Aurora - Annual Report 2021 | FinancialReports.eu

Stock Code: 2373

Aurora Corporation and Subsidiaries

Consolidated Financial Statements and Independent Auditors' Report

For the Years Ended December 31, 2021 and 2020

Address: 15 Floor, No. 2, Section 5, Xinyi Road, Taipei City Tel: (02)23458088

§Table of Contents§

Item 1. Cover Page 2. Table of Contents 3. Declaration of Consolidated Financial Statements of Affiliates 4. Independent Auditors' Report 5. Consolidated Balance Sheets 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. Notes to Consolidated Financial Statements a. Company History b. Date of Authorization for Issuance of the Consolidated Financial Statements and Procedures for Authorization c. Application of New and Amended Standards and Interpretations d. Summary of Significant Accounting Policies e. Primary Sources of Uncertainties in Material Accounting Judgments, Estimates, and Assumptions f. Details of Significant Accounts g. Related Party Transactions h. Pledged Assets i. Significant Contingent Liabilities and Unrecognized Contract Commitments j. Significant Disaster Loss k. Significant Events after the Balance Sheet Date l. Others m. Supplementary Disclosures 1) Information on Significant Transactions 2) Information on Invested Companies 3) Information on Investments in Mainland China 4) Information on Major Shareholders n. Segment Information	Page 1 2 3 4-6 7 8-10 11 12-13 14 14 14-16 16-25 25 26-63 63-68 68 68-69 70 70-71 71 71 71 71 71-72	Number of Notes to Financial Statements
		- - - - - - - - I II III IV V VI~XXX XXXI XXXII XXXIII - XXXIV XXXV XXXVI XXXVI XXXVI XXXVI XXXVII

Declaration of Consolidated Financial Statements of Affiliates

In 2021 (from January 1, 2021 to December 31, 2021), the companies required to be included in the consolidated financial statements of affiliates under the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" are all the same as companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in the International Financial Reporting Standards (IFRS) 10, and relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Aurora hereby produces this declaration to the effect that no preparation for the separate consolidated financial statements of affiliates is required. Sincerely,

Company: Aurora Corporation

Chairman: Yuan Hui-Hua

March 6, 2022

Independent Auditors' Report

To Aurora Corporation:

Opinions

Aurora Corporation and its subsidiaries' Consolidated Balance Sheets as of December 31, 2021 and 2020, in addition to the Consolidated Statements of Comprehensive Income, Consolidated Statements of Changes in Equity, Consolidated Statements of Cash Flows, and Notes to the Consolidated Financial Statements(including a summary of significant accounting policies) from January 1 to December 31, 2021 and 2020, have been audited by the CPAs.

In our opinion, the Consolidated Financial Statements mentioned above have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, as well as the International Financial Reporting Standards (IFRSs), International Accounting Standards (IAS), law and regulation reviews and their announcements recognized and announced by the Financial Supervisory Commission in all material aspects, and are considered to have reasonably expressed the consolidated financial conditions of Aurora Corporation and its subsidiaries as of December 31, 2021 and 2020, as well as the consolidated financial performance and consolidated cash flows from January 1 to December 31, 2021 and 2020.

Basis for Opinions

We conducted our audits in accordance with the Regulations Governing the Auditing and Attestation of Financial Statements by Certified Public Accountants and Generally Accepted Auditing Standards (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of Aurora Corporation and its subsidiaries in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China ("The Norm"), and we have fulfilled our other ethical responsibilities in accordance with the Norm. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Consolidated Financial Statements of Aurora Corporation and its subsidiaries for the year ended December 31, 2021. These matters were addressed in the context of our audit of the Consolidated Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the Consolidated Financial Statements of Aurora Corporation and its subsidiaries for the year ended December 31, 2021 are stated as follows:

Sales revenue

The main businesses of Aurora Corporation and its subsidiaries include the trade and lease of Multi-Functional Photocopiers (MFPs) and sales of system furniture. In particular, sales revenue from sales of system furniture in Taiwan and mainland China increased significantly in 2021 as compared to that in 2020; such increase in the overall impact to the financial statements is material.

The main risk lies in whether revenue actually occurs. Accordingly, we identify the risk of

revenue recognition arising from fraud as a key audit matter in accordance with the Statements on Auditing Standards in relation to significant risk.

For the accounting policies related to revenue recognition, please refer to Note IV (XV).

We understood and tested the effectiveness of the design and implementation of internal controls in the recognition of sales revenue. We have also selected appropriate samples from the sales details, reviewed the original contracts, documents and customs declaration forms from external forwarders or signed by customers to check whether the recipients are the trading parties, and reviewed whether there is a significant amount of return and allowance subsequent to the balance sheet date to confirm whether there is any material misstatement of sales revenue.

Other Matters

We have also audited the Parent Company Only Financial Statements of Aurora Corporation for the years ended December 31, 2021 and 2020, on which we have issued an unqualified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

To ensure that the Consolidated Financial Statements do not contain material misstatements caused by fraud or errors, the management is responsible for preparing prudent Consolidated Financial Statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, as well as the IFRS, IAS, law and regulation reviews and their announcements recognized and announced by the Financial Supervisory Commission, and for preparing and maintaining necessary internal control procedures pertaining to the Consolidated Financial Statements.

In preparing the Consolidated Financial Statements, the management is responsible for assessing Aurora Corporation and its subsidiaries' ability to continue as a going concern, disclosing, as applicable, matters related to the going concern and using the going concern basis of accounting unless the management either intends to liquidate Aurora Corporation and its subsidiaries or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Audit Committee) are responsible for overseeing Aurora Corporation and its subsidiaries' financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

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

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

Identify and evaluate the risk of material misstatements due to fraud or error in the Consolidated Financial Statements; design and carry out appropriate countermeasures for the evaluated risk; and obtain sufficient and appropriate evidence as the basis for their audit opinion. The risk of not detecting a material misstatement resulting from fraud is higher than

for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls of Aurora Corporation and its subsidiaries.
Assess the appropriateness of the accounting policies adopted by the management, as well as the reasonableness of their accounting estimates and relevant disclosures.
Conclude on the appropriateness of the management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Aurora Corporation and its subsidiaries' ability to operate as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the Consolidated Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause Aurora Corporation and its subsidiaries to cease to continue as a going concern.
Evaluate the overall expression, structure and contents of the Consolidated Financial Statements (including relevant Notes), and whether the Consolidated Financial Statements fairly present relevant transactions and items.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within Aurora Corporation and its subsidiaries to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision, and performance of the audit and for expressing an opinion on the Consolidated Financial Statements of Aurora Corporation and its subsidiaries.

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

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

From the matters communicated with those charged with governance, we determine the key audit matters of Aurora Corporation and its subsidiaries' Consolidated Financial Statements for the year ended December 31, 2021. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Deloitte & Touche

Chi Rui-Chuan, CPA Hsieh Chien-Hsin, CPA

Financial Supervisory Commission Approval No. Jin-Guan-Zheng-Shen No. 1060023872

Securities and Futures Commission Approval No. Tai-Cai-Zheng-6 No. 0920123784

March 16, 2022

Aurora Corporation and Subsidiaries Consolidated Balance Sheets December 31, 2021 and 2020 (In Thousands of New Taiwan Dollars)

Code 1100 1110 1136 1150 1170 1180 1200 1220 130X 1479 11XX 1550 1560 1600 1755 1760 1805 1821 1840 1920 1980 1990 15XX 1XXX Code 2100 2110 2130 2170 2180 2200 2230 2280 2300 21XX 2540 2570 2580 2640 2645 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 3500 31XX 36XX 3XXX	Assets Current Assets Cash and cash equivalents (Notes IV and VI) Financial assets at fair value through profit or loss - current (Notes IV and VII) Financial assets at amortized cost - current (Notes IV and VIII) Notes receivable (Notes IV and X) Accounts receivable (Notes IV and X) Accounts receivable - related parties (Notes IV, X and XXXI) Other receivables (Notes IV, X, and XXXI) Current tax assets (Notes IV and XXVI) Inventories (Notes IV and XI) Other current assets (Note XVIII) Total current assets Non-current assets Investments accounted for using the equity method (Notes IV and XIII) Contract assets - non-current (Notes IV and XXIV) Property, plant, and equipment (Notes IV, XIV, XXXI, and XXXII) Right-of-use assets (Notes IV, XV, and XXXI) Investment properties (Notes IV, XVI, and XXXII) Goodwill (Notes IV and XVII) Other intangible assets (Notes IV and XVII) Deferred tax assets (Notes IV and XXVI) Refundable deposits (Note XXXI) Other financial assets - non-current (Notes IX and XXXII) Other non-current assets (Note XVIII) Total non-current assets Total assets Liabilities and Equity Current Liabilities Short-term loans (Note XIX) Short-term notes and bills payable (Note XIX) Contract liabilities - current (Notes IV and XXIV) Accounts payable (Note XX) Accounts payable - related parties (Notes XX and XXXI) Other payables (Notes XXI and XXXI) Current tax liabilities (Notes IV and XXVI) Lease liabilities - current (Notes IV, XV, and XXXI) Other current liabilities (Note XXI) Total current liabilities Non-current liabilities Long-term loans (Note XIX) Deferred income tax liabilities (Notes IV and XXVI) Lease liabilities - non-current (Notes IV, XV, and XXXI) Net defined benefit liabilities - non-current (Notes IV and XXII) Guarantee deposits received (Note XXXI) Total non-current liabilities Total liabilities Equity attributable to owners of the Company (Note XXIII) Capital Stock Capital stock - common shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Treasury shares Total equity attributable to owners of the Company Non-controlling Interests Total equity Total liabilities and equity		December 31,2021	December 31,2021	% 15 - 24 1 6 1 1 - 9 1 58 18 1 14 4 2 1 - 1 1 - - 42 100 18 - 3 7 - 7 1 1 1 38 6 2 2 3 - 13 51 13 11 10 5 7 22 - 4) 42 7 49 100		December 31,2020	December 31,2020
			Amount $ 2,693,853 76,650 4,298,602 197,317 1,167,628 97,786 143,379 48,537 1,654,021 279,688 10,657,461 3,188,820 83,476 2,543,920 681,621 443,412 132,874 62,214 185,154 152,365 44,407 75,370 7,593,633 $ 18,251,094 $ 3,356,812 - 463,585 1,350,326 1,539 1,248,433 247,253 237,755 94,760 7,000,463 1,130,000 299,379 332,112 487,419 75,087 2,323,997 9,324,460 2,362,025 1,939,269 1,880,146 852,220 1,379,923 4,112,289 26,242) 791,826) 7,595,515 1,331,119 8,926,634 $ 18,251,094				Amount $ 5,444,125 77,420 1,873,326 190,720 1,303,845 102,688 109,530 49,332 1,463,649 281,074 10,895,709 3,156,926 19,590 2,315,741 641,237 450,870 132,801 44,208 179,114 150,569 60,665 15,479 7,167,200 $ 18,062,909 $ 2,621,620 319,651 467,117 1,391,425 1,955 1,221,392 194,294 310,468 91,711 6,619,633 1,340,000 258,460 346,260 481,453 92,956 2,519,129 9,138,762 2,362,025 1,941,799 1,731,715 852,220 1,504,059 4,087,994 28,697 791,826) 7,628,689 1,295,458 8,924,147 $ 18,062,909		%
		( (		(		(		(	30 - 10 1 7 1 1 - 8 2 60 17 - 13 4 3 1 - 1 1 - - 40 100 14 2 3 8 - 7 1 2 - 37 7 1 2 3 1 14 51 13 11 10 5 8 23 - 5) 42 7 49 100

The accompanying notes are an integral part of the Consolidated Financial Statements. Chairman: Yuan Hui-Hua General Manager: Chou Ming-Chung Principal Accounting Officer: Lin Ya-Ling

Aurora Corporation and Subsidiaries Consolidated Statements of Comprehensive Income For the Years Ended December 31, 2021 and 2020

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Code Operating revenue (Notes IV, XXIV, and XXXI) 4110 Sales revenue 4170 Sales returns 4190 Sales discounts and allowances 4000 Total operating revenue 5000 Operating costs (Notes IV, XI, XXV, and XXXI) 5900 Gross profit 5910 Realized gains from sales of associates 5950 Realized gross profit Operating expenses (Notes IV, X, XXV, and XXXI) 6100 Selling and marketing expenses 6200 General and administrative expenses 6450 Expected credit losses (gains) 6000 Total operating expenses 6900 Net operating income Non-operating income and expenses (Notes IV, VII, XIII, XXV, and XXXI) 7100 Interest income 7190 Other income		2021		% 100 - - 100 55 45 - 45 20 14 - 34 11 1 1		2020
		Amount $ 13,607,432 21,270 8,905 13,577,257 7,567,572 6,009,685 29,006 6,038,691 2,731,571 1,845,053 6,626) 4,569,998 1,468,693 146,093 156,703				Amount $ 12,985,917 25,470 9,473 12,950,974 7,152,644 5,798,330 76,297 5,874,627 2,439,433 1,905,205 12,609 4,357,247 1,517,380 63,933 127,087		%
	(							100 - - 100 55 45 1 46 19 15 - 34 12 - 1

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Code 7590 Other gains and losses 7050 Finance costs 7060 Share of profit or loss associates accounted for using the equity method 7000 Total non-operating income and expenses 7900 Net income before tax 7950 Income tax expense (Notes IV and XXVI) 8200 Net income Other comprehensive income 8310 Components that will not be reclassified to profit or loss (Notes IV, XXII, and XXVI) 8316 Unrealized gains (losses) on investments in equity instruments at fair value through other comprehensive income 8311 Gains (losses) on re-measurements of defined benefit plans 8320 Share of other comprehensive income of associates accounted for using the equity method 8349 Income tax related to components that will not be reclassified to profit or loss 8360 Components that may be reclassified to profit or loss (Notes IV) 8361 Exchange differences on translation of financial statements of foreign operations 8370 Share of other comprehensive income of associates accounted for using the equity method		2021	% - - 2 4 15 4 11 - - - - - - - -		2020
		Amount 58,640 45,385 ) 235,655 551,706 2,020,399 494,168 1,526,231 - 27,020 ) 13,121 5,404 8,495) 71,528 ) 4,533) 76,061)			Amount 124,854 57,471 ) 249,645 508,048 2,025,428 466,693 1,558,735 232,144 28,086 ) 5,194 ) 5,617 204,481 151,624 10,038 161,662	%
	( ( ( ( ( (			( ( (		1 - 2 4 16 4 12 2 - - - 2 1 - 1

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Code 8300 Other comprehensive income, net 8500 Total comprehensive income Net Income Attributable to: 8610 Owners of the Company 8620 Non-controlling Interests 8600 Total comprehensive income attributable to: 8710 Owners of the Company 8720 Non-controlling Interests 8700 Earnings per share (Note XXVII) 9710 Basic 9810 Diluted		2021		% - 11 10 1 11 10 1 11		2020
		Amount 84,556) $ 1,441,675 $ 1,391,539 134,692 $ 1,526,231 $ 1,315,711 125,964 $ 1,441,675 $ 6.19 $ 6.18				Amount 366,143 $ 1,924,878 $ 1,438,309 120,426 $ 1,558,735 $ 1,765,942 158,936 $ 1,924,878 $ 6.40 $ 6.39		%
	(							3 15 11 1 12 14 1 15

The accompanying notes are an integral part of the Consolidated Financial Statements.

Chairman: Yuan Hui-Hua General Manager: Chou Ming-Chung

Principal Accounting Officer: Lin Ya-Ling

Aurora Corporation and Subsidiaries Consolidated Statements of Changes in Equity For the Years Ended December 31, 2021 and 2020

(In Thousands of New Taiwan Dollars)

Capital surplus $ 1,920,710 - - ( 47,241 ) - - - 68,330 - - - 1,941,799 - - ( 70,860 ) - - - 68,330 - $ 1,939,269		Retained earnings	Unappropriated earnings $ 1,523,968 ( 134,244 ) ( 1,369,975 ) - 1,438,309 ( 23,390) 1,414,919 - - - 69,391 1,504,059 ( 148,431 ) ( 1,346,355 ) - 1,391,539 ( 20,889) 1,370,650 - - $ 1,379,923		Other equity Exchange differences on translation of financial statements of foreign operations Unrealized gains or losses on financial assets at fair value through other comprehensive income $ 758,072 ) $ 505,137 - - - - - - - - 143,439 207,584 143,439 207,584 - - - - - - - ( 69,391) 614,633 ) 643,330 - - - - - - - - 67,542) 12,603 67,542) 12,603 - - - - $ 682,175) $ 655,933	Other equity Exchange differences on translation of financial statements of foreign operations Unrealized gains or losses on financial assets at fair value through other comprehensive income $ 758,072 ) $ 505,137 - - - - - - - - 143,439 207,584 143,439 207,584 - - - - - - - ( 69,391) 614,633 ) 643,330 - - - - - - - - 67,542) 12,603 67,542) 12,603 - - - - $ 682,175) $ 655,933	Treasury shares ( $ 791,826 ) - - - - - - - - - - ( 791,826 ) - - - - - - - - ($ 791,826)	Total Equity Attributable to Owners of the Company $ 7,211,633 - ( 1,369,975 ) ( 47,241 ) 1,438,309 327,633 1,765,942 68,330 - - - 7,628,689 - ( 1,346,355 ) ( 70,860 ) 1,391,539 ( 75,828) 1,315,711 68,330 - $ 7,595,515	Non-controlling Interests $ 1,162,100 - - - 120,426 38,510 158,936 6,651 6,297 ( 38,526 ) - 1,295,458 - - - 134,692 ( 8,728) 125,964 6,651 ( 96,954) $ 1,331,119		Total Equity
					Exchange differences on translation of financial statements of foreign operations $ 758,072 ) - - - - 143,439 143,439 - - - - 614,633 ) - - - - 67,542) 67,542) - - $ 682,175)
	Legal Reserve $ 1,597,471 134,244 - - - - - - - - - 1,731,715 148,431 - - - - - - - $ 1,880,146	Special Reserve $ 852,220 - - - - - - - - - - 852,220 - - - - - - - - $ 852,220
( (			( ( ( ( ( (	( ( ( ( (		(	( ( (	( ( ( ( (	( ( (	( ( ( ( ( ( (	$ 8,373,733 - 1,369,975 ) 47,241 ) 1,558,735 366,143 1,924,878 74,981 6,297 38,526 ) - 8,924,147 - 1,346,355 ) 70,860 ) 1,526,231 84,556) 1,441,675 74,981 96,954) $ 8,926,634

The accompanying notes are an integral part of the Consolidated Financial Statements.

