AUO - Interim / Quarterly Report 2021

Stock Code:2409

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Nine Months Ended September 30, 2021 and 2020

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

Independent Auditors’ Review Report

To the Board of Directors of AU Optronics Corp.:

Introduction

We have reviewed the accompanying consolidated balance sheets of AU Optronics Corp. and its subsidiaries (“the Company”) as of September 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2021 and 2020, as well as the changes in equity and cash flows for the nine months ended September 30, 2021 and 2020, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our review.

Scope of Review

We conducted our reviews in accordance with Statement on Auditing Standard No. 65, “Review of Financial Information Performed by the Independent Auditor of the Entity” . A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company as of September 30, 2021 and 2020, and its consolidated financial performance for the three months and nine months ended September 30, 2021 and 2020, as well as its consolidated cash flows for the nine months ended September 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the review resulting in this independent auditors’ review report are Yu, Chi-Lung and Yu, Wan-Yuan.

KPMG

Hsinchu, Taiwan (Republic of China) October 27, 2021

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance, and cash flows in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with the generally accepted auditing standards as of September 30, 2021 and 2020 AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2021, December 31, 2020, and September 30, 2020

(Expressed in thousands of New Taiwan dollars)

September 30, 2021 Assets Amount % Current assets: 1100 Cash and cash equivalents (Note 6(1)) $ 87,922,001 21 1110 Financial assets at fair value through profit or loss`－` current (Note 6(2)) 38,873 - 1136 Financial assets at amortized cost`－`current (Note 6(4)) 10,000,000 2 1170 Notes and accounts receivable, net (Note 6(5)) 63,924,293 15 1180 Accounts receivable from related parties, net (Notes 6(5)&7) 1,719,905 - 1210 Other receivables from related parties (Note 7) 9,090 - 1220 Current tax assets 188,421 - 130X Inventories (Note 6(6)) 34,736,308 8 1476 Other current financial assets (Notes 6(21)&8) 708,034 - 1460 Noncurrent assets held for sale (Note 6(10)) 171,769 - 1479 Other current assets (Note 6(14)) 4,527,776 1 203,946,470 47 Noncurrent assets: 1517 Financial assets at fair value through other comprehensive income`－`noncurrent (Note 6(3)) 738,513 - 1550 Investments in equity-accounted investees (Notes 6(7)&7) 22,093,920 5 1600 Property, plant and equipment (Notes 6(10),7&8) 173,211,642 40 1755 Right-of-use assets (Notes 6(11)&8) 10,728,440 3 1760 Investment property (Note 6(12)) 1,453,466 - 1780 Intangible assets (Notes 6(9)&(13)) 12,756,737 3 1840 Deferred tax assets 6,016,585 1 1900 Other noncurrent assets (Notes 6(4),(14)&8) 4,142,067 1 231,141,370 53 Total Assets $ 435,087,840 100	December 31, 2020 Amount % 90,274,687 22 668,058 - - - 44,718,800 11 2,076,156 - 21,929 - 60,541 - 26,753,401 7 564,222 - 3,931 - 3,175,948 1 168,317,673 41 622,824 - 19,464,078 5 185,480,116 46 11,277,353 3 1,522,391 - 12,801,358 3 6,005,346 2 1,779,156 - 238,952,622 59 407,270,295 100	September 30, 2020 Amount % 78,300,196 20 1,485,597 - - - 42,465,794 11 2,287,162 1 49,384 - 238,475 - 26,745,836 7 572,085 - - - 3,701,238 1 155,845,767 40 6,597,877 2 8,300,948 2 190,399,238 48 11,478,578 3 1,513,889 - 12,853,570 3 5,185,656 1 1,867,985 1 238,197,741 60 394,043,508 100 September 30, 2021 Liabilities and Equity Amount % Current liabilities: 2100 Short-term borrowings (Note 6(15)) $ 30,000 - 2120 Financial liabilities at fair value through profit or loss`－`current (Note 6(2)) 246,582 - 2170 Accounts payable 53,520,811 12 2180 Accounts payable to related parties (Note 7) 8,242,188 2 2213 Equipment and construction payable (Note 7) 3,364,154 1 2220 Other payables to related parties (Note 7) 21,859 - 2230 Current tax liabilities 3,440,319 1 2250 Provisions`－`current (Note 6(17)) 638,647 - 2280 Lease liabilities`－`current (Note 6(11)) 515,490 - 2399 Other current liabilities (Notes 6(10),(21)&(22)) 27,891,099 6 2322 Current installments of long-term borrowings (Notes 6(16)&8) 25,218,210 6 123,129,359 28 Noncurrent liabilities: 2527 Contract liabilities`－`nonccurrent (Note 6(21)) 9,989,990 2 2540 Long-term borrowings, excluding current installments (Notes 6(16)&8) 44,334,029 10 2550 Provisions`－`noncurrent (Note 6(17)) 980,054 - 2570 Deferred tax liabilities 3,073,373 1 2580 Lease liabilities`－`noncurrent (Note 6(11)) 9,273,142 2 2600 Other noncurrent liabilities 2,025,083 1 69,675,671 16 Total liabilities 192,805,030 44 Equity(Note 6(19)): Equity attributable to shareholders of AU Optronics Corp. : 3100 Common stock 96,242,451 22 3200 Capital surplus 61,195,362 14 3300 Retained earnings 77,692,901 18 3400 Other components of equity (4,918,229) (1) 3500 Treasury shares (439,228) - 229,773,257 53 Non-controlling interests 36XX Non-controlling interests 12,509,553 3 Total equity 242,282,810 56 Total Liabilities and Equity $ 435,087,840 100	September 30, 2021		December 31, 2020		September 30, 2020 Amount % 100,000 - 39,726 - 45,176,165 12 6,957,253 2 4,060,329 1 57,577 - 1,334,828 - 719,682 - 575,800 - 19,721,388 5 13,138,037 3 91,880,785 23 - - 106,154,347 27 1,017,438 - 3,100,138 1 9,887,757 3 1,767,862 - 121,927,542 31 213,808,327 54 96,242,451 24 60,576,820 15 17,844,818 5 (3,718,704) (1) (1,013,423) - 169,931,962 43 10,303,219 3 180,235,181 46 394,043,508 100

See accompanying notes to consolidated financial statements.

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

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Three and Nine Months Ended September 30, 2021 and 2020

(Expressed in thousands of New Taiwan dollars, except for Earnings (loss) per share)

4110 Revenue 4190 Less: sales return and discount Net revenue(Notes 6(21)&7) 5000 Cost of sales(Notes 6(6),(11),(18),(22),(23)&7) Gross profit Operating expenses(Notes 6(9),(11),(18),(20),(22),(23)&7): 6100 Selling and distribution expenses 6200 General and administrative expenses 6300 Research and development expenses Total operating expenses Profit (loss) from operations Non-operating income and expenses: 7100 Interest income (Note 6(24)) 7010 Other income (Notes 6(24)&7) 7020 Other gains and losses (Notes 6(24)&7) 7050 Finance costs (Notes 6(10)&(24)) 7060 Share of profit of equity-accounted investees (Note 6(7)) Total non-operating income and expenses 7900 Profit (loss) before income tax 7950 Less: income tax expense(Note 6(25)) 8200 Profit (loss) for the period 8300 Other comprehensive income(Notes 6(7),(19)&(25)): 8310 Items that will never be reclassified to profit or loss 8316 Unrealized gain (loss) on equity investments at fair value through other comprehensive income 8320 Equity-accounted investees–share of other comprehensive income 8360 Items that are or may be reclassified subsequently to profit or loss 8361 Foreign operations–foreign currency translation differences 8370 Equity-accounted investees–share of other comprehensive income 8399 Related tax 8300 Other comprehensive income (loss), net of tax 8500 Total comprehensive income (loss) for the period Profit (loss) attributable to: 8610 Shareholders of AU Optronics Corp. 8620 Non-controlling interests Total comprehensive income (loss) attributable to: 8710 Shareholders of AU Optronics Corp. 8720 Non-controlling interests Earnings (loss) per share(NT$, Note 6(26)) 9750 Basic earnings (loss) per share 9850 Diluted earnings (loss) per share	Three Months Ended September 30 2021 2020 Amount % Amount % $ 100,073,058 101 73,350,885 100 1,018,072 1 120,888 - 99,054,986 100 73,229,997 100 71,641,561 72 65,472,861 89 27,413,425 28 7,757,136 11 1,300,024 1 868,854 1 2,355,190 3 1,689,016 2 3,331,479 3 2,546,878 4 6,986,693 7 5,104,748 7 20,426,732 21 2,652,388 4 98,359 - 109,567 - 283,936 - 1,092,294 1 78,461 - (30,639) - (522,899) - (716,857) (1) 526,184 - (27,852) - 464,041 - 426,513 - 20,890,773 21 3,078,901 4 926,890 1 68,577 - 19,963,883 20 3,010,324 4 (6,059) - 293,569 - (665,453) - (2,425) - (671,512) - 291,144 - 141,908 - 761,836 1 (67,819) - (4,030) - (26,353) - (136,829) - 47,736 - 620,977 1 (623,776) - 912,121 1 $ 19,340,107 20 3,922,445 5 $ 19,310,255 19 2,893,732 4 653,628 1 116,592 - $ 19,963,883 20 3,010,324 4 $ 18,658,363 19 3,639,450 5 681,744 1 282,995 - $ 19,340,107 20 3,922,445 5 $ 2.03 0.30 $ 2.01 0.30	Nine Months Ended September 30, 2021 2020 Amount % Amount % 279,575,396 101 190,843,638 100 1,924,291 1 423,277 - 277,651,105 100 190,420,361 100 204,485,703 74 181,302,679 95 73,165,402 26 9,117,682 5 3,767,318 1 2,568,203 1 7,078,718 3 5,128,897 3 9,589,302 3 7,618,844 4 20,435,338 7 15,315,944 8 52,730,064 19 (6,198,262) (3) 329,138 - 412,415 - 862,710 1 2,340,056 1 555,294 - 71,950 - (1,809,106) (1) (2,246,879) (1) 1,681,740 1 49,391 - 1,619,776 1 626,933 - 54,349,840 20 (5,571,329) (3) 2,681,986 1 398,915 - 51,667,854 19 (5,970,244) (3) (29,579) - (967,052) (1) (619,473) - (1,695) - (649,052) - (968,747) (1) (1,304,618) (1) (984,033) - (29,880) - (34,513) - 207,115 - 183,624 - (1,127,383) (1) (834,922) - (1,776,435) (1) (1,803,669) (1) 49,891,419 18 (7,773,913) (4) 50,675,294 18 (5,058,790) (3) 992,560 1 (911,454) - 51,667,854 19 (5,970,244) (3) 49,039,167 18 (6,772,224) (4) 852,252 - (1,001,689) - 49,891,419 18 (7,773,913) (4) 5.33 (0.53) 5.17 (0.53)
	2021 Amount % $ 100,073,058 101 1,018,072 1 99,054,986 100 71,641,561 72 27,413,425 28 1,300,024 1 2,355,190 3 3,331,479 3 6,986,693 7 20,426,732 21 98,359 - 283,936 - 78,461 - (522,899) - 526,184 - 464,041 - 20,890,773 21 926,890 1 19,963,883 20 (6,059) - (665,453) - (671,512) - 141,908 - (67,819) - (26,353) - 47,736 - (623,776) - $ 19,340,107 20 $ 19,310,255 19 653,628 1 $ 19,963,883 20 $ 18,658,363 19 681,744 1 $ 19,340,107 20 $ 2.03 $ 2.01	2021 Amount % 279,575,396 101 1,924,291 1 277,651,105 100 204,485,703 74 73,165,402 26 3,767,318 1 7,078,718 3 9,589,302 3 20,435,338 7 52,730,064 19 329,138 - 862,710 1 555,294 - (1,809,106) (1) 1,681,740 1 1,619,776 1 54,349,840 20 2,681,986 1 51,667,854 19 (29,579) - (619,473) - (649,052) - (1,304,618) (1) (29,880) - 207,115 - (1,127,383) (1) (1,776,435) (1) 49,891,419 18 50,675,294 18 992,560 1 51,667,854 19 49,039,167 18 852,252 - 49,891,419 18 5.33 5.17

See accompanying notes to consolidated financial statements.

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

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the Nine Months Ended September 30, 2021 and 2020

(Expressed in thousands of New Taiwan dollars)

		Equity Attributable to Shareholders of AU Optronics Corp.	Equity Attributable to Shareholders of AU Optronics Corp.	Equity Attributable to Shareholders of AU Optronics Corp.	Equity Attributable to Shareholders of AU Optronics Corp.	Equity Attributable to Shareholders of AU Optronics Corp.
Capital Surplus 60,544,474 - - - - (38) 32,384 - - 60,576,820 60,587,684 - - - - - - (159) (217,146) 824,983 - - 61,195,362		Retained Earnings		Subtotal 22,903,722 - (5,058,790) (41) (5,058,831) - - - (73) 17,844,818 30,258,282 - - (2,850,967) 50,675,294 (8,195) 50,667,099 - (401,507) - 19,994 - 77,692,901	Other	Components of Equity Unrealized Gains (Losses) on Financial Assets at Fair Value through Other Comprehensive Income Subtotal 1,124,598 (2,005,384) - - - - (968,706) (1,713,393) (968,706) (1,713,393) - - - - - - 73 73 155,965 (3,718,704) (63,783) (3,270,303) - - - - - - - - (640,857) (1,627,932) (640,857) (1,627,932) - - - - - - (19,994) (19,994) - - (724,634) (4,918,229)	Treasury Shares (1,013,423) - - - - - - - - (1,013,423) (1,013,423) - - - - - - - - 574,195 - - (439,228)
					Cumulative Translation Differences (3,129,982) - - (744,687) (744,687) - - - - (3,874,669) (3,206,520) - - - - (987,075) (987,075) - - - - - (4,193,595)	Unrealized Gains (Losses) on Financial Assets at Fair Value through Other Comprehensive Income 1,124,598 - - (968,706) (968,706) - - - 73 155,965 (63,783) - - - - (640,857) (640,857) - - - (19,994) - (724,634)
	Legal Reserve 7,691,688 - - - - - - - - 7,691,688 7,691,688 735,456 - - - - - - - - - - 8,427,144	Special Reserve 847,770 1,157,614 - - - - - - - 2,005,384 2,005,384 - 1,264,919 - - - - - - - - - 3,270,303	Unappropriated Earnings 14,364,264 (1,157,614) (5,058,790) (41) (5,058,831) - - - (73) 8,147,746 20,561,210 (735,456) (1,264,919) (2,850,967) 50,675,294 (8,195) 50,667,099 - (401,507) - 19,994 - 65,995,454

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2021 and 2020

(Expressed in thousands of New Taiwan dollars)

Cash flows from operating activities: Profit (loss) before income tax Adjustments for: - depreciation - amortization - losses (gains) on financial instruments at fair value through profit or loss - interest expense - interest income - dividend income - compensation cost of share-based payments - share of profit of equity-accounted investees - gains on disposals of property, plant and equipment, net - gains on disposals of investments and financial assets, net - unrealized foreign currency exchange losses - others Changes in operating assets and liabilities: - notes and accounts receivable - receivables from related parties - inventories - other operating assets - contract liabilities - notes and accounts payable - payables to related parties - net defined benefit liability - provisions - other operating liabilities Cash generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash provided by operating activities	Nine Months Ended September 30, 2021 2020 $ 54,349,840 (5,571,329) 25,294,200 26,461,698 155,961 216,920 148,101 (48,810) 1,748,303 2,187,897 (329,138) (412,415) (5,478) (261,382) 829,614 - (1,681,740) (49,391) (35,954) (67,720) (893,435) (161) 420,749 28,249 171,190 45,262 (17,426,332) (12,575,885) 369,970 (554,091) (7,997,357) (3,370,634) (2,073,431) 854,238 10,260,242 300,809 4,277,236 1,168,271 930,498 23,418 (17,675) (75,856) (169,047) (10,960) 6,219,326 519,083 74,545,643 8,807,211 302,061 446,169 917,827 603,621 (1,768,465) (2,165,881) (673,886) (712,001) 73,323,180 6,979,119
	2021 $ 54,349,840 25,294,200 155,961 148,101 1,748,303 (329,138) (5,478) 829,614 (1,681,740) (35,954) (893,435) 420,749 171,190 (17,426,332) 369,970 (7,997,357) (2,073,431) 10,260,242 4,277,236 930,498 (17,675) (169,047) 6,219,326 74,545,643 302,061 917,827 (1,768,465) (673,886) 73,323,180

Cash flows from operating activities:
Profit (loss) before income tax
Adjustments for:
- depreciation
- amortization
- losses (gains) on financial instruments at fair value through profit
or loss
- interest expense
- interest income
- dividend income
- compensation cost of share-based payments
- share of profit of equity-accounted investees
- gains on disposals of property, plant and equipment, net
- gains on disposals of investments and financial assets, net
- unrealized foreign currency exchange losses
- others
Changes in operating assets and liabilities:
- notes and accounts receivable
- receivables from related parties
- inventories
- other operating assets
- contract liabilities
- notes and accounts payable
- payables to related parties
- net defined benefit liability
- provisions
- other operating liabilities
Cash generated from operations
Interest received
Dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

Nine Months Ended September 30,
2021
2020
$ 54,349,840
(5,571,329)
25,294,200
26,461,698
155,961
216,920
148,101
(48,810)
1,748,303
2,187,897
(329,138)
(412,415)
(5,478)
(261,382)
829,614
-
(1,681,740)
(49,391)
(35,954)
(67,720)
(893,435)
(161)
420,749
28,249
171,190
45,262
(17,426,332)
(12,575,885)
369,970
(554,091)
(7,997,357)
(3,370,634)
(2,073,431)
854,238
10,260,242
300,809
4,277,236
1,168,271
930,498
23,418
(17,675)
(75,856)
(169,047)
(10,960)
6,219,326
519,083
74,545,643
8,807,211
302,061
446,169
917,827
603,621
(1,768,465)
(2,165,881)
(673,886)
(712,001)
73,323,180
6,979,119

2021
$ 54,349,840
25,294,200
155,961
148,101
1,748,303
(329,138)
(5,478)
829,614
(1,681,740)
(35,954)
(893,435)
420,749
171,190
(17,426,332)
369,970
(7,997,357)
(2,073,431)
10,260,242
4,277,236
930,498
(17,675)
(169,047)
6,219,326
74,545,643
302,061
917,827
(1,768,465)
(673,886)
73,323,180

(Continued)

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued)

For the Nine Months Ended September 30, 2021 and 2020

(Expressed in thousands of New Taiwan dollars)

	Nine Months Ended	September 30,
	2021	2020
Cash flows from investing activities:
Acquisitions of financial assets at fair value through profit or loss	-	(1,830,684)
Disposals of financial assets at fair value through profit or loss	551,320	1,935,242
Acquisitions of financial assets at fair value through other	(406,032)	(20,000)
comprehensive income
Disposals of financial assets at fair value through other comprehensive	-	5,551
income
Acquisitions of financial assets at amortized cost	(10,259,326)	-
Acquisitions of equity-accounted investees	(2,491,234)	(2,599,155)
Disposals of equity-accounted investees	66,060	957,488
Proceeds from disposal of subsidiaries	5,314	-
Acquisitions of property, plant and equipment	(11,631,537)	(12,276,103)
Disposals of property, plant and equipment	125,366	106,236
Increase in receipts in advance due to disposal of assets	897,800	-
Decrease (increase) in refundable deposits	(605,162)	157,404
Acquisitions of intangible assets	(38,000)	-
Decrease (increase) in other financial assets	(27,914)	3,147
Net cash inflow arising from acquisition of subsidiaries	227,701	-
Net cash outflow arising from acquisition of business	-	(252,535)
Net cash used in investing activities	(23,585,644)	(13,813,409)
Cash flows from financing activities:
Proceeds from short-term borrowings	954,979	2,727,403
Repayments of short-term borrowings	(1,124,979)	(4,342,014)
Proceeds from long-term borrowings	2,602,993	15,030,400
Repayments of long-term borrowings	(50,588,534)	(7,307,875)
Payment of lease liabilities	(416,791)	(450,150)
Guarantee deposits refunded	(25,282)	(1,197)
Treasury shares sold to employees	572,472	-
Cash dividends	(2,850,967)	-
Net change of non-controlling interests and others	(218,575)	(40)
Net cash provided by (used in) financing activities	(51,094,684)	5,656,527
Effect of exchange rate change on cash and cash equivalents	(995,538)	(971,813)
Net decrease in cash and cash equivalents	(2,352,686)	(2,149,576)
Cash and cash equivalents at January 1	90,274,687	80,449,772
Cash and cash equivalents at September 30	$ 87,922,001	78,300,196

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards as of September 30, 2021 and 2020 AU OPTRONICS CORP. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

For the Nine Months Ended September 30, 2021 and 2020 (Expressed in thousands of New Taiwan dollars, unless otherwise indicated)

1. Organization

AU Optronics Corp. (“AUO”) was founded on August 12, 1996 and is located in Hsinchu Science Park, the Republic of China (“ROC”). AUO’s main activities are the research, development, production and sale of thin film transistor liquid crystal displays (“TFT-LCDs”) and other flat panel displays used in a wide variety of applications. AUO also engages in the production and sale of solar modules and systems. AUO’s common shares have been publicly listed on the Taiwan Stock Exchange since September 2000, and its American Depositary Shares (“ADSs”) have been listed on the New York Stock Exchange (“NYSE”) since May 2002. On and from October 1, 2019, AUO’s ADSs has delisted from the NYSE and begun trading on the over-the-counter (“OTC”) market. Further on January 27, 2021, AUO’s ADSs and underlying ordinary shares was officially cancelled from the registration of the United States Securities and Exchange Commission and its reporting obligations under the U.S. Securities Exchange Act was terminated.

On September 1, 2001, October 1, 2006 and October 1, 2016, Unipac Optoelectronics Corp. (“Unipac”), Quanta Display Inc. (“ QDI” ) and Taiwan CFI Co., Ltd. (“ CFI” ) were merged with and into AUO, respectively. AUO is the surviving Company, whereas Unipac, QDI and CFI were dissolved.

In order to advance AUO’s value transformation strategy, to accelerate the extension of the value chain and enhance the overall operating performance, upon the resolution of the shareholders’ meeting held on June 17, 2020, AUO demerged and transferred the business of the General Display and the Public Information Display, including assets, liabilities and the operations, to its wholly-owned subsidiary, AUO Display Plus Corporation (“ ADP” ). ADP issued new shares to AUO as the consideration. The effective date of the demerger was set on January 1, 2021.

The consolidated financial statements comprise AUO and its subsidiaries (collectively as “the Company”).

2. The Authorization of Financial Statements

These consolidated financial statements were approved and authorized for issue by the Board of Directors of AUO on October 27, 2021.

3. Application of New and Revised Standards, Amendments and Interpretations:

(1) Impact of adoption of new, revised or amended standards and interpretations endorsed by the Financial Supervisory Commission, ROC (“FSC”)

The Company has adopted the amendments to the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations (collectively, “IFRSs”) with effective date from January 1, 2021. The adoption does not have a material impact on the Company’s consolidated financial statements.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(2) Impact of the IFRSs that have been endorsed by the FSC but not yet in effect

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

●Annual Improvements to IFRSs 2018–2020 Cycle
●Amendments to IFRS 3, Reference to the Conceptual Framework
－
●Amendments to IAS 16, Property, Plant and Equipment Proceeds before Intended Use
－
●Amendments to IAS 37, Onerous Contracts Cost of Fulfilling a Contract
(3) The IFRSs issued by International Accounting Standards Board (“IASB”) but not yet endorsed by the FSC

Standards and interpretations issued by the IASB but not yet endorsed by the FSC are listed below:

●Amendments to IFRS 10 and IAS 28, Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture
●IFRS 17, Insurance Contracts and amendments to IFRS 17
●Amendments to IAS 1, Classification of Liabilities as Current or Noncurrent
●Amendments to IAS 1, Disclosure of Accounting Policies
●Amendments to IAS 8, Definition of Accounting Estimates
●Amendments to IAS 12, Deferred Tax related to Assets and Liabilities arising from a Single Transaction

4. Summary of Significant Accounting Policies

(1) Statement of compliance

The accompanying consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”) and IAS 34, Interim Financial Reporting, as endorsed and issued into effect by the FSC. The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements prepared under the IFRSs endorsed by the FSC with effective dates.

