ZIPPY - Interim / Quarterly Report 2023

Stock Code:2420

ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors’ Review Report For the Six Months Ended June 30, 2023 and 2022

Address: 10F., No. 50, Minquan Rd., Xindian Dist., New Taipei City , Taiwan, R.O.C. Telephone: 886-2-2918-8512

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

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Table of contents
Contents 1.Cover Page 2.Table of Contents 3.Independent Auditors’ 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 the Consolidated Financial Statements (1)Overview (2)Financial Statements Authorization Date and Authorization Process (3)New Standards, Amendments and Interpretations not yet Adopted (4)Summary of Significant Accounting Policies (5)Significant Accounting Judgments, Estimation, Assumptions, and Sources of Estimation Uncertainty (6)Explanation to Significant Accounts (7)Related Party Transactions (8)Pledged Assets (9)Significant Commitments and Contingencies (10)Losses Due to Major Disasters (11)Subsequent Events (12)Other (13)Other disclosures (a) Information on significant transactions (b) Information on investment (c) Information on investment in Mainland China (d) Information on major shareholder (14)Segment Information	Page
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Table of contents

Contents
1.Cover Page
2.Table of Contents
3.Independent Auditors’ 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 the Consolidated Financial Statements
(1)Overview
(2)Financial Statements Authorization Date and Authorization Process
(3)New Standards, Amendments and Interpretations not yet Adopted
(4)Summary of Significant Accounting Policies
(5)Significant Accounting Judgments, Estimation, Assumptions, and Sources
of Estimation Uncertainty
(6)Explanation to Significant Accounts
(7)Related Party Transactions
(8)Pledged Assets
(9)Significant Commitments and Contingencies
(10)Losses Due to Major Disasters
(11)Subsequent Events
(12)Other
(13)Other disclosures
(a) Information on significant transactions
(b) Information on investment
(c) Information on investment in Mainland China
(d) Information on major shareholder
(14)Segment Information

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Independent Auditors’ Review Report

To the Board of Directors of Zippy Technology Corp.:

Introduction

We have reviewed the accompanying consolidated balance sheets of Zippy Technology Corp. (“Company”) and its subsidiaries (“Group”) as of June 30, 2023 and 2022, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2023 and 2022, as well as the changes in equity and cash flows for the six months ended June 30, 2023 and 2022, and notes to the consolidated financial statements, including a summary of significant accounting policies. 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 Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of the 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 conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4(b), the consolidated financial statements included the financial statements of certain non-significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $811,936 thousand and $878,805 thousand, constituting 14.38% and 15.14% of the consolidated total assets; and the total liabilities amounting to $86,188 thousand and $101,405 thousand, constituting 3.90% and 4.10% of the consolidated total liabilities as of June 30, 2023 and 2022, respectively; as well as the total comprehensive income (loss) amounting to $(4,325) thousand, $7,282 thousand, $(1,165) thousand and $31,083 thousand, constituting (2.97)%, 3.73%, (0.42)% and 8.59% of the consolidated total comprehensive income (loss) for the three months and six months ended June 30, 2023 and 2022, respectively.

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Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2023 and 2022, and of its consolidated financial performance for the three months and six months ended June 30, 2023 and 2022, as well as its consolidated cash flows for the six months ended June 30, 2023 and 2022 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.

The engagement partners on the reviews resulting in this independent auditors’ review report are Rou-Lan Kuo and Ying-Ru Chen.

KPMG

Taipei, Taiwan (Republic of China) August 10, 2023

Notes to Readers

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

The independent auditors’ audit report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ audit report and consolidated financial statements, the Chinese version shall prevail.

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(ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AS OF MARCH 31, 2023 AND 2022 ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, 2023, December 31, 2022 and June 30, 2022 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

ASSETS Current Assets： 1100 Cash and cash equivalents (Notes (6)(a)) 1110 Current financial assets at fair value through profit or loss (Notes (6)(b)) 1150 Notes receivable, net (Notes (6)(c)) 1170 Accounts receivable, net (Notes (6)(c)) 1200 Other receivables (Notes (6)(d)) 130X Inventories, net (Notes (6)(e)) 1470 Other current assets Non-current Assets： 1600 Property, plant and equipment (Notes (6)(f) and (8)) 1755 Right-of-use assets (Notes (6)(g)) 1760 Investment property, net (Notes (6)(h) and (8)) 1780 Intangible assets (Notes (6)(i)) 1840 Deferred income tax assets (Notes (4) and (6)(o)) 1915 Prepayments for business facilities 1920 Guarantee deposits paid TOTAL ASSETS	2023.06.30	2022.12.31	2022.06.30 LIABILITIES AND EQUITY Amount ％ Current Liabilities： 755,631) 13)2100 Short-term borrowings (Note (6)(j), (6)(x) and (8)) 99,179) 2)2130 Current contract liabilities (Note (6)(r)) 29,928) - 2150 Note payable 438,834) 8)2170 Accounts payable 7,187) - 2200 Other payables (Note (4) and (6)(n)) 963,838) 17)2230 Current tax liabilities (Note (4) and (6)(o)) 31,112) - 2280 Current lease liabilities (Notes (6)(l) and (6)(x)) 2,325,709) 40)2320 Long-term borrowings, current portion (Note (6)(k) , (6)(x) and (8)) 2399 Other current liabilities, others Non-current Liabilities： 1,253,006) 22)2540 Long-term borrowings (Note (6)(k) , (6)(x) and (8)) 12,892) - 2570 Deferred income tax liabilities (Notes (4) and (6)(o)) 2,132,833) 37)2580 Non-current lease liabilities (Notes (6)(l) and (6)(x)) 20,874) - 2640 Net defined benefit liability, non-current (Notes (4) and (6)(n)) 34,074) 1)2645 Guarantee deposits received 24,165) - 500) - Total Liabilities 3,478,344) 60) Equity attributable to owners of parent (Note (6)(p))： 3110 Ordinary share 3200 Capital surplus 3300 Retained earnings 3400 Other equity interest Total equity attributable to owners of parent 36xx Non-controlling interests Total Equity 5,804,053) 100) TOTAL LIABILITIES AND EQUITY	2023.06.30	2022.12.31	2022.06.30
	Amount ％ $ 1,103,884) 19) 54,584) 1) 12,832) - 287,771) 5) 3,938) - 722,653) 13) 36,307) 1) 2,221,969) 39) 1,217,967) 22) 10,256) - 2,121,161) 38) 20,652) - 34,320) 1) 19,620) - 501) - 3,424,477) 61) $ 5,646,446) 100)	Amount ％ 719,386) 13) 92,215) 2) 19,411) - 370,964) 7) 5,276) - 889,267) 16) 31,227) 1) 2,127,746) 39) 1,247,284) 22) 11,679) - 2,127,882) 38) 21,082) - 34,157) 1) 16,667) - 502) - 3,459,253) 61) 5,586,999) 100)		Amount ％ $ 13,521) - 12,310) - 7,332) - 177,420) 3) 715,700) 13) 95,708) 2) 1,840) - 50,000) 1) 11,316) - 1,085,147) 19) 1,083,000 19) - - 746 - 16,640 - 23,902 1) 1,124,288 20) 2,209,435 39) 1,526,487) 27) 135,562) 2) 1,769,603) 31) (26,512) - 3,405,140) 60) 31,871) 1) 3,437,011) 61) $ 5,646,446) 100)	Amount ％ 13,083) - 13,809) - 11,644) - 263,342) 5) 206,456) 4) 167,090) 3) 2,014) - 50,000) 1) 11,729) - 739,167) 13) 1,108,000) 20 - - 1,661) - 17,223) - 23,933) 1) 1,150,817) 21) 1,889,984) 34) 1,526,487) 27) 135,564) 2) 2,024,209) 36) (23,961) - 3,662,299) 65 34,716) 1) 3,697,015) 66 5,586,999) 100)	Amount ％ 23,631) - 16,946) - 24,361) - 389,177) 7) 655,757) 12) 106,771) 2) 2,105) - 50,000) 1) 14,003) - 1,282,751) 22) 1,133,000 20) 365 - 2,621 - 28,450 - 25,848 - 1,190,284 20) 2,473,035 42) 1,526,487) 27) 135,564) 2) 1,671,652) 29) (36,605) (1) 3,297,098) 57) 33,920) 1) 3,331,018) 58) 5,804,053)100)

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

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(ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Three months and six months Ended June 30, 2023 AND 2022 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

