Stock Code:2409

AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Three Months Ended March 31, 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 March 31, 2021 and 2020, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 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 March 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 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) April 28, 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 March 31, 2021 and 2020 AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2021, December 31, 2020, and March 31, 2020

(Expressed in thousands of New Taiwan dollars)

March 31, 2021 Assets Amount % Current assets: 1100 Cash and cash equivalents (Note 6(1)) $ 103,783,772 24 1110 Financial assets at fair value through profit or loss`－` current (Note 6(2)) 53,246 - 1170 Notes and accounts receivable, net (Note 6(4)) 51,286,118 12 1180 Accounts receivable from related parties, net (Notes 6(4)&7) 2,096,758 - 1210 Other receivables from related parties (Note 7) 1,609 - 1220 Current tax assets 142,629 - 130X Inventories (Note 6(5)) 29,069,799 7 1476 Other current financial assets (Notes 6(4),(20)&8) 777,960 - 1460 Noncurrent assets held for sale (Note 6(9)) 150,566 - 1479 Other current assets (Note 6(13)) 3,913,091 1 191,275,548 44 Noncurrent assets: 1517 Financial assets at fair value through other comprehensive income`－`noncurrent (Note 6(3)) 647,240 - 1550 Investments in equity`－`accounted investees (Note 6(6)) 22,074,442 5 1600 Property, plant and equipment (Notes 6(9),7&8) 181,360,441 42 1755 Right-of-use assets (Note 6(10)) 11,147,287 3 1760 Investment property (Note 6(11)) 1,487,157 - 1780 Intangible assets (Notes 6(8)&(12)) 12,829,129 3 1840 Deferred tax assets 6,014,930 2 1900 Other noncurrent assets (Notes 6(13)&8) 3,113,101 1 238,673,727 56 Total Assets $ 429,949,275 100	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	March 31, 2020 Amount % 76,788,669 20 1,604,981 - 26,344,301 7 1,539,738 - 42,761 - 85,233 - 27,882,271 7 1,980,121 1 - - 3,249,533 1 139,517,608 36 5,299,917 1 8,468,375 2 200,951,301 52 11,955,462 3 1,538,984 1 13,001,269 3 5,204,320 1 2,304,399 1 248,724,027 64 388,241,635 100 March 31, 2021 Liabilities and Equity Amount % Current liabilities: 2100 Short-term borrowings (Note 6(14)) $ 257,000 - 2120 Financial liabilities at fair value through profit or loss`－`current (Note 6(2)) 137,673 - 2170 Accounts payable 48,218,265 11 2180 Accounts payable to related parties (Note 7) 7,591,570 2 2213 Equipment and construction payable (Note 7) 3,043,797 1 2220 Other payables to related parties (Note 7) 19,406 - 2230 Current tax liabilities 2,045,349 1 2250 Provisions`－`current (Note 6(16)) 633,005 - 2280 Lease liabilities`－`current (Note 6(10)) 547,079 - 2399 Other current liabilities (Notes 6(18),(20)&(21)) 23,144,039 5 2322 Current installments of long-term borrowings (Notes 6(15)&8) 23,200,766 5 108,837,949 25 Noncurrent liabilities: 2527 Contract liabilities`－`nonccurrent (Note 6(20)) 10,170,780 2 2540 Long-term borrowings, excluding current installments (Notes 6(15)&8) 92,134,378 22 2550 Provisions`－`noncurrent (Note 6(16)) 1,028,342 - 2570 Deferred tax liabilities 3,178,108 1 2580 Lease liabilities`－`noncurrent (Note 6(10)) 9,594,717 2 2600 Other noncurrent liabilities 2,089,293 1 118,195,618 28 Total liabilities 227,033,567 53 Equity(Note 6(18)): Equity attributable to shareholders of AU Optronics Corp. : 3100 Common stock 96,242,451 22 3200 Capital surplus 60,303,118 14 3300 Retained earnings 38,824,348 9 3400 Other components of equity (3,273,719) (1) 3500 Treasury shares (981,164) - 191,115,034 44 Non-controlling interests 36XX Non-controlling interests 11,800,674 3 Total equity 202,915,708 47 Total Liabilities and Equity $ 429,949,275 100	March 31, 2021		December 31, 2020		March 31, 2020 Amount % 1,475,384 1 23,874 - 41,114,612 11 6,327,973 2 4,600,058 1 51,117 - 1,312,081 - 660,797 - 596,619 - 16,302,125 4 10,808,319 3 83,272,959 22 - - 109,230,073 28 1,023,613 - 3,180,208 1 10,248,093 3 1,766,589 - 125,448,576 32 208,721,535 54 96,242,451 25 60,560,788 15 17,912,288 4 (4,593,579) (1) (1,013,423) - 169,108,525 43 10,411,575 3 179,520,100 46 388,241,635 100

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 Months Ended March 31, 2021 and 2020

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

Three Months Ended March 31,	Three Months Ended March 31,	Three Months Ended March 31,
2021	% 101 1 100 78 22 1 3 4 8 14 - - 1 (1) 1 1 15 1 14 - 1 1 (1) - - (1) - 14 14 - 14 14 - 14 1.25 1.24	2020 Amount 53,939,137 248,954 53,690,183 54,044,792 (354,609) 856,024 1,740,704 2,495,215 5,091,943 (5,446,552) 153,403 301,592 87,171 (793,678) 43,838 (207,674) (5,654,226) 123,871 (5,778,097) (2,244,942) (1,059) (2,246,001) (554,895) (2,286) 108,316 (448,865) (2,694,866) (8,472,963) (4,991,493) (786,604) (5,778,097) (7,579,629) (893,334) (8,472,963)
Amount $ 83,340,113 399,494 82,940,619 64,677,786 18,262,833 1,099,988 2,255,552 2,889,068 6,244,608 12,018,225 105,582 302,772 570,586 (669,170) 302,803 612,573 12,630,798 789,283 11,841,515 (13,437) 321,538 308,101 (624,691) 127,110 90,960 (406,621) (98,520) $ 11,742,995 $ 11,834,091 7,424 $ 11,841,515 $ 11,815,124 (72,129) $ 11,742,995 $ $

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 Three Months Ended March 31, 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 - - - (24) 16,338 - 60,560,788 60,587,684 - - - - (10) (323,592) 39,036 - - 60,303,118		Retained Earnings		Subtotal 22,903,722 (4,991,493) 73 (4,991,420) - - (14) 17,912,288 30,258,282 (2,850,967) 11,834,091 (721) 11,833,370 - (401,507) - (14,830) - 38,824,348	Other	Components of Equity Unrealized Gains (Losses) on Financial Assets at Fair Value through Other Comprehensive Income Subtotal 1,124,598 (2,005,384) - - (2,246,074) (2,588,209) (2,246,074) (2,588,209) - - - - 14 14 (1,121,462) (4,593,579) (63,783) (3,270,303) - - - - 308,822 (18,246) 308,822 (18,246) - - - - - - 14,830 14,830 - - 259,869 (3,273,719)	Treasury Shares (1,013,423) - - - - - - (1,013,423) (1,013,423) - - - - - - 32,259 - - (981,164)
					Cumulative Translation Differences (3,129,982) - (342,135) (342,135) - - - (3,472,117) (3,206,520) - - (327,068) (327,068) - - - - - (3,533,588)	Unrealized Gains (Losses) on Financial Assets at Fair Value through Other Comprehensive Income 1,124,598 - (2,246,074) (2,246,074) - - 14 (1,121,462) (63,783) - - 308,822 308,822 - - - 14,830 - 259,869
	Legal Reserve 7,691,688 - - - - - - 7,691,688 7,691,688 - - - - - - - - - 7,691,688	Special Reserve 847,770 - - - - - - 847,770 2,005,384 - - - - - - - - - 2,005,384	Unappropriated Earnings 14,364,264 (4,991,493) 73 (4,991,420) - - (14) 9,372,830 20,561,210 (2,850,967) 11,834,091 (721) 11,833,370 - (401,507) - (14,830) - 29,127,276

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 Three Months Ended March 31, 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 - compensation cost of share-based payments - share of profit of equity-accounted investees - losses (gains) on disposals of property, plant and equipment, net - gains on disposals of investments and financial assets, net - unrealized foreign currency exchange losses (gains) - others Changes in operating assets and liabilities: - notes and accounts receivable - receivables from related parties - inventories - other operating assets - contract liabilities - accounts payable - payables to related parties - net defined benefit liability - provisions - other operating liabilities Cash generated from operations Interest received Interest paid Income taxes paid Net cash generated from (provided by) operating activities	Three Months Ended March 31, 2021 2020 $ 12,630,798 (5,654,226) 8,534,645 8,978,655 51,632 79,896 24,811 (95,819) 650,591 770,809 (105,582) (153,403) 39,133 - (302,803) (43,838) 500 (28,476) (886,583) (162) (238,647) 230,594 33,622 12,057 (3,721,066) 5,723,715 598 199,956 (2,319,930) (4,426,361) (973,067) 205,617 10,580,853 (89,489) (1,743,641) (5,172,538) 277,426 (612,322) (19,081) (30,500) (132,993) (78,954) (695,516) (2,626,586) 21,685,700 (2,811,375) 102,676 179,217 (634,920) (755,187) (159,059) (339,714) 20,994,397 (3,727,059)
	2021 $ 12,630,798 8,534,645 51,632 24,811 650,591 (105,582) 39,133 (302,803) 500 (886,583) (238,647) 33,622 (3,721,066) 598 (2,319,930) (973,067) 10,580,853 (1,743,641) 277,426 (19,081) (132,993) (695,516) 21,685,700 102,676 (634,920) (159,059) 20,994,397

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
- compensation cost of share-based payments
- share of profit of equity-accounted investees
- losses (gains) on disposals of property, plant and equipment, net
- gains on disposals of investments and financial assets, net
- unrealized foreign currency exchange losses (gains)
- others
Changes in operating assets and liabilities:
- notes and accounts receivable
- receivables from related parties
- inventories
- other operating assets
- contract liabilities
- accounts payable
- payables to related parties
- net defined benefit liability
- provisions
- other operating liabilities
Cash generated from operations
Interest received
Interest paid
Income taxes paid
Net cash generated from (provided by) operating activities

Three Months Ended
March 31,
2021
2020
$ 12,630,798
(5,654,226)
8,534,645
8,978,655
51,632
79,896
24,811
(95,819)
650,591
770,809
(105,582)
(153,403)
39,133
-
(302,803)
(43,838)
500
(28,476)
(886,583)
(162)
(238,647)
230,594
33,622
12,057
(3,721,066)
5,723,715
598
199,956
(2,319,930)
(4,426,361)
(973,067)
205,617
10,580,853
(89,489)
(1,743,641)
(5,172,538)
277,426
(612,322)
(19,081)
(30,500)
(132,993)
(78,954)
(695,516)
(2,626,586)
21,685,700
(2,811,375)
102,676
179,217
(634,920)
(755,187)
(159,059)
(339,714)
20,994,397
(3,727,059)

2021
$ 12,630,798
8,534,645
51,632
24,811
650,591
(105,582)
39,133
(302,803)
500
(886,583)
(238,647)
33,622
(3,721,066)
598
(2,319,930)
(973,067)
10,580,853
(1,743,641)
277,426
(19,081)
(132,993)
(695,516)
21,685,700
102,676
(634,920)
(159,059)
20,994,397

(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 Three Months Ended March 31, 2021 and 2020

(Expressed in thousands of New Taiwan dollars)

