United Microelectronics Corp 6-K, filed May 14, 2024

United Microelectronics Corp (UMC)

6-K 2024-05-14 For: 2024-03-31

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Added on April 10, 2026

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United Microelectronics Corp filed this 6-K on May 14, 2024.

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		United Microelectronics Corporation

Date: May 14, 2024	By:	Chitung Liu
	Name:	Chitung Liu
	Title:	CFO

Exhibit No.		Description

99.1		CONSOLIDATED FINANCIAL STATEMENTS

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2024, December 31, 2023 and March 31, 2023
(Expressed in Thousands of New Taiwan Dollars)

		As of
Assets	Notes	March 31, 2024		December 31, 2023		March 31, 2023
Current assets
Cash and cash equivalents	4, 6(1)	$	119,431,260	$	132,553,615	$	171,834,458
Financial assets at fair value through profit or loss, current	4, 5, 6(2)	450,991		443,601		751,386
Financial assets at fair value through other comprehensive income, current	4, 5, 6(3)	6,721,549		5,753,379		4,394,403
Financial assets measured at amortized cost, current	4, 6(4)	5,593,700		6,131,077		259,264
Contract assets, current	4, 6(21)	574,249		739,528		335,456
Accounts receivable, net	4, 6(5)	30,206,711		29,237,550		26,674,425
Accounts receivable-related parties, net	4, 7	470,257		347,964		390,603
Other receivables	4	3,683,750		2,707,400		1,838,971
Current tax assets	4	133,034		130,123		65,094
Inventories, net	4, 5, 6(6)	34,593,276		35,712,558		32,678,867
Prepayments		2,568,359		2,163,387		1,982,304
Other current assets	6(21)	735,220		877,210		761,984
Total current assets		205,162,356		216,797,392		241,967,215

Non-current assets
Financial assets at fair value through profit or loss, noncurrent	4, 5, 6(2)	17,685,117		16,694,860		18,056,411
Financial assets at fair value through other comprehensive income, noncurrent	4, 5, 6(3)	12,815,300		11,930,581		13,869,030
Financial assets measured at amortized cost, noncurrent	4, 6(4)	248,021		222,691		7,491
Investments accounted for under the equity method	4, 6(7), 7	46,793,606		45,406,511		40,153,924
Property, plant and equipment	4, 6(8), 8	254,135,871		239,123,248		192,184,500
Right-of-use assets	4, 6(9), 8	7,658,502		7,000,355		7,540,463
Intangible assets	4, 6(10), 7	4,023,612		4,372,555		3,970,977
Deferred tax assets	4	5,028,668		5,119,795		5,070,034
Prepayment for equipment		5,543,410		4,725,583		18,502,796
Refundable deposits	8	3,265,200		2,708,823		2,749,664
Other noncurrent assets-others		4,712,923		5,084,533		5,558,609
Total non-current assets		361,910,230		342,389,535		307,663,899

Total assets		$	567,072,586	$	559,186,927	$	549,631,114

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2024, December 31, 2023 and March 31, 2023
(Expressed in Thousands of New Taiwan Dollars)

		As of
Liabilities and Equity	Notes	March 31, 2024		December 31, 2023		March 31, 2023
Current liabilities
Short-term loans	6(11), 6(28)	$	11,130,000	$	13,530,000	$	100,000
Financial liabilities at fair value through profit or loss, current	4, 6(12)	1,561,120		1,019,362		782,936
Contract liabilities, current	4, 6(21)	3,497,847		3,250,712		3,269,274
Accounts payable		7,458,749		7,526,159		9,213,490
Other payables	4, 6(20), 6(22), 7	23,214,842		25,670,984		28,078,902
Payables on equipment		13,969,298		19,196,256		18,438,429
Current tax liabilities	4	7,974,863		6,657,347		14,615,454
Lease liabilities, current	4, 6(9), 6(28)	548,422		514,324		541,733
Other financial liabilities, current	6(28)	-		-		17,314,748
Current portion of long-term liabilities	4, 6(13), 6(14), 6(28)	14,466,461		16,006,797		9,674,114
Other current liabilities	4, 6(16), 6(17), 6(18), 6(28), 7	4,581,517		5,642,792		3,856,904
Total current liabilities		88,403,119		99,014,733		105,885,984

