Brogent Technologies Inc. andSubsidiaries
Consolidated Financial Statements for theYears Ended December 31, 2023 and 2022 andIndependent Auditors’ ReportINDEPENDENT AUDITORS’ REPORTThe Board of Directors and Shareholders
Brogent Technologies Inc.
OpinionWe have audited the accompanying consolidated financial statements of Brogent Technologies Inc. (the“Corporation”) and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidatedbalance sheets as of December 31, 2023 and 2022, and the consolidated statements of comprehensive income,changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements,
including material accounting policy information (collectively referred to as the “consolidated financial
statements”).
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, theconsolidated financial position of the Group as of December 31, 2023 and 2022, and its consolidated financial
performance and its consolidated cash flows for the years then ended in accordance with the Regulations
Governing the Preparation of Financial Reports by Securities Issuers and International Financial ReportingStandards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC
Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republicof China.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Financial Statement Audit andAttestation Engagements of 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 Group inaccordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, andwe have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for 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 for the year ended December 31, 2023. 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.
The key audit matter of the Group’s consolidated financial statements for the year ended December 31, 2023 isstated as follows:
The recognition of project contract revenue
Project contract revenue is the main operating revenue of the Group. The Group recognizes revenue based on
the stage of completion of performance obligations. Since the recognition of project contract revenue iscalculated manually and involves material accounting estimates and judgments, there may be a calculation error;
therefore, it was deemed to be a key audit matter.

-2-

Refer to Notes 4, 5 and 25 for accounting policy on project contract, accounting estimates and assumptions, anddetails of project revenue.
We performed the following audit procedures on the above key audit matter:
1. We obtained an understanding of and tested the design and operating effectiveness of the internal control
relevant to the accuracy of recognition of the project contract revenue, including the measurement of thepercentage of completion.
2. We verified and recalculated, on a sampling basis, the accuracy of the percentage of completion, including
the related supporting documents.
3. We recalculated the sampled project contract revenue measured by the percentage of completion andchecked whether it was recognized correctly.
Other Matter
We have also audited the parent company only financial statements of the Corporation as of and for the years
ended December 31, 2023 and 2022, on which we have issued an unmodified 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 inaccordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IFRS,
IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republicof China, and for such internal control as management determines is necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or
has no realistic alternative but to do so.
Those charged with governance, including the audit committee, are responsible for overseeing the Group’s
financial reporting process.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Group’s internal control.
-3-3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by management.
4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, basedon the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to draw attention in our auditors’ report to the related
disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report.
However, future events or conditions may cause the Group to cease to continue as a going concern.
5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.
6. Obtain sufficient and appropriate audit evidence regarding the financial information of entities or businessactivities within the Group to express an opinion on the consolidated financial statements. We areresponsible for the direction, supervision, and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the consolidated financial statements for the year ended December 31, 2023
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 determinethat a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audits resulting in this independent auditors’ report are Chiu-Yen Wu and
Li-Yuan Kuo.

Deloitte & Touche
Taipei, Taiwan
Republic of China
March 12, 2024
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial
position, financial performance 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, proceduresand practices to audit such consolidated financial statements are those generally applied in the Republic ofChina.
For the convenience of readers, the independent auditors’ report and the accompanying consolidated financial
statements have been translated into English from the original Chinese version prepared and used in the
Republic of China. If there is any conflict between the English version and the original Chinese version or any
difference in the interpretation of the two versions, the Chinese-language independent auditors’ report andconsolidated financial statements shall prevail.
-4-

Brogent Technologies Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETSDECEMBER 31, 2023 AND 2022
(In Thousands of New Taiwan Dollars)
December 31, 2023
Amount%ASSETS
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)
Financial assets at fair value through profit or loss - current (Notes 4 and 7)
Financial assets at fair value through other comprehensive income - current (Notes 4 and 8)
Financial assets at amortized cost - current (Notes 4, 9 and 33)
Accounts receivable, net (Notes 4, 5 and 10)
Contract assets - current (Notes 4, 5 and 25)
Finance lease receivables, net (Notes 4 and 11)
Current tax assets (Notes 4 and 27)
Inventories (Notes 4 and 12)
Prepayments
Refundable deposits - current
Other current assets$

721,736
118,819
130,000
144,788
270,332
1,303,225
891
311,350
63,70233,397

15
2
3
3
6
26
6
1
1

59

3,098,240

63

409,515
1,379
54,413
18,824
736,179
356,727
203,030
125,223
14,651
15,117112,935

8
1
1
15
7
4
3
2

378,155
56,9501,755
758,358
287,013
196,740
90,49919,48464,179

8
1
15
6
4
2
1

2,047,993

41

1,853,13337$ 5,050,393

100$ 4,951,373

100$

495,000
487
55,272
134,490
88,914877
4,964
64,32330,502
163,102
2,445

10
1
3
2
1
1
3
-

$

1,040,376

Total current assets
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current (Notes 4 and 7)
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8)
Financial assets at amortized cost - non-current (Notes 4, 9 and 33)
Investments accounted for using the equity method (Notes 4 and 14)
Property, plant and equipment (Notes 4, 15 and 33)
Right-of-use assets (Notes 4 and 16)
Intangible assets (Notes 4 and 17)
Deferred tax assets (Notes 4 and 27)
Refundable deposits
Long-term finance lease receivables (Notes 4 and 11)
Other non-current assets
Total non-current assets
TOTAL

December 31, 2022
Amount%839,730
32
64,300148,010
638,706
954,078
1,851
1,659
251,618
77,832
5,567
19,017

17
1
3
13
19
5
1
-

3,002,400$

LIABILITIES AND EQUITYCURRENT LIABILITIESShort-term borrowings (Note 18)
Notes payable (Note 20)
Accounts payable (Note 20)
Contract liabilities - current (Note 25)
Other payables (Note 21)
Current tax liabilities (Notes 4 and 27)
Provisions - current (Note 4)
Lease liabilities - current (Notes 4 and 16)
Current portion of long-term borrowings (Note 18)
Current portion of bonds payable (Notes 4 and 19)
Other current liabilities
Total current liabilities
NON-CURRENT LIABILITIESBonds payable (Notes 4 and 19)
Long-term borrowings (Note 18)
Provisions - non-current (Note 4)
Deferred tax liabilities (Notes 4 and 27)
Lease liabilities - non-current (Notes 4 and 16)
Guarantee deposits received
Total non-current liabilities
Total liabilities
EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Note 24)
Share capital
Ordinary shares
Advance receipts for ordinary share
Total share capital
Capital surplus
Retained earnings (deficit to be compensated)
Legal reserve
Special reserve
Accumulated deficit
Total deficit to be compensated
Other equity
Total equity attributable to owners of the Corporation
NON-CONTROLLING INTERESTS (Note 24)
Total equity
TOTAL

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

-5-

321,840
11,772
110,649
68,223
83,2902,490
8,620
64,41449,334
219,204
3,190

7
2
1
2
1
1
5
-

21

943,026

19

79,014
438,089
1,000
13,003329,287
450

2
9
6
-

261,577
268,220
27,010257,167
-

5
5
1
5
-

860,843

17

813,974

16

1,901,219

38

1,757,000

35

647,786571
648,357
2,672,817

13
13
53

614,431
10,743625,174
2,648,189

13
13
54

(167,662)(167,662)(4,338)(4)(4)-

127,421
14,857(243,005)(100,727)
21,484

3
(5)
(2)
-

3,149,174

62

3,194,120

65

-

-

253

-

3,149,174

62

3,194,373

65$ 5,050,393

100$ 4,951,373

100

Brogent Technologies Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(In Thousands of New Taiwan Dollars, Except Loss Per Share)

2023
Amount%2022
Amount%862,703100

803,766

100

OPERATING COSTS (Notes 12 and 26)

500,89158

473,249

59

GROSS PROFIT

361,81242

330,517

41

OPERATING EXPENSES (Notes 9, 25 and 26)
Selling and marketing expenses
General and administrative expenses
Research and development expenses
Expected credit loss

87,209313,728
106,891
78,3521036
13
974,973
293,387
189,445
19,975937
24
2586,18068

577,780

72

OPERATING LOSS

(224,368)(26)(247,263)(31)

NON-OPERATING INCOME AND EXPENSES(Note 26)
Interest income
Other income
Other gains and losses
Finance costs
Share of profit or loss of associates accounted forusing the equity method

13,762
7,851
10,474(27,294)

1
1
1
(3)

8,514
19,022
159,954(23,717)

1
2
20
(3)

(2,708)

-

(468)

-

2,085

-

163,30520(222,283)(26)(83,958)(11)

42,308

5

21,5603(179,975)(21)(62,398)(8)(4,536)(1)

30,000

4(12,217)(1)

30,911
4(Continued)

NET OPERATING REVENUE (Notes 4, 5, 25 and 32)

Total operating expenses

Total non-operating income and expenses
LOSS BEFORE INCOME TAX
INCOME TAX BENEFIT (Notes 4 and 27)
NET LOSS FOR THE YEAROTHER COMPREHENSIVE INCOME (Notes 22 and24)
Items that will not be reclassified subsequently to
profit or loss:
Unrealized gains (losses) on investments in equity
instruments at fair value through othercomprehensive income
Items that may be reclassified subsequently to profit
or loss:
Exchange differences on translation of thefinancial statements of foreign operations

-6-

$

$

Brogent Technologies Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(In Thousands of New Taiwan Dollars, Except Loss Per Share)

2023
AmountShare of the other comprehensive loss of
associates accounted for using the equity
method$Other comprehensive income (loss) for the year,
net of income tax

2022
Amount

%

(163)

-

(16,916)

(2)

$

%

(33)

-

60,878

8TOTAL COMPREHENSIVE LOSS FOR THE YEAR$

(196,891)(23)$(1,520)-

NET LOSS ATTRIBUTABLE TO:
Owners of the Corporation
Non-controlling interests$(179,764)
(211)

(21)
-

$

(60,726)(1,672)(8)-$(179,975)(21)$(62,398)(8)$(196,662)
(229)

(23)
-

$

189
(1,709)-$(196,891)(23)$(1,520)-TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE
TO:
Owners of the Corporation
Non-controlling interests

LOSS PER SHARE (Note 28)
Basic
Diluted$$(2.79)(2.79)

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

-7-

$
$

(0.99)(0.99)(Concluded)

Brogent Technologies Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(In Thousands of New Taiwan Dollars)

Equity Attributable to Owners of the Corporation

BALANCE AT JANUARY 1, 2022
Net loss in 2022
Other comprehensive income in 2022, net of income tax

Ordinary
SharesAdvance
Receipts for
Ordinary
Share

$

$

573,641-

CapitalSurplus36,003-$ 2,501,234-

Retained Earnings (Deficit to be Compensated)
SpecialAccumulated
Legal Reserve
Reserve
Deficit

Exchange
Differences on
Translation of
Foreign
Operations

Other Equity
Unrealized
Gain or loss
On financial
Assets at
FVTOCI$$$

127,421-$

14,857-$ (181,725)(60,726)-(39,431)
30,91530,000Total$

Non-controlling
Interests

Total(39,431)
60,915$ 3,032,000(60,726)
60,915$

Total Equity

1,408(1,672)(37)$ 3,033,408(62,398)
60,878

Total comprehensive loss in 2022
Convertible bonds converted to ordinary shares (Note 19)
Changes in percentage of ownership interest in subsidiaries (Note 13)
Changes in equity of associates accounted for using the equity method

40,790-(25,260)-

146,205750--(60,726)(554)-

30,915-30,000-60,915-

189
161,735(554)
750(1,709)554-(1,520)161,735750

BALANCE AT DECEMBER 31, 2022
Offset the deficit of 2022 (Note 24)
Legal reserve used to offset accumulated deficits
Reversal of special reserve614,431

10,7432,648,189

127,421

14,857(243,005)(8,516)30,00021,484

3,194,120

253

3,194,373---(127,421)-(14,857)

127,421
14,857

-

-

-

-

-

-

-

-

-

(127,421)(14,857)

142,278

-

-

-

-

-

-

Other changes in capital surplus
Capital surplus used to offset accumulated deficits
Cash dividends from capital surplus--(100,727)(93,776)--

100,727----(93,776)-(93,776)

Net loss in 2023
Other comprehensive loss in 2023, net of income tax--(194,503)---

100,727(179,764)-(12,362)(4,536)(16,898)(93,776)(179,764)(16,898)

(211)
(18)

(93,776)(179,975)(16,916)

-

-

-

-

-

(179,764)(12,362)(4,536)(16,898)(196,662)(229)(196,891)

33,355-(10,172)-

219,131---

12,102-

3,178(12,102)-(12,102)
3,178

242,314
3,178

(24)

242,3143,154571$ 2,672,817-$ (167,662)(4,338)$ 3,149,174-$ 3,149,174

Total comprehensive loss in 2023
Disposal of investments in equity instruments designated as at fair value
through other comprehensive income
Convertible bonds converted to ordinary shares (Note 19)
Disposal of subsidiaries (Note 13)
BALANCE AT DECEMBER 31, 2023$

647,786

$

$

-

$

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

-8-$(17,700)$

13,362$$

Brogent Technologies Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(In Thousands of New Taiwan Dollars)

