Consolidated Financial Statements 2024

Concord Securities Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2024 and 2023 and Independent Auditors' Report

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2024 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 "Consolidated Financial Statements." Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

Company name: Concord Securities Co., Ltd. Chairman: CHENG, TA-YU

Date: March 11, 2025

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The Board of Directors and the Shareholders Concord Securities Co., Ltd.

1 10016 @JL1/a& t?f-@100 20@

DeloiKe & Touche

20F, Taipei Nan Shan Plaza No. 100, Songren Rd.,

Xinyi Dist., Taipei 110016, Taiwan

Tel :+886 (2) 2725-9988

Fax:+886 (2) 4051-6888

https://www.detoitte.com.tw

We have audited the accompanying consolidated financial statements of Concord Securities Co., Ltd. and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements").

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, other regulations, International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

2 -

The key audit matter of the Group's consolidated fmancial statements for the year ended December 31, 2024 is as follows:

Accurac› of Brokerage Handlinu Fee Revenue

The calculation of discounts on brokerage handling fee revenue is complicated since it varies based on counterparties, ways of placing orders and transaction volume, and any calculation errors in the discounts will affect the accuracy of brokerage handling fee revenue. Therefore, the accuracy of brokerage handling fee revenue is identified as a key audit matter.

Refer to Notes 4, 27 and 32 to the consolidated financial statements for accounting policies and disclosures related to brokerage handling fee revenue.

The control procedures for the input of discount rates have a significant impact on the calculation accuracy of brokerage handling fee revenue. We evaluated the design and implementation effectiveness of the recognition of discounts on brokerage handling fee revenue procedures and the related controls by performing tests of controls. Moreover, we verified the correctness of the recorded brokerage handling fee revenue by performing our own calculations on sampled transactions.

We did not audit the financial statements of some of the Group's subsidiaries and investments accounted for using equity method included in the Group's consolidated financial statements for the years ended December 31, 2024 and 2023, but such financial statements were audited by other auditors. Therefore, our opinion, insofar as it relates to the amounts and other relevant information of the aforementioned investee companies as disclosed in the notes, is based solely on the reports of other auditors. As of December 31, 2024 and 2023, the total assets of these subsidiaries and investments in associates amounted to $587,527 thousand and $580,106 thousand, accounting for 1.31% and 1.44% of consolidated total assets, respectively; for the years ended December 31, 2024 and 2023, no operating revenue was recognized, and the share of the comprehensive income of these associates accounted for using equity method amounted to $7,602 thousand and $25,575 thousand, which accounted for 0.60% and 2.47% of the consolidated total comprehensive income, respectively.

We have also audited the parent company only financial statements of Concord Securities Co., Ltd. as of and for the years ended December 31, 2024 and 2023 on which we have issued an unmodified opinion with Other Matter paragraph.

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 Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, and other regulations, IFRS, IAS, IFRIC and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the audit committee, are responsible for overseeing the Group's financial reporting process.

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

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

4

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2024 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors' report are Cheng-Hsiu Chang and Pi-Yu Chuang.

Deloitte & Touche Taipei, Taiwan Republic of China

March 11, 2025

Notice to Readers

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

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

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CONCORD SECURITIES CO., LTD. AND SUBSIDIARIES

CONSOLBATEDBALANCESbIETS DECEMBER3I,2024AND202J

(ToThousaodsoFNewTuiwaoDO)lzn)

2024 2023

CURRENT LIABILITIES

NON-C U RRENT LIABILITIES

EQUITY AUfRI OUTABLE TO OfNERS OF THE CORPORATION (Notes 4, 8, 14, 25, 26, 28 and 31)

Share capital

Reta ined earn ings

UnapprupnRted retained earnings

6 *4 J 777

i 7s 33 i

14 15

239,393 I

1,087,890 3

979 6°9 2

- 6 -

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

(Continued)

- 7 -

CONCORD SECURITIES CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

2024

Amount

2023

Amount

OPERATING PROFIT

NON-OPERATING INCOME AND EXPENSES

(Notes 4 and 27)

