104 - Annual Report 2020 | FinancialReports.eu

Stock Code:3130

104 CORPORATION

FINANCIAL STATEMENTS

With Independent Auditors’ Report For the Years Ended December 31, 2020 and 2019

Address: 10F., No. 119-1, Baozhong Rd., Xindian Dist., New Taipei City 231, Taiwan, R.O.C. Telephone: 886-2-2912-6104

The independent auditors’ report and the accompanying financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and financial statements, the Chinese version shall prevail.

Contents 1 Cover page 2 Table of contents 3 Independent Auditors’ Report 4 Balance Sheets 5 Statements of Comprehensive Income 6 Statements of Changes in Equity 7 Statements of Cash Flows 8 Notes to Financial Statements (1) Company history (2) Approval date and procedures of the financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Losses due to major disasters (11) Significant subsequent events (12) Other (13) Other disclosures items 1) Information on significant transactions 2) Information on investees 3) Information on investment in Mainland China 4) Major shareholders (14) Segment information 9 Statements of major accounting items	Page
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Contents
1
Cover page
2
Table of contents
3
Independent Auditors’ Report
4
Balance Sheets
5
Statements of Comprehensive Income
6
Statements of Changes in Equity
7
Statements of Cash Flows
8
Notes to Financial Statements
(1) Company history
(2) Approval date and procedures of the financial statements
(3) New standards, amendments and interpretations adopted
(4) Summary of significant accounting policies
(5) Significant accounting assumptions and judgments, and major sources of
estimation uncertainty
(6) Explanation of significant accounts
(7) Related-party transactions
(8) Pledged assets
(9) Significant commitments and contingencies
(10) Losses due to major disasters
(11) Significant subsequent events
(12) Other
(13) Other disclosures items
1)
Information on significant transactions
2)
Information on investees
3)
Information on investment in Mainland China
4)
Major shareholders
(14) Segment information
9
Statements of major accounting items

Page

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8～9
9～21
21
21～40
41～42
43
43
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43～44
45
45
46
47
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48～52

3-1

Independent Auditors’ Report

To the Board of Directors of 104 Corporation:

Opinion

We have audited the financial statements of 104 Corporation ("the Company"), which comprise the balance sheets as of December 31, 2020 and 2019, the statements of comprehensive income, changes in equity and cash flows for the years ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2020 and 2019, 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 audit in accordance with the "Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants" and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China ("the Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements taken as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Based on our judgement, the key audit matters that should be communicated in this audit report are as follows:

Revenue recognition

Please refer to note 4(12) for accounting policy related to revenue recognition, and note 6(14) for the disclosure related to revenue from contracts with customers of the financial statements.

3-2

Description of key audit matter:

The Company’s operating revenues is the main indicator for investors and management to assess their financial or business performance. Since the Company is a listed company, it has a high risk of false representation. Furthermore, revenue recognition is extremely important in preparing the financial statements of the Company. The Company’s operating revenues mainly derive from providing online advertising and consulting services, wherein they are recognized in the following different ways. Additionally, the Company often received its payments in advance after the contracts are signed; therefore, the amount is deferred according to the Company’s policy and recognized as revenue once the service is performed. The aforementioned matter is the basis for the Company’s management to determine the amount of revenue that can be recognized, therefore, revenue recognition was considered to be one of the key audit matters in our audit.

How the matter was addressed in our audit:

Our audit procedures included:

‧ Assessing and testing the design, as well as the effectiveness of the operating on the control over sales and collection cycle. Selecting appropriate samples and comparing them to relevant documents such as customer order and confirmation of completion order signed by customer to assess whether revenue and deferred revenue have been appropriately recognized.
‧ Performing comparison analysis on operating revenue of the current period to last period and the latest quarter to assess the existence of any significant exceptions, and further identify and analyze the reasons, if there is any significant exception.
‧ Performing test-of-detail on operating revenue to assess the assertions of existence and accuracy, as well as the appropriateness of recognition.
‧ Examining relevant documents of a period before and after the balance sheets date, such as customer order, information reported back from business department, or confirmation of completion of duty executed by customer, and verify the accuracy of the amount recognized as revenue in accordance with the timing of service provided or quantity provided to determine whether the deferred revenue should not be recognized as revenue and whether operating revenue has been appropriately recognized.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

3-3

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in 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 financial statements.

As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the 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.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the investments in other entities accounted for using the equity method to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the Company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

3-4

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements 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 of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Min-Ju Chao and Lily Lu.

KPMG

Taipei, Taiwan (Republic of China) February 25, 2021

Note to Readers

The accompanying financial statements are intended only to present the statement of financial position, financial performance and its cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such financial statements are those generally accepted and applied in the Republic of China.

(English Translation of Financial Statements and Report Originally Issued in Chinese)

104 CORPORATION

Balance Sheets

December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: Cash and cash equivalents (note 6(1)) Notes receivable, net (notes 6(3) and (14)) Accounts receivable, net (notes 6(3), (14) and 7) Other receivables (note 7) Other current financial assets (note 8) Other current assets, others Total current assets Non-current assets: Non-current financial assets at fair value through profit or loss (note 6(2)) Investments accounted for using equity method (note 6(4)) Property, plant and equipment (note 6(5)) Right-of-use assets (note 6(6)) Intangible assets (note 6(7)) Deferred tax assets (note 6(10)) Prepayments for business facilities Guarantee deposits paid Other non-current financial assets (note 8) Other non-current assets, others (note 6(3)) Total non-current assets Total assets	December 31, 2020 Amount % $ 2,122,517 81 161 - 57,256 2 14,428 1 - - 36,853 1 2,231,215 85 4,557 - 85,415 3 208,798 8 76,824 3 1,553 - 8,625 - 588 - 6,614 - 10,000 1 4,224 - 407,198 15 $ 2,638,413 100	Liabilities and Equity Current liabilities: Current contract liabilities (note 6(14)) Notes payable Accounts payable Other payables (notes 6(15) and 7) Current tax liabilities Current lease liabilities (note 6(8)) Other current liabilities, others Total current liabilities Non-current liabilities: Non-current lease liabilities (note 6(8)) Net defined benefit liability, non-current (note 6(9)) Total non-current liabilities Total liabilities Equity attributable to owners of parent (notes 6(9), (10), (11) and (12)) Common stock Capital surplus Retained earnings: Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity: Exchange differences on translation of foreign financial statements Total equity Total liabilities and equity December 31, 2019 Amount % 2,057,625 80 439 - 46,196 2 11,763 - 150 - 15,185 1 2,131,358 83 4,797 - 98,418 4 230,353 9 75,636 3 2,710 - 7,028 - 468 - 6,524 - 10,000 1 3,500 - 439,434 17 2,570,792 100	December 31, 2020 Amount % $ 590,204 22 54 - 1,849 - 392,913 15 44,948 2 32,891 1 58,119 2 1,120,978 42 44,734 2 12,611 1 57,345 3 1,178,323 45 331,907 13 397,574 15 378,199 14 6,121 - 351,628 13 735,948 27 ( 5,339) - 1,460,090 55 $ 2,638,413 100	December 31, 2019
				Amount % 510,893 20 121 - 2,316 - 384,333 15 46,072 2 29,255 1 50,920 2 1,023,910 40 47,004 2 9,180 - 56,184 2 1,080,094 42 331,907 13 397,574 15 378,199 15 4,051 - 385,088 15 767,338 30 ( 6,121) - 1,490,698 58 2,570,792 100

See accompanying notes to financial statements.

(English Translation of Financial Statements and Report Originally Issued in Chinese) 104 CORPORATION

Statements of Comprehensive Income

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

Operating revenue (note 6(14)) Operating costs (notes 6(5), (6), (7), (8), (9), (11), (12), (15) and 12) Gross profit Operating expenses (notes 6(3), (5), (6), (7), (8), (9), (11), (12), (15), 7 and 12): Selling expenses Administrative expenses Research and development expenses Total operating expenses Operating income Non-operating income and expenses (notes 6(5), (6), (7), (8), (9), (16), (17), (18), 7 and 12): Interest income Other income Other gains and losses Finance costs Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method Total non-operating income and expenses Income before income tax Less: income tax expenses (note 6(10)) Net income Other comprehensive income (loss): Items that will not be reclassified subsequently to profit or loss Remeasurements from defined benefit plans (note 6(9)) Less: income tax related to items that will not be reclassified subsequently to profit or loss (note 6(10)) Total items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign financial statements Less: income tax related to items that are or may be reclassified subsequently to profit or loss Total items that may be reclassified subsequently to profit or loss Other comprehensive loss Total comprehensive income Basic earnings per share (note 6(13)) Basic earnings per share Diluted earnings per share	2020	% 100 11 89 41 10 21 72 17 1 1 - - - 2 19 3 16 - - - - - - - 16 7.80 7.75	2019	% 100 10 90 40 10 22 72 18 1 2 ( 1 ) - 1 3 21 3 18 ( 1 ) - ( 1) - - - ( 1) 17 8.62 8.56
	Amount $1,619,820 180,923 1,438,897 666,014 161,245 344,472 1,171,731 267,166 11,055 24,827 ( 1,277 ) ( 1,084 ) 2,469 35,990 303,156 44,420 258,736 ( 5,028 ) ( 1,006) ( 4,022) 782 - 782 ( 3,240) $ 255,496 $ $		Amount 1,604,221 164,006 1,440,215 646,359 161,739 348,435 1,156,533 283,682 12,621 33,405 ( 19,346 ) ( 1,539 ) 21,586 46,727 330,409 44,408 286,001 ( 5,068 ) ( 1,014) ( 4,054) ( 2,070 ) - ( 2,070) ( 6,124) 279,877

See accompanying notes to financial statements.

