104 — Interim / Quarterly Report 2021

Dec 17, 2021

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Stock Code:3130

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

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors’ Review Report For the Six Months Ended June 30, 2021 and 2020

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

The independent auditors’ review report and the accompanying consolidated 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’ review report and consolidated financial statements, the Chinese version shall prevail.

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Table of contents

Contents 1 Cover page 2 Table of contents 3 Independent Auditors’ Review Report 4 Consolidated Balance Sheets 5 Consolidated Statements of Comprehensive Income 6 Consolidated Statements of Changes in Equity 7 Consolidated Statements of Cash Flows 8 Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated 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

Page

1 2 3~4 5 6 7 8 9 9 9~10 10~11 12 12~25 25~26 26 26 26 26 26~27 27~28 29 29~30 30 30

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Independent Auditors’ Review Report

To the Board of Directors of 104 Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of 104 Corporation and subsidiaries as of June 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and the six months periods then ended, and changes in equity and cash flows for the six months ended June 30, 2021 and 2020, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standards (“IASs”) 34, “Interim Financial Reporting” endorsed by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our review.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standards 65, “Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4(2), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to NT$112,254 thousand and NT$122,309 thousand, constituting 3.94% and 4.51% of the consolidated total assets; and the total liabilities amounting to NT$13,901 thousand and NT$14,534 thousand, constituting 0.96% and 1.04% of the consolidated total liabilities as of June 30, 2021 and 2020, respectively; as well as the total comprehensive gain (loss) amounting to NT$5,184 thousand, NT$2,081 thousand, NT$15,139 thousand and NT$ (391) thousand, constituting 5.92%, 4.63%, 7.94% and (0.37)% of the consolidated total comprehensive income for the three and six months ended June 30, 2021 and 2020, respectively.

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Qualified Conclusion

Based on our reviews, except for the effects of such adjustments, if any, as might have been determined to be necessary had the financial statements of certain non-significant subsidiaries as described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of 104 Corporation and subsidiaries as of June 30, 2021 and 2020, and of its consolidated financial performance for the three and six months ended June 30, 2021 and 2020, as well as its consolidated cash flows for the six months ended June 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IASs 34, “Interim Financial Reporting” endorsed by the Financial Supervisory Commission of the Republic of China.

The engagement partners of KPMG on the review resulting in this independent auditor’s report are Min-Ju Chao and Chun-Hsiu Kuang.

Taipei, Taiwan (Republic of China) July 27, 2021

Note to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statements 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 review such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ review report and the accompanying consolidated 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 auditors’ report and consolidated financial statements, the Chinese version shall prevail.

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

Reviewed only, not audited in accordance with generally accepted auditing standards as of June 30, 2021 and 2020

104 CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2021, December 31 and June 30, 2020

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: Cash and cash equivalents (note 6(1)) Notes receivable, net (notes 6(3) and (12)) Accounts receivable, net (notes 6(3) and (12)) Other receivables Other current assets, others Total current assets Non-current assets: Non-current financial assets at fair value through profit or loss (note 6(2)) Property, plant and equipment (note 6(4)) Right-of-use assets (notes 6(5) and (7)) Intangible assets (note 6(6)) Deferred tax assets Prepayments for business facilities Guarantee deposits paid Other non-current financial assets (note 8) Other non-current assets, others (notes 6(3) and (12)) Total non-current assets		June 30, 2021	December 31, 2020 Amount % 2,236,512 84 161 - 50,906 2 9,334 - 37,044 2 2,333,957 88 4,557 - 208,883 8 76,824 3 1,553 - 8,638 - 588 - 8,300 - 10,000 1 4,224 - 323,567 12	June 30, 2020
		Amount % $ 2,420,163 85 782 - 83,301 3 7,969 - 32,204 1 2,544,419 89 4,458 - 203,033 7 66,619 3 1,569 - 8,638 - - - 8,829 - 10,000 1 3,815 - 306,961 11		Amount % 2,289,204 85 46 - 63,430 2 9,497 - 27,335 1 2,389,512 88 4,741 - 216,890 8 69,877 3 1,937 - 7,051 - 468 - 8,101 - 10,000 1 2,245 - 321,310 12

Total assets	$ 2,851,380 100	2,657,524 100	2,710,822 100

Liabilities and Equity Current liabilities: Current contract liabilities (note 6(12)) Notes payable Accounts payable Other payables (notes 6(10) and (13)) Current tax liabilities Current lease liabilities (note 6(7)) Other current liabilities, others Total current liabilities Non-current liabilities: Non-current lease liabilities (note 6(7)) Net defined benefit liability, non-current Total non-current liabilities Total liabilities Equity attributable to owners of parent (note 6(10)): 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 attributable to owners of parent Non-controlling interests Total equity Total liabilities and equity		June 30, 2021				December 31, 2020 Amount % 600,876 23 54 - 1,859 - 395,053 15 44,948 2 32,891 1 58,759 2 1,134,440 43 44,734 2 12,611 - 57,345 2 1,191,785 45 331,907 12 397,574 15 378,199 15 6,121 - 351,628 13 735,948 28 (5,339) - 1,460,090 55 5,649 - 1,465,739 55 2657524 100		June 30, 2020
		Amount $ 631,345 632 1,072 622,869 57,665 31,043 61,082	%			Amount		Amount %
			22 - - 22 2 1 2 49 1 1 2 51 12 14 13 - 10 23 - 49 - 49 100					575,173 21 4 - 2,098 - 621,795 23 60,574 2 28,745 1 53,599 2 1,341,988 49 41,882 2 8,417 - 50,299 2 1,392,287 51 331,907 12 397,574 15 378,199 14 6,121 - 205,665 8 589,985 22 (7,530) - 1,311,936 49 6,599 - 1,318,535 49 2710822 100
		1,405,708
		36,386 11,820
		48,206
		1,453,914
		331,907
		397,574
		378,199 5,339 285,932
		669,470
		(6,097)
		1,392,854
		4,612
		1,397,466
		$ 2851380