Non-current liabilities
Contract liabilities, noncurrent	4, 6(21)	448,560		430,640		426,860
Bonds payable	4, 6(13), 6(28)	24,580,982		24,579,651		20,985,894
Long-term loans	6(14), 6(28)	18,869,012		20,656,248		16,317,372
Deferred tax liabilities	4	5,828,430		5,262,872		3,874,127
Lease liabilities, noncurrent	4, 6(9), 6(28)	5,415,852		4,878,863		5,186,609
Net defined benefit liabilities, noncurrent	4	1,659,030		2,205,085		2,642,055
Guarantee deposits	6(28)	41,217,600		40,122,956		32,193,560
Other noncurrent liabilities-others	4, 6(16), 6(18), 6(20), 6(28)	2,421,951		2,457,307		6,568,590
Total non-current liabilities		100,441,417		100,593,622		88,195,067

Total liabilities		188,844,536		199,608,355		194,081,051

Equity attributable to the parent company
Capital	4, 6(19)
Common stock		125,290,340		125,298,222		125,047,490
Additional paid-in capital	4, 6(19), 6(20)
Premiums		3,997,662		3,997,662		3,215,160
Treasury stock transactions		4,531,955		4,531,955		4,531,955
The differences between the fair value of the consideration paid or received from acquiring or disposing subsidiaries and the carrying amounts of the subsidiaries		3,039,275		3,039,275		466,457
Recognition of changes in subsidiaries’ ownership		5,422		3,807		-
Share of changes in net assets of associates and joint ventures accounted for using equity method		346,687		358,848		339,737
Restricted stock for employees		2,381,712		2,373,830		2,221,709
Other		19,140		19,396		2,200,688
Retained earnings	6(19)
Legal reserve		30,472,125		30,472,125		21,566,986
Special reserve		2,734,058		2,734,058		4,914,214
Unappropriated earnings		194,303,808		183,847,052		191,669,715
Other components of equity	4, 6(20)
Exchange differences on translation of foreign operations		(3,186,676)		(8,646,445)		(7,615,378)
Unrealized gains or losses on financial assets measured at fair value through other comprehensive income		15,693,046		13,199,259		8,189,022
Unearned employee compensation		(1,716,428)		(1,991,331)		(1,542,119)
Total equity attributable to the parent company		377,912,126		359,237,713		355,205,636

Non-controlling interests	6(19)	315,924		340,859		344,427
Total equity		378,228,050		359,578,572		355,550,063

Total liabilities and equity		$	567,072,586	$	559,186,927	$	549,631,114

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three-month periods ended March 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share)

		For the three-month periods ended March 31,
	Notes	2024		2023
Operating revenues	4, 6(21), 7	$	54,632,099	$	54,209,447
Operating costs	4, 6(6), 6(10), 6(15), 6(20), 6(21), 6(22), 7	(37,732,669)		(34,985,007)
Gross profit		16,899,430		19,224,440
Operating expenses	4, 6(5), 6(10), 6(15), 6(20), 6(22), 7
Sales and marketing expenses		(683,987)		(950,313)
General and administrative expenses		(1,702,018)		(2,102,198)
Research and development expenses		(3,407,407)		(2,766,607)
Expected credit impairment gains		45,530		38,586
Subtotal		(5,747,882)		(5,780,532)
Net other operating income and expenses	4, 6(16), 6(23)	512,953		1,036,790
Operating income		11,664,501		14,480,698
Non-operating income and expenses
Interest income	4	1,071,136		1,229,719
Other income	4	10,470		13,945
Other gains and losses	4, 6(24)	(408,150)		742,166
Finance costs	6(24)	(414,879)		(347,250)
Share of profit or loss of associates and joint ventures	4, 6(7)	100,642		3,248,054
Exchange gain, net	4	697,164		-
Exchange loss, net	4	-		(238,881)
Subtotal		1,056,383		4,647,753
Income from continuing operations before income tax		12,720,884		19,128,451
Income tax expense	4, 6(26)	(2,291,289)		(2,743,904)
Net income		10,429,595		16,384,547
Other comprehensive income (loss)	6(25)
Items that will not be reclassified subsequently to profit or loss
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income	4	1,852,889		3,073,833
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss		595,478		1,343,564
Income tax related to items that will not be reclassified subsequently	4, 6(26)	46,034		6,873
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations		5,122,067		(1,187,684)
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss		237,993		6,968
Income tax related to items that may be reclassified subsequently	4, 6(26)	99,747		81,533
Total other comprehensive income (loss)		7,954,208		3,325,087
Total comprehensive income (loss)		$	18,383,803	$	19,709,634