(English Translation of Financial Statements and Report Originally Issued in Chinese) 104 CORPORATION

Statements of Changes in Equity

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

	Retained earnings	Retained earnings		Other equity interest	Other equity interest
				Exchange differences on translation of foreign financial statements ( 4,051 ) - - - (2,070 ) ( 2,070) - - - (6,121 ) - - - 782 782 (5,339)	Others ( 604) - - - - - 295 - 309 - - - - - -
Legal reserve 378,199 - - - - - - - - 378,199 - - - - - 378,199	Special reserve 2,941 1,110 - - - - - - - 4,051 2,070 - - - - 6,121	Unappropriated earnings 386,934 ( 1,110 ) (282,461 ) 286,001 (4,054 ) 281,947 ( 222 ) - - 385,088 (2,070 ) ( 286,104 ) 258,736 ( 4,022) 254,714 351,628	Total 768,074 - (282,461 ) 286,001 (4,054 )

			281,947 ( 222 ) - - 767,338 - ( 286,104 ) 258,736 ( 4,022) 254,714 735,948

See accompanying notes to financial statements.

(English Translation of Financial Statements and Report Originally Issued in Chinese) 104 CORPORATION

Statements of Cash Flows

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Income before tax Adjustments: Adjustments to reconcile profit: Depreciation expense Amortization expense Expected credit loss Interest expense Interest income Compensation cost of restricted employee shares Share of profit of subsidiaries, associates and joint ventures accounted for using equity method Loss (gain) on disposal of property, plant and equipment Loss on disposal of investments Unrealized foreign exchange loss Adjustments for restricted employee shares Loss from lease modifications Total adjustments to reconcile profit Changes in operating assets and liabilities: Net changes in operating assets: Notes receivable Accounts receivable Other receivable Other financial assets Other current assets Total net changes in operating assets Net changes in operating liabilities: Contract liabilities Notes payable Accounts payable Other payables Other current liabilities Net defined benefit liabilities Total net changes in operating liabilities Total net changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from operating activities Cash flows from (used in) investing activities: Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Decrease in other receivables Acquisition of intangible assets Increase in other non-current assets Increase in prepayments for business facilities Net cash flows used in investing activities Cash flows used in financing activities: Payment of lease liabilities Cash dividends paid Net cash flows used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	2020 $ 303,156 71,784 1,789 889 1,084 ( 11,055 ) - ( 2,469 ) 172 - 240 - - 62,434 278 ( 11,949 ) ( 2,945 ) 150 ( 21,668) ( 36,134 ) 79,311 ( 67 ) ( 467 ) 16,270 7,199 ( 1,597) 100,649 64,515 126,949 430,105 11,335 16,254 ( 1,084 ) ( 46,135) 410,475 ( 25,105 ) 198 ( 90 ) - ( 632 ) ( 724 ) ( 120) ( 26,473) ( 33,006 ) ( 286,104) ( 319,110) 64,892 2,057,625 $ 2,122,517	2019 330,409 77,692 2,068 1,069 1,539 ( 12,621 ) 309 ( 21,586 ) - 728 117 ( 222 ) 86 49,179 126 259 ( 1,638 ) - ( 666) ( 1,919) 68,750 ( 274 ) ( 3,702 ) 52,442 2,133 ( 1,554) 117,795 115,876 165,055 495,464 12,590 22,943 ( 1,539 ) ( 60,539) 468,919 ( 61,306 ) - ( 526 ) 11,372 ( 1,264 ) ( 3,500 ) ( 468) ( 55,692) ( 34,368 ) ( 282,461) ( 316,829) 96,398 1,961,227 2,057,625

See accompanying notes to financial statements.

(English Translation of Financial Statements and Report Originally Issued in Chinese)

104 CORPORATION

Notes to Financial Statements

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars, unless otherwise stated)

(1) Company history

104 Corporation (the "Company") was incorporated as a company limited by shares under the Company Act of the Republic of China in October 1993. The Company, formerly named Fu-Hwa International Market Development Consultant Ltd., was renamed 104 Corporation in August 2000. The Company is engaged in information technology, general advertising services, employment services and human resource consultancy.

(2) Approval date and procedures of the financial statements

These financial statements were authorized for issuance by the board of directors on February 25, 2021.

(3) New standards, amendments and interpretations adopted:

1) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.

The Company has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2020:

Amendments to IFRS 3 “Definition of a Business”
Amendments to IFRS 9, IAS39 and IFRS7 “Interest Rate Benchmark Reform”
Amendments to IAS 1 and IAS 8 “Definition of Material”
Amendments to IFRS 16 “COVID-19-Related Rent Concessions”
2) The impact of IFRS issued by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2021, would not have a significant impact on its financial statements:

Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
－
● Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform Phase 2”
3) The impact of IFRS issued by IASB but not yet endorsed by the FSC

(Continued)

104 CORPORATION

Notes to Financial Statements

The Company does not expect the following new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its financial statements:

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
－
● Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”
－
● Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”
Annual Improvements to IFRS Standards 2018-2020
Amendments to IFRS 3 “Reference to the Conceptual Framework”

(4) Summary of significant accounting policies

The significant accounting policies were applied consistently throughout the periods presented in these financial statements.

The significant accounting policies presented in the financial statements are summarized as follows:

1) Statement of compliance

These financial statements have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers".

2) Basis of preparation
Basis of measurement

Except for the following significant accounts, the financial statements have been prepared on a historical cost basis:

(A) Financial instruments measured at fair value through profit or loss are measured at fair value;
(B) The defined benefit liabilities are measured at fair value of the plan assets less, the present value of the defined benefit obligation, limited as explained in note 4(14).
Functional and presentation currency

The functional currency of each entity is determined based on the primary economic environment in which the entity operates. The financial statements are presented in New Taiwan dollars (NTD), which is the Company's functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(Continued)

104 CORPORATION

Notes to Financial Statements

3) Foreign currency

Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Company entities at the exchange rates at the dates of the transactions. At end of each subsequent reporting period monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date.

Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date when fair value was determined. Non-monetary items determined in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the translation.

2. Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the Company's functional currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Company disposes of any part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Company disposes of only part of investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, exchange differences arising from such items are considered to form part of a net investment in the foreign operation and are recognized in other comprehensive income, and presented in the translation reserve in equity.

4) Classification of current and non-current assets and liabilities

An asset is classified as current under one of the following criteria, and all other assets are classified as non-current.

It is expected to realize, or intended to be sold or consumed, during normal operating cycle;
It is held primarily for the purpose of trading;
It is expected to be realized within twelve months after the reporting period; or
The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

(Continued)

104 CORPORATION

Notes to Financial Statements

A liability is classified as current under one of the following criteria, and all other liabilities are classified as non-current.

The Company shall classify a liability as current when:

It is expected to be settled during normal operating cycle;
It is held primarily for the purpose of trading;
The liability is due to be settled within twelve months after the reporting period even if the liability has been refinanced as long-term loans or the payments have been rescheduled after the reporting period but before the approval from the board of directors; or
The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
5) Cash and cash equivalents

Cash and cash equivalents comprise checking deposits, demand deposits, time deposits and bonds purchased under resell agreements (hereinafter referred to as "RS bond"). Cash equivalents are short-term, highly liquid investments that are readily convertible to cash and which are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

6) Financial instruments

Trade receivable are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through profit of loss (FVTPL). Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

(A) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL：

‧ it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
‧ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(Continued)

104 CORPORATION

Notes to Financial Statements

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

(B) Fair value through profit or loss

All financial assets not classified as amortized cost as above are measured at FVTPL. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

The Company recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, notes and receivable, other receivables, refundable deposits and other financial assets).

Loss allowance for accounts receivable and notes receivable are always measured at an amount equal to lifetime expected credit loss (ECL). Loss allowances for other financial assets are considered reasonable and supportable information that is relevant and available (without undue cost or effort). This includes both quantitative and qualitative information and analysis, based on the Company's historical experience, informed credit assessment and including forward-looking information, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from possible default events of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from all possible default events over the expected life of a financial instrument.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

(Continued)

104 CORPORATION

Notes to Financial Statements

(D) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

2. Financial liabilities and equity instruments

(A) Equity instruments

Equity instruments refer to surplus equities of the assets after the deduction of all the debts for any contracts. Equity instruments issued are recognized as the amount of consideration received less the direct cost of issuing.