2023
CASH FLOWS FROM OPERATING ACTIVITIESLoss before income tax
Adjustments for:
Income and expenses
Depreciation expense
Amortization expense
Expected credit loss
Net gain on fair value changes of financial assets and liabilities atfair value through profit or loss
Finance cost
Interest income
Dividend income
Share of profit or loss of associates accounted for using the equity
methodNet gain on disposal of property, plant and equipment
Net loss on disposal of intangible assets
Loss on disposal of subsidiaries
Gain on disposal of investments accounted for using equity
methodLoss on inventories
Net loss (gain) on foreign currency exchange
Income from the subleasing of right-of-use assets
Changes in operating assets and liabilities
Financial assets mandatorily classified as at fair value throughprofit or loss
Accounts receivable
Contract assets
Inventories
Prepayments
Other current assets
Notes payable
Accounts payable
Contract liabilities
Other payables
Provisions
Other current liabilities
Cash generated from operations
Income tax paid
Net cash generated from (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive
income

-9-

$

2022

(222,283)$(83,958)

146,70231,32478,352145,045
31,336
19,975

1,956
27,294(13,762)(4,000)(7,537)23,717(8,514)
-

2,708
3,178

468
(74,931)703-(2,276)
4,524
2,742(12,402)

1,642(5,941)-

124,420(428,258)
330,81155,208(14,130)
15,012(11,285)(55,377)
66,267
1,075(3,656)(745)
123,399(8,733)

170,415(55,195)(148,784)(98,949)
55,978(6,939)10,384
23,413
2,451
4,553
3,498
874
3,704
(11,683)

114,666(7,979)-(100,000)(Continued)

Brogent Technologies Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(In Thousands of New Taiwan Dollars)

2023
Proceeds from disposal of financial assets at fair value through othercomprehensive income
Purchase of financial assets at amortized cost
Proceeds from disposal of financial assets at amortized cost
Purchase of financial instruments at fair value through profit or loss
Acquisition of investments accounted for using equity method
Payments for property, plant and equipment
Proceeds from disposal of property, plant and equipment
Increase in refundable deposits
Acquisition of intangible assets
Decrease in long-term lease receivables
Increase in other non-current assets
Interest received
Dividends received$

Net cash used in investing activities

61,465(133,446)
130,073(43,258)(20,000)(68,856)(704)(37,762)917(48,756)
13,762
4,000

2022
$

(207,283)
169,233(61,288)(61,002)
263,402(4,393)(14,839)(37,921)8,514-(142,565)(45,577)

CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Repayment of the principal portion of lease liabilities
Increase in guarantee deposits received
Cash dividends from capital surplus
Interest paid
Change in non-controlling interests

173,160
300,000(149,002)(53,418)450(93,776)(23,196)(24)

166,755
224,867(240,014)(46,293)(15,237)-

Net cash generated from financing activities

154,194

90,078

EFFECT OF EXCHANGE RATE CHANGES ON THE BALANCE OF
CASH AND CASH EQUIVALENTS HELD IN FOREIGNCURRENCIES(8,301)

9,729

NET INCREASE IN CASH AND CASH EQUIVALENTS

117,994

46,251

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
YEAR

721,736

675,485

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR$

839,730

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

- 10 -$

721,736(Concluded)

Brogent Technologies Inc. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION
Brogent Technologies Inc. (the “Corporation”) was incorporated in October 2001. The Corporation ismainly engaged in the research, development, design, production and sales of simulator rides and its key
components and peripheral products, embedded media software, streaming media, 3D dynamic simulation
technology, internet interaction media and multiple-monitor setups.
The Corporation’s shares have been trading on the Taipei Exchange since December 2012.
The consolidated financial statements of the Corporation and its subsidiaries (collectively, the “Group”) arepresented in the Corporation’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS
The consolidated financial statements were approved by the Corporation’s board of directors on March 12,2024.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS
a. Initial application of the amendments to the International Financial Reporting Standards (IFRS),International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC)(collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the Financial
Supervisory Commission (FSC)
The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC
did not have any material impact on the Group’s accounting policies.
b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2024

New, Amended and Revised Standards and Interpretations
Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”
Amendments to IAS 1 “Classification of Liabilities as Current or
Non-current”
Amendments to IAS 1 “Non-current Liabilities with Covenants”
Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”

Effective Date
Announced by IASB (Note 1)
January 1, 2024 (Note 2)
January 1, 2024
January 1, 2024
January 1, 2024 (Note 3)

Note 1: Unless stated otherwise, the above IFRS Accounting Standards will be effective for annual
reporting periods beginning on or after their respective effective dates.
Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback
transactions entered into after the date of initial application of IFRS 16.
Note 3: The amendments provide some transition relief regarding disclosure requirements.

- 11 -

As of the date the consolidated financial statements were approved, the Group assessed that theapplication of the above standards and interpretations will not have a material impact on the Group’s
financial position and financial performance.
c. New IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture”
Amendments to IAS 21 “Lack of Exchangeability”

Effective Date
Announced by IASB (Note 1)
To be determined by IASB
January 1, 2025 (Note 2)

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual
reporting periods beginning on or after their respective effective dates.
Note 2: An entity shall apply those amendments for annual reporting periods beginning on or afterJanuary 1, 2025. Upon initial application of the amendments, the entity recognizes any effectas an adjustment to the opening balance of retained earnings.
As of the date the consolidated financial statements were approved, the Group is continuously assessing
the possible impact of the application of the above standards and interpretations on the Group’s
financial position and financial performance and will disclose the relevant impact when the assessment
is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION
a. Statement of compliance
The consolidated financial statements have been prepared in accordance with the Regulations
Governing the Preparation of Financial Reports by Securities Issuers, and IFRS Accounting Standards
as endorsed and issued into effect by the FSC.
b. Basis of preparation
The consolidated financial statements have been prepared on the historical cost basis except for
financial instruments that are measured at fair value.
The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which thefair value measurement inputs are observable and based on the significance of the inputs to the fairvalue measurement in its entirety, are described as follows:
1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an
asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and3) Level 3 inputs are unobservable inputs for an asset or liability.
c. Classification of current and non-current assets and liabilities
Current assets include:
1) Assets held primarily for the purpose of trading;- 12 -

2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the assets are restricted from being exchanged or used to settle aliability for at least 12 months after the reporting period.
Current liabilities include:1) Liabilities held primarily for the purpose of trading;2) Liabilities due to be settled within 12 months after the reporting period; and
3) Liabilities for which the Group does not have an unconditional right to defer settlement for at least
12 months after the reporting period.
Assets and liabilities that are not classified as current are classified as non-current.
The Group is engaged in the project contracts, which has an operating cycle of over 1 year. The normal
operating cycle applies when considering the classification of the Group’s project contracts-related
assets and liabilities.
d. Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Corporation and theentities controlled by the Corporation (i.e., its subsidiaries). When necessary, adjustments are made to
the financial statements of subsidiaries to bring their accounting policies into line with those used by theGroup. All intra-group transactions, balances, income and expenses are eliminated in full upon
consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the
Corporation and to the non-controlling interests even if this results in the non-controlling interests
having a deficit balance.
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control
over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of
the Group and the non-controlling interests are adjusted to reflect the changes in their relative interestsin the subsidiaries. Any difference between the amount by which the non-controlling interests areadjusted and the fair value of the consideration paid or received is recognized directly in equity andattributed to the owners of the Corporation.
When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is
calculated as the difference between (i) the aggregate of the fair value of the consideration received andany investment retained in the former subsidiary at its fair value at the date when control is lost and (ii)the assets and liabilities and any non-controlling interests of the former subsidiary at their carrying
amounts at the date when control is lost. The Group accounts for all amounts recognized in othercomprehensive income in relation to that subsidiary on the same basis as would be required had theGroup directly disposed of the related assets or liabilities.
For details of subsidiaries about ownership and operating items refer to Note 13, Table 5 and Table 6.
e. Foreign currencies
In preparing the financial statements of each individual entity in the Group, transactions in currencies
other than the entity’s functional currency (i.e., foreign currencies) are recognized at the rates of
exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated
at the rates prevailing at that date. Exchange differences on monetary items arising from settlement ortranslation are recognized in profit or loss in the period in which they arise.
- 13 -

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated
at the rates prevailing at the date when the fair value was determined. Exchange differences arisingfrom the retranslation of non-monetary items are included in profit or loss for the period.
Non-monetary items that are measured at historical cost in a foreign currency are translated using theexchange rate at the date of the transaction.
For the purpose of presenting the consolidated financial statements, the functional currencies of theentities in the Group (including subsidiaries and associates operating in other countries that use
currencies different from the currency of the Corporation) are translated into the presentation currency,
the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailingat the end of the reporting period; and income and expense items are translated at the average exchange
rates for the period. The resulting currency translation differences are recognized in othercomprehensive income (attributed to the owners of the Corporation and non-controlling interests asappropriate).
On the disposal of the Group’s entire interest in a foreign operation, all of the exchange differences
accumulated in equity in respect of that operation attributable to the owners of the Group arereclassified to profit or loss.
f. Inventories
Inventories are stated at the lower of cost or net realizable value. Inventory write-downs are made byitem, except where it may be appropriate to group similar or related items. Net realizable value is theestimated selling price of inventories less all estimated costs of completion and costs necessary to makethe sale. Inventories are recorded at weighted-average cost.
g. Investments in associates
An associate is an entity over which the Group has significant influence and which is neither asubsidiary nor an interest in a joint venture.
The Group uses the equity method to account for its investments in associates.
Under the equity method, an investment in an associate is initially recognized at cost and adjusted
thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of theassociate. The Group also recognizes the changes in the Group’s share of the equity of associates.
When the Group subscribes for additional new shares of an associate at a percentage different from its
existing ownership percentage, the resulting carrying amount of the investment differs from the amountof the Group’s proportionate interest in the associate. The Group records such a difference as an
adjustment to investments with the corresponding amount charged or credited to capital surplus andinvestments accounted for using the equity method. If the Group’s ownership interest is reduced due toits additional subscription of the new shares of the associate, the proportionate amount of the gains orlosses previously recognized in other comprehensive income in relation to that associate is reclassified
to profit or loss on the same basis as would be required had the investee directly disposed of the related
assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus
recognized from investments accounted for using the equity method is insufficient, the shortage isdebited to retained earnings.
When the Group’s share of losses of an associate equals or exceeds its interest in that associate (which
includes any carrying amount of the investment accounted for using the equity method and long-term
interests that, in substance, form part of the Group’s net investment in the associate), the Groupdiscontinues recognizing its share of further loss. Additional losses and liabilities are recognized only tothe extent that the Group has incurred legal obligations, or constructive obligations, or made payments- 14 -

on behalf of that associate.
The entire carrying amount of an investment (including goodwill) is tested for impairment as a single
asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is
not allocated to any asset, including goodwill, which forms part of the carrying amount of theinvestment. Any reversal of that impairment loss is recognized to the extent that the recoverable amountof the investment subsequently increases.
The Group discontinues the use of the equity method from the date on which its investment ceases to be
an associate. Any retained investment is measured at fair value at that date, and the fair value isregarded as the investment’s fair value on initial recognition as a financial asset. The difference
between the previous carrying amount of the associate attributable to the retained interest and its fairvalue is included in the determination of the gain or loss on disposal of the associate.
When an entity in the Group transacts with its associate, profits and losses resulting from thetransactions with the associate are recognized in the Group’s consolidated financial statements only tothe extent that interests in the associate are not related to the Group.
h. Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation.
Property, plant and equipment in the course of construction are measured at cost less any recognizedimpairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Suchassets are depreciated and classified to the appropriate categories of property, plant and equipment
when completed and ready for their intended use.
Land is not depreciated.
Depreciation of property, plant and equipment is recognized using the straight-line method. Eachsignificant component is depreciated separately. The estimated useful lives, residual values anddepreciation method are reviewed at the end of each reporting period, with the effect of any changes in
estimate accounted for on a prospective basis.
On derecognition of an item of property, plant and equipment, the difference between the sales proceeds
and the carrying amount of the asset is recognized in profit or loss.
i. Intangible assets
Intangible assets with finite useful lives that are acquired separately are initially measured at cost andsubsequently measured at cost less accumulated amortization and accumulated impairment loss.
Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, andamortization methods are reviewed at the end of each reporting period, with the effect of any changes inthe estimates accounted for on a prospective basis.
On derecognition of an intangible asset, the difference between the net disposal proceeds and thecarrying amount of the asset is recognized in profit or loss.
j. Impairment of property, plant and equipment, right-of-use assets and intangible assets
At the end of each reporting period, the Group reviews the carrying amounts of its property, plant andequipment, right-of-use assets and intangible assets, to determine whether there is any indication thatthose assets have suffered an impairment loss. If any such indication exists, the recoverable amount of
the asset is estimated in order to determine the extent of the impairment loss. When it is not possible toestimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of
the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual- 15 -

cash-generating units or the smallest group of cash-generating units on a reasonable and consistent basisof allocation.
The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable
amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying
amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting
impairment loss recognized in profit or loss.
When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset,
cash-generating unit or assets related to contract costs is increased to the revised estimate of its
recoverable amount, but only to the extent of the carrying amount that would have been determined had
no impairment loss been recognized for the asset, cash-generating unit or assets related to contract costs
in prior years. A reversal of an impairment loss is recognized in profit or loss.
k. Financial instruments
Financial assets and financial liabilities are recognized when the Group becomes a party to thecontractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issuance of financial assets and financial liabilities (other thanfinancial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of thefinancial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized
immediately in profit or loss.
1) Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a tradedate basis.
a) Measurement categories
Financial assets are classified into the following categories: financial assets at FVTPL, financial
assets at amortized cost and investments in equity instruments at FVTOCI.
i

Financial assets at FVTPL
Financial assets are classified as at FVTPL when such financial assets are mandatorilyclassified or designated as at FVTPL, including investments in equity instruments that are
not designated as at FVTOCI and mutual funds and derivative instruments that do not meet
the amortized cost criteria or the FVTOCI criteria.
Financial assets at FVTPL are subsequently measured at fair value and any remeasurement
gains or losses on such financial assets are recognized in other gains or losses. Fair value isdetermined in the manner described in Note 31.