Net income (loss) attributable to:
Shareholders of the parent		$	10,456,142	$	16,183,002
Non-controlling interests		(26,547)		201,545
		$	10,429,595	$	16,384,547

Comprehensive income (loss) attributable to:
Shareholders of the parent		$	18,410,312	$	19,508,092
Non-controlling interests		(26,509)		201,542
		$	18,383,803	$	19,709,634

Earnings per share (NTD)	4, 6(27)
Earnings per share-basic		$	0.84	$	1.31
Earnings per share-diluted		$	0.83	$	1.28


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

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the three-month periods ended March 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)

		Equity Attributable to the Parent Company
		Capital				Retained Earnings						Other Components of Equity
	Notes	Common Stock		Additional Paid-in Capital		Legal Reserve		Special Reserve		Unappropriated Earnings		Exchange Differences on Translation of Foreign Operations		Unrealized Gains or Losses on Financial Assets Measured at Fair Value through Other Comprehensive Income		Unearned Employee Compensation		Total		Non- Controlling Interests		Total Equity
Balance as of January 1, 2023	6(19)	$	125,047,490	$	12,377,833	$	21,566,986	$	4,914,214	$	175,765,824	$	(6,516,198)	$	3,782,141	$	(1,831,030)	$	335,107,260	$	343,679	$	335,450,939
Net income for the three-month period ended March 31, 2023	6(19)	-		-		-		-		16,183,002		-		-		-		16,183,002		201,545		16,384,547
Other comprehensive income (loss) for the three-month period ended March 31, 2023	6(19), 6(25)	-		-		-		-		-		(1,099,180)		4,424,270		-		3,325,090		(3)		3,325,087
Total comprehensive income (loss)		-		-		-		-		16,183,002		(1,099,180)		4,424,270		-		19,508,092		201,542		19,709,634
Share-based payment transaction	4, 6(20)	-		-		-		-		(2,334)		-		-		288,911		286,577		2,334		288,911
Share of changes in net assets of associates and joint ventures accounted for using equity method		-		26,114		-		-		17,445		-		(17,445)		-		26,114		-		26,114
Disposal of investments accounted for under the equity method		-		117,264		-		-		(56)		-		56		-		117,264		-		117,264
Changes in subsidiaries’ ownership	4, 6(19)	-		-		-		-		(294,166)		-		-		-		(294,166)		(17)		(294,183)
Non-Controlling Interests	6(19)	-		-		-		-		-		-		-		-		-		100		100
Others	6(19)	-		454,495		-		-		-		-		-		-		454,495		(203,211)		251,284
Balance as of March 31, 2023	6(19)	$	125,047,490	$	12,975,706	$	21,566,986	$	4,914,214	$	191,669,715	$	(7,615,378)	$	8,189,022	$	(1,542,119)	$	355,205,636	$	344,427	$	355,550,063

Balance as of January 1, 2024	6(19)	$	125,298,222	$	14,324,773	$	30,472,125	$	2,734,058	$	183,847,052	$	(8,646,445)	$	13,199,259	$	(1,991,331)	$	359,237,713	$	340,859	$	359,578,572
Net income (loss) for the three-month period ended March 31, 2024	6(19)	-		-		-		-		10,456,142		-		-		-		10,456,142		(26,547)		10,429,595
Other comprehensive income (loss) for the three-month period ended March 31, 2024	6(19), 6(25)	-		-		-		-		614		5,459,769		2,493,787		-		7,954,170		38		7,954,208
Total comprehensive income (loss)		-		-		-		-		10,456,756		5,459,769		2,493,787		-		18,410,312		(26,509)		18,383,803
Share-based payment transaction	4, 6(20)	(7,882)		7,417		-		-		-		-		-		274,903		274,438		1,134		275,572
Share of changes in net assets of associates and joint ventures accounted for		-		(12,161)		-		-		-		-		-		-		(12,161)		-		(12,161)
using equity method
Changes in subsidiaries’ ownership	4, 6(19)	-		2,080		-		-		-		-		-		-		2,080		440		2,520
Others	6(19)	-		(256)		-		-		-		-		-		-		(256)		-		(256)
Balance as of March 31, 2024	6(19)	$	125,290,340	$	14,321,853	$	30,472,125	$	2,734,058	$	194,303,808	$	(3,186,676)	$	15,693,046	$	(1,716,428)	$	377,912,126	$	315,924	$	378,228,050

