TWSE：2409
OTC Markets：AUOTYAUO Corporation
Meeting Minutes
Of2024 Annual General Shareholders’ Meeting(Translation)

Time and date of the Meeting: May 30, 2024 at 9:30 A.M. (Local time)
Venue of the Meeting: Meeting Room in AUO's Headquarters (No. 1, Gongye E. 3rd Rd., East
Dist., Hsinchu Science Park, Hsinchu City )Total shares represented by shareholders present: 5,526,643,216 shares (including
3,893,498,872 shares casted electronically and 109,239 shares casted by video conferencing)
Percentage of shares held by shareholders present: 72.08% of total outstanding shares(The translated document is prepared in accordance with the Chinese version and is forreference only. In the event of any inconsistency between the English version and theChinese version, the Chinese version shall prevail.)

Resolution Notice
Dear Shareholders:
We are pleased to inform you that the following items were approved or acted as proposed at our
2024 Annual General Shareholders’ Meeting held on May 30, 2024.
Truly yours,

Shuang-Lang (Paul) Peng,
Chair

-1-

AUO Corporation
2024 Annual General Shareholders’ Meeting Minutes
Method of Convening the Meeting: Hybrid Shareholders' Meeting
Time: 9:30 a.m., May 30, 2024, Thursday
Place: Meeting Room in AUO's Headquarter(No. 1, Gongye E. 3rd Rd., East Dist., Hsinchu Science Park, Hsinchu City)
E-Meeting Platform: “E-Voting platform” by Taiwan Depositary & Clearing Corporation(https:// stockservices.tdcc.com.tw)
Attendants:
Total AUO outstanding shares: 7,667,880,972 shares.
Total shares represented by shareholders present in person or by proxy: 5,526,643,216 shares(including 3,893,498,872 shares casted electronically and 109,239 shares represented by videoconferencing).
Percentage of shares held by shareholders present in person or by proxy: 72.08%.
Directors present:
Shuang-Lang (Paul) Peng, Chairman, Chief Strategy Officer and convener of the Corporate
Governance and Nomination Committee and convener of the Sustainability and ERM CommitteeFrank Ko, Director, Chief Executive Officer and President
Chuang- Chuang Tsai, Director
Chin-Bing (Philip) Peng, Independent Director, convener of the Audit Committee and convener of theRemuneration Committee and member of the Corporate Governance and Nomination Committee
Jang-Lin (John) Chen, Independent Director, member of the Audit Committee, member of theRemuneration Committee and member of the Corporate Governance and Nomination Committee
Chiu-Ling Lu, Independent Director, member of the Audit Committee and member of the Corporate
Governance and Nomination Committee and member of the Sustainability and ERM Committee
Cathy Han, Independent Director, member of the Audit Committee and member of the Corporate
Governance and Nomination Committee and member of the Sustainability and ERM Committee
Attendees: Wan-Yuan Yu, Certified Public Accountant
Bo-Sen Von, Attorney
Chair: Shuang-Lang (Paul) Peng, Chairman
Recorder: Benjamin Tseng, Chief Financial Officer, Corporate Governance Officer and Secretary of the
Board
I.

Commencement (The aggregate shareholding of the shareholders present in person or by proxy
constituted a quorum. The Chair called the meeting to order.)II. Chair’s Address (omitted)
III. Report Items
1. To report the business of 2023
Explanation:
The 2023 Business Report is attached hereto as Attachment 1 (pages 8-10)-2-

Summary of Shareholders’ Statements (No. 00070030)
Please describe the Company's profit situation for the second quarter and the second half of2024.
Summary of Chair’s Statements:
Due to legal regulations, we cannot comment further on unpublished information. However,from the second half of 2023, AUO has been facing an inventory liquidation issue, but the
supply chain condition remained healthy. Although the financial report for the first quarter of2024 showed a loss, the range of loss has significantly reduced. Currently, the overall
performance is showing steady growth, including the revenue and profit performance in theautomotive sector and various vertical fields business, which will improve quarter by quarter.
2. Audit Committee's Review Report and Communication between members of Audit Committee
and head of Internal Audit
Explanation:
The Audit Committee’s Review Report is attached hereto as Attachment 2 (Page 11). Pleaserefer to Page 29 in 2023 Annual Report for the communication between members of Audit
Committee and head of Internal Audit.
3. To report the cash distribution from capital surplus
Explanation:(1) It is proposed to distribute NT$6,901,092,875 from capital surplus of the issuing premiumof the par value of the common share pursuant to Article 241 of the Company Act(NT$0.9 for every common share, i.e. NT$900 for every 1,000 common shares held).
(2) It is proposed that the Chair of Board of Directors shall be authorized to determine therecord date for the distribution. In the event that changes in the Company's share capital
affect the number of shares outstanding, resulting in adjustments to the cash distribution
ratio for shareholders, the Chair of Board of Directors is authorized to adjust the
distribution ratio based on the actual number of shares outstanding on the distribution
base date.
Summary of Shareholders’ Statements (No. 000798604 and No.0075461):
The three-year shareholder return plan submitted in 2022 has not been executed as expected.
The management should properly consider the factors that hinder the implementation of theplan, and formulate responsive measures or explanations. The remuneration distribution forsenior managers needs to be clearly checked. While taking care of employees, the Company
should also balance the rights and interests of shareholders to ensure the Company's
operational performance and credibility.
Summary of Chair’s Statements:
 The Company submitted a proposal for long-term and stable shareholder returns in March
2022, aiming at enhancing the long-term interests of shareholders and expertise value. As
stated in the disclosure “Each actual distribution method and amount will be implemented
in accordance with relevant laws and the Company's articles of incorporation, pending
approval by the board of directors or the shareholders' meeting.” Starting from 2023,
unfavorable factors such as war, inflation, and interest rate hikes continued to affect the
global economy last year, posing significant challenges for panel manufacturers and leading toa substantial decline in operations. With the overall economic and industry uncertainties
remaining high, AUO is committed to sustainable operations and maintaining industry
competitiveness, striving to achieve stable long-term returns for shareholders.
-3- The remuneration distribution to senior management shall be reviewed by the
Remuneration Committee on an annual basis and submitted to the Board of Directors forresolution. It is considered to reasonably reflect the efforts of the senior management.
 To maintain competitiveness, AUO completed the cash acquisition of BHTC, a German Tier
1 automotive supplier, in April of this year, accelerating AUO's goal of becoming a providerof smart cockpit solutions in the automotive sector. AUO also continues to invest in themass production of Micro-LED and various high-value display applications. The automotive
sector and other vertical businesses will be crucial growth drivers for AUO's future
performance.
4. To report 2023 directors’ remuneration
Explanation:(1) No directors’ remunerations distributed by the Company in 2023 fiscal year.
(2) The compensation to directors, compensation policy, amount and content please refer toPages 19-20 in 2023 Annual Report.
The Chair explained and responded to the above statements made by the said shareholders.
IV. Recognition Items
1. To accept 2023 Business Report and Financial Statements (proposed by the Board)
Explanation:(1) The 2023 Financial Statements were audited by the independent auditors, Yu, Chi-Lung and Yu,
Wan-Yuan of KPMG.
(2) For the 2023 Business Report, Independent Auditors’ Report, and the 2023 Financial
Statements, please refer to Attachment 1(pages 8-10) and 3-4 (pages 12-29).
Voting Results:
5,526,643,216 shares were represented at the time of voting (including 3,893,498,872 shares
casted electronically and 109,239 shares casted by video conferencing)
Voting Result
Voting rights% of the total represented at the time of voting
Votes in favor

5,103,405,692

92.34%

Votes against

7,649,540

0.14%

Votes invalid

0

0.00%

415,587,984

7.52%

Votes abstained

RESOLVED, that the above proposal be and hereby was accepted as proposed.
2. To accept the proposal for the distribution of 2023 earnings (proposed by the Board)
Explanation:(1) The beginning balance of Unappropriated Retained Earnings was NT$32,705,034,866, after
adding Change in Remeasurement of Defined Benefit Plan deducting Disposal of Equity
Instruments at Fair Value through, Net Loss after tax of 2023 and Allowance for Special
Reserve, the retained earnings in 2023 available for distribution is NT$13,661,429,290.
(2) Not to distribute cash dividends for 2023.
(3) The proposal for 2023 earnings distribution, please refer to Attachment 5 (Page 30).

