Panjit International : 2023Q3 CONSOLIDATED FINANCIAL STATEMENT

PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT ACCOUNTANTS

FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER, 2023 AND 2022

Address: No.24, Gangshan N. Rd., Gangshan Dist., Kaohsiung City, Taiwan, R.O.C.

Telephone: [phone]

The reader is advised that these financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese financial statements shall prevail.

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Review Report of Independent Accountants

To: PANJIT INTERNATIONAL INC.

Introduction

We have reviewed the accompanying consolidated balance sheets of PANJIT INTERNATIONAL INC. (the "Company") and its subsidiaries as of 30 September 2023 and 2022, the related consolidated statements of comprehensive income for the three-month and nine-month periods ended 30 September 2023 and 2022 and consolidated statements of changes in equity and cash flows for the nine-month periods ended 30 September 2023 and 2022, and notes to the consolidated financial statements, including the summary of significant accounting policies (together "the consolidated financial statements"). Management is responsible for the preparation and fair presentation of these 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" as endorsed and became effective by Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 2410, "Review of Financial Statements". A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in 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 explained in Note 4, the financial statements of certain insignificant subsidiaries were not reviewed by independent accountants. Those statements reflected total assets of NT$4,296,442 thousand and NT$4,937,272 thousand, constituting 15% and 17% of the consolidated total assets, and total liabilities of NT$814,282 thousand and NT$1,307,348 thousand, constituting 6% and 9% of the consolidated total liabilities as of 30 September 2023 and 2022, respectively; and total comprehensive income of NT$35,549 thousand, NT$186,580 thousand, NT$185,359 thousand and NT$713,438 thousand, constituting 6% , 16%, 29% and 35% of the consolidated total comprehensive income for the three-month and nine-month periods ended 30 September 2023 and 2022, respectively. As explained in Note 6. (8), the financial statements of certain associates and joint ventures accounted for under the equity method were not reviewed by independent accountants. Those associates and joint ventures under equity method amounted to NT$139,197 thousand and NT$152,890 thousand as of 30 September 2023 and 2022, respectively. The related shares of profits from the associates and

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joint ventures under the equity method amounted to (NT$1,796) thousand, (NT$5,865) thousand, NT$12,773 thousand and NT$5,120 thousand for the three-month and nine-month periods ended 30 September 2023 and 2022, respectively. The information related to above subsidiaries, and associates and joint ventures accounted for under the equity method disclosed in Note 13 was also not reviewed by independent accountants.

Qualified Conclusion

Based on our reviews and the review reports of other independent accountants (please refer to the Other Matter paragraph of our report), except for the effect of such adjustments, if any, as might have been determined to be necessary had the financial statements of certain insignificant subsidiaries, associates and joint ventures accounted for using equity method and the information been reviewed by independent accountants described in the preceding paragraph, 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 Company and its subsidiaries as at 30 September 2023 and 2022, and their consolidated financial performance for the three-month and nine-month periods ended 30 September 2023 and 2022, and their consolidated cash flows for the nine-month periods ended 30 September 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" as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

Other Matter - Making Reference to the Reviews of Other Independent Accountants

We did not review the financial statements of certain investment accounted for under the equity method, which reflected the associates and joint ventures under equity method in the amount of $1,555,829 thousand and $1,570,401 thousand, constituting 5% and 5% of consolidated total assets as of 30 September 2023 and 2022, and the related shares of profits from the associates and joint ventures under the equity method of $34,024 thousand, $75,456 thousand, $28,269 thousand and $68,707 thousand, constituting 9%, 8%, 5% and 4% of consolidated pretax income for the three- month and nine-month periods ended 30 September 2023 and 2022, respectively. Those financial statements were reviewed by other independent accountants, whose reports thereon have been furnished to us, and our review results are based solely on the reports of the other independent accountants.

