AmTRAN Technology Co., Ltd. — Regulatory Filings 2021

Nov 11, 2021

AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2021 AND 2020

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Stockholders of Amtran Technology Co., Ltd.

Opinion

We have audited the accompanying consolidated balance sheets of Amtran Technology Co., Ltd. and its subsidiaries (the “Group”) as at December 31, 2021 and 2020, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant in the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports of other independent auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group’s 2021 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Group’s 2021 consolidated financial statements are stated as follows:

Allowance for inventory valuation losses

Description

Refer to Note 4(14) for accounting policies on inventory valuation, Note 5(2) for the uncertainty of accounting estimates and assumptions applied on inventory valuation, and Note 6(5) for details of inventory. As at December 31, 2021, the balances of inventory and allowance for inventory valuation losses were NT$3,057,948 thousand and NT$141,269 thousand, respectively.

The Group is primarily engaged in manufacturing and sales of 3C electronic products. Due to rapid technology innovations, short lifespan of electronic products and fluctuations in market prices, there is a higher risk of inventory losses due from market value decline. The Group recognises inventories at the lower of cost and net realisable value, and identifies the net realisable value of separately identified inventories using the item by item approach in determining the lower of cost and net realisable value and corroborating against supporting documents those inventory items separately identified as obsolete and damaged in recognising valuation losses.

As the net realisable value used in the valuation of obsolete and damaged inventories usually involves subjective judgement and high degree of uncertainty, and the amount of inventories and allowance for inventory valuation losses are material to the financial statements, we considered the allowance for inventory valuation losses a key audit matter.

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How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

• A. Assessed the reasonableness and consistent application of provision policies and procedures on allowance for inventory valuation losses based on the understanding of the Group’s business and industrial nature;

• B. Obtained valuation statement of net realisable value of inventory, understood the calculation logic, verified relevant accounting records and selected samples from the data sources of net realisable value; and

• C. Obtained the details of obsolete and damaged inventories which were separately identified by management, examined relevant documents, verified accounting records in comparing the allowance for inventory valuation losses of prior period, and assessed the reasonableness of allowance for inventory valuation losses.

Measurement and disclosure of fair value of unlisted stock investment without active market

Description

Refer to Note 4(7) for accounting policies on unlisted stock investment without active market, Note 5(2) for the uncertainty of accounting estimates and assumptions applied on the measurement of fair value, and Notes 6(2)(24) and 12(4) for details and relevant disclosures on fair value of financial instruments. Unlisted stock investments without active market are recognised as financial assets at fair value through profit or loss, and any changes in the fair value of these financial assets are recognised in profit or loss. Management measures fair value using the market comparable companies. The key assumption for this valuation technique is to calculate based on the latest information of comparative company. Any changes in judgement and estimates would have an impact on the measurement of fair value.

As the aforementioned fair value measurement is subject to management’s judgement and involves many assumptions, there is a high degree of uncertainty in accounting estimates and any change in estimates may have an impact on the measurement result which may be material to the financial statements. Thus, we identified the measurement and disclosure of fair value of unlisted stock investment without active market a key audit matter.

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How our audit addressed the matter

We used the appraiser’s work in the assessment of measurement method used by management and the reasonableness of assumptions on the above key audit matter, and we performed the following procedures:

• A. Understood and assessed the related policies and valuation procedures on the measurement and disclosure of fair value of unlisted stock investment without active market, to determine whether the measurement method used is commonly adopted in the industry and environment and considered appropriate;

• B. Assessed the reasonableness of comparative company chosen by management, including the similarity between the comparative company and the company, examined related documents, and compared with other comparative targets in the market;

• C. Examined the inputs and the formula of valuation model and ascertained whether the significant unobservable input had reflected the assumption that would be used when market participants price similar assets or liabilities, and reviewed information and documents in respect of the relevance and the reliability of data source.

Other matter – Reference to the audits of other auditors

As described in Note 6(7), we did not audit the financial statements of certain investments accounted for under the equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts and information disclosed in Note 13 included in respect of these associates, is based solely on the reports of the other auditors. The balance of these investments accounted for under the equity method amounted to NT$427,681 thousand and NT$403,585 thousand as at December 31, 2021 and 2020, respectively, and the comprehensive income recognised from associates and joint ventures accounted for under the equity method amounted to NT$37,594 thousand and NT$22,095 thousand for the years then ended, respectively.

Other matter – Parent company only financial statements

We have audited and expressed an unmodified opinion with other matter paragraph on the parent company only financial statements of Amtran Technology Co., Ltd. as at and for the years ended December 31, 2021 and 2020.

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Responsibilities of management and those charged with governance for the consolidated financial statements

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

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

Those charged with governance, including audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the generally accepted auditing standards in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk

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of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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

PricewaterhouseCoopers, Taiwan March 18, 2022

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

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

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AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(3) 6(1) 6(4) 7 6(5) 6(6) 6(7) 6(8) and 8 6(9) 6(10) 6(11) 6(27) 8	December 31, 2021 AMOUNT % $ 4,219,895 16 8,991,181 34 1,839 - 99,736 - 5,267,184 20 140,588 - 108,173 - 2,916,679 11 231,865 1 21,977,140 82 549,329 2 2,658,798 10 412,119 1 459,537 2 40,506 - 490,383 2 156,491 1 4,767,163 18 $ 26,744,303 100	December 31, 2020	December 31, 2020
		AMOUNT $ 4,219,895 8,991,181 1,839 99,736 5,267,184 140,588 108,173 2,916,679 231,865 21,977,140 549,329 2,658,798 412,119 459,537 40,506 490,383 156,491 4,767,163 $ 26,744,303	AMOUNT $ 3,753,802 3,710,918 1,853 151,148 3,696,382 75,127 79,556 2,598,914 212,092 14,279,792 522,398 2,801,582 444,467 465,203 34,933 488,567 71,249 4,828,399 $ 19,108,191	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1120 Current financial assets at fair value through other comprehensive income 1136 Current financial assets at amortised cost 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 130X Inventory 1410 Prepayments 11XX Total current assets Non-current assets 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property - net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets				20 20 - 1 19 - - 14 1
				75
				3 15 2 2 - 3 -
				25
				100

(Continued)

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AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December 31, 2021 December 31, 2020 Notes AMOUNT % AMOUNT % 6(12) $ 1,103,960 4 $ 430,000 2 6(21) 433 - 72,293 - 7 5,276,390 20 4,100,963 21 6(13) 1,384,149 5 1,066,004 6 37,883 - 7,929 - 6(16) 136,227 1 114,530 1 29,215 - 29,683 - 6(14) and 7 197,626 1 140,132 1 8,165,883 31 5,961,534 31 6(14) 5,902 - 60,189 - 6(27) 1,579,480 6 404,292 2 25,093 ( 1) 48,275 - 6(15) 83,696 1 97,285 1 1,694,171 6 610,041 3 9,860,054 37 6,571,575 34 6(17) 7,600,000 28 8,093,620 42 6(18) 2,293,509 8 2,293,633 12 6(19) 1,576,622 6 1,522,235 8 278,089 1 167,521 1 5,289,679 20 543,879 3 6(20) ( 342,483) ( 1) ( 278,087) ( 1 ) 16,695,416 62 12,342,801 65 6(20) 188,833 1 193,815 1 16,884,249 63 12,536,616 66 9 11 $ 26,744,303 100 $ 19,108,191 100

Current liabilities 2100 Short-term borrowings 2130 Current contract liabilities 2170 Accounts payable 2200 Other payables 2230 Current income tax liabilities 2250 Provisions for liabilities - current 2280 Current lease liabilities 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of parent Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Commitments and Contingent Liabilities Subsequent Events 3X2X Total liabilities and equity

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

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AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2021 AND 2020

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

Items

Year ended December 31 2021 2020 Notes AMOUNT % AMOUNT % 6(21) and 7 $ 22,231,918 100 $ 16,747,887 100 6(5)(26) and 7 ( 20,411,691) ( 92) ( 15,410,170) ( 92) 1,820,227 8 1,337,717 8 6(26) ( 661,738) ( 3) ( 660,063) ( 4) ( 881,421) ( 4) ( 765,721) ( 5) ( 606,226) ( 3) ( 468,905) ( 3) ( 2,149,385) ( 10) ( 1,894,689) ( 12) ( 329,158) ( 2) ( 556,972) ( 4) 6(22) 14,751 - 35,567 - 6(23) and 7 253,263 1 264,955 2 6(24) 6,368,428 29 1,014,941 6 6(25) ( 10,040) - ( 11,723) - 6(7) 13,813 - ( 6,034) - 6,640,215 30 1,297,706 8 6,311,057 28 740,734 4 6(27) ( 1,288,678) ( 6) ( 171,164) ( 1) $ 5,022,379 22 $ 569,570 3

4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6900 Operating loss Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit/(loss) of associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year

(Continued)

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AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2021 AND 2020

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

Year ended December 31

Items	2021 Notes AMOUNT 6(15) $ 1,905 6(20) 26,433 ( 381) 27,957 6(20) ( 95,166) 6(20) 183 ( 94,983) ($ 67,026) $ 4,955,353 $ 5,016,637 5,742 $ 5,022,379 $ 4,952,759 2,594 $ 4,955,353 6(28) $ 6(28) $	2021	2020 % AMOUNT - ($ 10,536) - 10,889 - 2,107 - 2,460 - ( 42,269) - 5,094 - ( 37,175) - ($ 34,715) 22 $ 534,855 22 $ 553,163 - 16,407 22 $ 569,570 22 $ 524,144 - 10,711 22 $ 534,855 6.30 $ 6.15 $	2020
					%
Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8311 Actuarial gains (losses) on defined benefit plans 8320 Share of other comprehensive income of associates and joint ventures accounted for using equity method 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8370 Share of other comprehensive income of associates and joint ventures accounted for using equity method 8360 Other comprehensive loss that will be reclassified to profit or loss 8300 Total comprehensive loss for the year 8500 Total comprehensive income for the year Profit attributable to: 8610 Owners of the parent 8620 Non-controlling interest Comprehensive income attributable to: 8710 Owners of the parent 8720 Non-controlling interest Earnings per share (in dollars) 9750 Basic earnings per share 9850 Diluted earnings per share					- - -
					-
					- -
					-
					-
					3
					3 -
					3
					3 -
					3
					0.68
		$		$	0.68

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

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AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent

Year ended December 31, 2020 Balance at January 1, 2020 Profit for the year ended December 31, 2020 Other comprehensive income (loss) for the year ended December 31, 2020 Total comprehensive income (loss) for the year ended December 31, 2020 Adjustment in non-controlling interest Proceeds from disposal of financial assets at fair value through other comprehensive income transferred to retained earnings Appropriations of 2019 net income Legal reserve Special reserve Balance at December 31, 2020 Year ended December 31, 2021 Balance at January 1, 2021 Profit for the year ended December 31, 2021 Other comprehensive income (loss) for the year ended December 31, 2021 Total comprehensive income (loss) for the year ended December 31, 2021 Changes in investments accounted for using equity method Cash reduction Appropriations of 2020 net income Legal reserve Special reserve Cash dividends Adjustment in non-controlling interest Balance at December 31, 2021	Notes		Share capital - common stock	Total capital surplus, additional paid-in capital				Retained Earnings			Other EquityInterest	Other EquityInterest		Total		Non-controlling interest		Total equity
						Legal reserve		Special reserve		Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(20) 6(20) 6(19) 6(20) 6(17) 6(19)	$ 8,093,620 - - - - - - - $ 8,093,620 $ 8,093,620 - - - - ( 493,620 ) - - - - $ 7,600,000		$ 2,293,633 - - - - - - - $ 2,293,633 $ 2,293,633 - - - ( 124 ) - - - - - $ 2,293,509		$ 1,521,851 - - - - - 384 - $ 1,522,235 $ 1,522,235 - - - - - 54,387 - - - $ 1,576,622		$ 99,040 - - - - - - 68,481 $ 167,521 $ 167,521 - - - - - - 110,568 - - $ 278,089	$ 68,865 553,163 ( 8,429 ) 544,734 - ( 855 ) ( 384 ) ( 68,481 ) $ 543,879 $ 543,879 5,016,637 1,524 5,018,161 ( 1,006 ) - ( 54,387 ) ( 110,568 ) ( 106,400 ) - $ 5,289,679		($ 200,980 ) - ( 31,479 ) ( 31,479 ) - - - - ($ 232,459 ) ($ 232,459 ) - ( 91,835 ) ( 91,835 ) - - - - - - ($ 324,294 )	($ 57,372 ) - 10,889 10,889 - 855 - - ($ 45,628 ) ($ 45,628 ) - 26,433 26,433 1,006 - - - - - ($ 18,189 )	$ 11,818,657 553,163 ( 29,019 ) 524,144 - - - - $ 12,342,801 $ 12,342,801 5,016,637 ( 63,878 ) 4,952,759 ( 124 ) ( 493,620 ) - - ( 106,400 ) - $ 16,695,416		$ 212,057 16,407 ( 5,696 ) 10,711 ( 28,953 ) - - - $ 193,815 $ 193,815 5,742 ( 3,148 ) 2,594 - - - - - ( 7,576 ) $ 188,833		$ 12,030,714 569,570 ( 34,715 ) 534,855 ( 28,953 ) - - - $ 12,536,616 $ 12,536,616 5,022,379 ( 67,026 ) 4,955,353 ( 124 ) ( 493,620 ) - - ( 106,400 ) ( 7,576 ) $ 16,884,249

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

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AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation (including investment property) Depreciation on right-of-use assets Amortisation Expected credit impairment loss Net gain on financial assets and liabilities at fair value through profit or loss Gain of disposal investment Share of (profit) loss of associates and joint ventures accounted for using equity method Loss on disposal of property, plant and equipment Interest expense Interest income Dividend income Changes in operating assets and liabilities Changes in operating assets Financial assets mandatorily measured at fair value through profit or loss Accounts receivable Accounts receivable-related parties Other receivables Inventories Prepayments Changes in operating liabilities Contract liabilities Accounts payable Accounts payable-related parties Other payables Receipts in advance Other current liabilities Provisions for liabilities Accrued pension liabilities Cash inflow (outflow) generated from operations Interest received Dividends received Interest paid Income tax paid Net cash flows from (used in) operating activities

Year ended December 31 Notes 2021 2020 $ 6,311,057 $ 740,734 6(26) 433,117 462,728 6(26) 40,517 39,487 6(26) 24,422 15,019 108 3,774 6(24) ( 6,084,752 ) ( 942,712 ) ( 16,050 ) - 6(7) ( 13,813 ) 6,034 6(24) 525 208 6(25) 10,040 11,723 6(22) ( 14,751 ) ( 35,567 ) 6(23) ( 72,782 ) ( 13,057 ) 804,488 ( 118,173 ) ( 1,570,904 ) ( 1,491,363 ) ( 65,461 ) 489,445 ( 81,347 ) 43,684 ( 317,765 ) ( 637,834 ) ( 28,619 ) 73,880 ( 71,860 ) ( 22,726 ) 1,175,402 659,531 25 ( 141 ) 317,953 289,573 ( 28,776 ) 10,783 72,437 5,631 21,697 ( 5,513 ) ( 12,399 ) 999 832,509 ( 413,853 ) 20,155 36,025 72,782 13,057 ( 9,848 ) ( 15,379 ) ( 29,268 ) ( 10,581 ) 886,330 ( 390,731 )

(Continued)

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AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from capital reduction of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of investments accounted for using equity method Disposal of investments using the equity method Acquisition of property, plant and equipment (including investment property) Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Acquisition of intangible assets Acquisition of financial assets at amortised cost Principal repayment of financial assets at maturity measured at amortized cost Decrease (increase) in other non-current assets Increase in restricted assets Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Proceeds from long-term borrowings Payment of long-term borrowings Increase in refundable deposits Payments of lease liabilities Cash dividends paid Cash dividends paid to non-controlling interest Cash reduction Change in non-controlling interest Net cash flows (used in) from financing activities Cumulative translation adjustments Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2021 2020 $ - $ 270 - 775 - ( 29,610 ) 6(7) 29,425 - 6(29) ( 379,145 ) ( 434,431 ) 2,292 246 9 ( 520 ) 6(11) ( 30,406 ) ( 14,081 ) ( 135,536 ) ( 368,709 ) 186,948 293,682 1,479 ( 44,289 ) ( 42,786 ) - ( 367,720 ) ( 596,667 ) 6(30) 673,960 330,000 6(30) 5,940 10,561 6(30) ( 45,450 ) ( 22,088 ) 6(30) 445 1,469 6(30) ( 29,845 ) ( 31,389 ) ( 106,400 ) - ( 7,576 ) ( 10,777 ) 6(18) ( 493,620 ) - - ( 18,176 ) ( 2,546 ) 259,600 ( 49,971 ) ( 16,050 ) 466,093 ( 743,848 ) 6(1) 3,753,802 4,497,650 6(1) $ 4,219,895 $ 3,753,802

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

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AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

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

1. HISTORY AND ORGANISATION

Amtran Technology Co., Ltd. (the “Company”) was incorporated in August 1994 and started its operations in January 1995. The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the design, manufacture and sales of monitors, digital TV, computers and computer peripherals. As of December 31, 2021, the Group had 4,097employees.

