Altek - Interim / Quarterly Report 2021

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT

SEPTEMBER 30, 2021 AND 2020 (Stock Code ： 3059)

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

PWCR 21000111 (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 September 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine-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 insignificant 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 $2,484,761 and $2,524,641, constituting 16% and 18% of the consolidated total assets, and total liabilities of $52,632 and $31,490, constituting 1% and 1% of the consolidated total liabilities as at September 30, 2021 and

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2020, respectively, and total comprehensive income of $2,245, $78,443, $24,631 and $65,164, constituting 2%, 92%, 20% and 442% of the consolidated total comprehensive income for the threemonth and nine-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 insignificant consolidated subsidiaries been reviewed by independent auditors, as described in the Basis for qualified conclusion section, 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 September 30, 2021 and 2020, and of its consolidated financial performance for the three-month and nine-month periods then ended and its consolidated cash flows for the ninemonth 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

November 2, 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 report of independent auditors’ review 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

SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020 (Expressed in thousands of New Taiwan dollars)

(The balance sheets as of September 30, 2021 and 2020 are reviewed, not audited)

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September 30, 2021 December 31, 2020 September 30, 2020
Assets Notes AMOUNT % AMOUNT % AMOUNT %
Current assets
1100 Cash and cash equivalents 6(1) $ 5,438,633 34 $ 5,373,406 37 $ 5,813,248 41
1110 Current financial assets at fair 6(2)
value through profit or loss - - 349,664 2 - -
1136 Current financial assets at 6(4)
amortised cost 128,828 1 423,387 3 414,487 3
1140 Current contract assets - - 4,414 - 4,415 -
1170 Accounts receivable, net 6(5) 1,731,226 11 1,273,383 9 1,042,950 7
1200 Other receivables 102,906 1 68,825 - 54,746 -
1220 Current income tax assets 4,052 - 3,292 - 3,733 -
130X Inventories, net 6(6) 1,854,735 12 1,106,726 8 960,398 7
1410 Prepayments 306,088 2 217,600 1 181,069 1
1470 Other current assets 9,879 - 4,535 - 9,498 -
11XX Current Assets 9,576,347 61 8,825,232 60 8,484,544 59
Non-current assets
1510 Non-current financial assets at 6(2)
- - -
fair value through profit or loss 68,441 48,229 48,076
1517 Non-current financial assets at 6(3)
fair value through other
comprehensive income 122,693 1 43,130 - 45,544 -
1535 Non-current financial assets at 6(4)
amortised cost 1,288,708 8 1,419,002 10 1,389,174 10
1600 Property, plant and equipment 6(7) and 8 2,640,844 17 2,420,736 17 3,012,621 21
1755 Right-of-use assets 6(8) 125,390 1 122,863 1 135,166 1
1760 Investment property 6(9) and 8 1,377,336 9 1,406,586 10 758,620 5
1780 Intangible assets 6(10) 270,593 2 215,261 1 239,295 2
1840 Deferred income tax assets 265,744 1 182,361 1 213,864 2
1900 Other non-current assets 39,860 - 34,746 - 31,170 -
15XX Non-current assets 6,199,609 39 5,892,914 40 5,873,530 41
1XXX Total assets $ 15,775,956 100 $ 14,718,146 100 $ 14,358,074 100
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(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020

(Expressed in thousands of New Taiwan dollars)

(The balance sheets as of September 30, 2021 and 2020 are reviewed, not audited)

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September 30, 2021 December 31, 2020 September 30, 2020
Liabilities and Equity Notes AMOUNT % AMOUNT % AMOUNT %
Current liabilities
2100 Short-term borrowings 6(11) $ 2,510,000 16 $ 2,330,000 16 $ 2,730,000 19
2110 Short-term notes and bills 6(12)
payable 399,939 2 299,798 2 - -
2130 Current contract liabilities 6(21) 147,144 1 32,568 - 92,865 1
2170 Accounts payable 1,747,256 11 1,296,475 9 1,013,430 7
2200 Other payables 607,376 4 485,953 4 548,621 4
2230 Current income tax liabilities 55,052 - 36,763 - 28,157 -
2250 Provisions for liabilities - 6(16)
current 11,497 - 9,295 - 7,955 -
2280 Current lease liabilities 9,721 - 9,336 - 10,279 -
2300 Other current liabilities 6(13) 244,385 2 437,093 3 199,443 1
21XX Current Liabilities 5,732,370 36 4,937,281 34 4,630,750 32
Non-current liabilities
2550 Provisions for liabilities - non- 6(16)
current 166,237 1 160,395 1 156,267 1
2570 Deferred income tax liabilities 513,611 3 464,691 3 498,150 4
2580 Non-current lease liabilities 98,413 1 95,176 1 96,934 1
2600 Other non-current liabilities 33,204 - 36,750 - 39,661 -
25XX Non-current liabilities 811,465 5 757,012 5 791,012 6
2XXX Total Liabilities 6,543,835 41 5,694,293 39 5,421,762 38
Equity attributable to owners of
parent
Share capital 6(17)
3110 Common stock 2,792,659 18 2,794,973 19 2,795,433 19
Capital surplus 6(18)
3200 Capital surplus 2,362,938 15 2,335,226 16 2,333,680 16
Retained earnings 6(19)
3310 Legal reserve 1,418,410 9 1,402,467 9 1,402,467 10
3320 Special reserve 651,556 4 592,325 4 592,325 4
3350 Unappropriated retained
earnings 2,225,468 14 2,249,655 15 2,213,492 15
Other equity interest 6(20)
3400 Other equity interest ( 804,604)( 5)( 697,698)( 5)( 751,761)( 5)
3500 Treasury stocks 6(17) ( 167,127)( 1)( 209,287)( 1)( 209,287)( 1)
31XX Equity attributable to
owners of the parent 8,479,300 54 8,467,661 57 8,376,349 58
36XX Non-controlling interest 4(3) 752,821 5 556,192 4 559,963 4
3XXX Total equity 9,232,121 59 9,023,853 61 8,936,312 62
3X2X Total liabilities and equity $ 15,775,956 100 $ 14,718,146 100 $ 14,358,074 100
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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 AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 (Expressed in thousands of New Taiwan dollars, except earnings per share) (UNAUDITED)

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Three-month periods ended September 30 Nine-month periods ended September 30
2021 2020 2021 2020
Items Notes AMOUNT % AMOUNT % AMOUNT % AMOUNT %
4000 Operating revenue 6(21) $ 2,470,362 100 $ 1,615,475 100 $ 6,753,566 100 $ 4,252,973 100
5000 Operating costs 6(6)(26)(27) ( 1,814,481) ( 73) ( 1,258,853) ( 78) ( 5,117,556) ( 76) ( 3,230,489) ( 76)
5900 Net operating margin 655,881 27 356,622 22 1,636,010 24 1,022,484 24
Operating expenses 6(26)(27)
6100 Selling expenses ( 11,238) ( 1) ( 10,916) ( 1) ( 35,804) ( 1) ( 40,283) ( 1)
6200 General and administrative
expenses ( 108,181) ( 4) ( 78,441) ( 4) ( 326,959) ( 5) ( 240,200) ( 6)
6300 Research and development
expenses ( 390,312) ( 16) ( 225,046) ( 14) ( 1,049,378) ( 15) ( 656,439) ( 15)
6450 Expected credit gains (losses) 12(2) ( 30) - ( 32) - 61 - 776 -
6000 Total operating expenses ( 509,761) ( 21) ( 314,435) ( 19) ( 1,412,080) ( 21) ( 936,146) ( 22)
6900 Operating profit 146,120 6 42,187 3 223,930 3 86,338 2
Non-operating income and
expenses
7100 Interest income 6(22) 17,582 1 22,738 1 53,958 1 81,806 2
7010 Other income 6(23) 20,895 1 8,454 1 51,266 1 35,490 1
7020 Other gains and losses 6(24) 3,277 - 7,822 - 31,401 - 12,144 -
7050 Finance costs 6(25) ( 6,525) - ( 6,227) - ( 18,989) - ( 18,913) -
7000 Total non-operating income
and expenses 35,229 2 32,787 2 117,636 2 110,527 3
7900 Profit before income tax 181,349 8 74,974 5 341,566 5 196,865 5
7950 Income tax expense 6(28) ( 42,179) ( 2) ( 28,536) ( 2) ( 90,069) ( 1) ( 75,493) ( 2)
8200 Profit for the period $ 139,170 6 $ 46,438 3 $ 251,497 4 $ 121,372 3
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(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

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

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Three-month periods ended September 30 Nine-month periods ended September 30
2021 2020 2021 2020
Items Notes AMOUNT % AMOUNT % AMOUNT % AMOUNT %
Other comprehensive income
Components of other
comprehensive income that will
not be reclassified to profit or
loss
8316 Unrealised losses from 6(3)
financial assets measured at
fair value through other
comprehensive income $ 585 - ($ 138) - $ 1,013 - ($ 440) -
8349 Income tax related to 6(28)
components of other
comprehensive income that
will not be reclassified to
profit or loss - - 28 - ( 255) - 88 -
8310 Components of other
comprehensive (loss)
income that will not be
reclassified to profit or loss 585 - ( 110) - 758 - ( 352) -
Components of other
comprehensive income that will
be reclassified to profit or loss
8361 Currency translation
differences of foreign
operations ( 26,239) ( 1) 50,536 3 ( 164,878) ( 2) ( 130,036) ( 3)
8399 Income tax relating to the 6(28)
components of other
comprehensive income 5,145 - ( 11,249) ( 1) 34,071 - 23,744 -
8360 Components of other
comprehensive income
(loss) that will be
reclassified to profit or loss ( 21,094) ( 1) 39,287 2 ( 130,807) ( 2) ( 106,292) ( 3)
8300 Total other comprehensive
income (loss) for the period ($ 20,509) ( 1) $ 39,177 2 ($ 130,049) ( 2) ($ 106,644) ( 3)
8500 Total comprehensive income for
the period $ 118,661 5 $ 85,615 5 $ 121,448 2 $ 14,728 -
Profit (loss), attributable to:
8610 Owners of the parent $ 94,084 4 $ 41,454 3 $ 186,808 3 $ 123,272 3
8620 Non-controlling interest 45,086 2 4,984 - 64,689 1 ( 1,900) -
Profit for the period $ 139,170 6 $ 46,438 3 $ 251,497 4 $ 121,372 3
Comprehensive (loss) income
attributable to:
8710 Owners of the parent $ 74,088 3 $ 86,336 5 $ 51,281 1 $ 27,944 -
8720 Non-controlling interest 44,573 2 ( 721) - 70,167 1 ( 13,216) -
Total comprehensive income
for the period $ 118,661 5 $ 85,615 5 $ 121,448 2 $ 14,728 -
9750 Basic earnings per share 6(29) $ 0.35 $ 0.16 $ 0.71 $ 0.46
9850 Diluted earnings per share 6(29) $ 0.35 $ 0.16 $ 0.69 $ 0.46
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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