Ernst & Young Taiwan

November 9, 2023

Notice to Readers

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

Accordingly, the accompanying parent company only financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

September 30, 2023, December 31, 2022, and September 30, 2022

(Expressed in Thousand of New Taiwan Dollars)

Assets		Notes		September 30, 2023			December 31, 2022			September 30, 2022
		Amount		%			Amount		%			Amount		%
Current asset
Cash and cash equivalents		6(1)		$2,816,329		10		$3,033,568		10		$2,510,798		8
Financial assets at fair value through profit or loss - current	6(2)		2,417,231		9		2,993,980		10		3,162,598		11
Notes receivable, net		6(5),(21)		712,377		2		352,859		1		526,611		2
Trade receivable, net		6(6),(21)		3,880,190		14		3,360,160		12		3,931,942		13
Trade receivable-related parties, net		6(6), (21)/7		55,585		-		56,700		-		68,539		-
Other receivables, net				165,819		1		146,057		-		179,234		1
Other receivables-related parties, net		7		2,222		-		3,352		-		4,255		-
Inventories, net		6(7)		3,158,084		11		3,754,265		13		3,687,276		12
Prepayments				890,655		3		758,487		3		540,045		2
Other current assets		8		134,167			-			150,376			1			293,309			1
Total current assets				14,232,659		50		14,609,804		50		14,904,607		50
Non-current assets
Financial assets at fair value through profit or loss - non-current	6(2)		43,701		-		37,485		-		38,674		-
Financial assets at fair value through other comprehensive income - non-current	6(3)		534,495		2		521,889		2		1,254,988		4
Financial assets measured at amortized cost-non-current	6(4)		27,489		-		26,622		-		25,465		-
Investments accounted for using the equity method	6(8)		2,029,265		7		2,038,347		7		2,029,596		7
Property, plant, and equipment		6(9)		7,821,673		27		7,411,293		25		6,574,413		22
Right-of-use assets		6(22)		1,258,417		4		1,296,176		5		1,281,840		4
Intangible assets		6(10),(11)		1,639,735		6		1,661,358		6		1,625,932		5
Deferred tax asset				369,591		1		350,643		1		469,732		2
Prepayment for equipments				136,955		-		443,341		2		889,257		3
Refundable deposits		8		469,660		2		637,470		2		629,548		2
Other non-current assets, others		8		139,557			1			132,418			-			138,536			1
Total non-current assets				14,470,538			50			14,557,042			50			14,957,981			50
Total assets				$28,703,197			100			$29,166,846			100			$29,862,588			100
(continued)	(The accompanying notes are an integral part of the consolidated financial statements.)

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PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

September 30, 2023, December 31, 2022, and September 30, 2022

(Expressed in Thousand of New Taiwan Dollars)

