Altek - Interim / Quarterly Report 2021

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT

MARCH 31, 2021 AND 2020

(Stock Code ： 3059)

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

PWCR 21000004 (In Thousands of New Taiwan Dollars)

To Altek Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Altek Corporation and subsidiaries as at March 31, 2021 and 2020, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” as endorsed by Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65, “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of 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 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 explained in Note 4(3), the financial statements of certain insigniticant consolidated subsidiaries and the information disclosed in Note 13 were based solely on the reports prepared by those subsidiaries which were not reviewed by independent auditors. Those statements reflect total assets of $2,477,704 and $2,317,812, constituting 17% and 17% of the consolidated total assets, and total liabilities of $24,292 and $12,827, constituting 0% and 0% of the consolidated total liabilities as at March 31, 2021 and 2020, respectively, and total comprehensive income of ($4,152) and ($15,954), constituting (13%) and 182%

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of the consolidated total comprehensive income for the three-month periods then ended, respectively.

Qualified Conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries been reviewed by independent auditors, as described in the Basic for qualified conclusion section above, based on our reviews, 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 the Group as at March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three-month periods then ended in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Li, Tien-Yi Chiang, Tsai-Yen

For and on behalf of PricewaterhouseCoopers, Taiwan

May 7, 2021

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

(Expressed in thousands of New Taiwan dollars) (The balance sheets as of March 31, 2021 and 2020 are reviewed, not audited)

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March 31, 2021 December 31, 2020 March 31, 2020
Assets Notes AMOUNT % AMOUNT % AMOUNT %
Current assets
1100 Cash and cash equivalents 6(1) $ 5,301,396 36 $ 5,373,406 37 $ 5,851,576 42
1110 Current financial assets at fair 6(2)
value through profit or loss 502,338 3 349,664 2 - -
1136 Current financial assets at 6(4)
amortised cost 290,938 2 423,387 3 298,620 2
1140 Current contract assets - - 4,414 - - -
1170 Accounts receivable, net 6(5) 1,419,456 10 1,273,383 9 713,674 5
1200 Other receivables 59,620 - 68,825 - 43,918 1
1220 Current income tax assets 3,294 - 3,292 - 5,075 -
130X Inventories, net 6(6) 1,155,306 8 1,106,726 8 978,962 7
1410 Prepayments 294,491 2 217,600 1 145,509 1
1470 Other current assets 8,375 - 4,535 - 10,591 -
11XX Current Assets 9,035,214 61 8,825,232 60 8,047,925 58
Non-current assets
1510 Non-current financial assets at 6(2)
- - -
fair value through profit or loss 59,735 48,229 36,227
1517 Non-current financial assets at 6(3)
fair value through other
comprehensive income 36,601 - 43,130 - 49,873 1
1535 Non-current financial assets at 6(4)
amortised cost 1,303,146 9 1,419,002 10 1,386,875 10
1600 Property, plant and equipment 6(7) and 8 2,413,417 17 2,420,736 17 3,082,284 22
1755 Right-of-use assets 6(8) 132,627 1 122,863 1 129,498 1
1760 Investment property 6(9) and 8 1,396,944 10 1,406,586 10 762,028 6
1780 Intangible assets 6(10) 192,022 1 215,261 1 189,835 1
1840 Deferred income tax assets 202,725 1 182,361 1 164,015 1
1900 Other non-current assets 35,303 - 34,746 - 40,393 -
15XX Non-current assets 5,772,520 39 5,892,914 40 5,841,028 42
1XXX Total assets $ 14,807,734 100 $ 14,718,146 100 $ 13,888,953 100
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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

(Expressed in thousands of New Taiwan dollars)

(The balance sheets as of March 31, 2021 and 2020 are reviewed, not audited)

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March 31, 2021 December 31, 2020 March 31, 2020
Liabilities and Equity Notes AMOUNT % AMOUNT % AMOUNT %
Current liabilities
2100 Short-term borrowings 6(11) $ 2,540,000 18 $ 2,330,000 16 $ 2,740,000 20
2110 Short-term notes and bills 6(12)
payable 199,962 1 299,798 2 - -
2130 Current contract liabilities 32,721 - 32,568 - 151,763 1
2170 Accounts payable 1,265,001 9 1,296,475 9 606,622 4
2200 Other payables 586,611 4 485,953 4 479,329 4
2230 Current income tax liabilities 57,473 - 36,763 - 39,222 -
2250 Provisions for liabilities - 6(16)
current 10,694 - 9,295 - 6,858 -
2280 Current lease liabilities 11,476 - 9,336 - 7,487 -
2300 Other current liabilities 6(13) 202,881 1 437,093 3 202,423 2
21XX Current Liabilities 4,906,819 33 4,937,281 34 4,233,704 31
Non-current liabilities
2550 Provisions for liabilities - non- 6(16)
current 160,308 1 160,395 1 141,169 1
2570 Deferred income tax liabilities 477,744 3 464,691 3 454,124 3
2580 Non-current lease liabilities 103,161 1 95,176 1 93,424 1
2600 Other non-current liabilities 34,517 - 36,750 - 28,945 -
25XX Non-current liabilities 775,730 5 757,012 5 717,662 5
2XXX Total Liabilities 5,682,549 38 5,694,293 39 4,951,366 36
Equity attributable to owners of
parent
Share capital 6(17)
3110 Common stock 2,793,415 19 2,794,973 19 2,795,873 20
Capital surplus 6(18)
3200 Capital surplus 2,347,461 17 2,335,226 16 2,334,580 17
Retained earnings 6(19)
3310 Legal reserve 1,402,467 8 1,402,467 9 1,394,151 10
3320 Special reserve 592,325 4 592,325 4 435,679 3
3350 Unappropriated retained
earnings 2,145,272 15 2,249,655 15 2,286,646 16
Other equity interest 6(20)
3400 Other equity interest ( 710,154)( 5)( 697,698)( 5)( 706,809)( 5)
3500 Treasury stocks 6(17) ( 209,287)( 1)( 209,287)( 1)( 146,136)( 1)
31XX Equity attributable to
owners of the parent 8,361,499 57 8,467,661 57 8,393,984 60
36XX Non-controlling interest 763,686 5 556,192 4 543,603 4
3XXX Total equity 9,125,185 62 9,023,853 61 8,937,587 64
3X2X Total liabilities and equity $ 14,807,734 100 $ 14,718,146 100 $ 13,888,953 100
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The accompanying notes are an integral part of these consolidated financial statements.

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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except earnings per share) (UNAUDITED)

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Three-month periods ended March 31
2021 2020
Items Notes AMOUNT % AMOUNT %
4000 Operating revenue 6(21) $ 1,980,863 100 $ 1,113,743 100
5000 Operating costs 6(6)(26)(27) ( 1,525,172)( 77)( 843,960)( 76)
5900 Net operating margin 455,691 23 269,783 24
Operating expenses 6(26)(27)
6100 Selling expenses ( 11,846)( 1)( 15,512)( 1)
6200 General and administrative
expenses ( 109,061)( 6)( 77,952)( 7)
6300 Research and development
expenses ( 306,793)( 15)( 206,933)( 19)
6450 Expected credit gains 12(2) 106 - 602 -
6000 Total operating expenses ( 427,594)( 22)( 299,795)( 27)
6900 Operating profit (loss) 28,097 1 ( 30,012)( 3)
Non-operating income and
expenses
7100 Interest income 6(22) 19,007 1 32,963 3
7010 Other income 6(23) 18,269 1 14,673 1
7020 Other gains and losses 6(24) 8,653 - 490 -
7050 Finance costs 6(25) ( 6,240) - ( 6,342) -
7000 Total non-operating income
and expenses 39,689 2 41,784 4
7900 Profit before income tax 67,786 3 11,772 1
7950 Income tax expense 6(28) ( 26,983)( 1)( 13,238)( 1)
8200 Profit (loss) for the period $ 40,803 2 ($ 1,466) -
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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except earnings per share) (UNAUDITED)

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Three-month periods ended March 31
2021 2020
Items Notes AMOUNT % AMOUNT %
Other comprehensive income
Components of other
comprehensive income that will
not be reclassified to profit or
loss
8316 Unrealised losses from financial 6(3)
assets measured at fair value
through other comprehensive
income $ 409 - ($ 418) -
8349 Income tax related to 6(28)
components of other
comprehensive income that will
not be reclassified to profit or
loss ( 396) - 83 -
8310 Components of other
comprehensive (loss) income
that will not be reclassified to
profit or loss 13 - ( 335) -
Components of other
comprehensive income that will
be reclassified to profit or loss
8361 Currency translation differences
of foreign operations ( 16,059)( 1)( 9,563)( 1)
8399 Income tax relating to the 6(28)
components of other
- -
comprehensive income 6,560 2,584
8360 Components of other
comprehensive loss that will be
reclassified to profit or loss ( 9,499)( 1)( 6,979)( 1)
8300 Total other comprehensive loss
for the period ($ 9,486)( 1)($ 7,314)( 1)
8500 Total comprehensive income
(loss) for the period $ 31,317 1 ($ 8,780)( 1)
Profit (loss), attributable to:
8610 Owners of the parent $ 31,438 2 $ 31,464 3
8620 Non-controlling interest 9,365 - ( 32,930)( 3)
Profit (loss) for the period $ 40,803 2 ($ 1,466) -
Comprehensive (loss) income
attributable to:
8710 Owners of the parent $ 5,212 - $ 20,796 2
8720 Non-controlling interest 26,105 1 ( 29,576)( 3)
Total comprehensive income
(loss) for the period $ 31,317 1 ($ 8,780)( 1)
9750 Basic earnings per share 6(29) $ 0.12 $ 0.12
9850 Diluted earnings per share 6(29) $ 0.12 $ 0.11
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The accompanying notes are an integral part of these consolidated financial statements.

