2025Q1 consolidated financial statement

Address: No.24, Gangshan N. Rd., Gangshan Dist., Kaohsiung City, Taiwan, R.O.C. Telephone: 886-7-621-3121

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.

To: PANJIT INTERNATIONAL INC.

We have reviewed the accompanying consolidated balance sheets of PANJIT INTERNATIONAL INC. (the "Company") and its subsidiaries as of 31 March 2025 and 2024, the related consolidated statements of comprehensive income for the three-month periods ended 31 March 2025 and 2024 and consolidated statements of changes in equity and cash flows for the three-month periods ended 31 March 2025 and 2024, 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.

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.

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$5,133,030 thousand and NT$5,060,475 thousand, constituting 17% and 17% of the consolidated total assets, and total liabilities of NT$841,161 thousand and NT$833,282 thousand, constituting 6% and 5% of the consolidated total liabilities as of 31 March 2025 and 2024, respectively; and total comprehensive income of (NT$180,446) thousand and (NT$14,951) thousand, constituting (35)% and (3)% of the consolidated total comprehensive income for the three-month periods ended 31 March 2025 and 2024, 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$141,227 thousand and NT$134,584 thousand as of 31 March 2025 and 2024, respectively. The related shares of profits from the associates and joint ventures under the equity method amounted to (NT$953) thousand and (NT$925) thousand for the three-month periods ended 31 March 2025 and 2024, 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.

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 31 March 2025 and 2024, and their consolidated financial performance for the three-month periods ended 31 March 2025 and 2024, and their consolidated cash flows for the three-month periods ended 31 March 2025 and 2024, 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.

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 NT$1,622,807 thousand and NT$1,635,554 thousand, constituting 5% and 6% of consolidated total assets as of 31 March 2025 and 2024, and the related shares of profits from the associates and joint ventures under the equity method of NT$40,238 thousand and NT$28,164 thousand, constituting 10% and 10% of consolidated pretax income, and the related shares of other comprehensive income from the associates and joint ventures under the equity method of NT$8,705 thousand and NT$22,434 thousand, constituting 4% and 9% of consolidated other comprehensive income for the three-month periods ended 31 March 2025 and 2024, 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 May 9, 2025

Notice to Readers

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

Accordingly, the accompanying consolidated financial statements and report of independent auditors are not intended for use by those who are not informed about the accounting principles or Standards on Auditing of Republic of China, and their applications in practice.

English Translation of Financial Statements Originally Issued in Chinese PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

Consolidated Balance Sheets

31 March 2025, 31 December 2024 and 31 March 2024 (Expressed in Thousand of New Taiwan Dollars)

English Translation of Financial Statements Originally Issued in Chinese PANJIT INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the three-month periods ended 31 March 2025 and 2024 (Expressed in Thousand of New Taiwan Dollars)

English Translation of Financial Statements Originally Issued in Chinese PANJIT INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the three-month periods ended 31 March 2025 and 2024 (Expressed in Thousand of New Taiwan Dollars)

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

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English Translation of Financial Statements Originally Issued in Chinese PANJIT INTERNATIONAL INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three-month periods ended 31 March 2025 and 2024 (Expressed in Thousand of New Taiwan Dollars)

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

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English Translation of Financial Statements Originally Issued in Chinese PANJIT INTERNATIONAL INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIODS ENDED 31 MARCH 2025 AND 2024

(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 shares commenced trading on Taipei Exchange Market (GreTai Securities Market) on 22 December 1999, and then trading on Taiwan Stock Exchange Corporation on 17 September 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 three-month periods ended 31 March 2025 and 2024 were authorized for issue by the Board of Directors on 9 May 2025.

3. Applicability of new published and revised criteria and their interpretation

   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 2025. The adoption of these new standards and amendments had no material impact on the Group.

