Y.S.H. - Interim / Quarterly Report 2024

Stock Code: 3705

YUNGSHIN GLOBAL HOLDING CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements and Independent Auditors’ Review Report

For the Nine Months Ended September 30, 2024 and 2023

Address: No. 1191, Sec. 1, Zhongshan Rd., Dajia Dist., Taichung City Tel: 02-25450185

Notice to Readers

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

Item
1. Cover Page
2. Table of Contents
3. Independent Auditors' Review Report
4. Consolidated Balance Sheets
5. Consolidated Statements of Comprehensive Income
6. Consolidated Statements of Changes in Equity
7. Consolidated Statements of Cash Flows
8. Notes to Consolidated Financial Statements
1.
General Information
2.
Approval of Financial Statements
3.
Application of New and Amended Standards and Interpretations

4.
Summary of Significant Accounting Policies

5.
Critical Accounting Judgments and Key Sources of Estimation Uncertainty
and Assumptions
6.
Descriptions of Material Accounting Items

7.
Related Parties Transactions

8.
Pledged Assets
9.
Significant Contingent Liabilities and Unrecognized Contract Commitments
10. Losses due to Major Disasters
11. Significant Subsequent Events
12. Others
13. Separately Disclosed Items
(1) Information on Significant Transactions

(2) Information on Investees Companies
(3) Information on Investments in Mainland China
(4) Information of Major Shareholders
14. Segment Information Page

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Item 1. Cover Page 2. Table of Contents 3. Independent Auditors' Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to Consolidated Financial Statements 1. General Information 2. Approval of Financial Statements 3. Application of New and Amended Standards and Interpretations 4. Summary of Significant Accounting Policies 5. Critical Accounting Judgments and Key Sources of Estimation Uncertainty and Assumptions 6. Descriptions of Material Accounting Items 7. Related Parties Transactions 8. Pledged Assets 9. Significant Contingent Liabilities and Unrecognized Contract Commitments 10. Losses due to Major Disasters 11. Significant Subsequent Events 12. Others 13. Separately Disclosed Items (1) Information on Significant Transactions (2) Information on Investees Companies (3) Information on Investments in Mainland China (4) Information of Major Shareholders 14. Segment Information	Page
	1 2 3`～`4 5 6 7 8 9 9 9 9`～`11 11`～`14 14 15`～`44 45`～`47 48 48 48 48 49 50 50`～`52 53 54 54 55

Independent Auditors' Review Report

To the Board of Directors of YungShin Global Holding Corporation:

Introduction

We have reviewed the consolidated financial statements of YungShin Group, which comprise the Consolidated Balance Sheet as of September 30, 2024, and September 30, 2023 and the consolidated statements of comprehensive income from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023, consolidated statements of changes in equity, and consolidated statements of cash flows, and notes to the consolidated financial statements, including a summary of significant accounting policies as of period from January 1 to September 30, 2024 and 2023. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity.” A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Therefore, we do not express an audit opinion.

Basis for Qualified Conclusion

As disclosed in Note 4(2) of the consolidated financial statements, some non-significant subsidiaries included in the consolidated financial statements are based on the financial reports of these investee companies, which have not been reviewed by auditors for the same period. As of September 30, 2024, and September 30, 2023, the total assets of these subsidiaries amounted to NT$1,846,088 thousand and NT$1,705,901 thousand, respectively, representing 13.72% and 14.86% of the consolidated total assets. The total liabilities were NT$554,950 thousand and NT$621,137 thousand, respectively, representing 13.83% and 16.63% of the consolidated total liabilities. For the periods from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023, the comprehensive income was NT$144,420 thousand, NT$83,079 thousand, NT$327,245 thousand and NT$45,838 thousand, respectively, representing 45.85%, 27.73%, 32.01% and 7.07% of the consolidated comprehensive income.

In addition to the aforementioned, as stated in Note 6(7) of the consolidated financial statements, YungShin Group’s investments accounted for using the equity method amounted to NT$1,058,211 thousand and NT$1,093,716 thousand as of September 30, 2024 and 2023, respectively. The share of profit or loss from equity-method investments for the periods from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023, amounted to NT$35,730 thousand, NT$19,242 thousand, NT$88,776 thousand and NT$84,579 thousand, respectively. These amounts are based on the financial reports of the investee companies for the same period, which have not been reviewed by auditors.

Qualified Conclusion

Based on our review, except for the potential adjustments to the consolidated financial statements that might arise if the financial reports of the aforementioned investee companies had been reviewed by auditors, as described in the basis for Qualified Conclusion paragraph, we did not discover matters which would lead us to believe that the consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of YungShin Group as of September 30, 2024 and 2023, as well as its consolidated financial performance for the periods from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023 and consolidated cash flows for the periods from January 1 to September 30, 2024, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting,” endorsed and issued into effect by the Financial Supervisory Commission.

KPMG Taiwan

CPA : Min-Ju Chao Lily Lu Competent Securities : Financial-Supervisory-Securities-Auditing Authority's Approval No.1050036075 Document No. Financial-Supervisory-Securities-Sixth No.0940100754

November 5, 2024

YUNGSHIN GLOBAL HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

September 30, 2024, December 31, 2023, and September 30, 2023

Unit: In Thousands of New Taiwan Dollars

9.30.2024 Amount % $ 1,673,607 13 63,482 - 317,058 3 249,590 2 1,343,666 10 56,617 - 26,607 - 221 - 3,130,067 23 205,804 2 10,971 - 7,077,690 53 42,000 - 187,035 2 1,058,211 8 4,592,930 34 51,711 - 30,583 - 39,355 - 137,583 1 240,667 2 6,380,075 47 $ 13,457,765 100	12.31.2023	12.31.2023	9.30.2023 Amount % 1,433,501 12 63,482 1 266,282 2 305,556 3 1,215,933 11 46,650 - 30,841 - 163 - 2,784,838 24 206,270 2 13,169 - 6,366,685 55 24,000 - 61,949 1 1,093,716 10 3,583,813 31 31,177 - 31,682 - 10,734 - 165,771 2 107,409 1 5,110,251 45 11,476,936 100 9.30.2024 LIABILITIES AND EQUITY Amount % 21xx CURRENT LIABILITIES: 2100 Short-term borrowings (Notes 6(10), (14) and 8) 871,120 7 2130 Contract liabilities - current (Note 6(22)) 2,777 - 2150 Notes payable 8,100 - 2170 Accounts payable 629,654 5 2181 Accounts payable to related parties (Note 7) 6,702 - 2200 Other payables (Note 7) 786,327 6 2230 Current tax liabilities 163,170 1 2280 Lease liabilities - Current (Note 6(16) and 7) 16,298 - 2322 Long-term borrowings due within one year (Note 6(10), (15) and 8) 96,893 1 2365 Refund liabilities - current (Note 6(22)) 23,332 - 2399 Other current liabilities 20,456 - Total current liabilities 2,624,829 20 25xx NON-CURRENT LIABILITIES: 2527 Contract liabilities - non-current (Note 6(22)) 359,482 3 2540 Long-term borrowings (Notes 6(10), (15) and 8) 413,214 3 2550 Provision of employee benefits - non-current 37,548 - 2570 Deferred tax liabilities 467,981 3 2580 Lease liabilities -non-current (Note 6(16) and 7) 24,356 - 2640 Net defined benefit liabilities`－`non-current 5,064 - 2675 Refund liabilities - non-current (Note 6(22)) 75,557 1 2670 Other non-current liabilities 5,144 - Total non-current liabilities 1,388,346 10 2xxx Total liabilities 4,013,175 30 31xx EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Notes 6(7), (8), (19) and (20)): 3110 Share capital 2,664,230 20 3200 Capital surplus 2,336,821 17 Retained earnings: 3310 Legal reserve 965,266 7 3320 Special reserve 350,043 3 3350 Unappropriated earnings 1,582,035 12 Total retained earnings 2,897,344 22 3400 Other equity (230,716) (2) 3500 Treasury shares (1,439) - Total equity attributed to the owners of the corporation 7,666,240 57 36xx Non-controlling Interests (Note 6(8)) 1,778,350 13 3xxx Total Equity 9,444,590 70 2-3xxx TOTAL LIABILITIES AND EQUITY 13,457,765 100	12.31.2023 Amount % 977,411 9 239 - 1,514 - 545,488 5 11,757 - 709,102 6 121,241 1 8,545 - 1,551 - 31,567 - 19,505 - 2,427,920 21 359,482 3 241,996 2 64,116 1 391,534 3 8,408 - 28,188 - 75,557 1 270 - 1,169,551 10 3,597,471 31 2,664,230 23 2,339,474 20 881,899 8 312,829 3 1,495,724 13 2,690,452 24 (350,043) (3) (1,439) - 7,342,674 64 572,289 5 7,914,963 69 11,512,434 100	9.30.2023	9.30.2023
Amount	Amount	%	Amount	Amount 977,411 239 1,514 545,488 11,757 709,102 121,241 8,545 1,551 31,567 19,505 2,427,920 359,482 241,996 64,116 391,534 8,408 28,188 75,557 270 1,169,551 3,597,471 2,664,230 2,339,474 881,899 312,829 1,495,724 2,690,452 (350,043) (1,439) 7,342,674 572,289 7,914,963 11,512,434	Amount 1,110,867 8,726 5,243 556,877 22,370 642,080 91,389 9,714 1,938 23,679 18,616 2,491,499 350,933 242,380 62,542 392,152 9,033 43,350 142,772 280 1,243,442 3,734,941 2,664,230 2,354,803 881,899 312,829 1,280,188 2,474,916 (324,338) (1,439) 7,168,172 573,823 7,741,995 11,476,936	%
$ 1,673,607 63,482 317,058 249,590 1,343,666 56,617 26,607 221 3,130,067 205,804 10,971	1,486,926 63,482 257,646 316,890 1,315,362 51,004 26,392 - 2,773,031 146,105 5,090	13 1 2 3 11 1 - - 24 1 -	1,433,501 63,482 266,282 305,556 1,215,933 46,650 30,841 163 2,784,838 206,270 13,169			10 - - 5 - 6 1 - - - -
						22
						3 2 1 3 - - 1 -
7,077,690	6,441,928	56	6,366,685
42,000 187,035 1,058,211 4,592,930 51,711 30,583 39,355 137,583 240,667	42,000 66,069 1,088,916 3,537,720 28,675 30,782 8,547 157,718 110,079	- 1 10 31 - - - 1 1	24,000 61,949 1,093,716 3,583,813 31,177 31,682 10,734 165,771 107,409
						10
						32
						23
						21
						8 3 11
6,380,075	5,070,506	44	5,110,251
						22
						(3)
						-
						63
						5
						68
$ 13,457,765	11,512,434	100	11,476,936			100

(Please refer to the accompanying notes to the consolidated financial statements for details)

Chairman: Fang-Hsin Lee

President: Chih-Wei Chien

Accounting Manager: Yu-Yi Lee

YUNGSHIN GLOBAL HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

July 1 to September 30, 2024 and 2023, and January 1 to September 30, 2024 and 2023

Unit: In Thousands of New Taiwan Dollars

July to September,	July to September,	January to September, 2024 Amount % 5,876,228 100 3,281,795 56 2,594,433 44 944,089 16 394,202 7 287,373 5 (1,754) - 1,623,910 28 970,523 16 39,557 1 26,073 - 145,892 3 (22,406) - 88,776 1 277,892 5 1,248,415 21 338,642 6 909,773 15 (2,135) - (3,801) - - - - - (5,936) - 25,073 - 122,262 2 28,971 - 118,364 2 112,428 2 1,022,201 17 820,109 14 89,664 1 909,773 15 938,992 16 83,209 1 1,022,201 17 3.08 3.08	January to September, 2023	January to September, 2023
Amount $ 2,103,773 1,180,081 923,692 341,331 134,023 106,123 (120) 581,357 342,335 11,096 11,684 (22,319) (8,254) 35,730 27,937 370,272 115,944 254,328 (76) (29,522) - - (29,598) 22,168 91,450 23,336 90,282 60,684 $ 315,012 $ 218,468 35,860 $ 254,328 $ 297,575 17,437 $ 315,012 $	Amount 1,720,417 974,106 746,311 322,896 123,628 91,789 (165) 538,148 208,163 13,627 66,393 46,998 (8,923) 19,242 137,337 345,500 79,691 265,809 - (11,075) 5,737 - (5,338) 20,930 27,134 8,888 39,176 33,838 299,647 241,931 23,878 265,809 272,145 27,502 299,647	Amount 5,876,228 3,281,795 2,594,433 944,089 394,202 287,373 (1,754) 1,623,910 970,523 39,557 26,073 145,892 (22,406) 88,776 277,892 1,248,415 338,642 909,773 (2,135) (3,801) - - (5,936) 25,073 122,262 28,971 118,364 112,428 1,022,201 820,109 89,664 909,773 938,992 83,209 1,022,201	Amount 5,083,572 2,908,244 2,175,328 900,994 355,877 272,294 (884) 1,528,281 647,047 37,748 76,219 52,118 (26,266) 84,579 224,398 871,445 216,447 654,998 - 10,619 3,226 - 13,845 (1,513) (25,426) (6,339) (20,600) (6,755) 648,243 618,133 36,865 654,998 606,624 41,619 648,243	%
				100 57
				43
				18 7 5 -
				30
				13
				1 2 1 (1) 1
				4
				17
				4
				13
				- - - -
				-
				- - -
				-
				-
				13
				12 1
				13
				12 1
				13
				2.32
$				2.32

(Please refer to the accompanying notes to the consolidated financial statements for details) Chairman: Fang-Hsin Lee President: Chih-Wei Chien Accounting Manager: Yu-Yi Lee