Except as described below, the significant accounting policies applied in the consolidated financial statements are the same as those applied in the consolidated financial statements for the year ended December 31, 2020, and have been applied consistently to all periods presented in the consolidated financial statements. Refer to Note 4 of the consolidated financial statements for the year ended December 31, 2020 for the details.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(2) Basis of consolidation

Principles of preparation of the consolidated financial statements are the same as those applied in the consolidated financial statements for the year ended December 31, 2020. Refer to Note 4(3) of the consolidated financial statements for the year ended December 31, 2020 for the details.

List of subsidiaries in the consolidated financial statements was as follows:

Name of Investor	Name of Subsidiary	Main Activities and Location Holding company (Malaysia) Investment (Taiwan ROC) Investment (Taiwan ROC) Sales and leasing activities (Taiwan ROC) Construction project and related project management (Taiwan ROC) Holding company (Israel) Sales and sales support activities (Netherlands) Manufacturing and sales company (Taiwan ROC) Research and development and sales activities (Taiwan ROC) Renewable energy power generation (Taiwan ROC) Manufacturing, development and sales company (Taiwan ROC) Holding company (Samoa) Intelligent health care services (Taiwan ROC) Investment (Taiwan ROC) Holding company (Samoa) Manufacturing and sales company (Taiwan ROC) Leasing and service company (Taiwan ROC) Holding company (Singapore)	Percentage of Ownership (%)	Percentage of Ownership (%)
			September 30, 2021 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00(1) 33.51(2) 100.00 41.05(3) 100.00 100.00	December 31, 2020 September 30, 2020 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00(1) 100.00 100.00(1) 100.00 100.00(1) 100.00 100.00(1) - - - - 100.00 100.00(1) 41.05(3) 41.05(3) 100.00(1) - 100.00(1) -
AUO AUO AUO AUO AUO AUO AUO AUO AUO AUO AUO AUO AUO AUO and Konly AUO and ADCM AUO, Konly and Ronly Konly ADHLD	AUO (L) Corp. (AUOLB, formerly AU Optronics (L) Corp. (AULB)) Konly Venture Corp. (Konly) Ronly Venture Corp. (Ronly) Space Money Inc. (SMI) AUO Envirotech Inc. (AETW, formerly U-Fresh Technology Inc. (UTI)) ComQi Ltd. (CQIL) AU Optronics Europe B.V. (AUNL) AUO Crystal Corp. (ACTW) AUO Display Plus Corporation (ADP) Da Ping Green Energy Corporation (DPGE) AUO Health Corporation (AHTW) AUO Digitech (CAYMAN) Limited (ADCM) AUO Care Inc. (ACareTW) Star River Energy Corp. (SREC) AUO Digitech Holding Limited (ADHLD) Darwin Precisions Corporation (DPTW) AUO Education Service Corp. (AUES) AU Digitech Pte. Ltd. (ADSG)

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of Investor	Name of Subsidiary	Main Activities and Location Management consulting (PRC) Design, sales and consulting (Taiwan ROC) Holding company (Taiwan ROC) Manufacturing and sales company (Malaysia) Manufacturing and sales company (Japan) Sales and sales support activities (United States) Sales support activities (Japan) Sales support activities (South Korea) Holding company and sales support activities (Singapore) Assembly activities (Czech Republic) Sales support activities (PRC) Manufacturing and sales company (PRC) Manufacturing and sales company (PRC) Manufacturing and leasing activities (PRC) Repairing activities (Slovakia Republic) Manufacturing company (Singapore) Manufacturing and sales company (PRC) Research and development and IP related business (United States) Holding company (Malaysia) Solar power generation (Taiwan ROC)	Percentage of Ownership (%)	Percentage of Ownership (%)
			September 30, 2021 100.00 100.00(1) 100.00 100.00 99.9991 100.00 100.00 100.00 100.00 - 100.00 100.00 100.00 100.00 100.00 100.00 51.00 100.00 100.00 100.00(2)	December 31, 2020 September 30, 2020 100.00(1) - - - 100.00 100.00 100.00 100.00 99.9991 99.9991 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 51.00 51.00 100.00 100.00 100.00 100.00 - -
ADSG ADSG ACTW ACTW SDMC AUOLB AUOLB AUOLB AUOLB AUOLB AUOLB AUOLB AUOLB AUOLB AUOLB AUOLB AUOLB AUOLB AUOLB and DPTW SREC	AUO Digitech (Suzhou) Co., Ltd. (ADSZ) AUO Digitech Taiwan Inc. (ADTW) Sanda Materials Corporation (SDMC) AUO Crystal (Malaysia) Sdn. Bhd. (ACMK)(4) M.Setek Co., Ltd. (M.Setek) AUO Corporation America (AUOUS, formerly AU Optronics Corporation America (AUUS)) AUO Corporation Japan (AUOJP, formerly AU Optronics Corporation Japan (AUJP)) AU Optronics Korea Ltd. (AUKR) AU Optronics Singapore Pte. Ltd. (AUSG) AU Optronics (Czech) s.r.o. (AUCZ)(4) AU Optronics (Shanghai) Co., Ltd. (AUSH) AU Optronics (Xiamen) Corp. (AUXM) AU Optronics (Suzhou) Corp., Ltd. (AUSZ) AU Optronics Manufacturing (Shanghai) Corp. (AUSJ) AU Optronics (Slovakia) s.r.o. (AUSK) AFPD Pte., Ltd. (AUST) AU Optronics (Kunshan) Co., Ltd. (AUKS) a.u. Vista Inc. (AUVI) BriView (L) Corp. (BVLB) Sungen Power Corporation (SGPC)

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of Investor	Name of Subsidiary	Main Activities and Location Solar power generation (Taiwan ROC) Sales support activities (United States) Introduction of smart field construction and other solutions (Taiwan ROC) Holding, sales and sales support activities (Netherlands) Sales and sales support activities (PRC) Sales and sales support activities (United States) Sales support activities (Japan) Manufacturing, sales and leasing activities (PRC) Intelligent health care services (PRC) Construction project and related project management (PRC) Sales of software and hardware and consulting services (PRC) Integration service of software and hardware (PRC) Development and licensing of software (PRC) Construction project and related project management (PRC)	Percentage of Ownership (%)	Percentage of Ownership (%)
			September 30, 2021 100.00(2) 100.00 78.43(1) 100.00 100.00(1) 100.00 100.00 100.00 100.00 100.00 100.00(1) 100.00 100.00 100.00	December 31, 2020 September 30, 2020 - - 100.00 100.00 - - 100.00 100.00 - - 100.00(1) - 100.00(1) - 100.00 100.00 100.00 100.00 100.00 100.00 - - 100.00 100.00 100.00 100.00 100.00 100.00
SREC AUSG ADP ADP and AUSG ADP ADPNL ADPNL AUXM AUSH AUSH ADSZ ADSZ and AUSH ADSZ and AUSH AESZ	Evergen Power Corporation (EGPC) AUO Green Energy America Corp. (AEUS) Jector Digital Corporation (Jector) AUO Display Plus Netherlands B.V. (ADPNL, formerly AUO Green Energy Europe B.V. (AENL))(5) AUO Display Plus Technology (Suzhou) Co., Ltd. (ADPSZ) AUO Display Plus America Corp. (ADPUS) AUO Display Plus Japan Corp. (ADPJP) BriView (Xiamen) Corp. (BVXM) AUO Care Information Tech. (Suzhou) Co., Ltd. (ACareSZ) AUO Envirotech (Suzhou) Co., Ltd. (AESZ, formerly U-Fresh Technology (Suzhou) Co., Ltd. (UFSZ)) AUO Megainsight (Xiamen) Co., Ltd. (MISXM) Edgetech Data Technologies (Suzhou) Corp., Ltd. (EDT)(6) AUO MegaInsight Smart Manufacturing (Suzhou) Corp., Ltd. (MIS, formerly Mega Insight Smart Manufacturing (Suzhou) Corp., Ltd.)(6) AUO Envirotech (Shandong) Co., Ltd. (AESD, formerly U-Fresh Environmental Technology (Shandong) Co., Ltd. (UFSD))

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of Investor	Name of Subsidiary	Main Activities and Location Holding company (United Kingdom) Sales support activities (United Kingdom) Sales company (United States) Research and development activities (Canada) Development and sales activities (United Kingdom) Development and sales activities (United States) Holding company (Malaysia) Holding company (BVI) Holding company (Mauritius) Holding company (Mauritius) Holding company (Samoa) Holding company (Samoa) Manufacturing and sales company (PRC) Manufacturing and sales company (PRC) Manufacturing, sales and trading company (PRC) Manufacturing and sales company (PRC) Holding company (Hong Kong) Manufacturing and sales company (Slovakia Republic) Manufacturing and sales company (PRC) Manufacturing and sales company (PRC) Manufacturing and sales company (PRC)	Percentage of Ownership (%)	Percentage of Ownership (%)
			September 30, 2021 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	December 31, 2020 September 30, 2020 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
CQIL CQHLD CQHLD CQHLD CQUS CQUS DPTW DPTW DPTW FHVI FHVI FHVI FFMI FTMI FWSA and FTMI PMSA DPLB DPLB DPHK DPHK BVLB	ComQi Holdings Ltd. (CQHLD) ComQi UK Ltd. (CQUK) ComQi Inc. (CQUS) ComQi Canada Inc. (CQCA) JohnRyan Limited (JRUK) JohnRyan Inc. (JRUS) Darwin Precisions (L) Corp. (DPLB) Forhouse International Holding Ltd. (FHVI) Forefront Corporation (FFMI) Fortech International Corp. (FTMI) Forward Optronics International Corp. (FWSA) Prime Forward International Ltd. (PMSA) Forhouse Electronics (Suzhou) Co., Ltd. (FHWJ) Fortech Electronics (Suzhou) Co., Ltd. (FTWJ) Suzhou Forplax Optronics Co., Ltd. (FPWJ) Fortech Electronics (Kunshan) Co., Ltd. (FTKS)(4) Darwin Precisions (Hong Kong) Limited (DPHK) Darwin Precisions (Slovakia) s.r.o. (DPSK)(4) Darwin Precisions (Suzhou) Corp. (DPSZ) Darwin Precisions (Xiamen) Corp. (DPXM) BriView (Hefei) Co., Ltd. (BVHF)

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Note 1: ADP was incorporated in May 2020. DPGE, ADCM and ADHLD were incorporated in August 2020. AHTW was incorporated in September 2020. ADSG and ADPUS were incorporated in October 2020. ADPJP was incorporated in November 2020. AUES and ADSZ were incorporated in December 2020. ACareTW and ADPSZ were incorporated in February 2021. ADTW was incorporated in March 2021. Jector and MISXM were incorporated in April 2021.
Note 2: The Company re-assessed the investment of SREC and considered that it has control over the main operating activities of SREC; consequently, SREC and its subsidiaries were included in the Company’s consolidated financial statements from January 2021. Refer to Note 6(8) for the relevant information.
Note 3: Although the Company did not own more than 50% of the DPTW’s ownership interests, it was considered to have de facto control over the main operating policies of DPTW. As a result, DPTW was accounted for as a subsidiary of the Company.
Note 4: As of September 30, 2021, the liquidation of ACMK, DPSK and FTKS is still in process. AUCZ completed its liquidation in July 2021.
Note 5: As part of a business restructuring, AUSG sold all its shareholdings in ADPNL to ADP in January 2021.
Note 6: As part of a business restructuring, AUSH sold all its shareholdings in EDT and MIS to ADSZ in January 2021.

(3) Employee benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuariallydetermined pension cost rate at the end of prior fiscal year, adjusted for significant market fluctuations subsequent to the end of prior fiscal year and for significant curtailments, settlements, or other significant one-time events.

(4) Income taxes

The Company measures and discloses interim period income tax expense in accordance with paragraph B12 of IAS 34, Interim Financial Reporting.

Income tax expense for the period is best estimated by multiplying pre-tax income of the interim period by a projected annual effective tax rate, and is recognized as current tax expense.

For a change in the statutory tax rate during the interim period, the effect on deferred taxes is recognized immediately during the interim reporting period in which the change in tax rate occurs.

Income taxes that are recognized directly in equity or other comprehensive income are measured in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding tax bases at the tax rates that are expected to be applied in the year in which the asset is realized or the liability is settled.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(5) Noncurrent assets held for sale

Noncurrent assets are classified as held for sale when their carrying amounts are expected to be recovered primarily through sale rather than through continuing use. Such noncurrent assets must be available for immediate sale in their present condition and the sale is highly probable within one year. When classified as held for sale, the assets are measured at the lower of their carrying amount and fair value less costs to sell. Impairment losses on initial classification as held for sale and subsequent gains or losses on re-measurement are recognized in profit or loss. However, subsequent gains are not recognized in excess of the cumulative impairment loss that has been recognized.

When property, plant and equipment are classified as held for sale, they are no longer depreciated.

5. Critical Accounting Judgments and Key Sources of Estimations and Assumptions Uncertainty

The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34, Interim Financial Reporting, as endorsed and issued into effect by the FSC requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

In preparing the consolidated financial statements, critical accounting judgments and key sources of estimations and assumptions uncertainty used by management in the application of accounting policies are consistent with those described in Note 5 of the consolidated financial statements for the year ended December 31, 2020.

6. Description of Significant Accounts

Except as described below, the description of significant accounts in the accompanying consolidated financial statements is not materially different from those described in Note 6 of the consolidated financial statements for the year ended December 31, 2020.

(1) Cash and Cash Equivalents

September 30, 2021 Cash on hand, demand deposits and checking accounts $ 53,357,870 Time deposits 34,564,131 $ 87,922,001	December 31, 2020 43,921,304 46,353,383 90,274,687	September 30, 2020
		36,127,857 42,172,339
		78,300,196

Refer to Note 6(29) for the disclosure of currency risk and sensitivity analysis of the financial instruments of the Company.

As at September 30, 2021, December 31, 2020 and September 30, 2020, no cash and cash equivalents were pledged with banks as collaterals.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(2) Financial Assets and Liabilities at Fair Value through Profit or Loss (“FVTPL”)

September 30, 2021 Financial assets mandatorily measured at FVTPL: Foreign currency forward contracts $ 38,873 Structured deposits - $ 38,873 Financial liabilities held for trading: Foreign currency forward contracts $ 246,582	December 31, 2020 112,319 555,739 668,058 170,956	September 30, 2020
		80,876 1,404,721
		1,485,597
		39,726

The Company entered into derivative contracts to manage the exposure to currency risk arising from operating activities.

As at September 30, 2021, December 31, 2020 and September 30, 2020, the Company’s outstanding foreign currency forward contracts were as follows:

	September 30, 2021
Contract item Sell USD / Buy NTD Sell USD / Buy JPY Sell USD / Buy CNY Sell USD / Buy SGD Sell CNY / Buy USD Sell EUR / Buy JPY Sell EUR / Buy NTD Sell NTD / Buy JPY	Maturity date Contract amount Oct. 2021~Dec. 2021 USD 1,475,800 / NTD 40,982,811 Oct. 2021~Nov. 2021 USD 107,447 / JPY 11,837,866 Oct. 2021~Mar. 2022 USD 111,000 / CNY 721,901 Nov. 2021 USD 24,603 / SGD 33,520 Oct. 2021~Jan. 2022 CNY 2,254,031 / USD 346,205 Oct. 2021~Nov. 2021 EUR 23,000 / JPY 2,986,265 Oct. 2021 EUR 9,000 / NTD 291,744 Oct. 2021 NTD 25,281 / JPY 100,000

December 31, 2020 Contract item Maturity date Contract amount Sell USD / Buy NTD Jan. 2021~Feb. 2021 USD 522,200 / NTD 14,751,599 Sell USD / Buy JPY Jan. 2021~Mar. 2021 USD 122,935 / JPY 12,752,953 Sell USD / Buy EUR Jan. 2021 USD 2,398 / EUR 2,000 Sell USD / Buy CNY Jan. 2021~Aug. 2021 USD 131,500 / CNY 879,713 Sell USD / Buy SGD Jan. 2021~Feb. 2021 USD 28,349 / SGD 38,020 Sell CNY / Buy USD Feb. 2021~Mar. 2021 CNY 1,400,000 / USD 212,882 Sell EUR / Buy JPY Jan. 2021~Feb. 2021 EUR 10,000 / JPY 1,253,050 Sell HKD / Buy USD Jan. 2021 HKD 500 / USD 64

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

	September 30, 2020
Contract item Sell USD / Buy NTD Sell USD / Buy JPY Sell USD / Buy CNY Sell USD / Buy SGD Sell USD / Buy MYR Sell CNY / Buy USD Sell EUR / Buy JPY Sell HKD / Buy USD	Maturity date Contract amount Oct. 2020~Nov. 2020 USD 375,600 / NTD 10,959,332 Oct. 2020~Dec. 2020 USD 128,887 / JPY 13,597,155 Oct. 2020~Jun. 2021 USD 98,500 / CNY 681,397 Oct. 2020~Nov. 2020 USD 28,524 / SGD 38,948 Oct. 2020~Nov. 2020 USD 623 / MYR 2,593 Nov. 2020~Dec. 2020 CNY 1,700,000 / USD 248,183 Oct. 2020 EUR 5,000 / JPY 628,175 Oct. 2020~Nov. 2020 HKD 153,000 / USD 19,732

(3) Financial Assets at Fair Value through Other Comprehensive Income (“FVTOCI”)

Investments in equity instruments at FVTOCI: Equity securities – listed stocks $ Equity securities – non-listed stocks $	September 30, 2021 153,158 585,355 738,513	December 31, 2020 294,668 328,156 622,824	September 30, 2020 6,389,449 208,428
			6,597,877

The purpose that the Company invests in the abovementioned equity securities is for long-term strategies, but rather for trading purpose. Therefore, those equity securities are designated as financial assets at FVTOCI.

Upon the re-assessment, the Company considers that it has significant influence over Qisda Corporation (“Qisda”); consequently, at the end of December 2020 the equity investment in Qisda previously classified as financial assets at FVTOCI was reclassified as investments accounted for using the equity method. Refer to Note 6(7) for the relevant information.

(4) Financial Assets at Amortized Cost

		September
		30, 2021
Domestic and foreign time deposits	$	10,265,344
Less: current		(10,000,000)
Noncurrent (recognized in other noncurrent assets)	$	265,344

The Company has assessed that these financial assets are held-to-maturity to collect contractual cash flows, which consist solely of payments of principal and interest on principal amount outstanding. Therefore, these investments were classified as financial assets at amortized cost.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

As at September 30, 2021, none of the Company’s domestic and foreign time deposits was pledged as collateral.

(5) Notes and Accounts Receivable, net (Including Related and Unrelated Parties)

September 30, 2021 Notes receivable $ 95,019 Accounts receivable 65,562,453 Less: loss allowance (13,274) $ 65,644,198 Notes and accounts receivable, net $ 63,924,293 Accounts receivable from related parties, net $ 1,719,905	December 31, 2020 179,411 46,635,061 (19,516) 46,794,956 44,718,800 2,076,156	September 30, 2020 178,524 44,594,999 (20,567) 44,752,956 42,465,794 2,287,162

The Company measures loss allowance for notes and accounts receivable using the simplified approach under IFRS 9 with the lifetime expected credit losses. Analysis of expected credit losses which was measured based on the aforementioned method, was as follows:

September 30, 2021	September 30, 2021
Carrying amount of notes and accounts receivable Weighted- average loss rate $ 64,410,736 0.00% 1,145,826 0.02% 83,873 0.01% 4,057 0.00% $ 65,644,492 December 31, 2020		Loss allowance for lifetime expected credit losses
		111 178 5 -
		294

Carrying amount of notes and accounts receivable $ 45,814,603 961,549 17,189 4,176 $ 46,797,517	Weighted- average loss rate 0.00% 0.01% 0.00% 56.54%	Loss allowance for lifetime expected credit losses
		88 112 - 2,361
		2,561

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

September 30, 2020	September 30, 2020
Carrying amount of notes and accounts receivable $ 43,894,233 802,723 54,925 4,108 $ 44,755,989	Weighted- average loss rate 0.00% 0.01% 0.95% 57.64%	Loss allowance for lifetime expected credit losses
		83 62 520 2,368
		3,033

In addition, there was objective evidence indicating that, under reasonable expectation, some of the notes and accounts receivable would not be recovered in total; therefore, the Company recognized a loss allowance of $12,980 thousand, $16,955 thousand and $17,534 thousand as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.

The movement of the loss allowance for notes and accounts receivable was as follows:

Balance at beginning of the period Provisions (reversals) charged to (against) expense Write-offs Effect of changes in foreign currency exchange rates Balance at end of the period	Nine Months Ended September 30, 2021 2020 $ 19,516 17,738 (2,585) 2,855 (3,583) - (74) (26) $ 13,274 20,567
	2021 $ 19,516 (2,585) (3,583) (74) $ 13,274

The payment terms granted to customers are generally 25 to 60 days from the end of the month during which the invoice is issued. This term is consistent with practices in our industry, and thus, no financing components involved.

(6) Inventories

September 30, 2021 Finished goods $ 10,675,796 Work-in-progress 13,457,661 Raw materials 10,602,851 $ 34,736,308		December 31, 2020 8,903,882 11,259,938 6,589,581 26,753,401	September 30, 2020 8,265,550 12,643,555 5,836,731
			26,745,836

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

For the three months and nine months ended September 30, 2021 and 2020, the amounts recognized as cost of sales in relation to inventories were $71,641,561 thousand, $65,472,861 thousand, $204,485,703 thousand and $181,302,679 thousand, respectively. The net of provisions (reversals) for inventories written down (increased) to net realizable value, which were also included in cost of sales, amounted to $330,288 thousand in provisions, $1,169,011 thousand in reversals, $662,211 thousand in provisions and $1,841,132 thousand in reversals for the three months and nine months ended September 30, 2021 and 2020, respectively.

As at September 30, 2021, December 31, 2020 and September 30, 2020, none of the Company’s inventories was pledged as collateral.

(7) Investments in Equity-accounted Investees

September 30, 2021 $ 21,895,022 198,898 $ 22,093,920 September 30, 2021 Amount Ownership interest % 10,705,440 20 4,713,291 8 2,503,499 22 1,684,976 33 1,474,916 18 717,751 25 - - - - 95,149 21,895,022	December 31, 2020	December 31, 2020	September 30, 2020
	19,180,565 283,513		8,020,492 280,456
	19,464,078		8,300,948
	December	31, 2020 Ownership interest % 18 - 20 33 17 25 28 34	September 30, 2020
Amount	Amount		Amount Ownership interest - - - - 2,344,877 20 1,027,090 33 736,751 17 681,345 25 2,766,208 27 443,533 34 20,688 8,020,492
10,705,440 4,713,291 2,503,499 1,684,976 1,474,916 717,751 - - 95,149	10,220,729 - 2,336,445 1,689,192 809,137 717,953 2,853,386 447,171 106,552
21,895,022	19,180,565

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

The Company’s share of associates’: Profit (loss) Other comprehensive income (loss) Total comprehensive income (loss)	Three Months Ended September 30, 2021 2020 $ 520,518 (20,682) (733,272) (6,455) $ (212,754) (27,137)	Nine Months Ended September 30, 2021 2020 1,668,577 54,548 (649,353) (36,208) 1,019,224 18,340
	2021 $ 520,518 (733,272) $ (212,754)	2021 1,668,577 (649,353) 1,019,224

On February 5, 2020, AUO’ s Board of Directors resolved to acquire common shares of ADLINK through tender offer. As of September 30, 2021, the Company holds a total of 48,081 thousand common shares of ADLINK for totaling of 22% equity interest in ADLINK.

