YP - Audit Report / Information 2023

Stock Code: 2023

YIEH PHUI ENTERPRISE CO., LTD . STANDALONE FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 AND INDEPENDENT AUDITORS’ REPORT

Address: No. 369, Yuliao Road, Qiaotou District, Kaohsiung City Tel: (07) 611-7181

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Item	Page
1. Cover	1
2. Table of Contents	2
3. Independent Auditors’ Report	3
4. Standalone Balance Sheets	4
5. Standalone Statements of Comprehensive Income	5
6. Standalone Statements of Changes in Equity	6
7. Standalone Statements of Cash Flows	7
8.Notes to Standalone Financial Statements
(1) General Information	8
(2) The Authorization of the standalone Financial Statements	8
(3) Application of New and Amended Standards and Interpretations	8~12
(4) Summaryof Significant AccountingPolicies	12~25
(5) Critical Accounting Judgments, Estimates and Major Sources of Assumption Uncertainty	25~27
(6) Details of Significant Accounts	27~62
(7) Related PartyTransactions	62~72
(8) Pledged Assets	72
(9) Significant Contingent Liabilities and Unrecognized Contract commitments	72~73
(10) Significant Disaster Loss	73
(11) Significant Subsequent Events	73
(12) Others	73~82
(13) SupplementaryDisclosures	83
A. Significant transactions information	84~93
B. Information on investees	94~99
C. Information on investments in Mainland China	100~101
D. Major Shareholders	102
(14)Segment information	103
9. Statements of major accountingitem	104~130

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國富浩華聯合會計師事務所 Crowe (TW) CPAs 8 0250 高雄市苓雅區四維三路 6 號 27 樓之 1 2 7F-1., No.6, Si w ei 3rd Rd., L ingya Dist., K aohsiung City 80250, Taiwan T el +886 7 3312 1 33 F ax +886 7 3331 7 10 w ww.crowe.tw

Independent Auditors’ Report To the B o ard of Dir e ctors and Sharehol d ers Yieh Phu i Enterpris e Co., Ltd.

Opinion

We have audited th e accomp a nying sta n dalone ba l ance shee t s of Yieh Phui Ent e rprise Co. , Ltd. (the “ Compan y ") as of December 31, 2023 a n d 2022, a n d the sta n dalone st a tements o f compreh e nsive inc o me, chan g es in equi t y and cas h flows fo r the year s then end e d, and th e notes to t h e standal o ne financ i al statem e nts, inclu d ing a su m mary of s i gnificant a ccountin g policies.

In our op i nion, bas e d on our a udits and the report of the ot h er indepe n dent accountants, a s described in the ot h er matters section o f our repo r t, the acc o mpanyin g standalo n e financia l statement s present f airly, in a ll materi a l respects, the standalone fin an cial posi t ion of th e Company as of December 31, 2023 and 2022, an d its standalone finan c ial performance an d its stand a lone cash flows fo r the year s then en d ed in ac c ordance w ith the R egulation s Governin g the Prep a ration of F inancial R eports by Securities Issuers.

Basis for Opinion

We cond u cted our audits in accordan c e with t h e Regula t ions Gov e rning A u diting an d Attestatio n of Fina n cial State m ents by C ertified P ublic Ac c ountants a nd the St a ndards o n Auditing of the Re p ublic of C hina. Ou r responsi b ilities un d er those s tandards are furthe r described in the A uditors' R esponsib i lities for the Audi t of the s tandalone Financia l Statemen t s section o f our rep o rt. We a r e indepen d ent of th e Compan y in accor d ance wit h the Nor m of Professional Eth i cs for Ce r tified Pu b lic Accou n tant of t h e Republic of Chin a and we have ful f illed our other e th ical res p onsibiliti e s in acc o rdance w ith thes e requirem e nts. Base d on our a udits an d the repo r t of othe r indepen d ent acco u ntants, w e believe t h at the au d it evidenc e we have obtained i s sufficie n t and ap p ropriate t o provide a basis for o ur opinio n .

Key Audit Matters

Key audit matters are those matters t h at, in o u r professional judg m ent, we r e of mos t significa n ce in our a udit of th e standalo n e financial statemen t s for the y ear ended Decembe r 31, 2023 . These m atters we r e address e d in the context o f our au d it of the standalon e financial s tatement s as a whole and, in forming o ur opinio n thereon, we do no t provide a separate o pinion on these matters.

Key audi t matters f o r the Company's sta n dalone fi n ancial sta t ements fo r the year e nded Decembe r 31, 2023 are stated as follows:

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Revenue recognition

Please refer to Note 4.17 to the standalone financial statements for the accounting policy on revenue recognition; Note 5.1.(1) for major accounting estimates and assumptions of revenue recognition; and Note 6.25 for the details of revenue recognition.

Description of key audit matter

Due to fierce competition in the industry, the Company may be affected by the growth of its performance and competition in the same industry, which increases the risk of recognition of operating income. Therefore, we determined the revenue recognition for those product lines and customers with significant sales increase in 2023 as a key audit matter.

How the matter was addressed in our audit

(1) Understand and test the internal controls related to the validity of revenue recognition from customer.
(2) Obtain detailed sales revenue data from the specific customers mentioned above, and select samples to review shipping documents. Verify whether the payer and the amount of payment match the sales targets and revenue amounts recognized to verify the validity of sales revenue.

Valuation of inventory

Please refer to Note 4.7 to the standalone financial statements for the accounting policy on inventories; Note 5.2.(6) for major accounting estimates and assumptions of inventories; and Note 6.6 for inventory valuation.

Description of key audit matter

The Company's inventory amounted to $4,102,484 thousand as of December 31, 2023, which accounted for 8.48% of total assets. The inventory valuation is measured at the lower of inventory cost and net realizable value. Given that the valuation of net realizable value of inventory has a significant impact on critical judgments and estimates and since inventory valuation is dependent on the influence of drastic fluctuations of international metal price, we have thus included this item in the key audit matters.

How the matter was addressed in our audit

Our key audit procedures included obtaining management’s assessment data which determines the lower of inventory cost and net realizable value; sampling estimated selling prices to the most recent sales records; and assessing the appropriateness of management's basis for estimating the net realizable value.

Other Matters

We did not audit the financial statements of certain associates accounted for using equity method. Those financial statements were audited by the other independent accountants, whose reports thereon have been furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included in the standalone financial statements was based solely on the reports of the other independent accountants. Investments in these associates amounted to $3,950,325 thousand and $4,992,602 thousand, representing 8.17% and 9.84% of total standalone assets as of December 31, 2023 and 2022, and the share of profit of these associates accounted for using equity method amounted to ($344,126) thousand and ($69,439) thousand, representing 32.15% and (6.19%) of total standalone income before

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income tax for the years then ended, respectively. In addition, the share of other comprehensive income of these associates accounted for using equity method amounted to $7,500 thousand and $101,519 thousand, representing 6.39% and 27.96% of total standalone comprehensive income for the years then ended, respectively.

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

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

In preparing the standalone 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 the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone 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 also:

Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

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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 standalone 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 standalone financia1 statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the company 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 ethica1 requirements regarding independence, and to communicate with them all re1ationships 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 standalone financial statements for the year ended December 31, 2023 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.

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The engagement partners on the audit resulting in this independent auditors’ report are Jen Yao Hsieh and Shu Man Tsai.

Crowe (TW) CPAs Kaohsiung, Taiwan Republic of China March 7, 2024

Notice to Readers

The accompanying parent company only financial statements are intended only to present the 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 practices to audit such financial statements are those generally accepted and applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying parent company only 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 parent company only financial statements shall prevail.

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YIEH PHUI ENTERPRISE CO., LTD STANDALONE BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

December 31,2023 Amount % $1,797,422 4 34,668 - 590,209 1 579 - 1,550,617 3 210,307 - 460,742 1 1,051,837 2 4,102,484 9 245,111 1 - - 10,043,976 21 779,160 2 29,551,250 60 6,377,333 13 273,467 1 - - 591,020 1 737,157 2 306 - 38,309,693 79 $48,353,669 100	December 31,2022	December 31,2022
Amount $1,797,422 34,668 590,209 579 1,550,617 210,307 460,742 1,051,837 4,102,484 245,111 - 10,043,976 779,160 29,551,250 6,377,333 273,467 - 591,020 737,157 306 38,309,693 $48,353,669	Amount $2,133,667 33,914 228,625 1,746 747,316 485,683 80,641 2,302,740 4,269,507 297,919 30,710 10,612,468 732,973 31,182,726 6,696,259 287,096 - 437,914 782,097 304 40,119,369 $50,731,837	%
		4 - - - 1 1 - 5 9 1 -
		21
		1 61 13 1 - 1 2 -
		79
		100

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December31,2023 Amount % $6,177,256 13 998,681 2 521,161 1 481,914 1 485,514 1 684,108 1 137,624 - 53,640 - 11,645 - 1,720,054 4 11,271,597 23 7,155,226 16 188,286 - 172,569 - 2,000 - 7,518,081 16 18,789,678 39 19,491,710 40 4,747,823 10 3,488,666 7 822,369 2 1,825,120 4 (753,044) (2) (58,653) -	December31,2023 Amount % $6,177,256 13 998,681 2 521,161 1 481,914 1 485,514 1 684,108 1 137,624 - 53,640 - 11,645 - 1,720,054 4 11,271,597 23 7,155,226 16 188,286 - 172,569 - 2,000 - 7,518,081 16 18,789,678 39 19,491,710 40 4,747,823 10 3,488,666 7 822,369 2 1,825,120 4 (753,044) (2) (58,653) -	December31,2022	December31,2022
Amount $6,177,256 998,681 521,161 481,914 485,514 684,108 137,624 53,640 11,645 1,720,054 11,271,597 7,155,226 188,286 172,569 2,000 7,518,081 18,789,678 19,491,710 4,747,823 3,488,666 822,369 1,825,120 (753,044) (58,653)		Amount $5,949,747 698,755 184,494 312,774 435,057 677,828 389,744 54,148 12,314 1,377,909 10,092,770 8,572,649 196,976 284,574 2,000 9,056,199 19,148,969 19,850,980 4,927,302 3,393,805 785,047 3,582,001 (822,369) (133,898)	%
			12 1 - 1 1 1 1 - - 3
			20
			17 - 1 -
			18
			38
			39 10 6 2 7 (2) -
29,563,991 $48,353,669	61 100	31,582,868 $50,731,837	62
			100

The accompanying notes are an integral part of the standalone financial statements.

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YIEH PHUI ENTERPRISE CO., LTD.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Note	Year Ended	Year Ended	December 31
	2023		2022
	Amount	%	Amount	%
6(25) 6(6) 6(27) 6(28) 6(29) 6(30) 6(31) 6(32) 6(33) 6(33)	$24,660,661 (22,611,234)	100 (92)	$33,544,528 (29,703,362)	100 (89)
	2,049,427 (1,140,020) (373,971)	8 (4) (2)	3,841,166 (1,621,875) (395,810)	11 (5) (1)
	(1,513,991)	(6)	(2,017,685)	(6)
	535,436	2	1,823,481	5
	49,359 546,124 42,739 (430,493) (1,813,427)	- 2 - (2) (6)	11,948 233,915 347,731 (372,928) (921,505)	- 1 1 (1) (3)
	(1,605,698)	(6)	(700,839)	(2)
	(1,070,262) (11,325)	(4) -	1,122,642 (313,135)	3 (1)
	(1,081,587)	(4)	809,507	2
	54,801 58,823 140,602 (10,960) (157,858) 31,960	- - 1 - (1) -	87,221 (88,481) (84,454) (17,444) 511,016 (44,723)	- - - - 1 -
	117,368	-	363,135	1
	($964,219)	(4)	$1,172,642	3
	($0.55)		$0.41
	($0.55)		$0.41

The accompanying notes are an integral part of the standalone financial statements.

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YIEH PHUI ENTERPRISE CO., LTD. STANDALONE STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

Common Stock	Capital Surplus		Retained Earnings			Other EquityItem		TreasuryStock $ - - - - - - - - - (133,898) -	Total Equity
		Legal Reserve	Special Reserve	Unappropriated Earnings (Accumulated Deficits)	Exchange Differences on Translating Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Gain (loss) on Hedginginstruments
$18,905,695 - - - 945,285 - - -	$4,928,849 - - - - (1,547) - -	$2,882,426 511,379 - - - - - -	$706,593 - 78,454 - - - - -	$5,113,787 (511,379) (78,454) (945,285) (945,285) (1,803) 809,507 152,542	($1,426,033) - - - - - - 461,886	$386,525 - - - - - - (255,700)	$6,546 - - - - - - 4,407		$31,504,388 - - (945,285) - (3,350) 809,507 363,135
-	-	-	-	962,049	461,886	(255,700)	4,407		1,172,642
- -	- -	- -	- -	- (11,629)	- -	- -	- -		(133,898) (11,629)
19,850,980 - - - - - -	4,927,302 - - - - - -	3,393,805 94,861 - - - - -	785,047 - 37,322 - - - -	3,582,001 (94,861) (37,322) (592,759) 1,605 (1,081,587) 71,078	(964,147) - - - - - (127,624)	130,825 - - - - - 172,188	10,953 - - - - - 1,726	(133,898) - - - - - - - (464,306) 125 539,426 - - ($58,653)	31,582,868 - - (592,759) 1,605 (1,081,587) 117,368
-	-	-	-	(1,010,509)	(127,624)	172,188	1,726		(964,219)
- - (359,270) - -	- - (180,156) 677 -	- - - - -	- - - - -	- - - - (23,035)	- - - - -	- - - - 23,035	- - - - -		(464,306) 125 - 677 -
$19,491,710	$4,747,823	$3,488,666	$822,369	$1,825,120	($1,091,771)	$326,048	$12,679		$29,563,991

The accompanying notes are an integral part of the standalone financial statements.

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YIEH PHUI ENTERPRISE CO., LTD. STANDALONE STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

Item	Year Ended December 31	Year Ended December 31
	2023	2022
1.CASH FLOWS FROM OPERATING ACTIVITIES Income (loss) before income tax Adjustments to reconcile profit (loss) Depreciation Net loss (gain) on financial assets and liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of loss (gain) of associates, subsidiaries and joint ventures Loss (gain) on disposal and retirement of property, plant and equipment Loss (gain) on disposal of Investments accounted for using equity method Other income recognized from rent concessions Others Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities Net changes in operating assets: Decrease (increase) in financial assets at fair value through profit or loss Decrease (increase) in contract assets Decrease (increase) in notes receivable Decrease (increase) in accounts receivables Decrease (increase) in accounts receivables - related parties Decrease (increase) in other receivables Decrease (increase) in inventories Decrease (increase) in prepayments Total net changes in operating assets Net changes in operating liabilities: Increase (decrease) in contract liabilities Increase (decrease) in notes payable Increase (decrease) in accounts payable Increase (decrease) in other payables Increase (decrease) in provisions Increase (decrease) in net defined benefit liability Total net changes in operating liabilities Total net changes in operating assets and liabilities Total adjustments Cash generated from (used in) operations Interest received Dividends received Interest paid Income tax paid Net cash generated from (used in) operating activities	($1,070,262) 527,442 (1,451) 430,493 (49,359) (47,370) 1,813,427 13,580 - - (97)	$1,122,642 516,228 5,087 372,928 (11,948) (6,191) 921,505 9,964 (122) (20) (5,840)
	2,686,665	1,801,591
	697 (362,209) 1,173 (804,267) 276,961 (400,882) 167,023 52,808	3,642 (158,569) 5,121 175,203 (228,403) 164,711 3,296,307 115,636
	(1,068,696)	3,373,648
	336,667 169,140 50,457 26,709 (508) (57,204)	(1,724,494) (142,600) (334,831) (139,259) (30,543) (61,723)
	525,261	(2,433,450)
	(543,435)	940,198
	2,143,230	2,741,789
	1,072,968 48,456 63,957 (421,500) (395,551)	3,864,431 11,165 61,193 (361,330) (777,296)
	368,330	2,798,163

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Item	Year Ended December 31	Year Ended December 31
	2023	2022
2.CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income and loss Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of investments accounted for using equity method Proceeds from disposal of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Decrease in refundable deposits Increase inOther receivables - related parties Proceeds from disposal of investment properties Decrease in other financial assets Net cash generated from (used in) investing activities 3.CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term loans Increase in short-term notes and bills payable Increase in long-term loans Repayment of long-term loans Repayments of principal of lease liabilities Cash dividends paid Payments for buy-back of treasury shares Discount on buy-back of treasury shares Net cash generated from (used in) financing activities 4.NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5.CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 6.CASH AND CASH EQUIVALENTS AT END OF PERIOD	(1,135) 13,771 (197,114) - (226,222) 755,233 - 44,940 (544,000) 1,044,767 30,708	(54,718) 26,184 (565,532) 3,800 (332,247) 320,989 (236,172) - (470,000) 445,545 24,147
	920,948	(838,004)
	227,509 300,000 400,000 (1,482,951) (13,141) (592,759) (464,306) 125	185,611 50,000 540,000 (427,459) (10,741) (945,285) (133,898) -
	(1,625,523)	(741,772)
	(336,245) 2,133,667	1,218,387 915,280
	$1,797,422	$2,133,667

The accompanying notes are an integral part of the standalone financial statements.

－－ 7-1

YIEH PHUI ENTERPRISE CO., LTD. NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Amounts In Thousands of New Taiwan Dollars, Unless specified Otherwise)

1 GENERAL INFORMATION

1.1 Yieh Phui Enterprise Co., Ltd. (hereinafter referred to as the Company) was established in April 1978, currently a listed company in Taiwan Stock Exchange (hereafter referred to as TWSE). The Company engages mainly in the processing, manufacturing marketing and import/export trading of rolled steel coils, refined steel, molded steel, steel/iron wires, galvanized/pre-painted/surface-treated metals.
1.2 The Company’s Board of Directors resolved on May 23, 2005 to merge (simplified merger) with Lien Kang Heavy Industrial Co., Ltd, with the Company as the surviving company. The record date of the merger was set on August 30, 2005. Every 2.5 common shares of Lien Kang Heavy Industrial Co., Ltd. were converted into 1 common share of the Company. The Company issued additional 4,859 thousand common shares for this merger. Rights and obligations of holders of the newly issued shares were the same as those of the Company’s original shareholders.
1.3 Lien Kang Heavy Industrial Co., Ltd., incorporated on November 23, 1989, mainly engages in manufacturing, processing and trading of the various mechanical spare parts, as well as pipe installation and engineering design /manufacture / installation.
1.4 The Company's steel pipe department, due to its business expansion, was separated from the Company, and was named as Shin Yang Steel Co., Ltd.. Relevant investment on this was approved by the Board of Directors on January 18, 2011, and a total of 191 employees were transferred to Shin Yang Steel Co., Ltd.
1.5 These standalone financial statements are presented in the Company’s functional currency, New Taiwan Dollars.
2 THE AUTHORIZATION OF THE STANDALONE FINANCIAL STATEMENTS
The accompanying standalone financial statements were approved and authorized for issue by the Board of Directors on March 7, 2024.

3 APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

(1) Effect of adoption of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

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

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Effective Date Announced New IFRSs by IASB Amendments to IAS 1 “Disclosure of Accounting Policies” January 1, 2023 (Note 1) Amendments to IAS 8 “Definition of Accounting January 1, 2023 (Note 2) Estimates” Amendment to IAS 12 “Deferred Tax Related to Assets January 1, 2023 (Note 3) and Liabilities Arising from a Single Transaction” － Amendments to IAS 12 “International Tax Reform (Note 4) Pillar Two Model Rules”

Note 1: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 2: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 3: Except for otherwise specified with for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.
Note 4: As a temporary exception under IAS 12, the group shall not recognize deferred income tax assets and liabilities related to Pillar Two income tax, nor shall it disclose their related information. However, the group shall disclose in its financial report that it has already applied this exception. The group shall apply this part of the amendment retrospectively in accordance with IAS 8 since its issuance date (i.e. May 23, 2023). The group shall apply the remaining disclosure requirements for the annual reporting periods beginning on or after January 1, 2023 and needs not to disclose such information in its interim reports with a reporting dates ending before or on December 31, 2023.
A. Amendments to IAS 1 “Disclosure of Accounting Policies”
This amendment clarifies that when the size or nature of a transaction, other event or condition is material, and the related accounting policy information is also material to the financial report, the related material accounting policy information shall be disclosed. Conversely, if the company determines that the size or nature of a transaction, other event or condition is not material, or that the size or nature of a transaction is material but the related accounting policy information is not material, it does not need to disclose those immaterial accounting policy information. However, the company’s conclusion that accounting policy information is immaterial does not affect the relevant disclosures required by other IFRS standards.
B. Amendments to IAS 8 “Definition of Accounting Estimates” This amendment defines accounting estimates as the monetary amount of financial statements subject to measurement uncertainty, and provides further explanations that, except for corrections due to errors in the previous period, the impact of changes in input values or measurement techniques on accounting estimates is a change in accounting estimates.

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C. Amendment to IAS 12 “Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction”
The amendments narrow the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. When the Company initially applies the amendments, it will recognize the cumulative effect of applying the amendments initially as an adjustment to the opening balance of the retained earnings (or other components of equity, as appropriate) at the beginning of the earliest presented period for all deductible and taxable temporary differences associated with leases and decommissioning, and will prospectively apply the amendments for other transactions occurred on or after January 1, 2022.

As of the date the accompany consolidated financial statements are authorized for issue, the Company is still evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.

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D. Amendments to IAS 12 “International Tax Reform Pillar Two Model Rules
The amendments stipulates that, as a temporary exception to IAS 12, Company shall neither recognize nor disclose information about deferred income tax assets and liabilities for Pillar Two income tax relating to international tax reform; however, Company shall disclose in its financial reports that it has applied this exception. In addition, Company shall separately disclose its current income tax expenses (benefits) relating to Pillar Two income tax. If the Pillar Two bill has been enacted or has been substantively enacted but has not yet taken effect, Company should disclose qualitative and quantitative information on its exposure to Pillar Two income tax that is known or can be reasonably estimated.

The Company has evaluated the aforementioned standards and interpretations, and there is no significant effect on the Company’s financial position and performance.

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

New standards, interpretations and amendments endorsed by the FSC and effective from 2024 are as follows:

from 2024 are as follows:
	Effective Date Announced by
New IFRSs	IASB
Amendments to IFRS 16 "Lease liabilities in sale and	January 1, 2024 (Note 1)
leaseback"
Amendments to IAS 1 “Classification of Liabilities as	January 1, 2024
Current or Noncurrent”
Amendments to IAS 1 “Non-current Liabilities with	January 1, 2024
Covenants "
Amendments to IAS 7 and IFRS 7 “Supplier finance	January 1, 2024 (Note 2)
arrangements "

Note 1: The seller-lessee shall apply the amendments retroactively in accordance with IAS 8 for the sale and leaseback transactions made after the initial application of IFRS 16.

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Note 2: This amendment provides certain transitional reliefs. When initially applying the amendment, Group are not required to disclose comparative information and interim period information, as well as opening information required by paragraph 44H(b)(ii)-(iii).
A. Amendments to IFRS 16 "Lease liability in a sale and leaseback" This amendment clarifies that for a sale and leaseback transaction, if the transfer of the asset is treated as a sale in accordance with IFRS 15, the liabilities incurred by the seller and lessee due to the leaseback should be treated in accordance with IFRS 16 regarding lease liabilities; however, if variable lease payments that do not depend on an index or rate are involved, the seller-lessee should still determine and recognize the lease liability arising from such variable payments in a manner that does not recognize gains and losses related to the retained right of use. The difference between the subsequent actual lease payment amount and the reduced carrying amount of the lease liability is recognized in profit or loss.
B. Amendments to IAS 1 “Classification of Liabilities as Current or Noncurrent " The amendments clarify that when the Company determines whether a liability is classified as noncurrent, the Company should assess whether the Company has the right to defer the settlement for at least twelve months after the reporting period. If the Company has that right on the end of reporting period, that liability must be classified as non-current regardless whether the Company expects whether to exercise the right or not. If the Company must follow certain conditions to have the right to defer the settlement of a liability, the Company must have followed those conditions on the end of reporting period in order to have that right even if the lender tests the Company’s compliance on a later date.
The aforementioned settlement means transferring cash, other economic resources or the Company’s equity instruments to the counter-party to extinguish the liability. If the terms of the liability give the counterparty an option to extinguish the liability by the Company’s equity instruments, and this option is recognized separately in equity in accordance with IAS 32 “Financial Instruments: Presentation” then the classification of the liability will not be affected.
C. Amendment to IAS 1 “Non-current Liabilities with Covenants " This amendment further clarifies that only contractual terms that are required to be complied with before the end of the reporting period will affect the classification of the liability at that date. The contractual terms that required to be complied with within 12 months after the reporting period do not affect the classification of liabilities at the reporting date. However, for liabilities classified as non-current and must be repaid within 12 months after the reporting period due to potential non-compliance, the relevant facts and circumstances should be disclosed in the notes.
D. Amendments to IAS 7 and IFRS 7 “Supplier finance arrangements " Supplier financing arrangements involve one or more financing providers making payments to suppliers on behalf of Company, and Company agrees to repay the financing providers on the payment date agreed with the suppliers or a later date. The amendments to IAS 7 require Company to disclose information on its supplier financing arrangements to enable users of financial statements to assess the impact of these arrangements on Company 's liabilities, cash flows and exposure to liquidity. The amendments to IFRS 7 include into its application

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guidance that when disclosing how Company manages the liquidity risk of its financial liabilities, it may also consider whether it has obtained or can obtain financing facilities through supplier financing arrangements, and whether these arrangements may cause concentration of liquidity risk.

The Company has evaluated the aforementioned standards and interpretations, and there is no significant effect to the Company’s financial position and performance.