Accounting Manager: Yu-Yi Lee

YUNGSHIN GLOBAL HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

January 1 to September 30, 2024 and 2023

Unit: In Thousands of New Taiwan Dollars

Equity Attributed to the Owners of the Corporation

Share Capital	Capital Surplus		Retained Earnings	Retained Earnings			Other Equity Items		Treasury Shares	Total Equity Attributed to the Owners of the Corporation	Non- Controlling Interests	Total Equity
						Exchange Differences on Translating Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Total
		Legal Reserve	Special Reserve	Unappropriated Earnings	Total
$ 2,664,230 - - - - -	2,340,374 - - - - -	800,994 80,905 - - - -	391,162 - (78,333) - - -	1,277,400 (80,905) 78,333 (612,773) 618,133 -	2,469,556 - - (612,773) 618,133 -	(336,084) - - - - (25,354)	23,255 - - - - 13,845	(312,829) - - - - (11,509)	(1,439) - - - - -	7,159,892 - - (612,773) 618,133 (11,509)	543,259 - - - 36,865 4,754	7,703,151 - - (612,773) 654,998 (6,755)
-	-	-	-	618,133	618,133	(25,354)	13,845	(11,509)	-	606,624	41,619	648,243
- - - -	(1,353) 98 15,684 -	- - - -	- - - -	- - - -	- - - -	- - - -	- - - -	- - - -	- - - -	(1,353) 98 15,684 -	- - 25,514 (36,569)	(1,353) 98 41,198 (36,569)
$ 2,664,230	2,354,803	881,899	312,829	1,280,188	2,474,916	(361,438)	37,100	(324,338)	(1,439)	7,168,172	573,823	7,741,995
$ 2,664,230 - - - - -	2,339,474 - - - - -	881,899 83,367 - - - -	312,829 - 37,214 - - -	1,495,724 (83,367) (37,214) (612,773) 820,109 (444)	2,690,452 - - (612,773) 820,109 (444)	(386,296) - - - - 115,884	36,253 - - - - 3,443	(350,043) - - - - 119,327	(1,439) - - - - -	7,342,674 - - (612,773) 820,109 118,883	572,289 - - - 89,664 (6,455)	7,914,963 - - (612,773) 909,773 112,428
-	-	-	-	819,665	819,665	115,884	3,443	119,327	-	938,992	83,209	1,022,201
- - - -	98 (2,751) - -	- - - -	- - - -	- - - -	- - - -	- - - -	- - - -	- - - -	- - - -	98 (2,751) - -	- (1,205) (58,225) 1,182,282	98 (3,956) (58,225) 1,182,282
$ 2,664,230	2,336,821	965,266	350,043	1,582,035	2,897,344	(270,412)	39,696	(230,716)	(1,439)	7,666,240	1,778,350	9,444,590

(Please refer to the accompanying notes to the consolidated financial statements for details)

Chairman: Fang-Hsin Lee

President: Chih-Wei Chien

Accounting Manager: Yu-Yi Lee

YUNGSHIN GLOBAL HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

January 1 to September 30, 2024 and 2023

Unit: In Thousands of New Taiwan Dollars

CASH FLOWS FROM OPERATING ACTIVITIES: Profit before income tax Adjustments for: Profit and loss items Depreciation Amortization Expected credit gain on reversal Interest expenses Interest income Dividend income Share of profit or loss of associates accounted for using the equity method Gain (loss) on disposal of property, plant and equipment Property, plant and equipment transferred to expenses Gain on re-measurement of investment Gains on lease modifications Total profit and loss items Changes in operating assets/liabilities: Net changes in operating assets: Notes receivable Accounts receivable Accounts receivable from related parties Other receivables Inventories Prepayments Other current assets Total net changes in operating assets Net changes in operating liabilities: Contract liabilities Notes payable Accounts payable Accounts payable to related parties Other payables Provisions for liabilities Other liabilities (included refund liabilities) Net defined benefit liabilities Total net changes in operating assets and liabilities Total net changes in assets and liabilities related to operating activities Total adjustments Cash inflow from operations Interest received Dividend received Interest paid Income tax paid Net cash inflow from operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of financial assets at fair value through other comprehensive income Acquisition of financial assets at amortized cost Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Purchase of intangible assets Cash inflow from business combination Increase in other non-current assets Increase in prepayments for equipment Dividend received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Increase in short-term borrowings Decrease in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Increase (decrease) in guarantee deposits received Repayment of the principal portion of lease liabilities Distribution of cash dividends Disposal of equity in subsidiaries Changes in non-controlling interests Net cash outflow from financing activities Effects of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Balance of cash and cash equivalents at the beginning of period Balance of cash and cash equivalents at the end of the period	January to September, 2024 $ 1,248,415 212,837 1,807 (1,754) 22,406 (39,557) (4,936) (88,776) 884 359 (113,185) (17) (9,932) 70,926 106,038 11,000 5,628 (208,914) (48,646) 6,145 (57,823) 2,507 6,586 35,700 (5,055) 22,347 (26,568) (2,865) (25,259) 7,393 (50,430) (60,362) 1,188,053 34,301 39,619 (23,628) (231,759) 1,006,586 (131) (59,412) (140,636) 6,797 (102,220) (600) 132,393 (15,642) (9,727) 4,936 (184,242) 1,513,630 (1,634,787) 265,000 (127,567) (23) (11,835) (670,900) - (3,956) (670,438) 34,775 186,681 1,486,926 $ 1,673,607	January to September, 2023
		871,445
		211,009 12,321 (884) 26,266 (37,748) (116) (84,579) (218) 1,159 - -
		127,210
		13,017 121,799 28,761 3,503 (65,515) (63,896) 2,173
		39,842
		(186) 4,566 132,092 1,340 (29,665) 4,657 (21,881) (31,734)
		59,189
		99,031
		226,241
		1,097,686 36,081 42,045 (28,048) (230,403)
		917,361
		(125) (260,908) (53,082) 438 (14,297) (2,035) - (29,144) (4,265) 116
		(363,302)
		262,440 (710,516) 110,000 (112,403) 256 (10,590) (649,244) 39,927 1,271
		(1,068,859)
		(8,247)
		(523,047)
		1,956,548
		1,433,501

(Please refer to the accompanying notes to the consolidated financial statements for details) President: Chih-Wei Chien

Chairman: Fang-Hsin Lee

Accounting Manager: Yu-Yi Lee

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements

For the Nine Months Ended September 30, 2024 and 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. General Information

YungShin Global Holding Corporation (the “Corporation”) was established in January 2011. The Corporation and its subsidiaries (collectively referred herein as the “Group”) are mainly engaged in investing, manufacturing and selling medicines, animal drugs, agricultural chemicals, industrial medicine, and cosmetics.

The Corporation was incorporated on January 3, 2011, through a share swap with Yung Shin Pharmaceutical Industrial Company Limited (hereinafter referred to as “Yung Shin Pharmaceutical”, and the Corporation's shares have been traded on the Taiwan Stock Exchange in the Republic of China since January 3, 2011. Yung Shin Pharmaceutical is a wholly-owned subsidiary of the Corporation.

2. Approval of Financial Statements

The consolidated financial statements were approved for issuance by the Board of Directors on November 5, 2024.

3. Application of New and Amended Standards and Interpretations

(1) Effect of adopted newly issued and amended standards and interpretations endorsed by the Financial Supervisory Commission (hereafter referred to as the “FSC”)
The Group has applied for the following newly amended IFRS IAS effective January 1, 2024, which has not caused any material impact on its consolidated financial statements.
‧ Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
‧ Amendments to IAS 1 “Non-current Liabilities with Covenants”
‧ Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
‧ Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”
(2) The impact of IFRS issued by the FSC but not yet effective

The Group expects that the following amendments to IFRS issued into effect on January 1, 2025 will not have a material impact on the consolidated financial statements.

‧ Amendments to IAS 21 “Lack of Exchangeability”
(3) New and amended standards and interpretations not yet endorsed by the FSC

The International Accounting Standards Board (IASB) has issued and amended standards and interpretations that have not yet been endorsed by the Financial Supervisory Commission (FSC), which may be relevant to the Group as follows:

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

Newly Issued or

Amended Standards

International Financial Reporting Standards 18 “Presentation and Disclosure in Financial Statements”

Significant Amendments

The new standards introduce three categories of income and expenses, two subtotals in the income statement, and a single note regarding management performance measures. These three amendments and enhancements to the guidelines for disaggregating information in the financial statements provide a foundation for better and more consistent information for users and will impact all companies.

Effective Date of the Standards Issued by the IASB January 1, 2027

More Structured Income Statement: Under the current standards, companies use different formats to present their operating results, making it difficult for investors to compare the financial performance of different companies. The new standards adopt a more structured income statement, introducing a newly defined subtotal for “operating profit.” Additionally, all income and expenses will be classified into three new distinct categories based on the company's primary operating activities.
Management Performance Measures (MPM): The new standards introduce a definition for management performance measures and require companies to include a single note in the financial statements explaining why each measure provides useful information, how it is calculated, and how the measure reconciles to amounts recognized according to International Financial Reporting Standards.
More Disaggregated Information: The new standards include guidance on how companies should enhance the grouping of information in their financial statements. This includes guidance on whether information should be included in the primary financial statements or further disaggregated in the notes.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

The Group is currently assessing the impact of the aforementioned standards and interpretations on its financial position and operating results. The related impacts will be disclosed upon completion of the assessment.

The Group anticipates that the following newly issued and amended standards to be determined will not have significant impact on the consolidated financial statements.

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”
IFRS 17 “Insurance Contracts” and Amendments to IFRS 17
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IFRS 9 and IFRS 7 “Classification and Measurement of Financial Instruments”
Annual Improvements to IFRS Accounting Standards

4. Summary of Significant Accounting Policies

Except as described below, the significant accounting policies adopted in these consolidated financial statements are consistent with those applied in the 2023 annual consolidated financial statements. For related information, please refer to Note 4 of the 2023 annual consolidated financial statements.

(1) Statement of Compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “Regulations of Preparation”) and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. These consolidated financial statements do not include all the necessary information required to be disclosed in a complete set of annual consolidated financial statements prepared in accordance with the IFRS, IAS, interpretations, and interpretations announcements endorsed and issued into effect by the Financial Supervisory Commission (hereinafter referred to as the “FSCendorsed IFRS”).

(2) Basis of Consolidation

The principles for preparing the consolidated financial statements are consistent with those applied in the 2023 annual consolidated financial statements. For related information, please refer to Note 4(3) of the 2023 annual consolidated financial statements.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

1) The subsidiaries included in the consolidated financial statements are listed as follows:

follows:
Investor Company	Subsidiary Name Yung Shin Pharmaceutical Industrial Co., Ltd. (YSP) Chemix Inc. (Chemix) YSP International Company Limited (YSP Inc) Vetnostrum Animal Health Co., Ltd. Yung Zip Chemical Ind. Co., Ltd. (Yung Zip) Angel Associates (Taiwan), Inc. YZP Oversea Investment Co., Ltd. Taiwan Way Chein Industrial Co., Ltd. Carlsbad Technology ,Inc. (CTI) YungShin TienTe (Shanghai) Pharmaceutical Trading Co., Ltd. (YST) Yung Shin Company Limited (YHK)	Business Activities Manufacturing and sale of medicine and cosmetics Sale of medicine Trade, investment, and other related businesses Manufacturing and sale of medicine Manufacture and sale of active pharmaceutical ingredients Import and export trading General investments Food Manufacturing Manufacturing and sale of medicine Import and export trading Sale of medicine	Proportion of Ownership (%)
			9.30.2024 100.00% 100.00% 100.00% 55.12% 20.81% 73.50% 100.00% 70.00% 74.13% 100.00% 96.50%	12.31.2023 100.00% 100.00% 100.00% 54.97% -% 73.50% -% -% 74.13% 100.00% 96.50%	9.30.2023	Remark
The Corporation The Corporation The Corporation The Corporation The Corporation Yung Shin Pharmaceutical Yung Zip Yung Zip YSP INC YSP INC YSP INC					100.00% 100.00% 100.00% 54.71% -% 73.50% -% -% 74.13% 100.00% 96.50%	Note 2 Note 2 Note 1 Note 4 Note 2 Notes 2 and 4 Note 4 Note 2 Notes 2 and 3 Note 2

Note 1: Vetnostrum Animal Health issued 77 thousand new shares in August 2023 due to the exercise of employee stock options. Moreover, the Group purchased 175 thousand shares of Vetnostrum Animal Health in December 2023. After the aforementioned transaction, the Group's shareholding percentage in Vetnostrum Animal Health Co., Ltd. was adjusted from 54.71% to 54.97%. The Group purchased 84 thousand shares, 17 thousand shares and 24 thousand shares of Vetnostrum Animal Health in January, February and May 2024, respectively. Vetnostrum Animal Health issued 3 thousand and 47 thousand new shares in March and August 2024 due to the exercise of employee stock options. After the aforementioned transaction, the Group's shareholding percentage in Vetnostrum Animal Health Co., Ltd. was adjusted from 54.97% to 55.12%.

Note 2: The Company is not a major subsidiary, its financial statements have not been reviewed by auditors.
Note 3: Shanghai Yung Zip Pharmaceutical Trading Co., Ltd. changed its name to YungShin TienTe (Shanghai) Pharmaceutical Trading Co., Ltd. on August 2, 2023.
Note 4: On May 30, 2024, Yung Zip held a by-election for one director position. After the by-election, the Group obtained more than half of the director seats, giving it control over Yung Zip and its subsidiaries.

2) Subsidiaries excluded from the consolidated financial statements: None.

(3) Employee Benefits

Defined benefit plans for an interim period are calculated based on the actuarially determined pension cost rate at the end of the immediately preceding fiscal year. The calculation basis is from the beginning of the year to the end of the period, and it is adjusted for any significant market volatility, significant reductions, settlement or other significant one-off events.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(4) Income Tax

The Group measures and discloses income tax expenses for the interim period in accordance with paragraph B12 of IAS 34 “Interim Financial Reporting” endorsed by the FSC.