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

These consolidated financial statements were authorised for issuance by the Board of Directors on March 18, 2022.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

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

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

The above standards and interpretations have no significant impact to the Group’s financial condition

and financial performance based on the Group’s assessment.

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

the Group

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

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Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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New Standards,Interpretations andAmendments	Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IAS 16, ‘Property, plant and equipment:	January 1, 2022
proceeds before intended use’
Amendments to IAS 37, ‘Onerous contracts—	January 1, 2022
cost of fulfilling a contract’
Annual improvements to IFRS Standards 2018–2020	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:
	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	StandardsBoard
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, 'Insurance contracts'	January 1, 2023
Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information'
Amendments to IAS 1, ‘Classification of liabilities as current or non-	January 1, 2023
current’
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities	January 1, 2023
arising from a single transaction’

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 applied in the preparation of these consolidated financial statements

are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

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(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(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 measured 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 IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment 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:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

• (b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

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• (d) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

• B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Main Business Activities	Ownership (%)	Ownership (%)	Description
			December31,
			2021	2020
Amtran Technology Co., Ltd. 〞 〞 〞 〞 〞 〞 〞 〞 〞 ABOUND PROFITS LIMITED WUSH Inc. Amtran Electronic Co., Ltd.	Asev Display Labs Zwei-mau Investment Co., Ltd. WUSH Inc. Amtran Logistics, Inc. Spyglass Tesla, LLC. Abound Profits Limited H&P Venture Capital Investment Co., Ltd. Amtran Video Corporation Suzhou Raken Technology Ltd. (Raken) Amtran Vietnam Technology Company Limited (AVTC) Amtran Electronic Co., Ltd. WUSH Transport Inc. Suzhou Raken Technology Ltd. (Raken)	Sales of computer software and hardware, and provision of maintenance services General investments General trading Sales of LCD TV and aftersale service General investments General investments Venture capital Sales of LCD TV and aftersale service Design, manufacture of LCD monitors, provision of maintenance services Manufacturing and sales of LCDs Design, manufacture of LCD monitors, provision of maintenance services Logistics services Design, manufacture of LCD monitors, provision of maintenance services	100.00 100.00 82.00 100.00 43.75 100.00 38.71 100.00 37.95 100.00 100.00 100.00 62.05	100.00 100.00 82.00 100.00 43.75 100.00 38.71 10.00 37.95 100.00 100.00 100.00 62.05	Note Note

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• Note: The Company has control over SPYGLASS and H&P Venture Capital Investment Co., Ltd. and were included in the consolidated financial statements.

• 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 December 31, 2021 and 2020, the non-controlling interest amounted to $188,833 and $193,815, respectively. The information on non-controlling interest and respective subsidiaries is as follows:

as follows:
Name of subsidiary	Principal place of business	Amount Ownership (%) Amount Ownership (%) Description $ 112,780 56.25 $ 122,166 56.25 31,346 61.29 40,207 61.29 Ownership (%) December 31, 2020 Ownership (%) December 31,2021
		Amount
SPYGLASS H&P VENTURE CAPITAL INVESTMENT CORPORATION	USA TAIWAN	$ 112,780 31,346

Summarised financial information of the subsidiaries:

Balance sheets

Balance sheets
			SPYGLASS
		December31,2021			December 31, 2020
Current assets	$		20,984		$	17,322
Non-current assets			202,043			215,032
Current liabilities	(		20,827)	(		3,978)
Non-current liabilities	(		1,702)	(		28,969)
Total net assets	$		200,498		$	199,407
			H&P VENTURE CAPITAL
			INVESTMENTCO.,LTD.
		December31,2021			December31,2020
Current assets	$		51,251		$	65,798
Current liabilities	(		106)	(		196)
Total net assets	$		51,145		$	65,602

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Statements of comprehensive income

Statements of comprehensive income
		SPYGLASS
		Years ended	December31,
		2021		2020
Revenue	$	-	$	-
Profit before income tax		11,111		19,782
Tax expense		-		-
Profit for the year (Total comprehensive
income for the year)	$	11,111	$	19,782
Comprehensive income attributable to
non-controlling interest	$	6,250	$	11,127
Dividends paid to non-controlling
interest	$	2,486	$	6,792
		H&P VENTURE CAPITAL
		INVESTMENTCO.,		LTD.
		Years ended	December31,
		2021		2020
Revenue	$	-	$	-
Loss before income tax	(	6,148)		8,337
Tax expense	(	6)		-
(Loss) profit for the year	(	6,154)		8,337
Other comprehensive income (loss), net of tax		-		-
Total comprehensive (loss) income for the year	($	6,154)	$	8,337
Comprehensive (loss) income attributable to
non-controlling interest	($	3,772)	$	5,111
Dividends paid to non-controlling interest	$	5,090	$	3,985

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Statements of cash flows

Statements of cash flows
		SPYGLASS
		Years ended	December31,
		2021		2020
Net cash provided by operating activities	$	17,372	$	19,773
Net cash used in financing activities	(	9,985)	(	12,403)
Effect of exchange rates on cash and cash
equivalents	(	4,306)	(	9,910)
Increase (decrease) in cash and cash
equivalents		3,081	(	2,540)
Cash and cash equivalents, beginning of year		16,844		19,384
Cash and cash equivalents, end of year	$	19,925	$	16,844
		H&P VENTURE CAPITAL
		INVESTMENT CO.,		LTD.
		Years ended	December 31,
		2021		2020
Net cash (used in) provided by operating	($	3,936)	$	7,037
activities
Net cash provided by investing activities		17,352		12,799
Net cash used in financing activities	(	8,304)	(	36,158)
Increase (decrease) in cash and cash
equivalents		5,112	(	16,322)
Cash and cash equivalents, beginning of year		1,394		17,716
Cash and cash equivalents, end of year	$	6,506	$	1,394

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company’s functional and the Group’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

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• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within other gains or losses.

• B. Translation of foreign operations

• (a) The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • iii. All resulting exchange differences are recognised in other comprehensive income.

• (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale.

• (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation.

(5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

• (b) Assets held mainly for trading purposes;

• (c) Assets that are expected to be realised within twelve months from the balance sheet date;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than twelve months after the balance sheet date.

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• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

  • (a) Liabilities that are expected to be paid off within the normal operating cycle;

  • (b) Liabilities arising mainly from trading activities;

  • (c) Liabilities that are to be paid off within twelve months from the balance sheet date;

  • (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

• (6) Cash equivalents

• Cash equivalents refer to short-term highly liquid investments that are readily convertible to known amount of cash and subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitment in operations are classified as cash equivalents.

• (7) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

• (8) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value: The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

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(9) Financial assets at amortised cost

• A. Financial assets at amortised cost are those that meet all of the following criteria:

• (a) The objective of the Group’s business model is achieved by collecting contractual cash flows.

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

• (10) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

• (11) Impairment of financial assets

• For financial assets at amortised cost including accounts receivable that have a significant financing component, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets

The Group derecognises a financial asset when one of the following conditions is met:

• A. The contractual rights to receive cash flows from the financial asset expire.

• B. The contractual rights to receive cash flows from the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.

• C. The contractual rights to receive cash flows from the financial asset have been transferred and the Group has not retained control of the financial asset.

– (13) Leasing arrangements (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

• (14) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

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(15) Investments accounted for using equity method / associates

• A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

• B. The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognises the Group’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

• D. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• F. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

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(16) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change.

The estimated useful lives of property, plant and equipment are as follows:

Buildings	3 ~ 50 years
Machinery and equipment	3 ~ 10 years
Mold equipment	2 years
Transportation equipment	3 ~ 6 years
Furniture and fixtures	3 ~ 10 years
Other equipment	3 ~ 5 years

(17) Leasing arrangements (lessee) - right-of-use assets / lease liabilities

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

• (a) Fixed payments, less any lease incentives receivable;

• (b) Variable lease payments that depend on an index or a rate;

• (c) Amounts expected to be payable by the lessee under residual value guarantees;

• (d) The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option; and

~27~

• (e) Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

• (a) The amount of the initial measurement of lease liability;

• (b) Any lease payments made at or before the commencement date;

• (c) Any initial direct costs incurred by the lessee; and

• (d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(18) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 15 ~ 50 years.

(19) Intangible assets

• A. Trademarks and patents

Trademarks and patents are stated at historical cost and amortised on a straight-line basis over their estimated useful life of 10 years.

• B. Computer software

• Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 1 ~ 3 years.

• C. Other intangible assets, mainly industrial network project, are stated at cost and amortised on a straight-line basis over its estimated useful life of 3 years.

(20) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

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(21) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

(22) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(23) Derecognition of financial liabilities

• Financial liability is derecognised when the obligation under the liability specified in the contract is discharged or cancelled or expires.

(24) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(25) Non-hedging and embedded derivatives

• A. Non-hedging derivatives are initially recognised at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognised in profit or loss.

• B. Under the financial assets, the hybrid contracts embedded with derivatives are initially recognised as financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income and financial assets at amortised cost based on the contract terms.

• C. Under the non-financial assets, whether the hybrid contracts embedded with derivatives are accounted for separately at initial recognition is based on whether the economic characteristics and risks of an embedded derivative are closely related in the host contract. When they are closely related, the entire hybrid instrument is accounted for by its nature in accordance with the applicable standard. When they are not closely related, the derivative is accounted for differently from the host contract as derivative while the host contract is accounted for by its nature in accordance with the applicable standard. Alternatively, the entire hybrid instrument is designated as financial liabilities at fair value through profit or loss upon initial recognition.

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(26) Provisions

Provisions (warranties) are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as interest expense. Provisions are not recognised for future operating losses.

• (27) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

• (b) Defined benefit plans

  • i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. Every year, the actuary calculated defined benefit obligation by using projected unit credit method, and the discount rate was based on the market yield rate of government bond on the balance sheet date.

  • ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

  • iii. Past service costs are recognised immediately in profit or loss.

• C. Termination benefits

• Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Group’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Group recognises expense as it can no longer withdraw an offer of termination benefits or it recognises relating restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

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• D. Employees’ compensation and directors’ and supervisors’ remuneration

  • Employees’ compensation and directors’ and supervisors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

• (28) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

• B. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

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(29) Share capital

Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effect, is included in equity attributable to the Company’s equity holders.

(30) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved by the Company’s shareholders. Cash dividends are recorded as liabilities.

(31) Revenue recognition

Sales of goods:

• A. The Group manufactures and sells monitor, digital television, computer, peripheral equipment of computer and other related products. Sales are recognised when control of the products has transferred, being when the products are delivered to the wholesaler, the wholesaler has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the wholesaler’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the wholesaler, and either the wholesaler has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

• B. Sales revenue was based on the contract price net of estimated business tax, sales return, volume discounts and allowance. The furniture is often sold with volume discounts based on aggregate sales over a period. Accumulated experience is used to estimate and provide for the volume discounts and sales discounts and allowances, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognised for expected volume discounts and sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period.

• C. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

(32) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate.

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(33) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group’s chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group’s accounting policies

• Investment property

The Group uses part of the property for its own use and part to earn rentals or for capital appreciation. When the portions cannot be sold separately, the property is classified as investment property only if the own-use portion accounts for less than 50% of the property.

(2) Critical accounting estimates and assumptions

• A. Revenue recognition

The Group estimates sales discounts and returns provisions based on historical results and other known factors. Provisions for such liabilities are recognised as a deduction item to sales revenues when the sales are recognised. The Group reassesses the reasonableness of estimates of discounts and returns periodically.

As of December 31, 2021, the provision for sales discounts and returns recognised by the Group was $161,877.

• B. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

As of December 31, 2021, information on the carrying amount of inventories as of December 31, 2021 is provided in Note 6(5).

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• C. Financial assets—fair value measurement of unlisted stocks without active market The fair value of unlisted stocks (including beneficiary certificate) held by the Group that are not traded in an active market is determined considering those companies’ recent fund raising activities and technical development status, fair value assessment of other companies of the same type, market conditions and other economic indicators existing at balance sheet date. Any changes in these judgements and estimates will impact the fair value measurement of these unlisted stocks. Please refer to Note 12(4) for the financial instruments fair value information.

• As of December 31, 2021, the carrying amount of unlisted stocks without active market was $664,284.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand Checking account and demand deposits Time deposits	December31,2021 December 31, 2020 2,402 $ 2,327 $ 3,277,194 2,413,466 940,299 1,338,009 4,219,895 $ 3,753,802 $

• A. The Group associates 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 interest rate range as of December 31, 2021 and 2020 was 0.18%~1.80% and 0.41%~1.88%, respectively.

• C. The Group has no cash pledged to others. The time deposits whose maturities exceed 3 months amounted to $99,736 and $151,148 as of December 31, 2021 and 2020, respectively and were listed as “Current financial assets at amortised cost”.