		Three Months Ended	Three Months Ended
		March 31,
		2021	2020
Cash flows from investing activities:
Acquisitions of financial assets at fair value through profit or loss		-	(434,015)
Disposals of financial assets at fair value through profit or loss		556,338	456,632
Acquisitions of financial assets at fair value through other		(298,259)	-
comprehensive income
Disposals of financial assets at fair value through other comprehensive		-	5,551
income
Acquisitions of financial assets at amortized cost		(260,844)	-
Acquisitions of equity-accounted investees		(1,946,963)	(2,412,945)
Disposals of equity-accounted investees		61,750	83,824
Acquisitions of property, plant and equipment		(3,300,496)	(5,275,721)
Disposals of property, plant and equipment		4,317	62,962
Decrease in refundable deposits		34,541	56,392
Decrease (increase) in other financial assets		(10,987)	21,577
Net cash inflow arising from acquisition of subsidiaries		227,701	-
Net cash outflow arising from acquisition of business		-	(192,740)
Net cash used in investing activities		(4,932,902)	(7,628,483)
Cash flows from financing activities:
Proceeds from short-term borrowings		929,299	63,982
Repayments of short-term borrowings		(872,299)	(300,000)
Proceeds from long-term borrowings		231,000	8,520,000
Repayments of long-term borrowings		(2,570,154)	(344,038)
Payment of lease liabilities		(147,410)	(171,773)
Guarantee deposits received		17,114	316
Treasury shares sold to employees		32,162	-
Net change of non-controlling interests and others		(10)	(24)
Net cash generated from (provided by) financing activities		(2,380,298)	7,768,463
Effect of exchange rate change on cash and cash equivalents		(172,112)	(74,024)
Net increase (decrease) in cash and cash equivalents		13,509,085	(3,661,103)
Cash and cash equivalents at January 1		90,274,687	80,449,772
Cash and cash equivalents at March 31	$	103,783,772	76,788,669

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 March 31, 2021 and 2020 AU OPTRONICS CORP. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 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 April 28, 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) 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:

●Annual Improvements to IFRSs 2018–2020
●Amendments to IFRS 3, Reference to the Conceptual Framework
●Amendments to IFRS 10 and IAS 28, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
●Amendments to IFRS 16, Extension of Practical Expedient Regarding COVID-19-related Rent Concessions for One Year
●IFRS 17, Insurance Contracts and amendments to IFRS 17
●Amendments to IAS 1, Classification of Liabilities as Current or Non-current
●Amendments to IAS 1, Disclosure of Accounting Policies
●Amendments to IAS 8, Definition of Accounting Estimates
－
●Amendments to IAS 16, Property, Plant and Equipment Proceeds before Intended Use
－
●Amendments to IAS 37, Onerous Contracts Cost of Fulfilling a Contract

As of the date that the accompanying consolidated financial statements were issued, the Company continues in assessing the impact on its financial position and results of operations as a result of the application of abovementioned standards and interpretations except for IFRS 17, Insurance Contracts and the amendments to IFRS 17 that are not relevant to the Company. The related impact will be disclosed when the assessment is complete.

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	Percentage of Ownership (%)	Percentage of Ownership (%)
			March 31, 2021	December 31, 2020 March 31, 2020
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 ADSG	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) AUO Digitech (Suzhou) Co., Ltd. (ADSZ)	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) Management consulting (PRC)	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) 100.00 100.00 100.00	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 (1) - 100.00 (1) - 100.00 (1) - - - - - 100.00 (1) - 41.05 (3) 41.05 (3) 100.00 (1) - 100.00 (1) - 100.00 (1) -

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of Investor	Name of Subsidiary	Main Activities and Location	Percentage of Ownership (%)	Percentage of Ownership (%)
			March 31, 2021	December 31, 2020 March 31, 2020
ADSG ACTW ACTW SDMC AULB AULB AULB AULB AULB AULB AULB AULB AULB AULB AULB AULB AULB AULB and DPTW SREC SREC AUSG ADP and AUSG	AUO Digitech Taiwan Inc. (ADTW) Sanda Materials Corporation (SDMC) AUO Crystal (Malaysia) Sdn. Bhd. (ACMK) M.Setek Co., Ltd. (M.Setek) AU Optronics Corporation America (AUUS) 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) Evergen Power Corporation (EGPC) AUO Green Energy America Corp. (AEUS) AUO Display Plus Netherlands B.V. (ADPNL, formerly AUO Green Energy Europe B.V. (AENL))(5)	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) Solar power generation (Taiwan ROC) Sales support activities (United States) Holding, sales and sales support activities (Netherlands)	100.00 (1) 100.00 100.00 99.9991 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 51.00 100.00 100.00 100.00 (2) 100.00 (2) 100.00 100.00	- - 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 - - - - 100.00 100.00 100.00 100.00

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of Investor	Name of Subsidiary	Main Activities and Location	Percentage of Ownership (%)	Percentage of Ownership (%)
			March 31, 2021	December 31, 2020 March 31, 2020
ADP ADPNL ADPNL AUXM AUSH AUSH ADSZ and AUSH ADSZ and AUSH AESZ CQIL CQHLD CQHLD CQHLD CQUS CQUS DPTW DPTW DPTW FHVI	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. (A-Care) AUO Envirotech (Suzhou) Co., Ltd. (AESZ, formerly U-Fresh Technology (Suzhou) Co., Ltd. (UFSZ)) 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) U-Fresh Environmental Technology (Shandong) Co., Ltd. (UFSD) 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)	Sales and sales support activities (PRC) Sales and sales support activities (United States) Sales support activities (Japan) Manufacturing and sales company (PRC) Intelligent health care services (PRC) Construction project and related project management (PRC) Integration service of software and hardware (PRC) Development and licensing of software (PRC) Construction project and related project management (PRC) 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)	100.00 (1) 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	- - 100.00 (1) - 100.00 (1) - 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of Investor	Name of Subsidiary	Main Activities and Location	Percentage of Ownership (%)	Percentage of Ownership (%)
			March 31, 2021	December 31, 2020 March 31, 2020
FHVI FHVI FFMI FTMI FWSA and FTMI PMSA DPLB DPLB DPHK DPHK BVLB	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)	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)	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

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.
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(7) 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 March 31, 2021, the liquidation of AUCZ, DPSK and FTKS is still in process.
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.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(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.

(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.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

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

Cash on hand, demand deposits and checking accounts Time deposits Government bonds with reverse repurchase agreements	March 31, 2021 $ 58,087,969 45,695,803 - $ 103,783,772	December 31, 2020 43,921,304 46,353,383 - 90,274,687	March 31, 2020
			37,350,023 39,019,812 418,834
			76,788,669

Refer to Note 6(28) for the disclosure of currency risk and sensitivity analysis of the financial instruments of the Company.

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

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

Financial assets mandatorily measured at FVTPL: Foreign currency forward contracts Structured deposits Financial liabilities held for trading: Foreign currency forward contracts	March 31, 2021 $ 53,246 - $ 53,246 $ 137,673	December 31, 2020 112,319 555,739 668,058 170,956	March 31, 2020
			130,505 1,474,476
			1,604,981
			23,874

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

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

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

	March 31, 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	Maturity date Contract amount Apr. 2021~May 2021 USD 604,900 / NTD 17,183,094 Apr. 2021~May 2021 USD 79,925 / JPY 8,648,480 Apr. 2021~Oct. 2021 USD 143,500 / CNY 947,818 Apr. 2021~May 2021 USD 33,661 / SGD 44,850 May 2021~Jul. 2021 CNY 1,338,356 / USD 203,933 Apr. 2021 EUR 3,000 / JPY 389,885 Apr. 2021 EUR 2,000 / NTD 67,168

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

	March 31, 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 Apr. 2020 USD 102,000 / NTD 3,090,366 Apr. 2020~Jun. 2020 USD 42,850 / JPY 4,716,290 Apr. 2020~Aug. 2020 USD 43,500 / CNY 305,843 Apr. 2020~May 2020 USD 35,811 / SGD 50,267 Apr. 2020~Jun. 2020 USD 738 / MYR 3,136 Apr. 2020~Jun. 2020 CNY 2,003,313 / USD 284,819 Apr. 2020 EUR 9,000 / JPY 1,078,620 Apr. 2020 HKD 61,000 / USD 7,863

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(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	March 31, 2021 $ 117,236 530,004 $ 647,240	December 31, 2020 294,668 328,156 622,824	March 31, 2020
			5,111,559 188,358
			5,299,917

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(6) for the relevant information.

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

Notes receivable Accounts receivable Less: loss allowance Notes and accounts receivable, net Accounts receivable from related parties, net	March 31, 2021 $ 85,996 53,315,214 (18,334) $ 53,382,876 $ 51,286,118 $ 2,096,758	December 31, 2020 179,411 46,635,061 (19,516) 46,794,956 44,718,800 2,076,156	March 31, 2020 134,470 27,767,443 (17,874) 27,884,039 26,344,301 1,539,738

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:

March 31, 2021

Not past due Past due less than 60 days Past due 61~180 days Past due over 180 days	Carrying amount of notes and accounts receivable $ 52,091,001 1,279,680 10,645 3,134 $ 53,384,460	Weighted- average loss rate 0.00% 0.00% 0.03% 45.64%	Loss allowance for lifetime expected credit losses
			93 58 3 1,430
			1,584

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

December 31, 2020	December 31, 2020
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% March 31, 2020	Loss allowance for lifetime expected credit losses
		88 112 - 2,361
		2,561

Carrying amount of notes and accounts receivable $ 27,035,429 840,826 8,034 76 $ 27,884,365	Weighted- average loss rate 0.00% 0.00% 3.05% 100%	Loss allowance for lifetime expected credit losses
		1 4 245 76
		326

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 $16,750 thousand, $16,955 thousand and $17,548 thousand as of March 31, 2021, December 31, 2020, and March 31, 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 Effect of changes in foreign currency exchange rates Balance at end of the period	Three Months Ended March 31, 2021 2020 $ 19,516 17,738 (1,140) 179 (42) (43) $ 18,334 17,874
	2021 $ 19,516 (1,140) (42) $ 18,334

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.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

As at March 31, 2021 and December 31, 2020, the Company did not sell its accounts receivables to banks. As at March 31, 2020, the Company’s accounts receivables sold and derecognized were as follows:

follows:
	March 31, 2020
Underwriting bank Taipei Fubon Bank E.Sun Bank DBS Bank	Factoring limit (in thousands) USD 120,000 USD 50,000 USD 154,000	Amount sold and derecognized (in thousands) USD 77,439 USD 31,877 USD 37,092	Amount advanced (in thousands) Principal terms USD 36,400 See Notes(a)~(d) NTD 1,000,000 USD 28,600 See Notes(a)~(d) NTD 1,000,000 See Notes(a)~(d)

Note (a): Under these facilities, the Company transferred accounts receivable to the respective underwriting banks, which are without recourse subject to the underwriting consents.
Note (b): The Company informed its customers pursuant to the respective facilities to make payment directly to the respective underwriting banks.
Note (c): As of March 31, 2020, total outstanding receivables after the above transactions, net of fees charged by underwriting banks, of $462,935 thousand was recognized under other current financial assets. In addition, interest rate for the balance of advanced amount as of March 31, 2020 was ranging from 0.88% to 3.22%.
Note (d): To the extent of the amount transferred to the underwriting banks, risks of non-collection or potential payment default by customers in the event of insolvency are borne by respective banks. The Company is not responsible for the collection of receivables subject to these facilities, or for any legal proceedings and costs thereof in collecting these receivables. In case any commercial dispute between the Company and customers or other reasons results in the Company’ s failure to perform the obligation under these facilities, the banks have requested the Company to issue promissory notes in the amounts equal to 10 percent of respective facilities or to transfer receivables in the amounts equal to 10 percent of respective facilities. Other than such arrangements, no collaterals were provided by the Company.

