Brogent Technologies Inc.
Parent Company Only 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 parent company only financial statements of Brogent Technologies Inc. (the“Corporation”), which comprise the balance sheets as of December 31, 2023 and 2022, and the statements ofcomprehensive income, changes in equity and cash flows for the years then ended, and the notes to the financial
statements, including material accounting policy information (collectively referred to as the “financial
statements”).
In our opinion, the accompanying parent company only financial statements present fairly, in all material
respects, the financial position of the Corporation as of December 31, 2023 and 2022, and its financial
performance and its cash flows for the years then ended in accordance with the Regulations Governing the
Preparation of Financial Reports by Securities Issuers.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing 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 Parent Company Only Financial Statements section of our report. We are independent of the
Corporation in accordance with The Norm of Professional Ethics for Certified Public Accountant of the
Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the parent company only financial statements for the year ended December 31, 2023. These matters wereaddressed in the context of our audit of the parent company only 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 Corporation’s parent company only financial statements for the year ended
December 31, 2023 is stated as follows:
The recognition of project contract revenue
Project contract revenue is the main operating revenue of the Corporation. The Corporation recognizes revenue
based on the stage of completion of performance obligations. Since the recognition of project contract revenue
is calculated manually and involves material accounting estimates and judgments, there may be a calculation
error; therefore, it was deemed to be a key audit matter.
Refer to Notes 4, 5 and 23 for accounting policy on project contract, accounting estimates and assumptions, anddetails of project revenue.

-1-

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.
Responsibilities of Management and Those Charged with Governance for the Parent Company Only
Financial Statements
Management is responsible for the preparation and fair presentation of the parent company only financial
statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities
Issuers, and for such internal control as management determines is necessary to enable the preparation of parent
company only financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the parent company only financial statements, management is responsible for assessing the
Corporation’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 Corporationor 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 Corporation’s
financial reporting process.
Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements
Our objectives are to obtain reasonable assurance about whether the parent company only financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ reportthat 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 parent company only financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the parent company only financial statements,
whether due to fraud or error, design and perform audit procedures responsive to 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 Corporation’s internal control.
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 Corporation’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 parent company only 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.
-2-However, future events or conditions may cause the Corporation to cease to continue as a going concern.
5. Evaluate the overall presentation, structure and content of the parent company only financial statements,
including the disclosures, and whether the parent company only financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
6. Obtain sufficient and appropriate audit evidence regarding the financial information of entities or businessactivities within the Corporation to express an opinion on the parent company only financial statements. We
are responsible for the direction, supervision, and performance of the 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 parent company only 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 parent company only financial statements are intended only to present the parent company
only financial position, financial performance and cash flows in accordance with accounting principles andpractices generally accepted in the Republic of China and not those of any other jurisdictions. The standards,
procedures and practices to audit such parent company only financial statements are those generally applied in
the Republic of China.
For the convenience of readers, the independent auditors’ report and the accompanying parent company only
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 andparent company only financial statements shall prevail.
-3-

Brogent Technologies Inc.
PARENT COMPANY ONLY BALANCE SHEETSDECEMBER 31, 2023 AND 2022
(In Thousands of New Taiwan Dollars)

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 30)
Accounts receivable, net (Notes 4, 5 and 10)
Accounts receivable - related parties (Notes 4, 10 and 29)
Contract assets - current (Notes 4, 5 and 23)
Other receivables (Note 4)
Other receivables - related parties (Note 29)
Current tax assets (Notes 4 and 25)
Inventories (Notes 4 and 11)
Prepayments
Refundable deposits - current
Other current assets

December 31, 2023
Amount%December 31, 2022
Amount%$$443,698
86,702130,000
110,307214,234
113,004
956,399
10,951
82,181
857
307,592
57,257
10,451

10
2
3
2
5
2
21
2
7
1
-

52

2,523,633

55

20,403995,205
725,253
238,20376,768105,374
7,820
108,175

1
21
15
5
2
2
2

15,000943,254753,565
147,894
79,23576,46012,90437,437

21
16
3
2
2
1

2,277,201

48

2,065,749

45$ 4,789,368

100$ 4,589,382

100

Total current assets
NON-CURRENT ASSETS
Financial assets at amortized cost - non-current (Notes 4, 9 and 30)
Investments accounted for using the equity method (Notes 4 and 12)
Property, plant and equipment (Notes 4, 13 , 29 and 30)
Right-of-use assets (Notes 4 and 14)
Intangible assets (Notes 4 and 15)
Deferred tax assets (Notes 4 and 25)
Refundable deposits
Other non-current assets
Total non-current assets
TOTAL

621,18132
64,300145,601
157,265
245,160
940,357
1,407
8,026
1,516
245,558
64,0105,567
12,187

13
2
3
3
5
20
5
1
-

2,512,167

LIABILITIES AND EQUITYCURRENT LIABILITIESShort-term borrowings (Note 16)
Notes payable (Note 18)
Accounts payable (Note 18)
Accounts payable - related parties (Note 29)
Contract liabilities (Note 23)
Other payables (Notes 19 and 29)
Provisions - current (Note 4)
Lease liabilities - current (Notes 4 and 14)
Current portion of long-term borrowings (Note 16)
Current portion of bonds payable (Notes 4 and 17)
Other current liabilities$

Total current liabilities
NON-CURRENT LIABILITIESBonds payable (Notes 4 and 17)
Long-term borrowings (Note 16)
Deferred tax liabilities (Notes 4 and 25)
Lease liabilities - non-current (Notes 4 and 14)
Total non-current liabilities
Total liabilities
EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Note 22)
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
TOTAL

The accompanying notes are an integral part of the parent company only financial statements.

-4-430,000
487
54,064921
145,626
80,852
4,964
27,071
15,203
163,102
2,249

9
1
3
2
1
3
-

924,539$

230,000
11,772
100,41279,32376,2538,620
25,68515,043
219,204
2,263

5
2
2
2
1
5
-

19

768,575

17

79,014414,367
222,2742
9
4

261,577
229,438632
135,0405
5
3

715,65515

626,68713

1,640,194

34

1,395,262

30

647,786571
648,357
2,672,817

14
14
56

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

14
14
58

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

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

3
(5)
(2)
-

3,149,174

66

3,194,120

70$ 4,789,368

100$ 4,589,382

100

Brogent Technologies Inc.
PARENT COMPANY ONLY 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%847,582100

763,368100

OPERATING COSTS (Notes 11, 24 and 29)

501,08859402,18553

GROSS PROFIT

346,49441

361,18347

OPERATING EXPENSES (Notes 10, 23, 24 and 29)
Selling and marketing expenses
General and administrative expenses
Research and development expenses
Expected credit loss

88,571
262,968
106,891
77,047103113
976,131
252,932
189,444
11,1361033
25
1535,47763

529,64369

OPERATING LOSS

(188,983)(22)(168,460)(22)

NON-OPERATING INCOME AND EXPENSES(Notes 24 and 29)
Interest income
Other income
Other gains and losses
Finance costs
Share of profit or loss of subsidiaries accounted forusing the equity method

12,341
5,629
7,053(21,595)

2
1
1
(3)

7,462
18,176
154,694(17,648)

1
2
20
(2)

(22,587)(3)(68,096)(9)

Total non-operating income and expenses(19,159)(2)

94,58812(208,142)(24)(73,872)(10)

28,3783

13,146

2(179,764)(21)(60,726)(8)(3,598)(1)

30,000

4

(938)

-

NET OPERATING REVENUE (Notes 4, 5, 23 and 29)

Total operating expenses

LOSS BEFORE INCOME TAX
INCOME TAX BENEFIT (Notes 4 and 25)
NET LOSS FOR THE YEAROTHER COMPREHENSIVE INCOME (Notes 20 and
22)
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
Share of other comprehensive income ofsubsidiaries accounted for using the equity
method-5-$$(Continued)

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

Items that may be reclassified subsequently to profit
or loss:
Share of other comprehensive income (loss) of
subsidiaries accounted for using the equity
method2023
Amount%(12,362)(1)(16,898)(2)(196,662)(23)$

Other comprehensive loss for the year, net ofincome tax
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
LOSS PER SHARE (Note 26)
Basic
Diluted$$$(2.79)(2.79)

2022
Amount%30,915

4

60,915

8

189

-

$

$
$
$

The accompanying notes are an integral part of the parent company only financial statements.