English Translation of Consolidated Financial Statements Originally Issued in Chinese
UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three-month periods ended March 31, 2024 and 2023
(Expressed in Thousands of New Taiwan Dollars)

	For the three-month periods ended March 31,
	2024		2023
Cash flows from operating activities:
Net income before tax	$	12,720,884	$	19,128,451
Adjustments to reconcile net income before tax to net cash provided by operating activities:
Depreciation	10,257,846		9,222,348
Amortization	627,800		680,441
Expected credit impairment gains	(45,530)		(38,586)
Net loss (gain) of financial assets and liabilities at fair value through profit or loss	428,142		(705,829)
Interest expense	395,087		321,534
Interest income	(1,071,136)		(1,229,719)
Dividend income	(3,929)		(13,945)
Share-based payment	278,092		288,911
Share of profit of associates and joint ventures	(100,642)		(3,248,054)
Gain on disposal of property, plant and equipment	(32,831)		(59,020)
Gain on disposal of investments accounted for under the equity method	-		(19,548)
Exchange loss (gain) on financial assets and liabilities	716,312		(201,595)
Gain on lease modification	-		(51)
Amortization of deferred government grants	(283,430)		(931,702)
Income and expense adjustments	11,165,781		4,065,185
Changes in operating assets and liabilities:
Financial assets and liabilities at fair value through profit or loss	(418,632)		275,156
Contract assets	160,778		34,883
Accounts receivable	(822,752)		9,862,071
Other receivables	(834,051)		87,186
Inventories	1,351,616		(1,676,588)
Prepayments	(83,243)		871,406
Other current assets	(17,873)		-
Contract fulfillment costs	168,708		(42,292)
Contract liabilities	173,719		(286,340)
Accounts payable	(114,186)		265,961
Other payables	(2,073,705)		(3,078,183)
Other current liabilities	(691,550)		(557,204)
Net defined benefit liabilities	(546,055)		(227,347)
Other noncurrent liabilities-others	3,946		10,785
Cash generated from operations	20,143,385		28,733,130
Interest received	997,629		1,196,844
Dividend received	85,748		37,732
Interest paid	(154,224)		(67,143)
Income tax paid	(252,667)		(2,936,364)
Net cash provided by operating activities	20,819,871		26,964,199


New, Revised or Amended Standards and Interpretations		Effective Date issued by IASB
IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures		To be determined by IASB
IFRS 17 “Insurance Contracts”		January 1, 2023
Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates” - Lack of Exchangeability		January 1, 2025
IFRS 18 “Presentation and Disclosure in Financial Statements”		January 1, 2027


			Percentage of ownership (%) As of
Investor	Subsidiary	Business nature	March 31, 2024	December 31, 2023	March 31, 2023
UMC	UMC GROUP (USA)	IC Sales	100.00	100.00	100.00
UMC	UNITED MICROELECTRONICS (EUROPE) B.V. (UME BV)	Marketing support activities	100.00	100.00	100.00
UMC	UMC CAPITAL CORP.	Investment holding	100.00	100.00	100.00
UMC	GREEN EARTH LIMITED (GE)	Investment holding	100.00	100.00	100.00
UMC	TLC CAPITAL CO., LTD. (TLC)	Venture capital	100.00	100.00	100.00
UMC	UMC INVESTMENT (SAMOA) LIMITED	Investment holding	100.00	100.00	100.00
UMC	FORTUNE VENTURE CAPITAL CORP. (FORTUNE)	Consulting and planning for venture capital	100.00	100.00	100.00
UMC	UMC KOREA CO., LTD. (UMC KOREA)	Marketing support activities	100.00	100.00	100.00
UMC	OMNI GLOBAL LIMITED (OMNI)	Investment holding	100.00	100.00	100.00
UMC	SINO PARAGON LIMITED	Investment holding	100.00	100.00	100.00
UMC	BEST ELITE INTERNATIONAL LIMITED (BE)	Investment holding	100.00	100.00	100.00
UMC	UNITED SEMICONDUCTOR JAPAN CO., LTD. (USJC)	Sales and manufacturing of integrated circuits	100.00	100.00	100.00
UMC and FORTUNE	WAVETEK MICROELECTRONICS CORPORATION (WAVETEK)	Sales and manufacturing of integrated circuits	80.00	80.00	80.13
TLC	SOARING CAPITAL CORP.	Investment holding	100.00	100.00	100.00
SOARING CAPITAL CORP.	UNITRUTH ADVISOR (SHANGHAI) CO., LTD.	Investment holding and advisory	100.00	100.00	100.00
GE	UNITED MICROCHIP CORPORATION	Investment holding	100.00	100.00	100.00
FORTUNE	TERA ENERGY DEVELOPMENT CO., LTD. (TERA ENERGY)	Energy technical services	99.01	99.01	100.00
TERA ENERGY	EVERRICH ENERGY INVESTMENT (HK) LIMITED (EVERRICH-HK)	Investment holding	100.00	100.00	100.00
EVERRICH-HK	EVERRICH (SHANDONG) ENERGY CO., LTD.	Solar engineering integrated design services	100.00	100.00	100.00
OMNI	UNITED MICROTECHNOLOGY CORPORATION (CALIFORNIA)	Research and development	100.00	100.00	100.00