(B) Financial liabilities

Financial liabilities are those not classified as measured at FVTPL or designated as such on initial recognition (including accounts payable and other payables). Financial liabilities are measured at fair value and any directly attributable transaction costs allocated to the liability.

The financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

(D) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(Continued)

104 CORPORATION

Notes to Financial Statements

7) Investment in subsidiaries

When preparing the financial statements, investment in subsidiaries which are controlled by the Company is accounted for using the equity method. Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the subsidiary as well as the distribution received. The Company also recognized its share in the changes in the equity of subsidiaries. In subsidiaries which are controlled by the Company is accounted for preparing the statement by each period.

Changes in a parent’s ownership interest in a subsidiary that do not result in the loss of control are accounted for within equity.

8) Property, plant and equipment
Recognition and measurement

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Depreciation

The depreciable amount of an asset is determined after deducting its residual amount, and it shall be allocated on a straight-line basis over its useful life. The depreciation charge for each period shall be recognized in profit or loss.

Land is not depreciated.

The estimated useful lives of significant items of property, plant and equipment for the current and comparative years, are as follows:

Buildings	3 to 50 years
Computer equipment	2 to 5 years
Office equipment	3 to 4 years
Leasehold improvement	2 to 5 years
Transportation equipment	3 years
Other equipment	2 to 5 years

Depreciation methods, useful lives, and residual values are reviewed at each reporting date. If expectations differ from the previous estimates, the change is recorded for as a change in accounting estimate.

(Continued)

104 CORPORATION

Notes to Financial Statements

9) Lease

Identifying a lease

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(A) the contract involves the use of an identified asset this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; and
(B) the customer has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
(C) The customer has the right to the direct use of its asset if either：
- ‧ the customer has the right to direct how and for what purpose the asset is used throughout the period of use; or
- ‧ the relevant decisions about how and for what purpose the asset is used are predetermined and:
  - － the customer has the right to operate its asset, wherein the providers do not have the right to change; or
  - － the customer designed the asset in a way that predetermines how, and for what purpose, it will be used.
As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

(Continued)

104 CORPORATION

Notes to Financial Statements

Lease payments included in the measurement of the lease liability comprise the following:

(A) fixed payments, including in-substance fixed payments;
(B) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
(C) amounts expected to be payable under a residual value guarantee; and
(D) payments or penalties for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

(A) there is a change in future lease payments arising from the change in an index or rate; or
(B) there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or
(C) there is a change in the Company’s evaluation of purchase options; or
(D) there is a change of its assessment on whether it will exercise an extension or termination option; or
(E) there is any modifications.

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Company presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the balance sheets.

If an arrangement contains lease and non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the Company has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases offices and parking spaces. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(Continued)

104 CORPORATION

Notes to Financial Statements

10) Intangible assets

Intangible assets that are acquired by the Company and have finite useful lives are measured at cost, less accumulated amortization and any accumulated impairment losses.

Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the finite economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

Amortization

The amortizable amount is the cost of an asset, or other amount substituted for cost, less its residual value.

Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of the intangible assets from the date that they are available for use. The estimated useful life of computer software is 1~3 years.

The residual value, amortization period, and amortization method for an intangible asset with a finite useful life shall be reviewed each reporting date and adjusted if appropriate.

11) Impairment non-derivative financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than deferred tax assets and assets due from employee benefits) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss.

12) Recognition of Revenue

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Company's main types of revenue are explained below.

(Continued)

104 CORPORATION

Notes to Financial Statements

Online advertising and consulting service

The Company provides online advertising and consulting services to enterprises and recognizes its revenue in the accounting period in which service is performed. Part of fixed-price online advertising service contracts which service is provided with specified quantity over a fixed period of time or for services with undefined quantity. Revenue is recognized on the percentage of services to be performed on the reporting date as total services.

Part of fixed-price consulting service contracts include software licensing, customized services and other relevant services. Software licensing and customized services are two single performance obligations, wherein their transaction prices are allocated to each performance obligation on a relative stand-alone selling price basis. At the beginning of the contract, management estimates the stand-alone selling price based on the type of software to be provided and the observable price for providing similar services to similar customers under similar circumstances. If any, the discount is allocated to each performance obligation on a relative stand-alone selling price basis. Software licensing revenue is recognized after the controlling right of software has been transferred. Customized service revenue is recognized on the percentage of services performed to date as total services to be performed during the period of contract.

Under fixed-price contracts, customer pay the fixed amount according to the agreed payment terms. The payment excesses the services be performed as a contract liability.

2. Financing components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

13) Government grants

The Company recognizes an unconditional government grant related to the business in profit or loss as other income when the grant becomes receivable. Grants that compensate the Company for expenses or losses incurred are recognized in profit or loss on a systematic basis in the periods in which the expenses or losses are recognized.

14) Employee benefits
Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available.

Defined benefit plans

The Company's net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value and deducting the fair value of any plan assets.

(Continued)

104 CORPORATION

Notes to Financial Statements

The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Company, the recognized asset is limited to the total of any unrecognized past service costs and the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

3. Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

15) Share-based payment

The grant-date fair value of share-based payment awards granted to employees is recognized as employee expenses, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.

For share-based payment awards with non-vesting conditions, the grant-date fair value of the share-based payment is measured to reflect such conditions, and there is no true-up for differences between expected and actual outcomes.

Grant date of a share-based payment award is the date which the board of directors authorized the price and number of a new award.

16) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes shall be recognized in profit or loss.

(Continued)

104 CORPORATION

Notes to Financial Statements

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes shall not be recognized for the exceptions below:

Temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;
Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
Taxable temporary differences arising on the initial recognition of goodwill.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

The Company has a legally enforceable right to set off current tax assets against current tax liabilities; and
The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:
(A) the same taxable entity; or
(B) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets should be recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profit will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date, and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

17) Earnings per share

The Company discloses the Company's basic and diluted earnings per share attributable to ordinary shareholders of the Company. The calculation of basic earnings per share is the profit attributable to the ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding. The calculation of diluted earnings per share is the profit attributable to ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares, such as restricted employee shares and employee remuneration.

(Continued)

104 CORPORATION

Notes to Financial Statements

18) Segment information

The Company discloses its information on operating segments in its consolidated financial statements, so it need not disclose such information in the financial statements.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

The preparation of the financial statements in conformity with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Management continues to monitor the accounting estimates and assumptions. Management recognizes any changes in the accounting estimates during the period and the impact of the changes in the accounting estimates in the next period.

There are no critical judgments in applying accounting policies that have significant effect on the amounts recognized in the financial statements.

For the assumptions and estimation uncertainties, there were no significant risk resulting in a material adjustment within the next financial year.

(6) Explanation of significant accounts

1) Cash and cash equivalents

Cash Checking deposits Demand deposits Time deposits Cash equivalents－RS bond Cash and cash equivalents in the statement of cash flows	December 31, 2020 $ 34 2,709 171,623 1,898,151 50,000 $ 2,122,517	December 31, 2019
		2 2,750 112,213 1,839,660 103,000
		2,057,625

Please refer to note 6(19) for the disclosure of the interest rate risk of the financial assets and liabilities of the Company.

2) Financial assets at fair value through profit or loss

Mandatorily measured at fair value through profit or loss －non-current Private fund	December 31, 2020 $ 4,557	December 31, 2019
		4,797

(Continued)

104 CORPORATION

Notes to Financial Statements

3) Notes and accounts receivable and overdue receivables

Notes receivable Accounts receivable Overdue receivable (recorded under other non-current assets) Less: Allowance for doubtful accounts－accounts receivable Allowance for doubtful accounts－overdue receivable (recorded under other non-current assets)	December 31, 2020 $ 161 57,256 - - - $ 57,417		December 31, 2019
			439 46,232 193 (36) (193)
			46,635

The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, notes, accounts and overdue receivable have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information.

The loss allowance provision was determined as follows:

December 31, 2020	December 31, 2020
Gross carrying amount Weighted average loss rate (%) $ 57,417 - December 31, 2019		Lifetime expected credit loss allowance -

Gross carrying amount $ 46,671 193 $ 46,864	Weighted average loss rate (%) 0.08 100.00	Lifetime expected credit loss allowance 36 193 229

(Continued)

104 CORPORATION

Notes to Financial Statements

The movement in the allowance for notes, accounts and overdue receivable were as follows:

Balance on January 1 Impairment losses recognized Amounts written off Accounts recovered Balance on December 31	2020 $ 229 889 (1,176) 58 $ -	2019
		276 1,069 (1,166) 50 229

The Company does not hold any collateral for collectible amounts.