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020 (Expressed in thousands of New Taiwan dollars) (UNAUDITED)

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Equity attributable to owners of the parent
Retained Earnings Other equity interest
Currency
translation
Additional paid-in Unappropriated differences of Treasury Non-controlling
Notes Common stock capital Legal reserve Special reserve retained earnings foreign operations Other stocks Total interest Total equity
Three-month period ended March 31,
2020
Balance at January 1, 2020 $ 2,753,613 $ 2,280,487 $ 1,394,151 $ 435,679 $ 2,394,976 ($ 494,335 ) ($ 121,024 ) $ - $ 8,643,547 $ 573,179 $ 9,216,726
Profit (loss) for the period - - - - 31,464 - - - 31,464 ( 32,930 ) ( 1,466 )
Other comprehensive income (loss) 6(20)
for the period - - - - - ( 10,333 ) ( 335 ) - ( 10,668 ) 3,354 ( 7,314 )
Total comprehensive income (loss) - - - - 31,464 ( 10,333 ) ( 335 ) - 20,796 ( 29,576 ) ( 8,780 )
Appropriation of 2019 earnings 6(19)
Cash dividends - - - - ( 139,794 ) - - - ( 139,794 ) - ( 139,794 )
Share-based payment transactions 6(15)(20) - - - - - - 15,571 - 15,571 - 15,571
Restricted stocks 6(15)(17)(18)(20) 42,260 54,093 - - - - ( 96,353 ) - - - -
Treasury shares repurchased - - - - - - - ( 146,136 ) ( 146,136 ) - ( 146,136 )
Balance at March 31, 2020 $ 2,795,873 $ 2,334,580 $ 1,394,151 $ 435,679 $ 2,286,646 ($ 504,668 ) ($ 202,141 ) ($ 146,136 ) $ 8,393,984 $ 543,603 $ 8,937,587
Three-month period ended March
31,2021
Balance at January 1, 2020 $ 2,794,973 $ 2,335,226 $ 1,402,467 $ 592,325 $ 2,249,655 ($ 550,536 ) ($ 147,162 ) ($ 209,287 ) $ 8,467,661 $ 556,192 $ 9,023,853
Profit for the period - - - - 31,438 - - - 31,438 9,365 40,803
Other comprehensive loss for the 6(20)
period - - - - - ( 26,239 ) 13 - ( 26,226 ) 16,740 ( 9,486 )
Total comprehensive income (loss) - - - - 31,438 ( 26,239 ) 13 - 5,212 26,105 31,317
Appropriation of 2020 earnings 6(19)
Cash dividends - - - - ( 134,249 ) - - - ( 134,249 ) - ( 134,249 )
Share-based payment transactions 6(15)(18)(20) - 26,060 - - - - 8,646 - 34,706 - 34,706
Retirement of employee restricted 6(15)(17)(18)(20)
shares ( 1,558 ) ( 1,994 ) - - - - 3,552 - - - -
Changes in ownership interests in 6(18)
subsidiaries - ( 11,831 ) - - - - - - ( 11,831 ) 11,831 -
Non-controlling interest - - - - - - - - - 169,558 169,558
Proceeds from disposal of financial 6(3)(30)
assets at fair value through other
comprehensive income - - - - ( 1,572 ) - 1,572 - - - -
Balance at March 31, 2021 $ 2,793,415 $ 2,347,461 $ 1,402,467 $ 592,325 $ 2,145,272 ($ 576,775 ) ($ 133,379 ) ($ 209,287 ) $ 8,361,499 $ 763,686 $ 9,125,185
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The accompanying notes are an integral part of these consolidated financial statements.

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Depreciation
Amortisation
Expected credit gains
Net gain on financial assets at fair value through
profit (loss)
Interest expense
Interest income
Share-based payment compensation cost
Gain on disposal of property, plant and
equipment
Changes in operating assets and liabilities
Changes in operating assets
Current contract asset
Accounts receivable
Other receivables
Inventories
Prepayments
Other current assets
Changes in operating liabilities
Current contract liabilities
Notes payable
Accounts payable
Other payables
Provisions for liabilities
Other current liabilities
Other non-current liabilities
Cash outflow generated from operations
Interest received
Interest paid
Income tax paid
Net cash flows used in operating activities Three-month periods ended March 31
Notes
2021
2020
$
67,786
$
11,772
6(7)(8)(9)(26)
46,931
45,527
6(10)(26)
23,357
16,997
12(2)
(
106 ) (
602 )
6(2)(24)
(
13,993 )
3,929
6(25)
6,240
6,342
6(22)
(
19,007 ) (
32,963 )
6(15)
34,706
15,571
6(24)
(
69 )
-
4,414
-
(
146,510 )
204,525
(
2,628 ) (
13,439 )
(
53,887 )
52,850
(
77,343 ) (
1,366 )
(
3,855 ) (
4,746 )
166
117,713
-
(
4,336 )
(
24,955 ) (
401,886 )
(
29,849 ) (
87,059 )
1,316
5,641
15,816
1,596
31
63
(
171,439 ) (
63,871 )
33,095
44,331
(
5,281 ) (
5,257 )
(
7,393 ) (
8,974 )
(
151,018 ) (
33,771 )

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortised cost
Proceeds from repayments of financial assets at
amortised cost
Proceeds from capital reduction of financial assets
at fair value through other comprehensive income
Proceeds from disposal of financial assets at fair
value through other comprehensive income
Acquisition of financial asset at fair value through
profit or loss
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and
equipment
Acquisition of intangible assets
Increase in deposit paid
Net cash flows from (used in) investing
activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings
Repayment of short-term borrowings
Proceeds from issuance of short-term notes and bills
payable
Repayment of short-term notes and bills payable
Repayment of long-term borrowings
Decrease in guarantee deposits received
Repayment of principal portion of lease liabilities
Acquisition of treasury stocks
Changes in non-controlling interest
Net cash flows from financing activities
Effect of exchange rate
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Three-month periods ended March 31
Notes
2021
2020
$
-
($
978,569 )
238,623
13,551
3,056
-
1,033
-
(
151,851 )
-
6(31)
(
38,645 ) (
1,621 )
69
-
6(31)
(
278 ) (
538 )
(
569 )
-
51,438
(
967,177 )
6(32)
3,960,000
2,920,000
6(32)
(
3,750,000 ) (
2,380,000 )
6(32)
299,662
229,629
6(32)
(
400,000 ) (
460,000 )
6(32)
(
250,000 )
-
6(32)
(
2,160 ) (
414 )
6(32)
(
3,583 ) (
2,004 )
6(17)
-
(
146,136 )
169,558
-
23,477
161,075
4,093
25,394
(
72,010 ) (
814,479 )
6(1)
5,373,406
6,666,055
6(1)
$
5,301,396
$
5,851,576

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

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ALTEK CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated) (Unaudited)

1. HISTORY AND ORGANIZATION

Altek Corporation (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the development, manufacturing and sale of digital image technology application, and related export and import trade.

The Company was listed in the Taiwan Stock Exchange on December 24, 2002, as approved by the TaiTz (91) Letter No. 024976 of the former Securities and Futures Commission, Ministry of Finance, R.O.C., dated September 27, 2002.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were reported to the Board of Directors and issued on May 7, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRSs”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

New standards, interpretations and amendments endorsed by the FSC follows:	effective from 2021 are as
	Effective date by
	International Accounting
New Standards,Interpretations andAmendments	StandardsBoard
Amendments to IFRS 4, ‘Extension of the temporary exemption from	January 1, 2021
applying IFRS 9’
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest	January 1, 2021
Rate Benchmark Reform— Phase 2’
Amendment to IFRS 16, ‘Covid-19-related rent concessions	April 1, 2021(Note)
beyond 30 June 2021’
Note：Earlier application from January 1, 2021 is allowed by FSC.
The above standards and interpretations have no significant impact to the	Group’s financial condition
and financial performance based on the Group’s assessment.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

None.

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(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

endorsed by the FSC are as follows:
NewStandards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 3, ‘Reference to the conceptual framework’ 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’ Amendments to IFRS 17, ‘Insurance contracts’ Amendments to IAS 1, ‘Classification of liabilities as current or non-current’ Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ 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	January 1, 2022 To be determined by International Accounting Standards Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2022 January 1, 2022 January 1, 2022

endorsed by the FSC are as follows:

NewStandards,Interpretations and Amendments

Effective date by
International Accounting
Standards Board

Amendments to IAS 3, ‘Reference to the conceptual framework’
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’
Amendments to IFRS 17, ‘Insurance contracts’
Amendments to IAS 1, ‘Classification of liabilities as current or
non-current’
Amendments to IAS 1, ‘Disclosure of accounting policies’
Amendments to IAS 8, ‘Definition of accounting estimates’
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

January 1, 2022
To be determined by
International Accounting
Standards Board
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2022
January 1, 2022
January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2020, except for the compliance statement, basis of preparations, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the Rules Governing the Preparation of Financial Statements by Securities Issuers and IAS 34, ‘Interim Financial Reporting’ as endorsed by the FSC.
B. The consolidated financial statements should be read together with the 2020 consolidated financial statements.

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.

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  - (c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements:

Basis for preparation of consolidated financial statements is consistent with the 2020 consolidated financial statements.

(Blank below)

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B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name ofSubsidiaries	Main Business Activities		Ownership (%)		Note
					March 31,2020
					100 100 100 - 100 100 50 100 100 100 100 100 100 100 100 100 100 100 100	- Note 6 Note 5 Note 2 Note 6 Note 6 Note 6 Note 6 Note 6 Note 6 Note 6 Note 3 Note 5 - Note 6 Note 6 Note 6 Note 4 Note 6 Note 7 Note 6 -

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C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Employee benefits

Pension-Defined benefit plans

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.

(5) Income tax

A. The interim period income tax expense is recognized based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognized outside profit or loss is recognized in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognized in profit or loss.
Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

There have been no significant changes as of March 31, 2021. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2020.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash on hand revolving funds Checking accounts and demand deposits Time deposits Total	March 31,2021 December 31,2020 1,067 $ 1,052 $ 1,498,278 1,260,822 3,802,051 4,111,532 5,301,396 $ 5,373,406 $	March 31,2020
		890 $ 644,794 5,205,892
		5,851,576 $

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. The Group has no cash and cash equivalents pledged to others.

