022

Year 2022

(8) Inventories

(9) Subsidiaries

Subsidiaries included in the consolidated financial report

(Continued)

(10) Property, plant and equipment

(12) Investment Property

(14) Other intangible assets

(15) Borrowings

(16) Other payable

(17) Liability provision- Current

(18) Retirement Benefit

2. Defined benefit plans

(20) Revenue

Sales of goods

7. Employee benefit

(22) Income Tax

(23) Net loss per share

(24) Company merger and acquisition

(25) Capital Risk Management

(26) Financial instruments

Sensitivity Analysis

b. Interest Rate Risk

Sensitivity Analysis

(27) Related party transactions

3. Purchase

10. Rental Agreement

11. Others

12. Salary of management

(28) Pledged assets

(29) Foreign currency with significant impact and liabilities

December 31, 2023

(Continued)

(30) Other disclosures

(31) Segment Information

2. Main customer information

YING HAN Technology Co., Ltd. and Subsidiaries Funds Lent to Others

Schedule I

YHT Annual Report 2023