-6-(0.99)(0.99)(Concluded)

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

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

573,641-

Advance
Receipts for
Ordinary Share$

Capital Surplus

36,003-$ 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)
30,91530,000$Total

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

Total comprehensive loss in 2022
Convertible bonds converted to ordinary shares (Note 17)
Changes in percentage of ownership interest in subsidiaries
Changes in equity of associates accounted for using theequity method

40,790-(25,260)-

146,205---(60,726)(554)

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

189
161,735
(554)

-

-

750

-

-

-

-

-

-

750

BALANCE AT DECEMBER 31, 2022
Offset the deficit of 2022 (Note 23)
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---(127,421)-(14,857)

127,421
14,857

-

-

-

-

-

-

-

(127,421)(14,857)

142,278

-

-

-

-

Other changes in capital surplus (Note 23)
Capital surplus used to offset accumulated deficits
Cash dividends from capital surplus--(100,727)(93,776)--

100,727----(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)

-

-

-

-

-

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

33,355-(10,172)-

219,131---

12,102-

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

242,3143,178

571$ 2,672,817-$ (167,662)(4,338)$ 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 17)
Disposal of subsidiaries
BALANCE AT DECEMBER 31, 2023$

647,786$$-

The accompanying notes are an integral part of the parent company only financial statements.

-7-

$

$

(17,700)$

13,362$

Brogent Technologies Inc.
PARENT COMPANY ONLY 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 loss (gain) on fair value changes of financial assets andliabilities at fair value through profit or loss
Finance cost
Interest income
Dividend income
Share of profit or loss of subsidiaries accounted for using theequity method
Net gain on disposal of property, plant and equipment
Net loss (gain) on foreign currency exchange
Loss on inventories
Changes in operating assets and liabilities
Financial assets mandatorily classified as at fair value throughprofit or loss
Accounts receivable
Accounts receivable - related parties
Contract assets
Other receivables
Other receivables - related parties
Inventories
Prepayments
Other current assets
Notes payable
Accounts payable
Accounts payable - related parties
Contract liabilities
Other payables
Provisions
Other current liabilities
Cash generated (used in) 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
incomeProceeds from disposal of financial assets at fair value through othercomprehensive income

-8-

$

2022

(208,142)$(73,872)

119,586
16,916
77,047

115,627
14,938
11,136(6,437)
21,595(12,341)(4,000)2,029
17,648(7,462)-

22,587
4,082
4,244

68,096(83,606)(6,506)
1,039

92,812(1,608)(132,156)(2,423)
10,234
12,573
57,790(6,753)(1,736)(11,285)(46,348)921
66,30358(3,656)(14)
69,849(1,827)73,553(23,924)(37,512)(142,533)(7,603)(3,484)(94,206)
12,068(4,870)10,38445,334
3,758
591
4,403
76
(104,898)(2,809)68,022(107,707)-(100,000)

61,465(Continued)

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

2023
Purchase of financial assets at amortized cost
Proceeds from disposal of financial assets at amortized cost
Acquisition of investments accounted for using the 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 other receivables from related parties
Increase in other non-current assets
Interest received
Dividends received$

Net cash generated from (used in) investing activities(133,396)
91,673(20,000)(61,353)(14,449)(483)
58,344(70,738)
12,465
4,000

2022
$

(207,283)
169,233(65,657)
263,402(11,493)(4,866)(32,671)
7,327-(72,472)

17,992

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
Cash dividends from capital surplus
Acquisition of additional interests in subsidiaries
Interests paid

200,000
300,000(114,911)(27,270)(93,776)(64,660)(17,450)

100,000
200,000(114,853)(20,899)(64,198)(8,379)Net cash generated from financing activities

181,933

91,671NET INCREASE IN CASH AND CASH EQUIVALENTS

177,483

1,956

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
YEAR

443,698

441,742

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR$

621,181

The accompanying notes are an integral part of the parent company only financial statements.

-9-$443,698(Concluded)

Brogent Technologies Inc.
NOTES TO PARENT COMPANY ONLY 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 parent company only financial statements are presented in the Corporation’s functional currency, the
New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS
The parent company only 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 accounting policies of the Corporation.
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.

- 10 -

As of the date the parent company only financial statements were approved, the Corporation assessedthat the application of the above standards and interpretations will not have a material impact on the
Corporation’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 parent company only financial statements were approved, the Corporation iscontinuously assessing the possible impact of the application of the above standards and interpretations
on the Corporation’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 parent company only financial statements have been prepared in accordance with the Regulations
Governing the Preparation of Financial Reports by Securities Issuers.
b. Basis of preparation
The parent company only 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.
When preparing the parent company only financial statements, the Corporation used the equity method
to account for its investments in subsidiaries. In order for the amounts of the net profit for the year,
other comprehensive income for the year and total equity in the parent company only financial
statements to be the same as the amounts attributable to the owners of the Corporation in its
consolidated financial statements, adjustments arising from the differences in accounting treatments
between the parent company only basis and the consolidated basis were made to investments accounted
for using the equity method, the share of profit or loss of subsidiaries, the share of other comprehensive- 11 -

income of subsidiaries and the related equity items, as appropriate, in these parent company only
financial statements.
c. Classification of current and non-current assets and liabilities
Current assets include:
1) Assets held primarily for the purpose of trading;2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the 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 Corporation does not have an unconditional right to defer settlement for atleast 12 months after the reporting period.
Assets and liabilities that are not classified as current are classified as non-current.
The Corporation 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 Corporation’s projectcontracts-related assets and liabilities.
d. Foreign currencies
In preparing the parent company only financial statements, transactions in currencies other than the
Corporation’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.
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 parent company only financial statements, the functional currencies ofthe entities in the Corporation (including subsidiaries 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 prevailing at the endof the reporting period; and income and expense items are translated at the average exchange rates forthe period. The resulting currency translation differences are recognized in other comprehensive
income.
On the disposal of the Corporation’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- 12 -

Corporation are reclassified to profit or loss.
e. 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.
f. Investments in subsidiaries
The Corporation uses the equity method to account for its investments in subsidiaries.
A subsidiary is an entity that is controlled by the Corporation.
Under the equity method, an investment in subsidiaries is initially recognized at cost and adjusted
thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income ofthe subsidiaries. The Corporation also recognizes the changes in the Corporation’s share of the equity ofsubsidiaries.
Changes in the Corporation’s ownership interest in a subsidiary that do not result in the Corporation
losing control of the subsidiary are equity transactions. The Corporation recognizes directly in equity
any difference between the carrying amount of the investment and the fair value of the consideration
paid or received.
The Corporation assesses its investment for any impairment by comparing the carrying amount with theestimated recoverable amount as assessed based on cash generating units in financial statements. If therecoverable amount of the investment subsequently increases, the Corporation recognizes a reversal of
the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount.
An impairment loss recognized on goodwill cannot be reversed in a subsequent period.
When the Corporation loses control of a subsidiary, a gain or loss is recognized in profit or loss and is
calculated as the difference between: (a) the aggregate of the fair value of consideration received andthe fair value of any remaining investment in the former subsidiary at the date control is lost; and (b) the
previous carrying amount of the assets, and liabilities of the subsidiary and any non-controlling interest.
The Corporation shall account for all amounts recognized in other comprehensive income in relation to
the subsidiary on the same basis as would be required if the Corporation had directly disposed of therelated assets and liabilities.
Profit or loss resulting from downstream transactions is eliminated in full only in the parent company
only financial statements. Profit and loss resulting from upstream transactions and transactions between
subsidiaries are recognized in the parent company only financial statements only to the extent thatinterests in the subsidiaries that are not related to the Corporation.
g. Investments in associates
An associate is an entity over which the Corporation has significant influence and which is neither asubsidiary nor an interest in a joint venture.
The Corporation 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 Corporation’s share of the profit or loss and other comprehensive income of
the associate. The Corporation also recognizes the changes in the Corporation’s share of the equity of
associates.

- 13 -

When the Corporation 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 theamount of the Corporation’s proportionate interest in the associate. The Corporation records such a
difference as an adjustment to investments with the corresponding amount charged or credited to capitalsurplus and investments accounted for using the equity method. If the Corporation’s ownership interestis reduced due to its additional subscription of the new shares of the associate, the proportionate amountof the gains or losses previously recognized in other comprehensive income in relation to that associate
is reclassified to profit or loss on the same basis as would be required had the investee directly disposedof the related assets or liabilities. When the adjustment should be debited to capital surplus, but thecapital surplus recognized from investments accounted for using the equity method is insufficient, theshortage is debited to retained earnings.
When the Corporation’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 andlong-term interests that, in substance, form part of the Corporation’s net investment in the associate),
the Corporation discontinues recognizing its share of further loss. Additional losses and liabilities arerecognized only to the extent that the Corporation has incurred legal obligations, or constructive
obligations, or made payments 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.
When the Corporation transacts with its associate, profits and losses resulting from the transactions withthe associate are recognized in the Corporation’s parent company only financial statements only to theextent that interests in the associate are not related to the Corporation.
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.