ii Financial assets at amortized cost
Financial assets that meet the following conditions are subsequently measured at amortized
cost:i) The financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows; and- 16 -

ii) The contractual terms of the financial asset give rise on specified dates to cash flowsthat are solely payments of principal and interest on the principal amount outstanding.
Subsequent to initial recognition, financial assets at amortized cost are measured atamortized cost, which equals the gross carrying amount determined by the effective interest
method less any impairment loss. Exchange differences are recognized in profit or loss.
Interest income is calculated by applying the effective interest rate to the gross carrying
amount of a financial asset.
Cash equivalents include time deposits and repurchase agreement collateralized by bonds
within 3 months from the date of acquisition, which are highly liquid, readily convertible toa known amount of cash and are subject to an insignificant risk of changes in value. These
cash equivalents are held for the purpose of meeting short-term cash commitments.
iii Investments in equity instruments at FVTOCI
On initial recognition, the Group may make an irrevocable election to designate investmentsin equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if theequity investment is held for trading or if it is contingent consideration recognized by an
acquirer in a business combination.
Investments in equity instruments at FVTOCI are subsequently measured at fair value withgains and losses arising from changes in fair value recognized in other comprehensive
income and accumulated in other equity. The cumulative gain or loss will not be reclassified
to profit or loss on disposal of the equity investments; instead, it will be transferred toretained earnings.
Dividends on these investments in equity instruments are recognized in profit or loss when
the Group’s right to receive the dividends is established, unless the dividends clearly
represent a recovery of part of the cost of the investment.
b) Impairment of financial assets and contract assets
The Group recognizes a loss allowance for expected credit losses on financial assets at
amortized cost, finance lease receivables and contract assets.
The Group always recognizes lifetime expected credit losses (ECLs) for accounts receivable,finance lease receivables and contract assets. For all other financial instruments, the Group
recognizes lifetime ECLs when there has been a significant increase in credit risk since initialrecognition. If, on the other hand, the credit risk on a financial instrument has not increased
significantly since initial recognition, the Group measures the loss allowance for that financial
instrument at an amount equal to 12-month ECLs.
Expected credit losses reflect the weighted average of credit losses with the respective risks ofdefault occurring as the weights. Lifetime ECLs represent the expected credit losses that will
result from all possible default events over the expected life of a financial instrument. In
contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result fromdefault events on a financial instrument that are possible within 12 months after the reportingdate.
For internal credit risk management purposes, the Group considers that a debtor would default if
internal or external information show that the debtor is unlikely to pay its creditors (without
taking into account any collateral held by the Group).
The Group recognizes an impairment gain or loss in profit or loss for all financial instrumentswith a corresponding adjustment to their carrying amount through a loss allowance account.
- 17 -

c) Derecognition of financial assets
The Group derecognizes a financial asset only when the contractual rights to the cash flows
from the asset expire, or when it transfers the financial asset and substantially all the risks andrewards of ownership of the asset to another party.
On derecognition of a financial asset at amortized cost in its entirety, the difference between theasset’s carrying amount and the sum of the consideration received and receivable is recognizedin profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, thedifference between the asset’s carrying amount and the sum of the consideration received andreceivable is recognized in profit or loss, and the cumulative gain or loss which had beenrecognized in other comprehensive income is transferred directly to retained earnings, without
recycling through profit or loss.
2) Equity instruments
Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue
costs.
3) Financial liabilitiesa) Subsequent measurement
Financial liabilities held by the Group are measured at amortized cost using the effective interest
method.
b) Derecognition of financial liabilities
The difference between the carrying amount of the financial liability derecognized and theconsideration paid, including any non-cash assets transferred or liabilities assumed, isrecognized in profit or loss.
4) Convertible bonds
The component parts of compound instruments (i.e., convertible bonds) issued by the Group areclassified separately as financial liabilities and equity in accordance with the substance of thecontractual arrangements and the definitions of a financial liability and an equity instrument.
On initial recognition, the fair value of the liability component is estimated using the prevailingmarket interest rate for similar non-convertible instruments. This amount is recorded as a liability
on an amortized cost basis using the effective interest method until extinguished upon conversion or
upon the instrument’s maturity date. Any embedded derivative liability is measured at fair value.
The conversion option classified as equity is determined by deducting the amount of the liability
component from the fair value of the compound instrument as a whole. This is recognized andincluded in equity, net of income tax effects, and is not subsequently remeasured. In addition, theconversion option classified as equity will remain in equity until the conversion option is exercised;
in which case, the balance recognized in equity will be transferred to capital surplus. When theconversion option remains unexercised at maturity, the balance recognized in equity will betransferred to capital surplus.
Transaction costs that relate to the issuance of the convertible notes are allocated to the liability andequity components in proportion to the allocation of the gross proceeds. Transaction costs relating
to the equity component are recognized directly in equity. Transaction costs relating to the liability
component are included in the carrying amount of the liability component.
- 18 -

l. Provisions
Provisions, including warranty obligations and restoration obligations, are measured at the best estimateof the discounted cash flows of the consideration required to settle the present obligation at the end of
the reporting period, taking into account the risks and uncertainties surrounding the obligation.
m. Revenue recognition
The Group identifies contracts with customers, allocates the transaction price to the performanceobligations and recognizes revenue when performance obligations are satisfied.
1) Project contract revenue
Revenue comes from the development, construction and sale of simulator rides and related films.
The Group recognizes revenue upon the completion percentage of each performance obligation. The
output and degree of completion of performance obligation is measured based on working days ofeach performance item. Contract assets recognized during the performance obligations are satisfied
and reclassified to accounts receivable at the point the customer is invoiced. If the milestone
payments exceed the revenue recognized to date, then the Group recognizes contract liabilities forthe difference. Certain payments, which are retained by the customer as specified in the contract,are intended to ensure that the Group adequately completes all of its contractual obligations. Suchretention receivables are recognized as contract assets until the Group satisfies its performanceobligation.
2) Licensing revenue
Revenue comes from authorizing the use of intellectual property rights of the films. The license
granted provides the customer with the right to use the intellectual property that exists at the pointof grant, and the revenue is recognized when the license is transferred. Advance receipts of royalty
are recognized as contract liabilities. In addition, licensing revenue based on the actual sales of thecustomer is recognized when the sales occur.
3) Sale of tickets and merchandise
Revenue comes from sales of tickets for simulator rides and peripheral products at operated outlets.
Sales of tickets are recognized at the point when services are performed; and sales of merchandiseand peripheral products are recognized when merchandise and peripheral products are transferred tothe customer at which point the customer takes the right of use and bears the risk of obsolescence.
Advance receipts from the sale of the goods are recognized as contract liabilities.
4) Service revenue
Service revenue comes from maintenance service to simulator rides and is recognized when theservice is rendered.
5) Rental revenue
Rental revenue comes from rendering simulator rides, of which accounting policy is described in
Note 4 (n).
n. Leases
At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

- 19 -

1) The Group as lessor
Leases are classified as finance leases whenever the terms of a lease transfer substantially all therisks and rewards of ownership to the lessee. All other leases are classified as operating leases.
When the Group subleases a right-of-use asset, the sublease is classified by reference to theright-of-use asset arising from the head lease, not with reference to the underlying asset. However,if the head lease is a short-term lease that the Group, as a lessee, has accounted for applying
recognition exemption, the sublease is classified as an operating lease.
Under finance leases, the lease payments comprise fixed payments and in-substance fixed
payments. The net investment in a lease is measured at (a) the present value of the sum of the lease
payments receivable by a lessor and any unguaranteed residual value accrued to the lessor plus (b)initial direct costs and is presented as a finance lease receivable. Finance lease income is allocatedto the relevant accounting periods so as to reflect a constant, periodic rate of return on the Group’s
net investment outstanding in respect of leases.
Variable lease payments that do not depend on an index or a rate are recognized as income in the
periods in which they are incurred.
Lease payments from operating leases are recognized as income on a straight-line basis over theterms of the relevant leases.
2) The Group as lessee
The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement
date of a lease, except for short-term leases and low-value asset leases accounted for applying arecognition exemption where lease payments are recognized as expenses on a straight-line basis
over the lease terms.
Right-of-use assets are initially measured at cost and are subsequently measured at cost lessaccumulated depreciation and impairment losses and adjusted for any remeasurement of the leaseliabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.
Right-of-use assets are depreciated using the straight-line method from the commencement dates tothe end of the lease terms.
Lease liabilities are initially measured at the present value of the lease payments. The lease
payments are discounted using the interest rate implicit in a lease, if that rate can be readily
determined. If that rate cannot be readily determined, the Group uses the lessee’s incremental
borrowing rate.
Subsequently, lease liabilities are measured at amortized cost using the effective interest method,with interest expense recognized over the lease terms. If the future lease payments change due to theperiod changes, the Group remeasures the lease liabilities with a corresponding adjustment to theright-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero,
any remaining amount of the remeasurement is recognized in profit or loss. For a lease modificationthat is not accounted for as a separate lease, the Group accounts for the remeasurement of the leaseliability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that
decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or
full termination of the lease; (b) making a corresponding adjustment to the right-of-use asset of allother lease modifications. Lease liabilities are presented on a separate line in the consolidatedbalance sheets.
Variable lease payments that do not depend on an index or a rate are recognized as expenses in the
periods in which they are incurred.
- 20 -

o. Government grants
Government grants are not recognized until there is reasonable assurance that the Group will comply
with the conditions attached to them and that the grants will be received.
Government grants that are receivable as compensation for expenses or losses already incurred or forthe purpose of giving immediate financial support to the Group with no future related costs arerecognized in profit or loss in the period in which they are received.
p. Employee benefits
1) Short-term employee benefits
Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted
amount of the benefits expected to be paid in exchange for the related service.
2) Retirement benefits
Payments to defined contribution retirement benefit plans are recognized as expense whenemployees have rendered services entitling them to the contributions.
q. Share-based payment arrangements
The fair value at the grant date of the employee share options is expensed on a straight-line basis overthe vesting period, based on the Group’s best estimates of the number of shares or options that are
expected to ultimately vest, with a corresponding increase in capital surplus.
r. Taxation
Income tax expense (income) represents the sum of the tax currently payable and deferred tax.
1) Current tax
Income tax payable (refundable) is based on taxable profit (loss) for the year determined according
to the applicable tax laws of each tax jurisdiction.
According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings isprovided for in the year the shareholders approve to retain earnings.
Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax
provision.
2) Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets andliabilities and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax
assets are generally recognized for all deductible temporary differences and loss carryforwards tothe extent that it is probable that taxable profits will be available against which those deductible
temporary differences and loss carryforwards can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments
in subsidiaries and associates, except where the Group is able to control the reversal of thetemporary difference and it is probable that the temporary difference will not reverse in the- 21 -

foreseeable future. Deferred tax assets arising from deductible temporary differences associatedwith such investments and interests are only recognized to the extent that it is probable that there
will be sufficient taxable profits against which to utilize the benefits of the temporary differences
and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period andreduced to the extent that it is no longer probable that sufficient taxable profits will be available toallow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also
reviewed at the end of each reporting period and recognized to the extent that it has become
probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws)that have been enacted or substantively enacted by the end of the reporting period. The
measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Group expects, at the end of the reporting period, to recover or settle
the carrying amount of its assets and liabilities.
3) Current and deferred tax
Current and deferred tax are recognized in profit or loss, except when they relate to items that arerecognized in other comprehensive income or directly in equity, in which case, the current anddeferred tax are also recognized in other comprehensive income or directly in equity, respectively.
5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATIONUNCERTAINTY
In the application of the Group’s accounting policies, management is required to make judgments, estimatesand assumptions on the carrying amounts of assets and liabilities that are not readily apparent from othersources. The estimates and associated assumptions are based on historical experience and other factors thatare considered relevant. Actual results may differ from these estimates.
When developing material accounting estimates, the Group considers the possible impact of the inflationand interest rate fluctuations and other relevant material estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis.
Key Sources of Estimation Uncertainty
a. Estimated impairment of accounts receivable and contract assets
The provision for impairment of accounts receivable and contract assets is based on assumptions on
probability of default and loss given default. The Group uses judgment in making these assumptions
and in selecting the inputs to the impairment calculation, based on the Group’s historical experience,existing market conditions as well as forward looking estimates as of the end of each reporting period.
Where the actual future cash inflows are less than expected, a material impairment loss may arise.
b. Measurement of the percentage of completion of project contract
Project contract revenue is recognized by the percentage of completion method. The progress ofcompletion is measured based on the working days of completed performance items. Since theestimated working days may be modified as assessed and determined by the management based on thenature and content of work, etc. for each project contract, the measurement of the percentage ofcompletion and revenue may be affected.

- 22 -

6. CASH AND CASH EQUIVALENTS
December 31
2023
Cash on hand
Checking accounts and demand deposits
Cash equivalents (investments with original maturities of 3 months
or less)
Time deposits

$

2022

1,461
563,391$

1,291
398,447

274,878

321,998$ 839,730$ 721,736

7. FINANCIAL INSTRUMENTS AT FVTPL
December 31
2023

2022

Financial assets
Financial assets mandatorily classified as at FVTPL
Derivative financial assets (not under hedge accounting)Redemption options and put options of convertible bonds$

Non-derivative financial assets
Mutual funds
Unquoted shares

Current
Non-current

32

$

429

409,515
409,515

118,390378,155
496,545$ 409,547$ 496,974$

32
409,515$ 118,819
378,155$ 409,547$ 496,974

The Group acquired the ordinary shares of Discover NY Project Company, LLC (DNY) for $31,437
thousand (US$1,050 thousand) in August 2022, increasing its shareholding to 23.22%. In addition, theGroup acquired the preferred shares of DNY for $29,851 thousand (US$972 thousand) in December 2022.
The dividends of the preferred shares are cumulative at the rate of 12%. Furthermore, the remaining
earnings are distributed to preferred shareholders in proportion to their capital contribution and are
distributed to all shareholders in proportion to their shareholdings only after the preferred shareholders
recover 2.5 times their original capital contribution. The investment of DNY was classified as a financial
asset at FVTPL since the Group did not participate in the financial and operating policy decisions of DNY
and did not have significant influence.