~15~

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

Items Current items: Financial assets mandatorily measured at fair value through profit or loss Structured deposits Valuation adjustment Total Non-current items: Financial assets mandatorily measured at fair value through profit or loss Unlisted stocks Valuation adjustment Total	March 31,2021 December 31,2020 499,373 $ 349,186 $ 2,965 478 502,338 $ 349,664 $ 10,312 $ 10,312 $ 49,423 37,917 59,735 $ 48,229 $	March 31,2020
		- $ -
		- $
		10,312 $ 25,915
		36,227 $

A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

Equity instruments Structured deposit Total	For the three-month period ended For the three-month period ended March 31,2021 March 31,2020 11,506 $ 3,929) ($ 2,487 - 13,993 $ 3,929) ($

B. The Group has no financial assets at fair value through profit or loss pledged to others as at March 31, 2021, December 31, 2020, and March 31, 2020.
C. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

(3) Financial assets at fair value through other comprehensive income

Items Non-current items: Equity instruments Unlisted stocks Valuation adjustment Total	March 31,2021 December 31,2020 135,895 $ 144,405 $ 99,294) ( 101,275) ( 36,601 $ 43,130 $	March 31,2020
		147,779 $ 97,906) (
		49,873 $

A. The Group has elected to classify equity instruments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $36,601, $43,130 and $49,873 as at March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

~16~

B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income amounted to $409 and ($418) for the three-month periods ended March 31, 2021 and 2020, respectively. For the three-month periods ended March 31, 2021, the accumulated loss due to delisting and transferring returned surplus was $1,572.
C. The Group’s has no financial assets at fair value through profit or loss as at March 31, 2021, December 31, 2020, and March 31, 2020 pledged to others.

(4) Financial assets at amortised cost

Financial assets at amortised cost
Items Current items: Time deposit with maturity from three months to one year Non-current items: Time deposit with maturity over one year	March 31,2021 December 31,2020 290,938 $ 423,387 $ 1,303,146 $ 1,419,002 $	March 31,2020
		298,620 $
		1,386,875 $

A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

below:
Interest income	For the three-month period ended March 31,2021 12,276 $	For the three-month period ended March 31,2020
		6,931 $

B. The Group has no financial assets at amortised cost pledged to others.
C. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

(5) Accounts receivable

Accounts receivable
A. The ageing analysis of accounts receivable that was past due but not impaired is March 31,2021 December 31,2020 Accounts receivable 1,419,616 $ 1,273,648 $ Less: Allowance for uncollectible accounts 160) ( 265) ( 1,419,456 $ 1,273,383 $ March 31,2021 December 31,2020 Not past due 1,412,624 $ 1,257,413 $ Up to 30 days 5,713 8,351 31 to 90 days 1,279 7,884 Over 361 days - - 1,419,616 $ 1,273,648 $	March 31,2020
	718,354 $ 4,680) (
	713,674 $
	as follows: March 31,2020
	601,037 $ 78,197 34,589 4,531
	718,354 $

The above ageing analysis was based on past due date.

~17~

B. As of March 31, 2021, December 31, 2020, and March 31, 2020, accounts receivable was all from contracts with customers. And as of January 1, 2020, the balance of accounts receivable and notes receivable from contracts with customers amounted to $918,019.
C. The Group’s accounts receivable does not hold any collateral provided by customers.
D. As at March 31, 2021, December 31, 2020, and March 31, 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes and accounts receivable was $1,419,456, $1,273,383 and $713,674, respectively.
E. Information relating to credit risk of accounts receivable is provided in Note 12(2).
(6) Inventories

Inventories
Raw materials Work in progress Finished goods Total Raw materials Work in progress Finished goods Total Raw materials Work in progress Finished goods Total		March 31,2021
	Cost 796,680 $ 266,526 124,421 1,187,627 $	Allowance for valuation loss 22,752) ($ 1,062) ( 8,507) ( 32,321) ($ December 31,2020	Book value
			773,928 $ 265,464 115,914
			1,155,306 $

	Cost 771,902 $ 165,380 208,592 1,145,874 $	Allowance for valuation loss 26,938) ($ 3,468) ( 8,742) ( 39,148) ($ March 31,2020	Book value
			744,964 $ 161,912 199,850
			1,106,726 $

	Cost 776,854 $ 159,899 95,595 1,032,348 $	Allowance for valuation loss 32,809) ($ 5,508) ( 15,069) ( 53,386) ($	Book value
			744,045 $ 154,391 80,526
			978,962 $

The cost of inventories recognised as expense for the period:

Cost of goods sold and others Reversal of on decline in market value ( Total	For the three-month period ended March 31,2021 1,531,999 $ 6,827) ( 1,525,172 $	For the three-month period ended March 31,2020 845,650 $ 1,690) 843,960 $

~18~

For the three-month periods ended March 31, 2021 and 2020, the Group reversed from a previous inventory write-down and accounted for as reduction of cost of goods sold because inventory that has been appropriated as loss on decline in market value was partially sold.

~19~

(7) Property, plant and equipment

At January 1 Cost Accumulated depreciation Opening net book amount Additions Reclassifications Depreciation charge Net exchange differences Closing net book amount At March 31 Cost Accumulated depreciation				2021

~20~

2020

At January 1
Cost
Accumulated depreciation
Opening net book amount
Additions
Depreciation charge
Net exchange differences
Closing net book amount
At March 31
Cost
Accumulated depreciation

Construction in
progress and
Buildings and
prepayment for
Land
structures
Machinery
Test equipment
equipment
Others
Total
468,684
$ 3,243,125
$ 901,360
$ 153,649
$ 3,901
$ 406,631
$ 5,177,350
$ -
832,133)
(
665,486)
(
147,799)
(
-
396,238)
(
2,041,656)
(
468,684
$ 2,410,992
$ 235,874
$ 5,850
$ 3,901
$ 10,393
$ 3,135,694
$ 468,684
$ 2,410,992
$ 235,874
$ 5,850
$ 3,901
$ 10,393
$ 3,135,694
$ -
-
-
96
1,083
-
1,179
-
21,494)
(
18,306)
(
615)
(
-
1,345)
(
41,760)
(
-
11,240)
(
1,512)
(
10)
(
36)
(
31)
(
12,829)
(
468,684
$ 2,378,258
$ 216,056
$ 5,321
$ 4,948
$ 9,017
$ 3,082,284
$ 468,684
$ 3,227,993
$ 895,377
$ 152,905
$ 4,948
$ 405,472
$ 5,155,379
$ -
849,735)
(
679,321)
(
147,584)
(
-
396,455)
(
2,073,095)
(
468,684
$ 2,378,258
$ 216,056
$ 5,321
$ 4,948
$ 9,017
$ 3,082,284
$

A. For the three-month periods ended March 31, 2021 and 2020, there was no capitalisation of borrowing interests attributable to the property, plant and equipment.

B. Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8.

~21~

`－` (8) Leasing arrangements lessee

A. The Group leases various assets including land, buildings, business vehicles. Rental contracts are typically made for periods of 1 to 49 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. Short-term leases with a lease term of 12 months or less comprise buildings and equipment. Lowvalue assets comprise printers.
C. The carrying amount of the depreciation charge are as follows:

Short-term leases with a lease term of 12 months or less comprise buildings and equipment. Low- value assets comprise printers. The carrying amount of the depreciation charge are as follows:	12 months or less comprise buildings and n charge are as follows:	12 months or less comprise buildings and n charge are as follows:	12 months or less comprise buildings and n charge are as follows:	equipment. Low-
March31,2021 December31,2020 March31,2020 Land 109,427 $ 110,455 $ 122,666 $ Buildings 13,822 1,421 2,777 Transportation equipment (Business vehicles) 9,378 10,987 4,055 132,627 $ 122,863 $ 129,498 $ Carryingamount For the three-month period ended For the three-month period ended March 31,2021 March 31,2020 Land 928 $ 1,001 $ Buildings 1,031 312 Transportation equipment (Business vehicles) 1,609 749 3,568 $ 2,062 $ Depreciation charge	Carryingamount
				March31,2020
				122,666 $ 2,777 4,055
				129,498 $
		For the three-month period ended March 31,2021 928 $ 1,031 1,609 3,568 $	For the three-month period ended March 31,2020
			1,001 $ 312 749
			2,062 $

D. For the three-month periods ended March 31, 2021 and 2020, the additions to right-of-use assets were $13,440 and $0, respectively.
E. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets	For the three-month period ended March 31,2021 277 $ 1,888 27	For the three-month period ended March 31,2020
		285 $ 2,018 29

F. For the three-month periods ended March 31, 2021 and 2020, the Group’s total cash outflow for leases were $5,498 and $4,051, respectively.

~22~

G. Extension and termination options

In determining the lease term, the Group takes into consideration all facts and circumstances that create an economic incentive to exercise an extension option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

(9) Investment property

Investment property
				2021
		Land	Buildings and structures			Total
At January 1
Cost	$	587,286	$	1,054,765	$	1,642,051
Accumulated depreciation	(	3,879)	(	231,586)	(	235,465)
	$	583,407	$	823,179	$	1,406,586
At January 1	$	583,407	$	823,179	$	1,406,586
Depreciation charge	(	74)	(	6,222)	(	6,296)
Net exchange differences	(	51)	(	3,295)	(	3,346)
At March 31	$	583,282	$	813,662	$	1,396,944
At March 31
Cost	$	587,216	$	1,050,603	$	1,637,819
Accumulated depreciation	(	3,934)	(	236,941)	(	240,875)
	$	583,282	$	813,662	$	1,396,944
				2020
		Land	Buildings and structures			Total
At January 1
Cost	$	573,532	$	245,710	$	819,242
Accumulated depreciation		-	(	55,509)	(	55,509)
	$	573,532	$	190,201	$	763,733
At January 1	$	573,532	$	190,201	$	763,733
Depreciation charge		-	(	1,705)	(	1,705)
At March 31	$	573,532	$	188,496	$	762,028
At March 31
Cost	$	573,532	$	245,710	$	819,242
Accumulated depreciation		-	(	57,214)	(	57,214)
	$	573,532	$	188,496	$	762,028

~23~

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the year	For the three-month period ended March 31,2021 23,050 $ 9,558 $	For the three-month period ended March 31,2020 6,533 $ 2,075 $

B. The fair value of the investment property held by the Group as at March 31, 2021, December 31, 2020, and March 31, 2020 all amounted to $1,643,466, $1,632,152 and $870,022, which were valued by independent valuers. Valuations were made using the comparative method and income approach to perform evaluation capitalization.
C. There was no capitalization of borrowing interests attributable to investment property.
D. Information about the investment property that was pledged to others as collaterals is provided in Note 8.