(2) Current financial assets / liabilities at fair value through profit or loss

Items Current items: Financial assets mandatorily measured at fair value through profit or loss Equity securities Debt securities Beneficiary certificates Derivative instruments Hybrid instruments	December31,2021 8,285,409 $ 20,000 321,683 104,545 259,544 8,991,181 $	December31,2020
		3,299,707 $ 20,000 199,665 111,112 80,434
		3,710,918 $

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• 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:
Financial assets mandatorily measured at fair value through profit or loss Equity securities Debt securities Beneficiary certificates Hybrid instruments Derivative instruments	2021 2020 5,916,390 $ 886,314 $ 600 600 128,888 16,732 960 2,160) ( 37,914 41,226 6,084,752 $ 942,712 $ Years endedDecember31,
	$

• B. Financial assets designated as at fair value through profit or loss upon initial recognition are hybrid instruments.

• C. For the year ended December 31, 2021, the Group disposed shares of VIZIO HOLDING CORP. for a consideration of $608,162,resulting to a gain on valuation of financial assets at fair value through profit or loss amounting to $461,178.

• In addition, the fair value of shares of VIZIO HOLDING CORP. held by the Group, after taking into consideration the quoted market prices, amounted to $7,573,334 as of December 31, 2021. Unrealised gain on valuation of financial assets at fair value through profit or loss amounted to $5,650,354 for the year ended December 31, 2021. However, the market price has significant fluctuations after the balance sheet date. Please refer to Note 11 for details.

• D. The Group entered into contracts relating to derivative financial assets which were not accounted for under hedge accounting. The information is listed below:

	December31,2021	December31,2021	December31,2020
Derivative
financial	Contract Amount	Contract	Contract Amount Contract
instruments	(Notional Principal)	Period	(Notional Principal) Period
Current items:
Exchange rate	USD (Sell) 460 million 2021.11.08~2022.02.22		USD (Sell) 355 million 2020.12.02~2021.01.29
swap contracts
Forward foreign	USD (Buy) 511 million 2021.07.05~2022.07.05		USD (Sell) 19 million 2020.11.16~2021.03.18
exchange			USD (Buy) 539 million 2020.06.30~2021.07.06

(a) Exchange rate swap contracts

The Group entered into exchange rate swap contracts with financial institutions to swap floating interest rate for fixed interest rate, to earn the exchange rate spread, and to hedge cash flow risk of the floating-rate liability positions. However, these exchange rate swap contracts are not accounted for under hedge accounting.

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• (b) Forward foreign exchange contracts

The Group entered into forward foreign exchange contracts to sell NTD and buy USD to earn the exchange rate spread, and to hedge exchange rate risk of import and export proceeds. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

• D. As of December 31, 2021 and 2020, the Group has no financial assets at fair value through profit or loss pledged to others.

• E. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(3).

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

Items		December	31, 2021		December	31,2020
Current items:
Equity securities
Unlisted stocks		$	13,029		$	13,132
Valuation adjustment	(		11,190)	(		11,279)
		$	1,839		$	1,853

• A. As of December 31, 2021 and 2020, the Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

• B. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(3).

• C. For the year ended December 31, 2020, the Group disposed Digitimes Co., Ltd. and Liyu Technology Co., Ltd. in the amount of $ $775, and the loss from disposal of Liyu Technology Co., Ltd. amounting to $855 was reclassified to retained earnings.

(4) Accounts receivable

Accounts receivable
		December	31,2021		December	31,2020
Accounts receivable		$	5,277,150		$	3,706,246
Less: Loss allowance	(		9,966)	(		9,864)
		$	5,267,184		$	3,696,382

• A. The Group did not hold any collateral for accounts receivable.

• B. As of December 31, 2021 and 2020, accounts receivable was all from contracts with customers. As of January 1, 2020, the balance of receivables from contracts with customers amounted to $2,144,883.

• C. Information on accounts receivable relating to credit risk is provided in Note 12(3).

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(5) Inventories

Inventories
Raw materials Work in process Finished goods Raw materials Work in process Finished goods	Allowance for Cost valuation loss 1,803,045 $ 79,002) ($ 150,789 6,791) ( 1,104,114 55,476) ( 3,057,948 $ 141,269) ($ December31,2021 Allowance for Cost valuation loss 1,558,668 $ 44,500) ($ 196,801 3,132) ( 961,929 70,852) ( 2,717,398 $ 118,484) ($ December31,2020	Bookvalue
		1,724,043 $ 143,998 1,048,638 2,916,679 $
		Bookvalue
		1,514,168 $ 193,669 891,077
		2,598,914 $

Expenses and losses incurred on inventories for the year:

Cost of inventories sold Loss on inventory price decline (gain on reversal) Loss on scrapping inventory Other operating costs (Note 1)	2021 2020 20,311,714 $ 15,272,985 $ 37,073 45,317) ( 13,632 - 49,272 182,502 20,411,691 $ 15,410,170 $ Years ended December 31,

Note 1: Mainly represents adjustment of the difference between maintenance costs, royalty expenses and overhead.

Note 2: The increase in net realisable value was caused by the Group’s recognition of impairment loss on inventories when the related inventory items were scrapped or sold in 2020.

(6) Prepayments

Prepayments
Prepayments to suppliers Net input VAT Prepaid income tax Prepaid electricity fee Other prepaid expenses	December31,2021 93,698 $ 106,477 2,525 4,009 25,156 231,865 $	December31,2020
		82,327 $ 78,497 13,856 3,276 34,136
		212,092 $

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(7) Investments accounted for using equity method

Associates: Hua Jung Co., Ltd. (Hua Jung) BMA Ventures Capital Investment Corporation Heroic Faith Medical Science Co., Ltd. (Heroic Faith)	December31,2021 427,681 $ 67,386 54,262 549,329 $	December31,2020 403,585 $ 64,551 54,262 522,398 $

• A. In June 2020 , the Board of Directors of the Group resolved to invest in Heroic Faith Medical Science Co., Ltd. in June 2020 amounting to US$1,000 thousand. The investment accounted for using equity method is primarily engaged in manufacturing of medical devices.

• B. Associates

• (a) The basic information of the associate that is material to the Group is as follows:

Company name Hua Jung	Principal place of business Taiwan	2021 2020 31.60% 32.57% December 31, Shareholdingratio	Nature of relationship Investee accounted for using equity method	Method of measurement Equity method

• (b) The summarised financial information of the associate that is material to the Group is as follows:

• Balance sheet

follows: Balance sheet
			Hua	Jung
		December31,2021		December31,2020
Current assets		$	1,528,579	$	1,520,152
Non-current assets			761,832		719,146
Current liabilities	(		487,078)	(	535,456)
Non-current liabilities	(		20,983)	(	38,413)
Total net assets		$	1,782,350	$	1,665,429
Share in associate's net assets		$	562,466	$	541,585
Accumulated impairment	(		134,785)	(	138,000)
Carrying amount of the associate		$	427,681	$	403,585

~38~

Statement of comprehensive income

Statement of comprehensive income
		Hua Jung
		Years ended December31,
		2021		2020
Revenue	$	1,059,274	$	846,645
Profit for the year from continuing
operations	$	34,575	$	20,831
Other comprehensive income, net of tax		82,346		47,526
Total comprehensive income	$	116,921	$	68,357

• (c) The Group’s material associate, Hua Jung Corporation, has quoted market prices. As of December 31, 2021 and 2020, the fair value was $807,720 and $742,516, respectively.

• (d) The information of the abovementioned associates disclosed by the Group is based on the audit reports of other auditors.

• (e) The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarised below:

As of December 31, 2021 and 2020, the carrying amount of the Group’s individually immaterial associates amounted to $121,648 and $118,813, respectively.

==> picture [206 x 26] intentionally omitted <==

Profit (loss) for the year from continuing operations

(Total comprehensive income (loss)) $ 11,745 ($ 53,387)

• C. For the years ended December 31, 2021 and 2020, the share of loss of associates and joint ventures accounted for using the equity method was $13,813 and $6,034, respectively.

• D. The Group is the single largest shareholder of Hua Jung Co., Ltd. with a 31.60% equity interest. The Group has no ability to acquire over 50% of the seats in the Board of Directors of Hua Jung Co., Ltd. and does not assign personnel to sit on the company's key management, which indicates that the Group has no current ability to direct the relevant activities of Hua Jung Co., Ltd. In addition, as the Group and Hua Jung belong to different industries, there were no significant transactions between the two companies. Thus, the Group has no control, but only has significant influence, over the investee.

• E. The Group sold 1,676 thousand shares of Hua Jung Co., Ltd. in the third quarter of 2021. The disposal proceeds and gain on disposal were $29,425 and $16,050, respectively. After the disposal, the shareholding ratio of the Group was 31.60%.

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(8) Property, plant and equipment

					Buildings				Transportation	Transportation			Office			Other	Unfinished	Unfinished
			Land	and structures			Machinery			equipment			equipment			equipment	construction				Total
At January 1, 2021
Cost		$	528,102	$	2,271,765		$	637,539	$	55,951		$	181,362		$	831,557	$	177,255		$	4,683,531
Accumulated depreciation			-	(	798,229)	(		225,201)	(	42,346)	(		134,479)	(		681,694)		-	(		1,881,949)
		$	528,102	$	1,473,536		$	412,338	$	13,605		$	46,883		$	149,863	$	177,255		$	2,801,582
2021
Opening net book amount		$	528,102	$	1,473,536		$	412,338	$	13,605		$	46,883		$	149,863	$	177,255		$	2,801,582
Additions			86,637		95,759			25,732		1,865			26,773			87,782		8,240			332,788
Net disposal			-		-	(		23)		-	(		392)	(		2,317)		-	(		2,732)
Reclassification			-		172,717			687		-			-			862	(	174,266)			-
Depreciation charge			-	(	149,761)	(		93,679)	(	6,743)	(		18,411)	(		156,444)		-	(		425,038)
Net exchange differences	(		4,743)	(	28,217)	(		10,113)	(	200)	(		457)	(		1,083)	(	2,989)	(		47,802)
Closing net book amount		$	609,996	$	1,564,034		$	334,942	$	8,527		$	54,396		$	78,663	$	8,240		$	2,658,798
At December 31, 2021
Cost		$	609,996	$	3,056,474		$	821,112	$	97,525		$	377,530		$	1,029,327	$	8,240		$	6,000,204
Accumulated depreciation			-	(	1,492,440)	(		486,170)	(	88,998)	(		323,134)	(		950,664)		-	(		3,341,406)
		$	609,996	$	1,564,034		$	334,942	$	8,527		$	54,396		$	78,663	$	8,240		$	2,658,798

~40~

Buildings Transportation Office Other Land and structures Machinery equipment equipment equipment At January 1, 2020 Cost 536,997 $ 2,218,843 $ 517,226 $ 55,257 $ 169,819 $ 657,537 $ Accumulated depreciation - 652,350) ( 115,372) ( 35,971) ( 119,385) ( 491,875) ( 536,997 $ 1,566,493 $ 401,854 $ 19,286 $ 50,434 $ 165,662 $ 2020 Opening net book amount $ 536,997 $ 1,566,493 $ 401,854 $ 19,286 $ 50,434 $ 165,662 Additions - 49,637 128,664 2,132 17,745 171,218 Net disposal - - - 391) ( 3) ( 60) ( Depreciation charge - 133,035) ( 108,368) ( 7,173) ( 20,498) ( 185,972) ( Net exchange differences 8,895) ( 9,559) ( 9,812) ( 249) ( 795) ( 985) ( Closing net book amount 528,102 $ 1,473,536 $ 412,338 $ 13,605 $ 46,883 $ 149,863 $ At December 31, 2020 Cost 528,102 $ 2,271,765 $ 637,539 $ 55,951 $ 181,362 $ 831,557 $ Accumulated depreciation - 798,229) ( 225,201) ( 42,346) ( 134,479) ( 681,694) ( 528,102 $ 1,473,536 $ 412,338 $ 13,605 $ 46,883 $ 149,863 $

Unfinished construction Total - $ 4,155,679 $ - 1,414,953) ( - $ 2,740,726 $ $ - 2,740,726 $ 177,255 546,651 - 454) ( - 455,046) ( - 30,295) ( 177,255 $ 2,801,582 $ 177,255 $ 4,683,531 $ - 1,881,949) ( 177,255 $ 2,801,582 $

Note 1: The Group’s buildings include building, parking space, air conditioner and decorations which are depreciated over 50 years, 35 years, and 15 years, respectively. Note 2: Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

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(9) Leasing arrangements-lessee

• A. The Group leases various assets including land use right, buildings and business vehicles. Rental contracts are typically made for periods of 1 to 50 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 parking spaces and warehouses.

• C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings Transportation equipment (business vehicles) Land Buildings Transportation equipment (business vehicles)	December 31, 2021 December 31, 2020 Carrying amount Carrying amount 363,506 $ 372,639 $ 46,377 71,828 2,236 - 412,119 $ 444,467 $ Years ended December 31,	December 31, 2020 Carrying amount 372,639 $ 71,828 -
		444,467 $
	2021 Depreciationcharge 10,937 $ 28,835 745 40,517 $	2020
		Depreciation charge
		10,804 $ 28,565 118
		39,487 $

• D. For the years ended December 31, 2021 and 2020, the additions to right-of-use assets were $8,697 and $11,001, respectively.

• E. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts	Years ended December31,	Years ended December31,
	2021 Depreciation charge 3,028 $ 8,288	2020
		Depreciation charge
		4,372 $ 9,962

• F. For the years ended December 31, 2021 and 2020, the Group’s total cash outflow for leases were $41,161 and $45,723, respectively.

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(10) Investment property

At January 1, 2021 Cost Accumulated depreciation 2021 Opening net book amount Additions Depreciation charge Closing net book amount At December 31, 2021 Cost Accumulated depreciation At January 1, 2020 Cost Accumulated depreciation 2020 Opening net book amount Additions Depreciation charge Closing net book amount At December 31, 2020 Cost Accumulated depreciation

Buildings Land and structures Total 328,134 $ 274,806 $ 602,940 $ - 137,737) ( 137,737) ( 328,134 $ 137,069 $ 465,203 $ 328,134 $ 137,069 $ 465,203 $ - 2,413 2,413 - 8,079) ( 8,079) ( 328,134 $ 131,403 $ 459,537 $ 328,134 $ 277,219 $ 605,353 $ - 145,816) ( 145,816) ( 328,134 $ 131,403 $ 459,537 $ Buildings Land and structures Total 328,134 $ 272,874 $ 601,008 $ - 130,053) ( 130,053) ( 328,134 $ 142,821 $ 470,955 $ 328,134 $ 142,821 $ 470,955 $ - 1,930 1,930 - 7,682) ( 7,682) ( 328,134 $ 137,069 $ 465,203 $ 328,134 $ 274,806 $ 602,940 $ - 137,737) ( 137,737) ( 328,134 $ 137,069 $ 465,203 $

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

~43~

Rental revenue from investment property Direct operating expenses arising from the investment property that generated rental income during the year	2021 2020 39,070 $ 39,057 $ 10,955 $ 11,521 $ Years endedDecember31,

• B. The fair values of the investment property held by the Group as at December 31, 2021 and 2020 were $1,315,381 and $980,459, respectively. The fair value on December 31, 2021 was valued by independent appraisers. Valuation of land was made using the comparative approach while the valuation of building was made using the weighted average of cost approach and income approach and were classified as level 3.