   2. The Q&A Collection issued regarding the amendments to IFRS 9 and IFRS 7 "Amendments to the Classification and Measurement of Financial Instruments" that allow enterprises to early apply by FSC, and not yet adopted by the Group as at the end of the reporting period are listed below.

      In the Q&A, only IFRS 9 Section 4.1 (Classification of Financial Assets) of the application guidance is allowed to early adopt from 1 January 2025. Additionally, entities must also comply with the requirements of paragraphs 20B, 20C and 20D of IFRS 7 and disclose the fact of early adoption of these amendments in the financial statements.

   3. Standards or interpretations issued, revised or amended, by IASB which are not 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
      a	IFRS 10 "Consolidated Financial Statements" and IAS 28 " Investments in Associates and Joint Ventures" - Sale or Contribution of Assets between an Investor and its Associate or joint ventures	To be determined by IASB
      b	IFRS 17 "Insurance Contracts"	January 1, 2023
      c	IFRS 18 "Presentation and Disclosure in Financial Statements"	January 1, 2027
      d	IFRS 19 "Disclosure Initiative - Subsidiaries without Public Accountability: Disclosures"	January 1, 2027
      e	Amendments to IFRS 9 "Financial Instruments" and IFRS 7 "Financial Instruments: Disclosures" - Amendments to the Classification and Measurement of Financial Instruments	January 1, 2026
      f	Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
      g	Contracts Referencing Nature-dependent Electricity- Amendments to IFRS 9 "Financial Instruments" and IFRS 7 "Financial Instruments: Disclosures"	January 1, 2026

      1. Amendments to IFRS 10 "Consolidated Financial Statements" and IAS 28 "Investments in Associates and Joint Ventures" - Sale or investment of assets between investors and their associates or joint ventures

         The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

         IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors' interests in the associate or joint venture.

      2. IFRS 17 "Insurance Contracts"

         IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation, and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin.

         In addition to the general model, we also offer a specific method for contracts with direct participation characteristics (variable fee approach); and a simplified method for short-term contracts (premium allocation approach).

         IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after 1 January 2023 (from the original effective date of 1 January 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard - IFRS 4 Insurance Contracts - from annual reporting periods beginning on or after 1 January 2023.

      3. IFRS 18 "Presentation and Disclosure in Financial Statements"

         IFRS 18 replaces IAS 1 "Presentation of Financial Statements". The main changes in the new standard are as below:

         1. Improved comparability in the statement of profit or loss (income statement)

            IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities' performance and make it easier to compare entities.

         2. Enhanced transparency of management-defined performance measures

            IFRS 18 requires entities to disclose explanations of those entity-specific measures that are related to the income statement, referred to as management-defined performance measures.

         3. Useful grouping of information in the financial statements

            IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need.

      4. IFRS 19 "Disclosure Initiative - Subsidiaries without Public Accountability: Disclosures"

         This standard permits subsidiaries without public accountability to provide reduced disclosures when applying IFRS Accounting Standards in their financial statements. IFRS 19 is optional for subsidiaries that are eligible and sets out the disclosure requirements for subsidiaries that elect to apply it.

      5. Amendments to IFRS 9 "Financial Instruments" (IFRS 9) and IFRS 7 "Financial Instruments: Disclosures" (IFRS 7) - Amendments to the Classification and Measurement of Financial Instruments

         The amendments include:

         1. Clarify that a financial liability is derecognized on the settlement date and describe the accounting treatment for settlement of financial liabilities using an electronic payment system before the settlement date.

         2. Clarify how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features.

         3. Clarify the treatment of non-recourse assets and contractually linked instruments.

         4. Require additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income.

      6. Annual Improvements to IFRS Accounting Standards - Volume 11

         1. Amendments to IFRS 1

         2. Amendments to IFRS 7

         3. Amendments to IFRS 7 of Implementation guidance

         4. Amendments to IFRS 9

         5. Amendments to IFRS 10

         6. Amendments to IAS 7

      7. Amendments to IFRS 9 "Financial Instruments" (IFRS 9) and IFRS 7 "Financial Instruments: Disclosures" (IFRS 7) - Contracts Referencing Nature-dependent Electricity

         The amendments include:

         1. Clarify the application of the "own-use" requirements.

         2. Permit hedge accounting if these contracts are used as hedging instruments.

         3. Add new disclosure requirements to enable investors to understand the effect of these contracts on a company's financial performance and cash flows.