NINE-MONTH PERIODS ENDED SEPTEMBER 30, 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 foreign Non-controlling
Notes Common stock capital Legal reserve Special reserve retained earnings operations Other Treasury stocks Total interest Total equity
Nine-month period ended September 30, 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 - - - - 123,272 - - - 123,272 ( 1,900 ) 121,372
Other comprehensive loss for the period 6(20) - - - - - ( 94,976 ) ( 352 ) - ( 95,328 ) ( 11,316 ) ( 106,644 )
Total comprehensive income (loss) - - - - 123,272 ( 94,976 ) ( 352 ) - 27,944 ( 13,216 ) 14,728
Appropriation of 2019 earnings 6(19)
Legal reserve - - 8,316 - ( 8,316 ) - - - - - -
Special reserve - - - 156,646 ( 156,646 ) - - - - - -
Cash dividends - - - - ( 139,794 ) - - - ( 139,794 ) - ( 139,794 )
Share-based payment transactions 6(15)(20) - - - - - - 53,939 - 53,939 - 53,939
Restricted stocks 6(15)(17)(18)(20) 43,120 54,798 - - - - ( 97,918 ) - - - -
Retirement of employee restricted shares 6(15)(17)(18)(20) ( 1,300 ) ( 1,605 ) - - - - 2,905 - - - -
Treasury shares repurchased - - - - - - - ( 209,287 ) ( 209,287 ) - ( 209,287 )
Balance at September 30, 2020 $ 2,795,433 $ 2,333,680 $ 1,402,467 $ 592,325 $ 2,213,492 ($ 589,311 ) ($ 162,450 ) ($ 209,287 ) $ 8,376,349 $ 559,963 $ 8,936,312
Nine-month period ended September 30,2021
Balance at January 1, 2021 $ 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 - - - - 186,808 - - - 186,808 64,689 251,497
Other comprehensive income (loss) for the 6(20)
period - - - - - ( 136,285 ) 758 - ( 135,527 ) 5,478 ( 130,049 )
Total comprehensive income (loss) - - - - 186,808 ( 136,285 ) 758 - 51,281 70,167 121,448
Appropriation of 2020 earnings 6(19)
Legal reserve - - 15,943 - ( 15,943 ) - - - - - -
Special reserve - - - 59,231 ( 59,231 ) - - - - - -
Cash dividends - - - - ( 134,249 ) - - - ( 134,249 ) - ( 134,249 )
Share-based payment transactions 6(15)(18)(20) - 42,590 - - - - 21,814 - 64,404 - 64,404
Retirement of employee restricted shares 6(15)(17)(18)(20) ( 2,314 ) ( 2,921 ) - - - - 5,235 - - - -
Treasury stock transferred to employees 6(17)(18) - ( 126 ) - - - - - 42,160 42,034 - 42,034
Changes in ownership interests in subsidiaries 6(18) - ( 11,831 ) - - - - - - ( 11,831 ) 11,831 -
Non-controlling interest 6(30) - - - - - - - - - 114,631 114,631
Proceeds from disposal of financial assets at 6(3)(20)
fair value through other comprehensive
income - - - - ( 1,572 ) - 1,572 - - - -
Balance at September 30, 2021 $ 2,792,659 $ 2,362,938 $ 1,418,410 $ 651,556 $ 2,225,468 ($ 686,821 ) ($ 117,783 ) ($ 167,127 ) $ 8,479,300 $ 752,821 $ 9,232,121
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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

NINE-MONTH PERIODS ENDED SEPTEMBER 30, 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 or loss
Interest expense
Interest income
Dividend 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 assets
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) inflow generated from
operations
Interest received
Dividends received
Interest paid
Income tax paid
Net cash flows (used in) from operating
activities Nine-month periods ended September 30
Notes
2021
2020
$
341,566
$
196,865
6(7)(8)(9)(26)
141,789
136,095
6(10)(26)
68,896
65,486
12(2)
(
61 ) (
776 )
6(2)(24)
(
27,931 ) (
7,920 )
6(25)
18,989
18,913
6(22)
(
53,958 ) (
81,806 )
6(23)
(
1,526 ) (
1,526 )
6(15)
64,404
53,939
6(24)
29
-
4,414
(
4,415 )
(
459,850 ) (
124,316 )
(
28,030 ) (
539 )
(
769,662 )
72,798
(
90,310 ) (
84,919 )
(
5,413 ) (
3,657 )
114,666
58,786
-
(
4,283 )
474,421
8,550
(
7,988 ) (
15,576 )
8,060
21,834
57,419
(
1,310 )
30
63
(
150,046 )
302,286
47,917
69,498
1,526
1,526
(
16,182 ) (
17,230 )
(
73,059 ) (
65,533 )
(
189,844 )
290,547

(Continued)

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ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars) (UNAUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through
profit or loss
Proceeds from disposal of financial assets at fair
value through profit or less
Acquisition of financial assets at amortised cost
Proceeds from repayments of financial assets at
amortised cost
Acquisition of financial assets at fair value through
other comprehensive income
Proceeds from disposal of financial assets at fair
value through other comprehensive income
Proceeds from capital reduction of financial assets
at fair value through other comprehensive income
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and
equipment
Acquisition of intangible assets
(Increase) decrease in deposits 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) increase in guarantee deposits received
Repayment of principal portion of lease liabilities
Acquisition of treasury stocks
Treasury shares transferred to employees
Changes in non-controlling interest
Net cash flows from financing activities
Effect of exchange rate
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Nine-month periods ended September 30
Notes
2021
2020
($
151,406 )
$
-
505,671
-
-
(
1,081,722 )
397,982
13,385
(
86,694 )
-
2,325
-
3,056
4,364
6(31)
(
355,334 ) (
11,796 )
428
-
6(31)
(
125,512 ) (
54,883 )
(
5,197)
9,222
185,319
(
1,121,430)
6(32)
11,650,000
12,330,000
6(32)
(
11,470,000 ) (
11,800,000 )
6(32)
1,698,274
459,517
6(32)
(
1,600,000 ) (
690,000 )
6(32)
(
250,000 )
-
(
3,279 )
10,262
6(32)
(
10,636 ) (
6,596 )
6(17)
-
(
209,287 )
42,034
-
114,631
-
171,024
93,896
(
101,272) (
115,820)
65,227
(
852,807 )
6(1)
5,373,406
6,666,055
6(1)
$
5,438,633
$
5,813,248

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 NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

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

(Reviewed, not audited)

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 November 2, 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:

follows:
New Standards,InterpretationsandAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest Rate Benchmark Reform— Phase 2’ Amendment to IFRS 16, ‘Covid-19-related rent concessions beyond 30 June 2021’ Note：Earlier application from January 1, 2021 is allowed by FSC.	January 1, 2021 January 1, 2021 April 1, 2021(Note)

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

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

the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

follows:
NewStandards,Interpretations and Amendments Amendments to IFRS 3, ‘Reference to the conceptual framework’ 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	Effective date by International Accounting Standards Board
	January 1, 2022 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.

(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:

New Standards,InterpretationsandAmendments

Effective date by
International Accounting
StandardsBoard

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 12, ‘Deferred tax related to assets and liabilities
arising from a single transaction’

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, 2023

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 preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

~12~

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the "Regulations 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.
(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.
B. Subsidiaries included in the consolidated financial statements:

(Blank below)

~13~

Name of Investor	Name of Subsidiaries	Main Business Activities		Ownership (%)		Note
			September 30, 2021 100 100 100 100 100 100 50 100 100 100 82.18 100 100 100 100 100 75 100 100 100 100 100 100	December 31, 2020 100 100 100 100 100 100 50 100 100 100 100 - 100 100 100 100 100 100 100 100 - - -	September 30, 2020
Altek Corporation " " " Altek International Investment Co., Ltd. " " " " " Altek International Holding (BVI) Co., Ltd. Altek Investment Corporation Note 1 Note 1 Note 1 Note 1 Altek Optical Technology (Cayman) Co., Ltd. Altek Semiconductor (Cayman) Co., Ltd. " Altek Medical Holding (Cayman) Co., Ltd. Altek Medical Holding (Cayman) Co., Ltd. Altek Medical (HongKong) Limited Altek Medical (Shanghai) Limited	Altek International Investment Co., Ltd. Altek Japan Corporation Altek International Holding (BVI) Co., Ltd. Altek Investment Corporation Altek Lab Inc. Altek Optical (Cayman) Co., Ltd. Altek Semiconductor (Cayman) Co., Ltd. Altek Optical Technology (Cayman) Co., Ltd. Altek Imaging Technology (Cayman) Co., Ltd. Altek International Trading Co., Ltd. Altek Medical Holding (Cayman) Co., Ltd. Ptek Corporation Altek (Kunshan) Co., Ltd. Altek EMS (Kunshan) Co., Ltd. Altek Precision (Kunshan) Co., Ltd. Altek Trading (Shanghai) Limited Altek Optical Technology (Kunshan) Co., Ltd. Altek Semiconductor Corporation Altek Semiconductor (Shanghai) Co., Ltd. Altek Biotechnology Corporation Altek Medical (HongKong) Limited Altek Medical (Shanghai) Limited Altek Medical (Kunshan) Limited	Investments Sales of optical instruments Investments Investments Design service Investments Investments Investments Investments Intercompany transactions Investments and general business operations Product development and design Manufacture and sales of digital still camera and its accessories Manufacture and sales of related engineering services Manufacture and sales of digital camera parts Wholesale, import and export of related electronic and their associated accessories Manufacture and sales of photo electron device, optical instrument, camera and equipment Research design and sales of ASIC Research design and sales of imaging technologies, electronic software and hardware Research and development, manufacture and sales of medical electronic equipments Investments Sales of medical electronic equipments Manufacture and sales of medical electronic equipments			100 100 100 100 100 100 50 100 100 100 100 - 100 100 100 100 100 100 100 100 - - -	- Note 11 Note 10 Note 2 Note 11 Note 11 Note 11 Note 11 Note 11 Note 11 Note 11 Note 3 Note 6 Note 10 Note5 Note13 - Note 11 Note 11 Note 11 Note 4 Note 11 Note 12 Note 11 Note 6 Note 6 Note 7 Note 13 Note 8 Note 13 Note 9 Note 13

Note 1: Invested by Leading Tech. Co., Ltd., Toptek Investment Cayman Co., Ltd., Ltd., Altek Trading (Cayman) Co., Ltd., which are wholly owned by Altek International Investment Co., Ltd. Note 2: Invested by Altek Corporation and established on September, 2020.

Note 3: The subsidiary increased its capital, but the Group did not acquire and sell shares of the subsidiary. As a result, the Group’s shareholding ratio decreased since 2021. Note 4: The Group sold 25% of share in Altek Optical Technology (Kunshan) Co., Ltd. on January 6, 2021. As a result, the Group’s shareholding ratio decreased. Note 5: Invested by Altek Investment Corporation and established on April, 2021 and changed its Chinese name on August 11, 2021.