(3) Effect of the IFRSs issued by IASB but not yet endorsed and issued into effect by FSC:

FSC:
	Effective Date Announced by
New IFRSs	IASB
Amendments to IFRS 10 and IAS 28 “Sale or Contribution	To be determined by IASB
of Assets between an Investor and its Associate or Joint
Venture”
IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendments to IFRS 17 “Initial application IFRS 17 and	January 1, 2023
IFRS 9 – Compare Information”
Amendments to IFRS 21 " Lack of Exchangeability "	January 1, 2025

As of the date the accompany standalone financial statements are authorized for issue, the Company is still evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

4.1 Statement of Compliance

The accompanying standalone financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

4.2 Basis of Preparation

(1) Except for the following items, the standalone financial statements have been prepared under the historical cost convention:
A. Financial assets and financial liabilities at fair value through profit or loss (including derivative instruments).
B. Financial assets and liabilities measured at fair value through other comprehensive income.
C. Liabilities on cash-settled share-based payment arrangements measured at fair value.
D. Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

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(2) The preparation of the standalone financial statements in conformity with the IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the standalone financial statements are disclosed in Note 5.
(3) When preparing the standalone financial statements, the Company account for subsidiaries, associates and joint ventures by using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the standalone financial statements, the differences of the accounting treatment between the standalone basis and the consolidated basis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries, associates and joint ventures and share of other comprehensive income of subsidiaries, associates and joint ventures in the standalone financial statements.

4.3 Foreign Currencies

(1) Foreign currency transactions and balance
A. Foreign currency transactions are translated into the functional currency using the exchange rates on the trade dates or measurement date. Therefore, foreign exchange differences resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.
B. Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.
C. 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.
(2) Translation of foreign operations
A. The operating results and financial position of all the Company’s subsidiaries, associates and joint ventures that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
- (a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
- (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
- (c) All resulting exchange differences are recognized in other comprehensive income.

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B. When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Company retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.
C. When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Company retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

4.4Classification of Current and Noncurrent Assets and Liabilities

(1) Steel Department

A. Assets that meet one of the following criteria are classified as current assets:
a. Assets that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;
b. Assets held primarily for trading purposes;
c. Assets that are expected to be realized within 12 months after the balance sheet date;
d. Cash and cash equivalents, excluding those that are restricted, or to be exchanged or used to settle liabilities at least twelve months after the balance sheet date.

Otherwise they are classified as non-current assets.

B. Liabilities that meet one of the following criteria are classified as current liabilities:
- a. Liabilities that are expected to be settled within the normal operating cycle;
- b. Assets held primarily for trading purposes;
- c. Liabilities that are expected to be settled within 12 months after the balance sheet date. (Even if a long-term refinancing or re-arrangement of payment agreements is completed after the balance sheet date and before the issuance of the financial report is approved, it is classified as current liabilities).
- d. Liabilities for which the repayment date cannot be extended unconditionally to more than 12 months after balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
- Otherwise they are classified as non-current liabilities
(2) Heavy Industry Department

The business cycle of the majority of the construction contracts is longer than 12 months. As a result, assets and liabilities related to the construction contracts are classified as current or non-current assets and liabilities according to the business cycle.

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4.5 Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value (including the original maturity of the time deposits within three months).

4.6 Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

(1) Financial assets
The Company adopts trade-date accounting to recognize and derecognize financial assets.
A. Category of financial assets and measurement
- Financial assets are classified into the following categories: financial assets at FVTPL, financial assets at amortized cost, and investments in equity instruments at FVTOCI.
- a. Financial asset at FVTPL
  - Financial asset is classified as at FVTPL when the financial asset is mandatorily classified or it is designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria. Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss does not incorporate any dividends or interest earned on such a financial asset. Fair value is determined in the manner described in Note 12(3).
- b. Financial assets at amortized cost
  - Financial assets that meet the following conditions are subsequently measured at amortized cost:
  - (a) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
  - (b) The contractual terms of the financial assets give rise on specified date to cash flow that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortized cost, which equals to gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss. Except for the following two cases, interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset.

(a) Purchased or originated credit-impaired financial assets: for those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

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  - (b) Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets: for those financial assets, the Company shall apply the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

c. Investments in equity instruments at FVTOCI
- On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.
- Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, they will be transferred to retained earnings.
- Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the Company’s right clearly represent a recovery of part of the cost of the investment.
B. Impairment of financial assets
a. At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable), investments in debt instruments that are measured at FVTOCI, lease receivable and contract assets.
b. The Company always recognizes lifetime Expected Credit Loss (i.e. ECL) for accounts receivables. For other financial assets, the Company recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equaling to 12-month ECL.
c. Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. In contrast, lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.
d. The Company recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.
C. Derecognition of financial assets
The Company derecognises a financial asset when one of the following conditions is met:
a. The contractual rights to receive cash flows from the financial asset expire.

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b. The contractual rights to receive cash flows from the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.
c. The Company neither retains nor transfers substantially all risks and rewards of ownership of the financial asset; however, it has not retained control of the financial asset.

On derecognition of financial asset at amortized cost in its entirety, the difference between the financial asset’s carrying amount and the sum of the consideration received is recognized in profit or loss. On derecognition of equity instruments at fair value through other comprehensive income in its entirety, the cumulative profit and loss will be transferred directly to retained earning without reclassified into profit and loss.

(2) Equity instruments

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

(3) Financial liabilities
A. Subsequent measurement
- All financial liabilities are measured at amortized cost using the effective interest method.
B. Derecognition of financial liabilities
- The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
(4) Modification of Financial instruments

When the contractual cash flows of a financial instrument are renegotiated or modified and the renegotiation or modification does not result in the derecognition of that financial instrument, the Company recalculates the gross carrying amount of the financial asset or the amortized cost of the financial liabilities using the original effective interest rate and recognises a modification gain or loss in profit or loss. Any costs or fees incurred adjust the carrying amount of the modified financial instrument and are amortised over the remaining term of the modified financial instrument. If the renegotiation or modification results in that the derecognition of that financial instrument is required, then the financial instrument is derecognized accordingly.

4.7 Inventories

Inventories, under a perpetual system, are measured at the lower of cost and net realizable value. Cost is determined using the weighted average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying

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the lower of cost and net realizable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and costs necessary to make the sale.

4.8 Investments accounted for using equity method / subsidiaries and associates

(1) Subsidiary are all entities controlled by the Company (including structured entities) .The Company controls an entity when the Company is exposed, or variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
(2) Unrealized gains or losses resulting from inter-company transactions with subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the Company.
(3) The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognize its share in the subsidiary’s loss proportionately.
(4) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transaction with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.
(5) When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Company had directly disposed of the related assets or liabilities.
(6) Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for under equity method and are initially recognized at cost.
(7) The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

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(8) Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
(9) In the case where an associate issues new shares and the Company does not subscribe or proportionately acquire the new shares, which results in a change in the Company’s ownership percentage of the associate while maintains significant influence on the associate, then “Capital surplus” and “Investments accounted for using under the equity method” shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.
(10)When the Company disposes of its investment in an associate, if it loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
(11)According to “Regulations Governing the Preparation of Financial Statements by Securities Issuers”, profit for the year and other comprehensive income for the year reported in the standalone financial statement, shall equal to profit for the year and other comprehensive income attributable to owners of the parent reported in the standalone financial statements, equity reported in the standalone financial statements shall equal to equity attributable to owners of parent reported in the standalone financial statements.

4.9 Property, Plant and Equipment

(1) Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized. For property, plant and equipment under construction, sample produced from testing whether the asset is functioning properly before its intended use are measured at lower of the costs or net realizable value. Proceeds from selling such an item and the cost of the item are recognized in profit or loss.
(2) Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repair and maintenance is recognized in profit or loss as incurred.

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(3) Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each end of reporting year. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change.

The estimated useful lives of property, plant and equipment are as follows: Buildings Main plants 40 to 44 years Main office buildings 40 to 60 years Other accessory equipment 8 to 35 years Machinery and equipment 2 to 53 years Other equipment 3 to 33 years

(4) 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 asset. 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.

4.10 Leases

The Company assesses whether the contract is (or includes) a lease at the date of the contract.

(1) The Company as lessee

Except for payments for low-value asset and short-term leases which will be recognized as expenses on a straight-line basis, the Company will recognize right-of-use assets and lease liabilities for all leases at the inception of lease. Right-of-use asset

The right-of-use asset is initially measured at cost (including the initial measurement amount of the lease liability, the payments less incentives, initial direct costs and the estimated recover cost), the subsequent measurement is based on the cost less accumulated depreciation and accumulated impairment loss, and adjusting the amount of re-measures of lease liabilities.

The right-of-use asset recognized depreciation is using the straight-line basis from the date of the lease until the expiration of the useful life or the expiration of the lease term, the depreciation is provided that the title of the underlying asset will be acquired at the end of the lease period or, if the cost of the right-ofuse asset reflects the execution of the purchase option Lease liability

The lease liability is initially measured by the present value of the lease payment (including fixed payment, substantive fixed payment, change in lease payment depending on the index or rate, etc.). If the implied interest rate on the lease is easy to determine, the lease payment is discounted using that interest rate. If the interest rate is not easy to determine, the lessee's increase borrowing rate is used. If the lease period, the evaluation of the purchase choice, the amount of expected to be paid under the residual value guarantee or the change in the index or rate

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used to determine the lease payment result in a change in the future lease payment, the Company will measure the lease liability and adjust the right to use assets relatively. If the carrying amount has been reduced to zero, the remaining amount will recognize in the profit and loss. Lease liabilities are presented in a single-line project on the standalone balance sheet.

Lease payments in lease agreements that do not depend on the index or rate are recognized as expenses in the period in which they occur.
(2) The Company as lessor
Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

4.11 Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes) and include land held for a currently undetermined future use.
Investment properties are initially measured at cost, including transaction costs, and subsequently measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.
Investment properties under construction are stated at cost less accumulated impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Depreciation of these assets commences when the assets are ready for their intended use.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

4.12 Impairment of non-financial assets

The Company assesses at the end of reporting period the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. When the indication of impairment loss recognized in prior years for an asset other than goodwill no longer exists, the impairment loss is reversed to the extent of the loss previously recognized in profit or loss.

4.13 Provisions

Provisions (including short-term employee benefits, and onerous contracts) are recognized when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date. The discount rate (or rates) shall be a pre-tax rate (or rates) that reflect(s) current market assessments of the time value of money and the risks specific to the liability. Where

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discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognized as interest expense. Provisions are not recognized for future operating losses.

4.14 Employee benefits

Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expenses in that period when the employees render service.

Pensions

(1) Defined contribution plans
For defined contribution plans, the contributions are recognized as pension expenses when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund from the plan or a reduction in future contributions to the plan.
(2) Defined benefit plans
a. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior period. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The discount rate is determined by using the interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the defined benefit plans.
b. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.
c. Past-service costs are recognized immediately in profit or loss.
(3) Employees’ compensation and directors’ and supervisors’ remuneration Employees’ compensation and directors’ and supervisors’ remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal or constructive obligations and those amounts can be reliably estimated. Any difference between the amount accrued and the amount actually distributed is accounted for a change in accounting estimate.
(4) Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of an employee’s employment as a result of either the Company’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of benefits in exchange for the termination of employment. The Company recognizes expense when it can no longer withdraw an offer of termination benefits or when it recognizes related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date are discounted to their present value.

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4.15 Share capital and treasury shares

(1) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are recognized in equity as a deduction from the proceeds.

(2) Treasury Shares

The Company’s treasury shares that have not been disposed or retired are stated at cost and shown as a deduction in stockholders’ equity. When treasury shares are sold, if the selling price is above the book value, the difference is credited to the capital surplus–treasury share transactions; if the selling price is below the book value, the difference is first offset against capital surplus from the same class of treasury share transactions, and the remainder, if any, is then debited to retained earnings. The carrying value of treasury shares is calculated using the weighted-average approach in accordance with the purpose of repurchase. Upon retirement, treasury shares are derecognized against the capital surplus - premium on stocks and capital stock proportionately according to the ratio of shares retired. The carrying value of treasury shares in excess of the sum of the par value and premium on stocks is first offset against capital surplus from the same class of treasury share transactions, and the remainder, if any, is then debited to retained earnings. The sum of the par value and premium on treasury shares in excess of the carrying value is credited to capital surplus from the same class of treasury share transactions.

4.16 Income tax

(1) The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.
(2) The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
(3) Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred

－23－

tax liability is settled.

(4) Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred income tax assets are reassessed.
(5) Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.
(6) A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

4.17 Revenue Recognition

The Company recognizes revenue from contracts with customers in accordance with the principles and steps as stated below:

(1) Identify the contract with the customer;
(2) Identify the performance obligations in the contract;
(3) Determine the transaction price;
(4) Allocate the transaction price to the performance obligations in contracts; and
(5) Recognize revenue upon satisfaction of performance obligations.

The Company does not adjust the transaction price in a contract for the effects of a significant financing component, if the period between when the customer pays for the goods or services and when the entity transfers the goods or services is one year or less.

(1) Sale of goods

Sales revenue from goods mainly comes from the sales of galvanized steel coils and painted steel coils. Sales revenue is recognized when the control of goods is passed to customers. Since customers have obtained the right to set the price and make use of the goods and assumed the responsibility for resale and risks of obsolescence, the Company recognizes revenue and accounts receivable at such time point, presented as the net amount after deducting sales returns, discounts and allowance. When supplying materials for processing, control of the processed goods is not transferred, in which case it is not recognized as revenue.

(2) Service revenue
Service revenue is recognized when the service is rendered. Revenue from service rendered in accordance with contracts is recognized in proportion to the completion of a contract.

(3) Revenue from construction contracts

A real estate contract is a construction contract under which the real estate units have been controlled by customers in the process of construction, in which case

－24－

the Company recognizes revenue over time. Since construction costs are directly related to the stage of completion of performance obligations, the Company measures the stage of completion by the ratio of real costs incurred to date to total expected costs. The Company recognizes contract assets over the construction period, and transfers them to accounts receivables upon billing the customers. Where the construction proceeds received exceed the recognized amount, the difference is recognized as contract liability. Construction retainage, which is the amount withheld by customers in accordance with the contractual terms in order to assure that the Company will satisfy its contractual obligation, is recognized as a contract asset before the Company completes its performance obligation. If the outcome of the performance obligations cannot be measured reliably, construction revenue is recognized only to the extent of the expenses incurred for satisfaction of performance obligations that are expected to be recovered.

(4) Revenue from leases, dividends and interests
A. The rental revenue shall be recognized as revenue in the duration of the lease based on straight-line method.
B. Dividend revenue from investments is recognized when the rights of shareholders to receive payment are established, provided that the economic profits arising from such transaction are highly probable to flow to the Company and the amount of such benefits can be reliably measured.
C. Interest revenue is recognized based on outstanding principal and applicable effective interest according to passage of time on an accrual basis.

4.18 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of those assets until substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.

To the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset, the entity shall determine the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of those borrowings.

Except for those qualifying capitalization, all other borrowing costs are recognized as an expense in profit or loss as incurred.

5. CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND MAJOR SOURCES OF ASSUMPTION UNCERTAINTY

The Company takes into account the economic impact of changes in climates and related governmental policies and regulations on significant accounting estimates and reviews the basic assumptions and estimation on an ongoing basis. If a change in accounting estimate affects only the current period, the effect is recognized in the current period. If a change in accounting estimate affects both current and future periods, the effects are recognized in both periods.

In the preparation of the standalone financial statements, the critical accounting judgments the Company has made and the major sources of estimation and assumption uncertainty are described as follows:

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5.1 Critical judgements in applying accounting policies

(1) Revenue recognition

The Company follows IFRS 15 to determine if it controls the specified good or service before that good or service is transferred to the customer, and the Company is acting as a principal or an agent in that transaction. When the Company acts as an agent, revenue is recognized on a net basis.

The Company acts as a principal as that it meets one of the following situations:

A. The Company gains control over the goods from the other party before transferring goods to customers.
B. The Company controls the right of providing service by the other party in order to control the ability of the party to provide service to customers.
C. The Company gain control over goods or service from the other party in order to combine with other goods or services to provide specific goods or services to customers.

The indicators (not limited to) which assist making judgment on whether the Company controls the goods or services before transferring goods or services to customers:

A. The Company has primary responsibilities for the goods or services it provides;
B. The Company bears inventory risk before transferring the specific goods or services to customer, or after transferring the control to customer (for example, if the customer has the right to return).
C. The Company has the discretion to set prices.

(2) Lease term

In determining the lease term, the Company considers all the facts and circumstances that generate an economic incentive to exercise (or not exercise) the option, including all expected change of facts and circumstances from the inception of commencement to the exercise of the option. The considerations include the contract clause and conditions of the period covered by the option, the significant leasehold improvements made (or expected) during the contract period, and the importance of the underlying assets to the Company's operations. The lease period is reassessed when significant events or major changes occur within the control of the Company.

5.2 Critical accounting estimates and assumptions

(1) Estimated impairment of financial assets

The provision for impairment of trade receivables is based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

(2) Process of fair value measurement and evaluation

When the assets and liabilities at fair value with no active market, the Company determines whether to use outside appraisal and using proper evaluation techniques based on related regulation or its own judgment.

If the Level 1 input value is not available while evaluating, the Company refers to the analysis of the investee’s financial position and operating outcome, recent trading price, quotes on non-active market of same equity instrument, quotes on

－26－

active market of similar equity instrument and evaluation multiples of comparable companies. If the future input value is different from expectation, the fair value might change. The Company updates input values quarterly according to the market status in order to monitor if the measurement of fair value is appropriate.

(3) Impairment assessment of tangible and intangible assets

In the course of impairment assessments, the Company determines, based on how assets are utilized and relevant industrial characteristics, the useful lives of assets and the future cash flows of a specific company of the assets. Changes in economic circumstances or the Company’s strategy might result in material impairment of assets in the future.

(4) Impairment assessment of investments accounted for using the equity method

The Company assesses the impairment of an investment accounted for using the equity method once there is any indication that it might have been impaired and its carrying amount cannot be recoverable. The Company assesses the recoverable amounts of an investment accounted for using the equity method based on the present value of the Company’s share of expected future cash flows of the investee or the present value of expected cash dividends receivable from the investee and expected future cash flows from disposal of the investment, analyzing the reasonableness of related assumptions.

(5) Realisability of deferred tax assets

Deferred assets are recognized only to the extent that it is probable that future taxable profits will be available against which the deferred tax asset can be utilized. The Company’s management assesses the realisability of deferred tax assets by making critical accounting judgements and significant estimates of expected future revenue growth rate and gross profit rate, the tax exemption period, available tax credits, and tax planning, etc. Changes in global economic environment, industrial environment, and laws and regulations might result in material adjustments to deferred tax assets.

(6) Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value; thus, the Company estimates the net realizable value of inventory for obsolescence and unmarketable items on balance sheet date due to the rapid technology changes and writes down inventories to the net realisable value.

(7) Calculation of accrued pension obligations

When calculating the present value of defined pension obligations, the Company uses judgments and actuarial assumptions to determine related estimates, including discount rates and future salary increase rate. Changes in these assumptions may have a significantly impact on the carrying amount of defined pension obligations.

(8) Tenant's increase in borrowing interest rate

The fair values at the time of the decision to increase the borrowing rate of the lessee used in the lease payment, the risk-free interest rate and the same currency is used as the reference rate, and the estimated lessee's credit risk sticker and lease specific adjustments (such as asset-specific and secured factors) are taken into account.

－－ 27

6. DETAILS OF SIGNIFICANT ACCOUNTS

6.1 Cash and cash equivalents

1 Cash and cash equivalents
Item Cash on hand Checking account Demand deposits Time deposits (with original maturities within three months) Total	December 31
	2023 $1,760 259,691 1,443,841 92,130 $1,797,422	2022 $1,740 205,029 1,926,898 - $2,133,667

1.The financial institutions dealing with the Company are credit worthy, and the Company’s transactions with a number of financial institutions to diversify credit risk are unlikely to be expected to default.
2.The Company had no cash and cash equivalents pledged to others.

6.2 Financial assets at fair value through profit or loss- current

Item Non-derivative financial assets Mutual funds	December 31	December 31
	2023 $34,668	2022 $33,914

1.The Company had no financial assets at fair value through profit or loss pledged to others.
2.Please refer to Note 12(2) for credit risk management and evaluation method.

6.3 Notes receivable, net

Item At amortized cost Notes receivable Less: Loss allowance Net	December 31	December 31
	2023 $581 (2) $579	2022
		$1,754 (8)
		$1,746

1.The Company had no notes receivable pledged to others.
2.Please refer to Note 7.3.5. for accounts receivable with related parties
3.The relevant disclosure of loss allowance for notes receivable. Please refer to Note 6.4.

－28－

6.4 Accounts receivable, net

Accounts receivable, net
Item At amortized cost Accounts receivable Less: Loss allowance Net	December 31 2023 2022 $1,555,021 $750,754 (4,404) (3,438) $1,550,617 $747,316
	2023 $1,555,021 (4,404) $1,550,617

A. Accounts receivable are created by the Company by selling goods, and the average collection period for Carbon Steel Department is 30~60 days. The collection period for Engineering Department is based on contractual terms. The Company’s accounts receivables all meet the credit standards stipulated based on the counterparties' industrial characteristics, operation scale and profitability.
B. The Company had no accounts receivable pledged to others.
C. The Company applies the simplified approach to provisions for expected credit losses prescribed by IFRS 9, which permits the use of a lifetime expected credit losses provision for trade receivables. The expected credit losses on trade receivables are estimated by provision matrix and reference to past account aging records of the debtor, an analysis of the debtor’s current financial position, industrial trend. As the Company’s historical credit losses experience does not show significantly different loss patterns for different customer segments, the provision for losses based on past due status of receivables is not further distinguished between the Company’s different customer base.
The Company writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery of the receivable. For trade receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables which are due. Where recoveries are made, these are recognized in profit or loss.

The Company measures the allowance for notes receivable, and accounts receivable to the provision matrix (including related parties)：

December 31, 2023 Not past due December 31, 2022 Not past due	Expected credit loss rate 0%-0.5% Expected credit loss rate 0%-0.5%	Gross carrying amount $1,766,384 Gross carrying amount $1,240,251	Allowance for doubtful accounts (ECL) ($4,881) Allowance for doubtful accounts (ECL) ($5,506)	Amortized cost
				$1,761,503
				Amortized cost
				$1,234,745

－－ 29

1.Movements of the loss allowance for notes receivable and accounts receivable (including related parties) were as follows:

Beginning balance Less: Reversal of Impairment Loss Ending balance	Year Ended December 31	Year Ended December 31
	2023 $5,506 (625) $4,881	2022
		$6,152 (646)
		$5,506

2.Please refer to Note 6.25 for Statement of changes in allowance for loss on contract assets.
3.As of December 31, 2023 and 2022, the above provision has already taken into consideration collateral or other credit enhancement. The other credit enhancement (e.g., L/C) possessed by above receivables were $1,593,267 thousand, and $732,321 thousand, respectively.
4.Please refer to Note 12(2) for the relevant credit risk management and assessment.

6.5 Other receivables

Other receivables
Item Business tax refundable Purchase allowance receivable Dumping margins refundable Others Total Less: Loss allowance Net	December 31
	2023 $105,500 7,517 346,360 1,365 460,742 - $460,742	2022
		$62,000 17,284 - 1,357
		80,641 -
		$80,641

An antidumping investigation into the corrosion-resistant steel sold from Taiwan, conducted by the Department of Commerce of the U.S. in June 2015, had completed in July 2016, with an official announcement that all corrosion resistant products manufactured in or sold from Taiwan must temporarily bear a dumping margin duty. The custom was also instructed to impose a temporary dumping margin on all entries of merchandise sold by the Company to the U.S. that had been covered by the investigation. The antidumping duty is imposed by the U.S. using the retrospective system. If the provisional tax rate paid was higher than the final survey result, the difference between the tax rate paid and the final survey result is presented as “ refundable deposit”, otherwise, presented as “other payables”.

Regarding the results of the aforementioned investigations, the Company believed that there were disputes, so it filed an appeal to the court in August 2016. After years of litigation, on February 14, 2022, the Department of Commerce (DOC) followed the court's judgment and re-reported the results of the retrial to the Court of International Trade (CIT). The results of the retrial stated that the anti-dumping tax rate of the Company was 1.2% and less than deminimis (less than 2%, which was seen as small amount and regarded as 0%).In addition, the results of the retrial

－30－

clearly stated that if the court upheld the results, the Company should be excluded from the application of the anti-dumping order. On June 23, 2023, the final judgment of the Court of International Trade (CIT) was released. DOC has issued an announcement in August 2023 based on the aforementioned CIT’s final judgment, modification of the final determination of the original investigation, and revoke the anti-dumping duty order for the Company, notify the U.S. Customs and Border Protection (CBP) that CBP will no longer impose anti-dumping duties on the Company’s anti-corrosion products sold in the U.S in September 2023, and will refund unliquidated taxes from previous years.

Accordingly, the Company reversed the estimated anti-dumping tax difference of $70,411 thousand (including recognized as refundable deposits and other payables) and the prepaid anti-dumping tax of $346,360 thousand calculated by the original anti-dumping tax rate during the unliquidated period, starting from the fourth adjustment period and ending on December 31, 2023. The total amount of $416,771 thousand was reversed, $422,312 thousand recognized as other income, and ($5,541) thousand recognized as foreign exchange loss.

6.6 Inventories and operating cost

Item Steel Department： Raw materials Supplies Work in progress Finished goods By-products and scraps Subtotal Heavy Industry Department： Raw materials Supplies Subtotal Total	December 31	December 31
	2023 $1,560,751 15,013 697,055 1,561,627 110,203 3,944,649 155,121 2,714 157,835 $4,102,484	2022
		$1,984,462 16,005 452,338 1,487,819 113,566
		4,054,190
		208,089 7,228
		215,317
		$4,269,507

1.Inventory gains (losses) recognized as cost of sales are as follows:

Item Cost of inventories sold Construction cost Processing cost Unallocated manufacturing overhead Purchase and construction contract loss (recovery gain) Inventory valuation loss and obsolescence loss (recovery gain) Total operating cost	Year Ended December 31	Year Ended December 31
	2023 $21,744,605 729,481 159,985 102,088 (616) (124,309) $22,611,234	2022
		$29,139,281 430,734 131,363 141,617 (33,965) (105,668)
		$29,703,362

－31－

As of December 31, 2023, and 2022, the provision for inventory valuation loss and obsolescence loss were $15,730 thousand, and $140,039 thousand, respectively.
The Company recognized inventory valuation loss (recovery gain) of ($124,309) thousand and ($105,668) thousand for the years ended December 31, 2023 and 2022, respectively, due to inventory’s write-down to net realizable value, or the net realizable value of inventories recovered as a result of market stabilization that enabled the Company to raise prices on certain products.
4.The Company had no inventory pledged as collateral.