Chairman: Yuan Hui-Hua

General Manager: Chou Ming-Chung

Principal Accounting Officer: Lin Ya-Ling

Aurora Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2021 and 2020

(In Thousands of New Taiwan Dollars)

Code Cash flows from operating activities A00010 Net income before tax A20010 Adjustments: A20100 Depreciation expenses A20200 Amortization expenses A20300 Expected credit losses(or reversal) A20400 Net gain on financial assets at fair value through profit or loss A20900 Finance costs A21200 Interest income A22300 Share of profit of associates accounted for using the equity method A22500 Loss on disposal of property, plant, and equipment A22700 Gain on disposal of investment property A23900 Realized gains from associates A29900 Gains on lease modifications A30000 Changes in operating assets and liabilities A31130 Notes receivable A31150 Accounts receivable A31160 Accounts receivable - related parties A31180 Other receivables A31200 Inventories A31240 Other current assets A31125 Contract assets A32150 Accounts payable A32160 Accounts payable - related parties A32180 Other payables A32230 Other current liabilities A32240 Net defined benefit liabilities A33000 Cash generated from operations A33300 Interest paid A33500 Income tax paid AAAA Net cash flows generated from operating activities Cash flows from investing activities	2021 $ 2,020,399 839,990 21,443 ( 6,626 ) ( 71,093 ) 45,385 ( 146,093 ) ( 235,655 ) 753 ( 13,124 ) ( 29,006 ) ( 880 ) ( 6,597 ) 143,178 4,902 ( 32,935 ) ( 442,571 ) 1,386 ( 63,886 ) ( 41,099 ) ( 416 ) 41,295 ( 483 ) ( 21,054) 2,007,213 ( 59,639 ) ( 373,647) 1,573,927	2020
		$ 2,025,428 842,956 16,940 12,609 ( 156,023 ) 57,437 ( 63,916 ) ( 249,645 ) 5,184 ( 8,653 ) ( 76,297 ) ( 204 ) ( 4,004 ) ( 300,489 ) 5,187 8,034 ( 97,504 ) ( 103,075 ) ( 19,590 ) 209,942 ( 10,814 ) 162,541 31,254 ( 32,246) 2,255,052 ( 77,920 ) ( 301,705) 1,875,427

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Code B00020 Disposal of financial assets at fair value through other comprehensive income B00040 Acquisition of financial assets at amortized cost B00100 Acquisition of financial assets at fair value through profit or loss B00200 Disposal of financial assets at fair value through profit or loss B02700 Acquisition of property, plant, and equipment B02800 Proceeds from disposal of property, plant, and equipment B03700 Increase in refundable deposits B03800 Decrease in refundable deposits B04500 Acquisition of intangible assets B05500 Disposal of investment property B06700 Increase in other non-current assets B06800 Decrease in other non-current assets B07500 Interest received B07600 Dividends received BBBB Net cash flows used in investing activities Cash flows from financing activities C00100 Increase in short-term loans C00200 Decrease in short-term loans C00500 Increase in short-term notes and bills payable C00600 Decrease in short-term notes and bills payable C01700 Repayments of long-term loans C03100 Decrease in guarantee deposits received C04020 Repayment of the principal portion of lease liabilities C04500 Cash dividends paid C05800 Changes in non-controlling interests CCCC Net cash flows used in financing activities DDDD Effects of exchange rate changes on the balance of cash held in foreign currencies EEEE Net decrease in cash and cash equivalents E00100 Cash and cash equivalents at beginning of period E00200 Cash and cash equivalents at end of period	2021 - ( 2,425,276 ) ( 14,026,702 ) 14,098,565 ( 603,874 ) 1,737 ( 1,796 ) - ( 37,807 ) 15,664 - 9,553 145,179 236,424 ( 2,588,333) 735,192 - - ( 319,651 ) ( 210,000 ) ( 17,869 ) ( 398,767 ) ( 1,439,188 ) - ( 1,650,283) ( 85,583) ( 2,750,272 ) 5,444,125 $ 2,693,853	2020
		339,967 ( 644,259 ) ( 18,515,874 ) 18,752,483 ( 641,062 ) 12,106 - 16,957 ( 24,657 ) 18,333 ( 12,040 ) - 64,059 224,336 ( 409,651) - ( 192,648 ) 219,659 - ( 140,000 ) ( 15,242 ) ( 405,237 ) ( 1,380,761 ) 6,297 ( 1,907,932) 121,620 ( 320,536 ) 5,764,661 $ 5,444,125

The accompanying notes are an integral part of the Consolidated Financial Statements.

Chairman: Yuan Hui-Hua General Manager: Chou Ming-Chung Principal Accounting Officer: Lin Ya-Ling

Aurora Corporation and Subsidiaries

Notes to Consolidated Financial Statements

For the Years Ended December 31, 2021 and 2020

(Amount in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1. Company History

Aurora Corporation (the Company; the Company and entities controlled by the Company collectively referred to as the "Group") was founded in Taipei in October 1965. The main businesses of the Company include the trade, lease, and repair of Multi-Functional Photocopiers (MFPs) and computer equipment and the sales of system furniture.

The Company's shares have been listed on the Taiwan Stock Exchange since August 1991.

The Consolidated Financial Statements are presented in the New Taiwan dollar, the Company's functional currency.

2. Date of Authorization for Issuance of the Consolidated Financial Statements and

Procedures for Authorization

The Consolidated Financial Statements have been approved by the Board of Directors on March 16, 2022.

3. Application of New and Amended Standards and Interpretations

a. Initial application of the latest Regulations Governing the Preparation of Financial Reports by Securities Issuers, as well as the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), International Financial Reporting Interpretations Committee (IFRIC), and Standard Interpretations Committee (SIC) (the "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (the "FSC").

The application of the latest Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC should not result in major changes in the accounting policies of the Group.

b. FSC-endorsed IFRSs that are applicable from 2022 onward

New/Revised/Amended Standards and Interpretations “Annual Improvements to IFRSs 2018-2020 Cycle” Amendments to IFRS 3 "Reference to the Conceptual Framework" Amendments to IAS 16 "Property, Plant and Equipment - Proceeds before Intended Use" Amendments to IAS 37 "Onerous Contracts - Cost of Fulfilling a Contract"	Effective Date of Issuance bythe IASB
	January 1, 2022 (Note 1) January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4)

Note 1. The amendments to IFRS 9 apply prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 "Agriculture" apply prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 "First-time Adoptions of IFRSs" apply retrospectively for annual reporting periods beginning on or after January 1, 2022.
Note 2. The amendments apply to the business combination of which the acquisition date falls on the annual reporting periods beginning on or after January 1, 2022.
Note 3. The amendments apply to property, plant, and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 4. The amendments apply to contracts that will not have been completely fulfilled in the annual period beginning after January 1, 2022.

As of the date of authorization of the Consolidated Financial Statements, the Group has continued to assess the effects of amendments to other standards and interpretations on its financial conditions and performance. Related impacts will be disclosed upon completion of the assessment.

c. Standards issued by the IASB but not yet endorsed and issued into effect by the FSC

New/Revised/Amended Standards and Interpretations Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture" IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9―Comparative Information” Amendments to IAS 1 "Classify Liabilities as Current or Non-current" Amendments to IAS 1 "Disclosure of Accounting Policies" Amendments to IAS 8 "Definition of Accounting Estimates" Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”	Effective Date of Issuance bythe IASB(Note 1)
	To be determined January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 (Note 2) January 1, 2023 (Note 3) January 1, 2023 (Note 4)

New/Revised/Amended Standards and Interpretations
Amendments to IFRS 10 and IAS 28 "Sale or Contribution
of Assets between an Investor and Its Associate or Joint
Venture"
IFRS 17 “Insurance Contracts”
Amendments to IFRS 17
Amendments to IFRS 17 “Initial Application of IFRS 17
and IFRS 9―Comparative Information”
Amendments to IAS 1 "Classify Liabilities as Current or
Non-current"
Amendments to IAS 1 "Disclosure of Accounting Policies"
Amendments to IAS 8 "Definition of Accounting
Estimates"
Amendments to IAS 12 “Deferred Tax related to Assets and
Liabilities arising from a Single Transaction”

Effective Date of Issuance
bythe IASB(Note 1)

To be determined
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 2)
January 1, 2023 (Note 3)
January 1, 2023 (Note 4)

Note 1. Unless otherwise specified, the aforementioned New/Amended/Revised Standards and Interpretations shall be effective for the annual reporting period after the specified dates.
Note 2. The amendments prospectively apply to the annual reporting periods beginning on or after January 1, 2023.
Note 3. The amendments apply to changes in accounting estimates and in accounting policies which take place in the annual reporting periods beginning on or after January 1, 2023.

Note 4. The amendment applies to transactions occurring after January 1, 2022, except for the recognition of deferred tax for all temporary differences related to leases and decommissioning obligations as of January 1, 2022.

4. Summary of Significant Accounting Policies

a. Compliance declaration

The Consolidated Financial Statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC.

b. Preparation basis

The Consolidated Financial Statements have been prepared on a historical cost basis, except for financial instruments measured at fair value and net defined benefit liabilities recognized at the present value of defined benefit obligations less fair value of plan assets.

The fair value measurement is classified into three levels based on the observability and importance of related input:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities on the measurement date.
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. deduced from prices).
3) Level 3 inputs are unobservable inputs for the asset or liability.
c. Standards for assets and liabilities classified as current and non-current
Current assets include:
1) Assets held primarily for trading purposes;
2) Assets expected to be realized within 12 months after the balance sheet date; and
3) Cash or cash equivalents (excluding assets restricted from being exchanged or used to settle a liability for at least 12 months after the balance sheet date).

Current liabilities include:

1) Liabilities held primarily for trading purposes;
2) Liabilities with settlement within 12 months after the balance sheet date; and
3) Liabilities with a repayment schedule that cannot be unconditionally deferred till at least 12 months after the publication of the balance sheet.

All other assets or liabilities that are not specified above are classified as non-current.

d. Basis of consolidation

The Consolidated Financial Statements include the financial statements of the Company and entities controlled by the Company (i.e., subsidiaries). The Consolidated Statements of Comprehensive Income include the operating income/loss of the acquired or disposed subsidiaries from the date of acquisition to the date of disposal in the current period. The financial statements of the subsidiaries have been adjusted to bring their accounting policies in line with those used by the Group. All intergroup transactions, balances, income and expenses are eliminated in full upon consolidation. A subsidiary's total comprehensive income is attributed to the owners of the Company and non-controlling interests, even if non-controlling interests become having deficit balances in the process.

Please refer to Notes XII and XXXVI (Tables 6 and 7) for details, shareholding ratio, and business activities of subsidiaries.

e. Business combinations

The acquisition method is applied to business combinations. Costs associated with acquisition are recognized as expenses in the year when costs incurred and services received.

Goodwill is measured by adding the fair value of consideration transferred and fair value of the acquirer's previously owned acquiree equity on acquisition date minus the net value of identifiable assets and assumed liabilities on acquisition date. If after reassessment, the net amount of identifiable assets and assumed liabilities acquired on the acquisition date still exceeds the total amount of consideration transferred, non-controlling interest of the acquiree., and fair value of the acquiree equity previously held by the acquirer on the acquisition date, the difference is the gain on bargain purchase, which is immediately recognized in profit or loss.

If the measurement of identifiable assets and liabilities assumed from business combinations is not completed by the balance sheet date, provisional amounts would be recognized instead. Retrospective adjustments or recognition of additional assets or liabilities are required during the measurement period to reflect new information obtained on the facts and circumstances that existed on the acquisition date.

f. Foreign currencies

In the preparation of each individual financial statements, transactions denominated in a currency other than the entity’s functional currency (i.e., foreign currency) are translated into the entity's functional currency by using the exchange rate at the date of the transaction before they are recorded by each entity.

Monetary items denominated in foreign currencies are translated at the closing rates on the balance sheet date. Exchange differences arising from settlement or translation of monetary items are recognized in profit or loss in the year in which they arise.

Non-monetary items measured at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. The resulting exchange difference is recognized in profit or loss. For items whose changes in fair value are recognized in other comprehensive income, the resulting exchange difference is recognized in other comprehensive income.

Non-monetary items measured at historical cost that are denominated in foreign currencies are translated at the rates of exchange prevailing on the transaction dates and are not re-translated.

In the preparation of the consolidated financial statements, the assets and liabilities of foreign operations (including subsidiaries that operate in a country or currency different from the Company) are translated into the New Taiwan dollar at the closing rate of exchange prevailing on the balance sheet date. Income and expenses are translated at the average rate of the year. The exchange differences arising are recognized in other comprehensive income (and are attributable to owners of the Company and non-controlling interests respectively).

On the disposal of the entire interest in the foreign operation, or when the retained interests upon the disposal of foreign operation's joint venture are financial assets and accounted for using the accounting policies for financial instruments, all of the accumulated exchange differences attributable to owners of the Company and associated with the foreign operation are reclassified to profit or loss.

g. Inventories

Inventories comprise office automation products, office supplies, computer equipment, communication products and supplies, system furniture, raw materials, and work in process. Inventory costs are calculated using the weighted average method. Inventories are measured at the lower of cost and net realizable value. The comparison between costs and net realizable values is based on individual items except for the same type of inventory. The net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated cost necessary to make the sale.

h. Investments in associates

An associate is an entity over which the Group has significant influence other than a subsidiary or a joint venture.

The Group accounts for investments in associates by using the equity method.

Under the equity method, investments are initially treated at cost and adjusted thereafter for the post-acquisition change in the Group's interest in profit or loss, share in other comprehensive income, and profits of associates. In addition, equity changes in associates are recognized based on the shareholding ratio.

Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets, and liabilities of associates recognized at the date of acquisition is recognized as goodwill, which is included in the carrying amount of the investment and may not be amortized. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition is recognized as profit or loss in the current year.

When associates issue new shares and the Group does not subscribe to such shares to the extent that its original shareholding ratio can be changed, the difference is recorded as an adjustment to capital surplus - changes in the net value of shares in associates accounted for using the equity method and other investments accounted for using the equity method. If the amount of ownership interests in associates is not subscribed for or obtained in proportion to the shareholding ratio, the amount of the related assets or liabilities shall be recognized in other comprehensive income. The basis of the accounting treatment is the same as that of the associates. The difference in the balance of the capital reserve accounted for using the equity method shall be recognized in retained earnings.

To assess impairment, the Group has to consider the overall carrying amount (including goodwill) of the investment as a single asset to compare the recoverable and carrying amounts. The cost of impairment identified is to be deemed as part of the carrying amount of the investment. Reversal of the impairment loss is recognized to the extent of subsequent increases in the recoverable amount of investment.

Profits and losses in upstream, downstream and side-stream transactions between the Group and associates and between the Group are recognized in the consolidated financial statements only when the profits and losses are irrelevant to the Group's interests in the associates.

i. Property, plant, and equipment

Property, plant, and equipment shall be recognized at cost and subsequently at cost less accumulated depreciation.

Each significant part of property, plant, and equipment is separately depreciated over its useful life on a straight-line basis. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

When property, plant, and equipment is derecognized, the difference between the net disposal proceeds and the carrying amount of the asset shall be recognized in profit or loss.

j. Investment property

Investment property is real estate held for rent or capital appreciation or both.

Investment property owned by the Group is measured initially at cost (including transaction costs) and subsequently at cost less accumulated depreciation. Depreciation is recognized on a straight-line basis.

k. Goodwill

The value of goodwill received through business combinations has to be shown as the amount of goodwill recognized on the acquisition date and subsequently evaluated as cost less accumulated impairment loss.

To evaluate impairment, goodwill is distributed among various cash-generating units or cash-generating unit groups ("cash-generating units") which the Group expects to benefit by business combinations.

The cash-generating units that are allocated goodwill will compare the unit's carrying amount and its recoverable amount including goodwill every year (and whenever there are signs of impairment) to evaluate the impairment of the unit. If the goodwill is obtained by the cash-generating units through a business combination in the current year, an impairment test is to be conducted prior to the end of the current year. If the recoverable amount of the cash-generating units is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating units and then to the other assets of the unit on a pro rata basis based on the carrying amount of each asset in the unit. Impairment loss is considered as loss in the current year. The impairment loss of goodwill shall not be reversed in subsequent periods.

l. Intangible assets
1) Separate acquisition

Intangible assets with a limited useful life will be evaluated initially at cost and subsequently at cost less accumulated amortization. Intangible assets will be amortized using the straight-line method within the useful life. The Group will review the estimated useful life, residual value, and depreciation methods at the end of each year at least once a year to deduce the effect of the changes in accounting estimates.

2) Derecognition

When intangible assets are derecognized, the difference between the net disposal proceeds and the carrying amount of the asset shall be recognized in profit or loss of the current year.

m. Impairment of property, plant, and equipment as well as right-of-use assets, investment property, and intangible assets (excluding goodwill)

On each balance sheet date, the Group reviews the carrying amounts of its property, plant, and equipment as well as right-of-use assets, investment property and intangible assets (excluding goodwill) to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount is the fair value minus cost of sales or its value in use, whichever is higher. If the recoverable amount of individual asset or the cash-generating unit is lower than its carrying amount, the carrying amount of the asset or the cash-generating unit shall be reduced to the recoverable amount and the impairment loss shall be recognized in profit or loss.

When the impairment loss is subsequently reversed, the carrying amount of the asset or the cash-generating unit will be reduced to the extent of recoverable amount prior to revision, provided the increased carrying amount does not exceed the carrying amount (minus amortization or depreciation) of the asset or of the cash-generating unit not declared as impairment loss in the previous years. A reversal of an impairment loss is recognized immediately in profit or loss.

n. Financial instruments

Financial assets and liabilities will be recognized in the consolidated balance sheets when the Group becomes a party to the contract of the financial instrument.

When showing the original financial assets and liabilities, if their fair value was not assessed based on profit or loss, it is the fair value plus the cost of transaction, that is, of its acquisition or issuance of the financial assets or financial liabilities. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

1) Financial assets

Regular trading of financial assets shall be recognized and derecognized in accordance with trade date accounting.

a) Types of measurement
Financial assets held by the Group are classified as financial assets at fair value through profit or loss, financial assets at amortized cost, and investments in equity instruments at fair value through other comprehensive income.
i. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets mandatorily measured at fair value through profit or loss and financial assets designated as at fair value through profit or loss. Financial assets mandatorily measured at fair value through profit or loss include equity instrument investments not designated by the Group to be measured at fair value through other comprehensive income, and debt instrument investments not subject to classification as measured at amortized cost or to be measured at fair value through other comprehensive income.

Financial assets at fair value through profit or loss are measured at fair value; any re-measurement profit or loss (including any dividends or interests derived from such financial assets) is recognized in profit or loss. Please refer to Note XXX for the methods for determining fair values.

ii. Financial assets at amortized cost

When the Group's investments in financial assets satisfy the following two conditions simultaneously, they are classified as financial assets at amortized cost:

i) Financial assets are under a business model whose purpose is to hold financial assets and collecting contractual cash flows; and
ii) The terms of the contract generate a cash flow on a specified date that is solely for the payment of interest on the principal and the amount of principal outstanding.