4) Investments accounted for under the equity method

The details of the investments accounted for under the equity method at the reporting date were as follows:

follows:
Subsidiaries	December 31, 2020 $ 85,415	December 31, 2019
		98,418

For other related information, please refer to the consolidated financial statements for the year ended December 31, 2020.

As of December 31, 2020 and 2019, the Company did not pledge any collateral on investments accounted for under the equity method.

5) Property, plant and equipment

Movement of the cost, depreciation, and impairment loss of the property, plant and equipment of the Company for the years ended December 31, 2020 and 2019, were as follows:

Cost or deemed cost: January 1, 2020 Additions Disposals December 31, 2020 January 1, 2019 Additions Disposals Reclassifications December 31, 2019 Depreciation and impairment loss: January 1, 2020 Depreciation Disposals December 31, 2020 January 1, 2019 Depreciation Disposals December 31, 2019 Carrying amount: December 31, 2020 December 31, 2019 January 1, 2019	Land	Buildings 75,782 999 - 76,781 75,782 - - - 75,782 36,688 3,230 - 39,918 33,434 3,254 - 36,688 36,863 39,094 42,348	Computer equipment 363,335 14,033 (13,901) 363,467 347,618 19,225 (3,606) 98 363,335 294,553 29,220 (13,881) 309,892 265,453 32,706 (3,606) 294,553 53,575 68,782 82,165	Office equipment 4,820 - - 4,820 3,070 1,750 - - 4,820 3,236 583 - 3,819 3,070 166 - 3,236 1,001 1,584 -	Leasehold improvement 53,391 1,367 (625) 54,133 45,616 5,470 - 2,305 53,391 40,873 3,628 (275) 44,226 36,308 4,565 - 40,873 9,907 12,518 9,308	Transportation equipment 523 - (523) - 523 - - - 523 523 - (523) - 523 - - 523 - - -	Other equipment 29,996 1,016 (4,048) 26,964 29,798 529 (331) - 29,996 25,183 1,939 (4,048) 23,074 23,418 2,096 (331) 25,183 3,890 4,813 6,380	Unfinished construction - - - - - 2,403 - (2,403) - - - - - - - - - - - -	Total 631,409 17,415 (19,097) 629,727 605,969 29,377 (3,937) - 631,409 401,056 38,600 (18,727) 420,929 362,206 42,787 (3,937) 401,056 208,798 230,353 243,763
	$ 103,562 - - $ 103,562 $ 103,562 - - - $ 103,562 $ - - - $ - $ - - - $ - $ 103,562 $ 103,562 $ 103,562

(Continued)

104 CORPORATION

Notes to Financial Statements

6) Right-of-use assets

The movement of the cost and depreciation of the right of use assets of the Company for 2020 and 2019 were as follows:

Cost: Balance at January 1, 2020 Addition Disposal (modification of contract) Balance at December 31, 2020 Balance at January 1, 2019 Adjustment on transition to new standards Balance of retrospective application at January 1, 2019 Addition Disposal (modification and early termination of contract) Balance at December 31, 2019 Depreciation Balance at January 1, 2020 Depreciation Balance at December 31, 2020 Balance at January 1, 2019 Depreciation Disposal (modification and early termination of contract) Balance at December 31, 2019 Carrying amount: Balance at December 31, 2020 Balance at December 31, 2019	Building $ 104,351 33,282 (64) $ 137,569 $ - 101,309 101,309 19,431 (16,389) $ 104,351 $ 32,061 31,204 $ 63,265 $ - 33,003 (942) $ 32,061 $ 74,304 $ 72,290	Transportation equipment 5,102 1,154 - 6,256 - 5,123 5,123 435 (456) 5,102 1,756 1,980 3,736 - 1,902 (146) 1,756 2,520 3,346	Total 109,453 34,436 (64) 143,825 - 106,432 106,432 19,866 (16,845) 109,453 33,817 33,184 67,001 - 34,905 (1,088) 33,817 76,824 75,636

(Continued)

104 CORPORATION

Notes to Financial Statements

7) Intangible assets

The cost, amortization and impairment of the intangible assets of the intangible assets of the Company for the years ended December 31, 2020 and 2019, were as follows:

Costs: Balance on January 1, 2020 Additions Balance on December 31, 2020 Balance on January 1, 2019 Additions Balance on December 31, 2019 Amortization and impairment loss: Balance on January 1, 2020 Amortization for the year Balance on December 31, 2020 Balance on January 1, 2019 Amortization for the year Balance on December 31, 2019 Carrying amount: Balance on December 31, 2020 Balance on December 31, 2019 Balance on January 1, 2019	Software $ 97,698 632
	$ 98,330
	$ 96,434 1,264
	$ 97,698
	$ 94,988 1,789
	$ 96,777
	$ 92,920 2,068
	$ 94,988
	$ 1,553
	$ 2,710
	$ 3,514

The amortization of intangible assets in 2020 and 2019 was recorded as expenses under the following categories in the statements of comprehensive income:

Operating costs Operating expenses Non-operating expenses	2020 $ 782 $ 1,005 $ 2	2019
		874 1,190 4

(Continued)

104 CORPORATION

Notes to Financial Statements

8) Lease liabilities

Lease liabilities of the Company recognized were as follows:

Lease liabilities of the Company recognized were as follows:
Current Non-current	December 31, 2020	December 31, 2019
	$ 32,891 $ 44,734	29,255 47,004

Please refer to note 6(19) financial instruments for the maturity information.

The amount under profit and loss was as follows:

The amount under profit and loss was as follows:
Interest expense of lease liabilities Short term lease	2020	2019
	$ 1,084 $ 1,405	1,539 2,015

The amounts recognized in the statement of cash flows for the Company was as follows:

Total cash flows used in operating activities Total cash flows used in financing activities Total cash flows	2020	2019
	$ 2,489 33,006 $ 35,495	3,554 34,368 37,922

1. Lease of buildings

The Company leased buildings as office. The rental periods were 2 to 5 years. The options to extend the rental period as the original leasing period were included in the leasing periods for some of the lease.

2. Other lease

The rental periods of transportation were 2 to 5 years.

Meanwhile, for office and parking lots with the rental periods of within one year, the Company recognized those under exemption for short term leases, without recognizing the right of use and lease liabilities.

9) Employee benefits

1. Defined benefit plans

Reconciliation of defined benefit obligations at present value and plan assets at fair value were as follows:

follows:
Present value of the defined benefit obligations Fair value of plan assets Net defined benefit liability	December 31, 2020 $ 66,838 (54,227) $ 12,611	December 31, 2019
		59,677 (50,497) 9,180

(Continued)

104 CORPORATION

Notes to Financial Statements

The Company makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. Plans (covered by the Labor Standards Act) entitle a retired employee to receive retirement benefits based on years of service and average monthly salary for the six months prior to retirement.

(A) Composition of plan assets

The Company allocates pension funds in accordance with the "Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund", and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Company's Bank of Taiwan labor pension reserve account balance amounted to $54,227 thousand as of December 31, 2020. For information on the utilization of the labor pension fund assets including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(B) Movements in present value of the defined benefit obligations

The movements in present value of the defined benefit obligations for the Company were as follows:

Defined benefit obligation at January 1 Current service costs and interest Remeasurement of the net defined benefit liability －Actuarial loss arising from experience adjustments －Actuarial gains and losses arising from changes in financial assumptions Defined benefit obligation at December 31	2020 $ 59,677 418 3,262 3,481 $ 66,838	2019
		52,459 577 3,385 3,256 59,677

The movements in fair value of plan assets for the Company were as follows:

Fair value of plan assets at January 1 Interest income Remeasurements of net defined benefit asset– the return on plan assets (excluding amounts included in the interest during this period) Contributions made Fair value of plan assets at December 31	2020 $ 50,497 354 1,715 1,661 $ 54,227	2019
		46,793 515 1,573 1,616
		50,497

(Continued)

104 CORPORATION

Notes to Financial Statements

(D) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Company were as follows:

Net interest on the defined benefit liability (assets) Operating costs Selling expenses Administrative expenses Research and development expenses	2020 $ 64 $ 5 32 14 13 $ 64	2019
		62
		5 30 14 13
		62

(E) Remeasurements of the net defined benefit liability recognized under other comprehensive income

The Company's remeasurements of the net defined benefit liability recognized in other comprehensive income in 2020 and 2019 were as follows:

Cumulative amount at 1 January Recognition during the year Cumulative amount at 31 December	2020 $ (7,595) (5,028) $ (12,623)	2019 (2,527) (5,068) (7,595)

(F) Actuarial assumptions

The significant actuarial assumptions at the reporting date were as follows:

Discount rate Future salary increases rate	December 31, 2020 0.30% 3.50%	December 31, 2019 0.70% 3.50%

The expected contribution to be made by the Company to the defined benefit plans for the next annual reporting period is $1,666 thousand.