(10) Intangible assets

in Note 8. Intangible assets
		2021		2020
At January 1
Cost	$	380,197	$	245,090
Accumulated amortisation	(	164,936)	(	91,549)
	$	215,261	$	153,541
At January 1	$	215,261	$	153,541
Additions		-		3,115
Adjustments		-		49,641
Amortisation charge	(	23,357)	(	16,997)
Net exchange differences		118		535
At March 31	$	192,022	$	189,835
At March 31
Cost	$	327,281	$	282,112
Accumulated amortisation	(	135,259)	(	92,277)
	$	192,022	$	189,835

~24~

A. Details of amortisation on intangible assets are as follows:

Operating costs Operating expense	For the three-month period ended March 31,2021 38 $ 23,319 23,357 $	For the three-month period ended March 31,2020
		40 $ 16,957
		16,997 $

B. The Group has no intangible assets pledged to others.

(11) Short-term borrowings

B. The Group has no intangible assets pledged to others. Short-term borrowings
Short-term notes and bills payable Type ofborrowings March31,2021 Interestraterange Bank borrowings Unsecured borrowings 2,540,000 $ 0.82%~0.89% Type ofborrowings December31,2020 Interestraterange Bank borrowings Unsecured borrowings 2,330,000 $ 0.82%~0.94% Type ofborrowings March31,2020 Interestraterange Bank borrowings Unsecured borrowings 2,740,000 $ 0.8894% ~0.985% March 31,2021 December 31,2020 Commercial paper payable 200,000 $ 300,000 $ Less: Discount on short-term notes and bills payable 38) ( 202) ( 199,962 $ 299,798 $ Interest rate ranges 0.8714% 0.85%~0.87%		Collateral
		None Collateral
		None Collateral
		None March 31,2020
		- $ -
		- $
		-

(12) Short-term notes and bills payable

- (13) Long term borrowings

Borrowing period Interest rate Type of borrowings and repayment term range Collateral December 31, 2020 Secured borrowings Borrowing period is from August 24, 2018 to May 8, 2021. Revolving Yes credit facility. 0.8%~1% (Note) $ 250,000 Less: Current portion (classified under other current liabilities) ( 250,000) - $

As at March 31, 2021 and 2020: None.

~25~

During the terms of the unsecured borrowing, in accordance with the unsecured borrowing agreements contracted with bank, the Group is required to maintain the consolidated net value over $8 billion and the debt ratio under 100% based on the annual consolidated financial statements and the semi-annual consolidated financial statements.

Note: Information about collateral for long-term borrowings is provided in Note 8.

(14) Pensions

A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Group contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.
(b) For the aforementioned pension plan, the Group recognized pension costs of $43 and $76 for the three-month periods ended March 31, 2021 and 2020, respectively.
(c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2022 amount to $12.
B.(a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under defined contribution pension plans of the Group for the three-month periods ended March 31, 2021 and 2020, were $7,648 and $7,225, respectively, under the above pension scheme.
(b) The foreign subsidiaries provided defined contribution plans for its employees. Pursuant to local regulations, such employees and the subsidiaries each make contributions based on a certain percentage based of the salaries and wages to the pension funds. The subsidiaries had recognised pension costs of $3,906 and $2,337 for the three-month periods ended March 31, 2021 and 2020, respectively.

~26~

(15) Share-based payment

A. For the three-month periods ended March 31, 2021 and 2020, the Group’s share-based payment arrangements were as follows:

arrangements were as follows:
Type of arrangement	Grant date	Quantity granted (share in thousands)	Contract period	Vesting conditions
Employee stock options " Plan for restricted shares to employee(2018-1) " Plan for restricted shares to employee(2019-1) " " Treasury stock transferred to employees	October 28, 2011 March 21, 2012 August 12, 2019 January 20, 2020 August 12, 2019 January 20, 2020 April 24, 2020 March 9,2020	3,000 3,000 630 2,196 820 2,030 86 2,000	9.2 years 8.9 years 3 years 3 years 3 years 3 years 3 years -	Note 1 Note 1 Note 2, Note 3 Note 2, Note 3 Note 2, Note 3 Note 2, Note 3 Note 2, Note 3 Immediately vested

Note 1: 2 years’ service vest 40%, 3 years’ service vest 70%, 4 years’ service vest 100%.
Note 2: The restricted shares were issued at no consideration to the Company’s existing employees whose service years have reached 1 year, 2 years and 3 years and who achieved the performance requirement. The vested ratio is 40%, 30% and 30%, respectively. If employees who are entitled to receive restricted stocks do not meet the vesting conditions, the Company will redeem at no consideration and retire those shares.
Note 3:The stocks and dividends distributed to employees during the vesting period shall be given by the Company at no consideration. Employees are not required to return the stocks and dividends if they resign during the vesting period.

~27~

B. Details of the share-based payment arrangements are as follows:
(a) For the three-month periods ended March 31, 2021 and 2020, the information on the share options and the weighted number of average exercise price of compensation plan employee stock options are as follows:

Options outstanding at beginning of the period Option expired Options outstanding at end of the period Options exercisable at end of the period	Weighted-average exercise price No. of options (in NT dollars)(Note) - - $ - - - - - - March 31,2021 For the three-month period ended	Weighted-average exercise price No. of options (in NT dollars)(Note) 1,701 29.81 $ 60) ( 29.40 1,641 29.35 1,641 29.35 March 31,2020 For the three-month period ended	Weighted-average exercise price No. of options (in NT dollars)(Note) 1,701 29.81 $ 60) ( 29.40 1,641 29.35 1,641 29.35 March 31,2020 For the three-month period ended
	No. of options - - - -	No. of options 1,701 60) ( 1,641 1,641
			29.81 $ 29.40 29.35 29.35

Note: The exercise price of stock options was adjusted based on the cash dividends, stock dividends and cash capital reduction per share distributed.
(b) No stock options were exercised during the three-month periods ended March 31, 2021 and 2020.
(c) The expiry date and exercise price of stock options outstanding at balance sheet date are as follows:

follows:
Issue dateapproved	Expiry date	Exercise price No. of shares (in NT dollars) (in thousands) (Note) - - $ - - $ March31,2021	Exercise price No. of shares (in NT dollars) (in thousands) (Note) - 28.8 $ - 28.7 $ December31,2020	March31,2020
		No. of shares (in thousands) - -	No. of shares (in thousands) - -	No. of shares (in thousands) 860 781	Exercise price (in NT dollars) (Note)
October 28, 2011 March 21, 2012	December 31, 2020 December 31, 2020				29.4 $ 29.3 $

Note: The exercise price of stock options was adjusted based on the cash dividends, stock dividends and cash capital reduction per share distributed.

(d) The fair value of stock options granted is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Type of arrangement	Grant date	Stock price (in NT dollars)	Exercise price (Note) (in NT dollars)	Expected price volatility	Expected option life	Expected dividends	Risk- free interest rate	Fair value per unit (in NT dollars)
Employee stock options "	October 28, 2011 $ 30.65 March 21, 2012 27.85		- -	30.27% 33.54%	5 years 4.9 years	1.4% 1.4%	1.18% 1.08%	7.42 $ 7.35

~28~

Note: The exercise price of stock options was adjusted based on the cash dividends, stock dividends and cash capital reduction per share distributed.

C. Restricted shares to employees:
(a) The information on restricted shares to employees is as follows (share in thousands):

For the three-month period ended March 31,2021 Shares ungranted beginning balance 4,968 Given at period (Note 1 and 2) - Shares exercised 1,581) ( Shares forfeited - retired 156) ( Shares ungranted ending balance 3,231	For the three-month period ended March 31,2020
	1,350 4,226 - -
	5,576

  - Note 1: For the restricted stocks granted with the compensation cost accounted for using the

     - fair vale method, the fair values on the grant date are calculated based on the closing price on the grant date.

  - Note 2: The fair value of restricted stocks granted in January 20 and April 24, 2020 was $22.8 (in NT dollars) and $18.2 (in NT dollars).

(b) For the three-month periods ended March 31,2021, the Company collected 156 thousand shares of restricted shares because certain employees did not meet the vesting condition, and the change of registration has been completed.
D. For the three-month periods ended March 31,2021, the weighted-average exercise price of treasury stock transferred to employees was $21.07(in NT dollars).
E. Expenses incurred on share-based payment transactions are shown below:

Equity-settled	For the three-month period ended March 31,2021 34,706 $	For the three-month period ended March 31,2020 15,571 $

(16) Provisions

Provisions
At January 1, 2021 Additional provisions Reversed during the period Exchange differences At March 31, 2021 Current Non-current	March 31,2021 10,694 $ 160,308 $	Warranty 169,690 $ 6,502 5,186) ( 4) ( 171,002 $ December 31,2020 March 31,2020 9,295 $ 6,858 $ 160,395 $ 141,169 $	Warranty
			171,002 $
			March 31,2020
			6,858 $
			141,169 $

~29~

The Group gives warranties on digital image technology application products sold. Provision for warranty is estimated based on historical warranty data of digital image technology application products.

(17) Share capital

As of March 31, 2021, the Company’s authorized capital was $5,000,000, consisting of 500,000 thousand shares of ordinary stock, and the paid-in capital was $2,793,415 with a par value of $10 (in NT dollars) per share.