After initial recognition, financial assets measured at amortized cost are measured at amortized cost, which equals to gross carrying amount determined by the effective rate method less any impairment loss.

Except for the following two circumstances, interest income is calculated at the value of effective interest rate times the gross carrying amount of financial assets:

i) For purchased or originated credit-impaired financial assets, interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial assets.
ii) For financial assets that are not acquired or originated credit-impaired but subsequently become credit-impaired, interest income is calculated by applying the effective interest rate to the amortized cost balance of such financial assets from the next reporting period after the impairment.

Cash equivalents include time deposits within three months from the acquisition date and with high liquidity and relatively low price changes convertible to cash any time. They are used for meeting short-term cash commitments.

iii. Investments in equity instruments at fair value through other comprehensive income

The Group may, at initial recognition, make an irrevocable decision to designate an equity instrument that is neither held for trading nor contingent consideration arising from a business combination to be measured at fair value through other comprehensive income.

Investments in equity instruments at fair value through other comprehensive income are measured at fair value, and any subsequent fair value changes are recognized in other comprehensive income and accumulated in other equity. When the investment is disposed of, the cumulative profit or loss is directly transferred to retained earnings and not reclassified to profit or loss.

Dividends of investments in equity instruments at fair value through other comprehensive income are recognized in profit or loss when the Group's right to receive payment is confirmed unless such dividends clearly represent the recovery of a part of the investment cost.

b) Impairment of financial assets

The impairment loss of financial assets at amortized cost is measured by the Group on the balance sheet date based on the expected credit losses.

Allowances shall be appropriated for accounts receivable for expected credit losses for the duration of their existence. A loss allowance for the 12-month expected credit losses is required for a financial asset if its credit risk has not increased significantly since initial recognition. A loss allowance for full lifetime expected credit losses is required for a financial asset if its credit risk has increased significantly since initial recognition.

The expected credit loss is the weighted average credit loss determined by the risk of default. The 12-month expected credit losses represent the expected credit losses arising from the possible default of the financial instrument in the 12 months after the balance sheet date, and the expected credit losses during the lifetime represent the expected credit losses arising from all possible defaults of the financial instrument during the expected existence period.

For the purpose of internal credit risk management, under the premise that the collateral held is not under consideration, the Group determines that there is internal or external information indicating that the debtor cannot settle the debt, which represents that the financial assets have breached the contract.

The impairment loss of all financial assets is reduced based on the allowance account.

c) Derecognition of financial assets

The Group derecognizes the financial assets when the contractual rights to the cash flow from the said financial assets expire or when the Group transfers almost all the risks and rewards of ownership of the financial assets to other enterprises.

On derecognition of a financial asset measured at amortized cost, the difference between the asset's carrying amount and the sum of the consideration received is recognized in profit or loss. Through the full derecognition of the investments in equity instruments at fair value through other comprehensive income, the cumulative profit or loss is directly transferred to retained earnings and not reclassified to profit or loss.

2) Financial liabilities
a) Subsequent measurement

Financial liabilities are assessed at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

When financial liabilities are derecognized, the difference between their carrying amount and the paid consideration (including any transferred non-cash assets or liabilities assumed) shall be recognized in profit or loss.

o. Revenue recognition

After the Group identifies its performance obligations in contracts with customers, it shall amortize the transaction costs to each obligation in the contract and recognize revenue upon satisfaction of performance obligations.

1) Sales revenue of commodities

Sales revenue of commodities comes from the sale of Multi-Functional Photocopiers (MFPs), fax machines, and telecommunication products. When MFPs, fax machines, and telecommunication products are shipped to the locations designated by the customers, the customers have already obtained the rights to establish the price and usage of the commodities and are primarily liable for the resale of the commodities. The customers shall undertake the related obsolescence risk and the Group will recognize revenue and accounts receivable at that time.

2) Service revenue

Service revenue is derived from the maintenance services of the equipment. Relevant revenue is recognized when services are rendered.

p. Leases

The Group assesses whether the contract is (or includes) a lease on the date of its establishment.

1) Where the Group is a lessor:

Under operating leases, lease payments after deducting lease incentives are recognized as revenue on a straight-line basis over the relevant lease term. The initial direct costs arising from acquisition of operating leases is added to the carrying amount of the underlying assets; and an expense is recognized for the lease on a straight line basis over the lease term.

2) Where the Group is a lessee:

Except that the lease payments of the low value subject-matter assets and short-term leases applicable to recognition exemption are recognized as expenses on a straight-line basis during the lease period, other leases are recognized as right-of-use assets and lease liabilities on the lease commencement date.

The right-of-use asset is initially measured at cost (including the original measured amount of the lease liability, the lease payment paid before the lease commencement date minus the lease incentive received, the original direct cost and the estimated cost of the recovery target asset), and subsequently measured at cost minus the accumulated depreciation and the accumulated impairment loss and adjusted for the remeasurement of the lease liability. The right-of-use assets are separately expressed in the consolidated balance sheets.

The right-of-use assets shall be depreciated on a straight-line basis from lease commencement date to the end of the useful life or the end of the lease term.

Lease liabilities are initially measured at the present value of lease payments (including fixed payments; in-substance fixed payments; variable lease payments that are determined by an index or a rate; amounts expected to be paid by the lessee under residual value guarantees; the exercise price of a purchase option when it is reasonably certain to exercise the option; and penalties for terminating the lease reflected in the lease term; less any lease incentives receivable). If the implicit interest rate of lease is easy to determine, the interest rate is used to discount the lease payment. If the interest rate is not easy to determine, the lessee's incremental borrowing rate shall be used.

Subsequently, the lease liability is measured on the basis of amortized cost using the effective interest method, and the interest expense is apportioned during the lease period. If the assessments on lease terms, amounts expected to be paid under residual value guarantees and purchase option of the underlying assets; or changes in the index or rate which determines the lease payments result in changes in future lease payments, the Group would remeasure the lease liabilities with a corresponding adjustment on the right-of-use assets. However, if the carrying amount of right-of-use assets has been reduced to zero, the remaining remeasurement amount is recognized in profit or loss. With regard to changes in leases that are not considered separate leases, the remeasurement of lease liabilities as a result of the decrease in the scope of the lease refers to the reduction in right-of-use assets, with the recognition of the gains or losses on partial or complete termination of the lease. The remeasurement of lease liabilities as a result of other amendments refers to the adjustment in right-of-use assets. Lease liabilities are presented separately in the consolidated balance sheets.

q. Benefits after retirement

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

The costs of defined benefits under the defined benefit pension plan (including service cost, net interest, and the remeasurement amount) are calculated based on the projected unit credit method. The cost of services (including the cost of services of the current and previous periods) and the net interest of the net defined benefit liabilities are recognized as employee benefit expenses. The remeasurement amount (including actuarial gains and losses (assets) and the return on plan assets after deducting interest) is recognized in other comprehensive income and presented in retained earnings when it occurs or when the plan is revised or reduced. It shall not be reclassified to profit or loss in subsequent periods.

Net defined benefit liabilities are the deficit of the contribution made according to the defined benefit pension plan.

r. Income Tax

Income tax expenses are the sum of the tax in the current year and deferred income tax.

1) Income tax in the current year

The current income tax payable is calculated based on the taxable income in the current year. A portion of the income and expenses is taxable or deductible in other periods or is not taxable or deductible under the relevant tax laws. Therefore, the taxable income differs from the net income reported in the consolidated statements of comprehensive income. The Group's current income tax liabilities are based on the statutory tax rate on the balance sheet date.

The Group determines the income (loss) of the current year in accordance with the laws and regulations in each income tax declaration jurisdiction, and calculates the income tax payable (recoverable) accordingly.

A tax is levied on the unappropriated earnings pursuant to the Income Tax Act of the Republic of China and is recorded as an income tax expense in the year when the shareholders' meeting resolves to appropriate the earnings.

Adjustments to prior year income taxes are shown in the taxes of the current year.

2) Deferred income tax

Deferred income tax is calculated based on the temporary difference between the carrying amount of the assets and liabilities and the taxable basis of the taxable income. Deferred income tax liabilities are generally recognized for all taxable temporary differences and deferred income tax assets are recognized when there are likely taxable income for the deducting temporary differences.

Deferred income tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. For deductible temporary differences associated with such investment and equity, when it is probable that sufficient taxable income will be available to realize such temporary difference, a deferred tax asset is recognized, but only to the extent of the amount that is expected to be reversed in the foreseeable future.

The carrying amount of the deferred income tax assets is re-examined at each balance sheet date and the carrying amount is reduced for assets that are no longer likely to generate sufficient taxable income to recover all or part of the assets.

Deferred income tax assets and liabilities are measured at the tax rate of the period of expected repayment of liabilities or realization of assets. The rate is based on the tax rate and tax laws that have been enacted prior to the balance sheet date or have been substantially legislated. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred income taxes

Current income tax and deferred income tax are recognized in profit or loss except for those related to items recognized in other comprehensive income that shall be recognized in other comprehensive income.

5. Primary Sources of Uncertainties in Material Accounting Judgments, Estimates, and Assumptions

When the Group adopts accounting policies, the management must make judgments, estimates, and assumptions based on historical experience and other critical factors for related information that are not readily available from other sources. Actual results may differ from these estimates.

The Group has taken into consideration the recent development of the COVID-19 outbreak in Taiwan and its possible impact on the economic environment, and the management will constantly review its estimates and basic assumptions as part of its consideration of cash flow projections, growth rates, discount rates, profitability and other related significant accounting estimates. If an amendment of estimates only affects the current period, it shall be recognized in the period of amendment; if an amendment of accounting estimates affects the current year and future periods, it shall be recognized in the period of amendment and future periods.

After reviewing the accounting policies, estimates, and assumptions adopted by the Group, the management found no material uncertainties.

6. Cash and Cash Equivalents

December 31, 2021 December 31, 2020 Cash on hand and working capital $ 3,350 $ 3,355 Checks and demand deposits in banks 1,343,863 4,849,875 Cash equivalents Time deposits with original maturity date within 3 months 1,346,640 590,895 $ 2,693,853 $ 5,444,125

Interest rate ranges for time deposits with original maturity date within 3 months as of December 31, 2021 and 2020 are as follows:

RMB

December 31, 2021 December 31, 2020 1.8%~2.1% 2.025%

7. Financial Instruments at Fair Value through Profit or Loss

December 31, 2021 December 31, 2020

Financial assets - current

Mandatorily measured at fair value through profit or loss Non-derivative financial assets

－ Fund beneficiary certificates $ 76,650 $ 77,420

a. For the years ended December 31, 2021 and 2020, net income from financial assets at fair value through profit or loss were and NT$71,093 thousand and NT$156,023 thousand, respectively.
b. For securities held by the Group as of December 31, 2021, please refer to Note XXXVI (Table 1).

8. Financial Assets at Amortized Cost - Current

December 31, 2021 December 31, 2020 Time deposits with original maturity over 3 months $ 4,298,602 $ 1,873,326

Interest rate ranges for time deposits with original maturity over 3 months December 31, 2021 and 2020 as of are as follows:

and 2020 as of are as follows:
RMB	December 31,2021 2.68%`～`4.18%	December 31,2020
		2.63%`～`4.18%

For securities held by the Group as of December 31, 2021, please refer to Note XXXVI (Table 1).

9. Other Financial Assets - Non-current

9.	Other Financial Assets- Non-current	Other Financial Assets- Non-current
10.	December 31,2021 Restricted bank deposits $ 44,407 Notes Receivables, Accounts Receivables, and Other Receivables December 31,2021 Notes receivable Measured at amortized cost Total carrying amount $ 197,317 Less: loss allowance - $ 197,317 Accounts receivable Measured at amortized cost Total carrying amount $ 1,192,138 Less: loss allowance ( 24,510) $ 1,167,628 Accounts receivable-related parties Measured at amortized cost Total carrying amount $ 97,786 Less: loss allowance - $ 97,786 Other receivables Rent collected $ 65,138 Related parties 37,098 Interest receivable 586 Others 40,557 $ 143,379 Overdue receivables Overdue receivables $ 21,882 Less: loss allowance ( 21,882) $ -		December 31,2020
			$ 60,665 December 31,2020
	Notes receivable Measured at amortized cost Total carrying amount Less: loss allowance Accounts receivable Measured at amortized cost Total carrying amount Less: loss allowance Accounts receivable-related parties Measured at amortized cost Total carrying amount Less: loss allowance Other receivables Rent collected Related parties Interest receivable Others Overdue receivables Overdue receivables Less: loss allowance
		( (	( (	$ 190,720 - $ 190,720 $ 1,331,669 27,824) $ 1,303,845 $ 102,688 - $ 102,688 $ 64,915 9,929 5 34,681 $ 109,530 $ 26,327 26,327) $ -

Accounts receivable

The Group's credit period for commodity sales averages 60~90 days. To minimize credit risk, the management of the Group has delegated a team responsible for taking other monitoring measures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual receivable on the balance sheet date to ensure that adequate allowances are made for possible irrecoverable amounts. As such, the Group's management concludes that the credit risk has been significantly reduced.

The Group adopts the simplified approach as stipulated in IFRS 9 and recognizes loss allowances for accounts receivables based on the lifetime expected credit losses. The lifetime expected credit losses are calculated based on a provision matrix that takes into account the default history and current financial position of customers, as well as the GDP forecast. Due to the historical experience of credit losses of the Group, there is no significant difference in the loss patterns of different customer groups. Therefore, the provision matrix does not further distinguish the customer base, and only sets the expected credit loss rate based on the overdue days of accounts receivable.

The Group writes off accounts receivable when there is information indicating that the debtor is experiencing severe financial difficulty and there is no realistic prospect of recovery of the receivables. For accounts receivable that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, they are recognized in profit or loss.

Loss allowances for accounts receivable based on the provision matrix are as follows:

December 31, 2021

December 31, 2021
Expected credit loss rate Total carrying amount Allowance for loss (expected credit losses during the period) Amortized cost December 31, 2020 Expected credit loss rate Total carrying amount Allowance for loss (expected credit losses during the period) Amortized cost	Not Past Due 0.55% $ 988,834 ( 5,483) $ 983,351 Not Past Due 0.73% $ 971,520 ( 7,055) $ 964,465	1 to 90 Days Past Due 2.36% $ 134,101 ( 3,171) $ 130,930 1 to 90 Days Past Due 3.77% $ 259,620 ( 9,791) $ 249,829	More than 91 Days Past Due		( (	Total
			22.91% $ 69,203 ( 15,856) $ 53,347 More than 91 Days Past Due			$1,192,138 24,510) $1,167,628 Total
	(	(	(	10.92% $ 100,529 10,978) $ 89,551		$1,331,669 27,824) $1,303,845

December 31, 2020

Changes in loss allowances for receivables (accounts receivable and overdue receivables) are as follows:

follows:
Beginning balance Add (Less): (Reversal of) Impairment loss in the current period Less: Write-off in the current year Exchange difference Ending balance	2021 $ 54,151 ( 6,626 ) ( 798 ) ( 335) $ 46,392	2020
		$ 43,967 12,609 ( 3,187 ) 762 $ 54,151

11. Inventories

Inventories
Commodities Office automation products, office supplies, and computer equipment System furniture Raw materials Work in process Goods in Transit	December 31,2021 $ 956,271 491,027 157,000 25,661 24,062 $ 1,654,021	December 31,2020
			$ 821,747 474,945 125,704 24,189 17,064 $ 1,463,649

The costs of goods sold related to inventories for the years ended December 31, 2021 and 2020 were NT$7,373,527 thousand and NT$6,890,604 thousand, respectively. Operating costs, including inventory write-down, for the years ended December 31, 2021 and 2020 were NT$11,401 thousand and NT$14,527 thousand, respectively.

12. Subsidiaries

a. Subsidiaries included in the consolidated financial statements

The entities involved in the preparation of the Consolidated Financial Statements are listed as follows:

Name of Investor	Name of Subsidiary	Place of Establishment	Percentage of	Ownership	Main Business Activities	Functional Currency
			December 31,2021 88.04% 91.13% 55.00% 70.00% 70.00% 26.00% 25.00% 30.00% 100.00%	December 31,2020
The Company General Integration Aurora (Bermuda)	Aurora (Bermuda) Investment Ltd. (Aurora (Bermuda)) Aurora Office Automation Corporation (Aurora Office Automation) General Integration Technology Co., Ltd. (General Integration) KM Developing Solutions Co., Ltd. (KM Developing) Aurora Machinery Equipment (Shanghai) Co., Ltd. (Aurora Machinery Equipment) (Notes 4) Ever Young Biodimension Corporation (Ever Young Biodimension) (Note 1) Ever Young Biodimension (Note 1) Aurora Machinery Equipment (Note 4) Aurora (China) Investment Co., Ltd. (Aurora (China) Investment)	Bermuda Taiwan Taiwan Taiwan Mainland China Taiwan Taiwan Mainland China Mainland China		88.04% 91.13% 55.00% 70.00% 70.00% 26.00% 25.00% 30.00% 100.00%	A holding company. The main operating risks of Aurora (Bermuda) and its subsidiaries are political risks and exchange rate risks arising from government orders and cross-strait movements. Import/export and wholesale of Multi-Functional Photocopiers (MFPs). The main operating risks are exchange rate risks. Manufacturing of molds and machinery and wholesale of precision instruments. The main operating risks are exchange rate risks. Wholesale and retail of information software, computer equipment, and Multi-Functional Photocopiers (MFPs). The main operating risks are exchange rate risks. Wholesale of mechanical and electronic equipment, ICT equipment, and computer hardware and software. The main operating risks are political risks and exchange rate risks arising from government orders and cross-strait movements. Wholesale of precision instruments. The main operating risks are interest risks. Wholesale of precision instruments. The main operating risks are interest risks. Wholesale of mechanical and electronic equipment, ICT equipment, and computer hardware and software. The main operating risks are political risks and exchange rate risks arising from government orders and cross-strait movements. A holding company. The main operating risks of Aurora (Bermuda) and its subsidiaries are political risks and exchange rate risks arising from government orders and cross-strait movements.	RMB NTD NTD NTD RMB NTD NTD RMB RMB

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Name of Investor	Name of Subsidiary	Place of Establishment	Percentage o	f Ownership	Main Business Activities	Functional Currency
			December 31,2021	December 31,2020
Aurora (China) Investment Aurora (China)	Aurora Office Equipment Co., Ltd. (Shanghai) (Aurora Office Equipment) Aurora (China) Co., Ltd. (Aurora (China)) Aurora (Jiang Su) Enterprise Development Co., Ltd. (Aurora (Jiang Su)) (Note 2) Aurora Office Automation Sales Co., Ltd. Shanghai Aurora (Shanghai) Cloud Technology Co., Ltd. (Aurora Cloud) Aurora Home Furniture Co., Ltd. (Aurora Home) Aurora (Shanghai) Electronic Commerce Co., Ltd. (Aurora Electronic Commerce) (Note 3) Aurora (Jiang Su) Enterprise Development Co., Ltd. (Aurora (Jiang Su)) (Note 2)	Mainland China Mainland China Mainland China Mainland China Mainland China Mainland China Mainland China Mainland China	100.00% 100.00% 66.67% 100.00% 70.00% 100.00% 70.00% 33.33%	100.00% 100.00% 100.00% 100.00% 70.00% 100.00% 70.00% -	Manufacturing and sales of Multi Functional Photocopiers (MFPs). The main operating risks of Aurora (Bermuda) and its subsidiaries are political risks and exchange rate risks arising from government orders and cross-strait movements. Manufacture and sales of office furniture.. The main operating risks are political risks and exchange rate risks arising from government orders and cross-strait movements. A holding company and property lease. The main operating risks of Aurora (Bermuda) and its subsidiaries are political risks and exchange rate risks arising from government orders and cross-strait movements. Sales, lease, and agency of Aurora brand products The main operating risks of Aurora (Bermuda) and its subsidiaries are political risks and exchange rate risks arising from government orders and cross-strait movements. Sale and consulting service of printing and office equipment and furniture and consulting service. The main operating risks are political risks and exchange rate risks arising from government orders and cross-strait movements. Manufacturing and sales of furniture. The main operating risks of Aurora (Bermuda) and its subsidiaries are political risks and exchange rate risks arising from government orders and cross-strait movements. E-commerce platform sales. The main operating risks are political risks and exchange rate risks arising from government orders and cross-strait movements. A holding company and property lease. The main operating risks of Aurora (Bermuda) and its subsidiaries are political risks and exchange rate risks arising from government orders and cross-strait movements.	RMB RMB RMB RMB RMB RMB RMB RMB

Note 1. The Company's shareholding in Ever Young Biodimension is 26%, and General Integration holds 25% of Ever Young Biodimension's shares, totaling over 50% of the voting rights of Ever Young Biodimension. As the Group has control over Ever Young Biodimension, it is classified as a subsidiary.
Note 2. In June 2019, Aurora (China) Investment invested RMB200,000 thousand in establishing 100%-owned Aurora (Jiang Su). In December 2021, Aurora (China) Co., Ltd. increased the capital of Aurora (Jiang Su) by RMB100,000 thousand. As of December 2021, the paid-in capital of Aurora (Jiang Su) was RMB300,000.
Note 3. In May 2020, Aurora (China) Co., Ltd. invested RMB3,500 thousand in Aurora (Shanghai) Electronic Commerce Co., Ltd., and the shareholding percentage was 70%.
Note 4. The financial statements of Aurora Machinery Equipment were not audited by the CPAs; however, the management of the Group believed that this fact would not cause any significant difference.