- 14 -

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 Corporation reviews the carrying amounts of its property, plantand equipment, right-of-use assets and intangible assets, to determine whether there is any indicationthat those assets have suffered an impairment loss. If any such indication exists, the recoverable amountof the asset is estimated in order to determine the extent of the impairment loss. When it is not possible
to estimate the recoverable amount of an individual asset, the Corporation estimates the recoverable
amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to theindividual cash-generating units or the smallest group of cash-generating units on a reasonable andconsistent basis of 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 Corporation 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 is- 15 -

determined in the manner described in Note 28.
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; andii) 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 Corporation may make an irrevocable election to designate
investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not
permitted if the equity investment is held for trading or if it is contingent consideration
recognized by an acquirer in a business combination.
Investments in equity instruments at FVTOCI are subsequently measured at fair value 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 Corporation’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 Corporation recognizes a loss allowance for expected credit losses on financial assets at
amortized cost and contract assets.
The Corporation always recognizes lifetime expected credit losses (ECLs) for accounts
receivable and contract assets. For all other financial instruments, the Corporation recognizes
lifetime ECLs when there has been a significant increase in credit risk since initial recognition.
If, on the other hand, the credit risk on a financial instrument has not increased significantly
since initial recognition, the Corporation 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- 16 -

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 Corporation 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 Corporation).
The Corporation recognizes an impairment gain or loss in profit or loss for all financial
instruments with a corresponding adjustment to their carrying amount through a loss allowanceaccount.
c) Derecognition of financial assets
The Corporation derecognizes a financial asset only when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all the risks
and rewards of ownership of the asset to another party.
On derecognition of a financial asset at amortized cost in its entirety, the difference between 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 Corporation are recognized at the proceeds received, net of direct
issue costs.
3) Financial liabilitiesa) Subsequent measurement
Financial liabilities held by the Corporation 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 Corporation
are classified 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.

- 17 -

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.
l. Provisions
Provisions, including warranty obligations, are measured at the best estimate of the discounted cash
flows of the consideration required to settle the present obligation at the end of the reporting period,
taking into account the risks and uncertainties surrounding the obligation.
m. Revenue recognition
The Corporation 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 Corporation recognizes revenue upon the completion percentage of each performanceobligation. The output and degree of completion of performance obligation is measured based on
working days of each performance item. Contract assets recognized during the performanceobligations 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 Corporation recognizes
contract liabilities for the difference. Certain payments, which are retained by the customer as
specified in the contract, are intended to ensure that the Corporation adequately completes all of its
contractual obligations. Such retention receivables are recognized as contract assets until the
Corporation satisfies its performance obligation.
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
Revenue comes from sales of tickets for simulator rides at operated outlets. Sales of tickets arerecognized at the point when services are performed.
4) Service revenue
Service revenue comes from maintenance service to simulator rides and is recognized when theservice is rendered.

- 18 -

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 Corporation assesses whether the contract is, or contains, a lease.
1) The Corporation 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.
Lease payments from operating leases are recognized as income on a straight-line basis over theterms of the relevant leases.
2) The Corporation as lessee
The Corporation recognizes right-of-use assets and lease liabilities for all leases at thecommencement date of a lease, except for short-term leases and low-value asset leases accounted
for applying a recognition exemption where lease payments are recognized as expenses on astraight-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 parent company only 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 Corporation 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 Corporation remeasures the lease liabilities with a corresponding adjustment to
the right-of-use assets. However, if the carrying amount of the right-of-use assets is reduced to zero,
any remaining amount of the remeasurement is recognized in profit or loss. For a lease modificationthat is not accounted for as a separate lease, the Corporation accounts for the remeasurement of thelease liability 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
all other lease modifications. Lease liabilities are presented on a separate line in the parent company
only balance sheets.
o. Government grants
Government grants are not recognized until there is reasonable assurance that the Corporation willcomply 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 Corporation with no future related costs are- 19 -

recognized 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. 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, except where the Corporation is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with such investments
and interests are 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 toreverse 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- 20 -

measurement of deferred tax liabilities and assets reflects the tax consequences that would follow
from the manner in which the Corporation expects, at the end of the reporting period, to recover orsettle 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 Corporation’s accounting policies, management is required to make judgments,
estimates and assumptions on the carrying amounts of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and otherfactors that are considered relevant. Actual results may differ from these estimates.
When developing material accounting estimates, the Corporation considers the possible impact of theinflation and 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 Corporation uses judgment in making theseassumptions and in selecting the inputs to the impairment calculation, based on the Corporation’s
historical experience, existing market conditions as well as forward looking estimates as of the end ofeach 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.

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- 21 -$

979
347,691

2022
$

913
132,180

272,511

310,605$ 621,181$ 443,698

7. FINANCIAL INSTRUMENTS AT FVTPL - CURRENT
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

$

$

32

$

429

-

86,27332$ 86,702

8. FINANCIAL ASSETS AT FVTOCI - CURRENT
December 31
2023

2022

Current
Domestic investments in equity instruments
Listed shares$

64,300$ 130,000

The Corporation acquired the ordinary shares of Ruentex Industries Limited for $100,000 thousand in
September 2022. Accordingly, the Corporation elected to designate the investments in equity instruments asfinancial 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

Current
Non-current$

46,532
105,338
14,1342022$

13,607
109,696
2,004$ 166,004$ 125,307$ 145,601
20,403$ 110,307
15,000$ 166,004$ 125,307

a. The counterparties of the time deposit of the Corporation were banks with sound credit ratings and no
significant default concerns, and therefore, there was no expected credit losses.
b. Refer to Note 30 for information on financial assets at amortized cost pledged as collateral.

- 22 -

10. ACCOUNTS RECEIVABLE
December 31
Accounts receivable- third parties
At amortized cost
Gross carrying amount
Allowance for impairment loss

Accounts receivable - related parties
At amortized cost
Gross carrying amount

2023

2022

$ 264,350(107,085)$ 262,742(48,508)$ 157,265$ 214,234$ 245,160$ 113,004

The main credit period is 90 days, unless agreed upon in a specific contract. In order to minimize credit
risk, the management of the Corporation 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 Corporation reviews the recoverable amount of each individual trade debt at
the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable
amounts. In this regard, the management believes the Corporation’s credit risk was significantly reduced.
The Corporation 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 experienceof the customer and the customer’s current financial position, as well as the industry outlook. The
Corporation determined that the accounts receivable from related parties would be recovered, so no loss
allowance was made. As the Corporation’s historical credit loss experience does not show significantly
different loss patterns for different customer segments of third parties, the provision for loss allowancebased on past due status is not further distinguished according to the Corporation’s different customer base.
The Corporation writes off accounts receivable when there is information indicating that the debtor is insevere financial difficulty and there is no realistic prospect of recovery. For accounts receivable that havebeen written off, the Corporation continues to engage in enforcement activity to attempt to recover thereceivables 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

Expected credit loss rate (%)

Up to 3Months

4-6 Months

0-0.3

0-1

7-12 Months Over 1 Year
0-3

With Signs
of Default

0-40

Total

100

Gross carrying amount
Loss allowance (lifetime ECLs)$

131,617
(396)

$

2,299
(24)

$

239,427(95)$

40,061(10,464)$

96,106(96,106)$

509,510(107,085)

Amortized cost$131,221

$

2,275

$

239,332$

29,597$-$

402,425- 23 -

December 31, 2022

Expected credit loss rate (%)

Up to 3Months

4-6 Months--

With Signs
of Default

7-12 Months Over 1 Year
0.1-5

10

Total

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

129,076-$

12,080-$30,548(30)$

108,820(3,945)$

95,222(44,533)$

375,746(48,508)

Amortized cost$

129,076$

12,080$30,518$104,875$

50,689$327,238

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$

48,50858,577$47,592
916

Balance at December 31$ 107,085$

48,508

11. INVENTORIES
December 31
Project materials

2023

2022

$ 245,558$ 307,592

The operating costs recognized as losses on inventories for the years ended December 31, 2023 and 2022
were $4,244 thousand and $1,039 thousand, respectively.