			For the three months	For the three months	endedJune	30,		For the six	months	endedJune 30,
			2023	%	2022		%	2023	%	2022	%
4000	Total sales revenue (Notes (6)(r))	$	537,739)	100)	735,747)		100)	1,092,970)	100)	1,368,526)	100)
5110	Total operating costs (Notes (6)(e))		306,206)	57)	431,714)		59)	640,270)	59)	813,715)	59)
5900	Gross profit from operations		231,533)	43)	304,033)		41)	452,700)	41)	554,811)	41)
6000	Operating expenses (Notes (6)(c), (6)(l), (6)(n) and (6)(s)):
6100	Selling expenses		22,564)	4)	22,095)		3)	40,387)	4)	42,682)	3)
6200	Administrative expenses		57,463)	11)	60,790)		8)	112,932)	10)	134,005)	10)
6300	Research and development expenses		19,408)	4)	17,275)		2)	35,363)	3)	37,084)	3)
6450	Expected credit loss (gain)		(650)	-	1,657)		-	(478)	-	(1,264)	-
	Total operating expenses		98,785)	19)	101,817)		13)	188,204)	17)	212,507)	16)
6900	Net operating income		132,748)	24)	202,216)		28)	264,496)	24)	342,304)	25)
7000	Non-operating income and expenses (Note (6)(t)):
7100	Interest income		6,571)	1)	876)		-	9,673)	-	1,459)	-
7010	Other income		36,731)	7)	40,210)		5)	74,035)	7)	69,508)	5)
7020	Other gains and losses, net		17,015)	3)	8,728)		1)	15,839)	1)	22,351)	2)
7050	Finance costs, net		(5,867)	(1)	(4,584)		-	(11,382)	(1)	(8,169)	(1)
	Total non-operating income and expenses		54,450)	10)	45,230)		6)	88,165)	7)	85,149)	6)
	Profit (loss) from continuing operations before tax		187,198)	34)	247,446)		34)	352,661)	31)	427,453)	31)
7950	Less: Income tax expenses (Note (6)(o))		40,500)	8)	57,404)		8)	74,599)	7)	94,925)	7)
	Profit		146,698)	26)	190,042)		26)	278,062)	24)	332,528)	24)
	Other comprehensive income:
8360	Components of other comprehensive income (loss) that will be reclassified to profit or loss
8361	Exchange differences on translation of foreign financial statements		(1,281)	-	5,399)		1)	(2,551)	-	29,276)	2)
	Components of other comprehensive income that will be reclassified to profit or loss		(1,281)	-	5,399)		1)	(2,551)	-	29,276)	2)
	Other comprehensive income		(1,281)	-	5,399)		1)	(2,551)	-	29,276)	2)
8500	Total comprehensive income	$	145,417)	26)	195,441)		27)	275,511)	24)	361,804)	26)
	Profit (loss), attributable to:
8610	Profit (loss), attributable to owners of parent	$	147,978)	26)	190,037)		26)	279,664)	24)	331,938)	24)
8620	Profit (loss), attributable to non-controlling interests		(1,280)	-	5)		-	(1,602)	-	590)	-
		$	146,698)	26)	190,042)		26)	278,062)	24)	332,528)	24)
	Comprehensive income attributable to:
8710	Comprehensive income, attributable to owners of parent	$	146,697)	26)	195,436)		27)	277,113)	24)	361,214)	26)
8720	Comprehensive income, attributable to non-controlling interests		(1,280)	-	5)		-	(1,602)	-	590)	-
		$	145,417)	26)	195,441)		27)	275,511)	24)	361,804)	26)
9750	Basic earnings per share (NT dollars) (Notes (6)(q))	$		0.97)		1.24)			1.83)		2.17
9870	Diluted earnings per share (NT dollars) (Notes (6)(q))	$		0.97)		1.24)			1.83)		2.17

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

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(ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE) REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the Six Months Ended June 30, 2023 and 2022 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

		Equity attributable to owners ofparent	Equity attributable to owners ofparent	Equity attributable to owners ofparent	Equity attributable to owners ofparent			Non- Controlling Interests	Total Equity
Capital Stock	Capital Surplus		Retained Earnings			Other Equity	Total Equity Attributable to Owners of Parent
Share Capital		Legal Reserve	Special Reserve	Unappropriated Retained Earnings	Total	Exchange Differences on Translation of Foreign Financial Statements
	135,564) - -	798,109) - -	51,068 - -	948,483) 331,938) -	1,797,660) 331,938) -	(65,881) - 29,276)	3,393,830) 331,938) 29,276)	34,344) 590) -	3,428,174) 332,528) 29,276)
-	-	-	-	331,938)	331,938)	29,276)	361,214)	590)	361,804)
- - - -	- - - -	58,113) - - -	- 14,811) - -	(58,113) (14,811) (457,946) -	- - (457,946) -	- - - -	- - (457,946) -	- - - (1,014)	- - (457,946) (1,014)
	135,564)	856,222)	65,879	749,551)	1,671,652)	(36,605)	3,297,098)	33,920)	3,331,018)
	135,564) - -	856,222) - -	65,879 - -	1,102,108) 279,664) -	2,024,209) 279,664) -	(23,961) - (2,551)	3,662,299) 279,664) (2,551)	34,716) (1,602) -	3,697,015) 278,062) (2,551)
-	-	-	-	279,664)	279,664)	(2,551)	277,113)	(1,602)	275,511)
- - - -	- - - (2) -	68,450) - - - -	- (41,919) - - -	(68,450) 41,919) (534,270) - -	- - (534,270) - -	- - - - -	- - (534,270) (2) -	- - - - (1,243)	- - (534,270) (2) (1,243)
	135,562)	924,672)	23,960	820,971)	1,769,603)	(26,512)	3,405,140)	31,871)	3,437,011)

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

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(ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE) REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2023 and 2022 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

		For the six months	endedJune 30,
		2023	2022
Cash flows from operating activities:
Profit before tax	$	352,661)	427,453)
Adjustments:
Adjustments to reconcile profit:
Depreciation expense		42,996)	41,880)
Amortization expense		544)	472)
Expected credit gain		(478)	(1,264)
Interest expense		11,382)	8,169)
Interest income		(9,673)	(1,459)
Loss on disposal of property, plant and equipment		(20)	(3)
Total adjustments to reconcile profit		44,751)	47,795)
Changes in operating assets and liabilities:
Changes in operating assets:
Financial assets at fair value through profit or loss, mandatorily measured at fair value		36,056)	(14,472)
Notes receivable		6,579)	(1,118)
Accounts receivable		83,667)	(33,145)
Other receivables		1,533)	6,780)
Inventories		166,751)	(61,622)
Other current assets		1,795)	3,961)
Total changes in operating assets		296,381)	(99,616)
Changes in operating liabilities:
Contract liabilities		(1,499)	(1,197)
Notes payable		(4,312)	(5,745)
Accounts payable		(85,922)	(153,999)
Other payables		(26,575)	8,916)
Other current liabilities		(413)	1,669)
Net defined benefit liabilities, non-current		(583)	(11,457)
Total changes in operating liabilities		(119,304)	(161,813)
Total changes in operating assets and liabilities		177,077)	(261,429)
Total adjustments		221,828)	(213,634)
Cash inflow (outflow) generated from operations		574,489)	213,819)
Interest received		9,478)	1,386)
Interest paid		(11,285)	(7,850)
Income taxes paid		(15,856)	(152,872)
Net cash flows from (used in) operating activities		419,826)	54,483)
Cash flows from investing activities:
Acquisition of property, plant and equipment		(2,233)	(14,768)
Proceeds from disposal of property, plant and equipment		21)	356)
Increase in guarantee deposits paid		1)	(6)
Acquisition of intangible assets		(114)	-
Increase in prepayments for business facilities		(5,395)	(9,722)
Net cash flows (used in) from investing activities		(7,720)	(24,140)
Cash flows from financing activities:
Decrease in short-term borrowings		-	(20,000)
Repayments of long-term borrowings		(25,000)	(25,000)
Increase in guarantee deposits received		(31)	4,837)
Payment of lease liabilities		(1,059)	(1,021)
Payment of overdue cash dividends		(2)	-
Net cash flows used in (from) financing activities		(26,092)	(41,184)
Effect of exchange rate changes on cash and cash equivalents		(1,516)	11,596)
Net increase (decrease) in cash and cash equivalents		384,498)	755)
Cash and cash equivalents at beginning of period		719,386)	754,876)
Cash and cash equivalents at end of period	$	1,103,884)	755,631)

The accompanying notes are an integral part of the consolidated financial statements

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(1) Overview

Zippy Technology Corp. (the “Company”) was established on April 25, 1983, which was a limited company. The Company reorganized into a company limited by shares in 1988. The shares of the Company was listed and traded at the ROC Securities Over-the-Counter Trading Center on May 25, 1996. Through the listing application to the Taiwan Stock Exchange in June 2000, the shares of the Company became officially listed and traded on the Taiwan Stock Exchange on September 11, 2000. The Company and its subsidiaries (together referred to as the “Group” and individually as “Group entities”). The Group engages primarily in the designing, manufacturing and trading of micro switches, power supplies. Please refer to Note 14 for details.