Income tax expense is measured at the amount by which the profit before tax during the reporting period by the management’s best estimate of the expected effective tax rate for the year, it is apportioned into current income tax expenses and deferred income tax expenses according to the estimated proportion of current income tax expenses and deferred income tax expenses for the current year.

Income tax expenses recognized directly in equity or other comprehensive income are measured as the temporary difference between the carrying amounts of the related assets and liabilities for financial reporting purposes and their tax bases, using the applicable tax rates for expected realization or settlement.

(5) Business Combinations

The acquiring company applies the acquisition method for each business combination. Goodwill is measured at the fair value of the consideration transferred at the date of acquisition, including the amount attributable to any non-controlling interest in the acquiree, less the net amount of the identifiable assets acquired, and liabilities assumed (generally the fair value). If the resulting balance is negative, the acquiring company reassesses whether all assets acquired, and liabilities assumed have been correctly identified before recognizing the gain on bargain purchase in profit or loss.

Except for those related to the issuance of debt or equity instruments, transaction costs associated with a business combination should be recognized as expenses of the combining company immediately when incurred.

For non-controlling interest in the acquiree, if they represent current ownership interest and the holder is entitled to a proportionate share of the net assets of the of the entity upon liquidation, the acquiring company chooses to measure these interest, on a transaction-bytransaction basis, either at fair value or based on proportionate share of the current ownership instrument to the recognized amount of the acquiree's identifiable net assets. Other non-controlling interests are measured at the fair values at the acquisition date or on other bases in accordance with IFRS Accounting Standards approved by the FSC.

For a business combination concluded in stages, the acquiring company should remeasure the interests of the acquiree previously held based on the fair value on the acquisition date. Any resulting gain or loss is recognized as profit or loss. Changes in the value of the acquiree's interest that were recognized in other comprehensive income before the acquisition date should be treated in the same manner as if the acquiring company had directly disposed of its previously held interest. If it is appropriate to reclassify the interest to profit or loss upon disposal, the amount is reclassified to profit or loss.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

If the initial accounting treatment for a business combination is not completed before the reporting date of the combination transaction, the acquiring company recognizes provisional amounts for incomplete accounting items and makes retroactive adjustments or recognizes additional assets or liabilities during the measurement period to reflect the new information about the existing facts and conditions on the acquisition date. The measurement period will not exceed one year from the date of acquisition.

5. Critical Accounting Judgments and Key Sources of Estimation Uncertainty and Assumptions

The preparing of the consolidated financial statements in conformity with the Preparation Regulations and IAS 34 “Interim Financial Reporting” endorsed by the FSC requires management to make judgments, estimates and assumptions, which may affect the adoption of accounting policies, and the reporting amount of assets, liabilities, incomes and expenses. Actual results may differ from original estimates.

In preparing the consolidated financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are consistent with those disclosed in Note 5 of the 2023 annual consolidated financial statements.

Accounting policies involve significant judgments, and information that has a significant impact on the amounts recognized in the financial statements of the Group is as follows:

(1) The Group holds 36.92% of the voting rights of YSP SAH and is the single largest shareholder. The remaining holdings are not concentrated in specific shareholders; however, the Group is unable to obtain more than half of the Board of Directors of YSP SAH. Therefore, the Group are unable to dominate the activities of YSP SAH and does not have control over the company. The Group's management believes that it has significant influence over YSP SAH, and thus classifies it as an associate of the Group.
(2) The Group holds 20.81% of the voting rights in Yung Zip, and is the single largest shareholder and treated as an associates for using the equity method. However, following the board of directors' by-election on May 30, 2024, the Group obtained a majority of the board seats in Yung Zip. Consequently, the Group gained control over Yung Zip from May 30, 2024 onwards and began to apply accounting policies related to business combinations.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

6. Descriptions of Material Accounting Items

Except as described below, explanations of important accounting items in these consolidated financial statements are not significantly different from those in the 2023 consolidated financial statements. For related information, please refer to Note 6 of the 2023 consolidated financial statements.

(1) Cash and Cash Equivalents

Cash and Cash Equivalents
Cash on hand Demand deposits and check deposits Time deposits	9.30.2024 $ 1,425 1,672,182 - $ 1,673,607	12.31.2023 820 1,482,106 4,000 1,486,926	9.30.2023
			861 1,428,640 4,000
			1,433,501

Please refer to Note 6(25) for disclosure on the interest rate risk and sensitivity analysis.

(2) Financial Assets at Fair Value Through Profit or Loss - Current and Non-Current

Financial assets mandatorily at FVTPL`：` Product development investment agreements Private equity funds Total	9.30.2024 $ 63,482 42,000 $ 105,482	12.31.2023 63,482 42,000 105,482	9.30.2023
			63,482 24,000
			87,482

The Group and other companies signed an investment agreement for product development cooperation. The agreement stipulates that when the product development results are authorized and the authorization fee is obtained, the royalties will be distributed in a certain proportion.

Please refer to Note 6(25) for market risk information.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(3) Financial Assets at Fair Value Through Other Comprehensive Income - Non-Current

Equity instruments measured at fair value through other comprehensive income: Listed shares: Sawai Pharmaceutical Co., Ltd. ANA Holding Inc. Unlisted shares: Missioncare Co., Ltd. Missioncare Asset Management Co., Ltd. Limited Liability Fengyuan Medical Waste Disposal Equipment Used Cooperatives International Green Handle Co., Ltd. LTC Holding Company Ltd. Total	9.30.2024 $ 7,970 682 8,652 62,592 31,637 11 20 84,123 178,383 $ 187,035	12.31.2023	9.30.2023
		6,532 664	5,634 677
		7,196	6,311
		44,466 14,387 7 13 -	42,736 12,884 6 12 -
		58,873	55,638
		66,069	61,949

Equity instruments held by the Group are strategic long-term investments, instead of trading purpose. Therefore, they have been designated to be measured at fair value through other comprehensive income.

The Group did not have any disposal of strategic investments in the nine months ended September 30, 2024 and 2023, and there were no transfers of accumulated gains and losses within equity during this period.

Please refer to Note 6(25) for market risk information.

(4) Financial Assets at Amortized Cost - Current

Time deposits with original maturities of more than 3 months Interest Rate Range (%)	9.30.2024	12.31.2023 257,646 1.45~5.57	9.30.2023 266,282 1.45~5.15
	$ 317,058
	1.25~5.48

The Group assesses that the asset is held to maturity to receive contractual cash flows. The asset is classified as financial assets at amortized cost because the cash flows from the financial asset are solely the payment of principal and interest on the outstanding principal amount.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(5) Notes Receivable and Accounts Receivable

Notes receivable Accounts receivable Accounts receivable from related parties Overdue receivable (classified as other non-current assets) Less: Loss allowance - notes receivable Loss allowance - accounts receivable Loss allowance - overdue receivable (classified as other non-current assets)	9.30.2024	12.31.2023	9.30.2023
	$ 249,821 1,348,539 56,617 - (231) (4,873) -	317,520 1,321,397 51,004 70 (630) (6,035) (70)	306,175 1,222,293 46,650 - (619) (6,360) -
	$ 1,649,873	1,683,256	1,568,139

None of the Group's notes receivable and accounts receivable are discounted or provided as collaterals.

The Group adopts a simplified method to estimate the expected credit loss for all notes receivable and accounts receivable (including related parties), that is, using the lifetime expected credit loss. For this purpose, these notes receivable and accounts receivables are categorized based on common credit risk characteristics of customers' capability to pay for amount due in accordance with the contracts with forward-looking information incorporated, including general economic and related industry information. Due to the historical experience of credit losses of the Group, there is no significant difference in the loss patterns of different client groups. Therefore, the provision matrix does not further distinguish the customer base.

The expected credit loss analysis of the Group's notes receivable and accounts receivable was as follows:

	9.30.2024
Carrying Amount of Notes Receivable and Accounts Receivable $ 1,496,116 122,404 31,096 2,365 82 1,574 366 974 $ 1,654,977	Weighted Average Expected Credit Loss Rate (%) 0.26 0.13 0.02 0.13 - - - 100.00	Allowance for Expected Credit Losses During the Period
		3,960 161 6 3 - - - 974
		5,104

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

	12.31.2023
Carrying Amount of Notes Receivable and Accounts Receivable $ 1,381,433 193,251 29,017 22,724 24,326 39,139 31 $ 1,689,921	Weighted Average Expected Credit Loss Rate(%) 0.41 0.37 0.65 0.42 0.16 0.01 12.90	Allowance for Expected Credit Losses During the Period
		5,617 717 190 95 39 3 4
		6,665

The above accounts receivable amount does not include NT$70 thousand owed by a single sales customer to the Group. Due to the unstable assessment of the receivables' collectability from this customer, a full provision for loss has been made against the aforementioned amount, and therefore, it is not included in the calculation of the Group's expected credit losses for the remaining period.

	9.30.2023
Carrying Amount of Notes Receivable and Accounts Receivable	Weighted Average Expected Credit Loss Rate (%)	Allowance for Expected Credit Losses During the Period
$ 1,280,559 102,931 42,060 48,445 50,454 46,927 749 99 2,894	0.30 0.13 0.03 0.01 0.01 - - 87.88 100.00	3,851 129 13 2 3 - - 87 2,894
$ 1,575,118		6,979

Changes in allowance for loss on notes receivable and accounts receivable of the Group are as follows:

Balance on January 1 Recognized impairment gain on reversal Amounts written off as uncollectible during the year Acquired by combinations Difference of foreign exchange Balance at end of period	January to September, 2024 $ 6,735 (1,754) - 97 26 $ 5,104	January to September, 2023
		7,785 (884) (36) - 114
		6,979

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(6) Inventories

Finished goods Work in process (include semi-finished products) Raw materials Supplies Inventory in transit	9.30.2024 $ 1,427,107 307,873 1,190,382 194,705 10,000 $ 3,130,067	12.31.2023	9.30.2023
		973,271 295,035 1,299,045 181,459 24,221	1,220,510 239,601 968,518 172,711 183,498
		2,773,031	2,784,838

The Group transferred the inventory from normal sales to operating costs. In addition, it includes other expenses and losses directly in operating costs as follows:

Inventory write-down and obsolescence loss (gain on reversal) Loss for inventory obsolescence Gain on physical inventories Revenue from sale of scraps Total	July to September, 2024	July to September, 2023	January to September, 2024	January to September, 2023
	$ (2,682) 19,856 (529) (49)	(7,042) 10,941 (419) (62)	(6,219) 51,420 (1,235) (171)	792 39,089 (1,212) (214)
	$ 16,596	3,418	43,795	38,455

The Group did not pledge any inventories as collateral.

(7) Investments Accounted for Using Equity Method

Investments of the Group under equity method at reporting date are listed as below:

Associate	9.30.2024 $ 1,058,211	12.31.2023 1,088,916	9.30.2023
			1,093,716

1) Associate

Relevant information on the associates that are material to the Group is as follows:

Name of Associate	Nature of Relationship with the Group	Principal Place of Business/Country of Registration	Proportion of Ownership and Voting Rights	Proportion of Ownership and Voting Rights	Proportion of Ownership and Voting Rights
			9.30.2024	12.31.2023	9.30.2023
YSP SAH	Biopharmaceutical research and technical services	Malaysia	36.92%	36.92%	36.94%

The fair values of the associates as listed companies that are material to the Group were as follows:

were as follows:
YSP SAH	9.30.2024 $ 965,567	12.31.2023 806,689	9.30.2023
			864,705

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

Summary financial information on the associates that are material to the Group was as follows:

as follows:
		9.30.2024		12.31.2023 9.30.2023
Current assets	$	2,687,278		2,368,749		2,406,169
Non-current assets		1,306,499		1,119,063		1,158,357
Current liabilities		(483,239)		(458,688)		(507,125)
Non-current liabilities		(377,721)		(341,789)		(361,988)
Net assets	$	3,132,817		2,687,335		2,695,413
Net assets attributable
to non-controlling
interests	$	50,666			41,316	41,842
Net assets attributable
the owners of
investee	$	3,082,151		2,646,019		2,653,571
		July to	July to		January to	January to
	September,		September,		September,	September,
		2024		2023	2024	2023
Operating revenue	$	634,980		619,386	1,882,002	1,820,824
Net profit of continuing
operations for the period	$	97,322		40,900	212,273	200,451
Other comprehensive
income		247,716		73,382	331,177	(68,826)
Total comprehensive
income	$	345,038		114,282	543,450	131,625
				January to January to
			September, 2024 September, 2023
The Group's shares of associates' net
assets at the beginning	of	the period	$		976,844	967,957
Total comprehensive income attributable
to the Group for the period					200,628	48,668
Cash dividends from associates				(39,619)		(34,991)
The Group's share of associates' net
assets at the end of the	period			1,137,853		981,634
Less: Capital surplus					-	(1,353)
The Group's carrying amount of the
associates interest at the end of the
period			$	1,137,853		980,281

2) Guarantee

As of September 30, 2024, December 31, 2023 and September 30, 2023, the investments accounted for using the equity method by the Group were not pledged as collateral.

3) Investments accounted for using equity method has not reviewed by auditors

Investments accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on financial statements which have not been reviewed by CPAs.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(8) Subsidiaries with Significant Non-Controlling Interests

The non-controlling interests of subsidiaries that are significant to the Group are as follows:

1) Vetnostrum Animal Health Co., Ltd.