Share of profit or loss of associates accounted for

$ 978,872 25 $ 807,270 23

14, 25, 26, 28 and 31)

Items that will not be reclassified subsequently to profit or loss

Gains (losses) on remeasurement of defined benefit plans

Unrealized gains (losses) on investments in equity instruments measured at fair value through other comprehensive income

Share of other comprehensive income or loss of associates accounted for using equity method

Income tax relating to items that will not be reclassified subsequently to profit or loss

Items that may be reclassified subsequently to profit or loss

Exchange differences on the translation of foreign operations

Unrealized gains (losses) on investments in debt instruments measured at fair value through

1,939

168,161

(34)

(388)

169,678

3,787

(25,198)

4 (702)

3,789

5,040 -

4 (17,071)

(449)

other comprehensive income

(14.749) -

(10,962) -

47.228 1

46.779 1

Other comprehensive income for the year, net of income tax

158,716

4 29.708

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

$ 1 256.,689 32 $ 1,033"975 30

(Continued)

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

Non-controlling interests

TOTAL COMPREHENSIVE INCOME

5.492 - 4,515

$ 1,097,973 28 $ 1 004.267 29

EARNINGS PER SHARE (Note 29)

Basic Diluted

?$ 1.60

$ 1 60

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

(With Deloitte & Touche auditors' report dated March 11, 2025) (Concluded)

CONCORD SECURITIES CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

Equity Attributable to Owners of the Corporation '{Notes 4, 8, 14, 25, 26, 28 and 31)

Other Equity

Unrealized Gains on

Retained Earnings Exchange

Unappropriated Differences on Earnings the Translation

tAceumulated of Foreign

Share Capital Capital Surplus Legal Reserve Special Reserve Deficits) Operations

Financial Assets at Fair Value Through Other Comprehensive

Income Total

Non-controlling

Interests Total Equity

BALANCE AT JANUARY 1, 2023 $ 5,944,550 $ 175,320 $ 265,503 $ 1,087,890 $ (26,110) $ 1,614 $ 389,567 $ 7,838,334 $ 59,437 $ 7,897,771

Compensation for 2022 deficits

Legal reserve used to offset accumulated deficits

(26,110)

26,110

Other changes in capital surplus Unpaid dividends

Net profit for the year ended December 31, 2023

Other comprehensive income (loss) for the year ended December 31, 2023, net of income tax

11

999,752

- 20 12 )

(449)

51. 1 24

1 l

999,752

30.557.

4,515

{844}

1 ]

1,004,267

?9 708

Total comprehensive income (loss) for the year ended December 31, 2023

979.629

(449)

31.124

1. 030.304

3.671

1 033 978

Change in non-contro1ling interests

(3.562)

(3.56?)

BALANCE AT DECEMBER 31, 2023

Appropriation for 2023 earnings Legal reserve

Special reserve

Cash dividends - ordinary shares Share dividends - ordinary shares

Net profit for the year ended December 31, 2024

5,944,550

297,227

175,331

239,393

97,962

1,087,890

195,927

979,629

(97,962)

(195,927)

(386596)

(297,227)

1,092,481

1,165

440,691

8,868,649

(386,396)

1,092,481

59,546

5,492

8,928,195

(386,396)

1,097,973

Other comprehensive income for the year ended December 31, 2024, net

of income tax -- -

- 1 538

3 787

151 317

156.642

? 074

158 716

Total comprehensive income for the year ended December 31, 2024

- - - 1 094 019

3.787

151.317

1.249, 1?3

7. 566

1 256 689

Change in non-controlling interests - -

(3 135)

13 135)

BALANCE AT DECEMBER 31, 2024 $ 6 241 777 $ 175 331 $ 337 355 $ 1 *83 812 $ 1,096,136 $ 4,952 $ 59* ,008 $ 9 731 376 $ 6.3 977 $ 9 795,353

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche auditors' report dated March 11, 2025)

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(In Thousands of New Taiwan Dollars)

(Continued)