The weighted-average duration of the Company's defined benefit plans is 14 years.

(G) Sensitivity analysis

When calculating the present value of the defined benefit obligations, the Company uses judgments and estimations to determine the actuarial assumptions, including discount rates and future salary changes, as of the balance sheet date. Any changes in the actuarial assumptions may significantly impact the amount of the defined benefit obligations.

(Continued)

104 CORPORATION

Notes to Financial Statements

As of December 31, 2020 and 2019, the effect of changes in principal actuarial assumptions on the present value of the defined benefit obligations were as follows:

At December 31, 2020 Discount rate Future salary increase rate At December 31, 2019 Discount rate Future salary increase rate	Effect on defined benefit obligation Increase 0.25% Decrease 0.25% (2,203) 2,297 2,053 (1,985) (2,061) 2,152 1,939 (1,871)
	Increase 0.25% (2,203) 2,053 (2,061) 1,939

The above sensitivity analysis is based on the effect of changes in a single assumption under the condition that other assumptions remain constant. In practice, many changes in assumptions may be linked together. The method used for the sensitivity analysis and calculation of the net defined benefit liability are the same.

2. Defined contribution plans

The Company allocates 6% of each employee's monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The Company's pension costs under the defined contribution method were $38,854 thousand and $35,828 thousand for 2020 and 2019, respectively.

10) Income taxes

The components of income tax expense (benefit) for 2020 and 2019 were as follows:

Current tax expense (benefit) Current period Adjustment for prior periods 10% surtax on unappropriated retained earnings Deferred tax expense (benefit) Origination and reversal of temporary differences Income tax expense	2020 $ 58,309 (13,298) - 45,011 (591) $ 44,420	2019
		62,341 (17,694) 102 44,749 (341) 44,408

(Continued)

104 CORPORATION

Notes to Financial Statements

The amount of income tax benefit recognized in other comprehensive income (loss) for 2020 and 2019 were as follows:

2019 were as follows:
		2020	2019
Items that will not be reclassified subsequently to
profit or loss
Remeasurements of defined benefit plans	$	1,006	1,014
Reconciliation of income tax and profit before tax for 2020		and 2019 were as follows:
		2020	2019
Income before income tax	$	303,156	330,409
Income tax using the Company's domestic tax rate	$	60,631	66,082
Effect of tax rates in foreign jurisdictions		59	90
Non-deductible expenses		(494)	(4,317)
Adjustment for prior periods		(13,298)	(17,694)
10% surtax on unappropriated retained earnings		-	102
Investment tax credit		(2,478)	-
Others		-	145
Total	$	44,420	44,408

Deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for 2020 and 2019 were as follows:

Deferred tax assets:

Balance at January 1, 2020 Recognized in profit or loss Recognized in other comprehensive income Balance at December 31, 2020 Balance at January 1, 2019 Recognized in profit or loss Recognized in other comprehensive income Balance at December 31, 2019	Defined benefit plans	Cumulative compensated absences 5,042 987 - 6,029 4,540 502 - 5,042	Others 150 (77) - 73 - 150 - 150	Total 7,028 591 1,006 8,625 5,673 341 1,014 7,028
	$ 1,836 (319) 1,006 $ 2,523 $ 1,133 (311) 1,014 $ 1,836

Assessment of tax

The R.O.C. income tax authorities have examined and approved the Company's income tax returns through 2018.

(Continued)

104 CORPORATION

Notes to Financial Statements

11) Share capital and other equity

As of December 31, 2020 and 2019, the total value of nominal ordinary shares amounted to $500,000 thousand. Par value of each share is $10 (dollars), and in total, there are 50,000 thousand authorized ordinary shares, of which 33,190 thousand shares were issued.

Reconciliation of shares outstanding and issued for 2020 and 2019 were as follows:

Balance of shares outstanding at January 1 Granted of restricted employee shares Balance of shares outstanding at December 31 Balance of restricted employee shares at January 1 Granted of restricted employee shares Cancellation of restricted employee shares Balance of restricted employee shares at December 31 Balance of shares issued at December 31 Capital surplus The details of capital surplus were as follows: Paid-in capital in excess of par value		Unit: Thousand shares 2020 2019 33,190 33,172 - 18 33,190 33,190 - 19 - (18) - (1) - - 33,190 33,190 December 31, 2020 December 31, 2019 397,574 397,574	Unit: Thousand shares 2020 2019 33,190 33,172 - 18 33,190 33,190 - 19 - (18) - (1) - - 33,190 33,190 December 31, 2020 December 31, 2019 397,574 397,574	Unit: Thousand shares 2020 2019 33,190 33,172 - 18 33,190 33,190 - 19 - (18) - (1) - - 33,190 33,190 December 31, 2020 December 31, 2019 397,574 397,574
	$	397,574		397,574

Capital surplus

In accordance with the Company Act, realized capital reserves can only be reclassified as share capital or distributed as cash dividends after offsetting losses. The aforementioned capital reserves include share premiums and donation gains. In accordance with the Securities Offering and Issuance Guidelines, the amount of capital reserves to be reclassified under share capital shall not exceed 10 percent of the actual share capital amount.

Retained earnings

The Company's article of incorporation stipulates that Company's after-tax earnings should first be used to offset the prior years' deficits, if any. Of the remaining balance, 10% is to be appropriated as legal reserve until the balance of the legal reserve equals the total authorized capital and then remaining undistributed earnings shall be distributed according to a resolution of the shareholders' meeting.

When a company incurs no loss, it may, pursuant to a resolution to be adopted by a shareholders' meeting, distribute its legal reserve by issuing new shares or by distributing cash, only the portion of legal reserve which exceeds 25% of the capital may be distributed.

The aforesaid earning distribution shall be formulated by the board of directors and forward to the shareholder's meeting for approval by a resolution.

(Continued)

104 CORPORATION

Notes to Financial Statements

In accordance with the dividend policy of the Company's article of incorporation, the Company shall take into consideration its operating environment, industry developments, and the future capital needs and long-term financial plan, the Company adopts a stable dividends policy. As the Company is in its growth phase, business expansion and capital needs over next few years, therefore, the Company should distribute the undistributed earnings in the form of shares or in cash. The cash dividends shall not be less than 10% of total dividends. However, distribution of earnings shall be made in view of the year's earnings and financial condition, and adjusted in the shareholders' meeting.

(A) Special reserve

In accordance with Ruling No. 1010012865 issued by the FSC on April 6, 2012, a portion of the current-period earnings and undistributed prior-period earnings shall be reclassified as special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders' equity. Similarly, a portion of undistributed prior-period earnings (which does not qualify for earnings distribution) shall be reclassified as special earnings reserve to account for the cumulative changes to other shareholders' equity pertaining to prior periods. The amounts of subsequent reversals pertaining to the net reduction of other shareholders' equity shall qualify for additional distributions. The carrying amount of special reserve amounted to $6,121 thousand, and $4,051 thousand as of December 31, 2020 and 2019.

According to the Cheng Chi (Shen) No. 1010051600 released on November 21, 2012, special reserve is not required to provide although the unvested compensation cost of restricted employee shares is presented separately as a deduction item under “others” of equity attributable to owners of parent on balance sheets, which does not belong to unrealized gain or loss items.

(B) Earning distribution

Earnings distribution for 2020 was decided via the board meeting held on February 25, 2021. The Company decided to distribute a cash dividend of $7.80 (dollars) per share, totaling $258,887 thousand.

Earnings distribution for 2019 was decided via the general meeting of shareholders held on May 28, 2020. The Company decided to distribute a cash dividend of $8.62 (dollars) per share, totaling $286,104 thousand.

Earnings distribution for 2018 was decided via the general meeting of shareholders held on May 29, 2019. The Company decided to distribute a cash dividend of $8.51 (dollars) per share, totaling $282,461 thousand.

The employee restricted shares are not required to be repaid according to the Company's agreement with employees. For the year 2019, the amount adjusted to remuneration expense after considering the employee turnover rate was $222 thousand, recognized as operating costs and expenses.

The related information about the aforementioned earnings distribution is available on the Market Observation Post System website.

(Continued)

104 CORPORATION

Notes to Financial Statements

－
12) Other share-based payment arrangement restricted employee shares

The Company decided to issue the first restricted employee shares of 2016 with consideration of attracting and retaining talented people based on the resolution approved at the shareholders' meeting held on June 7, 2016. Conditions for restricted employee shares are as follows:

The proposed 2016 restricted employee shares will issue 273 thousand shares, with a par value of 10 dollars per share, totaling $2,730 thousand.
Issuance price: to issue new shares to employees gratuitously without any charges.
Shares can be issued in whole or in parts within 1 year after the effective registration with the authority.
Vesting condition: If the qualified employee is still in service at the following time points, the employee's yearly personal performance is above grade A and did not violate any law, labor contract, working rules, and employee code of conduct of the Company, the proportion of shares granted by each vesting condition will be as follows from the time an employee is granted the restricted stock:
(A) 1/3 of the restricted employee shares are vested in year 1 after the grant date
(B) 1/3 of the restricted employee shares are vested in year 2 after the grant date
(C) 1/3 of the restricted employee shares are vested in year 3 after the grant date
If the granted restricted employee shares cannot be vested by dividing into three years, then they should be calculated based on higher portion for the former and lower portion for the latter basis.