- 23 -

8. FINANCIAL ASSETS AT FVTOCI
December 31
2023

2022

Current
Domestic investments in equity instruments
Listed shares$

64,300$ 130,000

$

1,379

$

Non-current
Foreign investments in equity instruments
Unlisted equity investments-

The Group acquired the ordinary shares of Ruentex Industries Limited for $100,000 thousand in September
2022. Accordingly, the Group elected to designate the investments in equity instruments as financial assets
at FVTOCI as it was not held for trading or short-term profit.

9. FINANCIAL ASSETS AT AMORTIZED COST
December 31
2023
Time deposits with original maturities of more than 3 months
Pledged time deposits
Pledged demand deposits
Unquoted preferred shares

Current
Non-current$

48,941
105,338
14,13434,0102022$

15,912
151,082
2,004
32,740$ 202,423$ 201,738$ 148,010
54,413$ 144,788
56,950$ 202,423$ 201,738

a. The counterparties of the time deposit of the Group were banks with sound credit ratings and no
significant default concerns, and therefore, there was no expected credit losses.
b. The investment in preferred shares will expire in February 2025, and cannot be converted into ordinary
shares. The issuer company will redeem the shares at the actual issue price at the maturity, and theinvestor has no right to request early redemption of preferred shares. The dividends are cumulative at
the rate of 5%. If the dividends are undistributed or are not distributed in full, it should be accumulated
for deferred payment in the subsequent years where there are earnings.
c. Refer to Note 33 for the information on financial assets at amortized cost pledged as collateral.

- 24 -

10. ACCOUNTS RECEIVABLE
December 31
Accounts receivable
At amortized cost
Gross carrying amountLess: Allowance for impairment loss

2023

2022

$ 747,098(108,392)$ 318,840(48,508)$ 638,706$ 270,332

The main credit period is 90 days, unless agreed upon in a specific contract. In order to minimize credit
risk, the management of the Group has delegated a team responsible for determining credit limits, credit
approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue
debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of thereporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In thisregard, the management believes the Group’s credit risk was significantly reduced.
The Group measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The
expected credit losses on accounts receivable are estimated by reference to the past default experience ofthe customer and the customer’s current financial position, as well as the industry outlook. The Group
determined the provision for loss allowance based on the past due days from the invoice date or from theend of the credit term for different segments distinguished according to the type of accounts receivable.
The Group writes off accounts receivable when there is information indicating that the debtor is in severe
financial difficulty and there is no realistic prospect of recovery. For accounts receivable that have been
written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due.
Where recoveries are made, these are recognized in profit or loss.
The following table details the aging analysis and loss allowance of accounts receivable:
December 31, 2023
Segment A

Expected credit loss rate (%)

Up to 3Months

4-6 Months

0.3

17-12 Months Over 1 Year
2-3

With Signs
of Default

10-40

Total

100

Gross carrying amount
Loss allowance (lifetime ECLs)$

131,427
(396)

$

2,299
(24)

$

4,345
(95)

$

46,477(11,771)$

96,106(96,106)$

280,654(108,392)

Amortized cost$

131,031

$

2,275

$

4,250

$

34,706$-$172,262

Segment B
Not Past Due

1 Months
Past Due

Gross carrying amount
Loss allowance (lifetime ECLs)$

466,444-$

Amortized cost$

466,444$- 25 -

2-3 Months
Past Due

4-6 Months
Past DueOver 7Months

-

$

-

$

-

$

-

$

466,444
-

-

$

-

$

-

$

-

$

466,444

Total

December 31, 2022
Segment A

Expected credit loss rate(%)

Up to 3Months

4-6 Months--

7-12 Months Over 1 Year
0.1-5

With Signs
of Default

10

Total

10-100Gross carrying amount
Loss allowance (lifetime ECLs)$

107,655-$

17,739-$39,378(30)$

40,496(3,945)$

95,222(44,533)$

300,490(48,508)

Amortized cost$

107,655$

17,739$39,348$36,551$

50,689$251,982

Segment B
Not Past Due

1 Months
Past Due

Gross carrying amount
Loss allowance (lifetime ECLs)$

18,350-$

Amortized cost$

18,350$2-3 Months
Past Due

4-6 Months
Past DueOver 7Months

-

$

-

$

-

$

-

$

18,350
-

-

$

-

$

-

$

-

$

18,350Total

The movements of the loss allowance of accounts receivable were as follows:
For the Year Ended December 31
2023
2022
Balance at January 1
Impairment loss recognized
Effect of foreign currency exchange differences$

48,50859,882
2$

47,592
916-

Balance at December 31$ 108,392$

48,508

11. FINANCE LEASE RECEIVABLES
December 31,
2023
Undiscounted lease payments
Year 1
Year 2
Year 3
Year 4
Year 5
Year 5 onwards$

Less: Unearned finance income

2,170
2,170
2,170
2,170
2,170
7,600
18,450(1,482)

Net investment in leases presented as finance lease receivables$ 16,968

Current
Non-current

$

1,851
15,117$ 16,968- 26 -

The Group will sublease part of the leased business premises in Keelung City, Taiwan, in 2023, with theleasing term ending in June 2032 and annual fixed lease payments of $2,170 thousand. As the Group
subleases the retail stores for all the remaining leasing terms of the main lease to the sublessee, thesubleasing contract is classified as a finance lease, wherein the right-of-use asset sublease gain of $12,402
thousand was recognized.
The interest rates inherent in leases are fixed at the contract dates for the entire term of the lease; the range
of interest rates inherent in finance leases was approximately 1.98% per year.
In addition to fixed lease payments, finance lease contracts also indicate that the Group may receive
variable lease payments based on a specific percentage of the lessee’s revenue. The amount of variable
lease revenue received in 2023 is $1,135 thousand.
The Group measures the loss allowance for finance lease receivables at an amount equal to lifetime ECLs.
As of December 31, 2023, no finance lease receivable was past due. The Group has not recognized a loss
allowance for finance lease receivables after taking into consideration the historical default experience andthe future prospects of the industries in which the lessees operate, together with the value of collateral held
over these finance lease receivables.

12. INVENTORIES
December 31
Project materials
Merchandise

2023

2022

$ 246,598
5,020$ 307,592
3,758$ 251,618$ 311,350

The operating costs recognized as losses on inventories for the years ended December 31, 2023 and 2022
were $4,524 thousand and $1,642 thousand, respectively.

13. SUBSIDIARIES
Subsidiaries included in the consolidated financial statements
The subsidiaries included in the consolidated financial statements are as follows:

Investor
The Corporation

Dili Jie
JetwayGarleyBrogent HK

Proportion of Ownership (%)
December 31
2023
2022

InvesteeNature of Activities

Brogent Hong Kong Limited(Brogent HK)
Brogent Global Inc. (Brogent
Global)Reinvestment and tradingbusiness
Development and managementbusiness of self-operated
outlets, site planning andfilm production
Reinvestment and tradingbusiness
Reinvestment and tradingbusiness
Reinvestment and tradingbusiness
Reinvestment and tradingbusiness
Import and export business

100

100

-

100

100

-

100

100

-

100

100

-

100

100

-

100

100

-

58

58

-

Import and export business
Development and managementbusiness of self-operated
outlets

42
-

42
94

Note

Dili Jie Holdings Limited (DiliJie)
Jetway Holdings Limited(Jetway)
Garley Holdings Limited(Garley)
Holey Holdings Limited
Brogent Rides (Shanghai)
Limited (Brogent Rides)
Brogent Rides
hexaRide the first LLP

Remark(Continued)- 27 -

Investor

Brogent Rides
Brogent Global
JetmayInvesteeNature of Activities

StarLite Design & Planning
Limited (StarLite)
Brogent Creative (Shanghai)
Limited (Brogent Creative)

Design and managementbusiness
Development and managementbusiness of self-operated
outlets
Reinvestment and tradingbusiness
Whole planning business

Jetmay Holdings Limited(Jetmay)
HaiWei Culture Creative andDevelopment (Shanghai)
Limited (HaiWei Creative)

Proportion of Ownership (%)
December 31
2023
2022

Remark

100

100

-

100

100

-

100

100

-

100

100

-

(Concluded)
Note:

Brogent HK subscribed for additional new shares of hexaRide at a percentage different from its
existing ownership percentage in 2022, increasing its continuing interest from 93% to 94%. The
above transaction was accounted for as an equity transaction since the Group did not cease to havecontrol over the subsidiary. The difference between the investment cost and the net assets acquired
was recognized as a deduction of retained earnings of $554 thousand.
hexaRide was liquidated in December 2023, and the disposal loss of $3,178 thousand wasrecognized.

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
December 31
2023
Investments in associates - not individually material$ 18,824

2022
$

1,755

Aggregate information of associates that are not individually material:
For the Year Ended December 31
2023
2022
The Group’s share of:
Net loss
Other comprehensive loss
Total comprehensive loss for the year

$ (2,708)
(163)

$

(468)
(33)

$ (2,871)

$

(501)

In May 2023, the Group invested $20,000 thousand in cash to establish Scroll Application Technology Co.,
Ltd. and acquired 48.78% equity interest.
The Group originally held a 35% equity interest in Beijing Huawei Global Cultural Development Co., Ltd.
In July 2023, the Group subscribed for additional new shares of Beijing Huawei Global Cultural
Development Co., Ltd. at a percentage different from its existing ownership percentage, reducing its
continuing interest from 35% to 17.5%, and thus losing significant influence and discontinuing the use of
the equity method. Therefore, the investment was reclassified to financial assets at FVTOCI - non-current,
and a disposal gain of $2,276 thousand was recognized.

- 28 -

15. PROPERTY, PLANT AND EQUIPMENT
December 31
Assets used by the Group
Assets leased under operation

2023

2022

$ 727,141
9,038$ 751,320
7,038$ 736,179$ 758,358

For the year ended December 31, 2023
Assets Used by the Group
Equipme nt tobe Inspected
and Property
Other
under
Buildings
Equipme nt
Construction

Land

Assets Leased
underOperation
Other
Equipme nt

Total

Cost
Balance at January 1
Additions
Disposals
Effect of foreign currency exchange
differences

$

-

$

642,629-

Balance at December 31

$

-

$

642,629$522,213

Balance at January 1
Depreciation expense
Disposals
Effect of foreign currency exchange
differences

$

-

$

195,839
26,283-$

199,760
68,425(35,144)

Balance at December 31

$

-

$

222,122$233,069$-$

455,191$

6,007

Carrying amount at December 31

$

-

$

420,507$289,144$

17,490$727,141

$

9,038

Total

Assets Leased
underOperation
Other
Equipme nt

-

$

-

455,777
101,530(35,144)$

48,513(31,023)-$ 1,146,919
70,507(35,144)-50$

17,490$ 1,182,332$

15,045

$

-

$

$

4,263
1,744

50

$

11,301
3,744-

Accumulated depreciation

-

-

28

395,599
94,708(35,144)-

28-

For the year ended December 31, 2022
Assets Used by the Group
Equipme nt tobe Inspected
and Property
Other
under
Buildings
Equipme nt
Construction

Land
Cost
Balance at January 1
Additions
Disposals
Reclassification
Effect of foreign currency exchange
differences$

139,868(139,868)-$

Balance at December 31

$

-

$

642,629$455,777$-$

183,433
29,826(16,930)$

141,291
68,510(6,387)-

691,5138,264(55,883)-$(1,265)

327,856
144,309(6,688)(9,839)$140,644(92,131)-$ 1,299,881
60,442(202,439)(9,839)-(1,126)$

48,513$ 1,146,919$

11,301

$

-

$

$

43
448
-

139

$

1,302
160
9,839
-

Accumulated depreciation
Balance at January 1
Depreciation expense
Disposals

324,724
98,336(23,317)(Continued)- 29 -

Assets Used by the Group
Equipme nt tobe Inspected
and Property
Other
under
Buildings
Equipme nt
Construction

Land
-

$

-

$

Balance at December 31

$

-

$

195,839$

199,760$-$

395,599

Carrying amount at December 31

$

-

$

446,790$

256,017$

48,513$751,320(490)(3,772)

$

118

-

Total

Reclassification
Effect of foreign currency exchange
differences-$

Assets Leased
underOperation
Other
Equipme nt$(3,772)

-

$

(372)

3,772
(849) -

$

4,263

$

7,038

(Concluded)a. Depreciation expenses were recognized on a straight-line basis over the following useful lives:

Buildings
Main buildings
OthersOther equipment

Assets Used by
the Group

Assets Leased
underOperation

50 years
2-20 years
2-15 years

5-10 years

b. To revitalize assets and effectively utilize capital, the Group sold the land and buildings located in
JhongShan, Sinwu District, Taoyuan City, to a non-related party for $268,000 thousand (tax included)in August 2022 and immediately leased them back for short-term operation. The lease terms are 3 years
and 6 months and expire in February 2026 with no renewal or bargain purchase options. As a result of
the above transaction, the Group recognized gains on disposal of property of $83,606 thousand andrecognized right-of-use assets of $16,647 thousand and lease liabilities of $25,996 thousand.
c. The Group rents the simulator rides under operating lease. All operating leases include the rights toadjust the rental according to the market rate when the lessee extends the lease terms, and the lessee
does not have bargain purchase options to acquire the asset at the end of the lease terms.
d. Refer to Note 33 for the carrying amount of property, plant and equipment pledged as collateral forborrowings.
e. The reconciliation of the additions and the payments stated in the statements of cash flows was asfollows:
For the Year Ended December 31
2023
2022
Additions to property, plant and equipment
Decrease in payables for equipment (increase)
Increase in provisions$ 74,251(4,395)(1,000)$ 60,602
400-

Cash paid$ 68,856$ 61,002- 30 -

16. LEASE ARRANGEMENTS
a. Right-of-use assets
December 31
2023
Carrying amountLand
Buildings
Transportation equipment2022$ 199,362
147,741
9,624$

98,122
172,702
16,189$ 356,727$ 287,013

For the Year Ended December 31
2023
2022
Additions to right-of-use assets
Depreciation of right-of-use assets
Land
Buildings
Transportation equipment$ 125,447$

24,940$12,183
31,257
6,810$

10,60728,478
7,176$

50,250$46,261b. Lease liabilities
December 31
2023

2022

Carrying amountCurrent
Non-current$ 64,323$ 329,287$ 64,414$ 257,167

Range of discount rates (%) for lease liabilities
Land
Buildings
Transportation equipment

1.71-2.17
1.71-1.98
1.71-2.17

1.71
1.71-1.85
1.71-1.80

c. Material lease activities and terms
The Group leases land and buildings for the use as business spaces and for self-operated outlets withlease terms that will expire between March 2032 and July 2053 at the latest. The lease contract for land
specifies that lease payments will be adjusted on the basis of changes in the announced land value andprice. Lease contracts for self-operating outlets contain variable payments which are determined at a
specific percentage of sales generated from the self-operating outlets. The Group does not have bargain
purchase options to acquire the leasehold land and buildings at the end of the lease terms.

- 31 -

d. Other lease information
For the Year Ended December 31
2023
2022
Expenses relating to short-term leases
Expenses relating to low-value asset leases
Expenses relating to variable leases payments not included in themeasurement of lease liabilities
Total cash outflow for leases

$
$

5,397
369

$
195
$ 65,588

$
$

2,404
367

$
$ 54,001

The Group has elected to apply the recognition exemption for leases of certain subject qualifying as
short-term leases and low-value asset leases, and thus, did not recognize right-of-use assets and leaseliabilities for these leases.

17. INTANGIBLE ASSETSFor the year ended December 31, 2023
Film

Other

Total

Cost
Balance at January 1
AdditionsWrite-off and disposals
Effect of foreign currency exchange differences$ 238,187
26,396(275)$

52,575
11,366(6,206)-$ 290,762
37,762(6,206)(275)

Balance at December 31$ 264,308$

57,735$ 322,043

Balance at January 1
Amortization expense
Write-off and disposals
Effect of foreign currency exchange differences$

67,22922,807(127)$

26,793
8,517(6,206)-$

Balance at December 31$

89,909$29,104$ 119,013

Carrying amount at December 31$ 174,399$

28,631$ 203,030

Accumulated amortization
94,022
31,324(6,206)(127)

For the year ended December 31, 2022
Film

Other

Total

Cost
Balance at January 1
Additions
Transferred from other non-current assets
Write-off and disposals
Effect of foreign currency exchange differences$ 201,548
7,844
40,945(16,189)
4,039$

49,449
9,935(6,767)(42)$ 250,997
17,77940,945(22,956)
3,997

Balance at December 31$ 238,187$

52,575$ 290,762(Continued)- 32 -

Film

Other

Total

Accumulated amortization
Balance at January 1
Amortization expense
Write-off and disposals
Effect of foreign currency exchange differences$

59,39924,079(16,169)(80)$

25,598
7,257(6,084)22$

84,99731,336(22,253)(58)

Balance at December 31$

67,229$26,793$94,022Carrying amount at December 31$ 170,958$

25,782$ 196,740(Concluded)

The above intangible assets are amortized on a straight-line basis over the following useful lives:
Film
Others3-10 years
1-25 years

18. BORROWINGSa. Short-term borrowings
December 31
2023
Secured bank loans (Note 33)
Unsecured bank loans$

Interest rate (%)

2022

495,000$

21,840300,000$ 495,000$ 321,840

1.90-2.59

1.50-2.33

b. Long-term borrowings
December 31
2023

2022

$ 464,842$ 296,187

3,749
468,591(30,502)

20,460907
317,554(49,334)

Long-term borrowings$ 438,089$ 268,220

Interest rate (%)
Bank loans

2.10-2.70

1.85-2.57

Secured borrowings (Note 33)
Bank loans - repayable before October 2031
Unsecured borrowings
Bank loans - repayable before February 2026
Loans from the government (Note)
Current portion- 33 -

Note: The subsidiary StarLite obtained an interest-free loan from the local government and was repaid
in December 2023.

19. BONDS PAYABLE
December 31
3rd domestic unsecured convertible bonds
4th domestic unsecured convertible bonds

2023

2022

$

79,014
163,102242,116(163,102)$ 219,204
261,577
480,781(219,204)$

79,014$ 261,577

Current portiona. In October 2020, the Corporation issued its 3rd domestic five-year unsecured zero-coupon convertible
bonds with an aggregate principal amount of $711,490 thousand (101.64% of the face value) and a parvalue of $100 thousand per bond certificate.
The conversion price was set at $103.8 per share. Bondholders are entitled to convert bonds into the
Corporation’s ordinary shares from January 13, 2021 to October 12, 2025.
If the closing price of the Corporation’s ordinary shares continues being at least 130% of the conversion
price then in effect for 30 consecutive trading days or the aggregate outstanding balance of bonds
payable is less than 10% of the original issuance amount, the Corporation has the right to redeem theoutstanding bonds payable at par value in cash during the period from three months after the issuancedate to the date 40 days prior to the maturity date.
Under the terms of the convertible bonds, the bondholders have the right to require the Corporation toredeem any bonds in cash at face value of the convertible bonds plus interest compensation (1.2547%)
after two and a half years from the issuance.
The amount of the face value of the convertible bonds plus interest compensation (2.5251%) has to be
fully paid off in cash at maturity by the Corporation.
As of December 31, 2023, the total amount of the bonds converted by the bondholders was $621,100
thousand.
b. In October 2020, the Corporation issued its 4th domestic four-year unsecured zero-coupon convertible
bonds with an aggregate principal amount of $500,000 thousand and a par value of $100 thousand per
bond certificate.
The conversion price was set at $105.3 per share. Bondholders are entitled to convert bonds into the
Corporation’s ordinary shares from January 16, 2021 to October 15, 2024.
If the closing price of the Corporation’s ordinary shares continues being at least 130% of the conversion
price then in effect for 30 consecutive trading days or the aggregate outstanding balance of bonds
payable is less than 10% of the original issuance amount, the Corporation has the right to redeem theoutstanding bonds payable at par value in cash during the period from three months after the issuancedate to the date 40 days prior to the maturity date.
Under the terms of the convertible bonds, the bondholders have the right to require the Corporation toredeem any bonds in cash at face value of the convertible bonds plus interest compensation (0.7514%)
after two years from the issuance.

- 34 -

The amount of the face value of the convertible bonds plus interest compensation (1.5085%) has to be
fully paid off in cash at maturity by the Corporation.
As of December 31, 2023, the total amount of bonds converted by the bondholders was $337,600
thousand.
c. In order to repay bank loans to improve the financial structure and save interest expenses, in November
2023, the board of directors approved the resolution to issue the 5th domestic three-year secured
zero-coupon convertible bonds with an aggregate principal amount of $800,000 thousand and a parvalue of $100 thousand per bond certificate. The Registration Statement for Issuing Convertible Bonds
declared to the competent authority has become effective in January 2023 and has been issued in March2024.
Due to the issuance of the 5th domestic secured convertible bonds, according to the terms of theissuance and conversion, on the date of the issuance of the 5th domestic secured convertible bonds, the
3rd and 4th domestic convertible bonds were amended from unsecured to secured with a security
interest of the same grade or class as the 5th domestic secured convertible bonds, and Shin Kong
Commercial Bank Co., Ltd. was entrusted as the guarantee bank.
d. The convertible bonds contain both liability and equity components. The equity component waspresented in equity under the heading of capital surplus - options; the effective interest rate of the equity
and liability component was 0.8% and 1% per annum, respectively, on initial recognition.
For the Year Ended December 31
2023
2022
Liability component at January 1
Interest charged at an effective interest rate
Converted into ordinary shares$ 480,781
3,944(242,609)$ 634,318
8,357(161,894)

Liability component at December 31$ 242,116$ 480,781

20. NOTES PAYABLE AND ACCOUNTS PAYABLEThe Group’s notes payable and accounts payable were generated from operating activities. The average
credit period of purchases of goods is around 45 to 120 days. The Group has financial risk management
policies in place to ensure that all payables are paid within the pre-agreed credit terms and, therefore, there
was no interest charged on the outstanding balance.

21. OTHER PAYABLES
December 31
Payables for salaries
Payables for insurance
Payables for service fee
Payables for equipment
Others- 35 -

2023

2022$ 37,734
3,937
3,870
5,806
37,567$ 36,303
3,757
3,168
1,411
38,651$ 88,914$ 83,29022. RETIREMENT BENEFIT PLANS
The Corporation and the domestic subsidiaries adopted a pension plan under the Labor Pension Act (LPA),
which is a state-managed defined contribution plan. Under the LPA, the Group makes monthly
contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.
Foreign subsidiaries make contributions in accordance with the local regulations, which are also considereddefined contribution plans.

23. MATURITY ANALYSIS OF ASSETS AND LIABILITIESThe current/non-current classification of the Group’s assets and liabilities relating to the project contract
was based on its operating cycle. The amount for related assets and liabilities expected to be recovered or
settled more than 12 months after the reporting period were as follows:
Within 12
MonthsMore Than
12 Months

Total

December 31, 2023
AssetsFinancial assets at amortized cost - current
Accounts receivable, net
Contract assets - current

Liabilities
Contract liabilities - current$

50,953
273,148
108,028$

97,057
365,558
846,050$

148,010
638,706
954,078$

432,129$ 1,308,665$ 1,740,794$

68,511$

65,979$134,490$

72,137
263,829
800,243$

72,651
6,503
502,982$

144,788
270,332
1,303,225$ 1,136,209$

582,136$ 1,718,345$$

30,903$

December 31, 2022
AssetsFinancial assets at amortized cost - current
Accounts receivable, net
Contract assets - current

Liabilities
Contract liabilities - current

37,32068,223

24. EQUITY
a. Ordinary shares
December 31
2023

2022

Number of shares authorized (in thousands)
Shares authorized

90,000$ 900,000

90,000$ 900,000

Number of shares issued and fully paid (in thousands)
Shares issued

64,779$ 647,786

61,443$ 614,431- 36 -

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and the right todividends.
The change in the Corporation’s ordinary shares is due to the conversion of the 3rd and 4th domestic
unsecured convertible bonds. As of December 31, 2023 and 2022, there were 57 thousand and 1,074
thousand shares, respectively, which have not yet been registered and were recognized as advancereceipts for ordinary shares of $571 thousand and $10,743 thousand, respectively. The abovetransactions with subscription base dates determined to be January 23, 2024 and January 13, 2023,
respectively, were registered before the date of approval of the consolidated financial statements.
b. Capital surplus
December 31
2023

2022

$ 2,663,243$ 2,626,897

-

750

9,574

20,542$ 2,672,817$ 2,648,189

May be used to offset deficit, distributed as cash dividends
or transferred to share capital (Note)
Issuance of ordinary shares
May only be used to offset deficit
Share of changes in capital surplus of associates
May not be used for any purpose
Equity component of convertible bonds payable

Note:

Such capital surplus may be used to offset a deficit; in addition, when the Corporation has no
deficit, such capital surplus may be distributed as cash dividends or transferred to share capital(limited to a certain percentage of the Corporation’s capital surplus and to once a year).

c. Retained earnings and dividends policy
Under the dividends policy as set forth in the Corporation’s Articles of Incorporation (the “Articles”),
where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes,
offsetting losses of previous years. Where there is still balance, the Corporation shall set aside as a legal
reserve 10% of the sum of said profit in balance and the amount of profit (of loss) items adjusted to thecurrent year’s undistributed earnings other than the said profit until the legal reserve equals the
Corporation’s paid-in capital. The accumulated distributable earnings be set aside or reversed as a
special reserve in accordance with the laws or regulations and may be retained at the discretion of the
Corporation in accordance with its business needs, in addition to the payment of dividends, theremaining balance, if any, shall be distributed as dividends to shareholders by resolution of theshareholders’ meeting. In accordance with the Articles, the board of directors is authorized to resolvethat all or part of the dividends and bonuses, capital surplus or legal reserve be paid in cash after aresolution has been adopted by a majority vote at a meeting of the board of directors attended by
two-thirds or more of the total number of directors, and a report of such distribution shall be submitted
to the shareholders in their meeting.
The dividends policy of the Corporation considers the plans for the expansion of the scale of operations
and research and development plans, and the overall environment and the features of the industry inorder to pursue sustainable operations and long-term benefits for shareholders. The dividends toshareholders can be paid in cash or issued as shares, but cash dividends shall be not less than 10% of the- 37 -

total dividends.
Legal reserve may be used to offset a deficit. If the Corporation has no deficit and the legal reserve has
exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or
distributed in cash.
The offset of the deficit for 2021 had been approved by the shareholders in their meeting on May 27,2022.
The offset of the deficit for 2022 was approved by the shareholders in their meeting in May 2023,
which resolved to reverse the special reserve of $14,857 thousand, offset the deficit by the legal reserveof $127,421 thousand and the capital surplus of $100,727 thousand. Moreover, in March 2023, theCorporation’s board of directors resolved to distribute $93,776 thousand in cash from its capital surplus
at $1.5 per share.
On March 12, 2024, the Corporation’s board of directors proposed to offset the deficit with the capitalsurplus of $167,662 thousand and resolved to distribute cash from the capital surplus at $0.5 per share.
Based on the number of outstanding shares of 64,836 thousand on the date of resolution of the
Corporation’s board of directors, the amount of distribution would be $32,418 thousand, and if thenumber of outstanding shares subsequently changed, the chairman was fully authorized to adjust theamount of distribution from the capital surplus. The offset of the deficit for 2023 will be resolved by theshareholders in their meeting to be held in May 2024.
d. Other equity items
1) Exchange differences on translating the financial statements of foreign operations
For the Year Ended December 31
2023
2022
Balance at January 1
Recognized for the year
Exchange differences on translation of financial
statements of foreign operations
Share from associates accounted for using the equity
methodReclassification adjustment
Disposal of foreign operations$ (8,516)$ (39,431)(12,199)