CONCORD SECURITIES CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

Acquisition of financial assets at fair value through other comprehensive income

Proceeds from disposal of financial assets at fair value through other

(2,030,115) (1,130,755)

comprehensive income

Proceeds from capital reduction of financial assets at fair value through other comprehensive income

Acquisition of property and equipment

Proceeds from disposal of property and equipment Decrease in clearing and settlement fund Decrease in refundable deposits

Acquisition of intangible assets Increase in other non-current assets Dividends received

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Increase in short-term borrowings Increase in commercial paper payable Increase in guarantee deposits received Payments of lease liabilities

Cash dividends paid

Change in non-controlling interests Unpaid dividends

Net cash generated from financing activities

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

1,579,348

3,509

(22,781)

160

1,553

21,752

(18,322)

(4,052)

25.798

1443,150)

409,200

1,765,000

10

(49,314)

(386,396)

(3,135)

1,735,365

8.325

1,081,902

3,509

(40,082)

1,936

14,065

(10,166)

(4,084)

24,274

159,401)

119,500

530,000

(53,091)

(3,562)

11

592.858

353

(Continued)

CONCORD SECURITIES CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

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

(With Deloitte & Touche auditors' report dated March 11, 2025) (Concluded)

1. GENERAL INFORMATION

   Concord Securities Co., Ltd. (the "Corporation") was incorporated on July 25, 1990 and started operations on December 4, 1990. It engages in transactions such as (a) securities proprietary and brokerage; (b) underwriting; (c) financing customers' acquisition and short-sales; (d) providing agency services for share affairs; (e) assisting in futures trading; (f) other business as approved by relevant authorities. Its shares began trading on the Taipei Exchange, formerly called the GreTai Securities Market (the over-the-counter Securities Exchange of the Republic of China, or the "ROC OTC"), in December 1996.

   The Corporation was further authorized to engage in futures brokerage business on February 2, 1998. However, when its subsidiary, Concord Futures Corp., commenced operations on May 1, 2000, the Corporation transferred all its futures trading business to its subsidiary and provided necessary professional assistance. In addition, the Corporation, according to the ruling numbered Tai-Tsar-Cheng (7) 0910147503 from the Ministry of Finance, was authorized to engage in dealing of futures contracts. Nevertheless, the Corporation terminated dealing of futures contracts on May 2, 2014, according to Rule No. 1030014785 issued by the Financial Supervisory Commission (FSC).

   As of December 31, 2024, the Corporation had 15 branches and an offshore securities unit supporting its head office.

   The consolidated financial statements are presented in the Corporation's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

   The consolidated financial statements were approved by the Corporation's board of directors and issued on March 11, 2025.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

   1. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

      The Group assessed that the application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Group's accounting policies.

   2. The IFRS Accounting Standards endorsed by the FSC for application starting from 2025

      Effective Date

      New, Amended and Revised Standards and Interpretations Announced by IASB

      Amendments to IAS 21 "Lack of Exchangeability" Amendments to IFRS 9 and IFRS 7 "Amendments to the

      Classification and Measurement of Financial Iristruments" - the amendments to the application guidance of classification of financial assets

      January 1, 2025 (Note 1)

      January 1, 2026 (Note 2)

      Note 1: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments to IAS 21, the Group shall not restate the comparative information and shall recognize any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or, if applicable, to the cumulative amount of translation differences in equity as well as affected assets or liabilities.

      Note 2: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2026. It is permitted to apply these amendments for an earlier period beginning on January 1, 2025. An entity shall apply the amendments retrospectively but is not required to restate prior periods. The effect of initially applying the amendments shall be recognized as an adjustment to the opening balance at the date of initial application. An entity may restate prior periods if, and only if, it is possible to do so without the use of hindsight.

      The Group has assessed that the application of above standards and interpretations will not have a material impact on the Group's financial position and financial performance.