(5) Inventories

Finished goods Work-in-progress Raw materials	March 31, 2021 $ 9,277,890 11,698,316 8,093,593 $ 29,069,799		December 31, 2020 8,903,882 11,259,938 6,589,581 26,753,401	March 31, 2020 8,758,692 12,915,917 6,207,662
				27,882,271

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

For the three months ended March 31, 2021 and 2020, the amounts recognized as cost of sales in relation to inventories were $64,677,786 thousand and $54,044,792 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 $212,798 thousand in provisions and $638,430 thousand in reversals for the three months ended March 31, 2021 and March 31, 2020, respectively.

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

(6) Investments in Equity-accounted Investees

March 31, 2021	March 31, 2021	December 31, 2020	December 31, 2020	March 31, 2020
$ 21,886,795 187,647 $ 22,074,442 March 31, 2021 Amount Ownership interest % 11,480,048 20 4,581,934 8 2,326,650 20 1,697,635 33 942,805 17 758,029 25 - - - - 99,694 21,886,795		19,180,565 283,513		8,287,730 180,645
		19,464,078		8,468,375
	March 31, 2021 mount Ownership interest % 11,480,048 20 4,581,934 8 2,326,650 20 1,697,635 33 942,805 17 758,029 25 - - - - 99,694 21,886,795	December		March 31, 2020
A	mount	Amount
	11,480,048 4,581,934 2,326,650 1,697,635 942,805 758,029 - - 99,694	10,220,729 - 2,336,445 1,689,192 809,137 717,953 2,853,386 447,171 106,552
	21,886,795	19,180,565

			2021 $ 300,891 448,648 $ 749,539

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

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 continued to increase 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.

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 Other comprehensive income (loss) Total comprehensive income (loss)	Three Months Ended March 31,	Three Months Ended March 31,
	2021 $ 1,912 - $ 1,912	2020
		1,925 -
		1,925

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

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(7) 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

(8) 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 three months ended March 31, 2020 would have been $53,704,115 thousand and $5,786,583 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.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Acquisition-related costs of $4,719 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 March 31, 2020)

Cash Contingent consideration	Amounts
	$ 216,944 45,147 $ 262,091

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.

The fair value of the contingent consideration estimated using Monte Carlo simulation and expected value was $45,147 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.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

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 March 31, 2020):

Accounts receivable and other current assets Property, plant and equipment Intangible assets Accounts payable and other current liabilities	Fair value $ 24,520 2,256 129,805 (39,283) $ 117,298

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 March 31, 2020):

Consideration transferred Less: Fair value of identifiable net assets	Amounts $ 262,091 (117,298) $ 144,793

(9) Property, Plant and Equipment

	Three Months Ended March	Three Months Ended March	31, 2021	Balance, End of Period 8,840,233 119,397,849 835,811,691 38,262,226
Balance, Beginning of Period $ 8,858,167 120,107,200 834,855,721 38,159,878 1,001,980,966 42,027,956 745,962,397 30,065,978 818,056,331 1,555,481 $ 185,480,116	Effect of change in consolidated entities - - 2,107,168 - 2,107,168 - - - - -	Additions - 5,569 233,988 990,849 1,230,406 723,139 6,168,100 1,460,736 8,351,975 1,450,834	Reclassification, effect of change in exchange rate and others (17,934) (714,920) (1,385,186) (888,501) (3,006,541) (444,519) (1,941,149) (1,121,262) (3,506,930) (1,056,497)
				1,002,311,999
				42,306,576 750,189,348 30,405,452
				822,901,376
				1,949,818
				181,360,441

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Three Months Ended March 31, 2020	Three Months Ended March 31, 2020	Three Months Ended March 31, 2020
Balance, Beginning of Period $ 8,858,648 119,697,249 841,581,837 35,834,437 1,005,972,171 39,170,748 737,292,828 27,646,410 804,109,986 4,872,358 $ 206,734,543	Additions - 9,451 354,950 1,230,417 1,594,818 720,791 6,581,057 1,466,213 8,768,061 1,961,827	Reclassification, effect of change in exchange rate and others 4,436 (97,602) (498,649) (37,889) (629,704) 3,391 (2,596,067) (908,906) (3,501,582) (3,443,704)	Balance, End of Period
			8,863,084 119,609,098 841,438,138 37,026,965
			1,006,937,285
			39,894,930 741,277,818 28,203,717
			809,376,465
			3,390,481
			200,951,301

ACTW decided to dispose part of its plants and related appendages to Phoenix Silicon International Corporation pursuant to the resolution of its Board of Directors’ meeting held on 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. Except for the aforementioned transaction, there was no significant change in the Company’s property, plant and equipment for the three months ended March 31, 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:

Capitalized borrowing costs The interest rates applied for the capitalization	Three Months Ended March 31,	Three Months Ended March 31,
	2021 $ 4,816 0.80%~ 1.62%	2020
		15,694
		1.08%~ 1.77%

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

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(10) Lease Arrangements

a. Lessee

(i) Right-of-use assets

March 31, 2021 Carrying amount of right-of-use assets Land $ 10,770,557 Buildings 356,500 Other equipment 20,230 $ 11,147,287 Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Other equipment	March 31, 2021		December 31, 2020 March 31, 2020 10,891,245 11,449,368 364,442 460,858 21,666 45,236 11,277,353 11,955,462 Three Months Ended March 31,	March 31, 2020
				11,449,368 460,858 45,236
				11,955,462
				2020
				29,938
				139,880 53,093 17,621
				210,594

(ii) Lease liabilities

March 31, 2021

		March 31, 2021
Less than one year Between one and five years More than five years Lease liabilities`－`current Lease liabilities`－`noncurrent	Future minimum lease payments $ 727,984 2,714,693 8,688,857 $ 12,131,534	Interests Present value of minimum lease payments 180,905 547,079 622,594 2,092,099 1,186,239 7,502,618 1,989,738 10,141,796 $ 547,079 $ 9,594,717	Present value of minimum lease payments
			547,079 2,092,099 7,502,618
			10,141,796

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

December 31, 2020	December 31, 2020
Future minimum lease payments $ 735,828 2,738,621 8,859,869 $ 12,334,318	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 March 31, 2020	Present value of minimum lease payments
		553,120 2,105,506 7,638,646
		10,297,272

	Interests Present value of minimum lease payments 192,665 596,619 667,089 2,181,969 1,336,977 8,066,124 2,196,731 10,844,712 $ 596,619 $ 10,248,093	Present value of minimum lease payments
		596,619 2,181,969 8,066,124
		10,844,712

(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 ended March 31, 2021 and 2020, income from sublease were $1,244 thousand and $821 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.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(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:

Expenses relating to short-term leases Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets Variable lease payments not included in the measurement of the lease liability COVID-19-related rent concessions (recognized as deduction of rent expense)	Three Months Ended March 31,	Three Months Ended March 31,
	2021 $ 17,087 $ 131 $ 1,247 $ 748	2020
		2,855
		130
		143
		-

Total cash outflow for the Company’s leases in which it acts as a lessee for the three months ended March 31, 2021 and 2020 were $212,913 thousand and $225,090 thousand, respectively.

b. Lessor

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

(11) Investment Property

Land Buildings Right-of-use assets	March 31, 2021 $ 711,438 750,904 24,815 $ 1,487,157	December 31, 2020 729,163 767,769 25,459 1,522,391	March 31, 2020 734,022 778,885 26,077 1,538,984

There was no significant change in the Company’s investment property for the three months ended March 31, 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.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

As at for the three months ended March 31, 2021 and 2020, there was no investment property that was pledged as collateral.

(12) Intangible Assets

Goodwill Patent and technology fee Others	March 31, 2021 $ 12,018,904 624,370 185,855 $ 12,829,129	December 31, 2020 12,016,993 671,906 112,459 12,801,358	March 31, 2020
			12,025,712 845,752 129,805
			13,001,269

The Company acquired goodwill and other intangible assets from the acquisition of business in February 2020. See Note 6(8) for further details. Except for the aforementioned transaction, there was no significant change in the Company’s intangible assets for the three months ended March 31, 2021 and 2020. Information on amortization for the periods presented is disclosed in Note 6(22). For other relevant information, refer to Note 6(11) of the consolidated financial statements for the year ended December 31, 2020.

(13) Other Current Assets and Other Noncurrent Assets

Refundable and overpaid business tax Refundable deposits Prepayments for equipment Prepayments for purchases Others Less: current Noncurrent	March 31, 2021 $ 1,729,195 374,694 445,338 321,640 4,155,325 7,026,192 (3,913,091) $ 3,113,101	December 31, 2020 1,051,994 432,202 458,707 145,468 2,866,733 4,955,104 (3,175,948) 1,779,156	March 31, 2020 1,273,591 615,129 445,176 169,582 3,050,454 5,553,932 (3,249,533) 2,304,399

(14) Short-term Borrowings

Unsecured borrowings Unused credit facilities Interest rate range	March 31, 2021 $ 257,000 $ 28,695,187 0.90%~ 1.40%	December 31, 2020 200,000 29,045,922 0.97%~ 1.40%	March 31, 2020
			1,475,384
			34,932,141
			1.20%~ 4.35%

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

In January 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 March 31, 2021 were as follows:

March 31, 2021

	March 31, 2021
Description Bank deposits / bank loans	Gross amount of recognized financial assets and liabilities $ 3,479,416	Gross amount of recognized financial assets and liabilities offset in the balance sheet 3,479,416	Net amount of financial assets and liabilities presented in the balance sheet
			-

(15) 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 May 2022 From Nov. 2015 to Nov. 2023 From Apr. 2017 to Oct. 2025 From Apr. 2016 to Apr. 2032	March 31, 2021 $ 42,000,000 23,000,000 6,000,000 15,900,513 8,759,000 19,973,117 115,632,630 (297,486) 115,335,144 (23,200,766) $ 92,134,378 $ 55,287,847 0.80%~ 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%	March 31, 2020 42,000,000 23,000,000 10,000,000 21,372,860 10,863,848 13,038,405
				120,275,113 (236,721)
				120,038,392 (10,808,319)
				109,230,073
				24,045,575
				1.00%~ 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 March 31, 2021, December 31, 2020, and March 31, 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.

(16) Provisions

Balance at January 1, 2021 Additions (Reversals) Usage Effect of change in consolidated entities Effect of change in exchange rate Balance at March 31, 2021 Less: current Noncurrent Balance at January 1, 2020 Additions (Reversals) Usage Effect of change in exchange rate Balance at March 31, 2020 Less: current Noncurrent Current Noncurrent Balance at December 31, 2020	Warranties(i) $ 1,375,327 (52,198) (80,369) - (305) 1,242,455 (457,052) $ 785,403 $ 1,292,246 68,577 (115,444) (77) 1,245,302 (470,227) $ 775,075 $ 568,411 806,916 $ 1,375,327	Litigation, claims and others 410,429 - (426) 8,555 334 418,892 (175,953) 242,939 469,312 - (32,087) 1,883 439,108 (190,570) 248,538 176,243 234,186 410,429	Total 1,785,756 (52,198) (80,795) 8,555 29 1,661,347 (633,005) 1,028,342 1,761,558 68,577 (147,531) 1,806 1,684,410 (660,797) 1,023,613 744,654 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.

(17) 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 ended March 31, 2021 and 2020, the Company set aside $1,676 thousand and $2,175 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 ended March 31, 2021 and 2020, these companies set aside $234,764 thousand and $233,837 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 $198,000 thousand and $141,252 thousand for the three months ended March 31, 2021 and 2020, respectively, for the defined contribution plans based on their respective local government regulations.