	Land	Buildings	Machinery and equipment	Transportation equipment	Furniture and fixtures	Leasehold improvement	Construction in progress and equipment awaiting inspection	Total
As of January 1, 2024	$1,430,338	$38,369,863	$1,021,498,821	$71,712	$8,873,468	$65,823	$82,358,651	$1,152,668,676
Additions	-	16,966	-	-	-	-	22,128,232	22,145,198
Disposals	-	-	(601,227)	-	(515)	-	-	(601,742)
Transfers and reclassifications	-	19,215	19,355,720	72	100,350	-	(18,984,870)	490,487
Exchange effect	(15,581)	215,062	7,985,369	691	33,904	1,560	1,859,583	10,080,588
As of March 31, 2024	$1,414,757	$38,621,106	$1,048,238,683	$72,475	$9,007,207	$67,383	$87,361,596	$1,184,783,207

	For the three-month periods ended March 31,
	2024	2023
Interest expense capitalized	$3,683	$1,279
Interest rates applied	1.52% - 1.95%	1.48% - 1.57%

	Goodwill	Software	Patents and technology license fees	Others	Total
As of January 1, 2024	$15,012	$5,466,077	$1,773,541	$3,310,641	$10,565,271
Additions	-	164,254	-	38,784	203,038
Write-off	-	(493,384)	(214,874)	(157,824)	(866,082)
Reclassifications	-	1,581	-	-	1,581
Exchange effect	-	(28,313)	206,906	(3,943)	174,650
As of March 31, 2024	$15,012	$5,110,215	$1,765,573	$3,187,658	$10,078,458


Term	Issuance date	Issued amount	Coupon rate	Repayment
Ten-year	In mid-June 2014	NT$3,000 million	1.95%	Interest will be paid annually and the principal will be repayable in June 2024 upon maturity.
Seven-year	In late March 2017	NT$2,100 million	1.43%	Interest will be paid annually and the principal was fully repaid in March 2024.
Seven-year	In early October 2017	NT$3,400 million	1.13%	Interest will be paid annually and the principal will be repayable in October 2024 upon maturity.
Five-year	In late April 2021	NT$5,500 million	0.57%	Interest will be paid annually and the principal will be repayable in April 2026 upon maturity.
Seven-year	In late April 2021	NT$2,000 million	0.63%	Interest will be paid annually and the principal will be repayable in April 2028 upon maturity.
Ten-year (Green bond)	In late April 2021	NT$2,100 million	0.68%	Interest will be paid annually and the principal will be repayable in April 2031 upon maturity.
Five-year	In mid-December 2021	NT$5,000 million	0.63%	Interest will be paid annually and the principal will be repayable in December 2026 upon maturity.
Five-year (Green bond)	In mid-September 2023	NT$10,000 million	1.62%	Interest will be paid annually and the principal will be repayable in September 2028 upon maturity.