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

104 CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three and six months ended June 30, 2021 and 2020

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

Operating revenue (note 6(12)) Operating costs (notes 6(4), (5), (7), (8), (13), 7 and 12) Gross profit Operating expenses (notes 6(3), (4), (5), (7), (8), (13), 7 and 12): Selling expenses Administrative expenses Research and development expenses Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 Total operating expenses Operating income Non-operating income and expenses (notes 6(4), (5), (7), (8), (14), (15), (16), 7 and 12): Interest income Other income Other gains and losses Finance costs Total non-operating income and expenses Income before income tax Less: income tax expenses (note 6(9)) Net income Other comprehensive income (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 Other comprehensive loss Total comprehensive income Net income attributable to: Shareholders of the Company Non-controlling interests Total comprehensive income (loss) attributable to: Shareholders of the Company Non-controlling interests Basic earnings per share (note 6(11)) Basic earnings per share Diluted earnings per share		For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,		For the six	months	months	ended June 30,
		2021					2020			2021	% 100 10 90 37 9 21 - 67 23 1 - - - 1 24 3 21 - - - 21 21 - 21 21 - 21 5.80		2020
		Amount $ 456,934 43,471		%			Amount 390,021 49,979	% 100 13 87 42 10 22 - 74 13 1 1 (1) - 1 14 2 12 - - - 12 12 - 12 12 - 12 1.41		Amount 894,834 88,138			Amount % 786,939 100 94,387 12 692,552 88 324,089 41 76,500 10 168,366 21 329 - 569,284 72 123,268 16 6,615 1 11,062 1 (8,058) (1) (577) - 9,042 1 132,310 17 24,905 3 107,405 14 (1,606) (1) - - (1,606) (1) 105,799 13 108,751 14 (1,346) - 107,405 14 107,342 13 (1,543) - 105,799 13 3.28 3.26
				100 9 91 38 8 21 - 67 24 1 - (1) - - 24 5 19 - - - 19 19 - 19 19 - 19 2.66
		413,463					340,042			806,696
		170,951 38,067 96,257 465					162,466 39,921 85,976 (1)			333,827 77,063 185,690 649
		305,740					288,362			597,229
		107,723					51,680			209,467
		2,708 1,637 (2,615) (260)					3,123 6,260 (5,265) (284)			5,331 3,406 (2,601) (539)
		1,470					3,834			5,597
		109,193 21,255					55,514 9,691			215,064 23,615
		87,938					45,823			191,449
		(428) -					(893) -			(835) -
		(428)					(893)			(835)
		$ 87,510					44,930			190,614
		$ 88,411 (473)					46,872 (1,049)			192,409 (960)
		$ 87,938					45,823			191,449
		$ 88,021 (511)					46,086 (1,156)			191,651 (1,037)
		$ 87,510					44,930			190,614
			$
			$	2.65				1.41			5.77

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

104 CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the six months ended June 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of parent

Balance at January 1, 2020 Appropriations and distributions Special reserve Cash dividends Net income (loss) for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) for the period Balance at June 30, 2020 Balance at January 1, 2021 Appropriations and distributions Cash dividends Reversal of special reserve Net income (loss) for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) for the period Balance at June 30, 2021		Common stock $ 331,907 - - - - - $ 331,907 $ 331,907 - - - - - $ 331,907		Capital surplus 397,574 - - - - - 397,574 397,574 - - - - - 397,574			**Retained earnings **	**Retained earnings **	Total 767,338 - (286,104) 108,751 - 108,751 589,985 735,948 (258,887) - 192,409 - 192,409 669,470	Foreign currency translation differences for foreign operations (6,121) - - - (1,409) (1,409) (7,530) (5,339) - - - (758) (758) (6,097)		Total equity attributable to Owners of parent 1,490,698 - (286,104) 108,751 (1,409) 107,342 1,311,936 1,460,090 (258,887) - 192,409 (758) 191,651 1,392,854		Non- controlling interests 8,142 - - (1,346) (197) (1,543) 6,599 5,649 - - (960) (77) (1,037) 4,612		Total equity
						Legal reserve 378,199 - - - - - 378,199 378,199 - - - - - 378,199	Special reserve	Unappropriated earnings 385,088 (2,070) (286,104) 108,751 - 108,751 205,665 351,628 (258,887) 782 192,409 - 192,409 285,932
							4,051 2,070 - - - - 6,121 6,121 - (782) - - - 5,339									1,498,840 - (286,104) 107,405 (1,606) 105,799 1,318,535 1,465,739 (258,887) - 191,449 (835) 190,614 1,397,466

See accompanying notes to consolidated financial statements.