6.7 Prepayments

Prepayments
Item Prepaid material purchase Prepaid insurance Prepaid sea freight Other prepayments Total	December 31
	2023 $75,303 46,770 116,915 6,123 $245,111	2022
		$222,603 46,244 23,898 5,174
		$297,919

Please refer to Note 7.3.7. for prepayments with related parties

6.8 Financial assets at fair value through other comprehensive income - noncurrent

noncurrent
Item Equity instruments： Domestic listed stocks Domestic unlisted stocks Subtotal Valuation adjustment Total	December 31
	2023 $21,965 582,004 603,969 175,191 $779,160	2022
		$45,000 594,640
		639,640 93,333
		$732,973

1.The Company invests in domestic listed and unlisted stocks in accordance with its medium/long-term strategies and expects to make a profit through long-term investment. Management of the Company believes that it is not consistent with the afore-mentioned long-term investment planning if the short-term fair value changes of such investment are presented in profit or loss. Therefore, the Company elects to designate such investment as to be measured at FVTOCI.
2.For related credit risk management and means of assessing, please refer to Note 12(2).
3.As of December 31, 2023 and 2022, the Company had no financial assets at FVTOCI pledged as collateral.

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6.9 Investments accounted for using equity method

Investee Subsidiaries: Yieh Phui (Hong Kong) Holdings Limited Yieh Hsing Enterprise Co., Ltd. Kuo Chang Enterprise Co., Ltd. United Brightening Development Corp. Great Emperor Hotel Co., Ltd. Kings Garden International Co., Ltd. Others Subtotal Associates: Associates with significance: Yieh United Steel Corp. Eliter International Corp. Tangeng Iron Works Co., Ltd. E-Da Development Corp. Associates without significance Subtotal Total	December 31 2023 2022 $9,278,296 $9,256,089 80,082 626,158 1,091,894 1,256,257 1,464,025 1,696,410 2,619,308 2,708,506 2,167,757 2,306,161 3,284,046 2,613,360 19,985,408 20,462,941 2,835,287 3,858,815 2,742,334 2,759,689 1,199,379 1,323,778 875,102 891,318 1,913,740 1,886,185 9,565,842 10,719,785 $29,551,250 $31,182,726
	2023 $9,278,296 80,082 1,091,894 1,464,025 2,619,308 2,167,757 3,284,046 19,985,408 2,835,287 2,742,334 1,199,379 875,102 1,913,740 9,565,842
	$29,551,250

Investee
Subsidiaries:
Yieh Phui (Hong Kong) Holdings Limited
Yieh Hsing Enterprise Co., Ltd.
Kuo Chang Enterprise Co., Ltd.
United Brightening Development Corp.
Great Emperor Hotel Co., Ltd.
Kings Garden International Co., Ltd.
Others
Subtotal
Associates:
Associates with significance:
Yieh United Steel Corp.
Eliter International Corp.
Tangeng Iron Works Co., Ltd.
E-Da Development Corp.
Associates without significance
Subtotal
Total

December 31
2023
2022
$9,278,296
$9,256,089
80,082
626,158
1,091,894
1,256,257
1,464,025
1,696,410
2,619,308
2,708,506
2,167,757
2,306,161
3,284,046
2,613,360
19,985,408
20,462,941
2,835,287
3,858,815
2,742,334
2,759,689
1,199,379
1,323,778
875,102
891,318
1,913,740
1,886,185
9,565,842
10,719,785
$29,551,250
$31,182,726

2023
$9,278,296
80,082
1,091,894
1,464,025
2,619,308
2,167,757
3,284,046
19,985,408
2,835,287
2,742,334
1,199,379
875,102
1,913,740
9,565,842

$29,551,250

1.Subsidiaries:

(1) For information of the Company’s subsidiaries, please refer to Note 4.3 of the Company’s Year 2023 consolidated financial statements.
(2) Investments accounted for using equity method and the Company’s share of profit or loss and share of other comprehensive income were calculated based on audited financial statements, except for those of Good Honor Holdings Ltd. and Worthing Honor Holdings Ltd. However, management of the Company considered no material adjustment if the financial statements of afore-mentioned subsidiaries had been audited.

2.Associates:

(1) Major associates of the Company are as follows:

CompanyName Yieh United Steel Corp. Eliter International Corp. Tangeng Iron Works Co., Ltd. E-Da Development Corp.	ShareholdingPercentage	ShareholdingPercentage
	December 31,2023 25.82% 30.23% 11.30% 28.44%	December 31,2022
		25.82% 30.23% 11.30% 28.44%

Please refer to Table 8 and Table 9 in Note 13 for the nature of business, main operation location and countries of registration of the associates listed above.

－33－

(2) The summarized financial information in respect of the Company’s major associates is as follows:
A. Balance Sheets

associates is as follows: A. Balance Sheets
Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity Share in associates’ net assets Unrealized loss from transactions with associates Carrying amount of associate Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity Share in associates’ net assets Unrealized loss from transactions with associates Carrying amount of associate Current assets Noncurrent assets Current liabilities Noncurrent liabilities Equity Share in associates’ net assets Unrealized loss from transactions with associates Carrying amount of associate	Yieh United
	December 31,2023 December 31,2022 $6,761,807 $6,904,181 5,268,554 5,111,114 1,665,913 1,438,125 1,146,766 1,301,991 $9,217,682 $9,275,179 $2,786,046 $2,803,424 (43,712) (43,735) $2,742,334 $2,759,689 TangengIron Works Co.,Ltd.	December 31,2022
		$6,904,181 5,111,114 1,438,125 1,301,991
		$9,275,179
		$2,803,424 (43,735)
		$2,759,689
	December 31,2023 $2,628,193 23,326,427 2,150,849 10,858,440 $12,945,331 $1,199,379 - $1,199,379	December 31,2022 $3,383,886 23,281,565 2,510,042 10,109,287 $14,046,122 $1,323,778 - $1,323,778

－34－

E-Da Development Corp.	E-Da Development Corp.	E-Da Development Corp.
	December 31,2022
		$415,062 7,615,363 1,268,260 3,602,817
		$3,159,348
		$898,590 (7,272)
		$891,318
		Steel Corp.
2023 2022 $36,337,685 $44,439,777 (3,877,105) (414,634) 39,667 798,680 ($3,837,438) $384,046 $- $- Eliter International Corp. 2023 2022 $192,111 $211,191 (51,334) (138,492) (6,163) (23,256) ($57,497) ($161,748) $- $- TangengIron Works Co.,Ltd. 2023 2022 $10,706,636 $14,021,337 (1,125,320) (224,948) 24,527 104,158 ($1,100,793) ($120,790) $- $-		2022
		$44,439,777
		(414,634) 798,680
		$384,046
		$-
2023 $10,706,636 (1,125,320) 24,527 ($1,100,793) $-

－35－

Operating revenue Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss) Dividends received from associate	E-Da Development Corp.	E-Da Development Corp.
	2023 $701,956 (343,940) (13,757) ($357,697) $-	2022
		$607,090
		(416,509) (51,917)
		($468,426)
		$-

(3) Shares of individually insignificant associates of the Company are summarized as follows:

as follows:
Share of: Net income (loss) Other comprehensive income (loss) (net after tax) Total comprehensive income (loss)	Year Ended December 31
	2023 2022 ($10,500) $82,075 22,967 (17,842) $12,467 $64,233

(4) Associates of the Company with quoted prices in active market (Level 1 fair value inputs) are as follow:

value inputs) are as follow:
Yieh United Steel Corp. (Note) Tangeng Iron Works Co., Ltd. Total	December 31
	2023 $3,607,817 1,317,115 $4,924,932	2022
		$4,019,579 1,255,808
		$5,275,387

(Note): The fair value information above does not include shares acquired in private placement, which are not allowed to be transferred freely in open markets.
(5) For Tangeng Iron Works Co., Ltd., Skylark Hot Spring & Resort Corp., E-Da Tour Bus Corporation, E-Da Bus Transportation Co., Ltd., and E-Da Entertainment Co., the Company has significant influence either as a result of holding more than 20% of their respective shares with its subsidiaries, or being a director in such entities. Consequently, those entities are accounted for using equity method.
(6) After considering the amount and distribution of other shareholders which are not extremely dispersed, the Company is not able to lead the company’s activities. Thus, the Company and its subsidiaries has no control even though it holds 45%, 43.56%, 34.38% and 30.51% of Zheng Xin Security Co., Ltd., Eliter International Corp., E-Da Development Corp., and Yieh United Steel Corp. and is the single largest shareholder. The management of the Company believes the Company only had significant impact to these companies, so classified them as the associates.
(7) The Company participated in the private placement of Yieh United Steel Corp. in February 2017, and December 2015, and subscribed at $ 7 per share, with the total subscription amount of $204,876 thousand and $1,100,400 thousand, respectively. Pursuant to the Securities and Exchange Act, securities from private placement can only be traded freely in the open markets when they are

－36－

held for three years from the delivery date and the issuer has to complete the supplementary procedures of public offering.

(8) Due to cross ownership and the adoption of equity method between the Company and Yieh United Steel Corp., an investee accounted for using equity method, investment gain (loss) is recognized using the treasury stock approach. And the accounting policy for investment properties in its financial statements has been adjusted to adopt the cost model to measure the same as that of the company.
(9) Except for E United Japan Co., Ltd., investments accounted for using equity method and the Company’s share of profit or loss and other comprehensive income are calculated based on audited financial statements of those investees. However, the Company’s management considers no material impact if the financial statements of above investees had been audited.
(10) As of December 31, 2023 and 2022, no investments under equity method were pledged as collateral by the Company.

6.10 Property, Plant and Equipment

Property, Plant and Equipment
Item Land Buildings and structures Machinery Other equipment Equipment to be inspected and construction in progress Total cost Less: Accumulated depreciation Accumulated impairment Total	December 31
	2023 $1,293,296 3,535,317 13,425,786 822,605 266,409 19,343,413 (12,895,409) (70,671) $6,377,333	2022
		$1,293,296 3,527,064 13,399,063 835,836 203,334
		19,258,593 (12,491,663) (70,671)
		$6,696,259

Cost	Land	Buildings and structures	Machinery	Otherequipment	Equipment to be inspected and construction in progress	Total
	$1,293,296 - - -	$3,527,064 7,337 (3,552) 4,468	$13,399,063 73,929 (69,618) 22,412	$835,836 22,259 (46,410) 10,920	$203,334 100,875 - (37,800)	$19,258,593 204,400 (119,580) -
Balance, January 1, 2023 Additions Disposals Reclassifications Balance, December 31, 2023 Accumulated depreciation andimpairment
	$1,293,296	$3,535,317	$13,425,786	$822,605	$266,409	$19,343,413
	$ - - -	$2,321,837 112,222 (2,871)	$9,625,912 353,541 (57,687)	$543,914 44,268 (45,727)	$70,671 - -	$12,562,334 510,031 (106,285)
Balance, January 1, 2023 Depreciation Disposals Balance, December 31, 2023
	$ -	$2,431,188	$9,921,766	$542,455	$70,671	$12,966,080

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Cost	Land	Buildings and structures	Machinery	Otherequipment	Equipment to be inspected and construction in progress	Total
	$1,507,283 99,734 (313,721) -	$3,572,808 9,991 (56,982) 1,247	$13,329,841 43,395 (64,644) 90,471	$859,127 18,441 (93,397) 51,665	$230,584 116,133 - (143,383)	$19,499,643 287,694 (528,744) -
Balance, January 1, 2022 Additions Disposals Reclassifications Balance, December 31, 2022 Accumulated depreciation and impairment
	$1,293,296	$3,527,064	$13,399,063	$835,836	$203,334	$19,258,593
	$ - - -	$2,239,476 111,348 (28,987)	$9,333,500 348,597 (56,185)	$595,694 40,759 (92,539)	$70,671 - -	$12,239,341 500,704 (177,711)
Balance, January 1, 2022 Depreciation Disposals Balance, December 31, 2022
	$ -	$2,321,837	$9,625,912	$543,914	$70,671	$12,562 ,334

1.Reconciliations of current additions and the acquisition of property, plant and equipment in statement of cash flows were as follows:

Item Increase in property, plant and equipment Increase/decrease in payables for purchase of equipment Cash paid for acquisition of property, plants and equipment	Year Ended December 31	Year Ended December 31
	2023 $204,400 21,822 $226,222	2022
		$287,694 44,553
		$332,247

2.Reconciliations of current sales of property, plant and equipment in statement of cash flows were as follows:

cash flows were as follows:
Item Price for sales of property, plant and Increase/decrease of receivables from the sales of property, plant and equipment Cash receive for sales of property, plants and equipment	Year Ended December 31
	2023 $ - 755,233 $755,233	2022
		$1,076,222 (755,233)
		$320,989

3.Please refer to Note 6.30 for details of the amount of capitalized borrowing costs.
4.Impairment losses for property, plant and equipment recognized for 2023 and 2022 were both $0 thousand.
5.The accumulative impairment losses of the painting equipment and other equipment in Pingnan plant was $223,116 thousand due to the termination of expansion of such plant, of which the land was sold in 2020, so the Company reversed the accumulated impairment $152,445 thousand and write off the related equipment to be inspected and construction in progress. The accumulated impairment losses were both $70,671 thousand as of December 31, 2023 and 2022.

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6.For the information about property, plant and equipment pledged as collateral, please see Note 8 for details.
7.The Company’s land amounting to both $8,516 thousand as of December 31 2023 and 2022 is unable to be registered under the name of the Company due to regulation restriction. Accordingly, the ownership was registered under the name of an individual with a mortgage registration as safeguard measures.

6.11 Lease Agreement

A. Right-of-use asset

	Item		December 31	December 31	2022 $298,583 45,087 $343,670 (56,574) - $287,096 Total
			2023 $301,589 45,087 $346,676 (73,209) - $273,467 Land Buildings $298,583 $45,087 3,782 - (776) - $301,589 $45,087 $39,377 $17,197 11,305 6,106 (776) - $49,906 $23,303 Land Buildings $300,031 $26,630 2,384 18,457 (3,832) - $298,583 $45,087 $30,895 $12,782 11,109 4,415 (2,627) - $39,377 $17,197



			Land $298,583 3,782 (776) $301,589 $39,377 11,305 (776) $49,906 Land $300,031 2,384 (3,832) $298,583 $30,895 11,109 (2,627) $39,377
					$343,670 3,782 (776)
					$346,676
					$56,574 17,411 (776)
					$73,209
					Total
					$326,661 20,841 (3,832)
					$343,670
					$43,677 15,524 (2,627)
					$56,574

. Lease liabilities
Item Carrying amount of lease liabilities - current - noncurrent	December 31
	2023 $11,645 $188,286	2022
		$12,314
		$196,976

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The discount rate interval for lease liabilities is 1.9661%~2.2817%.

Please refer to Note 12(2) for lease liabilities with repayment periods.

C. Significant lease activities and clause

The Company rented land and buildings for operation. The lease terms range from 1 to 28 years. Part of the lease may be extended with its duration and is calculated based on the area of the land leased and the rate based on the announced land value of the current year. In accordance with the contract, without the lessor’s consent, the Company is not allowed to sublet the leased object to the third party. There is no sign of impairment of right-of-use assets, hence the Company didn’t assess the impairment as of December 31, 2023 and 2022.

D. Other lease information:
(1) The current lease relevant expense information was as follows:

Item Short-term lease expense Gross cash outflow (Note)	Year Ended December 31	Year Ended December 31
	2023 $14,104 $27,245	2022
		$13,452
		$24,213

(Note): Including principle paid for lease liability.

6.12 Investment properties

Investment properties
Item Land Less: Accumulated impairment Total	December 31
	2023 $ - - $ -	2022
		$ - -
		$ -

1.Investment properties and accumulated depreciation and impairment changes are as follows

1.Investment properties and accumulated depr as follows	eciation and impairmen	t changes are
	Land
Item	2023	2022
January 1	$ -	$443,349
Disposals	-	(443,349)
December 31	$ -	$ -
Changes in accumulated impairment: None.
2.Reconciliations of current sales of Investment properties in statement of cash flows
were as follows:
	Year Ended December 31
Item	2023	2022
Price for sales of investment properties	$ -	$1,490,312
Increase/decrease of receivables from the sales of
investment properties	1,044,767	(1,044,767)
Cash receive for sales of investment properties	$ 1,044,767	$445,545

2.Reconciliations of current sales of Investment properties in statement of cash flows were as follows:

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3.Rental revenue and direct operating expenses of investment properties:

Item Rental revenue from investment properties Direct operating expenses incurred by the investment properties with rental revenue generating in current period Direct operating expenses incurred by the investment properties with no rental revenue generating in current period	Year Ended December 31	Year Ended December 31
	2023 $- $- $-	2022
		$10,813
		$1,762
		$-

6.13 Refundable deposits

Refundable deposits
Item Customs duty guarantee Deposit for dumping margins Deposit for Stand-By L/C Rent deposits Total	December 31
	2023 2022 $733,850 $758,537 - 2,333 - 18,002 3,307 3,225
	$737,157 $782,097

Please refer to Note 6.5 for Deposit for dumping margins.

6.14 Short-term Loans

Type of Loan Credit for material purchase Credit loans Total Type of Loan Credit for material purchase Credit loans Total	December 31,2023	December 31,2023
	Amount Interest Rate $3,117,256 2.34%-2.59% 3,060,000 2.21%-2.67% $6,177,256 December 31,2022	Interest Rate
	Amount $2,244,747 3,705,000 $5,949,747	Interest Rate
		2.09%-2.60% 1.56%-2.57%

Some financial assets, and property, plant, and equipment are pledged as collateral for short-term loans. Please refer to Note 8 for details.

6.15 Short-term notes and bills payable

Short-term notes and bills payable
Item Commercial paper payable Less: Unamortized discount Net Interest Rate Range	December 31
	2023 $1,000,000 (1,319) $998,681 2.282%~2.318%	2022
		$700,000 (1,245)
		$698,755
		2.148%~2.338%

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6.16 Other Payables

6.16 Other Payables
Item Compensations payable Export and transportation expenses payable Equipment payable Dumping margins payable Utility expense payable Cash dividends payable - from previous period Repairing charges payable Compensation and remuneration payable to employees and directors - current period Interest payable Others Total	December 31
	2023 $289,102 178,045 19,105 - 46,012 23,386 17,892 - 19,119 91,447 $684,108	2022
		$298,138 80,208 40,927 72,744 33,549 22,879 17,315 3,378 17,725 90,965
		$677,828

1.Please refer to Note 7.3.6 for related party transactions.

2.Please refer to Note 6.5 for dumping margins payable.

6.17 Provisions - current

Item Employee benefits Onerous contract Total Item January 1, 2023 Recognized in current period Write-off in current period December 31, 2023 Item January 1, 2022 Recognized in current period Write-off in current period December 31, 2022	December 31 2023 2022 $53,541 $53,433 99 715 $53,640 $54,148 Employee benefits Onerous contract Total $53,433 $715 $54,148 53,541 99 53,640 (53,433) (715) (54,148) $53,541 $99 $53,640 Employee benefits Onerous contract Total $50,011 $34,680 $84,691 53,433 715 54,148 (50,011) (34,680) (84,691) $53,433 $715 $54,148	December 31 2023 2022 $53,541 $53,433 99 715 $53,640 $54,148 Employee benefits Onerous contract Total $53,433 $715 $54,148 53,541 99 53,640 (53,433) (715) (54,148) $53,541 $99 $53,640 Employee benefits Onerous contract Total $50,011 $34,680 $84,691 53,433 715 54,148 (50,011) (34,680) (84,691) $53,433 $715 $54,148



	Employee benefits $53,433 53,541 (53,433) $53,541 Employee benefits $50,011 53,433 (50,011) $53,433
January 1, 2023 Recognized in current period Write-off in current period December 31, 2023 Item		$54,148 53,640 (54,148)
		$53,640
		Total
January 1, 2022 Recognized in current period Write-off in current period December 31, 2022		$84,691 54,148 (84,691)
		$54,148

1.Provision for employee benefits is an estimate of the short-term service leave vested to employees.

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2.Provision for onerous contract is the unavoidable costs of irrevocable purchase contract which exceeds the economic benefits expected to be received and the expected loss of construction contract.

6.18 Long-term Loans and Current Portion of Long-term Loans

Item Bank syndicated loans: Secured loans from banks Unsecured loans from banks Total Less: Unamortized discount Less: Current portion Long-term loans Interest rate range	December 31	December 31
	2023 $8,406,000 356,589 130,000 8,892,589 (17,309) (1,720,054) $7,155,226 2.4316%-2.795%	2022
		$9,340,000 539,540 96,000
		9,975,540 (24,982) (1,377,909)
		$8,572,649
		1.867%-2.62%

1.Please refer to Note 8 for the collateral of the above bank loans.
2.According to syndicated loan agreements with banks, the Company needs to maintain several financial ratios, including current ratio, liability ratio and interest coverage ratio, at a certain level, calculated based on the audited annual consolidated financial statements and the reviewed semi-annual consolidated financial statements for the duration of the contracts. The Company do meet the ratio stipulated in the loan agreements in 2023 in all respects.

6.19 Benefit Plan After Retirement

1.Defined contribution plan
The pension system based on the Labor Pension Act which is applicable to the Company’s domestic entities is a defined contribution plan managed by government. Companies would make monthly contribution equal to 6% of each employee's monthly salary to the employees' individual pension accounts at the Bureau of Labor Insurance.
Contributions based on the percentage stipulated in the defined contribution pension plans of the Company and recognized as expenses in the standalone statement of comprehensive income were $57,158 thousand and $60,095 thousand for the years ended December 31, 2023 and 2022, respectively
2.Defined benefit plans
(1)The pension plan under the Labor Standards Law, which is applicable to the Company’s domestic entities, is a defined benefit pension plan managed by the government. Under the defined benefit pension plan, pension benefits are based on the average monthly salaries and wages of the last 6 months prior to retirement and the duration of employment. Those companies contribute monthly an amount equal to 10% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, under the name of the independent retirement fund committee. Before the end of year, if the balance at the retirement fund is not sufficient to cover all employees retiring next year, a lump-sum deposit should be made before March-end of the following year to cover the difference. The retirement fund is managed by the Bureau of Labor

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Funds, Ministry of Labor. The Company does not have rights to influence its investment management strategy.

(2)The amounts recognized in the standalone balance sheet for obligations from defined benefit plans are as

defined benefit plans are as
Item Present value of defined benefit obligations Fair value of planned assets Net defined benefit liability	December 31
	2023 $1,142,644 (970,075) $172,569	2022
		$1,220,156 (935,582)
		$284,574

(3)Movements in net defined benefit liability are as follows:

Year Ended December 31,	Year Ended December 31,	2023
Present value of defined benefit obligations $1,220,156 1,404 (537) 14,892 15,759 - 4,274 (50,900) (46,626) - (46,645) $1,142,644	Fair value of planned assets ($935,582) - - (11,727) (11,727) (8,175) - - (8,175) (61,236) 46,645 ($970,075)	Net defined benefit liability
		$284,574 1,404 (537) 3,165
		4,032
		(8,175) 4,274 (50,900)
		(54,801)
		(61,236) -
		$172,569

－44－

Year Ended December 31,2022	Year Ended December 31,2022	Year Ended December 31,2022
Present value of defined benefit obligations $1,290,479 2,008 1,737 8,843 12,588 - (55,763) 34,787 (20,976) - (61,935) $1,220,156	Fair value of planned assets ($856,961) - - (5,982) (5,982) (66,245) - - (66,245) (66,592) 60,198 ($935,582)	Net defined benefit liability
		$433,518 2,008 1,737 2,861
		6,606
		(66,245) (55,763) 34,787
		(87,221)
		(66,592) (1,737)
		$284,574

(4)Through the pension plan under the Labor Standards Law, the Company is exposed to the following risks:

A.Investment risk

The pension funds are invested in equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the government's designated authorities or under the mandated management by Bureau of Labor Funds, Ministry of Labor. However, the rate of return on the Company’ s planned assets shall not be less than the average interest rate on a two-year time deposit published by the local banks.

B.Interest rate risk

A decrease in the government bond interest rate will increase the present value of the defined benefit obligation, however, the return on the debt investments of the plan assets will also increase. Those two will partially offset each other. C.Salary risk

The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.
(6) The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions adopted on the valuation date were as follows:

－45－

Item Discount rate Future salary increase rate Average maturity period of defined benefit obligations	Measurement date	Measurement date
	December 31,2023 1.20% 2.00% 7 yeas	December 31,2022
		1.25%
		2.00%
		8 yeas

A.Assumptions on future mortality experience are set based on the 6th Taiwan Standard Ordinary Experience Mortality Table.
B.If a reasonable change in one of the principal assumptions for actuarial valuation occurred and all other assumptions were held constant, the increase (decrease) in the present value of defined benefit obligation would be as follows:

Item Discount rate Increase by 0.25% Decrease by 0.25% Expected growth rate of salaries Increase by 0.25% Decrease by 0.25%	December 31	December 31
	2023 ($21,115) $21,725 $21,499 ($21,003)	2022
		($24,157)
		$24,889
		$24,642
		($24,040)

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

(6)The Company expects to make contributions of $59,611 thousand to the pension plans for the year ended December 31, 2024.

6.20 Common Stock

1.Quantities and values of the Company’s outstanding common shares at the beginning and ending of periods were as follows:

Item January 1 Cancellation of treasury shares December 31	Year Ended December 31,2023	Year Ended December 31,2023
	Shares (thousand shares) 1,985,097 (35,927) 1,949,170	Amount
		$19,850,980 (359,270)
		$19,491,710

－46－

Year Ended December 31, 2022

Item January 1 Capitalization of earnings December 31	Shares (thousand shares) 1,890,569 94,529 1,985,098	Amount
		$18,905,695 945,285
		$19,850,980

2.As of December 31, 2023, the Company had an authorized capital of $30,000,000 thousand with 3,000,000 thousand shares.
3.The Company’s Board of Directors resolved on March 9, 2023 to cancel its treasury stocks. The amount of capital reduction was $92,330 thousand, with 9,233 thousand shares eliminated, and the capital reduction ratio was 0.47%. The record date for capital reduction was set on March 15, 2023.
4.The Company’s Board of Directors resolved on August 8, 2023 to cancel its treasury stocks. The amount of capital reduction was $100,210 thousand, with 10,021 thousand shares eliminated, and the capital reduction ratio was 0.51%. The record date for capital reduction was set on August 16, 2023.
5.The Company’s Board of Directors resolved on November 6, 2023 to cancel its treasury stocks. The amount of capital reduction was $166,730 thousand, with 16,673 thousand shares eliminated, and the capital reduction ratio was 0.85%. The record date for capital reduction was set on November 7, 2023.
6.The Company’s shareholders’ meeting held on June 23, 2022 resolved to capitalize earnings of $945,285 thousand. The plan was approved by FSC on July 15, 2022 and 94,529 thousand shares of common share at the par value of $10 were issued. The record date for capital increase was set on September 5, 2022.