30,948

(163)

(33)

3,178

-

Balance at December 31$ (17,700)$ (8,516)

2) Unrealized gain (loss) on financial asset at FVTOCIFor the Year Ended December 31
2023
2022
Balance at January 1
Recognized for the year
Unrealized gains (losses) - equity instruments
Reclassification adjustment
Cumulative unrealized gain of equity instruments
transferred to retained earnings due to disposal$ 30,000

Balance at December 31- 38 -$-(4,536)30,000(12,102)-$ 13,362$ 30,000

e. Non-controlling interests
For the Year Ended December 31
2023
2022
Balance at January 1
Share in loss for the year
Other comprehensive income (loss) for the year
Exchange differences on translation of financial statements offoreign operations
Changes in percentage of ownership interest in subsidiaries
Disposal of subsidiaries$

Balance at December 31

$

253
(211)

$ 1,408(1,672)

(18)
(24)

(37)
554
-

-

$

253

25. REVENUE
For the Year Ended December 31
2023
2022
Project contract revenue
Licensing revenue
Sales of tickets and merchandise
Service revenue
Rental revenue$ 696,738
7,558
57,59088,417
12,400$ 655,326
39,91642,763
51,19814,563$ 862,703$ 803,766

December 31,
2023

December 31,
2022

January 1,
2022$

638,706$$$

980,806
91,265(117,993)$ 1,321,371
81,511(99,657)$ 1,153,510
100,588(81,365)$954,078$ 1,303,225$ 1,172,733$

90,55843,932$

34,15834,065$42,956
22,816$

134,490$

68,223$65,772Contract balances

Accounts receivable
Contract assets
Project contract
Reserves of project contract
Less: Allowance for impairment loss

Contract liabilities
Project contract
Others270,332

216,053

The changes in the balance of contract assets and contract liabilities primarily result from the timing
difference between the Group’s satisfaction of performance obligations and the respective customer’s
payment.

- 39 -

The movements of the loss allowance of contract assets were as follows:
For the Year Ended December 31
2023
2022
Balance at January 1
Loss allowance recognized
Effect of exchange rate$

99,657
18,465(129)$

81,365
18,25933

Balance at December 31$ 117,993$

99,657

26. LOSS BEFORE INCOME TAX
a. Interest income
For the Year Ended December 31
2023
2022
Bank deposits
Others$ 13,476
286

$

8,227
287

$ 13,762$

8,514

b. Other income
For the Year Ended December 31
2023
2022
Dividends
Government grants
Others

$

4,000
410
3,441

$

16,043
2,979

$

7,851

$ 19,022

c. Other gains and losses
For the Year Ended December 31
2023
2022
Net gain (loss) on financial assets at FVTPL
Net foreign exchange gain
Net gain on disposal of property, plant and equipment (Note 15)
Net loss on disposal of intangible assets
Loss on disposal of subsidiaries (Note 13)
Gain on disposal of associates (Note 14)
Gain on right-of-use assets sublease (Note 11)
Others- 40 -$(1,956)950(3,178)2,276
12,402
(20)

$

7,537
78,52774,931
(703)
(338)

$

10,474$ 159,954

d. Finance costs
For the Year Ended December 31
2023
2022
Interest on bank loans
Interest on lease liabilities
Interest on convertible bonds$ 17,141
6,209
3,944

$ 10,423
4,937
8,357

$ 27,294$ 23,717

e. Depreciation and amortization
For the Year Ended December 31
2023
2022
Property, plant and equipment
Right-of-use assets
Intangible assets$

An analysis of depreciation by function
Operating costs
Operating expenses

An analysis of amortization by function
Operating costs
Operating expenses

96,45250,25031,324$

98,78446,261
31,336$ 178,026$ 176,381$$

52,644
94,05850,03895,007$ 146,702$ 145,045$

23,016
8,308$

18,638
12,698$31,324$

31,336f. Employee benefits
For the Year Ended December 31
2023
2022
Short-term employee benefits
Post-employment benefits (Note 22)
Defined contribution plans

An analysis by function
Operating costs
Operating expenses$ 288,008$ 284,347

11,821

11,497$ 299,829$ 295,844$$

81,421
218,408$ 299,829

68,974
226,870$ 295,844

g. Compensation of employees and remuneration of directors
According to the Articles of Incorporation of the Corporation, the Corporation accrues compensation of
employees and remuneration of directors at rates of 5% to 15% and no higher than 2%, respectively, ofnet profit before income tax, compensation of employees, and remuneration of directors, but if the- 41 -

Corporation still has accumulated deficit, it should first set aside an amount for offset of the deficit. The
board of directors resolved not to accrue compensation of employees and remuneration of directors for2022 and 2023 due to net loss before income tax.
If there is a change in the amounts after the annual consolidated financial statements are authorized for
issue, the differences are recorded as a change in the accounting estimate.
Information on the compensation of employees and remuneration of directors resolved by the
Corporation’s board of directors is available at the Market Observation Post System website of the
Taiwan Stock Exchange.

27. INCOME TAX
a. The major components of income tax benefit were as follows:
For the Year Ended December 31
2023
2022
Current tax
In respect of the current year
Adjustments for prior years
Land value incremental tax$

Deferred tax
In respect of the current year

6,156
196
6,352

$

6,867
27
271
7,165

(48,660)(28,725)$ (42,308)$ (21,560)

A reconciliation of accounting loss and income tax benefit was as follows:
For the Year Ended December 31
2023
2022
Loss before income tax$ (222,283)$ (83,958)

Income tax benefit calculated at the statutory rate
Tax-exempt proceeds from land transactions
Permanent differences
Tax-exempt net income from investments
Deferred tax effect of earnings of subsidiaries
Unrecognized net loss of foreign investments
Unrecognized loss carryforwards
Adjustments for prior years’ tax
Land value incremental tax
Withholding tax$ (52,360)
782
(592)
8,485
13
196
1,168

$ (15,958)(15,704)
(930)
701
8,048
27
271
1,985

$ (42,308)$ (21,560)

The corporate income tax rate in Taiwan is 20%. The applicable tax rate used by subsidiaries in China
is 25% and tax rates used by other entities in the Group operating in other jurisdictions are based on the
tax laws in those jurisdictions.

- 42 -

c. Current tax assets and liabilities
December 31
2023

2022

Current tax assets
Tax refund receivable$ 1,659$

Current tax liabilities
Income tax payable$877$ 2,490

Exchange
Differences

Balance, Endof Year$$891

d. Deferred tax assets and liabilities
The movements of deferred tax assets and liabilities were as follows:
For the year ended December 31, 2023
Balance,
Beginning ofYear

Recognized in
Profit or Loss

Deferred tax assets
Temporary differences
Allowance for impairment
loss
Unrealized loss on foreign
currency exchange
Loss on financial instruments
at FVTPL
Others$Loss carryforwards

25,024$

15,142-40,166

257

4,568

-

4,825

1,672
3,929
30,882
59,617

4,815
8,979
33,504
1,450

(36)
(188)
(224)
(6)

6,451
12,72064,162
61,061$90,499$34,954$(230)$ 125,223$

16,931
10,079$(3,913)(9,793)

$

(198)
(103)

$

12,820183$

27,010$ (13,706)

$

(301)

$

13,003

Balance,
Beginning ofYear

Recognized in
Profit or Loss

Deferred tax liabilities
Temporary differences
Unrealized gross margin
OthersFor the year ended December 31, 2022

Exchange
Differences

Balance, Endof Year$$Deferred tax assets
Temporary differences
Allowance for impairment
loss$

22,920- 43 -

$

2,104

-

25,024(Continued)

Balance,
Beginning ofYear
Unrealized loss on foreign
currency exchange
Loss on financial instruments
at FVTPL
Others$8,572

Recognized in
Profit or Loss
$

3,198
2,869
37,55938,885

Loss carryforwards(8,315)

Exchange
Differences

Balance, Endof Year$$-(1,526)
1,060(6,677)
20,726

6

257
1,672
3,929
30,882
59,617$76,444$

14,049$6$

90,499$28,571
12,570$ (12,003)(2,673)

$

363
182

$

16,931
10,079$41,141$ (14,676)$

545$ 27,010(Concluded)

Deferred tax liabilities
Temporary differences
Unrealized gross margin
Otherse. The aggregate amount of loss carryforwards and deductible temporary differences for which deferred
tax assets have not been recognized
December 31
2023
Loss carryforwards
Expiry in 2030
Expiry in 2031
Expiry in 2032

Deductible temporary differences
Foreign investment loss

2022

$

904
18,28640,238$904
18,28640,238$59,428$59,428$ 108,737$

63,330f. The aggregate amount of temporary differences associated with investments for which deferred tax
liabilities have not been recognized
As of December 31, 2023 and 2022, the taxable temporary differences associated with investments in
subsidiaries for which no deferred tax liabilities have been recognized were $110,740 thousand and$169,991 thousand, respectively.
g. Information about unused loss carryforwards
Loss carryforwards as of December 31, 2023 comprised:
Unused Amount$

Expiry Year

621
1,549
17,505

2025
2027
2030
(Continued)- 44 -

Unused Amount$

156,252
141,544
46,717$364,188

Expiry Year
2031
2032
2033
(Concluded)

h. Income tax assessments
The income tax returns of the Corporation and the domestic subsidiaries through 2021 have beenassessed by the tax authorities.

28. LOSS PER SHARE
Due to the net loss incurred for the years ended December 31, 2023 and 2022, there was no dilutive effecton the computation of diluted loss per share. The loss and weighted average number of ordinary shares
outstanding used in the computation of loss per share were as follows:a. Net loss for the year
For the Year Ended December 31
2023
2022
Net loss attributable to owners of the Corporation$ (179,764)$ (60,726)

b. Weighted average number of shares outstanding (in thousands)
For the Year Ended December 31
2023
2022
Weighted average number of shares

64,32861,13329. SHARE-BASED PAYMENT ARRANGEMENTS
Qualified employees of Brogent Global were granted 500 units of share options in February 2017. Each
option entitles the holder with the right to subscribe for one thousand ordinary shares of Brogent Global.
The options granted are valid for 10 years and exercisable at certain percentages after the second
anniversary from the grant date.
Information about Brogent Global’s employee share options was as follows:
For the Year Ended December 31
2023
2022
WeightedWeightedaverage
average
Number of
Exercise
Number of
Exercise
Options
Price ($)
Options
Price ($)
Balance at January 1
Options forfeited28-

Balance at December 31
Options exercisable, end of the year

10
-

31
(3)

28

10

28

10

28

10

28

10

- 45 -

$

$

10
10

30. CAPITAL MANAGEMENT
The capital structure of the Group consists of net debt and equity of the Group. The Group manages its
capital to ensure that entities in the Group will be able to continue as going concerns while maximizing thereturn to stakeholders through the optimization of the debt and equity balance.
The Group is not subject to any externally imposed capital requirements.