A. Movements in the number of the Company’s ordinary shares outstanding are as follows

(share in thousands):

2021 At January 1 268,497 Establish employee restricted shares - Retired restricted shares to employees that did not meet the vesting conditions 156) ( Shares repurchases - At March 31 268,341	2020 275,361 4,226 - 8,000) ( 271,587

B. Treasury shares

(a) Reason for share reacquisition and the number of the Company’s treasury shares are as follows :

follows :
Name of company holding the shares	Reason for reacquisition To be reissued to employees Reason for reacquisition To be reissued to employees Reason for reacquisition To be reissued to employees	Number of shares (shareinthousands) Carrying amount 11,000 209,287 $ March31,2021 Number of shares (shareinthousands) Carrying amount 11,000 209,287 $ December31,2020 Number of shares (shareinthousands) Carrying amount 8,000 146,136 $ March31,2020
The Company Name of company holding the shares
The Company Name of company holding the shares
			Carrying amount
The Company			146,136 $

~30~

(b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.
(c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.
(d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired.
(18) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

2021

At January 1 Changes in ownership interests in subsidiaries Treasury stock transferred to employees Vested restricted shares to employees Retired restricted shares to employees that did not meet the vesting conditions At March 31	Share Employee stock premium options 1,821,473 $ 49,102 $ - - - 26,060 20,240 - - - 1,841,713 $ 75,162 $	Difference between consideration and carrying amount of subsidiaries acquired or Changes in ownership interests in disposed subsidiaries 1,534 $ 397,909 $ - 11,831) ( - - - - - - 1,534 $ 386,078 $	Proceeds from sales of treasury Restricted shares to shares employees Total 1,455 $ 63,753 $ 2,335,226 $ - - 11,831) ( - - 26,060 - 20,240) ( - - 1,994) ( 1,994) ( 1,455 $ 41,519 $ 2,347,461 $

~31~

2020

			2020
At January 1 Issuance of restricted shares to employees At March 31	Share Employee stock premium options 1,814,532 $ 49,102 $ - - 1,814,532 $ 49,102 $	Difference between consideration and carrying amount of subsidiaries acquired or disposed 1,534 $ - 1,534 $	Changes in ownership interests in subsidiaries 395,774 $ - 395,774 $	Proceeds from sales of treasury shares 1,455 $ - 1,455 $	Restricted shares to employees 18,090 $ 54,093 72,183 $	Total
						2,280,487 $ 54,093
						2,334,580 $

(19) Retained earnings

A. According to the Company’s Articles of Incorporation, the annual earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve. Special reserve shall be set aside in accordance with the rules. The remaining amount plus the unappropriated earnings of prior years were distributed in new shares, which were proposed by the Board of Directors and resolved at the shareholders’ meeting.
All or some of the dividends and bonus could, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, be distributed in the form of cash and reported at the shareholders’ meeting.
B. The amount of dividends appropriated is based on the Company’s current year’s net income and prior years’ retained earnings, taking into account the Company’s financial structure and future operating plans. The distribution ratio of cash dividends to stock dividends is based on the Company’s funding status, diluted earnings per share and other factors. According to the dividend policy adopted by the Board of Directors, cash dividends shall account for at least 20% of the total dividends distributed.
C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.
D. (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
(b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets

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are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

E. The appropriation of 2020 earnings had been proposed at the Board of Directors’ meeting on March 25, 2021, and the appropriation of 2019 earnings had been resolved at the stockholders’ meeting on June 12, 2020. Details are summarized below:

Legal reserve Special reserve Cash dividends	Dividends per share Amount (in NT dollars) 15,943 $ 59,231 134,249 0.5 $ 209,423 $ 2020	2019	2019
	Amount 15,943 $ 59,231 134,249 209,423 $	Amount 8,316 $ 156,646 139,794 304,756 $	Dividends per share (in NT dollars)
			0.5 $

Aforementioned distribution of 2020 earnings, except cash dividends were resolved and approved by the Board of Directors on March 25, 2021, others were pending for approval from the shareholders. The appropriation of 2019 earnings were the same as that approved by the Board of Directors on March 20, 2020.

(20) Other equity items

Other equity items
					2021
				Unrealized
		Foreign currency			losses on			Unearned
			translation		valuation		compensation			Total
At January 1	($		550,536)	($	101,020)	($		46,142)	($	697,698)
Valuation adjustment			-		13			-		13
Valuation adjustment to retained			-		1,572			-		1,572
earnings
Currency translation differences:
-Group	(		26,239)		-			-	(	26,239)
Retirement of restricted shares
to employees			-		-			3,552		3,552
Share-based payment transactions			-		-			8,646		8,646
At March 31	($		576,775)	($	99,435)	($		33,944)	($	710,154)

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2020

						Unrealized	Unrealized
		Foreign currency					losses on		Unearned
			translation				valuation		compensation				Total
At January 1	($		494,335)		($		97,990)	($		23,034)	($		615,359)
Valuation adjustment				-	(		335)			-	(		335)
Currency translation differences:
-Group	(		10,333)				-			-	(		10,333)
Issuance of restricted shares to
employees				-			-	(		96,353)	(		96,353)
Share-based payment transactions				-			-			15,571			15,571
At March 31	($		504,668)		($		98,325)	($		103,816)	($		706,809)
Operating revenue
				For			the three-month			For the three-month
						period ended				period		ended
					March31,2021					March	31,		2020
Revenue from contracts with customers				$			1,980,863			$		1,113,743
Disaggregation of revenue from contracts with customers

(21) Operating revenue

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major geographical regions:

For the three-month period ended March 31,2021 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Total	Asia 1,180,579 $ 1,170,346 $ 10,233 1,180,579 $	Europe 250,111 $ 250,111 $ - 250,111 $	America 549,692 $ 549,692 $ - 549,692 $	Taiwan 481 $ 481 $ - 481 $	Total
					1,980,863 $
					1,970,630 $ 10,233
					1,980,863 $

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For the three-month period ended March 31,2020 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Total	Asia 469,798 $ 447,114 $ 22,684 469,798 $	Europe 184,784 $ 184,784 $ - 184,784 $	America 371,422 $ 371,422 $ - 371,422 $	Taiwan 87,739 $ 87,739 $ - 87,739 $	Total
					1,113,743 $
					1,091,059 $ 22,684
					1,113,743 $

(22) Interest income

Interest income
Interest income from bank deposits Interest income from financial assets measured at amortised cost Other interest income	For the three-month period ended March 31,2021 6,713 $ 12,276 18 19,007 $	For the three-month period ended March 31,2020
		26,025 $ 6,931 7
		32,963 $

(23) Other income

Other income
		For the three-month			For the three-month
			period ended			period ended
			March 31,2021			March 31,2020
Rent income	$		13,482		$	10,283
Other income - others			4,787			4,390
	$		18,269		$	14,673
Other gains and losses
		For the three-month			For the three-month
			period ended			period ended
			March 31,2021			March 31,2020
Gains on disposal of property, plant and
equipment	$		69		$	-
Net currency exchange (losses) gains	(		5,367)			4,424
Net gains (losses) on financial assets at fair value
through profit			13,993	(		3,929)
Other expenses	(		42)	(		5)
Total	$		8,653		$	490

(24) Other gains and losses

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(25) Finance costs

Finance costs
Interest expense : Bank loan Lease liabilities Other	For the three-month period ended March31,2021 5,461 $ 277 502 6,240 $	For the three-month period ended March31,2020
		5,648 $ 285 409
		6,342 $

(26) Expenses by nature

Expenses by nature Bank loan Lease liabilities Other	5,461 $ 277 502 6,240 $	5,648 $ 285 409 6,342 $
Employee benefit expenses Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Depreciation charges on investment property Amortisation charges on intangible assets	For the three-month period ended March 31,2021 344,382 $ 37,067 3,568 6,296 23,357	For the three-month period ended March 31,2020
		256,076 $ 41,760 2,062 1,705 16,997

(27) Employee benefit expenses

Employee benefit expenses
Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses Total	For the three-month period ended March31,2021 308,720 $ 15,165 11,597 8,900 344,382 $	For the three-month period ended March31,2020
		226,826 $ 13,022 9,638 6,590
		256,076 $

A. According to the Articles of Incorporation of the Company, when distributing earnings, the Company shall distribute compensation to the employees and pay remuneration to the directors that account for 10% to 20% and no higher than 2%, respectively, of distributable profit of the current period. If a company has accumulated deficit, earnings should be channeled to cover losses. Employees’ compensation can be distributed in the form of shares or in cash. Employees of subsidiaries that the Company holds more than 50% shareholding are entitled to receive aforementioned stock or cash.

Abovementioned distributable profit of the current period refers to the pre-tax profit before deduction of employees’ compensation and directors’ remuneration. A company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributed as employees’ compensation and directors’ remuneration; and in addition thereto a report of such distribution shall be submitted to the shareholders’ meeting.

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B. For the three-month periods ended March 31, 2021 and 2020, employees’ compensation was accrued at $5,729 and $6,653, respectively; directors’ remuneration was accrued at $764 and $887, respectively. The aforementioned amounts were recognised in salary expenses. Employees’ compensation and directors’ and supervisors’ remuneration for 2020 amounting to $31,624 and $4,217, respectively, as resolved at the meeting of Board of Directors were in agreement with those amounts recognized in the 2020 financial statements.
- Information about employees’ compensation and directors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.
(28) Income tax
A. Income tax expense
- (a) Components of income tax expense:

e tax ome tax expense Components of income tax expense:
		For the three-month			For the three-month
			period ended			period ended
			March 31,2021			March 31,2020
Current tax:
Current tax on profits for the period	$		24,652	$		7,211
Charge on unassigned retained earnings			3,418			-
Tax paid outside of the territory of
the Republic of China			491			1,602
Prior year income tax over estimation	(		433)			-
Total current tax			28,128			8,813
Deferred tax:
Origination and reversal of
temporary differences	(		1,145)			4,425
Income tax expense	$		26,983	$		13,238

The income tax charged to other comprehensive			income is as follows:
		For the three-month			For the three-month
			period ended			period ended
			March31,2021			March31,2020
Changes in fair value of financial assets at
fair value through other comprehensive
income		$	396	($		83)
Translation differences of foreign operations	(		6,560)	(		2,584)
	($		6,164)	($		2,667)

(b) The income tax charged to other comprehensive income is as follows:
B. The Company’s income tax returns through 2018 have been assessed and approved by the Tax Authority.