	As of
Lenders	March 31, 2024	December 31, 2023	March 31, 2023	Redemption
Secured Long-Term Loan from Mega International Commercial Bank (1)	$3,649	$4,866	$8,515	Repayable quarterly from October 24, 2019 to October 24, 2024 with monthly interest payments. Interest-only payment for the first year.
Secured Long-Term Loan from Mega International Commercial Bank (2)	$12,706	$13,765	$16,941	Repayable quarterly from February 23, 2022 to February 22, 2027 with monthly interest payments. Interest-only payment for the first year.
Secured Long-Term Loan from Mega International Commercial Bank (3)	42,706	46,265	56,941	Repayable quarterly from December 22, 2022 to February 23, 2027 with monthly interest payments. Interest-only payment for the first year.
Secured Long-Term Loan from Taiwan Cooperative Bank (1)	20,811	23,784	32,703	Repayable quarterly from October 19, 2015 to October 19, 2025 with monthly interest payments. Interest-only payment for the first year.
Secured Long-Term Loan from Taiwan Cooperative Bank (2)	-	-	1,458	Repayable monthly from May 31, 2019 to May 31, 2023 with monthly interest payments.
Secured Long-Term Loan from Taiwan Cooperative Bank (3)	17,000	20,000	29,000	Repayable monthly from August 13, 2020 to August 13, 2025 with monthly interest payments.
Secured Long-Term Loan from Taiwan Cooperative Bank (4)	8,793	10,345	15,000	Repayable monthly from October 29, 2020 to August 29, 2025 with monthly interest payments.
Secured Long-Term Loan from Taiwan Cooperative Bank (5)	52,604	58,916	77,854	Repayable monthly from April 15, 2021 to April 15, 2026 with monthly interest payments. Interest-only payment for the first year.
Secured Long-Term Loan from Taiwan Cooperative Bank (6)	34,400	34,400	-	Repayable quarterly from December 28, 2023 to December 28, 2028 with monthly interest payments. Interest-only payment for the first year.
Secured Syndicated Loans from China Development Bank and 6 others (1)	-	-	1,924,649	Repayable semi-annually from October 20, 2016 to October 19, 2024 with semi- annually interest payments. Interest-only payment for the first and the second year.
Secured Syndicated Loans from China Development Bank and 6 others (2)	9,989,915	11,766,832	12,076,126	Repayable semi-annually from March 19, 2021 to March 18, 2031 with semi- annually interest payments. Interest-only payment for the first and the second year.


(continued)


(continued)

	Onerous Contracts	Decommissioning Liabilities
Balance as of January 1, 2024	$57,800	$602,433
Arising during the period	97,618	16,966
Unused provision reversed	(24,658)	-
Discount rate adjustment and unwinding of discount from the passage of time	-	4,249
Exchange effect	291	25,489
Balance as of March 31, 2024	$131,051	$649,137

	Appropriation of earnings (in thousand NT dollars)		Cash dividend per share (NT dollars)
	2023	2022	2023	2022
Legal reserve	$6,255,736	$8,905,139
Special reserve	(2,734,057)	(2,180,156)
Cash dividends	37,587,102	45,017,096	$3.00	$3.60

	Granted in June 2021	Granted in September 2020
Share price of measurement date (NT$/ per share)	$52.20	$52.20
Expected volatility	24.06% - 24.07%	22.98%
Expected life	0.19 - 1.19 years	0.42 years
Expected dividend yield	6.02%	6.02%
Risk-free interest rate	1.15% - 1.18%	1.16%

	2023	2022
Employees’ compensation – Cash	$5,439,059	$9,160,485
Directors’ compensation	45,000	45,000


	For the three-month period ended March 31, 2024
	Arising during the period	Reclassification adjustments during the period	Other comprehensive income (loss), before tax	Income tax effect	Other comprehensive income (loss), net of tax
Items that will not be reclassified subsequently to profit or loss:
Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income	$1,852,889	$-	$1,852,889	$46,034	$1,898,923
Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss	595,478	-	595,478	-	595,478
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	5,122,067	-	5,122,067	106,430	5,228,497
Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss	237,993	-	237,993	(6,683)	231,310
Total other comprehensive income (loss)	$7,808,427	$-	$7,808,427	$145,781	$7,954,208


			Non-cash changes
Items	As of January 1, 2024	Cash flows	Foreign exchange	Others (Note A)	As of March 31, 2024
Short-term loans	$13,530,000	$(2,400,000)	$-	$-	$11,130,000
Long-term loans (current portion included)	22,883,344	(1,487,854)	213,601	-	21,609,091
Bonds payable (current portion included)	38,359,352	(2,100,030)	-	48,042	36,307,364
Guarantee deposits (current portion included)	41,599,386	(281,922)	1,129,551	-	42,447,015 (Note B)
Lease liabilities	5,393,187	(168,772)	42,480	697,379	5,964,274