Subsidiary Name Vetnostrum Animal Health Co., Ltd	Principal Place of Business/Country of Registration Taiwan	Proportion of Non-Controlling Interests in Ownership Interests and Voting Rights	Proportion of Non-Controlling Interests in Ownership Interests and Voting Rights	Proportion of Non-Controlling Interests in Ownership Interests and Voting Rights
		9.30.2024 44.88%	12.31.2023	9.30.2023
			45.03%	45.29%

The summary financial information of the above subsidiaries is stated as follows, prepared in accordance with IFRS endorsed by the FSC and reflecting adjustments made by the Group to the fair value and differences in accounting policies on the acquisition date, with the amount before elimination of the transactions between the Group, is as follows:

Current assets Non-current assets Current liabilities Non-current liabilities Net assets Net assets attributable to non-controlling interests	9.30.2024 $ 716,165 1,088,974 (291,163) (114,082) $ 1,399,894 $ 491,265	12.31.2023 677,904 1,102,059 (310,324) (103,099) 1,366,540 478,223	9.30.2023
			665,242 1,111,615 (329,102) (103,148)
			1,344,607
			471,216

Operating revenue Net profit for the period Other comprehensive income for the period Total comprehensive income for the period Net profit for the period attributable to non- controlling interests Total comprehensive income attributable to non- controlling interests	July to September, 2024 $ 360,777 $ 42,350 - $ 42,350 $ 18,881 $ 18,881	July to September, 2023 324,436 28,106 - 28,106 12,601 12,601	January to September, 2024	January to September, 2023
			968,583	914,853
			101,472 -	70,201 -
			101,472	70,201
			45,165	30,905
			45,165	30,905

Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash and cash equivalents	January to September, 2024 $ 181,116 (22,746) (114,547) $ 43,823	January to September, 2023
		194,176 (9,936) (185,277)
		(1,037)

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

The Group purchased 84 thousand shares, 17 thousand shares and 24 thousand shares of Vetnostrum Animal Health in January, February and May 2024, respectively, for a total purchase price of NT$4,781 thousand. Additionally, Vetnostrum Animal Health issued 3 thousand and 47 thousand new shares in March and August 2024, respectively to employees exercising stock options, at an issuance price of NT$825 thousand. The aforementioned transactions resulted in a decrease in capital surplus of NT$2,751 thousand, and the ownership percentage increased from 54.97% to 55.12%.

2) Yung Zip

Subsidiary Name Yung Zip	Principal Place of Business/Country of Registration Taiwan	Proportion of Non-Controlling Interests in Ownership Interests and Voting Rights	Proportion of Non-Controlling Interests in Ownership Interests and Voting Rights	Proportion of Non-Controlling Interests in Ownership Interests and Voting Rights
		9.30.2024 79.19%	12.31.2023 (Note)	9.30.2023
				(Note)

Note: On May 30, 2024, Yung Zip held a by-election for one director position. After the by-election, the Group obtained more than half of the director seats, giving it control over Yung Zip, which was included in the consolidated entity from the date of obtaining control.

Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Net assets attributable to non-controlling interests
Operating revenue
Net profit for the period
Other comprehensive income (loss) for the period
Total comprehensive income for the period
Net profit for the period attributable to non-controlling interests
Total comprehensive income attributable to non-controlling interests
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net decrease in cash and cash equivalents

9.30.2024
$ 411,971
1,252,781
(117,915)
(106,593)
$
1,440,244
$
1,163,309
June to
September, 2024
$ 197,234
$ 21,788
(9,150)
$ 12,638
$ 17,701
$ 10,455
June to
September, 2024
$ 28,081
(11,871)
(50,833)
$
(34,623)

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(9) Business Combinations - Acquisition of Subsidiary, Yung Zip
1) Transfer consideration for acquisition of subsidiaries

The Group acquired a cumulative 20.81% common stock equity in Yung Zip in May 2024. On May 30, 2024, Yung Zip held a by-election for one director position. After the by-election, the Group obtained more than half of the director seats, giving it control over this company, which was included in the consolidated entity from the date of obtaining control and generate re-measurement benefits of NT$113,185 thousand.

2) Details of the fair values of net identifiable assets acquired and liabilities assumed were as below:

Details of the fair values of identifiable assets acquired and liabilities assumed of Yung Zip on May 30, 2024 (the date control was obtained) were as below:

Transfer consideration Add: fair value of the original interest in the acquiree Non-controlling interests (measured as the ratio of identifiable net assets to non- controlling interests) Less: fair value of identifiable net assets: Cash and cash equivalents Notes receivable and receivable (including related parties) Inventories Other current assets Financial assets at fair value through other comprehensive income - non-current Property, plant and equipment Right-of-use assets Intangible assets Other non-current assets Accounts payable Other current liabilities long-term borrowings Other non-current liabilities Goodwill	$ 132,393 152,869 148,122 23,666 142,512 1,108,443 1,538 1,491 26,919 (48,466) (91,390) (129,136) (21,110)	$ - 309,487 1,168,887 1,447,851 $ 30,523

The fair value measurement of the assets and liabilities acquired by the Group mentioned above is provisional, and the amount is subject to final assessment.

The Group will continue to review the above matters during the measurement period. If new information related to facts and circumstances that existed on the acquisition date is obtained within one year from the acquisition date, which can identify adjustments to the aforementioned provisional amounts or any additional provisions for liabilities that existed on the acquisition date, the accounting treatment of the acquisition will be modified.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

3) Intangible assets
Goodwill primarily arises from its profitability, the synergy effect is the combination with Yung Zip, and the anticipated development of the future active pharmaceutical ingredients market, with an expected effect of no income tax effect.
4) Pro forma information on operating results
As of May 30, 2024, the operating results of Yung Zip was consolidated into the Group's consolidated statements of comprehensive income, contributing a net operating revenue of NT197,234 thousand and a net profit after tax of NT$21,788 thousand. If it is assumed that this acquisition occurred on January 1, 2024, the pro forma net operating revenue and net profit after tax for the Group from January 1 to September 30, 2024, would increase by NT$481,423 thousand and NT$74,374 thousand, respectively.

(10) Property, Plant and Equipment

The changes in costs, depreciation and impairment loss of the Group’s property, plant and equipment were as follows:

Land	Buildings and Structures	Machinery and Equipment	Transportation Equipment	Office Equipment	Other Equipment	Construction in Process	Total
$ 2,175,269 928,452 - - - 3,481	3,340,695 499,841 19,170 (3,343) 16,146 12,572	3,821,343 531,822 36,910 (13,010) 17,321 10,738	43,651 1,245 11,526 (9,134) - 123	178,375 8,970 1,268 (167) 5,791 1,114	717,456 84,998 18,234 (745) 2,657 93	71,901 7,684 56,683 - (39,528) -	10,348,690 2,063,012 143,791 (26,399) 2,387 28,121
$ 3,107,202	3,885,081	4,405,124	47,411	195,351	822,693	96,740	12,559,602
$ 2,176,957 - - - 3,037	3,294,449 10,462 (333) 10,877 12,702	3,777,621 23,558 (4,108) 35,686 14,423	43,730 801 (819) - 61	176,776 4,173 (2,746) 190 1,810	709,903 5,460 (3,419) 872 157	100,600 8,748 - (22,376) -	10,280,036 53,202 (11,425) 25,249 32,190
$ 2,179,994	3,328,157	3,847,180	43,773	180,203	712,973	86,972	10,379,252
$ - - - - - -	2,592,859 403,018 75,607 (1,457) - 9,387	3,349,286 475,439 96,146 (13,010) (379) 9,753	35,899 1,245 2,648 (3,339) - 104	164,860 6,931 3,860 (167) - 1,057	668,066 67,936 21,224 (745) 379 65	- - - - - -	6,810,970 954,569 199,485 (18,718) - 20,366
$ -	3,079,414	3,917,235	36,557	176,541	756,925	-	7,966,672
$ - - - - -	2,500,767 72,088 (333) (63) 10,334	3,243,639 98,348 (4,108) (563) 12,936	33,172 2,518 (599) - 54	163,321 3,219 (2,746) - 1,712	641,815 22,678 (3,419) 563 106	- - - - -	6,582,714 198,851 (11,205) (63) 25,142
$ -	2,582,793	3,350,252	35,145	165,506	661,743	-	6,795,439
$ 3,107,202	805,667	487,889	10,854	18,810	65,768	96,740	4,592,930
$ 2,175,269	747,836	472,057	7,752	13,515	49,390	71,901	3,537,720
$ 2,179,994	745,364	496,928	8,628	14,697	51,230	86,972	3,583,813

Note 1: An amount of NT$2,746 thousand was transfer in from other non-current assets, and NT$359 thousand as expenses. Note 2: Transfer in from prepaid equipment payments.

Details of borrowings and financing facilities guaranteed as of September 30, 2024, December 31, 2023 and September 30, 2023 are provided in Note 8.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(11) Right-of-Use Assets

The changes in the costs, depreciation, and impairment loss of land, buildings and structures, transportation equipment and machinery equipment leased by the Group were as follows:

Cost of Right-of-Use Assets: Balance on January 1, 2024 Acquired by combinations Additions Decrease in the period Effect of changes in exchange rate Balance on September 30, 2024 Balance on January 1, 2023 Additions Effect of changes in exchange rate Balance on September 30, 2023 Depreciation and impairment losses of right-of-use assets: Balance on January 1, 2024 Acquired by combinations Depreciation Decrease in the period Effect of changes in exchange rate Balance on September 30, 2024 Balance on January 1, 2023 Depreciation Effect of changes in exchange rate Balance on September 30, 2023 Carrying amount: Balance on September 30, 2024 Balance on January 1, 2024 Balance on September 30, 2023	Land, Buildings and Structures $ 46,204 7,908 10,501 (7,333) 754 $ 58,034 $ 46,255 - 1,538 $ 47,793 $ 24,963 6,370 5,256 (5,763) 462 $ 31,288 $ 18,659 4,864 618 $ 24,141 $ 26,746 $ 21,241 $ 23,652	Transportation Equipment 32,666 2,693 28,535 (20,257) - 43,637 29,709 854 - 30,563 25,444 2,693 7,157 (16,463) - 18,831 17,239 6,176 - 23,415 24,806 7,222 7,148	Machinery and Equipment	Total
			352 - - - -	79,222 10,601 39,036 (27,590) 754
			352	102,023
			4,375 - (280)	80,339 854 1,258
			4,095	82,451
			140 - 53 - -	50,547 9,063 12,466 (22,226) 462
			193	50,312
			3,935 53 (270)	39,833 11,093 348
			3,718	51,274
			159	51,711
			212	28,675
			377	31,177

(12) Investment Properties

Investment Properties
Carrying amount: Balance on September 30, 2024 Balance on January 1, 2024 Balance on September 30, 2023	Land, Buildings and Structures
	$ 30,583
	$ 30,782
	$ 31,682

There were no significant additions, disposals, impairments, or reversals of investment properties for the Group during the periods from January 1 to September 30, 2024 and 2023. For other related information, please refer to Note 6(12) of the 2023 consolidated financial statements.

The fair value of the Group's investment properties does not significantly differ from the information disclosed in Note 6(12) of the 2023 consolidated financial statements.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(13) Intangible assets

Details of the cost, amortization, and impairment losses changes for intangible assets of the Group are as follows:

Cost: Balance on January 1, 2024 Acquired by combinations Acquired separately Effect of changes in exchange rate Balance on September 30, 2024 Balance on January 1, 2023 Acquired separately Transfer from other non- current assets Effect of changes in exchange rate Balance on September 30, 2023 Amortization and impairment losses: Balance on January 1, 2024 Acquired by combinations Amortization Balance on September 30, 2024 Balance on January 1, 2023 Amortization Effect of exchange rate changes Balance on September 30, 2023 Carrying amount: Balance on September 30, 2024 Balance on January 1, 2024 Balance on September 30, 2023	Computer Software $ 132,767 120 98 - $ 132,985 $ 132,616 1,170 290 (76) $ 134,000 $ 131,678 96 598 $ 132,372 $ 119,795 10,915 (137) $ 130,573 $ 613 $ 1,089 $ 3,427	Trademark 42,377 - 502 - 42,879 41,053 865 - - 41,918 35,087 - 1,076 36,163 33,643 1,073 - 34,716 6,716 7,290 7,202	Goodwill - 30,523 - - 30,523 - - - - - - - - - - - - - 30,523 - -	Others 33,586 4,000 - 1 37,587 33,594 - - (71) 33,523 33,418 2,533 133 36,084 33,085 333 - 33,418 1,503 168 105	Total
					208,730 34,643 600 1
					243,974
					207,263 2,035 290 (147)
					209,441
					200,183 2,629 1,807
					204,619
					186,523 12,321 (137)
					198,707
					39,355
					8,547
					10,734

As of September 30, 2024, December 31, 2023 and September 30, 2023, the Group's intangible assets were not pledged as collateral.

The amortization expenses for intangible assets from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023, are detailed in the income statement as follows:

Operating Costs Operating expenses	July to September, 2024	July to September, 2023	January to September, 2024	January to September, 2023
	$ 8	-	27	586
	$ 588	3,313	1,780	11,735

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(14) Short-Term Borrowings

The details, terms, and conditions of the Group's short-term borrowings are as below:

Secured bank loans Unsecured bank loans Total Unutilized amount Interest Rate Range (%)	9.30.2024 $ 335,562 535,558 $ 871,120 $ 2,383,507 0.75~5.86	12.31.2023 427,411 550,000 977,411 2,325,793 0.47~6.56	9.30.2023
			440,867 670,000
			1,110,867
			2,179,601
			0.49~6.62

Please refer to Note 8 for the Group’s pledged assets as collaterals for bank borrowings.