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
December 31
Investment in subsidiaries
Investment in associates

2023

2022

$ 983,267
11,938$ 943,254-$ 995,205$ 943,254

Refer to Note 5 for investments accounted for using the equity method Information.
a. Investment in subsidiaries
December 31
2023

Unlisted Company
Dili Jie Holdings Limited (Dili Jie)

2022

Carrying
AmountPercentage
ofOwnership

Carrying
Amount$ 432,973

100$ 410,375- 24 -

Percentage
ofOwnership
100(Continued)

December 31
2023

2022

Unlisted Company

Carrying
AmountPercentage
ofOwnership

Carrying
AmountPercentage
ofOwnership

Brogent Hong Kong Limited (Brogent
HK)
Brogent Global Inc. (Brogent Global)$ 262,210
288,084

100
100$ 242,957
289,922100
100$ 983,267$ 943,254(Concluded)

1) The Corporation subscribed for the cash capital increase of Dili Jie for $28,638 thousand (US$972
thousand) in 2022.
2) The Corporation subscribed for the cash capital increase of Brogent HK for the years ended
December 31, 2023 and 2022, and the amounts were $64,660 thousand (US$2,000 thousand) and$35,560 thousand (US$850 thousand and JPY52,000 thousand), respectively.
b. Investments in associates
December 31
2023
Associates that are not individually material2022$ 11,938$-

Aggregate information of associates that are not individually material:
For the Year Ended December 31
2023
2022
The Corporation’s share of:
Net losses and total comprehensive loss for the year

$ (8,062)$-

In May 2023, the Corporation invested $20,000 thousand in cash to establish Scroll Application
Technology Co., Ltd. and acquired 48.78% equity interest.

13 PROPERTY, PLANT AND EQUIPMENT
December 31
Assets used by the Corporation
Assets leased under operation- 25 -

2023

2022$ 594,060
131,193$ 689,333
64,232$ 725,253$ 753,565

For the year ended December 31, 2023
Assets Leased
underOperation

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

Land

Other
Equipme nt

Total

Cost
Balance at January 1
Additions
Reclassification
Disposals$-$

642,629-$

338,552
14,987(27,557)$

48,34849,796(80,654)-$ 1,029,529
64,783(80,654)(27,557)$

106,625910
80,654-

Balance at December 31

$

-

$

642,629$

325,982$

17,490$986,101$

188,189

Balance at January 1
Depreciation expense
Disposals$-$

195,839
26,283-$

144,357
53,119(27,557)$-$

340,196
79,402(27,557)$

42,393
14,603-

Balance at December 31

$

-

$

222,122$

169,919$-$392,041$

56,996

Carrying amount at December 31

$

-

$

420,507$

156,063$

17,490$594,060$

131,193

Accumulated depreciation

For the year ended December 31, 2022
Assets Leased
underOperation

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

Land

Other
Equipme nt

Total

Cost
Balance at January 1
Additions
Disposals$

139,868(139,868)$

673,973
8,265(39,609)$

195,489
143,063-$

134,579(86,231)-$ 1,143,909
65,097(179,477)$

106,465
160-

Balance at December 31

$

-

$

642,629$

338,552$

48,348$ 1,029,529$

106,625

Balance at January 1
Depreciation expense
Disposals$-$

177,119
27,750(9,030)$88,17956,178-$-$265,298
83,928(9,030)$31,592
10,801-

Balance at December 31

$

-

$

195,839$

144,357$-$

340,196$

42,393Carrying amount at December 31

$

-

$

446,790$

194,195$

48,348$689,333$

64,232

Accumulated depreciation

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

Buildings
Main buildings
OthersOther equipment- 26 -

Assets Used by
the Corporation

Assets Leased
underOperation

50 years
3-20 years
2-15 years

5-10 years

b. To revitalize assets and effectively utilize capital, the Corporation 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 Corporation recognized gains on disposal of property of $83,606 thousand
and recognized right-of-use assets of $16,647 thousand and lease liabilities of $25,996 thousand.
c. The Corporation rents the simulator rides under operating lease. All operating leases include the rights
to adjust the rental according to the market rate when the lessee extends the lease terms, and the lessee
does not have bargain purchase options to acquire the asset at the end of the lease terms.
d. Refer to Note 30 for the carrying amount of property, plant and equipment pledged as collateral forborrowings.
e. The reconciliation of the additions and the payments stated in the statements of cash flows was asfollows:
For the Year Ended December 31
2023
2022
Additions to property, plant and equipment
Decrease (increase) in payables for equipment$ 65,693(4,340)$ 65,257
400

Cash paid$ 61,353$ 65,657

14. LEASE ARRANGEMENTS
a. Right-of-use assets
For the year ended December 31, 2023
Land

Buildings

Transportation
Equipment

Total

Cost
Balance at January 1
Additions
Derecognized$

140,523
113,423-$

52,796-$

19,284
2,467(12,202)$212,603
115,890(12,202)

Balance at December 31$

253,946$

52,796

$

9,549

$

316,291

Balance at January 1
Depreciation expense
Derecognized$

42,401
12,183
-

$

8,615
8,727
-

$

13,693
4,671(12,202)$64,70925,581(12,202)

Balance at December 31$

54,584$

17,342

$

6,162

$

78,088Carrying amount at December 31$

199,362$

35,454

$

3,387

$

238,203

Accumulated depreciation- 27 -

For the year ended December 31, 2022
Land

Buildings

Transportation
Equipment

Total

Cost
Balance at January 1
Additions
Derecognized$

140,523-$

33,927
18,869-$15,147
6,071(1,934)$

189,597
24,940(1,934)

Balance at December 31$

140,523$

52,796$

19,284$

212,603

Balance at January 1
Depreciation expense
Derecognized$

31,794
10,607
-

$

3,362
5,253
-

$

10,5895,038(1,934)$45,74520,898(1,934)

Balance at December 31$

42,401

$

8,615

$

13,693$64,709Carrying amount at December 31$

98,122$

44,181

$

5,591

$

147,894

Accumulated depreciationb. Lease liabilities
December 31
2023

2022

Carrying amountCurrent
Non-current$ 27,071$ 222,274$ 25,685$ 135,040

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

1.71-2.17
1.71-1.85
1.71-2.17

1.71
1.71-1.85
1.71

c. Material lease activities and terms
The Corporation leases land and buildings for the use as business spaces and for the use of offices andplants with lease terms that will expire between March 2032 and July 2053. The lease contract for land
specifies that lease payments will be adjusted on the basis of changes in the announced land value andprice. The Corporation does not have bargain purchase options to acquire the leasehold land andbuildings at the end of the lease terms.
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
Total cash outflow for leases$ 2,227$369$ 33,488

$
552
$
367
$ 24,395

The Corporation 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.

- 28 -

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

Other

Total

Cost
Balance at January 1
AdditionsWrite-off and disposals$

71,862
3,202-$

47,521
11,247(6,206)$ 119,383
14,449(6,206)

Balance at December 31$

75,064$52,562$ 127,626

Balance at January 1
Amortization expense
Write-off and disposals$

15,993
8,855-$

24,155
8,061(6,206)$40,14816,916(6,206)

Balance at December 31$

24,848$26,010$50,858Carrying amount at December 31$

50,216$

26,552$

76,768

Accumulated amortization

For the year ended December 31, 2022
Film

Other

Total

Cost
Balance at January 1
Additions$

68,761
3,101$

37,6839,838$ 106,444
12,939Balance at December 31$

71,862$47,521$ 119,383

Balance at January 1
Amortization expense

$

7,521
8,472

$

17,6896,466$

25,21014,938

Balance at December 31$

15,993$24,155$40,148Carrying amount at December 31$

55,869$23,366$

79,235

Accumulated amortization

The above intangible assets are amortized on a straight-line basis over the following useful lives:
Film
Others3-10 years
1-25 years- 29 -

16. BORROWINGSa. Short-term borrowings
December 31
2023

2022

Unsecured bank loans$ 430,000$ 230,000

Interest rate (%)

1.90-1.95

1.50-1.61

b. Long-term borrowings
December 31
2023

2022

Bank loans - repayable before October 2031
Current portion$ 429,570(15,203)$ 244,481(15,043)

Long-term borrowings$ 414,367$ 229,438

Interest rate (%)

2.10-2.17

1.85-1.92

Secured borrowings (Note 30)

17. BONDS PAYABLE
December 31
3rd domestic unsecured convertible bonds (a)4th domestic unsecured convertible bonds (b)

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.

- 30 -

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.
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- 31 -

18. NOTES PAYABLE AND ACCOUNTS PAYABLEThe Corporation’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 Corporation 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.