Note 6: Altek Biotechnology Holding (Cayman) Co., Ltd. changed its name to Altek Medical Holding (Cayman) Co., Ltd. since June 8, 2021. Note 7: Invested by Altek Medical Holding (Cayman) Co., Ltd. and established on June, 2021.

Note 8: Invested by Altek Medical (HongKong) Limited and established on August, 2021.

Note 9: Invested by Altek Medical (Shanghai) Limited and established on August, 2021.

Note 10: As the subsidiaries meet the definition of significant subsidiaries, the financial statements as of September 30, 2021 were reviewed by independent auditors.

As the subsidiaries did not meet the definition of significant subsidiaries, the financial statements as of September 30, 2020 were not reviewed by independent auditors.

Note 11: For these non-significant subsidiaries, the financial statements as of September 30, 2021 and 2020 were not reviewed by independent auditors. Note 12: For these non-significant subsidiaries, the financial statements as of September 30, 2021 and 2020 were reviewed by independent auditors. Note 13: For these non-significant subsidiaries, the financial statements as of September 30, 2021 were not reviewed by independent auditors.

~14~

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:
As of September 30, 2021, December 31, 2020, and September 30, 2020, the non-controlling interest amounted to $752,821, $556,192 and $559,963, respectively. The information of noncontrolling interest and respective subsidiaries is as follows:

Non-controlling interest

Name of subsidiary	Principal place of business Republic of China Republic of China China	Amount Ownership (%) $581,285 50 143,711 17.82 27,825 25 September 30,2021	Amount Ownership (%) $556,192 50 - - - - December 31,2020	Amount Ownership (%) $559,963 50 - - - - September 30,2020	Description
		Amount $581,285 143,711 27,825	Amount $556,192 - -	Amount $559,963 - -
Altek Semiconductor (Cayman) Co. , Ltd. Altek Medical Holding (Cayman) Co. , Ltd. Altek Optical Technology (Kunshan) Co. , Ltd.					Note Note

Note : The country of registration is Cayman Islands.

Summarised financial information of the subsidiaries: Balance sheets

Balance sheets
Current assets Non-current assets Current liabilities Non-current liabilities Total net assets Current assets Non-current assets Current liabilities Non-current liabilities Total net assets	September 30,2021 December 31,2020 September 30,2020 1,282,556 $ 1,131,058 $ 1,138,287 $ 252,362 179,042 204,908 372,300) ( 197,580) ( 222,676) ( 47) ( 135) ( 594) ( 1,162,571 $ 1,112,385 $ 1,119,925 $ Altek Semiconductor(Cayman)Co.,Ltd. Altek Medical Holding (Cayman)Co.,Ltd. Altek Optical Technology (Kunshan)Co.,Ltd. September 30,2021 September 30,2021 1,703,706 $ 121,781 $ 41,061 68,706 816,865) ( 79,188) ( 121,445) ( - 806,457 $ 111,299 $
		September 30,2021
	1,703,706 $ 41,061 816,865) ( 121,445) ( 806,457 $

~15~

Statements of comprehensive income

	Altek Semiconductor	Altek Semiconductor	(Cayman)Co.,Ltd.
	For the three-month period ended September 30,2021		For the three-month period ended September 30,2020
( (	312,261 $ 71,342 3,533) 67,809 732) 67,077 $ For the nine-month period endedSeptember 30,2021	(	139,443 $ 10,521 554) ( 9,967 11,410) ( 1,443) $ For the nine-month period endedSeptember 30,2020
(
	For the three-month period endedSeptember 30,2021		For the nine-month period endedSeptember 30,2021
	705,929 $ 64,762 13,850) ( 50,912 123) ( 50,789 $		2,152,046 $ 201,794 44,158) ( 157,636 24,086 181,722 $

~16~

Altek Optical Technology (Kunshan) Co. , Ltd.

Revenue Profit before income tax Income tax expense Profit for the period Other comprehensive loss, net of tax Total comprehensive income for the period		For the three-month period ended September 30,2021		For the nine-month period ended September 30,2021
		73,003 $ 8,393 - 8,393 457) ( 7,936 $		169,288 $ 27,970 - 27,970 4,506) ( 23,464 $

(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 recognised 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 recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognised in profit or loss.

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

There have been no significant changes as of September 30, 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

Cash on hand revolving funds Checking accounts and demand deposits Time deposits Total	September 30,2021 December 31,2020 938 $ 1,052 $ 1,971,387 1,260,822 3,466,308 4,111,532 5,438,633 $ 5,373,406 $	September 30,2020 925 $ 873,044 4,939,279 5,813,248 $

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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.
(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	September 30,2021 December 31,2020 - $ 349,186 $ - 478 - $ 349,664 $ 10,312 $ 10,312 $ 58,129 37,917 68,441 $ 48,229 $	September 30,2020 - $ - - $ 10,312 $ 37,764 48,076 $

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

loss are listed below:
For the three-month period ended September 30,2021 Equity instruments 1,243) ($ Structured deposit 1,550 Total 307 $ For the nine-month period ended September 30,2021 Equity instruments 20,212 $ Structured deposit 7,719 Total 27,931 $	For the three-month period ended September 30,2020
	6,409 $ -
	6,409 $
	For the nine-month period ended September 30,2020
	7,920 $ -
	7,920 $

B. The Group has no financial assets at fair value through profit or loss pledged to others as at September 30, 2021, December 31, 2020, and September 30, 2020.
C. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

~18~

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

Items Non-current items: Equity instruments Unlisted stocks Valuation adjustment ( Total	September 30,2021 December 31,2020 221,383 $ 144,405 $ 98,690) 101,275) ( ( 122,693 $ 43,130 $	September 30,2020 143,472 $ 97,928) 45,544 $

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 $122,693, $43,130 and $45,544 as at September 30, 2021, December 31, 2020, and September 30, 2020, respectively.
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 $585, ($138), $1,013 and ($440) for the three-month and nine-month periods ended September 30, 2021 and 2020, respectively. For the three-month and nine-month periods ended September 30, 2021, the accumulated loss due to delisting and transferring returned surplus was $0 and $1,572, respectively.
C. The Group has no financial assets at fair value through profit or loss as at September 30, 2021, December 31, 2020, and September 30, 2020 pledged to others.

(4) 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	September 30,2021 December 31,2020 128,828 $ 423,387 $ 1,288,708 $ 1,419,002 $	September 30,2020 414,487 $ 1,389,174 $

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

below:
Interest income Interest income	For the three-month period ended September30,2021 11,042 $ For the nine-month period ended September 30,2021 34,635 $	For the three-month period ended September30,2020
		13,296 $
		For the nine-month period ended September 30,2020
		32,874 $

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).

~19~

(5) Accounts receivable

A. The ageing analysis of accounts Accounts receivable Less: Allowance for uncollectible accounts Not past due Up to 30 days 31 to 90 days	receivable that was past due but not impaired is as follows: September 30,2021 December 31,2020 September 30,2020 1,731,430 $ 1,273,648 $ 1,043,170 $ 204) ( 265) ( 220) ( 1,731,226 $ 1,273,383 $ 1,042,950 $ September 30,2021 December 31,2020 September 30,2020 1,555,582 $ 1,257,413 $ 1,026,763 $ 175,549 8,351 16,206 299 7,884 201 1,731,430 $ 1,273,648 $ 1,043,170 $

A. The ageing analysis of accounts receivable that was past due but not impaired is as follows:

The above ageing analysis was based on past due date.

B. As of September 30, 2021, December 31, 2020, and September 30, 2020, accounts receivable were 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 do not hold any collateral provided by customers.
D. As at September 30, 2021, December 31, 2020, and September 30, 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 $1,731,226, $1,273,383 and $1,042,950, 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	Cost 1,399,893 $ 332,439 177,735 1,910,067 $	September 30,2021
		Allowance for valuation loss 21,615) ($ 25,328) ( 8,389) ( 55,332) ($ December31,2020		Book value
				1,378,278 $ 307,111 169,346
				1,854,735 $
			December31,2020
	Cost 771,902 $ 165,380 208,592 1,145,874 $

~20~

	September30,2020
Cost 580,534 $ 208,135 198,513 987,182 $	Allowance for valuation loss 17,580) ($ 1,215) ( 7,989) ( 26,784) ($	Bookvalue
		562,954 $ 206,920 190,524
		960,398 $

The cost of inventories recognised as expense for the period:

Cost of goods sold and others Loss (gain on reversal of) decline in market value Total Cost of goods sold and others Loss(gain on reversal of) decline in market value Total	For the three-month period ended September 30,2021 1,796,923 $ 17,558 1,814,481 $ For the nine-month period ended September 30,2021 5,101,372 $ 16,184 5,117,556 $	For the three-month period ended September 30,2020 1,272,079 $ 13,226) ( 1,258,853 $ For the nine-month period ended September 30,2020 3,258,781 $ 28,292) ( 3,230,489 $

For the three-month and nine-month periods ended September 30, 2020, the Group reversed 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.

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(7) Property, plant and equipment

At January 1 Cost Accumulated depreciation Opening net book amount Additions Disposals Reclassifications Depreciation charge Net exchange differences Closing net book amount At September 30 Cost Accumulated depreciation				2021

~22~

At January 1 Cost Accumulated depreciation Opening net book amount Additions Reclassifications Depreciation charge Net exchange differences Closing net book amount At September 30 Cost Accumulated depreciation			2020

A. For the nine-month periods ended September 30, 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.

~23~

`－` (8) Leasing arrangements lessee

A. The Group leases various assets including land, buildings, and 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 of buildings and equipment. Low-value assets comprise of printers.
C. The carrying amount of the depreciation charge are as follows:

				Carryingamount	Carryingamount	Carryingamount
	September	30,2021		December31,2020				September30,2020
Land	$	107,362		$	110,455			$	120,716
Buildings		11,200			1,421				1,854
Transportation equipment
(Business vehicles)		6,828			10,987				12,596
	$	125,390		$	122,863			$	135,166
					Depreciation			charge
		For the three-month				For the three-month
			period ended					period	ended
		September 30,2021				September 30,2020
Land		$			928	$			998
Buildings					1,307				462
Transportation equipment (Business vehicles)					1,208				1,035
		$			3,443	$			2,495
					Depreciation			charge
			For the nine-month				For the nine-month
			period ended					period	ended
		September 30,2021				September 30,2020
Land		$			2,784	$			2,996
Buildings					3,648				1,234
Transportation equipment (Business vehicles)					4,159				2,533
		$			10,591	$			6,763

D. For the three-month and nine-month periods ended September 30, 2021 and 2020, the additions to right-of-use assets were $0, $10,325, $13,440 and $10,325, respectively.