The restricted employee shares mentioned above were registered with and approved by the Securities and Futures Bureau of the Financial Supervisory Commission, R.O.C., on August 1, 2016.

The Company decided to issue 125 thousand first restricted shares in 2016 during the board meeting held on August 11, 2016, with the board resolution date as the record date, at a fair value of $137 (dollars) per share. All shares have been issued, and the Company has completed the registration process.

The resolution was approved during the board of directors' meeting held on August 14, 2019, for the cancellation of 1 thousand unvested shares; wherein the registration had been completed.

Compensation costs of the aforementioned restricted employee shares amounted to $309 thousand were recognized as operating costs and expenses in 2019, and the amounts adjusted to capital surplus after considering the estimated employee turnover rate is $295 thousand, and the amounts adjusted to other equity-other is $295 thousand.

(Continued)

104 CORPORATION

Notes to Financial Statements

13) Earnings per share

The calculation of basic and diluted earnings per share in 2020 and 2019 were as follows:

Basic EPS: Net income $ Weighted-average number of common shares outstanding (thousand shares) Basic EPS (New Taiwan dollars) $ Diluted EPS: Net income $ Weighted-average number of common shares outstanding (thousand shares) Effect of potentially dilutive common stock Employees' compensation Restricted employee shares Weighted-average number of common shares outstanding－diluted (thousand shares) Diluted EPS (New Taiwan dollars) $ 14) Revenue from contracts with customers 1. The details of revenue were as follows: Primary geographical markets: Taiwan Other countries Primary services: Online and consultation services 2. Contract balances December 31, 2020 Notes receivable $ 161 Accounts receivable 57,256 Less: Allowance for impairment - Total $ 57,417 Contract liabilities－rendering of services $ 590,204		2020 258,736 33,190 7.80 258,736 33,190 207 - 33,397 7.75 2020	2019
	$		286,001 33,179 8.62 286,001 33,179 226 12 33,417 8.56 2019 1,597,111 7,110 1,604,221 1,604,221 January 1, 2019 565 47,548 ) (24) 48,089 442,143

	$
	$


	$
		$ 1,617,795 2,025
		$ 1,619,820
		$ 1,619,820
		December 31, 2019
		439 46,232 (36
$ 57,417 $ 590,204		46,635
		510,893

(Continued)

104 CORPORATION

Notes to Financial Statements

The amount of revenue recognized for the years ended December 31, 2020 and 2019 that was included in the contract liability balance at the beginning of the period were $404,931 thousand and $372,962 thousand, respectively.

For details on trade receivables and allowance for impairment, please refer to note6(3).

15) Employees' compensation and remunerations of directors and supervisors

In accordance with the Articles of incorporation, if the Company operates at a profit (the profit so-called is pre-tax profit before deducting employees' compensation and remunerations of directors and supervisors) it shall contribute 8%-15% of profit as employees' compensation and remunerations of directors and supervisors no more than 3%. However, any losses accumulated by the corporation to date shall be paid off first.

The employees' compensation in the preceding paragraph shall be distributed in the form of shares or in cash and object of payment includes the employees of subsidiaries of the corporation meeting certain specific requirements.

For the years ended December 31, 2020 and 2019, the Company estimated its employees' compensation to be $27,867 and $30,372 thousand, respectively, and the remuneration of directors and supervisors to be $6,756 and $7,363 thousand, respectively. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees, directors and supervisors of each period, multiplied by the percentage of remuneration to employees, directors and supervisors as specified in the Company's Articles. These remunerations were expensed under operating costs or operating expenses of current year. If there are any subsequent adjustments to the actual remuneration amounts, the adjustment will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year. If the employees' compensation is paid by the Company's stock, the numbers of shares to be distributed were calculated based on the closing price of the Company's ordinary shares, one day before the date of the meeting of board of directors. The related information is available on the Market Observation Post System website. There is no difference between the actual amount distributed as employees' compensation and remunerations of directors and supervisors and the estimated amount recognized in the financial statements for the years ended December 31, 2020 and 2019.

16) Other income
Interest income

1. Interest income
Deposit interest 2. Other income Rental income Service support and asset authorization income Miscellaneous income		2020 $ 11,055 2020 $ 276 16,491 8,060 $ 24,827	2019 12,621 2019
			617 12,524 20,264 33,405

(Continued)

104 CORPORATION

Notes to Financial Statements

17) Other gains and losses

The details of other gains and losses were as follows:

Gains (Loss) on disposal of property, plant and equipment Loss on disposal of investment Loss from lease modification Net foreign exchange (losses) gains Other Other gains and losses 18) Financial cost The details of financial cost were as follows: Lease liabilities interest expenses 19) Financial instruments 1. Categories of financial instruments (A) Financial liabilities Financial assets at amortized cost: Cash and cash equivalents Notes and accounts receivable Other receivables Other current financial assets Refundable deposits Other non-current financial assets Total (B) Financial liabilities Financial liabilities at amortized cost： Notes and accounts payable Other payables Lease liabilities Total		2020 $ (172) - - (250) - (855) $ (1,277) 2020 $ 1,084 December 31, 2020 $ 2,122,517 57,417 14,428 - 6,614 10,000 $ 2,210,976 December 31, 2020 $ 1,903 392,913 77,625 $ 472,441	2020 $ (172) - - (250) - (855) $ (1,277) 2020 $ 1,084 December 31, 2020 $ 2,122,517 57,417 14,428 - 6,614 10,000 $ 2,210,976 December 31, 2020 $ 1,903 392,913 77,625 $ 472,441	2020 $ (172) - - (250) - (855) $ (1,277) 2020 $ 1,084 December 31, 2020 $ 2,122,517 57,417 14,428 - 6,614 10,000 $ 2,210,976 December 31, 2020 $ 1,903 392,913 77,625 $ 472,441	2019 - (728) (86) (17) (18,515) - (19,346) 2019
					1,539 December 31, 2019 2,057,625 46,635 11,763 150 6,524 10,000 2,132,697 December 31, 2019 2,437 90,214 76,259 168,910

(Continued)

104 CORPORATION

Notes to Financial Statements

2. Liquidity risk

The following table shows the contractual maturity of the financial liabilities excluding estimated interest:

December 31, 2020 Non-derivative financial liabilities Notes and accounts payable Other payables Lease liabilities December 31, 2019 Non-derivative financial liabilities Notes and accounts payable Other payables Lease liabilities	Carrying amount $ 1,903 392,913 77,625 $ 472,441 $ 2,437 90,214 76,259 $ 168,910	Contract ual cash flows 1,903 392,913 77,625 472,441 2,437 90,214 76,259 168,910	Within 1 years 1,903 392,913 32,891 427,707 2,437 90,214 29,255 121,906	1-5 years - - 44,734 44,734 - - 47,004 47,004	Over 5 years
					- - - - - - - -

The Company does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

3. Interest rate analysis

Please refer to the financial risk management for the disclosure on the interest rate risk.

Fair value of financial instruments
(A) Fair value hierarchy

The fair value of financial assets and liabilities at fair value through profit or loss, financial instruments used for financial assets at fair value through other comprehensive income is measured on a recurring basis. The carrying amount and fair value of the Company's financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and disclosure of fair value information is not required:

(Continued)

104 CORPORATION

Notes to Financial Statements

==> picture [409 x 188] intentionally omitted <==

----- Start of picture text -----

December 31, 2020
Fair value
Level 1 Level 2 Level 3 Total
Financial assets at fair value
－
through profit or loss
non-current
Private fund $ - - 4,557 4,557
December 31, 2019
Fair value
Level 1 Level 2 Level 3 Total
Financial assets at fair value
－
through profit or loss
non-current
Private fund $ - - 4,797 4,797
----- End of picture text -----

(B) Reconciliation of Level 3 fair values

Name						2020
	O	pening balance $ 4,797	In profit or loss (240)	In other comprehensiv e income -		Increase	From Level 3 of financial liability transfer to Level 3 of financial assets -		Decrease	From Level 3 of financial assets of financial liability -	Ending balance
					Purchased or issued -	Transfers in of Level 3 - 2019		Sale or disposal -	Transfers out of Level 3 -
Financial assets at fair value through profit or loss－private fund Name											4,557

	O	pening balance $ 4,914	In profit or loss (117)	In other comprehensiv e income -		Increase	From Level 3 of financial liability transfer to Level 3 of financial assets -		Decrease	From Level 3 of financial assets of financial liability -	Ending balance
					Purchased or issued -	Transfers in of Level 3 -		Sale or disposal -	Transfers out of Level 3 -
Financial assets at fair value through profit or loss－private fund											4,797

The Company's financial instruments that use Level 3 inputs to measure fair value is – financial assets at fair value through profit or loss Private fund.