            The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Group's financial statements were authorized for issue, and the local effective dates are to be determined by FSC. As the Group is still currently determining the potential impact of the standards and interpretations listed under (c), it is not practicable to estimate their impact on the Group at this point in time. The remaining new or amended standards and interpretations have no material impact on the Group.

4. Summary of material accounting policies

   1. Statement of compliance

      The consolidated financial statements of the Group for the three-month periods ended 31 March 2025 and 2024 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers ("the Regulations") and IAS 34 Interim Financial Reporting as endorsed and became effective by the FSC (TIFRSs).

   2. Basis of preparation

      The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The consolidated financial statements are expressed in thousands of New Taiwan Dollars ("$") unless otherwise stated.

   3. Basis of consolidation

      Preparation principle of consolidated financial statements

      Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:

      1. power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)

      2. exposure, or rights, to variable returns from its involvement with the investee, and

      3. the ability to use its power over the investee to affect its returns

         When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

         1. the contractual arrangement with the other vote holders of the investee

         2. rights arising from other contractual arrangements

         3. the Group's voting rights and potential voting rights

         The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

         Subsidiaries are fully consolidated from the acquisition date, being the date on which the Company obtains control, and continue to be consolidated until the date that such control ceases.

         The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using uniform accounting policies. All intra-group balances, income and expenses, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full.

         A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.

         The total comprehensive income of subsidiaries is attributable to the owners of the parent and to the noncontrolling interests even if this results in the non-controlling interests having a deficit balance.

         If the Group loses control of a subsidiary, it:

         1. derecognizes the assets (including goodwill) and liabilities of the subsidiary;

         2. derecognizes the carrying amount of any non-controlling interest;

         3. recognizes the fair value of the consideration received;

         4. recognizes the fair value of any investment retained;

         5. reclassifies the parent's share of components previously recognized in other comprehensive income to profit or loss; and

         6. recognizes any surplus or deficit in profit or loss

         The consolidated entities are listed as follows:

         Percentage of ownership (%)

         Investor		Subsidiary		Main Businesses		31 Mar. 2025		31 Dec. 2024		31 Mar. 2024
         The Company		PAN-JIT ASIA INTERNATIONAL INC.		Investment holding		100.00%		100.00%		100.00%
         The Company		Pynmax Technology Co., Ltd.		Manufacture of electronic components and international		94.64%		94.64%		94.64%
         The Company		AIDE ENERGY		trade business Investment holding		100.00%		100.00%		100.00%
         		EUROPE
         The Company		COӦPERATIE U.A. Champion		Research and development,		30.74%		30.68%		30.00%
         		Microelectronic		design and manufacture and		(Note 3)		(Note 3)
         		Corp.("CMC")		technology consultation of power IC, field effect transistors and fast recovery
         				power descrete, international trade
         The Company		PANJIT JAPAN Co.,		Sale of electronic products		55.00%		55.00%		50.00%
         		Ltd.				(Note 4)		(Note 4)

         Percentage of ownership (%)

         Investor Subsidiary Main Businesses 31 Mar.