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

Reviewed only, not audited in accordance with generally accepted auditing standards

104 CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six months ended June 30, 2021 and 2020

(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 Loss (gain) on disposal of property, plant and equipment Unrealized foreign exchange loss Gain from lease modifications Total adjustments to reconcile profit Changes in operating assets and liabilities: Net changes in operating assets: Notes receivable Accounts receivable Other receivables 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 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 Decrease (increase) in refundable deposits Acquisition of intangible assets Decrease (increase) in other non-current assets Net cash flows used in investing activities Cash flows used in financing activities: Payments of lease liabilities Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the six months	For the six months	ended June 30,	ended June 30,
		2021 $ 215,064 33,738 572 649 539 (5,331) 400 99 (52)		2020 132,310 37,510 906 329 577 (6,615) (187) 56 -
		30,614		32,576
		(621) (33,044) 1,422 - 4,840		393 (15,857) (397) 150 (11,896)
		(27,403)		(27,607)
		30,469 578 (787) (36,733) 2,323 (791)		56,690 (117) (354) (38,056) 1,968 (763)
		(4,941)		19,368
		(32,344)		(8,239)
		(1,730)		24,337
		213,334 5,274 (539) (10,898)		156,647 7,026 (577) (11,593)
		207,171		151,503
		(5,896) - (529) - 409		(13,873) 198 153 (133) 1,255
		(6,016)		(12,400)
		(16,670)		(16,952)
		(16,670)		(16,952)
		(834)		(1,603)
		183,651 2,236,512		120,548 2,168,656
		$ 2,420,163		2,289,204

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 2021 and 2020

(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 and subsidiaries (the “Consolidated Company”) are engaged in information technology, general advertising services, employment services, and human resource consultancy.

(2) Approval date and procedures of the consolidated financial statements

The consolidated financial statements were authorized for issuance by the board of directors on July 27, 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 Consolidated Company has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2021:

• 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”

• Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”

• 2) The impact of IFRS issued by the FSC but not yet effective

The Consolidated Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2022, would not have a significant impact on its consolidated financial statements:

• －

• ● 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”

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

• 3) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Consolidated Company, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations Amendments to IAS 1 “Disclosure of Accounting Policies” Amendments to IAS 8 “Definition of Accounting Estimates”	Content of amendment The key amendments to IAS 1 include:  requiring companies to disclose their material accounting policies rather than their significant accounting policies;  clarifying that accounting policies related to immaterial transactions, other events or conditions are themselves immaterial and as such need not be disclosed; and  clarifying that not all accounting policies that relate to material transactions, other events or conditions are themselves material to a company’s financial statements. The amendments introduce a new definition for accounting estimates: clarifying that they are monetary amounts in the financial statements that are subject to measurement uncertainty. The amendments also clarify the relationship between accounting policies and accounting estimates by specifying that a company develops an accounting estimate to achieve the objective set out by an accounting policy.	Effective date per IASB
		January 1, 2023 January 1, 2023

The Consolidated Company is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Consolidated Company completes its evaluation.

The Consolidated Company does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated 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 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

(4) Summary of significant accounting policies

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2020. For the related information, please refer to note 4 of the consolidated financial statement for the year ended December 31, 2020.

• 1) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to the Regulations) and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed by FSC and do not include all of the disclosures required by International Financial Reporting Standards, See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed by the FSC (hereinafter referred to IFRS endorsed by the FSC) for full annual consolidated financial statements.

• 2) Basis of consolidation

• List of subsidiaries included in the consolidated financial statements

List of subsidiaries in the consolidated financial statements:

Name of investor	Name of subsidiary	Business activities General advertising services, IT software services, electronic information services, talent dispatching, management consultancy and data processing services 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	Percentage of ownership June 30, 2021 December 31, 2020 June 30, 2020 100.00% 100.00% 100.00% 70.00% 70.00% 70.00% 100.00% 100.00% 100.00%	Percentage of ownership June 30, 2021 December 31, 2020 June 30, 2020 100.00% 100.00% 100.00% 70.00% 70.00% 70.00% 100.00% 100.00% 100.00%	Notes
			June 30, 2021 100.00% 70.00% 100.00%	December 31, 2020 100.00% 70.00% 100.00%
The Company The Company The Company	104 Consulting Corporation (104 Consulting) 104 Human Resources Consultancy (Shanghai) Co., Ltd. (104 Human Resources Consultancy) 104 Redpoint Information Technology (Shanghai) Co., Ltd. (Redpoint Information)				Note Note Note

Note：It is a non-significant subsidiary, and its financial statements have not been reviewed.

1. Subsidiaries excluded from the consolidated financial statements: None.

2. 3) Employee benefits

The pension cost for an interim period was calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

• 4) Income taxes

The income tax expenses have been prepared and disclosed in accordance with IAS 34 “Interim Financial Reporting”.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period using the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34 “Interim Financial Reporting” which are endorsed by FSC 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.

The preparation of the consolidated financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2020. For the related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2020.

(6) Explanation of significant accounts

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2020. For the related information, please refer to Note 6 of the consolidated financial statements for the year ended December 31, 2020.

• 1) Cash and cash equivalents

Cash Checking deposits Demand deposits Time deposits Cash equivalents－RS bond Cash and cash equivalents in the consolidated statement of cash flows	June 30, 2021 $ 39 50 125,592 2,119,482 175,000 $ 2,420,163	December 31, 2020 34 2,709 214,669 1,969,100 50,000 2,236,512	June 30, 2020 1 2,749 170,632 2,043,822 72,000 2,289,204

• 2) Financial assets at fair value through profit or loss

Mandatorily measured at fair value through profit or loss－non-current Private fund	June 30, 2021 $ 4,458	December 31, 2020 4,557	June 30, 2020
			4,741

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

• 3) Notes and accounts receivable and overdue receivable

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)	June 30, 2021 $ 782 83,479 43 (178) (43) $ 84,083	December 31, 2020 161 50,906 - - - **51,067 **	June 30, 2020 46 63,481 - (51) - 63,476

The Consolidated 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 was determined as follows:

Aging 1~365 days Aging over 365 days Aging 1~365 days Aging 1~365 days	Gross carrying amount $ 84,261 43 $ 84,304 Gross carrying amount $ 51,067 Gross carrying amount $ 63,527		June 30, 2021
			Weighted- average expected loss rate (%)	Lifetime expected credit loss allowance 178 43 221
			0.21 100.00 December 31, 2020
			Weighted- average expected loss rate (%)	Lifetime expected credit loss allowance **- **
			- June 30, 2020
			Weighted- average expected loss rate (%)	Lifetime expected credit loss allowance **51 **
			0.08

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated 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 Foreign exchange losses Balance on June 30	For the six months ended June 30,	For the six months ended June 30,
	2021 $ - 649 (492) 65 (1) $ 221	2020
		229 329 (543) 36 -
		51

The Consolidated Company does not hold any collateral for collectible amounts.