Please refer to Note XXXVI (Tables 6 and 7) for information on the main business premises and countries of registration.

b. Subsidiaries not included in the consolidated financial statements: None.

c. Information on subsidiaries with material non-controlling interests

Information on subsidiaries with material non-controlling interests	Information on subsidiaries with material non-controlling interests	on-controlling interests	on-controlling interests	on-controlling interests	on-controlling interests
Percentage of Shares and Voting Rights Held byNon-controllingInterests Name of Subsidiary December 31,2021 December 31,2020 Aurora (Bermuda) and its subsidiaries 11.96% 11.96% Aurora Office Automation 8.87% 8.87% Profit or Loss Allocated to Non-controllingInterests Non-controllingInterests Name of Subsidiary 2021 2020 December 31, 2021 December 31, 2020 Aurora (Bermuda) and its subsidiaries (excluding non-controlling interests of its subsidiaries) $ 96,878 $ 98,952 $ 1,011,659 $ 982,911 Aurora Office Automation 24,945 24,826 204,353 207,155		Percentage of Shares and Voting Rights Held byNon-controllingInterests
				December 31,2020
Aurora (Bermuda) and its subsidiaries Aurora Office Automation Name of Subsidiary Aurora (Bermuda) and its subsidiaries (excluding non-controlling interests of its subsidiaries) Aurora Office Automation
	2021 $ 96,878 24,945		December 31, 2021 $ 1,011,659 204,353		December 31, 2020
					$ 982,911 207,155

The summarized financial information of the following subsidiaries is prepared according to the amount before the write-off of intercompany transactions:

Aurora (Bermuda) and its subsidiaries

Aurora (Bermuda) and its subsidiaries
Current Assets Non-current assets Current Liabilities Non-current liabilities Equity Equity attributable to: Owners of the Company Non-controlling interests of Aurora (Bermuda) Non-controlling interests of Aurora (Bermuda)'s subsidiaries	December 31,2021 $ 8,911,543 2,221,909 ( 2,370,661 ) ( 297,098) $ 8,465,693 $ 7,447,029 1,011,659 7,005 $ 8,465,693	December 31,2020
		$ 9,221,734 1,831,853 ( 2,497,127 ) ( 333,467) $ 8,222,993 $ 7,235,407 982,911 4,675 $ 8,222,993

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		2021		2020
Operating revenue	$	9,236,222	$	8,637,151
Net income	$	812,383	$	824,635
Other comprehensive income	(	66,253)		140,105
Total comprehensive income	$	746,130	$	964,740
Net Income Attributable to:
Owners of the Company	$	713,142	$	728,405
Non-controlling interests of Aurora
(Bermuda)		96,878		98,952
Non-controlling interests of Aurora
(Bermuda)'s subsidiaries		2,363	(	2,722)
	$	812,383	$	824,635
Total comprehensive income
attributable to:
Owners of the Company	$	654,842	$	851,558
Non-controlling interests of Aurora
(Bermuda)		88,958		115,682
Non-controlling interests of Aurora
(Bermuda)'s subsidiaries		2,330	(	2,500)
	$	746,130	$	964,740
Cash flows from:
Operating activities	$	949,427	$	1,171,701
Investing activities	(	2,824,764 )	(	910,775 )
Financing activities	(	806,070)	(	736,473)
Net cash flows used	($	2,681,407)	($	475,547)
Dividends paid to non-controlling
interests
Aurora (Bermuda)	$	60,210	$	-

Aurora Office Automation

Aurora Office Automation
Current Assets Non-current assets Current Liabilities Non-current liabilities Equity Equity attributable to: Owners of the Company Non-controlling interests of Aurora Office Automation Operating revenue Net income Other comprehensive income Total comprehensive income Net Income Attributable to: Owners of the Company Non-controlling interests of Aurora Office Automation Total comprehensive income attributable to: Owners of the Company Non-controlling interests of Aurora Office Automation Cash flows from: Operating activities Investing activities Financing activities Net cash inflows (outflows) Dividends paid to non-controlling interests Aurora Office Automation	December 31,2021 $ 523,251 2,678,622 ( 318,830 ) ( 579,172) $ 2,303,871 $ 2,099,518 204,353 $ 2,303,871 2021 $ 824,968 $ 281,230 3,201 $ 284,431 $ 256,285 24,945 $ 281,230 $ 259,202 25,229 $ 284,431 $ 142,905 110,996 ( 295,099) ($ 41,198) $ 28,044	December 31,2020
		$ 559,297 2,613,041 ( 412,168 ) ( 424,716) $ 2,335,454 $ 2,128,299 207,155 $ 2,335,454 2020
	( (	(	$ 830,161 $ 279,885 226,340 $ 506,225 $ 255,059 24,826 $ 279,885 $ 461,323 44,902 $ 506,225 $ 196,501 456,537 627,189) $ 25,849 $ 28,044

13. Investments Accounted for Using the Equity Method

a.	Investments in associates Significant associates Listed companies Huxen Corporation Individually insignificant associates Unlisted companies Aurora Development Corp. Huxen (China) Co., Ltd. Aurora Telecom Co., Ltd. Chongqing Gonggangzhihui Additive Manufacturing Technology Research Institute Co., Ltd.	December 31,2021 $ 1,819,165 494,848 653,893 214,064 6,850 $ 3,188,820	December 31,2020	December 31,2020
				$ 1,771,646 496,580 642,007 233,504 13,189 $ 3,156,926

The percentage of ownership, equities, and voting rights of the Group in associates on the balance sheet date are as follows:

balance sheet date are as follows:
Name of Company Huxen Corporation Aurora Development Corp. Huxen (China) Co., Ltd. Aurora Telecom Co., Ltd. Chongqing Gonggangzhihui Additive Manufacturing Technology Research Institute Co., Ltd.	December 31,2021 40.26% 46.67% 30.00% 30.40% 20.00%	December 31,2020
		40.26% 46.67% 30.00% 30.40% 20.00%

Please refer to Note XXXVI (Tables 6 and 7) for the aforementioned associates' nature of business, main business premises, and countries of registration.

The profit or loss and other comprehensive income of investments accounted for using the equity method and the Company’s share in these investments were calculated based on the financial statements audited by the CPAs, except for Aurora Telecom Co., Ltd. However, the management of the Group believed that the unaudited financial statements of Aurora Telecom Co., Ltd. would not lead to significant adjustments.

Fair values (Level 1) of investments in associates with open market quotations are summarized as follows:

summarized as follows:
Name of Company Huxen Corporation	December 31,2021 $ 2,984,665	December 31,2020
			$ 2,996,302

All the aforementioned associates are accounted for using the equity method.

The summary of financial information below is based on individual associates’ financial statements prepared in accordance with the IFRSs for which adjustments have been made in the Consolidated Financial Statements due to the use of the equity method.

Huxen Corporation

Huxen Corporation
Current Assets Non-current assets Current Liabilities Non-current liabilities Equity Percentage of shares held by the Group Interests of the Group Unrealized gains (losses) on transactions with investees Unrealized gains (losses) on transactions between investees Goodwill Investment carrying amount Operating revenue Net income Other comprehensive income Total comprehensive income Dividends received from the associate	December 31,2021 $ 1,252,341 4,958,409 ( 1,284,301 ) ( 700,588) $ 4,225,861 40.26% $ 1,701,332 ( 90,038 ) ( 175,371 ) 383,242 $ 1,819,165 2021 $ 1,415,003 $ 549,456 16,770 $ 566,226 $ 209,450	December 31,2020
		$ 1,232,685 4,880,103 ( 1,213,982 ) ( 718,985) $ 4,179,821 40.26% $ 1,682,796 ( 92,358 ) ( 202,056 ) 383,264 $ 1,771,646 2020
		(	$ 1,409,767 $ 568,211 13,763) $ 554,448 $ 221,086

Information on individually insignificant associates is summarized below:

The Group's share of: Net income Other comprehensive income Total comprehensive income		2021 $ 14,444 2,989) $ 11,455		2020
	(			$ 20,883 21,070 $ 41,953

b. Share of profit or loss and other comprehensive income of associates accounted for using the equity method are as:
1) Share of profit (loss) of associates accounted for using the equity method:

Huxen Corporation Aurora Development Corp. Huxen (China) Co., Ltd. Aurora Telecom Co., Ltd. Chongqing Gonggangzhihui Additive Manufacturing Technology Research Institute Co., Ltd.	2021 Profit or Loss of Investee Investment Profit or Loss Recognized by the Group $ 549,456 $ 221,211 50,149 23,405 55,707 16,712 ( 63,946 ) ( 19,440 ) ( 31,163 ) ( 6,233) $ 235,655	2021 Profit or Loss of Investee Investment Profit or Loss Recognized by the Group $ 549,456 $ 221,211 50,149 23,405 55,707 16,712 ( 63,946 ) ( 19,440 ) ( 31,163 ) ( 6,233) $ 235,655	2020	2020	2020
	Profit or Loss of Investee $ 549,456 50,149 55,707 ( 63,946 ) ( 31,163 )		Profit or Loss of Investee $ 568,211 49,233 75,148 ( 74,310 ) ( 10,240 )	Investment Profit or Loss Recognized by the Group
		( (		( (	$ 228,762 22,977 22,545 22,591 ) 2,048) $ 249,645

2) Share of other comprehensive income of associates accounted for using the equity method:

method:
Huxen Corporation Aurora Development Corp. Huxen (China) Co., Ltd.	2021 Other Comprehensive Income of Investee Other Comprehensive Income Recognized by the Group $ 16,770 $ 6,752 3,935 1,837 ( 16,086 ) ( 4,826) $ 3,763		2020
	Other Comprehensive Income of Investee $ 16,770 3,935 ( 16,086 )		Other Comprehensive Income of Investee ( $ 13,763 ) 22,251 35,618	Other Comprehensive Income Recognized by the Group
		(		(	$ 5,541 ) 10,385 10,685 $ 15,529

14. Property, plant, and equipment

Property, plant, and equipment
For self-use Operating lease	December 31,2021 $ 2,110,708 433,212 $ 2,543,920	December 31,2020
			$ 1,899,174 416,567 $ 2,315,741

a. For self-use

For self-use
Cost Balance as of January 1, 2021 Addition Inventories transferred to property, plant, and equipment Property, plant, and equipment transferred to inventories Disposal and obsolescence Reclassifications Conversion adjustment Balance as of December 31, 2021 Accumulated depreciation Balance as of January 1, 2021 Depreciation expenses Property, plant, and equipment transferred to inventories Disposal and obsolescence Conversion adjustment Balance as of December 31, 2021 Net amount as of December 31, 2021 Cost Balance as of January 1, 2020 Addition Inventories transferred to property, plant, and equipment Property, plant, and equipment transferred to inventories Disposal and obsolescence Reclassifications Conversion adjustment Balance as of December 31, 2020 Accumulated depreciation Balance as of January 1, 2020 Depreciation expenses Property, plant, and equipment transferred to inventories Disposal and obsolescence Conversion adjustment Balance as of December 31, 2020 Net amount as of December 31, 2020		Self-owned Land		Housing and Construction		Machinery	Transportation Equipment			Office Equipment		Construction in Process		Total
		$ 621,068 - - - - - - 621,068 - - - - - - $ 621,068 $ 543,199 77,869 - - - - - 621,068 - - - - - - $ 621,068	( ( ( ( ( (	$ 1,528,719 42,725 - - 4,528 ) 3,093 9,913) 1,560,096 1,047,280 77,842 - 4,528 ) 6,904) 1,113,690 $ 446,406 $ 1,522,958 16,880 - - 37,186 ) 4,564 21,503 1,528,719 997,630 68,700 - 34,329 ) 15,279 1,047,280 $ 481,439	( ( ( ( ( (	$ 665,201 24,879 - - 4,583 ) 8,861 4,534) 689,824 483,467 45,194 - 3,365 ) 3,381) 521,915 $ 167,909 $ 634,078 49,993 - - 28,890 ) - 10,020 665,201 452,016 46,083 - 22,183 ) 7,551 483,467 $ 181,734	( ( ( ( ( (	$ 33,248 710 - - 1,481 ) 781 248) 33,010 28,421 1,122 - 1,335 ) 210) 27,998 $ 5,012 $ 31,818 1,439 - - 553 ) - 544 33,248 27,609 901 - 550 ) 461 28,421 $ 4,827	( ( ( ( ( ( ( ( ( (	$ 546,985 30,731 20,706 9,720 ) 33,284 ) 1,664 2,816) 554,266 382,499 91,511 6,029 ) 32,721 ) 2,208) 433,052 $ 121,214 $ 570,122 68,891 5,655 23,438 ) 80,338 ) - 6,093 546,985 373,331 94,373 16,721 ) 73,436 ) 4,952 382,499 $ 164,486	( ( (	$ 445,620 437,245 - - - 130,676 ) 3,090) 749,099 - - - - - - $ 749,099 $ 14,531 425,990 - - - 4,564 ) 9,663 445,620 - - - - - - $ 445,620	( ( ( ( ( ( ( ( ( ( (	$ 3,840,841 536,290 20,706 9,720 ) 43,876 ) 116,277 ) 20,601) 4,207,363 1,941,667 215,669 6,029 ) 41,949 ) 12,703) 2,096,655 $ 2,110,708 $ 3,316,706 641,062 5,655 23,438 ) 146,967 ) - 47,823 3,840,841 1,850,586 210,057 16,721 ) 130,498 ) 28,243 1,941,667 $ 1,899,174

No indication of impairment was identified in 2021 and 2020.

Depreciation expenses are calculated on a straight-line basis according to the following durable years:

durable years:
Housing and Construction
Warehouses	20 years
Plants and buildings	20~55 years
Mechanical and electrical engineering	25~30 years
Housing improvements	10~34 years
Machinery
Monitoring instruments and water softeners	2~15 years
Air compressors	3~16 years
Transportation Equipment	4~5 years
Office Equipment	1~15 year(s)

For the amount of property, plant, and equipment pledged as collateral, please refer to Note XXXII.

b. Operating leases - office equipment

XXXII. Operating leases - office equipment
Cost Beginning balance Inventories transferred to property, plant, and equipment Property, plant, and equipment transferred to inventories Disposal and obsolescence Effect of exchange rate changes Ending balance Accumulated depreciation Beginning balance Depreciation expenses Property, plant, and equipment transferred to inventories Disposal and obsolescence Effect of exchange rate changes Ending balance Ending net amount	From January 1, 2021 to December 31,2021 $ 1,231,633 247,726 ( 74,820 ) ( 96,207 ) ( 32) 1,308,300 815,066 217,974 ( 62,278 ) ( 95,644 ) ( 30) 875,088 $ 433,212	From January 1, 2020 to December 31,2020
		$ 1,303,913 177,200 ( 126,665 ) ( 122,660 ) ( 155) 1,231,633 830,357 215,873 ( 109,184 ) ( 121,839 ) ( 141) 815,066 $ 416,567

For the Group's MFPs through operating leases, the lease period is 1 to 6 year(s). Lessees do not have preferential rights to acquire the MFPs at the expiration of the lease period.