~24~

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 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 September 30,2021 277 $ 1,000 32 For the nine-month period ended September 30,2021 831 $ 4,041 70	For the three-month period ended September 30,2020
		284 $ 1,938 48 For the nine-month period ended September 30,2020
		854 $ 5,957 106

F. For the nine-month periods ended September 30, 2021 and 2020, the Group’s total cash outflow for leases were $14,747 and $12,659, respectively.
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	(	222)	(	18,627)	(	18,849)
Net exchange differences	(	158)	(	10,243)	(	10,401)
At September 30	$	583,027	$	794,309	$	1,377,336

At September 30
Cost	$	587,064	$	1,041,687	$	1,628,751
Accumulated depreciation	(	4,037)	(	247,378)	(	251,415)
	$	583,027	$	794,309	$	1,377,336

~25~

At January 1 Cost Accumulated depreciation At January 1 Depreciation charge At September 30 At September 30 Cost Accumulated depreciation		2020	Total 819,242 $ 55,509) 763,733 $ 763,733 $ 5,113) 758,620 $ 819,242 $ 60,622) 758,620 $
	Land 573,532 $ - ( 573,532 $ 573,532 $ - ( 573,532 $ 573,532 $ - ( 573,532 $	Buildingsand structures 245,710 $ 55,509) ( 190,201 $ 190,201 $ 5,113) ( 185,088 $ 245,710 $ 60,622) ( 185,088 $

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

property are shown below:
Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the period 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 September 30,2021 24,792 $ 11,111 $ For the nine-month period ended September 30,2021 70,861 $ 31,953 $	For the three-month period ended September 30,2020
		6,886 $
		2,070 $
		For the nine-month period ended September 30,2020
		20,191 $
		6,203 $

B. The fair value of the investment property held by the Group as at September 30, 2021, December 31, 2020, and September 30, 2020 all amounted to $1,641,198, $1,632,152 and $870,022, respectively, which were valued by independent appraisers. 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.

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(10) Intangible assets

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			125,612			55,333
Adjustments			-			97,837
Amortisation charge	(		68,896)	(		65,486)
Net exchange differences	(		1,384)	(		1,930)
At September 30	$		270,593	$		239,295

At September 30
Cost	$		451,054	$		380,111
Accumulated amortisation	(		180,461)	(		140,816)
	$		270,593	$		239,295
A. Details of amortisation on intangible assets are as follows:
		For	the three-month		For	the three-month
			period ended			period ended
		September 30,2021			September 30,2020
Operating costs		$	19		$	40
Operating expense			22,751			27,548
		$	22,770		$	27,588
		For the nine-month			For the nine-month
			period ended			period ended
		September 30,2021			September 30,2020
Operating costs		$	87		$	119
Operating expense			68,809			65,367
		$	68,896		$	65,486

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

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(11) Short-term borrowings

Short-term borrowings
Short-term notes and bills payable Type ofborrowings September30,2021 Interestraterange Bank borrowings Unsecured borrowings 2,510,000 $ 0.82%~1.1% Type ofborrowings December31,2020 Interestraterange Bank borrowings Unsecured borrowings 2,330,000 $ 0.82%~0.94% Type ofborrowings September30,2020 Interestraterange Bank borrowings Unsecured borrowings 2,730,000 $ 0.82% ~0.89% September 30,2021 December 31,2020 Commercial paper payable 400,000 $ 300,000 $ Less: Discount on short-term notes and bills payable 61) ( 202) ( 399,939 $ 299,798 $ Interest rate ranges 0.84%~0.88% 0.85%~0.87%		Collateral None Collateral None Collateral None September 30,2020 - $ - - $ -

(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 September 30, 2021 and 2020: None.

During the terms of the unsecured borrowing, in accordance with the unsecured borrowing agreements contracted with bank, the Group is required to maintain a consolidated net value over $8 billion and a 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. The mortgage has been cancelled on June 28, 2021.

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(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 recognised pension costs of $0, $0, $43 and $76 for the three-month and nine-month periods ended September 30, 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 and nine-month periods ended September 30, 2021 and 2020, were $9,122, $7,556, $25,463 and $22,175, 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 $4,526, $240, $12,485 and $1,762 for the three-month and ninemonth periods ended September 30, 2021 and 2020, respectively.

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(15) Share-based payments

A. For the nine-month periods ended September 30, 2021 and 2020, the Group’s share-based payment 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, 2021 May 17, 2021	3,000 3,000 630 2,196 820 2,030 86 2,000 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 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.

~30~

B. Details of the share-based payment arrangements are as follows:
(a) For the nine-month periods ended September 30, 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) - - $ - - - - - - September 30,2021 For the nine-month period ended	Weighted-average exercise price No. of options (in NT dollars)(Note) 1,701 29.81 $ 60) ( 28.80 1,641 28.75 1,641 28.75 September 30,2020 For the nine-month period ended	Weighted-average exercise price No. of options (in NT dollars)(Note) 1,701 29.81 $ 60) ( 28.80 1,641 28.75 1,641 28.75 September 30,2020 For the nine-month period ended
	No. of options - - - -	No. of options 1,701 60) ( 1,641 1,641
			29.81 $ 28.80 28.75 28.75

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 and nine-month periods ended September 30, 2021 and 2020.
(c) The expiry date and exercise price of stock options outstanding at balance sheet date are as follows:

September 30, 2021: None.

follows: September 30,	2021: None.
Issue dateapproved	Expiry date	December	Exercise price (in NT dollars) (Note) 28.8 $ 28.7 31,2020	September30,2020
		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				28.8 $ 28.7

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

~31~

(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 "			- -	30.27% 33.54%	5 years 4.9 years	1.4% 1.4%	1.18% 1.08%	7.42 $ 7.35

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 nine-month		For the nine-month
		period ended		period ended
		September 30,2021		September 30,2020
Shares ungranted beginning balance		4,968		1,350
Given at period (Notes 1 and 2)		-		4,312
Shares exercised	(	1,993)	(	518)
Shares forfeited - retired	(	183)	(	130)
Shares forfeited - not retired	(	48)		-
Shares ungranted ending balance		2,744		5,014

  - 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 nine-month period ended September 30, 2021, the Company collected 231 thousand shares of restricted shares because certain employees did not meet the vesting condition, and the change of registration has been completed for 183 thousand shares.
D. For the nine-month period ended September 30, 2021, the weighted-average exercise price of treasury stock transferred to employees was $20.38 (in NT dollars).

~32~

E. Expenses incurred on share-based payment transactions are shown below:

Provisions Equity-settled Equity-settled At January 1, 2021 Additional provisions Reversed during the period Exchange differences At September 30, 2021 Current Non-current	September 30,2021 11,497 $ 166,237 $	For the three-month period ended For the three-month period ended September 30,2021 September 30,2020 5,886 $ 17,770 $ For the nine-month period ended For the nine-month period ended September 30,2021 September 30,2020 64,404 $ 53,939 $ Warranty 169,690 $ 20,074 12,014) ( 16) ( 177,734 $ December 31,2020 September 30,2020 9,295 $ 7,955 $ 160,395 $ 156,267 $

(16) Provisions

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 September 30, 2021, the Company’s authorised capital was $5,000,000, consisting of 500,000 thousand shares of ordinary stock, and the paid-in capital was $2,792,659 (including $486 recalled

but doesn’t retire ) 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):

(share in thousands):
		2021		2020
At January 1		268,497		275,361
Treasury stock transferred to employees		2,000		-
Establish employee restricted shares		-		4,312
Retired restricted shares to employees that
did not meet the vesting conditions	(	183)	(	130)
Recalled restricted shares to employees that
did not meet the vesting conditions	(	48)		-
Shares repurchases		-	(	11,000)
At September 30		270,266		268,543

~33~

B. Treasury shares

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

follows :
Name of company holdingthe 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	September	30,2021
		Number of shares (share in thousands) Carryingamount 9,000 167,127 $ Number of shares (sharein thousands) Carryingamount 11,000 209,287 $ December31,2020 Number of shares (share in thousands) Carryingamount 11,000 209,287 $ September30,2020	Carryingamount
The Company Name of company holdingthe shares			167,127 $
The Company Name of company holdingthe shares
The Company

(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.

~34~

2021

Share Employee stock Difference between consideration and carrying amount of subsidiaries acquired or premium options disposed At January 1 1,821,473 $ 49,102 $ 1,534 $ Changes in ownership interests in subsidiaries - - - Treasury stock transferred to employees - - - Employee restricted share granted 25,632 - - Retired restricted shares to employees that did not meet the vesting conditions - - - At September 30 1,847,105 $ 49,102 $ 1,534 $ Share Employee stock Difference between consideration and carrying amount of subsidiaries acquired or premium options disposed At January 1 1,814,532 $ 49,102 $ 1,534 $ Issuance of restricted shares to employees - - - Employee restricted share granted 6,941 - - Retirement of employee restricted shares - - - At September 30 1,821,473 $ 49,102 $ 1,534 $	Share Employee stock Difference between consideration and carrying amount of subsidiaries acquired or premium options disposed At January 1 1,821,473 $ 49,102 $ 1,534 $ Changes in ownership interests in subsidiaries - - - Treasury stock transferred to employees - - - Employee restricted share granted 25,632 - - Retired restricted shares to employees that did not meet the vesting conditions - - - At September 30 1,847,105 $ 49,102 $ 1,534 $ Share Employee stock Difference between consideration and carrying amount of subsidiaries acquired or premium options disposed At January 1 1,814,532 $ 49,102 $ 1,534 $ Issuance of restricted shares to employees - - - Employee restricted share granted 6,941 - - Retirement of employee restricted shares - - - At September 30 1,821,473 $ 49,102 $ 1,534 $	Share Employee stock premium options 1,821,473 $ 49,102 $ - - - - 25,632 - - - 1,847,105 $ 49,102 $	Difference between consideration and carrying amount of subsidiaries acquired or disposed 1,534 $ - - - - 1,534 $	Changes in ownership interests in subsidiaries 397,909 $ 11,831) ( - - - 386,078 $ 2020	Proceeds from sales of treasury shares 1,455 $ - 42,464 - - 43,919 $
				Changes in ownership interests in subsidiaries 395,774 $ - - - 395,774 $	Proceeds from sales of treasury Restricted shares to shares employees 1,455 $ 18,090 $ - 54,798 - 6,941) ( - 1,605) ( ( 1,455 $ 64,342 $

(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.

~35~

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 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 and 2019 earnings had been resolved at the stockholders’ meeting on August 26, 2021 and June 12, 2020, respectively. Details are summarized below:

Legal reserve Special reserve Cash dividends	Dividends per share Amount (inNTdollars) 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 (inNTdollars)
			0.5 $

The appropriation of 2020 and 2019 earnings were the same as that approved by the Board of Directors on March 25, 2021 and March 20, 2020, respectively.