(15) Long-Term Borrowings

The details, terms, and conditions of the Group's long-term borrowings are as below:

	9.30.2024
Interest Rate Range (%) 1.10~2.22 1.18~1.82	Year of Maturity 2025~2030 2026	Amount
		$ 113,507 396,600
		510,107 (96,893)
		$ 413,214
		$ 1,022,793

Secured bank loans Unsecured bank loans Subtotal Less: due within one year Unutilized amount Secured bank loans Unsecured bank loans Subtotal Less: due within one year Unutilized amount	Interest Rate Range (%) 0.85~1.10 1.05~1.76 Interest Rate Range (%) 1.10 1.05~1.76	12.31.2023
		Year of Maturity 2025 2025~2026 9.30.2023	Amount
			$ 1,947 241,600
			243,547 (1,551)
			$ 241,996
			$ 1,135,613

		Year of Maturity 2025 2025~2026	Amount
			$ 2,718 241,600
			244,318 (1,938)
			$ 242,380
			$ 1,456,361

Please refer to Note 8 for the Group’s pledged assets as collaterals for bank borrowings.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(16) Lease Liabilities

The carrying amounts of the Group’s lease liabilities are as follows:

Current Non-current Total	9.30.2024 $ 16,298 24,356 $ 40,654	12.31.2023 8,545 8,408 16,953	9.30.2023
			9,714 9,033
			18,747

Please refer to Note 6(25) Financial instruments for maturity analysis.

The amounts of leases recognized in profit or loss are as follows:

Interest expense of lease liabilities Expenses for short-term leases Expenses related to low-value lease assets	July to September, 2024	July to September, 2023 118 251 343	January to September, 2024 332 1,721 15,765	January to September, 2023
	$ 158			419
	$ 470			1,686
	$ 4,281			5,789

The amounts of leases recognized in the cash flow statement are as follows:

Total cash outflow for leases	January to September, 2024 $ 29,653	January to September, 2023
		18,484

1) Lease of Land, Buildings, and Construction

Prior to commencement of the lease, a subsidiary in the mainland region leased land for the use of plants from the People's Republic of China under prepaid rent with terms of 41 years, the right-of-use assets are transferred upon obtaining the land certificate with fixed amortization of installments during the lease period.

The Group also leases a number of land and buildings for use as plants and offices. The lease terms range from 2 to 10 years. At the end of the lease term, the Group has no preferential right to acquire the leased building.

2) Other Lease

The Group leases a number of machines and transportation equipment for business use, and their lease terms range from 2 to 4 years. At the end of the lease term, the lease agreement does not entitle the Group to renew the lease agreements or acquire the assets.

The Group elects to apply the recognition exemptions to leases of various office equipment and other equipment that qualify as low-value asset leases, and thus did not recognize right-of-use assets and lease liabilities for these leases.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(17) Employee Benefits

1) Defined benefit plans

As there were no significant market fluctuations, curtailments, settlements, or other significant one-off events after the end of the previous financial year, the Group used the pension cost rates determined by actuarial valuations as of December 31, 2023, and 2022, to measure and disclose pension costs for the interim period.

The pension expenses recognized by the Group under the defined benefit plans from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023 were NT$369 thousand, NT$508 thousand, NT$932 thousand and NT$1,369 thousand, respectively.

The Group's appointed managers contribute 1% of their total salary monthly to retirement pension reserves. The pension costs recognized by the Group under the above pension plan from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023 were NT$1,589 thousand, NT$1,552 thousand, NT$4,792 thousand and NT$4,657 thousand, respectively.

2) Defined contribution plans

The pension system applicable to the Group under the “Labor Pension Act” is a defined contribution plan under government administration, to which the Group contributes 6% of employees' monthly salary and wages to their personal accounts at the Bureau of Labor Insurance. The pension costs recognized by the Group under the above pension plan from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023 were NT$13,889 thousand, NT$12,394 thousand, NT$39,103 thousand and NT$36,612 thousand, respectively.

(18) Income Tax

Details of the Group’s income tax expenses for the periods from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023 are as follows:

July to September, 2024	July to September, 2023	January to September, 2024	January to September, 2023
$ 94,586 -	56,011 -	254,320 16,711	178,304 (202)
94,586	56,011	271,031	178,102
21,358	23,680	67,611	38,345
$ 115,944	79,691	338,642	216,447

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

Details of the income tax expenses (benefits) recognized in other comprehensive income by the Group from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023 are as follows:

Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations	July to September, 2024 $ 23,336	July to September, 2023 8,888	January to September, 2024 28,971	January to September, 2023
				(6,339)

The Corporation income tax return has been approved by the Tax authorities up to the fiscal year 2022.

(19) Capital and Other Equities

Except as described below, there were no significant changes in the Group’s capital and other equity accounts during the periods from January 1 to September 30, 2024 and 2023. Please refer to Note 6(19) of the 2023 consolidated financial statements for relevant information.

1) Retained earnings

The Corporation passed the 2023 and 2022 profit distribution proposal by the board of directors on March 27, 2024, and March 29, 2023, respectively. According to the Corporation's articles of association, the cash dividend is authorized to the board of directors to make a special resolution, while the remaining profit distributions were resolved by the shareholders' meeting on May 29, 2024 and May 25, 2023. The dividends distributed to owners are as follows:

dividends distributed to owners are as follows:
Dividends distributed to owners of ordinary shares: Cash Distribution ratio (NT$)	2023 $ 612,773 $ 2.30	2022
		612,773
		2.30

Information related to earning distribution resolved by the Corporation's Board of Directors and shareholders’ meeting is available on the Market Observation Post System website of the Taiwan Stock Exchange.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

2) Treasury shares

Yung Shin Pharmaceutical's subsidiary, Angel Associates (Taiwan), Inc. (hereinafter referred to as Angel Associates), acquired 55 thousand shares of Yung Shin Pharmaceutical before the amendment to the Company Act on November 12, 2001. The purpose of holding shares is solely for investing.

On January 3, 2011, Yung Shin Pharmaceutical was established by the Corporation through share swap and Yung Shin Pharmaceutical became a wholly-owned subsidiary of the Corporation. According to Order Tai-Cai-Zheng-3-Zi No. 0920124301, the shares of Yung Shin Pharmaceutical held by Angel Associates (Taiwan), Inc. were exchanged into the shares of the Corporation through a share swap.

Angel Associates acquired new shares issued from the Company's capitalization of retained earnings on September 5, 2015. As of September 30, 2024, December 31, 2023, and September 30, 2023, Angel Associates held 58 thousand shares of the Corporation.

The book value of the Corporation's shares held by Angel Associates is NT$1,958 thousand and the market prices as of September 30, 2024, December 31, 2023, and September 30, 2023, were NT$3,565 thousand, NT$2,700 thousand, and NT$2,555 thousand, respectively.

The subsidiaries holding treasury shares are bestowed shareholders' rights, except the rights to participate in any share issuance for cash and to vote.

(20) Share-Based Payments

Except as described below, there were no significant changes in the Group’s share-based payment during the periods from January 1 to September 30, 2024 and 2023. For related information, please refer to Note 6(20) of the 2023 consolidated financial statements.

Detailed information on the employee stock option plan of the subsidiary Vetnostrum Animal Health is provided below:

January to September, 2024 Weighted Average Exercise Price (In Currency Units) Quantity of Stock Option $ 16.50 101 16.50 (50) - - 16.50 51 16.50 51	January to September, 2023	January to September, 2023
Weighted Average Exercise Price (In Currency Units) $ 16.50 16.50 - 16.50 16.50	Weighted Average Exercise Price (In Currency Units) 16.50 16.50 - 16.50 16.50	Quantity of Stock Option
		193 (77) (15)
		101
		101

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

From January 1, 2024 to September 30, 2024, the employees of Vetnostrum Animal Health Co., Ltd. have executed 50 thousand shares at subscription price of NT$16.5 per share and collected proceeds of NT$825 thousand. On March 7, 2024 and August 2, 2024, the board of directors resolved March 7, 2024 and August 2, 2024 as the record date for capital increase, respectively. As of April 1, 2024 and August 28, 2024, the relevant legal registration procedures have been completed and the number of all issued shares have been received.

During January 1, 2023 to August 8, 2023, the employees of Vetnostrum Animal Health Co., Ltd. have executed 77 thousand shares at a subscription price of NT$16.5 per share and collected proceeds of NT$1,271 thousand. On August 8, 2023, the board of directors resolved August 8, 2023 as the record date for capital increase, while the relevant statutory change registration procedures were completed on September 8, 2023.

(21) Earnings Per Share

The Corporation calculates basic earnings per share and diluted earnings per share as follows:

1) Basic earnings per share

Net profit attributable to ordinary shareholders of the Corporation Weighted average ordinary shares outstanding Basic earnings per share (NT$)	July to September, 2024 $ 218,468 266,365 $ 0.82	July to September, 2023	January to September, 2024 820,109 266,365 3.08	January to September, 2023
		241,931		618,133
		266,365		266,365
		0.91		2.32

2) Diluted earnings per share

Diluted earnings per share
Net profit attributable to ordinary shareholders of the Corporation Weighted average ordinary shares outstanding Effect of potentially dilutive ordinary shares Impact of employee stock compensation Weighted average ordinary shares outstanding (diluted) Diluted earnings per share (NT$)	July to September, 2024 $ 218,468 266,365 47 266,412 $ 0.82	July to September, 2023 241,931 266,365 48 266,413 0.91	January to September, 2024 820,109 266,365 65 266,430 3.08	January to September, 2023
				618,133
				266,365 68
				266,433
				2.32

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(22) Revenue from Contracts with Customers

1) Breakdown of revenue

Major regional markets: Taiwan U.S.A. China Japan Main product/service lines: Human drugs Health food Animal drugs Others	July to September, 2024 $ 1,656,318 168,601 18,146 260,708 $ 2,103,773 $ 1,273,142 247,366 353,752 229,513 $ 2,103,773	July to September, 2023 1,397,353 114,349 21,870 186,845 1,720,417 1,069,655 237,667 209,211 203,884 1,720,417	January to September, 2024 4,565,523 593,216 51,252 666,237 5,876,228 3,860,838 623,391 948,038 443,961 5,876,228	January to September, 2023
				4,119,581 374,042 65,366 524,583
				5,083,572
				3,281,819 603,980 899,834 297,939
				5,083,572

2) Contract balance

Notes receivable Accounts receivable Accounts receivable from related parties Overdue receivable (classified as other non-current assets) Less: Loss allowance - notes receivable Loss allowance - accounts receivable Loss allowance - overdue receivable (classified as other non-current assets) Total Contract liabilities - current Customer loyalty programs Sales revenue received in advance Total Refund Liabilities Current Non-current Total Contract liabilities - non-current Customer loyalty programs Sales revenue received in advance Total	9.30.2024 $ 249,821 1,348,539 56,617 - (231) (4,873) - $ 1,649,873 $ - 2,777 $ 2,777 $ 23,332 75,557 $ 98,889 $ 8,549 350,933 $ 359,482	12.31.2023 317,520 1,321,397 51,004 70 (630) (6,035) (70) 1,683,256 - 239 239 31,567 75,557 107,124 8,549 350,933 359,482	9.30.2023
			306,175 1,222,293 46,650 - (619) (6,360) -
			1,568,139
			8,549 177
			8,726
			23,679 142,772
			166,451
			- 350,933
			350,933

Please refer to Note 6(5) for notes receivable, accounts receivable and related impairment.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(23) Employee Compensations and Directors’ Remuneration

In accordance with the Corporation's Articles of Incorporation, the Corporation shall accrued employees’ compensation and directors’ remuneration at the rate that are not lower than 0.3 ％ and not higher than 2 ％ at profit before tax, respectively. However, if the Corporation has accumulated losses, the amount of the indemnification should be reserved in advance.

Such employees’ compensation may be distributed in the form of stock or cash, and its payable to the employees of affiliated companies who meet the criteria established by the Board of Directors. The aforementioned remuneration of directors shall be paid in cash only.

The estimated amounts of employee compensation from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023 were NT$770 thousand, NT$855 thousand, NT$2,884 thousand and NT$2,110 thousand, respectively. The estimated amounts of directors' remuneration were NT$5,138 thousand, NT$4,348 thousand, NT$19,229 thousand and NT$12,714 thousand, respectively. These estimates were based on the pre-tax net profit of the respective periods, before deducting employee and directors' compensation, multiplied by the distribution percentages stipulated in the Corporation's Articles of Incorporation. The amounts were reported as operating expenses for the respective periods. If there is a difference between the actual distribution amount in the following year and the estimated amount, it will be treated as a change in accounting estimate and the difference will be recognized in the profit or loss of the following year.

The estimated amounts for employee compensation for the years 2023 and 2022 were NT$2,695 thousand and NT$2,708 thousand, respectively. The estimated amounts for director compensation were NT$17,969 thousand and NT$18,053 thousand for the years 2023 and 2022, respectively. These estimations are based on the Group's pre-tax net profit deducted by the amounts of employee and director compensation multiplied by the distribution rates prescribed in the Company's Articles of Association, and are reported as operating expenses for the years 2023 and 2022. Related information can be found on the Market Observation Post System. The amounts of employee and director compensation distributed in accordance with the aforementioned board resolutions do not differ from the estimated amounts in the Company's financial reports for the years 2023 and 2022.