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Voting Results:
5,526,643,216 shares were represented at the time of voting (including 3,893,498,872 shares
casted electronically and 109,239 shares casted by video conferencing)
Voting Result
Voting rights% of the total represented at the time of voting
Votes in favor

5,102,167,152

92.32%

Votes against

17,007,055

0.31%

Votes invalid

0

0.00%

407,469,009

7.37%

Votes abstained

RESOLVED, that the above proposal be and hereby was accepted as proposed.
V. Discussion Items
1. To amendment the Rules for the Election of Directors (proposed by the Board)
Explanation:(1) The Company has adopted the candidate nomination system for the election of directors.
Shareholders are required to elect directors from the list of nominees provided in the roastof candidates. From the roast of candidates, shareholders will obtain relevant information ofeach candidate. Therefore, it is proposed to delete relevant requirements for identifying
candidates by shareholders’ account number or ID number.
(2) Comparison table for before and after the amendment is attached hereto as Attachment 6(Pages 31&32).
Voting Results:
5,526,643,216 shares were represented at the time of voting (including 3,893,498,872 shares
casted electronically and 109,239 shares casted by video conferencing)
Voting Result
Voting rights% of the total represented at the time of voting
Votes in favor

5,112,002,059

92.50%

Votes against

6,928,338

0.13%

Votes invalid

0

0.00%

407,712,819

7.38%

Votes abstained

RESOLVED, that the above proposal be and hereby was accepted as proposed.
VI. Extraordinary Motions: None.
VII. Other recorded matters
Shareholder No. D0000001 who attended the meeting by video conferencing:In the post-pandemic era, sustainable development is one of the corporate social responsibilities.
The Company has performed well in corporate governance evaluation in recent years, ranking
among the top 5% of companies. Please explain the effectiveness of promoting sustainable
development in 2023 and how to achieve the goal of net-zero carbon emissions.
Summary of Shareholders’ Statements (No. 00070030):
Please explain how AUO Corporation is no longer just a panel company. Are there clear
performance indicators, measurement standards, or a timeline?
-5-Summary of Shareholders’ Statements (No. 00077546):
The biggest threat to Micro LED is OLED, could you please explain what the Company's businessstrategy for Micro LED is?
Summary of Shareholders’ Statements (No. 01792746):
Please describe the operation of the ESG organization structure, including the ratio of full-time orpart-time personnel, and whether more sustainable-related personnel will be hired.
Summary of Chair’s Statements:
 Since 2008, AUO has been dedicated to energy conservation, carbon reduction, and water
resource recycling. In 2013, the Sustainability Committee (formerly known as the CSR
Committee) was established to review goals and achievements quarterly. In 2015, significant
results in wastewater recovery were achieved in Longtan. In 2018, AUO became the firstmanufacturer in Taiwan to establish a Sustainability Headquarters, appointing a Chief
Sustainability Officer to oversee all issues and progress related to sustainable development. In
March 2024, the CSR Committee was renamed the Sustainability and ERM Committee, which
set clear goals for quarterly reviews and link them appropriately to the remuneration of senior
executives. In terms of energy efficiency, we exceeded the government's mandatory 1%
energy-saving target, achieving a 3.4% reduction. We have also integrated our own advanced
manufacturing technologies, such as AI and IoT, to enhance the effects of energy conservationand carbon reduction. AUO has joined the global renewable energy initiative RE100, pledging toachieve net zero emissions at the corporate operational boundary by 2050 and use 100% green
electricity. In addition, AUO has created green business opportunities in response to green
development, resource recovery, and the challenges of achieving RE100 goals, including
positioning AUO Digitech Taiwan Inc. and AUO Envirotech Inc. as providers of external green
solutions. AUO considers sustainable development essential to its competitiveness and isdetermined to achieve all of its objectives, using various methods to fulfill its commitment toESG.
 By 2025, AUO Corporation will no longer be just a panel company. The primary goal set by
AUO is to move away from the panel industry cycle, with the target of reducing the sale ratioof pure panels to below 70% by 2024. Moreover, AUO will shift from using PB (Price-to-Book
Ratio) to using PE (Price-to-Earnings) as the evaluation standard.
 AUO values the automotive market and mitigates cyclical impacts on the panel industry byincreasing its share in automotive. One issue with OLED is its short lifecycle. However, AUO
has planned a comprehensive plan for the ecosystem. It is estimated that by 2029 to 2030, thecost of Micro LED will be close to that of OLED. The lifespan issue of OLED affects its
performance, thus the wearable and automotive markets have great potential. Since 2012,
AUO has been researching Micro LED and has invested substantial resources in R&D. It has
successfully integrated all the advantages of LCD and OLED while eliminating their drawbacks.
The main current challenge is how to reduce costs and accelerate the reduction of costs.
 Taking sustainable manufacturing as an example, it is promoted and reviewed by the first-levelsupervisor of the manufacturing department. The Chief Sustainability Officer leads a dedicatedteam to coordinate cross-project in the group, ensuring that quarterly and annual targets are
met. They are also responsible for cultivating sustainability staffs, practical operations, andeducation and promotion to enhance all employees' expertise. In addition, communication with
the nine major stakeholders should be performed, as well as professional exchange throughcampuses and association.
The Chair explained and responded to the above statements made by the said shareholders.
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VIII. Meeting Adjourn: The meeting was adjourned at 11:06 a.m.
(The content of the statement recorded in this meeting minutes is only a summary. The actual speechshall be subject to on-site video and audio recording.)(Because the percentage of approval votes, disapproval votes, invalid votes, abstention votes and novotes held by total votes is calculated rounded to the second decimal place, the total percentage
might not be exactly equal to 100.00 %.)-7-

Attachment 1
AUO Corporation
2023 Business Report
Reflecting on 2023, collaborative efforts throughout the entire supply chain played a crucial role innormalizing overall channel inventories of consumer electronic products, thereby contributing to thegradual stabilization of panel prices. However, the global economy faced headwinds from unfavorable
factors such as war, inflation, and interest rate, which persisted throughout the year, impeding the fullrecovery of end demand. Despite the challenging environment, the Company's overall revenue saw amodest increase of 0.5% compared to 2022, reaching NT$247.96 billion. Notably, revenue fromvertical business grew by nearly 20% from the prior year, mitigating the decline in revenue from thepanel business. AUO’s overall loss also narrowed compared to 2022.