Lextar, upon the resolution of its Board of Directors on June 18, 2020, carried out a joint share exchange with Epistar Corporation (“Epistar”) for a newly incorporated company, Ennostar. Such plan was also approved by Lextar’s and Epistar’s special shareholders’ meetings held on August 7, 2020. In November 2020, Lextar received a written decision on anti-monopoly examination of the business operators’ concentration from the Antitrust authority in China wherein the authority approved and decided not to prohibit the concentration. On the record date, January 6, 2021, Ennostar’ s shares have been publicly listed on the Taiwan Stock Exchange. In the meanwhile, Lextar’s and Epistar’s listing and public offering were terminated. Upon completion of the share exchange, the Company still remains significant influence over Ennostar.

When the share exchange took place on January 6, 2021, the Company deemed the conversion of shares of Lextar as disposal. The fair value at disposal was $3,577,076 thousand and the gain on disposal was $888,925 thousand.

In consideration of the Company’ s operational strategy, the Company has increased its shareholdings in Qisda since November 2020. Upon the re-assessment, the Company considers that it has obtained the ability to exercise significant influence over Qisda; consequently, at the end of December 2020 the Company derecognized the investment in Qisda previously classified as financial assets at FVTOCI, and further recognized an investment accounted for using the equity method at fair value. The related cumulative gain that was previously recognized in other comprehensive income under items never be reclassified in profit or loss was reclassified to retained earnings.

In connection with the Company’s operational strategy, the Company continually increased its shareholdings in Qisda, Ennostar, ADLINK and Raydium with total investments of $2,491,234 thousand and $2,599,155 thousand for the nine months ended September 30, 2021 and 2020, respectively.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

b. Joint ventures

None of the joint ventures is considered individually material to the Company. The following table summarized the amount recognized by the Company at its share of those joint ventures.

The Company’s share of joint ventures’: Profit (loss) Other comprehensive income (loss) Total comprehensive income (loss)	Three Months Ended September 30, 2021 2020 $ 5,666 (7,170) - - $ 5,666 (7,170)	Nine Months Ended September 30, 2021 2020 13,163 (5,157) - - 13,163 (5,157)
	2021 $ 5,666 - $ 5,666	2021 13,163 - 13,163

As at September 30, 2021, December 31, 2020 and September 30, 2020, none of the Company’s investments in equity-accounted investees was pledged as collateral.

(8) Acquisition of subsidiaries

The Company is the sole largest shareholder of SREC with 33.51% of its voting shares. Upon the amendment to the joint venture agreement in January 2021, the Company re-assessed the investment of SREC and considered that it has control over the main operating activities of SREC. Consequently, SREC and its subsidiaries were included in the Company’ s consolidated financial statements from January 2021.

Consideration transferred: Investments in equity-accounted investees Non-controlling interests (measured by the fair value of identifiable net assets in proportion to non-controlling interests) Fair value of identifiable assets acquired and liabilities assumed: Cash and cash equivalents Property, plant and equipment Other assets Total liabilities	Amount $ 447,171 887,129 $ 1,334,300 Fair value $ 227,701 2,107,168 222,774 (1,223,343) $ 1,334,300

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(9) Acquisition of Business

In February 2020, the Company acquired the business of integration service of content management system and hardware from John Ryan International Inc., John Ryan Technology, Inc., Cutler holdings Inc. and their subsidiaries (hereinafter referred to as “John Ryan”). Through the acquisition of the business, the Company expects to extend the relevant business to the financial industry.

If the acquisition had taken place on January 1, 2020, management estimated that the Company’s consolidated revenue and consolidated net loss for the nine months ended September 30, 2020 would have been $190,434,150 thousand and $5,978,641 thousand, respectively. In determining these amounts, management had assumed that the fair value adjustments, determined provisionally, that arose on the acquisition date would have been the same if the acquisition had taken place on January 1, 2020. The aforementioned pro-forma information is presented for illustrative purposes only and is not necessarily an indication of consolidated revenue and results of operations of the Company that would have been achieved had the acquisition been completed on January 1, 2020, nor is it intended to be a projection of future results.

Acquisition-related costs of $4,670 thousand on legal fees and due diligence fees were expensed and recognized in operating expenses in the consolidated statement of comprehensive income for the year ended December 31, 2020.

The following table summarized each major class of consideration transferred, the assets acquired and liabilities assumed at the acquisition date and the amount of goodwill recognized.

a. Consideration transferred (translated at the exchange rates on September 30, 2020)

Cash Contingent consideration	Amounts
	$ 209,034 43,501 $ 252,535

In accordance with the terms of the contingent consideration, in the event that the annual revenue and the annual recurring revenue rendered from the acquired business for the year ended December 31, 2020 are either greater than the agreed revenue targets or hit the agreed goals specified in the agreement, or in the event that John Ryan assists in acquiring specific business within the period specified in the agreement, the Company will pay additional consideration of USD 750 thousand and USD 1,492 thousand, respectively, to John Ryan. Under the arrangement of the contingent consideration, the potential undiscounted amount of the contingent payment that the Company may have to pay in the future is between USD 0 thousand and USD 2,242 thousand.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

The fair value of the contingent consideration estimated using Monte Carlo simulation and expected value was $43,501 thousand. The fair value measurement was based on the significant unobservable inputs in the market and categorised as a Level 3 fair value under IFRS 13. The significant inputs in the valuation technique used are discount rate of 5.2% and revenue volatility rate of 12.8%.

Notwithstanding that the annual revenue and the annual recurring revenue rendered from the acquired business for the year ended December 31, 2020 were neither greater than the agreed revenue targets nor hit the agreed goals specified in the agreement, John Ryan assisted in acquiring specific business within the period specified in the agreement. Therefore, based on the agreement, the Company has paid USD 1,492 thousand to John Ryan from a trust account as agreed. The remeasurement of the fair value of the aforementioned contingent consideration agreement is consistent with the amount estimated and recorded.

b. Identifiable assets acquired and liabilities assumed

The following table summarized the fair value of identifiable assets acquired and liabilities assumed recognized at the acquisition date (translated at the exchange rates on September 30, 2020):

Accounts receivable and other current assets Property, plant and equipment Intangible assets Accounts payable and other current liabilities	Fair value $ 24,133 2,174 125,035 (37,851) $ 113,491

c. Goodwill arising from the acquisition for which is attributable mainly to the synergies expected to be achieved from integrating the acquired business into the Company’s existing business has been recognized as follows (translated at the exchange rates on September 30, 2020):

Consideration transferred Less: Fair value of identifiable net assets	Amounts $ 252,535 (113,491) $ 139,044

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(10) Property, Plant and Equipment

	Nine Months Ended September 30, 2021	Nine Months Ended September 30, 2021	Nine Months Ended September 30, 2021
Balance, Beginning of Period	Effect of change in consolidated entities Additions Disposal, write off, reclassification and others Balance, End of Period - - (85,941) 8,772,226 - 8,360 (1,907,041) 118,208,519 2,107,168 923,652 (4,588,860) 833,297,681 - 3,022,004 (3,570,200) 37,611,682 2,107,168 3,954,016 (10,152,042) 997,890,108 - 2,137,070 (1,518,360) 42,646,666 - 18,332,031 (7,675,780) 756,618,648 - 4,300,881 (4,196,486) 30,170,373 - 24,769,982 (13,390,626) 829,435,687 - 7,405,982 (4,204,242) 4,757,221 173,211,642 Nine Months Ended September 30, 2020			Balance, End of Period 8,772,226 118,208,519 833,297,681 37,611,682
				997,890,108
				42,646,666 756,618,648 30,170,373
				829,435,687
				4,757,221
				173,211,642
		Additions - 11,972 1,102,820 3,549,206 4,663,998 2,158,921 19,150,657 4,560,504 25,870,082 5,419,092	Disposal, write off, reclassification and others (867) (59,196) (10,379,975) (1,229,654) (11,669,692) (160,762) (16,539,929) (2,715,804) (19,416,495) (8,295,116)	Balance, End of Period
				8,857,781 119,650,025 832,304,682 38,153,989
				998,966,477
				41,168,907 739,903,556 29,491,110
				810,563,573
				1,996,334
				190,399,238

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AUO and ACTW decided to dispose part of their plants and related appendages pursuant to the resolution of their respective Board of Directors’ meeting held on April 28, 2021 and March 16, 2021. The aforementioned assets have been reclassified as noncurrent assets held for sale. The relevant procedures are expected to be completed within twelve months. As of September 30, 2021, the consideration of the transactions received in advance were $415,000 thousand and $482,800 thousand, respectively (recognized in other current liabilities).

DPSZ decided to dispose part of its right-of-use assets, plants and related appendages pursuant to the resolution of its Board of Directors’ meeting held on June 29, 2021. The relevant procedures are expected to be completed within twelve months. However, as production activities were still ongoing at the aforementioned plants as of September 30, 2021, and those assets did not meet the criteria for the transfer of noncurrent assets held for sale, therefore, those assets were still classified as right-ofuse assets and property, plant and equipment, respectively.

Except for the aforementioned transactions, there was no significant change in the Company’ s property, plant and equipment for the nine months ended September 30, 2021 and 2020. Refer to Note 6(8) of the consolidated financial statements for the year ended December 31, 2020 for the related disclosures.

The following table summarized the Company’ s capitalized borrowing costs and the interest rate range applied for the capitalization:

Three Months Ended September 30, 2021 2020 $ 11,237 6,664	Nine Months Ended September 30,	Nine Months Ended September 30,
2021 $ 11,237	2021 22,889 0.80%~ 1.63%	2020
		33,007
		0.88%~ 1.77%

Certain property, plant and equipment were pledged as collateral, see Note 8.

(11) Lease Arrangements

a. Lessee

(i) Right-of-use assets

September 30, 2021 Carrying amount of right-of-use assets Land $ 10,444,084 Buildings 267,186 Other equipment 17,170 $ 10,728,440	December 31, 2020 10,891,245 364,442 21,666 11,277,353	September 30, 2020
		11,016,087 437,767 24,724
		11,478,578

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Three Months Ended September 30, 2021 *2020() $ 37 (406) $ 134,533 136,167 33,263 44,948 1,294 1,615 $ 169,090 182,730**	Nine Months Ended September 30,	Nine Months Ended September 30,
2021 $ 37 $ 134,533 33,263 1,294 $ 169,090	2021 45,495 406,830 113,346 4,042 524,218	2020
		106,182
		412,433 142,045 37,138
		591,616

(*) Including the effect of exchange rate conversion.

(ii) Lease liabilities

September 30, 2021	September 30, 2021
Future minimum lease payments Interests Present value of minimum lease payments $ 690,052 174,562 515,490 2,649,840 599,698 2,050,142 8,339,898 1,116,898 7,223,000 $ 11,679,790 1,891,158 9,788,632 $ 515,490 $ 9,273,142 December 31, 2020		Present value of minimum lease payments
		515,490 2,050,142 7,223,000
		9,788,632

	Interests Present value of minimum lease payments 182,708 553,120 633,115 2,105,506 1,221,223 7,638,646 2,037,046 10,297,272 $ 553,120 $ 9,744,152	Present value of minimum lease payments
		553,120 2,105,506 7,638,646
		10,297,272

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

September 30, 2020	September 30, 2020
Future minimum lease payments $ 761,506 2,783,324 9,001,929 $ 12,546,759	Interests Present value of minimum lease payments 185,706 575,800 641,661 2,141,663 1,255,835 7,746,094 2,083,202 10,463,557 $ 575,800 $ 9,887,757	Present value of minimum lease payments
		575,800 2,141,663 7,746,094
		10,463,557

(iii) Significant lease agreements

AUO has entered into various land lease agreements with Hsinchu Science Park Bureau, Central Science Park Administration Bureau and Southern Taiwan Science Park Bureau, respectively, for the construction of plant for operations.

(iv) Sublease of right-of-use assets

The Company subleased part of its right-of-use assets under operating leases. For the three months and nine months ended September 30, 2021 and 2020, income from sublease were $1,238 thousand, $1,243 thousand, $3,620 thousand and $4,932 thousand, respectively. Right-of-use assets that meet the definition of investment properties are reclassified to investment properties. Refer to Note 6(10) of the consolidated financial statements for the year ended December 31, 2020 for further information on investment properties.

(v) Additional lease information

The Company applies the recognition exemption to account for short-term leases and leases of low-value assets, primarily for some leases of office buildings and other sporadic leasing. The amounts recognized in profit or loss during the lease term were as follows:

Three Months Ended September 30, *2021() 2020 $ 7,413 2,496 $ 97 (33)**	Nine Months Ended September 30,	Nine Months Ended September 30,
*2021() $ 7,413** $ 97	2021 33,238 333	2020
		7,045
		397

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Three Months Ended September 30, *2021() 2020 $ 712 145 $ (3) 34,347**	Nine Months Ended September 30,	Nine Months Ended September 30,
*2021() $ 712 $ (3)**	2021 2,925 740	2020
		426
		34,347

(*) Including the effect of exchange rate conversion.

Total cash outflow for the Company’ s leases in which it acts as a lessee for the nine months ended September 30, 2021 and 2020 were $590,925 thousand and $593,642 thousand, respectively.

b. Lessor

There was no significant addition in the Company’ s operating lease contracts for the nine months ended September 30, 2021 and 2020. Refer to Note 6(9) of the consolidated financial statements for the year ended December 31, 2020 for the relevant information.

(12) Investment Property

September 30, 2021 Land $ 704,482 Buildings 725,191 Right-of-use assets 23,793 $ 1,453,466	December 31, 2020 729,163 767,769 25,459 1,522,391	September 30, 2020
		728,781 759,829 25,279
		1,513,889

There was no significant change in the Company’s investment property for the nine months ended September 30, 2021 and 2020. For other relevant information, refer to Note 6(10) of the consolidated financial statements for the year ended December 31, 2020.

The fair value of the Company’ s investment property was not materially different from those disclosed in Note 6(10) of the consolidated financial statements for the year ended December 31, 2020.

As at September 30, 2021, December 31, 2020 and September 30, 2020, there was no investment property that was pledged as collateral.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(13) Intangible Assets

September 30, 2021 Goodwill $ 12,016,160 Patent and technology fee 532,210 Others 208,367 $ 12,756,737	December 31, 2020 12,016,993 671,906 112,459 12,801,358	September 30, 2020
		12,019,963 714,797 118,810
		12,853,570

The Company acquired goodwill and other intangible assets from the acquisition of business in February 2020. See Note 6(9) for further details. Except for the aforementioned transaction, there was no significant change in the Company’s intangible assets for the nine months ended September 30, 2021 and 2020. Information on amortization for the periods presented is disclosed in Note 6(23). For other relevant information, refer to Note 6(11) of the consolidated financial statements for the year ended December 31, 2020.

(14) Other Current Assets and Other Noncurrent Assets

September 30, 2021 Refundable and overpaid business tax $ 1,875,030 Refundable deposits 1,015,595 Prepayments for equipment 421,414 Prepayments for purchases 1,384,303 Others 3,973,501 8,669,843 Less: current (4,527,776) Noncurrent $ 4,142,067	December 31, 2020 1,051,994 432,202 458,707 145,468 2,866,733 4,955,104 (3,175,948) 1,779,156	September 30, 2020 1,323,869 505,024 431,194 107,898 3,201,238 5,569,223 (3,701,238) 1,867,985

(15) Short-term Borrowings

September 30, 2021 Unsecured borrowings $ 30,000 Unused credit facilities $ 26,025,275 Interest rate range 1.22%~ 1.35%	December 31, 2020 200,000 29,045,922 0.97%~ 1.40%	September 30, 2020
		100,000
		35,496,580
		1.14%~ 1.35%

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

From January to September 2021, the Company entered into an agreement with financial institutions for offsetting financial assets and financial liabilities. The agreement meets the offsetting criteria of IAS 32, whereby the financial assets and financial liabilities were offset and reported on a net basis in the balance sheet. Details of the offset as of September 30, 2021 were as follows:

September 30, 2021

	September 30, 2021
Description Bank deposits / bank loans	Gross amount of recognized financial assets and liabilities $ 2,652,514	Gross amount of recognized financial assets and liabilities offset in the balance sheet 2,652,514	Net amount of financial assets and liabilities presented in the balance sheet
			-

(16) Long-term Borrowings

Bank or agent bank Syndicated loans: Bank of Taiwan and others Bank of Taiwan and others Bank of Taiwan and others Bank of China and others Unsecured loans Secured loans Less: transaction costs Less: current portion Unused credit facilities Interest rate range	Durations From Feb. 2019 to Feb. 2024 From Mar. 2019 to Apr. 2023 From May 2017 to Apr. 2021 From Nov. 2015 to Nov. 2023 From Apr. 2017 to Oct. 2025 From Apr. 2017 to Apr. 2032	September 30, 2021 $ 22,000,000 8,050,000 - 10,087,329 9,676,076 20,175,403 69,988,808 (436,569) 69,552,239 (25,218,210) $ 44,334,029 $ 101,820,763 0.75%~ 5.15%	December 31, 2020 42,000,000 23,000,000 6,000,000 15,988,750 11,004,462 18,915,341 116,908,553 (313,584) 116,594,969 (16,771,441) 99,823,528 54,131,575 0.75%~ 5.15%	September 30, 2020 42,000,000 23,000,000 8,000,000 18,482,404 10,680,924 17,459,292
				119,622,620 (330,236)
				119,292,384 (13,138,037)
				106,154,347
				54,165,575
				0.75%~ 5.15%

These credit facilities contain covenants that require the Company to maintain certain financial ratios, calculating based on the Company’ s annual audited consolidated financial statements prepared in accordance with IFRSs endorsed and issued into effect by the FSC, such as current ratio, leverage ratio, interest coverage ratio, tangible net worth and others as specified in the loan agreements. As of September 30, 2021, December 31, 2020 and September 30, 2020, the Company complied with all financial covenants required under each of the loan agreements.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Refer to Note 8 for assets pledged as collateral to secure the aforementioned long-term borrowings. For other relevant information, refer to Note 6(14) of the consolidated financial statements for the year ended December 31, 2020.

(17) Provisions

Balance at January 1, 2021 Additions (Reversals) Usage Effect of change in consolidated entities Effect of change in exchange rate Balance at September 30, 2021 Less: current Noncurrent Balance at January 1, 2020 Additions (Reversals) Usage Effect of change in exchange rate Balance at September 30, 2020 Less: current Noncurrent Current Noncurrent Balance at December 31, 2020	Warranties(i) $ 1,375,327 330,405 (467,856) - (525) 1,237,351 (494,773) $ 742,578 $ 1,292,246 242,710 (221,444) 25 1,313,537 (535,576) $ 777,961 $ 568,411 806,916 $ 1,375,327	Litigation, claims and others 410,429 3,391 (34,987) 8,555 (6,038) 381,350 (143,874) 237,476 469,312 - (32,226) (13,503) 423,583 (184,106) 239,477 176,243 234,186 410,429	Total 1,785,756 333,796 (502,843) 8,555 (6,563) 1,618,701 (638,647) 980,054 1,761,558 242,710 (253,670) (13,478) 1,737,120 (719,682) 1,017,438 744,654 1,041,102 1,785,756

(i) The provisions for warranties were estimated based on historical experience of warranty claims rate associated with similar products and services. The Company expects most warranty claims will be made within two years from the date of the sale of the product.

(18) Employee Benefits
a. Defined benefit plans

Subsequent to December 31, 2020, there was no significant market volatility, significant curtailment, reimbursement and settlement or other significant one-time events. Therefore, the pension cost in the consolidated interim financial statements was measured and disclosed by the Company according to the pension cost valued by actuary as of December 31, 2020 and 2019.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

For the three months and nine months ended September 30, 2021 and 2020, the Company set aside $1,642 thousand, $2,178 thousand, $4,965 thousand and $6,532 thousand, respectively, of the pension costs under the defined benefit plans.

b. Defined contribution plans

AUO and its subsidiaries in the ROC have set up defined contribution plans in accordance with the ROC Labor Pension Act. For the three months and nine months ended September 30, 2021 and 2020, these companies set aside $249,214 thousand, $234,746 thousand, $722,504 thousand and $702,953 thousand, respectively, of the pension costs under the pension plan to the ROC Bureau of the Labour Insurance. Except for the aforementioned companies, other foreign subsidiaries recognized pension expenses of $197,096 thousand, $127,042 thousand, $594,771 thousand and $397,578 thousand for the three months and nine months ended September 30, 2021 and 2020, respectively, for the defined contribution plans based on their respective local government regulations.

(19) Capital and Other Components of Equity

a. Common stock

AUO’ s authorized common stock, with par value of $10 per share, all amounted to $100,000,000 thousand as at September 30, 2021, December 31, 2020 and September 30, 2020.

AUO’s issued common stock, with par value of $10 per share, all amounted to $96,242,451 thousand as at September 30, 2021, December 31, 2020 and September 30, 2020.

As of September 30, 2021, AUO has issued 25,022 thousand ADSs, which were trading on the OTC market and represented 250,222 thousand shares of its common stock.

b. Capital surplus

The components of capital surplus were as follows:

September 30, 2021 From common stock $ 52,756,091 From convertible bonds 6,049,862 From others 2,389,409 $ 61,195,362	December 31, 2020 52,756,091 6,049,862 1,781,731 60,587,684	September 30, 2020
		52,756,091 6,049,862 1,770,867
		60,576,820

According to the ROC Company Act, capital surplus, including premium from stock issuing and donations received, may be used to offset a deficit. When a company has no deficit, such capital surplus may be distributed by issuing common stock as stock dividends or by cash according to the proportion of shareholdings. Pursuant to the ROC Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the total sum of capital surplus capitalized per annum shall not exceed 10 percent of the paid-in capital.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

c. Retained earnings and dividend policy

The amendments to AUO’ s Articles of Incorporation had been approved by AUO’ s shareholders in its meeting held on June 14, 2019. Pursuant to the amendments, the distribution of earnings by way of cash dividends should be approved by AUO’s Board of Directors and reported to AUO’s shareholders in its meeting.

In accordance with AUO’ s Articles of Incorporation, after payment of income taxes and offsetting accumulated deficits, the legal reserve shall be set aside until the accumulated legal reserve equals AUO’ s paid-in capital. In addition, a special reserve in accordance with applicable laws and regulations shall also be set aside or reversed. The remaining current-year earnings together with accumulated undistributed earnings from preceding years can be distributed according to relevant laws and AUO’s Articles of Incorporation.

Legal reserve may be used to offset a deficit. When the Company incurs no loss, it may distribute its legal reserve by issuing new shares or by cash in accordance with the proportion of shareholdings for the portion in excess of 25% of the paid-in capital.

AUO’s dividend policy is to pay dividends from surplus considering factors such as AUO’s current and future investment environment, cash requirements, domestic and overseas competitive conditions and capital budget requirements, while taking into account shareholders’ interest, maintenance of balanced dividend and AUO’s long-term financial plan. If the current-year retained earnings available for distribution reach 2% of the paid-in capital of AUO, dividend to be distributed shall be no less than 20% of the current-year retained earnings available for distribution. If the current-year retained earnings available for distribution do not reach 2% of the paid-in capital of AUO, AUO may decide not to distribute dividend. The cash portion of the dividend, which may be in the form of cash and stock, shall not be less than 10% of the total dividend distributed during the year. The dividend distribution ratio aforementioned could be adjusted after taking into consideration factors such as finance, business and operations, etc.