(24) Non-Operating Income and Expenses

1) Interest income

Interest income
Interests on bank deposits	July to September, 2024 $ 11,096	July to September, 2023	January to September, 2024 39,557	January to September, 2023
		13,627		37,748

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

2) Other income

Other income
Rental income Royalty income Dividend income Other income	July to September, 2024 $ 316 308 4,936 6,124 $ 11,684	July to September, 2023	January to September, 2024 3,090 1,203 4,936 16,844 26,073	January to September, 2023
		1,392 - 116 64,885		2,377 - 116 73,726
		66,393		76,219

3) Other gains and losses

Gain (loss) on disposal of property, plant and equipment Gain on re-measurement of investment Gains on lease modifications Foreign exchange gain (loss), net Depreciation of investment properties Others	July to September, 2024 $ (1,886) - 17 (18,937) (293) (1,220) $ (22,319)	July to September, 2023	January to September, 2024 (884) 113,185 17 35,275 (886) (815) 145,892	January to September, 2023
		(1) - - 46,902 (309) 406		218 - - 53,318 (1,065) (353)
		46,998		52,118

4) Finance costs

Finance costs
Interest on bank loans Lease liabilities interests	July to September, 2024 $ 8,096 158 $ 8,254	July to September, 2023 8,805 118 8,923	January to September, 2024 22,074 332 22,406	January to September, 2023
				25,847 419
				26,266

(25) Financial Instruments
1) Credit risk
- a. Exposure to credit risk

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

b. Concentration of credit risk

The accounts receivable of the Group cover a large number of customers and spread across different industries and geographical regions. The Group continuously evaluates the business and financial status of the customers and monitors the collection of accounts receivable.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

2) Liquidity risk

The table below shows the contractual maturity dates for financial liabilities, including the effect of estimated interests but excluding net amount agreements.

Carrying Amount	Contractual Cash Flow	Within 1 Year	1-2 Years	2-5 Years	Above 5 Years
$ 871,120 8,100 636,356 786,327 510,107 40,654 247	877,501 8,100 636,356 786,327 526,635 42,689 247	877,501 8,100 636,356 786,327 103,218 17,650 -	- - - - 369,494 13,296 -	- - - - 53,923 11,743 -	- - - - - - 247
$ 2,852,911	2,877,855	2,429,152	382,790	65,666	247
$ 977,411 1,514 557,245 709,102 243,547 16,953 270	987,148 1,514 557,245 709,102 249,535 20,344 270	987,148 1,514 557,245 709,102 4,869 10,340 -	- - - - 112,203 9,295 -	- - - - 132,463 709 -	- - - - - - 270
$ 2,506,042	2,525,158	2,270,218	121,498	133,172	270
$ 1,110,867 5,243 579,247 642,080 244,318 18,747 280	1,132,200 5,243 579,247 642,080 251,328 19,994 280	1,132,200 5,243 579,247 642,080 5,285 10,128 -	- - - - 113,232 5,827 -	- - - - 132,811 3,823 -	- - - - - 216 280
$ 2,600,782	2,630,372	2,374,183	119,059	136,634	496

The Group does not expect the timing of cash flows for the maturity analysis to be significantly earlier or the actual amounts to be significantly different.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

3) Currency risk

a. Exchange rate risk exposure

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

	9.30.2024			12.31.2023	12.31.2023			9.30.2023
Financial Assets	Foreign Currency	Exchange Rate	TWD	Foreign Currency	Exchange Rate	TWD	Foreign Currency	Exchange Rate	TWD
	$ 42,756 27,321 333,721 5,551 - 6,006 295	31.65 4.52 0.22 31.65 - 0.22 35.38	1,353,229 123,401 74,186 175,698 - 1,335 10,434	30,298 26,098 166,177 2,811 - 4,822 34	30.71 4.34 0.22 30.71 - 0.22 33.98	930,285 113,142 36,094 86,324 - 1,046 1,144	36,324 19,350 171,801 2,963 109 1,600 -	32.27 4.49 0.22 32.27 4.49 0.22 -	1,172,161 86,971 37,143 95,629 491 346 -
Monetary items
USD RMB JPY Financial Liabilities
Monetary items
USD RMB JPY EUR

b. Sensitivity analysis of exchange rate

The Group’s exchange rate risk primarily from cash and cash equivalents, accounts receivable (including related parties), other accounts receivable, accounts payables (including related parties), and other accounts payables in foreign currencies, and foreign exchange gains and losses arise during translation. As of September 30, 2024 and 2023, assuming the New Taiwan Dollar appreciates or depreciates by 1% against the US Dollar, Japanese Yen, Chinese Yuan, and Euro, while all other factors remain constant, the pre-tax net profit for the periods from January 1 to September 30, 2024 and 2023 would increase or decrease by NT$13,633 thousand and NT$11,998 thousand, respectively. The same basis was used for analyses for both periods.

c. Foreign exchange gains and losses on monetary items

Due to the diverse functional currencies within the Group, information on foreign exchange gains or losses on monetary items is disclosed on an aggregated basis. For the period of July 1 to September 30, 2024 and 2023, and January 1 to September 30, 2024 and 2023, the foreign exchange (losses) gains (including realized and unrealized) were NT$(18,937) thousand, NT$46,902 thousand, NT$35,275 thousand and NT$53,318 thousand, respectively.

4) Interest rate analysis

The following sensitivity analysis is determined by the interest rate risk exposure of non-derivative instruments on the reporting date. For financial instruments with floating interest rates, the analysis is based on the assumption that the outstanding liabilities on the reporting date have been outstanding all year round. The rate of change used internally in reporting interest rates to the management from the Group is 0.1% increase or decrease in interest rates, which represents the management's evaluation of the reasonable range of possible changes in interest rates.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

If the interest rate increases or decreases by 0.1 ％ with all other variables held constant, the pre-tax net profit for the periods from January 1 to September 30, 2024 and 2023, would decrease or increase by approximately NT$897 thousand and NT$812 thousand, respectively, primarily due to fluctuations in the Group's variable-rate bank borrowings.

5) Other price risks

If the price of equity securities changes on the reporting date (adopt the same basis of analysis for both periods, with the assumption that other variable factors remain unchanged), the impact on comprehensive income items were as follows:

Securities Price on Reporting Date	January to September, 2024 $ 1,870 $ (1,870)	January to September, 2023
Increase of 1% Decrease of 1%		619
		(619)

6) Fair value information

a. Categories and fair value of financial instruments

The Group's financial assets at fair value through profit or loss through other comprehensive income are measured at fair value on a recurring basis. The carrying amount and fair value of financial assets and liabilities (including information of fair value hierarchy; however, the fair value of financial instruments not at fair value and whose carrying amounts are reasonable approximations of their fair value and lease liabilities is not required to be disclosed) were as follows:

	9.30.2024	9.30.2024	9.30.2024
Carrying Amount		Fair Value
	Level 1	Level 2	Level 3	Total
$ 105,482	-	-	105,482	105,482
$ 8,652 178,383	8,652 -	- -	- 178,383	8,652 178,383
187,035	8,652	-	178,383	187,035
1,673,607 317,058 1,649,873 26,607 166,935	- - - - -	- - - - -	- - - - -	- - - - -
3,834,080	-	-	-	-
$ 4,126,597	8,652	-	283,865	292,517
$ 1,381,227 644,456 786,327 40,654 247	- - - - -	- - - - -	- - - - -	- - - - -
$ 2,852,911	-	-	-	-

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

	12.31.2023	12.31.2023	12.31.2023
Carrying Amount		Fair Value
	Level 1	Level 2	Level 3	Total
$ 105,482	-	-	105,482	105,482
7,196 58,873	7,196 -	- -	- 58,873	7,196 58,873
66,069	7,196	-	58,873	66,069
$ 1,486,926 257,646 1,683,256 26,392 62,970	- - - - -	- - - - -	- - - - -	- - - - -
3,517,190	-	-	-	-
$ 3,688,741	7,196	-	164,355	171,551
$ 1,220,958 558,759 709,102 16,953 270	- - - - -	- - - - -	- - - - -	- - - - -
$ 2,506,042	-	-	-	-

Carrying Amount		Fair Value
	Level 1	Level 2	Level 3	Total
$ 87,482	-	-	87,482	87,482
6,311 55,638	6,311 -	- -	- 55,638	6,311 55,638
61,949	6,311	-	55,638	61,949
$ 1,433,501 266,282 1,568,139 30,841 67,619	- - - - -	- - - - -	- - - - -	- - - - -
3,366,382	-	-	-	-
$ 3,515,813	6,311	-	143,120	149,431
$ 1,355,185 584,490 642,080 18,747 280	- - - - -	- - - - -	- - - - -	- - - - -
$ 2,600,782	-	-	-	-

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

b. Valuation technique of fair value

If there is an active market for the financial instrument, the fair value is based on the quoted market price in the active market. The market prices announced by major exchanges are all the basis for the fair value of listed equity instruments.

If the publicly quoted price can be timely and regularly obtained from the stock exchange, broker, underwriter, industrial union, pricing service institution or competent authority, and the price represents actual and regular transaction at fair market, then the financial instrument is deemed to have the publicly quoted price at the active market. If the above conditions are not met, the market is deemed inactive. Generally speaking, a large difference in buying and selling price, a significant increase in buying and selling price, and few transactions are indexes of a non-active market.

The fair value of financial instruments held by the Group that are traded in an active market are presented by category and attribute as follows:

The fair value of the listed stocks, which are financial assets with standard terms and conditions and traded in an active market, is determined based on market prices respectively.

Except for the above-mentioned financial instruments with active markets, the fair value of other financial instruments is obtained through valuation techniques or with reference to the quoted prices of counterparties. For the fair value obtained through the valuation techniques, the Company refers to the current fair value of other financial instruments with similar conditions and characteristics, the discounted cash flow method, or other valuation techniques, including calculations using models based on the market information available at the consolidated balance sheet date.

The fair value of financial instruments held by the Group that are not traded in an active market are presented by category and attribute as follows:

Non-derivative financial assets without quoted prices: Their fair value is estimated using the discounted cash flow method and the net asset value method.
Non-quoted equity instruments: Their fair value is estimated using the market comparable approach, with the primary assumption based on the price-to-net asset value multiplier derived from the invested entity's net asset value and the market quotations of comparable listed (OTC) companies. This estimate of the equity securities has been adjusted for the effect of lack of market liquidity.

YUNGSHIN GLOBAL HOLDING CORPORATION

Notes to Consolidated Financial Statements (Continued)

c. Detailed statement of changes in Level 3

January 1, 2024 Total gains or losses Recognized in other comprehensive income Acquired by combinations September 30, 2024 January 1, 2023 Total gains or losses Recognized in other comprehensive income Purchase September 30, 2023	Measured at FVTPL $ 105,482 - - $ 105,482 $ 63,482 - 24,000 $ 87,482	Measured at FVTOCI 58,873 (24,002) 143,512 178,383 45,600 10,038 - 55,638	Total
			164,355 (24,002) 143,512
			283,865
			109,082 10,038 24,000
			143,120

d. Quantitative information on fair value measurement of significant unobservable inputs (Level 3).

The Level 3 of fair value measurements mainly includes financial assets measured at FVTOCI and non-derivative financial assets mandatorily at FVTPL.

The Group's equity instrument investment with no active market has multiple significant unobservable inputs. Significant unobservable inputs for investments in equity instruments with no active market are not correlated with each other because they are independent of each other.

Since the correlation between significant unobservable input value and fair value cannot be fully identified in practice, the Group's investment agreements for product development are not included in the disclosure of quantitative information of significant unobservable input values and the sensitivity analysis of fair value for reasonably possible alternative assumptions.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

Quantitative information on significant unobservable inputs is listed as follows:

follows:
Item	Valuation Technique	Significant Unobservable Input	Relationship Between Significant Unobservable Input and the Fair Value
Financial assets at fair value through other comprehensive income - investments in equity instruments with inactive market Financial assets measured at fair value through profit or loss - Private equity fund investments	Market approach (approach comparable to listed companies) Net asset value method	 Multiplier of price-to- book ratio (as of 9.30.2024, 12.31.2023 and 9.30.2023, ranging from 1.22 to 2.15, from 0.82 to 1.75, and from 0.73 to 1.68, respectively)  Lack of marketability discount (35% as of both 9.30.2024, 12.31.2023, and 9.30.2023)  Net asset value	 The higher the multiplier, the higher the fair value  The higher the discount for lack of marketability, the lower the fair value  The higher the net asset value, the higher the fair value

e. For Level 3 fair value measurements, possibly used of alternative assumptions for sensitivity analysis of fair value.

The measurement of fair values of financial instruments by the Group is reasonable, but the use of different valuation models or valuation parameters may result in different valuation results.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

For financial instruments classified as Level 3, if the valuation parameters change, the effect on other comprehensive income in this period is as follows:

September 30, 2024 Financial assets at FVTOCI Investments in equity instruments with inactive market December 31, 2023 Financial assets at FVTOCI Investments in equity instruments with inactive market September 30, 2023 Financial assets at FVTOCI Investments in equity instruments with inactive market	Inputs Multiplier of price to book ratio Lack of marketability discount Multiplier of price to book ratio Lack of marketability discount Multiplier of price to book ratio Lack of marketability discount	Upward or Downward Change 5% 5% 5% 5% 5% 5%	Changes in Fair Value Reflected in Other Comprehensive Income	Changes in Fair Value Reflected in Other Comprehensive Income
			Favorable Change	Unfavorable Change
			$ 8,889 13,736 $ 2,912 4,534 $ 2,788 4,275	(8,889) (13,736) (2,912) (4,534) (2,788) (4,275)

The Group’s favorable and unfavorable changes refer to the fluctuations of fair values, and fair values are calculated with the valuation techniques based on different unobservable inputs. If the fair value of a financial instrument is affected by more than one input value, the statement above reflects the effect of changes in the single input value, without taking the correlation and variability between the input values into account.

There were no transfers in the fair value hierarchy of financial assets for the periods from January 1 to September 30, 2024 and 2023.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(26) Financial Risk Management

There were no significant changes in the Group's financial risk management objectives and policies compared to those disclosed in Note 6(26) of the 2023 annual consolidated financial statements.