6.21 Capital Surplus

6.21 Capital Surplus
Item Share premium Treasury stock transaction Difference between the price received from acquisition or disposal of a subsidiary and its book value Change in ownership interests in subsidiaries accounted for using equity method Changes in associates and joint ventures recognized under equity method Total	December 31
	2023 $3,939,458 540,864 219,251 8,665 39,585 $4,747,823	2022
		$4,012,070 648,408 218,574 8,665 39,585
		$4,927,302

Under the Company Act, capital surplus arising from shares issued at premium or from donation may be used for offsetting deficit. Furthermore, if the Company has no accumulated loss, capital surplus may be used for issuing new shares or distributing cash in proportion to shareholders' original holdings. In accordance with regulations in the Securities and Exchange Act, when the above-mentioned capital surplus is used for capitalization, the total amount every year shall not

－－ 47

exceed 10% of the paid-in capital. The Company may use capital surplus to offset loss only when the amount of earnings and reserves are insufficient to offset the loss. The capital surplus generated from investment under equity method shall not be used for any purposes.

6.22 Retained Earnings

1.The industry the Company is engaged in is in a mature stage of its life cycle. The dividend policy is in support of the current and future development plans, taking into consideration the investment environment, capital requirements, domestic and international competition, and the interests of the shareholders. An amount not less than 20% of the distributable earnings is appropriated annually as the shareholder dividend and bonus. However, the accumulated distributable earnings that are less than 20% of the paid-in capital may not be distributed. Assess capital needs in accordance with the expansion planning and profitability. In general, stock dividend is distributed in order to retain the necessary funds. Cash dividend, depending on the profitability, amounts to 20-100% of the total dividends distributed while stock dividend amounts to 0-80%.

The Company’s final accounts of each year, after paying tax and making up prior losses and the net of the 10% legal reserve, and with the special reserve appropriated or reserved according to the operational needs or ordinances, plus the cumulative total unallocated surplus are available for distribution. when the board of the directors decides to distribute retained earnings, if it is to be done by issuing new shares, it has to be approved by the stockholders’ meeting.

When the company has to allocate special reserve by law, for the cumulative amount of net increase in fair value and the cumulative net amounts of other deductions from equity, before distributing earnings, the company has to allocate an amount of special reserve equal to the amount allocated to undistributed earnings for the preceding period. If there remains any insufficiency, allocate it from the amount of the after-tax net profit for the period, plus items other than after-tax net profit for the period, that are included in the undistributed earnings of the period.

2.Legal reserves may only be used for offsetting deficits and issuing new shares or distributing cash in proportion to shareholders’ original holdings. However, when new shares are issued or cash is distributed, the amount shall be limited to 25% of the reserves in excess of the paid-in capital.
3.Special reserve

3.Special reserve
Item Provision for debit balance of other equity Provision upon initial application of IFRSs Total	December 31
	2023 $494,611 327,758 $822,369	2022
		$457,289 327,758
		$785,047

(1)The Company may allocate earnings only after providing special reserve for debt balance in other equity on the date of balance sheet, and the reversal of debit balance in other equity, if any, may be stated into allocable earnings.
(2)On March 9, 2022, the Board of Directors of the Company proposed to amend the Articles of Incorporation of the Company to expressly stipulate that when

－48－

the special surplus reserve is set aside to the net debit balance of other equity items accumulated in the previous period, if the undistributed earnings in the previous period is insufficient, the net income after tax for the current period plus item other than the net income after tax will be set aside in the undistributed earnings for the current period. Prior to the amendment, the Company shall set aside earning in accordance with the provisions of Order No. 1010012865 of the Financial Management Certificate and Order no. 1030006415 of the Financial Management Certificate.

The Company’s appropriation of earnings for 2022 and 2021 had been proposed by the shareholders’ meeting on June 2023 and June 2022. Details were summarized below:

summarized below:
Item Legal reserve Special reserve Common cash dividends Common stock dividends Total	Earnings appropriation proposal 2022 2021 $94,861 $511,379 37,322 78,454 592,759 945,285 - 945,285 $724,942 $2,480,403	Dividends per share (NTD) 2022 2021 0.3 0.5 - 0.5
	2022 $94,861 37,322 592,759 - $724,942	2022 0.3 -

5.As of March 7, 2024, neither dividends nor the earnings appropriation proposal was approved by the Board of Directors of the Company.
6.Information about earnings distribution approved by the Board of Directors and resolved by the shareholders meeting is available at the Taiwan Stock Exchange Market Observation Post System website.

6.23 Other Equity Items

6.23 Other Equity Items
Item	Exchange differences on translation of foreign financial statements	Unrealized gain (loss) on financial asset at fair value through other comprehensive income	Gain (loss) on hedging instruments	Total
Balance, January 1, 2023 Unrealized gain (loss) on financial assets at fair value through other comprehensive income Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures accounted for using the equity method Disposal of financial instruments designated at fair value through other comprehensive income Balance, December 31, 2023	($964,147) - (127,624) -	$130,825 58,823 113,365 23,035	$10,953 - 1,726 -	($822,369) 58,823 (12,533) 23,035
	($1,091,771)	$326,048	$12,679	($753,044)

－－ 49

Item	Exchange differences on translation of foreign financial statements	Unrealized gain (loss) on financial asset at fair value through other comprehensive income	Gain (loss) on hedging instruments	Total
Balance, January 1, 2022 Unrealized gain (loss) on financial assets at fair value through other comprehensive income Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures accounted for using the equity method Balance, December 31, 2022	($1,426,033) - 461,886	$386,525 (88,481) (167,219)	$6,546 - 4,407	($1,032,962) (88,481) 299,074
	($964,147)	$130,825	$10,953	($822,369)

6.24 Treasury stock

1.Purpose of treasury stock and changes in quantity:

Unit: Thousand Shares

Year Ended December 31, 2023

	Unit: Thousand Shares Year Ended December 31, 2023	Unit: Thousand Shares Year Ended December 31, 2023	ousand Shares
January 1 9,233	Addition Reduction December 31 30,554 (35,927) 3,860 Unit: Thousand Shares Year Ended December 31, 2022		December 31
January 1 -	Addition 9,233	Reduction -	December 31
			9,233

2.In order to protect the Company’s credit and shareholders’ equity, the Board of Directors resolved on October 17, 2022 to repurchase 30,000 thousand shares from October 18 to December 17, 2022. The number of shares repurchased by the Company as of December 17, 2022 was 9,233 thousand shares, with the amount of $133,898 thousand; the Company’s Board of Directors resolved on March 9, 2023 to cancel its treasury stocks. The amount of capital reduction was $92,330 thousand, with 9,233 thousand shares eliminated, and the capital reduction ratio was 0.47%. The record date for capital reduction was set on March 15, 2023.
3.In order to protect the Company’s credit and shareholders’ equity, the Board of Directors resolved on May 4, 2023 to repurchase 20,000 thousand shares from May 5 to July 4, 2023. The number of shares repurchased by the Company as of July 4, 2023 was 10,021 thousand shares, with the amount of $152,788 thousand; the Company’s Board of Directors resolved on August 8, 2023 to cancel its treasury stocks. The amount of capital reduction was $100,210 thousand, with 10,021 thousand shares eliminated, and the capital reduction ratio was 0.51%. The record date for capital reduction was set on August 16, 2023.
4.In order to protect the Company’s credit and shareholders’ equity, the Board of Directors resolved on August 14, 2023 to repurchase 20,000 thousand shares from August 15 to October 14, 2023. The number of shares repurchased by the

－50－

Company as of October 14, 2023 was 16,673 thousand shares, with the amount of $252,848 thousand; the Company’s Board of Directors resolved on November 6, 2023 to cancel its treasury stocks. The amount of capital reduction was $166,730 thousand, with 16,673 thousand shares eliminated, and the capital reduction ratio was 0.85%. The record date for capital reduction was set on November 7, 2023.

5.In order to protect the Company’s credit and shareholders’ equity, the Board of Directors resolved on October 16, 2023 to repurchase 20,000 thousand shares from October 17 to December 16, 2023. The number of shares repurchased by the Company as of December 16, 2023 was 3,860 thousand shares, with the amount of $58,670 thousand.
6.Pursuant to the Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus.
7.Pursuant to the Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to shareholder’s rights before it is reissued.

6.25 Operating Revenue

Item Revenue from contracts with customers Sales revenue Construction revenue Processing revenue Realized (unrealized) profits from sales Total sales revenue from contracts with customers Less: Sales return Sales discount Net operating revenue	Year Ended December 31	Year Ended December 31
	2023 $23,731,298 805,036 183,949 97 $24,720,380 (496) (59,223) $24,660,661	2022
		$32,947,453 506,049 146,868 5,796
		$33,606,166 - (61,638)
		$33,544,528

1.Segments of revenue from contracts with customers

The Company’s source of revenue comes from providing goods and services that are transferred either over time or at a specific timing. Revenue can be split into the following segments:

(1)Segmented by revenue from different types of goods and services:

－51－

2023：

External customer Contract revenue Timing of revenue recognition Revenue recognized at a specific timing Revenue recognized over time Total 2022： External customer Contract revenue Timing of revenue recognition Revenue recognized at a specific timing Revenue recognized over time Total	Steel coils and steel pipes $23,671,579 $23,671,579 - $23,671,579 Steel coils and steel pipes $32,885,815 $32,885,815 - $32,885,815	Construction revenue $805,133 $ - 805,133 $805,133 Construction revenue $511,845 $ - 511,845 $511,845	Others $183,949 $183,949 - $183,949 Others $146,868 $146,868 - $146,868	Total $24,660,661 $23,855,528 805,133 $24,660,661 Total $33,544,528 $33,032,683 511,845 $33,544,528

2.Contract Balances

2.Contract Balances
Item Notes receivable and accounts receivable Contract assets - current Steel structure construction and overhead cranes Contract liabilities - current Unearned sales revenue Advance construction receipts Total	December 31
	2023 $1,761,503 $590,209 $443,300 77,861 $521,161	2022
		$1,234,745
		$228,625
		$54,346 130,148
		$184,494

(1)Changes in contract assets and contract liabilities were caused mainly by the difference of timing between when performance obligations were fulfilled and when customers make payments.

－52－

(2)Allowance for contract assets:

Allowance for contract assets:
Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Net		December 31 2023 2022 0%-0.5% 0%-0.5% $591,885 $229,676 (1,676) (1,051) $590,209 $228,625
		2023 0%-0.5% $591,885 (1,676) $590,209

The Company recognizes allowance losses on contract assets based on expected credit losses during existence. Contract assets will be transferred to accounts receivable at the time of billing. Its credit risk characteristics are the same as accounts receivable generated from similar contracts. Therefore, the Company believes that the expected credit loss rate of accounts receivable can also be applied to contracts. Changes in allowance losses on contract assets were as follows:

Beginning balance Add: Provision (Reversal) for impairment Ending balance		Year Ended December 31 2023 2022 $1,051 $405 625 646 $1,676 $1,051
		2023 $1,051 625 $1,676

(3)Amount from previous period’s satisfied performance obligations and beginning contract liabilities recognized in the current period as income were $54,346 thousand and $1,760,522 thousand for the years ended December 31, 2023 and 2022, respectively.

(4)As of December 31, 2023 and 2022, the transaction prices allocated to the performance obligations that were not fully satisfied amounted to $1,076,686 thousand and $1,120,036 thousand, respectively. The Company will recognize revenue as the construction is being completed and the expected timing for recognition of revenue is on various dates through June 2026.

6.26 Employee benefits, depreciation and amortization expense

Year Ended December 31,2023	Year Ended December 31,2023	Year Ended December 31,2023
OperatingCost $781,809 85,823 43,230 - 148,988 504,306 $1,564,156	OperatingExpense $365,222 35,854 17,960 10,439 44,221 23,136 $496,832	Total
		$1,147,031 121,677 61,190 10,439 193,209 527,442
		$2,060,988

－53－

Year Ended December 31, 2022

Nature Employee benefits Salary Insurance Pension (Note) Remuneration to directors Other employee benefits Depreciation Total	OperatingCost $810,677 84,362 45,333 - 149,833 493,655 $1,583,860	OperatingExpense $393,955 36,798 21,159 10,738 42,440 22,573 $527,663	Total
			$1,204,632 121,160 66,492 10,738 192,273 516,228
			$2,111,523

(Note ) Excluding pension of $209 thousand recognized as equipment prepayments. 1.As of December 31, 2023 and 2022, the Company had 1,433 and 1,394 employees, respectively. Among them 5 directors did not serve concurrently as employees in 2023 and 2022, respectively.

2. Additional disclosures are as follows:

(1)Average employee benefits for the year ended December 31, 2023 was $1,067 thousand (Amounts of employee benefits for the year ended December 31, 2023 less amounts of remuneration of directors for the year ended December 31, 2023/number of employees for the year ended December 31, 2023 less number of directors not serving concurrently as employees for the year ended December 31, 2023).
Average employee benefits for the year ended December 31, 2022 was $1,141 thousand (Amounts of employee benefits for the year ended December 31, 2022 less amounts of remuneration of directors for the year ended December 31, 2022/number of employees for the year ended December 31, 2022 less number of directors not serving concurrently as employees for the year ended December 31, 2022).
(2)Average salaries for the year ended December 31, 2023 was $803 thousand (Amounts of salaries for the year ended December 31, 2023/number of employees for the year ended December 31, 2023 less number of directors not serving concurrently as employees for the year ended December 31, 2023).
Average salaries for the year ended December 31, 2022 was $867 thousand (Amounts of salaries for the year ended December 31, 2022/number of employees for the year ended December 31, 2022 less number of directors not serving concurrently as employees for the year ended December 31, 2022).
(3)Changes of adjustments of average salaries was (6.52%) (Average salaries for the year ended December 31, 2023 less average salaries for the year ended December 31, 2022/average salaries for the year ended December 31, 2022).
(4) The company has established an audit committee, and the remuneration of independent directors has been included in the remuneration to directors for disclosure.
(5)The Company’s remuneration policies are as follows:
A.The remuneration of the directors of the company shall be determined in accordance with the rules of the remuneration system and structure of the company, with reference to the levels of competitors and listed companies. If the company

－54－

has net income, it shall be allocated in accordance with the provisions of the Articles of Incorporation, and shall be reported to the shareholders meeting after being reviewed by the remuneration committee and approved by the board of directors. If the director is also an employee, remuneration should be paid in accordance with the rules of B and C below.

B.The remuneration standards for the general manager, senior executive vice president and vice general manager of the company shall be determined by the human resource department in accordance with the relevant rules of the company's personnel performance appraisal, then depend on individual performance and contribution to the overall operation of the company, and with reference to the market peer levels. The remuneration standard shall be reviewed by the remuneration committee and approved by the board of directors.
C.The remuneration policy of the company is based on individual's ability, contribution to the company, and personal performance, and it is positively correlated with operating performance. The overall remuneration package mainly includes three parts: basic salary, bonuses, employees’ compensation, and benefits, etc. According to the remuneration standards, the basic salary is based on the market competition situation of the position held by the employee and the remuneration policy. Bonuses and employees’ compensation are paid in connection with the achievement of the employee's, department goals or the company's operating performance; the benefit design should be based on the premise of complying with the law and taking into account the demands of the employees.
3.According to Articles of Incorporation, compensation to employees and remuneration to directors shall neither be less than 0.2 % nor more than 0.1% of the net income before tax and before which the compensation to employees and remuneration to directors are deducted from. Due to the accumulated loss of the Company for the year ended December 31, 2023, the estimated amount of the above compensation and remuneration were all $0 thousand. Compensation to employees and remuneration to directors for 2022 was distributed at 0.2% and 0.1% of the net income before tax. Any changes in the amounts, if any, after the annual financial statements were authorized for issue, shall be recorded as a change in accounting estimate, and should be adjusted the next year.
4.Compensation to employees and remuneration to directors for the years ended December 31, 2023 and 2022 has been resolved and approved by the Board of Directors in March 2024 and 2023. Relevant amounts recognized in the financial statements are as follows:

Year Ended December 31	Year Ended December 31	Year Ended December 31
2023 Employees’ Compensation Directors’ Remuneration $ - $ - - - $- $-	2022
Employees’ Compensation $ - - $-	Employees’ Compensation $2,252 2,252 $-	Directors’ Remuneration
		$563 1,126
		($563)

－55－

The above-mentioned employee compensation was distributed in cash.

5.Information about employee compensation and remuneration to directors approved by the Board of Directors is available at the Taiwan Stock Exchange Market Observation Post System website.

6.27 Interest Income

Interest Income
Item Bank deposits Loans to others Others Total	Year Ended December 31
	2023 $20,286 28,198 875 $49,359	2022
		$6,804 4,741 403
		$11,948

6.28 Other Income

Other Income
Item Rental income Dividend income Other income Anti-dumping tax rebate income Insurance claims income Income from sales of scraps Guaranteed fee income Others Subtotal Total	Year Ended December 31
	2023 $3,953 47,370 422,312 84 31,697 18,627 22,081 494,801 $546,124	2022
		$14,740 6,191 - 125,787 41,559 26,654 18,984
		212,984
		$233,915

1.The Company’s Rolling Plant No. 3 was caught on fire in April 2018, resulting in damage of part of the equipment therein. The carrying amount of the damaged equipment was $85,048 thousand. Aside from recognizing deductible for fire loss of $7,000 thousand, an insurance claim receivable for the damaged part in the amount of $78,048 thousand was also recognized in December 31, 2018. In March-April 2022, the Company received the last phase of insurance claims amounting to $125,155 thousand, the accumulated insurance claims amounted to $566,315 thousand.

For tax rebate income from dumping, please refer to Note 6(5) for explanation.

－56－

6.29 Other gains and losses

Item
Disposal of interests in premises -
subsidiary
Gains and losses from disposal of premises
have been (not) realized
Subtotal of (loss) on disposal of premises
Gain (loss) on disposal of investments
under equity method
Valuation gain (loss) of financial assets
mandatorily measured at FVTPL
Net foreign exchange gain (loss)
Gain (loss) from disposal of property, plant,
and equipment
Dumping margins
Others
Total

Year Ended December 31
2023
2022
$ -
$1,782,116
(285)
(1,782,116)
(285)
-
-
122
1,451
(5,087)
54,910
369,283
(13,295)
(9,964)
-
(4,872)
(42)
(1,751)
$42,739
$347,731

2023
$ -
(285)
(285)
-
1,451
54,910
(13,295)
-
(42)
$42,739

6.30 Finance Costs

Item Interest on loans Interest on lease liabilities others Subtotal Less: Amount qualified for capitalization Finance costs	Year Ended December 31 2023 2022 $423,690 $364,733 3,572 3,893 3,503 4,705 430,765 373,331 (272) (403) $430,493 $372,928	Year Ended December 31 2023 2022 $423,690 $364,733 3,572 3,893 3,503 4,705 430,765 373,331 (272) (403) $430,493 $372,928
		2022
		$364,733 3,893 4,705
		373,331 (403)
		$372,928

6.31 Income Tax

1.Income tax expense

(1)Components of income tax expense

come Tax ncome tax expense (1)Components of income tax expense
Item Current income tax expense Adjustment to prior year income taxes Tax on undistributed retained earnings Tax refund on repatriation of offshore Land value incremental tax Deferred income tax originating and reversed temporary differences Income tax expense (benefit)	Year Ended December 31
	2023 $140,644 2,787 - - - (132,106)	2022
		$265,325 (408) 124,890 (6,120) 30,687 (101,239)
	$11,325	$313,135

－－ 57

(2)Income tax expense (benefit) associates with other comprehensive income Year Ended December 31 Item 2023 2022 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method Exchange differences on translation of foreign financial statements ($31,960) $44,723 Remeasurement of defined benefit plans 10,960 17,444 Total ($21,000) $62,167	(2)Income tax expense (benefit) associates with other comprehensive income Year Ended December 31 Item 2023 2022 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method Exchange differences on translation of foreign financial statements ($31,960) $44,723 Remeasurement of defined benefit plans 10,960 17,444 Total ($21,000) $62,167	(2)Income tax expense (benefit) associates with other comprehensive income Year Ended December 31 Item 2023 2022 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method Exchange differences on translation of foreign financial statements ($31,960) $44,723 Remeasurement of defined benefit plans 10,960 17,444 Total ($21,000) $62,167
	2023 ($31,960) 10,960 ($21,000)	2022
		$44,723 17,444
		$62,167

2.Reconciliation of income before income tax and income tax expense recognized in profit or loss is as follows:

in profit or loss is as follows:
Item Income (loss) before tax Income tax expense (benefit) at the statutory rate Tax effect of adjusting items: Investment loss (gain) recognized under equity method Unrealized inventory valuation loss (recovery gain) Timing difference of revenue recognition Unrealized (realized) investment loss Other adjustments Tax refund on repatriation of offshore funds Adjustment to prior year income taxes Tax on undistributed retained earnings Land value increment tax Net changes of deferred income tax Income tax benefit recognized in profit or loss	Year Ended December 31 2023 2022 ($1,070,262) $1,122,642 ($214,052) $224,528 362,685 184,301 (24,862) (21,133) 16,838 (103,136) (2,050) (2,074) 2,085 (17,161) - (6,120) 2,787 (408) - 124,890 - 30,687 (132,106) (101,239) $11,325 $313,135
	2023
	($1,070,262)
	($214,052) 362,685 (24,862) 16,838 (2,050) 2,085 - 2,787 - - (132,106)
	$11,325

The Company applied for and was approved the repatriation of offshore funds (including mainland China) within the time limit in accordance with the “The Management, Utilization, and Taxation of Repatriated Offshore Funds Act” effective from August 15, 2019. The applicable tax rate exempt from taxation is 8% for the first year and 10% for the second year under the general income tax system. A profit-seeking enterprise may apply to the Ministry of Economic Affairs for engaging in substantive investment within one year from the date of repatriating funds and has a 50% tax refund preference when completing the investment within the time limit.

3.Deferred income tax assets or liabilities from temporary differences, loss carry forwards and investment credits:

－58－

	Year Ended December 31,2023	Year Ended December 31,2023
Beginning balance $105,882 173,509 28,008 14,134 791 14,852 10,687 56,915 668 386 32,082 $437,914	Recognized in profit or loss $136,669 - (24,862) - (195) (1,402) 21 (11,441) 16,838 16,619 (141) $132,106	Recognized in other comprehensive income $ - 31,960 - - - - - (10,960) - - - $21,000	Ending balance
			$242,551 205,469 3,146 14,134 596 13,450 10,708 34,514 17,506 17,005 31,941
			$591,020

	Year Ended December 31,2022	Year Ended December 31,2022
Beginning balance $ - 218,232 49,141 14,134 373 16,695 10,002 86,704 103,804 - 40,034 $539,119 ($4,846) (135,431) ($140,277) $398,842	Recognized in profit or loss $105,882 - (21,133) - 418 (1,843) 685 (12,345) (103,136) 386 (7,952) ($39,038) $4,846 135,431 $140,277 $101,239	Recognized in other comprehensive income $ - (44,723) - - - - - (17,444) - - - ($62,167) $ - - $- ($62,167)	Ending balance
			$105,882 173,509 28,008 14,134 791 14,852 10,687 56,915 668 386 32,082
			$437,914
			$ - -
			$-
			$437,914

－－ 59

4.Items not recognized as deferred income tax assets:

Item Temporary differences Investment loss recognized under equity method Impairment loss on investments under the cost approach Remeasurement of defined benefit plans Exchange differences on translation of foreign financial statements Total	December 31	December 31
	2023 $1,008,537 46,539 (3,231) 53,979 $1,105,824	2022
		$701,412 46,539 2,216 54,022
		$804,189

5.The Company’s income tax returns through 2021 have been ratified by the tax authorities.

6.32 Other Comprehensive Income

Year Ended December 31, 2023	Year Ended December 31, 2023	Year Ended December 31, 2023
Before tax $54,801 58,823 27,237 113,365 254,226 (159,584) 1,726 (157,858) $96,368	Income tax expense (benefit) ($10,960) - - - (10,960) 31,960 - 31,960 $21,000	Aftertax
		$43,841 58,823 27,237 113,365
		243,266
		(127,624) 1,726
		(125,898)
		$117,368

－60－

Year Ended December 31, 2022	Year Ended December 31, 2022	Year Ended December 31, 2022
Income tax expense (benefit) Aftertax ($17,444) $69,777 - (88,481) - 82,765 - (167,219) (17,444) (103,158) (44,723) 461,886 - 4,407 (44,723) 466,293 ($62,167) $363,135 Year Ended December 31		Aftertax
		$69,777 (88,481) 82,765 (167,219)
		(103,158)
		461,886 4,407
		466,293
		$363,135
2023 ($1,081,587) 1,962,822 ($0.55) ($1,081,587) 1,962,822 24 1,962,846	2022
	$809,507 1,983,205
	$0.41
	$809,507
	1,983,205 241
	1,983,446

－61－

outstanding after dilution (thousand shares) Diluted earnings (loss) per share (after tax)(NT$)

$0.41

($0.55)

(Note) Since the Company offered to settle compensation paid to employees in cash or shares, the Company assumed the entire amount of the compensation would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

7.RELATED PARTY TRANSACTIONS

7.1 Parent and ultimate controlling party.

The Company is the ultimate controlling party of the Company.