         31 Dec.

         31 Mar.

         2025 2024 2024

         The Company	PAN-JIT INTERNATIONAL (H.K.) LTD.	Sale of electronic products	100.00%	100.00%	100.00%
         The Company	PANSTAR SEMICONDUCTOR	Manufacture of electronic components and international	- (Note 5)	- (Note 5)	50.00%
         	CO., LTD.	trade business
         The Company	PAN JIT KOREA CO., LTD.	Sale of electronic products	60.00% (Note 2)	60.00% (Note 2)	-
         The Company	PANJIT Investment Co., Ltd.	Investment holding	100.00% (Note 8)	100.00% (Note 8)	-
         The Company	PAN-JIT Japan Investment Holding	Investment holding	100.00% (Note10)	-	-
         	Corporation
         PAN-JIT ASIA	PAN JIT EUROPE	Sale of electronic products	100.00%	100.00%	100.00%
         INTERNATIONAL	GMBH
         INC.
         PAN-JIT ASIA	PAN JIT AMERICAS,	Sale of electronic products	95.86%	95.86%	95.86%
         INTERNATIONAL	INC.
         INC.
         PAN-JIT ASIA	PAN JIT	Manufacture, and process of	100.00%	100.00%	100.00%
         INTERNATIONAL	ELECTRONIC	rectifier	(Note 1)	(Note 1)	(Note 1)
         INC.	(WUXI) CO., LTD.
         PAN-JIT ASIA	CONTINENTAL	Investment holding	100.00%	100.00%	100.00%
         INTERNATIONAL	LIMITED
         INC.
         PAN-JIT ASIA INTERNATIONAL	DYNAMIC TECH GROUP LIMITED	Investment holding	- (Note 1,9)	- (Note 1,9)	100.00% (Note 1)
         INC.
         PAN-JIT ASIA INTERNATIONAL	PAN JIT KOREA CO., LTD.	Sale of electronic products	- (Note 2)	- (Note 2)	60.00%
         INC.
         PAN-JIT ASIA	AIDE ENERGY	Investment holding and sale of	94.43%	94.43%	94.43%
         INTERNATIONAL	(CAYMAN)	photovoltaic products
         INC.	HOLDING CO., LTD.

         Percentage of ownership (%)

         Investor Subsidiary Main Businesses 31 Mar. 31 Dec. 31 Mar. 2025 2024 2024
         PAN-JIT ASIA	MAX-DIODE	New types of electronics	100.00%	100.00%	-
         INTERNATIONAL	ELECTRONIC.,	components and	(Note 7)	(Note 7)
         INC.	LTD.(SHENZHEN)	semiconductor controlled
         		rectifier sales
         PYNMAX	JOYSTAR	Investment holding	100.00%	100.00%	100.00%
         TECHNOLOGY CO.,	INTERNATIONAL
         LTD.	CO., LTD.
         DYNAMIC TECH	MAX-DIODE	New types of electronics	-	-	100.00%
         GROUP LIMITED	ELECTRONIC.,	components and	(Note 7)	(Note 7)
         	LTD.(SHENZHEN)	semiconductor controlled
         		rectifier sales
         CONTINENTAL	SUZHOU GRANDE	Chip diodes, transistors and	100.00%	100.00%	100.00%
         LIMITED	ELECTRONICS CO.,	other new electronic
         	LTD.	semiconductor components
         		and related products, sales of
         		products and provide technical
         		and after-sales service
         PAN JIT	PANJIT Electronics	New types of electronic	100.00%	100.00%	100.00%
         ELECTRONIC	(Beijing) Co., Ltd.	components, Semiconductor
         (WUXI) CO., LTD		controlled rectifier sales
         PAN JIT	PANJIT	Manufacture semiconductor	70.28%	70.28%	70.28%
         ELECTRONIC	ELECTRONICS	wafer for automobile,
         (WUXI) CO., LTD	(SHANDONG) CO.,	protection of discrete devices,
         	LTD.	integrated circuit chip
         		packaged product
         PAN JIT ELECTRONIC	PANJIT ELECTRONIC	New types of electronic components, Semiconductor	100.00%	100.00%	100.00%
         (WUXI) CO., LTD	(QUFU) CO., LTD.	controlled rectifier sales
         PAN JIT ELECTRONIC	PANJIT SEMICONDUCTOR	New types of electronic components, Semiconductor	100.00%	100.00%	100.00%
         (WUXI) CO., LTD	(XUZHOU) CO., LTD.	controlled rectifier sales
         AIDE ENERGY	JIANGSU AIDE	Solar photovoltaic product	100.00%	100.00%	100.00%
         (CAYMAN)	SOLAR ENERGY	development, manufacturing,
         HOLDING CO., LTD.	TECHNOLOGY CO.,	sales, self-agency of goods
         	LTD.	and technology import and
         		export business
         AIDE ENERGY	AIDE ENERGY	Investment holding and sales	100.00%	100.00%	100.00%
         EUROPE	EUROPE B.V.
         COӦPERATIE U.A.