Pursuant to relevant laws or regulations or as requested by the local authority, total net debit balance of the other components of equity shall be set aside from current earnings as special reserve, and not for distribution. Subsequent decrease pertaining to items that are accounted for as a reduction to the other components of equity shall be reclassified from special reserve to undistributed earnings.

AUO’ s annual shareholders’ meeting held on June 17, 2020 resolved to set aside a special reserve of $1,157,614 thousand and not to distribute dividends for 2019.

The aforementioned appropriation of earnings for 2019 was consistent with the resolutions of the Board of Directors’ meeting held on March 20, 2020.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AUO’s appropriations of earnings for 2020 have been approved in the shareholders’ meeting held on August 19, 2021. The appropriations were as follows:

Legal reserve Special reserve Cash dividends to shareholders	Appropriation of earnings Dividends per share (NT$) $ 735,456 1,264,919 2,850,967 0.30 $ 4,851,342

The aforementioned appropriation of earnings for 2020 was consistent with the resolutions of the Board of Directors’ meeting held on March 16, 2021.

Information on the approval of Board of Directors and shareholders for AUO’s appropriations of earnings are available at the Market Observation Post System website.

d. Treasury shares

AUO repurchased 125,000 thousand shares as treasury shares transferred to employees in accordance with Securities and Exchange Act requirements. The related information on treasury share transactions was as follows (shares in thousands):

Nine Months Ended September 30, 2021

Nine Months Ended September 30, 2021	Nine Months Ended September 30, 2021	Nine Months Ended September 30, 2021	Nine Months Ended September 30, 2021
Reason for reacquisition Number of shares, Beginning of Period Additions Transfer Number of shares, End of Period Transferring to employees 125,000 - 70,801 54,199 Nine Months Ended September 30, 2020
Reason for reacquisition Transferring to employees	Number of shares, Beginning of Period 125,000	Additions -	Transfer Number of shares, End of Period - 125,000

In accordance with the Securities and Exchange Act, treasury shares held by AUO shall not be pledged, and do not hold any shareholder rights before their transfer.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

e. Other components of equity

Balance at January 1, 2021 Foreign operations – foreign currency translation differences Net change in fair value of financial assets at FVTOCI Equity-accounted investees – share of other comprehensive income Cumulative unrealized gain of equity instruments transferred to retained earnings due to disposal Realized loss on sales of securities reclassified to profit or loss Related tax Balance at September 30, 2021 Balance at January 1, 2020 Foreign operations – foreign currency translation differences Net change in fair value of financial assets at FVTOCI Equity-accounted investees – share of other comprehensive income Cumulative unrealized loss of equity instruments transferred to retained earnings due to disposal Related tax Balance at September 30, 2020	Cumulative translation differences $ (3,206,520) (1,224,858) - (137,298) - 183,982 191,099 $ (4,193,595) $ (3,129,982) (882,207) - (34,513) - 172,033 $ (3,874,669)	Unrealized gains (losses) on financial assets at FVTOCI (63,783) - (29,579) (611,278) (19,994) - - (724,634) 1,124,598 - (967,052) (1,654) 73 - 155,965	Total (3,270,303) (1,224,858) (29,579) (748,576) (19,994) 183,982 191,099 (4,918,229) (2,005,384) (882,207) (967,052) (36,167) 73 172,033 (3,718,704)

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

f. Non-controlling interests, net of tax

Balance at beginning of the period Equity attributable to non-controlling interests: Profit (loss) for the period Foreign currency translation differences, net of tax Acquisition of subsidiaries Subsidiaries capital return and cash dividends Subsidiaries capital increase and others Balance at end of the period	Nine Months Ended September 30, 2021 2020 $ 10,985,674 11,304,909 992,560 (911,454 (140,308) (90,235 887,129 - (251,415) - 35,913 (1 $ 12,509,553 10,303,219	Nine Months Ended September 30, 2021 2020 $ 10,985,674 11,304,909 992,560 (911,454 (140,308) (90,235 887,129 - (251,415) - 35,913 (1 $ 12,509,553 10,303,219
	2021 $ 10,985,674 992,560 (140,308) 887,129 (251,415) 35,913 $ 12,509,553
		11,304,909 (911,454 (90,235 - - (1
		10,303,219

(20) Share-based Payments
a. Employee treasury shares plan

AUO granted the treasury shares to eligible employees, including those of AUO and its subsidiaries in accordance with the relevant plan. The key terms and conditions related to the grants were disclosed as follows:

Grant date Total shares granted Contract term Grant object Vesting conditions	Plan 1 Plan 2 February 18, 2021 August 16, 2021~August 24, 2021 3,978 thousand shares 66,823 thousand shares - - Employees Employees Vest immediately Vest immediately

The fair value of the share-based payments granted by AUO was measured at the date of grant using the Black Scholes option pricing model. For the three months and nine months ended September 30, 2021, the related compensation costs recognized for the abovementioned plan amounted to $787,572 thousand and $826,705 thousand, respectively.

b. Employee restricted stock plan

As of September 30, 2021, information about the share-based payment rewards plan that ADHLD, a subsidiary of AUO, granted to its subsidiary employees was as follows:

Plan Grant date Granted units Vesting conditions
Employee restricted stock plan April 1, 2021 850,000 Note
Note: Employees are granted restricted stocks without consideration, and are eligible to vest
100% of 250,000 units when they provide two years of service subsequent to the grant
date. Further employees who provide two years and five years of service, respectively,
subsequent to the grant date as well as fulfill specific performance conditions are eligible
to vest 40% and 60% of 600,000 units, respectively.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

ADCM’s special shares without voting right which are held by AUO are the subject for the execution of the aforementioned plan. According to the relevant plan, one special share without voting right of ADCM represents one common share right of ADHLD.

The weighted average fair value per share estimated using the income approach for the abovementioned plan was USD1.105. The weighted average cost of capital which is the principal parameter was between 18.1% and 20.1%. For the three months and six months ended September 30, 2021, the compensation costs recognized for the abovementioned plan amounted to $2,113 thousand and $2,909 thousand, respectively.

(21) Revenue from Contracts with Customers
a. Disaggregation of revenue

Three Months Ended September 30, 2021 Display segment Energy segment Total segments $ 28,904,784 403,027 29,307,811 31,763,929 1,621,922 33,385,851 14,548,835 - 14,548,835 6,112,119 23,769 6,135,888 14,878,543 798,058 15,676,601 $ 96,208,210 2,846,776 99,054,986 $ 21,378,467 - 21,378,467 17,678,153 - 17,678,153 30,106,187 - 30,106,187 7,651,712 - 7,651,712 13,470,568 - 13,470,568 5,923,123 2,846,776 8,769,899 $ 96,208,210 2,846,776 99,054,986 $ 10,934,817 - 10,934,817 85,273,393 2,846,776 88,120,169 $ 96,208,210 2,846,776 99,054,986	Three Months Ended September 30, 2021 Display segment Energy segment Total segments $ 28,904,784 403,027 29,307,811 31,763,929 1,621,922 33,385,851 14,548,835 - 14,548,835 6,112,119 23,769 6,135,888 14,878,543 798,058 15,676,601 $ 96,208,210 2,846,776 99,054,986 $ 21,378,467 - 21,378,467 17,678,153 - 17,678,153 30,106,187 - 30,106,187 7,651,712 - 7,651,712 13,470,568 - 13,470,568 5,923,123 2,846,776 8,769,899 $ 96,208,210 2,846,776 99,054,986 $ 10,934,817 - 10,934,817 85,273,393 2,846,776 88,120,169 $ 96,208,210 2,846,776 99,054,986	Three Months Ended September 30,	Three Months Ended September 30,	Three Months Ended September 30,
	2021		2020
Display segment $ 28,904,784 31,763,929 14,548,835 6,112,119 14,878,543 $ 96,208,210 $ 21,378,467 17,678,153 30,106,187 7,651,712 13,470,568 5,923,123 $ 96,208,210 $ 10,934,817 85,273,393 $ 96,208,210	Energy segment 403,027 1,621,922 - 23,769 798,058 2,846,776 - - - - - 2,846,776 2,846,776 - 2,846,776 2,846,776	Display segment 25,554,834 22,603,179 10,892,390 4,965,406 6,943,837 70,959,646 18,818,671 11,967,545 21,746,137 5,820,916 8,804,130 3,802,247 70,959,646 8,725,120 62,234,526 70,959,646	Energy segment 94,196 1,172,032 - 98,924 905,199 2,270,351 - - - - - 2,270,351 2,270,351 - 2,270,351 2,270,351	Total segments
				25,649,030 23,775,211 10,892,390 5,064,330 7,849,036
				73,229,997
				18,818,671 11,967,545 21,746,137 5,820,916 8,804,130 6,072,598
				73,229,997
				8,725,120 64,504,877
				73,229,997

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Nine Months Ended September 30, 2021 Display segment Energy segment Total segments $ 88,052,046 710,934 88,762,980 86,958,376 4,919,754 91,878,130 43,918,736 1,845 43,920,581 17,318,083 158,551 17,476,634 33,398,688 2,214,092 35,612,780 $ 269,645,929 8,005,176 277,651,105 $ 69,312,554 - 69,312,554 48,376,638 - 48,376,638 79,796,191 - 79,796,191 21,610,365 - 21,610,365 34,367,747 - 34,367,747 16,182,434 8,005,176 24,187,610 $ 269,645,929 8,005,176 277,651,105 $ 28,962,785 - 28,962,785 240,683,144 8,005,176 248,688,320 $ 269,645,929 8,005,176 277,651,105	Nine Months Ended September 30, 2021 Display segment Energy segment Total segments $ 88,052,046 710,934 88,762,980 86,958,376 4,919,754 91,878,130 43,918,736 1,845 43,920,581 17,318,083 158,551 17,476,634 33,398,688 2,214,092 35,612,780 $ 269,645,929 8,005,176 277,651,105 $ 69,312,554 - 69,312,554 48,376,638 - 48,376,638 79,796,191 - 79,796,191 21,610,365 - 21,610,365 34,367,747 - 34,367,747 16,182,434 8,005,176 24,187,610 $ 269,645,929 8,005,176 277,651,105 $ 28,962,785 - 28,962,785 240,683,144 8,005,176 248,688,320 $ 269,645,929 8,005,176 277,651,105	Nine Months Ended September 30,	Nine Months Ended September 30,	Nine Months Ended September 30,
	2021		2020
Display segment $ 88,052,046 86,958,376 43,918,736 17,318,083 33,398,688 $ 269,645,929 $ 69,312,554 48,376,638 79,796,191 21,610,365 34,367,747 16,182,434 $ 269,645,929 $ 28,962,785 240,683,144 $ 269,645,929	Energy segment 710,934 4,919,754 1,845 158,551 2,214,092 8,005,176 - - - - - 8,005,176 8,005,176 - 8,005,176 8,005,176	Display segment 62,537,431 60,343,461 29,951,902 13,225,081 17,845,299 183,903,174 49,025,910 28,891,615 55,162,111 15,649,976 25,921,961 9,251,601 183,903,174 24,717,383 159,185,791 183,903,174	Energy segment 153,079 3,537,354 - 401,757 2,424,997 6,517,187 - - - - - 6,517,187 6,517,187 - 6,517,187 6,517,187	Total segments
				62,690,510 63,880,815 29,951,902 13,626,838 20,270,296
				190,420,361
				49,025,910 28,891,615 55,162,111 15,649,976 25,921,961 15,768,788
				190,420,361
				24,717,383 165,702,978
				190,420,361

(i) Displays for public information that previously included in products for televisions were reclassified to products for PID and general display.

(ii) Including displays for public information and general utilization.

(iii) Including sales of solar-related products, raw materials and components and from products for other applications and service charges.

b. Contract balances

Contract assets`－`current (recorded in other current financial assets)	September 30, 2021 $ 403,592	December 31, 2020 145,558	September 30, 2020
			82,474

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Contract liabilities`－`current (recorded in other current liabilities) Contract liabilities`－`noncurrent	September 30, 2021 $ 725,803 9,989,990 $ 10,715,793	December 31, 2020 455,551 - 455,551	September 30, 2020
			853,602 -
			853,602

The amounts of revenue recognized for the three months and nine months ended September 30, 2021 and 2020 that previously included in the contract liability balance at the beginning of the period were $3,095 thousand, $12,402 thousand, $256,666 thousand and $471,302 thousand, respectively. Additionally, in the first quarter of 2021, AUO entered into long-term sales agreements with customers and has received payments in advance. Under the agreements, the customers should fulfill the requirement of minimum order quantity and AUO should fulfill the obligation of relevant delivery quantity as agreed. AUO accounted for such obligation as contract liabilities.

(22) Remuneration to Employees and Directors

According to AUO’s Articles of Incorporation, AUO should distribute remuneration to employees and directors no less than 5% and no more than 1% of annual profits before income tax, respectively, after offsetting accumulated deficits, if any. Only employees, including employees of affiliate companies that meet certain conditions are entitled to the abovementioned remuneration which to be distributed in stock or cash. The said conditions and distribution method are decided by Board of Directors or the personnel authorized by Board of Directors.

AUO accrued remuneration to employees based on the profit before income tax excluding the remuneration to employees and directors for the period, multiplied by the percentage resolved by Board of Directors. For the three months and nine months ended September 30, 2021, AUO estimated the remuneration to employees amounting to $1,999,267 thousand and $5,253,093 thousand, respectively. Remuneration to directors was estimated based on the amount expected to pay and recognized together with the remuneration to employees as cost of sales or operating expenses. AUO did not accrue remuneration to employees and directors due to the loss position for the nine months ended September 30, 2020. If remuneration to employees is resolved to be distributed in stock, the number of shares is determined by dividing the amount of remuneration by the closing price of the shares (ignoring ex-dividend effect) on the day preceding the Board of Directors’ meeting. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are accounted for as a change in accounting estimate and adjusted prospectively to next year’s profit or loss.

Remuneration to employees and directors for 2020 in the amounts of $253,493 thousand and $8,275 thousand, respectively, in cash for payment had been approved in the meeting of Board of Directors held on March 16, 2021. The aforementioned approved amounts are the same as the amounts charged against earnings of 2020.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

The information about AUO’s remuneration to employees and directors is available at the Market Observation Post System website.

(23) Additional Information of Expenses by Nature

	Three Months Ended September 30,	Three Months Ended September 30,	Three Months Ended September 30,	Three Months Ended September 30,
	2021	2020 Total Recognized in cost of sales Recognized in operating expenses Total 10,480,275 5,362,662 1,774,207 7,136,869 504,169 340,619 120,938 461,557 447,952 276,415 87,551 363,966 1,895,017 768,324 141,756 910,080 8,339,765 7,463,847 1,221,273 8,685,120 51,528 56,834 3,888 60,722 Months Ended September 30,		2020
Recognized in cost of sales $ 8,040,938 361,305 338,321 941,001 7,252,968 46,293	Recognized in operating expenses 2,439,337 142,864 109,631 954,016 1,086,797 5,235 Nine
	2021	Total 32,105,436 1,487,376 1,322,240 4,126,161 25,294,200 155,961		2020
Recognized in cost of sales $23,141,949 1,074,773 1,010,211 2,824,737 21,905,391 142,287	Recognized in operating expenses 8,963,487 412,603 312,029 1,301,424 3,388,809 13,674		Recognized in cost of sales 16,864,253 1,022,354 843,113 2,294,274 22,896,292 210,547	Recognized in operating expenses Total 5,582,003 22,446,256 362,395 1,384,749 263,950 1,107,063 400,691 2,694,965 3,565,406 26,461,698 6,373 216,920

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(24) Non-Operating Income and Expenses

a. Interest income

Three Months Ended September 30, 2021 2020(i) $ 98,348 109,628 11 (61) $ 98,359 109,567	Nine Months Ended September 30,	Nine Months Ended September 30,
2021 $ 98,348 11 $ 98,359	2021 329,097 41 329,138	2020
		401,438 10,977
		412,415

(i) Including the effect of exchange rate conversion.

b. Other income

Rental income, net Dividend income Grants Others Other gains and losses Foreign exchange gains (losses), net Gains (losses) on valuation of financial instruments at FVTPL, net Gains on disposals of property, plant and equipment, net Gains (losses) on disposals of investments and financial assets, net Others	Three Months Ended September 30, 2021 2020 $ 149,381 126,942 5,478 261,382 68,734 585,668 60,343 118,302 $ 283,936 1,092,294 Three Months Ended September 30, 2021 2020 $ 205,404 (189,111) (136,817) 136,533 8,812 32,863 6,846 (1) (5,784) (10,923) $ 78,461 (30,639)	Nine Months Ended September 30, 2021 2020 424,157 353,165 5,478 261,382 175,214 1,299,499 257,861 426,010 862,710 2,340,056 Nine Months Ended September 30, 2021 2020 138,130 (369,271) (418,032) 402,347 35,954 67,720 893,435 161 (94,193) (29,007) 555,294 71,950
	2021 $ 205,404 (136,817) 8,812 6,846 (5,784) $ 78,461	2021 138,130 (418,032) 35,954 893,435 (94,193) 555,294

c. Other gains and losses

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

d. Finance costs

Three Months Ended September 30, 2021 2020 $ 446,263 628,657 45,133 48,191 15,289 22,277 16,214 17,732 $ 522,899 716,857	Nine Months Ended September 30,	Nine Months Ended September 30,
2021 $ 446,263 45,133 15,289 16,214 $ 522,899	2021 1,563,266 137,638 47,399 60,803 1,809,106	2020
		1,986,311 135,624 65,962 58,982
		2,246,879

(25) Income Taxes

The Company cannot file a consolidated tax return under local regulations. Therefore, AUO and its subsidiaries calculate their income taxes liabilities individually on a stand-alone basis using the enacted tax rates in their respective tax jurisdictions.

Income tax expense is best estimated by multiplying pre-tax income (loss) of the interim period by a projected annual effective tax rate as forecasted by the management.

The components of income tax expense were as follows:

Current income tax expense: Current year Adjustment to prior years and others	Three Months Ended September 30, 2021 2020 $ 923,467 82,559 3,423 (13,982) $ 926,890 68,577	Nine Months Ended September 30, 2021 2020 2,638,208 410,540 43,778 (11,625) 2,681,986 398,915
	2021 $ 923,467 3,423 $ 926,890	2021 2,638,208 43,778 2,681,986

Income taxes expense (benefit) recognized directly in other comprehensive income were as follows:

Items that are or may be reclassified subsequently to profit or loss: Foreign operations – foreign currency translation differences	Three Months Ended September 30, 2021 2020 $ 26,353 136,829	Nine Months Ended September 30, 2021 2020 (207,115) (183,624)
	2021 $ 26,353	2021 (207,115)

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

As of September 30, 2021, the tax authorities have completed the examination of income tax returns of AUO through 2019.

(26) Earnings (loss) per Share

Basic earnings (loss) per share Profit (loss) attributable to AUO’s shareholders Weighted-average number of common shares outstanding during the period Basic earnings (loss) per share (NT$) Diluted earnings (loss) per share Profit (loss) attributable to AUO’s shareholders $ Weighted-average number of common shares outstanding during the period Effect of employee remuneration in stock Diluted earnings (loss) per share (NT$) $	Three Months Ended September 30, 2021 2020 $ 19,310,255 2,893,732 9,514,844 9,499,245 $ 2.03 0.30 19,310,255 2,893,732 9,514,844 9,499,245 113,273 - 9,628,117 9,499,245 2.01 0.30	Nine Months Ended September 30, 2021 2020 50,675,294 (5,058,790) 9,506,076 9,499,245 5.33 (0.53) 50,675,294 (5,058,790) 9,506,076 9,499,245 301,360 - 9,807,436 9,499,245 5.17 (0.53)
	2021 $ 19,310,255 9,514,844 $ 2.03 19,310,255 9,514,844 113,273 9,628,117 2.01	2021 50,675,294 9,506,076 5.33 50,675,294 9,506,076 301,360 9,807,436 5.17

Since AUO incurred net loss for the nine months ended September 30, 2020, there were no potential ordinary shares with dilutive effect for the period.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(27) Cash Flow Information

The reconciliation of liabilities to cash flows arising from financing activities was as follows:

Balance at January 1, 2021 Cash flows Non-cash changes: Addition Effect of change in consolidated entities Changes in exchange rate and others Balance at September 30, 2021 Balance at January 1, 2020 Cash flows Non-cash changes: Addition Changes in exchange rate and others Balance at September 30, 2020	Long-term borrowings (including current installments) $ 116,594,969 (47,985,541) - 1,149,806 (206,995) $ 69,552,239 $ 111,968,392 7,722,525 - (398,533) $ 119,292,384	Short-term borrowings 200,000 (170,000) - - - 30,000 1,725,602 (1,614,611) - (10,991) 100,000	Guarantee deposits 864,868 (25,282) - - (55,556) 784,030 785,456 (1,197) - 9,738 793,997	Lease liabilities 10,297,272 (416,791) 44,246 617 (136,712) 9,788,632 11,091,077 (450,150) 106,182 (283,552) 10,463,557	Total liabilities from financing activities 127,957,109 (48,597,614) 44,246 1,150,423 (399,263) 80,154,901 125,570,527 5,656,567 106,182 (683,338) 130,649,938

(28) Financial Instruments

a. Fair value and carrying amount

The carrying amounts of the Company’s current non-derivative financial instruments, including financial assets and financial liabilities at amortized cost, were considered to approximate their fair value due to their short-term nature. This methodology applies to cash and cash equivalents, receivables or payables (including related parties), other current financial assets, and short-term borrowings.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Disclosures of fair value are not required for the financial instruments abovementioned and lease liabilities. Other than those, the carrying amount and fair value of other financial instruments of the Company as of September 30, 2021, December 31, 2020 and September 30, 2020 were as follows:

2020 were as follows:
Financial assets: Financial assets at FVTPL: Financial assets mandatorily measured at FVTPL Financial assets at FVTOCI Financial assets at amortized cost: Domestic and foreign time deposits Refundable deposits Financial liabilities: Financial liabilities at FVTPL: Financial liabilities held for trading Financial liabilities at amortized cost: Long-term borrowings (including current installments) Guarantee deposits Long-term payables (including current installments)	September	30, 2021 December 31, 2020 September 30, 2020 Fair Value Carrying Amount Fair Value Carrying Amount Fair Value 38,873 668,058 668,058 1,485,597 1,485,597 738,513 622,824 622,824 6,597,877 6,597,877 10,265,344 - - - - 1,015,595 432,202 432,202 505,024 505,024 246,582 170,956 170,956 39,726 39,726 69,552,239 116,594,969 116,594,969 119,292,384 119,292,384 784,030 864,868 864,868 793,997 793,997 1,404,990 309,900 309,900 309,900 309,900	September 30, 2020
	Carrying Amount $ 38,873 738,513 10,265,344 1,015,595 246,582 69,552,239 784,030 1,404,990

b. Valuation techniques and assumptions applied in fair value measurement

The fair values of financial assets and financial liabilities with standard terms and conditions and traded in active markets are determined with reference to quoted market prices. The fair values of other financial assets and financial liabilities without quoted market prices are estimated using valuation approach. The estimates and assumptions used are the same as those used by market participants in the pricing of financial instruments.

Fair value of foreign currency forward contract is measured based on the maturity date of each contract with quoted spot rate and quoted swap points from Reuters quote system.

Fair value of structured investment product is measured based on the discounted future cash flows arising from principal consideration and probable gains estimate to be received.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

For domestic and foreign time deposits, their fair value approximate to their carrying amount.