(18) Capital and Other Components of Equity

a. Common stock

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

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

As of March 31, 2021, AUO has issued 25,448 thousand ADSs, which were trading on the OTC market and represented 254,479 thousand shares of its common stock.

b. Capital surplus

The components of capital surplus were as follows:

From common stock From convertible bonds From others	March 31, 2021 $ 52,756,091 6,049,862 1,497,165 $ 60,303,118	December 31, 2020 52,756,091 6,049,862 1,781,731 60,587,684	March 31, 2020
			52,756,091 6,049,862 1,754,835
			60,560,788

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

The appropriations of 2020 earnings have been approved by AUO’s Board of Directors in its meeting. The appropriations and cash dividends per share were as follows:

Resolution date of Board of Directors in its meeting Legal reserve Special reserve Cash dividends to shareholders Cash dividends per share (NT$)	March 16, 2021
	$ 735,456 $ 1,264,919 $ 2,850,967 $ 0.30

The legal reserve and special reserve for 2020 are to be presented for approval in AUO’ s shareholders’ meeting to be held on June 10, 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):

Three Months Ended March 31, 2021

Three Months Ended March 31, 2021	Three Months Ended March 31, 2021	Three Months Ended March 31, 2021	Three Months Ended March 31, 2021
Reason for reacquisition Number of shares, Beginning of Period Additions Transfer Number of shares, End of Period Transferring to employees 125,000 - 3,978 121,022 Three Months Ended March 31, 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 loss of equity instruments transferred to retained earnings due to disposal Related tax Balance at March 31, 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 March 31, 2020	Cumulative translation differences $ (3,206,520) (535,854) - 127,110 - 81,676 $ (3,533,588) $ (3,129,982) (433,767) - (2,286) - 93,918 $ (3,472,117)	Unrealized gains (losses) on financial assets at FVTOCI (63,783) - (13,437) 322,259 14,830 - 259,869 1,124,598 - (2,244,942) (1,132) 14 - (1,121,462)	Total (3,270,303) (535,854) (13,437) 449,369 14,830 81,676 (3,273,719) (2,005,384) (433,767) (2,244,942) (3,418) 14 93,918 (4,593,579)

(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 Balance at end of the period	Three Months Ended March 31,	Three Months Ended March 31,
	2021 $ 10,985,674 7,424 (79,553) 887,129 $ 11,800,674	2020
		11,304,909 (786,604) (106,730) -
		10,411,575

(19) Share-based Payments

AUO transferred the treasury shares to qualified employees of AUO and its subsidiaries in accordance with the relevant plan. The key terms and conditions related to the grants under AUO’s share-based payment plan were disclosed as follows:

Grant date Total shares granted Contractual life of plan Counterparty of grant Vesting conditions	Treasury shares transferring to employees
	February 18, 2021 3,978 thousand shares - Employees 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. The related compensation cost recognized on the abovementioned plan was $39,133 thousand for the three months ended March 31, 2021.

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

Three Months Ended March 31,

	2021		2020
Display segment $ 28,089,838 25,105,429 13,097,161 5,087,018 9,024,619 $ 80,404,065	Energy segment 116,743 1,648,661 1,845 73,495 695,810 2,536,554	Display segment 17,064,488 17,742,362 7,132,729 4,034,445 5,386,802 51,360,826	Energy segment 20,071 1,341,613 - 113,670 854,003 2,329,357	Total segments
				17,084,559 19,083,975 7,132,729 4,148,115 6,240,805
				53,690,183

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

	Three Months Ended March 31,	Three Months Ended March 31,	Three Months Ended March 31,
	2021	Total segments 22,576,547 14,370,735 22,749,188 6,661,013 9,393,082 7,190,054 82,940,619 8,039,272 74,901,347 82,940,619		2020
Display segment $ 22,576,547 14,370,735 22,749,188 6,661,013 9,393,082 4,653,500 $ 80,404,065 $ 8,039,272 72,364,793 $ 80,404,065	Energy segment - - - - - 2,536,554 2,536,554 - 2,536,554 2,536,554		Display segment 14,512,261 7,027,637 13,548,700 5,833,542 8,073,529 2,365,157 51,360,826 7,901,660 43,459,166 51,360,826	Energy segment - - - - - 2,329,357 2,329,357 - 2,329,357 2,329,357	Total segments
					14,512,261 7,027,637 13,548,700 5,833,542 8,073,529 4,694,514
					53,690,183
					7,901,660 45,788,523
					53,690,183

(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) Contract liabilities`－`current (recorded in other current liabilities) Contract liabilities`－`noncurrent	March 31, 2021 $ 506,651 March 31, 2021 $ 865,624 10,170,780 $ 11,036,404	December 31, 2020 145,558 December 31, 2020 455,551 - 455,551	March 31, 2020
			94,440
			March 31, 2020
			463,304 -
			463,304

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

The amounts of revenue recognized for the three months ended March 31, 2021 and 2020 that previously included in the contract liability balance at the beginning of the period were $218,264 thousand and $408,832 thousand, respectively. Additionally, in the first quarter of 2021, AUO entered into long-term sales agreements with customers and 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.

(21) 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 ended March 31, 2021, AUO estimated the remuneration to employees amounting to $1,238,746 thousand. 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 three months ended March 31, 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.

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

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(22) Additional Information of Expenses by Nature

Employee benefits expenses: Salaries and wages Labor and health insurances Retirement benefits Other employee benefits Depreciation Amortization		Three Months Ended March 31,	Three Months Ended March 31,	Three Months Ended March 31,	Three Months Ended March 31,
		2021	Total 9,927,412 490,000 434,440 1,198,962 8,534,645 51,632		2020
	Recognized in cost of sales $ 7,042,557 357,078 335,005 1,009,906 7,371,271 47,914	Recognized in operating expenses 2,884,855 132,922 99,435 189,056 1,163,374 3,718		Recognized in cost of sales 5,893,031 345,201 289,539 724,318 7,839,669 79,896	Recognized in operating expenses Total 1,898,723 7,791,754 121,194 466,395 87,725 377,264 122,880 847,198 1,138,986 8,978,655 - 79,896

(23) Non-Operating Income and Expenses
a. Interest income

Interest income on bank deposits Interest income on government bonds with reverse repurchase agreements and others	Three Months Ended March 31,	Three Months Ended March 31,
	2021 $ 104,967 615 $ 105,582	2020
		153,036 367
		153,403

b. Other income

Rental income, net Grants Others	Three Months Ended March 31,	Three Months Ended March 31,
	2021 $ 129,769 55,626 117,377 $ 302,772	2020
		114,726 81,068 105,798
		301,592

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

c. Other gains and losses

Foreign exchange gains (losses), net Gains (losses) on valuation of financial instruments at FVTPL, net Gains (losses) on disposals of property, plant and equipment, net Gains on disposals of investments and financial assets Others	Three Months Ended March 31,	Three Months Ended March 31,
	2021 $ 172,312 (463,345) (500) 886,583 (24,464) $ 570,586	2020
		(126,389 195,973 28,476 162 (11,051
		87,171

d. Finance costs

Interest expense on bank borrowings Interest expense on lease liabilities Other interest expense Finance expense	Three Months Ended March 31, 2021 2020 $ 587,846 700,055 47,038 50,189 15,707 20,565 18,579 22,869 $ 669,170 793,678	Three Months Ended March 31, 2021 2020 $ 587,846 700,055 47,038 50,189 15,707 20,565 18,579 22,869 $ 669,170 793,678
	2021 $ 587,846 47,038 15,707 18,579 $ 669,170
		793,678

(24) 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 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 March 31,	Three Months Ended March 31,
	2021 $ 784,269 5,014 $ 789,283	2020
		120,340 3,531
		123,871

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Income taxes 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 March 31, 2021 2020 $ (90,960) (108,316)
	2021 $ (90,960)

As of March 31, 2021, the tax authorities have completed the examination of income tax returns of AUO through 2018.

(25) 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
March 31,
2021
2020
$
11,834,091
(4,991,493)
9,499,996
9,499,245
$
1.25
(0.53)
$
11,834,091
(4,991,493)
9,499,996
9,499,245
70,176
-
9,570,172
9,499,245
$
1.24
(0.53)

2021
$
11,834,091
9,499,996
$
1.25
$
11,834,091
9,499,996
70,176
9,570,172
$
1.24

Since AUO incurred net loss for the three months ended March 31, 2020, there were no potential ordinary shares with dilutive effect for the period.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(26) 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 (decrease) of leases Changes in lease payments Effect of change in consolidated entities Changes in exchange rate Amortization on transaction costs Balance at March 31, 2021 Balance at January 1, 2020 Cash flows Non-cash changes: Addition (decrease) of leases Changes in exchange rate Amortization on transaction costs Balance at March 31, 2020	Long-term borrowings (including current installments) $ 116,594,969 (2,339,154) - - 1,149,806 (89,056) 18,579 $ 115,335,144 $ 111,968,392 8,175,962 - (123,691) 17,729 $ 120,038,392	Short-term borrowings 200,000 57,000 - - - - - 257,000 1,725,602 (236,018) - (14,200) - 1,475,384	Guarantee deposits 864,868 17,114 - - - (31,765) - 850,217 785,456 316 - (7,502) - 778,270	Lease liabilities 10,297,272 (147,410) 15,661 (748) 617 (23,596) - 10,141,796 11,091,077 (171,773) (29,737) (44,855) - 10,844,712	Total liabilities from financing activities 127,957,109 (2,412,450) 15,661 (748) 1,150,423 (144,417) 18,579 126,584,157 125,570,527 7,768,487 (29,737) (190,248) 17,729 133,136,758

(27) 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 March 31, 2021, December 31, 2020, and March 31, 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: 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)	March 31, 2021 December 31, 2020 March 31, 2020 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value $ 53,246 53,246 668,058 668,058 1,604,981 1,604,981 647,240 647,240 622,824 622,824 5,299,917 5,299,917 374,694 374,694 432,202 432,202 615,129 615,129 137,673 137,673 170,956 170,956 23,874 23,874 115,335,144 115,335,144 116,594,969 116,594,969 120,038,392 120,038,392 850,217 850,217 864,868 864,868 778,270 778,270 1,559,940 1,559,940 309,900 309,900 309,962 309,962	March 31, 2020

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

Fair value of long-term payable 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.

March 31, 2021 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 $ - 117,236 - -	Level 2 53,246 - 137,673 1,559,940	Level 3 Total - 53,246 530,004 647,240 - 137,673 - 1,559,940

(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) March 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) There were no transfers between Level 2020.	Level 1 $ - 294,668 - - $ - 5,111,559 - - 1 and 2 for the	Level 2 Level 3 Total 668,058 - 668,058 - 328,156 622,824 170,956 - 170,956 309,900 - 309,900 1,604,981 - 1,604,981 - 188,358 5,299,917 23,874 - 23,874 309,962 - 309,962 three months ended March 31, 2021 and

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	Three Months Ended March 31 2021 2020 $ 328,156 188,670 167,586 - 34,480 - (218) (312) $ 530,004 188,358
	2021 $ 328,156 167,586 34,480 (218) $ 530,004

(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 (March 31, 2021 at 1.24~2.60, December 31, 2020 at 1.01~2.64 and March 31, 2020 at 0.7~2.33) `•`Price-Earnings ratio (March 31, 2021 at 12.29~23.51, December 31, 2020 at 12.95~24.99 and March 31, 2020 at 10.74~33.34) `•`Discount for lack of marketability (March 31, 2021 at 20%~32% and December 31, 2020 at 20%~30% and March 31, 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.