Although the panel industry has experienced fluctuations in recent years, the Company's operations
have consistently generated cash inflows, which have helped to lower the debt ratio and improve ourfinancial profile. A stable financial structure and ample cash resources give us the confidence toaccelerate our biaxial transformation strategy, continuing to focus on increasing the higher value-added
products and expanding our vertical business.
 Next-generation display technology
In the panel business, AUO mainly focuses on next-generation LED display technologies, progressing
from Mini LED backlight and high-end direct-view LED display to Micro LED. This approach has offered
us a comprehensive technology platform and ecosystem, enhancing AUO's industry profile andsolidifying our leadership as the primary supplier of display products.
 Mini LED backlight: Mini LED is used as the backlighting for LCD panels, offering advantages
such as high contrast, wide color gamut, and low power consumption. In the recent years,
AUO has applied this technology in automotive, high-end medical, and gaming displays,
making it a competitive technology against OLED.
 High-end direct-view LED display: Displays that use LED chips directly as pixel units canovercome the size limitations of existing display technology. It also offers many advantages,
including high brightness, wide color gamut, high contrast, low power consumption, and long
lifespan. AUO has applied this technology in spherical display, solution for situation room,
LED virtual production studio, and other field applications.
 Micro LED: In 2023, AUO led the market with the shipment of 1.39-inch Micro LED display forsmartwatches. This milestone demonstrates AUO's capability in advancing Micro LED
technology toward commercialization and mass production. In the future, Micro LED will be
introduced into applications such as automotive displays, super large-size tiling TV, andtransparent displays. These applications showcase the technology’s advantages, such as highbrightness, high reliability, longer lifetime, as well as ultra-high transparency, flexibility, andbendability.
-8- Mobility solution business
Benefiting from the booming trend of electrical vehicles and autonomous driving, displays are expected
to play a crucial role as the human-machine interface in the next-generation smart cockpits. AUO has
been deeply committed to the automotive display market for years, and ranked top three among global
automotive display suppliers. With cutting-edge display technology as the core and in-depth
cooperation with ecosystem partners, we strive to develop the Company into a “Smart Cockpit
Display Solution Provider.” In 2023, our revenue from mobility solution business exceeded NT$43
billion, demonstrating strong momentum with an annual growth rate exceeding 25%. In our journey
towards transformation, this sector is expected to become one of AUO's important growth engines.
 In October 2023, AUO's Board of Directors approved the acquisition of Behr-Hella
Thermocontrol GmbH (BHTC) in Germany.
BHTC specializes in human-machine interfaces and climate control systems for the
automotive industry. It possesses world-leading resources and R&D capabilities, with Tier 1
supplier abilities, and maintains deep collaborations with global automotive OEMs. The
merger is expected to be completed in the first half of 2024. AUO will leverage BHTC’s Tier
1 abilities, track records with automotive OEMs, and global sales channel and production
bases to accelerate the goal to transform into a “Smart Cockpit Display Solution Provider.” AUO debuts at the US Consumer Electronics Show (CES) in January 2024
The year 2024 marks AUO’s first-ever participation in CES as a Smart Cockpit Display
Solution Provider and its first entry into the main exhibition hall. The Company was proud of
earning two innovation awards recognizing our breakthroughs in transparent and rollable
Micro LED displays for automotive applications. Among them, the "Interactive Transparent
Window" integrates a highly transparent Micro LED display into vehicle side windows,
equipped with touch functionality. This exhibit won the Best of Innovation Honoree award.
This also means that the market recognizes AUO team's strong R&D capabilities and theability to meet automotive customers' various needs in smart cockpits.
 Vertical businessIn the recent years, AUO has actively developed its vertical businesses in retail, healthcare, enterprise,
education, intelligent services, green energy, and other areas. This has been accomplished through theestablishment of subsidiaries, via mergers and acquisitions, etc. Revenue from vertical businesses
exceeded NT$40 billion in 2023, marking a nearly 20% increase compared to 2022. The corresponding
proportion of revenue also rose from 15% to 17%. This growth is anticipated to continue.
In the healthcare sector, AUO has been a critical player in the professional medical display market forover a decade. We are positioned as the world's leading professional medical display supplier. With apositive outlook on the smart healthcare sector, AUO Group saw its first-ever participation in the“2023 Healthcare+ Expo Taiwan". Together with several industry partners, this endeavor brought
together our subsidiaries AUO Display Plus1, AUO Health2, and AUO Care3 to jointly showcase
1

AUO Display Plus Corporation
AUO Health Inc.
3
AUO Care Inc.
2

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products, technologies, and solutions launched by the Group in smart healthcare. These include
products and services across five domains, including 3D surgical imaging, dental digitization, traditional
Chinese medicine digital detection, medical information integration and management, and elderly care.
AUO will leverage its current market dominance and panel technology as a starting point to develop
vertically and provides solutions that address users' needs and solve the pain points.
Regarding the intelligent services, and with smart manufacturing as its starting point, AUO is
responding to global climate change and the trend toward global net-zero carbon emissions byinvesting in digital transformation. This transformation aims to implement ESG sustainable
development practices and apply successful transformation experiences to develop smart sustainable
service solutions for external clients. The "AUO Smart Expo 2023" brought together our subsidiaries
AUO Digitech4, AUO Envirotech5, and AUO Energy Business Headquarters6 to demonstrate theGroup's smart sustainable solutions in smart manufacturing, net-zero carbon emissions, and green
energy to the public for the first time. These efforts align with our corporate digital and net-zerotransformation goals, aiming to create sustainable business opportunities and enhance AUO's
competitiveness through ESG-driven value creation.
Looking forward to 2024, the global macro environment remains uncertain. Despite facing a highly
challenging operating environment, the Company remains cautiously optimistic, continues to closely
monitor the market dynamics, and remains cautious about the pace of demand recovery for various
applications. At this stage, the panel business still consumes majority of the Company’s capacity, capital
deployment, and human resources. Our primary goal for the panel business will be to optimize its
product portfolios and technology platforms to ensure stable positive cash flow. On the other hand,mobility solution and vertical businesses stand as key growth engines in the longer-term. The Company
plans to allocate more resources to accelerate the development in these two businesses, aiming to berecognized as not just a panel maker, but a "Display-centric Solution Provider" by 2025, moving toward
for becoming a comprehensive sustainable enterprise.

Shuang-Lang (Paul) Peng,
Chairman and Group CSO

Frank Ko,
President and CEO

4

AUO Digitech Taiwan Inc.
AUO Envirotech Inc.
6
AUO Energy Business Headquarters.
5-10-

Benjamin Tseng,
Chief Financial Officer andChief Accounting Officer

Attachment 2
Audit Committee’s Review Report

The Board of Directors has prepared the Company’s Business Report, Financial Statements, andEarnings Distribution Proposal for the year of 2023. Yu, Chi-Lung and Yu, Wan-Yuan, Certified Public
Accountants of KPMG, have audited the Financial Statements and issued an audit report relating to the
Financial Statements. The 2023 Business Report, Financial Statements, and Earnings Distribution
Proposal have been reviewed and determined to be correct and accurate by the Audit Committee of
AUO Corporation. I, as the Chair of the Audit Committee, hereby submit this report according to
Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act.

AUO Corporation
Chair of the Audit Committee

Chin-Bing (Philip) Peng

March 11, 2024

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Attachment 3
Independent Auditors’ Report

To the Board of Directors of AUO Corporation:
OpinionWe have audited the parent company only financial statements of AUO Corporation (“the Company”),
which comprise the balance sheets as of December 31, 2023 and 2022, the statements ofcomprehensive income, statements of changes in equity and statements of cash flows for the years
ended December 31, 2023 and 2022, and notes to the parent company only financial statements,
including a summary of significant accounting policies.
In our opinion, the accompanying parent company only financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 2023 and 2022, and its financial
performance and its cash flows for each of the years then ended, in accordance with the Regulations
Governing the Preparation of Financial Reports by Securities Issuers.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of
Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic ofChina. Our responsibilities under those standards are further described in the Auditors’
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Company 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 theserequirement. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis of our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the parent company only financial statements of the current period. These matters wereaddressed in the context of our audit of the parent company only financial statements as a whole, andin forming our opinion thereon, and we do not provide a separate opinion on these matters. We havedetermined the matters described below to be the key audit matters to be communicated in ourreport.
1. Impairment of long-term non-financial assets (including goodwill)
Refer to Note 4(14) “Impairment – non-financial assets”, Note 5(1) and Note 5(2) “Critical
Accounting Judgments and Key Sources of Estimations and Assumptions Uncertainty”, Note 6(7)“Property, Plant and Equipment”, Note 6(8) “Lease Arrangements” and Note 6(10) “Intangible
Assets” to the parent company only financial statements.