Liabilities and equity	Notes		September 30, 2023			December 31, 2022			September 30, 2022
	Amount		%			Amount		%			Amount		%
Current liabilities
Short-term borrowings	6(12)		$3,277,747		12		$2,769,949		10		$5,229,183		18
Financial liabilities at fair value through profit or loss - current	6(13)		4,831		-		-		-		6,804		-
Contractual liabilities - current	6(20)		23,874		-		10,041		-		6,358		-
Notes payable	6(14)		690,154		2		605,905		2		805,333		3
Trade payable			1,522,188		6		1,417,681		5		1,379,539		5
Trade payable-related parties	7		70,849		-		59,068		-		73,435		-
Other payables			1,377,994		5		1,742,971		6		1,508,511		5
Other payables - related parties	7		37,945		-		37,903		-		38,431		-
Current tax liabilities			277,276		1		295,814		1		274,058		1
Lease liabilities - current	6(22) / 7		55,285		-		52,735		-		51,974		-
Long-term borrowings, current portion	6(16) / 8		507,000		2		478,875		2		369,583		1
Other current liabilities	7		108,442			-			76,945			-			99,757			-
Total current liabilities			7,953,585		28		7,547,887		26		9,842,966		33
Non-current liabilities
Long-term borrowings	6(16) / 8		5,315,373		19		6,033,741		21		4,318,878		15
Deferred tax liabilities			102,937		-		91,895		-		110,429		-
Lease liabilities - non-current	6(22) / 7		297,838		1		321,641		1		332,257		1
Long-term deferred revenue	6(15)		86,811		-		98,807		-		104,089		-
Defined benefit liabilities-non-current			62,943		-		66,945		-		93,830		-
Other non-current liabilities			103,368			-			96,695			-			112,573			1
Total non-current liabilities			5,969,270			20			6,709,724			22			5,072,056			17
Total liabilities			13,922,855		48		14,257,611		48		14,915,022		50
Equity attributable to the parent company
Capital stock
Common stock	6(18)		3,821,149		13		3,828,149		13		3,828,149		13
Capital surplus	6(18)		6,005,508		21		6,016,861		21		6,016,123		20
Retained earnings	6(18)
Legal reserves			729,336		3		505,733		2		505,733		2
Special reserves			717,237		2		717,237		2		717,237		2
Unappropriated earnings			2,438,005			9			3,116,721			11			2,521,642			8
Total retained earnings			3,884,578			14			4,339,691			15			3,744,612			12
Other components of equity			(269,779)		(1)		(552,617)		(2)		118,576		1
Treasury stock	6(18)		-			-			(16,507)			-			(16,507)			-
Total equity attributable to the parent company			13,441,456			47			13,615,577			47			13,690,953			46
Non-controlling interests	6(18)		1,338,886			5			1,293,658			5			1,256,613			4
Total equity			14,780,342			52			14,909,235			52			14,947,566			50
Total liabilities and equity			$28,703,197		100		$29,166,846		100		$29,862,588		100

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

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PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the three-month and nine-month periods ended 30 September 2023 and 2022

(Expressed in Thousand of New Taiwan Dollars)

		For the three-month periods ended 30 September		For the nine-month periods ended 30 September
Items	Notes
2023				2022				2023				2022
		Amount		%		Amount		%		Amount		%		Amount		%
Operating revenues	6(20), 7	$3,273,424		100		$3,168,567		100		$9,676,948		100		$10,369,798		100
Operating costs	6(7),(22),(23),7	(2,434,342)		(74)		(2,227,774)		(70)		(7,239,941)		(75)		(7,120,239)		(69)
Gross profit		839,082		26		940,793		30		2,437,007		25		3,249,559		31
Operating expenses	6(21),(22),(23),7
Selling expense		(168,197)		(5)		(171,854)		(5)		(506,818)		(5)		(518,635)		(5)
General and administrative expenses		(225,338)		(7)		(265,063)		(8)		(638,421)		(7)		(810,124)		(7)
Research and development expenses		(205,843)		(7)		(204,621)		(7)		(607,709)		(6)		(507,636)		(5)
Expected credit impairment (losses) gains		(5,182)		-		2,102		-		(1,886)		-		8,382		-
Subtotal		(604,560)		(19)		(639,436)		(20)		(1,754,834)		(18)		(1,828,013)		(17)
Operating income		234,522		7		301,357		10		682,173		7		1,421,546		14
Non-operating income and expenses	6(22),(24),7
Interest income		43,663		1		34,115		1		119,791		1		97,036		1
Other income		30,610		1		22,151		1		82,400		1		76,305		1
Other gains or losses		74,296		2		151,843		5		158,657		2		330,164		3
Financial costs		(47,156)		(1)		(36,827)		(1)		(150,967)		(2)		(94,917)		(1)
Share of profit or loss of associates under equity method	6(8)	34,889		1		49,252		1		81,572		1		105,071		1
Subtotal		136,302		4		220,534		7		291,453		3		513,659		5
Pretax income from continuing operations		370,824		11		521,891		17		973,626		10		1,935,205		19
Income tax expense	6(26)	(59,154)		(2)		(85,965)		(3)		(144,387)		(1)		(326,514)		(3)
Profit from continuing operations		311,670		9		435,926		14		829,239		9		1,608,691		16
Net income		311,670		9		435,926		14		829,239		9		1,608,691		16
Other comprehensive income (loss)	6(25),(26)
Items that will not be reclassified subsequently to profit or loss:
Unrealized gains (losses) from equity instrument investments		(4,295)		-		(102,859)		(3)		20,915		-		(305,234)		(3)
measured at fair value through other comprehensive income
Income tax related to items that will not be reclassified		(138)		-		(944)		-		(257)		-		471		-
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations		313,621		10		315,573		10		292,919		3		755,772		7
Total other comprehensive income (loss), net of tax		309,188		10		211,770		7		313,577		3		451,009		4
Total comprehensive income		$620,858		19		$647,696		21		$1,142,816		12		$2,059,700		20
Total comprehensive income attributable to:
Stockholders of the parent		$243,832		7		$425,637		14		$676,047		7		$1,608,181		16
Non-controlling interests		67,838		2		10,289		-		153,192		2		510		-
		$311,670		9		$435,926		14		$829,239		9		$1,608,691		16
Total comprehensive income attributable to:
Stockholders of the parent		$539,083		16		$628,875		20		$974,072		10		$1,974,675		19
Non-controlling interests		81,775		3		18,821		1		168,744		2		85,025		1
		$620,858		19		$647,696		21		$1,142,816		12		$2,059,700		20
Earnings per share (NT$)	6(27)
Basic earnings per share		$0.64				$1.11				$1.77				$4.21
Diluted earnings per share		$0.64				$1.11				$1.76				$4.20