~36~

(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					-				758						-		758
Valuation adjustment to retained					-				1,572						-		1,572
earnings
Currency translation differences:
-Group	(			136,285)						-					-	(	136,285)
Retirement of restricted shares
to employees					-					-				5,235			5,235
Share-based payment transactions					-					-				21,814			21,814
At September 30	($			686,821)			($		98,690)			($		19,093)		($	804,604)
									2020
							Unrealized
		Foreign currency					losses on						Unearned
				translation				valuation				compensation					Total
At January 1	($			494,335)		($			97,990)		($			23,034)	($		615,359)
Valuation adjustment				-		(			352)					-	(		352)
Currency translation differences:
-Group	(			94,976)					-					-	(		94,976)
Issuance of restricted shares to
employees				-					-		(			97,918)	(		97,918)
Retirement of restricted shares				-					-					2,905			2,905
to employees
Share-based payment transactions				-					-					53,939			53,939
At September 30	($			589,311)		($			98,342)		($			64,108)	($		751,761)

(21) Operating revenue

Operating revenue
Revenue from contracts with customers Revenue from contracts with customers	For the three-month period ended September 30,2021 2,470,362 $ For the nine-month period ended September 30,2021 6,753,566 $	For the three-month period ended September 30,2020
		1,615,475 $
		For the nine-month period ended September 30,2020
		4,252,973 $

~37~

A. Disaggregation of revenue from contracts with customers

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 September 30,2021 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Total For the three-month period ended September 30,2020 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Total For the nine-month period ended September 30,2021 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Total	Asia 1,448,256 $ 1,438,047 $ 10,209 1,448,256 $ Asia 960,872 $ 934,534 $ 26,338 960,872 $ Asia 3,992,293 $ 3,961,618 $ 30,675 3,992,293 $	Europe 384,622 $ 384,622 $ - 384,622 $ Europe 280,387 $ 280,387 $ - 280,387 $ Europe 925,413 $ 925,413 $ - 925,413 $	America 636,425 $ 636,425 $ - 636,425 $ America 374,117 $ 374,117 $ - 374,117 $ America 1,830,084 $ 1,830,084 $ - 1,830,084 $	Taiwan 1,059 $ 1,059 $ - 1,059 $ Taiwan 99 $ 99 $ - 99 $ Taiwan 5,776 $ 5,776 $ - 5,776 $	Total
					2,470,362 $
					2,460,153 $ 10,209
					2,470,362 $
					Total
					1,615,475 $
					1,589,137 $ 26,338
					1,615,475 $
					Total
					6,753,566 $
					6,722,891 $ 30,675
					6,753,566 $

~38~

For the nine-month period ended September 30,2020 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Total	Asia 2,323,257 $ 2,252,088 $ 71,169 2,323,257 $	Europe 784,872 $ 784,872 $ - 784,872 $	America 1,027,581 $ 1,027,581 $ - 1,027,581 $	Taiwan 117,263 $ 117,263 $ - 117,263 $	Total
					4,252,973 $
					4,181,804 $ 71,169
					4,252,973 $

B. Contract liabilities

The Group has recognised the following revenue-related contract liabilities:

Contract liabilities	September 30,2021	December 31,2020	September 30,2020	January1,2020
	147,144 $	32,568 $	92,865 $	34,096 $

C. Revenue recognised that was included in the contract liability balance at the beginning of the period

Revenue recognised that was included in the contract liability balance at the beginning of the period Revenue recognised that was included in the contract liability balance at the beginning of the period	For the three-month period ended September 30,2021 `-` `$` For the nine-month period ended September 30,2021 `25,009` `$`	For the three-month period ended September 30,2020
		`16,125` `$`
		For the nine-month period ended September 30,2020
		`25,917` `$`

~39~

(22) Interest income

Interest income
Other income Interest income from bank deposits Interest income from financial assets measured at amortised cost Other interest income Interest income from bank deposits Interest income from financial assets measured at amortised cost Other interest income Rent income Dividend income Other income - others Rent income Dividend income Other income - others	For the three-month period ended September 30,2021 6,531 $ 11,042 9 17,582 $ For the nine-month period ended September 30,2021 19,285 $ 34,635 38 53,958 $ For the three-month period ended September 30,2021 13,435 $ 1,526 5,934 20,895 $ For the nine-month period ended September 30,2021 35,785 $ 1,526 13,955 51,266 $	For the three-month period ended September 30,2020
		9,434 $ 13,296 8
		22,738 $
		For the nine-month period ended September 30,2020
		48,909 $ 32,874 23
		81,806 $
		For the three-month period ended September 30,2020
		4,710 $ 1,526 2,218
		8,454 $
		For the nine-month period ended September 30,2020
		25,891 $ 1,526 8,073
		35,490 $

(23) Other income

~40~

(24) Other gains and losses

Finance costs
For the three-month
period ended
September 30,2021
Gain on disposal of property, plant and
equipment
291
$ Net currency exchange gains
2,679
Net gains on financial assets at fair value
through profit
307
Other expenses
-
(
Total
3,277
$ For the nine-month
period ended
September 30,2021
Loss on disposal of property, plant and
equipment
29)
($ Net currency exchange gains
3,577
Net gains on financial assets at fair value
through profit
27,931
Other expenses
78)
(
(
Total
31,401
$ For the three-month
period ended
September 30,2021
Interest expense :
Bank loan
5,348
$ Lease liabilities
277
Other
900
6,525
$ For the nine-month
period ended
September 30,2021
Interest expense :
Bank loan
16,291
$ Lease liabilities
831
Other
1,867
18,989
$

For the three-month
period ended
September 30,2020
-
$ 1,537
6,409
124)

7,822
$ For the nine-month
period ended
September 30,2020
-
$ 5,879
7,920
1,655)

12,144
$ For the three-month
period ended
September 30,2020
5,831
$ 284
112
6,227
$ For the nine-month
period ended
September 30,2020
17,538
$ 854
521
18,913
$

(25) Finance costs

~41~

(26) Expenses by nature

Expenses by nature
Employee benefit expenses 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 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 Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses Total Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses Total	For the three-month period ended September 30,2021 392,642 $ 37,581 3,443 6,262 22,770 For the nine-month period ended September 30,2021 1,111,915 $ 112,349 10,591 18,849 68,896 For the three-month period ended September 30,2021 353,222 $ 15,469 13,648 10,303 392,642 $ For the nine-month period ended September 30,2021 999,211 $ 45,991 37,991 28,722 1,111,915 $	For the three-month period ended September 30,2020
		306,278 $ 41,316 2,495 1,704 27,588 For the nine-month period ended September 30,2020
		862,627 $ 124,219 6,763 5,113 65,486 For the three-month period ended September 30,2020
		276,754 $ 13,149 7,796 8,579
		306,278 $
		For the nine-month period ended September 30,2020
		777,604 $ 38,120 24,013 22,890
		862,627 $

(27) Employee benefit expenses

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

~42~

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.

B. For the three-month and nine-month periods ended September 30, 2021 and 2020, employees’ compensation was accrued at $19,438, $8,961, $37,059 and $26,545, respectively; directors’ remuneration was accrued at $2,592, $1,195, $4,941 and $3,539, 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 recognised 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:
Current tax: Current tax on profits for the period Tax paid outside of the territory of the Republic of China Prior year income tax over estimation Total current tax Deferred tax: Origination and reversal of temporary differences Income tax expense	For the three-month period ended September 30,2021 26,609 $ 6,119 12 32,740 9,439 42,179 $	For the three-month period ended September 30,2020
		21,765 $ 954 -
		22,719
		5,817
		28,536 $

~43~

			For the nine-month			For the nine-month
			period ended			period ended
		September 30,2021			September 30,2020
Current tax:
Current tax on profits for the period	$		80,100	$		44,990
Charge on unappropriated retained earnings			3,418			7,315
Tax paid outside of the territory of
the Republic of China			12,768			3,696
Prior year income tax over estimation	(		5,570)	(		273)
Total current tax			90,716			55,728
Deferred tax:
Origination and reversal of
temporary differences	(		647)			19,765
Income tax expense	$		90,069	$		75,493

(b) The income tax charged to other comprehensive			income is as follows:
		For the three-month			For the three-month
			period ended			period ended
		September 30,2021			September 30,2020
Changes in fair value of financial assets at
fair value through other comprehensive
income	$		-	($		28)
Translation differences of foreign operations	(		5,145)			11,249
	($		5,145)	$		11,221
			For the nine-month			For the nine-month
			period ended			period ended
		September 30,2021			September 30,2020
Changes in fair value of financial assets at
fair value through other comprehensive
income	$		255	($		88)
Translation differences of foreign operations	(		34,071)	(		23,744)
	($		33,816)	($		23,832)

B. The Company’s income tax returns through 2018 have been assessed and approved by the Tax Authority.

~44~

(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 Treasure stock transferred 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 endedSeptember 30,2021
	Weighted average number of ordinary shares outstanding Earnings per share Amount after tax (share in thousands) (in dollars) 94,084 $ 265,573 0.35 $ 94,084 $ - 2,665 - 912 - 1,065 94,084 $ 270,215 0.35 $ For the three-monthperiod endedSeptember 30,2020		Earnings per share (in dollars)
			0.35 $
			0.35 $
	Amount after tax 41,454 $ 41,454 $ - - 41,454 $	Weighted average number of ordinary shares outstanding (share in thousands) 263,186 2,963 1,068 267,217	Earnings per share (in dollars)
			0.16 $
			0.16 $

~45~

Transactions with non-controlling interest 1. In January, 2021, the Group disposed 25% of its shares in subsidiary—Altek Optical Technology (Kunshan) Co., Ltd. and in February 11.67% of its shares in subsidiary—Altek Medical Holding (Cayman) Co., Ltd. Therefore, the Group reduced its shareholding in subsidiaries in the above transactions. Weighted average number of ordinary shares outstanding Earnings per share Amount after tax (share in thousands) (in dollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent 186,808 $ 264,952 0.71 $ Diluted earnings per share Profit attributable to ordinary shareholders of the parent 186,808 $ Assumed conversion of all dilutive potential ordinary shares Restricted shares to employees - 3,029 Treasure stock transferred to employees - 896 Employees’ bonus - 1,334 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 186,808 $ 270,211 0.69 $ For the nine-monthperiod endedSeptember 30,2021 Weighted average number of ordinary shares outstanding Earnings per share Amount after tax (share in thousands) (in dollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent 123,272 $ 266,507 0.46 $ Diluted earnings per share Profit attributable to ordinary shareholders of the parent 123,272 $ Assumed conversion of all dilutive potential ordinary shares Restricted shares to employees - 2,664 Employees’ bonus - 1,362 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 123,272 $ 270,533 0.46 $ For the nine-monthperiod ended September 30,2020		For the nine-monthperiod endedSeptember 30,2021	For the nine-monthperiod endedSeptember 30,2021
			Earnings per share (in dollars)
			0.71 $
			0.69 $

(30) Transactions with non-controlling interest

~46~

Altek Medical Holding (Cayman) Co., Ltd., a subsidiary company of the group, increased its capital in January 2021. The Group did not subscribe to the capital increase which resulted in 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 the non-controlling 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:

Consideration received from non-controlling interest Non-controlling interests invested in cash Increase in the carrying amount of non-controlling interest Capital surplus	For the nine-month period ended September30,2021 99,094 $ 70,464 181,389) ( 11,831) ($	For the nine-month period ended September30,2020
		- $ - -
		- $

(31) Supplemental cash flow information

A. Investing activities with partial cash payments ：

Acquisition of property, plant, and equipment Add: Property and equipment and construction billings payable at beginning of period Less: Property and equipment and construction billings payable at end of period Cash paid Acquisition of intangible assets Add: Payables at beginning of period Less: Payables at end of period Cash paid	For the nine-month period ended September30,2021 352,205 $ 4,203 1,074) ( 355,334 $ For the nine-month period ended September 30,2021 125,612 $ 278 378) ( 125,512 $	For the nine-month period ended September30,2020 11,558 $ 898 660) ( 11,796 $ For the nine-month period ended September 30,2020 55,333 $ - 450) ( 54,883 $

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

Changes in liabilities from financing activities For the nine-month period ended For the nine-month period ended September 30,2021 September 30,2020 Declaration of cash dividend 134,249 $ 139,794 $ Short-term borrowings Short-term notes and bills payable Long-term borrowings (Note) Guarantee deposits received Lease liabilities Total January 1, 2021 2,330,000 $ 299,798 $ 250,000 $ 26,480 $ 104,512 $ 3,010,790 $ Changes in cash flow from financing activities 180,000 98,274 250,000) ( 3,279) ( 10,636) ( 14,359 Impact of changes in foreign exchange rate - - - 298) ( 13) ( 311) ( Changes in other non-cash items - 1,867 - - 14,271 16,138 September 30, 2021 2,510,000 $ 399,939 $ - $ 22,903 $ 108,134 $ 3,040,976 $ Short-term borrowings Short-term notes and billspayable Long-term borrowings Guarantee deposits received Lease liabilities Total January 1, 2020 2,200,000 $ 229,962 $ - $ 20,326 $ 102,805 $ 2,553,093 $ Changes in cash flow from financing activities 530,000 230,483) ( - 10,262 6,596) ( 303,183 Impact of changes in foreign exchange rate - - - - 21) ( 21) ( Changes in other non-cash items - 521 - 56) ( 11,025 11,490 September 30, 2020 2,730,000 $ - $ - $ 30,532 $ 107,213 $ 2,867,745 $	Changes in liabilities from financing activities For the nine-month period ended For the nine-month period ended September 30,2021 September 30,2020 Declaration of cash dividend 134,249 $ 139,794 $ Short-term borrowings Short-term notes and bills payable Long-term borrowings (Note) Guarantee deposits received Lease liabilities Total January 1, 2021 2,330,000 $ 299,798 $ 250,000 $ 26,480 $ 104,512 $ 3,010,790 $ Changes in cash flow from financing activities 180,000 98,274 250,000) ( 3,279) ( 10,636) ( 14,359 Impact of changes in foreign exchange rate - - - 298) ( 13) ( 311) ( Changes in other non-cash items - 1,867 - - 14,271 16,138 September 30, 2021 2,510,000 $ 399,939 $ - $ 22,903 $ 108,134 $ 3,040,976 $ Short-term borrowings Short-term notes and billspayable Long-term borrowings Guarantee deposits received Lease liabilities Total January 1, 2020 2,200,000 $ 229,962 $ - $ 20,326 $ 102,805 $ 2,553,093 $ Changes in cash flow from financing activities 530,000 230,483) ( - 10,262 6,596) ( 303,183 Impact of changes in foreign exchange rate - - - - 21) ( 21) ( Changes in other non-cash items - 521 - 56) ( 11,025 11,490 September 30, 2020 2,730,000 $ - $ - $ 30,532 $ 107,213 $ 2,867,745 $	Changes in liabilities from financing activities For the nine-month period ended For the nine-month period ended September 30,2021 September 30,2020 Declaration of cash dividend 134,249 $ 139,794 $ Short-term borrowings Short-term notes and bills payable Long-term borrowings (Note) Guarantee deposits received Lease liabilities Total January 1, 2021 2,330,000 $ 299,798 $ 250,000 $ 26,480 $ 104,512 $ 3,010,790 $ Changes in cash flow from financing activities 180,000 98,274 250,000) ( 3,279) ( 10,636) ( 14,359 Impact of changes in foreign exchange rate - - - 298) ( 13) ( 311) ( Changes in other non-cash items - 1,867 - - 14,271 16,138 September 30, 2021 2,510,000 $ 399,939 $ - $ 22,903 $ 108,134 $ 3,040,976 $ Short-term borrowings Short-term notes and billspayable Long-term borrowings Guarantee deposits received Lease liabilities Total January 1, 2020 2,200,000 $ 229,962 $ - $ 20,326 $ 102,805 $ 2,553,093 $ Changes in cash flow from financing activities 530,000 230,483) ( - 10,262 6,596) ( 303,183 Impact of changes in foreign exchange rate - - - - 21) ( 21) ( Changes in other non-cash items - 521 - 56) ( 11,025 11,490 September 30, 2020 2,730,000 $ - $ - $ 30,532 $ 107,213 $ 2,867,745 $	Changes in liabilities from financing activities For the nine-month period ended For the nine-month period ended September 30,2021 September 30,2020 Declaration of cash dividend 134,249 $ 139,794 $ Short-term borrowings Short-term notes and bills payable Long-term borrowings (Note) Guarantee deposits received Lease liabilities Total January 1, 2021 2,330,000 $ 299,798 $ 250,000 $ 26,480 $ 104,512 $ 3,010,790 $ Changes in cash flow from financing activities 180,000 98,274 250,000) ( 3,279) ( 10,636) ( 14,359 Impact of changes in foreign exchange rate - - - 298) ( 13) ( 311) ( Changes in other non-cash items - 1,867 - - 14,271 16,138 September 30, 2021 2,510,000 $ 399,939 $ - $ 22,903 $ 108,134 $ 3,040,976 $ Short-term borrowings Short-term notes and billspayable Long-term borrowings Guarantee deposits received Lease liabilities Total January 1, 2020 2,200,000 $ 229,962 $ - $ 20,326 $ 102,805 $ 2,553,093 $ Changes in cash flow from financing activities 530,000 230,483) ( - 10,262 6,596) ( 303,183 Impact of changes in foreign exchange rate - - - - 21) ( 21) ( Changes in other non-cash items - 521 - 56) ( 11,025 11,490 September 30, 2020 2,730,000 $ - $ - $ 30,532 $ 107,213 $ 2,867,745 $	Changes in liabilities from financing activities For the nine-month period ended For the nine-month period ended September 30,2021 September 30,2020 Declaration of cash dividend 134,249 $ 139,794 $ Short-term borrowings Short-term notes and bills payable Long-term borrowings (Note) Guarantee deposits received Lease liabilities Total January 1, 2021 2,330,000 $ 299,798 $ 250,000 $ 26,480 $ 104,512 $ 3,010,790 $ Changes in cash flow from financing activities 180,000 98,274 250,000) ( 3,279) ( 10,636) ( 14,359 Impact of changes in foreign exchange rate - - - 298) ( 13) ( 311) ( Changes in other non-cash items - 1,867 - - 14,271 16,138 September 30, 2021 2,510,000 $ 399,939 $ - $ 22,903 $ 108,134 $ 3,040,976 $ Short-term borrowings Short-term notes and billspayable Long-term borrowings Guarantee deposits received Lease liabilities Total January 1, 2020 2,200,000 $ 229,962 $ - $ 20,326 $ 102,805 $ 2,553,093 $ Changes in cash flow from financing activities 530,000 230,483) ( - 10,262 6,596) ( 303,183 Impact of changes in foreign exchange rate - - - - 21) ( 21) ( Changes in other non-cash items - 521 - 56) ( 11,025 11,490 September 30, 2020 2,730,000 $ - $ - $ 30,532 $ 107,213 $ 2,867,745 $	Changes in liabilities from financing activities For the nine-month period ended For the nine-month period ended September 30,2021 September 30,2020 Declaration of cash dividend 134,249 $ 139,794 $ Short-term borrowings Short-term notes and bills payable Long-term borrowings (Note) Guarantee deposits received Lease liabilities Total January 1, 2021 2,330,000 $ 299,798 $ 250,000 $ 26,480 $ 104,512 $ 3,010,790 $ Changes in cash flow from financing activities 180,000 98,274 250,000) ( 3,279) ( 10,636) ( 14,359 Impact of changes in foreign exchange rate - - - 298) ( 13) ( 311) ( Changes in other non-cash items - 1,867 - - 14,271 16,138 September 30, 2021 2,510,000 $ 399,939 $ - $ 22,903 $ 108,134 $ 3,040,976 $ Short-term borrowings Short-term notes and billspayable Long-term borrowings Guarantee deposits received Lease liabilities Total January 1, 2020 2,200,000 $ 229,962 $ - $ 20,326 $ 102,805 $ 2,553,093 $ Changes in cash flow from financing activities 530,000 230,483) ( - 10,262 6,596) ( 303,183 Impact of changes in foreign exchange rate - - - - 21) ( 21) ( Changes in other non-cash items - 521 - 56) ( 11,025 11,490 September 30, 2020 2,730,000 $ - $ - $ 30,532 $ 107,213 $ 2,867,745 $	Changes in liabilities from financing activities For the nine-month period ended For the nine-month period ended September 30,2021 September 30,2020 Declaration of cash dividend 134,249 $ 139,794 $ Short-term borrowings Short-term notes and bills payable Long-term borrowings (Note) Guarantee deposits received Lease liabilities Total January 1, 2021 2,330,000 $ 299,798 $ 250,000 $ 26,480 $ 104,512 $ 3,010,790 $ Changes in cash flow from financing activities 180,000 98,274 250,000) ( 3,279) ( 10,636) ( 14,359 Impact of changes in foreign exchange rate - - - 298) ( 13) ( 311) ( Changes in other non-cash items - 1,867 - - 14,271 16,138 September 30, 2021 2,510,000 $ 399,939 $ - $ 22,903 $ 108,134 $ 3,040,976 $ Short-term borrowings Short-term notes and billspayable Long-term borrowings Guarantee deposits received Lease liabilities Total January 1, 2020 2,200,000 $ 229,962 $ - $ 20,326 $ 102,805 $ 2,553,093 $ Changes in cash flow from financing activities 530,000 230,483) ( - 10,262 6,596) ( 303,183 Impact of changes in foreign exchange rate - - - - 21) ( 21) ( Changes in other non-cash items - 521 - 56) ( 11,025 11,490 September 30, 2020 2,730,000 $ - $ - $ 30,532 $ 107,213 $ 2,867,745 $	Changes in liabilities from financing activities For the nine-month period ended For the nine-month period ended September 30,2021 September 30,2020 Declaration of cash dividend 134,249 $ 139,794 $ Short-term borrowings Short-term notes and bills payable Long-term borrowings (Note) Guarantee deposits received Lease liabilities Total January 1, 2021 2,330,000 $ 299,798 $ 250,000 $ 26,480 $ 104,512 $ 3,010,790 $ Changes in cash flow from financing activities 180,000 98,274 250,000) ( 3,279) ( 10,636) ( 14,359 Impact of changes in foreign exchange rate - - - 298) ( 13) ( 311) ( Changes in other non-cash items - 1,867 - - 14,271 16,138 September 30, 2021 2,510,000 $ 399,939 $ - $ 22,903 $ 108,134 $ 3,040,976 $ Short-term borrowings Short-term notes and billspayable Long-term borrowings Guarantee deposits received Lease liabilities Total January 1, 2020 2,200,000 $ 229,962 $ - $ 20,326 $ 102,805 $ 2,553,093 $ Changes in cash flow from financing activities 530,000 230,483) ( - 10,262 6,596) ( 303,183 Impact of changes in foreign exchange rate - - - - 21) ( 21) ( Changes in other non-cash items - 521 - 56) ( 11,025 11,490 September 30, 2020 2,730,000 $ - $ - $ 30,532 $ 107,213 $ 2,867,745 $	Changes in liabilities from financing activities For the nine-month period ended For the nine-month period ended September 30,2021 September 30,2020 Declaration of cash dividend 134,249 $ 139,794 $ Short-term borrowings Short-term notes and bills payable Long-term borrowings (Note) Guarantee deposits received Lease liabilities Total January 1, 2021 2,330,000 $ 299,798 $ 250,000 $ 26,480 $ 104,512 $ 3,010,790 $ Changes in cash flow from financing activities 180,000 98,274 250,000) ( 3,279) ( 10,636) ( 14,359 Impact of changes in foreign exchange rate - - - 298) ( 13) ( 311) ( Changes in other non-cash items - 1,867 - - 14,271 16,138 September 30, 2021 2,510,000 $ 399,939 $ - $ 22,903 $ 108,134 $ 3,040,976 $ Short-term borrowings Short-term notes and billspayable Long-term borrowings Guarantee deposits received Lease liabilities Total January 1, 2020 2,200,000 $ 229,962 $ - $ 20,326 $ 102,805 $ 2,553,093 $ Changes in cash flow from financing activities 530,000 230,483) ( - 10,262 6,596) ( 303,183 Impact of changes in foreign exchange rate - - - - 21) ( 21) ( Changes in other non-cash items - 521 - 56) ( 11,025 11,490 September 30, 2020 2,730,000 $ - $ - $ 30,532 $ 107,213 $ 2,867,745 $	Changes in liabilities from financing activities For the nine-month period ended For the nine-month period ended September 30,2021 September 30,2020 Declaration of cash dividend 134,249 $ 139,794 $ Short-term borrowings Short-term notes and bills payable Long-term borrowings (Note) Guarantee deposits received Lease liabilities Total January 1, 2021 2,330,000 $ 299,798 $ 250,000 $ 26,480 $ 104,512 $ 3,010,790 $ Changes in cash flow from financing activities 180,000 98,274 250,000) ( 3,279) ( 10,636) ( 14,359 Impact of changes in foreign exchange rate - - - 298) ( 13) ( 311) ( Changes in other non-cash items - 1,867 - - 14,271 16,138 September 30, 2021 2,510,000 $ 399,939 $ - $ 22,903 $ 108,134 $ 3,040,976 $ Short-term borrowings Short-term notes and billspayable Long-term borrowings Guarantee deposits received Lease liabilities Total January 1, 2020 2,200,000 $ 229,962 $ - $ 20,326 $ 102,805 $ 2,553,093 $ Changes in cash flow from financing activities 530,000 230,483) ( - 10,262 6,596) ( 303,183 Impact of changes in foreign exchange rate - - - - 21) ( 21) ( Changes in other non-cash items - 521 - 56) ( 11,025 11,490 September 30, 2020 2,730,000 $ - $ - $ 30,532 $ 107,213 $ 2,867,745 $
			$				$
				Long-term borrowings (Note)				Lease liabilities
January 1, 2021 Changes in cash flow from financing activities Impact of changes in foreign exchange rate Changes in other non-cash items September 30, 2021 January 1, 2020 Changes in cash flow from financing activities Impact of changes in foreign exchange rate Changes in other non-cash items September 30, 2020	Short-term borrowings
	2,330,000 $ 180,000 - - 2,510,000 $ Short-term borrowings	299,798 $ 98,274 - 1,867 399,939 $ Short-term notes and billspayable		250,000 $ 250,000) ( - - - $ Long-term borrowings		26,480 $ 3,279) ( 298) ( - 22,903 $ Guarantee deposits received		104,512 $ 10,636) ( 13) ( 14,271 108,134 $ Lease liabilities	3,010,790 $ 14,359 311) ( 16,138 3,040,976 $ Total
	2,200,000 $ 530,000 - - 2,730,000 $	229,962 $ 230,483) ( - 521 - $			- $ - - - - $	20,326 $ 10,262 - 56) ( 30,532 $		102,805 $ 6,596) ( 21) ( 11,025 107,213 $	2,553,093 $ 303,183 21) ( 11,490 2,867,745 $