19. OTHER PAYABLES
December 31
Payables for salaries
Payables for equipment
Payables for travel expense
Payables for service fee
Payables for insurance
Others2023

2022$ 34,573
5,751
2,223
3,870
3,591
30,844$ 33,487
1,411
3,011
3,168
3,518
31,658$ 80,852$ 76,253

20. RETIREMENT BENEFIT PLANS
The Corporation adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed
defined contribution plan. Under the LPA, the Corporation makes monthly contributions to employees’
individual pension accounts at 6% of monthly salaries and wages.

21. MATURITY ANALYSIS OF ASSETS AND LIABILITIESThe current/non-current classification of the Corporation’s assets and liabilities relating to the projectcontract 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 (including relatedparties)
Contract assets - current

Liabilities
Contract liabilities - current$

48,544$

97,057$

145,601

167,343
106,194

235,082
834,163

402,425
940,357$

322,081$ 1,166,302$ 1,488,383$

58,495$$87,131

145,626(Continued)- 32 -

Within 12
MonthsMore Than
12 Months

Total

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

Liabilities
Contract liabilities - current$

37,656460,064$

72,651
496,335$

110,307956,399$

497,720$

568,986$ 1,066,706$

27,066$52,257$

79,323(Concluded)

22. 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

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 above transactions with subscription base dates determined to be January 23, 2024 and January 13,
2023, respectively, were registered before the date of approval of the parent company only financial
statements.
b. Capital surplus
December 31
2023

2022

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

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- 33 --

750(Continued)

December 31
2023

2022

May not be used for any purpose
Equity component of convertible bonds payable

$

9,574

$ 2,672,817
Note:

$

20,542$ 2,648,189(Concluded)

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 thetotal 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 the- 34 -

amount 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
Share from subsidiaries accounted for using the equity
methodReclassification adjustment
Disposal of foreign operations$ (8,516)$ (39,431)(12,362)

30,915

3,178-

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

2) Unrealized gain 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
Share from subsidiaries accounted for using the equity
methodReclassification adjustment
Cumulative unrealized gain of equity instruments
transferred to retained earnings due to disposal$ 30,000

Balance at December 31$-(3,598)30,000(938)-(12,102)-$ 13,362$ 30,000

23. REVENUE
For the Year Ended December 31
2023
2022
Project contract revenue
Licensing revenue
Sales of tickets
Service revenue
Rental revenue$ 719,832
6,936
21,32675,75423,734$ 672,630
5,874
12,95145,41926,494$ 847,582$ 763,368

December 31,
2023

December 31,
2022

January 1,
2022$ 402,425$ 327,238$ 266,718(Continued)

Contract balances

Accounts receivable (including related parties)- 35 -

December 31,
2023

December 31,
2022

January 1,
2022$ 958,401
91,206(109,250)$ 965,673
81,511(90,785)$ 804,063
100,588(81,365)$ 940,357$ 956,399$ 823,286$ 111,710
33,916$52,351
26,972$56,17819,387$ 145,626$

79,323$75,565(Concluded)

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

Contract liabilities
Project contract
Others

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

90,785
18,465$81,365
9,420

Balance at December 31$ 109,250$

90,78524. LOSS BEFORE INCOME TAX
a. Interest income
For the Year Ended December 31
2023
2022
Bank deposits
Others (Note 29)$ 10,324
2,017

$

5,965
1,497

$ 12,341$

7,462

b. Other income
For the Year Ended December 31
2023
2022
Dividends
Government grants
Others- 36 -

$

4,000
390
1,239

$

15,965
2,211

$

5,629

$ 18,176

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 (Note13)

$

6,437
616
-

$

(2,029)73,117
83,606$

7,053$ 154,694

d. Finance costs
For the Year Ended December 31
2023
2022
Interest on bank loans
Interest on lease liabilities
Interest on convertible bonds$ 14,029
3,622
3,944

$

6,714
2,577
8,357

$ 21,595$ 17,648

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

94,00525,581
16,916$

94,72920,89814,938$ 136,502$ 130,565$$

29,12590,461

23,78091,847$ 119,586$ 115,627

$

8,855
8,061

$

8,494
6,444

$

16,916$

14,938f. Employee benefits
For the Year Ended December 31
2023
2022
Short-term employee benefits
Post-employment benefits (Note 20)
Defined contribution plans$ 255,464$ 249,708

11,13910,764$ 266,603- 37 -$ 260,472(Continued)

For the Year Ended December 31
2023
2022
An analysis by function
Operating costs
Operating expenses$

70,186
196,417$ 266,603$

60,678
199,794$ 260,472(Concluded)

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
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 parent company only financial statements areauthorized 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.

25. 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

1,168
1,168

$

1,985
(2)
271
2,254

(29,546)(15,400)$ (28,378)$ (13,146)

A reconciliation of accounting loss and income tax benefit was as follows:
For the Year Ended December 31
2023
2022
Loss before income tax$ (208,142)$ (73,872)

Income tax benefit calculated at the statutory rate
Tax-exempt proceeds from land transactions$ (41,629)-$ (14,774)(15,704)(Continued)- 38 -

For the Year Ended December 31
2023
2022
Domestic investment income
Unrecognized net loss of foreign investments
Permanent differences
Adjustments for prior years’ tax
Land value incremental tax
Withholding tax$(75)
11,446712
1,168$ (28,378)$

12,145
1,156
1,777
(2)
271
1,985

$ (13,146)(Concluded)b. Current tax assets and liabilities
December 31
2023
Current tax assets
Tax refund receivable$ 1,516

2022
$

857

c. 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

Balance, End ofYear

Deferred tax assets
Temporary differences
Allowance for impairment loss
Difference on depreciation expense
Unrealized loss on foreign currency
exchange
Others$25,024
1,149

$

2,419
28,59247,868Loss carryforwards

15,142(29)$

40,166
1,120

4,353
118
19,584
9,330

4,353
2,537
48,17657,198$76,460$28,914$ 105,374

$

632

$

(632)

$

Deferred tax liabilities
Temporary differences- 39 --

For the year ended December 31, 2022
Balance,
Beginning ofYear

Recognized in
Profit or Loss

Balance, End ofYear

Deferred tax assets
Temporary differences
Allowance for impairment loss
Difference on depreciation expense
Unrealized loss on foreign currency
exchange
Others$22,920
1,178

$

6,734
2,462
33,294
27,134

Loss carryforwards

2,104
(29)

$

(6,734)(43)(4,702)
20,73425,024
1,149
2,419
28,59247,868$60,428$16,032$

76,460

$

-

$

632

$

632

Deferred tax liabilities
Temporary differencesd. The aggregate amount of deductible temporary differences for which deferred tax assets have not beenrecognized
December 31
2023
Foreign investment loss

$ 108,737

2022$

63,330e. 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$169,991 thousand, respectively.
f. Information about unused loss carryforwards
Loss carryforwards as of December 31, 2023 comprised:
Unused Amount$

137,966
101,306
46,717$285,989

Expiry Year
2031
2032
2033

g. Income tax assessments
The income tax returns of the Corporation through 2021 have been assessed by the tax authorities.

- 40 -

26. 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 for the year

$ (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

64,32861,13327. CAPITAL MANAGEMENT
The capital structure of the Corporation consists of net debt and equity. The Corporation manages its capitalto ensure that it will be able to continue as going concerns while maximizing the return to stakeholders
through the optimization of the debt and equity balance.
The Corporation is not subject to any externally imposed capital requirements.

28. FINANCIAL INSTRUMENTS
a. Fair value of financial instruments not measured at fair value
The Corporation’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.

- 41 -

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
Derivative instruments

$

-

$

-

$

32

$

32

$

64,300

$

-

$

-

$

64,300Financial assets at FVTOCI
Investments in equity
instruments
Domestic listed shares
December 31, 2022
Level 1

Level 2

Level 3

Total

Financial assets at FVTPL
Mutual funds
Derivative instruments$

86,273
-

$

-

$

429

$

86,273429$

86,273

$

-

$

429

$

86,702$ 130,000

$

-

$

-

Financial assets at FVTOCI
Investments in equity
instruments
Domestic listed shares$ 130,000

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 at FVTPL
For the Year Ended December 31
2023
2022
Balance at January 1
Convertible bonds converted into ordinary share
Recognized in loss

$

429
(295)
(102)

Balance at December 31$

32$ 1,983(159)(1,395)$4293) Valuation techniques and inputs applied for Level 3 fair value measurement
The fair values of redemption options and put options of convertible bonds were determined using
the binomial option pricing model where the significant and unobservable input was historicalvolatility.