      C. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

      Effective Date

      New, Amended and Revised Standards and Interpretations Announced by IASB (Note)

      Annual Improvements to IFRS Accounting Standards - Volume 11 January 1, 2026 Amendments to IFRS 9 and IFRS 7 "Amendments to the January 1, 2026

      Classification and Measurement of Financial Instruments" - the amendments to the application guidance of derecognition of financial liabilities

      Amendments to IFRS 9 and IFRS 7 "Contracts Referencing January 1, 2026 Nature-dependent Electricity"

      Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets To be determined by IASB between an Investor and its Associate or Joint Venture"

      IFRS 17 "Insurance Contracts" January 1, 2023

      Amendments to IFRS 17 January 1, 2023

      Amendments to IFRS 17 "Initial Application of IFRS 17 and IFRS 9 - January 1, 2023 Comparative Information"

      IFRS 18 "Presentation and Disclosure in Financial Statements" January 1, 2027 IFRS 19 "Subsidiaries without Public Accountability: Disclosures" January 1, 2027

      Note: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

      WRS 18 "Presentation and Disclosure in Financial Statements"

      IFRS 18 will supersede IAS 1 "Presentation of Financial Statements". The main changes comprise:

      • Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.

      • The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

      • Provides guidance to enhance the requirements of aggregation and disaggregation. The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label.

      • Disclosures on Management-defined Performance Measures (MPMs). When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

      Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION Statement of Compliance

   The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, other regulations and IFRS Accounting Standards as endorsed and issued into effect by the FSC.

   Basis of Preparation

   The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit assets/liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

   The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

   1. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

   2. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

   3. Level 3 inputs are unobservable inputs for an asset or liability.

      Classification of Current and Non-current Assets and Liabilities

      Current assets include:

      1. Assets held primarily for the purpose of trading;

      2. Assets expected to be realized within 12 months after the reporting period; and

      3. Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

      Current liabilities include:

      1. Liabilities held primarily for the purpose of trading;

      2. Liabilities due to be settled within 12 months after the reporting period; and

      3. Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

         Assets and liabilities that are not classified as current are classified as non-current.

         Basis of Consolidation

         The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (i.e., its subsidiaries). When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

         Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Corporation.

         See Note 13 and Table I for detailed information on subsidiaries (including percentages of ownership and main businesses).

         Foreign Currencies

         In preparing the financial statements of each individual entity, transactions in currencies other than the entity's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

         At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

         Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

         For the purpose of presenting consolidated financial statements, the financial statements of the Group's foreign operations (including subsidiaries) that are prepared using functional currencies which are different from the currency of the Corporation are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

         Investments in Associates

         An associate is an entity over which the Group has significant influence and which is not a subsidiary. The Group uses the equity method to account for its investments in associates.

         Under the equity method, investments in an associate is initially recognized at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate. The Group also recognizes the changes in the Group's share of the equity of associates attributable to the Group.

         Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

         When the Group subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group's proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If the Group's ownership interest is reduced due to its additional subscription of the new shares of associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using equity method is insufficient, the shortage is debited to retained earnings.

         The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

         Property and Equipment

         Property and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

         Except for freehold land which is not depreciated, the depreciation of property and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

         On derecognition of an item of property and equipment, the difference between the disposal proceeds and the carrying amount of the asset is included in profit or loss.

         Investment Property

         Investment property is properties held to earn rental and/or for capital appreciation.

         Investment property is initially measured at cost, including transaction costs. Subsequent to initial recognition, investment property is measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

         For a transfer of classification from investment property to property, the deemed cost of the property for subsequent accounting is its carrying amount at the commencement of owner-occupation.

         For a transfer of classification from property to investment property, the deemed cost of an item of property for subsequent accounting is its carrying amount at the end of owner-occupation.

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

         Intangible Assets

         Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are measured at cost less accumulated impairment loss.

         On derecognition of an intangible assets, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

         Impairment of Property and Equipment, Investment Property, Right-of-use Assets and Intangible Assets

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

         Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

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

         When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

         Financial Instruments

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

         Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

         1. Financial assets

            All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

            1. Measurement categories

               Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in debt instruments and equity instruments at FVTOCI.

               1. Financial assets at FVTPL

                  Financial assets are classified as at FVTPL when such financial assets are mandatorily measured at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

                  Financial assets at FVTPL are subsequently measured at fair value, and any dividends, interest earned and remeasurement gains or losses on such financial assets are recognized in profit or loss. Fair value is determined in the manner described in Note 31: Financial Instruments.