(2) Financial Statements Authorization Date and Authorization Process

The consolidated financial statements were authorized for issuance by the Board of Directors on August 10, 2023.

(3) New Standards, Amendments and Interpretations not yet Adopted:

(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2023:

Amendments to IAS 1 “Disclosure of Accounting Policies”
Amendments to IAS 8 “Definition of Accounting Estimates”
Amendments to IAS 12 “Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction”
(b) The impact of IFRS issued by IASB but not yet endorsed by the FSC

As of the date, the IFRSs that have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC, which may be relevant to the Group, are set out below:

Standards or Interpretations	Content of amendment Under existing IAS 1 requirements, companies classify a liability as current when they do not have an unconditional right to defer settlement for at least 12 months after the reporting date. The amendments has removed the requirement for a right to be unconditional and instead now requires that a right to defer settlement must exist at the reporting date and have substance. The amendments clarify how a company classifies a liability that can be settled in its own shares – e.g. convertible debt.	Effective date per IAS
Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”		January 1, 2024

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

Standards or Interpretations	Content of amendment After reconsidering certain aspects of the 2020 amendments1, new IAS 1 amendments clarify that only covenants with which a company must comply on or before the reporting date affect the classification of a liability as current or non-current. Covenants with which the company must comply after the reporting date (i.e. future covenants) do not affect a liability’s classification at that date. However, when non-current liabilities are subject to future covenants, companies will now need to disclose information to help users understand the risk that those liabilities could become repayable within 12 months after the reporting date.	Effective date per IAS
Amendments to IAS 1 “Non-current Liabilities with Covenants”		January 1, 2024

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

The Group expects that the adoption of the following IFRSs, which are issued by IASB but not yet endorsed by the FSC, would not have any material impact on its 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 “Insurance Contracts”
Amendments to IFRS16 “Requirements for Sale and Leaseback Transactions”
Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
Amendments to IAS12 “International Tax Reform – Pillar Two Model Rules”

(4) Summary of Significant Accounting Policies

The accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of, the English and Chinese language consolidated financial statements, the Chinese version shall prevail.

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC

～ 9 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2022. For the related information, please refer to Note 4 of the consolidated financial statements for the year ended December 31, 2022.

(b) Basis of consolidation

1. List of subsidiaries in the consolidated financial statements

Principal Investor Name of Subsidiary activity	Shareholding Ratio 2023.6.30 2022.12.31 2022.6.30 Note
The Company ZIPPY USA Inc. Trading in micro switches, power supplies, and computer accessories 〞 ZIPPY International Holding Ltd. Reinvestment business 〞 QUAN-FA Corporation Company Wire and cable manufacturing, electronic component manufacturing 〞 ZIPPY Technology Europe Gmbh Trading in electrical parts and computer accessories 〞 Landmark International Holding Ltd. Reinvestment business ZIPPY International Holding Ltd. ZIPPY (Dongguan) Electronics Co., Ltd. Mainly produce various switches, power supplies, molds, computer peripheral equipment, computer optical fiber parts and sales 〞 KOBOT International Inc. Leasing Landmark International Holding Ltd. ZIPPY (Suzhou) Electronics Co. , Ltd. Mainly sell computer key components, power supplies, precision ceramics, precision molds and key components of network equipment 〞 G-BRIM International Inc. Mainly engaged in electronic products, plastic products, rubber products, hardware products, import and export and related supporting businesses, etc.	100.00% 100.00% 100.00% (Note 1) 100.00% 100.00% 100.00% (Note 2) 63.92% 63.92% 63.92% 〞 100.00% 100.00% 100.00% 〞 100.00% 100.00% 100.00% 〞 100.00% 100.00% 100.00% 〞 100.00% 100.00% 100.00% 〞 100.00% 100.00% 100.00% 〞 100.00% 100.00% 100.00% 〞

Principal
Investor
Name of Subsidiary
activity

Shareholding Ratio
2023.6.30
2022.12.31
2022.6.30
Note

The Company ZIPPY USA Inc.
Trading in micro switches, power
supplies, and computer
accessories
〞
ZIPPY International Holding
Ltd.
Reinvestment business
〞
QUAN-FA Corporation
Company
Wire and cable manufacturing,
electronic component
manufacturing
〞
ZIPPY Technology Europe
Gmbh
Trading in electrical parts and
computer accessories
〞
Landmark International
Holding Ltd.
Reinvestment business
ZIPPY
International
Holding Ltd.
ZIPPY (Dongguan)
Electronics Co., Ltd.
Mainly produce various switches,
power supplies, molds, computer
peripheral equipment, computer
optical fiber parts and sales
〞
KOBOT International Inc.
Leasing
Landmark
International
Holding Ltd.
ZIPPY (Suzhou) Electronics
Co. , Ltd.
Mainly sell computer key
components, power supplies,
precision ceramics, precision
molds and key components of
network equipment
〞
G-BRIM International Inc.
Mainly engaged in electronic
products, plastic products, rubber
products, hardware products,
import and export and related
supporting businesses, etc.

100.00%
100.00%
100.00%
(Note 1)
100.00%
100.00%
100.00%
(Note 2)
63.92%
63.92%
63.92%
〞
100.00%
100.00%
100.00%
〞
100.00%
100.00%
100.00%
〞
100.00%
100.00%
100.00%
〞
100.00%
100.00%
100.00%
〞
100.00%
100.00%
100.00%
〞
100.00%
100.00%
100.00%
〞

Note 1：The Company is a non-significant subsidiaries, its financial statements have been reviewed.

Note 2：The Company is a non-significant subsidiaries, its financial statements have not been reviewed.

Subsidiaries excluded from the consolidated financial statements: None.

(c) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

～ 10 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period by the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

(d) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year to date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year.

(5) Significant Accounting Judgments, Estimation, Assumptions, and Sources of Estimation Uncertainty

The preparation of the consolidated financial statements in conformity with the Regulations and IFRSs (in accordance with IAS 34 “Interim Financial Reporting” and endorsed by the FSC) requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2022. For related information, please refer to Note 5 of the consolidated financial statements for the year ended December 31, 2022.

(6) Explanation to Significant Accounts

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2022. Please refer to Note (6) of the 2022 annual consolidated financial statements.

(a) Cash and cash equivalents

Cash $ Checking deposits Demand deposits Time deposits Cash and cash equivalents in consolidated statement of cash flows $	2023.06.30	2022.12.31	2022.06.30
	547 5,804 378,455 719,078	458 3,172 432,476 283,280	586 3,043 378,798 373,204
	1,103,884	719,386	755,631

～ 11 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

Refer to Note 6(u) for the currency risk of the financial assets of the Group.

(b) Financial assets and liabilities at fair value through profit or loss
Financial assets and liabilities at fair value through profit or loss

Mandatorily measured at fair value through profit or loss - Beneficiary certificates $	2023.06.30	2022.12.31	2022.06.30 99,179
	54,584	92,215

1) Refer to Note 6(u) for the credit risks exposure of the financial instrument.
2) As of June 30, 2023, December 31, 2022 and June 30, 2022, the aforesaid financial assets were not pledged as collateral.
(c) Notes and accounts receivables

Notes receivable $ Accounts receivable Less: Loss allowance $	2023.06.30	2022.12.31	2022.06.30
	12,969 288,760 (1,126)	19,548 372,427 (1,600)	30,065 441,641 (2,944)
	300,603	390,375	468,762

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provisions in Taiwan and Mainland China were determined as follows:

	2023.06.30
Gross carrying amount	Weighted- average	Loss allowance provision
226,238 10,619	0.30% 19.60%	679 2,081
236,857		2,760

Note: as of the end of July 31, 2023, the amount that received by the Company is $10,619.

～ 12 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

	2022.12.31
Gross carrying amount	Weighted- average	Loss allowance provision
283,872 20,377	0.30% 22.71% 2022.06.30	852 4,628
304,249		5,480

Gross carrying amount	Weighted- average	Loss allowance provision
370,692 11,388	0.30% 22.71%	1,112 2,586
382,080		3,698

The loss allowance provisions in other foreign regions were determined as follows:

	2023.06.30
Gross carrying amount	Weighted- average	Loss allowance provision
49,613 15,259	0.30% 0.20%~19.6% 2022.12.31	149 108
64,872		257

Gross carrying amount	Weighted- average	Loss allowance provision
58,457 29,269	0.30% 0.22%~0.69% 2022.06.30	175 64
87,726		239

Gross carrying amount	Weighted- average	Loss allowance provision
60,422 29,204	0.30% 0.22%~0.69%	181 65
89,626		246

～ 13 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

The movement in the allowance for notes and accounts receivable was as follows:

		For the six months	ended June 30,
		2023	2022
Balance at January 1, 2023 and 2022	$	1,600)	4,198)
Impairment losses (reversed) recognized		(478)	(1,264)
Effect of movements in exchange rate		4)	10)
Balance at June 30, 2023 and 2022	$	1,126)	2,944)

As of June 30, 2023, December 31, 2022 and June 30, 2022, none of the receivables above are pledged as collateral for loans and borrowings.

