104 — Interim / Quarterly Report 2022

Dec 20, 2022

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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 Three Months Ended March 31, 2022 and 2021

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 10~12 12 12~25 25~26 26 26 26 26 27 27~28 29 29~30 30 31

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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 March 31, 2022 and 2021, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2022 and 2021, 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$99,033 thousand and NT$112,318 thousand, constituting 3.26% and 4.18% of the consolidated total assets; and the total liabilities amounting to NT$7,723 thousand and NT$11,429 thousand, constituting 0.58% and 1.02% of the consolidated total liabilities as of March 31, 2022 and 2021, respectively; as well as the total comprehensive income (loss) amounting to NT$2,557 thousand and NT$9,955 thousand, constituting 2.06% and 9.66% of the consolidated total comprehensive income for the three months ended March 31, 2022 and 2021, 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 March 31, 2022 and 2021, and of its consolidated financial performance for the three months ended March 31, 2022 and 2021, as well as its consolidated cash flows for the three months ended March 31, 2022 and 2021 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IASs 34, “Interim Financial Reporting” endorsed and issued 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.

KPMG

Taipei, Taiwan (Republic of China) May 3, 2022

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 March 31, 2022 and 2021

104 CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2022, December 31 and March 31, 2021

(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 (note 6(3) and (12)) Total non-current assets		March 31, 2022	December 31, 2021 Amount % 2,521,057 86 971 - 74,015 2 9,254 - 26,697 1 2,631,994 89 4,429 - 210,493 8 67,263 2 1,017 - 9,150 - - - 8,964 - 10,000 1 2,322 - 313,638 11	March 31, 2021
		Amount % $ 2,575,559 85 1,008 - 109,635 4 11,846 - 28,998 1 2,727,046 90 4,580 - 205,717 7 67,055 3 810 - 9,150 - - - 9,422 - 10,000 - 1,473 - 308,207 10		Amount % 2,261,095 84 175 - 79,516 3 8,911 - 25,828 1 2,375,525 88 4,566 - 203,337 8 69,245 3 1,292 - 8,638 - 588 - 8,741 - 10,000 1 4,872 - 311,279 12

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Liabilities and Equity Current liabilities: Current contract liabilities (note 6(12)) Notes payable Accounts payable Other payables (note 6(13)) Current tax liabilities Current provisions for employee benefits 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		March 31, 2022				December 31, 2021 Amount % 682,838 24 1,148 - 5,772 - 488,276 17 42,955 1 36,460 1 31,602 1 35,890 1 1,324,941 45 36,445 1 8,796 - 45,241 1 1,370,182 46 331,907 11 397,574 14 378,199 13 5,339 - 456,722 16 849,260 29 ( 5,709) - 1,573,032 54 2,418 - 1,575,450 54 2,945,632 100		March 31, 2021
		Amount $ 741,131 808 3,446 374,932 69,335 38,012 33,481 31,778 1,292,923 34,361 8,428 42,789 1,335,712 331,907 397,574 378,199 5,339 588,497 972,035 ( 4,103) 1,697,413 2,128 1,699,541 $ 3,035,253	%			Amount		Amount %
			25 - - 13 2 1 1 1 43 1 - 1 44 11 13 13 - 19 32 - 56 - 56 100			682,838 1,148 5,772 488,276 42,955 36,460 31,602 35,890 1,324,941 36,445 8,796 45,241 1,370,182 331,907 397,574 378,199 5,339 456,722 849,260 ( 5,709) 1,573,032 2,418 1,575,450 2,945,632		632,992 24 54 - 1,378 - 290,298 11 46,928 2 31,122 1 33,052 1 32,867 1 1,068,691 40 37,030 1 12,240 1 49,270 2 1,117,961 42 331,907 12 397,574 15 378,199 14 6,121 - 455,626 17 839,946 31 ( 5,707) - 1,563,720 58 5,123 - 1,568,843 58 2,686,804 100

Total assets

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 months ended March 31, 2022 and 2021