         Percentage of ownership (%)

         Investor Subsidiary Main Businesses 31 Mar.

         31 Dec.

         31 Mar.

         2025 2024 2024

         AIDE ENERGY

         EC SOLAR C1 SRL Solar power generation and

         sales of electricity

         100.00% 100.00% 100.00%

         EUROPE B.V.
         Champion	Wisdom Bright Inc.	Investment holding	100.00%	100.00%	100.00%
         Microelectronic Corp.
         Champion	Wisdom Mega Corp.	Investment holding	100.00%	100.00%	100.00%
         Microelectronic Corp.
         Champion	PANJIT JAPAN Co.,	Sale of electronic products	10.00%	10.00%	10.00%
         Microelectronic Corp.	Ltd.
         Champion	Golden Champion	Manufacture of electronic	100.00%	100.00%	100.00%
         Microelectronic Corp.	Digital Power	components and Product
         	Corporation	design
         Wisdom Bright Inc.	Wisdom Toprich	Investment holding	100.00%	100.00%	100.00%
         	Technology Limited
         Wisdom Toprich	Great Power	Electronic products	100.00%	100.00%	100.00%
         Technology Limited	Microelectronics Corp.	development, product import,
         		export, and wholesale business
         PANJIT Investment Co., Ltd.	PANSTAR SEMICONDUCTOR	Manufacture of electronic components and international	33.33% (Note 5)	33.33% (Note 5)	-
         	CO., LTD.	trade business
         PANJIT Investment Co., Ltd.	MetaWeIIs Co., Ltd.	Manufacture of electronic components and international	51.52% (Note 6)	68.00% (Note 6)	-
         		trade business

         (Note 1)：PAN-JIT ASIA INTERNATIONAL INC. owned 100.00% of the shares with other subsidiaries, which are consolidated into the Company's financial statements.

         (Note 2)：The company acquired 60% equity of PAN-JIT KOREA CO., from PAN−JIT ASIA INTERNATIONAL INC. in April 2024.

         (Note 3)：The Company acquired the share of CMC. which increased the percentage of ownership interests from 30% to 30.68% in June and July 2024. On 25 February, 2025, Champion Microelectronic Corp.'s Board of Directors approved the cancellation of treasury shares and the record date on 27

         February, 2025. The change of paid-in capital registration of 163 thousand treasury shares was on 3 March, 2024. The Company acquired the share of CMC. which increased the percentage of ownership interests from 30.68% to 30.74%.

         (Note 4)：The Company acquired the 5% shares of PANJIT JAPAN Inc. from its associated enterprises, MILDEX OPTICAL INC. which increased the percentage of ownership interests from 50% to 55% in June 2024.

         (Note 5)：PANSTAR SEMICONDUCTOR CO., LTD. increased its capital in May 2024, and the Company's shareholding ratio was decreased from 50% to 33.33%. PANJIT Investment Co., Ltd. acquired 33.33% equity of PANSTAR SEMICONDUCTOR CO., LTD. from the Company in September

         2024.