Quantified information of significant unobservable inputs was as follows:

Inter-relationship between significant Valuation Significant unobservable inputs and Item technique unobservable inputs fair value measurement Financial assets at Net Asset Value ‧Net Asset Value The estimated fair value fair value through Method would increase as the net – profit or loss asset value increases Private fund

(Continued)

104 CORPORATION

Notes to Financial Statements

20) Financial risk management

Overview

The Company has exposure to the following risks arising from financial instruments:

(A) Credit risk.
(B) Liquidity risk.
(C) Market risk.

This note presents information about the Company's exposure to each of the above risks and the objectives, policies, and processes for measuring and managing risk. Please see other related notes for quantitative information.

Risk management framework

The board of directors has the overall responsibility for the establishment and oversight of the risk management framework.

The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company's Supervisor is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the board of directors and the Supervisor.

3. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's notes and accounts receivable, other receivables, refundable deposits, etc.

(A) Cash and cash equivalents

The Company's bank deposits are in different financial institutions with good credit. The Company controls its credit risk for each financial institution and believes that the Company's bank deposits will not have any significant credit risk.

(B) Receivables and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the demographics of the Company's customer base, including the information of past trading experience with customer and adjust the transaction credit limits.

(Continued)

104 CORPORATION

Notes to Financial Statements

The board of directors and management have established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company's standard payment and delivery terms and conditions are offered. The Company's review includes external ratings (when available), and in some cases, bank references. Credit limits are established for each customer. Customers that fail to meet the Company's benchmark creditworthiness may transact with the Company only on a prepayment basis or basic credit limits.

4. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it always has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

5. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates prices, will cause the Company suffer possible loss for related transaction.

The Company maintains its foreign currency within a level sufficient to meet the operational needs so as to manage exchange rate risk. The Company's financial assets exposed to changes in fair value caused by interest rate fluctuation are bank deposits. Nevertheless, the interest rate is not volatile enough to affect the Company's operations.

21) Capital management

The Board's policy is to maintain a strong capital base in order to maintain investor, creditor and market confidence and to sustain future development of the business. Capital includes common stock, capital surplus, retained earnings, and non-controlling interest. The board of directors' controls not only the return on capital ratio, but also the dividend level of the common stock.

The Company's capital management approach did not change for the year ended December 31, 2020.

22) Investing and financing activities not affecting current cash flow
For information of acquisition of right of use by lease , please refer to note 6(6).
Reconciliation of liabilities arising from financing activities of the Company was as follows:

January 1, 2020 $ 76,259		N	on-cash changes	on-cash changes	December 31, 2020
	Merge -	Acquisition 34,436 N	Disposal Foreign exchange movement (64) - on-cash changes
					77,625 December 31, 2019 76,259
January 1, 2019 (revised)
	Merge -	Acquisition 19,866	Disposal (15,671)	Foreign exchange movement -
$ 106,432

(Continued)

104 CORPORATION

Notes to Financial Statements

(7) Related-party transactions

1) Names and relationship with related parties

The followings are entities that have had transactions with the Company during the periods covered in the financial statements.

Name of related party 104 Consulting Corporation 104 Redpoint Information Technology (Shanghai) Co., Ltd. 104 Human Resources Consultancy (Shanghai) Co., Ltd. 104 Hope Foundation	Relationship with the Company
	the Company’s subsidiary the Company’s subsidiary the Company’s subsidiary The entity's chairman is the same as the Company's

2) Transactions with related parties
Operating revenue

The amount of service revenue by related parties was as follows:

Subsidiaries	2020 $ 14,870	2019 5,498

The prices and collection terms for service to subsidiaries are not significantly different from those with third-party customers. The collection terms were one to three months. Receivables from service revenue did not require provisions for bad debt expenses.

Operating expenses

The amount of consulting fee by subsidiaries was as follows:

Subsidiaries 104 Consulting Corporation	2020 $ 20,183	2019
		34,957

Rental income

The amount of rental income by related parties was as follows:

Subsidiaries 104 Consulting Corporation Other related parties 104 Hope Foundation	2020 $ 264 12 $ 276	2019
		605 12
		617

The price charged for rental was agreed by both parties, and was collected by telegraphic transfer.

(Continued)

104 CORPORATION

Notes to Financial Statements

4. Other income

The amount of service support and asset authorization income by related parties was as follows:

Subsidiaries 104 Consulting Corporation 104 Human Resources Consultancy (Shanghai) Co., Ltd.	2020 $ 4,781 11,710 $ 16,491	2019
		4,770 7,754 12,524

Receivable from related parties

The details of the receivables from related parties was as follows:

Accounts	Type of related parties Subsidiaries Subsidiaries 104 Consulting Corporation 104 Human Resources Consultancy (Shanghai) Co., Ltd.	December 31, 2020 $ 10,496 1,293 3,988 $ 15,777	December 31, 2019 1,644 1,367 1,297 4,308
Accounts receivable Other receivables

Payable to related parties

The details of the payable to related parties was as follows:

Accounts	Type of related parties Subsidiaries - 104 Consulting Corporation	December 31, 2020 $ 863	December 31, 2019
Other payables			9,498

3) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits Share-based payments	2020 $ 66,698 3,157 $ 69,855	2019
		62,752 4,571
		67,323

(Continued)

104 CORPORATION

Notes to Financial Statements

(8) Pledged assets

The carrying values of pledged assets were as follows:

Pledged assets	Object Guarantee for employment services Guarantee for employment services	December 31, 2020 $ - 10,000 $ 10,000	December 31, 2019
Time deposits (recorded under other current financial assets) Time deposits (recorded under other non-current financial assets)			150 10,000 10,150

(9) Significant commitments and contingencies

1) Unrecognized contractual commitments

The Company applied to the Council of Labor Affairs for permission to provide employment services in accordance with the Employment Services Act. As of December 31, 2020 and 2019, the guaranteed amount provided by banks on behalf of the Company was $1,000 thousand.

2) Contingent liabilities: None.

(10) Losses due to major disasters: None.

(11) Significant subsequent events:

Please refer to note 6(11).

(12) Other

A summary of employee benefits, depreciation, and amortization, be classified by function were as follows:

Function Account	2020	2020	2020	2020	2019	2019	2019	2019
	Operating costs	Operating expenses	Non-opera ting expenses (note)	Total	Operating costs	Operating expenses	Non-opera ting expenses (note)	Total
Employee benefits Salary Health and labor insurance Pension Remuneration to directors Other personnel expense Depreciation Amortization	103,915 7,538 4,234 - 3,142 20,923 782	828,060 58,415 34,157 5,087 23,453 49,264 1,005	9,691 1,069 527 - 648 1,597 2	941,666 67,022 38,918 5,087 27,243 71,784 1,789	85,938 6,325 3,494 - 3,181 23,107 874	776,416 55,331 31,903 5,522 23,417 52,476 1,190	8,772 1,004 493 - 525 2,109 4	871,126 62,660 35,890 5,522 27,123 77,692 2,068

Note: Non-operating expenses and non-operating income are offset and recognized as other gains and losses.

(Continued)

104 CORPORATION

Notes to Financial Statements

For the years 2020 and 2019, the information on the number of employees and employee benefit expense of the Company were as follows:

the Company were as follows:
Number of employees Number of directors (non-employee) Average employee benefit expense Average employee salary expense Percentage average employee benefit expense Remuneration to supervisors	2020 820 4 $ 1,317 $ 1,154 3.96% $ 1,689	2019
		789
		4
		1,270
		1,110
		1,841

The Company's salary and remuneration policy (including directors, supervisors, managers and employees) are as follows:

The remuneration of the Company's directors and supervisors are regulated in accordance with Article 26 of the Articles of incorporation of the Company. If the Company has generated a profit in the year, no more than 3% of the profit shall be provided for the remuneration of the directors and supervisors. Since the remuneration is set at a certain percentage of the current year's earnings, the upper limit is highly correlated with the Company's operating performance. Apart from referring to the Company’s past operating performance, the payments of the directors' and supervisors' remuneration will also be adjusted based on future risk factors. That is, when the outlook is bad or the Company’s operating risks increase, the directors' and supervisor’s remuneration will follow. In addition, the evaluation results of the performance of Board of Directors are also important considerations for distribution. Relevant performance evaluation and compensation rationality are reviewed by the Remuneration Committee that regularly reviews and assesses the directors' remuneration, and submits their proposals to the Board of Directors for discussion.