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

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PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the nine-month periods ended 30 September 2023 and 2022 (Expressed in Thousand of New Taiwan Dollars)

								Equity attributable to owners of parent company
	Capital stock				Retained earnings		Other components of equity
											Exchange		Unrealized Gains or								Non-
											Differences
Items			Capital									Losses on Financial								controlling		Total equity
Common		Legal		Special		Undistributed		Arising on					Treasury
	surplus						Assets Measured at Fair		Others		Total		interests
	stock		reserves		reserves		earnings		Translation				stock
							Value through Other
											of Foreign
												Comprehensive Income
											Operations
Balance as of January 1, 2022	$3,828,149		$6,086,155		$328,134		$717,237		$2,204,637		($821,558)		$570,034		($413)		($16,507)		$12,895,868		$215,134		$13,111,002
Appropriation and distribution of 2021 retained earnings
Legal reserve	-		-		177,599		-		(177,599)		-		-		-		-		-		-		-
Cash dividend	-		-		-		-		(1,146,345)		-		-		-		-		(1,146,345)		-		(1,146,345)
Changes in equity of associates accounted for using the equity method	-		(622)		-		-		-		-		-		-		-		(622)		(43)		(665)
Net income for the nine-month periods ended 30 September 2022	-		-		-		-		1,608,181		-		-		-		-		1,608,181		510		1,608,691
Other comprehensive income (loss) for the nine-month periods ended 30 September 2022	-		-		-		-		-		659,212		(292,718)		-		-		366,494		84,515		451,009
Total comprehensive income (loss)	-		-		-		-		1,608,181		659,212		(292,718)		-		-		1,974,675		85,025		2,059,700
Difference between consideration and carrying amount of subsidiaries acquired or	-		(69,414)		-		-		36,787		-		-		-		-		(32,627)		120,672		88,045
disposed
Changes in ownership interests in subsidiaries	-		4		-		-		-		-		-		-		-		4		(167,990)		(167,986)
Changes in non-controlling interests	-		-		-		-		-		-		-		-		-		-		1,003,815		1,003,815
Disposal of equity instruments investments at fair value	-		-		-		-		(4,019)		-		4,019		-		-		-		-		-
through other comprehensive income
Balance as of September 30, 2022	$3,828,149		$6,016,123		$505,733		$717,237		$2,521,642		($162,346)		$281,335		($413)		($16,507)		$13,690,953		$1,256,613		$14,947,566
Balance as of January 1, 2023	$3,828,149		$6,016,861		$505,733		$717,237		$3,116,721		($418,846)		($133,358)		($413)		($16,507)		$13,615,577		$1,293,658		$14,909,235
Appropriation and distribution of 2022 retained earnings
Legal reserve	-		-		223,603		-		(223,603)		-		-		-		-		-		-		-
Cash dividend	-		-		-		-		(1,146,345)		-		-		-		-		(1,146,345)		-		(1,146,345)
Changes in equity of associates accounted for using the equity method	-		(1,886)		-		-		-		-		-		-		-		(1,886)		-		(1,886)
Net income for the nine-month periods ended 30 September 2023	-		-		-		-		676,047		-		-		-		-		676,047		153,192		829,239
Other comprehensive income (loss) for the nine-month periods ended 30 September 2023	-		-		-		-		-		278,390		19,635		-		-		298,025		15,552		313,577
Total comprehensive income (loss)	-		-		-		-		676,047		278,390		19,635		-		-		974,072		168,744		1,142,816
Retirement of treasury share	(7,000)		(9,507)		-		-		-		-		-		-		16,507		-		-		-
Changes in ownership interests in subsidiaries	-		40		-		-		(2)		-		-		-		-		38		(38)		-
Changes in non-controlling interests	-		-		-		-		-		-		-		-		-		-		(123,478)		(123,478)
Disposal of investments in equity instruments designated at fair value through other	-		-		-		-		15,187		-		(15,187)		-		-		-		-		-
comprehensive income
Balance as of September 30, 2023	$3,821,149		$6,005,508		$729,336		$717,237		$2,438,005		($140,456)		($128,910)		($413)		$-		$13,441,456		$1,338,886		$14,780,342