The total lease payments (excluding revenue from printing services) to be received in the future for operating leases are as follows:

future for operating leases are as follows:
Year 1 Year 2 Year 3 Year 4 Year 5 Over 5 years	December 31,2021 $ 119,490 43,510 16,486 6,956 2,742 357 $ 189,541	December 31,2020
			$ 118,426 41,963 20,926 8,301 2,534 9 $ 192,159

Depreciation expenses are calculated on a straight-line basis according to the following durable years:

Leased assets (MFPs) Used MFPs 1~2 year(s) New MFPs 3~5 years

15. Lease Agreements

a. Right-of-use assets

	2021
Land and Buildings $ 1,126,086 490,220 ( 371,951 ) ( 6,319) 1,238,036 512,759 385,429 ( 317,361 ) ( 3,016) 577,811 $ 660,225	Transportation Equipment $ 43,167 9,964 ( 7,029 ) - 46,102 15,257 16,000 ( 6,551 ) - 24,706 $ 21,396 2020	Total
		$ 1,169,253 500,184 ( 378,980 ) ( 6,319) 1,284,138 528,016 401,429 ( 323,912 ) ( 3,016) 602,517 $ 681,621
	Transportation Equipment $ 26,471 25,517 ( 8,821 ) - 43,167 8,414 14,985 ( 8,142 ) - 15,257 $ 27,910		Total
		$ 976,652 438,466 ( 260,515 ) 14,650 1,169,253 274,363 411,665 ( 165,831 ) 7,819 528,016 $ 641,237

b. Lease liabilities

Lease liabilities
Carrying amount of lease liabilities Current Non-current	December 31,2021 $ 237,755 $ 332,112	December 31,2020
			$ 310,468 $ 346,260

Ranges of discount rates for lease liabilities are as follows:

Ranges of discount rates for lease liabilities	are as follows:
Land and Buildings Transportation Equipment	December 31,2021 0.747%~5.005% 0.747%~0.862%	December 31,2020
		0.783%~5.655% 0.783%~0.862%

c. Major lease activities and terms

The Group leases land, buildings, and transportation equipment for operations, and the lease term is between 1 to 23 year(s). When the lease term ends, the Group has no preferential rights to purchase the leased vehicles and business premises.

In May 2020, Aurora (Jiang Su), a subsidiary of the Group, acquired the land use right of Nantong City, Jiangsu Province for the construction of the plant. The term of use of the land is 50 years from May 2020 to May 2070 as stipulated in the contract.

d. Other lease information

For agreements on operating leases for the leasing out of property, plant, and equipment and investment property, please refer to Notes XIV and XVI.

		2021		2020
Short-term lease expenses	($	4,324)	($	3,635)
Total cash flows on lease
- Repayment of lease liabilities	( $	398,767 )	( $	405,237 )
- Interest expenses paid	(	14,512)	(	18,993)
	($	413,279)	($	424,230)

The Group selects to apply the recognition exemptions to leases of parking spaces that qualify as short-term leases and cloud service platforms that qualify as leases of low-value assets. Consequently, the Group does not recognize any right-of-use assets or lease liabilities for the said leases.

16. Investment property

Investment property
Cost Beginning balance Disposal and obsolescence Ending balance Accumulated depreciation Beginning balance Depreciation expenses Disposal and obsolescence Ending balance Accumulated impairment Beginning balance Reclassification Ending balance Ending net amount		2021		Total $ 541,962 8,249) 533,713 88,657 4,918 3,274) 90,301 $ 2,435 2,435) - $ 443,412			2020
		Land Housing and Construction $ 368,549 $ 173,413 1,109) ( 7,140) 367,440 166,273 - 88,657 - 4,918 - ( 3,274) - 90,301 $ - $ 2,435 - ( 2,435) - - $ 367,440 $ 75,972				Land $ 369,363 814) 368,549 - - - - $ - - - $ 368,549	Housing and Construction $ 185,532 ( 12,119) ( 173,413 86,549 5,361 ( 3,253) ( 88,657 $ 2,435 - 2,435 $ 82,321	Total
	(		( ( (		(		( (	$ 554,895 12,933) 541,962 86,549 5,361 3,253) 88,657 $ 2,435 - 2,435 $ 450,870

The investment property is subject to a lease term of 2 to 5 years. Lessees have no preferential right to purchase the investment property at the end of the lease term.

The total amount of lease payments to be collected in the future for investment property on operating lease is as follows:

operating lease is as follows:
Year 1 Year 2 Year 3 Year 4 Year 5	December 31,2021 $ 19,652 16,465 13,608 13,608 4,536 $ 67,869	December 31,2020 $ 45,314 6,044 3,333 - - $ 54,691
			$ 45,314 6,044 3,333 - - $ 54,691

Lease commitments for lease periods beginning after the balance sheet date are as follows:

December 31, 2021 December 31, 2020 Lease commitments for investment properties $ 8,160 $ -

Depreciation expenses are calculated on a straight-line basis according to the following durable years:

Main buildings 30~55 years Decoration 5~10 years

For the amount of investment property pledged as collateral, please refer to Note XXXII.

The fair value of the investment property was assessed by the management with reference to the prevailing market information as follows:

December 31, 2021 December 31, 2020 Fair value $ 590,357 $ 611,079

17. Intangible assets

a. Goodwill

December 31, 2021 December 31, 2020 Carrying amount Goodwill $ 132,874 $ 132,801

No indication of impairment was identified in 2021 and 2020.

b. Other intangible assets

Cost Beginning balance Addition Disposal and obsolescence Reclassifications Conversion adjustment Ending balance Accumulated amortization Beginning balance Amortization expenses Disposal and obsolescence Conversion adjustment Ending balance Ending net amount			2021			2020
		Trademark right	Computer Software	Total	Trademark right	Computer Software	Total
		$ 808 - - - - 808 788 20 - - 808 $ -	$ 101,351 37,807 ( 4,824 ) 1,863 ( 552) 135,645 57,163 21,423 ( 4,824 ) ( 331) 73,431 $ 62,214	$ 102,159 37,807 ( 4,824 ) 1,863 ( 552) 136,453 57,951 21,443 ( 4,824 ) ( 331) 74,239 $ 62,214	$ 2,531 - ( 1,723 ) - - 808 2,470 41 ( 1,723 ) - 788 $ 20	$ 96,279 24,657 ( 20,933 ) - 1,348 101,351 60,414 16,899 ( 20,933 ) 783 57,163 $ 44,188	$ 98,810 24,657 ( 22,656 ) - 1,348 102,159 62,884 16,940 ( 22,656 ) 783 57,951 $ 44,208

No indication of impairment was identified in 2021 and 2020.

Amortization expenses are calculated on a straight-line basis over the following useful lives:

Trademark right 20 years Computer Software 1~10 year(s)

18. Other Assets

Prepayments for goods Prepayments for premises Other prepayments Prepayments for equipment Others Current Non-current Loans a. Short-term loans Credit loans Loans for material purchase Credit loans: NTD Loans for material purchase: USD	December 31,2021 $ 227,439 67,584 45,709 3,240 11,086 $ 355,058 $ 279,688 75,370 $ 355,058 December 31,2021 $ 3,235,000 121,812 $ 3,356,812 0.66%~1.10% 0.64%~0.89%	December 31,2020
		$ 232,290 - 41,937 10,741 11,585 $ 296,553 $ 281,074 15,479 $ 296,553 December 31,2020
		$ 2,557,000 64,620 $ 2,621,620 0.69%~1.28% 0.72%~0.81%

19. Loans

1) Please refer to Note XXXII for assets pledged as collateral for the above-mentioned loans.
2) Please refer to Note XXXIII (II) for guaranteed notes issued to financial institutions.
b. Short-term notes and bills payable

The outstanding short-term bills payable as of the balance sheet date are as follows:

December 31, 2020

December 31, 2020
Guarantor/Accepting Institution Commercial paper payable Taishin International Bank KGI Bank	Nominal Amount		Discounted Amount		Carrying amount	Interest Rate	Collateral
	$ 300,000 20,000 $ 320,000	( ( (	$ 345 ) 4) $ 349)		$ 299,655 19,996 $ 319,651	0.750% 0.918%	None None

c. Long-term loans

Long-term loans
Secured loans Bank loans (1) Unsecured loans Bank loans (2)	December 31,2021 $ 250,000 880,000 $ 1,130,000	December 31,2020
			$ 820,000 520,000 $ 1,340,000

1) Loans are secured by pledge of land and buildings held by the Group (see Note XXXII), with interest accruing at floating rates and the remaining maturity period of not more than 2 years as of December 31, 2021 and 2020. The rate ranges were 0.71% and 0.71%~1.00% per annum, respectively. Interest is paid on a monthly basis, and the principal is paid at maturity for subsequent borrowing.
2) Unsecured loans are bank loans at floating rates. As of December 31, 2021 and 2020, the rate ranges were 0.71%~0.83% and 0.81%~1.00% per annum, respectively. Interest is paid on a monthly basis, and the principal is paid at maturity for subsequent borrowing.

20. Accounts payable

The payment period averages 2 months. The Group has financial risk management policies to ensure that all payables are paid within the pre-agreed credit terms.

21. Other Liabilities

a. Other payables

Salaries and bonuses payable Incentives payable Business taxes payable Advertising fees payable Related parties Holiday benefits payable Others	December 31,2021 $ 561,630 212,435 116,136 69,088 65,242 9,694 214,208 $ 1,248,433	December 31,2020	December 31,2020
			$ 531,573 163,286 135,667 109,140 65,034 9,795 206,897 $ 1,221,392

Other payables - related parties are monthly payments of rental collected from lessees by the Group on behalf of related parties.

b. Other current liabilities

the Group on behalf of related parties. Other current liabilities
Temporary credits Receipts under custody	December 31,2021 $ 86,561 8,199 $ 94,760	December 31,2020
			$ 85,529 6,182 $ 91,711

22. Post-retirement Benefit Plan

a. Defined contribution plans

The Company and Aurora Office Automation, General Integration, KM Developing, and Ever Young Biodimension adopt a pension plan under the Labor Pension Act, which is a state-managed defined contribution plan. According to the Labor Pension Act, the Group makes monthly contributions to employees' individual pension accounts at 6% of their monthly salaries.

Aurora (Bermuda), General Integration (Guangzhou), and Aurora Machinery Equipment did not draw up a retirement policy. Aurora (Bermuda)'s subsidiaries, including Aurora (China) Investment, Aurora Office Equipment, Aurora (China), Aurora (Jiang Su), Aurora Office Automation Sales Co., Ltd., Aurora Cloud, Aurora Home Furniture Co., Ltd., and Aurora (Shanghai) Electronic Commerce Co., Ltd. have drawn up the retirement policies in accordance with the regulations of the Shanghai Municipal People's Government, which also fell into the defined contribution plans; that is, a certain percentage of the employees’ basic wages would be contributed to the pension fund and deposited into the designated pension fund accounts. The above companies contributed a certain percentage of employees' basic wages to the pension fund.

b. Defined benefit plans

The pension system adopted by the Company, Aurora Office Automation, and General Integration under the "Labor Standards Act" is a state-managed defined benefit plan. The payment of the employee's pension is based on the period of service and the average salary of 6 months before the approved retirement date. The Company, Aurora Office Automation, and General Integration allocate 2%, 10%, and 2% of employees' monthly salaries respectively to the Supervisory Committee of Labor Retirement Reserve's dedicated account in the Bank of Taiwan as pension reserve funds. The Bureau of Labor Funds, Ministry of Labor administers the account. The Company, Aurora Office Automation, and General Integration have no right over its investment and administration strategies.

The amounts of defined benefit plans included in the consolidated balance sheets are as follows:

follows:
Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities	December 31,2021 $ 546,764 ( 59,345) $ 487,419	December 31,2020
	(	(	$ 533,948 52,495) $ 481,453

Changes in net defined benefit liabilities (assets) are as follows:

January 1, 2021 Service costs Service costs for the current period Service costs for the previous period Interest expenses (income) Recognized in profit or loss Remeasurements Return on plan assets (excluding interest income calculated by a discount rate) Actuarial losses - changes in demographic assumptions Actuarial losses - changes in financial assumptions Actuarial losses - experience adjustments Recognized in other comprehensive income Contribution by the employer Benefits paid on plan assets December 31, 2021 January 1, 2020 Service costs Service costs for the current period Service costs for the previous period Interest expenses (income) Recognized in profit or loss Remeasurements Return on plan assets (excluding interest income calculated by a discount rate) Actuarial losses - changes in demographic assumptions Actuarial losses - changes in financial assumptions Actuarial losses - experience adjustments Recognized in other comprehensive income Contribution by the employer Benefits paid on plan assets December 31, 2020	Present value of defined benefit obligation $ 533,948 967 2,321 2,690 5,978 - 14,091 ( $ 6,545 ) 19,993 27,539 - ( 20,701) $ 546,764 $ 522,114 1,329 4,501 4,029 9,859 - 4,777 13,369 11,046 29,192 - ( 27,217) $ 533,948	Fair value of plan assets ($ 52,495) - - ( 367) ( 367) ( 519 ) - $ - - ( 519) ( 26,665 ) 20,701 ($ 59,345) ($ 36,501) - - ( 491) ( 491) ( 1,106 ) - - - ( 1,106) ( 41,614 ) 27,217 ($ 52,495)	Net defined benefit liabilities (assets)	Net defined benefit liabilities (assets)
	( ( (	( ( ( ( ( ( ( ( ( ( ( ( ( (	( ( ( ( (	$ 481,453 967 2,321 2,323 5,611 519 ) 14,091 $ 6,545 ) 19,993 27,020 26,665 ) - $ 487,419 $ 485,613 1,329 4,501 3,538 9,368 1,106 ) 4,777 13,369 11,046 28,086 41,614 ) - $ 481,453

The Group has the following risks owing to the implementation of the pension system under the Labor Standards Act:

1) Investment risks: The Bureau of Labor Funds, Ministry of Labor invests the labor pension fund in equity securities, debt securities, and bank deposits in domestic (foreign) banks through independent implementation and commissioned operations. However, the distributed amount from the plan assets received by the Group shall not be lower than interest on a two-year time deposit at a local bank.
2) Interest rate risk: The decrease in the interest rate of government bonds/corporate bonds will increase the present value of defined benefit obligations, but the yield on debt investment of plan assets will also increase accordingly, which will partially offset the impact on net defined benefit liabilities.
3) Salary risk: The present value of defined benefit obligations is calculated with reference to future salaries of plan members. Therefore, the salary increase of plan members will increase the present value of the defined benefit obligation.

The present value of the Group's defined benefit obligations is calculated by certified actuaries and the major assumptions on the assessment date are as follows:

Discount rate Average long-term salary adjustment rate	December 31,2021 0.625% 2.000%	December 31,2020
		0.500% 2.000%

If changes occur in major actuarial assumptions with other assumptions unchanged, the present value of defined benefit obligations will increase (decrease) as follows:

Discount rate Increase by 0.25% Decrease by 0.25% Expected salary increase rate Increase by 0.25% Decrease by 0.25%	December 31,2021 ($ 13,041) $ 13,503 $ 13,083 ($ 12,702)	December 31,2020	December 31,2020
	( (	( (	$ 13,481) $ 13,980 $ 13,528 $ 13,115)

As actuarial assumptions may be related to one another, the likelihood of fluctuation in a single assumption is not high. Therefore, the aforementioned sensitivity analysis may not reflect the actual fluctuations of the present value of defined benefit obligations.

Expected amount of contribution within 1 year Average duration of defined benefit obligations	December 31,2021 $ 27,375 9.7-10.5`年`	December 31,2020
		$ 27,251 10.2-11.5`年`

23. Equity

a. Capital stock

Common stock

ity Capital stock Common stock
Number of shares authorized (in thousands) Share capital authorized Number of shares issued and fully paid (in thousands) Share capital issued	December 31,2021 500,000 $ 5,000,000 236,202 $ 2,362,025	December 31,2020
			500,000 $ 5,000,000 236,202 $ 2,362,025

b. Capital surplus

Capital surplus
May be used to offset deficits, appropriated as cash dividends or transferred to capital(1) Premium on conversion of corporate bonds Treasury share transactions Donations Disposal of the Company's shares by subsidiaries recognized as treasury share transactions May only be used to offset deficits Recognized value of changes in equity of ownership of subsidiaries (2) Dividends that are not collected before the designated date Cash dividends received from the Company for shares of the Company held by subsidiaries May not be used for any purpose Employees stock option	December 31,2021 $ 931,641 3,333 938 54,838 7,913 7,948 892,411 40,247 $ 1,939,269	December 31,2020
			$ 1,002,501 3,333 938 54,838 7,913 7,948 824,081 40,247 $ 1,941,799

1) This type of capital surplus may be used to cover loss or issue cash or replenish capital when there is no loss, but capital replenishment is restricted to the ratio of actual capital stock each year.

2) This type of capital surplus recognized as equity transaction effect due to changes in subsidiary equity, when the Company's has not acquired or disposed of subsidiary shares, or as adjustment value of capital surplus from subsidiary recognized by the Company using the equity method.
c. Retained earnings and dividend policy

If the Company has a net profit for the current year, it shall first use the profit to pay income taxes and make up for any accumulated losses, and then set aside 10% as a legal capital reserve. Any excessive balance may be reserved or transferred to be a special reserve pursuant to relevant laws. Any remaining balance in retained earnings may be appropriated for dividends in accordance with a proposal for appropriation of earnings as approved by the Board of Directors and submit it to the shareholders' meeting for distribution of shareholder dividends. Please refer to Note XXV (VI) for the employee compensation policy.

The legal reserve may be used to make up for losses. When the Company has no loss, the portion of the legal reserve exceeding 25% of the total paid-in capital may be appropriated in the form of cash, in addition to being transferred to share capital.

The Company appropriates or reserves special reserve in accordance with the Official Letter No. 1090150022 issued by the FSC and the directive titled "Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs."

As the industry into which the Company falls is currently in a stage of steady growth, demand for capital has lowered. In the future, operating results will be returned to shareholders as many as possible. In consideration of business development, financial conditions, capital expansion, and shareholders' equity, the Company will distribute dividends in a combination of stock and cash, where cash dividends will account for more than 10% of the dividends distributed for the year.

The shareholders' meetings which approved the distribution of earnings for years ended December 31, 2020 and 2019 were held on July 15, 2021 and June 10, 2020, respectively; the distributions of earnings are as follows:

Legal reserve Cash dividends	Distribution	of Earnings 2019 $ 134,244 1,369,975	Dividends Per Share (NT$)	Dividends Per Share (NT$)
	2020 $ 148,431 1,346,355		2020 $ 5.70	2019
				$ 5.80

In addition, the 2021 and 2020 Annual Shareholders' Meeting approved the distribution of cash dividends (NT$0.3 and NT$0.2 per share) from capital surplus - stock issuance premium of NT$70,860 thousand and NT$47,241 thousand, respectively.

On March 16, 2022, the Board of Directors proposed the distribution of earnings for the year ended December 31, 2021 as follows:

year ended December 31, 2021 as follows:
Legal reserve Cash dividends	Distribution of Earnings $ 137,065 1,228,253	Dividends Per Share(NT$)
		$ 5.20

In addition, the Board of Directors meeting, held on March 16, 2022, proposed distributing cash dividends (NT$0.8 per share) from capital surplus - stock issuance premium of NT$188,962 thousand.

The distribution of earnings for the year ended December 31, 2021 is subject to the resolution in the shareholders' meeting on June 9, 2022.

d. Special reserve arising from first-time application of IFRSs

Special reserve	December 31,2021 $ 331,624	December 31,2020	December 31,2020
			$ 331,624

The amount recorded as cumulative translation adjustments transferred to retained earnings was NT$452,517 thousand. As the increase in retained earnings arising from first-time application of IFRSs was insufficient, special reserve was only set aside for the increase in retained earnings arising from application, NT$331,624 thousand.