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

Operating revenue (note 6(12)) Operating costs (notes 6(4), (5), (6), (7), (8), (13), 7 and 12) Gross profit Operating expenses (notes 6(3), (4), (5), (6), (7), (8), (13), 7 and 12): Selling expenses Administrative expenses Research and development expenses Expected credit loss Total operating expenses Operating income Non-operating income and expenses (notes 6(4), (5), (7), (8), (14), 7and 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 income (loss) Total comprehensive income Net income (loss) attributable to: Owners of parent Non-controlling interests Total comprehensive income (loss) attributable to: Owners of parent Non-controlling interests Earnings per share (note 6(11)) Basic earnings per share Diluted earnings per share	For the three	For the three	months ended March 31,	months ended March 31,	months ended March 31,
		2022	% 100 10 90 40 11 11 - 62 28 1 - - - 1 29 5 24 - - - 24 24 - 24 24 - 24 3.70 3.68	2021	% 100 10 90 37 9 21 - 67 23 1 - - - 1 24 - 24 - - - 24 24 - 24 24 - 24 3.13 3.12
		Amount $ 520,269 52,259 468,010 208,605 57,406 57,343 335 323,689 144,321 2,774 2,023 164 ( 243) 4,718 149,039 26,636 122,403 1,688 - 1,688 $ 124,091 $ 122,775 ( 372) $ 122,403 $ 124,381 ( 290) $ 124,091 $		Amount 437,900 44,667 393,233 162,876 38,996 89,433 184 291,489 101,744 2,623 1,769 14 ( 279) 4,127 105,871 2,360 103,511 ( 407 ) - ( 407) 103,104 103,998 ( 487) 103,511 103,630 ( 526) 103,104
		$

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 three months ended March 31, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of parent

Balance at January 1, 2021 Net income (loss) for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) for the period Balance at March 31, 2021 Balance at January 1, 2022 Net income (loss) for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) for the period Balance at March 31, 2022		Common stock $ 331,907 - - - $ 331,907 $ 331,907 - - - $ 331,907		Capital surplus 397,574 - - - 397,574 397,574 - - - 397,574				**Retained earnings **	**Retained earnings **	**Retained earnings **		Total 735,948 103,998 - 103,998 839,946 849,260 122,775 - 122,775 972,035		Exchange differences on translation of foreign financial statements		Total equity attributable to Owners of parent 1,460,090 103,998 ( 368) 103,630 1,563,720 1,573,032 122,775 1,606 124,381 **1,697,413 **		Non- controlling interests 5,649 ( 487 ) ( 39) ( 526) 5,123 2,418 ( 372 ) 82 ( 290) 2,128		Total equity
						Legal reserve 378,199 - - - 378,199 378,199 - - - 378,199		Special reserve	Unappropriated earnings
								6,121 - - - 6,121 5,339 - - - 5,339		351,628 103,998 - 103,998 455,626 465,722 122,775 - 122,775 588,497				( 5,339 ) - ( 368) ( 368) ( 5,707) ( 5,709 ) - 1,606 1,606 ( 4,103)						1,465,739 103,511 ( 407) 103,104 1,568,843 1,575,450 122,403 1,688 124,091 1,699,541

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 three months ended March 31, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

(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 Unrealized foreign exchange gain 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 current assets Total net changes in operating assets Net changes in operating liabilities: Contract liabilities Notes payable Accounts payable Other payables Current provision for employee benefits 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 Increase in guarantee deposits paid Decrease (increase) in other non-current assets Net cash flows used in investing activities Cash flows from (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 Increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the three months ended March 31,
		2022 $ 149,039 16,889 207 335 243 ( 2,774 ) ( 151 ) ( 13) 14,736 ( 37 ) ( 35,955 ) ( 2,430 ) ( 2,301) ( 40,723) 58,293 ( 340 ) ( 2,326 ) ( 105,412 ) 1,552 ( 4,112 ) ( 368) ( 52,713) ( 93,436) ( 78,700) 70,339 2,612 ( 243 ) ( 256) 72,452 ( 11,554 ) ( 458 ) 849 ( 11,163) ( 8,474) ( 8,474) 1,687 54,502 2,521,057 $ 2,575,559		2021 105,871 17,278 261 184 279 ( 2,623 ) ( 9 ) - 15,370 ( 14 ) ( 28,794 ) 563 11,216 ( 17,029) 32,116 - ( 481 ) ( 107,384 ) 908 4,322 ( 371) ( 70,890) ( 87,919) ( 72,549) 33,322 2,483 ( 279 ) ( 380) 35,146 ( 709 ) ( 441 ) ( 648) ( 1,798) ( 8,359) ( 8,359) ( 406) 24,583 2,236,512 2,261,095

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

For the three months ended March 31, 2022 and 2021

(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 May 3, 2022.