- 42 -

c. Categories of financial instruments
December 31
2023

2022

$ 1,212,430
32
64,300$ 1,002,279
86,702130,000

1,238,010

1,143,699

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 (including related parties), other receivables (including related parities) and refundable
deposits, etc.
2) The balances comprise short-term borrowings, notes and accounts payable, other payables,
long-term borrowings (including current portion) and bonds payable (including current portion), etc.
d. Financial risk management objectives and policies
The Corporation’s corporate treasury function provides services to the business, monitors and manages
the financial risks relating to the operations of the Corporation through analyzing the degree of
exposures. The corporate treasury function reports regularly to the Corporation’s management. The
risks include market risk, credit risk and liquidity risk.
1) Market risk
The Corporation’s activities exposed it primarily to the financial risks as follows:a) Foreign currency risk
The carrying amounts of the Corporation’s foreign currency-denominated monetary assets andmonetary liabilities at the end of the reporting period are set out in Note 32.
Sensitivity analysis
The Corporation 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

$ 2,098
5,579- 43 -$ 3,2143,637b) Interest rate risk
The Corporation was exposed to interest rate risk because the Corporation borrowed funds atboth fixed and floating interest rates. The risk is managed by the Corporation by maintaining anappropriate mix of fixed and floating rate borrowings. The carrying amounts of the
Corporation’s financial assets and financial liabilities with exposure to interest rates at the endof the reporting period were as follows:
December 31
2023

2022

Fair value interest rate risk
Financial assets
Financial liabilities$ 424,380
841,461$ 495,309
841,506

Cash flow interest rate risk
Financial assets
Financial liabilities

361,773509,570

134,131274,481Sensitivity analysis
The sensitivity analysis below was determined based on the Corporation’s exposure to interest
rates for non-derivative instruments at the end of the reporting period. For floating rate assets
and liabilities, the analysis was prepared assuming the amount of each asset and liability
outstanding at 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, theCorporation’s pre-tax profit for the years ended December 31, 2023 and 2022 would havedecreased/increased by $1,478 thousand and $1,404 thousand, respectively, which was mainly
attributable to the Corporation’s variable-rate bank deposits and borrowings.
c) Other price risk
The Corporation was exposed to equity price risk through its investments in equity securities.
The Corporation 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 year ended December 31,
2022 would have increased/decreased by $863 thousand, as a result of the changes in the fairvalue of financial assets at FVTPL; other comprehensive income for the years ended December
31, 2023 and 2022 would have increased/decreased by $643 and $1,300 thousand, respectively,
as a result of the changes 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 Corporation. At the end of the reporting period, the Corporation’s
maximum exposure to credit risk could be equal to the carrying amount of the respective recognizedfinancial assets as stated in the parent company only balance sheets.
Refer to Note 10 for the financial risk management policies adopted by the Corporation.
- 44 -

The Corporation’s credit risk was mainly concentrated in the following groups accounted for 75%
and 57% of net accounts receivable (excluding from subsidiaries) as of December 31, 2023 and2022, respectively.
December 31
2023Group AGroup B
Group CGroup DGroup EGroup F
Group G$

2022

42,86329,78921,20818,418
4,763
359

$

$ 117,400

38,47988
21,98262,533$ 123,082

3) Liquidity risk
The Corporation manages liquidity risk by monitoring and maintaining a level of cash and cash
equivalents deemed adequate to finance the Corporation’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 Corporation’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 Corporation canbe required to pay. The table includes both interest and principal cash flows. Specifically, bankloans 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.
Within1 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
Financial guarantee contracts$

136,324
31,672
104,372
514,931
38,911$52,647
137,623
80,892-$

42,849
162,733-$

170,758
143,818-$

136,324
297,926
548,546595,823
38,911$

826,210$271,162$

205,582$

314,576$ 1,617,530$

188,437
28,26949,544
424,652
43,983$49,201
135,820
267,982-$

33,83435,180-$60,541
68,893-$$734,885$

453,003$

69,014$

129,434$ 1,386,336

December 31, 2022
Non-interest bearing liabilities
Lease liabilities
Variable interest rate liabilities
Fixed interest rate liabilities
Financial guarantee contracts- 45 -

188,437
171,845
289,437
692,634
43,983

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

Related Party Category

Brogent Global
StarLite Design & Planning Limited (StarLite)
Brogent HK
Brogent Rides (Shanghai) Limited (Brogent
Rides)
Brogent Creative (Shanghai) Limited (Brogent
Creative)
HaiWei Culture Creative and Development(Shanghai) Limited (HaiWei Creative)
Brogent Japan Entertainment
Chih-Hung Ouyang
Shen-Hao Cheng

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

Line Item

Related Party
Type/Name

Project contract revenue

Subsidiaries

Rental revenue

Subsidiaries
Brogent Global
Others
Associates

Service revenue

Licensing revenue

Subsidiaries
Associates

Subsidiaries
Associates

For the Year Ended December 31
2023
2022
$ 17,079$ 41,523$ 12,469
12,4696,946$ 10,025
1,906
11,931
14,182$ 19,415$ 26,113

$

191
1,841

$

494
155

$

2,032

$

649

$

121

$

11
-

$

121

$

11

The Corporation undertook the project contract from the related party, negotiated and determined theprice based on the estimated project costs plus reasonable management fees and profits, and collected
the payments according to the payment terms stipulated in the contract.

- 46 -

c. Purchase of goods, operating costs and operating expenses

Line Item
Operating costs

Operating expenses

Related Party
Type/Name
Subsidiaries
Brogent Global
Others
Associates

Subsidiaries
Brogent Global
StarLite
Key Managements

For the Year Ended December 31
2023
2022
$ 14,594
1,446
-

$

9,566
318

$ 16,040

$

9,884

$

1,491
4,851
816

$

3,641
7,056
476

$

7,158

$ 11,1731) The prices of purchases from related parties were made under arm’s length terms, and there were no
similar transactions with third parties for comparison; payment terms were similar to those of third
parties.
2) The Corporation entrusted its subsidiary, Brogent Global, to operate and manage the operating
premises and business, and provide film licensing and project services, etc. The related fees wererecognized under the operating costs and expenses.
3) For advertising and research development, the Corporation entrusted its subsidiary, StarLite, toprovide design services. The fees were recognized under the operating expenses.
4) Lease arrangements
In January 2022, the Corporation leased a building in the Xinxing District, Kaohsiung City, from
Shen-Hao Cheng, the key management of the Corporation, for the use of equipment display, underan operating lease agreement. The lease term is 1 year and may be renewed upon expiration bymutual consent. Rental expenses in 2023 and 2022 were $816 thousand and $476 thousand,respectively, recognized under the operating expenses.
d. Contract assets and contract liabilities

Line Item
Contract assets

Contract liabilities

Related Party
Type/Name
Subsidiaries
Brogent HK
Brogent Rides

Subsidiaries
Brogent HK
Brogent Rides- 47 -

December 31
2023

2022

$ 14,382-$ 12,571
232,599$ 14,382$ 245,170$ 10,201
20,402$ 10,201
20,402$ 30,603$ 30,603

e. Receivables from related parties
Related Party
Type/NameLine Item
Accounts receivable - related parties

Other receivables - related parties

Subsidiaries
Brogent Rides
Brogent Global

Subsidiaries
Brogent Global
HaiWei Creative

December 31
2023

2022

$ 241,677
3,483$ 111,197
1,807$ 245,160$ 113,004

$

7,940
86

$

20,599
-

$

8,026

$

20,599The outstanding receivables from related parties are unsecured and without the allowance for losses.
f. Payables to related parties
Related Party
Type/NameLine Item

December 31
2023

2022

Accounts payable

Subsidiaries

$

921

$

-

Other payables

Subsidiaries
Brogent Global
StarLite$ 4,247836$ 4,326-$ 5,083$ 4,326

The outstanding payables to related parties are unsecured.
g. Acquisition of property, plant and equipment
The Corporation acquired equipment from its subsidiary, Brogent Global, for $5,670 thousand in 2022.
h. Loans to related parties

Line Item
Other receivables - related parties

Line Item
Interest income

Related Party
Type/Name
Subsidiaries
Brogent HK
Related Party
Type/Name
Subsidiaries
Brogent HK- 48 -

December 31
2023
$

2022
-

$ 61,582

For the Year Ended December 31
2023
2022
$ 1,904$ 1,210

The Corporation provided unsecured loans to the related party with interest rates of 3.5% and 1%-3.5%
in 2023 and 2022, respectively.
i. The Corporation signed a labor service contract with its subsidiary, Brogent Global, and the service fees
were determined based on the actual costs agreed upon by both parties. The service revenues
recognized as a deduction from operating expenses in 2023 and 2022 were $704 thousand and $5,521
thousand, respectively.
j. The Corporation signed a project technical service contract with its subsidiary, HaiWei Creative, andthe service fees were determined based on the actual costs agreed upon by both parties. The service
revenue recognized as a deduction from operating expenses in 2023 was $86 thousand.
k. Endorsements and guarantees
December 31
Related Party Category
Subsidiaries
Amount endorsed
Amount utilized

2023

2022

$ 93,290$ 38,911$ 94,090$ 43,983

l. Chih-Hung Ouyang, the key management members of the Corporation, provided the guarantees forsome borrowings of the Corporation.
m. 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

30. 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$- 49 -

99,0692022$

96,70020,403391,681

15,000411,773$ 511,153$ 523,473

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS
As of December 31, 2023, the Corporation’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.

32. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIESThe Corporation’s significant financial assets and liabilities denominated in foreign currencies aggregatedby the foreign currencies other than functional currencies and the related exchange rates between foreign
currencies and respective functional currencies were as follows:
Foreign
Currency(In Thousands)

Exchange Rate ($)

NTD(In Thousands)

December 31, 2023
Financial assets
Monetary items
USD
RMB

$

6,932
128,885

30.71
4.33

(USD:NTD)(RMB:NTD)$ 212,876
557,945

101

30.71

(USD:NTD)

3,099

Financial assets
Monetary items
USD
RMB

10,51582,48430.70
4.41(USD:NTD)(RMB:NTD)

322,806
363,673

Financial liabilities
Monetary items
USD

45

30.70

(USD:NTD)

1,377

Financial liabilities
Monetary items
USD
December 31, 2022

For the years ended December 31, 2023 and 2022, realized and unrealized net foreign exchange gains were$616 thousand and $73,117 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 Corporation.
33. 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 3- 50 -

4) 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:
None7) 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 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 2- 51 -

e) 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: Consolidated Financial Statements Table 7
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 7- 52 -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.
- 53 -

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

RelationshipBrogent Creative Subsidiary
Brogent Global
Subsidiary

Limit of AmountMaximum
Provided to Each
Balance for the
Guaranteed
Year
Party (Note 1)$ 944,751
944,751$ 43,290
50,000

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(%)$ 43,290
50,000$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.
- 54 -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

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

The Corporation

Brogent Global

Holey Holdings Limited

Brogent HK

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

200$

24,1094.13$

24,10927,900,000$ 130,749

4.75$ 130,749

1,050,000

$

17.50

$

Brogent Rides- 55 -

1,379

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)

Overdue
Company Name

The Corporation
Brogent Global

Related Party

Brogent Rides
HaiWei Creative

Relationship

Subsidiaries
Subsidiaries

Ending Balance Turnover(Note 1)Rate$

- 56 -

241,677
136,836-

Amount$Actions Taken--

AmountReceived in
Subsequent
PeriodAllowance for
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

The Corporation
The Corporation

The Corporation
The Corporation

Brogent HK

Brogent HK

Brogent HK
Dili Jie
JetwayJetwayBrogent Global

Investee Company

Location

Main Businesses andProducts

Brogent HK

Hong Kong Reinvestment and tradingbusiness
Brogent Global
TaiwanDevelopment and managementbusiness of self-operated
outlets, site planning andfilm production
Dili Jie
British Virgin Reinvestment and trading
Islands
business
Scroll Application TechnologyTaiwan
Sales and research andCo., Ltd.
development of software
services
Brogent Japan Entertainment Japan
Management businessdevelopment and sales ofthe peripheral products ofsimulator rides in Japan
hexaRide the first LLP
JapanDevelopment and managementbusiness of self-operated
outlets
StarLite
CanadaDesign and managementbusiness
JetwayCaymanReinvestment and trading
Islands
business
GarleyBritish Virgin Reinvestment and trading
Islands
business
Holey Holdings Limited
British Virgin Reinvestment and trading
Islands
business
JetmayBritish Virgin Reinvestment and trading
Islands
business

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

20,000-2,000,000

48.78

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

10,161

10,161

-

35.90

6,886

15,022

5,392

Associates

81,55281,552---(1,390 )(1,180 )Note 337,50537,505-100.009,861(5,225 )(5,225 )Subsidiary298,659

298,659-

100.00432,952

27,45927,459Subsidiary131,258

131,258-

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

168,391

168,391-

100.00245,173

44,21044,210Subsidiary

99,27699,276-100.00117,561(36,272 )(35,872 )Subsidiary

Note 1: The share of profit (loss) recognized for the year ended December 31, 2023 included eliminated unrealized gains or losses.
Note 2: Refer to Table 6 for the information on investments in mainland China.
Note 3: hexaRide had been liquidated in December 2023.
- 57 -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

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

The Corporation$

311,166$

222,712Outward$

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$

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

Upper Limit on the Amount of
Investments Stipulated by theInvestment Commission, MOEA

311,166$

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 Table 3.
- 58 -TABLE 7

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 parent company only financial statements may differ from the actual number of shares that havebeen 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.
- 59 -

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMSITEMSTATEMENT INDEXMAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIESAND EQUITYSTATEMENT OF CASH
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE
THROUGH OTHER COMPREHENSIVE INCOME CURRENTSTATEMENT OF ACCOUNTS RECEIVABLE
STATEMENT OF OTHER RECEIVABLESSTATEMENT OF INVENTORIESSTATEMENT OF PREPAYMENTS
STATEMENT OF CHANGES IN INVESTMENTS
ACCOUNTED FOR USING THE EQUITY METHODSTATEMENT OF CHANGES IN PROPERTY, PLANT AND
EQUIPMENTSTATEMENT OF CHANGES IN ACCUMULATED
DEPRECIATION OF PROPERTY, PLANT AND
EQUIPMENTSTATEMENT OF CHANGES IN RIGHT-OF-USE ASSETSSTATEMENT OF CHANGES INTANGIBLE ASSETS
DEPRECIATION OF RIGHT-OF-USE ASSETSSTATEMENT OF CHANGES IN INVESTMENT PROPERTYSTATEMENT OF DEFERRED TAX ASSETSSTATEMENT OF SHORT-TERM BORROWINGSSTATEMENT OF ACCOUNTS PAYABLE
STATEMENT OF OTHER PAYABLESSTATEMENT OF LONG-TERM BORROWINGSSTATEMENT OF LEASE LIABILITIESSTATEMENT OF DEFERRED TAX LIABILITIESMAJOR ACCOUNTING ITEMS IN PROFIT OR LOSSSTATEMENT OF OPERATING REVENUESSTATEMENT OF OPERATING COSTSSTATEMENT OF OPERATING EXPENSES
STATEMENT OF OTHER GAINS AND LOSSESSTATEMENT OF FINANCE COSTSSTATEMENT OF EMPLOYEE BENEFIT, DEPRECIATION
AND AMORTIZATION BY FUNCTION- 60 -

1
Table 3234
56Note 13
Note 13
Note 14
Note 14
Note 15
Note 25
7
8
Note 199
10Note 25
Note 23
11
12
Note 24Note 24
13

STATEMENT 1

Brogent Technologies Inc.
STATEMENT OF CASH
DECEMBER 31, 2023
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item

Summary

Cash on hand
Cash in banks
Demand deposits
Checking deposits
Foreign currency
deposits

Amount$

USD1,399 thousand, RMB10,092
thousand, EUR376 thousand,
CAD3,095 thousand, JPY257,725
thousand

979
132,21953
215,419

347,691
Cash equivalents
Time deposits

Interest of 0.855%-2.80%,
expire in 2024.01-2024.03

272,511$ 621,811

Note:

Exchange rate:
USD1=NTD30.71
RMB1=NTD4.33
EUR1=NTD34.01
JPY1=NTD0.22- 61 -STATEMENT 2Brogent Technologies Inc.
STATEMENT OF ACCOUNTS RECEIVABLEDECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Client Name

AmountRelated parties
Brogent Rides
Brogent Global$ 241,677
3,483
245,160

Unrelated parties
Group AGroup B
Group CGroup DGroup E
Others (Note)Less:

69,10942,99429,90024,444
21,27576,628264,350(107,085 )
157,265

Allowance for impairment loss

$ 402,425

Note:

The amount of individual clients included in others did not exceed 5% of the accountbalance.

- 62 -STATEMENT 3Brogent Technologies Inc.
STATEMENT OF OTHER RECEIVABLESDECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Client Name

AmountRelated parties
Brogent Global
HaiWei Creative$ 7,940
86
8,026

Non-related parties
Interest receivables
Receivables from sale of investments
Others

672
637
98
1,407
$ 9,433- 63 -STATEMENT 4Brogent Technologies Inc.
STATEMENT OF INVENTORIESDECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

AmountItem

Carrying Amount

Net Realizable
Value (Note)$ 245,558$ 253,280

Project materials

Note:

Refer to Note 4 accounting policies for information on the net realizable value.