31. FINANCIAL INSTRUMENTS
a. Fair value of financial instruments not measured at fair value
The Group’s management considers that the carrying amounts of financial instruments that are notmeasured at fair value approximate their fair values, except for convertible bonds.
The carrying amounts and fair values of the convertible bonds as of December 31, 2023 and 2022 wereas follows:
December 31
Book value
Fair value

2023

2022

$ 242,116$ 239,996$ 480,781$ 470,825

The fair value of bonds payable based on Level 3 fair value measurement was determined using thebinomial option pricing model where the significant and unobservable input was historical volatility.
b. Fair value of financial instruments that are measured at fair value on a recurring basis
1) Fair value hierarchy
December 31, 2023
Level 1

Level 2

Level 3

Total

Financial assets at FVTPL
Unquoted shares
Derivative instruments

$

-

$

-

$ 409,515
32$ 409,515
32

$

-

$

-

$ 409,547$ 409,547$

64,300
-

$

-

$

1,379

$

64,3001,379$

64,300

$

-

$

1,379

$

65,679Financial assets at FVTOCI
Investments in equity
instruments
Domestic listed shares
Unquoted shares- 46 -

December 31, 2022
Level 1

Level 2

Level 3

Total

Financial assets at FVTPL
Mutual funds
Unquoted shares
Derivative instruments$ 118,390
-

$

-

$

378,155429$ 118,390
378,155429$ 118,390$-$ 378,584$ 496,974$ 130,000$-$$ 130,000

Financial assets at FVTOCI
Investments in equity
instruments
Domestic listed shares-

There were no transfers between Level 1 and Level 2 for the years ended December 31, 2023 and
2022.
2) Reconciliation of Level 3 fair value measurements of financial assets
For the Year Ended December 31, 2023
At FVTPL
EquityDerivatives
Instruments

At FVTOCI
EquityInstruments

Balance at January 1
Additions
Transferred frominvestments using theequity method
Convertible bonds
converted into ordinary
share
Recognized in loss
Recognized in othercomprehensive loss
Effect of foreign currency
exchange differences$$

Balance at December 31

$

429
-

$ 378,155
43,258

-

Total

-

$ 378,584
43,258

-

2,336

2,336

(295)
(102)

(8,646)-(295)(8,748)

-

-

(938)

(938)

-

(3,252)(19)(3,271)32$ 409,515

1,379$ 410,926$

For the Year Ended December 31, 2022
EquityInstruments

Total

1,983
-

$ 291,657
61,288$ 293,640
61,288(159)-

Derivatives
Balance at January 1
Additions
Convertible bonds converted into ordinaryshare- 47 -$(159)(Continued)

Derivatives

EquityInstruments

Recognized in profit or loss
Effect of foreign currency exchange
differences$$

Balance at December 31$(1,395)

7,929-

17,281429$ 378,155

Total
$

6,534
17,281$ 378,584(Concluded)3) Valuation techniques and inputs applied for Level 3 fair value measurementa) Equity Instrument Investments
The fair values of unquoted shares at FVTPL were determined using the income approach. In
this approach, the discounted cash flow method was used to capture the present value of the
expected future economic benefits to be derived from the ownership of these investees. The fairvalues of unquoted shares at FVTOCI were determined based on the recent net equity.
b) Redemption Options and Put Options of Convertible Bonds
The fair values of redemption options and put options of convertible bonds were determinedusing the binomial option pricing model where the significant and unobservable input was
historical volatility.
c. Categories of financial instruments
December 31
2023

2022

$ 1,701,077
409,547
65,679$ 1,213,290
496,974
130,000

1,350,830

1,325,886

Financial assets
Financial assets at amortized cost (1)Financial assets at FVTPL
Financial assets at FVTOCI
Financial liabilities
Amortized cost (2)1) The balances comprise cash and cash equivalents, financial assets at amortized cost, accounts
receivable and refundable deposits, etc.
2) The balances comprise short-term borrowings, notes and accounts payable, other payables,
long-term borrowings (including current portion), bonds payable (including current portion) andGuarantee deposits received, etc.
d. Financial risk management objectives and policies
The Group’s corporate treasury function provides services to the business, monitors and manages thefinancial risks relating to the operations of the Group through analyzing the degree of exposures. The
corporate treasury function reports regularly to the Group’s management. The risks include market risk,
credit risk and liquidity risk.

- 48 -

1) Market risk
The Group’s activities exposed it primarily to the financial risks as follows:a) Foreign currency risk
The carrying amounts of the Group’s foreign currency-denominated monetary assets andmonetary liabilities (including those eliminated on consolidation) at the end of the reporting
period are set out in Note 35.
Sensitivity analysis
The Group was mainly exposed to the USD and RMB.
The sensitivity analysis included only monetary items. A positive number below indicates anincrease in pre-tax profit associated with the functional currency weakening 1% against therelevant currency.
For the Year Ended December 31
2023
2022
USD
RMB

$ 2,033
6,992$ 3,5996,456b) Interest rate risk
The Group was exposed to interest rate risk because the Group borrowed funds at both fixedand floating interest rates. The risk is managed by the Group by maintaining an appropriate mixof fixed and floating rate borrowings. The carrying amounts of the Group’s financial assets andfinancial liabilities with exposure to interest rates at the end of the reporting period were as
follows:
December 31
2023
Fair value interest rate risk
Financial assets
Financial liabilities$

Cash flow interest rate risk
Financial assets
Financial liabilities

475,358
1,050,726
582,249548,591

2022$

519,166
1,095,109
402,964
346,647

Sensitivity analysis
The sensitivity analysis below was determined based on the Group’s exposure to interest rates
for non-derivative instruments at the end of the reporting period. For floating rate assets andliabilities, the analysis was prepared assuming the amount of each asset and liability outstandingat the end of the reporting period was outstanding for the whole year.
If interest rates had been 1% higher/lower and all other variables were held constant, theGroup’s pre-tax profit for the years ended December 31, 2023 and 2022 would haveincreased/decreased by $337 thousand and decreased/increased by $563 thousand, respectively,
which was mainly attributable to the Group’s variable-rate bank deposits and borrowings.

- 49 -c) Other price risk
The Group was exposed to equity price risk through its investments in equity securities. The
Group manages this exposure by maintaining a portfolio of investments with different risks.
Sensitivity analysis
The sensitivity analysis below was determined based on the exposure to equity price risks at theend of the reporting period.
If equity prices had been 1% higher/lower, the pre-tax profit for the years ended December 31,
2023 and 2022 would have increased/decreased by $4,095 thousand and $4,965 thousand,respectively, as a result of the changes in the fair value of financial assets at FVTPL; othercomprehensive income for the years ended December 31, 2023 and 2022 would haveincreased/decreased by $657 thousand and $1,300 thousand, respectively, as a result of thechanges in the fair value of financial assets at FVTOCI.
2) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting
in a financial loss to the Group. At the end of the reporting period, the Group’s maximum exposure
to credit risk could be equal to the carrying amount of the respective recognized financial assets asstated in the consolidated balance sheets.
Refer to Note 10 for the financial risk management policies adopted by the Group.
The Group’s credit risk was mainly concentrated in the following groups accounted for 73% and
53% of net accounts receivable as of December 31, 2023 and 2022, respectively.
December 31
2023Group AGroup B
Group C2022

$ 464,692
359-$

43,15762,53338,479$ 465,051$ 144,169

3) Liquidity risk
The Corporation manages liquidity risk by monitoring and maintaining a level of cash and cash
equivalents deemed adequate to finance the Group’s operations and mitigate the effects offluctuations in cash flows. In addition, the management monitors the utilization of bank borrowingsand ensures compliance with loan covenants.
The following table details the Group’s remaining contractual maturities for its non-derivative
financial liabilities with agreed upon repayment periods. The table has been drawn up based on theundiscounted cash flows of financial liabilities from the earliest date on which the Group can berequired to pay. The table includes both interest and principal cash flows. Specifically, bank loans
with a repayment on demand clause were included in the earliest time band regardless of theprobability of the banks choosing to exercise their rights. The maturity dates for othernon-derivative financial liabilities were based on the agreed upon repayment dates.
To the extent that interest flows are at floating rates, the undiscounted amount was derived from theinterest rate at the end of the year.

- 50 -

Within
1 Year

2-3 Years

4-5 Years

More than
5 Years

Total

December 31, 2023
Non-interest bearing liabilities
Lease liabilities
Variable interest rate liabilities
Fixed interest rate liabilities$

144,673
71,099120,447
515,044$

108,326
161,378
80,892$

94,239163,253-$450
174,808
143,818-$

145,123
448,472
588,896595,936$

851,263$

350,596$

257,492$

319,076$ 1,778,427$

205,71169,427
84,163
517,465$

101,810
167,578
267,982$

84,575
43,529-$84,886
68,893-$$876,766$

537,370$

128,104$

153,779$ 1,696,019

December 31, 2022
Non-interest bearing liabilities
Lease liabilities
Variable interest rate liabilities
Fixed interest rate liabilities

205,711
340,698
364,163785,447

32. TRANSACTIONS WITH RELATED PARTIES
Details of transactions between the Group and its related parties were as follows:a. Related party name and category
Related Party Name

Related Party Category

Brogent Japan Entertainment
Chih-Hung Ouyang
Shen-Hao Cheng

Associates
Key Management (Chairman of the board)
Key Management (Director of the board)b. Operating Revenue

Line Item

Related Party TypeFor the Year Ended December 31
2023
2022

Rental revenue

Associates

$

6,946

$ 14,182

Service revenue

Associates

$

1,841

$

155

Licensing revenue

Associates

$

253

$

-

c. Operating costs

Line Item
Operating costs

Related Party Type
Associates

For the Year Ended December 31
2023
2022
$

-

$ 318

d. Lease arrangements
Under an operating lease agreement, the Group leased a building in the Xinxing District, Kaohsiung
City, from Shen-Hao Cheng, the key management of the Group, for the use of equipment display. The
lease term is 1 year and may be renewed upon expiration by mutual consent. Rental expenses in 2023
and 2022 were $816 thousand and $476 thousand, respectively, recognized under operating expenses.

- 51 -

e. Chih-Hung Ouyang, the key management members of the Group, provided the guarantees for someborrowings of the Group.
f. Compensation of key management personnel
The amounts of the remuneration of directors and other members of key management personnel were as
follows:
For the Year Ended December 31
2023
2022
Short-term employee benefits
Post-employment benefits$ 9,258108$ 8,860135$ 9,366$ 8,995

33. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY
The following assets were provided as collateral for construction guarantee, lease development, government
grants, and borrowings:
December 31
2023
Financial assets at amortized cost - current
Demand deposits and time deposits
Financial assets at amortized cost - non-current
Time deposits
Property, plant and equipment
Buildings$

2022

99,069$ 128,876

20,40324,210391,681

411,773$ 511,153$ 564,859

34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS
As of December 31, 2023, the Group’s outstanding notes payable for performance and warranty undervarious construction projects were $15,468 thousand; letters of guarantee for warranty under various
construction projects were $175,526 thousand.

35. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIESThe Group’s significant financial assets and liabilities denominated in foreign currencies aggregated by theforeign currencies other than functional currencies and the related exchange rates between foreign
currencies and respective functional currencies were as follows:- 52 -

Foreign
Currency(In Thousands)

Exchange Rate ($)

NTD(In Thousands)

December 31, 2023
Financial assets
Monetary items
USD
RMB
RMB

$

6,937
160,497
1,023

30.71
4.33
0.14

(USD:NTD)(RMB:NTD)(RMB:USD)$ 213,026
694,790
4,430

101
215

30.71
7.09

(USD:NTD)(USD:RMB)

3,099
6,596

Financial assets
Monetary items
USD
RMB
RMB

11,982
124,813
21,619

30.70
4.41
0.14

(USD:NTD)(RMB:NTD)(RMB:USD)

367,848550,299
95,317

Financial liabilities
Monetary items
USD
USD

45
215

30.70
6.96

(USD:NTD)(USD:RMB)

1,377
6,593

Financial liabilities
Monetary items
USD
USD
December 31, 2022

For the years ended December 31, 2023 and 2022, realized and unrealized net foreign exchange gains were$950 thousand and $78,527 thousand, respectively. It is impractical to disclose net foreign exchange gains
and losses by each significant foreign currency due to the variety of the foreign currency transactions andfunctional currencies of the entities in the Group.

36. ADDITIONAL DISCLOSURES
a. Information about significant transactions:1) Financing provided to others: Table 1
2) Endorsements/guarantees provided: Table 23) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures):
Table 34) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20%of the paid-in capital: None
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in
capital: None
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital:
None- 53 -

7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of thepaid-in capital: None
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in
capital: Table 49) Trading in derivative instruments: Note 710) Intercompany relationships and significant intercompany transactions: Table 7
b. Information on investees: Table 5c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal businessactivities, paid-in capital, method of investment, inward and outward remittance of funds,
ownership percentage, net income of investees, investment income or loss, carrying amount of theinvestment at the end of the period, repatriations of investment income, and limit on the amount ofinvestment in the mainland China area: Table 62) Any of the following significant transactions with investee companies in mainland China, either
directly or indirectly through a third party, and their prices, payment terms, and unrealized gains orlosses:a) The amount and percentage of purchases and the balance and percentage of the related payablesat the end of the year:
Transaction Party
The Corporation

Counterparty
Brogent Rides

Purchase

Accounts
Payable$ 1,446$-b) The amount and percentage of sales and the balance and percentage of the related receivables atthe end of the year:
Transaction Party
The Corporation
The Corporation
Brogent Global

Counterparty
Brogent Rides
HaiWei Creative
HaiWei Creative

Operating
Revenue

Accounts
Receivable$$ 241,677
136,836

16,370709
22,792c) The amount of property transactions and the amount of the resultant gains or losses: Noned) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at theend of the period and the purposes: Table 2e) The highest balance, the end of period balance, the interest rate range, and total current periodinterest with respect to financing of funds: Nonef) Other transactions that have a material effect on the profit or loss for the year or on the financial
position, such as the rendering or receipt of services: Table 7- 54 -

d. Information of major shareholders: List all shareholders with ownership of 5% or greater showing thename of the shareholder, the number of shares owned, and percentage of ownership of eachshareholder: Table 8

37. SEGMENT INFORMATIONThe chief operating decision maker of the Group reviews the overall operating results in order to makedecisions about resource allocation and assessment of the overall performance. The Group has a single
operation segment. Therefore, the measurement basis for sales, operating results, and assets of thereportable segments in 2023 and 2022 is the same as the corporate financial statements. Refer to the balance
sheets and the statements of comprehensive income for 2023 and 2022.
a. Revenue from major products and services: Note 25
b. Geographical information
The Group’s revenue from continuing operations from external customers by location of customers andinformation about its non-current assets by location of assets are detailed below.
Revenue from External
Customers
For the Year Ended December 31
2023
2022
TaiwanAsia
EuropeAmericas
OthersNon-current Assets
December 31
2023
2022

$

83,439322,023
13,945298,563
144,733$

53,378299,665
19,011
396,00535,707$ 1,283,769
82,39740,3692,336-$ 1,161,567
89,93853,825960-$

862,703$803,766$$ 1,306,290

1,408,871

Non-current assets exclude financial instruments, finance lease receivables, investment accounted forusing equity method and deferred tax assets.
c. Information about major customers
For the Year Ended December 31
2023
2022
Proportion
Proportionof Netof NetOperatingOperating
Revenue
RevenueAmount(%)
Amount(%)
Group AGroup B
Group CGroup DGroup E$

156,534
127,052
107,021
21,848
9,656

18
15
12
3
1

$

124,749790
6,134
233,41782,519

16
1
29
10

$

422,11149$

447,60956- 55 -TABLE 1

Brogent Technologies Inc. and Subsidiaries
FINANCING PROVIDED TO OTHERSFOR THE YEAR ENDED DECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)No.