4) Property, plant and equipment

Movement of the cost, depreciation, and impairment loss of the property, plant and equipment of the Consolidated Company for the six months ended June 30, 2021 and 2020 were as follows:

Cost or deemed cost: Balance at January 1, 2021 Additions Disposals Effect of movements in exchange rates Balance at June 30, 2021 Balance at January 1, 2020 Additions Disposals Effect of movements in exchange rates Balance at June 30, 2020 Depreciation and impairment loss: Balance at January 1, 2021 Depreciation Disposals Effect of movements in exchange rates Balance at June 30, 2021 Balance at January 1, 2020 Depreciation Disposals Effect of movements in exchange rates Balance at June 30, 2020 Carrying amount: Balance at January 1, 2021 Balance at June 30, 2021 Balance at January 1, 2020 Balance at June 30, 2020		Land $ 103,562 - - - $ 103,562 $ 103,562 - - - $ 103,562 $ - - - - $ - $ - - - - $ - $ 103,562 $ 103,562 $ 103,562 $ 103,562		Buildings 76,781 190 - - 76,971 75,782 999 - - 76,781 39,918 1,638 - - 41,556 36,688 1,605 - - 38,293 36,863 35,415 39,094 38,488		Computer equipment 366,205 7,252 ( 764 ) ( 42) 372,651 366,028 3,457 ( 2,677 ) ( 70) 366,756 312,547 12,417 ( 764 ) ( 41) 324,159 297,126 15,489 ( 2,666 ) ( 68) 309,881 53,658 48,492 68,902 56,875		Office equipment 4,873 775 ( 66 ) ( 1) 5,581 4,873 - - ( 2) 4,871 3,870 357 ( 66 ) ( 1) 4,160 3,284 293 - ( 1) 3,576 1,003 1,421 1,589 1,295		Leasehold improvement 54,133 3,144 ( 4,456 ) - 52,821 53,391 1,367 - - 54,758 44,226 1,624 ( 4,056 ) - 41,794 40,873 2,089 - - 42,962 9,907 11,027 12,518 11,796		Transportatio n equipment - - - - - 523 - ( 523 ) - - - - - - - 523 - ( 523 ) - - - - - -		Other equipment 26,964 197 - - 27,161 29,996 1,016 ( 1,643 ) - 29,369 23,074 971 - - 24,045 25,183 955 ( 1,643 ) - 24,495 3,890 3,116 4,813 4,874		Unfinished construction - - - - - - - - - - - - - - - - - - - - - - - -		Total 632,518 11,558 ( 5,286 ) ( 43) 638,747 634,155 6,857 ( 4,843 ) ( 72) 636,097 423,635 17,007 ( 4,886 ) ( 42) 435,714 403,677 20,431 ( 4,832 ) ( 69_)_ 419,207 208,883 203,033 230,478 216,890

As of June 30, 2021, December 31 and June 30, 2020, the property, plant and equipment were not pledged.

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

5) Right-of-use assets

The Consolidated Company leases many assets including buildings and transportation equipment. Information about leases for which the Consolidated Company as a lessee is as below:

Cost: Balance at January 1, 2021 Addition Disposal (modification of contract) Balance at June 30, 2021 Balance at January 1, 2020 Addition Disposal (modification of contract) Balance at June 30, 2020 Depreciation: Balance at January 1, 2021 Depreciation Balance at June 30, 2021 Balance at January 1, 2020 Depreciation Balance at June 30, 2020 Carrying amount: Balance at January 1, 2021 Balance at June 30, 2021 Balance at January 1, 2020 Balance at June 30, 2020	Building $ 137,569 8,305 (2,595) $ 143,279 $ 104,351 10,230 (64) $ 114,517 $ 63,265 15,725 $ 78,990 $ 32,061 16,108 $ 48,169 $ 74,304 $ 64,286 $ 72,290 $ 66,348	Transportation equipment 6,256 816 - 7,072 5,102 1,154 - 6,256 3,736 1,006 4,742 1,756 971 2,727 2,520 2,330 3,346 3,529	Total 143,825 9,121 (2,595) 150,351 109,453 11,384 (64) 120,773 67,001 16,371 83,732 33,817 17,079 50,896 76,824 66,619 75,636 69,877

6) Intangible assets

There were no significant additions, disposal, or recognition and reversal of impairment losses of intangible assets for the six months ended June 30, 2021 and 2020. Information on amortization for the period, please refer to Note 12. For other related information, please refer to Note 6(6) of the consolidated financial statements for the year ended December 31, 2020.

7) Lease liabilities

The Consolidated Company’s lease liabilities were as follows:

Current Non-current	June 30, 2021 $ 31,043 36,386 $ 67,429	December 31, 2020 32,891 44,734 77,625	June 30, 2020
			28,748 41,882 70,627

Please refer to Note 6(17) financial instrument for the maturity information.