               2. Financial assets at amortized cost

                  Financial assets that meet the following conditions are subsequently measured at amortized cost:

                  1. The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

                  2. The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

                     Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, accounts receivable at amortized cost, other receivables and other financial assets, etc., are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

                     Interest income is calculated by applying the effective interest rate, etc., to the gross carrying amount of such a financial asset, except for:

                     1. Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and

                     2. Financial asset that is not credit impaired on purchase or origination but has subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

                     A financial asset is credit impaired when one or more of the following events have occurred: significant financial difficulty of the issuer or the borrower; breach of contract, such as a default; it is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or the disappearance of an active market for that financial asset because of financial difficulties.

                     Cash equivalents include time deposits, excess future trading margin and short-term bills with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting shori-term cash commitments.

               3. Investments in debt instruments at FVTOCI

                  Debt instruments that meet the following conditions are subsequently measured at FVTOCI:

                  1. The debt instrument is held within a business model whose objective is achieved by both the collecting of contractual cash flows and the selling of such financial assets; and

                  2. The contractual terms of the debt instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

                     Investments in debt instruments at FVTOCI are subsequently measured at fair value. Changes in the carrying amounts of these debt instruments relating to changes in foreign currency exchange rates, interest income calculated using the effective interest method and impairment losses or reversals are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when the investment is disposed of.

               4. Investments in equity instruments at FVTOCI

                  On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

                  Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

                  Dividends on these investments in equity instruments are recognized in profit or loss when the Group's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

            2. Impairment of financial assets

               The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable) and investments in debt instruments that are measured at FVTOCI at the end of each reporting period.

               The Group always recognizes lifetime expected credit losses (ECLs) for accounts receivable. For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

               Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

               The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and the carrying amounts of such financial assets are not reduced.

            3. Derecognition of financial assets

               The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

               On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss which had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without reclassifying to profit or loss.

         2. Equity instruments

            Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

            Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs.

            The repurchase of the Corporation's own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Corporation's own equity instruments.

         3. Financial liabilities

            1. Subsequent measurement

               Except for financial liabilities are measured at FVTPL, all financial liabilities are measured at amortized cost using the effective interest method.

               Financial liabilities are classified as at FVTPL when such financial liabilities are either held for trading or are designated as at FVTPL.

               Financial liabilities held for trading are stated at fair value, and any interest paid on such financial liabilities is recognized in finance costs; any remeasurement gains or losses on such financial liabilities are recognized in profit or losses. Fair value is determined in the manner described in Note 31.

               A financial liability may upon initial recognition be designated as at FVTPL only in one of the following circumstances:

               1. Such designation eliminates or significantly reduces a measurement or recognition mismatch that would otherwise arise; or

               2. The financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and has performance evaluated on a fair value basis, in accordance with the Corporation's documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or

               3. The contract contains one or more embedded derivatives so that the entire combined contract (asset or liability) can be designated as at FVTPL.

                  For a financial liability designated as at FVTPL, the amount of changes in fair value attributable to changes in the credit risk of the liability is presented in other comprehensive income and will not be subsequently reclassified to profit or loss. The remaining amount of changes in the fair value of that financial liability is presented in profit or loss. The gain or loss accumulated in other comprehensive income will be transferred to retained earnings when the financial liability is derecognized. If this accounting treatment related to credit risk would create or enlarge an accounting mismatch, all changes in the fair value of the liability are presented in profit or loss. Fair value is determined in the manner described in Note 31.

            2. Derecognition of financial liabilities

         The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

      4. Derivative financial instruments

      Derivative financial instruments the Group engaged in include call (put) warrants, futures, options, convertible bond asset swaps, structured instruments, bond options, etc.

      Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument; in which event, the timing of the recognition in profit or loss depends on the nature of the hedging relationship. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

      The margin deposits paid on purchase or sale of futures contracts are recognized as assets. Any valuation gain or loss on opening positions calculated using the settlement price announced by the futures exchanges and any gain or loss on settlement is recognized in profit or loss at the end of each reporting period. The margins are adjusted accordingly.