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(29) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Restricted shares to employees Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Restricted shares to employees Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	For the three-monthperiod ended March 31,2021
	Weighted average number of ordinary shares outstanding Earnings per share Amount after tax (share in thousands) (in dollars) 31,438 $ 263,529 0.12 $ 31,438 $ 4,016 777 966 31,438 $ 269,288 0.12 $ For the three-monthperiod ended March 31,2020		Earnings per share (in dollars)
			0.12 $
			0.12 $
	Amount after tax 31,464 $ 31,464 $ 31,464 $	Weighted average number of ordinary shares outstanding (share in thousands) 272,075 455 1,285 273,815	Earnings per share (in dollars)
			0.12 $
			0.11 $

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(30) Transactions with non-controlling interest

In February, 2021, the Group disposed of 25% of shares of its subsidiary—Altek Optical Technology (Kunshan) Co., Ltd. and 11.67% of shares of its subsidiary—Altek Biotechnology Holding (Cayman) Co., Ltd. Therefore, the Group reduced its shareholding in subsidiaries in the above transactions.
Altek Biotechnology Holding (Cayman) Co., Ltd., a subsidiary company of the group, increased its capital in January 2021. The group did not subscribe for a reduction of 6.15% of its shareholding in accordance with its shareholding ratio. The subsidiary company Altek Optical Technology (Kunshan) Co., Ltd. increased its capital in February 2021. The group and noncontrolling interests are subscribed in accordance with the shareholding ratio.

The effect of changes in interests on the equity attributable to owners of the parent is shown below:

	controlling interests are subscribed in accordance with the shareholding The effect of changes in interests on the equity attributable to owners of the	ratio. parent is shown below:
(31)	Supplemental cash flow information A. Investing activities with partial cash payments`：` For the three-month period ended March31,2021 Consideration received from non-controlling interest 99,094 $ Non-controlling interests invested in cash 70,464 Increase in the carrying amount of non-controlling interest 181,389) ( Capital surplus 11,831) ($ For the three-month period ended March 31,2021 Acquisitions of property, plant, and equipment 35,460 $ Add: Property and equipment and construction billings payable at beginning of year 4,203 Less: Property and equipment and construction billings payable at end of year 1,018) ( Cash paid 38,645 $	For the three-month period ended March31,2020 - $ - - - $ For the three-month period ended March 31,2020 1,179 $ 898 456) ( 1,621 $

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Acquisitions of intangible assets Add: Payables at beginning of period Less: Payables at end of period Cash paid	For the three-month period ended March 31,2021 - $ 278 - 278 $	For the three-month period ended March 31,2020
		3,115 $ - 2,577) (
		538 $

B. Financing activities with no cash flow effects `：`

Delcare cash dividend

For the three-month period ended March 31,2021 134,249 $	For the three-month period ended March 31,2020
	139,794 $

(32) Changes in liabilities from financing activities

January 1, 2021 Changes in cash flow from financing activities Impact of changes in foreign exchange rate Changes in other non-cash items March 31, 2021 January 1, 2020 Changes in cash flow from financing activities Impact of changes in foreign exchange rate Changes in other non-cash items March 31, 2020		Short-term borrowings	Short-term notes and bills payable	Long-term borrowings (Note)	Long-term borrowings (Note)	Guarantee deposits received	Lease liabilities	Total
		2,330,000 $ 210,000 - - 2,540,000 $ Short-term borrowings	299,798 $ 100,338) ( - 502 199,962 $ Short-term notes and bills payable	250,000 $ 250,000) ( - - - $ Long-term borrowings		26,480 $ 2,160) ( 104) ( - 24,216 $ Guarantee deposits received	104,512 $ 3,583) ( 9) ( 13,717 114,637 $ Lease liabilities	3,010,790 $ 146,081) ( 113) ( 14,219 2,878,815 $ Total
		2,200,000 $ 540,000 - - 2,740,000 $	229,962 $ 230,371) ( - 409 - $		- $ - - - - $	20,326 $ 414) ( - 96) ( 19,816 $	102,805 $ 2,004) ( 19) ( 129 100,911 $	2,553,093 $ 307,211 19) ( 442 2,860,727 $

Note: The loan will be due within 1 year, and it classified under other current liabilities.

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship: None.

(2) Significant transactions and balances with related parties:

No significant related party transactions.

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(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Share-based payments Total	For the three-month period ended March 31,2021 10,303 $ 239 1,818 12,360 $	For the three-month period ended March 31,2020
		14,816 $ 194 2,843
		17,853 $

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged asset	Book value
	March 31,2021 December 31,2020 732,223 $ 734,116 $ 755,211 756,915 1,487,434 $ 1,491,031 $	March 31,2020
Land, buildings and structures Investment property		742,572 $ 762,028
		1,504,600 $

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENT

None.

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends, return capital or issue new shares to achieve the optimal capital structure.

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(2) Financial instruments

A. Financial instruments by category

ancial instruments Financial instruments by category
Financial assets Financial assets measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortised cost Cash and cash equivalents Current financial assets at amortised cost Current contract assets Accounts receivable Other accounts receivable Guarantee deposit paid Financial liabilities Financial liabilities at amortised cost Short-term borrowings Short-term notes and bills payable Accounts payable Other accounts payable Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities	March31,2021 562,073 $ 36,601 $ 5,301,396 $ 1,594,084 - 1,419,456 59,620 35,303 8,409,859 $ 2,540,000 $ 199,962 1,265,001 586,611 - 24,216 4,615,790 $ 114,637 $	December31,2020 397,893 $ 43,130 $ 5,373,406 $ 1,842,389 4,414 1,273,383 68,825 34,746 8,597,163 $ 2,330,000 $ 299,798 1,296,475 485,953 250,000 26,480 4,688,706 $ 104,512 $	March31,2020
			36,227 $
			49,873 $
			5,851,576 $ 1,685,495 - 713,674 43,918 40,393
			8,335,056 $
			2,740,000 $ - 606,622 479,329 - 19,816
			3,845,767 $
			100,911 $

B. Financial risk management policies

(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. To minimize any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are used to hedge certain exchange rate risk, and interest rate swaps are used to fix variable future cash flows. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

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

Foreign exchange risk

i. The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.
ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable USD and RMB expenditures. Forward foreign exchange contracts are adopted to minimize the volatility of the exchange rate affecting cost of forecast inventory purchases.
iii. The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies.

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iv. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

March 31, 2021

		March 31,2021	March 31,2021	2021	2021
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB Financial liabilities Monetary items USD:NTD USD:RMB (Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB Financial liabilities Monetary items USD:NTD USD:RMB	Foreign Currency Amount (In thousands) 55,948 USD 47,907 USD 54,927 USD 39,429 USD	Effect on Effect on Other Exchange Book Value Extent of Profit or Comprehensive Rate (NTD) Variation (Loss) Income(Loss) 28.535 1,596,476 $ 1% 15,965 $ - $ 6.5713 1,367,026 1% 13,670 - 28.535 1,567,342 $ 1% 15,673) ($ - $ 6.5713 1,125,107 1% 11,251) ( - SensitivityAnalysis December 31,2020		SensitivityAnalysis
					Effect on Other Comprehensive Income(Loss)
					- $ - - $ -
	Foreign Currency Amount (In thousands) 60,233 USD 42,521 USD 50,084 USD 40,800 USD	Exchange Rate 28.480 6.5249 28.480 6.5249	Book Value (NTD) 1,715,436 $ 1,210,998 1,426,392 $ 1,161,984	SensitivityAnalysis
				Effect on Extent of Profit or Variation (Loss) 1% 17,154 $ 1% 12,110 1% 14,264) ($ 1% 11,620) (	Effect on Other Comprehensive Income(Loss)
					- $ - - $ -

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March 31, 2020

			March 31,	2020	2020
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB Financial liabilities Monetary items USD:NTD USD:RMB	Foreign Currency Amount (In thousands) 30,786 USD 24,862 USD 24,769 USD 16,285 USD	Exchange Rate 30.225 7.0851 30.225 7.0851	Book Value (NTD) 930,507 $ 751,454 748,643 $ 492,214	SensitivityAnalysis
				Effect on Extent of Profit or Variation (Loss) 1% 9,305 $ 1% 7,515 1% 7,486) ($ 1% 4,922) (	Effect on Other Comprehensive Income(Loss)
					- $ - - $ -

v. Total exchange (loss) gain including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the three-month periods ended March 31, 2021 and 2020 amounted to ($5,367) and $4,424, respectively.

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income.
ii. The Group’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, post-tax profit for the three-month periods ended March 31, 2021 and 2020 would have increased/decreased by $5,974 and $3,623, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $3,660 and $4,987, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

Interest risk arises from the changes of market interest rate causing fluctuation in financial instruments’ fair value or cash received and paid in the future.

The Group raised short-term and long-term borrowings at fixed rates during the three-month periods ended March 31, 2021 and 2020, and thus had no significant cash flow interest rate risk.