(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, 2022:

• 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”

• 2) 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:

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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, 2021. For the related information, please refer to note 4 of the consolidated financial statement for the year ended December 31, 2021.

(Continued)

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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 and issued by FSC and do not include all of the disclosures required by International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued 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 March 31, 2022 December 31, 2021 March 31, 2021 100.00% 100.00% 100.00% 70.00% 70.00% 70.00% 100.00% 100.00% 100.00%	Percentage of ownership March 31, 2022 December 31, 2021 March 31, 2021 100.00% 100.00% 100.00% 70.00% 70.00% 70.00% 100.00% 100.00% 100.00%	Notes
			March 31, 2022 100.00% 70.00% 100.00%	December 31, 2021 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”.

(Continued)

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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.

(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, 2021. For the related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2021.

(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, 2021. For the related information, please refer to Note 6 of the consolidated financial statements for the year ended December 31, 2021.

1) Cash and cash equivalents

Financial assets at fair value through profit or loss Cash Checking deposits Demand deposits Time deposits Cash equivalents－Bonds purchased under resell agreement Cash and cash equivalents in the consolidated statement of cash flows Mandatorily measured at fair value through profit or loss－non-current Private fund	March 31, 2022 $ 69 - 180,252 2,366,838 28,400 $ 2,575,559 March 31, 2022 $ 4,580	December 31, 2021 70 391 137,632 2,319,464 63,500 2,521,057 December 31, 2021 4,429	March 31, 2021 35 50 232,101 2,007,909 21,000 2,261,095 March 31, 2021 4,566

2) Financial assets at fair value through profit or loss

(Continued)

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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)	March 31, 2022 $ 1,008 109,663 1,246 (28) (1,246) $ 110,643	December 31, 2021 971 74,056 874 (41) (874) **74,986 **	March 31, 2021 175 79,744 - (228) - 79,691

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 for notes receivable, accounts receivable and overdue receivable were determined as follows:

Aging 1~90 days Aging 91~120 days Aging 121~365 days Aging over 365 days	Gross carrying amount $ 100,387 3,817 6,467 1,246 $ 111,917		March 31, 2022	Lifetime expected credit loss allowance 25 1 2 1,246 1,274
			Weighted- average expected loss rate (%)
			0.03 0.03 0.03 100.00

Aging 1~90 days Aging 91~120 days Aging 121~365 days Aging over 365 days	Gross carrying amount $ 59,612 3,083 12,332 874 $ 75,901		December 31, 2021	Lifetime expected credit loss allowance 32 2 7 874 915
			Weighted- average expected loss rate (%)
			0.05 0.05 0.05 100.00

(Continued)

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104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Aging 1~365 days	Gross carrying amount $ 79,919		March 31, 2021
			Weighted- average expected loss rate (%)	Lifetime expected credit loss allowance **228 **
			0.29

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

Balance on January 1 Impairment losses recognized Accounts recovered Balance on March 31	For the three months ended March 31,	For the three months ended March 31,
	2022 $ 915 335 24 $ 1,274	2021
		- 184 44
		228

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 three months ended March 31, 2022 and 2021 were as follows:

Cost or deemed cost: Balance at January 1, 2022 Additions Disposals Effect of movements in exchange rates Balance at March 31, 2022 Balance at January 1, 2021 Additions Disposals Effect of movements in exchange rates Balance at March 31, 2021 Depreciation and impairment loss: Balance at January 1, 2022 Depreciation Disposals Effect of movements in exchange rates Balance at March 31, 2022 Balance at January 1, 2021 Depreciation Disposals Effect of movements in exchange rates Balance at March 31, 2021 Carrying amount: Balance at January 1, 2022 Balance at March 31, 2022 Balance at January 1, 2021 Balance at March 31, 2021		Land		Buildings		Computer equipment		Office equipment		Leasehold improvement		Other equipment		Unfinished construction		Total
		$ 103,562 - - - $ 103,562 $ 103,562 - - - $ 103,562 $ - - - - $ - $ - - - - $ - $ 103,562 $ 103,562 $ 103,562 $ 103,562		76,971 - - - 76,971 76,781 190 - - 76,971 42,942 627 - - 43,569 39,918 816 - - 40,734 34,029 33,402 36,863 36,237		394,607 2,491 ( 404 ) 100 396,794 366,205 1,782 ( 695 ) ( 20) 367,272 335,297 6,247 ( 404 ) 99 341,239 312,547 6,672 ( 695 ) ( 19) 318,505 59,310 55,555 53,658 48,767		5,582 - - 2 5,584 4,873 195 - - 5,068 4,570 205 - 2 4,777 3,870 153 - - 4,023 1,012 807 1,003 1,045		53,288 188 - - 53,476 54,133 - - - 54,133 43,607 917 - - 44,524 44,226 759 - - 44,985 9,681 8,952 9,907 9,148		27,805 241 - - 28,046 26,964 197 - - 27,161 24,906 403 - - 25,309 23,074 483 - - 23,557 2,899 2,737 3,890 3,604		- 702 - - 702 - 974 - - 974 - - - - - - - - - - - 702 - 974		661,815 3,622 ( 404 ) 102 665,135 632,518 3,338 ( 695 ) ( 20) 635,141 451,322 8,399 ( 404 ) 101 459,418 423,635 8,883 ( 695 ) ( 19) 431,804 210,493 205,717 208,883 203,337

As of March 31, 2022, December 31 and March 31, 2021, the property, plant and equipment were not pledged.

(Continued)

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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, 2022 Addition Addition (modification of contract) Balance at March 31, 2022 Balance at January 1, 2021 Addition Balance at March 31, 2021 Depreciation: Balance at January 1, 2022 Depreciation Balance at March 31, 2022 Balance at January 1, 2021 Depreciation Balance at March 31, 2021 Carrying amount: Balance at January 1, 2022 Balance at March 31, 2022 Balance at January 1, 2021 Balance at March 31, 2021		Building $ 159,848 6,632 4 $ 166,484 $ 137,569 - $ 137,569 $ 94,267 8,032 $ 102,299 $ 63,265 7,891 $ 71,156 $ 65,581 $ 64,185 $ 74,304 $ 66,413	Transportation equipment 7,430 1,497 149 9,076 6,256 816 7,072 5,748 458 6,206 3,736 504 4,240 1,682 2,870 2,520 2,832	Total 167,278 8,129 153 175,560 143,825 816
				144,641 100,015 8,490 108,505 67,001 8,395 75,396 67,263 67,055 76,824 69,245

6) Intangible assets

There were no significant additions, disposal, or recognition and reversal of impairment losses of intangible assets for the three months ended March 31, 2022 and 2021. 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, 2021.

(Continued)

16

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

7) Lease liabilities

The Consolidated Company’s lease liabilities were as follows:

The Consolidated Company’s lease liabilities	were as follows:
Current Non-current Total	March 31, 2022 $ 33,481 34,361 $ 67,842	December 31, 2021 31,602 36,445 68,047	March 31, 2021
			33,052 37,030 70,082

Please refer to Note 6(15) financial instrument for the maturity information.

The amounts under profit and loss were as follows:

Interest expense of lease liabilities Short term lease	For the three months ended March 31,	For the three months ended March 31,
	2022 $ 243 $ 678	2021
		279 731

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 three months ended March 31, 2022 2021 $ 921 1,010 8,474 8,359 $ 9,395 9,369
	2022 $ 921 8,474 $ 9,395

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.

(Continued)

17

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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, 2021 and 2020.