-12-Description of key audit matter:
The Company operates in an industry with high investment costs, has goodwill through theacquisition of subsidiaries, and may experience volatility in response to changes in the externalmarket; hence, it is important to assess the impairment of its long-term non-financial assets(including goodwill). The impairment assessment includes identifying cash-generating units,determining a valuation model, determining significant assumptions, and computing recoverable
amounts. With the complexity of the impairment assessment process and the involvement ofsignificant management judgment regarding assumptions used, this is one of the key areas our audit
focused on.
How the matter was addressed in our audit:
In relation to the key audit matter above, our principal audit procedures included understanding andtesting the Company’s controls surrounding the impairment assessment and testing process;assessing whether there are impairment indications for the identified cash-generating units of theCompany and its related assets; understanding and assessing the appropriateness of the valuation
model used by the management in the impairment assessment and the significant assumptions used
to determine related assets’ future cash flows projection, useful lives, and weighted-average cost ofcapital; retrospectively reviewing the accuracy of assumptions used in prior-period estimates andperforming a sensitivity analysis of key assumptions and results; in addition to the above audit
procedures, appointing specialists to evaluate the appropriateness of the weighted-average cost ofcapital used and related assumptions; performing an inquiry of the management and identifying any
event after the balance sheet date if able to affect the results of the impairment assessment; andassessing the adequacy of the Company’s
disclosures of its policy on impairment of noncurrent
non-financial assets and other related disclosures.
2. Revenue recognition
Refer to Note 4(17)“Revenue from contracts with customers”and Note 6(17)“Revenue fromContracts with Customers” to the parent company only financial statements.
Description of key audit matter:
Revenue is recognized when the control over a product has been transferred to the customer as
specified in each individual contract with customers. The Company recognizes revenue depending on
the various sales terms in each individual contract with customers to ensure the performanceobligation has been satisfied by transferring control over a product to a customer. In addition, theCompany operates in an industry in which revenue is considered to be complex in determining thetiming of revenue recognition. Consequently, this is one of the key areas our audit focused on.
How the matter was addressed in our audit:
In relation to the key audit matter above, our principal audit procedures included understanding andtesting the Company’s controls surrounding revenue recognition; assessing whether appropriate
revenue recognition policies are applied through comparison with accounting standards andunderstanding the Company’s main revenue types, its related sales agreements, and sales terms; on asample basis, inspecting contracts with customers or customers’ orders and assessing whether theaccounting treatment of the related contracts (including sales terms) is applied appropriately;
performing a test of details of sales revenue and understanding the rationale for any identified
significant sales fluctuations and any significant reversals of revenue through sales discounts and sales
returns which incurred within a certain period before or after the balance sheet date; and assessing
the adequacy of the Company’s disclosures of its revenue recognition policy and other related
disclosures.
-13-Responsibilities of Management and Those Charged with Governance for the Parent Company Only
Financial Statements
Management is responsible for the preparation and fair presentation of the parent company only
financial statements in accordance with Regulations Governing the Preparation of Financial Reports by
Securities Issuers and for such internal control as management determines is necessary to enable thepreparation of parent company only financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the parent company only financial statements, management is responsible for assessing theCompany’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 Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (inclusive of the Audit Committee) are responsible for overseeing theCompany’s
financial reporting process.
Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements
Our objectives are to obtain reasonable assurance about whether the parent company only financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s 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 Republicof 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 parent company only
financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise
professional judgment and professional skepticism throughout the audit. We also:
1. Identified and assessed the risks of material misstatement of the parent company only financial
statements, whether due to fraud or error, design and perform audit procedures responsive to thoserisks, 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. Obtained 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 Company’s internal control.
3. Evaluated the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
4. Concluded 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 orconditions that may cast significant doubt on the Company’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 parent company only financial statements or, if suchdisclosures 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 theCompany to cease to continue as a going concern.

-14-5. Evaluated the overall presentation, structure and content of the parent company only financial
statements, including the disclosures, and whether the parent company only financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
6. Obtained sufficient and appropriate audit evidence regarding the financial information of the entities
or business activities within the Company to express an opinion on the parent company only
financial statements. We are responsible for the direction, supervision and performance of the groupaudit. We remain solely responsible for our audit opinion.
We communicated 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 ininternal control that we identified during our audit.
We also provided those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and communicated 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 determined those mattersthat were of most significance in the audit of the parent company only financial statements of thecurrent period 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 extremelyrare 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 audit resulting in this independent auditors’ report are Yu, Chi-Lungand Yu, Wan-Yuan.

KPMG
Hsinchu, Taiwan (Republic of China)
January 31, 2024

Notes to Readers
The accompanying parent company only financial statements are intended only to present the financial position, financial performance andcash flows in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with theInternational Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory
Commission of the Republic of China. The standards, procedures and practices to such parent company only financial statements arethose generally accepted and applied in the Republic of China.

-15-

AUO CORPORATION
Balance Sheets
December 31, 2023 and 2022
(Expressed in thousands of New Taiwan dollars)

Assets
1100
1110
1170
1180
1210
1220
130X
1410
1476
1479

1517
1550
1600
1755
1760
1780
1840
1900

Current assets:
Cash and cash equivalents
Financial assets at fair value through profit or loss－current
Notes and accounts receivable, net
Accounts receivable from related parties, net
Other receivables from related parties
Current tax assets
Inventories
Prepayments
Other current financial assets
Other current assets

December 31, 2023
Amount%$Noncurrent assets:
Financial assets at fair value through other comprehensive income－noncurrent
Investments in equity-accounted investees
Property, plant and equipment
Right-of-use assets
Investment property
Intangible assets
Deferred tax assets
Other noncurrent assets

Total Assets

30,581,959
132,527
14,795,145
4,612,869
2,137,997
280,343
17,158,208
1,531,715
2,068,906
74,83673,374,505

126,941,076
116,683,030
7,352,001
465,868
9,426,902
7,765,164
2,798,920
271,432,961$

December 31, 2022
Amount
%
9

4
1
1
5
1
21

37
34
2
3
2
1
79

344,807,466 100

42,441,718
169,455
12,408,519
5,347,662
2,050,395
21,306
17,295,755
1,833,558
1,530,474
153,245
83,252,087

85,362
124,210,952
118,164,834
7,810,704
465,868
9,464,184
5,656,311
2,850,401
268,708,616

12
4
2
5
1
24

35
33
2
3
2
1
76

Liabilities and Equity
2120
2170
2180
2213
2220
2230
2250
2280
2399
2322

Current liabilities:
Financial liabilities at fair value through profit or loss－current
Notes and accounts payable
Accounts payable to related parties
Equipment and construction payable
Other payables to related parties
Current tax liabilities
Provisions－current
Lease liabilities－current
Other current liabilities
Current installments of long-term borrowings

2527
2540
2550
2570
2580
2600

Noncurrent liabilities:
Contract liabilities－noncurrent
Long-term borrowings, excluding current installments
Provisions－noncurrent
Deferred tax liabilities
Lease liabilities－noncurrent
Other noncurrent liabilities

AmountTotal liabilities

3100
3200
3300
3400
3500

351,960,703 100-16-Equity :Common stock
Capital surplus
Retained earnings
Other components of equity
Treasury shares
Total equity
Total Liabilities and Equity$%

Amount%-6,817
16,836,244
27,432,932
4,366,588
224,275
1,828,855
409,888
18,189,980
9,018,000
78,313,579

-

5
3
23

89,77618,037,634
24,231,794
4,002,367
249,047
509,975
443,197401,297
17,913,439
10,371,000
76,249,526

6,239,558
89,289,344
642,4612,860,412
7,233,981
1,060,924
107,326,680
185,640,259

2
26
1
2
31
54

8,739,846
68,197,393
609,175
4,078,266
7,654,368
1,333,038
90,612,086
166,861,612

3
19
1
2
1
26
47

76,993,961 22
54,998,829 16
31,899,740
9(4,484,899) (1)(240,424) 159,167,207 46
344,807,466 100

76,993,961
61,942,210
50,078,752(3,620,305)(295,527)
185,099,091
351,960,703

22
18
14
(1)
53
100

5
8
1
1
-

5
7
1
5
3
21

AUO CORPORATIONStatements of Comprehensive Income
For the years ended December 31, 2023 and 2022
(Expressed in thousands of New Taiwan dollars, except for Earnings (loss) per share)

4110
4190
5000

6100
6200
6300

7100
7010
7020
7050
7060
7900
7950
8200
8300
8310
8311
8316
8330
8349
8360
8361
8380
8399
8300
8500
9750
9850