Where relevant assets are subsequently used, disposed of or reclassified, the original proportion of special reserve may be reversed for the distribution of earnings. Special reserve that should be set aside upon first-time application of IFRSs may be used to make up losses in subsequent years. Special reserve should be set aside for the deficit until there is a profit in subsequent years and the reasons for the provision of special reserve are resolved.

e. Other equity items

resolved. Other equity items
Exchange differences on translation of financial statements of foreign operations Attributable to the Group Associates accounted for using the equity method Unrealized gains (losses) on financial assets at fair value through other comprehensive income Associates accounted for using the equity method	December 31,2021 ( $ 625,877 ) ( 56,298) (682,175) 655,933 ($ 26,242)	December 31,2020
		( $ 562,792 ) ( 51,841) (614,633) 643,330 $ 28,697

1) Exchange differences on translation of financial statements of foreign operations

Exchange differences on translation of foreign operations' net assets denominated in functional currencies into the Group's presentation currency (NTD) are directly recognized in other comprehensive income as exchange differences on translation of financial statements of foreign operations. The cumulative exchange differences on translation of financial statements of foreign operations are reclassified to profit or loss upon disposal of foreign operations.

		2021	2020
Beginning balance	($	614,633)	($ 758,072)
Incurred this year
Exchange differences on
translation of foreign
operations	(	63,085 )	133,572
Share of associates accounted for
using the equity method	(	4,457)	9,867
Other comprehensive income	(	67,542)	143,439
Ending balance	($	682,175)	($ 614,633)

2) Unrealized gains (losses) on financial assets at fair value through other comprehensive income

income
Beginning balance Incurred this year Unrealized gains (losses) Equity instruments Share of associates accounted for using the equity method Other comprehensive income Accumulated gains (losses) on disposal of equity instruments transferred to retained earnings (Note) Ending balance		2021 $ 643,330 - 12,603 12,603 - $ 655,933		2020
			( (	$ 505,137 211,553 3,969) 207,584 69,391) $ 643,330

Note: The Group adjusted its investment position in 2020 to diversify risks, and sold part of the common shares of TSEC Corporation at a fair value in the amount of NT$339,967 thousand, while the remaining equity—the unrealized profit and loss of financial assets measured at fair value through other comprehensive income in the amount of NT$62,168 thousand are transferred to retained earnings.

f. Treasury shares

to retained earnings. Treasury shares
Shares of the Company held by subsidiaries	December31,2021 $ 791,826	December31,2020
			$ 791,826

1) Information on subsidiaries holding the Company's shares on the balance sheet date is as follows:

as follows:
Aurora Office Automation Corporation Aurora Office Automation Corporation			December 31,2021
	The Company's Shareholding (%) 91.13	Number of Shares (in Thousands) 12,496	Amount of TreasuryShares Current Market Value $ 791,826 $ 1,122,212 December 31,2020		Reason
					To maintain credit and shareholders' equity
	The Company's Shareholding (%) 91.13	Number of Shares (in Thousands) 12,496	Amount of TreasuryShares $ 791,826	Current Market Value $ 1,110,965	Reason
					To maintain credit and shareholders' equity

2) Treasury shares held by the Company may be neither pledged nor assigned rights such as dividend appropriation and voting rights in accordance with the Securities and Exchange Act. Subsidiaries holding the Company's shares, which are considered treasury shares, are bestowed shareholders’ rights, except for the rights to participate in any share issuance for cash and to vote.

24. Revenue

a. Breakdown of revenue from contracts with customers

		2021	2020
	Product category
	MFPs	$ 8,149,571	$ 8,345,118
	System furniture	5,358,568	4,529,672
	Others	69,118	76,184
		$ 13,577,257	$ 12,950,974
	Region
	Asia	$ 12,300,090	$ 11,468,330
	America	1,229,886	1,439,649
	Europe	46,646	39,484
	Others	635	3,511
		$ 13,577,257	$ 12,950,974
b.	Contract balance
		December 31,2021	January1,2020
	Contract assets	$ 83,476	$ 19,590
	Contract liabilities	$ 463,585	$ 467,117

Changes in contract assets and liabilities are mainly due to timing difference between performance obligations and customer payment.

The Group adopts the simplified approach as stipulated in IFRS 9 and recognizes loss allowances for contract assets based on the lifetime expected credit losses. For the lifetime expected credit losses, taking into account the customers' past default history and current financial position, there were no past due contract assets as of December 31, 2021 and 2020, and the Group assessed that no provision for expected credit losses is required.

The amounts of contract liabilities at the beginning of the period and previously fulfilled that were recognized in revenue for the years ended December 31, 2021 and 2020 were NT$447,869 thousand and NT$442,476 thousand, respectively.

25. Net Income

a. Other income

Income Other income
Income from consultancy Subsidy income Rental income Other income		2021 $ 56,612 42,152 22,853 35,086 $ 156,703		2020
				$ 56,331 21,976 31,293 17,487 $ 127,087

Income from consultancy represents the fees received by the Group from related parties for rendering consulting services.

b. Other gains and losses

Gains on financial assets Financial assets mandatorily measured at fair value through profit or loss Gain on disposal of investment property Gains on lease modifications Loss on disposal of property, plant, and equipment Net foreign exchange losses Others	2021 $ 71,093 13,124 880 ( 753 ) ( 8,592 ) ( 17,112) $ 58,640	2020
		$ 156,023 8,653 204 ( 5,184 ) ( 20,592 ) ( 14,250) $ 124,854

c. Finance costs

c.	Finance costs
			2021		2020
	Bank overdrafts and interest on bank
	loans	$	30,830	$	38,444
	Interest expenses - leases		14,512		18,993
	Imputed interest on deposits		43		34
		$	45,385	$	57,471
d.	Depreciation and amortization expenses
			2021		2020
	Property, plant, and equipment	$	433,643	$	425,930
	Right-of-use assets		401,429		411,665
	Investment property		4,918		5,361
	Intangible assets		21,443		16,940
		$	861,433	$	859,896
	Depreciation expenses by function
	Operating costs	$	261,970	$	258,435
	Operating expenses		573,102		579,160
	Non-operating income and expenses		4,918		5,361
		$	839,990	$	842,956
	Amortization expenses by function
	Operating costs	$	1,673	$	1,944
	Operating expenses		19,770		14,996
		$	21,443	$	16,940
e.	Employee benefits
			2021		2020
	Short-term employee benefits	$ 2,500,660		$ 2,350,377
	Benefits after retirement (Note XXII)
	Defined contribution plans		195,384		109,458
	Defined benefit plans		5,611		9,368
		$ 2,701,655		$ 2,469,203
	By function
	Operating costs	$	226,117	$	291,301
	Operating expenses	2,475,538		2,177,902
		$ 2,701,655		$ 2,469,203

f. Employee compensation

The Company sets aside 1%~10% of income before tax for a year as employee compensation. Employee compensation for the years ended December 31, 2021 and 2020 was resolved by the Board of directors on March 16, 2022 and March 16, 2021:

Estimated percentage

Estimated percentage
Employee compensation Amount Employee compensation	2021 1% 2021 $ 16,370	2020
		1% 2020
		$ 16,750

If there is still any change in the amount after the annual consolidated financial statements are authorized for issue, the differences shall be treated as a change in accounting estimates in the following year.

The amounts of employee compensation distributed for the years ended December 31, 2020 and 2019 and those recognized in the consolidated financial statements are consistent.

Information on employee compensation resolved by the Board of Directors is available on the "Market Observation Post System" of the Taiwan Stock Exchange Corporation.

26. Income Tax

a. Income tax recognized in profit or loss

Major components of income tax expenses (benefits) are as follows:

Current income tax Accrued this year Adjustments from previous years Deferred income tax Accrued this year Income tax expense recognized in profit or loss		2021 $ 439,656 14,852 454,508 39,660 $ 494,168		2020
			(	$ 360,940 9,415) 351,525 115,168 $ 466,693

Reconciliation between accounting income and current income tax expenses is as follows:

		2021		2020
Net income before tax		$ 2,020,399		$ 2,025,428
Income tax expenses calculated at the
statutory rate ( 20%)		$ 404,080		$ 405,085
Unrecognized deductible temporary
difference		115,860		94,579
Effects of different tax rates of
subsidiaries in other jurisdictions		51,815		52,562
Fees that cannot be deducted from
taxes		7,557		21,612
Deferred tax of subsidiary earnings	(	5,338 )	(	14,532 )
Tax-exempted income	(	96,129 )	(	88,297 )
Land value increment tax		555		273
Unrecognized loss carryforwards		1,756		6,089
Others	(	840 )	(	1,263 )
Adjustments of current income tax
expenses in previous years		14,852	(	9,415)
Income tax expense recognized in
profit or loss		$ 494,168		$ 466,693

The tax rate applicable to subsidiaries in mainland China is 15%~25%. Tax arising from other jurisdictions is calculated at the rates applicable in the respective jurisdictions.

b. Income tax recognized in other comprehensive income

		2021		2020
Deferred income tax
Accrued this year - remeasurements
of defined benefit plans	$	5,404	$	5,617
Current income tax assets and liabilities
	December 31,2021		December 31,2020
Current income tax assets
Tax refunds receivable	$	48,537	$	49,332
Current income tax liabilities
Income tax payable	$	247,253	$	194,294

c. Current income tax assets and liabilities

d. Deferred income tax assets and liabilities

Changes in deferred income tax assets and liabilities are as follows: 2021

2021
Deferred income tax assets	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Exchange Differences		Endingbalance
	$ 20,442 9,677 7,910 23,787 2,420 17,356 937 3,269 44,414 48,902 $ 179,114 $ 258,429 31 - $ 258,460 Beginning balance	( $ 398 ) 751 ( 837 ) 2,310 ( 20 ) ( 4,675 ) - - 4,128 - $ 1,259 $ 40,205 105 609 $ 40,919 Recognized in profit or loss	$ - - - - - - - - - 5,404 $ 5,404 $ - - - $ - Recognized in other comprehensive income	$ - ( 64 ) ( 239 ) 62 - - - ( 24 ) ( 358 ) - ($ 623) $ - - - $ - Exchange Differences		$ 20,044 10,364 6,834 26,159 2,400 12,681 937 3,245 48,184 54,306 $ 185,154 $ 298,634 136 609 $ 299,379 Endingbalance
Temporary differences Deferred revenue Unrealized impairment loss of assets Loss allowances Loss on inventory write-down Holiday benefits payable Book-tax difference in pensions Impairment loss Litigation compensations Other financial liabilities Defined benefit plans Deferred income tax liabilities
Temporary differences Share of profit or loss of subsidiaries accounted for using the equity method Unrealized exchange gains Rental stabilization 2020 Deferred income tax assets
	$ 21,196 9,929 6,251 25,141 2,466 24,435 937 3,216 32,820 43,285 $ 169,676 $ 140,885 - $ 140,885	( $ 754 ) ( 400 ) 1,541 ( 1,658 ) ( 46 ) ( 7,079 ) - - 10,803 - $ 2,407 $ 117,544 31 $ 117,575	$ - - - - - - - - - 5,617 $ 5,617 $ - - $ -		$ - 148 118 304 - - - 53 791 - $ 1,414 $ - - $ -		$ 20,442 9,677 7,910 23,787 2,420 17,356 937 3,269 44,414 48,902 $ 179,114 $ 258,429 31 $ 258,460
Temporary differences Deferred revenue Unrealized impairment loss of assets Loss allowances Loss on inventory write-down Holiday benefits payable Book-tax difference in pensions Impairment loss Litigation compensations Other financial liabilities Defined benefit plans Deferred income tax liabilities
Temporary differences Share of profit or loss of subsidiaries accounted for using the equity method Unrealized exchange gains

e. Amount of temporary differences in unrecognized deferred income tax liabilities related to investments

As of December 31, 2021 and 2020, the taxable temporary differences related to investments in subsidiaries and associates not recognized as deferred income tax liabilities were NT$825,160 thousand and NT$807,554 thousand, respectively.

f. Income tax assessment

In the corporate income tax return of the Company and its subsidiaries, the difference assessed by the Tax Authorities has been recognized as income tax expenses. Income tax assessment is as follows:

assessment is as follows:
The Company Aurora Office Automation KM Developing General Integration Ever Young Biodimension	Year of Assessment
	2019 2019 2019 2019 2019

There were no significant differences between the assessed results and the reported results of the Group’s corporate income tax return.

27. Earnings per Share

Net income and weighted average number of common shares used for calculation of earnings per share are as follows:

per share are as follows:
Net income Net income attributable to the Company Number of Shares Weighted average number of common shares used for calculation of basic earnings per share Effect of potentially dilutive common shares: Employee compensation Weighted average number of common shares used for calculation of diluted earnings per share	2021 $ 1,391,539 Unit: 2021 224,814 222 225,036	2020 $ 1,438,309 Thousand shares 2020 224,814 236 225,050

If the Group chooses to offer employee compensation or share profits in the form of cash or stock, while calculating diluted earnings per share, and assuming that the compensation is paid in the form of stock, the dilutive potential common shares will be included in the weighted average number of outstanding shares to calculate diluted earnings per share. The dilutive effect of such potential common shares shall continue to be considered when calculating diluted earnings per share before the number of shares to be distributed as employee compensation is approved in the following year.

28. Non-cash Transactions

The acquisition of property, plant, and equipment by the Group during the years ended December 31, 2021 and 2020 that affected both cash and non-cash items is as follows:

Inventories transferred to property, plant, and equipment Property, plant, and equipment transferred to inventories		2021 $ 268,432 $ 16,233		2020
				$ 182,855 $ 24,198

29. Capital Risk Management

The Group manages capital management under the precondition for sustainable development to ensure that it is able to maximize the benefit for its shareholders by optimizing debt and equity.

The management reviews the capital structure of the Group from time to time in light of the economic environment and business considerations. According to the management's opinions and statutory requirements, the Group balances the overall capital structure through the payment of dividends, issuance of shares, and financing.

30. Financial instruments

a. Information on fair value - financial instruments not measured at fair value

The management of the Group considers that the carrying amounts of financial assets and financial liabilities not measured at fair value are close to their fair value.

b. Information on fair value - financial instruments measured at fair value on a recurring basis
1) Fair value level

December 31, 2021

Financial assets at fair value through profit or loss Fund beneficiary certificates December 31, 2020 Financial assets at fair value through profit or loss Fund beneficiary certificates		Level 1 $ 76,650 Level 1 $ 77,420		Level 2 $ - Level 2 $ -		Level 3 $ - Level 3 $ -		Total
								$ 76,650 Total
								$ 77,420

In 2021 and 2020, there was no transfer between Level 1 and Level 2 fair value measurement.

c. Category of financial instruments

December 31, 2021 December 31, 2020

Financial assets

Measured at fair value through profit or loss Mandatorily measured at fair value through profit or loss $ 76,650 $ 77,420 Measured at amortized cost (Note 1) 8,795,337 9,235,468 Financial liabilities Measured at amortized cost (Note 2) 6,474,737 6,311,964

Note 1. The balance includes cash and cash equivalents, notes receivable and accounts receivable (including related parties), other receivables, financial assets at amortized cost, refundable deposits, and other financial assets at amortized cost.
Note 2. The balance includes short-term loans, short-term bills payable, accounts payable (including related parties), other payables (excluding employee benefits payable and business tax payable), long-term loans, guarantee deposits received, and other financial liabilities at amortized cost.
d. Financial risk management objectives and policies

The main financial instruments of the Group include equity investments, accounts receivable, accounts payable, loans, and lease liabilities. The financial management department of the Group provides services to the business units, including coordinating operations in the domestic and international financial markets and managing financial risks relating to the operations of the Group based on the degree and breadth of risk. Such risks include market risk (including foreign exchange risk, interest rate risk, and other price risk), credit risk, and liquidity risk.

1) Market risk

The main financial risks the Group is exposed to in the business activities are foreign exchange risk, interest rate risk, and other price risk.

Market risk in relation to the Group's financial instruments and its management and measurement approaches remain unchanged.

a) Foreign exchange risk

For the monetary assets and liabilities of the Group denominated in non-functional currencies on the balance sheet date (including those written off in the consolidated financial), please refer to Note XXXV.

Sensitivity analysis

The Group is mainly impacted by the exchange rate fluctuations in USD.

The sensitivity analysis below indicates the amount of decrease/increase in net income before tax arising from foreign exchange losses/gains on net monetary assets and liabilities when the New Taiwan dollar (functional currency) against each foreign currency appreciated by 3% for the years ended December 31, 2021 and 2020. When the New Taiwan dollar depreciated, its impact on net income before tax was the reverse equivalent amount. A sensitivity rate of 3% is used internally when foreign exchange risk is reported to the management. It also represents the management's assessment on the reasonably possible scope of foreign exchange rates.

foreign exchange rates.
Profit or loss	Impact of USD
	2021 $ 2,774	2020
		$ 1,203

The impact of profit or loss was mainly attributable to the demand deposits, accounts payable, and loans for material purchasing denominated in USD that were still outstanding and not hedged in cash flows on the balance sheet date. The Group's sensitivity to the exchange rate of USD increased in the current period due to the increase in the net liability denominated in USD held by the Group.

b) Interest rate risk

The carrying amounts of financial assets and financial liabilities of the Group exposed to interest rate risk on the balance sheet date are as follows:

Fair value interest rate risk - Financial liabilities Cash flow interest rate risk - Financial assets - Financial liabilities	December 31,2021 $ 569,867 7,019,937 1,130,000	December 31,2020
		$ 976,379 7,323,772 1,340,000

Sensitivity analysis

The sensitivity analysis below is prepared based on the risk exposure of non-derivative instruments to the interest rates at balance sheet date. The rate of change adopted is 25 basis points increase/decrease in the interest rate, which also represents the management's assessment on the reasonably possible scope of the interest rate.

If the interest rate increased or decreased by 25 basis points, the Group's net income before tax in 2021 and 2020 would have decreased or increased by NT$14,725 thousand and NT$14,959 thousand, respectively, with all other variables remaining constant. This is mainly attributable to the exposure to the risks of interest rates of the Group's deposits, financial assets at amortized cost, other financial assets, and long-term loans.

c) Other price risk

The Group is exposed to equity price risk through its investments in monetary funds.

Sensitivity analysis

The sensitivity analysis below is carried out based on the exposure to equity price risk on the balance sheet date.

If the monetary fund price increased/decreased by 5%, income before tax in 2021 and 2020 would have increased/decreased by NT$3,833 thousand and NT$3,871 thousand, respectively, due to a change in the fair value of financial assets at fair value through profit or loss.

2) Credit risk

Credit risk refers to risk that causes the financial loss of the Group due to a counterparty's delay in performing contractual obligations. As of the balance sheet date, the Group's largest credit risk exposure from a counterparty's failure to fulfill obligations came from the carrying amount of financial assets recognized in the consolidated balance sheets.