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

Operating costs Selling expenses Administrative expenses Research and development expenses Total	For the three months ended March 31, 2022 2021 $ 5 3 24 20 13 8 11 7 $ 53 38
	2022 $ 5 24 13 11 $ 53

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 Total	For the three months ended March 31,	For the three months ended March 31,
	2022 $ 1,737 5,709 1,340 1,724 129 $ 10,639	2021
		1,067 4,901 995 2,782 135 9,880

(Continued)

18

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

• 9) Income taxes

• 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 March 31,	For the three months ended March 31,
	2022 $ 26,636 - $ 26,636	2021 21,005 (18,645) 2,360

1. Assessment of tax

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

10) Capital and other equity

There was no significant change in capital and other equity. For the related information, please refer to note 6(10) of the consolidated financial statements for the year ended December 31, 2021.

• 11) Earnings per share

The calculation of basic and diluted earnings per share for the three months ended March 31, 2022 and 2021 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 March 31,	For the three months ended March 31,
	2022	2021
	$ 122,775 33,190 $ 3.70 $ 122,775 33,190 191 33,381 $ 3.68	103,998
		33,190
		3.13
		103,998
		33,190 165
		33,355
		3.12

(Continued)

19

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

12) 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	For the three months ended March 31, 2022 2021 $ 518,266 433,386 2,003 4,514 $ 520,269 437,900 $ 520,269 437,900
	2022
	$ 518,266 2,003 $ 520,269 $ 520,269

1. Contract balances

Notes Receivable Accounts Receivable Overdue receivable (recorded under other non-current assets) Less: Allowance for impairment－accounts receivable Allowance for doubtful accounts－ overdue receivable (recorded under other non-current assets) Total Contract liabilities	March 31, 2022 $ 1,008 109,663 1,246 (28) (1,246) $ 110,643 $ 741,131	December 31, 2021 971 74,056 874 (41) (874) 74,986 682,838	March 31, 2021
			175 79,744 - (228) - 79,691 632,992

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.

(Continued)

20

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021, the Company estimated its employees’ compensation to be $13,717 thousand and $9,734 thousand, respectively, and the remuneration of directors and supervisors to be $3,325 thousand and $2,360 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 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, 2021 and 2020, the employees’ compensation amounted to $37,510 thousand and $27,867 thousand, respectively, and the remunerations of directors and supervisors amounted to $9,093 thousand and $6,756 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 and expenses

• Interest Income

Deposit interest 2. Other Income Rent income Miscellaneous income 3. Other gains and losses Gain from lease modifications Net foreign exchange gains Other	For the three months ended March 31,	For the three months ended March 31,
	2022 2021 $ 2,774 2,623 For the three months ended March 31,	2021
	2022 2021 $ 3 3 2,020 1,766 $ 2,023 1,769 For the three months ended March 31,	2021
	2022 $ 13 229 (78) $ 164	2021
		- 54 (40) 14

(Continued)

21

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1. Finance costs

Lease liabilities interest expenses

[For the three months ended ] March 31, 2022 2021 $ 243 279

• 15) Financial instruments

• Categories of financial instruments

  • (A) Financial asset

Financial assets at fair value through profit or loss Mandatorily measured at fair value through profit or loss Financial assets at amortized cost： Cash and cash equivalents Notes and accounts receivable Other receivables Guarantee deposits paid Other non-current financial assets Subtotal Total Financial liabilities Financial liabilities at amortized cost： Notes and accounts payable Other payables Lease liabilities Total	March 31, 2022 $ 4,580 2,575,559 110,643 11,846 9,422 10,000 2,717,470 $ 2,722,050 March 31, 2022 $ 4,254 374,932 67,842 $ 447,028	December 31, 2021 4,429 2,521,057 74,986 9,254 8,964 10,000 2,624,261 2,628,690 December 31, 2021 6,920 488,276 68,047 563,243	March 31, 2021 4,566 2,261,095 79,691 8,911 8,741 10,000 2,368,438 2,373,004 March 31, 2021 1,432 290,298 70,082 361,812

• (B) Financial liabilities

(Continued)

22

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:

March 31, 2022 Non-derivative financial liabilities Notes and accounts payable Other payables Lease liabilities December 31, 2021 Non-derivative financial liabilities Notes and accounts payable Other payables Lease liabilities March 31, 2021 Non-derivative financial liabilities Notes and accounts payable Other payables Lease liabilities	Carrying amount $ 4,254 374,932 67,842 $ 447,028 $ 6,920 488,276 68,047 $ 563,243 $ 1,432 290,298 70,082 $ 361,812		Contractual cash flows 4,254 374,932 68,885 448,071 6,920 488,276 69,159 564,355 1,432 290,298 71,313 363,043		Within 1 year 4,254 374,932 34,182 413,368 6,920 488,276 32,330 527,526 1,432 290,298 33,847 325,577		1-5 years - - 34,703 34,703 - - 36,829 36,829 - - 37,466 37,466		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.