RevenueLess: sales return and discountNet revenue
Cost of sales
Gross loss
Operating expenses:
Selling and distribution expenses
General and administrative expenses
Research and development expenses
Total operating expenses
Loss from operations
Non-operating income and expenses:
Interest income
Other income
Other gains and losses
Finance costs
Share of profit of equity-accounted investees
Total non-operating income and expenses
Loss before income tax
Less: income tax expense (benefit)
Loss for the year
Other comprehensive income:Items that will never be reclassified to profit or loss
Remeasurement of defined benefit obligations
Unrealized gain (loss) on equity investments at fair value throughother comprehensive income
Equity-accounted investees – share of other comprehensive
incomeRelated tax
Items that are or may be reclassified subsequently to profit or loss
Foreign operations – foreign currency translation differences
Equity-accounted investees – share of other comprehensive
incomeRelated tax
Other comprehensive income (loss), net of tax
Total comprehensive income (loss) for the year
Earnings (loss) per share (NT$)
Basic earnings (loss) per share
Diluted earnings (loss) per share

2023
Amount$ 216,433,131
1,752,337
214,680,794
222,806,471(8,125,677)

%
101
1
100
105
(5)

3,008,733
4,970,709
10,075,719
18,055,161(26,180,838)

1
3,029,807
2
4,631,479
5 10,129,375
8 17,790,661(12) (28,397,062)

1
2
5
8
(13)

421,509849,906(1,127,151)(2,298,117)
5,776,406
3,622,553(22,558,285)(4,355,011)(18,203,274)

386,558
862,214(1) (1,200,499)(1) (1,127,843)
38,383,800
1
7,304,230(11) (21,092,832)
(2)
8,542
(9) (21,101,374)

(1)
4
3
(10)
(10)

4,260

-

58,558

-

(401)

-

19,373-401,933(852)
404,940-(1,324,473)(11,712)(1,258,254)

(1)
(1)

(96,911)-

7,463,944

3(4,511,574)(485,287)
2,467,083
1,208,829(9) (19,892,545)

(2)
1
(10)

(1,403,006)
254,645(1,245,272)(840,332)$ (19,043,606)
$
$

-17-

2022
Amount217,686,089
2,515,723
215,170,366
225,776,767(10,606,401)

%
101
1
100
104
(4)

(2.37)(2.37)(2.39)(2.39)

AUO CORPORATIONStatements of Changes in Equity
For the years ended December 31, 2023 and 2022
(Expressed in thousands of New Taiwan dollars)

Capital Stock
CommonStock$96,242,451

Balance at January 1, 2022
Appropriation of earnings:
Legal reserve
Special reserve
Cash dividends distributed to shareholders
Loss for the year
Other comprehensive income (loss), net of tax
Total comprehensive income (loss) for the year
Donations from shareholders
Adjustments for changes in investees’ equity
Capital reduction
Share-based payments
Disposal of equity investments measured at fair value
through other comprehensive income
Balance at December 31, 2022
Appropriation of earnings:
Reversal of special reserve
Loss for the year
Other comprehensive income (loss), net of tax
Total comprehensive income (loss) for the year
Cash distribution from capital surplus
Donations from shareholders
Differences between consideration and carrying
amount arising from acquisition or disposal ofinterest in subsidiary
Adjustments for changes in investees' equity
Share-based payments
Disposal of equity investments measured at fair value
through other comprehensive income
Balance at December 31, 2023$

Capital Surplus
60,057,001(19,248,490)--

Legal Reserve
8,427,144

Retained Earnings
UnappropriatedSpecial Reserve
Earnings
3,270,303
68,972,551

Subtotal
80,669,998

Other Components of Equity
Unrealized
Gains (Losses)
on Financial Assets
at Fair Value
through
Cumulative
Other
Translation
Comprehensive
Differences
Income(4,873,573)
130,391

Subtotal(4,743,182)

Treasury Shares(439,228)

Total Equity
231,787,040

96,842
46,859(9,575,824)(21,101,374)
1,208,829(19,892,545)
1,095
1,812,907(19,151,648)
118,066(295,527)

185,099,091

1,095
1,812,907
71,207

5,326,268-

1,472,878-(5,326,268)(1,472,878)(9,575,824)(21,101,374)
44,298(21,057,076)-(9,575,824)(21,101,374)
44,298(21,057,076)-

2,467,083
2,467,083-(1,302,552)(1,302,552)-

1,164,531
1,164,531--

76,993,961

61,942,210

13,753,412

4,743,181

41,654
31,582,159

41,65450,078,752(2,406,490)(41,654)(1,213,815)(41,654)(3,620,305)--(6,134,305)
3,712

-

(1,122,876)-

1,122,876(18,203,274)
44,759(18,158,515)-(18,203,274)
44,759(18,158,515)-(1,245,272)(1,245,272)
-

-

-

-

-

-

(18,203,274)(840,332)(19,043,606)(6,134,305)
3,712

-

(16,137)(874,755)
78,104

-

-

-

-

-

-

-

55,103(16,137)(874,755)
133,207

76,993,961

54,998,829

13,753,412

3,620,305(20,497)
14,526,023(20,497)
31,899,740(3,651,762)

20,497(4,484,899)(240,424)

159,167,207-18-

360,181360,181

20,497(833,137)(885,091)(885,091)

AUO CORPORATIONStatements of Cash Flows
For the years ended December 31, 2023 and 2022
(Expressed in thousands of New Taiwan dollars)

Cash flows from operating activities:
Loss before income tax$
Adjustments for:- depreciation- amortization- losses (gains) on financial instruments at fair value through profit
or loss, net- interest expense- interest income- dividend income- compensation costs of share-based payments- share of profit of equity-accounted investees- gains on disposals of property, plant and equipment- impairment losses on assets- unrealized foreign currency exchange losses (gains)- others
Changes in operating assets and liabilities:- accounts receivable- receivables from related parties- inventories- net defined benefit assets- other operating assets- contract liabilities- notes and accounts payable- payables to related parties- provisions- other operating liabilities
Cash inflow (outflow) generated from operations
Interest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

2023

2022

(22,558,285)(21,092,832)

20,541,130
37,282(46,031)

19,845,290
118,802
11,461

2,239,466(421,509)
53,357(5,776,406)(24,783)
126,460(282,867)
58,651

976,170(386,558)(1,559)70,352(8,383,800)(3,192)
1,121,772
560,099
138,935(3,253,947)
1,001,917
137,547(569)(9,850)(476,498)(163,676)
3,176,366
1,439,229(2,025,796)(6,228,812)
423,2312,949,113(2,210,241)(346,641)(5,413,350)

36,027,128
2,550,124
4,395,797
3,090
255,505(1,551,093)(7,438,696)(9,207,644)(449,572)(9,058,509)
8,501,070
389,937
3,810,426(930,473)(6,244)
11,764,716(Continued)-19-

Cash flows from investing activities:
Disposals of financial assets at fair value through profit or loss
Disposals of financial assets at amortized cost
Acquisitions of equity-accounted investees
Proceeds from capital reduction of equity-accounted investees
Acquisitions of property, plant and equipment
Disposals of property, plant and equipment
Decrease (increase) in refundable deposits
Decrease (increase) in other receivables from related party
Decrease in other financial assets
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Payment of lease liabilities
Increase in received guarantee deposits
Cash dividends and cash distribution from capital surplus
Capital reduction payments to shareholders
Treasury shares sold to employees
OthersNet cash provided by financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at January 1
Cash and cash equivalents at December 31

-20-

$

2023

2022

(2,565,902)
764,000(18,294,568)
25,880(86,731)505,000
6,035(19,646,286)

5,440
10,000,000(5,993,878)(18,135,881)
516,127
95,645(140,000)(13,652,547)

2,800,000(2,800,000)
50,723,300(31,043,000)(405,769)
1,375(6,134,305)
73,011
3,712
13,218,324(18,447)(11,859,759)
42,441,718
30,581,959

59,583,475(21,814,000)(401,791)(9,575,824)(19,151,648)
46,7181,095
8,688,025
20,5866,820,780
35,620,938
42,441,718