(27) Capital Management

The Group's capital management objectives, policies, and procedures are consistent with those disclosed in the 2023 annual consolidated financial statements. Additionally, there were no significant changes in the aggregated quantitative data of the items managed as capital compared to the information disclosed in the 2023 annual consolidated financial statements. For related information, please refer to Note 6(27) of the 2023 annual consolidated financial statements.

(28) Non-Cash Transaction in Investment and Financing Activities
1) The Group's non-cash investing and financing activities for the periods from January 1 to September 30, 2024 and 2023, involved acquiring right of use assets through leasing arrangements. For details, please refer to Note 6(11).
2) The reconciliation of liabilities from financing activities is as follows:

1.1.2024	Cash	Flow		Non-C	ash Changes		9.30.2024
	Additions	Decrease	Additions	Disposal	Acquired by Combinations	Changes in Exchange Rates
$ 243,547 977,411 16,953	265,000 1,513,630 -	(127,567) (1,634,787) (11,835)	- - 39,036	- - (5,381)	129,136 - 1,538	(9) 14,866 343	510,107 871,120 40,654
$ 1,237,911	1,778,630	(1,774,189)	39,036	(5,381)	130,674	15,200	1,421,881

1.1.2023	Cash	Flow		Non-C	ash Changes		9.30.2023
	Additions	Decrease	Additions	Disposal	Changes in Lease	Changes in Exchange Rates
$ 247,011 1,554,511 28,240	110,000 262,440 -	(112,403) (710,516) (10,590)	- - 854	- - -	- - -	(290) 4,432 243	244,318 1,110,867 18,747
$ 1,829,762	372,440	(833,509)	854	-	-	4,385	1,373,932

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

7. Related Parties Transactions

(1) Related Parties and Their Relationship

The related parties with transactions with the Group during the period covered by these consolidated financial statements are as follows:

Related Party Name Relationship with the Group Yung Zip Chemical Ind. Co., Ltd. (Yung Zip) Associate (Note) Y.S.P. Southeast Asia Holding Bhd. (YSP Associate SAH) Y.S.P. Industries (M) Sdn. Bhd. (YSPI) Associate Taiwan Way Chein Industrial Co., Ltd. Associate (Note) LTC Holding Company Limited (LTC Other related party (Substantial related party) Holding) TC Pharmaceuticals (Jiangsu) Co., Ltd. Other related party (Substantial related party) Fang-Yu Lee Other related party (Directors of the Company) Ling-Jin Lee Other related party (Directors of the Company) Fang-Chuan Lee Other related party (Directors of the Company) Yung Shin Amusement Co., Ltd. Other related party (Substantial related party) Yung Shin Social Welfare Foundation (Yung Other related party (Substantial related party) Shin Social Welfare) TienTe Lee Biomedical Foundation Other related party (Substantial related party) (Biomedical Foundation) Yung Shin Elderly Nursing Home Other related party (Substantial related party) Bio-X Lab Co., Ltd. Other related party (Substantial related party) E & A Health Develop Co., Ltd. Other related party (Substantial related party) Pan Pharm Alliance Co., Ltd. Other related party (Substantial related party)

Note: Yung Zip and its subsidiaries became subsidiaries of the Group after May 30, 2024.

(2) Significant Transactions Between Related Parties

1) Operating revenue

Operating revenue
Relationship with the Corporation / Related Party	July to September, 2024 $ 46,856 547 $ 47,403	July to September, 2023 37,595 445 38,040	January to September, 2024 145,160 725 145,885	January to September, 2023 118,260 982 119,242
Associate Other related parties

Except for the transaction with YSPI that has no similar type of transactions to be compared with, the prices of other sales above are the same as the general sale. The collection to related parties has no material difference with those sale of goods to third parties.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

2) Purchase of goods

Relationship with the Corporation / Related Party	July to September, 2024 $ 1,300 1,815 $ 3,115	July to September, 2023 14,260 - 14,260	January to September, 2024 26,144 4,980 31,124	January to September, 2023
Associate Other related parties				38,509 1,449
				39,958

The aforementioned purchasing price of goods from related parties is based on regular commercial terms and conditions. The payment term is the same as regular suppliers.

3) Receivables from related parties

Financial Statement Account	Relationship with the Corporation / Related Party	9.30.2024	12.31.2023	9.30.2023
Accounts receivable Other receivables	Associate YSPI Yung Zip Others Other related parties Associate YSP SAH Others Other related parties	$ 56,293 - - 324	45,160 5,835 4 5	43,658 2,743 - 249
		56,617	51,004	46,650
		940 - 50	- 1,261 4	577 - 28
		990	1,265	605
		$ 57,607	52,269	47,255

As of September 30, 2024, December 31, 2023, and September 30, 2023, no allowance loss was made for the above receivables.

4) Payables to related parties

Financial Statement Account	Relationship with the Corporation / Related Party	9.30.2023
Accounts payable Other payables	Associate Yung Zip Others Other related parties Associate Other related parties	20,901 1,469 -
		22,370
		665 2,382
		3,047
		25,417

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

5) Operating expenses

It refers to the donations and other expenses paid by the Group to related parties, and the details were as follows:

Relationship with the Corporation / Related Party	July to September, 2024	July to September, 2023	January to September, 2024	January to September, 2023
Associate Other related parties Total	$ - 3,731	100 3,633	153 10,771	124 11,129
	$ 3,731	3,733	10,924	11,253

6) Lease

The Group leased land and buildings from Fang-Yu Lee, Ling-Jin Lee, and Yung Shin Amusement in January 2017, September 2018, August 2022, and April 2024 respectively, and the lease agreements ranging from two to ten years. The total value of the contracts amounted to NT$5,980 thousand. The above rent is based on the agreed price referencing the rental market conditions in the adjacent area. The interest expenses recognized for the lease liabilities arising from the above lease agreements for the periods from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023 were NT$14 thousand, NT$4 thousand, NT$34 thousand and NT$15 thousand, respectively. As of September 30, 2024, December 31, 2023 and September 30, 2023, the remaining lease liabilities unpaid amounted to NT$3,505 thousand, NT$1,030 thousand and NT$1,239 thousand, respectively.

7) Rental income

The Group leased out investment properties of land and buildings to associates and substantial related parties. The Group received fixed monthly lease payments according to rental rate for similar assets.

Relationship with the Corporation / Related Party	July to September, 2024	July to September, 2023	January to September, 2024	January to September, 2023
Associate Other related parties Total	$ - 45	184 45	307 136	533 136
	$ 45	229	443	669

(3) Key Management Compensation

Key management compensation includes:

Short-term employee benefits Post-employment benefits	July to September, 2024	July to September, 2023	January to September, 2024	January to September, 2023
	$ 4,824 1	4,583 16	14,875 62	14,130 74
	$ 4,825	4,599	14,937	14,204

In the short-term employee benefits for the period from January 1 to September 30, 2024, it includes providing a car to the Key management personnel with a cost of NT$8,744 thousand. As of September 30, 2024, its book value was NT$7,627 thousand, recognized as property, plant and equipment and right-of-use assets.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

8. Pledged Assets

The carrying amounts of the Group’s pledged assets are as follows:

Name of Asset	Item Pledged as Collateral	9.30.2024	12.31.2023	9.30.2023
Property, plant and equipment: Land Buildings and structures Other non-current assets: Restricted assets	Long-term and short-term borrowings Long-term and short-term borrowings Natural Gas Guarantees and Government Project Subsidies	$ 644,721 74,848 12,000	419,727 48,407 10,500	419,617 49,208 4,000
		$ 731,569	478,634	472,825

9. Significant Contingent Liabilities and Unrecognized Contract Commitments (1) Capital expenditure contracted for at the balance sheet date but unrecognized is as follows:

9.30.2024 12.31.2023 9.30.2023 Property, plant and equipment $ 108,021 89,722 50,181 The Group appointed other biotechnology companies to authorize and transfer technology and research and development. Expenses that have not been recognized from signed contracts are as follows: 9.30.2024 12.31.2023 9.30.2023 Authorization and transfer of technology and research and development $ 52,257 48,444 52,803	9.30.2024	12.31.2023	9.30.2023
	$ 108,021	89,722	50,181
	$ 52,257	48,444	52,803

(2) The Group appointed other biotechnology companies to authorize and transfer technology and research and development. Expenses that have not been recognized from signed contracts are as follows:

Except for aforementioned expenses, royalty to be paid in the future is based on an agreed upon percentage of product sales.

10. Losses due to Major Disasters: None.

11. Significant Subsequent Events: None.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

12. Others

(1) Employee benefits, depreciation, depletion, and amortization expenses by functions are summarized as follows:

By Function By Nature	July to September, 2024	July to September, 2024	July to September, 2024	July to September, 2023	July to September, 2023	July to September, 2023
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefit expenses Salaries Labor and health insurance premiums Pension expenses Other employee benefit expenses Depreciation (Note) Amortization	193,480 20,456 7,576 4,659 58,791 8	281,936 23,083 8,271 7,880 15,269 588	475,416 43,539 15,847 12,539 74,060 596	148,357 18,497 6,731 3,504 56,776 -	250,817 21,888 7,723 4,474 13,247 3,313	399,174 40,385 14,454 7,978 70,023 3,313

By Function By Nature	January to September, 2024	January to September, 2024	January to September, 2024	January to September, 2023	January to September, 2023	January to September, 2023
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee benefit expenses Salaries Labor and health insurance premiums Pension expenses Other employee benefit expenses Depreciation (Note) Amortization	524,987 58,862 20,889 11,168 169,759 27	792,775 61,610 23,938 22,538 42,192 1,780	1,317,762 120,472 44,827 33,706 211,951 1,807	441,028 55,898 19,809 8,755 170,559 586	720,069 60,023 22,829 12,620 39,385 11,735	1,161,097 115,921 42,638 21,375 209,944 12,321

Note: The depreciation expenses generated by investment properties for the periods from July 1 to September 30, 2024 and 2023, and from January 1 to September 30, 2024 and 2023 were NT$293 thousand, NT$309 thousand, NT$886 thousand and NT$1,065 thousand, respectively, recognized under other gains and losses.

(2) Seasonality of Operations:

The Group’s operations are not affected by seasonal or cyclical factors.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

13. Separately Disclosed Items

(1) Information on Significant Transactions

In accordance with the Regulations Governing the Preparation of Financial Reports of Securities Issuers for the period from January 1 to September 30, 2024, the Group is required to disclose additional information regarding significant transactions as follows:

1) Financing provided for others: None.
2) Endorsement or guarantee provided to others:

		Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated	Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated	Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated	Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated	Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated	Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated	Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated	Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated	Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated	Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated	Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated	Unite:Expressedin thousands ofNewTaiwandollars unless otherwise stated
No. (Note 1)	Company Name	Endorsee/Guarantee		Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 3)	The Maximum Endorsement Guarantee Balance for the Current Period (Note 5)	Outstanding Endorsement Guarantee at End of period (Note 5)	Actual Amount Used	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements	Aggregate Endorsement/ Guarantee Limit (Note 4)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement~~/~~ Guarantee Given on Behalf of Companies in Mainland China
		Company Name	Relationship (Note 2)
0 0	The Corporation The Corporation	Chemix CTI	2 2	1,473,717 1,473,717	208,962 886,545	208,962 854,550	208,962 126,600	- -	2.84% 11.60%	3,684,292 3,684,292	Y Y	N N	N N

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

The Corporation is “0.”
The subsidiaries are numbered in order starting from “1.”
Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following categories; the number of category in each case belongs to:
Having business relationship.
Companies in which the Corporation directly and indirectly holds more than 50% of the voting shares.
Note 3: The total amount of endorsement and guarantee for a single enterprise by the Corporation shall not exceed 20% of the net value of the most recent financial statement of the Corporation at the time of providing endorsement and guarantee.
Note 4: The total amount of cumulative endorsement and guarantee shall not exceed 50% of the net value of the most recent financial statements of the Corporation.

YUNGSHIN GLOBAL HOLDING CORPORATION

Notes to Consolidated Financial Statements (Continued)

3) Marketable securities held at the end of the period (excluding investments in subsidiaries, associates, and joint ventures):

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	September 30, 2024	September 30, 2024	September 30, 2024	September 30, 2024	Remarks
				Number of Shares/Units	Carrying Amount	Shareholding Ratio	Fair Value
The Corporation Chemix `〞` Yung Shin Pharmaceutical `〞` `〞` `〞` Yung Zip `〞` YZP Oversea Investment Co., Ltd. Angel Associates	Private Equity Fund - Forward BioT Venture Capital Stock - Sawai Pharmaceutical Co., Ltd. Stock - Ana Holding Inc. Stock - Missioncare Co., Ltd. Stock - Missioncare Asset Management Co., Ltd. Stock - Limited Liability Fengyuan Medical Waste Disposal Equipment Used Cooperatives Stock - International Green Handle Co., Ltd. Stock - Missioncare Co., Ltd. Stock - Missioncare Asset Management Co., Ltd. LTC Holding Company Ltd. Stock - YungShin Global Holding Corporation	None None None None None None None None None Other related parties Parent company	Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non-current `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Financial assets at fair value through other comprehensive income - current	- 17,595 1,000 3,161,052 1,338,947 1,000 1,567 1,580,526 669,473 2,321,259 58,059	42,000 7,970 682 41,729 21,528 11 20 20,863 10,109 84,123 1,958	6.72% - % - % 2.17% 2.13% 0.06% 0.07% 1.09% 1.07% 10.19% 0.02%	42,000 7,970 682 41,729 21,528 11 20 20,863 10,109 84,123 1,958	Note

Note: In order to optimize the utilization of working capital held, the carrying amount of this security was transferred to treasury shares.