Related party category

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Other related party
Other related party

－62－

Names of related parties

LI-SIN Business Co., Ltd. Skylark International Hotel Co., Ltd. Pacific Harbor Stevedoring Corporation Yieh Corporation ., Ltd. Royal Palace Hong Kong Style Restaurant Co., Ltd. Unipattern Corporation Co., Ltd Wei Hong Investment Development Co., Ltd. Lian Cheng Ready-Mixed Products Co., Ltd. New Spring Construction Corp. E-Da Royal Hotel Company Ltd. E-Da Hospital I-Shou University I-Shou University Internship Center Long Hua Travel Services Co., Ltd.

Related party category

Other related party Other related party Other related party Other related party Other related party

Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party

7.3 Significant transactions with related parties

1.Operating revenue

Item Sales revenue Construction revenue	Related party category/Name Subsidiaries Associates Other related parties Total Subsidiaries Associates Other related parties Total	Year Ended December 31 2023 2022 $976,575 $983,795 1,391,200 2,816,098 2,105,123 1,446,501 $4,472,898 $5,246,394 $21,933 $3,925 97,500 47,382 358,680 114,385 $478,113 $165,692
		2023 $976,575 1,391,200 2,105,123 $4,472,898 $21,933 97,500 358,680 $478,113

(a)Selling price to the related parties, including hot rolled steel coils, galvanized steel coils, scraps (bars), etc. and trading terms were the same with those to other customers. Payment terms were within one to two months.
(b)Selling price of carbon steel and steel scraps to related parties were set with reference to the purchase price of a non-related party as a trading counterparty. Payment term is monthly, and closes in 15 days.
(c)The construction contracts between the Company and above-mentioned related parties were established at prices negotiated by both parties. Contract proceeds were collected according to the payment terms stated in these contracts. Unless agreed on by both parties, payments cannot be delayed.

－63－

2.Purchases

Purchases
Related party category/Name Subsidiaries Associates Other related party: Yieh Hong Enterprise Co., Ltd. Others Total	Year Ended December 31
	2023 2022 $1,355 $191 185,467 504,675 5,086,474 5,440,217 39,231 33,937 $5,312,527 $5,979,020

Items purchased by the company from above related parties were mainly stainless billets and carbon steel billets. The purchase prices were similar to that offered to other suppliers. Payment term is LC at sight or T/T before shipment (not significantly different than terms to other suppliers).

3.Contract assets

Item Contract assets	Related party category/Name Subsidiaries Associates Yieh United Steel Corp. Other related party: New Spring construction Corp. Total Less: Loss allowance Net	December 31 2023 2022 $14,344 $1,795 83,702 45,158 450,588 113,327 $548,634 $160,280 - - $548,634 $160,280
		2023 $14,344 83,702 450,588 $548,634 - $548,634

4.Contract liability

Item Contract liability	Related party category/Name Subsidiaries Associates Other related parties Total	December 31 2023 2022 $1,601 $ - 5,052 188 1,325 653 $7,978 $841
		2023 $1,601 5,052 1,325 $7,978

5.Receivables from related parties (excluding loans to related parties and Contract assets )

－64－

		December	31
Item	Related party category/Name	2023	2022
Notes receivable	Other related parties	$22	$21
	Associates	55	55
	Total	77	76
	Less: Loss allowance	-	-
	Net	$77	$76
Accounts	Subsidiaries	$42,850	$92,917
receivable	Associate:
	Asiazone Co., Ltd.	48,525	340,496
	Others	82,668	25,249
	Other related parties	36,739	29,081
	Total	$210,782	$487,743
	Less: Loss allowance	(475)	(2,060)
	Net	$210,307	$485,683
Other receivables	Subsidiary:
	Shin Yang Steel Co., Ltd.	$1,560	$1,801,941
	Others	6,018	7,597
	Associates	8,406	18,928
	Other related party:	21,853	4,274
	Total	$37,837	$1,832,740
	Less: Loss allowance	-	-
	Net	$37,837	$1,832,740
Refundable	Subsidiary:
deposits	Yieh Phui America Inc.	$733,850	$758,537
6.Payables to related parties (excluded loans from related parties)
		December	31
Item	Related party category/Name	2023	2022
Notes payable	Subsidiaries	$-	$550
	Associates	44	30
	Other related parties	3,559	578
	Total	$3,603	$1,157
Accounts payable	Subsidiaries	$1,078	$-
	Associates	10,706	5,343
	Other related parties	7,764	5,901
	Total	$19,548	$11,244
Other payables	Subsidiaries	$1,241	$4,845
	Associates	3,351	2,649
	Other related parties	1,640	1,480
	Total	$6,232	$8,974

－65－

7.Prepayments

Prepayments
Related party category/Name Other related party: Yieh Hong Enterprise Co., Ltd.	December 31
	2023 $10,568	2022
		$129,000

8.Asset transaction
(1)Acquisition of property, plant and equipment: 2023:

023:
Related party category/Name Subsidiaries Associates	Transaction target Other equipment Transportation Equipment	Transaction amount
		$4,113 1,150

The above-mentioned transaction prices were agreed on by both parties upon negotiation. As of December 31, 2023, the transaction payments were fully paid.

2022:

022:
Related party category/Name Subsidiaries Other related parties	Transaction target Other equipment Computer communication equipment and Construction in progress	Transaction amount
		$1,291 823

The above-mentioned transaction prices were agreed on by both parties upon negotiation. As of December 31, 2022, the transaction payments were fully paid.

(2) The Company's Board of Directors resolved on August 8, 2022 to sold the land of Yuliao Rd., Qiaotou Dist. and Ding-Yen-Tien Section in Qiaotou District, with a total area of 7,623.38 square meters and the buildings located on Yuliao Rd., Qiaotou Dist. in Qiaotou District, with a total area of 353.68 square meters to Shin Yang Steel Co., Ltd. The total contract price was $2,566,535 thousand, from which the disposal gain of $1,782,116 thousand will be derived. Since Shin Yang Steel Co., Ltd. is a 100%-owned subsidiary of the Company, the disposal gain will be fully written off.

Item Property, plant and equipment Land Buildings Investment Property Land Total	Transaction amount	Gains or loss on disposal
	$1,054,570 21,653 1,490,312	$740,848 (5,694) 1,046,962
	$2,566,535	$1,782,116

－66－

The above-mentioned transaction prices were by reference to appraisal reports offered by professional institutions, and were agreed on by both parties upon negotiation or through price comparison. As of December 31, 2022, the unrecovered portion were $1,800,000 thousand.

(3) Disposal of other assets:

2023:None.

2023:None.
2022:
Related party category /		Transaction	Gain or loss on
Name	Transaction target	amount	disposal
Other related party	E-Da Health
	Biotechnology Co., Ltd	$3,800	$122
	Shares

The above-mentioned transaction price of shares was agreed on by both parties upon negotiation with reference to the net worth per share of the investees. As of December 31, 2022, all the transaction amount was fully recovered.

9.Lessee agreement:

(1)Acquisition of right-of-use assets:

2023:None. 2022: Related party category / Name Subsidiaries Shin Yang Steel Co., Ltd.	Transaction target Administration Building	Transaction amount $18,457

(2) In November 2022, the Company terminated the lease contract with subsidiary by prior to the expiration date. As a result, right-of-use assets and lease liabilities decreased by $1,206 and $1,249, respectively, and gain arising from lease modification of $43 was recognized as other gains and losses.
(3) Lease Liability:

(3) Lease Liability:
Item Lease liabilities (4) Other expenses: Item Interest expense Rent expense	Transaction target Subsidiaries Related Party Category Subsidiaries Associates Other related parties Total	December 31
		2023 2022 $149,813 $159,333 Year Ended December 31	2022
			$159,333
		2023 $3,046 $6,526 2,537 $9,063	2022
			$2,893
			$6,449 2,437
			$8,886

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Above lease terms are based on the contract, and rent is paid monthly or quarterly.

10.Lessor agreement:

The Company leased the lands in Yuliao Rd., Qiaotou Dist. and Ding-Yen-Tien Section in Kaohsiung City, with a total area of 13,849 square meters to its subsidiary, Shin Yang Steel Co., Ltd. under operating leases. The lease term started is from April 1, 2015 to March 31, 2025, for a total of 10 years. The rent is collected on a monthly basis with reference to the rent level of similar assets. In November 2022, the Company terminated the lease contract by prior to the expiration date. The rental income were $10,813 thousand for the years ended December 31, 2022. As of December 31, 2022, the total lease payments to be received in the future were $0 thousand, respectively.

11. Loans to related parties: (1)Other receivables

Type of related party / Name Subsidiary： United Brightening Development Corp. Kuo Chang Enterprise Co., Ltd. Total Type of related party / Name Subsidiary： United Brightening Development Corp. Kuo Chang Enterprise Co., Ltd. Total	Year Ended December 31, 2023 Endingbalance Highest balance $711,000 $1,065,000 303,000 460,000 $1,014,000 $1,525,000 Year Ended December 31, 2022 Endingbalance Highest balance $325,000 $325,000 145,000 145,000 $470,000 $470,000
	Endingbalance $325,000 145,000 $470,000

(2)Interest income

Type of related party / Name Subsidiary： United Brightening Development Corp. Kuo Chang Enterprise Co., Ltd. Total Interest Rate Range	Year Ended December 31, 2023 $19,723 8,475 $28,198 3.19%	Year Ended December 31, 2022 $3,283 1,458 $4,741 2.57%~2.89%

－68－

12.Endorsements and guarantees:

(1)The Company borrowed from banks for the related parties and details of endorsement were as follows:

ements and guarantees: Company borrowed from banks rsement were as follows:	for the related parties and details of	for the related parties and details of
Type of relatedparty Subsidiaries Type of relatedparty Subsidiaries	December 31,2023
	Currency Amount USD 119,000 CNY 575,000 December 31,2022	Amount
	Currency USD CNY NTD	Amount
		114,000 1,400,000 456,000

(2)Lands and Buildings were provided by subsidiaries as collateral for bank loans amounted to $981,890 and $1,881,890 thousand as of December 31, 2023 and 2022.
(3)The company provided Lands for subsidiaries as collateral for bank loans amounted to $0 and $336,000 thousand as of December 31, 2023 and 2022.

13.Others

(1)Miscellaneous income

thers )Miscellaneous income
Relatedpartycategory/Name Subsidiaries Associate： Yieh United Steel Corp. Others Other related parties Total	Year Ended December 31
	2023 $27,330 15,138 1,996 50 $44,514	2022
		$36,480 30,751 2,297 241
		$69,769

These were mainly guarantee fee, and technical service income, etc.

(2)Miscellaneous expenses

)Miscellaneous expenses
Relatedpartycategory Subsidiaries Associates Other related parties Total	Year Ended December 31
	2023 $21,520 34,725 124,733 $180,978	2022
		$25,890 31,148 105,061
		$162,099

These were mainly technical service, and export cost, etc.

－－ 69

(3)Construction contracts

(a)Construction contracts in progress with related parties as of December 31, 2023 were as follows:

Type of related party / Name Subsidiaries Associates Other related party： New Spring Construction Corp.	Name of construction Control room new construction project, etc. Precision steel belt factory crane assembly engineering, etc. Ground structures construction for E-Da Asia Commercial Plaza, etc.	Total contract price $36,825 292,610 2,447,855	Total costs incurred and Recognized profits and losses/ Amount of money requested Contract assets / liabilities $21,618/ $8,875 $14,344 / $1,601 155,553/ 76,903 83,702/ 5,052 1,724,040/ 1,274,777 450,588/ 1,325

(b)Construction contracts in progress with related parties as of December 31, 2022 were as follows:

Type of related party / Name Subsidiaries Associates Other related party： New Spring Construction Corp.	Name of construction Plant column beam renewal and assembly engineering, etc. Precision steel belt factory crane assembly engineering, etc. Ground structures construction for E-Da Asia Commercial Plaza, etc.	Total contract price $7,616 83,136 4,119,005	Total costs incurred and Recognized profits and losses/ Amount of money requested $1,795/ $- 62,270/ 17,300 3,321,507/ 3,208,833	Contract assets / liabilities
				$1,795/ $- 45,158/ 188 113,327/ 653

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14.Where the Company participated in the cash offering by related parties and consequently increased its investment are disclosed as follows: 2023:

2023:
Investee Subsidiary： Lian So(H.K) Co., Limited Hong Yuh Assets Management Co., Ltd. Sin Bang Investment & Development Co., Ltd. Associate： E-Da Bus Transportation Co., Ltd. Xinzhan Engineering and Management Consultants Co., Ltd. E-Da Development Corp.	Investment Increase Shares (thousand shares) Amount 2,400 73,080 1,600 16,000 350 3,500 1,025 10,252 640 6,400 8,533 85,327	Shareholding Percentage Before Offering After Offering 80.00% 80.00% 80.00% 80.00% 100.00% 100.00% 17.09% 17.09% 32.00% 32.00% 28.44% 28.44%
	Shares (thousand shares) 2,400 1,600 350 1,025 640 8,533	Before Offering 80.00% 80.00% 100.00% 17.09% 32.00% 28.44%

2022:

2022:
Investee Subsidiary： Hong Yuh Assets Management Co., Ltd. Great Emperor Hotel Co., Ltd. Corp. United Brightening Development Corp. Kuo Chang Enterprise Co., Ltd. Associate： Xinzhan Engineering and Management Consultants Co., Ltd. E-Da Bus Transportation Co., Ltd. Other related party： Skylark International Hotel Co., Ltd	Investment Increase Shares (thousand shares) Amount 32,800 328,000 25,000 257,500 7,167 71,670 2,971 29,712 320 3,200 1,025 10,252 5,472 54,718	Shareholding Percentage Before Offering After Offering 80.00% 80.00% 58.17% 60.15% 95.56% 95.56% 99.04% 99.04% - 32.00% 17.09% 17.09% 13.68% 13.68%
	Shares (thousand shares) 32,800 25,000 7,167 2,971 320 1,025 5,472	Before Offering 80.00% 58.17% 95.56% 99.04% - 17.09% 13.68%

15.The Company entrusted the subsidiary, Yieh Phui America Inc., to sell the prepainted and galvanized steel coils amounted to $3,798,390 thousand and $5,965,781 thousand, respectively. Due to the above transactions, the contract liabilities were $370,240 thousand and $0 thousand as of December 31, 2023 and 2022, respectively.

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Part of the land of the Company are unable to be registered under the name of the Company.

Major transaction

Type of related party Amount Other related parties

8,516 Some of the Company’s lands recorded as property, plant, and equipment, are unable to be registered under the name of the Company temporarily and registered under the executive specialist of the Company due to regulation restriction. Accordingly, the lands are mortgage registered to the Company as safeguard measures.

7.4 Information about remunerations to the major management:

Item Salary and other short-term employee benefits Benefits after retirement Other long-term employee benefits Termination benefits Share-based payments Total	Year Ended December 31	Year Ended December 31
	2023 $28,285 575 - - - $28,860	2022
		$31,712 12,536 - - -
		$44,248

8.PLEDGED ASSETS

The following assets have been pledged as collateral for long-term and short-term loans:

Item Subtotal of other financial assets - current Pledged demand deposits Sub-total of other financial assets - noncurrent Pledged time deposits Property, plant and equipment (net) Total	December 31 2023 2022 $- $30,710 306 304 5,027,130 5,381,147 $5,027,436 $5,412,161
	2023 $- 306 5,027,130 $5,027,436

9.SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED

CONTRACT COMMITMENTS

(1)Guarantee notes issued to banks by the Company for loans and purchases performance totaled $25,496,697 thousand and $25,717,711 thousand of as December 31, 2023 and 2022, respectively.

(2) Guarantee notes received by the Company for its contract performance and creditor’s right totaled $190,010 thousand and $158,275 thousand as of December 31, 2023 and 2022, respectively.

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(3)The unused letters of credit as of December 31, 2023 and 2022 are as follows:

December 31,2023 L/C Amount SecurityDeposit NTD 492,989 - USD 7,458 -	December 31,2022	December 31,2022
L/C Amount NTD 492,989 USD 7,458	L/C Amount NTD 387,728 USD 9,745	SecurityDeposit
		- -

(4)For the Company’s endorsement for others as of the years ended December 31, 2023 and 2022, please refer to Note 7.3.12.
(5)As of December 31, 2023 and 2022, guarantees provided to banks by the Company for performance and warranty amounted to $21,263 thousand, and $35,097 thousand, respectively.
(6)The Company entered into raw material purchase agreements with suppliers of Zinc Ingot and Aluminum alloy, including Parex, Royal and Nexa, etc. The price was agreed on by both parties upon negotiation. As of December 31, 2023, the unperformed portion totaled 815 tons, amounting to $66,847 thousand.
(7)Great Emperor Hotel Co., Ltd. and Kings Garden International Co., Ltd., two subsidiaries, entered into the syndicated loan agreements with Land Bank of Taiwan and First Commercial Bank in August 2014. Yieh United Steel Corp., Yieh Phui Enterprise Co., Ltd., and Yieh Hsing Enterprise Co., Ltd. issued a commitment letter before the first use that. the Company and its related parties shall jointly hold more than 50% of Kings Garden International Co., Ltd. and Great Emperor Hotel Co., Ltd.’s issued shares and gain the majority of directors' seats at all times. The YIEH PHUI Company held 100% of Kings Garden International Co., Ltd. and Great Emperor Hotel Co., Ltd. and acquired all directors' seats of both companies as of December 31, 2023.

10.SIGNIFICANT DISASTER LOSS:NONE.

11.SIGNIFICANT SUBSEQUENT EVENTS

The Company’s Board of Directors resolved on January 25, 2024 to cancel its treasury stocks. The amount of capital reduction was $38,600 thousand, with 3,860 thousand shares eliminated, and the capital reduction ratio was 0.20%. After capital reduction, the share capital was $19,453,110 thousand. The record date for capital reduction was set on February 15, 2024.

12.OTHERS

(1) Capital risk management

As the Company needs to maintain sufficient capital to meet the needs for expansion and plant and equipment improvement, capital management of the Company focuses on ensuring there are sufficient financial resources and operating plans to meet the demands for operating capital, capital expenditure, research and development expense, loan repayment and dividend distribution in the next 12 months.

(2) Financial Instruments

1. Financial risk of financial instruments

The Company’s daily operations are affected by various financial risks, e.g. market risk (including exchange rate, interest rate and price risks), credit risk and liquidity risk. The Company is devoted to identify, assess and avoid market uncertainties in order to eliminate the potential adverse effects of market changes on the financial performance.

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Before engaging in significant transactions, due approval process by the Board of Directors must be carried out based on related protocols and internal control procedures. While the financial plan is underway, the Company shall comply with relevant financial operation procedures on the overall financial risk management and segregation of duties at all times.

The nature and degree of significant financial risks

A. Market risks
(A) Foreign exchange rate risk:
- The Company is exposed to exchange rate risk arising from the sales, purchases and borrowings in currencies other than the Company’s functional currency, as well as from net investment of foreign operations. Functional currencies adopted by entities within the Company mainly comprise New Taiwan Dollars, Such transactions are denominated mainly in USD. To avoid a decrease in the value of assets dominated in foreign currency and volatility in future cash flows due to changes in exchange rates, the Company hedges the exchange rate risk with foreign-currency borrowings and derivative financial instruments .Those derivative financial instruments can diminish but not completely eliminate the impacts of changes in exchange rate. As net investments in foreign operations are for strategic purposes, they are not hedged by the Company.
- a. Exchange rate exposure and sensitivity analysis:

Exchange rate		December 31, 2023	December 31, 2023	December 31, 2023
	Presented amount (New Taiwan Dollars) 3,563,610 10,468,524	Sensitivity Analysis
		Range of change Effects on profit or loss UP1% 35,636 UP1% - December31,2022		Effects on Equity
30.705 30.705 Exchange rate				- 104,685
	Presented amount (New Taiwan Dollars) 3,174,547 10,363,261	SensitivityAnalysis
		Range of change UP1% UP1%	Effects on profit or loss 31,745 -	Effects on Equity
30.71 30.71				- 103,633

－－ 74

If NTD appreciates against the above-mentioned currencies, held all other variables constant, the impact generated as of December 31, 2023 and 2022 would stay the same with the reverse result.

b. Due to the exchange rate volatility, total exchange gains and losses (including realized and unrealized) from the Company’s monetary items amounted to $54,910 thousand and $369,283 thousand for the years ended December 31, 2023 and 2022, respectively.
(B) Price risk
Since the Company’s investment in securities is classified as financial assets at FVTPL or financial assets at FVTOCI on the standalone balance sheet, the Company does not expose to price risks of securities.
The Company mainly invests in domestic listed and unlisted stocks and beneficiary certificates. The price of such securities can be affected by changes in future value of those investment targets.
If the security price goes up or down by 1%, the post-tax profit or loss for the year 2023 and 2022 will increase or decrease by $347 thousand and $339 thousand due to the increase or decrease of the fair value of financial assets measured at FVTPL. The post-tax other comprehensive income for the year 2023 and 2022 will increase or decrease by $7,792 thousand and $7,330 thousand due to the increase or decrease of the fair value of financial assets measured at FVTOCI.
(C) Interest rate risk
The carrying amount of the Company’s financial assets and financial liabilities that are exposed to interest rate risk at the reporting date is stated as follows:

liabilities that are exposed to as follows:	interest rate risk at the	reporting date is stated
Item With fair value interest rate risk Financial assets Financial liabilities Net With cash flow interest rate risk Financial assets Financial liabilities Net	Carrying	Amount December 31,2022 $304 (908,045) ($907,741) $2,427,608 (15,900,305) ($13,472,697)
	December 31,2023 $92,436 (1,198,612) ($1,106,176) $2,457,841 (15,052,536) ($12,594,695)

a. Sensitivity analysis of those with fair value interest rate risk:
The Company does not classify any fixed-rate instruments as financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. In addition, the Company does not designate derivatives (interest rate swap) as hedge instruments under hedge accounting. Therefore, the change of interest rate at reporting date does not have influence on net income and other comprehensive income.

－－ 75

  - b. Sensitivity analysis of those with cash flow interest rate risk: The interest-fluctuate instruments possessed by the Company were floating-interest assets (liabilities). Therefore the effective interest rate, as well as the future cash flows, changes along with the market movement. Every one percent decrease (increase) in the market interest rate will increase (decrease) the net profit by ($125,947) thousand and ($134,727) thousand for 2023 and 2022, respectively.

B. Credit risk
Credit risk refers to the risk of financial loss to the Company arising from default by counter-parties of financial instruments on the contract obligations. Credit risk of the Company mainly comes from receivables under operating activities and bank deposits and other financial instruments under investing activities. Credit risks related to operation and finance risks are managed separately.

Credit risk related to operations

To maintain the quality of accounts receivable, the Company has established the procedures for credit risk management with regards to its operations. Risk assessment on individual customer includes factors that could affect the customer's ability to pay, such as the customer's financial status, the Company’s internal credit ratings, historical transactions and current economic conditions. Financial credit risk

The credit risks of bank deposits and other Financial instruments are measured and monitored by the Company’s financial departments. The Company does not expect significant credit risk because the counterparties are creditworthy and investment-graded financial institutions, companies and government agencies without any significant default concerns. In addition, the Company does not have any debt instrument investments that are either measured at amortized cost, or at FVTOCI.

(A) Credit concentration risk

As of December 31, 2023 and 2022, the top ten clients accounted for 47.54% and 71.52% of the Company’s accounts receivable, indicating a credit concentration risk. However, no significant credit concentration risk was shown from the remaining accounts receivables.

(B) Measurement of expected credit impairment loss
a. Accounts receivables and contract assets apply the simplified approach. Please refer to Note 6.4 and Note 6.25 for details.
b. Indications for determining whether the credit risk is increased significantly: None (the Company does not have any debt instrument investments that are either measured at amortized cost, or at FVTOCI).
c. Collaterals and other credit enhancement held to avoid credit risks from financial assets

The following table shows the maximum exposure to credit risk regarding financial assets recognized in the standalone balance sheets, pledged collateral, master netting arrangements and other credit enhancement held by the Company:

－－ 76

Decreased amount of maximum exposure to credit risks	Decreased amount of maximum exposure to credit risks	Decreased amount of maximum exposure to credit risks	Decreased amount of maximum exposure to credit risks
Collateral $- - - $-	Net Settlement Agreement $- - - $-	Other Credit Enhancement $- - - $-	Total
			$-
			- -
			$-

Decreased amount of maximum exposure to credit risks	Decreased amount of maximum exposure to credit risks	Decreased amount of maximum exposure to credit risks	Decreased amount of maximum exposure to credit risks
Collateral $- - - $-	Net Settlement Agreement $- - - $-	Other Credit Enhancement $- - - $-	Total
			$-
			- -
			$-

C. Liquidity risk

(A) Liquidity risk management

The Company’s objecting in managing liquidity risk is to maintain a sufficient level of cash and cash equivalents, highly-liquid marketable securities and credit lines with banks for daily operations in order to ensure the financial flexibility of the Company.