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(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.
ii. The Group manages their credit risk taking into consideration the entire group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.
iii. The Group measured internal operating procedures, past experience of trading customers, and actual transaction status. If the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition. If the contract payments were past due over 360 days based on the term, the default has occurred.
iv. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
(ii) The disappearance of an active market for that financial asset because of financial difficulties;
(iii) Default or delinquency in interest or principal repayments;
(iv) Adverse changes in national or regional economic conditions that are expected to cause a default.
v. The Group classifies customers’ accounts receivable and contract asset in accordance with customer types. The Group applies the simplified approach using loss provision matrix to estimate expected credit loss under the provision matrix basis.
vi. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

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vii. The Group used the forecastability to adjust historical and timely information to access the default possibility of contract assets and accounts receivable. As of March 31, 2021, December 31, 2020, and March 31, 2020, respectively, the provision matrix is as follows:

Up to 90 days past due	91~180 days past due	181 to 360 days past due	Up to 361 days	Total 1,419,616 $ 160 $ Total
0.01%~0.03% 1,419,616 $ 160 $ Up to 90 days past due	15%~20% - $ - $ 91~180 days past due	30%~40% - $ - $ 181 to 360 days past due	100% - $ - $ Up to 361 days
0.02%~0.03% 1,278,063 $ 266 $ Up to 90 days past due	15%~20% - $ - $ 91~180 days past due	30%~40% - $ - $ 181 to 360 days past due	100% - $ - $ Up to 361 days	1,278,063 $ 266 $ Total
0.02%~0.03% 713,823 $ 149 $	15%~20% - $ - $	30%~40% - $ - $	100% 4,531 $ 4,531 $	718,354 $ 4,680 $

viii. Movements in relation to the group applying the simplified approach to provide loss allowance for contract assets and accounts receivable are as follows:

2021

	Contract assets	Accounts receivable
(
	Contract assets
	- $ - - $	5,282 $ 602) ( 4,680 $

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ix. The Group’s recorded financial assets at amortized cost include time deposits with contract period over three months, restricted bank deposits and structured deposits of guaranteed floating revenue of financial assets at fair value through profit or loss. Because of the low credit risk, expected credit losses for the period are measured through a loss allowance at an amount equal to the 12-month expected credit losses. There is no significant provision for the losses.
(c) Liquidity risk
i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, and compliance with internal balance sheet ratio targets.
ii. Surplus cash held by the operating entities over and above the balance required for working capital management are transferred to the Group treasury. Group treasury invests surplus cash in interest bearing current accounts, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts.

iii.The Group has following undrawn borrowing facilities:

0 Fixed rate: Expiring within one year Expiring beyond one year	March31,2021 2,399,328 $ 1,200,000 3,599,328 $	December31,2020 2,814,256 $ 950,000 3,764,256 $	March31,2020
			2,797,200 $ 1,200,000
			3,997,200 $

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

he table are the contractual undiscounted	cash flows.
March 31, 2021 Non-derivative financial liabilities: Short-term borrowings Short-term notes and bills payable Accounts payable Other payables Lease liabilities Guarantee deposits received	Less than 1year 2,540,000 $ 199,962 1,265,001 586,611 12,576 -	Over 1year
		- $ - - - 119,377 24,216

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December 31, 2020 Non-derivative financial liabilities: Short-term borrowings Short-term notes and bills payable Accounts payable Other payables Lease liabilities Long-term borrowings (including current portion) Guarantee deposits received March 31, 2020 Non-derivative financial liabilities: Short-term borrowings Accounts payable Other payables Lease liabilities Guarantee deposits received	Less than 1year 2,330,000 $ 299,798 1,296,475 485,953 10,443 250,000 - Less than 1year 2,740,000 $ 606,622 479,329 8,618 -	Over 1year
		- $ - - - 111,661 - 26,480 Over 1year
		- $ - - 110,740 19,816

(3) Fair value estimation

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market, structured deposits and investment property are included in Level 3.
B. Fair value information of investment property at cost is provided in Note 6(9).
C. Financial instruments was not measured at fair value, including the carrying amounts of cash and cash equivalents, financial assets at amortized cost, accounts receivable, other receivables, deposits paid, long-term borrowings, short-term borrowings, short-term bills payable, notes payable, accounts payable, other payables, deposit received and lease liabilities are approximate to their fair values.

~49~

D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:
(a) The related information of natures of the assets is as follows:

The related information of natures	of the assets is	as follows:
March 31, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Structured deposits Unlisted stocks Financial assets at fair value through other comprehensive income Unlisted stocks December 31, 2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Structured deposits Unlisted stocks Financial assets at fair value through other comprehensive income Unlisted stocks	Level 1 - $ - - - $ Level 1 - $ - - - $	Level 2 - $ - - - $ Level 2 - $ - - - $	Level 3 502,338 $ 59,735 36,601 598,674 $ Level 3 349,664 $ 48,229 43,130 441,023 $	Total
				502,338 $ 59,735 36,601
				598,674 $
				Total
				349,664 $ 48,229 43,130
				441,023 $

~50~

March 31, 2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Unlisted stocks Financial assets at fair value through other comprehensive income Unlisted stocks	Level 1 - $ - - $	Level 2 - $ - - $	Level 3 36,227 $ 49,873 86,100 $	Total
				36,227 $ 49,873
				86,100 $

(b) The methods and assumptions the Group used to measure fair value are as follows:
- i. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.
ii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs.
E. For the three-month periods ended March 31, 2021 and 2020, there was no transfer between Level 1 and Level 2.
F. The following chart is the movement of Level 3 for the three-month periods ended March 31, 2021 and 2020:

		2021
At January 1	$	441,023	$	90,800
Purchases in the period		151,851		-
Gains recognised in profit or loss		13,993	(	3,929)
Losses recognised in other comprehensive income		409	(	418)
Sold in the period	(	3,617)		-
Capital reduction in the period	(	3,056)		-
Effect of exchange rate changes	(	1,929)	(	353)
At March 31	$	598,674	$	86,100

G. For the three-month periods ended March 31, 2021 and 2020, there was no transfer of Level 3.

~51~

H. Accounting Department segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.
I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Financial assets at fair value through profit or loss Unlisted shares Structured deposit Financial assets at fair value through other comprehensive income Unlisted shares	Fair value at March 31, 2021	Valuation technique	Significant unobservable input	Relationship of inputs to fair value
	$ 59,735 502,338 36,601	Market comparable companies Depend on individual contract Net asset value	Price to earnings ratio multiple, price to book ratio multiple,discount for lack of marketability, control premium Depend on individual contract Not applicable	The higher the multiple and control premium, the higher the fair value Depend on individual contract Not applicable

~52~

Financial assets at fair value through profit or loss Unlisted shares Structured deposit Financial assets at fair value through other comprehensive income Unlisted shares Financial assets at fair value through profit or loss Unlisted shares Financial assets at fair value through other comprehensive income Unlisted shares	Fair value at December 31, 2020	Valuation technique	Significant unobservable input	Relationship of inputs to fair value
	48,229 $ 349,664 43,130 Fair value at March 31, 2020	Market comparable companies Depend on individual contract Net asset value Valuation technique	Price to earnings ratio multiple, price to book ratio multiple,discount for lack of marketability, control premium Depend on individual contract Not applicable Significant unobservable input	The higher the multiple and control premium, the higher the fair value Depend on individual contract Not applicable Relationship of inputs to fair value
	36,227 $ 49,873	Market comparable companies Net asset value	Price to earnings ratio multiple, price to book ratio multiple,discount for lack of marketability, control premium Not applicable	The higher the multiple and control premium, the higher the fair value Not applicable

~53~

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) : Please refer to table 2.
D. Acquisition or sale of the same security with the accumulated cost exceeding NT$300 million or 20% of the Company’s paid-in capital: None.
E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paidin capital or more: Please refer to table 3.
H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 4.
I. Trading in derivative financial instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Please refer to table 5.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 6.

(3) Information on investments in Mainland China

A. The related information of investments in Mainland China: Please refer to table 7.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area:

For the significant purchases, sales, accounts payable and accounts receivable transactions between the Company and the investee companies in Mainland China through its subsidiaries, please refer to table 3 ~ table 5.

(4) Major shareholders information

Please refer to table 8.

14. SEGMENT INFORMATION

(1) General information

The Group mainly operates in one segment. The Chief Operating Decision-Maker reviews the Group’s reporting to assess performance and allocate resources. The Group mainly has a single reportable segment.

(2) Measurement of segment information

The Group evaluates performance based on profit or loss by using sales revenue and operation profit measurements. The accounting policies of the Group's operating segments are the same as the significant accounting policies summarized in Note 4.

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(3) Information about segment profit or loss, assets and liabilities

The Group has a single reportable segment. The revenue from external customers, the related gain or loss, and the assets correspond with the consolidated revenue, consolidated operating income, and consolidated assets.

(4) Reconciliation for segment income (loss)

The amounts provided to the chief operating decision-maker with respect to department assets, liabilities and profit are measured in a manner consistent with that of the financial statements.

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Altek Corporation and subsidiaries Loans to other For the year ended March 31, 2021

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year March 31, 2021	Balance at March 31, 2021	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party （Note)	Ceiling on total loans granted (Note)
													Item	Value
1	Altek Semiconductor (Cayman) Co., Ltd.	Altek Semiconductor Corporation	Other receivables- related party	Yes	142,675 $	142,675 $	- $	0%	Reason for short-term financing	- $	Operational need	- $	Promissory note	142,675 $	1,114,533 $	1,114,533 $

Note 1: The ”Procrdure for Provision of Loans” policy for loans granted by Altek Semiconductor (Cayman) Co.,Ltd. is as follows: the ceiling on total loans is 100% of the net assets value of lender. For the short-term financing, the ceiling on loans is 40% of the net assets value of lender.

Note 2: If the amount of NTD in this Note relates to foreign currencies, it is converted to NTD at the exchange rate at the end of the financial reporting period.

Table 1

Altek Corporation and subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

March 31, 2021

Table 2

Expressed in thousands of NTD

(Except as otherwise indicated)

Securitiesheld by	Marketable securities	Relationship with the securitiesissuer	General ledgeraccount		As of March31,2021	As of March31,2021
				Numberofshares	Bookvalue	Ownership (%)	Fairvalue
Altek Corporation " Altek (Kunshan) Co., Ltd.	Gianta Co., Ltd. - Common stock Hua-chuang Automobile Information Technical Center Co., Ltd. - Common stock CPEC Huachuang Private Equity (Kunshan) Enterprise (Limited Partnership)	Director None None	Financial assets at fair value through profit or loss - non-current Financial assets measured at fair value through other comprehensive income - non-current "	762,876 2 N/A	59,735 $ - 36,601	14.55% 0.00% (Note)	59,735 $ - 36,601

Note : 1% of CPEC Huachuang Private Equity (Kunshan) Enterprise (Limited Partnership)’s capital contribution.