         (Note 6)：The Company established MetaWeIIs Co., Ltd. in April 2024. PANJIT Investment Co., Ltd. acquired 100.00% equity of MetaWeIIs Co., Ltd. from the Company in September 2024. MetaWeIIs Co., Ltd. increased its capital in December 2024, and PANJIT Investment Co., Ltd.'s shareholding ratio was decreased from 100% to 68%. MetaWeIIs Co., Ltd. increased its capital in February 2025, and PANJIT Investment Co., Ltd.'s shareholding ratio was decreased from 68% to 51.52%.

         (Note 7)：PAN−JIT ASIA INTERNATIONAL INC. acquired 100% equity of MAX-DIODE ELECTRONIC., LTD.(SHENZHEN) from DYNAMIC TECH GROUP LIMITED in May 2024.

         (Note 8)：The Company established PANJIT Investment Co., Ltd. in August 2024.

         (Note 9)：DYNAMIC TECH GROUP LIMITED has completed its dissolution and liquidation in August 2024. (Note 10)：The Company established PAN-JIT Japan Investment Holding Corporation in January 2025. The

         company has not yet completed the registration procedures.

         The financial statements of some of the consolidated subsidiaries listed above had not been reviewed by auditors. As of 31 March 2025 and 2024, the related assets of the subsidiaries which were unreviewed by auditors amounted to NT$5,133,030 thousand and NT$5,060,475 thousand respectively, and the related liabilities amounted to NT$841,161 thousand and NT$833,282 thousand, respectively. The comprehensive income of these subsidiaries amounted to NT$(180,446) thousand, and NT$(14,951) thousand for the three-month periods ended 31 March 2025 and 2024, respectively.

   4. Foreign currency transactions

      The Group's consolidated financial statements are presented in NT$, which is also the parent company's functional currency. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

      Transactions in foreign currencies are initially recorded by the Group entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

      All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

      1. Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.

      2. Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instruments.

      3. Exchange differences arising on a monetary item that forms part of a reporting entity's net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

         When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

   5. Translation of financial statements in foreign currency

      The assets and liabilities of foreign operations are translated into NT$ at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. The following partial disposals are accounted for as disposals:

      1. When the partial disposal involves the loss of control of a subsidiary that includes a foreign operation; and

      2. When the retained interest after the partial disposal of an interest in a joint arrangement or a partial disposal of an interest in an associate that includes a foreign operation is a financial asset that includes a foreign operation.

         On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or joint arrangement that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

         Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

   6. Current and non-current distinction An asset is classified as current when:

      1. The Group expects to realize the asset, or intends to sell or consume it, in its normal operating cycle;

      2. The Group holds the asset primarily for the purpose of trading;

      3. The Group expects to realize the asset within twelve months after the reporting period;

      4. The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

         All other assets are classified as non-current. A liability is classified as current when:

         1. The Group expects to settle the liability in its normal operating cycle;

         2. The Group holds the liability primarily for the purpose of trading;

         3. The liability is due to be settled within twelve months after the reporting period;

         4. The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

         All other liabilities are classified as non-current.

   7. Cash and cash equivalents

      Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid time deposits or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

   8. Financial instruments

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

      Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

      1. Financial instruments: Recognition and Measurement

         The Group accounts for regular way purchase or sales of financial assets on the trade date.

         The Group classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

         1. the Group's business model for managing the financial assets and

         2. the contractual cash flow characteristics of the financial asset.

            Financial assets measured at amortized cost

            A financial asset is measured at amortized cost if both of the following conditions are met and presented as note receivables, trade receivables financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

            1. the financial asset is 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 asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

            Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognize the impairment gains or losses.

            Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

            1. Purchased or originated credit-impaired financial assets. For those financial assets, the Group applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

            2. Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Group applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

            Financial assets measured at fair value through other comprehensive income

            A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

            1. the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and

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

            Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

            1. A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.

            2. When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

            3. Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

               1. Purchased or originated credit-impaired financial assets. For those financial assets, the Group applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

               2. Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Group applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

            Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Group made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represent a recovery of part of the cost of investment.