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

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PANJIT INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

For the nine-month periods ended 30 September 2023 and 2022

(Expressed in Thousand of New Taiwan Dollars)

			For the nine-month periods ended 30
	Items		September
			2023				2022
Cash flow from operating activities
Profit before tax for the current period		$973,626				$1,935,205
Adjustment items:
Revenue and expenses
Depreciation			641,291				531,541
Amortization			32,535				33,944
Expected credit impairment losses (gains)		1,886				(8,382)
Net (gain) on financial assets or liabilities at fair value through profit or loss		(90,643)				(43,490)
Interest expense			150,967				94,917
Interest income			(119,791)				(97,036)
Dividend income			(7,654)				(15,555)
Share of (profit) of associates accounted for using equity method		(81,572)				(105,071)
(Gain) loss on disposal of property, plant and equipment		(752)				349
Loss on disposal of investments		7,955				-
(Gain) on disposal of investments accounted for using equity		-				(72,787)
Reversal of impairment loss on non-financial assets		(52)				(134)
Other items - loss on inventory valuation		178,092				217,289
Other items - other			(9,412)				(3,620)
Subtotal			702,850				531,965
Changes in operating assets and liabilities:
Changes in operating assets:
Financial assets at fair value through profit or loss, mandatorily measured at fair value		789,929				593,322
Notes receivable			(359,518)				52,838
Ttrade receivable			(594,188)				(24,549)
Trade receivable-related parties		1,115				72,150
Other receivables			(19,664)				(27,067)
Other receivables-related parties		1,130				2,269
Inventories			417,229				(1,196,701)
Prepayments			(121,590)				25,096
Other current assets			16,209				9,644
Changes in operating liabilities:
Contract liabilities			13,833				(10,492)
Notes payable			84,249				49,749
Trade payable			104,507				(724,061)
Trade payable-related parties		11,781				(112,815)
Other payables			(205,299)				(229,668)
Other payables-related parties		42				(2,125)
Other current liabilities		31,497				76,287
Net defined benefit liabilities-non-current		(6,291)				(14,436)
Subtotal			164,971				(1,460,559)
Cash generated from operations		1,841,447				1,006,611
Interest received			119,791				97,036
Income tax (paid)			(172,398)				(435,606)
Net cash flows from (used in) operating activities		1,788,840				668,041
(continued)	(The accompanying notes are an integral part of the consolidated financial statements.)