Fair value of long-term payable, which approximates to its carrying value is determined by discounting the expected cash flows at a market interest rate.

The refundable deposits and guarantee deposits are based on carrying amount as there is no fixed maturity.

The fair value of floating-rate long-term borrowings approximates to their carrying value.

c.
Fair value measurements recognized in the consolidated balance sheets

The Company determines fair value based on assumptions that market participants would use in pricing an asset or a liability in the principal market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:

(i) Level 1 inputs: Unadjusted quoted prices for identical assets or liabilities in active markets.
(ii) Level 2 inputs: Other than quoted prices included within Level 1, inputs are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
(iii) Level 3 inputs: Derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair value measurement level of an asset or a liability within their fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

September 30, 2021 Financial assets at FVTPL: Financial assets mandatorily measured at FVTPL Financial assets at FVTOCI Financial assets at amortized cost: Domestic and foreign time deposits Financial liabilities at FVTPL: Financial liabilities held for trading Financial liabilities at amortized cost: Long-term payables (including current installments)	Level 1 $ - 153,158 - - -	Level 2 38,873 - 10,265,344 246,582 1,404,990	Level 3 Total - 38,873 585,355 738,513 - 10,265,344 - 246,582 - 1,404,990

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

December 31, 2020 Financial assets at FVTPL: Financial assets mandatorily measured at FVTPL Financial assets at FVTOCI Financial liabilities at FVTPL: Financial liabilities held for trading Financial liabilities at amortized cost: Long-term payables (including current installments) September 30, 2020 Financial assets at FVTPL: Financial assets mandatorily measured at FVTPL Financial assets at FVTOCI Financial liabilities at FVTPL: Financial liabilities held for trading Financial liabilities at amortized cost: Long-term payables (including current installments)	Level 1 $ - 294,668 - - $ - 6,389,449 - -	Level 2 668,058 - 170,956 309,900 1,485,597 - 39,726 309,900	Level 3 Total - 668,058 328,156 622,824 - 170,956 - 309,900 - 1,485,597 208,428 6,597,877 - 39,726 - 309,900

There were no transfers between Level 1 and 2 for the nine months ended September 30, 2021 and 2020.

d. Reconciliation for fair value measurements categorized within Level 3

Financial assets at FVTOCI`－`equity instruments without active market Balance at beginning of the period Purchases Reclassification Effect of exchange rate change Balance at end of the period	Nine Months Ended September 30,	Nine Months Ended September 30,	Nine Months Ended September 30,
	2021		2020
	$ 328,156 223,296 34,280 (377) $ 585,355		188,670 20,000 - (242)
			208,428

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

e. Description of valuation processes and quantitative disclosures for fair value measurements categorized within Level 3

The Company’s management reviews the policy and procedures of fair value measurements at least once at the end of the annual reporting period, or more frequently as deemed necessary. When a fair value measurement involves one or more significant inputs that are unobservable, the Company monitors the valuation process discreetly and examines whether the inputs are used the most relevant market data available.

Item Financial assets at FVTOCI–equity instruments without active market	Valuation technique Market approach	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement `•`Price-Book ratio (September 30, 2021 at 0.99~2.31, December 31, 2020 at 1.01~2.64 and September 30, 2020 at 0.92~2.65) `•`Price-Earnings ratio (September 30, 2021 at 8.92~22.38, December 31, 2020 at 12.95~24.99 and September 30, 2020 at 12.21~24.76) `•`Discount for lack of marketability (September 30, 2021 at 20%~32% and December 31, 2020 at 20%~30% and September 30, 2020 at 20%~36%) `•`The higher the price- book ratio is, the higher the fair value is. `•`The higher the price- earnings ratio is, the higher the fair value is. `•`The greater degree of lack of marketability is, the lower the fair value is.

(29) Financial Risk Management

Except as described below, both the goals and policies of the Company’s financial risk management and the Company’ s exposure to credit risk, liquidity risk and market risk were not materially different from those disclosed in Note 6(27) of the consolidated financial statements for the year ended December 31, 2020.

Refer to Note 6(5) for the information about credit risk exposure for notes and accounts receivable.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

a. Currency risk

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

Fi	nancial assets Monetary items USD JPY EUR Non-monetary item	September 30, 202	September 30, 202	De	cember 31, 202	September 30, 2020	September 30, 2020
		Foreign currency amounts $ 3,354,115 12,089,720 52,473 s 14,579 1,912,890 20,508,606 154	Exchange rate 27.8660 0.2504 32.2716 27.8660 27.8660 0.2504 32.2716	Foreign currency amounts 2,380,316 11,404,938 32,931 6,657 1,620,121 20,631,647 51	Exchange rate 28.5070 0.2763 35.0494 28.5070 28.5070 0.2763 35.0494	Foreign currency amounts 2,119,342 12,208,142 26,458 1,674 1,546,586 20,643,798 150	Exchange rate NTD 29.1510 61,780,939 0.2759 3,368,226 34.2291 905,634 29.1510 48,799 29.1510 45,084,528 0.2759 5,695,624 34.2291 5,134
Fi
	USD nancial liabilities Monetary items USD JPY EUR

b. Sensitivity analysis

The Company’ s exposure to foreign currency risk arises mainly from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, trade receivables, loans and borrowings and trade payables that are denominated in foreign currency. Depreciation or appreciation of the NTD by 1% against the USD, EUR and JPY at September 30, 2021 and 2020, while all other variables were remained constant, would have increased or decreased the net profit before tax for the nine months ended September 30, 2021 and 2020 as follows:

1% of depreciation 1% of appreciation	Nine Months Ended September 30, 2021 2020 $ 397,415 152,695 (397,415) (152,695)

c.

Foreign exchange gain (loss) on monetary items

With varieties of functional currencies within the Company, the Company disclosed foreign exchange gain (loss) on monetary items in aggregate. The aggregate of realized and unrealized foreign exchange gains (losses) for the three months and nine months ended September 30, 2021 and 2020 were $205,404 thousand, $(189,111) thousand, $138,130 thousand and $(369,271) thousand, respectively.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(30) Capital Management

The objectives, policies and procedures of the Company’s capital management have been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2020. Also, there was no significant change in the Company’s capital management information as disclosed for the year ended December 31, 2020. Refer to Note 6(28) of the consolidated financial statements for the year ended December 31, 2020 for the relevant information.

7. Related-party Transactions

All inter-company transactions and balances between AUO and its subsidiaries have been eliminated upon consolidation, and therefore, are not disclosed in this note. The transactions between the Company and other related parties are set out as follows:

(1) Name and relationship of related parties

The following is a summary of related parties that have had transactions with the Company during the periods presented in the consolidated financial statements.

Name of related party	Relationship with the Company
ENNOSTAR Inc. (“Ennostar”)	Associate
Lextar Electronics Corporation (“Lextar”)	Subsidiary of Ennostar
TRENDYLITE CORPORATION (“TRENDYLITE”)	Subsidiary of Ennostar
Lextar Electronics (Suzhou) Co., Ltd. (“LESZ”)	Subsidiary of Ennostar
Lextar Electronics (Xiamen) Co., Ltd. (“LEXM”)	Subsidiary of Ennostar
Lextar Electronics (Chuzhou) Corp. (“LEXCZ”)	Subsidiary of Ennostar
Wellybond Corporation (“WBC”)	Subsidiary of Ennostar
Epistar Corporation (“Epistar”)	Subsidiary of Ennostar
Yenrich Technology Corporation (“Yenrich”)	Subsidiary of Ennostar
Raydium Semiconductor Corporation (“Raydium”)	Associate
Raydium Semiconductor (Kunshan) Co., Ltd. (“RKS”)	Subsidiary of Raydium
Star River Energy Corp. (“SREC”)	Associate(i)
Sungen Power Corporation (“SGPC”)	Subsidiary of SREC(i)
Evergen Power Corporation (“EGPC”)	Subsidiary of SREC(i)
Star Shining Energy Corporation (“SSEC”)	Associate
Fargen Power Corporation (“FGPC”)	Subsidiary of SSEC
Sheng Li Energy Corporation (“SLEC”)	Subsidiary of SSEC
ChampionGen Power Corporation (“CGPC”)	Subsidiary of SSEC
TronGen Power Corporation (“TGPC”)	Subsidiary of SSEC
Ri Ji Power Corporation (“RJPC”)	Subsidiary of SSEC
Ri Jing Power Corporation (“RGPC”)	Subsidiary of SSEC

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of related party Relationship with the Company Mao Zheng Energy Corporation (“MZEC”) Subsidiary of SSEC Mao Xin Energy Corporation (“MXEC”) Subsidiary of SSEC Sheng Feng Power Corporation (“SFPC”) Subsidiary of SSEC Sheng He Power Corporation (“SHPC”) Subsidiary of SSEC Sheng Yao Power Corporation (“SYPC”) Subsidiary of SSEC WishMobile, Inc. (“WMI”) Associate Daxin Materials Corp. (“Daxin”) Associate Darwin Summit Corporation Ltd. (“DSC”) Associate Ubitech Inc. (“Ubitech”) Associate[(v)] ADLINK Technology Inc. (“ADLINK”) Associate ADLINK Technology (China) Co., Ltd. (“ADLINKCN”) Subsidiary of ADLINK IRIS Optronics Co., Ltd. (“IOC”) Associate Evonik Forhouse Optical Polymers Corp. (“EFOP”) Joint venture WiBASE Industrial Solutions Inc. (“WIS”) DPTW represented as a director of WIS ToYou Display (Suzhou) Co., Ltd. (“TYSZ”) AUSZ represented as a director of TYSZ[(iii)] Qisda Corporation (“Qisda”) Associate[(ii)] Qisda Vietnam Co., Ltd (“QVH”) Subsidiary of Qisda BenQ Corporation (“BenQ”) Subsidiary of Qisda BenQ Materials Corp. (“BMC”) Subsidiary of Qisda Qisda (Suzhou) Co., Ltd. (“QCSZ”) Subsidiary of Qisda Qisda Electronics (Suzhou) Co., Ltd. (“QCES”) Subsidiary of Qisda Qisda Optronics (Suzhou) Co., Ltd. (“QCOS”) Subsidiary of Qisda Qisda Precision Industry (Suzhou) Co., Ltd. (“QCPS”) Subsidiary of Qisda BenQ Europe B.V. (“BQE”) Subsidiary of Qisda BenQ Asia Pacific Corp. (“BQP”) Subsidiary of Qisda BenQ America Corporation (“BQA”) Subsidiary of Qisda Mainteq Europe B.V. (“MQE”) Subsidiary of Qisda BenQ Co., Ltd. (“BQC”) Subsidiary of Qisda BenQ Technology (Shanghai) Co., Ltd. (“BQls”) Subsidiary of Qisda Guru Systems (Suzhou) Co., Ltd. (“GSS”) Subsidiary of Qisda BenQ GURU Corp. (“GST”) Subsidiary of Qisda BenQ Material (Suzhou) Co., Ltd. (“BMS”) Subsidiary of Qisda

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of related party Relationship with the Company BenQ Materials Medical Supplies (Suzhou) Co., Ltd. Subsidiary of Qisda (“BMM”) Suzhou BenQ Hospital Co., Ltd. (“QCHS”) Subsidiary of Qisda DFI Inc. (“DFI”) Subsidiary of Qisda Data Image Corporation (“DIC”) Subsidiary of Qisda Data Image (Suzhou) Corporation (“DICSZ”) Subsidiary of Qisda Partner Tech Corp. (“PTT”) Subsidiary of Qisda Webest Solution Corp. (“WEBEST”) Subsidiary of Qisda AEWIN Technologies Co., Ltd. (“AEW”) Subsidiary of Qisda Sysage Technology Co., Ltd. (“Sysage”) Subsidiary of Qisda ACE Pillar Co., Ltd. (“ACE”) Subsidiary of Qisda Tianjin ACE Pillar Co., Ltd. (“ACETJ”) Subsidiary of Qisda Golden Spirit Co., Ltd. (“GSC”) Subsidiary of Qisda LILY MEDICAL CORPORATION (“LILY”) Subsidiary of Qisda BenQ Medical Technology Corp. (“TMC”) Subsidiary of Qisda HITRON TECHNOLOGIES INC. (“HHC”) Subsidiary of Qisda ADVANCEDTEK INTERNATIONAL CORP. Subsidiary of Qisda (“ADVANCEDTEK”) Daxon Biomedical (Suzhou) Co., Ltd. (“DTB”) Subsidiary of Qisda AUO Foundation Substantive related party BenQ Foundation Substantive related party[(iv)] Jector Digital System Inc. (“JDSI”) The party which co-invests with ADP in Jector

(i) SREC and its subsidiaries were included in the Company’ s consolidated financial statements from January 2021. Refer to Note 6(8) for the relevant information.
(ii) The Company has accounted for the investment in Qisda using the equity method since December 31, 2020. Qisda and its subsidiaries are changed as the Company’s associates from the same date while previously they are categorized as other related parties. See Note 6(7) for the relevant information.
(iii) The Company sold part of its ownership interests in TYSZ in January 2021. After the disposal, the Company assessed and considered that it did not have significant influence over TYSZ; therefore, TYSZ was changed from associate to other related party.
(iv) BenQ Foundation is no longer a related party of the Company starting from the second quarter of 2021.
(v) The Company sold all of its ownership interests in Ubitech in July 2021. Therefore, Ubitech is no longer a related party of the Company starting from the date of disposal.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(2) Compensation to key management personnel

Key management personnel’s compensation comprised:

Three Months Ended September 30, 2021 2020 $ 30,195 28,248 324 556 - - $ 30,519 28,804	Nine Months Ended September 30,	Nine Months Ended September 30,
2021 $ 30,195 324 - $ 30,519	2021 90,186 1,164 17,276 108,626	2020
		87,380 1,766 -
		89,146

Please refer to Note 6(20) for further information on share-based payments.

(3) Except for otherwise disclosed in other notes to the consolidated financial statements, the Company’s significant related party transactions and balances were as follows:

a. Sales

Sales	Sales	Sales
Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 $ 2,615,118 79,025 9,579,961 432,411 - 5,843 - 7,428 1,138 3,157,847 1,407 7,872,521 $ 2,616,256 3,242,715 9,581,368 8,312,360 Accounts receivable from related parties September 30, 2021 December 31, 2020 September 30, 2020 $ 1,719,500 2,076,045 300,885 - 111 - 405 - 1,986,277 $ 1,719,905 2,076,156 2,287,162	Nine Months Ended September 30,
2021 $ 2,615,118 - 1,138 $ 2,616,256		2020
		432,411 7,428 7,872,521
		8,312,360
	December 31, 2020 2,076,045 111 - 2,076,156	September 30, 2020
		300,885 - 1,986,277
		2,287,162

The collection terms for sales to related parties were 25 to 55 days from the end of the month during which the invoice is issued. The pricing for sales to related parties were not materially different from those with third parties.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

b. Purchases

Purchases	Purchases	Purchases
Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 $ 6,848,199 2,101,267 19,988,869 5,963,291 263,142 273,260 714,058 649,777 16,321 4,293,296 25,295 12,065,530 $ 7,127,662 6,667,823 20,728,222 18,678,598 Accounts payable to related parties September 30, 2021 December 31, 2020 September 30, 2020 $ 8,238,065 7,297,560 2,864,716 - 5,232 20,808 4,123 - 4,071,729 $ 8,242,188 7,302,792 6,957,253	Nine Months Ended September 30,
2021 $ 6,848,199 263,142 16,321 $ 7,127,662		2020
		5,963,291 649,777 12,065,530
		18,678,598
	December 31, 2020 7,297,560 5,232 - 7,302,792	September 30, 2020
		2,864,716 20,808 4,071,729
		6,957,253

The payment terms for purchases from related parties were 30 to 120 days. The pricing and payment terms with related parties were not materially different from those with third parties.

c. Acquisition of property, plant and equipment

Acquisition prices	Acquisition prices	Acquisition prices
Three Months Ended September 30, 2021 2020 $ 19,541 4,361 656 1,397 $ 20,197 5,758	Nine Months Ended September 30,
2021 $ 19,541 656 $ 20,197	2021 26,227 656 26,883	2020
		8,761 11,400
		20,161

d. Disposal of property, plant and equipment and others

Proceeds from disposal	Proceeds from disposal	Proceeds from disposal
Three Months Ended September 30, 2021 2020 $ - 76 - 4,061 $ - 4,137	Nine Months Ended September 30,
2021 $ - - $ -	2021 - - -	2020
		34,927 4,061
		38,988

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Gains on disposal Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Others: QCES $ - 76 - 29,381 Others - 3,180 - 3,180 $ - 3,256 - 32,561 Other related party transactions Transaction type Type of related party September 30, 2021 December 31, 2020 September 30, 2020 Other receivables due from related parties Associates $ 9,075 7,053 594 Joint ventures - 4,502 5,542 Others 15 10,374 43,248 $ 9,090 21,929 49,384 Other payables due to related parties, Associates $ 23,972 24,254 20,269 including payables for equipment Others - 66 40,342 $ 23,972 24,320 60,611 Transaction Type of Three Months Ended September 30, Nine Months Ended September 30, type related party 2021(i) 2020 2021 2020 Rental income Associates: BMC $ 23,853 - 71,224 - Others 8,303 12,773 25,629 35,570 Joint ventures 1,654 1,653 4,959 4,959 Others: BMC - 23,691 - 71,108 Others (14) 5,883 3,717 8,978 $ 33,796 44,000 105,529 120,615	Gains on disposal	Gains on disposal	Gains on disposal
		Nine Months Ended September 30,
		2021 2020 - 29,381 - 3,180 - 32,561 December 31, 2020 September 30, 2020 7,053 594 4,502 5,542 10,374 43,248 21,929 49,384 24,254 20,269 66 40,342 24,320 60,611 Nine Months Ended September 30,	2020
			29,381 3,180
			32,561
			September 30, 2020
			594 5,542 43,248
			49,384
			20,269 40,342
			60,611
		2021 71,224 25,629 4,959 - 3,717 105,529	2020
			- 35,570 4,959 71,108 8,978
			120,615

e. Other related party transactions

(i) Including the effect of exchange rate conversion.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Type of related party	Three Months Ended September 30, 2021 2020 $ 8,334 4,660 50 4,982 $ 8,384 9,642 $ 28,167 22,809 23 - 2,200 13,215 $ 30,390 36,024	Nine Months Ended September 30,	Nine Months Ended September 30,
	2021 $ 8,334 50 $ 8,384 $ 28,167 23 2,200 $ 30,390	2021 15,141 50 15,191 71,069 23 2,233 73,325	2020
Associates Others Associates Joint ventures Others			19,954 6,899
			26,853
			62,229 - 49,201
			111,430

The Company leased portion of its facilities to related parties. The collection term was 15 days from quarter-end, and the pricing was not materially different from that with third parties.

From January to September 2021, the Company participated in WMI’ s capital increase by $15,000 thousand. For the nine months ended September 30, 2021 and 2020, the Company entitled for cash dividends declared by related parties of $914,117 thousand and $603,621 thousand, respectively. As of September 30, 2021, December 31, 2020 and September 30, 2020, the aforementioned dividends were all received.

8. Pledged Assets

The carrying amounts of the assets which the Company pledged as collateral were as follows:

Pledged assets Restricted cash in banks(i) Land and buildings Machinery and equipment Right-of-use assets	Pledged to secure September 30, 2021 Customs duties and guarantee for warranties $ 101,566 Long-term borrowings limit 50,193,936 Long-term borrowings limit 35,270,210 Long-term borrowings limit 79,126 $ 85,644,838	December 31, 2020 28,345 48,286,874 45,407,718 - 93,722,937	September 30, 2020
			30,913 48,592,169 49,231,542 -
			97,854,624

(i) Classified as other current financial assets and other noncurrent assets by its liquidity.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

9. Significant Contingent Liabilities and Unrecognized Commitments

The significant commitments and contingencies of the Company as of September 30, 2021, in addition to those disclosed in other notes to the consolidated financial statements, were as follows:

(1) Outstanding letters of credit

As at September 30, 2021, the Company had the following outstanding letters of credit for the purpose of purchasing machinery and equipment and materials:

		September 30,
		2021
	Currency	(in thousands)
USD		12,317
JPY		11,538,166
EUR		644

(2) Technology licensing agreements

Starting in 1998, AUO has entered into technical collaboration, patent licensing, and/or patent cross licensing agreements with Fujitsu Display Technologies Corp. (subsequently assumed by Fujitsu Limited), Toppan Printing Co., Ltd. (“Toppan Printing”), Semiconductor Energy Laboratory Co., Ltd., Japan Display Inc. (formerly Japan Display East Inc./Hitachi Displays, Ltd.), Panasonic Liquid Crystal Display Co., Ltd. (formerly IPS Alpha Technology, Ltd.), LG Display Co., Ltd., Sharp Corporation, Samsung Electronics Co., Ltd., Hydis Technologies Co., Ltd., Sanyo Electronic Co., Ltd., Seiko Epson Corporation and others. AUO believes that it is in compliance with the terms and conditions of the aforementioned agreements.

(3) Purchase commitments
a. Starting from 2006, DPTW has entered into a long-term materials supply agreement with Evonik Forhouse Optical Polymers Corp. (“EFOP”), a joint venture of the Company. Under the agreement, DPTW and EFOP agreed on the supply of certain optical-grade molding compounds at agreed prices and quantities.
b. In 2021, AUO entered into a long term materials supply agreement with a supplier, under which, AUO and the supplier agreed on the supply of certain IC chip at agreed prices and quantities.
c. As at September 30, 2021, significant outstanding purchase commitments for construction in progress, property, plant and equipment totaled $18,317,260 thousand.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(4) Litigation

Antitrust civil actions lawsuits in the United States and other jurisdictions

In May 2014, LG Electronics Nanjing Display Co., Ltd. and seven of its affiliates filed a lawsuit in Seoul Central District Court against certain LCD manufacturers including AUO, alleging overcharge and claiming damages. AUO does not believe service has been properly made, but in order to protect its rights, AUO has retained counsel to handle the related matter, and at this stage, the final outcome of these matters is uncertain. AUO has been reviewing the merits of this lawsuit on an on-going basis.

In September 2018, AUUS received a complaint filed by the Government of Puerto Rico on its own behalf and on behalf of all consumers and governmental agencies of Puerto Rico against certain LCD manufacturers including AUO and AUUS in the Superior Court of San Juan, Court of First Instance alleging unjust enrichment and claiming unspecified monetary damages. AUO has retained counsel to handle the related matter and intends to defend this lawsuit vigorously, and at this stage, the final outcome of these matters is uncertain. AUO is reviewing the merits of this lawsuit on an on-going basis.

As of October 27, 2021, the Company has made certain provisions with respect to certain of the above lawsuits as the management deems appropriate, considering factors such as the nature of the litigation or claims, the materiality of the amount of possible loss, the progress of the cases and the opinions or views of legal counsel and other advisors. Management will reassess all litigation and claims at each reporting date based on the facts and circumstances that exist at that time, and will make additional provisions or adjustments to previous provisions. The ultimate amount cannot be ascertained until the relevant cases are closed. The ultimate resolution of the legal proceedings and/or lawsuits cannot be predicted with certainty. While management intends to defend certain of the lawsuits described above vigorously, there is a possibility that one or more legal proceedings or lawsuits may result in an unfavorable outcome to the Company. In addition to the matters described above, the Company is also a party to other litigations or proceedings that arise during the ordinary course of business. Except as mentioned above, the Company, to its knowledge, is not involved as a defendant in any material litigation or proceeding which could be expected to have a material adverse effect on the Company’s business or results of operations.