            Financial assets measured at fair value through profit or loss

            Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

            Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

      2. Impairments of financial assets

         The Group recognizes a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortized cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognized in other comprehensive income and not reduce the carrying amount in the balance sheet.

         The Group measures expected credit losses of a financial instrument in a way that reflects:

         1. an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

         2. the time value of money; and

         3. reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

         The loss allowance is measures as follows:

         1. At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Group measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.

         2. At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.

         3. For accounts receivables or contract assets arising from transactions within the scope of IFRS 15, the Group measures the loss allowance at an amount equal to lifetime expected credit losses.

         4. For lease receivables arising from transactions within the scope of IFRS 16, the Group measures the loss allowance at an amount equal to lifetime expected credit losses.

         At each reporting date, the Group needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

      3. Derecognition of financial assets

         A financial asset is derecognized when:

         1. The rights to receive cash flows from the asset have expired

         2. The Group has transferred the asset and substantially all the risks and rewards of the asset have been transferred

         3. The Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

         On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

      4. Financial liabilities and equity Classification between liabilities or equity

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

         Equity Instruments

         An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

         Compound instruments

         The Group evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Group assesses if the economic characteristics and risks of the put and call options contained in the convertible bonds are closely related to the economic characteristics and risk of the host contract before separating the equity element.

         For the liability component excluding the derivatives, its fair value is determined based on the rate of interest applied at that time by the market to instruments of comparable credit status. The liability component is classified as a financial liability measured at amortized cost before the instrument is converted or settled.For the embedded derivative that is not closely related to the host contract (for example, if the exercise price of the embedded call or put option is not approximately equal on each exercise date to the amortized cost of the host debt instrument), it is classified as a liability component and subsequently measured at fair value through profit or loss unless it qualifies for an equity component. The equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. Its carrying amount is not remeasured in the subsequent accounting periods. If the convertible bond issued does not have an equity component, it is accounted for as a hybrid instrument in accordance with the requirements under IFRS 9 Financial Instruments.

         Transaction costs are apportioned between the liability and equity components of the convertible bond based on the allocation of proceeds to the liability and equity components when the instruments are initially recognized.

         On conversion of a convertible bond before maturity, the carrying amount of the liability component being the amortized cost at the date of conversion is transferred to equity.

         Financial liabilities

         Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

         Financial liabilities at fair value through profit or loss

         Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

         A financial liability is classified as held for trading if:

         1. it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;

         2. on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or

         3. it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

         If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated as at fair value through profit or loss when doing so results in more relevant information, because either:

         1. it eliminates or significantly reduces a measurement or recognition inconsistency; or

         2. a group of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided internally on that basis to the key management personnel.

         Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss including interest paid are recognized in profit or loss.

         Financial liabilities at amortized cost

         Financial liabilities measured at amortized cost include payables and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

         Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

         Derecognition of financial liabilities

         A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

         When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

      5. Offsetting of financial instruments

      Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

   9. Derivative instruments

      The Group uses derivative instruments to hedge its foreign currency risks and interest rate risks. A derivative is classified in the balance sheet as financial assets or liabilities at fair value through profit or loss (held for trading) except for derivatives that are designated effective hedging instruments which are classified as derivative financial assets or liabilities for hedging.

      Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The changes in fair value of derivatives are taken directly to profit or loss, except for the effective portion of hedges, which is recognized in either profit or loss or equity according to types of hedges used.

      When the host contracts are either non-financial assets or liabilities, derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair value though profit or loss. These embedded derivatives are separated from the host contract and accounted for as a derivative.

   10. Fair value measurement

       Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

       1. In the principal market for the asset or liability, or

       2. In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible to by the Group.

          The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

          A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

          The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

   11. Inventories

       Inventories are valued at lower of cost and net realizable value item by item.

       Costs incurred in bringing each inventory to its present location and condition are accounted for as follows:

       Raw materials - Purchase cost on weighted average cost basis

       Finished goods and work in progress - Cost of direct materials, labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs.