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PANJIT INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

For the nine-month periods ended 30 September 2023 and 2022

(Expressed in Thousand of New Taiwan Dollars)

		For the nine-month periods
Items		ended 30 September
		2023		2022
Cash flows from investing activities:
Proceeds from disposal of financial assets at fair value through other comprehensive income		443		10,881
Acquisition of financial assets at fair value through profit or loss		(6,393)		(39,074)
Acquisition of investments accounted for using the equity method		-		(27,151)
Proceeds from disposal of investments accounted for using equity method		-		97,750
Net cash flow from acquisition of subsidiaries		-		(997,574)
Acquisition of property, plant and equipment		(621,994)		(764,572)
Proceeds from disposal of property, plant and equipments		4,406		9,667
Increase in refundable deposits		-		(88,274)
Decrease in refundable deposits		167,810		-
Acquisition of intangible assets		(5,390)		(25,018)
Increase in other financial assets		(4,998)		-
Decrease in other financial assets		-		5,527
Increase in other non-current assets		(2,141)		(39,828)
Increase in prepayments for business facilities		(207,055)		(706,246)
Dividends received		128,359		143,846
Net cash flows from (used in) investing activities		(546,953)		(2,420,066)
Cash flows from financing activities:
Increase in short-term borrowings		511,876		2,009,021
Increase in long-term borrowings		-		47,981
Repayments of long-term debt		(694,806)		-
Repayments of lease liabilities		(52,444)		(48,864)
Increase in other non-current liabilities		6,672		5,079
Cash dividends		(1,146,345)		(1,146,345)
Acquisition of ownership interests in subsidiaries		-		(753)
Interest paid		(138,297)		(84,476)
Change in non-controlling interests		(123,478)		(293,517)
Net cash flows from (used in) financing activities		(1,636,822)		488,126
Effect of exchange rate changes on cash and cash equivalents		177,696		360,990
Net (decrease) in cash and cash equivalents		(217,239)		(902,909)
Cash and cash equivalents at beginning of period		3,033,568		3,413,707
Cash and cash equivalents at end of period		$2,816,329		$2,510,798

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

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PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2023 AND 2022

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

1. History and organization

PANJIT INTERNATIONAL INC. (the Company) was incorporated on 20 May 1986, under the Company Act of the Republic of China on Taiwan. The Company's registered address is No. 24, Gangshan N. Rd., Gangshan Dist., Kaohsiung City. The principal activities of the Company are to manufacture, process, assemble and to import and export semiconductors. The Company also assembles, trades and transfers technological advancements of machinery parts. The Company also trades resins and paints for semiconductors.

The Company's stock was officially listed for trading on the OTC market on December 22, 1999, and then listed on the Taiwan Stock Exchange on September 17, 2001.

2. Date and procedures of authorization of financial statements for issue

The consolidated financial statements of the Company and its subsidiaries ("the Group") for the nine-month periods ended 30 September 2023 and 2022 were authorized for issue by the Board of Directors on 9 November 2023.

3. Newly issued or revised standards and interpretations

1. Changes in accounting policies resulting from applying for the first time certain standards and amendments

The Group applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission ("FSC") and become effective for annual periods beginning on or after 1 January 2023. The adoption of these new standards and amendments had no material impact on the Group.

1. Standards or interpretations issued, revised or amended, by International Accounting
   Standards Board ("IASB") which are endorsed by FSC, and not yet adopted by the Group as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date
issued by IASB
1	Classification of Liabilities as Current or Non-current-	January 1, 2024
	Amendments to IAS 1
2	Lease liabilities in a sale and leaseback - Amendment to IFRS 16	January 1, 2024
3	Non-current Liabilities with Covenants - Amendments to IAS 1	January 1, 2024
4	Supplier Finance Arrangements - Amendments to IAS 7 or IFRS 7	January 1, 2024
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