			Non-cash changes
Items	As of January 1, 2023	Cash flows	Foreign exchange	Others (Note A)	As of March 31, 2023
Short-term loans	$-	$100,000	$-	$-	$100,000
Long-term loans (current portion included)	19,279,342	(585,090)	52,522	-	18,746,774
Bonds payable (current portion included)	28,184,687	-	-	45,919	28,230,606
Guarantee deposits (current portion included)	30,757,001	1,991,430	(194,896)	-	32,553,535 (Note B)
Lease liabilities	5,737,095	(159,259)	(374)	150,880	5,728,342
Other financial liabilities	21,449,487	-	101,606	26,327	21,577,420

Name of related parties		Relationship with the Company
FARADAY TECHNOLOGY CORP. and its Subsidiaries		Associate
UNIMICRON TECHNOLOGY CORP.		Associate
SILICON INTEGRATED SYSTEMS CORP.		Associate (Note)
PHOTRONICS DNP MASK CORPORATION		Other related party

	Purchase price
	For the three-month periods ended March 31,
	2024	2023
Associates	$3,781	$21,015


	Carrying Amount
	As of
	March 31, 2024	December 31, 2023	March 31, 2023	Party to which asset(s) was pledged	Purpose of pledge
Refundable Deposits (Time deposit)	$1,314,289	$813,289	$812,248	Customs	Customs duty guarantee
Refundable Deposits (Time deposit)	238,736	236,556	236,587	Science Park Bureau	Collateral for land lease
Refundable Deposits (Time deposit)	18,647	18,647	18,647	Science Park Bureau	Collateral for dormitory lease
Refundable Deposits (Time deposit)	64,950	64,950	64,950	National Property Administration, Ministry of Finance	Guarantee for the application of national non-public use land for development
Refundable Deposits (Time deposit)	8,118	8,118	8,118	Bureau of Land Administration, Tainan City Government	Guarantee for the application of national non-public use land for development

	As of
Financial Assets	March 31, 2024	December 31, 2023	March 31, 2023
Financial assets at fair value through profit or loss	$18,136,108	$17,138,461	$18,807,797
Financial assets at fair value through other comprehensive income	19,536,849	17,683,960	18,263,433
Financial assets measured at amortized cost
Cash and cash equivalents (cash on hand excluded)	119,425,045	132,547,415	171,828,423
Receivables	34,360,718	32,292,914	28,903,999
Refundable deposits	3,265,200	2,708,823	2,749,664
Other financial assets	5,841,721	6,353,768	266,755
Total	$200,565,641	$208,725,341	$240,820,071

Financial Liabilities
Financial liabilities at fair value through profit or loss	$1,561,120	$1,019,362	$782,936
Financial liabilities measured at amortized cost
Short-term loans	11,130,000	13,530,000	100,000
Payables	44,642,889	52,393,399	55,730,821
Guarantee deposits (current portion included)	42,447,015	41,599,386	32,553,535
Bonds payable (current portion included)	36,307,364	38,359,352	28,230,606
Long-term loans (current portion included)	21,609,091	22,883,344	18,746,774
Lease liabilities	5,964,274	5,393,187	5,728,342
Other financial liabilities	-	-	21,577,420
Total	$163,661,753	$175,178,030	$163,450,434

	As of March 31, 2024
	Less than 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
Non-derivative financial liabilities
Short-term loans	$11,337,555	$-	$-	$-	$11,337,555
Payables	44,308,456	-	-	-	44,308,456
Guarantee deposits	1,229,415	3,618,931	26,763,262	10,835,407	42,447,015
Bonds payable (Note)	12,730,675	10,964,793	12,277,695	2,129,393	38,102,556
Long-term loans	3,309,488	13,107,017	6,209,652	860,017	23,486,174
Lease liabilities	708,208	1,394,962	1,317,382	4,150,576	7,571,128
Total	$73,623,797	$29,085,703	$46,567,991	$17,975,393	$167,252,884