(5) Agreement for equity acquisition

AUO, upon the resolution of its Board of Directors on April 28, 2021, decided to purchase all shareholdings held by the joint venture party of AUKS with total consideration of RMB 3.995 billion. This investment has been approved by the Investment Commission, Ministry of Economic Affairs. Procedures for sale of equity interests are to be completed by the joint venture party in accordance with its local decree.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

10. Significant Disaster Losses: None

11. Subsequent Event: None

12. Others

(1) Seasonality of operations

The Company’s operations are not materially influenced by seasonality or cyclicality.

(2) Since 2010, there have been environmental proceedings relating to the development project of the Central Taiwan Science Park in Houli, Taichung, which AUO’s second 8.5 generation fab is located at (the “Project”). The Environmental Protection Administration (“EPA”) of the Executive Yuan of Taiwan issued the environmental assessment and development approval on November 6, 2018. On October 24, 2019, the Appeal Review Committee of the Executive Yuan rejected the administrative appeal filed by five local residents. On December 24, 2019, the residents have proceeded to file an administrative action for invalidating the environmental assessment again. The matter is still under review by the court. Management does not believe that this event will have a material adverse effect on the Company’s operation and will continue to monitor the development of this event.

13. Additional Disclosures

(1) Information on significant transactions:

Following are the additional disclosures required by the Regulations for the Company for the nine months ended September 30, 2021.

a. Financings provided: Please see Table 1 attached.
b. Endorsements/guarantees provided: Please see Table 2 attached.
c. Marketable securities held (excluding investment in subsidiaries, associates and joint ventures): Please see Table 3 attached.
d. Individual marketable securities acquired or disposed of with costs or prices exceeding NT$300 million or 20% of the paid-in capital: Please see Table 4 attached.
e. Acquisition of individual real estate with costs exceeding NT$300 million or 20% of the paidin capital: None.
f. Disposal of individual real estate with prices exceeding NT$300 million or 20% of the paid-in capital: Please see Table 5 attached.
g. Purchases from or sales to related parties with amounts exceeding NT$100 million or 20% of the paid-in capital: Please see Table 6 attached.
h. Receivables from related parties with amounts exceeding NT$100 million or 20% of the paid-in capital: Please see Table 7 attached.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

i. Information about trading in derivative instruments: Please see Note 6(2).
j. Business relationship and significant intercompany transactions: Please see Table 8 attached.
(2) Information on investees (excluding information on investment in Mainland China): Please see Table 9 attached.
(3) Information on investment in Mainland China:
a. The related information on investment in Mainland China: Please see Table 10.1 and 10.2 attached.
b. Upper limit on investment in Mainland China: Please see Table 10.1 and 10.2 attached.
c. Significant transactions:

Significant direct or indirect transactions with the investees in Mainland China for the nine months ended September 30, 2021, for which intercompany transactions were eliminated upon consolidation, are disclosed in “Information on significant transactions”.

(4) Major shareholders:

Major shareholders:
Major Shareholder	Shares
	Total Shares Owned	Ownership Percentage
Qisda	663,598,620	% 6.89

14. Segment Information

Operating segment information

The Company has two operating segments: display and energy. The display segment generally is engaged in the research, development, design, manufacturing and sale of flat panel displays and most of our products are TFT-LCD panels. The energy segment primarily is engaged in the design, manufacturing and sale of ingots, solar wafers and solar modules, as well as providing technical engineering services and maintenance services for solar system projects.

Segment results are excluding non-operating income and expenses and income tax expense (benefit). There are no differences between the consolidated financial statements for the nine months ended September 30, 2021 and 2020 with the financial results received by the Company’s chief operating decision maker. The accounting policies for the operating segments are the same as those used in preparation of the consolidated financial statements of the Company. The Company uses the net revenue, profit (loss) from operations and segment profit (loss) excluding depreciation and amortization as the basis of segment performance assessment.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Net revenue from external customers
Segment profit (loss)
Net non-operating income and expenses
Consolidated profit (loss) before income tax
Segment profit (loss) excluding depreciation and
amortization
Segment assets
Net revenue from external customers
Segment profit (loss)
Net non-operating income and expenses
Consolidated profit (loss) before income tax
Segment profit (loss) excluding depreciation and
amortization
Segment assets
Net revenue from external customers
Segment profit (loss)
Net non-operating income and expenses
Consolidated profit (loss) before income tax
Segment profit (loss) excluding depreciation and
amortization
Segment assets
Net revenue from external customers
Segment profit (loss)
Net non-operating income and expenses
Consolidated profit (loss) before income tax
Segment profit (loss) excluding depreciation and
amortization
Segment assets

Three Months

Display
segment
$
96,208,210
$
20,110,624
$
28,372,045
Three Months

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES

Financings Provided For the nine months ended September 30, 2021

(Amount in thousands of New Taiwan Dollars)

Table 1

No.	Financing Company	Borrowing Company	Financial Statement Account	Related Party	Maximum Balance for the Period (Note 3)	Ending Balance (Notes 1 and 2)	Amount Actually Drawn Down (Notes 1 and 4)	Interest Rate	Nature of Financing	Transaction Amounts	Reason for Financing	Allowance for Bad Debt	Collateral	Collateral	Financing Limits for Each Borrowing Company (Notes 1 and 5)	Limits on Financing Company’s Total Financing Amount (Notes 1 and 5)
													Item	Value
0	AUO	AETW	Other	Yes	200,000	200,000	100,000	Markup rate on	Needs for	-	Operating	-	-	-	22,977,326	91,909,303
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
0	AUO	AUKS	Other	Yes	4,342,000	4,322,100	-	Markup rate on	Needs for	-	Operating	-	-	-	22,977,326	91,909,303
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
0	AUO	ACTW	Other	Yes	2,000,000	2,000,000	1,600,000	Markup rate on	Needs for	-	Operating	-	-	-	22,977,326	91,909,303
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
0	AUO	SMI	Other	Yes	30,000	30,000	10,000	Markup rate on	Needs for	-	Operating	-	-	-	22,977,326	91,909,303
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
1	AUOLB	AUKS	Other	Yes	15,963,280	12,534,090	7,347,570	Markup rate on	Needs for	-	Operating	-	-	-	23,370,992	23,370,992
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
2	AUXM	AUKS	Other	Yes	5,210,400	3,889,890	2,377,155	Markup rate on	Needs for	-	Operating	-	-	-	5,992,266	5,992,266
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
3	BVXM	AUKS	Other	Yes	440,780	432,210	-	Markup rate on	Needs for	-	Operating	-	-	-	524,073	524,073
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties

No.	Financing Company	Borrowing Company	Financial Statement Account	Related Party	Maximum Balance for the Period (Note 3)	Ending Balance (Notes 1 and 2)	Amount Actually Drawn Down (Notes 1 and 4)	Interest Rate	Nature of Financing	Transaction Amounts	Reason for Financing	Allowance for Bad Debt	Collateral	Collateral	Financing Limits for Each Borrowing Company (Notes 1 and 5)	Limits on Financing Company’s Total Financing Amount (Notes 1 and 5)
													Item	Value
4	AUSJ	EDT	Other	Yes	43,553	43,221	-	Markup rate on	Needs for	-	Operating	-	-	-	4,022,767	4,022,767
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
4	AUSJ	ACareSZ	Other	Yes	95,817	95,086	4,322	Markup rate on	Needs for	-	Operating	-	-	-	4,022,767	4,022,767
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
4	AUSJ	AESZ	Other	Yes	174,212	86,442	56,187	Markup rate on	Needs for	-	Operating	-	-	-	4,022,767	4,022,767
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
4	AUSJ	AUKS	Other	Yes	1,454,574	1,080,525	648,315	Markup rate on	Needs for	-	Operating	-	-	-	1,609,107	1,609,107
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
4	AUSJ	AESD	Other	Yes	220,390	-	-	Markup rate on	Needs for	-	Operating	-	-	-	4,022,767	4,022,767
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
4	AUSJ	MIS	Other	Yes	65,330	64,832	21,611	Markup rate on	Needs for	-	Operating	-	-	-	4,022,767	4,022,767
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
5	AUSZ	AUKS	Other	Yes	6,295,900	4,105,995	3,025,470	Markup rate on	Needs for	-	Operating	-	-	-	6,936,252	6,936,252
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
6	BVHF	AUKS	Other	Yes	308,546	302,547	302,547	Markup rate on	Needs for	-	Operating	-	-	-	329,908	329,908
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
7	DPSZ	AUKS	Other	Yes	438,240	-	-	Adjusted by	Needs for	-	Operating	-	-	-	420,573	420,573
			receivables					base lending	short-term		capital
			from related					rate of People’s	financing
			parties					Bank of China

No.	Financing Company	Borrowing Company	Financial Statement Account	Related Party	Maximum Balance for the Period (Note 3)	Ending Balance (Notes 1 and 2)	Amount Actually Drawn Down (Notes 1 and 4)	Interest Rate	Nature of Financing	Transaction Amounts	Reason for Financing	Allowance for Bad Debt	Collateral	Collateral	Financing Limits for Each Borrowing Company (Notes 1 and 5)	Limits on Financing Company’s Total Financing Amount (Notes 1 and 5)
													Item	Value
8	DPTW	DPSK	Other	Yes	52,574	48,407	-	Adjusted by	Needs for	-	Operating	-	-	-	2,269,138	3,630,620
			receivables					short-term	short-term		capital
			from related					average lending	financing
			parties					rate
9	FTWJ	FHWJ	Other	Yes	87,106	25,933	25,933	Adjusted by	Needs for	-	Operating	-	-	-	1,546,743	1,546,743
			receivables					base lending	short-term		capital
			from related					rate of People’s	financing
			parties					Bank of China

Note 1: Amounts denominated in foreign currencies are translated into New Taiwan Dollars using the exchange rates at the reporting date. Note 2: The ending balance represents the amounts approved by the Board of Directors.

Note 3: The maximum balance for the period represents the highest amount in New Taiwan Dollars announced or occurred during the period. Note 4: All inter-company transactions among AUO and its subsidiaries have been eliminated in the consolidated financial statements. Note 5: The policy for the limit on total financing amount and the financing limit for any individual entity are prescribed as follows:

a. AUO: The total amount available for lending purposes shall not exceed 40% of AUO’s net worth as stated in its latest financial statement. The total amount for lending to a company shall not exceed 10% of AUO’s net worth as stated in its latest financial statement.
b. AUOLB, AUSZ, AUXM, AUSJ, BVXM and BVHF: The total amount available for lending purposes shall not exceed 40% of the net worth of the lending company as stated in its latest financial statement. The total amount for lending to a company shall not exceed 40% of the net worth of the lending company as stated in its latest financial statement.
c. In the event that the financing is between foreign subsidiaries whose voting shares are 100% owned, directly or indirectly, by AUO, the aggregate amount available for lending to such borrowers and total amount lendable to a company both shall not exceed the net worth of the lending company as stated in its latest financial statement.
d. DPTW: The total amount available for lending purposes shall not exceed 40% of DPTW’s net worth as stated in its latest financial statement. The total amount for lending to a company shall not exceed 25% of DPTW’s net worth as stated in its latest financial statement.
e. DPSZ and FTWJ: The total amount available for lending purposes shall not exceed 40% of the net worth of the lending company. The total amount for lending to a company shall not exceed 40% of the net worth of the lending company.
f. In the event that the financing is between foreign subsidiaries whose voting shares are 100% owned, directly and indirectly, by DPTW, the aggregate amount available for lending to such borrowers and the total amount lendable to each of such borrowers shall not exceed the net worth of the lending company.

AU OPTRONICS CORP. AND SUBSIDIARIES

Endorsements/Guarantees Provided For the nine months ended September 30, 2021

(Amount in thousands of New Taiwan Dollars)

Table 2

No.	Endorser/ Guarantor	Guaranteed Party	Guaranteed Party	Limits on Endorsement/ Guarantee Amount Provided for Each Party (Notes 4 and 5)	Maximum Endorsement/ Guarantee Balance for the Period (Note 2)	Ending Balance (Notes 3 and 4)	Amount Actually Drawn Down (Note 4)	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Worth per Latest Financial Statements	Maximum Endorsement/ Guarantee Amount Allowable (Notes 4 and 5)	Endorsement/ Guarantee Provided by Parent Company to Subsidiary	Endorsement/ Guarantee Provided by Subsidiary to Parent Company	Endorsement/ Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship (Note 1)
0	AUO	AUKS	2	114,886,629	14,406,477	14,127,604	5,628,266	-	6.15%	229,773,257	Yes	No	Yes
1	AUXM	AUO	3	14,980,665	6,391,310	-	-	-	-	14,980,665	No	Yes	No
2	AUSZ	AUO	3	17,340,629	4,495,956	-	-	-	-	17,340,629	No	Yes	No
3	DPXM	DPTW	3	1,605,915	440,780	432,210	-	-	10.77%	1,605,915	No	No	No

Note 1: The relationship between the endorser/guarantor and the guaranteed party:

A company with which it does business.
A company in which the Company directly and indirectly holds more than 50% of the voting shares.
A company that directly and indirectly holds more than 50% of the voting shares in the Company.
Companies in which the Company holds, directly or indirectly, 90% or more of the voting shares.
A company that fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
A company that all capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.
Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 2: The maximum endorsement/guarantee balance for the period represents the highest amount in New Taiwan Dollars announced or occurred during the period. Note 3: The ending balance represents the amounts approved by the Board of Directors.

Note 4: Amounts denominated in foreign currencies are translated into New Taiwan Dollars using the exchange rates at the reporting date.

Note 5: The policy for the limit of total endorsement/guarantee amount and the limit on endorsement/guarantee amount provided to each party are prescribed as follows:

a. AUO: The total endorsement/guarantee amount provided shall not exceed the net worth of AUO as stated in its latest financial statement. The aggregate amount of endorsement/guarantee provided to each guaranteed party shall not exceed 50% of AUO’s net worth as stated in its latest financial statement.
b. AUSZ and AUXM: The total endorsement/guarantee amount provided and the aggregate amount of endorsement/guarantee provided to each guaranteed party both shall not exceed the net worth of the endorser/guarantor as stated in its latest financial statement.
c. DPXM: The total endorsement/guarantee amount provided and the aggregate amount of endorsement/guarantee provided to each guaranteed party both shall not exceed 40% of DPXM’s net worth as stated in its latest financial statement.

AU OPTRONICS CORP. AND SUBSIDIARIES

Marketable Securities Held (Excluding Investment in Subsidiaries, Associates and Joint Ventures)

September 30, 2021

(Amount in thousands of New Taiwan Dollars and foreign currencies indicated, and shares in thousands)

Table 3

Name of Holder	Type and Name of Marketable Securities	Relationship with the Securities Issuer	Financial Statement Account		September 30, 2021	September 30, 2021
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
AUO	BenQ ESCO Corp.’s stock	Related party	Financial assets at FVTPL－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTPL－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTPL－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTPL－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTOCI－noncurrent Financial assets at FVTPL－noncurrent	1,700	-	17.00%	-
AUO	SINTRONES Technology Corp.’s stock	Related party		1,299	69,756	7.06%	69,756
AUOLB	Abakus Solar AG’s stock	-		3	-	2.22%	-
AUSH	T-powertek Optronics Co., Ltd.’s stock	-		1,293	CNY 6,250	1.58%	CNY 6,250
AUSZ	ToYou Display (Suzhou) Co., Ltd’s stock	Related party		-	CNY 7,931	18.00%	CNY 7,931
Konly	Carota Corporation’s stock	-		813	55,710	2.63%	55,710
Konly	PlayNitride Inc.’s stock	Related party		1,827	281,226	4.04%	281,226
Konly	SnapBizz CloudTech Pte. Ltd.’s stock	-		13	-	4.61%	-
Konly	Azotek Co., Ltd.’s stock	-		2,407	7,345	3.98%	7,345
Konly	Chenfeng Optronics Corporation’s stock	-		1,500	-	2.06%	-
Konly	GCS Holdings, Inc.’s stock	-		1,119	53,544	1.22%	53,544
Konly	a2peak power Co., Ltd.’s stock	-		4,000	-	10.87%	-
Konly	SINTRONES Technology Corp.’s stock	Related party		556	29,857	3.02%	29,857
DPTW	D8AI Holdings Corporation’s stock	-		7,000	8,649	4.59%	8,649
DPTW	Disign Incorporated’s stock	-		2	10,714	19.89%	10,714
DPTW	Evertrust Technology Ltd.’s stock	-		150	1,500	16.13%	1,500
DPTW	HUAI I Precision Technology Co., Ltd.’s	-		2,914	34,968	10.00%	34,968
	stock
DPTW	WiBASE Industrial Solutions Inc.’s stock	Related party		3,536	42,432	9.11%	42,432
Ronly	PlayNitride Inc.’s stock	Related party		359	71,517	0.79%	71,517
Ronly	Exploit Technology Co., Ltd.’s stock	-		41	-	0.49%	-
Ronly	Profet AI Technology Co., Ltd.’s stock	-	Financial assets at FVTOCI－noncurrent	511	10,002	10.16%	10,002

AU OPTRONICS CORP. AND SUBSIDIARIES

Individual Marketable Securities Acquired or Disposed of with Costs or Prices Exceeding NT$300 Million or 20% of the Paid-in Capital For the nine months ended September 30, 2021

(Amount in thousands of New Taiwan Dollars and foreign currencies indicated, and shares in thousands)

Table 4

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	Beginning Balance	Beginning Balance	Acquisition	Acquisition		Disposal	Disposal	Disposal	Ending Balance	Ending Balance	Note
					Shares	Amount	Shares	Amount	Shares	Amount	Carrying Amount	Gain/Loss on Disposal	Shares	Amount
AUO	Ennostar’s stock	Investments in	-	-	-	-	4,654	390,820	-	-	-	-	26,319	2,239,421	Note 1
		equity-accounted
		investees
AUO	Konly’s stock DPGE’s stock Ronly’s stock Structured deposit Qisda’s stock	Investments in	-	-	299,764	5,471,340	51,245	605,220	-	-	-	-	351,008	6,516,003	Note 2
		equity-accounted
		investees
AUO		Investments in	-	-	700	6,985	34,300	343,000	-	-	-	-	35,000	349,890	Note 2
		equity-accounted
		investees
AUO		Investments in	-	-	185,576	2,277,770	100,000	1,000,000	-	-	-	-	285,576	3,392,254	Note 2
		equity-accounted
		investees
FTKS		Financial assets	-	-	-	CNY 72,585	-	-	-	CNY 72,697	CNY 72,697	-	-	-
		at FVTPL－
		current
Konly		Investments in	-	-	17,817	515,805	32,328	925,606	-	-	-	-	50,145	1,362,148	Note 3
		equity-accounted
		investees
Ronly	Ennostar’s stock	Investments in	-	-	-	-	7,543	632,321	-	-	-	-	16,986	1,446,805	Note 1
		equity-accounted
		investees

Note 1: a. Acquisition was made on the open market.

b. The ending balance and number of shares include the recognition of investment gain (loss) and other related adjustments under the equity method, and include the converted amount and number of shares arising from the joint share exchange plan carried out by Lextar and Epistar for a newly incorporated company, Ennostar, on January 6, 2021 as well. See Note 6(7) for the relevant information.

Note 2: The acquisition amount refers to the participation in the investees’ capital increase. The ending balance includes the recognition of investment gain (loss) and other related adjustments under the equity method.

Note 3: a. Acquisition was made on the open market.

b. The ending balance includes the recognition of investment gain (loss) and other related adjustments under the equity method.

AU OPTRONICS CORP. AND SUBSIDIARIES

Disposal of Individual Real Estate with Costs Exceeding NT$300 Million or 20% of the Paid-in Capital For the nine months ended September 30, 2021

(Amount in thousands of New Taiwan Dollars and foreign currencies indicated)

Table 5

Company Name	Property	Date of the Event	Date of Original Acquisition	Carrying Amount	Transaction Amount	Status of Proceeds Collection	Gain (Loss) on Disposal	Counterparty	Relationship	Purpose of Disposal	Pricing Reference	Other Terms	Note
ACTW AUO	Plant Plant	March 2021 April 2021	November 2011 October 2000, November 2001	134,801 20,189	482,000 790,476	482,000	- -	Phoenix Silicon	Non-related party Non-related party	Activating assets Activating assets	A report on the appraisal price of a real estate appraiser A report on the appraisal price of a real estate appraiser	None None	Note 1
								International
								Corporation
						395,238		Vanguard					Note 1
								International
								Semiconductor
								Corporation
DPSZ	Land and buildings	June 2021	December 2006	CNY 77,053	CNY219,048	-	-	Suzhou Xinsheng	Non-related party	Activating assets and enhancing the efficient use of working capital	A report on the appraisal price of a real estate appraiser	None	Note 1
								Real Estate Co.

Note 1: This transaction has not been completed, and the relevant transaction costs and taxes have not yet been determined. See Note 6(10).