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The amounts under profit and loss were as follows:

Interest expense of lease liabilities Short term lease	For the three months ended June 30, 2021 2020 $ 260 284 $ 800 649	For the three months ended June 30, 2021 2020 $ 260 284 $ 800 649	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 260 $ 800		2021 539 1,531	2020
				577 1,161
		649

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

Total cash flows used in operating activities Total cash flows used in financing activities Total cash flows	For the six months ended June 30, 2021 2020 $ 2,070 1,738 16,670 16,952 $ 18,740 18,690
	2021 $ 2,070 16,670 $ 18,740

1. Leases of buildings

The Consolidated 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.

1. Other leases

The rental periods of transportation were 1 to 5 years.

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

8) Employee benefits

1. Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material onetime events since prior fiscal year. As a result, the pension cost in the accompanying consolidated financial statements was measured and disclosed according to the actuarial report as of December 31, 2020 and 2019.

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

Operating costs Selling expenses Administrative expenses Research and development expenses	For the three months ended June 30, 2021 2020 $ - - - - - - - - $ - -	For the six months ended June 30, 2021 2020 3 5 20 32 8 14 7 13 38 64
	2021 $ - - - - $ -	2021 3 20 8 7 38

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2. Defined contribution plans

The Consolidated Company’s pension costs under the defined contribution plans to the Bureau of Labor Insurance or the independent fund administered by the government were as follows:

Operating costs Selling expenses Administrative expenses Research and development expenses Other gains and losses	For the three months ended June 30, 2021 2020 $ 1,022 1,057 5,128 5,028 936 949 2,829 2,635 132 127 $ 10,047 9,796	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 1,022 5,128 936 2,829 132 $ 10,047	2021 2,089 10,029 1,931 5,611 267 19,927	2020
			2,084 9,815 1,948 5,730 252 19,469

9) Income taxes

1. The components of income tax expense (benefit) were as follows:

Current tax expense (benefit) Current period Adjustment for prior periods Income tax expense	For the three months ended June 30, 2021 2020 $ 21,604 10,041 (349) (350) $ 21,255 9,691	For the three months ended June 30, 2021 2020 $ 21,604 10,041 (349) (350) $ 21,255 9,691	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 21,604 (349) $ 21,255		2021 42,609 (18,994) 23,615	2020
				25,255 (350) 24,905

2. Assessment of tax

The R.O.C. income tax authorities have examined and approved the Company’s income tax returns through 2019.

10) Share capital and other equity

Except the following mentioned below, there was no significant change in share capital and other equity for the periods from January 1 to June 30, 2021 and 2020. For the related information, please refer to note 6(10) of the consolidated financial statements for the year ended December 31, 2020.

1. Special reserve

The carrying amount of special reserve amounted to $5,339 thousand, $6,121 thousand, and $6,121 thousand as of June 30, 2021, December 31 and June 30, 2020.

2. Earnings distribution

Earnings distribution for 2020 has reached the statutory threshold through e-voting, and the general meeting of shareholders is expected to be held on August 12, 2021. The Company decided to distribute a cash dividend of $7.80 (dollars) per share, totaling $258,887 thousand.

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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.

The aforementioned earning distribution for 2020 and 2019 which were approved in stockholders’ meeting have not paid on June 30, 2021 and 2020 and were recognized as other payables. The related information about earnings distribution is available on the Market Observation Post System website.

11) Earnings per share

The calculation of basic and diluted earnings per share for the six months ended June 30, 2021 and 2020 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) Effects of potentially dilutive common stock Employees’ compensation Weighted-average number of common shares outstanding－ diluted (thousand shares) Diluted EPS (New Taiwan dollars)	For the three months ended June 30, 2021 2020 $ 88,411 46,872 33,190 33,190 $ 2.66 1.41 $ 88,411 46,872 33,190 33,190 118 74 33,308 33,264 $ 2.65 1.41	For the six months ended June 30,	For the six months ended June 30,
	2021	2021	2020
	$ 88,411	192,409	108,751 33,190 3.28 108,751 33,190 137 33,327 3.26
	33,190	33,190
	$ 2.66	5.80
	$ 88,411	192,409
	33,190 118	33,190 170
	33,308	33,360
	$ 2.65	5.77

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

• 12) Revenue from contracts with customers

• The details of revenue were as follows:

For the three months ended June 30, 2021 2020 Primary geographical markets: Taiwan $ 452,266 381,645 Other countries 4,668 8,376 $ 456,934 390,021 Primary services: Online and consultation services $ 456,934 390,021 Contract balances June 30, 2021 Notes Receivable $ 782 Accounts Receivable 83,749 Overdue receivable (recorded under other non-current assets) 43 Less: Allowance for impairment－accounts receivable (178) Allowance for doubtful accounts－ overdue receivable (recorded under other non-current assets) (43) Total $ 84,083 Contract liabilities $ 631,345	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30, 2021 2020 885,652 775,724 9,182 11,215 894,834 786,939 894,834 786,939 December 31, 2020 June 30, 2020 161 46 50,906 63,481 - - - (51) - - 51,067 63,476 600,876 575,173	For the six months ended June 30, 2021 2020 885,652 775,724 9,182 11,215 894,834 786,939 894,834 786,939 December 31, 2020 June 30, 2020 161 46 50,906 63,481 - - - (51) - - 51,067 63,476 600,876 575,173
	2021		2020		2021
			381,645 8,376 390,021 390,021 June 30, 2021 782 83,749 43 (178) (43) 84,083 631,345		885,652 9,182 894,834 894,834 December 31, 2020 161 50,906 - - - 51,067 600,876
			June 30, 2021 782 83,749 43 (178) (43) 84,083 631,345
		$				46 63,481 - (51) - 63,476 575,173
		$
		$

1. Contract balances

Please refer to Note 6(3) for details on accounts receivable and allowance for impairment.