(11) Intangible assets

Intangible assets
			Trademarks			Software			Others				Total
At January 1, 2021
Cost		$	846		$	95,536		$	4,562			$	100,944
Accumulated amortisation	(		676)	(		61,136)	(		4,199)		(		66,011)
		$	170		$	34,400		$		363		$	34,933
2021
Opening net book amount		$	170		$	34,400		$		363		$	34,933
Additions - acquired
separately			-			30,406				-			30,406
Disposals			-	(		85)				-	(		85)
Amortisation charge	(		85)	(		24,230)	(			107)	(		24,422)
Net exchange differences			-	(		323)	(			3)	(		326)
Closing net book amount		$	85		$	40,168		$		253		$	40,506
At December 31, 2021
Cost		$	846		$	116,526		$	4,562			$	121,934
Accumulated amortisation	(		761)	(		76,358)	(		4,309)		(		81,428)
		$	85		$	40,168		$		253		$	40,506

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==> picture [466 x 396] intentionally omitted <==

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

Trademarks Software Others Total
At January 1, 2020
Cost $ 846 $ 82,679 $ 4,303 $ 87,828
Accumulated amortisation ( 594) ( 47,666) ( 4,113) ( 52,373)
$ 252 $ 35,013 $ 190 $ 35,455
2020
Opening net book amount $ 252 $ 35,013 $ 190 $ 35,455
Additions - acquired
separately - 13,815 266 14,081
Amortisation charge ( 82) ( 14,849) ( 88) ( 15,019)
Net exchange differences - 421 ( 5) 416
Closing net book amount $ 170 $ 34,400 $ 363 $ 34,933
At December 31, 2020
Cost $ 846 $ 95,536 $ 4,562 $ 100,944
Accumulated amortisation ( 676) ( 61,136) ( 4,199) ( 66,011)
$ 170 $ 34,400 $ 363 $ 34,933
Details of amortisation on intangible assets are as follows:
Years ended December 31,
2021 2020
Selling expenses $ 18 $ 57
Administrative expenses 19,374 10,078
Research and development expenses 5,030 4,884
$ 24,422 $ 15,019
----- End of picture text -----

(12) Short-term borrowings

Short-term borrowings
Type of Borrowings Bank borrowings Unsecured borrowings Type of Borrowings Bank borrowings Unsecured borrowings	December31,2021 1,130,960 $ December31,2020 430,000 $	Interest rate range 0.61%~0.86% Interestraterange 0.85%~0.96%	Collateral
			None Collateral
			None

Interest expense recognised in profit or loss amounted to $6,195 and $5,259 for the years ended December 31, 2021 and 2020, respectively.

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(13) Other accounts payable

	December31,2021	December31,2021	December31,2020	December31,2020
Accrued payroll and bonus	$	619,491	$	293,020
Accrued royalty payable		179,218		287,792
Accrued logistics maintenance fee
(including expendables)		52,539		55,003
Accrued taxes		136,344		86,956
Accrued labor costs		32,872		29,383
Others		363,685		313,850
	$	1,384,149	$	1,066,004

- (14) Long term borrowings

Borrowing period and Type of borrowings repayment term Long-term bank borrowings East West Bank 2017.3~2022.3 Payable in monthly installment Fountainhead SBF LLC 2020.7~2025.7 Less: Current portion (Shown as other current liabilites) Borrowing period and Type ofborrowings repayment term Long-term bank borrowings East West Bank 2017.3~2022.3 Payable in monthly installment Bank SinoPac 2016.5~2031.5 Payable in monthly installment CTBC Bank Corp. (USA) 2020.6~2025.6 Fountainhead SBF LLC 2020.7~2025.7 CTBC Bank Corp. (USA) 2020.8~2025.8 Less: Current portion (Shown as other current liabilites)	Interest rate 3.54% Note 2 Interest rate 3.54% 1.42% Note 2 Note 2 Note 2	Collateral December31,2021 Note 1 20,954 $ 5,902 26,856 20,954) ( 5,902 $ Collateral December31,2020 Note 1 31,170 $ Note 1 25,579 759 6,331 3,471 67,310 7,121) ( 60,189 $

Note 1: Please refer to Note 8 for details of collateral for aforementioned borrowings.

~46~

• Note 2: It is a plan of the U.S. government to subsidise small and medium enterprises for Covid-19. Its purpose is to subsidise enterprises in paying for labor costs. If the company meets the conditions set under the plan during the borrowing period, it will not have to repay the principal and interest. The plan also does not require any collateral. The condition is to maintain the number of employees of the company and maintain the salary level of the company’s full-time employees. If the number or the salary level of full-time employees declines, the loan reduction or exemption will be reduced, and the enterprises are liable for a loan interest rate up to 1% per annum.

• (15) Pensions

• A. (a) The Company has 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 Law. 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 1 month prior to retirement. The Company 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. Also, the Company would assess the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

  • (b) The amounts recognised in the balance sheet are as follows:

		December	31,2021		December	31,2020
Present value of defined benefit obligations		$	74,942		$	85,930
Fair value of plan assets	(		11,117)	(		8,182)
Net defined benefit liability
(Shown as other current liabilites)		$	63,825		$	77,748

~47~

(c) Movements in net defined benefit liabilities are as follows:

		Present value of	Present value of
		defined benefit			Fair value of			Net defined
			obligations		planassets		benefitliability
Year ended December 31, 2021
Balance at January 1		$	85,930	($	8,182)		$	77,748
Past service cost	(		967)		-	(		967)
Current service cost			580		-			580
Interest expense (income)			222	(	13)			209
			85,765	(	8,195)			77,570
Remeasurements:
Return on plan assets			-	(	258)	(		258)
(excluding amounts included in
interest income or expense)
Change in demographic
assumptions			84		-			84
Change in financial assumptions	(		2,512)		-	(		2,512)
Experience adjustments			781		-			781
	(		1,647)	(	258)	(		1,905)
Pension fund contribution			-	(	11,840)	(		11,840)
Paid pension	(		9,176)		9,176			-
Balance at December 31		$	74,942	($	11,117)	$		63,825

~48~

		Present value of	Present value of
			defined benefit		Fair value of		Net defined
			obligations		planassets	benefitliability
Year ended December 31, 2020
Balance at January 1		$	90,233	($	21,943)	$	68,290
Past service cost	(		83)		-	(	83)
Current service cost			558		-		558
Interest expense (income)			621	(	148)		473
			91,329	(	22,091)		69,238
Remeasurements:
Return on plan assets			-	(	680)	(	680)
(excluding amounts included in
interest income or expense)
Change in demographic
assumptions			5		-		5
Change in financial assumptions			2,992		-		2,992
Experience adjustments			8,219		-		8,219
			11,216	(	680)		10,536
Pension fund contribution			-	(	2,026)	(	2,026)
Paid pension	(		16,615)		16,615		-
Balance at December 31		85,930 $		($	8,182)	$	77,748

(d)The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after approval by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2021 and 2020 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

~49~

(e) The principal actuarial assumptions used:

	2021	2020
Discount rate	0.70%	0.30%
Future salary increases	2.00%	2.00%

Assumptions regarding future mortality experience are set based on the 5[th] Taiwan Standard Ordinary Experience Mortality Table for the years ended December 31, 2021 and 2020. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

Increase Decrease 0.25% 0.25% December 31, 2021 Effect on present value of defined benefit obligation December 31, 2020 Effect on present value of defined benefit obligation 1,889) ($ 1,964 $ Discountrate 1,480) ($ 1,535 $	Increase Decrease 0.25% 0.25% 1,926 $ ($ 1,863) Future salaryincreases 1,512 $ ($ 1,465)

The sensitivity analysis above was based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

• (f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2022 are $12,019.

• (g) As of December 31, 2021, the weighted average duration of that retirement plan is 8 years.

• B. (a) Effective July 1, 2005, the Company has 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 contributes monthly an amount based on not less than 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.

• (b) Zwei-Mau does not need to accrue pension costs as it does not have any employee.

• (c) SPYGLASS and ABOUND did not establish their pension plans and the local regulations do not require any pension plan.

~50~

• (d) ASEV, ALI, AVC and AVTC appropriate certain percentage of employees’ pension to their designated accounts with financial institutions in accordance with employees’ pension plan.

• (e) Raken and Amtran Electronic appropriate certain percentage of local employees’ salaries as pension fund in compliance with the regulations on elderly insurance system of People’s Republic of China (PRC.). The appropriation percentage is 16%. The pension fund is managed and organised by the government. The Group shall appropriate monthly and has no further obligation. At the beginning of 2020, due to the impact of the Covid-19 pandemic in China, the local government has suspended contributions for the pension insurance from February 2020 until December 2020.

• (f) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2021 and 2020 were $59,112 and $20,859, respectively.

• (16) Provisions

Provisions
			Years ended December31,
			2021			2020
At January 1		$	114,530		$	120,043
Additional provisions			123,377			136,936
Used during the year	(		101,680)	(		142,449)
At December 31		$	136,227		$	114,530
Analysis of total provisions:
		December 31, 2021			December31,2020
Current		$	136,227		$	114,530

The Group provides warranties on monitors and digital TV products sold. Provision for warranty is estimated based on historical warranty data of monitors and digital TV products. It is expected that provision for warranty will be used during the year.

• (17) Share capital

• A. As of December 31, 2021, the Company’s authorised capital was $12,000,000, consisting of 1.2 billion shares of ordinary stock (including 40 million shares reserved for employee stock options), and the paid-in capital was $7,600,000 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

• B. On May 3, 2021, the Board of directors proposed for a capital reduction amounting to $493,620 by retiring 49,362 thousand shares with a capital reduction ratio of 6.1%, or an equivalent of $0.61 (in dollars) per share, rounded to the nearest dollar. After the reduction, the Company’s paid-in capital would be $7,600,000, consisting of 760 million shares of ordinary stock with a par value of $10 (in dollars) per share. The capital reduction was approved by the shareholders at their meeting on July 29, by the Securities and Futures Bureau, Financial Supervisory Commission on September 13, 2021, effective on September 22, 2021. The registration of the capital reduction was completed on September 29, 2021.

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(18) Capital surplus

Pursuant to the R.O.C. Company Law, 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 Law requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

At January 1 Equity adjustment on investments accounted for using equity method At December 31 At January 1 (at December 31)	Sharepremium 1,672,150 - 1,672,150 $ Sharepremium 1,672,150 $	Treasury share transactions 605,091 - 605,091 $ Treasury share transactions 605,091 $	Changes in ownership interests in subsidiaries and associates 11,674 124) ( 11,550 $ 2021 Changes in ownership interests in subsidiaries and associates 11,674 $ 2020	Stock option 4,718 - 4,718 $ Stock option 4,718 $	Total 2,293,633 124) ( 2,293,509 $ Total 2,293,633 $

(19) Retained earnings

• A. Where the Company accrues profit in the half year, it should first be reserved to pay tax and offset against accumulated deficit, and appropriate 10% of which as legal reserve unless legal reserve amounts to the total authorised capital. In addition, special reserve that has been appropriated or reversed in accordance with related regulations along with the unappropriated retained earnings of the first half of the year can be proposed by Board of Directors for earnings appropriation of dividends. The proposal of appropriation should be approved by the shareholders if dividends would be distributed by issuing new shares; it should be resolved by the Board of Directors if dividends would be distributed in the form of cash. The dividends must not be less than 20% of distributable retained earnings of current year. The dividend can be appropriated in cash or shares and cash dividends must not be less than 20% of total dividends.

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• B. To accompany the growth and overall environment of the high-tech sector, the Company’s dividend policy is based on the earnings, financial structure and the future development. In addition, the dividend is distributed according to the appropriation of the earnings. Stock dividend shall be based on the proportion to the reserves.

• 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 distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• D. 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.

• E. The appropriations of earnings for 2020 and 2019 were resolved by the shareholders on July 29, 2021 and June 17, 2020, respectively. Details are summarised below. The remaining unappropriated earnings were all retained not distributed:

Years ended December 31,

Legal reserve appropriated Special reserve appropriated Cash dividends	Dividends per share Amount (indollars) 54,387 $ - $ 110,568 $ - $ 106,400 $ 0.13 $ 2020	2019	2019
	Amount 54,387 $ 110,568 $ 106,400 $	Amount 384 $ 68,481 $ - $	Dividends per share (indollars)
			- $
			- $
			- $

The aforementioned resolutions are identical to the resolutions passed during the Board of Directors’ meeting held on May 3, 2021 and March 24, 2020, respectively, and will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

• F. The appropriations of earnings for 2021 was resolved by the shareholders on March 18, 2022. Details are summarised below. The remaining unappropriated earnings were all retained not distributed:

~53~

		Yearended	December31	December31
		2021
				Divideneds
				per share
		Amount		(in dollors)
Legal reserve appropriated	$	501,716
Special reserve appropriated	$	64,395
Distribution of cash dividends	$	570,000	$	0.75
Distribution of stock dividends	$	380,000	$	0.50

G.For the information relating to employees’ compensation and directors’ and supervisors’ remuneration, please refer to Note 6(26).

• (20) Other equity and non controlling interest items

				2021
		Other	equity
				Gain or loss
		Currency		on unrealised			Non-controlling
		translation		valuation			interestitems
At January 1	($	232,459)	($	45,628)		$	193,815
Unrealised gains from
financial assets measured at
fair value through other
comprehensive income:
Revaluation-associates		-		26,433			-
Revaluation transferred to		-		1,006			-
retained earrings-gross
Currency translation differences:		-		-
-Group		-		-			-
-Associates	(	92,018)		-			-
-Non-controlling interest		183		-			-
Decrease in non-controlling							-
interest (Note)		-		-	(		3,148)
Net profit attributable to					(		7,576)
non-controlling interest		-		-			5,742
At December 31	($	324,294)	($	18,189)		$	188,833

~54~

		Other	2020 equity	2020 equity
				Gain or loss
		Currency		on unrealised		Non-controlling
		translation		valuation		interestitems
At January 1	($	200,980)	($	57,372)		212,057 $
Unrealised gains from
financial assets measured at
fair value through other
comprehensive income:
Revaluation-associates		-		10,889		-
Revaluation transferred to		-		855		-
retained earrings-gross
Currency translation differences:
-Group	(	36,573)		-		-
-Associates		5,094		-		-
-Non-controlling interest		-		-	(	5,696)
Decrease in non-controlling
interest (Note)		-		-	(	28,953)
Net profit attributable to
non-controlling interest		-		-		16,407
At December 31	($	232,459)	($	45,628)		193,815 $

~55~

Note: The consolidated entity distributed cash dividends, increased the capital by cash and decreased the capital by returning cash resulting to a decrease in non-controlling interest.