The Group uses publicly obtainable financial information and past transaction records to grade main customers while monitoring its credit risk exposure and credit ratings of the counterparties.

The Group’s credit risk is concentrated on the top 10 customers, accounting for 34% and 29% of the total accounts receivable as of December 31, 2021 and 2020, respectively.

3) Liquidity risk

The Group supports the operations and reduces the impact of fluctuating cash flows by managing and maintaining sufficient cash and cash equivalents. The management of the Group supervises the use of the credit line and ensures compliance with the terms of the loan contracts.

The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to repay.

December 31, 2021

December 31, 2021
Non-derivative financial liabilities Zero-interest-bearing liabilities Lease liabilities Variable-rate instruments Instruments with fixed interest rates	Weighted Average Effective Rate(%)	Payment on Sight or within 1 Month		1~3 Month(s)		3~12 Months			1~5 Year(s)	Over 5 Years
	0.75% 0.70%		$ 806,886 24,794 - 1,743,845 $ 2,575,525		$ 768,709 48,895 - 1,528,967 $ 2,346,571		$ 332,483 147,317 - 84,000 $ 563,800		$ 77,406 236,229 1,130,000 - $ 1,443,635		$ 2,441 120,265 - - $ 122,706

December 31, 2020

December 31, 2020
Non-derivative financial liabilities Zero-interest-bearing liabilities Lease liabilities Variable-rate instruments Instruments with fixed interest rates	Weighted Average Effective Rate(%)	Payment on Sight or within 1 Month		1~3 Month(s)		3~12 Months			1~5 Year(s)	Over 5 Years
	0.91% 0.75%		$ 479,378 33,370 - 2,300,961 $ 2,813,709		$ 1,097,159 62,104 - 615,651 $ 1,774,914		$ 374,918 239,280 - 24,659 $ 638,857		$ 72,120 218,309 1,340,000 - $ 1,630,429		$ 7,118 126,795 - - $ 133,913

Line of credit Unsecured banking facilities - Amount utilized - Amount not utilized Secured banking facilities - Amount utilized - Amount not utilized	December 31,2021 $ 4,375,442 5,394,158 $ 9,769,600 $ 250,000 1,170,000 $ 1,420,000	December 31,2020 $ 3,533,881 5,335,665 $ 8,869,546 $ 820,000 600,000 $ 1,420,000	December 31,2020 $ 3,533,881 5,335,665 $ 8,869,546 $ 820,000 600,000 $ 1,420,000
			$ 3,533,881 5,335,665 $ 8,869,546 $ 820,000 600,000 $ 1,420,000

31. Related Party Transactions

All transactions between the Company and its subsidiaries (related parties of the Company), account balances, income, and expenses are eliminated upon consolidation and therefore are not shown in the note. In addition to those disclosed in other notes, the transactions between the Group and other related parties are as follows.

a. Names and relations of related parties

Related Party Relationship with the Group Aurora Holdings Incorporated (Aurora Holdings) Investor of significant influence Aurora Telecom Co., Ltd. (Aurora Telecom) Associate Huxen Corporation (Huxen) Associate Aurora Development Corp. (Aurora Development) Associate Huxen (China) Co., Ltd. (Huxen (China)) Associate Aurora Leasing Corporation (Aurora Leasing) Other related party Aurora Holdings (Shanghai) Inc. (Aurora Holdings Other related party (Shanghai))

(Continued on the next page)

(Continued from previous page)

Related Party

Relationship with the Group

Shanghai Jiading New Partnership Rural Community Cooperative (formerly Shanghai Jianbang Asset Management Co., Ltd.)(Shanghai Jiading)

Aurora Museum

Aurora Building Management (Shanghai) Co., Ltd. (Aurora Building Management)

Y. T. Chen Sustainable Management Foundation (formerly Aurora Sustainable Management Foundation)(Y. T. Chen Foundation)

Aurora Interior Design Co., Ltd. (Aurora Interior Design)

Other related party

Other related party Other related party Other related party

Other related party

b. Operating revenue

Operating revenue
Type/Name of Related Party Huxen (China) Other related party Associate Investor of significant influence		2021 $ 1,578,776 572,070 23,334 338 $ 2,174,518		2020
				$ 1,755,455 584,102 21,104 245 $ 2,360,906

Sales by the Group to related parties are made based on the market price, with payments collected within 1~4 month(s).

c. Purchase of goods

collected within 1~4 month(s). Purchase of goods
Type/Name of Related Party Associate Other related party		2021 $ 77,531 52,797 $ 130,328		2020
				$ 280,378 66,259 $ 346,637

Purchases from related parties are made by the Group based on the market price, with payments made in cash within 1~3 month(s).

d. Other income

Other income
Type/Name of Related Party Huxen (China) Huxen Aurora Leasing Other related party Associate		2021 $ 32,878 32,363 31,615 904 475 $ 98,235		2020
				$ - 32,326 32,205 12 574 $ 65,117

Other income mainly represents income from consulting services rendered to related parties by the Group.

e. Operating expenses

parties by the Group. Operating expenses
Other related party Associate Investor of significant influence		2021 $ 40,526 6,933 2,975 $ 50,434		2020
				$ 37,218 5,504 3,901 $ 46,623

Operating expenses represent expenses paid to related parties for advertising and marketing.

f.

(VI) Receivables from related parties

Accounting Subject Type/Name of Related

Accounting Subject	Type/Name of Related
Accounts receivable Other receivables	Party Aurora Leasing Associate Other related party Aurora Holdings (Shanghai) Huxen (China) Huxen Aurora Leasing Associate	December 31,2021		December 31,2020 $ 102,331 316 41 $ 102,688 $ - 4,157 3,593 1,667 512 $ 9,929
			$ 96,023 1,727 36 $ 97,786 $ 27,421 4,098 3,483 1,521 575 $ 37,098		$ 102,331 316 41 $ 102,688 $ - 4,157 3,593 1,667 512 $ 9,929

Other receivables represent receivables and purchase allowances arising from advance payments between the Group and related parties.

The outstanding amount of receivables from related parties is not collateralized. No loss allowances were set aside for receivables from related parties for the years ended December 31, 2021 and 2020.

g. Payables to related parties

Accounting Subject Type/Name of Related

Accounting Subject	Type/Name of Related
Accounts payable Other payables	Party Aurora Leasing Associate Other related party Aurora Leasing Associate Investor of significant influence	December 31,2021		December 31,2020 $ 1,622 253 80 $ 1,955 $ 64,955 67 12 $ 65,034
			$ 1,383 117 39 $ 1,539 $ 65,167 64 11 $ 65,242		$ 1,622 253 80 $ 1,955 $ 64,955 67 12 $ 65,034

h. Acquisition of property, plant, and equipment

Type/Name of Related Party Associate		Price	Price
		2021 $ 168		2020
				$ 241

The transaction prices of the aforesaid transactions are determined according to market conditions.

i. Disposal of property, plant, and equipment

Disposal	proceeds 2020 $ - 2021	proceeds 2020 $ - 2021	Disposalgains(losses)	Disposalgains(losses)	Disposalgains(losses)	Disposalgains(losses)
2021			2021		2020 $ - 2020	2020
	$		$	-

		$ 30,321 28			$ 46,275 4,080 $ 50,355
		$ 30,349

j. Lease agreements

Accounting Subject Type/Name of Related Party December 31,2021 Lease liabilities Shanghai Jiading $ 160,531 Aurora Holdings 47,863 Associate 12,571 Aurora Holdings (Shanghai) - $ 220,965 December 31,2021 Interest expenses Aurora Holdings (Shanghai) $ 2,337 Shanghai Jiading 1,287 Investor of significant influence 350 Associate 150 $ 4,124	December 31,2021	December 31,2020 $ 168,229 43,932 27,180 106,982 $ 346,323 December 31,2020	December 31,2020 $ 168,229 43,932 27,180 106,982 $ 346,323 December 31,2020
			$ 6,757 1,320 229 256 $ 8,562

The Group leased land and offices to related parties for the years ended December 31, 2021 and 2020, respectively, with the lease terms of 1 to 23 years; the rent is payable on a monthly basis and the terms are not materially different from those of the general clients.

k. Lease agreements

Operating lease

The total lease payments to be received in the future are as follows:

Type/Name of Related Party Other related party Rental income is as follows: Type/Name of Related Party Other related party		2021 $ 9,175 2021 $ 4,704		2020
				$ 4,151 2020
				$ 4,003

The rental of office buildings leased by the Group to related parties is charged on a monthly basis according to general market conditions.

l. Others

Accounting Subject Type/Name of Related

Refundable deposits Guarantee deposits received	Party Aurora Holdings (Shanghai) Other related party Investor of significant influence Associate Other related party	December 31,2021	December 31,2021	December 31,2020 $ 27,633 7,054 3,945 3,839 $ 42,471 $ 660	December 31,2020 $ 27,633 7,054 3,945 3,839 $ 42,471 $ 660
			$ 25,858 7,001 4,169 3,839 $ 40,867 $ 760		$ 27,633 7,054 3,945 3,839 $ 42,471 $ 660

m. Remuneration to the management

Short-term employee benefits Retirement benefits		2021 $ 116,117 1,276 $ 117,393		2020
				$ 109,679 1,354 $ 111,033

The remuneration to directors and the management is determined by the Remuneration Committee based on personal performances and market trends.

32. Pledged Assets

The following assets of the Group have been provided for financial institutions as collateral for loans:

loans:
Demand deposits (recognized in other financial assets) Investment property Property, plant, and equipment	December 31,2021 $ 44,407 298,996 266,974 $ 610,377	December 31,2020
			$ 60,665 300,955 271,245 $ 632,865

33. Significant Contingent Liabilities and Unrecognized Contract Commitments

a. Unused letters of credit outstanding as of December 31, 2021 amounted to US$4,226 thousand.
b. Guarantee notes issued by the Group to financial institutions for short-term and long-term loans as of December 31, 2021 amounted to NT$10,614,600 thousand.
c. Guaranteed notes issued by the Group under warranty contracts or for business needs as of December 31, 2021 amounted to NT$29,675 thousand.

d. Guaranteed notes received by the Group for business operations as of December 31, 2021 totaled NT$5,580 thousand.
e. Performance bonds issued by banks for the Group as of December 31, 2021 amounted to NT$21,460 thousand.
f. Aurora Office Equipment Co., Ltd. Shanghai and Shanghai Jianbang Asset Management Co., Ltd. (Shanghai Jianbang) entered into the "Cooperation Agreement," where Shanghai Jianbang provides land use rights for 50 years. According to Article 24 of the Cooperation Agreement, Aurora Office Equipment Co., Ltd. Shanghai shall pay Shanghai Jianbang a fixed land profit every year. Starting from 2012, RMB6,000 thousand/acre shall be paid per year based on the actual area used (282 acres). The fixed profit per acre of land shall be adjusted upwards by 5% based on the profit payable before adjustment every 5 years, but the maximum shall not exceed RMB7,500 thousand/acre per year.
g. Unrecognized contractual commitments of the subsidiaries for purchases of goods as of December 31, 2021 amounted to NT$57,887 thousand.
h. Significant contracts of the Company and its subsidiaries are disclosed as follows:

Type of Contract	Contracting Party	Contract Duration	Contract Content	Restrictions
Distribution	SHARP CORPORATION	2021.4.1~2022.3.31	Sharp photocopiers	1. Exclusive
contract	Aurora Corporation	(Automatic extension by oneyear upon expiry)		distribution 2. Non-compete
OEM	(1)Konica Minolta , Inc	2019.1.1~2023.12.31	Production and	None
contract	(2)Konica Minolta Business		procurement of MFPs and PP rinters
	Solutions (China) Co., Ltd.		p in mainland China
	(3)Aurora Office Automation
	Sales Co., Ltd. Shanghai
OEM contract	(1) Aurora Office Automation Sales Co., Ltd. Shanghai (2) Zhuhai Pantum Electronics Co., Ltd.	2021.1.1~2022.12.31	Production and procurement of A4 printer	None
Distribution	(1)Stratasys AP Limited	2021.1.1~2021.12.31	Stratasys 3D printers	Non-compete
contract	(2)Aurora Machinery Equipment
	(Shanghai ) Co., Ltd.
Distribution	KONICA MINOLTA, INC	2021.4.1~2022.03.31	KM photocopiers and	1. Non-compete
contract	Aurora Office Automation Corporation		printers	2. Sales in Taiwan only
Distribution	STRATASYS AP LTD.	2021.1.1~2021.12.31	SSYS 3D printers	1. Exclusive
contract	General Integration Technology			distribution
	Co., Ltd.			2. Non-compete 3. Sales in Taiwan only
Distribution contract	CREAFORM INC. General Integration Technology Co., Ltd.	2021.6.21~2022.6.20	3D scanners	1. Exclusive distribution 2. Sales in Taiwan only
Distribution	KONICA MINOLTA, INC	2021.4.1~2022.03.31	Large photocopiers	1. Annual sales
contract	KM Developing Solutions Co., Ltd.		and multi-functional hotocoiers	amount limit
			pp
				2. Non-compete 3. Sales in Taiwan only

34. Significant Events after the Balance Sheet Date: None.

35. Information on Foreign Currency-denominated Assets and Liabilities of Significant Influence

The following summary is presented in foreign currencies other than the functional currency. The exchange rate disclosed in the summary refers to the exchange rate of a foreign currency to the functional currency. The significant impact on assets and liabilities recognized in foreign currencies is as follows:

Unit: Foreign currency/NT$ thousand

December 31, 2021

Foreign currencyassets Monetary items USD USD Non-monetary items Associates accounted for using the equity method RMB Foreign currencyliabilities Monetary items USD USD December 31, 2020 Foreign currencyassets Monetary items USD USD Non-monetary items Associates accounted for using the equity method RMB Foreign currencyliabilities Monetary items USD USD	Foreign currencies $ 5,625 14 150,528 4,469 747 Foreign currencies $ 4,059 125 146,677 2,402 246	Exchange Rate 6.3674 (USD:RMB) 27.68 (USD:NTD) 4.344 (RMB:NTD) 27.68 (USD:NTD) 6.3674 (USD:RMB) Exchange Rate 6.5249 (USD:RMB) 28.48 (USD:NTD) 4.377 (RMB:NTD) 28.48 (USD:NTD) 6.5249 (USD:RMB)	Carrying amount
			$ 35,816 385 653,893 123,927 4,757 Carrying amount
			$ 26,487 3,557 642,007 68,535 1,605

Realized and unrealized foreign exchange gains and losses that have significant impact on the Group are recognized in other gains and losses; please refer to Note XXV (II).

36. Supplementary Disclosures

a. Information on significant transactions:
1) Loans provided for others: None.
2) Endorsements/guarantees provided for others: None.
3) Securities held at end of period (excluding investments in subsidiaries and associates): Table 1.
4) Accumulated purchase or sale of the same securities amounting to NT$300 million or 20% of paid in capital or more: Table 2.
5) Acquisition of property amounting to NT$300 million or 20% of paid in capital or more: Table 3.
6) Disposal of property amounting to NT$300 million or 20% of paid-in capital or more: None.
7) Purchases or sales with related parties amounting to NT$100 million or 20% of paid-up capital or more: Table 4.
8) Receivables from related parties amounting to NT$100 million or 20% of paid-up capital or more: None.
9) Derivatives transactions: None.
10) Intercompany relationships and significant intercompany transactions: Table 5.
b. Information on invested companies: Table 6.
c. Information on investments in mainland China:
1) Information on any investee company in mainland China (name, main business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, investment income, carrying amount of investment at end of period, repatriations of investment income, and limit on the amount of investment in mainland China): Table 7.
2) Major transactions with any investee company in mainland China directly or indirectly through a third region, and their prices, payment terms, unrealized gains (losses), and other information: Table 8.
d. Information on major shareholders (names of shareholders with a shareholding ratio of 5% or more as well as number and proportion of shares held): Table 9.

37. Segment Information

Information is provided for the chief business decision makers to allocate resources and to evaluate the performance of segments by company. The reportable segments of the Group are based in Taiwan and mainland China and mainly engage in the sales of office automation products, computer and communication equipment, and furniture.

The income and results of the Group's operations and segment assets are analyzed as follows:

Item Revenue from external customers Intersegment revenue Total revenue Segment profit or loss Segment assets			2021	2021	2021
		Taiwan $ 4,353,803 171,808 $ 4,525,611 $ 1,847,137 $ 14,367,922	Mainland China $ 9,223,454 60,818 $ 9,284,272 $ 1,028,028 $ 11,199,360		Offset of Intersegment Revenue and Profit or Loss $ - 232,626) $ 232,626) $ 854,766) $ 7,316,188)		Total
				( ( ( (			$ 13,577,257 - $ 13,577,257 $ 2,020,399 $ 18,251,094

Item Revenue from external customers Intersegment revenue Total revenue Segment profit or loss Segment assets			2020	2020	2020
		Taiwan $ 4,307,934 111,786 $ 4,419,721 $ 1,858,699 $ 13,985,256	Mainland China $ 8,643,040 68,026 $ 8,711,065 $ 1,013,911 $ 11,150,650		Offset of Intersegment Revenue and Profit or Loss $ - 179,812) $ 179,812) $ 847,182) $ 7,072,997)		Total
				( ( ( (			$ 12,950,974 - $ 12,950,974 $ 2,025,428 $ 18,062,909

Table 1

Aurora Corporation and Subsidiaries

Securities Held at End of Period December 31, 2021

(In Thousands of New Taiwan Dollars)

Securities Holding Company	Type and Name of Securities	Relationship with Issuer of Securities	Ledger Account		EndingBalance	EndingBalance		Remark
				Number of Shares (in Thousand Shares or Thousand Units)	Carrying amount	Shareholding (%)	Fair Value (Note 1)
Aurora Office Automation Corporation KM Developing Solutions Co., Ltd. Aurora (China) Co., Ltd. Aurora Office Automation Sales Co., Ltd. Shanghai Aurora Office Equipment Co., Ltd. Shanghai Aurora (Bermuda) Investment Ltd.	Stock Aurora Corporation Aurora Corporation Fund Hua Nan Kirin Money Market Fund Bank SinoPac - large certificates of deposits Bank of China - large certificates of deposits Shanghai Bank - large certificates of deposits Nanjing Bank - large certificates of deposits Bank of China - large certificates of deposits Cathay United Bank - large certificates of deposits Industrial Bank - large certificates of deposits Minsheng Bank - large certificates of deposits Bank of China - large certificates of deposits Bank of Communications - large certificates of deposits Taishin International Bank - time deposits	The Company The Company None None None None None None None None None None None None	Financial Assets at Fair Value through Other Comprehensive Income - Current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - current Financial Assets at Amortized Cost - Current Financial Assets at Amortized Cost - Current Financial Assets at Amortized Cost - Current Financial Assets at Amortized Cost - Current Financial Assets at Amortized Cost - Current Financial Assets at Amortized Cost - Current Financial Assets at Amortized Cost - Current Financial Assets at Amortized Cost - Current Financial Assets at Amortized Cost - Current Financial Assets at Amortized Cost - Current Financial Assets at Amortized Cost - Current	3,290 9,206 6,353 - - - - - - - - - - -	$ 295,478 826,734 76,650 217,967 139,124 223,698 1,935,710 223,195 144,546 725,848 222,496 315,944 139,124 10,950	1.39 3.90 - - - - - - - - - - - -	$ 295,478 826,734 76,650 217,967 139,124 223,698 1,935,710 223,195 144,546 725,848 222,496 315,944 139,124 10,950	Notes 1 and 2 Notes 1 and 2 Note 1

Note 1. Market prices of stocks with open market prices refer to the closing prices as of December 31, 2021. Market prices of open-end funds refer to the net asset value of the funds on the balance sheet date. Note 2. The Company's shares held by subsidiaries are treated as treasury shares.