3. Interest rate analysis

Though the interest rate of partial demand deposits and time deposits of the Consolidated Company were floating, it did not result in significant cash flow risk since the market rate did not fluctuate wildly.

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		M	arch 31, 20	22 TWD 36,589	Dec	ember 31, 20	21		M	arch 31, 2021
				Exchange rate		Foreign currency 1,480	Exchange rate 27.68	TWD		Foreign currency 1,257	Exchange rate 28.54	TWD
				28.63				40,979				35,872
	USD

(Continued)

23

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(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 March 31, 2022 and 2021, would have increased the net profit after tax by $293 thousand and $287 thousand for the three months ended March 31, 2022 and 2021, respectively. The analysis assumes that all other variables remain constant.

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

The foreign exchange gains and losses (including realized and unrealized) on monetary items and the exchange rate to monetary New Taiwan Dollars (the expression of the Consolidated Company) were as follows:

Company) were as follows:
TWD CNY	For the three months ended March 31, 2022 2021 Exchange gains and losses Average exchange rate Exchange gains and losses Average exchange rate $ 308 - 19 - RMB (18) 4.40 9 4.01
		2021 Exchange gains and losses Average exchange rate 19 - 9 4.01
	Exchange gains and losses		Average exchange rate
	$ 308 RMB (18)	19 9	- 4.01

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 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 lease liabilities, the 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			March 31, 2022	March 31, 2022
			Fair value
		Level 1 $ -	Level 2 - December	Level 3 4,580 31, 2021	Total
					4,580
			Fair value
		Level 1 $ -	Level 2 -	Level 3 4,429	Total
					4,429

(Continued)

24

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Financial assets at fair value through profit or loss－ non-current Private fund				March 31, 2021	March 31, 2021	March 31, 2021
				Fair	value
		Level 1		Level 2		Level 3		Total
		$ -		-		4,566		4,566

• (B) Reconciliation of Level 3 fair values

Name		For the three months ended March 31,	For the three months ended March 31,	For the three months ended March 31,
			2022
		Opening balance In profit or loss Ending balance $ 4,429 151 4,580 For the three months ended March 31,		Ending balance
Financial assets at fair value through profit or loss－private fund Name				4,580
			2021
		Opening balance $ 4,557	In profit or loss 9	Ending balance
Financial assets at fair value through profit or loss－private fund				4,566

• (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. The quantified information need not be disclosed since the amount of financial assets at fair value through profit or loss, which is measured by using the net asset value method, was not significant.

16) Financial risk management

There were no significant changes in the Consolidated Company’s financial risk management and policies as disclosed in Note 6(16) of the consolidated financial statements for the year ended December 31, 2021.

• 17) 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, 2021. Please refer to Note 6(17) of the consolidated financial statements for the year ended December 31, 2021 for the related information.

(Continued)

25

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

• 18) 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 three months ended March 31, 2022 and 2021, were as follows:

Lease liabilities L libiliti		January 1, 2022		Cash flows		Non-cash	Non-cash	changes		March 31, 2022
						Additions		Additions (Contract modification)
		$ 68,047		(8,474)				140 changes		67,842
		January 1, 2021		Cash flows		Additions		Additions (Contract modification)		March 31, 2021
		$ 77,625		(8,359)		816		-		70,082

(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 March 31,	For the three months ended March 31,
	2022	2021
	$ 3	3

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

(Continued)

26

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

• 3) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits Share-based payments	For the three months ended March 31,	For the three months ended March 31,
	2022	2021
	$ 24,436 1,550	18,685 1,382
	$ 25,986	20,067

(8) Pledged assets

The carrying values of pledged assets were as follows:

Pledged assets	Object Guarantee for employment services	March 31, 2022	December 31, 2021	March 31, 2021
Time deposits (recorded under other financial assets－ non-current)		$ 10,000	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 three months ended March 31, 2022 and 2021, 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.