(21) Operating revenue

		Years ended	December 31,	December 31,
-		2021		2020
Revenue from contracts with customers	$	22,231,918	$	16,747,887

• A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services at a point in time in the following major product lines: digital television, display, stereo system and peripheral equipment.

following major product lines: digital television,	display, stereo system and peripheral equipme
Digital television Monitors Computer peripheral products Stereo system Others	Years ended December 31,
	2021 2020 11,391,613 $ 10,501,849 $ 6,026,322 2,946,005 3,261,455 1,975,908 311,225 208,852 1,241,303 1,115,273 22,231,918 $ 16,747,887 $

B. Contract liabilities

• (a) The Group has recognised the following revenue-related contract liabilities:

December 31, 2021 December 31, 2020 January 1, 2020

Contract liabilities: Contract liabilities-advance sales receipts $ 433 $ 72,293 $ 25,018

• (b) Revenue recognised that was included in the contract liability balance at the beginning of the

year

year
Revenue recognised that was included in the contract liability balance at the beginning of the year Contract liabilities-advance sales receipts	Years endedDecember31,
	2021 2020 72,293 $ 25,018 $

~56~

(22) Interest income

Interest income from bank deposits

Years ended	Years ended	December31,
2021		2020
$	14,751	35,567 $

(23) Other income

Rental revenue Government grants revenue Dividend income and other revenue	2021 2020 135,065 $ 132,882 $ 8,848 45,885 109,350 86,188 253,263 $ 264,955 $ Years ended December 31,

(24) Other gains and losses

Other gains and losses
			Years endedDecember31,
			2021		2020
Loss on disposal of property, plant and equipment	($		525)	208) ($
Gain on disposal of investment			16,050		-
Net currency exchange gain			285,488		90,280
Net gain on financial assets at fair value			6,084,752		942,712
through profit or loss
Other losses	(		17,337)	(	17,843)
		$	6,368,428		1,014,941 $

(25) Finance costs

Finance costs
Interest expense: Bank borrowings Others	Years ended December31,
	2021 6,827 $ 3,213 10,040 $	2020
		6,667 $ 5,056
		11,723 $

~57~

(26) Expenses by nature

Expenses by nature
Employee benefit expense Wages and salaries Labor and health insurance fees Pension costs Directors’ remunerations Other personnel expenses Depreciation and amortisation Depreciation charges on property, plant and equipment (including investment property) Amortisation charges on right-of-use assets Amortisation charges on intangible assets	2021 2020 1,346,107 $ 1,133,063 $ 121,236 77,336 58,934 21,807 100,770 32,650 112,856 90,764 1,739,903 $ 1,355,620 $ 433,117 462,728 40,517 39,487 24,422 15,019 498,056 $ 517,234 $ Years ended December31,
		462,728 39,487 15,019
		517,234 $

• A. According to the Articles of Incorporation of the Company, a ratio of profit of the current year distributable, after covering accumulated losses, shall be distributed as employees' compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 5% and not be higher than 25% for employees’ compensation and shall not be higher than 3% for directors’ and supervisors’ remuneration.

• B. For the years ended December 31, 2021 and 2020, employees’ compensation was $350,000 and $61,000, respectively; directors’ and supervisors’ remuneration was $100,000 and $24,000, respectively. The aforementioned amounts were recognised in salary expenses.

• C. In accordance with the Articles of Incorporation, employees’ compensation and directors’ and supervisors’ remuneration are accrued based on certain percentage of estimated profit for the current year. For the years ended December 31, 2021 and 2020, employees’ compensation was accrued based on 5% of distribution profit for the year, and directors’ and supervisors’ remuneration were accrued based on 1% and 3% of distribution profit for the year. Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~58~

(27) Income tax

A. Income tax expense

(a) Components of income tax expense:

Current tax: Current tax on profits for the year Tax on undistributed surplus earnings Prior year income tax under (over) estimation Total current tax Deferred tax: Origination and reversal of temporary differences Exchange rate effects Total deferred tax Income tax expense	2021 2020 105,672 $ 20,314 $ 9,857 - 158 2,042) ( 115,687 18,272 1,172,336 154,310 655 1,418) ( 1,172,991 152,892 1,288,678 $ 171,164 $ Years endedDecember31,

• (b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

follows:
		Years endedDecember31,
0		2021		2020
Remeasurement of defined benefit
obligations	$	381	($	2,107)
B. Reconciliation between income tax expense and accounting profit
		Years endedDecember31,
0		2021		2020
Tax calculated based on profit before tax and	$	1,296,158	$	150,514
statutory tax rate
Effect from items adjusted in accordance with
tax regulation	(	33,362)		11,576
Change in assessment of realisation of deferred
tax assets	(	7,637)		12,534
Tax losses are unrecognised as deferred tax assets		22,849		-
Prior year income tax under (over) estimation		158	(	2,042)
Tax on undistributed surplus earnings		9,857		-
Effect from investment tax credits				-
Effect of exchange rate		655	(	1,418)
Others		-		-
Tax expense	$	1,288,678	$	171,164

~59~

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

									2021
								Recognised
									in other
				Recognised in			comprehensive			Translation
		January1		profit or loss					income	differences			December31
－Deferred tax assets
Temporary differences:
Allowance for inventory		$	6,094		$	1,146		$	-	$	19		$	7,259
price decline
Unrealised loss on long-
term investments			1,332	(		1,332)			-		-			-
Provision for after sale
service			20,517			587			-		-			21,104
Unrealised sales discount			24,128			22,789			-		-			46,917
Unrealised royalty expense			54,612	(		18,768)			-		-			35,844
Unrealised loss on inter-
affiliate accounts			24,516	(		1,172)			-	(	193)			23,151
Impairment loss on
financial assets			-			-			-		-			-
Loss carryforward			292,189			12,711			-		-			304,900
Unrealised foreign
exchange loss			-			-			-		-			-
Others			65,179	(		13,090)	(		381)	(	500)			51,208
			488,567			2,871	(		381)	(	674)			490,383
－Deferred tax liabilities:
Temporary differences:
Unrealised gain on
valuation of financial
assets	(		333,737)	(		1,169,479)			-		-	(		1,503,216)
Unrealised gain on long-
term investments			-			-			-		-			-
Others	(		70,555)	(		5,728)			-		19	(		76,264)
	(		404,292)	(		1,175,207)			-		19	(		1,579,480)
		$	84,275	1,172,336) ($			($		381)	($	655)	($		1,089,097)

~60~

2020

						2020	2020
						Recognised
							in other
				Recognised in		comprehensive		Translation
		January1		profit or loss			income	differences			December31
－Deferred tax assets
Temporary differences:
Allowance for inventory		$	33,392	($	27,149)	$	-	($	149)		$	6,094
price decline
Unrealised loss on long-
term investments			-		1,332		-		-			1,332
Provision for after sale
service			20,954	(	437)		-		-			20,517
Unrealised sales discount			25,106	(	978)		-		-			24,128
Unrealised royalty expense			33,079		21,533		-		-			54,612
Unrealised loss on inter-
affiliate accounts			26,521	(	2,403)		-		398			24,516
Impairment loss on
financial assets			112,908	(	112,908)		-		-			-
Loss carryforward			216,843		75,346		-		-			292,189
Unrealised foreign
exchange loss			28,880	(	28,880)		-		-			-
Others			44,728		17,438		2,107		906			65,179
			542,411	(	57,106)		2,107		1,155			488,567
－Deferred tax liabilities:
Temporary differences:
Unrealised gain on
valuation of financial
assets	(		252,301)	(	81,436)		-		-	(		333,737)
Unrealised gain on long-
term investments	(		2,675)		2,675		-		-			-
Others	(		52,443)	(	18,443)		-		331	(		70,555)
	(		307,419)	(	97,204)		-		331	(		404,292)
		234,992 $		($	154,310)	$	2,107	$	1,486		$	84,275

~61~

• D. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

December 31, 2020

==> picture [446 x 196] intentionally omitted <==

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

Year incurred Amount filed/assessed Unused amount Deferred tax assets Expiry year
2017 $ 1,003,498 $ 882,053 $ - 2027
2018 217,494 190,975 - 2028
2020 451,474 451,474 - 2030
2021 114,243 114,243 114,243 2031
$ 1,786,709 $ 1,638,745 $ 114,243
December 31, 2020
Year incurred Amount filed/assessed Unused amount Deferred tax assets Expiry year
2017 $ 1,003,498 $ 891,987 $ - 2027
2018 217,494 217,494 - 2028
-
2020 351,462 351,462 2030
-
$ 1,572,454 $ 1,460,943 $
----- End of picture text -----

• E. The Company has not recognised taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2021 and 2020, temporary differences that were not recognised as deferred tax liabilities amounted to $979,295 and $1,022,946, respectively.

• F. The income tax returns of Amtran Technology Co., Ltd., WUSH Inc., WUSH Transport Inc., Zwei-Mau Investment Co., Ltd., and H&P Venture Capital Investment Co., Ltd. in the Group through 2019 and ZHONG XUAN Investment Co., Ltd. in the Group through 2020 have been assessed and approved by the Tax Authority.

~62~

(28) 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 Employees’ compensation 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 Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares		December31,2021
	Amount aftertax 5,016,637 $ 5,016,637 $ - 5,016,637 $	Weighted average number of ordinary shares outstanding (sharesinthousands) 795,702 795,702 19,886 815,588 December31,2020	Earnings per share (indollars)
			6.30 $
			6.15 $
	Amount after tax 553,163 $ 553,163 $ - 553,163 $	Weighted average number of ordinary shares outstanding (shares in thousands) 809,362 809,362 4,880 814,242	Earnings per share (in dollars)
			0.68 $
			0.68 $

~63~

(29) Supplemental cash flow information

Investing activities with partial cash payments

Supplemental cash flow information Investing activities with partial cash payments
				Years ended December 31,
	0			2021			2020
Purchase of property, plant and equipment			$	335,201		$	548,581
Less: Opening balance of prepayments for
equipment		(		4,505)	(		118,655)
Add: Ending balance of prepayments for
equipment				48,449			4,505
Cash paid during the year			$	379,145		$	434,431

(30) Changes in liabilities from financing activities

At January 1, 2021 Changes in cash flow from financing activities Increase in lease liabilities Impact of changes in foreign exchange rate At December 31, 2021 At January 1, 2020 Changes in cash flow from financing activities Increase in lease liability Impact of changes in foreign exchange rate At December 31, 2020	Long-term borrowings lease liabilities Short-term (including (including borrowings current portion) current portion) 430,000 $ 67,310 $ 77,958 $ 673,960 39,510) ( 29,845) ( - - 8,098 - 944) ( 1,903) ( 1,103,960 $ 26,856 $ 54,308 $ Long-term borrowings Lease liabilities Short-term (including (incluling borrowings current portion) current portion) 100,000 $ 80,878 $ 98,061 $ 330,000 11,527) ( 31,389) ( - - 15,373 - 2,041) ( 4,087) ( 430,000 $ 67,310 $ 77,958 $	Liabilities Guarantee from deposits financing received activities-gross 19,539 $ 594,807 $ 445 605,050 - 8,098 113) ( 2,960) ( 19,871 $ 1,204,995 $ Liabilities Guarantee from deposits financing received activities-gross 18,048 $ 296,987 $ 1,469 288,553 - 15,373 22 6,106) ( 19,539 $ 594,807 $

(31) Seasonality of operations

Due to seasonal nature of the US retail segment, higher revenues and operating profits are usually expected in the second half of the year than the first six months.

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7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties Relationship with the Group VIZIO INC. (VIZIO) Note WUSH NET Inc (WUSH NET) Other related party Kuangtung Hua Jung Corporation (Hua Jung) Associate Heroic Faith Medical Science Co., Ltd. (Heroic Faith) "

Note: The Group terminated the partnership with VIZIO in the fourth quarter of 2020 and settled the transaction-related payments and obligations in the same quarter, so it is not a related party of the Group since January 1, 2021.

(2) Significant transactions and balances with related parties

A. Operating revenue:

Operating revenue:
Sales of goods: Other related parties: －VIZIO －WUSH NET Associates	Years ended December 31,
	2021 2020 - $ 581,005 $ 397,147 226,093 1,660 2,953 398,807 $ 810,051 $

The sales prices are based on contractual terms. No similar transaction can be compared with. The credit terms are 60~90 days after monthly billings for the related parties. For third parties, credit terms are 30~90 days after monthly billings.

• B. Purchases of goods:

terms are 30~90 days after monthly billings. Purchases of goods:
Purchases of goods: Associates Other related party	Years ended December31,
	2021 54 $ - 54 $	2020
		57 $ 56
		113 $

The purchase prices are based on contractual terms, and payments are made by wire transfer. The payment terms are 55~120 days after monthly billings for the related parties and 30~120 days after monthly billings for third parties.

• C. Receivables from related parties:

Other related parties: WUSH NET	December31,2021 140,588 $	December31,2020
		75,127 $

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As of December 31, 2021 and 2020, the receivables from related parties were not past due and the counterparties have optimal credit quality.

• D. Payables to related parties:

efund liability (shown as other current liabilities) Accounts payable: Associates Other related party -VIZIO	December 31, 2021 December 31, 2020 28 $ 3 $ December31,2021 December 31, 2020 - $ 72,709 $

• E. Refund liability (shown as other current liabilities)

The refund liability arose from the related provision for sales returns and discounts.

• F. Rental income

ental income
Location Other related parties 39 Tesla, Irvine, CA 92618	Period 2007.2.1 ~2022.1.31	Years ended December 31,
		2021 - $	2020
			20,720 $

The rent is negotiated between the two parties and is payable monthly.

(3) Key management compensation

The rent is negotiated between the two parties and Key management compensation	is payable monthly.	is payable monthly.
Short-term employee benefits Post-employment benefits	2021 2020 44,844 $ 50,868 $ 4,287 5,848 49,131 $ 56,716 $ Years endedDecember31,
		50,868 $ 5,848
		56,716 $

8. PLEDGED ASSETS

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

Pledged asset Land Building and structures Bank deposits (shown as other current assets)	Bookvalue December31,2021 244,512 $ 110,932 42,786 398,230 $	Bookvalue December31,2020 Purpose 248,271 $ Long-term guarantee for b i 118,504 " - Deposit for provisional attachment of civil action 366,775 $

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9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(a) Contingencies

The supplier, Suzhou Hanraysun Optoelectronics Technology Co., Ltd., of the Group’s subsidiary, Suzhou Raken Technology Ltd. (‘Suzhou Raken’), filed a civil lawsuit against Suzhou Raken with the Suzhou People’s Court in July 2021. Suzhou Hanraysun Optoelectronics Technology Co., Ltd. claimed that Suzhou Raken shall pay the disputed amount under the purchase contract from 2017 to 2021 approximately amounting to $42,786 thousand. Suzhou Raken has appointed a lawyer to handle the lawsuit. As of December 31, 2021, Suzhou People’s Court issued an order in the fourth quarter of 2021 for a provisional attachment on Suzhou Raken’s demand deposits amounting to $42,786 thousand (shown as other non-current assets) according to the abovementioned disputed amount.

• (b) Commitments

As of December 31, 2021, the Group had capital expenditures contracted for at the balance sheet date but not yet incurred for property, plant and equipment in the amount of $19,905.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

• (a) The fair value of the shares of stock of VIZIO Holding Corp., US-listed financial asset at fair value through profit or loss held by the Group, was US$19.43 (in dollars) per share as of December 31, 2021. The market price fluctuated significantly due to the instability of the macroeconomic circumstances and the world situation during the year ended December 31, 2021. As of March 18, 2022, the Group held 14,081 thousand shares of the stock and its fair value has decreased to US$9.8 (in dollars) per share.

• (b) Please refer to Note 6(19) for the appropriation of 2021 earnings proposed by the Board of Directors on March 18, 2022.