Attachment 4
Independent Auditors’ Report
To the Board of Directors of AUO Corporation:
OpinionWe have audited the consolidated financial statements of AUO Corporation (formerly AU Optronics
Corp.) and its subsidiaries (“the Company”), which comprise the consolidated balance sheets as ofDecember 31, 2023 and 2022, the consolidated statements of comprehensive income, consolidated
statements of changes in equity and consolidated statements of cash flows for the years ended
December 31, 2023 and 2022, and notes to the consolidated financial statements, including a summaryof material accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of the Company as of December 31, 2023 and 2022, and its
consolidated financial performance and its consolidated cash flows for each of the years then ended,in accordance with the Regulations Governing the Preparation of Financial Reports by Securities
Issuers and with the International Financial Reporting Standards (“IFRS”), International AccountingStandards (“IAS”), Interpretations developed by the International Financial Reporting Interpretations
Committee ( “IFRIC” ) or the former Standing Interpretations Committee (“SIC”) endorsed andissued into effect by the Financial Supervisory Commission of the Republic of China.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of
Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic ofChina. 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 Company 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 inaccordance with these requirement. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis of our opinion.
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 of the current period. 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. We have determined the mattersdescribed below to be the key audit matters to be communicated in our report.
1. Impairment of long-term non-financial assets (including goodwill)
Refer to Note 4(15) “Impairment – non-financial assets”, Note 5(1) and Note 5(2) “Critical
Accounting Judgments and Key Sources of Estimations and Assumptions Uncertainty”, Note 6(9)“Property, Plant and Equipment”, Note 6(10) “Lease Arrangements” and Note 6(12) “Intangible
Assets” to the consolidated financial statements.

-21-

Description of key audit matter:
The Company operates in an industry with high investment costs, has goodwill through theacquisition of subsidiaries, and may experience volatility in response to changes in the externalmarket; hence, it is important to assess the impairment of its long-term non-financial assets(including goodwill). The impairment assessment includes identifying cash-generating units,determining a valuation model, determining significant assumptions, and computing recoverable
amounts. With the complexity of the impairment assessment process and the involvement ofsignificant management judgment regarding assumptions used, this is one of the key areas our audit
focused on.
How the matter was addressed in our audit:
In relation to the key audit matter above, our principal audit procedures included understanding andtesting the Company’s controls surrounding the impairment assessment and testing process;assessing whether there are impairment indications for the identified cash-generating units of theCompany and its related assets; understanding and assessing the appropriateness of the valuation
model used by the management in the impairment assessment and the significant assumptions used
to determine related assets’ future cash flows projection, useful lives, and weighted-average cost ofcapital; retrospectively reviewing the accuracy of assumptions used in prior-period estimates andperforming a sensitivity analysis of key assumptions and results; in addition to the above audit
procedures, appointing specialists to evaluate the appropriateness of the weighted-average cost ofcapital used and related assumptions; performing an inquiry of the management and identifying any
event after the balance sheet date if able to affect the results of the impairment assessment; andassessing the adequacy of the Company’s disclosures of its policy on impairment of noncurrent
non-financial assets and other related disclosures.
2. Revenue recognition
Refer to Note 4(18) “Revenue from contracts with customers” and Note 6(20) “Revenue fromContracts with Customers” to the consolidated financial statements.
Description of key audit matter:
Revenue is recognized when the control over a product has been transferred to the customer as
specified in each individual contract with customers. The Company recognizes revenue depending on
the various sales terms in each individual contract with customers to ensure the performanceobligation has been satisfied by transferring control over a product to a customer. In addition, theCompany operates in an industry in which revenue is considered to be complex in determining thetiming of revenue recognition. Consequently, this is one of the key areas our audit focused on.
How the matter was addressed in our audit:
In relation to the key audit matter above, our principal audit procedures included understanding andtesting the Company’s controls surrounding revenue recognition; assessing whether appropriate
revenue recognition policies are applied through comparison with accounting standards andunderstanding the Company’s main revenue types, its related sales agreements, and sales terms; on asample basis, inspecting contracts with customers or customers’ orders and assessing whether theaccounting treatment of the related contracts (including sales terms) is applied appropriately;
performing a test of details of sales revenue and understanding the rationale for any identified
significant sales fluctuations and any significant reversals of revenue through sales discounts and sales
returns which incurred within a certain period before or after the balance sheet date; and assessing
the adequacy of the Company’s disclosures of its revenue recognition policy and other related
disclosures.
-22-

Other Matters
AUO Corporation has additionally prepared its parent-company-only financial statements as of and forthe years ended December 31, 2023 and 2022, on which we have issued an unmodified audit opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with Regulations Governing the Preparation of Financial Reports by
Securities Issuers and with the IFRS, IAS, IFRIC, 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 freefrom material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing theCompany’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 Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (inclusive of the Audit Committee) are responsible for overseeing theCompany’s
financial reporting process.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
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 auditor’sreport that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with the Standards on Auditing of the Republic ofChina 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 professional skepticism throughout the audit. We also:
1. Identified and assessed 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, andobtain 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 fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.
2. Obtained 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 Company’s internal control.
3. Evaluated the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
4. Concluded 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 orconditions that may cast significant doubt on the Company’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’-23-

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 Company tocease to continue as a going concern.
5. Evaluated the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
6. Obtained sufficient and appropriate audit evidence regarding the financial information of the entities
or business activities within the Company 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.
We communicated 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 ininternal control that we identified during our audit.
We also provided those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and communicated 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 determined those mattersthat were of most significance in the audit of the consolidated financial statements of the current
period 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 theadverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
The engagement partners on the audit resulting in this independent auditors’report are Yu, Chi-Lungand Yu, Wan-Yuan.

KPMG
Hsinchu, Taiwan (Republic of China)
January 31, 2024

Notes to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial
performance and cash flows in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers andwith the IFRS, IAS, IFRIC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. The
standards, procedures and practices to such consolidated financial statements are those generally accepted and applied in the Republic ofChina.

-24-

AUO CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 2023 and 2022
(Expressed in thousands of New Taiwan dollars)

Assets
1100
1110
1136
1170
1180
1210
1220
130X
1410
1460
1476
1479

1510
1517
1535
1550
1600
1755
1760
1780
1840
1920
1990

Current assets:
Cash and cash equivalents
Financial assets at fair value through profit or loss－current
Financial assets at amortized cost－current
Notes and accounts receivable, net
Accounts receivable from related parties, net
Other receivables from related parties
Current tax assets
Inventories
Prepayments
Noncurrent assets held for sale
Other current financial
Other current assets

December 31, 2023
Amount%$Noncurrent assets:
Financial assets at fair value through profit or loss－noncurrent
Financial assets at fair value through other comprehensive income－noncurrent
Financial assets at amortized cost－noncurrent
Investments in equity-accounted investees
Property, plant and equipment
Right-of-use assets
Investment property
Intangible assets
Deferred tax assets
Refundable deposits
Other noncurrent assets

83,969,463
176,492584,217
22,798,408
1,244,546
15,305
307,874
29,003,121
2,654,523
3,130,373
326,391
144,210,713

22
6
8
1
1
38

139,170-

1,832,068
680,107
29,383,580
171,172,804
9,770,626
1,320,901
11,268,867
10,201,660
1,102,087
2,388,154
239,260,024

8
45
2
3
3
1
62

December 31, 2022
Amount
%80,613,120
365,037
18,620,248
1,255,503
6,139
41,18630,263,713
3,440,926
586,406
4,593,094
391,435
140,176,807
1,900,581
1,142,218
31,743,902
178,833,837
9,800,458
1,393,244
11,396,241
6,649,457
925,517
2,878,412
246,663,867

Liabilities and Equity

21
5
8
1
1
36
1
8
46
3
3
2
1
64

2100
2120
2170
2180
2213
2220
2230
2250
2280
2399
2322

Current liabilities:
Short-term borrowings
Financial liabilities at fair value through profit or loss－current
Notes and accounts payable
Accounts payable to related parties
Equipment and construction payable
Other payables to related parties
Current tax liabilities
Provisions－current
Lease liabilities－current
Other current liabilities
Current installments of long-term borrowings

2527
2540
2550
2570
2580
2600

Noncurrent liabilities:
Contract liabilities－noncurrent
Long-term borrowings, excluding current installments
Provisions－noncurrent
Deferred tax liabilities
Lease liabilities－noncurrent
Other noncurrent liabilities