(d) Other receivables

Other receivables $	2023.06.30	2022.12.31	2022.06.30
	3,938	5,276	7,187

None of other receivables are past due.

Please refer to Note 6(u) for further credit risk information.

(e) Inventories

Finished goods $ Work in process Raw materials Materials and supplies in transit $	2023.06.30	2022.12.31	2022.06.30
	93,719 164,078 429,260 35,596	163,308 222,558 490,525 12,876	150,554 265,785 526,680 20,819
	722,653	889,267	963,838

For the three months and six months ended June 30, 2023 and 2022, the write-down of inventories to net realizable value amounting to $860, $1,111, $8,186 and $5,757 were included in operating cost.

As of June 30, 2023, December 31, 2022 and June 30, 2022, the aforesaid inventories were not pledged as collateral.

～ 14 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(f) Property, plant and equipment

Land	Building and construction	Machinery and equipment	Office equipment	Other facilities	Total
$ 753,342 $ 754,618 $ 746,923 $ 750,759	271,953	157,464	14,558	49,967	1,247,284
	264,876	143,744	12,129	42,600	1,217,967
	279,956	174,050	13,922	48,360	1,263,211
	276,687	165,361	12,501	47,698	1,253,006

The property, plant and equipment of the Group have no significant additions, dispositions, impairment, or reversals for the six months ended June 30, 2023 and 2022. Please refer to Note 12 for the amount of depreciation, and for other related information, please refer to Note 6(f) of the consolidated financial statement for the year ended December 31, 2022.

Please refer to Note 8 for details of the above assets pledged as collateral for long-term, short-term borrowings and financing line guarantees.

(g) Right-of-use assets

Land Carrying amounts: Balance at January 1, 2023 $ 8,075 Balance at June 30, 2023 $ 7,718 Balance at January 1, 2022 $ 8,178 Balance at June 30, 2022 $ 8,242	Land	Building and construction	Total
		3,604	11,679
		2,538	10,256
		5,438	13,616
		4,650	12,892

The right-of-use assets of the Group have no significant additions, dispositions, impairment, or reversals for the six months ended June 30, 2023 and 2022. Please refer to Note 12(a) for the amount of depreciation, and for other related information, please refer to Note 6(g) of the consolidated financial statement for the year ended December 31, 2022.

(h) Investment property

Investment property includes its own assets held by the Group. The original non-removable period of leased investment property is one to four years, and some lease contracts stipulate that the lessee has the option to extend the period upon expiration.

For all investment property leases, the rental income is fixed under the contracts.

Information about investment property of the Group is presented below:

～ 15 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

Own assets Land and improvement Building and construction Carrying amounts: Balance at January 1, 2023 $ 1,799,575 328,307 Balance at June 30, 2023 $ 1,800,135 321,026 Balance at January 1, 2022 $ 1,795,609 339,094 Balance at June 30, 2022 $ 1,798,284 334,549	Total
	2,127,882
	2,121,161
	2,134,703
	2,132,833

The investment property of the Group has no significant additions, dispositions, impairment, or reversals for the six months ended June 30, 2023 and 2022. Please refer to Note 12 for the amount of depreciation, and for other related information, please refer to Note 6(h) of the consolidated financial statement for the year ended December 31, 2022.

For the three months and six months ended June 30, 2023 and 2022, the direct operating expenses incurred by the Group's investment property that generated rental income were $1,033, $965, $1,932 and $1,809, respectively.

The fair value of the investment property was not significantly different from those disclosed in the Note 6(h) of the annual consolidated financial statements for the year ended December 31, 2022.

Please refer to Note 8 for details of the investment property pledged as collateral.

(i) Intangible assets

Software Carrying amounts: Balance at January 1, 2023 $ 2,034 Balance at June 30, 2023 $ 1,604 Balance at January 1, 2022 $ 2,298 Balance at June 30, 2022 $ 1,826	Software	Other intangible assets	Total
		19,048	21,082
		19,048	20,652
		19,048	21,346
		19,048	20,874

The intangible assets of the Group have no significant additions, dispositions, impairment, or reversals for the six months ended June 30, 2023 and 2022. Please refer to Note 12 for the amount of depreciation, and for other related information, please refer to Note 6(i) of the consolidated financial statement for the year ended December 31, 2022.

(j) Short-term borrowings

The significant details of short-term borrowings were as follows:

～ 16 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

2023.06.30	2022.12.31	2022.06.30
	13,083	23,631
	2,227,041	2,212,536
4.64%	3.34%	0.90%~1.10%

Please refer to Note 8 for details of the related assets pledged as collateral.

(k) Long-term borrowings

The significant terms and conditions of long-term borrowings were as follows:

2023.06.30	2022.12.31	2022.06.30
	1,158,000 (50,000)	1,183,000 (50,000)
	1,108,000	1,133,000
1.71%~2.01%	1.11%~1.74%	1.11%~1.63%

Please refer to Note 8 for details of the related assets pledged as collateral.

Under credit/loan agreements, the Group shall maintain certain consolidated financial ratios on balance sheet date of semi and annual financial statements. (i.e. liabilities to equity ratio, interest coverage ratio, tangible net worth, etc.) Otherwise, the loans are due and payable immediately.

(l) Lease liabilities

The Group lease liabilities were as follows:

2023.06.30 1,840 746	2022.12.31	2022.06.30
	2,014	2,105
	1,661	2,621
6(u).

The amounts recognized in profit or losses were as follows:

For the three months ended June 30, 2023 2022 20 36 158 182	For the six months ended June 30,	For the six months ended June 30,
2023 20 158	2023	2022 74 362
	42
	337

～ 17 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

The amounts recognized in the statement of cash flows for the Group was as follows:

The amounts recognized in the statement of cash flows	for the Group was as follows:	for the Group was as follows:
Total cash outflow for leases $	For the six months ended June 30,
	2023 1,438	2022
		1,457

1. Real estate leases

As of June 30, 2023, December 31, 2022 and June 30, 2022, the Group leases houses and buildings as office premises and factories. The lease period of office premises is usually two to three years. The lease period of factories is usually five to six years. Part of the lease includes the option to extend the same period as the original contract when the lease period expires.

2. Other leases

The Group leases parking spaces, photocopying equipment and dormitories for a lease period of one year. These leases are short-term leases. The Group has elected not to recognize right-of-use assets and lease liabilities for these leases.

(m) Operating Leases

The Group leases its investment properties. Since almost all risks and rewards belonging to the ownership of the underlying asset have not been transferred and paid, these lease contracts are classified as operating leases. Please refer to Note 6 (h) Investment property for details.

Maturity analyses of lease payments, showing the undiscounted lease payments to be received after the reporting date are as follows:

Less than one year $ One to two years Two to three years Three to four years Four to five years More than five years Total undiscounted lease payments $	2023.06.30	2022.12.31	2022.06.30
	109,854 87,436 29,332 23,462 21,496 73,518	116,890 98,518 54,618 23,981 21,192 81,620	95,954 85,481 66,284 25,913 17,601 51,031
	345,098	396,819	342,264

Please refer to Note 6(t) for further information of the rental revenues incurred by leasing investment properties for the three months and six months ended June 30, 2023 and 2022.

(n) Employee benefits

1. Defined benefit plans

Management believes that there was no material volatility of the market, no material

～ 18 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

reimbursement and settlement or other material one-time events since prior fiscal year. As a result, the pension cost in the accompanying interim consolidated financial statements was measured and disclosed according to the actuarial report as of December 31, 2022 and 2021.

The expenses recognized in profit or loss for the Group was as follows:

For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
2023	2022	2023	2022
	55 7 91	175 9 30	110 13 182
	153	214	305

2. Defined contribution plans

The Group’s expenses under the pension plan cost to the Bureau of Labor Insurance were as follows:

For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
2023	2022	2023	2022
	2,204 378 544 591	4,089 656 898 1,011	4,445 760 1,101 1,237
	3,717	6,654	7,543

The pension expenses contributed by the foreign entities following the local regulations amounted to $1,995, $1,884, $3,865 and $3,781 for the three months and six months ended June 30, 2023 and 2022, respectively.