Table 2

Altek Corporation and subsidiaries

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

For the year ended March 31, 2021

Table 3 Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable) Expressed in thousands of NTD (Except as otherwise indicated)	Notes/accounts receivable(payable) Expressed in thousands of NTD (Except as otherwise indicated)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Altek Corporation Altek International Trading Co., Ltd. Altek Biotechnology Corporation Altek Biotechnology Holding (Cayman) Co., Ltd. Taiwan Branch	Altek International Trading Co., Ltd. Altek (Kunshan) Co., Ltd. Altek International Trading Co., Ltd. "	Parent company The same ultimate parent company " "	Purchases Purchases Purchases Purchases	912,615 $ 1,579,349 465,297 134,357	93% 100% 100% 100%	Net 120 days Net 75 days " "	Approximately the same price with third parties " " "	Note " " "	998,424) ($ 1,291,655) ( 366,548) ( 155,549) (	97% 100% 99% 100%

Note: The payment term with third parties was net 60~120 days.

Table 3

Altek Corporation and subsidiaries

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

March 31, 2021

			March 31, 2021
Table 4 Creditor	Counterparty	Relationship with the counterparty	Balance as at March31,2021	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date Allowance for doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)
					Amount	Action taken
Altek International Trading Co., Ltd. " " Altek (Kunshan) Co., Ltd.	Altek Corporation Altek Biotechnology Corporation Altek Biotechnology Holding (Cayman) Co., Ltd. Taiwan Branch Altek International Trading Co., Ltd.	Parent company The same ultimate parent company " "	998,424 $ 366,548 155,549 1,291,655	4.37 4.64 4.70 5.65	- $ - - -	N/A N/A N/A N/A	189,036 $ 78,906 75,198 345,161	- $ - - -

Table 4

Altek Corporation and subsidiaries

Significant inter-company transactions during the reporting periods

For the year ended March 31, 2021

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Companyname	Counterparty	Relationship (Note1)			Transaction
			General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues ortotalassets (Note2)
Altek Corporation " Altek International Trading Co., Ltd. " Altek Semiconductor Corporation " " " Altek Biotechnology Corporation " Altek Biotechnology Holding (Cayman) Co., Ltd. Taiwan Branch " Altek (Kunshan) Co., Ltd. Altek Optical Technology (Kunshan) Co., Ltd "	Altek International Trading Co., Ltd. " Altek (Kunshan) Co., Ltd. " Altek International Trading Co., Ltd. " " Altek Corporation Altek International Trading Co., Ltd. " " " " Altek (Kunshan) Co., Ltd. "	(1) (1) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3)	Purchases Accounts payable Purchases Accounts payable Sales Accounts receivable Accounts payable Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Purchases Accounts payable	912,615 $ 998,424 1,579,349 1,291,655 4,765 5,171 19,988 5,024 465,297 366,548 134,357 155,549 72,452 12,909 14,135	Net 120 days " Net 75 days " " " Net 120 days Net 75 days " " " " " " "	46% 7% 80% 9% 0% 0% 0% 0% 23% 2% 7% 1% 4% 1% 0%

Note 1: Relationship between transaction and counterparty is classified into the following categories:

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 2: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 3: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Table 5

Altek Corporation and subsidiaries

Information on investees

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

For the year ended March 31, 2021

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March 31,2021	Shares held as at March 31,2021	Shares held as at March 31,2021	Net profit (loss) of the investee for the year ended March 31,2021	Investment income(loss) recognised by the Company for the year ended March 31,2021	Footnote
				Balance as at March 31, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Altek Corporation " " " Altek International Investment Co., Ltd. " " " Altek International Holding (BVI) Co, Ltd. Altek Semiconductor (Cayman) Co., Ltd. Altek Biotechnology Holding (Cayman) Co., Ltd.	Altek International Investment Co., Ltd. Altek Japan Corporation Altek International Holding (BVI) Co, Ltd. Altek Investment Corporation Altek Lab Inc. Altek Semiconductor (Cayman) Co., Ltd. Altek Optical Technology (Cayman) Co., Ltd. Altek International Trading Co., Ltd. Altek Biotechnology Holding (Cayman) Co. ,Ltd. Altek Semiconductor Corporation Altek Biotechnology Corporation	British Virgin Islands Japan British Virgin Islands Republic of China U.S.A. Cayman Islands Cayman Islands Republic of Seychelles Cayman Islands Republic of China Republic of China	Investment Sale of optical optical instruments Investment Investment Design service Investment Investment Intercompany transactions Investment and general business operations Research design and sales of ASIC Research and development, manufacture and sales of medical electronic equipments	2,882,512 $ 2,869 415,376 100,000 105,001 175,411 377,975 285,350 308,840 350,000 115,376	2,882,512 $ 2,869 415,376 100,000 105,001 175,411 319,592 285,350 415,376 350,000 415,376	87,769,559 1,000 12,865,921 10,000,000 11,311,875 20,000,000 13,246,000 10,000,000 45,063,684 35,000,000 10,100,000	100 100 100 100 100 50 100 100 82.18 100 100	8,381,844 $ 10,763 943,910 99,915 59,134 557,277 67,715 249,930 845,293 255,767 470,996	38,336 $ 305 57,045 6) ( 82) ( 2,424 4,355 4,142) ( 63,746 4,241 14,016	36,269 $ 305 57,045 6) ( 82) ( 1,140 4,355 4,142) ( 57,045 2,121 11,583	Note

Note: The difference between the profit or loss of the investee for the current period and the investment profit or loss recognized in the current period is the unrealized profit and loss adjustments for countercurrent transactions between subsidiaries.

Table 6

Information on investments in Mainland China

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Altek Corporation and subsidiaries

For the year ended March 31, 2021

Investee in Mainland China	Mainbusiness activities	Paid-incapital	Investment method `（`Note1`）`	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended March31,2021	Accumulated amount of remittance from Taiwan toMainland China as of March31,2021	Net profit (loss) of investee for the year ended March31,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended March 31, 2021 (Note4)	Accumulated amount of investment income remitted back to Taiwan as of March31,2021 Book value of investments in Mainland China as of March31,2021
					Remitted to Mainland China Remitted back to Taiwan
Altek (Kunshan) Co., Ltd. (Note 2) Altek EMS (Kunshan) Co., Ltd. (Note 3) Altek Trading (Shanghai) Limited Altek Precision (Kunshan) Co., Ltd. Altek Optical Technology (Kunshan) Co., Ltd. Altek Semiconductor (Shanghai) Co., Ltd.	Manufacture and sale of digital still cameras and its accessories Manufacture and sale of related engineering services Wholesale, import and export of digital cameras, digital video cameras and their associated accessories Design, manufacture and sales of digital camera parts Manufacture and sales of photo electron device, optical instrument, camera and equipment Research design and sales of imaging technologies, electronic software and hardware	1,415,336 $ 142,675 242,548 393,783 399,490 42,803	2 2 2 2 2 2	1,284,075 $ 259,183 242,548 393,783 319,592 -	- $ - $ - - - - - - 59,924 - - -	1,284,075 $ 259,183 242,548 393,783 379,516 -	40,548 $ 3,860 1,915 689 5,809 1,991) (	100 100 100 100 75 50	40,548 $ 3,860 1,915 689 4,357 996) (	4,275,604 $ - $ 784,532 - 309,553 - 151,040 - 67,712 - 114,774 -

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1)Directly invest in a company in Mainland China.

(2)Through investing in an existing company in the third area,which then investeed in the investee in Mainland China.

(3)Others.

Note 2: Including retained earnings capitalized of US$4,600 (In thousand of US dollars).

Note 3: Including retained earnings capitalized of US$3,600 (In thousand of US dollars).

Note 4:The basic explanation of investment profit and loss recognition is as follows:

(1)Altek (Kunshan) Co., Ltd. are audited by the R.O.C. parent company’s independent accountants.

(2)Other companies are self-consolidated financial statements.

Companyname	Accumulated amount of remittance from Taiwan to MainlandChina as of March31,2021	Investment amount approved by the Investment Commission of the Ministryof Economic Affairs(MOEA)	Ceiling on investments in Mainland China imposed bythe InvestmentCommission of MOEA
Altek Corporation	$2,559,105	$2,869,247	$5,016,889

Table 7

Altek Corporation and subsidiaries Information of major shareholders March 31, 2021

Table 8

Name of major shareholders	Shares	Shares
	Number of shares held	Holding percentage
Yitsang International Co., Ltd.	14,200,100	5.08%

Table 8

AI assistant

Altek — Interim / Quarterly Report 2021

52290_rns_2021-11-16_384704f0-1a60-4335-a944-feb4e4d8ae18.pdf

ALTEK CORPORATION AND SUBSIDIARIES

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of review

Basis for qualified conclusion

Qualified Conclusion

May 7, 2021

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

ALTEK CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

1. HISTORY AND ORGANIZATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(3) IFRSs issued by IASB but not yet endorsed by the FSC

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

B. Subsidiaries included in the consolidated financial statements:

(4) Employee benefits

(5) Income tax

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

(3) Financial assets at fair value through other comprehensive income

(4) Financial assets at amortised cost

(5) Accounts receivable

(7) Property, plant and equipment

－ (8) Leasing arrangements lessee

G. Extension and termination options

(9) Investment property

(10) Intangible assets

(11) Short-term borrowings

(12) Short-term notes and bills payable

- (13) Long term borrowings

(14) Pensions

(15) Share-based payment

(16) Provisions

(17) Share capital

B. Treasury shares

(19) Retained earnings

(20) Other equity items

(22) Interest income

(23) Other income

(24) Other gains and losses

(25) Finance costs

(26) Expenses by nature

(27) Employee benefit expenses

(29) Earnings per share

B. Financing activities with no cash flow effects ：

Delcare cash dividend

(32) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(3) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT SUBSEQUENT EVENT

12. OTHERS

(1) Capital management

(2) Financial instruments

A. Financial instruments by category

Price risk

Altek Interim / Quarterly Report 2021

`－` (8) Leasing arrangements lessee

B. Financing activities with no cash flow effects `：`