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

       Rendering of services is accounted in accordance with IFRS 15 and not within the scope of inventories.

   12. Non-current assets held for sale and discontinued operations

       Non-current assets and disposal groups are classified as held for sale if their carrying amounts will be recovered through a sale transaction that is highly probable within one year from the date of classification and the asset or disposal group is available for immediate sale in its present condition.Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

       In the consolidated statement of comprehensive income of the reporting period, and of the comparable period of the previous year, income and expenses from discontinued operations are reported separately from income and expenses from continuing operations, down to the level of profit after taxes, even when the Group retains a non-controlling interest in the subsidiary after the sale. The resulting profit or loss (after taxes) is reported separately in the statement of comprehensive income.

       Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.

   13. Investments accounted for using the equity method

       The Group's investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Group has significant influence.

       Under the equity method, the investment in the associate is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Group's share of net assets of the associate. After the interest in the associate is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate. Unrealized gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the Group's related interest in the associate.

       When changes in the net assets of an associate occur and not those that are recognized in profit or loss or other comprehensive income and do not affects the Group's percentage of ownership interests in the associate, the Group recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate on a pro-rata basis.

       When changes in the net assets of an associate or a joint venture occur and not those that are recognized in profit or loss or other comprehensive income and do not affect the Group's percentage of ownership interests in the associate or joint venture, the Group recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing of the associate or joint venture on a pro-rata basis.

       When the associate issues new stock, and the Group's interest in an associate is reduced or increased as the Group fails to acquire shares newly issued in the associate proportionately to its original ownership interest, the increase or decrease in the interest in the associate is recognized in Additional Paid in Capital and Investment in associate. When the interest in the associate is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a pro-rata basis when the Group disposes the associate.

       The financial statements of the associate are prepared for the same reporting period as the Group. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.

       The Group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures. If this is the case the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in the 'share of profit or loss of an associate' in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets. In determining the value in use of the investment, the Group estimates:

       1. Its share of the present value of the estimated future cash flows expected to be generated by the associate, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or

       2. The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

          Because goodwill that forms part of the carrying amount of an investment in an associate is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets.

          Upon loss of significant influence over the associate, the Group measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Furthermore, if an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the entity continues to apply the equity method and does not remeasure the retained interest.

   14. Property, Plant, and Equipment

       Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Group recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 Property, plant and equipment. When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

       Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

       Assets Useful life

       Buildings 1~52 years

       Machinery and equipment 1~15 years

       Utilities equipment 1~13 years

       Transportation equipment 1~10 years

       Office equipment 1~10 years

       Lease improvements 1~20 years

       Other equipment 1~25 years

       After initial recognition, items of property, plant, and equipment or any important component are derecognized and recognized as gain or loss if they are disposed of or are not expected to have an inflow of economic benefits due to use or disposal in the future.

       The assets' residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate. These changes are treated as accounting estimates.

   15. Lease

       The Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Group assesses whether, throughout the period of use, has both of the following:

       1. the right to obtain substantially all of the economic benefits from use of the identified asset; and

       2. the right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Group accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Group for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Group estimates the standalone price, maximising the use of observable information.

Group as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Group recognizes right-of-use asset and lease liability for all leases which the Group is the lessee of those lease contracts.

At the commencement date, the Group measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

1. fixed payments (including in-substance fixed payments), less any lease incentives receivable;

2. variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

3. amounts expected to be payable by the lessee under residual value guarantees;

4. the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and

5. payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Group measures the lease liability on an amortised cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Group measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

1. the amount of the initial measurement of the lease liability;

2. any lease payments made at or before the commencement date, less any lease incentives received;

3. any initial direct costs incurred by the lessee; and

4. an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

For subsequent measurement of the right-of-use asset, the Group measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Group measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Group by the end of the lease term or if the cost of the right-of-use asset reflects that the Group will exercise a purchase option, the Group depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Group depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.