3. Provisions for Employee Benefits

The provisions for employee benefits for the Group were as follows:

Net defined benefit liability, non-current $ Accumulating compensated absences (Other payables) $	2023.06.30	2022.12.31	2022.06.30
	16,640 18,851	17,223 19,690	28,450 19,449
	35,491	36,913	47,899

～ 19 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(o) Income taxes
The components of income tax expense were as follows:

ome taxes The components of income tax expense were as follows:	me tax expense were as follows:	me tax expense were as follows:
For the three months ended June 30, 2023 2022 Current tax expense Current period $ 40,936 57,404 Prior period adjustments (436) - Current period $ 40,500 57,404	For the three months ended June 30,		For the six months ended June 30,
	2023	2022	2023	2022
		57,404 -	75,035 (436)	94,925 -
		57,404	74,599	94,925

For the six months ended June 30, 2023 and 2022, there were no income tax recognized in equity and other comprehensive income.

The Company’s income tax returns through 2021 have been examined and approved by the Tax Authority.

(p) Capital and reserves

Except for the following disclosure, there was no significant change for capital and other equity for the six months ended June 30, 2023 and 2022. For the related information, please refer to note 6(p) of the consolidated financial statements for the year ended December 31, 2022.

Retained earnings

According to the Articles of Incorporation, after-tax earnings are initially used to offset cumulative losses, and 10% of the remainder is set aside as a legal reserve, except when the legal reserve of the Company reaches paid-in capital of the Company. Special reserve may be appropriated if necessary, and then any remaining profit together with any undistributed retained earnings shall be distributed according to the distribution plan proposed by the Board of Directors and submitted to the shareholders’ meeting for approval.

1) Legal reserve

If the Company experienced profit for the year, the meeting of shareholders shall decide on the distribution of the statutory earnings reserve either by new shares or by cash, of up to 25 percent of the actual share capital.

2) Special reserve

In accordance with Permit No.1010012865 as issued by the Financial Supervisory Commission on 6 April 2012, a special reserve equal to the contra account of other shareholders' equity is appropriated from the current and prior period earnings. When the debit balance of any of the contra accounts in the shareholders' equity is reversed, the related special reserve can be reversed. The subsequent reversals of the contra accounts in shareholders' equity shall qualify for additional distributions.

～ 20 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

3) Earnings Distribution

During the shareholder’s meeting on May 30, 2023 and May 27, 2022, the shareholders approved to distribute the 2022 and 2021 earnings. The earnings were appropriated as follows:

2022 Dividend per share ($) Amount Dividends distributed to common shareholders Cash $ 3.50 534,270	2022	2022	2021	2021
	Dividend per share ($)	Amount	Dividend per share ($)	Amount
		534,270	3.00	457,946

(q) Earnings per share

The following are the calculation of basic earnings per share and diluted earnings per share:

For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
2023	2022	2023	2022
	190,037	279,664	331,938
152,649	152,649	152,649	152,649
	1.24	1.83	2.17
	190,037	279,664	331,938
152,649 238	152,649 311	152,649 485	152,649 505
152,887	152,960	153,134	153,154
	1.24	1.83	2.17
～21～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(r) Revenue from contracts with customers
Disaggregation of revenue

For the three months ended June 30, 2023	For the three months ended June 30, 2023	For the three months ended June 30, 2023
Power Supplies		Total
58,634 104,901 13,697 47,139 554 14,669		105,151 129,451 96,330 56,288 61,930 88,589
239,594		537,739
239,594		537,739
Power Supplies	Marco Switches 46,301 31,753 68,825 12,627 63,841 93,542 316,889 316,889	Total
158,850 131,017 41,439 59,645 2,210 25,697		205,151 162,770 110,264 72,272 66,051 119,239
418,858		735,747
418,858		735,747

～ 22 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

For the six	months ended June 30, 2023	months ended June 30, 2023
Power Supplies	Marco Switches Total 92,839 237,693 49,219 251,694 157,051 183,448 18,835 111,035 115,721 117,618 139,709 191,482 573,374 1,092,970 573,374 1,092,970 months ended June 30, 2022	Total
144,854 202,475 26,397 92,200 1,897 51,773		237,693 251,694 183,448 111,035 117,618 191,482
519,596		1,092,970
519,596		1,092,970
For the six
Power Supplies	Marco Switches 92,366 53,686 138,241 22,132 97,278 172,494 576,197 576,197 2022.12.31	Total
266,315 248,323 92,493 110,346 2,628 72,224		358,681 302,009 230,734 132,478 99,906 244,718
792,329		1,368,526
792,329		1,368,526
2023.06.30		2022.06.30
12,310	13,809	16,946

～ 23 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

Contract liabilities are mainly derived from the difference between the time when the Group transfers goods or services to the customer to meet the performance obligation and the time when the customer pays. The Group will transfer revenue when the performance obligation is met.

(s) Remuneration of employees, directors and supervisors

The Company’s articles of incorporation require that earnings shall first be offset against any deficit. A minimum of 2% will be distributed as employee remuneration and a maximum of 2% will be allocated as directors’ and supervisors’ remuneration. The recipients of shares and cash may include employees of the Company’s affiliated companies who meet certain conditions. Distribution remuneration for employees, directors and supervisors shall be submitted to the shareholders' meeting report.

The remuneration of employees amounted to $5,819, $7,355, $10,971 and $12,761 and the remuneration of directors amounted to $3,879, $4,903, $7,314 and $8,507 for the three months and six months ended June 30, 2023 and 2022, respectively. These amounts are calculated using the Company's profit before tax for each period described above, and are determined using the earnings allocation method which stated under the Company's article. These remunerations were expensed under operating cost or expenses in June 30, 2023 and 2022. If there is a difference between the actual distribution amount in the following year and the estimated amount, it shall be dealt with according to the change in accounting estimates, and the difference shall be recognized as the profit and loss of the following year.

The remuneration of employees amounted to $25,882 and $22,649, and the remuneration of directors amounted to $17,254 and $15,099. There were no differences between the amounts to be distributed as remuneration to employees and directors and those of the estimation made by the Company. Related information would be available at the Market Observation Post System after the meeting of the shareholders has been convened.

(t) Non-operating income and expenses

1. Interest income

The details of interest income were as follows:

Interest income $	For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
	2023	2022	2023	2022
	6,571	876	9,673	1,459

2. Other income

The details of other income were as follows:

～ 24 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
2023	2022	2023	2022
30,351 6,380	29,542 10,668	60,440 13,595	53,390 16,118
36,731	40,210	74,035	69,508

3. Other income and losses

The details of other income and losses were as follows:

For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
2023	2022	2023	2022
21 16,641 367 (14)	- 10,665 558 (2,495)	20 15,474 754 (409)	3 26,334 1,137 (5,123)
17,015	8,728	15,839	22,351

4. Finance costs

The details of finance expenses were as follows:

For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
2023	2022	2023	2022
5,847 20	4,548 36	11,340 42	8,095 74
5,867	4,584	11,382	8,169

(u) Financial instruments

Except for the contention mentioned below, there was no significant change in the fair value of the Group’s financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For the related information, please refer to Note 6(u) of the consolidated financial statements for the year ended December 31, 2022.

～ 25 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

1. Credit risk of receivables

For credit risk exposure of note and trade receivables, please refer to Note 6(c). Other financial assets at amortized cost include other receivables; please refer to Note 6(d) for relevant information and the provision of allowance loss.

All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12 months expected losses. Regarding how the financial instruments are considered to have low credit risk, please refer to Note 4(g) of the consolidated financial statements for the year ended December 31, 2022.

2. Liquidity risks

The following are the contractual maturities of financial liabilities of the Group, including the impact of estimation of interest:

Carrying amount	Contractual cash flows	Less than 6 months	6 to 12 months	1 to 2 years	2 to 5 years	More than 5 years
	1,223,161 13,786 7,332 177,420 2,629 715,700 23,902	35,500 13,786 7,332 177,420 969 715,700 1,076	35,266 - - - 911 - 5,090	69,780 - - - 749 - 11,205	1,082,615 - - - - - 4,952	- - - - - - 1,579
	2,163,930	951,783	41,267	70,555	1,087,567	1,579
Carrying amount	Contractual cash flows	Less than 6 months	6 to 12 months	1 to 2 years	2 to 5 years	More than 5 years
	1,235,311 13,270 11,644 263,342 3,762 206,456 23,933	33,183 13,270 11,644 263,342 1,102 206,456 594	33,050 - - - 982 - 486	65,564 - - - 1,672 - 5,049	192,288 - - - 6 - 16,205	911,226 - - - - - 1,599
	1,757,718	529,591	34,518	72,285	208,499	912,825

～ 26 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

Carrying amount June 30, 2022 Non-derivative financial liabilities Secured bank loans $ 1,183,000 Unsecured bank loans 23,631 Notes payable 24,361 Accounts payable 389,177 Lease liabilities 4,726 Other payables 655,757 Guarantee deposits received 25,848 $ 2,306,500	Carrying amount	Contractual cash flows	Less than 6 months	6 to 12 months	1 to 2 years	2 to 5 years	More than 5 years
		1,253,681 23,709 24,361 389,177 4,872 655,757 25,848	31,932 23,709 24,361 389,177 1,102 655,757 5,730	31,784 - - - 1,105 - 26	63,128 - - - 1,949 - 5,772	185,753 - - - 716 - 14,023	941,120 - - - - - 297
		2,377,405	1,131,768	32,879	70,849	200,492	941,417

The Group is not expecting that the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amounts.