(28) 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(4) 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	M	arch 31, 2021	De	cember 31, 202	M	arch 31, 2020
		Foreign currency amounts $ 2,652,901 16,577,021 26,664 s 12,624 1,683,526 20,126,550 51	Exchange rate 28.5310 0.2577 33.4612 28.5310 28.5310 0.2577 33.4612	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 1,385,874 22,282,381 29,323 1,709 1,373,052 21,754,221 167	Exchange rate NTD 30.2540 41,928,232 0.2814 6,270,262 33.3671 978,423 30.2540 51,704 30.2540 41,540,315 0.2814 6,121,638 33.3671 5,572
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 March 31, 2021 and 2020, while all other variables were remained constant, would have increased or decreased the net profit before tax for the three months ended March 31, 2021 and 2020 as follows:

1% of depreciation 1% of appreciation	Three Months Ended March 31, 2021 2020 $ 276,330 15,094 (276,330) (15,094)

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 ended March 31, 2021 and 2020 were $172,312 thousand in gains and $126,389 thousand in losses, respectively.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(29) 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
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
TRENDYLITE CORPORATION (“TRENDYLITE”)	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 Daxin Materials Corp. (“Daxin”) Associate Darwin Summit Corporation Ltd. (“DSC”) Associate Ubitech Inc. (“Ubitech”) Associate 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 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 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 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

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of related party	Relationship with the Company
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”)
BenQ Foundation	Substantive related party

(i) SREC and its subsidiaries were included in the Company’ s consolidated financial statements from January 2021. Refer to Note 6(7) 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(6) 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.
(2) Compensation to key management personnel

Key management personnel’s compensation comprised:

Short-term employee benefits Post-employment benefits Share based payments	Three Months Ended March 31,	Three Months Ended March 31,
	2021 $ 28,215 489 17,276 $ 45,980	2020
		29,725 627 -
		30,352

Please refer to Note 6(19) for further information on share-based payments.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(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 Three Months Ended March 31, 2021 2020 $ 3,516,257 221,388 - - 9 2,002,132 $ 3,516,266 2,223,520	Accounts receivable from related parties March 31, 2021 December 31, 2020 March 31, 2020 2,096,753 2,076,045 300,329 - 111 - 5 - 1,239,409 2,096,758 2,076,156 1,539,738	Accounts receivable from related parties March 31, 2021 December 31, 2020 March 31, 2020 2,096,753 2,076,045 300,329 - 111 - 5 - 1,239,409 2,096,758 2,076,156 1,539,738
	December 31, 2020 2,076,045 111 - 2,076,156	March 31, 2020 300,329 - 1,239,409
2021 $ 3,516,257 - 9 $ 3,516,266
		1,539,738

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.

b. Purchases

Purchases Three Months Ended March 31, 2021 2020 $ 6,387,363 2,049,823 195,086 236,679 - 3,543,597 $ 6,582,449 5,830,099	Accounts payable to related parties March 31, 2021 December 31, 2020 March 31, 2020 7,586,379 7,297,560 2,886,068 - 5,232 - 5,191 - 3,441,905 7,591,570 7,302,792 6,327,973	Accounts payable to related parties March 31, 2021 December 31, 2020 March 31, 2020 7,586,379 7,297,560 2,886,068 - 5,232 - 5,191 - 3,441,905 7,591,570 7,302,792 6,327,973
	December 31, 2020 7,297,560 5,232 - 7,302,792	March 31, 2020 2,886,068 - 3,441,905
2021 $ 6,387,363 195,086 - $ 6,582,449
		6,327,973

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

Associates Others	Acquisition prices	Acquisition prices
	Three Months Ended March 31,
	2021 $ 1,367 - $ 1,367	2020
		4,400 5,970
		10,370

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

d. Disposal of property, plant and equipment and others

Proceeds from disposal Three Months Ended March 31, 2021 2020 Others: QCES $ - 35,249 Other related party transactions Transaction type Type of related party March 31, 2021 Other receivables due from related parties Associates $ 753 Joint ventures - Others 856 $ 1,609 Other payables due to related parties, Associates $ 20,941 including payables for equipment Others - $ 20,941 Transaction Type of type related party Rental income Associates: BMC Others Joint ventures Others: BMC Others Administration and other Associates Others Other expenses Associates Others	Gains on disposal	Gains on disposal
	Three Months Ended March 31,
	2021 2020 - 29,639 December 31, 2020 March 31, 2020 7,053 1,331 4,502 - 10,374 41,430 21,929 42,761 24,254 21,287 66 35,584 24,320 56,871 Three Months Ended March 31,	2020
		29,639
		March 31, 2020
		1,331 - 41,430
		42,761
		21,287 35,584
		56,871
	2021 $ 23,678 9,196 1,653 - 3,749 $ 38,276 $ 1,967 - $ 1,967 $ 21,196 - $ 21,196	2020
Rental income Administration and other Other expenses		12,034 1,653 23,715 1,750
		39,152
		2,070 631
		2,701
		26,539 13,874
		40,413

e. Other related party transactions

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

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.

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 Customs duties and guarantee for warranties Long-term borrowings limit Long-term borrowings limit Long-term borrowings limit	March 31, 2021 $ 83,860 50,868,673 42,692,720 80,722 $ 93,725,975	December 31, 2020 28,345 48,286,874 45,407,718 - 93,722,937	March 31, 2020
				14,232 33,057,482 43,620,628 -
				76,692,342

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

9. Significant Contingent Liabilities and Unrecognized Commitments

The significant commitments and contingencies of the Company as of March 31, 2021, in addition to those disclosed in other notes to the consolidated financial statements, were as follows:

(1) Outstanding letters of credit

As at March 31, 2021, the Company had the following outstanding letters of credit for the purpose of purchasing machinery and equipment and materials:

		March 31, 2021
	Currency	(in thousands)
JPY		1,765,000

(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.

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(3) Purchase commitments

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.

As at March 31, 2021, significant outstanding purchase commitments for construction in progress, property, plant and equipment totaled $8,711,285 thousand.

(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 April 28, 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.

(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 in 2010. 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 three months ended March 31, 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 three months ended March 31, 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 three months ended March 31, 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 net 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 Ended March 31, 2021
Display
segment
Energy
segment
Total
segments
$
80,404,065
2,536,554
82,940,619
$
11,946,550
71,675
12,018,225
612,573
$ 12,630,798
$
20,373,368
231,134
20,604,502
$ 429,949,275
Three Months Ended March 31, 2020
Display
segment
Energy
segment
Total
segments
$
51,360,826
2,329,357
53,690,183
$
(5,388,223)
(58,329)
(5,446,552)
(207,674)
$
(5,654,226)
$
3,524,520
87,479
3,611,999
$ 388,241,635

(Continued)

AU OPTRONICS CORP. AND SUBSIDIARIES

Financings Provided

For the three months ended March 31, 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	SMI	Other	Yes	30,000	30,000	-	Markup rate on	Needs for	-	Operating	-	-	-	19,111,503	76,446,014
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
0	AUO	AETW	Other	Yes	200,000	200,000	-	Markup rate on	Needs for	-	Operating	-	-	-	19,111,503	76,446,014
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
0	AUO	ACTW	Other	Yes	2,000,000	2,000,000	1,200,000	Markup rate on	Needs for	-	Operating	-	-	-	19,111,503	76,446,014
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties

1	AULB	AUKS	Other	Yes	13,664,180	10,868,500	4,782,140	Markup rate on	Needs for	-	Operating	-	-	-	22,547,752	22,547,752
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
2	AUXM	AUKS	Other	Yes	4,407,800	3,695,290	2,391,070	Markup rate on	Needs for	-	Operating	-	-	-	5,828,964	5,828,964
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
3	BVXM	AUKS	Other	Yes	440,780	-	-	Markup rate on	Needs for	-	Operating	-	-	-	522,482	522,482
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
4	AUSJ	UFSD	Other	Yes	220,390	-	-	Markup rate on	Needs for	-	Operating	-	-	-	3,974,243	3,974,243
			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	AESZ	Other	Yes	174,212	173,896	35,214	Markup rate on	Needs for	-	Operating	-	-	-	3,974,243	3,974,243
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
4	AUSJ	EDT	Other	Yes	43,553	43,474	-	Markup rate on	Needs for	-	Operating	-	-	-	3,974,243	3,974,243
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
4	AUSJ	MIS	Other	Yes	65,330	65,211	-	Markup rate on	Needs for	-	Operating	-	-	-	3,974,243	3,974,243
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
4	AUSJ	ACareSZ	Other	Yes	95,817	95,643	4,347	Markup rate on	Needs for	-	Operating	-	-	-	3,974,243	3,974,243
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
4	AUSJ	AUKS	Other	Yes	1,454,574	999,902	999,902	Markup rate on	Needs for	-	Operating	-	-	-	1,589,697	1,589,697
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
5	AUSZ	AUKS	Other	Yes	6,135,360	5,216,880	3,260,550	Markup rate on	Needs for	-	Operating	-	-	-	6,644,789	6,644,789
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
6	BVHF	AUKS	Other	Yes	308,546	304,318	304,318	Markup rate on	Needs for	-	Operating	-	-	-	327,842	327,842
			receivables					short-term	short-term		capital
			from related					financing cost	financing
			parties
7	DPSZ	AUKS	Other	Yes	438,240	-	-	Adjusted by	Needs for	-	Operating	-	-	-	505,017	505,017
			receivables					base lending	short-term		capital
			from related					rate of People’s	financing
			parties					Bank of China
8	DPTW	DPSK	Other	Yes	52,574	50,192	-	Adjusted by	Needs for	-	Operating	-	-	-	2,379,558	3,807,293
			receivables					short-term	short-term		capital
			from related					average lending	financing
			parties					rate

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
9	FTWJ	FHWJ	Other	Yes	87,106	43,474	43,474	Adjusted by	Needs for	-	Operating	-	-	-	1,692,898	1,692,898
			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 Dollar 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. AULB, 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 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 three months ended March 31, 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	95,557,517	14,406,477	14,306,543	8,614,841	-	7.49%	191,115,034	Yes	No	Yes
1	AUXM	AUO	3	14,572,411	6,391,310	6,303,730	-	-	43.26%	14,572,411	No	Yes	No
2	AUSZ	AUO	3	16,611,972	4,495,956	4,434,348	-	-	26.69%	16,611,972	No	Yes	No
3	DPXM	DPTW	3	1,587,437	440,780	434,740	-	-	10.95%	1,587,437	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 Dollar 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)

March 31, 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		March 31, 2021	March 31, 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 FVTPL－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	-		1,299	82,097	7.06%	82,097
AULB	Abakus Solar AG’s stock	-		3	-	2.22%	-
AUSH	T-powertek Optronics Co., Ltd.’s stock	-		1,293	CNY 6,250	1.66%	CNY 6,250
AUSZ	ToYou Display (Suzhou) Co., Ltd.’s stock	Related party		-	CNY 7,931	18.00%	CNY 7,931
Konly	PlayNitride Inc.’s stock	-		1,827	281,226	4.27%	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	-	2.35%	-
Konly	a2peak power Co., Ltd.’s stock	-		4,000	-	10.87%	-
Konly	SINTRONES Technology Corp.’s stock	-		556	35,139	3.02%	35,139
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	-		359	71,517	0.84%	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 three months ended March 31, 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		Ending Balance	Ending Balance	Note
					Shares	Amount	Shares	Amount	Shares	Amount	Carrying Amount	Gain/Loss on Disposal	Shares	Amount
AUO	ENNOSTAR Inc.’s stock Konly Venture Corp.’s stock Ronly Venture Corp.’s stock Structured deposit Qisda’s stock	Investments in	-	-	-	-	4,654	391,002	-	-	-	-	26,319	2,184,591	Note 1 Note 2 Note 2 Note 3 Note 1
		equity-accounted
		investees
AUO		Investments in	-	-	299,764	5,471,340	40,000	400,000	-	-	-	-	339,764	6,075,478
		equity-accounted
		investees
AUO		Investments in	-	-	185,576	2,277,770	100,000	1,000,000	-	-	-	-	285,576	3,358,664
		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	1,462,375
		equity-accounted
		investees
Ronly	ENNOSTAR Inc.’s stock	Investments in	-	-	-	-	7,493	628,215	-	-	-	-	16,936	1,403,719
		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(6) 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 three months ended March 31, 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	Plant	March 2021	November 2019	134,801	482,000	48,200	-	Phoenix Silicon International Corporation	Non-related party	Activated assets	A report on the appraisal price of a real estate appraiser	None	Note 1

Note 1: This transaction has not been completed, and the relevant transaction costs and taxes have not yet been determined. See Note 6(9).

