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Financial instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Notes and other explanatory information [abstract]  
Schedule of Financial Instruments

   As of   As of 
   December 31, 2024   December 31, 2023 
Financial assets          
Financial assets at amortized cost          
Cash and cash equivalents  $649,106   $559,462 
Financial assets at amortized cost   574,391    361,249 
Accounts receivable   1,277,928    2,291,640 
Accounts receivable due from related parties   5,029,583    5,889,474 
Other receivables   1,952,834    1,696,897 
Other receivables due from related parties   526,882    3,139,430 
Long-term receivables   -    1,631,438 
Long-term receivables from related parties   8,300,723    - 
Guarantee deposits paid   133,390    625,330 
Total Financial Assets  $18,444,837   $16,194,920 
Financial liability          
Financial liabilities at amortized cost          
Short-term loans  $8,999,751   $6,964,927 
Accounts payable   209,567    193,767 
Other payables   802,840    522,786 
Long-term loans (including current portion)   1,037,768    980,200 
Total Financial Liability  $11,049,926   $8,661,680 
Lease liability  $163,775   $105,745 

  

  b) Financial risk management policies

 

  (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.
     
  (b) Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates, and hedges financial risks in close co-operation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

 

  c) Significant financial risks and degrees of financial risks

 

  (a) Market risk

 

  i) Foreign exchange risk

 

(i)The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities.

  

  

  (ii) Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. Exchange rate risk arising from the difference between various functional currencies and the reporting currency in the consolidated financial statements is centrally managed by the Group’s finance department.
     
  (iii) The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: USD; other certain subsidiaries’ functional currency: NTD, RMB and HKD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

 

   December 31, 2024 
   Foreign currency
amount		   Exchange rate   Book value
(USD)		 
Foreign currency: functional currency               
Financial assets               
Monetary items               
USD:NTD  $6,176,385    32.79   $6,176,385 
USD:HKD   8,387,829    7.77    8,387,829 
Financial liabilities               
Monetary items               
USD:NTD  $3,430,664    32.79   $3,430,664 
USD:HKD   2,237,392    7.77    2,237,392 

  

   December 31, 2023 
   Foreign currency amount   Exchange rate   Book value
(USD)		 
Foreign currency: functional currency               
Financial assets               
Monetary items               
USD:NTD  $6,489,271    31.15   $6,489,271 
Financial liabilities               
Monetary items               
USD:NTD  $761,248    31.15   $761,248 

  

iv)Analysis of foreign currency market risk arising from significant foreign exchange variation:

 

   Year ended
December 31, 2024		   Year ended
December 31, 2023		 
Foreign exchange (losses) gains  $(71,960)  $363,269 

 

 

v)Analysis of foreign currency market risk arising from significant foreign exchange variation:

 

   Sensitivity analysis 
   December 31, 2024 
   Degree of
variation		   Effect on
profit or loss		   Effect on other comprehensive income 
Foreign currency: functional currency               
Financial assets               
Monetary items               
USD:NTD   5%  $308,819   $- 
USD:HKD   5%   419,391    - 
Financial liabilities               
Monetary items               
USD:NTD   5%  $171,533   $- 
USD:HKD   5%   111,870    - 

  

   Sensitivity analysis 
   December 31, 2023 
   Degree of
variation		   Effect on
profit or loss		   Effect on other comprehensive income 
Foreign currency: functional currency               
Financial assets               
Monetary items               
USD:NTD   5%  $324,464   $- 
Financial liabilities               
Monetary items               
USD:NTD   5%  $38,062   $- 

  

  ii) Cash flow interest rate risk

 

(i)The Group’s main interest rate risk arises from short-term loans and long-term loans with variable rates, which expose the Group to cash flow interest rate risk.

 

For the years ended December 31, 2024 and 2023, the Group’s loans at variable rate were mainly denominated in NTD and USD.

 

(ii)The Group’s loans are measured at amortized cost. The loans are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

  

(iii)If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, profit would have increased/decreased as follow:

  

   Year ended
December 31, 2024		   Year ended
December 31, 2023		 
Profit increased/decreased  $100,728   $79,451 

 

 

The main factor is that changes in interest expense result in floating-rate loans.

 

  (b) Credit risk

 

(i)Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations.

 

The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortized cost.

 

(ii)The Group manages their credit risk, taking into consideration the entire group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered.

 

Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors.

 

The utilization of credit limits is regularly monitored.

 

  (iii) In line with credit risk management procedure, when the contract payments of the counterparty were past due over 360 days and after repeatedly asking for payment over 360 days, the default has occurred.
     