12. OTHERS

• (1) Due to the spread of the Covid-19, the operations of the Group have been impacted since January 2020. Because of this pandemic, the Group received government grants for salary and working capital amounting to $45,885 (shown as other income) for the year ended December 31, 2020. In addition, as the Group has resumed all operations since the second quarter of the year and the operating capacity of the subsidiaries of the Group was effectively allocated, the pandemic has no significant impact on the Group’s overall operations.

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(2) Capital management

The Company plans the needs for future operating capital, research and development expenses and dividend distribution based on the Group’s current operating characteristics and future development, taking into account changes in the external environment so as to safeguard the Company’s ability to continue as a going concern, provide returns for shareholders and maintain an optimal capital structure to enhance shareholders’ value in the long-term. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, issue new shares, return cash to shareholders or repurchase its own share.

(3) Financial instruments

A. Financial instruments by category

==> picture [445 x 277] intentionally omitted <==

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

December 31, 2021 December 31, 2020
Financial assets
Financial assets at fair value through profit
or loss
Financial assets mandatorily measured at fair
value through profit or loss $ 8,991,181 $ 3,710,918
Financial assets at fair value through other
comprehensive income
Designation of equity instruments $ 1,839 $ 1,853
Financial assets at amortised cost $ 9,856,696 $ 7,777,144
December 31, 2021 December 31, 2020
Financial liabilities
Financial liabilities at fair value through
- -
profit or loss $ $
Financial liabilities at amortised cost $ 7,811,226 $ 5,683,815
Lease liabilities (including current and
non-current) $ 54,308 $ 77,958
----- End of picture text -----

Note: Financial assets at amortised cost included cash, accounts receivable, other receivables and guarantee deposits paid. Financial liabilities at amortised cost included short-term borrowings, accounts payable, other payables, long-term borrowings (including current portion), guarantee deposits received and lease liabilities (including non-current).

~68~

• B. Financial risk management policies

• The Group adopts an overall risk management and control system to identify and evaluate risk. The Group has a Chief Financial Officer (CFO) to manage all the risk management policies and risk controls. The main duty of the CFO is to oversee implementation of the Group's risk control strategies as follows:

• (a) The Group uses derivative financial instruments to hedge the price, interest rate and exchange rate fluctuations, etc. of the Company’s assets and liabilities, when these affect profit or loss.

• (b) The Group uses derivative financial instruments to hedge the exchange rate fluctuation arising from the foreign currency price of export or import transactions.

• (c) Depending on the risk of the variation of derivative financial instruments, to set up stop-loss point to limit possible losses.

• (d) To transact with international financial institutions with good credit standing.

• (e) To maintain working capital sufficient to support the cash flows resulting from the above contracts and reduce funding risk.

The Group believes that the above financial risk control strategies can effectively lower each kind of risks that the Group encounters.

• 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 minimise the volatility of the exchange rate affecting cost of forecast inventory purchases.

• iii. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other subsidiaries’ functional currency: RMB). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

~69~

Foreign currency amount (Inthousands) Exchangerate Financial assets Monetary items USD:NTD 284,122 $ 27.68 $ USD:RMB 11,339 6.3720 USD:VND 52,303 23,256 Non-monetary items USD:NTD 145,422 27.68 RMB:NTD 250,914 4.344 Financial liabilities Monetary items USD:NTD 193,346 27.68 USD:RMB 31,936 6.3720 USD:VND 82,176 23,256 December31,2021 (Foreign currency: functional currency) Foreign currency amount (Inthousands) Exchangerate Financial assets Monetary items USD:NTD 224,974 $ 28.48 $ RMB:NTD 570,927 4.377 USD:RMB 45,294 6.507 VND:NTD 3,090,185 0.0012 USD:VND 57,407 23,010 Non-monetary items USD:NTD 139,453 28.48 RMB:NTD 405,670 4.38 Financial liabilities Monetary items USD:NTD 154,674 28.48 RMB:NTD 581,609 4.38 USD:RMB 11,415 6.51 VND:NTD 36,347,693 0.0012 USD:VND 76,502 23,010 December31,2020 (Foreign currency: functional currency)	Foreign currency amount (Inthousands) Exchangerate Financial assets Monetary items USD:NTD 284,122 $ 27.68 $ USD:RMB 11,339 6.3720 USD:VND 52,303 23,256 Non-monetary items USD:NTD 145,422 27.68 RMB:NTD 250,914 4.344 Financial liabilities Monetary items USD:NTD 193,346 27.68 USD:RMB 31,936 6.3720 USD:VND 82,176 23,256 December31,2021 (Foreign currency: functional currency) Foreign currency amount (Inthousands) Exchangerate Financial assets Monetary items USD:NTD 224,974 $ 28.48 $ RMB:NTD 570,927 4.377 USD:RMB 45,294 6.507 VND:NTD 3,090,185 0.0012 USD:VND 57,407 23,010 Non-monetary items USD:NTD 139,453 28.48 RMB:NTD 405,670 4.38 Financial liabilities Monetary items USD:NTD 154,674 28.48 RMB:NTD 581,609 4.38 USD:RMB 11,415 6.51 VND:NTD 36,347,693 0.0012 USD:VND 76,502 23,010 December31,2020 (Foreign currency: functional currency)	Book value (NTD) 7,864,497 $ 313,863 1,459,630 4,025,268 1,089,971 5,351,817 883,987 2,293,302
	Exchangerate 28.48 $ 4.377 6.507 0.0012 23,010 28.48 4.38 28.48 4.38 6.51 0.0012 23,010	Book value (NTD)
		6,407,260 $ 2,498,947 1,289,965 3,708 1,585,122 3,971,633 1,775,618 4,405,116 2,545,703 325,097 43,617 2,112,373

iv. The total exchange (loss) gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2021 and 2020 amounted to $285,488 and $90,280, respectively.

~70~

• v. Analysis of foreign currency market risk arising from significant foreign exchange variation:

variation:	variation:	variation:	variation:
Effect on other Degree of Effect on comprehensive variation profit or loss income Financial assets Monetary items USD:NTD 1% 78,645 $ - $ USD:RMB 1% 3,139 - USD:VND 1% 14,596 - Non-monetary items USD:NTD 1% - 40,253 RMB:NTD 1% - 10,900 Financial liabilities Monetary items USD:NTD 1% 53,518 - USD:RMB 1% 8,840 - USD:VND 1% 22,933 - YearendedDecember31,2021 SensitivityAnalysis (Foreign currency: functional currency) Effect on other Degree of Effect on comprehensive variation profit or loss income Financial assets Monetary items USD:NTD 1% 64,073 $ - $ RMB:NTD 1% 24,989 - USD:RMB 1% 12,900 - VND:NTD 1% 37 - USD:VND 1% 15,851 - Non-monetary items USD:NTD 1% - 39,716 RMB:NTD 1% - 17,756 Financial liabilities Monetary items USD:NTD 1% 44,051 - RMB:NTD 1% 25,457 - USD:RMB 1% 3,251 - VND:NTD 1% 436 - USD:VND 1% 21,124 - YearendedDecember31,2020 SensitivityAnalysis (Foreign currency: functional currency)
	SensitivityAnalysis
		Effect on profit or loss 64,073 $ 24,989 12,900 37 15,851 - - 44,051 25,457 3,251 436 21,124	Effect on other comprehensive income
			- $ - - - - 39,716 17,756 - - - - -

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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. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

• ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic/overseas 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 1% or floating discount rate changes by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2021 and 2020 would have increased/decreased by $70,933 and $28,638, 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 $18 and $19, 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

• i. The Group’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. As of December 31, 2021 and 2020, the Group’s borrowings at variable rate were mainly denominated in US dollars.

• ii. At December 31, 2021 and 2020, if interest rates on USD-denominated borrowings had been 0.1% higher/lower with all other variables held constant, post-tax profit for the years ended December 31, 2021 and 2020 would have been $905 and $398 lower/higher, respectively, mainly as a result of changes in interest expense on floating rate borrowings.

• (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. 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, and the contract cash flows of financial instruments stated at amortised cost. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

• ii. The Group manages its credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. 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.

~72~

• iii. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.

• iv. The ageing analysis of accounts receivable and notes receivable that were past due but not impaired is as follows:

Not past due Up to 30 days 31 to 90 days Over 91 days	December31,2021 December 31, 2020 4,815,946 $ 3,457,892 $ 514,404 318,093 70,612 4,568 16,776 820 5,417,738 $ 3,781,373 $

• v. The Group classifies customer’s accounts receivable in accordance with the credit quality rating and used the forecastability of Business Indicators Database and Basel Committee on Banking Supervision to adjust historical and timely information to assess the default possibility of accounts receivable. According to the abovementioned consideration and information, the loss rate methodology as of December 31, 2021 and 2020 is as follows:

December 31, 2021 Expected loss rate Total book value Loss allowance December 31, 2020 Expected loss rate Total book value Loss allowance	Individual 100% - $ - $ Individual 100% 3 $ 3 $	Group A 0.05% 140,588 $ 70 $ Group A 0.05% 75,128 $ 38 $	Group Group B C 0.05% 0.07%~81.22% 4,682,489 $ 594,661 $ 2,341 $ 7,555 $ Group Group B C 0.05% 0.05%~85.25% 3,544,645 $ 161,597 $ 1,772 $ 8,051 $	Total
				5,417,738 $ 9,966 $ Total
				3,781,373 $ 9,864 $

Group A: Related parties.

Group B: Customers with an excellent credit rating grade. Group C: Other customers.

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• vi. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

2021 Accountsreceivable At January 1 9,864 $ Provision for expected credit impairment loss 108 Effect of exchange rate changes 6) ( At December 31 9,966 $ 2020 Accountsreceivable At January 1 6,076 $ Provision for expected credit impairment loss 3,774 Effect of exchange rate changes 14 At December 31 9,864 $	2021 Accountsreceivable At January 1 9,864 $ Provision for expected credit impairment loss 108 Effect of exchange rate changes 6) ( At December 31 9,966 $ 2020 Accountsreceivable At January 1 6,076 $ Provision for expected credit impairment loss 3,774 Effect of exchange rate changes 14 At December 31 9,864 $
	2020
	Accountsreceivable 6,076 $ 3,774 14
	9,864 $

(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.

• ii. Surplus cash held by the operating entities over and above 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 customers, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts.

• iii.The table below analyses the Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities: December 31, 2021 Accounts payable (including related parties) Short-term borrowings Other payables Long-term borrowings (including current portion) Lease liabilities Refund liabilities	Less than 1year 5,276,390 $ 1,103,960 1,384,149 20,954 29,215 161,877	Over 1year
		- $ - - 5,902 25,093 -

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==> picture [406 x 32] intentionally omitted <==

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

Non-derivative financial liabilities:
December 31, 2020 Less than 1 year Over 1 year
----- End of picture text -----

Accounts payable (including	$	4,100,963	$	-
related parties)
Short-term borrowings		430,000		-
Other payables		1,066,004		-
Long-term borrowings (including		7,121		60,189
current portion)
Lease liabilities		29,683		48,275
Refund liabilities		119,030		-

(1) Fair value information

• 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. The fair value of the Group’s investment in listed stocks, beneficiary certificates and etc. is included in Level 1.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in convertible bonds and most derivative instruments is included in Level 2.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.

• B. Financial instruments not measured at fair value

• The carrying amounts of cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables, notes payable, accounts payable and other payables (including related parties) are approximate to their fair values.

• C. The related information on 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 is as follows:

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(a) The related information on the	nature of the assets and liabilities is as follows:	nature of the assets and liabilities is as follows:	nature of the assets and liabilities is as follows:	nature of the assets and liabilities is as follows:	nature of the assets and liabilities is as follows:	nature of the assets and liabilities is as follows:	nature of the assets and liabilities is as follows:
December 31, 2021		Level 1		Level 2		Level3		Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Equity securities	$	7,886,450	$	47,739	$	351,220	$	8,285,409
Debt securities		20,000		-		-		20,000
Beneficiary certificates		30,458		-		291,225		321,683
Derivative instruments		-		104,545		-		104,545
Hybrid instruments		259,544		-		-		259,544
Financial assets at fair value		-		-		-		-
through other comprehensive
income
Equity securities		-		-		1,839		1,839
	$	8,196,452	$	152,284	$	644,284	$	8,993,020
December 31, 2020		Level 1		Level 2		Level3		Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Equity securities	$	533,428	$	33,297	$	2,732,982	$	3,299,707
Debt securities		20,000		-		-		20,000
Beneficiary certificates		37,474		-		162,191		199,665
Derivative instruments		-		111,112		-		111,112
Hybrid instruments		80,434		-		-		80,434
Financial assets at fair value
through other comprehensive
income
Equity securities		-		-		1,853		1,853
	$	671,336	$	144,409	$	2,897,026	$	3,712,771

• (b) The methods and assumptions the Group used to measure fair value are as follows:

• i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares Open-end fund Convertible bond Market quoted price Closing price Net asset value Closing

• ii. 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, other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

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• iii.When assessing non-standard and low-complexity financial instruments, for example, foreign exchange swap contracts, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

• iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate.

• v. The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.

• D. For the years ended December 31, 2021 and 2020, there was no transfer between Level 1 and Level 2.

• E. The following chart is the movement of Level 3 for the years ended December 31, 2021 and 2020:

Equity securities At January 1 2,734,835 $ Gains recognised in profit or loss 7,004,888 Disposed of during the year 519,642) ( Effect of exchange rate 11) ( Transfers out from level 3 8,867,011) ( At December 31 353,059 $ Equity securities At January 1 2,072,941 $ Gains (losses) recognised in profit or loss 783,725 Acquired during the year 9,000 Disposed of during the year 130,861) ( Effect of exchange rate 30 At December 31 2,734,835 $		2021

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• F. In the valuation process of categorising the fair value into Level 3, the Group’s investment segment or the appointed third party conducts independent verification for the fair value of financial instruments by matching the valuation result with market status through independent resource, verifying its independence, reliability, consistency with other resource and representation of viable price. Besides, the segment regularly calibrates the valuation model, conducts retrospective tests, updates the values of input, data, and makes any other necessary adjustment to the fair value to ensure the valuation result is reasonable.

• G. The details about quantified information in relation to significant unobservable inputs for measuring the fair value of Level 3 and sensitivity analysis of significant unobservable inputs is listed below and Note 12(4)H.