AU OPTRONICS CORP. AND SUBSIDIARIES

Purchases from or Sales to Related Parties with Amounts Exceeding NT$100 Million or 20% of the Paid-in Capital For the nine months ended September 30, 2021

(Amount in thousands of New Taiwan Dollars and foreign currencies indicated)

Table 6

Company Name	Counterparty	Relationship	Transaction Details	Transaction Details	Transaction Details		Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)
			Purchases /Sales	Amount (Note 2)	Percentage of Total Purchases /Sales	Credit Terms	Unit Price (Note 1)	Credit Terms (Note 1)	Ending Balance (Note 2)	Percentage of Total Notes /Accounts Receivable (Payable)
AUO	AUKS	Subsidiary of AUO	Purchases	19,558,210	13%	EOM 30 days	-		(5,253,367)	(9)%
AUO	AUST	Subsidiary of AUO	Purchases	2,629,246	2%	EOM 45 days	-		(580,429)	(1)%
AUO	AUSZ	Subsidiary of AUO	Purchases	24,253,363	16%	EOM 45 days	-		(10,086,795)	(18)%
AUO	AUXM	Subsidiary of AUO	Purchases	22,698,823	15%	EOM 45 days	-		(10,107,633)	(18)%
AUO	Qisda	Associate	Purchases	6,216,329	4%	EOM 45 days	-		(1,549,886)	(3)%
AUO	BMC	Subsidiary of Qisda	Purchases	2,727,851	2%	EOM 90 days	-		(938,174)	(2)%
AUO	Raydium	Associate	Purchases	1,204,650	1%	EOM 120 days	-		(679,200)	(1)%
AUO	Daxin	Associate	Purchases	1,694,685	1%	EOM 120 days	-		(792,991)	(1)%
AUO	DPTW	Subsidiary of AUO	Purchases	2,760,037	2%	EOM 60 days	-		(957,426)	(2)%
AUO	AUOUS	Subsidiary of AUO	Sales	(227,034)	-	EOM 75 days	-		22,927	-
AUO	AUSZ	Subsidiary of AUO	Sales	(8,451,150)	(3)%	EOM 45 days	-		-	-
AUO	AUXM	Subsidiary of AUO	Sales	(2,530,696)	(1)%	EOM 45 days	-		-	-
AUO	DICSZ	Subsidiary of Qisda	Sales	(333,166)	-	EOM 45 days	-		101,653	-
AUO	QCSZ	Subsidiary of Qisda	Sales	(5,352,386)	(2)%	EOM 55 days	-		662,292	1%
AUO	BenQ	Subsidiary of Qisda	Sales	(2,479,390)	(1)%	EOM 55 days	-		553,642	1%
AUO	SLEC	Subsidiary of SSEC	Sales	(477,054)	-	EOM 25 days	-		9,568	-
AUO	ADP	Subsidiary of AUO	Sales	(12,254,110)	(5)%	EOM 45 days	-		3,824,134	6%
ADPNL	ADP	Subsidiary of AUO	Purchases	USD 46,760	100%	EOM 45 days	-		USD (18,668)	(100)%
AUKS	AUSZ	Subsidiary of AUO	Purchases	CNY 233,459	10%	EOM 60 days	-		CNY (109,201)	(9)%

Company Name	Counterparty	Relationship	Transaction Details	Transaction Details	Transaction Details		Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)
			Purchases /Sales	Amount (Note 2)	Percentage of Total Purchases /Sales	Credit Terms	Unit Price (Note 1)	Credit Terms (Note 1)	Ending Balance (Note 2)	Percentage of Total Notes /Accounts Receivable (Payable)
AUKS	Qisda	Associate	Purchases	CNY 45,663	2%	EOM 120 days	-		CNY (30,237)	(3)%
AUKS	Raydium	Associate	Purchases	CNY 45,638	2%	EOM 120 days	-		CNY (37,785)	(3)%
AUKS	DPTW	Subsidiary of AUO	Purchases	CNY 29,722	1%	EOM 120 days	-		CNY (24,520)	(2)%
AUKS	AUO	Ultimate parent company	Sales	CNY (4,540,823)	(97)%	EOM 30 days	-		CNY 1,225,380	97%
AUKS	AUXM	Subsidiary of AUO	Sales	CNY (149,520)	(3)%	EOM 30 days	-		CNY 41,130	3%
AUOUS	AUO	Ultimate parent company	Purchases	USD 8,048	100%	EOM 75 days	-		USD (869)	(100)%
AUOUS	AUO	Ultimate parent company	Sales	USD (3,846)	(31)%	EOM 30 days	-		-	-
AUSH	AUO	Ultimate parent company	Sales	CNY (23,320)	(99)%	End of quarter 25 days	-		-	-
AUSK	AUO	Ultimate parent company	Sales	EUR (3,276)	(85)%	EOM 45 days	-		EUR 716	85%
AUST	AUO	Ultimate parent company	Sales	USD (94,379)	(99)%	EOM 45 days	-		USD 20,829	97%
AUSZ	AUO	Ultimate parent company	Purchases	CNY 1,987,040	24%	EOM 45 days	-		-	-
AUSZ	Qisda	Associate	Purchases	CNY 338,386	4%	EOM 120 days	-		CNY (162,460)	(5)%
AUSZ	BMC	Subsidiary of Qisda	Purchases	CNY 194,457	2%	EOM 90 days	-		CNY (89,120)	(3)%
AUSZ	Raydium	Associate	Purchases	CNY 494,254	6%	EOM 120 days	-		CNY (276,523)	(8)%
AUSZ	DPTW	Subsidiary of AUO	Purchases	CNY 162,823	2%	EOM 120 days	-		CNY (95,209)	(3)%
AUSZ	AUO	Ultimate parent company	Sales	CNY (5,628,686)	(60)%	EOM 45 days	-		CNY 2,342,824	69%
AUSZ	AUKS	Subsidiary of AUO	Sales	CNY (233,459)	(2)%	EOM 60 days	-		CNY 109,201	3%
AUSZ	ADP	Subsidiary of AUO	Sales	CNY (3,564,241)	(38)%	EOM 45 days	-		CNY 954,622	28%
AUXM	AUO	Ultimate parent company	Purchases	CNY 650,045	12%	EOM 45 days	-		-	-
AUXM	AUKS	Subsidiary of AUO	Purchases	CNY 135,870	3%	EOM 30 days	-		CNY (41,130)	(2)%
AUXM	DPXM	Subsidiary of AUO	Purchases	CNY 32,061	1%	EOM 120 days	-		CNY (18,176)	(1)%
AUXM	BMC	Subsidiary of Qisda	Purchases	CNY 140,137	3%	EOM 90 days	-		CNY (61,830)	(3)%
AUXM	Raydium	Associate	Purchases	CNY 475,694	9%	EOM 120 days	-		CNY (244,091)	(11)%
AUXM	DPTW	Subsidiary of AUO	Purchases	CNY 205,911	4%	EOM 120 days	-		CNY (111,206)	(5)%
AUXM	AUO	Ultimate parent company	Sales	CNY (5,274,154)	(85)%	EOM 45 days	-		CNY 2,352,716	91%

Company Name	Counterparty	Relationship	Transaction Details	Transaction Details	Transaction Details		Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)
			Purchases /Sales	Amount (Note 2)	Percentage of Total Purchases /Sales	Credit Terms	Unit Price (Note 1)	Credit Terms (Note 1)	Ending Balance (Note 2)	Percentage of Total Notes /Accounts Receivable (Payable)
AUXM	ADP	Subsidiary of AUO	Sales	CNY (293,604)	(5)%	EOM 45 days	-		CNY 86,010	3%
DPSZ	DPTW	Subsidiary of AUO	Sales	CNY (83,602)	(77)%	EOM 90 days	-		CNY 36,098	84%
DPXM	DPTW	Subsidiary of AUO	Purchases	CNY 56,666	3%	EOM 60 days	-		CNY (82,183)	(13)%
DPXM	AUXM	Subsidiary of AUO	Sales	CNY (32,014)	(2)%	EOM 120 days	-		CNY 18,176	4%
DPXM	DPTW	Subsidiary of AUO	Sales	CNY (368,213)	(18)%	EOM 90 days	-		CNY 251,782	58%
FPWJ	DPTW	Subsidiary of AUO	Purchases	CNY 47,675	100%	EOM 60 days	-		CNY (3,709)	(100)%
FTWJ	DPTW	Subsidiary of AUO	Purchases	CNY 30,616	6%	EOM 60 days	-		CNY (422,335)	(58)%
FTWJ	Lextar	Subsidiary of Ennostar	Purchases	CNY 51,911	11%	EOM 120 days	-		CNY (30,682)	(4)%
FTWJ	DPTW	Subsidiary of AUO	Sales	CNY (739,093)	(98)%	EOM 90 days	-		CNY 888,439	99%
M.Setek	ACTW	Subsidiary of AUO	Sales	JPY (3,361,043)	(95)%	EOM 45 days	-		JPY 2,401,223	99%
AETW	AUO	Ultimate parent company	Sales	(102,609)	(35)%	EOM 60 days	-		29,183	41%
ACTW	M.Setek	Subsidiary of AUO	Purchases	874,448	36%	EOM 45 days	-		(599,745)	(79)%
ADP	AUO	Ultimate parent company	Purchases	12,247,834	42%	EOM 45 days	-		(3,817,663)	(46)%
ADP	AUSZ	Subsidiary of AUO	Purchases	15,405,239	53%	EOM 45 days	-		(4,101,754)	(49)%
ADP	AUXM	Subsidiary of AUO	Purchases	1,269,275	4%	EOM 45 days	-		(369,507)	(4)%
ADP	ADPNL	Subsidiary of AUO	Sales	(1,298,957)	(4)%	EOM 45 days	-		520,192	7%
ADP	QCOS	Subsidiary of Qisda	Sales	(318,681)	(1)%	EOM 55 days	-		98,260	1%
DPTW	DPSZ	Subsidiary of AUO	Purchases	361,756	5%	EOM 90 days	-		(155,103)	(5)%
DPTW	DPXM	Subsidiary of AUO	Purchases	1,582,252	21%	EOM 90 days	-		(802,804)	(27)%
DPTW	FTWJ	Subsidiary of AUO	Purchases	3,199,001	42%	EOM 90 days	-		(1,574,937)	(53)%
DPTW	RFOP	Joint Venture	Purchases	714,058	9%	Payment in advance	-		-	-
DPTW	AUO	Ultimate parent company	Sales	(2,934,867)	(37)%	EOM 60 days	-		911,489	31%
DPTW	AUKS	Subsidiary of AUO	Sales	(121,419)	(2)%	EOM 120 days	-		104,272	4%
DPTW	AUSZ	Subsidiary of AUO	Sales	(702,177)	(9)%	EOM 120 days	-		409,086	14%
DPTW	AUXM	Subsidiary of AUO	Sales	(888,437)	(11)%	EOM 120 days	-		477,821	16%

Company Name	Counterparty	Relationship	Transaction Details	Transaction Details	Transaction Details		Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)
			Purchases /Sales	Amount (Note 2)	Percentage of Total Purchases /Sales	Credit Terms	Unit Price (Note 1)	Credit Terms (Note 1)	Ending Balance (Note 2)	Percentage of Total Notes /Accounts Receivable (Payable)
DPTW	DPXM	Subsidiary of AUO	Sales	(245,130)	(3)%	EOM 60 days	-		96,255	3%
DPTW	FPWJ	Subsidiary of AUO	Sales	(206,478)	(3)%	EOM 60 days	-		15,936	1%
DPTW	FTWJ	Subsidiary of AUO	Sales	(132,392)	(2)%	EOM 60 days	-		67,239	2%
DPTW	QCES	Subsidiary of Qisda	Sales	(106,496)	(1)%	EOM 120 days	-		48,431	2%

Note 1: Transaction terms with related parties were similar to those with third parties, except for particular transactions with no similar transactions to compare with. For those transactions, transaction terms were determined in accordance with mutual agreements.

Note 2: All inter-company transactions among AUO and its subsidiaries have been eliminated in the consolidated financial statements.

AU OPTRONICS CORP. AND SUBSIDIARIES

Receivables from Related Parties with Amounts Exceeding NT$100 Million or 20% of the Paid-in Capital September 30, 2021

(Amount in thousands of New Taiwan Dollars and foreign currencies indicated)

Table 7

Table 7
					Overdue Receivables		Amounts
Company			Ending Balance of	Turnover	Amount	Action Taken	Received in	Allowance
	Counterparty	Relationship	Receivables				Subsequent	for Bad
Name				Rate
			(Note 3)				Period	Debts
							(Note 1)
AUO	DICSZ	Subsidiary of Qisda	101,653	6.36	-	-	-	-
AUO	QCSZ SFPC AETW ACTW BenQ ADP AUO AUXM AUKS AUKS AUO AUO AUKS ADP AUO AUKS ADP AUKS	Subsidiary of Qisda	662,292	8.08	836	Will be collected in next period	-	-
AUO		Subsidiary of SSEC	159,693	0.92	-	-	-	-
AUO		Subsidiary of AUO	101,401	(Note 2)	-	-	-	-
AUO		Subsidiary of AUO	1,613,710	(Note 2)	-	-	-	-
AUO		Subsidiary of Qisda	553,642	5.58	-	-	-	-
AUO		Subsidiary of AUO	3,973,317	(Note 2)	49,397	Will be collected in next period	-	-
AUKS		Ultimate parent company	CNY 1,225,380	5.81	CNY 21,510	Collected in subsequent period	CNY 559,472	-
AUKS		Subsidiary of AUO	CNY 41,130	8.86	CNY 408	Will be collected in next period	-	-
AUOLB		Subsidiary of AUO	USD 266,101	(Note 2)	-	-	-	-
AUSJ		Subsidiary of AUO	CNY 153,738	(Note 2)	-	-	CNY 153,738	-
AUST		Ultimate parent company	USD 20,829	5.65	-	-	-	-
AUSZ		Ultimate parent company	CNY 2,342,824	2.98	CNY 30,163	Collected in subsequent period	CNY 1,447,363	-
AUSZ		Subsidiary of AUO	CNY 822,623	(Note 2)	CNY 21,202	Collected in subsequent period	CNY 34,328	-
AUSZ		Subsidiary of AUO	CNY 954,622	9.96	CNY 16,970	Collected in subsequent period	CNY 534,142	-
AUXM		Ultimate parent company	CNY 2,352,716	3.16	CNY 12,837	Collected in subsequent period	CNY 206,326	-
AUXM		Subsidiary of AUO	CNY 558,492	(Note 2)	CNY 10	Will be collected in next period	-	-
AUXM		Subsidiary of AUO	CNY 86,010	9.10	CNY 322	Will be collected in next period	-	-
BVHF		Subsidiary of AUO	CNY 72,635	(Note 2)	-	-	-	-
DPHK	DPSZ	Subsidiary of AUO	USD 4,034	(Note 2)	-	-	-	-

					Overdue Receivables	Overdue Receivables	Amounts
Company			Ending Balance of	Turnover	Amount	Action Taken	Received in	Allowance
	Counterparty	Relationship	Receivables				Subsequent	for Bad
Name				Rate
			(Note 3)				Period	Debts
							(Note 1)
DPSZ	DPTW	Subsidiary of AUO	CNY 36,098	2.73	-	-	-	-
DPXM	DPTW DPTW ACTW M.Setek ADPNL AUO AUKS AUSZ AUXM DPXM	Subsidiary of AUO	CNY 251,782	1.82	-	-	-	-
FTWJ		Subsidiary of AUO	CNY 888,439	1.30	-	-	-	-
M.Setek		Subsidiary of AUO	JPY 2,402,699	(Note 2)	JPY 584,401	Will be collected in next period	-	-
ACTW		Subsidiary of AUO	342,334	(Note 2)	-	-	-	-
ADP		Subsidiary of AUO	520,192	6.66	-	-	133,607	-
DPTW		Ultimate parent company	911,489	4.99	48,995	Will be collected in next period	-	-
DPTW		Subsidiary of AUO	104,272	2.98	-	-	-	-
DPTW		Subsidiary of AUO	409,086	2.73	-	-	-	-
DPTW		Subsidiary of AUO	477,821	2.85	611	Will be collected in next period	-	-
DPTW		Subsidiary of AUO	361,330	(Note 2)	-	-	-	-
DPTW	FTWJ	Subsidiary of AUO	1,822,756	(Note 2)	2,681	Will be collected in next period	-	-

Note 1: Until the mid of October 2021.

Note 2: The ending balance includes other receivables from transactions not related to ordinary sales. Note 3: All inter-company transactions among AUO and its subsidiaries have been eliminated in the consolidated financial statements.

AU OPTRONICS CORP. AND SUBSIDIARIES Business Relationship and Significant Intercompany Transactions For the nine months ended September 30, 2021

(Amount in thousands of New Taiwan Dollars and foreign currencies indicated)

Table 8

						Inter-company Transactions
N			Nt f Rltihi				Percentage of
	Company			Financial
		Ctt
o.	Name	ounerpary	aure o eaonsp	Statement	Amount	Trading Terms	Consolidated
							Net Revenue or
				Account			Total Assets

0	AUO	AUSZ	Parent to subsidiary	Net revenue	8,451,150	The prices of inter-company sales are not comparable with	3%
						those of third parties. The credit term is EOM 45 days
0	AUO	AUXM	Parent to subsidiary	Net revenue	2,530,696	The prices of inter-company sales are not comparable with	1%
						those of third parties. The credit term is EOM 45 days
0	AUO	ADP	Parent to subsidiary	Net revenue	12,254,110	The prices of inter-company sales are not comparable with	4%
						those of third parties. The credit term is EOM 45 days
0	AUO	ADP	Parent to subsidiary	Receivables from	3,973,317	-	1%
				related parties
1	AUKS	AUO	Subsidiary to parent	Net revenue	CNY 4,540,823	The prices of inter-company sales are not comparable with	7%
						those of third parties. The credit term is EOM 30 days
1	AUKS	AUO	Subsidiary to parent	Receivables from	CNY 1,225,380	-	1%
				related parties
2	AUOLB	AUKS	Subsidiary to subsidiary	Receivables from	USD 266,101	-	2%
				related parties
3	AUST	AUO	Subsidiary to parent	Net revenue	USD 94,379	The prices of inter-company sales are not comparable with	1%
						those of third parties. The credit term is EOM 45 days
4	AUSZ	AUO	Subsidiary to parent	Net revenue	CNY 5,628,686	The prices of inter-company sales are not comparable with	9%
						those of third parties. The credit term is EOM 45 days
4	AUSZ	AUO	Subsidiary to parent	Receivables from	CNY 2,342,824	-	2%
				related parties
4	AUSZ	AUKS	Subsidiary to subsidiary	Receivables from	CNY 822,623	-	1%
				related parties

						Inter-company Transactions
N			Nt f Rltihi				Percentage of
	Company			Financial
		Ctt
o.	Name	ounerpary	aure o eaonsp	Statement	Amount	Trading Terms	Consolidated
							Net Revenue or
				Account			Total Assets

4	AUSZ	ADP	Subsidiary to subsidiary	Net revenue	CNY 3,564,241	The prices of inter-company sales are not comparable with	6%
						those of third parties. The credit term is EOM 45 days
4	AUSZ	ADP	Subsidiary to subsidiary	Receivables from	CNY 954,622	-	1%
				related parties
5	AUXM	AUO	Subsidiary to parent	Net revenue	CNY 5,274,154	The prices of inter-company sales are not comparable with	8%
						those of third parties. The credit term is EOM 45 days
5	AUXM	AUO	Subsidiary to parent	Receivables from	CNY 2,352,716	-	2%
				related parties
5	AUXM	AUKS	Subsidiary to subsidiary	Receivables from	CNY 558,492	-	1%
				related parties
6	DPXM	DPTW	Subsidiary to subsidiary	Net revenue	CNY 368,213	The prices of inter-company sales are not comparable with	1%
						those of third parties. The credit term is EOM 90 days
7	FTWJ	DPTW	Subsidiary to subsidiary	Net revenue	CNY 739,093	The prices of inter-company sales are not comparable with	1%
						those of third parties. The credit term is EOM 90 days
7	FTWJ	DPTW	Subsidiary to subsidiary	Receivables from	CNY 888,439	-	1%
				related parties
8	DPTW	AUO	Subsidiary to parent	Net revenue	2,934,867	The prices of inter-company sales are not comparable with	1%
						those of third parties. The credit term is EOM 60 days

Note 1: This table discloses the information on inter-company sales and receivables which are accounted for 1% or more of the consolidated net revenue or the consolidated total assets, respectively. The information of the corresponding inter-company purchases and payables is no more disclosed herein. Note 2: All inter-company transactions have been eliminated in the consolidated financial statements.

AU OPTRONICS CORP. AND SUBSIDIARIES

Information on Investees (Excluding Information on Investment in Mainland China) For the nine months ended September 30, 2021

(Amount in thousands of New Taiwan Dollars and foreign currencies indicated, and shares in thousands)

Table 9

Table 9
				Original Investment Amount		September 30, 2021				Investor’s
Investor Company	Investee Company					Shares	Percentage of	Carrying Amount	Net Income	Share of Profit
		Location	Main Activities	September 30,	December 31,				(Loss) of	(Loss)	Note
				2021	2020		Ownership	(Notes 1 and 2)	Investee	of Investee (Notes 1 and 2)
AUO	AUOLB	Malaysia	Holding company	59,058,698	59,058,698	1,882,189	100.00%	58,427,481	3,401,711	3,401,711	Subsidiary
AUO	AUNL	Netherlands	Sales and sales support of TFT-LCD Panels	24,275	24,275	50	100.00%	59,605	(1,724)	(1,724)	Subsidiary
AUO	Konly	Taiwan ROC	Investment	4,832,290	4,227,070	351,008	100.00%	6,516,003	862,357	862,357	Subsidiary
AUO	Ronly	Taiwan ROC	Investment	3,078,682	2,078,682	285,576	100.00%	3,392,254	212,963	212,963	Subsidiary
AUO	DPTW	Taiwan ROC	Design, manufacturing, and sales of TFT-	3,569,155	3,569,155	190,108	28.56%	2,592,610	(743,017)	(212,234)	Subsidiary
			LCD modules, backlight modules, TV set
			and related parts
AUO	ACTW	Taiwan ROC	Manufacturing and sale of ingots and solar	15,687,921	15,687,921	418,583	100.00%	2,932,117	437,761	437,761	Subsidiary
			wafers
AUO	Lextar	Taiwan ROC	Design, manufacturing, and sales of InGaN	-	889,227	-	-	-	-	-	Associate
			epi wafers and chips, and light emitting								(Note 5)
			diode packages and modules
AUO	Qisda	Taiwan ROC	Manufacturing and sales of communication	9,505,477	9,505,477	335,231	17.04%	9,343,292	7,312,256	886,992	Associate
			products; manufacturing, sales and service
			of products related to intelligent solutions;
			medical equipment and services; research
			and development, manufacturing and sales
			of network communication products
AUO	SMI	Taiwan ROC	Sales and leasing of content management	30,000	30,000	3,000	100.00%	7,069	(7,165)	(7,165)	Subsidiary
			system and hardware
AUO	AETW	Taiwan ROC	Planning, design and development of	300,000	200,000	30,000	100.00%	204,783	(27,242)	(27,242)	Subsidiary
			construction project for environmental
			protection and related project management
AUO	SSEC	Taiwan ROC	Investment	1,550,000	1,550,000	155,000	31.00%	1,582,856	83,994	26,038	Associate
AUO	CQIL	Israel	Holding company	1,182,621	1,182,621	39,974	100.00%	893,662	13,577	13,577	Subsidiary
AUO	ADLINK	Taiwan ROC	Manufacturing and sales of hardware,	2,411,693	2,411,693	42,310	19.45%	2,210,947	17,485	(53,021)	Associate
			software and peripheral devices of industrial
			computers
AUO	DPGE	Taiwan ROC	Renewable energy power generation	350,000	7,000	35,000	100.00%	349,890	(95)	(95)	Subsidiary

				Original Investment Amount	Original Investment Amount	September 30, 2021	September 30, 2021	September 30, 2021		Investor’s
Investor Company	Investee Company					Shares	Percentage of	Carrying Amount	Net Income	Share of Profit
		Location	Main Activities	September 30,	December 31,				(Loss) of	(Loss)	Note
				2021	2020		Ownership	(Notes 1 and 2)	Investee	of Investee (Notes 1 and 2)
AUO	ADHLD	Caymen	Holding company	178,353	-	6,300	70.00%	122,739	(75,387)	(52,771)	Subsidiary
AUO	ADCM	Caymen	Holding company	76,437	-	2,700	100.00%	52,603	(22,616)	(22,616)	Subsidiary
AUO	AHTW	Taiwan ROC	Manufacturing, development and sales of	5,000	5,000	500	100.00%	4,133	(852)	(852)	Subsidiary
			medical equipments
AUO	ADP	Taiwan ROC	Research, development and sales of TFT-	369,555	1,000	36,956	100.00%	4,472,389	4,073,039	4,073,039	Subsidiary
			LCD panels
AUO	SREC	Taiwan ROC	Investment	288,828	379,040	28,883	32.01%	336,448	94,801	30,349	Subsidiary
											(Note 7)
AUO	Ennostar	Taiwan ROC	Holding company	1,280,047	-	26,319	3.86%	2,239,421	1,736,600	24,462	Associate
											(Note 5)
AUO	ACareTW	Taiwan ROC	Design, development and sales of software	30,000	-	3,000	100.00%	24,309	(5,691)	(5,691)	Subsidiary
			and hardware for health care industry
Konly	DPTW	Taiwan ROC	Design, manufacturing, and sales of TFT-	703,795	703,795	42,598	6.40%	580,934	(743,017)	(47,556)	Subsidiary
			LCD modules, backlight modules, TV set
			and related parts
Konly	Raydium	Taiwan ROC	IC Design	175,857	175,857	11,454	17.11%	1,229,875	3,089,467	528,673	Associate
Konly	Daxin	Taiwan ROC	Research, manufacturing and sales of	154,748	154,748	19,114	18.61%	539,566	512,761	95,416	Associate
			display and semiconductor related
			chemicals
Konly	Lextar	Taiwan ROC	Design, manufacturing, and sales of InGaN	-	565,616	-	-	-	-	-	Associate
			epi wafers and chips, and light emitting								(Note 5)
			diode packages and modules
Konly	Qisda	Taiwan ROC	Manufacturing and sales of communication	1,363,481	437,875	50,145	2.55%	1,362,148	7,312,256	129,241	Associate
			products; manufacturing, sales and service
			of products related to intelligent solutions;
			medical equipment and services; research
			and development, manufacturing and sales
			of network communication products
Konly	Ubitech Inc.	Taiwan ROC	Development and sales of software for POS	-	27,000	-	-	-	(7,085)	(1,332)	(Note 9)
			system
Konly	SSEC	Taiwan ROC	Investment	100,000	100,000	10,000	2.00%	102,120	83,994	1,680	Associate
Konly	WishMobile,	Taiwan ROC	Developing and providing CRM APP; LINE	30,000	15,000	8,625	14.38%	17,079	(2,940)	(392)	Associate
	Inc.		software developer
Konly	SkyREC Ltd.	BVI	Data consulting service for retail	46,016	46,016	188	16.12%	-	(14,761)	(2,163)	Associate
Konly	ADLINK	Taiwan ROC	Manufacturing and sales of hardware,	339,072	80,542	5,332	2.45%	266,632	17,485	(10,434)	Associate
			software and peripheral devices of industrial
			computers
Konly	AUES	Taiwan ROC	Services related to educational activities and	4,000	4,000	400	100.00%	1,384	(2,616)	(2,616)	Subsidiary
			site rental