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 three months ended March 31, 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 AUO AUO AUO AUO AUO AUO AUO AUO AUO AUO AUO AUO AUO AUO ADPNL	AUKS AUST AUSZ AUXM Qisda BMC Raydium Daxin DPTW AUSZ AUXM QCSZ BenQ SLEC ADP ADP	Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO Associate Subsidiary of Qisda Associate Associate Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO Subsidiary of Qisda Subsidiary of Qisda Subsidiary of SSEC Subsidiary of AUO Subsidiary of AUO	Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Sales Sales Sales Sales Sales Sales Purchases	5,571,840 845,939 7,350,519 7,210,764 2,082,594 895,430 294,883 551,086 767,668 (2,351,300) (794,549) (2,052,798) (746,117) (289,877) (3,218,657) USD 13,591	12%	EOM 30 days EOM 45 days EOM 45 days EOM 45 days EOM 45 days EOM 90 days EOM 120 days EOM 120 days EOM 60 days EOM 45 days EOM 45 days EOM 55 days EOM 55 days EOM 25 days EOM 45 days EOM 45 days	- - - - - - - - - - - - - - - -		(3,486,256) (567,621) (9,527,375) (8,013,049) (1,528,156) (1,068,070) (402,878) (771,623) (663,437) - - 1,213,396 560,539 - 2,856,397 USD (13,591)	(7)%
					2%					(1)%
					16%					(19)%
					16%					(16)%
					5%					(3)%
					2%					(2)%
					1%					(1)%
					1%					(2)%
					2%					(1)%
					(3)%					-
					(1)%					-
					(3)%					3%
					(1)%					1%
					-					-
					(4)%					6%
					100%					(100)%
AUKS	AUSZ	Subsidiary of AUO	Purchases	CNY 59,815	9%	EOM 60 days	-		CNY (67,591)	(7)%

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 AUST AUSZ AUSZ AUSZ AUSZ AUSZ AUSZ AUSZ AUSZ AUXM AUXM AUXM AUXM AUXM AUXM DPSZ DPXM FPWJ FTWJ M.Setek ACTW	AUO AUO AUO Qisda BMC Raydium DPTW AUO AUKS ADP AUO BMC Raydium DPTW AUO ADP DPTW DPTW DPTW DPTW ACTW M.Setek	Ultimate parent company Ultimate parent company Ultimate parent company Associate Subsidiary of Qisda Associate Subsidiary of AUO Ultimate parent company Subsidiary of AUO Subsidiary of AUO Ultimate parent company Subsidiary of Qisda Associate Subsidiary of AUO Ultimate parent company Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO	Sales Sales Purchases Purchases Purchases Purchases Purchases Sales Sales Sales Purchases Purchases Purchases Purchases Sales Sales Sales Sales Purchases Sales Sales Purchases	CNY (1,286,528) USD (29,900) CNY 627,495 CNY 121,289 CNY 66,846 CNY 138,735 CNY 39,218 CNY (1,708,441) CNY (59,815) CNY (928,231) CNY 138,698 CNY 44,521 CNY 163,937 CNY 63,470 CNY (1,673,031) CNY (90,129) CNY (25,770) CNY (113,439) CNY 26,591 CNY (197,595) JPY (886,220) 241,578	(98)%	EOM 30 days EOM 45 days EOM 45 days EOM 120 days EOM 90 days EOM 120 days EOM 120 days EOM 45 days EOM 60 days EOM 45 days EOM 45 days EOM 90 days EOM 120 days EOM 120 days EOM 45 days EOM 45 days EOM 90 days EOM 90 days EOM 60 days EOM 90 days EOM 45 days EOM 45 days	- - - - - - - - - - - - - - - - - - - - - -		CNY 805,263 USD 19,895 - CNY (185,503) CNY (94,138) CNY (222,643) CNY (53,146) CNY 2,195,502 CNY 67,591 CNY 589,996 - CNY (53,990) CNY (232,700) CNY (95,013) CNY 1,850,866 CNY 48,039 CNY 33,273 CNY 190,612 CNY (26,643) CNY 603,004 JPY 1,116,310 (287,673)	98%
					(100)%					100%
					25%					-
					5%					(7)%
					3%					(3)%
					6%					(8)%
					2%					(2)%
					(63)%					77%
					(2)%					2%
					(34)%					21%
					9%					-
					3%					(3)%
					10%					(11)%
					4%					(5)%
					(86)%					89%
					(5)%					2%
					(80)%					78%
					(17)%					46%
					100%					(100)%
					(97)%					99%
					(98)%					99%
					33%					(63)%
ADP	AUO	Ultimate parent company	Purchases	3,215,845	42%	EOM 45 days	-		(2,868,650)	(51)%

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)
ADP ADP ADP DPTW DPTW DPTW DPTW DPTW DPTW DPTW	AUSZ AUXM ADPNL DPSZ DPXM FTWJ EFOP AUO AUSZ AUXM	Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO Subsidiary of AUO Joint Venture Ultimate parent company Subsidiary of AUO Subsidiary of AUO	Purchases Purchases Sales Purchases Purchases Purchases Purchases Sales Sales Sales	4,035,234 386,668 (383,873) 111,991 494,860 861,750 195,086 (842,601) (170,200) (274,762)	53%	EOM 45 days EOM 45 days EOM 45 days EOM 90 days EOM 90 days EOM 90 days Payment in advance EOM 60 days EOM 120 days EOM 120 days	- - - - - - - - - -		(2,545,959) (207,874) 387,774 (144,463) (643,916) (1,060,598) - 619,505 230,747 412,522	(45)%
					5%					(4)%
					(4)%					7%
					5%					(6)%
					23%					(29)%
					40%					(47)%
					9%					-
					(37)%					29%
					(7)%					11%
					(12)%					19%
DPTW	FPWJ	Subsidiary of AUO	Sales	(115,301)	(5)%	EOM 60 days	-		115,679	5%

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 March 31, 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	QCSZ	Subsidiary of Qisda	1,213,396	7.09	-	-	-	-
AUO	ACTW BenQ ADP AUO AUKS AUKS AUO AUO AUKS ADP AUO AUKS ADP AUKS DPTW DPTW DPTW ACTW	Subsidiary of AUO	1,205,159	(Note 2)	-	-	-	-
AUO		Subsidiary of Qisda	560,539	5.01	-	-	-	-
AUO		Subsidiary of AUO	2,878,405	(Note 2)	1,018,986	Will be collected in next period	-	-
AUKS		Ultimate parent company	CNY 805,263	6.19	CNY 23,216	Collected in subsequent period	CNY 379,409	-
AULB		Subsidiary of AUO	USD 171,142	(Note 2)	-	-	-	-
AUSJ		Subsidiary of AUO	CNY 232,248	(Note 2)	-	-	-	-
AUST		Ultimate parent company	USD 29,729	(Note 2)	-	-	-	-
AUSZ		Ultimate parent company	CNY 2,195,502	2.80	CNY 56,963	Collected in subsequent period	CNY 1,459,690	-
AUSZ		Subsidiary of AUO	CNY 828,740	(Note 2)	CNY 17,498	Collected in subsequent period	CNY 21,051	-
AUSZ		Subsidiary of AUO	CNY 589,996	12.59	CNY 6	Collected in subsequent period	CNY 338,157	-
AUXM		Ultimate parent company	CNY 1,850,866	3.39	CNY 55,549	Collected in subsequent period	CNY 215,663	-
AUXM		Subsidiary of AUO	CNY 557,854	(Note 2)	-	-	-	-
AUXM		Subsidiary of AUO	CNY 48,039	15.01	CNY 157	Will be collected in next period	-	-
BVHF		Subsidiary of AUO	CNY 71,265	(Note 2)	-	-	-	-
DPSZ		Subsidiary of AUO	CNY 33,273	2.61	-	-	-	-
DPXM		Subsidiary of AUO	CNY 190,620	(Note 2)	-	-	-	-
FTWJ		Subsidiary of AUO	CNY 603,004	1.29	-	-	-	-
M.Setek		Subsidiary of AUO	JPY 1,116,358	(Note 2)	JPY 275,558	Will be collected in next period	-	-
ACTW	M.Setek	Subsidiary of AUO	331,078	(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)
ADP	ADPNL	Subsidiary of AUO	387,774	7.92	35,954	Will be collected in next period	-	-
DPTW	AUO AUSZ AUXM DPXM FPWJ	Ultimate parent company	619,960	(Note 2)	35,890	Will be collected in next period	-	-
DPTW		Subsidiary of AUO	230,747	2.68	-	-	-	-
DPTW		Subsidiary of AUO	412,522	2.87	-	-	-	-
DPTW		Subsidiary of AUO	170,108	(Note 2)	3,845	Will be collected in next period	-	-
DPTW		Subsidiary of AUO	115,679	3.72	27,082	Will be collected in next period	-	-
DPTW	FTWJ	Subsidiary of AUO	1,045,208	(Note 2)	-	-	-	-

Note 1: Until the end of April 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 three months ended March 31, 2021

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

Table 8

					Inter-company Transactions	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	AUKS	AUO	Subsidiary to parent	Net revenue	CNY 1,286,528	The prices of inter-company sales are not comparable with	7%
						those of third parties. The credit term is EOM 30 days
0	AUKS	AUO	Subsidiary to parent	Receivables from	CNY 805,263	-	1%
				related parties
1	AULB	AUKS	Subsidiary to subsidiary	Receivables from	USD 171,142	-	1%
				related parties
2	AUST	AUO	Subsidiary to parent	Net revenue	USD 29,900	The prices of inter-company sales are not comparable with	1%
						those of third parties. The credit term is EOM 45 days
3	AUSZ	AUO	Subsidiary to parent	Net revenue	CNY 1,708,441	The prices of inter-company sales are not comparable with	9%
						those of third parties. The credit term is EOM 45 days
3	AUSZ	AUO	Subsidiary to parent	Receivables from	CNY 2,195,502	-	2%
				related parties
3	AUSZ	AUKS	Subsidiary to subsidiary	Receivables from	CNY 828,740	-	1%
				related parties
3	AUSZ	ADP	Subsidiary to subsidiary	Net revenue	CNY 928,231	The prices of inter-company sales are not comparable with	5%
						those of third parties. The credit term is EOM 45 days
3	AUSZ	ADP	Subsidiary to subsidiary	Receivables from	CNY 589,996	-	1%
				related parties
4	AUXM	AUO	Subsidiary to parent	Net revenue	CNY 1,673,031	The prices of inter-company sales are not comparable with	9%
						those of third parties. The credit term is EOM 45 days
4	AUXM	AUO	Subsidiary to parent	Receivables from	CNY 1,850,866	-	2%
				related parties