- 64 -STATEMENT 5Brogent Technologies Inc.
STATEMENT OF PREPAYMENTS
DECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Item

AmountPrepaid expenses$ 26,329

Prepayments to suppliers

11,644

Offset against business tax payable

17,738Input tax

4,315

Prepaid insurance

3,921

Others (Note)63$ 64,010

Note:

The amount of individual items included in others did not exceed 5% of the accountbalance.

- 65 -STATEMENT 6Brogent Technologies Inc.
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHODFOR THE YEAR ENDED DECEMBER 31, 2023
(In Thousands of New Taiwan Dollar, Except Unit Price)

Name
Brogent HK

Balance, January 1, 2023
SharesAmount242,957-

362,143,320

289,922

Dili Jie-

Scroll Application Technology-

Brogent Global-$

Additions in Investment (Note 1)
SharesAmount$64,660---410,375--

2,000,000

943,254$$

Balance, December 31, 2023
% ofSharesOwnership
AmountDecrease in Investment (Note 1)
SharesAmount45,407

-

100

-

1,838

362,143,320

100

288,084

22,598

-

-

-

100

20,000-8,062

2,000,000

49

107,258$$

55,307$$262,210Net Assets Value (Note 2)
Unit Price(NT$)
Total Amount262,210

None

7.91

288,425

None

432,973-

432,973

None

11,938

5.97

11,938None

995,205$-$

Collateral$

993,546

Note 1: Changes in this year include acquisition of investments, the share of profits and losses of subsidiaries and associates accounted for using the equity method, exchange differences on translation of the financial statements of foreign
operations, the share of other comprehensive income of the associate, and upstream and downstream transactions.
Note 2: The net equity value is calculated based on the financial statements of each invested company and the Corporation’s shareholding ratio.

- 66 -STATEMENT 7Brogent Technologies Inc.
STATEMENT OF SHORT-TERM BORROWINGSDECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Type/Bank NameContract Period

Interest Rate(%)

Balance,
December 31, 2023

Unsecured Borrowings
CTBC BankCTBC BankCTBC BankCTBC BankFirst Commercial Bank
Taishin BankThe Export-Import Bank of
the Republic of China

2023/11-2024/05
2023/11-2024/05
2023/11-2024/05
2023/12-2024/06
2023/12-2024/03
2023/12-2024/01
2023/08-2024/02

1.90
1.90
1.90
1.90
1.95
1.90
1.90

$ 30,000
50,00070,000100,000
50,00050,00080,000$ 430,000- 67 -

Loan
Commitme nts$ 430,000
430,000
430,000
430,000
50,000100,000
80,000Collateral

None
None
None
None
None
None
None

STATEMENT 8Brogent Technologies Inc.
STATEMENT OF ACCOUNTS PAYABLEDECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Vendor Name

AmountRelated parties
StarLite$

Unrelated parties
Company A
Company B
Company C
Company D
Company E
Company F
Others (Note)

921
15,472
8,322
7,374
7,121
3,911
2,827
9,037
54,064$ 54,985

Note:

The amount of individual vendors included in others did not exceed 5% of the accountbalance.

- 68 -STATEMENT 9Brogent Technologies Inc.
STATEMENT OF LONG-TERM BORROWINGSDECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Bank Name
Collate raised Borrowing
Taiwan Cooperative Bank
Taiwan Cooperative Bank

Contract Period
Contract Period and Repayment Terms

Interest Rates(%)

Repay monthly before October 2031
Repay in 10 installments from December 2025
to June 2030

2.10
2.17

- 69 -

Current

Balance, December 31, 2023
Non-current

Total

Collateral$ 15,203-$ 114,367
300,000$ 129,570
300,000

Buildings
Buildings$ 15,203$ 414,367$ 429,570

STATEMENT 10

Brogent Technologies Inc.
STATEMENT OF LEASE LIABILITIESDECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Summary

Lease Term

Discount Rate（％）

AmountLand

Business space

2012.03-2053.07

1.71-2.17$ 203,539

Building

Offices andfactories

2021.02-2030.05

1.71-1.85

42,397

Transportation equipment

Offical vehicle

2019.01-2023.12

1.71-2.17

3,409

Item

249,345
Less: current(27,071 )Lease liabilities - non-current$ 222,274- 70 -STATEMENT 11

Brogent Technologies Inc.
STATEMENT OF OPERATING COSTSFOR THE YEAR ENDED DECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Item

AmountCost of project contract$ 396,674

Cost of Licensing

9,079

Cost of tickets sales

23,732

Cost of services

48,430

Cost of rental

23,173$ 501,088- 71 -STATEMENT 12

Brogent Technologies Inc.
STATEMENT OF OPERATING EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2023
(In Thousands of New Taiwan Dollars)

Item
Employee benefits (Note)

MarketingExpense$Depreciation

33,272

General and
Administrative
Expense$82,869Research andDevelopment
Expense$Total

80,276$ 196,417

901

83,351

6,209

90,461

1,055

870

9,689

11,614445

16,653-17,098

Amortization

1,388

5,162

1,511

8,061

Advertisement expense

31,166

1,155-

32,321Entertainment expense

2,570

5,575

74

8,219

Traveling expense

7,387

6,370

1,797

15,554

Others

10,38760,963

7,335

78,68588,571$ 262,968$ 106,891

458,430

Miscellaneous purchases
Professional service expense$
Expected credit loss

77,047$ 535,477

Note:Refer to statement 13.

- 72 -STATEMENT 13

Brogent Technologies Inc.
STATEMENT OF EMPLOYEE BENEFIT, DEPRECIATION AND AMORTIZATION BY FUNCTION
FOR THE YEARS ENDED DECEMBER 31, 2023 and 2022
(In Thousands of New Taiwan Dollars)

Operating
Cost

For the Year Ended December 31
2023
2022
OperatingOperating Operating
ExpenseTotal
Cost
Expense$ 56,774$ 162,080$ 218,854$ 50,142$ 167,253$ 217,395

7,061
3,554

15,005
7,626

22,066
11,180

5,527
2,822

15,907
8,220

21,434
11,042

2,797
70,186

3,630
8,862
197,203

3,630
11,659267,389

2,187
60,6782,884
10,995205,259

2,884
13,182
265,937-(786 )(786 )-(5,465 )(5,465 )$ 70,186$ 196,417$ 266,603$ 60,678$ 199,794$ 260,472

Depreciation$ 29,125$ 90,461$ 119,586$ 23,780$ 91,847$ 115,627

Amortization

8,855

8,061

16,916

8,494

6,444

14,938

Employee benefit
Salaries
Labor and healthinsurance
PensionRemuneration of
directors
OthersLess:

Revenue fromprovidingservices tosubsidiaries

Total

Note 1: The average numbers of the Corporation’s employees were 283 and 282, including 7 and 6
non-employee directors in 2023 and 2022, respectively.
Note 2: The average employee benefits and salaries of the Corporation were as follows:a.

The average employee benefits for the years ended December 31, 2023 and 2022 were $956
thousand and $953 thousand, respectively.

b.

The average salaries for the years ended December 31, 2023 and 2022 were $793 thousand and$788 thousand, respectively.

c.

The average salary increased by 0.6% year-on year.

d.

The Corporation has set up an audit committee, replacing supervisors.
(Continued)- 73 -

e. The Corporation’s salary policies (including directors, executive officers and employees) are as
follows:
1) Independent director
The Corporation may pay remuneration to independent directors on a monthly basis, regardlessof profit or loss, subject to adjustment by the remuneration committee based on their
participation and contribution to the Corporation’s operations, and submitted to the board of
directors for approval.
2) Directors
According to the Articles of the Corporation, the remuneration of directors shall not be higher
than 2% of the annual profit, and the board of directors was authorized to determine theindividual remuneration based on the degree of the participation and contribution to the
Corporation’s operations and the common level of peers.
3) Executive officers
The remuneration committee of the Corporation may determine the content and amount of the
remuneration of the executive officers based on the degree of participation in the Corporation’s
operations, the value of the contribution, the achievement of the performance targets, as well as
the common level of peers.
4) Employees
The Corporation shall formulate a reasonable salary policy based on the common level of peers
and listed companies to maintain internal fairness and external competitiveness. In addition,according to the Corporation’s Articles, where the Corporation makes a profit in a fiscal year,
the compensation of employees shall be accrued at a rate between 5% and 15%.
(Concluded)- 74 -