Note: The loan will be due within 1 year and is 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 Salaries and other short-term employee benefits Post-employment benefits Share-based payments Total	For the three-month period ended September 30,2021 11,142 $ 304 1,242 12,688 $ For the nine-month period ended September 30,2021 37,346 $ 798 4,782 42,926 $	For the three-month period ended September 30,2020
		9,518 $ 266 4,304
		14,088 $
		For the nine-month period ended September 30,2020
		33,096 $ 692 11,935
		45,723 $

8. PLEDGED ASSETS

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

Pledged asset	Purpose Long-term borrowings Long-term borrowings	Bookvalue	September30,2020 737,156 $ 758,620 1,495,776 $
		September30,2021 December31,2020 - $ 734,116 $ - 756,915 - $ 1,491,031 $
Land, buildings and structures Investment property

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	September30,2021 68,441 $ 122,693 $ 5,438,633 $ 1,417,536 - 1,731,226 102,906 39,860 8,730,161 $ September30,2021 2,510,000 $ 399,939 1,747,256 607,376 - 22,903 5,287,474 $ 108,134 $	December31,2020 397,893 $ 43,130 $ 5,373,406 $ 1,842,389 4,414 1,273,383 68,825 34,746 8,597,163 $ December31,2020 2,330,000 $ 299,798 1,296,475 485,953 250,000 26,480 4,688,706 $ 104,512 $	September30,2020 48,076 $ 45,544 $ 5,813,248 $ 1,803,661 4,415 1,042,950 54,746 31,170 8,750,190 $ September30,2020 2,730,000 $ - 1,013,430 548,621 - 30,532 4,322,583 $ 107,213 $

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 Group treasury department 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.
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:

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September 30, 2021

Foreign Currency Amount (In thousands) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 74,279 USD USD:RMB 56,068 USD Financial liabilities Monetary items USD:NTD 59,928 USD USD:RMB 55,315 USD Foreign Currency Amount (In thousands) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 60,233 USD USD:RMB 42,521 USD Financial liabilities Monetary items USD:NTD 50,084 USD USD:RMB 40,800 USD	Foreign Currency Amount (In thousands) 74,279 USD 56,068 USD 59,928 USD 55,315 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

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September 30, 2020

Foreign Currency Amount (In thousands) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 40,196 USD USD:RMB 32,733 USD Financial liabilities Monetary items USD:NTD 36,119 USD USD:RMB 29,932 USD	Exchange Rate 29.100 6.8101 29.100 6.8101	Book Value (NTD) 1,169,704 $ 952,530 1,051,063 $ 871,021	Effect on Effect on Other Extent of Profit or Comprehensive Variation (Loss) Income(Loss) 1% 11,697 $ - $ 1% 9,525 - 1% 10,511) ($ - $ 1% 8,710) ( - SensitivityAnalysis

v. Total exchange gain including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the three-month and ninemonth periods ended September 30, 2021 and 2020 amounted to $2,679, $1,537, $3,577 and $5,879, 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 nine-month periods ended September 30, 2021 and 2020 would have increased/decreased by $6,844 and $4,808, 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 $12,269 and $4,554, 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 nine-month periods ended September 30, 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 September 30, 2021, December 31, 2020, and September 30, 2020, the provision matrix is as follows:

Up to 90 days pastdue	91 to180 days pastdue	181 to 360 days pastdue	Up to 361 days	Total 1,731,430 $ 204 $ Total
0.01%~0.03% 1,731,430 $ 204 $ Up to 90 days pastdue	15%~20% - $ - $ 91 to 180 days pastdue	30%~40% - $ - $ 181 to 360 days pastdue	100% - $ - $ Up to 361 days
0.02%~0.03% 1,278,063 $ 266 $ Up to 90 days pastdue	15%~20% - $ - $ 91 to 180 days pastdue	30%~40% - $ - $ 181 to 360 days pastdue	100% - $ - $ Up to 361 days	1,278,063 $ 266 $ Total
0.02%~0.03% 1,047,585 $ 220 $	15%~20% - $ - $	30%~40% - $ - $	100% - $ - $	1,047,585 $ 220 $

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

At January 1 Reversal of impairment loss Effect of foreign exchange At September 30 At January 1 Reversal of impairment loss Write-offs Effect of foreign exchange At September 30
			Contract assets
			Contract assets
		- $ - - - - $

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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 the following undrawn borrowing facilities:

0 Fixed rate: Expiring within one year Expiring beyond one year	September30,2021 2,338,746 $ - 2,338,746 $	December31,2020 2,814,256 $ 950,000 3,764,256 $	September30,2020
			2,674,766 $ 1,200,000
			3,874,766 $

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.
September 30, 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 2,510,000 $ 399,939 1,747,256 607,376 10,805 -	Over 1year
		- $ - - - 114,091 22,903

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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 September 30, 2020 Non-derivative financial liabilities: Short-term borrowings Accounts payable Other payables Lease liabilities Guarantee deposits received	Lessthan 1year 2,330,000 $ 299,798 1,296,475 485,953 10,443 250,000 - Lessthan 1year 2,730,000 $ 1,013,430 548,621 8,316 -	Over 1year
		- $ - - - 111,661 - 26,480 Over 1year
		- $ - - 107,901 30,532

(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.