					Inter-company Transactions	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	AUXM	AUKS	Subsidiary to subsidiary	Receivables from	CNY 557,854	-	1%
				related parties
5	DPXM	DPTW	Subsidiary to subsidiary	Net revenue	CNY 113,439	The prices of inter-company sales are not comparable with	1%
						those of third parties. The credit term is EOM 90 days
6	FTWJ	DPTW	Subsidiary to subsidiary	Net revenue	CNY 197,595	The prices of inter-company sales are not comparable with	1%
						those of third parties. The credit term is EOM 90 days
6	FTWJ	DPTW	Subsidiary to subsidiary	Receivables from	CNY 603,004	-	1%
				related parties
7	AUO	AUSZ	Parent to subsidiary	Net revenue	2,351,300	The prices of inter-company sales are not comparable with	3%
						those of third parties. The credit term is EOM 45 days
7	AUO	AUXM	Parent to subsidiary	Net revenue	794,549	The prices of inter-company sales are not comparable with	1%
						those of third parties. The credit term is EOM 45 days
7	AUO	ADP	Parent to subsidiary	Net revenue	3,218,657	The prices of inter-company sales are not comparable with	4%
						those of third parties. The credit term is EOM 45 days
7	AUO	ADP	Parent to subsidiary	Receivables from	2,878,405	-	1%
				related parties
8	DPTW	AUO	Subsidiary to parent	Net revenue	842,601	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 three months ended March 31, 2021

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

Table 9

				Original Investment Amount	Original Investment Amount	March 31, 2021	March 31, 2021	March 31, 2021		Investor’s Share
									Net Income
Investor Coman	Investee Coman	Location	Main Activities		December 31,		Percentage	Carrying	(Loss) of	of Profit (Loss) of Inestee	Note
py	py			March 31, 2021	2020	Shares	of Ownership	Amount (Notes 1 and 2)	Investee	v (Notes 1 and 2)

AUO	AULB	Malaysia	Holding company	59,058,698	59,058,698	1,882,189	100.00%	56,369,379	830,004	830,004	Subsidiary
AUO	AUNL	Netherlands	Sales and sales support of TFT-LCD Panels	24,275	24,275	50	100.00%	63,750	233	233	Subsidiary
AUO	Konly	Taiwan ROC	Investment	4,627,070	4,227,070	339,764	100.00%	6,075,478	294,584	294,584	Subsidiary
AUO	Ronly	Taiwan ROC	Investment	3,078,682	2,078,682	285,576	100.00%	3,358,664	196,085	196,085	Subsidiary
AUO	DPTW	Taiwan ROC	Design, manufacturing, and sales of TFT-	3,569,155	3,569,155	190,108	28.56%	2,718,771	(347,014)	(99,120)	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%	2,587,406	29,946	29,946	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%	10,017,673	2,111,632	173,875	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%	12,130	(2,105)	(2,105)	Subsidiary
			system and hardware
AUO	AETW	Taiwan ROC	Planning, design and development of	200,000	200,000	20,000	100.00%	116,841	(15,183)	(15,183)	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%	1,594,748	25,582	7,931	Associate
AUO	CQIL	Israel	Holding company	1,182,621	1,182,621	39,974	100.00%	885,392	(43)	(43)	Subsidiary
AUO	ADLINK	Taiwan ROC	Manufacturing and sales of hardware,	2,411,693	2,411,693	42,310	19.45%	2,299,603	2,169	(18,483)	Associate
			software and peripheral devices of industrial
			computers
AUO	DPGE	Taiwan ROC	Renewable energy power generation	7,000	7,000	700	100.00%	6,981	(4)	(4)	Subsidiary
AUO	ADHLD	Caymen	Holding company	178,353	-	6,300	70.00%	168,287	(9,941)	(6,958)	Subsidiary

				Original Investment Amount	Original Investment Amount	March 31, 2021	March 31, 2021	March 31, 2021		Investor’s Share
									Net Income
Investor Coman	Investee Coman	Location	Main Activities		December 31,		Percentage	Carrying	(Loss) of	of Profit (Loss) of Inestee	Note
py	py			March 31, 2021	2020	Shares	of Ownership	Amount (Notes 1 and 2)	Investee	v (Notes 1 and 2)

AUO	ADCM	Caymen	Holding company	76,437	-	2,700	100.00%	72,123	(2,982)	(2,982)	Subsidiary
AUO	AHTW	Taiwan ROC	Manufacturing, development and sales of	5,000	5,000	500	100.00%	4,639	(347)	(347)	Subsidiary
			medical equipments
AUO	ADP	Taiwan ROC	Research, development and sales of TFT-	369,555	1,000	36,956	100.00%	1,432,281	1,062,483	1,062,483	Subsidiary
			LCD panels
AUO	SREC	Taiwan ROC	Investment	379,040	379,040	37,904	32.01%	435,690	26,655	8,533	Subsidiary
											(Note 7)
AUO	ENNOSTAR	Taiwan ROC	Holding company	1,280,229	-	26,319	3.88%	2,184,591	(259,930)	(24,655)	Associate
											(Note 5)
AUO	ACareTW	Taiwan ROC	Design, development and sales of software	30,000	-	3,000	100.00%	30,000	-	-	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%	609,203	(347,014)	(22,210)	Subsidiary
			LCD modules, backlight modules, TV set
			and related parts
Konly	Raydium	Taiwan ROC	IC Design	175,857	175,857	11,454	17.11%	942,805	731,357	125,148	Associate
Konly	Daxin	Taiwan ROC	Research, manufacturing and sales of	154,748	154,748	19,114	18.61%	569,845	161,899	30,127	Associate
			display 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%	1,462,375	2,111,632	26,239	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	27,000	357	24.41%	197	(4,552)	(1,134)	Associate
			system
Konly	SSEC	Taiwan ROC	Investment	100,000	100,000	10,000	2.00%	102,887	25,582	512	Associate
Konly	WishMobile,	Taiwan ROC	Developing and providing CRM APP; LINE	15,000	15,000	5,625	12.50%	5,968	991	124	Associate
	Inc.		software developer
Konly	SkyREC Ltd.	BVI	Data consulting service for retail	46,016	46,016	188	16.12%	1,295	(5,586)	(901)	Associate
Konly	ADLINK	Taiwan ROC	Manufacturing and sales of hardware,	80,542	80,542	1,191	0.55%	24,906	2,169	9	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%	3,895	(105)	(105)	Subsidiary
			site rental
Konly	IOC	Taiwan ROC	R&D and design of flexible electronics	20,000	20,000	1,000	5.00%	18,260	(11,729)	(1,223)	Associate
			technology and processing equipment
			development

				Original Investment Amount	Original Investment Amount	March 31, 2021	March 31, 2021	March 31, 2021		Investor’s Share
									Net Income
Investor Coman	Investee Coman	Location	Main Activities		December 31,		Percentage	Carrying	(Loss) of	of Profit (Loss) of Inestee	Note
py	py			March 31, 2021	2020	Shares	of Ownership	Amount (Notes 1 and 2)	Investee	v (Notes 1 and 2)

Konly	SREC	Taiwan ROC	Investment	17,760	17,760	1,776	1.50%	20,414	26,655	400	Subsidiary
											(Note 7)
Konly	ENNOSTAR	Taiwan ROC	Holding company	860,283	-	12,093	1.78%	993,624	(259,930)	(11,837)	Associate
											(Note 5)
Ronly	DPTW	Taiwan ROC	Design, manufacturing, and sales of TFT-	845,510	845,510	40,509	6.09%	579,328	(347,014)	(21,121)	Subsidiary
			LCD modules, backlight modules, TV set
			and related parts
Ronly	Daxin	Taiwan ROC	Research, manufacturing and sales of	70,021	70,021	6,312	6.15%	188,184	161,899	9,949	Associate
			display 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,	2,141	-	34	0.02%	2,141	2,169	-	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%	62,450	(11,729)	(4,184)	Associate
			technology and processing equipment
			development
Ronly	ENNOSTAR	Taiwan ROC	Holding company	951,647	-	16,936	2.49%	1,403,719	(259,930)	(11,420)	Associate
											(Note 5)
DPTW	BVLB	Malaysia	Holding company	1,051,289	1,051,289	36,000	29.71%	243,941	6,780	2,014	Subsidiary
DPTW	DPLB	Malaysia	Holding company	4,362,627	4,362,627	92,267	100.00%	5,161,624	(39,923)	(37,382)	Subsidiary
DPTW	FHVI	BVI	Holding company	2,362,321	2,362,321	22,006	100.00%	3,707,408	(111,354)	(108,362)	Subsidiary
DPTW	FFMI	Mauritius	Holding company	274,700	274,700	653	100.00%	102,629	2,093	2,050	Subsidiary
DPTW	EFOP	Taiwan ROC	Manufacturing and sales of polymer	338,729	338,729	33,873	49.00%	187,647	3,902	1,912	Joint
			plasticized raw materials								Venture
DPTW	Darwin	Thailand	International trade	3,740	3,740	40	40.00%	11,525	2,041	817	Associate
	Summit
	Corporation
	Ltd.
ACTW	ACMK	Malaysia	Manufacturing and sale of solar wafers	449,975	449,975	46,196	100.00%	386,384	(7,131)	(7,131)	Subsidiary
ACTW	SDMC	Taiwan ROC	Holding company	1,988,488	1,988,488	116,836	100.00%	1,851,191	33,681	35,666	Subsidiary
SDMC	M.Setek	Japan	Manufacturing and sale of ingots	23,596,398	23,596,398	11,404,184	99.9991%	1,811,727	33,800	33,800	Subsidiary
ADP	ADPNL	Netherlands	Sales and sales support of TFT-LCD panels	96,733	-	-	100.00%	89,735	(6,227)	(6,227)	Subsidiary
			and holding company								(Note 6)
SREC	SGPC	Taiwan ROC	Solar power generation	896,517	-	56,811	100.00%	914,911	18,393	18,393	Subsidiary
											(Note 7)
SREC	EGPC	Taiwan ROC	Solar power generation	325,686	-	24,500	100.00%	334,142	8,457	8,457	Subsidiary
											(Note 7)
AULB	AUUS	United States	Sales and sales support of TFT-LCD Panels	USD 1,000	USD 1,000	1,000	100.00%	USD 2,580	USD (161)	USD (161)	Subsidiary

				Original Investment Amount	Original Investment Amount	March 31, 2021	March 31, 2021	March 31, 2021		Investor’s Share
									Net Income
Investor Coman	Investee Coman	Location	Main Activities		December 31,		Percentage	Carrying	(Loss) of	of Profit (Loss) of Inestee	Note
py	py			March 31, 2021	2020	Shares	of Ownership	Amount (Notes 1 and 2)	Investee	v (Notes 1 and 2)