      Premiums paid (received) on purchase (sale) of options contracts are recognized as assets (liabilities). Any valuation gain or loss calculated using the settlement price announced by the futures exchanges and any gain or loss on settlement is recognized in profit or loss at the end of each reporting period.

      Repurchase and Resale Transactions

      Resale and repurchase bond transactions with financing are recognized as "bond investments under resale agreements" and "liabilities for bonds with attached repurchase agreements", respectively, and the related interest income and finance cost are accounted on the basis of the contracted interest rate.

      Margin Loans and Securities Financing

      Margin loans pertain to the provision of funds to customers for them to buy securities and are recognized as "margin loans receivable." The securities bought by customers are used to secure these loans and are recorded through memo entries. The collateral securities are returned when the loans are repaid.

      The refinancing of margin loans with securities finance companies is recorded as "refinancing borrowings," which are collateralized by securities bought by customers.

      The collateral securities are disposed of by the Group when their fair value falls below a pre-agreed level and the customer fails to maintain this level. If the proceeds of the disposal of collateral security cannot cover the balance of the loan and the customer cannot timely settle the deficiency, the balance of the margin loan is reclassified as "overdue receivables." If a collateral security cannot be sold in the open market, the balance of the loan is reclassified as "other receivables" or "overdue receivables." Allowance for impairment loss will be recognized after evaluating the uncollectible amounts.

      Stock loans are securities lent to customers for short selling. The deposits received from customers on securities lent out are credited to "securities financing refundable deposits." The securities sold short are recorded using memo entries. The proceeds of the sales of securities lent to customers less any dealer's commission, financing charges and securities exchange tax are recorded under "deposits payable for securities financing". When the customers return the stock certificates to the Group, the Group gives the deposits received and the proceeds of the sales of securities back to customers.

      Securities Business Money Lending and Securities Lending

      The securities used in the securities business money lending and securities lending are operating securities, borrowed securities from the Taiwan Stock Exchange (TWSE) or refinancing collateral. Operating securities will be transferred to the account "securities lent" if they are used to lend to others. Securities lent should be measured at fair value at the end of each reporting period. Valuation gains or losses of securities lent are recorded in the same accounts used before the reclassification. If borrowed securities from the TWSE are used to lend to others, the Group will recognize the transaction through a memo entry. If the refinancing collateral are used to lend to others, the Group will not recognize any asset on the ground the collateral belong to the customers.

      The Group recognizes the amount lent to investors in the securities business as "receivables of securities business money lending" two business days after the transaction date, and accrues bad debt expense for the assessed uncollectible receivables at the end of the reporting period. The related collateral is recognized through memo entry and returned when the transactions are settled. The revenue from customers on securities business money lending and securities lending are accounted for as handling fee revenues from securities business money lending.

      Securities collateral received in the lending and borrowing business are recognized through memo entry otherwise cash collateral received are recognized as "securities lending refundable deposits." The amount deposited in TWSE for securities lending and borrowing business is accounted as "security borrowing margin." Security borrowing margin or security lending refundable deposits are returned or paid when the borrowing securities are returned. The related service revenues are accounted as income from securities lending.

      Customer Margin Account and Futures Traders Equity

      The subsidiary, Concord Futures, engages in futures brokerage and receives margin deposits from customers as required under existing regulations. The proceeds are deposited in banks and debited to "customer margin account" and credited to "futures traders equity". The fair value is adjusted daily according to the difference between the carrying amount and the settlement price. When losses result in futures traders equity to have debit balance, the debit balance is recognized as futures exchanges margins receivable. Futures traders equity accounts cannot be offset against each other unless the equity accounts are of the same type and belong to the same trader.

      Operation Guarantee Deposits

      According to the Rules Governing Securities Firms and Rules Governing Futures Commission Merchants, operation guarantee deposits should be made to the specific account designated by the Securities and Futures Bureau (SFB), FSC when a corporation registers to engage in the securities or futures business or when an existing corporation sets up new branches. The Corporation may elect to deposit in the form of cash, government bonds or financial bonds.