	Fair value at	Fair value at		Significant	Range	Relationship
	December 31,		Valuation	unobservable	(weighted	of inputs
		2021	technique	inputs	average)	to fairvalue
Non-derivative
equity instruments
Unlisted shares	$	135,120	Market	Operating income	1.05~4.28(1.78)	The higher the
			comparable	multiple price to		multiple, the
			companies	book ratio multiple		higher the fair
				and price to		value
				earnings ratio
				multiple
Unlisted shares		168,157	Discounted	Long-term revenue	1.12~1.51(1.31)	The higher the
			cash flow	growth rate		long-term revenue
						growth rate and
						long-term pre-tax
						operating margin,
						the higher the fair
						value
Unlisted shares		341,007	Net asset	Not applicable	Not applicable	The higher the net
(including venture			value			asset, the higher
capital shares and						the fair value
funds)

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	Fair value at	Fair value at		Significant	Range	Relationship
	December 31,		Valuation	unobservable	(weighted	of inputs
		2020	technique	inputs	average)	to fairvalue
Non-derivative
equity instrument
Unlisted shares	$	2,211,738	Market	Operating income	0.24~1.13	The higher the
			comparable	multiple price to	(0.81)	multiple, the
			companies	book ratio multiple		higher the fair
				and price to		value
				earnings ratio
				multiple
Unlisted shares		685,288	Net asset	Not applicable	Not	The higher the net
(including venture			value		applicable	asset, the higher
capital shares and						the fair value
funds)

• H. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect on profit or loss or on other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

models have changed:
Input Financial assets Equity instrument Price to book ratio multiple Equity instrument Long-term revenue growth rate Equity instrument Not applicable value	Change ± 1% ± 1% ± 1%	December	Favourable Unfavourable change change - $ - $ - - 18 18 18 $ 18 $ 31,2021 Recognised in other comprehensiveincome
		Favourable Unfavourable change change 1,351 $ 1,351 $ 1,682 1,682 3,392 3,392 6,425 $ 6,425 $ Recognised in profit or loss

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December 31, 2020 Recognised in Recognised in other profit or loss comprehensive income Favourable Unfavourable Favourable Unfavourable Input Change change change change change Financial assets Equity Price to book ± 1% $ 22,117 $ 22,117 $ - $ - instrument ratio multiple and operating income multiple Financial assets Equity Net asset ± 1% instrument value 6,834 6,834 19 19 $ 28,951 $ 28,951 $ 19 $ 19

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

Information on significant transactions as of and for the year ended December 31, 2021 in conformity with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” are as follows. In addition, inter-company transactions between companies were eliminated. The following disclosures are for reference only:

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to table 4.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 6.

• I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Notes 6(2) and 12(3).

• J. Significant intragroup transactions during the reporting periods: Please refer to table 7.

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(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 8.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 9.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 5, 6 and 7.

(4) Major shareholders information

Major shareholders information: The Company has no shareholders holding more than 5% of issued shares.

14. SEGMENT INFORMATION

(1) General information

The Group prepares segment information based on the geographical area for the management review. At present, the Company’s primary sales locations are Taiwan, America and China. Due to the fact that the sales channel, nature of products and other influential elements are heavily affected by geographical factors, the operating management implemented different financial management and performance method for the three areas. Therefore, the reportable segments are Taiwan, America and China.

(2) Operating segments evaluation

The Company evaluates operating segments’ performance based on operating revenue and net income before income tax. All operating segments implemented the Group accounting policies which are detailed in Note 4 of the consolidated financial statements. The transactions between segments are conducted based on fair trading principle. The external revenue submitted to key operation decision makers is consistent with the revenue in the statement of comprehensive income. The reconciliation information about comprehensive income before tax of reportable segments after adjustment in current period is described in Note 14(3).

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(3) Information on segment profit and loss

The segment information provided to the chief operating decision-maker for the reportable segment is as follows:

Year ended December 31, 2021

															Eliminated by
			Taiwan			Americas			China			Others			consolidation			Consolidated
Income from arm's length parties		$	14,269,815		$	485,805		$	7,470,206		$	6,092		$	-		$	22,231,918
Interdepartmental transaction			1,816,942			64,357			6,145,264			9,275,112	(		17,301,675)			-
		$	16,086,757		$	550,162		$	13,615,470		$	9,281,204	($		17,301,675)		$	22,231,918
Segment income (loss), before tax		$	6,334,647		$	8,131		$	41,059		$	171,983	($		244,763)		$	6,311,057
Segment income (loss), net of tax		$	5,074,425		$	12,289		$	14,190		$	171,983	($		250,508)		$	5,022,379
Segment income (loss), including:
Depreciation and amortisation		$	51,566		$	28,586		$	317,876		$	100,028		$	-		$	498,056
Interest income			3,877			318			10,460			96			-			14,751
Interest expense	(		5,949)	(		3,513)	(		476)	(		123)			21	(		10,040)
Income tax expenses	(		1,259,717)	(		2,091)	(		26,870)			-			-	(		1,288,678)
Share of (loss)/profit of associates
accounted for using equity method			221,553			-			29,972			-	(		237,712)			13,813
Segment assets		$	25,733,412		$	889,421		$	9,053,208		$	3,998,966	($		12,930,704)		$	26,744,303
Segment liabilities		$	8,657,235		$	140,805		$	4,310,495		$	2,390,551	($		5,639,032)		$	9,860,054

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Year ended December 31, 2020

													Eliminated by
		Taiwan		Americas			China			Others			consolidation		Consolidated
Income from arm's length parties	$	7,185,838	$	880,424		$	8,647,135		$	34,490		$	-	$	16,747,887
Interdepartmental transaction		4,675,706		85,967			98,788			7,249,236	(		12,109,697)		-
	$	11,861,544	$	966,391		$	8,745,923		$	7,283,726	($		12,109,697)	$	16,747,887
Segment income (loss), before tax	$	727,233	$	19,652	($		77,475)	($		104,154)		$	175,478	$	740,734
Segment income (loss), net of tax	$	558,489	$	18,213	($		79,315)	($		104,154)		$	176,337	$	569,570
Segment income (loss), including:
Depreciation and amortisation	($	44,136)	($	23,232)	($		357,512)	($		85,084)	($		7,270)	($	517,234)
Interest income		18,763		531			19,925			65	(		3,717)		35,567
Interest expense	(	5,741)	(	5,237)	(		22)	(		4,480)			3,757	(	11,723)
Income tax expenses	(	168,744)	(	580)	(		1,840)			-			-	(	171,164)
Share of (loss)/profit of associates
accounted for using equity method	(	176,747)		-	(		18,081)			-			188,794	(	6,034)
Segment assets	$	16,155,543	$	931,350		$	7,592,700		$	3,761,781	($		9,333,183)	$	19,108,191
Segment liabilities	$	3,338,260	$	162,827		$	2,942,011		$	2,303,854	($		2,175,377)	$	6,571,575

~83~

(4) Reconciliation for segment income (loss)

• A. Sales between segments are carried out at arm’s length. The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income.

• B. The adjusted consolidated total profit and reconciliation for post-tax profit (loss) of reportable segment for the current period are provided in Note 14(3).

(5) Information on products and services

Revenue from external customers is mainly from sales of digital television, monitor and stereo system. Details of revenue are as follows:

system. Details of revenue are as follows:
0 Digital televisions Monitors Computer peripheral products Stereo systems Others	Years endedDecember31,
	2021 11,391,613 $ 6,026,322 3,261,455 311,225 1,241,303 22,231,918 $	2020
		10,501,849 $ 2,946,005 1,975,908 208,852 1,115,273
		16,747,887 $

(6) Geographical information

Geographical information for the years ended December 31, 2021 and 2020 is as follows:

Asia America Taiwan Europe Oceania Others	Years endedDecember31,	Years endedDecember31,	Years endedDecember31,
	Non-current Revenue assets 9,989,610 $ 2,151,438 $ 3,447,052 298,742 3,600,143 1,120,780 4,155,252 - 21,637 - 1,018,224 - 22,231,918 $ 3,570,960 $ 2021	2020
	Revenue 9,989,610 $ 3,447,052 3,600,143 4,155,252 21,637 1,018,224 22,231,918 $	Revenue 9,265,042 $ 2,273,380 2,243,997 2,161,121 32,747 771,600 16,747,887 $	Non-current assets
			927,144 $ 336,492 1,345,459 - - 1,083,007
			3,692,102 $

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(7) Major customer information

Major customer information of the Group for the years ended December 31, 2021 and 2020 is as follows:

==> picture [468 x 139] intentionally omitted <==

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

Years ended December 31
2021 2020
Revenue Segment Revenue Segment
Customer S $ 4,016,659 Taiwan and China $ 4,670,305 Taiwan and China
Customer M 4,856,393 China 4,240,121 China
Customer V - America 724,979 America
Customer L 3,261,455 Taiwan 1,975,908 Taiwan
Customer B 2,977,685 Taiwan 1,239,703 Taiwan
$ 15,112,192 $ 12,851,016
----- End of picture text -----

~85~

Expressed in thousands of NTD (Except as otherwise indicated)

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

Loans to others

Year ended December 31, 2021

Table 1

No. （Note1）	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31,2021	Balance at December 31,2021	Actual amount drawndown	Interest rate	Nature of loan （Note2）	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party (Note 3)	Ceiling on total loans granted (Note 3)	Footnote
													Item	Value
0	Amtran Technology Co., Ltd.	AMTRAN VIETNAM TECHNOLOGY COMPANY LIMITED	Other receivables– related parties	Y	276,800 $	276,800 $	- $	Based on the agreement	2	- $	For acquisitions of equipment and operational needs	- $	None	- $	3,339,083 $	6,678,166 $

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

• (1) The Company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: The column of ‘Nature of loan’ shall fill in ‘Business transaction or ‘Short-term financing:

• (1) The Business association is ‘1’.

• (2) The Short-term financing are numbered in order starting from ‘2’

Note 3: Ceiling on total loans granted shall not exceed 40% of the Company’s net asset value. Limit on loans granted to a single party shall not exceed 10% of the Company’s net asset value, except for the subsidiaries, which have 90% voting shares held by the Company, shall not exceed 20% of the Company's net asset value.

Table 1, Page 1

Table 2

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

Provision of endorsements and guarantees to others

Year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Number （Note1）	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party (Notes 3 and 8)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2020 (Note4)	Outstanding endorsement/ guarantee amount at December 31, 2020 (Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of guarantees provided (Notes 3 and 8)	Provision of endorsements/ guarantees by parent company to subsidiary (Note7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note7)	Provision of endorsements/ guarantees to the party in Mainland China (Note7)	Footnote
		Companyname	Relationship with the endorser/ guarantor (Note2)
0	Amtran Technology Co., Ltd.	AMTRAN VIETNAM TECHNOLOGY COMPANY LIMITED	2	3,339,083 $	1,162,560 $	1,162,560 $	- $	- $	6.96	8,347,708 $	Y	N	N

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

• (1) The Company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to:

• (1) Having business relationship.

• (2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company.

• (4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.

• (5) Mutual guarantee of the trade as required by the construction contract.

• (6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

• Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company’s “Procedures for Provision of Endorsements and Guarantees”, and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote.

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

• Note 5: Once endorsement/guarantee contracts or promissory notes are signed/issued by the endorser/guarantor company to the banks, the endorser/guarantor company bears endorsement/guarantee liabilities. And all other events involve endorsements and guarantees should be included in the balance of outstanding endorsements and guarantees.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

• Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

• Note 8: Ceiling on total amount of endorsements/guarantees provided shall not exceed 50% of the Company's latest net assets; limit on endorsement/guarantee to a single party shall not exceed 10% of the Company's net assets, except for

• the subsidiaries, which have 90% voting shares held by the Company directly, shall not exceed 20% of the Company's net asset value as prescribed in the Company’s “Procedures for Provision of Loans”. The net assets were based on the latest audited financial statements of the Company.

Table 2, Page 1

Table 3

Expressed in thousands of NTD

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

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

Year ended December 31, 2021

(Except as otherwise indicated)

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer(Note 2)	General ledger account		As of December 31,2021	As of December 31,2021		Footnote （Note 4）
				Number of shares (in thousands)	Book value (Note3)	Ownership (%)	Fairvalue
Amtran Technology Co., Ltd. Amtran Technology Co., Ltd.	Domestic and foreign listed stocks VIZIO Holding Corp. CTBC Financial Holding Co., Ltd. Preferred Shares B Fubon Financial Holding Co., Ltd. Preferred Shares A Cathay Financial Holding Co., Ltd. Preferred Stock A Ordinary shares of Ritdisplay Inc. Ordinary shares of Huaku Development Co., Ltd. TaiGen Biopharmaceuticals Holdings Ltd. Fubon NYSE FactSet Global Genomics and Immuno Biopharma ETF Realfiction Holding AB Xiaomi Corporation DOG-Proshares Short Dow30 Domestic and foreign unlisted stocks Ordinary shares of Neweb Technologies Co., Ltd. Jason's Entertainment Co., Ltd. Grand Fortune Venture Capital Investment Corporation Taiwan Centrillion Technology Co., Ltd. I-Serve Holdings Limited Sustainable Development Co., Ltd. Bossdom Digiinnovation Co., Ltd GROOVE X,Inc. OWLINK TECHNOLOGY, INC FUGOO CORP. Ordinary shares of Yu-Chi Venture Capital Investment Corporation 17LIFE INC. Fuyo Venture Capital Limited Partnership	- - - - - - - - - - - - - - - - - - - - - - -	Current financial assets at fair value through profit or loss 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 Current financial assets at fair value through profit or loss 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	Note 8 1,098 392 270 4 21 100 200 2,065 170 2 716 657 2,400 1,240 1,000 500 128 Note 7 Note 5 200 506 750 -	7,573,334 $ 70,491 24,774 16,983 331 1,919 1,540 2,602 92,056 11,404 1,938	7.66% 0.22% 0.03% 0.02% 0.01% 0.01% 0.01% 0.06% 10.97% 0.00% 0.02% 0.95% 4.12% 4.12% 3.81% 1.87% 1.46% 0.43% Note 7 Note 5 20.00% 3.75% 4.17% 5.77%	7,573,334 $ 70,491 24,774 16,983 331 1,919 1,540 2,602 92,056 11,404 1,938
					7,797,372		7,797,372
					34,191 28,323 24,000 5,325 30,493 11,352 5,170 - 168,157 - 5,650 - 21,000		34,191 28,323 24,000 5,325 30,493 11,352 5,170 - 168,157 - 5,650 - 21,000
					333,661		333,661

Table 3, Page 1

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer(Note 2)	General ledger account		As of December 31,2021	As of December 31,2021		Footnote （Note 4）
				Number of shares (in thousands)	Book value (Note3)	Ownership (%)	Fairvalue
Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd.	Domestic bonds - Bank Cathay 1st perpetual cumulative subordinated corporate bond issue in 2019 Domestic open-end balance fund - PGIM US Corporate Bond Fund USD T Accumulation Prudential Financial US Investment Grade Corporate Bond Fund Foreign Venture Fund Solaris Global Alpha Fund CHERUBIC VENTURES FUND II L.P CHERUBIC VENTURES FUND IV, L.P Foreign stock linked fund Autocall RCN BARC Worst of KI RCN HSBC CITI 6M Fixed Coupon with KI ELN Worst of KI RCN CSI Non-principal protected equity-linked structured products	- - - - - - - - - -	Current financial assets at fair value through profit or loss 〞 〞 〞 〞 〞 〞	- - - - - -	20,000 $	- - - - - - -	20,000 $
					15,549 14,909		15,549 14,909
					30,458		30,458
					95,279 142,423 53,523		95,279 142,423 53,523
					291,225		291,225
					8,322 38,706 27,826 51,185 27,414		8,322 38,706 27,826 51,185 27,414
					153,453		153,453
					8,626,169		8,626,169

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions. Note 5: As of December 31, 2021, the Company held 1,200 thousand Series A Stock preference shares, 2,100 thousand Seris B Stock shares and 1,200 thousand Seed Preferred Stock shares of Owlink Technology, Inc.,presenting 8.56% of shareholding ratio. Note 6: As of December 31, 2021, the Company held 200 thousand preference shares of Fugoo Corp., presenting 20.00% of total pregerence shares.