~57~

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:

September 30, 2021		Level 1		Level 2			Level 3			Total
Assets
Recurring fair value
measurements
Financial assets at fair
value through profit
or loss
Unlisted stocks	$	-	$	-		$	68,441		$	68,441
Financial assets at fair
value through other
comprehensive income
Unlisted stocks		-		-			122,693			122,693
	$	-	$	-		$	191,134		$	191,134
December 31, 2020		Level 1		Level 2		Level3				Total
Assets
Recurring fair value
measurements
Financial assets at fair
value through profit
or loss
Structured deposits	$	-	$	-	$		349,664	$		349,664
Unlisted stocks		-		-			48,229			48,229
Financial assets at fair
value through other
comprehensive income
Unlisted stocks		-		-			43,130			43,130
	$	-	$	-	$		441,023	$		441,023

~58~

September 30, 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 - $ - - $	Level3 48,076 $ 45,544 93,620 $	Total
				48,076 $ 45,544
				93,620 $

(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 nine-month periods ended September 30, 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 nine-month periods ended September 30, 2021 and 2020:

		2021		2020
At January 1	$	441,023	$	90,800
Purchases in the period		238,100		-
Gains recognised in profit or loss		27,931		7,920
Gains (losses) recognised in other comprehensive		1,013	(	440)
Sold in the period	(	509,288)		-
Proceeds from capital reduction in the period	(	3,056)	(	4,364)
Effect of exchange rate changes	(	4,589)	(	296)
At September 30	$	191,134	$	93,620

~59~

G. For the nine-month periods ended September 30, 2021 and 2020, there was no transfer of Level 3.
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:

value measurement:
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 September 30,2021	Valuation technique	Significant unobservable input	Relationship of inputs to fair value
	$ 68,441 122,693	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

~60~

Financial assets at fair value through profit or loss Structured deposit Unlisted shares 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
	349,664 $ 48,229 43,130 Fair value at September 30,2020	Depends on individual contract Market comparable companies Net asset value Valuation technique	Depends on individual contract Price to earnings ratio multiple, price to book ratio multiple,discount for lack of marketability, control premium Not applicable Significant unobservableinput	Depends on individual contract The higher the multiple and control premium, the higher the fair value Not applicable Relationship of inputs to fairvalue
	48,076 $ 45,544	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

~61~

- ’ (4) The impact of the COVID 19 pandemic to the Group s operation

In response to the third-level epidemic prevention alert of COVID-19 implemented in May, 2021, the Group has adjusted the work style of employees, strengthened disinfection and control of personnel entry and exit measures for operating entities in Taiwan. The Group assessed that the COVID-19 pandemic had no significant impact to its overall operating activities and financial statements as of September 30, 2021.

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.

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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.

(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 nine-month period ended September 30, 2021

No. Table 1	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during nine-month period the September 30, 2021	Balance at September 30, 2021	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason term financing	Allowance for doubtful accounts	Coll	ateral	Limit on loans granted to a singleparty Expressed in th (Except as othe	Ceiling on total loans granted ousands of NTD rwise indicated)
													Item	Value
1	Altek Semiconductor (Cayman) Co., Ltd.	Altek Semiconductor Corporation	Other receivables- related party	Yes	142,675 $	139,250 $	- $	0%	Reason for short-term financing	- $	Operational need	- $	Promissory note	139,250 $	1,087,778 $	1,087,778 $

Note 1: The ”Procedure 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)

September 30, 2021

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Securitiesheld by	Marketable securities	Relationship with the securitiesissuer	General ledgeraccount		As ofSeptember30,2021	As ofSeptember30,2021
				Numberofshares	Bookvalue	Ownership (%)	Fairvalue
Altek Corporation " Altek (Kunshan) Co., Ltd. Altek EMS (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) Aimore Acoustics Incorporation	The Comyany is director of the investee None None The Comyany is director of the investee	Financial assets at fair value through profit or loss - non-current Financial assets measured at fair value through other comprehensive income - non-current Financial assets measured at fair value through other comprehensive income - non-current Financial assets measured at fair value through other comprehensive income - non-current	762,876 2 N/A N/A	68,441 $ - 36,808 85,885	14.55% 0.00% (Note 1) (Note 2)	68,441 $ - 36,808 85,885

Note 1: 1% of CPEC Huachuang Private Equity (Kunshan) Enterprise (Limited Partnership)’s capital contribution. Note 2: 12.5% of Aimore Acoustics Incorporations’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 nine-month period ended September 30, 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 Medical Holding (Cayman) Co., Ltd. Taiwan Branch Altek (Kunshan) Co., Ltd.	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 Purchases	3,068,491 $ 5,144,623 1,336,904 373,104 311,132	90% 100% 100% 100% 6%	Net 120 days Net 75 days " " "	Approximately the same price with third parties " " " "	Note " " " "	1,217,279) ($ 1,415,606) ( 323,092) ( 99,542) ( -	94% 100% 99% 100% 0%

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

September 30, 2021

Table 4 Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30, 2021	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date Allowance for doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)	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 International Trading Co., Ltd.	Parent company The same ultimate parent company The same ultimate parent company	1,217,279 $ 323,092 1,415,606	3.91 4.71 5.10	- $ - -	N/A N/A N/A	322,179 $ 196,927 558,529	- $ - -

Table 4

Altek Corporation and subsidiaries

Table 5

Significant inter-company transactions during the reporting periods

For the nine-month period ended September 30, 2021

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 Medical 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)	Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Purchases Accounts payable Purchases Accounts payable Purchases Purchases Accounts payable	3,068,491 $ 1,217,279 5,144,623 1,415,606 18,562 19,538 12,007 1,336,904 323,092 373,104 99,542 311,132 12,537 13,779	Net 120 days " Net 75 days " Net 120 days " Net 75 days " " " " " " "	45% 8% 76% 9% 0% 0% 0% 20% 2% 6% 1% 5% 0% 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 nine-month period ended September 30, 2021

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares he	ld as at September	30,2021	Net profit (loss) of the investee for the nine-month period ended September 30,2021	Investment income(loss) recognised by the Company for the nine-month period ended September 30,2021	Footnote
				Balance as at September 30, 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 Investment Corporation Altek Semiconductor (Cayman) Co., Ltd. Altek Medical Holding (Cayman) Co., Ltd. Altek Medical 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 Medical Holding (Cayman) Co. ,Ltd. Ptek Corporation Altek Semiconductor Corporation Altek Biotechnology Corporation Altek Medical (HongKong) Limited	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 Republic of China HongKong	Investment Sale of optical optical instruments Investment Investment Design service Investment Investment Intercompany transactions Investment and general business operations Product development and design Research design and sales of ASIC Research and development, manufacture and sales of medical electronic equipments Investment	2,882,512 $ 2,869 415,376 100,000 102,481 171,200 368,901 278,500 311,398 3,000 350,000 115,376 33,420	2,882,512 $ 2,869 415,376 100,000 102,481 171,200 311,920 278,500 415,376 - 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 45,063,684 300,000 35,000,000 10,100,000 N/A	100 100 100 100 100 50 100 100 82.18 100 100 100 100	8,430,211 $ 10,451 1,010,021 99,868 58,786 581,020 83,477 235,599 662,747 2,996 326,023 494,486 33,127	212,882 $ 350 134,202 53) ( 994 68,484 20,975 12,496) ( 157,636 4) ( 74,497 37,505 170) (	210,188 $ 350 134,202 53) ( 994 34,437 20,975 12,496) ( 134,182 4) ( 37,248 30,886 170) (	Note 1 Note 2 Note 3 Note 2 Note 2

Note 1: 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 counterparty transactions between subsidiaries. Note 2: Altek Biotechnology Holding (Cayman) Co., Ltd. changed its name to Altek Medical Holding (Cayman) Co., Ltd. Since June 8, 2021. Note 3: Ptek Corporation changed its Chinese name on August 11, 2021.

Table 6

Altek Corporation and subsidiaries

Information on investments in Mainland China

Table 7

For the nine-month period ended September 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in MainlandChina	Main business activities	Paid-in capital	Investment method `（`Note 1`）`	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 nine-month period ended September30,2021	Accumulated amount of remittance from Taiwan toMainland China as of September30,2021	Net profit (loss) of investee for the nine-month period endedSeptember30,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2021 (Note 4)	Accumulated amount of investment income remitted back to Taiwan as of September30,2021 Book value of investments in Mainland China as of September30,2021
					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. Altek Medical (Shanghai) Limited Altek Medical (Kunshan) Limited Note 1: Investment method (1)Directly invest in	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 Sales of medical electronic equipment Manufacture and sale of medical electronic equipment s are classified into the following th a company in Mainland China.	1,381,360 $ 139,250 236,725 384,330 389,900 41,775 27,850 25,766 ree categories; fill i	2 2 2 2 2 2 2 2 n the number o	1,253,250 $ - $ - $ 252,962 - - 236,725 - - 384,330 - - 311,920 58,485 - - - - - - - - - - f category each case belongs to:		1,253,250 $ 252,962 236,735 384,330 370,405 - - -	162,104 $ 11,046 4,590 1,562 27,970 6,504) ( 170) ( 12) (	100 100 100 100 75 50 82.18 82.18	162,104 $ 11,046 4,590 1,562 20,977 3,252) ( 140) ( 10) (	4,349,635 $ - $ 782,984 - 308,785 - 150,235 - 83,474 - 109,017 - 27,558 - 25,753 -

(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 reviewed by the R.O.C. parent company’s independent auditors.

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

Companyname	Accumulated amount of remittance from Taiwan to MainlandChina as ofSeptember30,2021	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	$2,497,672	$2,800,369	$5,087,580

Table 7

Altek Corporation and subsidiaries Information of major shareholders September 30, 2021

Table 8

Name of major shareholders	Shares	Shares
	Number of shares held	Holding percentage
Yitsang International Co., Ltd.	14,360,100	5.14%

Table 8

AI assistant

Altek — Interim / Quarterly Report 2021

52290_rns_2021-11-16_e92a4c56-29c6-433c-9cd3-e5a0a1b01b98.pdf

ALTEK CORPORATION AND SUBSIDIARIES

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of review

Basis for qualified conclusion

Qualified Conclusion

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 (Expressed in thousands of New Taiwan dollars, except earnings per share) (UNAUDITED)

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

ALTEK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

ALTEK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

ALTEK CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NINE-MONTH PERIODS ENDED SEPTEMBER 30, 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

the Group

(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

(3) Basis of consolidation

(4) Employee benefits

Pension-Defined benefit plans

(5) Income tax

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

(4) Financial assets at amortised cost

(5) Accounts receivable

(6) Inventories

(7) Property, plant and equipment

－ (8) Leasing arrangements lessee

E. The information on profit and loss accounts relating to lease contracts is as follows:

(9) Investment property

(10) Intangible assets

(11) Short-term borrowings

(14) Pensions

(15) Share-based payments

(16) Provisions

(17) Share capital

B. Treasury shares

(18) Capital surplus

(19) Retained earnings

(20) Other equity items

(21) Operating revenue

A. Disaggregation of revenue from contracts with customers

(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

(31) Supplemental cash flow information

B. Financing activities with no cash flow effects ：

7. RELATED PARTY TRANSACTIONS

(3) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT SUBSEQUENT EVENT

12. OTHERS

(1) Capital management

(2) Financial instruments

A. Financial instruments by category

Altek Interim / Quarterly Report 2021

`－` (8) Leasing arrangements lessee

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