(B) The table below shows an analysis of the financial liabilities held by the Company with defined repayment terms based on maturity dates and undiscounted payment at maturity:

December 31, 2023

Within 6 months	7-12 months	1-2 years	2-5 years	Over 5 years $ - - - - -	Contractual cash flows $6,177,256 1,000,000 481,914 485,514 684,108	Carrying amount
$5,607,256 1,000,000 481,914 485,514 684,108	$570,000 - - - -	$ - - - - -	$ - - - - -			$6,177,256 998,681 481,914 485,514 684,108

－－ 77

Lease liabilities (including current portion) Long-term loans (including current portion) Guarantee deposits Received Subtotal	7,938 961,976 -	7,571 761,976 -	12,116 2,427,952 -	32,661 4,727,325 -	192,230 13,360 2,000 $207,590	252,516 8,892,589 2,000 $17,975,897	199,931 8,875,280 2,000
	$9,228,706	$1,339,547	$2,440,068	$4,759,986			$17,904,684

Further information on the maturity analysis of lease liabilities is as follows:

Less than 1year 1-5 years 5-10 years 10-15 years 15-20 years Over 20 years Total undiscounted lease payments Lease liabilities $15,509 $44,777 $50,733 $42,735 $42,735 $56,027 $252,516 December 31,2022 Non-derivative financial Liability Within 6 months 7-12 months 1-2 years 2-5 years Over 5 years Contractual cash flows Carrying amount Short-term loans $4,794,747 $1,155,000 $ - $ - $ - $5,949,747 $5,949,747 Short-term notes and bills payable 700,000 - - - - 700,000 698,755 Notes payable 312,774 - - - - 312,774 312,774 Accounts payable 435,057 - - - - 435,057 435,057 Other payables 674,450 3,378 - - - 677,828 677,828 Lease liabilities (including current portion) 7,653 8,673 15,022 32,624 199,904 263,876 209,290 Long-term loans (including current portion) 790,476 590,476 1,475,951 7,090,997 27,640 9,975,540 9,950,558 Guarantee deposits Received - - - - 2,000 2,000 2,000 Subtotal $7,715,157 $1,757,527 $1,490,973 $7,123,621 $229,544 $18,316,822 $18,236,009	Less than 1year	1-5 years	5-10 years	10-15 years	10-15 years	10-15 years	Over 20 years $56,027	Total undiscounted lease payments
	$15,509	$44,777	$50,733	$42,735				$252,516

	Within 6 months	7-12 months	1-2 years		2-5 years	Over 5 years $ - - - - - 199,904 27,640 2,000 $229,544	Contractual cash flows	Carrying amount
Short-term loans Short-term notes and bills payable Notes payable Accounts payable Other payables Lease liabilities (including current portion) Long-term loans (including current portion) Guarantee deposits Received Subtotal	$4,794,747 700,000 312,774 435,057 674,450 7,653 790,476 -	$1,155,000 - - - 3,378 8,673 590,476 -	$ - - - - - 15,022 1,475,951 -		$ - - - - - 32,624 7,090,997 -			$5,949,747 698,755 312,774 435,057 677,828 209,290 9,950,558 2,000
	$7,715,157	$1,757,527	$1,490,973		$7,123,621			$18,236,009

Further information on the maturity analysis of lease liabilities is as follows:

	follows:
Lease liabilities	Lessthan 1year	1-5 years	5-10 years	10-15 years	15-20 years $42,277	Over 20 years $63,031	Total undiscounted lease payments
	$16,326	$47,646	$52,318	$42,278			$263,876

The Company does not expect a maturity analysis of which the cash flows timing would be significantly earlier, or the actual amount would be significantly different.

Types of Financial instruments

significantly different. 2. Types of Financial instruments
Financial assets Financial assets measured at amortized cost Cash and cash equivalents Notes receivables and accounts receivables (including related parties) Other receivables(including related parties) Other financial assets - current	December 31
	2023 $1,797,422 1,761,503 1,512,579 -	2022
		$2,133,667 1,234,745 2,383,381 30,710

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Refundable deposits	737,157	782,097
Other financial assets - noncurrent	306	304
Financial assets at fair value through profit or loss - current	34,668	33,914
Financial assets at fair value through other comprehensive income or loss - noncurrent	779,160	732,973
Financial liabilities
Financial liabilities measured at amortized costs
Short-term loans	6,177,256	5,949,747
Short-term notes and bills payable	998,681	698,755
Notes payable and accounts payable (including related parties)	967,428	747,831
Other payables (including related parties)	684,108	677,828
Long-term loans (including current portion)	8,875,280	9,950,558
Lease liabilities (including current portion)	199,931	209,290
Deposits received	2,000	2,000

(3) Fair Value Information:

For information on fair value of financial assets and financial liabilities not measured at fair value, please refer to Note 12(3)3. For fair value of investments in associates with quoted prices in an open market, please refer to Note 6.9.
Definition of the three levels in fair value:

Level 1:

Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks and beneficiary certificates with quoted market prices is included in Level 1.

Level 2

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3

Unobservable inputs for the asset or liability. The fair value of the Company’s investment in certain derivative instruments, equity investment without active market is included in Level 3.

Financial instruments not measured at fair value
Management of the Company thinks that the carrying amount of financial instruments not measured at fair value, including cash and cash equivalents, accounts receivables, other financial assets, refundable deposits, short term loans, short-term bills payable, accounts payable, lease liabilities (including current and non-current), long-term loans (including current portion), and deposits received, is the reasonable approximation of their fair value.
Fair value hierarchy:

The fair value hierarchy of financial instrument is measured at fair value on a recurring basis. Information about the Company’s fair value hierarchy is disclosed in the following table:

－－ 79

	December 31,2023	December 31,2023
Level 1 $34,668 - 21,993 $56,661	Level 2 Level 3 $ - $ - - 757,167 - - $ - $757,167 December 31,2022		Total
			$34,668 757,167 21,993
			$813,828

Level 1 $33,914 - 17,992 $51,906	Level 2 $ - - - $ -	Level 3 $ - 714,981 - $714,981	Total
			$33,914 714,981 17,992
			$766,887

Fair value valuation technique for instruments measured at fair value: (1) The fair value of financial instruments with quoted prices in active markets is the quoted market prices. Market prices published by major trading centers and exchanges for on-the-run government bonds are the basis for the fair value of listed equity instruments and debt instruments with quoted prices in active markets. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry Company, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. If one of the conditions fails, the market is not deemed active. In general, indications of an inactive market include a wide bid-ask spread, a significant increase in the bid-ask spread and low level of trading volume. The fair value of financial instruments with active markets held by the Company are stated by their natures and types as follows:
a. Listed stocks: closing prices
b. Open-end funds: net worth

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(2) Except for financial assets with an active market, the fair value of other financial assets is obtained either based on the valuation technique or by reference to the quotes from counter-parties. Fair value can be obtained by using a valuation technique that refers to the fair value of financial instruments having substantially the same terms and characteristics, the discounted cash flow method, or other valuation technique e.g. the one that applies market information available on the balance sheet date to a pricing model for calculation.
Transfers between Level 1 and Level 2 fair value hierarchy: None
Statement of changes in Level 3 fair value hierarchy:

Item Beginning balance Addition Disposal Proceeds from capital reduction Recognized in other comprehensive income Ending balance	Investment in unquoted financial instruments Year Ended December 31 2023 2022 $714,981 $965,484 1,135 54,718 - (196,808) (13,771) (26,184) 54,822 (82,229) $757,167 $714,981
	2023 $714,981 1,135 - (13,771) 54,822 $757,167

Valuation process for Level 3 fair value measurement: Valuation process regarding fair value Level 3 is conducted by the Company’s finance department, by which the independence of fair value of financial instruments is verified though use of independent data source in order to make the valuation results close to market conditions. Such valuation results are regularly reviewed so as to ensure their reasonableness.

The unlisted company stocks held by the Company in an inactive market are mainly based on the market method and net asset value method to estimate the fair value. The market method is judgment is based on the same type of company evaluation, third party quotation, company net value and operating status assessment. The net assets method is based on the assets on the balance sheet of the enterprise as the main basis for evaluating the value of the enterprise.

Quantified information on value fair measured on the basis of major unobservable input value (Level 3):
Part of unlisted stocks are mainly based on market method and net asset value method, in which significant unobservable inputs include liquidity discounts and control premiums. When liquidity discounts decrease or control discount increase, the fair value of these investments will increase.
10.The sensitivity analysis of the fair value on assumption that could possibly and reasonable be substituted for measurement of Level 3 fair value:
The assets measured by the fair value of the third level of the fair value hierarchy of the Company are used to measure the significant unobservable inputs of fair value.

－81－

Item	Evaluation technology	Check the input value	interval	Input value and fair value relationship
Financial assets at fair value through other comprehensive income - stocks	Market Approach Net Asset Value Method	Lack of liquidity discount rate Lack of liquidity discount rate Control discount	10%~33% 5%~15% 5%~20%	The higher the degree of lack of liquidity, the lower the fair value estimate The higher the degree of lack of liquidity, the lower the fair value estimate The higher the control discount, the lower the fair value estimate

(4) Transfer of financial assets: None.
(5) Offsetting financial assets and financial liabilities: None.
(6) Other: Considering the increasingly fierce competition in the stainless steel market after the rise of the steel industry in China and Indonesia, The Group intends to achieve economies of scale in integration of production and marketing operations with Yieh United Steel Corp. through a strategic alliance with Tang Eng Iron Works Co., Ltd., and jointly boost the international competitiveness of Taiwan's stainless steel industry. The Company's Board of Directors resolved on May 4, 2022 to apply to the Fair Trade Commission for the operation combination of Tang Eng Iron Works Co., Ltd., which will jointly operate by Yieh United Steel Corp. The Group will carry out the plan of acquiring the equity of Tang Eng Iron Works Co., Ltd. after obtaining the permission of the Fair Trade Commission. The Group and Yieh United Steel Corp. will directly or indirectly acquire more than one third or more than 50% equity of Tang Eng Iron Works Co., Ltd. through public acquisition or other means. After the application for this case was filed, it was rejected by the Fair Trade Commission in August 2022 because the submitted documents were still incomplete. The Board of Directors of the Group and Yieh United Steel Corp. held a meeting on August 8, 2023 to approve the reapplication of the acquisition to the Fair Trade Commission, adding that Shin Yang Steel Co., Ltd. and Kuo Chang Enterprise Co., Ltd., subsidiaries of the Group, acquired approximately 8.84% and 2% of the shares of Tang Eng Iron Works Co., Ltd. respectively, and Long Yuan Investment Development Co., Ltd., a subsidiary of Yieh United Steel Corp., newly acquired about 6% of the shares of Tang Eng Iron Works Co., Ltd. the total ownership will amount to approximately 48%, including the existing stake of 31.16%. Shin Yang Steel Co., Ltd., Kuo Chang Enterprise Co., Ltd., and Long Yuan Investment Development Co., Ltd., will convene a board of directors meeting and announce relevant information of the acquisition of the equity of Tang Eng Iron Works Co., Ltd. in accordance with the procedures for acquiring or disposing of assets and the relevant provisions of the Securities and Exchange Law after obtaining the permission of the Fair Trade Commission.

－82－

13.SUPPLEMENTARY DISCLOSURES

A. Significant transactions information
(a) Financing provided to others (Table 1)
(b) Endorsements/guarantees provided (Table 2)
(c) Marketable securities held (excluding investments in subsidiaries and associates) (Table 3)
(d) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (Table 4)
(e) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital :None.
(f) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None.
(g) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)
(h) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 6)
(i) Trading in derivative instruments (Note 6.2)
B. Information on investees (Table 7)
C. Information on investments in mainland China (Table 8)
D. Information of major shareholders: List all shareholders with a stake of 5 percent or greater in shareholding percentage and the number of shares. (Table 9)

－83－

TABLE 1

Yieh Phui Enterprise Co., Ltd. Financing provided to others For The Year Ended December 31, 2023

Unit: Thousands of NT Dollar/ Foreign Currency

No.	Creditor	Borrower	General ledger account	Related party	Maximum outstanding balance for the period	Ending balance	Amount actually drawn	Interest rate	Nature of loan	Transaction amount	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted
													Item	Value
0	Yieh Phui Enterprise Co., Ltd.	Kuo Chang Enterprise Co., Ltd.	Other receivables - relatedparty	Y	460,000	310,000	303,000	2.57%- 3.19%	2	－	Operating capital	－	－	－	11,825,596 (Note 3)	11,825,596 (Note 3)
		United Brightening Development Corp.	Other receivables - relatedparty	Y	1,065,000	730,000	711,000	2.57%- 3.19%	2	－	Operating capital	－	－	－	11,825,596 (Note 3)	11,825,596 (Note 3)
1	Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (China) Technomaterial Co., Ltd.	Long-term receivable – related party and Other receivables - relatedparty	Y	4,165,946 (RMB371,772) (USD 78,970)	2,374,434 (RMB 235,363) (USD 44,100)	2,374,434 (RMB235,363) (USD 44,100)	4.50%- 9.65%	2	－	Operating capital	－	－	－	11,825,596 (Note 3)	11,825,596 (Note 3)
2	Yieh Phui (China) Technomaterial Co.,Ltd.	Tianjin Lianfa Precision Steel Corporation	Long-term receivable – relatedparty	Y	225,870 (RMB 50,000)	216,760 (RMB 50,000)	216,760 (RMB 50,000)	4.90%- 5.20%	2	－	Operating capital	－	－	－	11,825,596 (Note 3)	11,825,596 (Note 3)
3	Kuo Chang Enterprise Co., Ltd.	Sin Bang Investment & Development Co., Ltd.	Other receivables - relatedparty	Y	2,800	－	－	3.19%	2	－	Operating capital	－	－	－	326,703 (Note 2)	326,703 (Note 1)

(Note 1) The maximum amount of total loans to others shall not exceed 40% of the creditor's net worth.

(Note 2) The maximum amount of loans granted to a single entity shall not exceed 40% of the creditor's net worth.

(Note 3) Total loans between foreign entities that are 100% owned directly or indirectly by the Company shall not exceed 40% of the Company’s net worth and loans to a single entity shall not exceed 40% of the Company’s net worth.

(Note 4) Nature of loans is classified as follows: Entities having business relations with the Company is ‘1’; entities with needs for short-term financing is ‘2’.

(Note 5) Transactions between the aforesaid subsidiaries and the parent company have been written off.

－84－

TABLE 2

Yieh Phui Enterprise Co., Ltd. Endorsements/guarantees provided For The Year Ended December 31, 2023

Unit: Thousands of NT Dollar/ Foreign Currency

No.	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsement/ guarantees provided for a single party	Maximum balance for the period	Ending balance	Amount actually drawn	Amount of endorsement/ guarantees collateralized by properties	Ratio of accumulated endorsement/ guarantee to net equity per latest financial statement	Maximum endorsement/ guarantee allowable	Guarantee provided by parent company to subsidiary	Guarantee provided by a subsidiary to parent company	Guarantee provided to subsidiaries in Mainland China
		Company name	Relationship with the endorser/ guarantor
0	Yieh Phui Enterprise Co., Ltd. (Note 1)	Yieh Phui (China) Technomaterial Co., Ltd.	Investee of the Company’s Sub-subsidiary	29,563,991	6,230,280 (RMB 1,400,000)	2,492,740 (RMB575,000)	1,131,487 (RMB 261,000)	－	8.43%	29,563,991	Y	－	Y
		Shin Yang Steel Co., Ltd.	Subsidiary of the Company	29,563,991	456,000	-	-	-	-	29,563,991	Y	－	－
		Yieh Phui (Hong Kong) Holdings Limited	Subsidiary of the Company	29,563,991	3,696,450 (USD 114,000)	3,653,895 (USD 119,000)	2,479,753 (USD 47,350) (RMB 236,638)	－	12.36%	29,563,991	Y	－	－
1	Shin Phui Steel Corporation (Note 2)	Yieh Phui Enterprise Co., Ltd.	Parent company of the company	1,286,226	981,890	981,890	981,890	981,890	381.69%	1,286,226	－	Y	－
2	Kings Garden International Co., Ltd.(Note 3)	Great Emperor Hotel Co., Ltd.	The same ultimate parent company	27,643,106	8,175,000	8,175,000	8,175,000	8,175,000	207.01%	27,643,106	－	－	－
3	Great Emperor Hotel Co., Ltd. (Note 4)	Kings garden International Co., Ltd.	The same ultimate parent company	30,481,471	7,583,000	7,583,000	7,490,000	7,583,000	174.14%	30,481,471	－	－	－
4	Shin Yang Steel Co., Ltd.(Note 5)	Yieh Phui Enterprise Co., Ltd.	Parent company of the company	6,981,786	900,000	-	-	-	-	6,981,786	－	Y	－
5	Sin Bang Investment & Development Co., Ltd.(Note 6)	United Brightening Development Corp.	The same ultimate parent company	439,740	200,000	-	-	-	-	439,740	－	－	－

(Note 1): The maximum amount of endorsement/guarantee provided by the Company shall not exceed the Company’s net worth. The same limit applies to the endorsement/guarantee provided by the Company to a single subsidiary.

(Note 2): The maximum amount of endorsement/guarantee provided by Shin Phui Steel Corporation shall not exceed 5 times of Shin Phui’s net worth. The same limit applies to the endorsement/guarantee provided by Shin Phui Steel Corporation to a single entity.

－85－

(Note 3): The maximum amount of endorsement/guarantee provided by Kings Garden International Co., Ltd. shall not exceed 7 times of Kings Garden’s net worth. The same limit applies to the endorsement/guarantee provided by Kings Garden International Co., Ltd. to a single entity.
(Note 4): The maximum amount of endorsement/guarantee provided by Great Emperor Hotel Co., Ltd. shall not exceed 7 times of Great Emperor Hotel’s net worth. The same limit applies to endorsement/guarantee provided by Great Emperor Hotel Co., Ltd. to a single entity.
(Note 5): The maximum amount of endorsement/guarantee provided by Shin Yang Steel Co., Ltd. shall not exceed 3 times of Shin Yang’s net worth. The same limit applies to the endorsement/guarantee provided by Shin Yang Steel Co., Ltd. to a single entity.
(Note 6) : The maximum amount of endorsement/guarantee provided by Sin Bang Investment & Development Co., Ltd. shall not exceed 2 times of Sin Bang’s net worth. The same limit applies to the endorsement/guarantee provided by Sin Bang Investment & Development Co., Ltd. to a single entity.
(Note 7): The net worth referred to above is based on the latest financial statements audited or reviewed by independent auditors.

－86－

TABLE 3

Yieh Phui Enterprise Co., Ltd. Marketable securities held (excluding investments in subsidiaries and associates) For The Year Ended December 31, 2023

Unit: Thousand Shares；Thousands of NT Dollar/ Foreign Currency

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2023	As of December 31, 2023	As of December 31, 2023	As of December 31, 2023
				Shares (in thousands)	Carrying value	Ownership (%)	Fair value
Yieh Phui Enterprise Co., Ltd.	Fund/ US Technology Fund F Shares	None	Financial assets at fair value through profit or loss - current	1	4,698	－	4,698
	Fund/ FSITC Global Sustainable Impact Investment Multi	None	Financial assets at fair value through profit or loss - current	900	8,973	－	8,973
	Fund/ Taishin Flexible Income Fund	None	Financial assets at fair value through profit or loss - current	800	8,011	－	8,011
	Fund/ Mega Global Bond ETF Strategic Income Fund	None	Financial assets at fair value through profit or loss - current	800	7,921	－	7,921
	Fund/ Hua Nan Future Technology Fund	None	Financial assets at fair value through profit or loss - current	500	5,065	－	5,065
		Total			34,668		34,668
	Stock/ Taiwan Ves-Power Co., Ltd.	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	252	53,826	3.60%	53,826
	Stock/ New Spring Construction Corp.	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	17,003	177,933	15.49%	177,933
	Stock/ Taiwan Implant Technology Company, Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	815	4,392	4.14%	4,392
	Stock/ Sunny Bank	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	4,912	54,312	0.14%	54,312
	Stock/ Universal Venture Capital Investment Co., Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	1,100	8,123	0.91%	8,123
	Stock/ Yieh Corporation Limited	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	200	60,451	2.55%	60,451
	Stock/ Pacific Harbor Stevedoring Corporation	Director of the entity is the Company’s director	Financial assets at fair value through other comprehensive income or loss - noncurrent	150	3,863	3.00%	3,863
	Stock/ Image DJ Software Corp.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	24	535	0.96%	535

－－ 87

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2023	As of December 31, 2023	As of December 31, 2023	As of December 31, 2023
				Shares (in thousands)	Carrying value	Ownership (%)	Fair value
Yieh Phui Enterprise Co., Ltd.	Stock/ Chao-Feng Venture Capital Co., Ltd.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	556	3,553	0.79%	3,553
	Stock/ Skylark International Hotel Co., Ltd.	Related party in substance	Financial assets at fair value through other comprehensive income or loss - noncurrent	26,000	369,912	13.68%	369,912
	Stock/ Neolink Capital Corp.	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	1,197	10,166	2.57%	10,166
	Stock/Taiwan Enterprise No.1 Venture Capital Limited Partnership	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	-	10,101	-	10,101
	Stock/ Far EasTone Telecommunications Co., Ltd..	None	Financial assets at fair value through other comprehensive income or loss - noncurrent	276	21,993	0.01%	21,993
		Total			779,160		779,160
Worthing Honor Holdings Ltd.	Stock/ SEE Corporation	None	Financial assets at fair value through profit or loss - current	1	-	-	-
United Brightening Development Corp.	Fund/ Mega Global Bond ETF Strategic Income Fund	None	Financial assets at fair value through profit or loss - current	200	1,980	-	1,980
Kings garden International Co.,Ltd.	Fund/SinoPac ESG Global Digital Infrastructure Fund	None	Financial assets at fair value through profit or loss - current	300	2,757	-	2,757
Great Emperor Hotel Co.,Ltd.	Fund/ UBS (TW) Multi Asset Risk Controlled Sustainable Fund	None	Financial assets at fair value through profit or loss - current	500	4,986	-	4,986
Shin Yang Steel Co., Ltd.	Fund/ Neuberger Berman US Short Duration Non-Investment Grade Bond Fund	None	Financial assets at fair value through profit or loss - current	100	997	-	997
	Fund/ Mega Singapore Real Estate Income	None	Financial assets at fair value through profit or loss - current	500	5,065	-	5,065
		Total			6,062		6,062
	Stock/Zhengzi Technology Co., Ltd	Related party in substance	Financial assets at fair value through other comprehensive income - noncurrent	293	3,957	19.50%	3,957
	Stock/E-Da Health Biotechnology Co., Ltd	Related party in substance	Financial assets at fair value through other comprehensive income - noncurrent	8,550	94,506	19.00%	94,506
	Stock/UNICOCELL BIOMED CO., LTD	None	Financial assets at fair value through other comprehensive income - noncurrent	8,000	298,955	14.37%	298,955
		Total			397,418		397,418
EMMT Systems Corporation	Fund/ SinoPac ESG Global Digital Infrastructure Fund	None	Financial assets at fair value through profit or loss - current	180	1,654	-	1,654
	Stock / RODAN (TAIWAN) LTD.	None	Financial assets at fair value through other comprehensive income - noncurrent	17	8	0.51%	8

－88－

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2023	As of December 31, 2023	As of December 31, 2023	As of December 31, 2023
				Shares (in thousands)	Carrying value	Ownership (%)	Fair value
Yieh Hsing Enterprise Co.,Ltd	Fund/ Mega Global Bond ETF Strategic Income Fund	None	Financial assets at fair value through profit or loss - current	500	4,951	-	4,951
	Fund/ FSITC Global Utilities and Infrastructure Fund	None	Financial assets at fair value through profit or loss - current	400	3,988	-	3,988
	Fund/ Taishin Flexible Income Fund	None	Financial assets at fair value through profit or loss - current	500	5,007	-	5,007
	Fund/ TCB Taiwan High Dividend Fund	None	Financial assets at fair value through profit or loss - current	194	2,990	-	2,990
		Total			16,936		16,936
	Stock/ Pacific Harbor Stevedoring Corporation	Director of the entity is the Company’s chairman	Financial assets at fair value through other comprehensive income - noncurrent	150	3,864	3.00%	3,864

－－ 89

TABLE 4

Yieh Phui Enterprise Co., Ltd.

Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital For The Year Ended December 31, 2023

Unit: Thousand Shares；Thousands of NT Dollar

Investor	Marketable securities	General ledger account	Counterparty	Relationship with the investor	Beginning balance	Beginning balance	Addition	Addition		Disposal	Disposal		Ending balance	Ending balance
					Number of shares	Amount	Number of shares	Amount						Number of shares
Shin Yang Steel Co., Ltd.	UNICOCELL BIOMED CO., LTD	Financial assets at fair value through other comprehensive	Private placement of common stock	None	－	－	8,000	298,955 (Note)	Shin Yang Steel Co., Ltd.	UNICOCELL BIOMED CO., LTD	Financial assets at fair value through other comprehensive	Private placement of common stock	None	－

(Note): Including $208,000 thousand for private placement of common stock and unrealized loss on financial assets at FVTOCI for ($90,955) thousand.

－－ 90

TABLE 5

Yieh Phui Enterprise Co., Ltd. Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital For The Year Ended December 31, 2023

									Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency	Unit:Thousands of NT Dollars/ForeignCurrency
Purchaser/ seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)		Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Yieh Phui Enterprise Co., Ltd.	Yieh Hong Enterprise Co., Ltd.	Related party in substance	Purchases			T/T or Sight L/C before goods acceptance.	－	－	－	－	－
				5,086,474	25.88%

	Yieh United Steel Corporation	An investee accounted for using equity method	Sales			Galvanized steel coils； payment periods were within 1-2 months. carbon steel: payment term is monthly, and closes in 15 days. Project is contractually agreed	－	－	82,668	4.69%	Accounts receivable
				557,187	2.26%

			Purchases			T/T or Sight L/C before goods acceptance.	－	－	10,706	2.20%	Accounts payable
				185,467	0.94%
									44	0.01%	Notes payable

	Yieh Mau Corp	Related party in substance	Sales			1-2 months	－	－	34,405	1.95%	Accounts receivable
				2,104,814	8.54%

	Asiazone Co., Limited	An investee accounted for using equitymethod	Sales			1-2 months	－	－	48,525	2.75%	Accounts receivable
				931,512	3.78%

	Shin Yang Steel Co., Ltd.	Subsidiary of the Company	Sales	859,925	3.49%	1-2 months. Project is contractually agreed	－	－	42,029	2.38%	Accounts receivable
	New Spring Construction Corp.	Related party in substance	Sales	358,680	1.45%	Contractually agreed	－	－	2,334	0.13%	Accounts receivable
	Shin Phui Steel Corporation	Subsidiary of the Company	Sales	115,192	0.47%	1-2 months	－	－	785	0.04%	Accounts receivable

－－ 91

Purchaser/ seller	Counterparty	Relationship with the counterparty	Transaction	Transaction			Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Note
Yieh Phui (China) Technomaterial Co., Ltd	Tianjin Lianfa Precision Steel Corporation	Subsidiaries	Sales	793,551 (RMB 179,892)	2.24%	1-4 months	－	－	209,088 (RMB 48,230)	41.78%	Accounts receivable
	ASIAZONE CO., LIMITED	An investee of the Parent Company under equity method.	Sales	166,409 (USD 5,368)	0.47%	1-2 months	－	－	－	－	－
Yieh Hsing Enterprise Co., Ltd.	Yieh United Steel Corporation	An investee accounted for using equity method	Purchases	2,703,962	57.68%	T/T or Sight L/C before goods acceptance.	－	－	2,540	2.42%	Notes payable

(Note ): Transactions between the aforesaid subsidiaries and the parent company are eliminated.

－－ 92

TABLE 6

Yieh Phui Enterprise Co., Ltd.

Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital For The Year Ended December 31, 2023

						Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency	Unit: Thousands of NT Dollars/Foreign Currency
Creditor	Counterparty	Relationship with the counterparty	Ending balance	Turnover rate	Overdue	receivables	Amount collected subsequent to the end of the reporting period (Note 2)	Allowance for doubtful accounts
					Amount	Action taken
Yieh Phui Enterprise Co., Ltd.	Kuo Chang Enterprise Co.,Ltd	Subsidiaries	303,000	(Note 1)	－	－	－	－
	United Brightening DevelopmentCorp..	Subsidiaries	711,000	(Note 1)	－	－	－	－
Yieh Phui (Hong Kong) Holdings Limited	Yieh Phui (China) Technomaterial Co., Ltd.	Subsidiaries	2,374,434 (RMB 235,363) (USD44,100)	(Note 1)	－	－	RMB 7,913	－
Yieh Phui (China) Technomaterial Co., Ltd.	Tianjin Lianfa Precision Steel Corporation	Subsidiaries	216,760 (RMB 50,000)	(Note 1)	－	－	－	－
			209,089 (RMB 48,230)	4.28	－	－	RMB 48,230	－

(Note 1): These are accounts receivable financing, on which the calculation of turnover doesn’t apply. (Note 2): Amounts received as of March 7, 2024

(Note 3): Transactions between the aforesaid subsidiaries and the parent company have been written off.

－－ 93

TABLE 7

Yieh Phui Enterprise Co., Ltd. Information on Investees For The Year Ended December 31, 2023

Unit: Thousands of NT Dollar/ Foreign Currency

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares	held as the period-end	held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee
				December 31, 2023	December 31, 2022	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Phui Enterprise Co., Ltd.	Yieh Phui (Hong Kong) Holdings Limited	Hong Kong	Investment	7,455,887	7,455,887	233,500	100.00%	9,278,296	181,793	181,793
	Eliter International Corp.	Kaohsiung City	Construction of buildings	3,030,403	3,030,403	303,290	30.23%	2,742,334	(51,334)	(15,516)
	Yieh Hsing Enterprise Co., Ltd.	Kaohsiung City	Wire rods trading	2,261,296	2,261,296	304,654	57.41%	80,082	(981,332)	(552,484)
	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	1,453,572	1,453,572	39,553	11.30%	1,199,379	(1,125,320)	(127,171)
	E-Da Development Corp.	Kaohsiung City	Leisure development	2,181,523	2,096,196	218,152	28.44%	875,102	(343,940)	(97,824)
	United Brightening Development Corp.	Kaohsiung City	Technical consultation for steel products manufacturing	1,887,263	1,887,263	158,060	95.56%	1,464,025	(246,622)	(235,678)
	Shin Yang Steel Co., Ltd.	Kaohsiung City	Steel products related business	870,000	870,000	186,617	100.00%	544,768	201,075	201,126
	Yieh Mau Corp.	Kaohsiung City	Trading & manufacturing	422,605	422,605	65,641	23.00%	811,779	23,581	(11,038)
	Kuo Chang Enterprise Co., Ltd.	Kaohsiung City	Wholesale of hardware	1,385,973	1,385,973	110,341	99.04%	1,091,894	(168,066)	(166,452)
	Asiazone Co., Limited	Hong Kong	Steel trading	595,424	595,424	15,090	32.80%	713,497	24,577	8,062
	Shin Phui Steel Corporation	Kaohsiung City	Trading of steel products	214,236	214,236	24,228	100.00%	262,776	(2,677)	(1,703)
	Sin Bang Investment & Development Co.,Ltd.	Kaohsiung City	Investment	267,209	263,709	19,453	100.00%	219,870	(26,417)	(26,417)

－－ 94

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares	held as theperiod-end	held as theperiod-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2023	December 31, 2022	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Phui Enterprise Co., Ltd.	EMMT Systems Corporation	Taichung City	Manufacturing and marketing of military specification printed circuit boards	310,350	310,349	72,528	78.51%	1,076,258	345,867	271,542
	Good Honor Holdings Ltd.	British Virgin Islands	Investment	14,723	14,723	46	100.00%	4,259	47	47
	Gen-Wan Technology Corp.	Kaohsiung City	Telecommunication	151,164	148,611	6,396	90.12%	96,782	25,733	22,696
	Cheng Shin Security Co., Ltd.	Kaohsiung City	Security	14,000	14,000	1,400	35.00%	5,715	(5,447)	(1,906)
	E-Da Bus Transportation Co., Ltd.	Kaohsiung City	Bus transportation	80,510	70,259	1,845	17.09%	11,642	(9,075)	(1,551)
	E-DA Tour Bus Co., Ltd.	Kaohsiung City	Bus transportation	20,900	20,900	1,349	19.00%	9,107	(8,175)	(1,553)
	Worthing Honor Holdings Ltd.	British Virgin Islands	Investment	6,672	6,672	100	100.00%	2,882	38	38
	E United Japan Co., Ltd.	Japan	Steel trading	8,027	8,027	-	47.00%	4,072	869	408
	Skylark Hot Spring & Resort Corp.	Kaohsiung City	Hotel industry	11,700	11,700	1,170	14.63%	-	(844)	-
	E-Da Entertainment Co., Ltd.	Kaohsiung City	Entertainment industry	74,100	74,100	7,410	19.00%	50,712	2,040	388
	Li Hui Development Co., Ltd.	Kaohsiung City	Investment	321,216	321,216	71,277	44.56%	296,487	21,442	(1,657)	(Note 1)
	Ji Chang Enterprise Co., Ltd.	Kaohsiung City	Investment	5,050	5,050	1,042	45.00%	4,486	302	(60)	(Note 1)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	5,023,625	5,023,625	676,661	25.82%	2,835,287	(3,877,105)	(1,032,686)	(Note 1)
	Hong Yuh Assets Management Co., Ltd.	Kaohsiung City	Management service	1,551,200	1,535,200	158,320	80.00%	606,861	(20,829)	(16,663)

－－ 95

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares	held as the period-end	held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2023	December 31, 2022	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Phui Enterprise ~~C~~o., Ltd.	E-Da Visual Effects Company Limited.	Kaohsiung City	Entertainment industry	27,543	27,543	3,185	49.00%	-	(8,598)	-
	Lian So(H.K) Co., Limited	Hong Kong	Investment	580,422	507,342	18,960	80.00%	314,879	(2,879)	(2,304)
	Yieh Phui America Inc.	U.S.	Trading of steel products	292	292	1	100.00%	154,711	22,331	22,331
	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	3,265,100	3,265,100	317,000	60.15%	2,619,308	(148,288)	(89,198)
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	2,657,400	2,657,400	258,000	54.89%	2,167,757	(252,131)	(138,404)
	Xinzhan Engineering and Management Consultants Co., Ltd.	Kaohsiung City	Manpower dispatch industry	9,600	3,200	960	32.00%	6,243	(4,979)	(1,593)
	Total			36,158,985	35,961,873			29,551,250	(6,434,363)	(1,813,427)
Shin Phui Steel Corporation	Groupco Technology Inc.	Taichung City	RADIO	-	37,492	-	-	-	(356)	(151)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	24,562	24,562	3,178	0.12%	13,304	(3,877,105)	(4,849)	(Note 1)
	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	515	515	50	0.01%	413	(148,288)	(14)
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	515	515	50	0.01%	420	(252,131)	(27)
Gen-Wan Technology Corp.	EMMT Systems Corporation	Taichung City	Manufacturing and marketing of military specification printed circuit boards	27,630	27,630	6,909	7.48%	102,524	345,867	25,867

－－ 96

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares	held as the period-end	held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2023	December 31, 2022	Shares (in thousands)	Percentage of Ownership	Carrying Value
EMMT Systems ~~C~~orporation	Groupco Technology Inc.	Taichung City	RADIO	-	45,000	-	-	-	(356)	(178)
	Applied Wireless Identifications Group, Inc.	San Francisco, US	RFID	243,395	242,545	40,601	88.93%	418,959	109,080	96,893
	UniPattern Corporation	Kaohsiung City	Manufacturing of computer and peripherals	54,960	54,960	5,460	43.33%	58,911	(16,955)	(7,347)
Shin Yang Steel Co., Ltd.	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	17,385	17,385	2,195	0.08%	9,190	(3,877,105)	(3,350)	(Note 1)
	Xinzhan Engineering and Management Consultants Co., Ltd.	Kaohsiung City	Manpower dispatch industry	1,500	500	150	5.00%	975	(4,979)	(248)
Sin Bang Investment & Development Co., Ltd.	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	265,482	265,482	7,224	2.07%	219,056	(1,125,320)	(23,227)
Kuo Chang Enterprise Co., Ltd.	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	439,197	439,197	56,817	2.17%	237,881	(3,877,105)	(86,712)	(Note 1)
	Eliter International Corp.	Kaohsiung City	Construction of buildings	256,709	256,709	25,053	2.50%	226,600	(51,334)	(1,282)
	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	786,714	786,714	21,328	6.09%	945,106	(1,125,320)	(68,574)
United Brightening Development Corp.	Chao Ying Investment Development Co., Ltd.	Kaohsiung City	Investment	341,992	341,992	30,400	100.00%	270,278	(28,769)	(28,769)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related businesses	449,508	449,508	58,151	2.22%	243,466	(3,877,105)	(88,747)	(Note 1)
	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	1,177,838	1,177,838	32,050	9.16%	1,400,148	(1,125,320)	(103,047)
	Eliter International Corp.	Kaohsiung City	Construction of buildings	368,542	368,542	34,292	3.42%	310,162	(51,334)	(1,755)

－－ 97

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as the period-end	Shares held as the period-end	Shares held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee
				December 31, 2023	December 31, 2022	Shares (in thousands)	Percentage of Ownership	Carrying Value
Chao Ying Investment Development Co.,Ltd.	Tangeng Iron Works Co., Ltd.	Kaohsiung City	Steel trading	336,957	336,957	8,898	2.54%	269,817	(1,125,320)	(28,609)
Hong Yuh Assets Management Co., Ltd.	Lien-Hsin Steel Co., Ltd.	Indonesia	Metal manufacturing industry	891,697	891,697	2,880	58.01%	516,203	4,537	3,637
	Prepayment of stock subscription- Lien-Hsin Steel Co., Ltd.	Indonesia	Metal manufacturing industry	55,440	55,440	-	-	55,440	-	-
	Lien-Sheng Steel Co., Ltd.	Indonesia	Metal manufacturing industry	-	1,633	-	-	-	(256)	(26)
	Lien-Hung Mining Co., Ltd.	Indonesia	Nickle mining	100,303	100,303	3,787	19.00%	92,851	114,715	15,565
	Prepayment of stock subscription - Lien-Hung Mining Co.,Ltd.	Indonesia	Nickle mining	7,367	7,367	-	-	7,367	-	-
	Lien-Heng Mining Co., Ltd.	Indonesia	Nickle mining	9,371	9,371	381	75.00%	(41,320)	(3,639)	(2,729)
	Prepayment of stock subscription - Lien Heng Mining Co., Ltd.	Indonesia	Nickle mining	69,365	69,365	-	-	69,365	-	-
	Asiamax Mining Indonesia	Indonesia	Nickle mining	89,386	89,386	55	100.00%	37,561	(1,638)	(1,638)
Lian So (H.K) Co., Limited	Lien-Sheng Steel Co., Ltd.	Indonesia	Metal manufacturing industry	-	13,820	-	-	-	(256)	(230)
	Lian Yang (Hong Kong) TradingLimited	Hong Kong	Trading business	3,071	3,071	100	100.00%	14,746	486	486
	Lien-Hsin Steel Co., Ltd.	Indonesia	Metal manufacturing industry	640,199	548,174	2,085	41.99%	373,709	4,537	900
Lien-Hsin steel Co., Ltd.	Lien-Hung Mining Co., Ltd.	Indonesia	Nickle mining	410,207	410,207	16,142	81.00%	383,883	114,715	66,357
	Prepayment of stock subscription - Lien-Hung MiningCo.,Ltd.	Indonesia	Nickle mining	72,393	72,393	-	-	72,393	-	-
	Lien-Heng Mining Co., Ltd.	Indonesia	Nickle mining	18,586	18,586	127	25.00%	(13,773)	(3,639)	(910)

－－ 98

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as the period-end	Shares held as the period-end	Shares held as the period-end	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Note
				December 31, 2023	December 31, 2022	Shares (in thousands)	Percentage of Ownership	Carrying Value
Yieh Hsing Enterprise Co., Ltd.	Great Emperor Hotel Co., Ltd.	Kaohsiung City	Hotel industry	2,099,500	2,099,500	209,950	39.84%	1,734,775	(148,288)	(59,076)
	Kings Garden International Co., Ltd.	Kaohsiung City	Leasing, sales, and development of residential and commercial buildings, department stores	2,119,500	2,119,500	211,950	45.10%	1,780,838	(252,131)	(113,700)
	United Winner Metals L.P	Virginia, US	Scrap steel recycling	107,150	107,150	-	33.75%	114,971	20,202	6,818
	Cheng Shin Security Co., Ltd.	Kaohsiung City	Security	4,000	4,000	400	10.00%	1,633	(5,447)	(545)
	Eliter International Corp.	Kaohsiung City	Construction of buildings	748,896	748,896	74,427	7.42%	673,175	(51,334)	(3,808)
	E-Da Development Corp.	Kaohsiung City	Leisure development	455,741	437,915	45,574	5.94%	184,296	(343,940)	(20,436)
	Yieh United Steel Corporation	Kaohsiung City	Steel products related business	20,204	20,204	2,542	0.10%	10,645	(3,877,105)	(3,880)	(Note 1)
	Xinzhan Engineering and Management Consultants Co., Ltd.	Kaohsiung City	Manpower dispatch industry	2,400	800	240	8.00%	1,561	(4,979)	(398)
Kings Garden International Co., Ltd.	Hua Li International Co., Ltd.	Kaohsiung City	Daily necessities, cosmetics wholesaler	110,000	110,000	11,000	100.00%	13,362	(33,035)	(33,035)
	E-Mau Development Co., Ltd.	Kaohsiung City	Department stores, amusement parks, and hotel industry	27,520	27,520	2,752	12.80%	27,365	(337)	(43)
Great Emperor Hotel Co., Ltd.	E-Mau Development Co., Ltd.	Kaohsiung City	Department stores, amusement parks, and hotel industry	27,520	27,520	2,752	12.80%	27,365	(337)	(43)

(Note 1): Due to cross ownership and the adoption of equity method between the Company and Yieh United Steel Corporation, investment gain/loss is accounted for using the treasury stock approach. Thus, the income/loss of investee for the period excludes gain/loss accounted for using equity method by Yieh United Steel Corporation in relation to the Company.

－－ 99

TABLE 8

Yieh Phui Enterprise Co., Ltd. Information on Investment in Mainland China For The Year Ended December 31, 2023

Unit: Thousands of NT Dollar/ Foreign Currency

Name of	Name of	Investee in Mainland China	Main business activities	Main business activities	Total Amount of Paid-inCapital	Investment method (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of the Investee	Ownership held by the Company (direct or indirect) (%)	Share of Profit/Loss (Note 2)	Share of Profit/Loss (Note 2)	Carrying Amount as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
									Outflow	Inflow
Investor
Yieh Phui Enterprise Co., Ltd.		Yieh Phui (China) Techno material Co., Ltd.	Manufacturing and marketing of pickled, cold rolled, galvanized and pre-painted steel coils		7,252,521 (USD 236,200) (Note 6)	(2)	7,169,618 (USD 233,500)		－	－	7,169,618 (USD 233,500)		173,268	100%	173,268 (2) 2		9,310,056	－
		Changshou ChangHuei Trading Co.	Trading of steel products		43,352 (RMB 10,000)	(2) (Note 4)	－		－	－		－	494	100%	494 (2)3		47,518	－
		Tianjin Lianfa Precision Steel Corporation	Manufacturing and marketing of special highgrade alloy		414,518 (USD 13,500)	(2) (Note 5)	－		－	－		－	(33,935)	100%	(33,935) (2) 2		(216,476)	－

					Investee in Mainland China			Accumulated Investment in Mainland China as of December 31, 2023				Investment Amounts Authorized by Investment Commission, MOEA				Upper Limit on Investment
		Investor
	Yieh Phui Enterprise Co., Ltd.			Yieh Phui (China) Technomaterial Co., Ltd.				7,169,618(USD 233,500)				7,252,521(USD 236,200)				17,738,395

(Note 1): Investment methods are classified into the following three categories.

(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
a. Yieh Phui (China) Techno material Co., Ltd.: Reinvesting in the Mainland China through third-region companies as Yieh Phui (Hong Kong) Holdings Limited.
b. Changshou ChangHuei Trading Co.: Invested by Yieh Phui (China) Techno material Co., Ltd.
c. Tianjin Lianfa Precision Steel Corporation: Invested by Yieh Phui (China) Techno material Co., Ltd.
(3) Others

(Note 2): Investment gain or loss recognized in the current period:

－100－

  - (1) Please specify if it is in the preparation stage without any investment gains or losses generated.

  - (2) Recognition basis of investment profit or loss is categorized into three types, which shall be identified.

     1. Financial statements audited and certified by the international CPA firms that cooperates with ROC CPA firms.

     2. Financial statements reviewed, or audited and certified by the CPA firm of the parent company in Taiwan.

     3. Others

(Note 3): The figures in the Table shall be expressed in New Taiwan Dollars. Carrying amount at the end of the period is converted using the exchange rate on the reporting date (USD:NTD 1: 30.705; RMB: NTD 1: 4.3352). Investment gain or loss recognized in the current period is converted using the average exchange rate in from January 1 to December 31, 2023 (USD: NTD 1: 31.0954; RMB: NTD 1: 4.4114).
(Note 4): Yieh Phui (China) Technomaterial Co., Ltd. invests in Changshou ChangHuei Trading Co. with equity funds of RMB 10 million. As of December 31, 2023, accumulated investment amounted to RMB 10 million.
(Note 5): The Company originally holds 100% of Tianjin Lianfa Precision Steel Corporation Beneficiary (paid-in capital equals USD 13,500 thousand) through its holding in Hsing Jui Investments Limited. It transferred its ownership to Yieh Phui (China) Technomaterial Co., Ltd. at RMB 20,000 thousand in July 2015. The said proceed, net of tax, of RMB 19,990 thousand (equivalent to USD 3,213 thousand) has been transferred back to the Company’s account in Taiwan.
(Note 6): Yieh Phui (China) Technomaterial Co., Ltd. recapitalized its retained earnings of USD 2,700 thousand in April 2016.
(Note 7): AWID Changshou Co., Ltd.. was liquidated in June 2021, AWID Sanghai Co., Ltd.. was liquidated in July 2020, Investment in Changshu Chief Leading Edge Construction Materials Co., Ltd. was completely sold in February 2013. Investment amount and earnings were received. Investment in Jiangsu J & Y Engineering Co., Ltd. was liquidated in 2012. Thus:
- (1) Accumulated investment of NT$ 529,431 thousand by investees in China that were disposed of.
- (2) Investment gains received from China investees that were disposed: NT$ 69,518 thousand.
(2) Significant transactions between the Company and investees in Mainland China during January 1 and December 31, 2023, directly or indirectly through the third area are as follows:
Significant transactions between the Company and investees in China: Table 5 attached ~ Table 7 attached in Note 13.
Financing between the Company and investees in China: Table 1 attached in Note 13.
Endorsement and guarantee provided by the Company for investees in China: Table 2 attached in Note 13.

－101－

TABLE 9

Yieh Phui Enterprise Co., Ltd. Information of Major Shareholders December 31, 2023

Name of major shareholder	Number of shares	Percentage of ownership (%)
Yieh United Steel Corporation	317,210,602	16.27%
Weiqiao Investment Development Co., Ltd.	216,005,528	11.08%

Note: The information of major shareholders is based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (included treasury shares) by the Company as of December 31, 2023. The share capital in consolidated financial report may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

－102－

14. SEGMENTINFORMATION

Information regarding business segments has been disclosed in the consolidated financial statements. Therefore, the Company does not disclose such information in the standalone financial statements.

－103－

STATEMENTS OF MAJOR ACCOUNTING ITEMS

STATEMENTS OF MAJOR ACCOUNTING ITEMS CONTENTS
Item	Statement Index
Major accountingitems in assets,liabilities and equity
Statement of cash and cash equivalents	P.106
Statement of financial assets measured at fair value through profit or loss - current	P.107
Statement of notes receivable	P.108
Statement of accounts receivable	P.109
Statement of other receivables	P.110
Statement of inventories	P.111
Statement ofprepayments	Note 6(7)
Statement of changes in financial assets at fair value through other comprehensive income - noncurrent	P.112
Statement of changes in investments accounted for usingequitymethod	P.113~P.114
Statement of changes inproperty, plant and equipment	Note 6(10)
Statement of changes in accumulated depreciation and accumulated impairment ofproperty, plant and equipment	Note 6(10)
Statement of changes in right-of-use assets	Note 6(11)
Statement of changes in accumulated depreciation and accumulated impairment of right-of-use assets	Note 6(11)
Statement of changes in investmentproperties	Note 6(12)
Statement of changes in accumulated depreciation and accumulated impairment of investmentproperties	Note 6(12)
Statement of deferred income tax assets	Note 6(31)
Statement of refundable deposits	P.115
Statement of other financial assets - noncurrent	P.116
Statement of short-term loans	P.117~P.118
Statement of short-term notes and billspayable	P.119
Statement of notespayable	P.120
Statement of accountspayables	P.121
Statement of otherpayables	Note 6(16)
Statement ofprovisions - current	Note 6(17)
Statement of long-term loans and currentportion of long-term loans	P.122~P.124
Statement of lease liabilities	P.125
Statement ofguarantee deposits	P.126
Major accountingitems inprofit or loss
Statement of operatingrevenue	P.127
Statement of operatingcost	P.128~P.129

－104－

Item	Statement Index
Statement of sellingand marketingexpenses	P.130
Statement ofgeneral and administrative expenses	P.130
Statement of employee benefits,depreciation and amortization expense	Note 6(26)
Statement of othergains and losses	Note 6(29)
Statement of finance costs	Note 6(30)

－105－

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Item	Description	Amount	Remark
Cash Bank savings Subtotal Cash equivalents Total	Petty cash Checking accounts Demand deposits - New Taiwan Dollars Demand deposits - foreign currencies Time deposits (with original maturities within three months)	$1,760	USD 46,024 SGD 200 USD 3,000
		$259,691 25,997 1,417,844
		$1,703,532
		92,130
		$1,797,422

Exchange rate as of December 31, 2023: USD:NTD 1: 30.705 Exchange rate as of December 31, 2023: SGD:NTD 1: 23.29

－106－

YIEH PHUI ENTERPRISE CO., LTD.

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

(In Thousand Shares & Thousands of New Taiwan Dollars) Fair Value

Financial Instrument Name	Description	Shares or Unit	Acquired Cost	Unit Price	Amount	Remark
JPMorgan Funds – US Technology Fund - JPM US Technology F (acc) –USD Mega Global Bond ETF Strategic Income Fund of Funds FSITC Global Sustainable Impact Investment Multi- Asset Fund Taishin Flexible Income Fund Hua Nan Future Technology Fund Total	Mutual Fund Mutual Fund Mutual Fund Mutual Fund Mutual Fund	1 800 900 800 500	$5,000 8,032 9,019 8,024 5,053	4,698.00 9.90 9.97 10.01 10.13	$4,698 7,921 8,973 8,011 5,065
			$35,128		$34,668

－－ 107

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF NOTES RECEIVABLE

DECEMBER 31, 2023

Client Name Company A Others Total Less: Allowance for doubtful accounts Net	Description	(In Thousands of New Taiwan Dollars) Amount Remark $504 77 $581 (2) $579	(In Thousands of New Taiwan Dollars) Amount Remark $504 77 $581 (2) $579
	Construction receivable Under 5%	$504 77
		$581 (2)
		$579

－108－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE

DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Client Name Unrelated parties: Company B Company C Company D Company E Others Total Less: Allowance for doubtful accounts Net Related parties: Yieh United Steel Corporation Asiazone Co., Limited Shin Yang Steel Co., Ltd. Others Total Less: Allowance for doubtful accounts Net	Description Trade receivable Trade receivable Trade receivable Trade receivable Under 5% Trade receivable Trade receivable Trade receivable Under 5%	Amount $ 125,004 101,464 90,873 87,799 1,149,881 $1,555,021 (4,404) $1,550,617 $82,668 48,525 42,029 37,560 $210,782 (475) $210,307	Remark
			USD 4,071 USD 3,304 USD 2,960 USD 2,859 USD 1,580

Exchange rate as of December 31, 2023: USD:NTD 1: 30.705

－－ 109

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF OTHER RECEIVABLES

DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Item Other receivables - unrelated parties Other receivables - related parties	Description Business tax refunded Dumping margins refundable Purchase allowance receivable Others Loans to others Purchase allowance receivable Guarantee Fee receivable Others	Amount	Remark
		$105,500 346,360 7,517 1,365	USD 11,280 USD 118
		$460,742
		$1,014,000 21,853 3,628 12,356
		$1,051,837

Exchange rate as of December 31, 2023: USD:NTD 1: 30.705

－110－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Amount	Remark
		Cost	Net Realizable Value
		$1,560,751 15,013 697,055 1,561,627 115,768	$1,775,689 15,013 798,488 1,854,333 110,203
		3,950,214 (5,565)	4,553,726 -
		3,944,649	4,553,726
		165,286 2,714	156,826 2,713
		168,000 (10,165)	159,539 -
		157,835	159,539
		$4,102,484	$4,713,265

－111－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NONCURRENT

FOR THE YEAR ENDED DECEMBER 31, 2023

Item	Balance, January 1, 2023	Balance, January 1, 2023	Increase	Increase	Decrease	Decrease	(In Thousands of New Taiwan Dollars) Balance, December 31, 2023 Shares (In Thousands) Fair Value Collateral Remark - $ - None 276 21,993 None 252 53,826 None 17,003 177,933 None 815 4,392 None 4,912 54,312 None 1,100 8,123 None 200 60,451 None 150 3,863 None 24 535 None 556 3,553 None 26,000 369,912 None 1,197 10,166 None - 10,101 None 5,000 - None 3,558 - None 100 - None 18,469 - None 79,612 $779,160	(In Thousands of New Taiwan Dollars) Balance, December 31, 2023 Shares (In Thousands) Fair Value Collateral Remark - $ - None 276 21,993 None 252 53,826 None 17,003 177,933 None 815 4,392 None 4,912 54,312 None 1,100 8,123 None 200 60,451 None 150 3,863 None 24 535 None 556 3,553 None 26,000 369,912 None 1,197 10,166 None - 10,101 None 5,000 - None 3,558 - None 100 - None 18,469 - None 79,612 $779,160	(In Thousands of New Taiwan Dollars) Balance, December 31, 2023 Shares (In Thousands) Fair Value Collateral Remark - $ - None 276 21,993 None 252 53,826 None 17,003 177,933 None 815 4,392 None 4,912 54,312 None 1,100 8,123 None 200 60,451 None 150 3,863 None 24 535 None 556 3,553 None 26,000 369,912 None 1,197 10,166 None - 10,101 None 5,000 - None 3,558 - None 100 - None 18,469 - None 79,612 $779,160
	Shares (In Thousands)	Fair Value	Shares (In Thousands)	Fair Value	Shares (In Thousands)	Fair Value	Shares (In Thousands)	Fair Value
Asia Pacific Telecom Far EasTone Telecommunications Co., Ltd. TaiwanVes-Power Co., Ltd. New Spring Construction Corp. Taiwan Implant Technology Company, Ltd. Sunny Bank Universal Venture Capital Investment Co., Ltd. Yieh Corporation Limited Pacific Harbor Stevedoring Corporation Neoflex Technology Co., Ltd. Chao-Feng Venture Capital Co., Ltd. Skylark International Hotel Co., Ltd. Neolink Capital Corp. Taiwan Enterprise No.1 Venture Capital Limited Partnership Chateau Bridgetop Inc. Grand Fortune Special Steel Co., Ltd. Hung-Tai Management and Consulting Co. Ltd Windance Co., Ltd. Net	2,949 - 252 17,003 701 4,912 1,100 200 150 24 830 26,000 2,100 - 5,000 3,558 100 18,469	$17,992 - 50,496 137,049 3,516 51,051 7,064 111,065 3,565 535 5,613 318,020 16,985 10,022 - - - -	- 276 - - 114 - - - - - - - - - - - - -	$3,973 21,993 3,330 40,884 1,135 3,261 1,059 - 298 - - 51,892 - 79 - - - -	2,949 - - - - - - - - - 274 - 903 - - - - -	$ 21,965 - - - 259 - - 50,614 - - 2,060 - 6,819 - - - - -	- 276 252 17,003 815 4,912 1,100 200 150 24 556 26,000 1,197 - 5,000 3,558 100 18,469	$ - 21,993 53,826 177,933 4,392 54,312 8,123 60,451 3,863 535 3,553 369,912 10,166 10,101 - - - -	None None None None None None None None None None None None None None None None None None
	83,348	$732,973	390	$127,904	4,126	$81,717	79,612	$779,160

Current increase of $127,904 thousand includes capital increase by cash for $1,135 thousand , Asia Pacific Telecom switches to Far EasTone Telecommunications Co., Ltd. for $21,965 thousand and unrealized gain on financial assets at FVTOCI for $104,804 thousand.
Current decrease of $81,717 thousand includes proceeds from capital reduction for $13,771 thousand ,Asia Pacific Telecom switches to Far EasTone Telecommunications Co., Ltd. for $21,965 thousand and unrealized loss on financial assets at FVTOCI for $45,981 thousand.