Currency risks
1) Exposure to currency risks

The Group’s exposures to significant currency risk were those from its foreign currency denominated financial assets and liabilities as follows:

	2023.06.30
Foreign currency (In thousand)	Exchange rate	TWD
	USD：TWD 31.1350 USD：EUR 0.9211 EUR：TWD 33.8033 CNY：TWD 4.2874 JPY：TWD 0.2150 USD：TWD 31.1350 CNY：TWD 4.2874 EUR：TWD 33.8033 JPY：TWD 0.2150 USD：TWD 31.1350 USD：EUR 0.9211 CNY：USD 4.2874	791,856 24,534 44,384 59,942 10,412 413,784 343,802 67,167 8,119 19,646 68,435 549

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

	2022.12.31
Foreign currency (Inthousand)	Exchange rate	TWD
	USD：TWD 30.7080 USD：EUR 0.9388 EUR：TWD 32.7086 CNY：TWD 4.4175 JPY：TWD 0.2324 USD：TWD 30.7080 CNY：TWD 4.4175 EUR：TWD 32.7086 JPY：TWD 0.2324 USD：TWD 30.7080 2022.06.30	455,338 19,407 39,463 88,169 6,149 396,686 345,957 60,805 7,975 37,617
Foreign currency (Inthousand)	Exchange rate	TWD
	USD:TWD 29.7260 USD:EUR 0.9573 EUR:TWD 31.0518 CNY:TWD 4.4405 JPY:TWD 0.2182 USD:TWD 29.7260 CNY:TWD 4.4405 EUR:TWD 31.0518 JPY:TWD 0.2182 USD:TWD 29.7260 TWD:CNY 0.2252	464,142 16,617 41,951 62,895 20,002 341,552 342,989 53,440 24,901 59,838 61,616

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

2) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans, accounts payable and other payables that are denominated in foreign currency. A 1% depreciation or appreciation of the functional currency against all the non-functional currency as of June 30, 2023 and 2022 would have increased or decreased the net profit after tax by $6,675 and $3,674, respectively. The analysis is performed on the same basis for both periods.

3) Gains or losses on foreign exchange

As Group deals with diverse foreign currencies, therefore, the gains or losses on foreign exchange were summarized as a single amount. For the six months ended June 30, 2023 and 2022, the foreign exchange gain (loss), including realized and unrealized, amounted to $15,474 and $26,334, respectively.

4. Fair value of financial instruments

1) Fair value hierarchy

Financial assets at fair value through profit or loss are measured on a recurring basis. However, for financial instruments not measured at fair value whose carrying amount is estimated reasonably close to the fair value and for equity investments that has no quoted prices in the active markets and lease liabilities information is not required:

		2023.06.30
Book Value		Fair	Value
	Level 1	Level 2	Level 3	Total
	5,000	-	49,584	54,584
1,103,884 304,541 501	- - -	- - -	- - -	- - -
1,408,926	-	-	-	-
	5,000	-	49,584	54,584
	- - - - -	- - - - -	- - - - -	- - - - -
	-	-	-	-

～ 29 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

		2022.12.31
Book Value		Fair	Value
	Level 1	Level 2	Level 3	Total
	-	-	92,215	92,215
719,386 395,651 502	- - -	- - -	- - -	- - -
1,115,539	-	-	-	-
	-	-	92,215	92,215
	- - - - -	- - - - -	- - - - -	- - - - -
	-	-	-	-

		2022.06.30
Book Value		Fair	Value
	Level 1	Level 2	Level 3	Total
	-	-	99,179	99,179
755,631 475,949 500	- - -	- - -	- - -	- - -
1,232,080	-	-	-	-
	-	-	99,179	99,179
	- - - - -	- - - - -	- - - - -	- - - - -
	-	-	-	-

～ 30 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

2) Valuation techniques and assumption for financial instruments measured at fair value:

The fair value of financial assets and liabilities were decided in accordance with the solutions as follows:

(2.1) Funds are financial assets with standard terms which are traded in the active markets. Their fair values are based on the quoted market prices.
(2.2) The fair value of unquoted equity instruments were estimated using either the discounted cash flow model in which future cash flow were estimated and discounted or the fair value of the recognized assets and liabilities of the consolidated subsidiaries on the measurement day.
3) Transfers between levels

There were no transfers between any level of the fair value for the six months ended June 30, 2023 and 2022.

4) The following table shows the movements in fair value measurements under level 3 of the fair value hierarchy:

value hierarchy:
Balance as of January 1, $ Purchase Disposals/pay off Effect of movements in exchange rate Balance as of June 30, $	At fair value through profit or loss
	For the six months ended June 30,
	2023	2022
	92,215 11,907 (52,963) (1,575)	82,775 36,612 (22,140) 1,932
	49,584	99,179

The Group's measurement of the fair value of financial instruments is reasonable, but the use of different evaluation models or evaluation parameters may lead to different evaluation results. For financial instruments classified as level 3, a 0.5% up or down of the evaluation parameter changes would have increased (decreased) the net profit by $248.

5) Quantified information for significant unobservable inputs (Level 3) used in fair value measurement

The Group uses level 3 inputs to measure financial assets at fair value through profit or loss. Quantified information of significant unobservable inputs was as follows:

～ 31 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

Item Financial assets at fair value through profit or loss－ beneficiary certificate	Valuation Technique Net Asset Value Method	Significant Non-observable Input ‧Market Interest Rate ‧Net Asset Value	The Relationship between Significant Non-observable Input and FairValue ‧The higher discount rate is, the lower fair value will be.

(v) )Financial risk management

There were no significant differences of the Group’s financial risk management and policies with those disclosed in Note (6)(v) of the consolidated financial statements for the year ended December 31, 2022.

(w) Capital Management

Management believes that the objectives, policies and processes of capital management of the Group have been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2022. Also, management believes that there were no significant changes in the Group’s capital management information as disclosed in Note (6)(w) for the year ended December 31, 2022.

(x) Investing and financing activities not affecting current cash flow
The Group’s financing activities not affecting current cash flow were acquisition of right-of-use assets from leasing. Please refer to Note 6(g).

Reconciliation of liabilities arising from financing activities was as follows:

Cash flows	Non-cash changes	June 30, 2023
	Foreign exchange movement
- (1,059)	438 (30)	13,521 2,586
(1,059)	408	16,107

Cash flows	Non-cash changes	Non-cash changes	June 30, 2022
	Lease revised	Foreign exchange movement
(20,000) (1,021)	- 194	(172) 54	23,631 4,726
(21,021)	194	(118)	28,357

～ 32 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS

ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(7) Related Party Transactions

(a) Significant transactions with related parties: None.
(b) Key management personnel compensation

Key management personnel compensation includes:

For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
2023	2022	2023	2022
16,108 209	15,956 219	31,958 408	30,793 452
16,317	16,175	32,366	31,245

(8) Pledged Assets

The carrying values of pledged assets were as follows:

Pledged assets	Object 2023.06.30 long-term, short-term borrowings $ 801,676 long-term borrowings 1,978,180 $ 2,779,856	2023.06.30	2022.12.31	2022.06.30
Property, plant and equipment Investment property Total			803,862 1,983,301	806,049 1,988,422
			2,797,163	2,794,471

(9) Significant Commitments and Contingencies: None.

(10) Losses Due to Major Disasters: None.

(11) Subsequent Events: None.