AULB	AUJP	Japan	Sales support of TFT-LCD Panels	USD 276	USD 276	1	100.00%	USD 1,832	USD 22	USD 22	Subsidiary
AULB	AUKR	South Korea	Sales support of TFT-LCD Panels	USD 155	USD 155	-	100.00%	USD 1,066	USD 77	USD 77	Subsidiary
AULB	AUCZ	Czech	Assembly of solar modules	USD 20,531	USD 20,531	-	100.00%	USD 10,790	-	-	Subsidiary
		Republic
AULB	AUSK	Slovakia	Repairing of TFT-LCD modules	USD 1,359	USD 1,359	-	100.00%	USD 24,478	USD 241	USD 241	Subsidiary
		Republic
AULB	AUST	Singapore	Manufacturing TFT-LCD panels based on	USD 241,487	USD 241,487	907,114	100.00%	USD 90,207	USD 983	USD 983	Subsidiary
			low temperature polysilicon technology
AULB	AUVI	United States	Research and development and IP related	USD 5,000	USD 5,000	5,000	100.00%	USD 6,096	USD 95	USD 95	Subsidiary
			business
AULB	BVLB	Malaysia	Holding company	USD 85,171	USD 85,171	85,171	70.29%	USD 20,228	USD 239	USD 168	Subsidiary
AULB	AUSG	Singapore	Holding company and sales support of TFT-	USD 9,958	USD 9,958	266,268	100.00%	USD 6,880	USD 10	USD 10	Subsidiary
			LCD panels
AUSG	AEUS	United States	Sales support of solar-related products	USD 3,510	USD 3,510	3,510	100.00%	USD 3,084	USD (4)	USD (4)	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 183,349	USD (1,101)	USD (1,101)	Subsidiary
											(Note 4)
DPLB	DPSK	Slovakia	Manufacturing and sales of automotive parts	USD 4,216	USD 4,216	-	100.00%	USD 527	USD (305)	USD (305)	Subsidiary
		Republic
FHVI	FTMI	Mauritius	Holding company	USD 6,503	USD 6,503	6,503	100.00%	USD 67,231	USD (4,303)	USD (4,303)	Subsidiary
FHVI	FWSA	Samoa	Holding company	USD 19,000	USD 19,000	19,000	100.00%	USD 16,011	USD 136	USD 136	Subsidiary
FHVI	PMSA	Samoa	Holding company	USD 39,673	USD 39,673	31,993	100.00%	USD 48,765	USD 245	USD 245	Subsidiary
ADCM	ADHLD	Caymen	Holding company	USD 2,700	-	2,700	30.00%	USD 2,528	USD (105)	USD (105)	Subsidiary
ADPNL	ADPUS	United States	Sales and sales support of TFT-LCD Panels	USD 1,500	USD 1,500	1	100.00%	USD 1,494	USD (6)	USD (6)	Subsidiary
ADPNL	ADPJP	Japan	Sales support of TFT-LCD Panels	USD 508	USD 508	1	100.00%	USD 457	USD 5	USD 5	Subsidiary
ADHLD	ADSG	Singapore	Holding company	USD 7,300	-	7,300	100.00%	USD 6,726	USD (350)	USD (350)	Subsidiary
ADSG	ADTW	Taiwan ROC	Design and sales of software and hardware	USD 1,080	-	3,000	100.00%	USD 1,051	-	-	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 30,819	-	-	Subsidiary
		Kingdom
CQHLD	CQUK	United	Sales and sales support of content	GBP 1,874	GBP 1,874	-	100.00%	GBP 109	GBP 1	GBP 1	Subsidiary
		Kingdom	management system

				Original Investment Amount	Original Investment Amount	March 31, 2021	March 31, 2021	March 31, 2021		Investor’s Share
									Net Income
Investor Coman	Investee Coman	Location	Main Activities		December 31,		Percentage	Carrying	(Loss) of	of Profit (Loss) of Inestee	Note
py	py			March 31, 2021	2020	Shares	of Ownership	Amount (Notes 1 and 2)	Investee	v (Notes 1 and 2)

CQHLD	CQUS	United States	Sales of content management system and	GBP 19,948	GBP 19,948	13	100.00%	GBP 10,314	GBP (50)	GBP (50)	Subsidiary
			hardware
CQHLD	CQCA	Canada	Research and development of content	GBP 798	GBP 798	-	100.00%	GBP 537	GBP 29	GBP 29	Subsidiary
			management system
CQUS	JRUK	United	Development and sales of content	USD 1,500	USD 1,500	1	100.00%	USD 1,697	USD 77	USD 77	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 7,753	USD (102)	USD (102)	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(6) 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(7) for the relevant information.

AU OPTRONICS CORP. AND SUBSIDIARIES

Information on Investment in Mainland China

For the three months ended March 31, 2021

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

Table 10

1. AUO `：`

(1) Related information on investment in Mainland China

				Accumulated	Investment	Investment	Accumulated				Carrying
									%			Accumulated
				Outflow of	Flows		Outflow of			Investor’s	Amount of
		Total Amount						Net Income	Ownership			Inward
				Investment			Investment			Share of	the
Investee		of Paid-in	Method of					(Loss) of	through			Remittance
	Main Activities			from Taiwan			from Taiwan			Profit (Loss)	Investment		Note
Company		Capital	Investment									of Earnings
				as of January	Outflow	Inflow	as of March	Investee	Direct or	of Investee	as of March
		(Note 2)										as of March
				1, 2021			31, 2021	(Notes 4 and 5)	Indirect	(Notes 4 and 5)	31, 2021
									Investment			31, 2021
				(Note 2)			(Note 2)				(Note 2)

ACareSZ	Design, development and sales of software and	65,211	(Note 1)	-	-	-	-	(10,450)	100%	(10,450)	8,682	-
	hardware for health care industry
ADSZ	Management consulting and services of	142,655	(Note 1)	-	142,655	-	142,655	(9,942)	100%	(9,942)	127,101	-
	technology promotion and application
AESZ	Planning, design and development of	52,169	(Note 1)	-	-	-	-	(2,915)	100%	(2,915)	28,698	-
	construction project for environmental
	protection and related project management
AUKS	Manufacturing and sales of TFT-LCD panels	27,418,291	(Note 1)	13,983,328	-	-	13,983,328	396,457	51%	202,193	5,500,584	-
AUSH	Sales support of TFT-LCD Panels	85,593	(Note 1)	28,531	-	-	28,531	(14,791)	100%	(14,791)	328,324	-
AUSJ	Manufacturing and assembly of TFTLCD	3,081,348	(Note 1)	2,282,480	-	-	2,282,480	38,318	100%	38,318	3,974,243	-
	modules; leasing
AUSZ	Manufacturing, assembly and sales of TFT-LCD	7,931,618	(Note 1)	5,706,200	-	-	5,706,200	377,553	100%	377,553	16,611,972	-
	modules
AUXM	Manufacturing, assembly and sales of TFT-LCD	7,132,750	(Note 1)	7,132,750	-	-	7,132,750	196,050	100%	196,050	14,572,411	-
	modules
BVHF	Manufacturing and sales of liquid crystal	2,095,602	(Note 1)	-	-	-	-	6,837	100%	6,837	819,605	-	Note 6
	products and related parts
BVXM	Manufacturing and sales of liquid crystal	2,608,440	(Note 1)	-	-	-	-	7,122	100%	7,122	1,306,205	-
	products and related parts; leasing
EDT	Design and sales of software and hardware	21,737	(Note 1)	-	-	-	-	(1,816)	100%	(1,816)	6,104	-
	integration system and equipment relating to
	intelligent manufacturing

				Accumulated	Investment	Investment	Accumulated				Carrying
									%			Accumulated
				Outflow of	Flows		Outflow of			Investor’s	Amount of
		Total Amount						Net Income	Ownership			Inward
				Investment			Investment			Share of	the
Investee		of Paid-in	Method of					(Loss) of	through			Remittance
	Main Activities			from Taiwan			from Taiwan			Profit (Loss)	Investment		Note
Company		Capital	Investment									of Earnings
				as of January	Outflow	Inflow	as of March	Investee	Direct or	of Investee	as of March
		(Note 2)										as of March
				1, 2021			31, 2021	(Notes 4 and 5)	Indirect	(Notes 4 and 5)	31, 2021
									Investment			31, 2021
				(Note 2)			(Note 2)				(Note 2)

MIS	Development and licensing of software relating	86,948	(Note 1)	-	-	-	-	(11,776)	100%	(11,776)	21,297	-
	to intelligent manufacturing, and related
	consulting services
UFSD	Planning, design and development of	8,695	(Note 1)	-	-	-	-	1	100%	1	2,402	-
	construction project for environmental
	protection and related project management

(2) Upper limit on investment in Mainland China

(2) Upper limit on investment in Mainland China
Accumulated Investment in Mainland China as of March 31, 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)
29,275,944 (USD 1,026,110)	38,565,944 (USD 1,344,003 and HKD 60,000)	121,749,425

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 three months ended March 31, 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

				Accumulated	Investment	Investment	Accumulated				Carrying	Accumulated
									%
		Total Amount		Outflow of	Flows		Outflow of	Net Income	Ownership	Investor’s	Amount of	Inward
Investee		of Paid-in	Method of	Investment			Investment	(Loss) of	through	Share of	the	Remittance of
Company	Main Activities	Capital	Investment	from Taiwan f J	Outflow	Inflow	from Taiwan f Mh	Investee	Direct or	Profit (Loss) f It	Investment f Mh	Earnings as of Mh 31	Note
		(Note 4)		as o anuary 1, 2021	(Note 4)	(Note 4)	as o arc 31, 2021	(Notes 2 and 6)	Indirect	o nvesee (Notes 2 and 6)	as o arc 31, 2021	arc , 2021
				(Note 4)			(Note 4)		Investment		(Note 4)	(Note 4)

BVHF	Manufacturing and sale of liquid crystal	2,095,602	(Note 1)	456,496	-	-	456,496	6,837	29.71%	6,837	819,605	-	Note 5
	products and related parts
DPSZ	Manufacturing and sale of backlight modules	713,275	(Note 1)	427,965	-	-	427,965	(36,423)	100%	(36,423)	1,262,542	1,310,542	Note 9
	and related parts
DPXM	Manufacturing and sale of backlight modules	1,997,170	(Note 1)	1,997,170	-	-	1,997,170	2,622	100%	2,622	3,968,591	1,794,433
	and related parts
FHWJ	Manufacturing and sale of backlight modules	185,452	(Note 1)	233,954	-	-	233,954	2,093	100%	2,093	52,626	-
	and related parts
FPWJ	Manufacturing, sales and trading of precision	827,399	(Note 1)	542,089	-	-	542,089	5,914	100%	5,914	682,046	-	Note 8
	plastic parts
FTKS	Manufacturing and sale of backlight modules	1,027,116	(Note 1)	1,027,116	-	-	1,027,116	6,944	100%	6,944	1,391,324	-
	and related parts
FTWJ	Manufacturing and sale of backlight modules	998,585	(Note 1)	185,452	-	-	185,452	(124,213)	100%	(124,213)	1,692,898	401,561	Note 7
	and related parts
ADPSZ	Sales and sales support of TFT-LCD panels	-	-	-	-	-	-	-	100%	-	-	-	Note 10

(2) Upper limit on investment in Mainland China

Entity	Accumulated Investment in Mainland China as of March 31, 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	4,870,242 (USD 170,700)	4,694,527 (USD 164,541)	5,710,940
ADP (Note 10)	-	-	-

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 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 March 31, 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 three months ended March 31, 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.

Note 10: ADPSZ is a new subsidiary of ADP in February 2021. As of end of March, no capital injection has been made for ADPSZ.

AI assistant

AUO — Interim / Quarterly Report 2021

52062_rns_2021-12-28_59d5d8c3-fc77-45b4-8286-74748e35ba11.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 March 31, 2021 and 2020 AU OPTRONICS CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2021, December 31, 2020, and March 31, 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 Comprehensive Income

For the Three Months Ended March 31, 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 Three Months Ended March 31, 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 Three Months Ended March 31, 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 Three Months Ended March 31, 2021 and 2020

Notes to Consolidated Financial Statements

For the Three Months Ended March 31, 2021 and 2020

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

(4) Income taxes

(5) Noncurrent assets held for sale

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

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

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

(5) Inventories

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

b. Joint ventures

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(7) Acquisition of subsidiaries

(8) Acquisition of Business

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

(10) Lease Arrangements

(i) Right-of-use assets

(ii) Lease liabilities

March 31, 2021

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

(v) Additional lease information

b. Lessor

(11) Investment Property

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

(16) Provisions

AU OPTRONICS CORP. AND SUBSIDIARIES Notes to Consolidated Financial Statements

b. Defined contribution plans

a. Common stock

b. Capital surplus

AUO Interim / Quarterly Report 2021