	As of December 31, 2023
	Less than 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
Non-derivative financial liabilities
Short-term loans	$13,780,612	$-	$-	$-	$13,780,612
Payables	52,202,821	-	-	-	52,202,821
Guarantee deposits	1,476,430	3,556,179	25,955,654	10,611,123	41,599,386
Bonds payable (Note)	14,797,772	10,980,506	12,321,345	2,132,963	40,232,586
Long-term loans	2,872,168	14,406,101	5,071,743	2,940,524	25,290,536
Lease liabilities	649,879	1,311,239	1,223,724	3,712,729	6,897,571
Total	$85,779,682	$30,254,025	$44,572,466	$19,397,339	$180,003,512

	As of March 31, 2023
	Less than 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
Non-derivative financial liabilities
Short-term loans	$100,481	$-	$-	$-	$100,481
Payables	55,443,426	-	-	-	55,443,426
Guarantee deposits	359,975	3,541,595	-	28,651,965	32,553,535
Bonds payable (Note)	2,445,649	6,611,389	10,577,944	4,144,408	23,779,390
Long-term loans	3,136,723	7,886,582	5,867,808	5,177,073	22,068,186
Lease liabilities	664,310	1,304,041	1,229,376	4,150,521	7,348,248
Other financial liabilities	17,314,748	4,328,918	-	-	21,643,666
Total	$79,465,312	$23,672,525	$17,675,128	$42,123,967	$162,936,932

	As of March 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets:
Financial assets at fair value through profit or loss, current	$450,991	$-	$-	$450,991
Financial assets at fair value through profit or loss, noncurrent	6,407,335	19,400	11,258,382	17,685,117
Financial assets at fair value through other comprehensive income, current	6,721,549	-	-	6,721,549
Financial assets at fair value through other comprehensive income, noncurrent	9,860,899	-	2,954,401	12,815,300
Financial liabilities:
Financial liabilities at fair value through profit or loss, current	-	-	1,561,120	1,561,120

	Financial assets at fair value through profit or loss						Financial assets at fair value through other comprehensive income
	Common stock	Preferred stock	Funds	Convertible bonds	Others	Total	Common stock	Preferred stock	Total
As of January 1, 2024	$3,036,255	$2,786,634	$4,274,896	$-	$153,300	$10,251,085	$3,062,325	$175,063	$3,237,388
Recognized in profit (loss)	421,150	4,783	50,895	-	2,560	479,388	-	-	-
Recognized in other comprehensive income (loss)	-	-	-	-	-	-	(292,807)	9,820	(282,987)
Acquisition	243,339	227,932	97,833	18,029	-	587,133	-	-	-
Disposal	(70,737)	(87,939)	(79,686)	-	-	(238,362)	-	-	-
Exchange effect	25,870	62,286	86,854	288	3,840	179,138	-	-	-
As of March 31, 2024	$3,655,877	$2,993,696	$4,430,792	$18,317	$159,700	$11,258,382	$2,769,518	$184,883	$2,954,401

		Financial liabilities at fair value through profit or loss
		Derivatives
As of January 1, 2024		$1,019,362
Recognized in profit (loss)		541,758
As of March 31, 2024		$1,561,120

		Financial liabilities at fair value through profit or loss
		Derivatives
As of January 1, 2023		$438,397
Recognized in profit (loss)		344,539
As of March 31, 2023		$782,936

As of March 31, 2024
Category	Valuation technique	Significant unobservable inputs	Quantitative information	Interrelationship between inputs and fair value	Sensitivity analysis of interrelationship between inputs and fair value
Unlisted stock	Market Approach	Discount for lack of marketability	0% - 50%	The greater degree of lack of marketability, the lower the estimated fair value is determined.	A change of 5% in the discount for lack of marketability of the aforementioned fair values of unlisted stocks could decrease/increase the Company’s profit (loss) for the three-month period ended March 31, 2024 by NT$298 million and NT$ 232 million, respectively, and decrease/increase the Company’s other comprehensive income (loss) for the three-month period ended March 31, 2024 by NT$ 201 million.
Embedded derivatives in exchangeable bonds	Binomial tree valuation model	Volatility	28.14%	The higher the volatility, the higher the estimated fair value is determined.	A change of 5% in the volatility could decrease/increase the Company’s profit (loss) for the three-month period ended March 31, 2024 by NT$85 million and NT$ 84 million, respectively.

		Fair value measurements during reporting period using
Items	Fair value	Level 1	Level 2	Level 3	Carrying amount
Bonds payables (current portion included)	$36,332,440	$30,772,286	$5,560,154	$-	$36,307,364
Long-term loans (current portion included)	21,609,091	-	21,609,091	-	21,609,091