  (iv) The Group adopts the following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

 

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

 

  (v) The Group classifies customer’s accounts receivable in accordance with credit risk on trade and customer type. The Group applies the modified approach using a provision matrix based on the loss rate methodology to estimate expected credit loss under the provision matrix basis.
     
  (vi) The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

  

  

  (vii) The Group used the forecast ability to adjust historical and timely information to assess the default possibility of accounts receivable. The loss rate methodology is as follows:
Schedule of loss rate methodology

  

   Not past
due		   Up to 30
days
past due		     31 to 90
days
past due		     91 to 180
days
past due		     Over 180
days
past due		   Total 
   Not past
due		   Up to 30
days
past due		   31 to 90
days
past due		   91 to 180
days
past due		   Over 180
days
past due		   Total 
At December 31, 2024                        
Expected loss rate   0.00%   0.00%   0.00%   0.00%   0.00%   -
Total book value  $1,210,294   $49,695   $17,939   $0   $0   $1,277,928 
Loss allowance  $0   $0   $0   $0   $0   $0 

  

   Not past
due		   Up to 30
days
past due		   31 to 90
days
past due		   91 to 180
days
past due		   Over 180
days
past due		   Total 
At December 31, 2023                              
Expected loss rate   0.01%   0.01%   72.55%   80.91%   99.08%   -
Total book value  $2,272,329   $8,485   $14,539   $33,571   $60,048   $2,388,972 
Loss allowance  $126   $1   $10,548   $27,163   $59,494   $97,332 
Schedule of loss allowance for accounts receivable

   2024   2023 
   Loss allowance   Loss allowance 
At January 1  $97,332   $27,100 
Provision for impairment   (8,365)   81,561 
Write-offs   (88,967)   (11,110)
Effect of foreign exchange   -    (219)
At December 31  $-   $97,332 

  

 

(ix)For investments in debt instruments at amortized cost, the credit rating levels are presented below:

 

   12 months   Significant
increase in
credit risk		   Impairment
of credit		   Total 
   2024 
       Lifetime     
   12 months   Significant
increase in
credit risk		   Impairment
of credit		   Total 
Financial assets at amortized cost  $574,391   $-   $-   $574,391 
Other receivables (including Long-term receivables)  $1,952,834   $-   $-   $1,952,834 
Other receivables from related parties   526,882    -        $526,882 
Guarantee deposits paid  $133,390   $-   $-   $133,390 

  

   12 months   Significant
increase in
credit risk		   Impairment
of credit		   Total 
   2023 
       Lifetime     
   12 months   Significant
increase in
credit risk		   Impairment
of credit		   Total 
Financial assets at amortized cost  $361,249   $-   $-   $361,249 
Other receivables (including Long-term receivables)  $3,331,465   $-   $-   $3,331,465 
Guarantee deposits paid  $625,330   $-   $-   $625,330 

 

(c)Liquidity risk

 

  (i) Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.
     
  (ii) Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Group treasury. Group treasury invests surplus cash in interest bearing current accounts, time deposits, money market deposits, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.
     
  (iii) The unused credit lines from bank loans of the Group as of December 31, 2024 and 2023 are $3,961,155 and $4,802,855, respectively.

 

   As of   As of 
   December 31, 2024   December 31, 2023 
Floating rate:          
Expiring within one year  $1,645,813   $2,355,022 
Expiring beyond one year   89,053    104,334 
Total  $1,734,866   $2,459,356 

 

To acquire building and land as headquarter, the Group has obtained credit lines of mortgage loans amounted to $2,226,289(NT$73,000,000) and $2,343,499 as of December 31, 2024 and 2023, respectively. If the credit lines are used, the maturity of the mortgage loans is 20 years.

 

 

(iv)The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

 

December 31, 2024  Less than 1 year   Between 1 year
and 3 years		   Total 
Non-derivative financial liabilities               
Short-term loans  $8,999,751   $-   $8,999,751 
Accounts payable   209,567    -    209,567 
Other payables   802,840    -    802,840 
Lease liabilities   163,775    -    163,775 
Long-term loans (including current portion)   42,478    995,290    1,037,768 

 

December 31, 2023  Less than 1 year   Between 1 year
and 3 years		   Total 
Non-derivative financial liabilities               
Short-term loans  $6,964,927   $-   $6,964,927 
Accounts payable   193,767    -    193,767 
Other payables   522,786    -    522,786 
Lease liabilities   105,745    -    105,745 
Long-term loans (including current portion)   59,659    920,541    980,200