• 13) 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 three and six months ended June 30, 2021 and 2020, the Company estimated its employees’ compensation to be $10,038 thousand, $5,126 thousand, $19,772 thousand and $12,127 thousand, respectively, and the remuneration of directors and supervisors to be $2,433 thousand, $1,243 thousand, $4,793 thousand and $2,940 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

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

supervisors as specified in the Company’s Articles. These remunerations were expensed under operating costs or operating expenses for each period. 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.

For the year ended December 31, 2020 and 2019, the employees’ compensation amounted to $27,867 thousand and $30,372 thousand, respectively, and the remunerations of directors and supervisors amounted to $6,756 thousand and $7,363 thousand, respectively. There was no difference between the aforementioned amounts and the amounts approved in board of directors’ meeting. The related information is available on the Market Observation Post System website.

• 14) Non-operating income

• Interest Income

Deposit interest 2. Other Income Miscellaneous Income	For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30, 2021 2020 5,331 6,615 For the six months ended June 30, 2021 2020 3,406 11,062
	2021	2020	2021
	$ 2,708	3,123	5,331
	2021	2020	2021
	$ 1,637	6,260	3,406

• 15) Other gains and losses

The details of other gains and losses were as follows:

Gains (losses) on disposal of property, plant and equipment Gains from lease modifications Net foreign exchange (losses) gains Other Other gains or losses	For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
	2021	2020	2021	2020
	$ (400) 52 (749) - (1,518) $ (2,615)	- - (231) (5,034) - (5,265)	(400) 52 (695) - (1,558) (2,601)	187 - 290 (9,383) 848 (8,058)

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

16) Finance costs

The details of finance costs were as follows:

	Lease liabilities interest expenses inancial instruments	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,		For the six months ended June 30,	For the six months ended June 30,
		2021		2020		2021 539 December 31, 2020 4,557	2020
				284 June 30, 2021			577 June 30, 2020 4,741 2,289,204 63,476 9,497 8,101 10,000 2,380,278 2,385,019 June 30, 2020 2,102 608,404 70,627 681,133
1	. Categories of financial instruments (A) Financial asset
				2,420,163 84,083 7,969 8,829 10,000 2,531,044 $ 2,535,502 June 30, 2021 $ 1,704 622,869 67,429 $ 692,002		2,236,512 51,067 9,334 8,300 10,000 2,315,213 2,319,770 December 31, 2020 1,913 395,053 77,625 474,591

17) Financial instruments

1.	Categories of financial instruments
	(A) Financial asset

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2. Liquidity risk

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

June 30, 2021 Non-derivative financial liabilities Notes and accounts payable Other payables Lease liabilities December 31, 2020 Non-derivative financial liabilities Notes and accounts payable Other payables Lease liabilities June 30, 2020 Non-derivative financial liabilities Notes and accounts payable Other payables Lease liabilities	Carrying amount $ 1,704 622,869 67,429 $ 692,002 $ 1,913 395,053 77,625 $ 474,591 $ 2,102 608,404 70,627 $ 681,133		Contractual cash flows 1,704 622,869 67,429 692,002 1,913 395,053 77,625 474,591 2,102 608,404 70,627 681,133		Within 1 year 1,704 622,869 31,043 655,616 1,913 395,053 32,891 429,857 2,102 608,404 28,745 639,251		1-5 years - - 36,386 36,386 - - 44,734 44,734 - - 41,882 41,882		Over 5 years - - - - - - - - - - - -

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

1. Interest rate analysis

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

1. Currency risk

2. (A) Exposure to foreign currency risk

The Consolidated Company’s significant exposure to foreign currency risk was as follows:

Fi	nancial assets Monetary items		June 30, 202	June 30, 202	1 TWD 35,983	Dec	ember 31, 20	20		June 30, 2020	June 30, 2020
				Exchange rate		Foreign currency 1,256	Exchange rate 28.48	TWD		Foreign currency 1,254	Exchange rate 29.63	TWD
				27.86				35,783				37,170
	USD

• (B) Sensitivity analysis

The Consolidated Company’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents that are denominated in a foreign currency. A weakening of 1% of the TWD against the USD as at June 30, 2021 and 2020, would have increased the net profit after tax by $288 thousand and $297 thousand for the six months ended June 30, 2021 and 2020, respectively. The analysis assumes that all other variables remain constant.

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

• (C) Foreign exchange gains and losses on monetary items

The foreign exchange gains and losses (including realized and unrealized) on monetary items was as follows:

TWD CNY TWD CNY	For the three months ended June 30, 2021 2020 Exchange gains and losses Average exchange rate Exchange gains and losses Average exchange rate $ (107) - (78) - RMB (148) 4.34 (36) 4.25 For the six months endedJune 30, 2021 2020 Exchange gains and losses Average exchange rate Exchange gains and losses Average exchange rate $ (88) - (24) - RMB (139) 4.36 73 4.29	For the three months ended June 30, 2021 2020 Exchange gains and losses Average exchange rate Exchange gains and losses Average exchange rate $ (107) - (78) - RMB (148) 4.34 (36) 4.25 For the six months endedJune 30, 2021 2020 Exchange gains and losses Average exchange rate Exchange gains and losses Average exchange rate $ (88) - (24) - RMB (139) 4.36 73 4.29
	2021 Exchange gains and losses Average exchange rate $ (88) - RMB (139) 4.36
	Exchange gains and losses $ (88) RMB (139)	Exchange gains and losses (24) 73

1. Fair value of financial instruments

2. (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 Consolidated 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:

Financial assets at fair value through profit or loss－ non-current Private fund Financial assets at fair value through profit or loss－ non-current Private fund			June 30, 2021	June 30, 2021
			Fair value
		Level 1 $ -	Level 2 - December	Level 3 4,458 31, 2020	Total
					4,458
			Fair value
		Level 1 $ -	Level 2 -	Level 3 4,557	Total
					4,557

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 2020 Fair value Level 1 Level 2 Level 3 Total Financial assets at fair value － through profit or loss non-current Private fund $ - - 4,741 4,741

• (B) Reconciliation of Level 3 fair values

Name		For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
			2021
		Opening balance In profit or loss Ending balance $ 4,557 (99) 4,458 For the six months ended June 30,		Ending balance
Financial assets at fair value through profit or loss－private fund Name
			2020
		Opening balance $ 4,797	In profit or loss (56)	Ending balance
Financial assets at fair value through profit or loss－private fund				4,741

• (C) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Consolidated 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:

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

• 18) Financial risk management

There were no significant changes in the Consolidated Company’s financial risk management and policies as disclosed in Note 6(19) of the consolidated financial statements for the year ended December 31, 2020.

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

19) Capital management

The objectives, policies and processes of capital management of the Consolidated Company has been applied consistently with those disclosed in the consolidated financial statements for the year ended December 31, 2020. Please refer to Note 6(20) of the consolidated financial statements for the year ended December 31, 2020 for the related information.

• 20) Investing and financing activities not affecting current cash flow

• The right-of-use assets are acquired by lease, please refer to Note 6(5) for the related information.

• The Consolidated Company’s financing activities which did not affect the current cash flow in the six months ended June 30, 2021 and 2020, were as follows:

==> picture [426 x 115] intentionally omitted <==

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

Non-cash changes
Foreign
January 1, exchange Fair value June 30,
2021 Cash flows Acquisitions Additions Decrease movement changes 2021
Lease liabilities $ 77,625 (16,670) - 9,121 (2,647) - - 67,429
Non-cash changes
Foreign
January 1, exchange Fair value June 30,
2020 Cash flows Acquisitions Additions Decrease movement changes 2020
Lease liabilities $ 76,259 (16,952) - 11,384 (64) - - 70,627
----- End of picture text -----

(7) Related-party transactions

• 1) Names and relationship with related parties

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

Name of related party Relationship with the Consolidated Company

104 Hope Foundation Same chairman

• －

• 2) Transactions with related parties Rental income

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

104 Hope Foundation	For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
	2021	2020	2021	2020
	$ 3	3	6	6

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

• 3) Key management personnel compensation

Key management personnel compensation comprised:

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Short-term employee benefits Share-based payments	For the three months ended June 30,	For the three months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
	2021	2020	2021	2020
	$ 18,566 1,087	16,165 846	37,251 2,469	35,002 2,212
	$ 19,653	17,011	39,720	37,214

(8) Pledged assets

The carrying values of pledged assets were as follows:

Pledged assets	Object	June 30, 2021 $ 10,000	December 31, 2020	June 30, 2020
Time deposits (recorded under other financial assets－ non-current)	Guarantee for employment services		10,000	10,000

(9) Significant Commitments and Contingencies

• 1) Unrecognized contractual commitments

The Consolidated Company applied to the Council of Labor Affairs for permission to provide employment services in accordance with the Employment Services Act. For the six months ended June 30, 2021 and 2020, the guaranteed amount provided by banks on behalf of the Consolidated Company was $1,000 thousand.

• 2) Contingent liabilities: None.

(10) Losses due to major disasters: None.

(11) Significant subsequent events: None.

(12) Other

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

Function Account	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,
	2021				2020
	Operating costs	Operating expenses	Non- operating expenses (Note)	Total	Operating costs	Operating expenses	Non- operating expenses	Total
Employee benefits Salary Health and labor insurance Pension Remuneration of directors Other personnel expense Depreciation Amortization	25,720 1,899 1,022 - 664 4,117 90	227,391 15,669 8,893 1,825 5,685 12,046 220	2,498 284 132 - 167 297 1	255,609 17,852 10,047 1,825 6,516 16,460 311	27,638 1,837 1,057 - 750 5,237 199	210,727 14,490 8,612 932 5,698 12,298 254	2,627 261 127 - 160 457 -	240,992 16,588 9,796 932 6,608 17,992 453

See accompanying notes to consolidated financial statements.

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Function Account	For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
	2021				2020
	Operating costs	Operating expenses	Non- operating expenses (Note)	Total	Operating costs	Operating expenses	Non- operating expenses	Total
Employee benefits Salary Health and labor insurance Pension Remuneration of directors Other personnel expense Depreciation Amortization	49,487 3,975 2,092 - 1,312 8,798 182	442,379 31,834 17,606 3,595 11,300 24,344 389	4,852 572 267 - 326 596 1	496,691 36,381 19,965 3,595 12,938 33,738 572	52,447 3,646 2,089 - 1,467 11,296 398	413,165 28,955 17,192 2,205 11,322 25,226 507	4,781 514 252 - 311 988 1	470,393 33,115 19,533 2,205 13,100 37,510 906

Note: The Consolidated Company accounts for other gains and losses by presenting non-operating expenses with the related non-operating income, net.

• 2) Seasonality of operations

The Consolidated Company’s operations were not affected by seasonality or cyclicality factors.

(13) Other disclosures items

• 1) Information on significant transactions

The following were the information on significant transactions required by the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" for the Consolidated Company for the six months ended June 30, 2021:

1. Loans to other parties: None.

2. Guarantees and endorsements for other parties: None.

3. Securities held as of June 30, 2021 (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 (%)	Fair value
The Company	Private fund-SparkLabs Taipei Fund I	-	Financial assets at fair value through profit or loss－ non-current	-	4,458	-%	4,458

1. Individual securities acquired or disposed of with accumulated amount exceeding the lower of $300 million or 20% of the capital stock: None.