3100
3200
3300
3400
3500

Total liabilities
Equity:Equity attributable to shareholders of AUO Corporation:
Common stock
Capital surplus
Retained earnings
Other components of equity
Treasury shares

36XX
Total Assets$

383,470,737 100

386,840,674 100-25-

Non-controlling interests
Non-controlling interests
Total equity
Total Liabilities and Equity

December 31, 2023
Amount%$$December 31, 2022
Amount%263,000
11,14343,433,269
5,203,290
6,135,421
48,281
1,083,671
2,399,306
644,259
25,291,133
10,062,194
94,574,967

11
1
2
1
7
3
25

128,487
351,825
41,479,524
5,890,185
7,882,627
27,853
1,567,623
559,654583,251
24,812,498
13,884,634
97,168,161

11
2
2
6
4
25

6,239,558
101,524,840
881,394
3,936,644
8,684,270
2,271,528
123,538,234
218,113,201

2
26
1
2
1
32
57

8,739,846
72,930,817
909,405
5,101,186
8,661,640
1,918,971
98,261,865
195,430,026

3
19
1
2
1
26
51

76,993,961
54,998,829
31,899,740(4,484,899)(240,424)
159,167,207

20
14
8
(1)
41

76,993,961
61,942,210
50,078,752(3,620,305)(295,527)
185,099,091

20
16
13
(1)
48

6,190,329
2
165,357,536 43
383,470,737 100

6,311,557
1
191,410,648 49
386,840,674 100

AUO CORPORATION AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2023 and 2022
(Expressed in thousands of New Taiwan dollars, except for Earnings (loss) per share)
4110
4190
5000
6100
6200
6300

7100
7010
7020
7050
7060
7900
7950
8200
8300
8310
8311
8316
8320
8349
8360
8361
8370
8399
8300
8500

RevenueLess: sales return and discountNet revenue
Cost of sales
Gross profit (loss)
Operating expenses :Selling and distribution expenses
General and administrative expenses
Research and development expenses
Total operating expenses
Loss from operations
Non-operating income and expenses:
Interest income
Other income
Other gains and losses
Finance costs
Share of profit of equity-accounted investees
Total non-operating income and expenses
Loss before income tax
Less: income tax expense (benefit)
Loss for the year
Other comprehensive income:Items that will never be reclassified to profit or loss
Remeasurement of defined benefit obligations
Unrealized loss on equity investments at fair value through othercomprehensive income
Equity-accounted investees – share of other comprehensive
incomeRelated tax
Items that are or may be reclassified subsequently to profit or loss
Foreign operations – foreign currency translation differences
Equity-accounted investees – share of other comprehensive
incomeRelated tax

8610
8620

Other comprehensive income, net of tax
Total comprehensive income (loss) for the year
Profit (loss) attributable to:Shareholders of AUO Corporation
Non-controlling interests

8710
8720

Total comprehensive income (loss) attributable to:Shareholders of AUO Corporation
Non-controlling interests

9750
9850

Earnings (loss) per share (NT$)
Basic earnings (loss) per share
Diluted earnings (loss) per share

2023
Amount$ 250,048,326
2,083,889
247,964,437
243,354,069
4,610,368

2022%
Amount101 249,956,539
1
3,163,865
100 246,792,674
98 245,225,166
2
1,567,508

%
101
1
100
99
1

5,019,739
8,321,194
13,231,450
26,572,383(21,962,015)

2
4,817,426
4
7,852,697
5 12,867,781
11 25,537,904(9) (23,970,396)

2
3
5
10
(9)

1,915,078
1,999,172(391,363)(2,724,883)(518,049)
279,955(21,682,060)(3,530,906)(18,151,154)

1
1878,975
3,211,169(121,274)(1,507,963)
2,003,297
4,464,204(19,506,192)
1,466,988(20,973,180)

1
1
2
(7)
1
(8)

4,074

-

58,455-(36,180)-

57,359-446,924(1,725)413,093-(1,362,377)(11,691)(1,258,254)

(1)
(1)

(1)

2,388,106

1(1,540,996)(73,173)290,245(1,323,924)(910,831)$ (19,061,985)

562,474(490,056)(1)2,460,524(1)
1,202,270(8) (19,770,910)-$ (18,203,274)
52,120$ (18,151,154)(7) (21,101,374)
128,194(7) (20,973,180)

(8)
(8)

$ (19,043,606)(18,379)$ (19,061,985)(8) (19,892,545)
121,635(8) (19,770,910)

(8)
(8)

$
$

-26-

(1)
1
(8)
(1)
(7)

(2.37)(2.37)

1(8)(2.39)(2.39)

AUO CORPORATION AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2023 and 2022
(Expressed in thousands of New Taiwan dollars)

Equity Attributable to Shareholders of AUO Corporation
Other Components of Equity
Unrealized
Gains (Losses)
on Financial
Assets at Fair
Value throughRetained Earnings
Cumulative
Other
UnappropriatedTranslation
Comprehensive
Legal Reserve
Special Reserve
Earnings
Subtotal
Differences
IncomeSubtotal
Treasury Shares
8,427,144
3,270,303
68,972,551
80,669,998(4,873,573)
130,391(4,743,182)(439,228)

EquityAttributable to
Shareholders
of AUO
Corporation
231,787,040

Capital Stock
CommonStock$96,242,451

Capital Surplus
60,057,001--

5,326,268-

1,472,878-(5,326,268)(1,472,878)(9,575,824)(21,101,374)
44,298(9,575,824)(21,101,374)
44,2982,467,083(1,302,552)

1,164,531-(9,575,824)(21,101,374)
1,208,829-

Balance at January 1, 2022
Appropriation of earnings:
Legal reserve
Special reserve
Cash dividends distributed to shareholders
Profit (loss) for the year
Other comprehensive income (loss), net oftax
Total comprehensive income (loss) for theyear
Donations from shareholders
Adjustments for changes in investees’ equity
Capital reduction
Share-based payments
Disposal of equity investments measured atfair value through other comprehensive
incomeChanges in non-controlling interests
Balance at December 31, 2022
Appropriation of earnings:
Reversal of special reserve
Profit (loss) for the year
Other comprehensive income (loss), net oftax
Total comprehensive income (loss) for theyear
Cash distribution from capital surplus
Donations from shareholders
Differences between consideration andcarrying amount arising from acquisition or
disposal of interest in subsidiary
Adjustments for changes in investees' equity
Share-based payments
Disposal of equity investments measured atfair value through other comprehensive
incomeChanges in non-controlling interests
Balance at December 31, 2023$

(19,248,490)-

1,095
1,812,907
71,207--(21,057,076)-(21,057,076)-

2,467,083-(1,302,552)-

1,164,531-

96,842
46,859(19,892,545)
1,095
1,812,907(19,151,648)
118,066

76,993,961

61,942,210

13,753,412

4,743,181

41,654
31,582,159

41,65450,078,752(2,406,490)(41,654)(1,213,815)(41,654)(3,620,305)(295,527)

185,099,091

-

-

-

(1,122,876)-

1,122,876(18,203,274)
44,759(18,203,274)
44,759(1,245,272)-(885,091)-(18,203,274)(840,332)-(6,134,305)
3,712

-

-

(18,158,515)-(18,158,515)-(1,245,272)--(885,091)--(19,043,606)(6,134,305)
3,712

-

(16,137)(874,755)
78,104

-

-

-

-

-

-

-

55,103(16,137)(874,755)
133,207

76,993,961

54,998,829

13,753,412

3,620,305(20,497)
14,526,023(20,497)
31,899,740(3,651,762)

20,497(833,137)

20,497(4,484,899)(240,424)

159,167,207-27-

360,181360,181

Noncontrolling
Interests
6,179,431
128,194(6,559)121,635
604
12,699-Total Equity
237,966,471(9,575,824)(20,973,180)
1,202,270(19,770,910)
1,095
1,813,511(19,151,648)
130,765-(2,812)
6,311,557(2,812)
191,410,648-(18,151,154)(910,831)