				Original Investment Amount	Original Investment Amount	September 30, 2021	September 30, 2021	September 30, 2021		Investor’s
Investor Company	Investee Company					Shares	Percentage of	Carrying Amount	Net Income	Share of Profit
		Location	Main Activities	September 30,	December 31,				(Loss) of	(Loss)	Note
				2021	2020		Ownership	(Notes 1 and 2)	Investee	of Investee (Notes 1 and 2)
Konly	IOC	Taiwan ROC	R&D and design of flexible electronics	20,000	20,000	1,000	5.00%	15,354	(44,371)	(4,129)	Associate
			technology and processing equipment
			development
Konly	SREC	Taiwan ROC	Investment	13,533	17,760	1,353	1.50%	15,764	94,801	1,422	Subsidiary
											(Note 7)
Konly	Ennostar	Taiwan ROC	Holding company	860,283	-	12,093	1.77%	1,027,065	1,736,600	11,345	Associate
											(Note 5)
Ronly	DPTW	Taiwan ROC	Design, manufacturing, and sales of TFT-	845,510	845,510	40,509	6.09%	552,445	(743,017)	(45,224)	Subsidiary
			LCD modules, backlight modules, TV set
			and related parts
Ronly	Raydium	Taiwan ROC	IC Design	240,647	-	669	1.00%	245,041	3,089,467	3,991	Associate
Ronly	Daxin	Taiwan ROC	Research, manufacturing and sales of	70,021	70,021	6,312	6.15%	178,185	512,761	31,510	Associate
			display and semiconductor related
			chemicals
Ronly	Lextar	Taiwan ROC	Design, manufacturing, and sales of InGaN	-	323,431	-	-	-	-	-	Associate
			epi wafers and chips, and light emitting								(Note 5)
			diode packages and modules
Ronly	ADLINK	Taiwan ROC	Manufacturing and sales of hardware,	28,311	-	439	0.20%	25,920	17,485	(1,887)	Associate
			software and peripheral devices of industrial
			computers
Ronly	IOC	Taiwan ROC	R&D and design of flexible electronics	68,400	68,400	3,420	17.10%	52,512	(44,371)	(14,122)	Associate
			technology and processing equipment
			development
Ronly	Ennostar	Taiwan ROC	Holding company	955,753	-	16,986	2.49%	1,446,805	1,736,600	15,431	Associate
											(Note 5)
DPTW	BVLB	Malaysia	Holding company	1,051,289	1,051,289	36,000	29.71%	245,438	16,603	4,933	Subsidiary
DPTW	DPLB	Malaysia	Holding company	4,362,627	4,362,627	92,267	100.00%	5,110,267	(64,192)	(57,558)	Subsidiary
DPTW	FHVI	BVI	Holding company	2,362,321	2,362,321	22,006	100.00%	3,571,661	(230,269)	(221,677)	Subsidiary
DPTW	FFMI	Mauritius	Holding company	274,700	274,700	653	100.00%	100,829	660	532	Subsidiary
DPTW	RFOP	Taiwan ROC	Manufacturing and sales of polymer	338,729	338,729	33,873	49.00%	198,898	26,862	13,163	Joint
			plasticized raw materials								Venture
DPTW	Darwin	Thailand	International trade	3,740	3,740	40	40.00%	10,205	3,196	1,279	Associate
	Summit
	Corporation
	Ltd.
ACTW	ACMK	Malaysia	Manufacturing and sale of solar wafers	449,975	449,975	46,196	100.00%	70,285	(32,733)	(32,733)	Subsidiary
ACTW	SDMC	Taiwan ROC	Holding company	1,988,488	1,988,488	128,971	100.00%	1,897,661	133,536	135,521	Subsidiary
SDMC	M.Setek	Japan	Manufacturing and sale of ingots	23,596,398	23,596,398	11,404,184	99.9991%	1,858,513	133,972	133,970	Subsidiary

				Original Investment Amount	Original Investment Amount	September 30, 2021	September 30, 2021	September 30, 2021		Investor’s
Investor Company	Investee Company					Shares	Percentage of	Carrying Amount	Net Income	Share of Profit
		Location	Main Activities	September 30,	December 31,				(Loss) of	(Loss)	Note
				2021	2020		Ownership	(Notes 1 and 2)	Investee	of Investee (Notes 1 and 2)
ADP	ADPNL	Netherlands	Sales and sales support of TFT-LCD panels	96,733	-	-	100.00%	97,277	3,632	3,632	Subsidiary
			and holding company								(Note 6)
ADP	Jector	Taiwan ROC	Introduction of smart field construction and	120,000	-	12,000	78.43%	116,441	(4,538)	(3,559)	Subsidiary
			other related software and hardware
			solutions
SREC	SGPC	Taiwan ROC	Solar power generation	820,000	-	56,811	100.00%	723,149	63,072	60,015	Subsidiary
											(Note 7)
SREC	EGPC	Taiwan ROC	Solar power generation	280,000	-	24,500	100.00%	324,911	36,918	35,416	Subsidiary
											(Note 7)
AUOLB	AUOUS	United States	Sales and sales support of TFT-LCD panels	USD 1,000	USD 1,000	1,000	100.00%	USD 2,517	USD (224)	USD (224)	Subsidiary
AUOLB	AUOJP	Japan	Sales support of TFT-LCD panels	USD 276	USD 276	1	100.00%	USD 1,840	USD 39	USD 39	Subsidiary
AUOLB	AUKR	South Korea	Sales support of TFT-LCD panels	USD 155	USD 155	-	100.00%	USD 1,133	USD 200	USD 200	Subsidiary
AUOLB	AUCZ	Czech	Assembly of solar modules	-	USD 20,531	-	-	-	USD 2	USD 2	(Note 8)
		Republic
AUOLB	AUSK	Slovakia	Repairing of TFT-LCD modules	USD 1,359	USD 1,359	-	100.00%	USD 24,274	USD 345	USD 345	Subsidiary
		Republic
AUOLB	AUST	Singapore	Manufacturing TFT-LCD panels based on	USD 241,487	USD 241,487	907,114	100.00%	USD 92,142	USD 2,919	USD 2,919	Subsidiary
			low temperature polysilicon technology
AUOLB	AUVI	United States	Research and development and IP related	USD 5,000	USD 5,000	5,000	100.00%	USD 6,201	USD 200	USD 200	Subsidiary
			business
AUOLB	BVLB	Malaysia	Holding company	USD 85,171	USD 85,171	85,171	70.29%	USD 20,838	USD 591	USD 416	Subsidiary
AUOLB	AUSG	Singapore	Holding company and sales support of TFT-	USD 9,958	USD 9,958	266,268	100.00%	USD 6,858	USD (12)	USD (12)	Subsidiary
			LCD panels
AUSG	AEUS	United States	Sales support of solar-related products	USD 3,510	USD 3,510	3,510	100.00%	USD 2,965	USD (123)	USD (123)	Subsidiary
AUSG	ADPNL	Netherlands	Sales and sales support of TFT-LCD panels	-	USD 3,245	-	-	-	-	-	Subsidiary
			and holding company								(Note 6)
DPLB	DPHK	Hong Kong	Holding company	USD 103,785	USD 103,785	10	100.00%	USD 185,841	USD (1,894)	USD (1,894)	Subsidiary
											(Note 4)
DPLB	DPSK	Slovakia	Manufacturing and sales of automotive	USD 4,216	USD 4,216	-	100.00%	USD 434	USD (392)	USD (392)	Subsidiary
		Republic	parts
FHVI	FTMI	Mauritius	Holding company	USD 6,503	USD 6,503	6,503	100.00%	USD 63,645	USD (9,093)	USD (9,093)	Subsidiary
FHVI	FWSA	Samoa	Holding company	USD 19,000	USD 19,000	19,000	100.00%	USD 16,473	USD 318	USD 318	Subsidiary
FHVI	PMSA	Samoa	Holding company	USD 39,673	USD 39,673	31,993	100.00%	USD 49,967	USD 572	USD 572	Subsidiary
ADCM	ADHLD	Caymen	Holding company	USD 2,700	-	2,700	30.00%	USD 1,888	USD (2,685)	USD (806)	Subsidiary
ADPNL	ADPUS	United States	Sales and sales support of TFT-LCD panels	USD 1,500	USD 1,500	1	100.00%	USD 1,530	USD 30	USD 30	Subsidiary
ADPNL	ADPJP	Japan	Sales and sales support of TFT-LCD panels	USD 508	USD 508	1	100.00%	USD 484	USD 36	USD 36	Subsidiary
ADHLD	ADSG	Singapore	Holding company	USD 7,300	-	7,300	100.00%	USD 4,611	USD (2,666)	USD (2,666)	Subsidiary

				Original Investment Amount	Original Investment Amount	September 30, 2021	September 30, 2021	September 30, 2021		Investor’s
Investor Company	Investee Company					Shares	Percentage of	Carrying Amount	Net Income	Share of Profit
		Location	Main Activities	September 30,	December 31,				(Loss) of	(Loss)	Note
				2021	2020		Ownership	(Notes 1 and 2)	Investee	of Investee (Notes 1 and 2)
ADSG	ADTW	Taiwan ROC	Design and sales of software and hardware	USD 1,080	-	3,000	100.00%	USD 917	USD (172)	USD (172)	Subsidiary
			integration system and equipment, software
			development and consulting services
			relating to intelligent manufacturing
M.Setek	Ichijo	Japan	Manufacturing of semiconductor equipment	JPY 5,000	JPY 5,000	-	38.46%	-	-	-	Associate
	Seisakusyo		and related parts								(Note 3)
	Co., Ltd.
CQIL	CQHLD	United	Holding company	USD 26,548	USD 29,118	635,730	100.00%	USD 31,261	USD (22)	USD (22)	Subsidiary
		Kingdom
CQHLD	CQUK	United	Sales and sales support of content	GBP 1,874	GBP 1,874	-	100.00%	GBP 90	GBP (18)	GBP (18)	Subsidiary
		Kingdom	management system
CQHLD	CQUS	United States	Sales of content management system and	GBP 19,948	GBP 19,948	13	100.00%	GBP 10,790	GBP 576	GBP 576	Subsidiary
			hardware
CQHLD	CQCA	Canada	Research and development of content	GBP 798	GBP 798	-	100.00%	GBP 586	GBP 69	GBP 69	Subsidiary
			management system
CQUS	JRUK	United	Development and sales of content	USD 1,500	USD 1,500	1	100.00%	USD 1,677	USD 31	USD 31	Subsidiary
		Kingdom	management system and sales of the related
			hardware
CQUS	JRUS	United States	Development and sales of content	USD 8,000	USD 8,000	18	100.00%	USD 7,422	USD (434)	USD (434)	Subsidiary
			management system and sales of the related
			hardware

Note 1: All inter-company transactions among AUO and its subsidiaries have been eliminated in the consolidated financial statements.

Note 2: Inclusive of the amortization of differences between the investment cost and the entity’s share of the net value of investee, and the effect of upstream and sidestream transactions.

Note 3: The carrying amount includes accumulated impairment loss.

Note 4: The registration of the alteration of DPHK’s common stock has not been completed. Note 5: On January 6, 2021, Lextar carried out a joint share exchange with Epistar for a newly incorporated company, Ennostar. See Note 6(7) for the relevant information. Note 6: As part of a business restructuring, AUSG sold all its shareholdings in ADPNL to ADP in January 2021. Note 7: SREC and its subsidiaries were included in the Company’s consolidated financial statements from January 2021. See Note 6(8) for the relevant information. Note 8: The liquidation process was completed in July 2021. Note 9: Being disposed in July 2021.

AU OPTRONICS CORP. AND SUBSIDIARIES

Information on Investment in Mainland China

For the nine months ended September 30, 2021 (Amount in thousands of New Taiwan Dollars and foreign currencies indicated)

Table 10

1. AUO `：`

(1) Related information on investment in Mainland China

					Investment	Investment	Accumulated				Carrying
				Accumulated								Accumulated
					Flows		Outflow of		%		Amount of
				Outflow of						Investor’s		Inward
		Total Amount					Investment	Net Income	Ownership		the
				Investment						Share of		Remittance
Investee		of Paid-in	Method of				from Taiwan	(Loss) of	through		Investment
	Main Activities			from Taiwan						Profit (Loss)		of Earnings	Note
Company		Capital	Investment
				as of January	Outflow	Inflow	as of	Investee	Direct or	of Investee	as of	as of
		(Note 2)
				1, 2021			September	(Notes 4 and 5)	Indirect	(Notes 4 and 5)	September	September
							30, 2021		Investment		30, 2021
				(Note 2)								30, 2021
							(Note 2)				(Note 2)

ACareSZ	Design, development and sales of software and	86,442	(Note 1)	-	-	-	-	(28,735)	100%	(28,735)	11,938	-
	hardware for health care industry
ADSZ	Business management consulting and services	139,330	(Note 1)	-	139,330	-	139,330	(70,052)	100%	(70,052)	68,945	-
	of technology promotion and application
AESD	Planning, design and development of	8,644	(Note 1)	-	-	-	-	(4)	100%	(4)	2,383	-
	construction project for environmental
	protection and related project management
AESZ	Planning, design and development of	51,865	(Note 1)	-	-	-	-	(11,037)	100%	(11,037)	20,416	-
	construction project for environmental
	protection and related project management
AUKS	Manufacturing and sales of TFT-LCD panels	26,779,226	(Note 1)	13,657,405	-	-	13,657,405	2,792,879	51%	1,424,368	6,687,552	-
AUSH	Sales support of TFT-LCD panels	83,598	(Note 1)	27,866	-	-	27,866	(38,126)	100%	(38,126)	303,041	-
AUSJ	Manufacturing and assembly of TFT-LCD	3,009,528	(Note 1)	2,229,280	-	-	2,229,280	109,920	100%	109,920	4,022,767	-
	modules; leasing
AUSZ	Manufacturing, assembly and sales of TFT-LCD	7,746,748	(Note 1)	5,573,200	-	-	5,573,200	1,202,879	100%	1,202,879	17,340,629	-
	modules
AUXM	Manufacturing, assembly and sales of TFT-LCD	6,966,500	(Note 1)	6,966,500	-	-	6,966,500	689,372	100%	689,372	14,980,665	-
	modules
BVHF	Manufacturing and sales of liquid crystal	2,046,758	(Note 1)	-	-	-	-	16,751	100%	16,751	824,771	-
	products and related parts
BVXM	Manufacturing and sales of liquid crystal	2,593,260	(Note 1)	-	-	-	-	18,685	100%	18,685	1,310,183	-
	products and related parts; leasing

					Investment	Investment	Accumulated				Carrying
				Accumulated								Accumulated
					Flows		Outflow of		%		Amount of
				Outflow of						Investor’s		Inward
		Total Amount					Investment	Net Income	Ownership		the
				Investment						Share of		Remittance
Investee		of Paid-in	Method of				from Taiwan	(Loss) of	through		Investment
	Main Activities			from Taiwan						Profit (Loss)		of Earnings	Note
Company		Capital	Investment				f		i		f
				as of January	Outflow	Inflow	as o	Investee	Drect or	of Investee	as o	as of
		(Note 2)
				1, 2021			September	(Notes 4 and 5)	Indirect	(Notes 4 and 5)	September	September
							30, 2021		Investment		30, 2021
				(Note 2)								30, 2021
							(Note 2)				(Note 2)

EDT	Design and sales of software and hardware	21,611	(Note 1)	-	-	-	-	(10,296)	100%	(10,296)	(1,641)	-
	integration system and equipment relating to
	intelligent manufacturing
MIS	Development and licensing of software relating	86,442	(Note 1)	-	-	-	-	(49,417)	100%	(49,417)	(14,752)	-
	to intelligent manufacturing, and related
	consulting services
MISXM	Sales of software and hardware relating to	21,611	(Note 1)	-	-	-	-	(4,694)	100%	(4,694)	17,053	-
	intelligent manufacturing, and related
	consulting services

(2) Upper limit on investment in Mainland China

Accumulated Investment in Mainland China as of September 30, 2021 (Note 2)	Investment Amounts Authorized by the Investment Commission, MOEA (Note 2)	Upper Limit on Investment Stipulated by the Investment Commission, MOEA (Note 3)
28,593,581 (USD 1,026,110)	37,666,716 (USD 1,344,003 and HKD 60,000)	145,369,686

Note 1: Indirect investments in Mainland China through companies registered in a third region.
Note 2: Amounts denominated in foreign currencies are translated into New Taiwan Dollars using the exchange rates at the reporting date.
Note 3: Pursuant to the Regulations Governing Permission for Investment and Technical Cooperation in the Mainland Area, AUO’s accumulated investments in Mainland China did not exceed the upper limit on investment amount or ratio stipulated by the Investment Commission, Ministry of Economic Affairs (“MOEA”).
Note 4: Amounts were recognized based on the investees’ reviewed financial statements.
Note 5: Amounts denominated in foreign currencies are translated into New Taiwan Dollars using the average exchange rates for the nine months ended September 30, 2021.
Note 6: BVHF is 100% owned by BVLB, a jointly-owned subsidiary of AUO and DPTW.

2. DPTW and ADP:

(1) Related information on investment in Mainland China

		Ttl At			Investment	Investment	Accumulated	Net Income		Investor’s	Carrying
				Accumulated Outflow of
					Flows		Outflow of		%		Amount of	Accumulated
Investee		oa moun of Paid-in	Method of	Investment			Investment from Taiwan	(Loss) of	Ownership through	Share of	the Investment	Inward Remittance of
Company	Main Activities	Capital	Investment	from Taiwan			as of	Investee	Direct or	Profit (Loss)	as of	Earnings as of	Note
		(Note 4)		as of January 1, 2021	Outflow	Inflow	September	(Notes 2 and 6)	Indirect	of Investee (Notes 2 and 6)	September	September 30,
							30, 2021		Investment		30, 2021	2021
				(Note 4)			(Note 4)				(Note 4)

BVHF	Manufacturing and sale of liquid crystal	2,046,758	(Note 1)	445,856	-	-	445,856	16,751	29.71%	16,751	824,771	-	Note 5
	products and related parts
DPSZ	Manufacturing and sale of backlight modules	696,650	(Note 1)	417,990	-	-	417,990	(127,859)	100%	(127,859)	1,051,433	1,279,996	Note 9
	and related parts
DPXM	Manufacturing and sale of backlight modules	1,950,620	(Note 1)	1,950,620	-	-	1,950,620	72,176	100%	72,176	4,014,788	1,752,608
	and related parts
FHWJ	Manufacturing and sale of backlight modules	181,129	(Note 1)	228,501	-	-	228,501	660	100%	660	50,912	-
	and related parts
FPWJ	Manufacturing, sales and trading of precision	808,114	(Note 1)	529,454			529,454	13,621	100%	13,621	685,805	-	Note 8
	plastic parts
FTKS	Manufacturing and sale of backlight modules	1,003,176	(Note 1)	1,003,176	-	-	1,003,176	16,066	100%	16,066	1,392,374	-
	and related parts
FTWJ	Manufacturing and sale of backlight modules	975,310	(Note 1)	181,129	-	-	181,129	(259,956)	100%	(259,956)	1,546,743	392,201	Note 7
	and related parts
ADPSZ	Sales and sales support of TFT-LCD panels	20,900	-	-	20,900	-	20,900	1,658	100%	1,658	22,883	-

(2) Upper limit on investment in Mainland China

Entity	Accumulated Investment in Mainland China as of September 30, 2021 (Note 4)	Investment Amounts Authorized by the Investment Commission, MOEA (Note 4)	Upper Limit on Investment Stipulated by the Investment Commission, MOEA (Note 3)
DPTW	4,756,726 (USD 170,700)	4,585,107 (USD 164,541)	5,445,930
ADP	20,900 (USD 750)	20,900 (USD 750)	2,702,646

Note 1: Indirect investments in Mainland China through companies registered in a third region.
Note 2: Amounts were recognized based on the investees’ reviewed financial statements.
Note 3: Pursuant to the Regulations Governing Permission for Investment and Technical Cooperation in the Mainland Area, DPTW’s and ADP’s accumulated investments in Mainland China did not exceed the upper limit on investment amount or ratio stipulated by the Investment Commission, Ministry of Economic Affairs (“MOEA”).

Note 4: Amounts denominated in foreign currencies are translated into New Taiwan Dollars using the exchange rates at the reporting date.
Note 5: BVHF is 100% owned by BVLB, a jointly-owned subsidiary of AUO and DPTW. Accordingly, the share of profit (loss) of investee and the carrying amount of the investment as of September 30, 2021 disclosed in the table are presented based on 100% held.
Note 6: Amounts denominated in foreign currencies are translated into New Taiwan Dollars using the average exchange rates for the nine months ended September 30, 2021.
Note 7: The amount of paid-in capital includes the capitalization of retained earnings amounting to USD28,500 thousand for the years from 2005 to 2007.
Note 8: The amount of paid-in capital includes the capital injection of USD10,000 thousand from the offshore holding company, which was originally from FTWJ’s appropriation of earnings.
Note 9: The amount of paid-in capital includes the capital injection of USD1,000 thousand from DPLB in 2010 and the capitalization of retained earnings of USD9,000 thousand from DPSZ in 2012.

AI assistant

AUO — Interim / Quarterly Report 2021

52062_rns_2021-12-28_28f458f8-c38d-4deb-a8f1-2b672a6a7762.pdf

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Financial Statements

Independent Auditors’ Review Report

Introduction

Scope of Review

Conclusion

KPMG

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with the generally accepted auditing standards as of September 30, 2021 and 2020 AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2021, December 31, 2020, and September 30, 2020

(Expressed in thousands of New Taiwan dollars)

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Three and Nine Months Ended September 30, 2021 and 2020

(Expressed in thousands of New Taiwan dollars, except for Earnings (loss) per share)

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

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the Nine Months Ended September 30, 2021 and 2020

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2021 and 2020

(Expressed in thousands of New Taiwan dollars)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued)

For the Nine Months Ended September 30, 2021 and 2020

(Expressed in thousands of New Taiwan dollars)

Notes to Consolidated Financial Statements

1. Organization

2. The Authorization of Financial Statements

3. Application of New and Revised Standards, Amendments and Interpretations:

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

4. Summary of Significant Accounting Policies

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(2) Basis of consolidation

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(3) Employee benefits

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(5) Noncurrent assets held for sale

5. Critical Accounting Judgments and Key Sources of Estimations and Assumptions Uncertainty

6. Description of Significant Accounts

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

b. Joint ventures

(8) Acquisition of subsidiaries

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(9) Acquisition of Business

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

b. Identifiable assets acquired and liabilities assumed

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(10) Property, Plant and Equipment

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(iii) Significant lease agreements

(iv) Sublease of right-of-use assets

(v) Additional lease information

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

b. Lessor

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(17) Provisions

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

b. Defined contribution plans

a. Common stock

b. Capital surplus

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AUO Interim / Quarterly Report 2021