(12) Other

(a) The employee benefits, depreciation, depletion and amortization expenses categorized by function were as follows:

By function By item	For the three months ended June 30, 2023	For the three months ended June 30, 2023	For the three months ended June 30, 2023	For the three months ended June 30, 2022	For the three months ended June 30, 2022	For the three months ended June 30, 2022
	Operating costs	Operating and non-operating expense	Total	Operating costs	Operating and non-operating expense	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	74,495 7,265 3,379 3,022 13,734 85	57,295 3,617 2,051 1,645 7,750 189	131,790 10,882 5,430 4,667 21,484 274	89,299 7,293 3,456 3,471 13,170 84	60,428 3,418 2,298 1,771 7,906 149	149,727 10,711 5,754 5,242 21,076 233

～ 33 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

By function By item	For the six months ended June 30, 2023	For the six months ended June 30, 2023	For the six months ended June 30, 2023	For the six months ended June 30, 2022	For the six months ended June 30, 2022	For the six months ended June 30, 2022
	Operating costs	Operating and non-operating expense	Total	Operating costs	Operating and non-operating expense	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	144,815 14,414 6,629 6,066 27,490 169	103,606 8,888 4,104 5,064 15,506 375	248,421 23,302 10,733 11,130 42,996 544	168,735 14,837 6,907 6,720 26,100 175	129,606 8,041 4,722 4,540 15,780 297	298,341 22,878 11,629 11,260 41,880 472

(13) Other disclosures

(a) Information on significant transactions

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the six months ended June 30, 2023:

1. Loans to other parties:

(In Thousands of USD)

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the f period	Purposes of fund inancing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral	Collateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
1	Zippy USA Inc.	Kobot International Inc.	Other receivables- related parties	Y	59,712 (USD 1,920)	59,712 (USD 1,920)	59,712 (USD 1,920)	1.51~ 2.50	2	-	Working Capital	-		-	580,881	580,881

Note 1: Purpose of fund financing for the borrower:

(1) For those companies with business contact, please fill in 1.
(2) For those companies with short-term financing needs, please fill in 2.

Note 2: (1) The Company’s total fund financing amount cannot exceed 40% of its net asset value.

(2) For those companies with business contact, the amount of each fund financing cannot exceed the trading amount between the two parties. If the trading amount exceeds 10% of its net asset value, the amount of each fund financing cannot exceed 10%of its net asset value. The trading amount means the higher of sales or purchases.

(3) For those companies with short-term financing needs, the amount of each fund financing cannot exceed 10%of its net asset value.
Note 3: The policies of loans to other parties for the subsidiaries:
(1) Total financing amount cannot exceed 2 times of the subsidiary’s net asset value.
(2) For those companies with short-term financing needs, the amount of each fund financing cannot exceed 10% of the subsidiaries net asset value.
(3) For the subsidiary leading to the foreign companies that are 100% directly or indirectly owned by the Company, the amount of fund financing cannot exceed 2 time of the subsidiary’s net asset value.

Note 4: The transactions and its limits with the Group, which were calculated based on the exchange rate at the end of the period, were eliminated in the consolidated financial statements.

～ 34 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

2. Guarantees and endorsements for other parties:

											(In Thou	sands of EUR/USD)	sands of EUR/USD)
No.	Endorsement/ guarantee provider	Counter-part	y	Limitation on endorsement/ guarantee amount provided to each guaranteed party (Note 2)	Maximum balance for the year (Note 2)	Ending balance	Amount actually drawn	Amount of endorsement/ guarantee collateralized by properties	Ratio of accumulated endorsement/ guarantee to net equity per latest financial statements	Maximum endorsement guarantee amount allowance (Note 2and 3)	Guarantee provided by parent company	Guarantee provided by a subsidiary	Guarantee provided to subsidiaries in Mainland China
		Name	Nature of relationship (Note 1)
0 0	The Company 〞	Zippy (Dongguan) Electronics Co., Ltd. Zippy Technology Europe GmbH.	4 4	1,362,056 1,362,056	46,650 (USD 1,500) 50,730 (EUR 1,500)	46,650 (USD 1,500) 50,730 (EUR 1,500)	- 13,528 (EUR 400)	- -	1.37% 1.49%	1,702,570 1,702,570	Y Y	N N	Y N

Note 1: (1) The Company has business with the receiving parties.

(2) The Company holds directly or indirectly more than 50% of the common stock of the subsidiaries.
(3) The Company holds directly or indirectly more than 50% by the investee.
(4) The Company holds directly or indirectly more than 90% of the common stock of the subsidiaries.
(5) Based on the needs of contracting projects, companies in the same industry or jointly created mutual insurance companies in accordance with contractual provisions.
(6) The stockholders of the Company provide guarantee for the investee to their stockholding percentage.
(7) The inter-industry is engaged in joint and several guarantees for the performance of the pre-sale house sales contract in accordance with the regulations of the Consumer Protection Law.

Note 2: (1) The maximum guarantees and endorsements provide by the Company cannot exceed 50% of net asset of the Company.

(2) The maximum guarantees and endorsements for individual counter party cannot exceed 50% of net asset of the Company.
(3) The maximum guarantees and endorsements provide by the Company and subsidiaries cannot exceed 50% of net asset of the Company.
(4) For those companies with business contact, the amount of each guarantees and endorsements cannot exceed the trading amount within twelve months between the two parties.
Note 3: the policies of loans to other parties for the subsidiaries:
(1) Total amount of guarantees and endorsements cannot exceed 2 times of the subsidiary’s net asset value.
(2) The amount of guarantees and endorsements for individual counter party cannot exceed 40% of net asset of the subsidiary or the net asset of the endorsed company is limited; if approved by the board of directors, the maximum endorsement guarantee of the subsidiary to other subsidiaries hold directly or indirectly 100% by a single parent company cannot exceed 2 time of the subsidiary’s net asset value.

Note 4: The amount of guarantees and endorsements were exchanged to New Taiwan Dollars in the actual exchange rate at the time of guarantee.

Securities held as balance sheet date (excluding investment subsidiaries, associates and joint ventures) :

Name of holder	Category and name of security	Relationship with the Company	Account title		Ending balance	Ending balance		Note
				Shares/Units (thousands) (Note)	Carrying value	Percentage of ownership (%)	Fair value
The Company G-BRIM International Inc. Zippy (Dongguan) Electronics Co.,Ltd.	Fuh Hwa Money Market Beneficiary certificate Beneficiary certificate	- - -	Financial assets at fair value through profit or loss 〞〞	340 - -	5,000 28,147 21,437	- - -	5,000 28,147 21,437

Note: Refers to the number of fund units (thousand units)

Individual securities acquired or disposed of with accumulated amount exceeding the lower of TWD300 million or 20% of the capital stock: None.
Acquisition of individual real estate with amount exceeding the lower of TWD300 million or 20% of the capital stock: None.
Disposal of individual real estate with amount exceeding the lower of TWD300 million or 20% of the capital stock: None.
Related-party transactions for purchases and sales with amounts exceeding the lower of TWD100 million or 20% of the capital stock:

～ 35 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

Name of company	Related party	Nature of relationship		Transaction details	Transaction details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company 〞〞	Zippy (Dongguan) Electronics Co., Ltd. Zippy USA Inc. Zippy (Suzhou) Electronics Co. , Ltd.	Associate under equity method 〞〞	Purchases Sales Sales	163,081) (163,178) (113,960)	58.29% 15.53% 9.94%	2~4 months 2~4 months 2~4 months	Note 1 Note 1 Note 1	Note 2 Note 2 Note 2	- 17,212 20,060	- % 5.25% 6.11%

Note 1: Based on the negotiated price while trading.

Note 2: Normal customers are within one to two months, while related party transactions are within two to four months.

Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of capital stock: None.
Trading in derivative instruments: None.
Business relationships and significant inter-company transactions:

No.	Name of company	Name of counterparty	Existing relationship with the counter- party		Tr	ansactions
				Account name	Amount	Terms of trading	Percentage of the consolidated total revenue or total assets
0 0 0 0 0 0 0 0 0 0 1 2 2 3	The Company 〞〞〞〞〞〞〞〞〞 ZIPPY USA Inc. Zippy (Dongguan) Electronics Co., Ltd. QUAN-FA Corporation Company 〞	ZIPPY USA Inc. Zippy Technology Europe Gmbh. ZIPPY(Suzhou) Electronics Co. , Ltd. G-BRIM International Inc. Zippy (Dongguan) Electronics Co., Ltd. ZIPPY USA Inc. Zippy Technology Europe Gmbh. ZIPPY(Suzhou) Electronics Co. , Ltd. G-BRIM International Inc. Zippy (Dongguan) Electronics Co., Ltd. Kobot International Inc. The Company 〞〞	1 1 1 1 1 1 1 1 1 1 3 2 2 2	Sales Sales Sales Sales - Account Receivable Account Receivable Account Receivable Account Receivable Other Receivable Other Receivable Sales Sales Account Receivable	163,178 81,901 113,960 6,608 64,894 17,212 68,985 20,060 1,977 550 59,712 163,081 22,038 11,749	Negotiated price Negotiated price Negotiated price Negotiated price Procurement Two to four months Two to four months Two to four months Two to four months Note 1 Loan Negotiated price Negotiated price Two to four months	14.93% 7.49% 10.43% 0.60% -% 0.30% 1.22% 0.36% 0.04% 0.01% 1.06% 14.92% 2.02% 0.21%

～ 36 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS

ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

Note 1: In principle, the payment period depends on the capital needs, and the purchase is made by prepayment of part of the payment for the payment.

Note 2: The labeling method is as follows:

(1) Parent company labeled 0.
(2) Subsidiaries labeled in number sequence from 1.