－112－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2023

Name	Beginning	Balance	In	crease	De	crease	Ending Balan	Ending Balan	ce	(In T Marke Net	housand Shares & t Value or Value	Thousands of New Tai Collateral or Pledge	wan Dollars) Remark
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	%	Amount	Unit Price	Total Amount
Yieh Phui (Hong Kong) Holdings Limited Eliter International Corp. Yieh Hsing Enterprise Co., Ltd. Tangeng Iron Works Co., Ltd. E-Da Development Corp. United Brightening Development Corp. Shin Yang Steel Co., Ltd. Yieh Mau Corp. Kuo Chang Enterprise Co., Ltd. Asiazone Co., Ltd. Shin Phui Steel Corporation Sin Bang Investment & Development Co., Ltd. EMMT Systems Corporation Good Honor Holdings Ltd. Gen-Wan Technology Corp. Cheng Shin Security Co., Ltd. E-Da Bus Transportation Co., Ltd. E-DA Tour Bus Co., Ltd. Worthing honor Holdings Ltd. E United Japan Co., Ltd. Skylark Hot Spring & Resort Corp. E-Da Entertainment Co., Ltd. Li Hui Development Co., Ltd. Ji Chang Enterprise Co., Ltd. Yieh United Steel Corporation Hong Yuh Assets Management Co.,Ltd.	233,500 303,290 304,654 39,553 209,619 158,060 98,220 61,925 110,341 15,090 23,917 19,103 53,724 46 4,900 1,400 1,845 1,349 100 - 1,170 7,410 69,681 1,042 676,661 156,720	$9,256,089 2,759,689 626,158 1,323,778 891,318 1,696,410 238,963 795,650 1,256,257 705,651 264,436 242,281 805,359 4,214 71,091 7,621 2,941 10,660 2,846 3,929 - 55,549 298,202 4,546 3,858,815 574,311	- - - - 8,533 - 88,397 3,716 - - 311 350 18,804 - 1,496 - - - - - - - 1,596 - - 1,600	$ 22,207 - - - - - 305,805 16,129 - 7,846 - - 270,899 45 25,691 - 8,701 - 36 143 - - - - - 32,550	- - - - - - - - - - - - - - - - - - - - - - - - - -	$- 17,355 546,076 124,399 16,216 232,385 - - 164,363 - 1,660 2,411 - - - 1,906 - 1,553 - - - 4,837 1,715 60 1,023,528 -	233,500 303,290 304,654 39,553 218,152 158,060 186,617 65,641 110,341 15,090 24,228 19,453 72,528 46 6,396 1,400 1,845 1,349 100 - 1,170 7,410 71,277 1,042 676,661 158,320	100.00 30.23 57.41 11.30 28.44 95.56 100.00 23.00 99.04 32.80 100.00 100.00 78.51 100.00 90.12 35.00 17.09 19.00 100.00 47.00 14.63 19.00 44.56 45.00 25.82 80.00	9,278,296 2,742,334 80,082 1,199,379 875,102 1,464,025 544,768 811,779 1,091,894 713,497 262,776 219,870 1,076,258 4,259 96,782 5,715 11,642 9,107 2,882 4,072 - 50,712 296,487 4,486 2,835,287 606,861	39.74 9.19 0.76 30.32 4.04 9.19 2.92 12.94 10.01 47.28 10.62 11.30 14.84 92.59 15.13 4.08 6.31 6.75 28.82 - (1.00) 6.84 4.97 5.28 4.40 3.83	$9,278,296 2,786,046 231,714 1,199,379 882,179 1,451,937 544,323 849,634 1,104,423 713,497 257,245 219,870 1,076,258 4,259 96,782 5,715 11,642 9,107 2,882 4,072 (1,165) 50,712 354,376 5,499 2,975,519 606,861	None None None None None None None None None None None None None None None None None None None None None None None None None None

－113－

Name	Beginning	Balance	In	crease	De	crease	Ending Balan	Ending Balan	ce	Marke Net	t Value or Value	Collateral or Pledge
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	%	Amount	Unit Price	Total Amount
E-Da Visual Effects Company Limited. Lian So(H.K) Co., Limited Yieh Phui America Inc. Great Emperor Hotel Co., Ltd. Kings Garden International Co., Ltd. Xinzhan Engineering and Management Consulting Co., Ltd. Total	3,185 16,560 1 317,000 258,000 320	- 277,177 132,682 2,708,506 2,306,161 1,436	- 2,400 - - - 640	- 37,702 22,029 - - 4,807	- - - - - -	- - - 89,198 138,404 -	3,185 18,960 1 317,000 258,000 960	49.00 80.00 100.00 60.15 54.89 32.00	- 314,879 154,711 2,619,308 2,167,757 6,243	(2.64) 16.61 154,711.00 8.26 8.40	(8,397) 314,879 154,711 2,619,308 2,167,757 6,243	None None None None None None
		$31,182,726		$754,590		$2,366,066			$29,551,250		$29,975,563

Note:In addition to the increase or decrease in investment, the increase and decrease in the current year were mainly due to the elimination of unrealized gains and losses from downstream transactions, the use of equity method to recognize

－114－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF REFUNDABLE DEPOSITS

DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Item Description Amount Refundable deposits Customs duty guarantee $733,850 Rent deposits 3,307 Total $737,157 Exchange rate as of December 31, 2023: USD:NTD 1: 30.705	Amount	Remark
	$733,850 3,307	USD 23,900
	$737,157

－115－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF OTHER FINANCIAL ASSETS - NONCURRENT

DECEMBER 31, 2023

Item	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledged time deposits $160 Pledged time deposits 146 $306	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledged time deposits $160 Pledged time deposits 146 $306	(In Thousands of New Taiwan Dollars) Description Amount Remark Pledged time deposits $160 Pledged time deposits 146 $306
Taiwan Bank Mega Bank Total	Pledged time deposits Pledged time deposits	$160 146
		$306

－116－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF SHORT-TERM LOANS

DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars and Foreign Currencies)

Creditor	Description	Beginning Balance	Loan Commitment (Note 2)	Collateral
Bangkok - Kaohsiung Branch Mega Bank - Gangdu Branch Shanghai Bank - Chien Chin Branch Land Bank - Gangshan Branch CTBC Bank- Minzu Branch Taichung Commercial Bank- Kaohsiung Branch SinoPac Bank- North Kaohsiung Branch Hua Nan Bank- Gangshan Branch Chang Hwa Bank - Kaohsiung Branch Panhsin Bank - Hsin Hsing Branch China Bank -Taipei Branch KGI Bank - Kaohsiung Branch Taiwan Cooperative Bank - Kaohsiung Branch O-Bank- Kaohsiung Branch Subtotal Shin Kong Bank- Chihsien Branch COTA Bank Bangkok - Kaohsiung Branch The Export-lmport Bank of Roc - Kaohsiung Branch China Bank -Taipei Branch Far Eastern Int'l Bank - Kaohsiung Branch	Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Loan for material purchase Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan	$430,714 274,188 149,914 300,176 164,540 99,966 61,484 199,321 404,589 79,926 99,611 449,289 99,027 304,511	$616,700 1,180,000 152,000 550,000 500,000 200,000 300,000 300,000 700,000 230,000 622,000 600,000 550,000 400,000	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 None None None None None
		$3,117,256	$6,900,700
		$100,000 100,000 150,000 100,000 295,000 250,000	$200,000 100,000 616,700 100,000 622,000 300,000

－－ 117

KGI Bank - Kaohsiung Branch Credit Loan Mega Bank - Gangdu Branch Credit Loan Yuanta Bank - Kaohsiung Branch Credit Loan Sunny Bank- Liwen Branch Credit Loan Taiwan Cooperative Bank - Kaohsiung Branch Credit Loan Taipei Fubon Bank- Kaohsiung Branch Credit Loan First Bank - Hsin Hsing Branch Credit Loan Chang Hwa Bank - Kaohsiung Branch Credit Loan Panhsin Bank - Hsin Hsing Branch Credit Loan Land Bank - Gangshan Branch Credit Loan Taishin International Bank - Lingya Branch Credit Loan Entie Bank - Kaohsiung Branch Credit Loan Credit Loan Subtotal Total Range of Interest Rates (%)	150,000 September 19, 2023~ January 19, 2024 105,000 November 29,2023~ February 27,2024 150,000 November 9,2023~ February 9,2024 100,000 November 9,2023~ November 9,2024 370,000 October 24,2023~ December 27,2024 200,000 November 20,2023~ February 16,2024 100,000 October 17,2023~ October 17,2024 100,000 December 25,2023~ June 22,2024 150,000 October 24,2023~ January 18,2024 100,000 November 30,2023~ February 27,2024 240,000 December 4,2023~ January 4,2024 300,000 December 4,2023~ January 27,2024 $3,060,000 $6,177,256 2.21%-2.67%	600,000 None 1,180,000 None 250,000 None 100,000 None 550,000 None 200,000 None 600,000 None 700,000 None 230,000 None 550,000 None 250,000 None 400,000 None $7,548,700

Note 1: Please refer to Note 8 for the collaterals of the above short-term loans. Note 2: Credit lines shown above are the combined limits from each banks.

－118－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF SHORT-TERM NOTES AND BILLS PAYABLE DECEMBER 31, 2023

Contract Period	Issued Amount $100,000 200,000 150,000 200,000 100,000 100,000 150,000 $1,000,000	(In Thousands of New Taiwan Dollars) Discount Book Value Remark $318 $99,682 246 199,754 180 149,820 407 199,593 76 99,924 25 99,975 67 149,933 $1,319 $998,681 2.282%~2.318%	(In Thousands of New Taiwan Dollars) Discount Book Value Remark $318 $99,682 246 199,754 180 149,820 407 199,593 76 99,924 25 99,975 67 149,933 $1,319 $998,681 2.282%~2.318%
December 18, 2023~ February 23, 2024 November 24, 2023~ January 23, 2024 December 21, 2023~ January 19, 2024 December 12, 2023~ February 05, 2024 November 13, 2023~ January 12, 2024 October 06, 2023~ January 04, 2024 November 07, 2023~ January 09, 2024

－－ 119

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF NOTES PAYABLE

DECEMBER 31, 2023

Vendor Name	Description	(In Thousands of New Taiwan Dollars) Amount Remark $149,922 53,686 30,832 247,474 $481,914	(In Thousands of New Taiwan Dollars) Amount Remark $149,922 53,686 30,832 247,474 $481,914
MEGA Bank (Note) Company F Company G Others Total	Trade payable Trade payable Trade payable Under 5%	$149,922 53,686 30,832 247,474
		$481,914

Note: Notes payable to China Steel Corporation, and China Steel Corporation transferred such notes receivable to Mega International Commercial Bank.

－120－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF ACCOUNTS PAYABLES

DECEMBER 31, 2023

Vendor Name	Description	(In Thousands of New Taiwan Dollars) Amount Remark $125,435 123,065 83,486 USD 2,719 153,528 $485,514	(In Thousands of New Taiwan Dollars) Amount Remark $125,435 123,065 83,486 USD 2,719 153,528 $485,514
Company H Company I Company J Others Total	Trade payable Trade payable Trade payable Under 5%	$125,435 123,065 83,486 153,528	USD 2,719
		$485,514

Exchange rate as of December 31, 2023: USD:NTD 1: 30.705

－121－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF LONG-TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS DECEMBER 31, 2023

Creditor	Description Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan	Amount $309,600 309,600 230,400 230,400 230,400 230,400 230,400 161,100 137,700 297,900 297,900 219,600 219,600 219,600 219,600 219,600 153,900 132,300 4,050,000	Contract Period January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026 January 7, 2021~ January 7, 2026	(In Thousands of New Taiwan Dollars) Collateral Remark Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment None None None None None None None None None	(In Thousands of New Taiwan Dollars) Collateral Remark Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment None None None None None None None None None
Syndicated Loan of Mega Bank: Mega Bank - Gangdu Branch Chang Hwa Bank - Kaohsiung Branch Agricultural Bank - Sales Department Taiwan Cooperative Bank - Kaohsiung Branch Taiwan Bank - Gangshan Branch First Bank Hua Nan Bank - Gangshan Branch Taiwan Business Bank - Kaohsiung Branch Land Bank - Gangshan Branch Mega Bank - Gangdu Branch Chang Hwa Bank - Kaohsiung Branch Agricultural Bank - sales Department Taiwan Cooperative Bank - Kaohsiung Branch Taiwan Bank - Gangshan Branch First Bank Hua Nan Bank - Gangshan Branch Taiwan Business Bank - Kaohsiung Branch Land Bank-Gangshan Branch Subtotal

－122－

Creditor	Description Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Pledge Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan Credit Loan	Amount 430,902 248,026 345,622 106,420 248,026 106,419 106,419 106,419 176,753 50,994 544,500 312,300 436,500 134,100 312,300 134,100 134,100 134,100 223,200 64,800 4,356,000	Contract Period June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026 June 22, 2021~June 22, 2026	Collateral Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment Land, plant, machinery and equipment None None None None None None None None None None	Remark
Syndicated Loan of Taiwan Cooperative Bank: Taiwan Cooperative Bank-Kaohsiung Branch HUA NAN Bank - Gangshan Branch Land Bank - Gangshan Branch Mega Bank - Gangdu Branch First Bank - Hsin Hsing Branch Agricultural Bank - Sales Department SCSB - Qianjin Branch Taishin International Bank - Lingya Branch Chang Hwa Bank - Kaohsiung Branch Taiwan Business Bank - Kaohsiung Branch Taiwan Cooperative Bank - Kaohsiung Branch HUA NAN Bank - Gangshan Branch Land Bank - Gangshan Branch Mega Bank - Gangdu Branch First Bank - Hsin Hsing Branch Agricultural Bank - Sales Department SCSB - Qianjin Branch Taishin International Bank - Lingya Branch Chang Hwa Bank - Kaohsiung Branch Taiwan Business Bank - Kaohsiung Branch Subtotal

－123－

Creditor	Description	Amount 38,400 46,760 71,429 200,000 356,589 130,000 130,000 8,892,589 (17,309) (1,720,054) $7,155,226 2.4316%-2.795%	Contract Period July 29, 2013~ July 29, 2028 August 03, 2016~ July 15, 2030 April 25 2021~April 25 2026 February 15, 2023~ May 15, 2024 May 08, 2023~ October 08, 2025	Collateral	Remark
First Bank - Hsin Hsing Branch First Bank - Hsin Hsing Branch Taiwan Bank - Gangshan Branch The Export-Import Bank of the Republic of China Subtotal of Pledge Loan SCSB Subtotal Total Less: unamortized syndicated loan arrangement fee Less: Current portion of long-term loans Balance of long-term loans Range of interest rates	Pledge Loan Pledge Loan Pledge Loan Pledge Loan Credit Loan			Buildings Buildings Land, plants Land, plants None

－124－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF LEASE LIABILITIES

DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars) Lease period Discount Rate Amount 2 to 32 years 1.9661%- 2.2817% $177,702 10 years 1.9661%- 2.077% 22,229 199,931 (11,645) $188,286	(In Thousands of New Taiwan Dollars) Lease period Discount Rate Amount 2 to 32 years 1.9661%- 2.2817% $177,702 10 years 1.9661%- 2.077% 22,229 199,931 (11,645) $188,286	(In Thousands of New Taiwan Dollars) Lease period Discount Rate Amount 2 to 32 years 1.9661%- 2.2817% $177,702 10 years 1.9661%- 2.077% 22,229 199,931 (11,645) $188,286
2 to 32 years 10 years	1.9661%- 2.2817% 1.9661%- 2.077%	$177,702 22,229
		199,931 (11,645)
		$188,286

－125－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF GUARANTEE DEPOSITS

DECEMBER 31, 2023

Item	Description	(In Thousands of New Taiwan Dollars) Amount Remark $2,000	(In Thousands of New Taiwan Dollars) Amount Remark $2,000
Guarantee deposits	Sales deposits from customers	$2,000

－126－

YIEH PHUI ENTERPRISE CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2023

Item	(In Thousands of New Taiwan Dollars) Quantity (tons) Amount Remark 540,863 $15,084,726 187,517 7,337,688 2,807 35,394 22,457,808 78,597 1,273,490 23,731,298 29,820 183,949 23,915,247 805,036 24,720,283 97 (496) (59,223) $24,660,661	(In Thousands of New Taiwan Dollars) Quantity (tons) Amount Remark 540,863 $15,084,726 187,517 7,337,688 2,807 35,394 22,457,808 78,597 1,273,490 23,731,298 29,820 183,949 23,915,247 805,036 24,720,283 97 (496) (59,223) $24,660,661
Steel Department Galvanized Steel Coils Pre-painted Steel Coils Others Subtotal of revenue from finished goods Revenue from raw materials ,by-products and scraps Sales revenue subtotal Processing income of Steel Plates Subtotal Heavy Industry Departments Construction revenue Total Realized (unrealized) gross profit Less: Sales return Sales discount Net operating revenue	540,863 187,517 2,807 78,597 29,820	$15,084,726 7,337,688 35,394
		22,457,808
		1,273,490
		23,731,298
		183,949
		23,915,247 805,036
		24,720,283 97 (496) (59,223)
		$24,660,661

－－ 127

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF OPERATING COST

FOR THE YEAR ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Item	Amount
Steel Department Raw materials, beginning of the year Add: Raw materials purchased Freight expenses Less: Raw materials, ending of the year Transfer to operating expenses Raw materials sold Raw materials used Supplies, beginning of the year Add: Supplies purchased Less: Supplies, ending of the year Transfer to operating expenses Supplies used Add: Direct labor Factory overheads Production cost Work in progress, beginning of the year Add: Transfer from finished goods Less: Work in progress, ending of the year Scraps and by-products Cost of finished goods Finished goods, beginning of the year Add: Transfer from raw material Less: Finished goods, ending of the year Transfer to operating expenses Transfer to work in progress Cost of finished goods sold	$2,027,054 18,812,904 77,629 (1,560,751) (138,616) (783,215)
	18,435,005
	16,005 561,805 (15,013) (562,797)
	-
	324,124 2,719,569
	21,478,698 465,424 130,622 (697,055) (475,454)
	20,902,235
	1,558,288 (1,561,627) (159,985) (129,603) (130,622)
	20,478,686

－128－

Cost adjustment items： Inventory valuation loss (recovery gain) Purchase and construction contract loss (recovery gain) Unallocated fixed factory overhead Purchase discounts- Pick-up bonus, etc. Subtotal cost for Steel Department Cost of raw materials sold Cost of by-products sold Processing cost Total operating cost for Steel Department Heavy Industry Department Construction cost Inventory valuation loss (recovery gain) Purchase and construction contract loss (recovery gain) Total operating cost for Heavy Industry Department Total operating cost	(134,121) - 102,088 (4,087)
	20,442,566
	783,215 486,791 159,985
	21,872,557
	729,481 9,812 (616)
	738,677
	$22,611,234

－－ 129

YIEH PHUI ENTERPRISE CO., LTD. STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2023

Item Payroll expense Insurance Entertain expense Depreciation Employee benefits/welfare Pension Transportation expense Other expenses (Note) Total	Selling and marketing expenses $160,406 18,624 9,402 12,921 7,528 8,186 856,438 66,515 $1,140,020	(In Thousands of New Taiwan Dollars) General and administrative expenses Total $215,255 $375,661 23,983 42,607 16,782 26,184 10,215 23,136 13,699 21,227 9,774 17,960 - 856,438 84,263 150,778 $373,971 $1,513,991	(In Thousands of New Taiwan Dollars) General and administrative expenses Total $215,255 $375,661 23,983 42,607 16,782 26,184 10,215 23,136 13,699 21,227 9,774 17,960 - 856,438 84,263 150,778 $373,971 $1,513,991
			$375,661 42,607 26,184 23,136 21,227 17,960 856,438 150,778
			$1,513,991

(Note): None of the individual item exceeds 2% of the amount.

－130－

AI assistant

YP — Audit Report / Information 2023

51950_rns_2023-12-04_cebbe807-ebc6-431d-b263-2f33e8f493f0.pdf

Table of Contents

Opinion

Basis for Opinion

Key Audit Matters

Revenue recognition

Description of key audit matter

How the matter was addressed in our audit

Valuation of inventory

Description of key audit matter

How the matter was addressed in our audit

Other Matters

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

Auditors' Responsibilities for the Audit of the Standalone Financial Statements

Notice to Readers

YIEH PHUI ENTERPRISE CO., LTD STANDALONE BALANCE SHEETS

YIEH PHUI ENTERPRISE CO., LTD.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME

YIEH PHUI ENTERPRISE CO., LTD. STANDALONE STATEMENTS OF CHANGES IN EQUITY

YIEH PHUI ENTERPRISE CO., LTD. STANDALONE STATEMENTS OF CASH FLOWS

YIEH PHUI ENTERPRISE CO., LTD. NOTES TO STANDALONE FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

1 GENERAL INFORMATION

3 APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

4.1 Statement of Compliance

4.2 Basis of Preparation

4.3 Foreign Currencies

4.4Classification of Current and Noncurrent Assets and Liabilities

(1) Steel Department

4.5 Cash and cash equivalents

4.6 Financial instruments

4.7 Inventories

4.8 Investments accounted for using equity method / subsidiaries and associates

4.9 Property, Plant and Equipment

4.10 Leases

4.11 Investment properties

4.12 Impairment of non-financial assets

4.13 Provisions

4.14 Employee benefits

4.15 Share capital and treasury shares

(1) Share capital

4.16 Income tax

4.17 Revenue Recognition

(3) Revenue from construction contracts

4.18 Borrowing costs

5. CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND MAJOR SOURCES OF ASSUMPTION UNCERTAINTY

5.1 Critical judgements in applying accounting policies

(1) Revenue recognition

(2) Lease term

5.2 Critical accounting estimates and assumptions

(1) Estimated impairment of financial assets

(2) Process of fair value measurement and evaluation

(3) Impairment assessment of tangible and intangible assets

(4) Impairment assessment of investments accounted for using the equity method

(5) Realisability of deferred tax assets

(6) Evaluation of inventories

(7) Calculation of accrued pension obligations

(8) Tenant's increase in borrowing interest rate

6. DETAILS OF SIGNIFICANT ACCOUNTS

6.1 Cash and cash equivalents

6.2 Financial assets at fair value through profit or loss- current

6.3 Notes receivable, net

6.4 Accounts receivable, net

6.5 Other receivables

6.6 Inventories and operating cost

6.7 Prepayments

6.8 Financial assets at fair value through other comprehensive income - noncurrent

6.9 Investments accounted for using equity method

1.Subsidiaries:

2.Associates:

6.10 Property, Plant and Equipment

6.11 Lease Agreement

6.12 Investment properties

3.Rental revenue and direct operating expenses of investment properties:

6.13 Refundable deposits

6.14 Short-term Loans

6.15 Short-term notes and bills payable

YP Audit Report / Information 2023