Remuneration paid to the Manager and Employee can be divided into three categories, i.e. salaries, bonuses and employee bonuses. Salary, which is based on the factors such as job responsibility, the overall environment and the market standard, and is set to reflect work performance; bonuses are correlated with employees’ and department’s performance mainly calculated based on the company's "Employees Compensation and Benefits Management Method" and "Outstanding Employee Stock Ownership Trust Management Measures"; employee bonuses are regulated by Article 26 of the Articles of incorporation that if the Company make a profit in the year, 8% to 15% of the profit should be remunerated as employee bonuses, since the employee bonuses are based on the proportion of the annual surplus, they are highly correlated with the Company's operating performance.

The related remuneration in addition to reference to the relevant industry level and the Company’s past operating performance, the relevant distribution standards, structures and systems will also be reviewed and adjusted at any time depending on the actual operating conditions and changes in relevant laws and regulations, which is expected to prevent managers from engaging in the conducts that may put the Company at risk in order to pursue remuneration. In addition, the Company's Remuneration Committee will also periodically assess the remuneration of the General Manager and Vice President, and submit the proposals to the Board of Directors for discussion in order to balance the Company's sustainable operations and risk control.

(Continued)

104 CORPORATION

Notes to Financial Statements

(13) Other disclosures items

1) Information on significant transactions

The following is the information on significant transactions required by the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" for the Company in 2020:

Loans to other parties: None.
Guarantees and endorsements for other parties: None.
Securities held as of December 31, 2020 (excluding investment in subsidiaries, associates, and joint ventures)：

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance	Ending balance	Ending balance	Ending balance	Remarks
				Shares/ units (thousands)	Carrying value	Percentage of ownership (%)	Fairvalue
The Company	Private fund-sparkLabs Taipei Fund I	-	Financial assets at fair value through profit or loss－ non-current	-	4,557	- %	4,557

Individual securities acquired or disposed of with accumulated amount exceeding the lower of TWD300 million or 20% of the capital stock: None.
Acquisition of individual real estate with amount exceeding TWD300 million or 20% of the capital stock: None.
Disposal of individual real estate with amount exceeding the lower of TWD300 million or 20% of the capital stock: None.
Related-party transactions for purchases and sales with amounts exceeding the lower of TWD100 million or 20% of the capital stock: None.
Receivables from related parties with amount exceeding the lower of TWD100 million or 20% of the capital stock: None.
Trading in derivative instruments: None.
2) Information on investees:

The following is the information on investees for the year ended December 31, 2020 (excluding information on investees in Mainland China):

Name of investor	Name of investee	Location	Main business and products	Original investment amount	Original investment amount	Balance of December 31, 2020	Balance of December 31, 2020	Balance of December 31, 2020	Net income (loss) of investee	Share of profit/ losses of investee	Remarks
				December 31, 2020	December 31, 2019	Shares	Percentage of ownership	Book value
The Company	104 Consulting	Taiwan	General advertising services, IT software services, electronic information services, talent dispatching, management consultancy and data processingservices	12,67	8 12,678	1,219	100.00%	35,864	7,705	7,705	Subsidiary

(Continued)

104 CORPORATION

Notes to Financial Statements

3) Information on investment in Mainland China:
The names of investees in Mainland China, the main businesses and products, and other information:

information:	information:	information:	information:	information:
					Unit: thousand dollars
Name of investee	Main businesses and products	Total amount of paid-in capital (note 3)	Method of investment (note 1)	Aggregate investment amount remitted from Taiwan at beginning of year (note 3)	Amount remitted or returned incurrent year		Aggregate investment amount remitted from Taiwan at end of year (note 3)	Net income (loss) of investee	Percentage of direct or indirect ownership by the Company (%)	Investment gain (loss) (note 2)	Book value as of December 31, 2020 (note 2)	Amount of investment income remitted back to Taiwan at end of year
					Invested amount	Returned amount
104 Human Resources Consultancy Redpoint Information	Collecting, coordinating, publishing, and consulting on human resource information; recruitment; designing and developing computer software, multimedia, and network systems; designing and producing advertising Developing network technologies and computer software, selling products, providing technical advice and services, and management consultancy	34,091 60,365	(1) (1)	23,909 (USD770) 60,365 (USD2,000)	- -	- -	23,909 (USD770) 60,365 (USD2,000)	(8,553) 752	70.00% 100.00%	(5,988) 752	13,180 36,371	- -

Note 1: Ways of investments are as follows:

(1) direct investment in Mainland China.
(2) others.
Note 2: The investment gain (loss) and carrying value disclosed above included direct and indirect investments. The investment gain (loss) recognized by the Company is based on the financial statements audited by the auditors of parent company under the equity method.

Note 3: Based on historical exchange rates.

Limitation on investment in Mainland China:

Unit: thousand dollars

		Unit: thousand dollars
Aggregate investment amount remitted from Taiwan to Mainland China at the end of the period (Note 2)	Investment amount approved by Investment Commission of Ministry of Economic Affairs (Note 2)	Limitation on investment in Mainland China by Investment Commission of Ministry of Economic Affairs (Note 1)
84,274 (USD 2,770 )	78,890 (USD 2,770 )	876,054

Note 1: Limitation on investment in Mainland China: 60% of the Company's stockholders' equity of $1,460,090 thousand.
Note 2: Issued capital and investment capital remitted from Taiwan to Mainland China were translated at historical rates, and the rest of the investment information was translated at the year-end rate of December 31, 2020 (USD:NTD=1:28.48).
Significant transactions:

There is no significant inter-company transaction with the investment in Mainland China for the year ended December 31, 2020.

(Continued)

104 CORPORATION

Notes to Financial Statements

Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
JcbNext Berhad Rocky Yang Vicky Ku Askforce Corporation	7,630,000 4,495,402 4,495,401 2,427,344	22.99% 13.54% 13.54% 7.31%

Note: (1) The information on major shareholders, which is provided by the Taiwan Depository & Clearing Corporation, summarized the shareholders who held over 5% of the total non-physical common stocks and preferred stocks (including treasury stocks) on the last business date of each quarter. The registered non-physical stocks may be different from the capital stocks disclosed in the financial statement due to different calculations basis.
(2) If the aforementioned data contains shares which were kept in trust by the shareholders, the data disclosed will be deemed as the settlor’s separate account for the fund set by the trustee. As for the shareholder who reports its share equity as an insider and whose shareholding ratio is greater than 10% in accordance with Securities and Exchange Act and include its self-owned shares and trusted shares, as well as the shares of the individuals who have power to decide how to allocate the trust assets. For the information on reported share equity of the insider, please refer to the Market Observation Post System.

(14) Segment information

Please refer to the consolidated financial statements for the year ended December 31, 2020.

(Continued)

104 CORPORATION

Statement of Cash and Cash Equivalents

December 31, 2020

(Expressed in thousands of New Taiwan Dollars, Except for Foreign Currencies)

Item	Description Checking deposits Demand deposits－Foreign Currencies ([email protected]) Demand deposits－New Taiwan Dollars Time deposits (Due date:2021.01.01~2021.12.30) Total RS bond (Due date:2021.01.13; Rate:0.22%)	Amount
Cash in bank Cash Cash equivalents		$ 2,709 26 171,597 1,898,151 2,072,483 34 50,000 $ 2,122,517

104 CORPORATION

Statement of Movement of Investments Accounted for Using the Equity Method

January 1 to December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Name of investee 104 Consulting Corporation 104 Human Resources Consultancy (Shanghai) Co., Ltd. 104 Redpoint Information Technology (Shanghai) Co., Ltd.	Beginning Balance Shares Amount 1,219 $ 44,413 Note 1 18,998 Note 1 35,007 $ 98,418	Increase (Note 2) Shares Amount - - - - - 1,364 1,364	Increase (Note 2) Shares Amount - - - - - 1,364 1,364	Decrease (Note 2) Shares Amount - 8,549 - 5,818 - - 14,367	Decrease (Note 2) Shares Amount - 8,549 - 5,818 - - 14,367	Ending Balance Shares Ownership% Amount 1,219 100.00 35,864 Note 1 70.00 13,180 Note 1 100.00 36,371 85,415	Ending Balance Shares Ownership% Amount 1,219 100.00 35,864 Note 1 70.00 13,180 Note 1 100.00 36,371 85,415	Market Value or Net Assets Value Unit price Total amounts Collateral Remark 29.42 35,864 None - 13,180 None - 36,371 None 85,415
	Shares 1,219 Note 1 Note 1	Shares - - -		Shares - - -		Shares Ownership% 1,219 100.00 Note 1 70.00 Note 1 100.00		Unit price 29.42 - -
			1,364		14,367		85,415

Note 1: A limited company－no shares were issued.

Note 2: Included share of profit (loss) of subsidiaries for using equity method $2,469 thousand, foreign currency translation differences for foreign operations $782 thousand, and dividend distribution $(16,254) thousand.

104 CORPORATION