(Continued)

27

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(12) Other

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

Function Account	For the three months ended March 31,	For the three months ended March 31,	For the three months ended March 31,	For the three months ended March 31,	For the three months ended March 31,	For the three months ended March 31,	For the three months ended March 31,	For the three months ended March 31,
	2022				2021
	Operating costs	Operating expenses	Non- operating expenses (Note)	Total	Operating costs	Operating expenses	Non- operating expenses (Note)	Total
Employee benefits Salary Health and labor insurance Pension Remuneration of directors Other personnel expense Depreciation Amortization	37,641 3,133 1,742 - 1,058 1,711 20	232,972 15,960 8,821 3,325 5,559 14,910 187	2,444 297 129 - 166 268 -	273,057 19,390 10,692 3,325 6,783 16,889 207	24,767 2,076 1,070 - 648 4,681 92	214,988 16,165 8,713 1,770 5,615 12,298 169	2,327 288 135 - 159 299 -	242,082 18,529 9,918 1,770 6,422 17,278 261

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 three months ended March 31, 2022:

1. Loans to other parties: None.

2. Guarantees and endorsements for other parties: None.

3. Securities held as of March 31, 2022 (excluding investment in subsidiaries, associates, and joint ventures):

ventures):
**Name of holder **	Category and name of security	Relationship with company	Account title	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	-	4,580	-%	4,580

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

(Continued)

28

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

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

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

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

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

5. Trading in derivative instruments: None.

6. 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	The Company The Company The Company The Company The Company	104 Consulting 104 Consulting 104 Consulting 104 Human Resources Consultancy 104 Human Resources Consultancy	1 1 1 1 1	Miscellaneous income Accounts receivable Other receivables Other receivables Miscellaneous income	1,263 4,283 1,305 1,666 1,666	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	0.24% 0.14% 0.04% 0.05% 0.32%

Note 1: 1. 0 represents the Company

1. 1 represents 104 Consulting

2. 2 represents 104 Human Resource Consultancy

3. 3 represents Redpoint Information

Note 2: 1. Parent company to subsidiary company.

1. Subsidiary company to parent company.

2. 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.

(Continued)

29

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

• 2) Information on investees:

The following is the information on investees for the three months ended March 31, 2022 (excluding information on investees in Mainland China):

Name of **investor **	Name of investee	Location	Main business and products	Original inves	tment amount	Balance of March 31, 2022	Balance of March 31, 2022	Balance of March 31, 2022	Net income (loss) of investee	Share of profit/ losses of investee (note)	Remarks
				March 31, 2022	December 31, 2021	Shares (in thousands)	Percentage of ownership	Book value (note)
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%	37,436	722	722	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:

					Unit: thousand dollars	Unit: thousand dollars	Unit: thousand dollars	Unit: thousand dollars	Unit: thousand dollars	Unit: thousand dollars	Unit: thousand dollars	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 March 31, 2022 (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)	(1,239) 158	70.00% 100.00%	(867) 158	4,967 39,525	- -

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.

(Continued)

30

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

1. Limitation on investment in Mainland China:

Limitation on investment in Mainland China:	Limitation on investment in Mainland China:	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)	79,291 (USD 2,770)	1,018,448

• Note 1: Limitation on investment in Mainland China: 60% of the Company’s stockholders’ equity of $1,697,413 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 March 31, 2022 (USD : NTD=1:28.625).

• Significant transactions:

For the significant inter-company transaction with the investment in Mainland China for the three months ended March 31, 2022, please refer to "Business relationships and significant intercompany transactions". The above transactions have been eliminated in the preparation of the consolidated financial statements.

• 4) Major shareholders:

Major shareholders:
		Unit: shares
Shareholding Shareholder’s Name	Shares	Percentage
JcbNext Berhad Rocky Yang Vicky Ku Askforce Corporation	7,392,394 4,495,402 4,495,401 2,427,344	22.27 % 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.

(Continued)

31

104 CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(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 three months ended March 31, 2022 and 2021.