Note 7: As of December 31, 2021, the Company held 56 thousand shares and 18 thousand shares of GROOVE X, Inc.’s A2 preference share and A3 preference share, respectively, and shareholding ratio is equivalent to 2.6%.

Note 8: As of December 31, 2021, the Company originally held 67 thousand convertible preference shares of VIZIO Inc. Before VIZIO Inc. was listed on the New York Stock Exchange on March 25, 2021, preference shares originally held by the Company had been

converted into 15,158 thousand ordinary shares of VIZIO HOLDING CORP. in accordance with the stock exchange contract and because of VIZIO Inc.’s shareholding structure adjustment. There were 1,076 thousand shares disposed in the current year and 14,082 thousand shares remained.

Table 3, Page 2

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer(Note 2)	General ledger account		As of December 31,2021	As of December 31,2021		Footnote （Note 4）
				Number of shares (in thousands)	Book value (Note3)	Ownership (%)	Fairvalue
Zwei-Mau Investment Co., Ltd. Zwei-Mau Investment Co., Ltd.	Domestic listed stocks Fubon Financial Holding Co., Ltd. Preferred Shares A AU OPTRONICS CORP. Cathay Financial Holding Co., Ltd. Preferred Stock A Domestic and foreign unlisted stocks Silcon Tech., Inc. Hua-ke material technology Inc. New Smart Technology Co., Ltd. Golden Sapphire International Co., Ltd.	- - - - - - -	Current financial assets at fair value through profit or loss 〞 〞 〞 〞 〞 〞	698 310 602 1,100 325 180 28	44,114 $ 7,099 $ 37,866 89,079 14,245 8 5,300 1,000 20,553 109,632 $	0.06% 0.00% 0.04% 4.68% 1.54% 1.46% 17.92%	44,114 $ 7,099 $ 37,866 89,079 14,245 8 5,300 1,000 20,553 109,632 $

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3, Page 3

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer(Note 2)	General ledger account		As of December 31,2021	As of December 31,2021		Footnote （Note 4）
				Number of shares (in thousands)	Book value (Note3)	Ownership (%)	Fairvalue
H&P VENTURE CAPITAL INVESTMENT CORPORATION	Domestic and foreign unlisted stocks MegaPro Biomedical Co., Ltd. Ordinary shares of LOFTechnology, Inc. Atoptech Inc. H&QAP Greater China Growth Fund, L.P. High Power Optoelectronics Inc. NOVALITE Inc.	- - - - - -	Current financial assets at fair value through profit or loss 〞 〞 〞 〞 〞	1,998 290 714 2,000 159 172	44,744 $ - - - - - 44,744 $	4.13% 1.65% 2.05% 5.33% 0.56% 1.49%	44,744 $ - - - - - 44,744 $

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3, Page 4

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer(Note 2)	General ledger account		As of December 31,2021	As of December 31,2021		Footnote （Note 4）
				Number of shares (in thousands)	Book value (Note3)	Ownership (%)	Fairvalue
WUSH Inc.	Foreign stock linked fund FIXKI FCN-571-B Sheng-sheng-de-li-No.56 Sheng-sheng-de-li-No.154 Worst-of Barrier Reverse Convertible	- - - -	Current financial assets at fair value through profit or loss 〞 〞 〞	- - - -	12,912 $ 23,902 44,733 24,544	- - - -	12,912 $ 23,902 44,733 24,544
					106,091 $		106,091 $

• Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

• Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3, Page 5

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer(Note 2)	General ledger account		As of December 31,2021	As of December 31,2021		Footnote （Note 4）
				Number of shares (in thousands)	Book value (Note3)	Ownership (%)	Fairvalue
Amtran Electronic Co., Ltd.	Domestic and foreign unlisted stocks Beijing Hypersring Technologies, Inc		Current financial assests at fair value through other comprehensive income	-	1,839 $	-	1,839 $

• Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

• Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

• Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3, Page 6

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

Year ended December 31, 2021

					Year	Year	ended December 31, 2021	ended December 31, 2021
Table 4 Investor	Marketable securities	General ledger account	Counterparty （Note 1）	Relationship with the investor	Balance as at January1,2021		Addition （Note 2）			Disposal			Number of shares Amount Note Expressed in thousands of NTD (Except as otherwise indicated) Balance as at December 31,2021
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Amtran Technology Co., Ltd.	VIZIO Holding Corp.	Current financial assets at fair value through profit or loss	-	None	Note 5	$ 2,069,964	-	Note 6	1,076	$ 608,162	$ 146,984	$ 461,178	14,082	$ 7,573,334	-

• Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

• Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank. Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300 million or 20% of paid-in capital or more.

• Note 4: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20% of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Note 5: The Company originally held 67 thousand convertible preference shares of VIZIO Inc. Before VIZIO Inc. was listed on the New York Stock Exchange on March 25, 2021, preference shares originally held by the Company had been conver converted into 15,158 thousand ordinary shares of VIZIO HOLDING CORP. in accordance with the stock exchange contract and because of VIZIO Inc.’s shareholding structure adjustment. Note 6: The Company recognised $5,650,354 of unrealised gain on valuation of investment in VIZIO HOLDING CORP. in the current year.

Table 4, Page 1

Table 5

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

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

Year ended December 31, 2021

Expressed in thousands of NTD

Table 5									Expressed in thousands of NTD	Expressed in thousands of NTD	Expressed in thousands of NTD
Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction			Differences in transaction terms compared to third party transactions (Note 1)		(Except as otherwise indicated) Balance Percentage of total notes/accounts receivable (payable) Footnote (Note 2) Notes/accounts receivable(payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Suzhou Raken Technology Ltd. Suzhou Raken Technology Ltd. WUSH Inc. AMTRAN VIETNAM TECHNOLOGY COMPANY LIMITED.	Suzhou Raken Technology Ltd. AMTRAN VIDEO CORPORATION WUSH Inc. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. WUSH NET Inc. Amtran Technology Co., Ltd.	The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary Ultimate parent company parent company Other related party Ultimate parent company	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales)	867,115) ($	(6%) (3%) (3%) (44%) (1%) (81%) (100%)	60 days after monthly billings 60 days after monthly billings 90 days after monthly billings 75 days after monthly billings 75 days after monthly billings 90 days after monthly billings 75 days after monthly billings	Sales price under mutual agreement Sales price under mutual agreement Sales price under mutual agreement Sales price under mutual agreement Sales price under mutual agreement Sales price under mutual agreement Sales price under mutual agreement	30~90 days after monthly billing for regular clients 30~90 days after monthly billing for regular clients 30~90 days after monthly billing for regular clients 30~90 days after monthly billing for regular clients 30~90 days after monthly billing for regular clients 30~90 days after monthly billing for regular clients 30~90 days after monthly billing for regular clients	- $	- 1% 4% 53% 1% 100% 100%
				469,530) ($					49,260 $
				391,495) ($					149,929 $
				5,896,332) ($					1,713,280 $
				186,142) ($					25,898 $
				376,704) ($					138,296 $
				9,275,107) ($					1,357,574 $

Note 1: If terms of related party transactions are different from third-party transactions, explain the differences and reasons in the ‘Unit price’ and ‘Credit term’ columns.

Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party transactions. Note 3: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20% of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Note 4: The transactions between the Company and subsidiaries are disclosed from the aspect of asset and revenue and the corresponding transactions are not disclosed.

Table 5, Page 1

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

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

Year ended December 31, 2021

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31,2021(Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
AMTRAN VIETNAM TECHNOLOGY COMPANY LIMITED. Suzhou Raken Technology Ltd. Amtran Technology Co., Ltd.	Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. WUSH Inc.	Ultimate parent company Ultimate parent company The Company’s subsidiary	$ 1,357,574 1,713,280 149,929	6.26 4.54 3.09	$ - - -	$ - - -	$ 752,232 640,177 -	$ - - -

Note 1: Fill in separately the balances of accounts receivable–related parties, notes receivable–related parties, other receivables–related parties…etc.

Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Table 6, Page 1

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

Table 7

Significant inter-company transactions during the reporting period

Year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction (Note 5)

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
1 1 2 2 3	Suzhou Raken Technology Ltd. Suzhou Raken Technology Ltd. AMTRAN VIETNAM TECHNOLOGY COMPANY LIMITED. AMTRAN VIETNAM TECHNOLOGY COMPANY LIMITED. Amtran Technology Co., Ltd.	Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Suzhou Raken Technology Ltd.	Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Parent company to subsidiary.	Sales Accounts receivable Sales Accounts receivable Sales	5,896,332 $ 1,713,280 9,275,107 1,357,574 867,115	75 days after monthly billings 75 days after monthly billings 75 days after monthly billings 75 days after monthly billings 60 days after monthly billings	27% 6% 42% 5% 4%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 3: 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 4: The Company may decide to disclose or not to disclose transaction details in this table based on the materiality principle.

Note 5: The individual transaction below NT$0.5 billion is not disclosed. Transactions are disclosed from the assets and revenue's side and are not disclosed from the opposite side.

Table 7, Page 1

Table 8

Expressed in thousands of NTD

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

Information on investees

Year ended December 31, 2021

(Except as otherwise indicated)

Investor	Investee (Notes 1 and 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2021	as at December 31,2021	Net profit (loss) of the investee for the year ended December 31, 2021 (Note 2(2))	Investment income (loss) recognised by the Company for the year ended December 31, 2021 (Note 2(3))	Footnote
				Balance as at December 31, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd. Amtran Technology Co., Ltd.	ABOUND PROFITS LIMITED Zwei-Mau Investment Co., Ltd. ASEV DISPLAY LABS WUSH Inc. AMTRAN LOGISTICS, INC. AMTRAN VIDEO CORPORATION SPYGLASS TESLA, LLC. AMTRAN VIETNAM TECHNOLOGY COMPANY LIMITED H&P VENTURE CAPITAL INVESTMENT CORPORATION HEROIC FAITH MEDICAL SCIENCE CO., LTD HUA JUNG COMPONENTS CO., LTD.	British Virgin Islands Taiwan U.S.A Taiwan U.S.A U.S.A U.S.A Vietnam Taiwan Cayman Islands Taiwan	General investment business General investment business Sales of computer software and hardware, after- sales services Merchandising Business Sales of LCD TVs and logistic services Sales of LCD TVs and logistic services General investment business Manufacturing and sales of LCDs Venture capital business General investment business Manufacture of electronic components	847,755 $ 199,980 67,189 88,573 32,814 28,560 57,437 1,771,980 16,486 54,262 497,099	847,755 $ 199,980 67,189 88,573 32,814 28,560 57,437 1,771,980 16,486 24,652 497,099	24,800,000 19,998,000 2,000,000 16,400,000 1,000,000 1,000,000 1,750,000 - 1,648,561 3,333,333 54,575,709	100.00 100.00 100.00 82.00 100.00 100.00 43.75 100.00 38.71 24.17 31.60	1,756,163 $ 244,950 107,796 203,667 413,815 26,507 87,717 1,579,008 19,800 54,262 427,681	32,322) ($ 46,317 10,824 18,130 9,622) ( 6,274) ( 11,111 171,983 6,154) ( 46,097) ( 34,575	32,322) ($ 46,317 10,824 14,866 9,622) ( 6,274) ( 4,861 171,983 2,381) ( - 10,762	Note 3 Associates

Table 8, Page 1

Investor	Investee (Notes 1 and 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2021	as at December 31,2021	Net profit (loss) of the investee for the year ended December 31, 2021 (Note 2(2))	Investment income (loss) recognised by the Company for the year ended December 31, 2021 (Note 2(3))	Footnote
				Balance as at December 31, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Bookvalue
Amtran Technology Co., Ltd. Zwei-Mau Investment Co., Ltd. WUSH Inc.	BMA VENTURE CAPITAL INVESTMENT CORPORATION HUA JUNG COMPONENTS CO., LTD. WUSH Transport Inc.	Taiwan Taiwan Taiwan	Venture capital business Manufacture of electronic components Logistic services	77,241 $ - 15,074	77,241 $ 20,354 15,074	7,724,138 - 3,000,000	24.14 0.00 100.00	67,386 $ - 40,498	11,745 $ 34,057 7,680	2,835 $ 216 7,680	Note 4

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.

Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:

• (1) The columns of ‘Investee’, ‘Location’, ‘Main business activities’, Initial investment amount’ and ‘Shares held as at December 31, 2020’ should fill orderly in the Company’s (public company’s) information on investees and every directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column..

• (2) The ‘Net profit (loss) of the investee for the year ended December 31, 2020’ column should fill in amount of net profit (loss) of the investee for this period.

• (3) The ‘Investment income (loss) recognised by the Company for the year ended December 31, 2020’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and

• recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Note 2: The recognition of Ruizhong Electronics (Suzhou) Co., Ltd. and Suzhou Lexuan Technology Co., Ltd. in this issue is based on the financial statements audited by the certified accountants of the parent company in Taiwan. Note 3: The Company held 3,333 thousand preference shares of Heroic Faith Medical Science Co., Ltd.

Table 8, Page 2

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

Information on investments in Mainland China Year ended December 31, 2021

Table 9 Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2021	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2021	Net income of investee for the year ended December 31, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2021	(Except as otherwise indicated) Expressed in thousands of NTD Footnote Book value of investments in Mainland China as of December 31,2021 Accumulated amount of investment income remitted back to Taiwan as of December 31, 2021	(Except as otherwise indicated) Expressed in thousands of NTD Footnote Book value of investments in Mainland China as of December 31,2021 Accumulated amount of investment income remitted back to Taiwan as of December 31, 2021	(Except as otherwise indicated) Expressed in thousands of NTD Footnote Book value of investments in Mainland China as of December 31,2021 Accumulated amount of investment income remitted back to Taiwan as of December 31, 2021
					Remitted to Mainland China	Remitted back to Taiwan
Amtran Electronic Co., Ltd. Suzhou Raken Technology Ltd. Suzhou Raken Technology Ltd. Companyname	R&D, manufacturing and repair service of LCDs R&D, manufacturing and repair service of LCDs R&D, manufacturing and repair service of LCDs Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2019	1,046,304 $ 2,516,516 2,516,516 Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)	1 1 3 Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA	548,064 $ - 954,985	- $ - -	- $ - -	548,064 $ 954,985	37,438 $ 46,510 46,510	100.00 62.05 37.95	37,438 $ 21,071 9,488	1,661,946 $ 1,781,821 1,089,971	1,171,421 $ 595,508 534,305
Amtran Technology Co., Ltd.	$ 1,503,049	$ 2,424,796	$ 10,017,250

Note 1: (1) The investee companies was invested through a company founded in the third territory, of which Amtran Electronic(Suzhou) Co., Ltd. and Suzhou Raken Technology Ltd. were invested by Abound Profits Limited and Amtran Electronic (Suzhou) Co., Ltd., respectively.

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

(3) Others (directly invested in the company in Mainland China)

Note 2: The recognition in relation to Amtran Electronic (Suzhou) Co., Ltd. and Suzhou Raken Technology Ltd. was based on the Taiwanese parent company's financial statements which were audited by independent accountants. Note 3: USD ： NTD=1:27.68

Table 9,Page 1