      Clearing and Settlement Fund

      As required by the Rules Governing Securities Firms, securities firms engaged in the proprietary and brokerage business are required to make clearing and settlement fund deposits with the TWSE or the Taipei Exchange before or after operations.

      Provisions

      Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. The Group's provisions are primarily short-term paid vacation entitlements and lease restoration costs.

      Revenue Recognition

      The Group identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

      Service income is recognized when services are provided. Leases

      At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

      1. The Group as lessor

         Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

      2. The Group as lessee

      The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

      Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and accumulated impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

      Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

      Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments and payments of penalties for terminating a lease if the lease term reflects such termination, less any lease incentives receivable. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee's incremental borrowing rate will be used.

      Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments resulting from a change in a lease term, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

      Employee Benefits

      1. Short-term employee benefits

         Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

      2. Retirement benefits

      Payments to defined contribution retirement plans are recognized as expenses when employees have rendered services entitling them to the contributions.

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

      Net defined benefit assets (liabilities) represent the actual surplus (deficit) in the Group's defined benefit plans.

      Taxation

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

      1. Current tax

         Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

         According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

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

      2. Deferred tax

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

      Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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

      The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

      Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

      G. Current and deferred taxes

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

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

   When developing material accounting estimates, the Group considers the possible impact of on the cash flow projection, growth rates, discount rates, profitabilities and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

   Key Sources of Estimation Uncertainty

   Fair value of financial instruments with no Oublic rluotes in an active market

   The Group determines the fair value of financial instruments with no public quotes in an active market using valuation methods. Refer to Note 31 for the related assumptions, estimates and book value.

6. CASH AND CASH EQUIVALENTS

   December 31

   2024		2023
   Cash on hand and working fund	$ 211	$ 218
   Checking and demand deposits	635,749	740,357
   Foreign currency deposits	370,175	544,805
   Cash equivalents
   Time deposits with original maturities within 3 months		16,888
   Excess futures trading margin	462,920	438,463
   Short-term bills	149,933

   $ 1 618.988 S l"740 731

   The market rates for time deposits with original maturities within 3 months and short-term bills at the end of each reporting period were summarized as follows:

   December 31

   	2024	2023
   Time deposits with original maturities within 3 months Short-term bills	1.41%	5.10%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

   December 31

   	2024	2023
   Financial assets at FVTPL - current
   Financial assets mandatorily measured at FVTPL Open-end funds and money market instruments	$ 153,225	$ 142,452
   Operating securities - proprietary	10,293,733	9,713,000
   Operating securities - underwriting	31,441	34,032
   Operating securities - hedging	1,433,811	1,020,490
   Futures margin - own funds	18,887	45,954
   Derivative assets - OTC Value of asset swap IRS contracts	29,298	9,951
   Asset swap options	129,669	254.272
   	$ 12.,090,064	$ 11.220. 151

   (Continued)

   December 31

   2024 2023

   Financial assets at FVTPL - non-current

   Financial assets mandatorily measured at FVTPL Operating securities - proprietary

   Warrants liabilities	$ 16,500	$ 1,056,815
   Warrants redeemed	(16,289)	(1,017,002)
   Sell options - TAIFEX	-	405
   Liabilities on sale of borrowed securities - hedging	197,768	95,853
   Liabilities on sale of borrowed securities - non-hedging	451,462	253,159
   Derivative liabilities - OTC Value of asset swap IRS contracts	12,503	28,389
   Asset swap options	857,154	992,679
   Structured instruments	13,810	11,742
   Equity derivatives	291,206	146,630
   Financial liabilities designated as at FVTPL	1,824,114	1,568,670

   Financial liabilities at FVTPL - current Financial liabilities held for trading

   S - S 10 041

   Structured instruments

   658,504

   415,640

   S 2 482 618 S 1.984 310

   Financial liabilities at FVTPL - non-current

   Financial liabilities designated as at FVTPL Structured instruments

   1. Open-end funds and money market instruments

$ 1 039,128 $ 1,177,976

(Concluded)

December 31