4) The cumulative amount of acquisition or disposal of the same marketable securities that exceeded NT$300 million or 20% of the paid-in capital: None.
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None.
6) Disposal of real estate at price in excess of NT$300 million or 20% of the paid-in capital: None.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital:

Purchaser/Seller	Counterparty	Relationship	Transaction	Transaction	Transaction	Transaction	Circumstances and Reasons If the Terms and Conditions of Trading are Different from Those in Ordinary Trading	Circumstances and Reasons If the Terms and Conditions of Trading are Different from Those in Ordinary Trading	Notes and Accounts Receivable (Payable)	Notes and Accounts Receivable (Payable)	Remarks
			Purchase or Sale	Amount	Ratio to Total Amount of Purchases (or Sales)	Credit Period	Unit Price	Credit Period	Balance	Ratio to Total Notes and Accounts Receivable (Payable)
Yung Shin Pharmaceutical `〞` Vetnostrum Animal Health Co., Ltd.	Vetnostrum Animal Health Co., Ltd. YSPI Yung Shin Pharmaceutical	Other related parties Associate Other related parties	(Sale) (Sale) Purchase of goods	(124,403) (112,505) 124,403	(3.46)% (3.13)% 26.78%	Note 1 Note 1 Note 1	- - -	- - -	73,715 47,609 (73,715)	7.47% 4.83% (60.61)%	Note 2 Note 2

Note 1: The terms and conditions of the transactions had no apparent difference from other customers. Note 2: All intra-group transactions, are eliminated upon consolidation.

8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
9) Derivatives Trading: None.
10) Intercompany Relationships and Significant Intercompany Transactions:

					Unit: In Thousands of Ne	Unit: In Thousands of Ne	w Taiwan Dollars
No. (Note 1)	Company Name	Counterparty	Relationship (Note 2)		Transaction Details
				Financial Statement Account	Amount (Note 3)	Payment Terms	Ratio to Consolidated Revenue or Total Assets
1 1 1 1 1 2	Yung Shin Pharmaceutical Yung Shin Pharmaceutical Yung Shin Pharmaceutical Yung Shin Pharmaceutical Yung Shin Pharmaceutical YungShin TienTe	Vetnostrum Animal Health Co., Ltd. Vetnostrum Animal Health Co., Ltd. Yung Shin Company Ltd CTI CTI Yung Shin Pharmaceutical	3 3 3 3 3 3	Accounts receivable Sales Sales Accounts receivable Sales Sales	73,715 124,403 15,696 12,606 23,970 18,442	No regular customer available for comparison No regular customer available for comparison No regular customer available for comparison No regular customer available for comparison No regular customer available for comparison No regular customer available for comparison	0.55% 2.12% 0.27% 0.09% 0.41% 0.31%

Note 1: The number is to be filled in the following manner:

The Corporation is “0.”
The subsidiaries are numbered in order starting from “1.”

Note 2: Types of relationships with traders are listed as follows:

Parent company to subsidiary.
Subsidiary to parent company.
Subsidiary to subsidiary.

Note 3: Business transactions between the Corporation and its subsidiaries amounting to NT$10,000 thousand should be disclosed.

Note 4: All intra-group transactions, are eliminated upon consolidation.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(2) Information on Investees Companies:

Information on the Group's equity method investments for the period from January 1 to September 30, 2024 (excluding mainland China investee companies) is as follows:

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of September 30, 2024	As of September 30, 2024	As of September 30, 2024	Net Profit or Loss of the Investee	Investment Gains and Losses Recognized in the Current Period	Remarks
				September 30, 2024	December 31, 2023	Number of Shares	%	Carrying Amount
The Corporation `〞` `〞` `〞` `〞` Yung Shin Pharmaceutical Yung Zip `〞` `〞` YSP INC `〞` `〞`	Yung Shin Pharmaceutical YSP INC Vetnostrum Animal Health Co., Ltd. Chemix Yung Zip Angel Associates CTI YZP Oversea Investment Co., Ltd. Taiwan Way Chein Industrial Co., Ltd. (Taiwan Way Chein) CTI YSP SAH Yung Shin CompanyLtd	Taiwan British Virgin Islands Taiwan Japan Taiwan Taiwan U.S.A. British Virgin Islands Taiwan U.S.A. Malaysia Hong Kong	Manufacturing and sale of medicine and cosmetics Trade, investment, and other related businesses Manufacturing and sale of medicine Sale of medicine Manufacture and sale of active pharmaceutical ingredients Import and export trading Manufacturing and sale of medicine General investments Food Manufacturing Manufacturing and sale of medicine Biopharmaceutical research and technical services Sale of medicine	4,151,196 667,496 739,490 270,248 152,968 3,675 25,326 4,658 139,650 806,183 500,615 102,209	4,151,196 667,496 734,708 270,248 152,968 3,675 - (Note 4) 4,658 139,650 806,183 500,615 102,209	98,166,613 10,000 36,563,975 192 8,817,302 3,675 255,179 159,061 6,650,000 7,502,874 52,365,605 7,720	100.00% 100.00% 55.12% 100.00% 20.81% 73.50% 2.52% 100.00% 70.00% 74.13% 36.92% 96.50%	3,756,431 1,853,657 908,262 416,314 309,280 9,916 14,943 89,855 177,212 337,609 1,137,853 56,200	483,111 (Note 1) 169,069 (Note 2) 100,655 (Note 1) 94,757 (Note 2) 73,221 (Note 1) 2,233 (Note 2) 103,120 (Note 2) 4,663 (Note 2) 12,509 (Note 1) 103,120 (Note 2) 212,273 (Note 2) 2,070 (Note2)	484,591 (Note 1) 166,910 (Note 2) 56,145 (Note 1) 94,746 (Note 2) 13,752 (Note 1) - - - - - - -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Note 4) Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Associate Sub- subsidiary

Note 1: Except for Yung Zip and Taiwan Way Chein, whose financial statements have been reviewed by other certified public accountants, the Group recognizes the remaining investment gains and losses based on the financial statements that were measured by using the equity method of the investee companies for the same period, which have been reviewed by the parent company's certified public accountants in Taiwan.
Note 2: The investment gains and losses recognized by the Group are based on the financial statements that were measured and recorded by using the equity method of the investee companies for the same period, which were prepared internally and have not been reviewed by auditors.
Note 3: Gains or losses on reinvestment of subsidiaries are included in the income of subsidiaries. The transactions between the Corporation and each subsidiary of the Group including sales transaction amount, accounts receivable and payable, carrying amount of long-term equity investment, except for the associates) and investment profit and loss recognized in the current period, have been eliminated in preparing the consolidated financial statements.
Note 4: Yung Zip and its subsidiaries became subsidiaries of the Group after May 30, 2024. Additionally, Yung Zip holds 2.52% of CTI, which is subject to accounting policies related to business combinations.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(3) Information on Investments in Mainland China:

1) Name, principal operation and relevant information of invested companies in the Mainland China:

Investee Company	Main Businesses and Products	Paid-in Capital (Note 4)	Method of Investment (Note 1)	Accumulated Outward Remittance for Investments from Taiwan at the Beginning of the Period (Note 4)	Remitted or Repatriated Amount of Investment for the Period	Remitted or Repatriated Amount of Investment for the Period	Accumulated Outward Remittance for Investments from Taiwan at the End of the Period (Note 4)	Net Profit or Loss of the Investee	Percentage of Ownership in Direct or Indirect Investment	Investment Income (Loss) (Note 2 and 3)	Carrying Amount at the End of the Period (Note 2 and 3)	Accumulated Repatriation of Investment Income as of September 30, 2024
					Outward Remittance	Inflow
YungShin TienTe (Shanghai) Pharmaceutical Trading Co., Ltd.	International trade, trade between companies in the bonded areas, and trade agency in the bonded areas: Warehousing and simple commercial processing in the bondedareas	121,120	(2)	121,120	-	-	121,120	(182)	100.00%	(182)	90,566	-

Note 1: Investment methods are classified into the following three categories, the number of category in each case belongs to:
Directly invest in a company in mainland China.
Investment in mainland companies through a holding company registered in a third region (YSP International Company Limited)
Others
Note 2: The amount of long-term equity investment at the end of the period and the investment income (loss) of the current period have been eliminated when the consolidated financial statements are prepared.
Note 3: The investment gains and losses as well as the book values disclosed by the Group represent the amounts related to the respective items of direct or indirect investments. The investment income recognized by the Group is based on the financial statements prepared internally of the investee companies, which have not been reviewed by certified public accountants and these gains are recognized using the equity method.
Note 4: It is calculated using historical exchange rates.

2) Upper Limit on the Amount of Investment in Mainland China:

Company Name	Accumulated Outward Remittance for Investments from Taiwan to Mainland China at the End of the Period	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by the Investment Commission, M.O.E.A
The Corporation	121,120 (USD4,000 thousand)	927,029 (USD29,290 thousand)	4,599,744 (Note 1)

Note 1: 60% of the net worth.

Note 2: Except for the amount of investment transferred from Taiwan to Mainland China, which is calculated using historical exchange rates, the rest is calculated using the exchange rate at the end of September 30, 2024 (USD:NTD=1:31.650).
3) Material transactions with invested companies in the Mainland China ：

Details of significant transactions between the Group and Mainland China investees during the periods from January 1 to September 30, 2024 are provided in the “Information on Material Transactions” section.

(4) Information of Major Shareholders:

According to the information provided by Taiwan Depository & Clearing Corporation (TDCC), the Corporation has no shareholders holding more than 5% of the shares.

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

14. Segment Information

The Group considers the business from a geographic perspective, and divides reportable operating segments into the areas of business in Taiwan, USA, Mainland China and Japan. The Group derives its revenue primarily from the manufacturing and sale of pharmaceuticals and cosmetics.

Information and adjustments of the Group's operating departments are as follows:

		July to September, 2024	July to September, 2024	July to September, 2024
Taiwan	U.S.A.	Mainland China	Japan	Adjustment and Elimination	Total
$ 1,656,318	168,601	18,146	260,708	-	2,103,773
$ 245,524	31,766	(7,770)	72,815	-	342,335

Taiwan	U.S.A.	Mainland China	Japan	Adjustment and Elimination	Total
$ 1,397,353	114,349	21,870	186,845	-	1,720,417
$ 190,957	(3,117)	(1,058)	21,381	-	208,163

Taiwan	U.S.A.	Mainland China	Japan	Adjustment and Elimination	Total
$ 4,565,523	593,216	51,252	666,237	-	5,876,228
$ 692,876	140,697	(15,349)	152,299	-	970,523

Taiwan	U.S.A.	Mainland China	Japan	Adjustment and Elimination	Total
$ 4,119,581	374,042	65,366	524,583	-	5,083,572
$ 619,230	(19,627)	(15,278)	62,722	-	647,047

The reconciliation of the Group's reportable operating segment profit or loss and the continuing operating segment's pre-tax income or loss is as follows:

Reportable segment profit or loss Non-operating income and expenses Profit or loss before income tax of continuing operations	July to September, 2024	July to September, 2023	January to September, 2024	January to September, 2023
	$ 342,335 27,937	208,163 137,337	970,523 277,892	647,047 224,398
	$ 370,272	345,500	1,248,415	871,445

Information on the measure of assets and liabilities of the Group is not for operational decision used, thus a disclosure is not required.

AI assistant

Y.S.H. — Interim / Quarterly Report 2024

52371_rns_2024-12-19_2812b67f-4ca7-4c11-b701-72985cc69923.pdf

YUNGSHIN GLOBAL HOLDING CORPORATION AND SUBSIDIARIES

Notice to Readers

Table of Contents

Independent Auditors' Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG Taiwan

YUNGSHIN GLOBAL HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

September 30, 2024, December 31, 2023, and September 30, 2023

Unit: In Thousands of New Taiwan Dollars

YUNGSHIN GLOBAL HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

July 1 to September 30, 2024 and 2023, and January 1 to September 30, 2024 and 2023

Unit: In Thousands of New Taiwan Dollars

YUNGSHIN GLOBAL HOLDING CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

January 1 to September 30, 2024 and 2023

Unit: In Thousands of New Taiwan Dollars

Equity Attributed to the Owners of the Corporation

YUNGSHIN GLOBAL HOLDING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

January 1 to September 30, 2024 and 2023

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements

For the Nine Months Ended September 30, 2024 and 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. General Information

2. Approval of Financial Statements

3.

Application of New and Amended Standards and Interpretations

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

Newly Issued or

Amended Standards

Significant Amendments

Effective Date of the Standards Issued by the IASB January 1, 2027

4. Summary of Significant Accounting Policies

2) Subsidiaries excluded from the consolidated financial statements: None.

(3) Employee Benefits

(4) Income Tax

(5) Business Combinations

5. Critical Accounting Judgments and Key Sources of Estimation Uncertainty and Assumptions

6. Descriptions of Material Accounting Items

(3) Financial Assets at Fair Value Through Other Comprehensive Income - Non-Current

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

2) Guarantee

3) Investments accounted for using equity method has not reviewed by auditors

(8) Subsidiaries with Significant Non-Controlling Interests

1) Vetnostrum Animal Health Co., Ltd.

2) Yung Zip

(10) Property, Plant and Equipment

(11) Right-of-Use Assets

(12) Investment Properties

(13) Intangible assets

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(14) Short-Term Borrowings

(15) Long-Term Borrowings

(16) Lease Liabilities

2) Other Lease

1) Defined benefit plans

2) Defined contribution plans

(18) Income Tax

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

1) Retained earnings

2) Treasury shares

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

(21) Earnings Per Share

1) Basic earnings per share

2) Diluted earnings per share

1) Breakdown of revenue

1) Interest income

2) Other income

2) Liquidity risk

3) Currency risk

4) Interest rate analysis

YUNGSHIN GLOBAL HOLDING CORPORATION Notes to Consolidated Financial Statements (Continued)

6) Fair value information

YUNGSHIN GLOBAL HOLDING CORPORATION

Y.S.H. Interim / Quarterly Report 2024