Note 3: Relationship is classified into three types:

(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.
Note 4: The transaction amount is calculated as a proportion of the consolidated revenue or assets. If categorized as an asset or liability, the calculation is compared with the consolidated asset; if categorized as income or loss, the calculation is compared with the consolidated income or loss.

Note 5: The transactions with the Group were eliminated in the consolidated financial statements.

(b) Information on investment:

The following is the information on investees for the six months ended June 30, 2023 (excluding investees in Mainland China):

									Unit: Thousand Shares	Unit: Thousand Shares	Unit: Thousand Shares
Investor company	Investee company	Location	Main businesses and products	Original i amo	nvestment unt	Balance as of June 30, 2023			Net income (loss) of the investee (Note 1)	Share of profits/losses of investee (Note 1)	Note
				June 30, 2023	June 30, 2022	Shares/Units (In thousands)	Percentage of ownership	Carrying value
The Company 〞〞〞〞 Zippy International Holding Ltd.	Zippy USA Inc. Zippy International Holding Ltd. QUAN-FA Corporation Company Zippy Technology Europe GmbH. Landmark International Holding Ltd. Kobot International Inc.	USA BVI Taiwan Germany Samoa USA	Trading in micro switches, power supplies, and computer accessories Reinvestment business Wire and cable manufacturing, electronic component manufacturing Trading in electrical parts and computer accessories Reinvestment business Leasing	8,247 325,823 5,360 12,573 145,906 16,470	8,247 325,823 5,360 12,573 145,906 16,470	300 10,234 4,493 (Note 2) 4,425 (Note 2)	100.00% 100.00% 63.92% 100.00% 100.00% 100.00%	268,746 274,335 54,469 30,603 182,450 123,352	5,108 16,660 (4,440) 4,206 (394) 6,277	5,108 16,660 (2,838) 4,206 (394) 6,277	Subsidiary 〞〞〞〞 Indirect subsidiary

Note 1: Based on the financial report of the investment company audited by CPA to recognize under equity method.

Note 2: Obtaining equity.

Note 3: The aforementioned inter-company transactions were eliminated in the consolidated financial statements.

～ 37 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(c) Information on investment in Mainland China:
The names of investees in Mainland China, the main businesses and products, and other
- information:

==> picture [471 x 238] intentionally omitted <==

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

(In Thousands of USD)
Accumulated Investment flows Accumulated Investment Accumulated
Total amount Method of investment from outflow of investment from outflow of Net income income (losses) remittance ofearnings in
Main businesses of paid-in investment Taiwan as of Taiwan as of (losses) of the Percentage of (Note 2 and Book value current period
Name of investee and products capital (Note 1) January 1, 2023 Out-flow Inflow June 30, 2023 investee ownership 3) (Note 2 and 3) (Note 10)
Zippy (Dongguan) Mainly produce 276,957 (2) 276,957 - - 276,957 8,647 100.00% 8,647 159,543 -
Electronics Co., Ltd. various switches, power supplies, molds, computer (USD 8,500 and equipment (USD 8,783) (USD 8,783)
peripheral investment
equipment, USD 283)
computer optical
fiber parts and sales
ZIPPY(Suzhou) Mainly sell 82,375 (2) 82,375 - - 82,375 1,463 100.00% 1,463 80,330 -
Electronics Co. , Ltd. computer key components, power (USD 2,500) (USD 2,500) (USD 2,500)
supplies, precision
ceramics, precision
molds and key
components of
network equipment
G-BRIM Mainly engaged in 49,333 (2) 49,333 - - 49,333 (1,847) 100.00% (1,847) 103,927 -
International Inc. electronic products,
plastic products, (USD 1,500) (USD 1,500) (USD 1,500)
rubber products,
hardware products,
import and export
and related
supporting
businesses, etc.
----- End of picture text -----

Note 1: There are three ways of investments as following:

(a) Direct investment in Mainland China.
(b) Indirect investment in Mainland china through a subsidiary in a third place (Zippy International Holding Ltd. and Landmark International Ltd.). (c) Others

Note 2: The base of recognition of investment income (loss) is the financial statement audited by CPA of the investee company.

Note 3: The inter-company transactions with the Company were eliminated in the consolidated financial statements

2. Limitation on investment in Mainland China:

imitation on investment in	Mainland China:
Accumulated Investment in Mainland China as of June 30, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 3,4)
397,999) (USD 12,783)	404,755) (USD 13,000)	2,043,084

Note 1: The amount of paid-in capital and accumulated investment in Mainland China were exchanged to New Taiwan Dollars in historical exchange rates. Others were exchanged to New Taiwan Dollars in spot rate at the date of the audited entity's financial reports.

Note 2: The upper limit on investment is 60% of net value.

3. Significant transactions:

The significant inter-company transactions, which eliminated in the consolidated financial statements, with the subsidiary in Mainland China for the six months ended June 30, 2023, are disclosed in “Information on significant transactions”.

～ 38 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(d) Information on major shareholder:

Shareholding Shareholder’s Name	Shares	Percentage
Chung, Yen-Yen	10,337,267	6.77%
Chou, Chin-Wen	9,918,432	6.49%
Kao, Ming-Chuan	7,825,423	5.12%

(14) Segment Information

(a) Information about reportable segments and their measurement and reconciliations

The Group reportable segments: Power Supply Division, Switch Division, and others. Each division independently manufactures and sells related products. The reportable ds of the Group provide different products based on product business units. Since each product business unit requires different technologies and marketing strategies, it must be managed separately. Taxation is not able to be allocated to each reportable segment. In addition, all reportable segments include depreciation and amortization and other significant non-cash items. The reportable amount is the same as the report used by the chief operating decision maker. The operating segment accounting policies are similar to those described in Note (4) “Significant accounting policies”. Reportable segment profit or loss is based on operating profit or loss before taxation, and as the base of performance evaluation.

Information and reconciliations of operating segments of the Group:

	For the three months endedJune 30, 2023	For the three months endedJune 30, 2023	For the three months endedJune 30, 2023
Power supply	Switch	Other	Adjustment and Elimination	Total
	298,145 153,803	- -	- (310,747)	537,739 -
	451,948	-	(310,747)	537,739
	94,429	5,185	(4,477)	187,198

	For the three months endedJune 30, 2022	For the three months endedJune 30, 2022	For the three months endedJune 30, 2022
Power supply	Switch	Other	Adjustment and Elimination	Total
	316,889 180,926	- -	- (335,247)	735,747 -
	497,815	-	(335,247)	735,747
	101,025	4,806	(9,811)	247,446

～ 39 ～

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

	For the six months ended	For the six months ended	June 30, 2023
Power supply	Switch	Other	Adjustment and Elimination	Total
	573,374 276,552	- -	- (550,276)	1,092,970 -
	849,926	-	(550,276)	1,092,970
	174,218	8,946	(15,218)	352,661

	For the six months ended	For the six months ended	June 30, 2022
Power supply	Switch	Other	Adjustment and Elimination	Total
	576,197 319,826	- -	- (622,106)	1,368,526 -
	896,023	-	(622,106)	1,368,526
	177,632	7,775	(19,453)	427,453

Intersegment revenues for the three months and six months ended June 30, 2023 and 2022, which amounted to $310,747, $335,247, $550,276 and $622,106, respectively, should be eliminated from total revenues of reportable segments.

～ 40 ～

AI assistant

ZIPPY — Interim / Quarterly Report 2023

52069_rns_2023-11-08_4e041b1a-3a14-4c3a-8c7d-5e87719fb589.pdf

ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

Table of contents

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG

Notes to Readers

(ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AS OF MARCH 31, 2023 AND 2022 ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, 2023, December 31, 2022 and June 30, 2022 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

(ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Three months and six months Ended June 30, 2023 AND 2022 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

(1) Overview

(2) Financial Statements Authorization Date and Authorization Process

(3) New Standards, Amendments and Interpretations not yet Adopted:

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

(4) Summary of Significant Accounting Policies

(a) Statement of compliance

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(b) Basis of consolidation

1. List of subsidiaries in the consolidated financial statements

(c) Income taxes

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(5) Significant Accounting Judgments, Estimation, Assumptions, and Sources of Estimation Uncertainty

(6) Explanation to Significant Accounts

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(h) Investment property

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

(k) Long-term borrowings

(l) Lease liabilities

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

1. Real estate leases

2. Other leases

(m) Operating Leases

(n) Employee benefits

1. Defined benefit plans

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

2. Defined contribution plans

3. Provisions for Employee Benefits

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

(p) Capital and reserves

1) Legal reserve

2) Special reserve

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

3) Earnings Distribution

(q) Earnings per share

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) June 30, 2023 and 2022

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

ZIPPY Interim / Quarterly Report 2023