FinancingCompany0

The Corporation

Brogent Global

0

The Corporation

Brogent HK

Counterparty

Financial
Statement Account

Other receivables related parties
Other receivables related parties

Related Maximum Balance
Party
for the Year

Yes
Yes

$

150,000
150,000

Ending Balance

Actual Amount
Drawn(Note 2)$$150,000
150,000

Interest
Rate (%)

Nature ofFinancing--

Short-term financing--

Short-term financing

Transaction
Amount$Reason for
Financing-Operating Capital-

Operating Capital

Allowance for
Impairme nt
Loss$

Note 1: The financing limit for each borrowing company and the total financing limit shall not exceed 10% and 40% respectively of the latest equity of the Corporation.
Note 2: The exchange rate was US$1=$30.71.
- 56 -

Financing Limit
for Each
Borrowing
Company (Note 1)

Collateral
Item

-

-

-

-

Value
$

-

$

314,917314,917

FinancingCompany’s Total
Financing Limit(Note 1)$

1,259,669
1,259,669

Note

TABLE 2

Brogent Technologies Inc. and Subsidiaries
ENDORSEMENTS/GUARANTEES PROVIDEDFOR THE YEAR ENDED DECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)Endorsee/Guarantee

No.

0
0

Endorser/Guarantor

The Corporation
The Corporation

Name

Brogent Creative
Brogent Global

Relationship

Subsidiary
Subsidiary

Limit of AmountMaximum
Provided to Each
Balance for the
Guaranteed
Year
Party (Note 1)$

944,751
944,751$

43,29050,000

Ratio ofAccumulated
Amount ofMaximum
Endorsement/
Endorsement/
Endorsement/Gu
Guarantee
Ending Balance Amount Actually
Guarantee to Net
Guarantee
arantee Amount
Provided by(Note 2)
Drawn (Note 2)
Equity in Latest
Collateralized by
Allowable
Parent Company
Financial
Properties(Note 1)
Statements(%)$

43,29050,000$3,911
35,000

$

4,329
-

1.37
1.59

$ 1,574,586
1,574,586

Note 1: The limit on endorsement/guarantee given for each party and the total financing limit shall not exceed 30% and 50% respectively of the latest equity of the Corporation.
Note 2: The exchange rate was RMB1=$4.329.
- 57 -YY

Guarantee
Provided by
Subsidiary

Guarantee
Provided to
Subsidiary in
Mainland China

N
N

Y
N

Note

TABLE 3

Brogent Technologies Inc. and Subsidiaries
MARKETABLE SECURITIES HELDDECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Holding Company

The Corporation

Brogent Global

Holey Holdings Limited

Brogent HK

Brogent Rides

December 31, 2023
Percentage
ofCarrying Value
Ownership(%)

Relationship with theHolding Company

Financial Statement AccountOrdinary Shares
Ruentex Industries Ltd.

-

Financial assets at FVTOCI - current

1,000,000$

64,3000.09$

64,300Equity Investment
Jump Media International Co., Ltd.
This is Holland B.V.

-

Financial assets at FVTPL - current
Financial assets at FVTPL non-current

264,001100$

10,8830.93
10$10,883$

10,883$

10,883$34,010-$34,010Type and Name of Marketable Securities

Number of Shares

Fair Value

Preference SharesThis is Holland B.V.

-

Financial assets at amortized cost non-current

Equity Investment
Discover NY Project Company, LLC-

Financial assets at FVTPL non-current

2,310$ 111,383

19.09$ 111,383

Preference Shares
Discover NY Project Company, LLC-

Financial assets at FVTPL non-current

1,223$ 132,391-$ 132,391

Equity Investment
Discover NY Project Company, LLC-

Financial assets at FVTPL non-current

500

Equity Investment
Fly Over The World Cultural
Development Co., Ltd.

-

Financial assets at FVTPL non-current

Equity Investment
Beijing Huawei Global Cultural
Development Co., Ltd.

-

Financial assets at FVTPL non-current- 58 -

200$

24,1094.13$

27,900,000$ 130,749

4.75$ 130,749

1,050,000

$

1,379

17.50

$

24,109

1,379

Note

TABLE 4

Brogent Technologies Inc. and Subsidiaries
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITALFOR THE YEAR ENDED DECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)Company Name

Related Party

RelationshipEnding Balance(Note 1)

TurnoverRate

The Corporation

Brogent Rides

Subsidiaries$ 241,677-

Brogent Global

HaiWei Creative

Subsidiaries

136,836-- 59 -

OverdueAmount Received inAllowance forAmountActions Taken Subsequent Period Impairment Loss
$

-

-

-

-

$

12,680$-TABLE 5

Brogent Technologies Inc. and Subsidiaries
INFORMATION ON INVESTEESFOR THE YEAR ENDED DECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Investor Company

Investee Company

Location

Main Businesses andProducts

Original Investment Amount
December 31, 2023 December 31, 2022

As of December 31, 2023
Net Income (Loss)
Number ofof the Investee(%)
Carrying AmountsharesShare of Profit(Loss)

Note$ 370,947$ 306,287-

100.00$ 262,210$ (42,195 )$ (42,195 )Subsidiary

300,000

300,000

36,214,332

100.00288,084(3,472 )213

Subsidiary296,593

296,593-

100.00432,973

27,45727,457

Subsidiary

Scroll Application Technology Taiwan
Co., Ltd.

20,000-2,000,000

48.78

11,938(16,527 )(8,062 )Associates

Brogent HK

Brogent Japan Entertainment

10,161

10,161

-

35.90

6,886

15,022

5,392

Associates

Brogent HK

hexaRide the first LLP

81,55281,552---(1,390 )(1,180 )Note 4

Brogent HK

StarLite

37,50537,505-100.009,861(5,225 )(5,225 )Subsidiary

Dili Jie

Jetway298,659

298,659-

100.00432,952

27,45927,459Subsidiary

JetwayGarley131,258

131,258-

100.00187,492(16,525 )(16,525 )Subsidiary

JetwayHoley Holdings Limited

168,391

168,391-

100.00245,173

44,21044,210Subsidiary

Brogent Global

Jetmay99,27699,276-100.00117,561(36,272 )(35,872 )Subsidiary

The Corporation

Brogent HK

The Corporation

Brogent Global

The Corporation

Dili Jie

The Corporation

Hong Kong Reinvestment and tradingbusiness
TaiwanDevelopment and managementbusiness of self-operated
outlets, site planning andfilm production
British Virgin Reinvestment and trading
Islands
business
Sales and research anddevelopment of software
servicesJapan
Management businessdevelopment and sales ofthe peripheral products ofsimulator rides in JapanJapan
Development and managementbusiness of self-operated
outlets
CanadaDesign and managementbusiness
CaymanReinvestment and trading
Islands
business
British Virgin Reinvestment and trading
Islands
business
British Virgin Reinvestment and trading
Islands
business
British Virgin Reinvestment and trading
Islands
business

Note 1: The share of profit (loss) recognized for the year ended December 31, 2023 included eliminated unrealized gains or losses.
Note 2: The share of profit (loss) of subsidiaries are eliminated on consolidation.
Note 3: Refer to Table 6 for the information on investments in mainland China.
Note 4: hexaRide had been liquidated in December 2023.
- 60 -TABLE 6

Brogent Technologies Inc. and Subsidiaries
INFORMATION ON INVESTMENTS IN MAINLAND CHINAFOR THE YEAR ENDED DECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Main Businesses and Products

Paid-in Capital(Note 1)Brogent Rides

Import and export business$Brogent Creative

Development and managementbusiness of self-operated outlets

56,277

HaiWei Creative

Whole planning business

86,580Beijing Huawei Global Cultural
Development Co., Ltd.

Development and managementbusiness of self-operated outlets

25,974

Investee Company

Investee Company
The Corporation

214,127

Method ofInvestment

Reinvested throughthe third region
Brogent HK andGarleyReinvested throughthe third region
Brogent Rides
Reinvested throughthe third region
JetmayReinvested throughthe third region
Brogent Rides

Accumulated Outward Remittancefor Investments in Mainland China
as of December 31, 2023$
311,166$

222,712

Accumulated
Outward%Accumulated
Remittance
Ownership
Carrying AmountRepatriation of
Net Income (Loss)
Investment
for Investment fromof Direct oras of December 31, Investment Incomeof the Investee
Gain (Loss) (Note)
Taiwan as ofIndirect2023
as of December 31,
December 31,
Investment
2023
2023

Remittance of Funds

Accumulated
Outward
Remittance forInvestment from
Taiwan as ofJanuary 1, 2023

Outward$

Inward-$-$222,712$(28,626 )100.00$(28,626 )$

321,148

$

Note

-

Note 2----(907 )

100.00(907 )

83,971-

Note 288,454--88,454(36,272 )100.00(36,272 )

117,536-

Note 2----(5,467 )

17.50

(38 )

-

-

Notes 3 and 4

Investment Amount Authorized
by the Investment Commission,
MOEA$
311,166

Upper Limit on the Amount of
Investments Stipulated by theInvestment Commission, MOEA
$ 1,889,503

Note 1: The exchange rate was RMB1=$4.329.
Note 2: The investment gain (loss) was recognized based on the financial statements audited by the Corporation’s CPA.
Note 3: The investment gain (loss) was recognized based on the financial statements not audited.
Note 4: The ownership percentage decreased due to non-proportionate subscriptions for additional new shares in July 2023 and thus lost significant influence. Therefore, the investment was reclassified to the financial asset at
FVTOCI - non-current. Refer to Note 14 and Table 3.
- 61 -TABLE 7

Brogent Technologies Inc. and Subsidiaries
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONSFOR THE YEAR ENDED DECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Transaction Details
No.

Transaction Party

Counterparty

Relationship

Financial Statement
Account

Accounts receivable
Project contract revenue
Service revenue
Accounts receivable
Other receivables
Rental revenue
Interest income
Other receivables
Project contract revenue
Accounts receivable
Service revenue
Sales of tickets andmerchandise
Accounts receivable
Project contract revenue
Sales
Accounts receivable
Accounts receivable
Service revenue

0
0
0
0
0
0
0
0
0
1
1
1

The Corporation
The Corporation
The Corporation
The Corporation
The Corporation
The Corporation
The Corporation
The Corporation
The Corporation
Brogent Global
Brogent Global
Brogent Global

Brogent Rides
Brogent Rides
Brogent Rides
Brogent Global
Brogent Global
Brogent Global
Brogent HK
HaiWei Creative
HaiWei Creative
The Corporation
The Corporation
The Corporation

Parent to subsidiary
Parent to subsidiary
Parent to subsidiary
Parent to subsidiary
Parent to subsidiary
Parent to subsidiary
Parent to subsidiary
Parent to subsidiary
Parent to subsidiary
Subsidiary to parent
Subsidiary to parent
Subsidiary to parent

1
1
2
2
3
3

Brogent Global
Brogent Global
Brogent Rides
Brogent Rides
StarLite
StarLite

HaiWei Creative
HaiWei Creative
The Corporation
HaiWei Creative
The Corporation
The Corporation

Subsidiary to subsidiary
Subsidiary to subsidiary
Subsidiary to subsidiary
Subsidiary to subsidiary
Subsidiary to subsidiary
Subsidiary to parent- 62 -$

AmountPayment Terms% of Total
Operating
Revenues(Assets)

241,677
16,370
191
3,483
7,940
12,469
1,904
86
709
4,247
14,594
1,491

According to the contract
According to the contract
According to the contract
According to the contract
According to the contract
According to the contract
According to the contract
According to the contract
According to the contract
According to the contract
According to the contract
According to the contract

5.00
2.00
1.00
2.00
-

136,836
22,792
1,446
15,5481,757
4,851

According to the contract
According to the contract
According to the contract
According to the contract
According to the contract
According to the contract

3.00
3.00
1.00

TABLE 8

Brogent Technologies Inc. and Subsidiaries
INFORMATION OF MAJOR SHAREHOLDERSDECEMBER 31, 2023

SharesNumber of Shares
Percentage of
Owned
Ownership (%)

Name of the Shareholder
Chih-Hung Ouyang

3,807,191

5.87

Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository &Clearing Corporation based on the number of ordinary shares and preference shares held byshareholders with ownership of 5% or greater, including shares that have been issued without physicalregistration by the Corporation as of the last business day for the current quarter. The share capital in
the consolidated financial statements may differ from the actual number of shares that have been
issued without physical registration because of different preparation basis.
Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by theindividual trustor who opened the trust account. For shareholders who declare insider shareholdings
with ownership greater than 10% in accordance with the Security and Exchange Act, theshareholdings include shares held by shareholders and those delivered to the trust over whichshareholders have rights to determine the use of trust property. For information relating to insider
shareholding declaration, refer to Market Observation Post System.
- 63 -