2. Acquisition of individual real estate with amount exceeding $300 million or 20% of the capital stock: None.

3. Disposal of individual real estate with amount exceeding the lower of $300 million or 20% of the capital stock: None.

See accompanying notes to consolidated financial statements.

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Notes to the Consolidated Financial Statements

1. Related-party transactions for purchases and sales with amounts exceeding the lower of $100 million or 20% of the capital stock: None.

2. Receivables from related parties with amount exceeding the lower of $100 million or 20% of the capital stock: None.

3. Trading in derivative instruments: None.

4. Business relationships and significant intercompany transactions:

Number (note 1)	Name of company	Name of counterparty	Nature of relationship (note 2)		Intercompany transactions	Intercompany transactions	Intercompany transactions
				Account name	Amount (note 3)	Trading terms	Percentage of the consolidated total operating revenue or total assets
0 0 0 0 0 0 1 1 3	The Company The Company The Company The Company The Company The Company 104 Consulting 104 Consulting Redpoint Information	104 Consulting 104 Consulting 104 Consulting 104 Consulting 104 Human Resources Consultancy 104 Human Resources Consultancy The Company The Company 104 Human Resources Consultancy	1 1 1 1 1 1 2 2 3	Sales Miscellaneous income Accounts receivable Other receivables Other receivables Miscellaneous income Sales Accounts receivable Sales	12,430 2,395 5,811 1,235 3,228 6,165 7,859 4,157 1,584	No significant differences with third-party transactions Income for service support and asset authorization; there are no other customers for comparison No significant differences with third-party transactions There are no other customers for comparison There are no other customers for comparison Income for service support and asset authorization; there are no other customers for comparison There are no other customers for comparison There are no other customers for comparison There are no other customers for comparison	1.39% 0.27% 0.20% 0.04% 0.11% 0.69% 0.88% 0.15% 0.18%

• Note 1: 1. 0 represents the Company

• 1 represents 104 Consulting

• 2 represents 104 Human Resource Consultancy

• 3 represents Redpoint Information

• Note 2: 1. Parent company to subsidiary company.

• Subsidiary company to parent company.

• Subsidiary company to subsidiary company

Note 3: Mutual business dealings between the parent company and subsidiaries amounting to $1,000 thousand are disclosed.

Note 4: Related-party transactions have been eliminated in the preparation of the consolidated financial statements.

See accompanying notes to consolidated financial statements.

29

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

2) Information on investees:

The following is the information on investees for the six months ended June 30, 2021 (excluding information on investees in Mainland China):

										Unit: tho	usand dollars
Name of investor	Name of investee	Location	Main business and products	Original inves	tment amount	Balance of June 30, 2021			Net income (loss) of investee	Share of profit/ losses of investee (notes 1 and 2)	Remarks
				June 30, 2021	December 31, 2020	Shares (in thousands)	Percentage of ownership	Book value (notes 1 and 2)
The Company	104 Consulting	Taiwan	General advertising services, IT software services, electronic information services, talent dispatching, management consultancy and data processing services	12,678	12,678	1,219	100.00%	31,885	3,726	3,726	Subsidiary

Note 1: The long-term investments and investment gain or loss accounts have been eliminated in the preparation of the consolidated financial statements.

Note 2: The investment gain (loss) and book value recognized by the Company are based on the unaudited financial statements of the investee companies under the equity method.

• 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 4)	Method of investment (note 1)	Aggregate investment amount remitted from Taiwan at beginning of year (note 4)	Amount remitted or returned in **current year **		Aggregate investment amount remitted from Taiwan at end of period (note 4)	Net income (loss) of investee	Percentage of direct or indirect ownership by the Company (%)	Investment gain (loss) (notes 2 and 3)	Book value as of June 31, 2021 (notes 2 and 3)	Amount of investment income remitted back to Taiwan at end of period
					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)	(3,201) 1,482	70.00% 100.00%	(2,240) 1,482	10,760 37,276	- -

Note 1: Ways of investments are as follows: (1) direct investment in Mainland China.

  - (2)  others.

• Note 2: The long-term investments and investment gain or loss accounts have been eliminated in the preparation of the consolidated financial statements.

• Note 3: The investment gain (loss) and book value disclosed above included direct and indirect investments. The investment gain (loss) and book value recognized by the Company are based on the unaudited financial statements of the investee companies under the equity method.

• Note 4: Based on historical exchange rates.

• Limitation on investment in Mainland China:

Note 4: Based on historical exchange rates. Limitation on investment in Mainland China:	Note 4: Based on historical exchange rates. Limitation on investment in Mainland China:	Note 4: Based on historical exchange rates. Limitation on investment in Mainland China:
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)	77,172 (USD 2,770)	835,712

Note 1: Limitation on investment in Mainland China: 60% of the Company’s stockholders’ equity of $1,392,854 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 period-end rate of June 30, 2021 (USD : NTD=1:27.86).

See accompanying notes to consolidated financial statements.

30

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1. Significant transactions:

Significant transactions with the investees in Mainland China for the six months ended June 30, 2021, for which inter-company transactions were eliminated upon consolidation, are disclosed in “Information on significant transactions”.

• 4) 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

The Consolidated Company identifies reportable segment in accordance with the reported information which used by operating decision maker when making decision. To develop diversified career services and improve operating synergy, the Consolidated Company only has a single reportable segment and considerate the overall operating profit and loss. Please refer to consolidated financial statements of comprehensive income for the related segment information for the six months ended June 30, 2021 and 2020.

See accompanying notes to consolidated financial statements.