52,120(70,499)(18,379)(19,061,985)(6,134,305)
3,712

16,137(25,675)
867(900,430)
134,074-(94,178)
6,190,329(94,178)
165,357,536

AUO CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the years ended December 31, 2023 and 2022
(Expressed in thousands of New Taiwan dollars)

Cash flows from operating activities:
Loss before income tax$
Adjustments for:- depreciation- amortization- net gains on financial instruments at fair value through profit orloss- interest expense- interest income- dividend income- compensation costs of share-based payments- share of loss (profit) of equity-accounted investees- gains on disposal of property, plant and equipment- gains on disposal of noncurrent assets held for sale- gains on disposal of investments- impairment losses on assets- unrealized foreign currency exchange losses (gains)- others
Changes in operating assets and liabilities:- notes and accounts receivable- receivables from related parties- inventories- other operating assets- contract liabilities- notes and accounts payable- payables to related parties- provisions- other operating liabilities
Cash inflow generated from operations
Interest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

2023

2022

(21,682,060)(19,506,192)

32,379,064
126,480(53,869)

31,281,587
184,766(85,959)

2,660,885(1,915,078)(2,585)61,066
518,049(53,350)(1,069,530)(116)
210,771(364,148)
101,025

1,349,724(878,975)(6,571)
84,085(2,003,297)(1,024,832)
1,179,565
158,438
82,019(4,844,979)
1,791
1,266,186
385,546(440,614)
2,755,404(666,467)
1,832,878(395,560)
10,810,789
1,855,266
1,599,601(2,632,179)(1,639,914)
9,993,563

39,381,310
1,238,452
4,214,575(48,157)(1,507,156)(12,705,469)(2,979,734)(489,391)(9,677,630)
28,241,158
782,513
1,827,279(1,522,704)(2,357,288)
26,970,958(Continued)

-28-

2023
Cash flows from investing activities:
Acquisitions of financial assets at fair value through othercomprehensive income
Disposals of financial assets at fair value through other comprehensive
incomeAcquisitions of financial assets at amortized cost
Disposals of financial assets at amortized cost
Acquisitions of financial assets at fair value through profit or loss
Disposals of financial assets at fair value through profit or loss
Acquisitions of equity-accounted investees
Disposals of equity-accounted investees
Proceeds from disposal of noncurrent assets held for sale
Acquisitions of property, plant and equipment
Disposals of property, plant and equipment
Increase in receipts in advance due to disposal of assets
Decrease (increase) in refundable deposits
Acquisitions of intangible assets
Decrease (increase) in other financial assets
Net cash outflow arising from acquisition of subsidiaries
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Payment of lease liabilities
Decrease in received guarantee deposits
Cash dividends and cash distribution from capital surplus
Capital reduction
Treasury shares sold to employees
Net change of non-controlling interests
OthersNet cash provided by financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at January 1
Cash and cash equivalents at December 31$- 29 -

2022(217,183)(544,218)

74,79910,002(878,405)
770,824(138,231)(105,904)
808,694(26,786,572)
2,293,768(106,096)
315,501(85,579)(24,054,384)(660,262)
10,000,000
5,440(5,183,707)
83,152(35,950,205)
845,768
848,008
83,193(2,929)(743,153)(704,049)(31,912,960)

3,241,000(3,104,249)
63,124,446(38,134,307)(606,200)(2,403)(6,134,305)
73,011(94,178)
3,712
18,366,527(949,363)
3,356,343
80,613,120
83,969,463

539,963(457,499)
64,168,996(32,619,345)(574,590)(20,819)(9,575,824)(19,151,648)
46,718(2,812)
1,095
2,354,235
3,256,201
668,434
79,944,686
80,613,120

Attachment 52023 Earnings Distribution Proposal
Amount in NT$
Items

AmountUnappropriated Retained Earnings, Beginning Balance

32,705,034,866

Add: Change in Remeasurement of Defined Benefit Plan (Note1)

44,759,356

Less: Disposal of Equity Instruments at Fair Value through(20,497,389)

Net Loss after Tax of 2023

(18,203,273,882)

Less: Allowance for Special Reserve (Note 2)(864,593,661)

Unappropriated Retained Earnings, Ending Balance

13,661,429,290

Note 1. Including the Company’s and the adjustments of investments accounted under equity method.
Note 2. The special reserve is set aside based on the balance of special reserve deducting the other componentsof equity as of December 31, 2023.

- 30 -

Attachment 6
Comparison Table for the Rules for the Election of Directors
Before and After the Amendment
Before amendment
The shareholders' meeting held on
April 17, 1997 approved (omitted).

After amendment
Reason of amendment
The shareholders' meeting held on April Additional Amendment
17, 1997 approved (omitted).
Date

The shareholders' meeting held on
June 19, 2009 approved the 4th
amendment.

The shareholders' meeting held on June
19, 2009 approved the 4th amendment.
The shareholders' meeting held on May
30, 2024 approved the 5th amendment.

Article 9deleteIf the candidate is a shareholder of
the Company, voters shall fill the
candidate’s name and shareholder’snumber in the “candidate” column ofthe ballot; if the candidate is not ashareholder of the Company, votersshall fill the candidate’s name and ID
number in the “candidate” column. If
the candidate is a government agency
or a legal entity, voters shall fill thename of the government agency or
the legal entity or the name of theirrepresentative in the column. In theevent that several candidates
represent a government agency or alegal entity, the names of therepresentatives shall be filled
separately in the column.

Article 10

Article 109

A ballot shall be deemed void if sucha ballot:
1. is not a ballot provided under theRules;
2. is placed into the ballot box blank;
3. contains illegible words orcorrections;

A ballot shall be deemed void if such aballot:1. is not a ballot provided under theRules;
2. is placed into the ballot box blank;
3. contains illegible words orcorrections;- 31 -In accordance with Taiwan
Stock Exchange
Corporation No.
1090009468, an Act toamend the Rules for theElection of Directors ofcompanies listed on TWSE
and TPEx, the candidate
nomination system shall be
adopted for the election of
directors. Shareholders are
required to elect directors
from the list of nominees
provided in the roster ofcandidates. Shareholders
will be provided
information regarding thenames, education, andexperience of eachcandidate prior to theshareholders' meeting. It is
not necessary to indicate
the candidate byshareholders' accountnumber or ID number, andsuch information should
be deleted.
In accordance with Article
9, the corresponding
provisions mentioned inthis article should bedeleted and the revised
article number should be
updated.

Before amendment
4. contains a name or shareholder’snumber in the “candidate” column
which is inconsistent with theshareholder’s register if thecandidate is a shareholder of theCompany; Contains a name or ID
number in the “candidate” column
which is incorrect if the candidate is
not a shareholder of the Company;
5. contains any words or marks
other than those specified in Article
9;
6. is not filled out in accordancewith Article 9 or is filledincompletely; or
7. contains two or more candidates.
Article 11
The ballots should be counted during
the meeting right after the votecasting and the results of the election
should be announced by the
Chairman at the meeting.
Article 12
The Rules and any amendment
thereof shall become effective after
approval by the Shareholders’Meeting.

After amendment
4. contains a name or shareholder’snumber in the “candidate” column
which is inconsistent with theshareholder’s register if the candidate isincorrect with a shareholder of theCompany; Contains a name or ID
number in the “candidate” column
directors' candidate list which isincorrect if the candidate is not ashareholder of the Company;
5. Except to filling in the number of
allocated voting rights, the ballot isaltered any words or marks other thanallowed is placed on it. contains thosespecified in Article 9;
6. is not filled out in accordance with
Article 9 or is filled incompletely; or
76. contains two or more candidates.
Article 10

Reason of amendment

In accordance with Article
9, deletion is to be madeThe ballots should be counted during and revise Article number.
the meeting right after the vote casting
and the results of the election should beannounced by the Chairman at themeeting.
Article 11
In accordance with Article
9, deletion is to be madeThe Rules and any amendment thereof and revise Article number.
shall become effective after approval by
the Shareholders’ Meeting.

- 32 -