Note 3. For information on investments in subsidiaries, associates, and joint ventures, please refer to Tables 6 and 7.

Table 2

Aurora Corporation and Subsidiaries

Accumulated Purchase or Sale of the Same Securities Amounting to NT$300 Million or 20% of Paid-in Capital or More For the Year Ended December 31, 2021

Unit: NT$ thousand or thousand shares (unless stated otherwise)

Company Name	Type and Name of Securities	Ledger Account	Counterparty	Relationship	Transaction Currency	Beginningof Period	Beginningof Period	Reclassification	Reclassification	Purchase	Purchase		Sale	Sale		Increase/Decrease	Increase/Decrease	Ending	Balance
						Number of Shares (in Thousand Shares or Thousand Units)	Amount	Number of Shares (in Thousand Shares or Thousand Units)	Amount	Number of Shares (in Thousand Shares or Thousand Units)	Amount	Number of Shares (in Thousand Shares or Thousand Units)	Selling Price	Carrying Cost	Gains (Losses) on Disposal	Number of Shares (in Thousand Shares or Thousand Units)	Amount	Number of Shares	Amount
Aurora Office Automation Sales Co., Ltd. Shanghai Aurora Office Equipment Co., Ltd. Shanghai Aurora (China) Co., Ltd. Aurora (Jiang Su) Enterprise Development Co., Ltd. Aurora Home Furniture Co., Ltd. Aurora (China) Investment Co., Ltd.	Cuizhu 2W "Bubugaosheng" Structured deposits Jinxueqiu - Youyue (1M) Tian Li Kuai Xian Structured deposits "Bubugaosheng" Structured deposits Ri Ri Xin 80008 Structured deposits Structured deposits Ri Ri Ju Xin "Bubugaosheng" "Liduoduo Structured Deposits" Structured deposits Ri Ri Xin 80008 Structured deposits Structured deposits Ri Ri Ju Xin Structured deposits Ri Ri Xin 80008 Guizhu profit increase single month Structured deposits	Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	China Minsheng Bank Shanghai Pudong Development Bank Industrial Bank Industrial Bank Industrial Bank Bank of China Shanghai Pudong Development Bank Shanghai Pudong Development Bank China Merchants Bank Bank of China Bank of Nanjing Bank of Nanjing Shanghai Pudong Development Bank Shanghai Pudong Development Bank Bank Sinopac China Merchants Bank Bank of China Bank of Nanjing Bank of Nanjing China Merchants Bank China Merchants Bank China Minsheng Bank Bank of China	None None None None None None None None None None None None None None None None None None None None None None None	RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB	- - - - - - - - - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - -	$ 162,000 65,000 140,000 108,000 219,000 100,000 35,000 50,000 120,000 50,000 210,000 344,000 40,000 310,000 180,000 60,000 100,000 86,000 258,000 40,000 85,000 40,000 50,000	- - - - - - - - - - - - - - - - - - - - - - -	$ 162,186 65,266 141,008 108,305 219,700 100,337 35,194 50,346 120,629 50,168 210,449 345,253 40,154 312,468 180,985 60,350 100,337 86,283 259,502 40,114 85,587 40,414 50,168	$ 162,000 65,000 140,000 108,000 219,000 100,000 35,000 50,000 120,000 50,000 210,000 344,000 40,000 310,000 180,000 60,000 100,000 86,000 258,000 40,000 85,000 40,000 50,000	$ 186 266 1,008 305 700 337 194 346 629 168 449 1,253 154 2,468 985 350 337 283 1,502 114 587 414 168	- - - - - - - - - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - - - - - - - - -

Table 3

Aurora Corporation and Subsidiaries

Acquisition of Real Estate Amounting to NT$300 Million or 20% of the Paid-in Capital or More For the Year Ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Acquirer of Real Estate	Name of Property	Date of Occurrence	Amount of Transaction	Status of Payment	Counterparty	Relationship	Information	on Prior Transaction If the Is Related	on Prior Transaction If the Is Related	Counterparty	Basis or Reference for Price Setting	Purpose of Acquisition and Usage Status	Other Agreed Items
							Owner	Relationship with the Issuer	Date of Transfer	Amount
Aurora (Jiang Su) Enterprise Development Co., Ltd.	Construction in Process	2021	$ 326,160 `（`RMB`）`	Payments by Progress	Shanghai Construction Design Research Institute Co., Ltd. and Nantong High-tech Industrial Developmen t Zone Managemen t Committee	None	-	-	-	$ -	N/A	Building a smart factory for furniture; Under construction	None

Table 4

Aurora Corporation and Subsidiaries

Purchases or Sales with Related Parties Amounting to NT$100 Million or 20% of Paid-up Capital or More For the Year Ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Company	Counterparty	Relationship		Transaction Situation	Transaction Situation		Unusual Transaction Terms and Reasons	Unusual Transaction Terms and Reasons	Notes and Accounts Receivable (Payable)	Notes and Accounts Receivable (Payable)	Remark
			Purchases (Sales)	Amount	Percentage of Total Purchases (Sales) (%)	Credit Period	Unit price	Credit Period	Balance	Percentage of Notes and Accounts Receivable (Payable) (%) (Note)
Aurora Corporation Aurora Office Automation Corporation Aurora Office Automation Sales Co., Ltd. Shanghai	Aurora Leasing Corporation Aurora (China) Co., Ltd. Aurora Leasing Corporation Huxen (China) Co., Ltd.	Huxen's subsidiary (associate) The Company's subsidiary Huxen's subsidiary (associate) Huxen's subsidiary (associate)	Sales Sales Sales Sales	( $ 356,907 ) ( 169,265 ) ( 206,181 ) ( 1,578,776 )	( 11% ) ( 5% ) ( 25% ) ( 46% )	Due within 60 days Due within 60 days Due within 60 days Due within 120 days	According to market conditions, no material difference According to market conditions, no material difference According to market conditions, no material difference According to market conditions, no material difference	Due within 60 days Due within 60 days Due within 60 days Due within 120 days	$ 56,599 10,189 39,424 -	20% 4% 33% -

Note: The above percentage is calculated as the ratio of the balance of notes and accounts receivable (payable) with related parties to the balance of total notes and accounts receivable (payable).

Table 5

Aurora Corporation and Subsidiaries

Intercompany Relationships and Significant Intercompany Transactions For the Year Ended December 31, 2021

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Company	Counterparty	Relationship (Note 2)		Description	of Transactions
				Ledger Account	Amount (Note 3)	Transaction Terms (Note 4)	Percentage of Consolidated Total Revenue or Total Assets(%) (Note 5)
0 1	Aurora Corporation Aurora Office Automation	Aurora Office Automation Aurora Office Equipment Co., Ltd. Shanghai Aurora (China) Aurora Office Automation Sales Co., Ltd. General Integration KM Developing Aurora Home General Integration KM Developing	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3	Sales revenue Other income Purchase of goods Depreciation - leases Operating expenses Interest expenses Accounts receivable Other receivables Accounts payable Expenses payable Purchase of goods Goods in Transit Sales revenue Purchase of goods Accounts receivable Sales revenue Sales revenue Operating expenses Purchase of goods Accounts receivable Other receivables Accounts payable Sales revenue Rental income Other receivables Purchase of goods Operating expenses Purchase of goods Accounts payable Sales revenue Other income	$ 14,830 21,276 7 3,808 844 44 346 2,299 3 73 34,603 2,762 169,265 21,489 10,189 1,003 680 4 194 1 53 17 1,619 72 105 2,858 61 11 7 5,084 8	`－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－`	- - - - - - - - - - - - 1 - - - - - - - - - - - - - - - - - -

(Continued on the next page)

(Continued from the previous page)

No. (Note 1)	Company	Counterparty	Relationship (Note 2)		Description	of Transactions
				Ledger Account	Amount (Note 3)	Transaction Terms (Note 4)	Percentage of Consolidated Total Revenue or Total Assets (%) (Note5)
2 3 4 5 6	General Integration Aurora (China) Aurora Office Automation Sales Co., Ltd. Aurora Home Furniture Co., Ltd. Aurora Office Equipment Co., Ltd. Shanghai	Ever Young Biodimension Aurora Machinery Equipment Aurora Home Furniture Co., Ltd. Aurora Cloud Aurora Office Equipment Co., Ltd. Shanghai Aurora (Shanghai) Electronic Commerce Co., Ltd. Aurora Machinery Equipment Aurora Cloud Aurora Office Equipment Co., Ltd. Shanghai Aurora (Shanghai) Electronic Commerce Co., Ltd. Aurora Cloud Aurora (Shanghai) Electronic Commerce Co., Ltd. Aurora Home Furniture Co., Ltd.	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Purchase of goods Accounts receivable Sales revenue Accounts receivable Sales revenue Sales revenue Purchase of goods Accounts receivable Accounts payable Sales revenue Operating expenses Other income Accounts payable Purchase of goods Operating expenses Other income Accounts payable Sales revenue Accounts receivable Sales revenue Other income Purchase of goods Operating expenses Other receivables Other income Purchase of goods Operating expenses Other payables Operating expenses Accounts payable Sales revenue Operating expenses Sales revenue Sales revenue Other income	$ 3,546 592 2,029 17 1,540 2,881 526,155 313 83,550 129 6,393 595 2 82,414 23,950 689 4,023 3,819 1,494 1,467 6,567 340 332 1,420 1,465 3,827 16,700 9,817 2,460 320 349 16 182 897 19,877	`－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－`	- - - - - - 4 - 1 - - - - 1 - - - - - - - - - - - - - - - - - - - - -

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No. (Note 1)	Company	Counterparty	Relationship (Note 2)		Description	of Transactions
				Ledger Account	Amount (Note 3)	Transaction Terms (Note 4)	Percentage of Consolidated Total Revenue or Total Assets(%) (Note 5)
		Aurora Cloud	3 3 3 3 3	Purchase of goods Accounts receivable Other receivables Purchase of goods Operatingexpenses	$ 42 8 643 4,686 517	`－` `－` `－` `－` `－`	- - - - -

Note 1. The information on business dealings between the parent company and subsidiaries should be numbered according to the following method:
For the parent company, fill in 0.
Subsidiaries are sorted in a numerical order starting from 1.
Note 2. Relationships with counterparties can be any one of the following three types:
The parent company to subsidiaries.
Subsidiaries to the parent company.
Subsidiaries to subsidiaries.
Note 3. When the Consolidated Financial Statements are prepared, the amounts have been offset in a consolidated manner.
Note 4. There is no material difference between the terms of the sales transactions between the parent company and subsidiaries and the normal sales of goods. The terms of other transactions are based on the agreement between both parties.
Note 5. The percentage is rounded to the nearest whole number.

Table 6

Aurora Corporation and Subsidiaries

Information on Investee Companies For the Year Ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Name of Investor	Name of Investee	Location	Main Business Activities	Initial Investment Amount	Initial Investment Amount	Ending Balance	Ending Balance	Ending Balance	Profit (Loss) of Investee for the Period	Investment Profit (Loss) Recognized	Distribution of Dividends by Investee	Distribution of Dividends by Investee	Remark
				Ending Balance for the Current Period	Ending Balance for the Previous Period	Number of Shares	Sharehol ding (%)	Carrying amount			Stock Dividends	Cash dividends
Aurora Corporation Aurora Office Automation Corporation General Integration Technology Co., Ltd.	Aurora (Bermuda) Investment Ltd. Aurora Office Automation Corporation General Integration Technology Co., Ltd. KM Developing Solutions Co., Ltd. Ever Young Biodimension Corporation Huxen Corporation Aurora Development Corp. Aurora Telecom Co., Ltd. Huxen Corporation Ever Young Biodimension Corporation	Bermuda Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Investment holding Import/export and wholesale of MFPs Manufacturing of molds and machinery and wholesale of precision instruments Wholesale and retail of information software, computers, and office equipment Wholesale of precision instruments Agency of MFPs and communications products Development of land and office buildings Sales of mobile phones and accessories and internet access Agency of MFPs and communications products Wholesale of precision instruments	$ 2,177,439 2,091,992 112,500 70,000 8,580 826,645 140,000 191,833 359,451 8,250	$ 2,177,439 2,091,992 112,500 70,000 8,580 826,645 140,000 191,833 359,451 8,250	67,350 82,278 5,465 7,000 858 47,011 32,498 13,165 11,170 825	88.04 91.13 55.00 70.00 26.00 32.53 46.67 30.40 7.73 25.00	$ 7,305,999 1,035,862 137,361 109,052 4,314 1,444,402 494,848 214,064 539,952 4,151	$ 810,020 281,230 14,946 34,864 115 549,456 50,149 ( 63,946 ) 549,456 115	$ 743,776 186,769 8,306 24,405 30 178,738 23,405 ( 19,440 ) 42,473 29	$ - - - - - - - - - -	$ 443,220 287,972 - 20,300 - 169,238 26,973 - 40,212 -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Investee accounted for using the equity method Investee accounted for using the equity method Investee accounted for using the equity method Investee of Aurora Office Automation accounted for using the equity method Investee of General Integration accounted for using the equity method

Table 7

Aurora Corporation and Subsidiaries

Information on Investments in Mainland China For the Year Ended December 31, 2021

Unit: NT$ thousand, US$ thousand, and RMB thousand unless specified otherwise

Investee Company	Main Business Activities	Paid-in Capital	Method of Investments	Accumulated Amount of Investments Remitted from Taiwan at Beginning of Period	Amount of Investments Remitted or Repatriated for the Period	Amount of Investments Remitted or Repatriated for the Period	Amount of Investments Remitted or Repatriated for the Period	Accumulated Amount of Investments Remitted from Taiwan at End of Period	Profit (Loss) of Investee for the Period	The Company's Direct or Indirect Ownership (%)	Investment Profit (Loss) Recognized (Note 2)	Carrying Amount of Investments at End of Period	Accumulated Investment Income Repatriated at End of Period
					Remitted		Repatriated
Aurora (China) Investment Co., Ltd. Aurora Office Equipment Co., Ltd. Shanghai Aurora (China) Co., Ltd. Aurora Office Automation Sales Co., Ltd. Shanghai Aurora (Shanghai) Cloud Technology Co., Ltd. Huxen (China) Co., Ltd. Chongqing Gonggangzhihui Additive Manufacturing Technology Research Institute Co., Ltd. Aurora Home Furniture Co., Ltd. Aurora Machinery Equipment (Shanghai) Co., Ltd. Aurora (Jiang Su) Enterprise Development Co., Ltd. Aurora (Shanghai) Electronic Commerce Co., Ltd.	Investment holding Production and sales of MFPs Manufacturing and sale of office furniture Sales, lease, and agency of Aurora brand products Sale of printing and office equipment and furniture and consulting service Sales, maintenance, and lease of printers Sales, lease, and maintenance of 3D printers Production and sales of furniture Wholesale of mechanical and electronic equipment, internet communication equipment, and computer software and hardware Reinvestment and property lease Sales on e-commerce platforms	$ 2,569,980 ( US$ 76,500 ) 1,121,340 ( US$ 33,000 ) 1,007,266 ( US$ 30,000 ) 1,603,064 ( RMB$ 350,000 ) 47,110 ( RMB$ 10,000 ) 1,922,054 ( RMB$ 400,000 ) 114,700 ( RMB$ 25,000 ) 243,020 ( RMB$ 50,000 ) 112,549 ( RMB$ 25,000 ) 1,322,900 ( RMB$ 300,000 ) 20,955 ( RMB$ 5,000 )	Note 1 (2) Note 1 (2) Note 1 (2) Note 1 (2) Note 1 (3) Note 1 (1) Note 1 (3) Note 1 (3) Note 1 (1) Note 1 (2) Note 1 (2)	$ 2,177,439 ( US$ 67,350 ) Note 3 Note 3 Note 3 Note 3 583,044 ( RMB$ 120,000 ) Note 3 Note 3 112,549 ( RMB$ 25,000 ) Note 3 Note 3	$	- - - - - - - - - - -	$ - - - - - - - - - - -	$ 2,177,439 ( US$ 67,350 ) Note 3 Note 3 Note 3 Note 3 583,044 ( RMB$ 120,000 ) Note 3 Note 3 112,549 ( RMB$ 25,000 ) Note 3 Note 3	$ 812,850 ( 7,474 ) 814,564 341,318 8,711 55,707 ( 31,163 ) 29,092 ( 8,273 ) 217 ( 833 )	88.04 88.04 88.04 88.04 61.63 27.34 17.61 88.04 86.50 88.04 61.63	$ 715,633 Note 2 (2) ( 6,580 ) Note 2 (2) 717,142 Note 2 (2) 300,496 Note 2 (2) 5,368 Note 2 (2) 16,712 Note 2 (2) ( 6,233 ) Note 2 (2) 25,613 Note 2 (2) ( 5,791 ) Note 2 (2) 191 Note 2 (2) ( 513 ) Note 2 (2)	$ 8,548,101 1,134,727 6,159,019 2,001,216 7,024 653,893 6,850 257,977 34,970 1,320,719 9,318	$ 2,408 37,879 297,776 84,531 - - - 16,173 - 4,453 -

Accumulated Amount of Investments Remitted from Taiwan to Mainland China at End of Period(Note 4)			Amount of Investments Authorized by Investment Commission,M.O.E.A.(Note 4)			Ceiling on Amount of Investments Stipulated by Investment Commission,M.O.E.A.(Note 5)
$ 2,873,032 (US$ 67,350`、`RMB$ 145,000)			$ 2,881,734 (US$ 67,350`、`RMB$ 145,000)			$5,355,980

Note 1. Methods of investments are divided into the following three types. Specify the type.

Direct investment in mainland China.
Investment in mainland China through Aurora (Bermuda) Investment Ltd.
Others.

Investment profit (loss) recognized for the period:

Indicate if no investment profit (loss) is recognized as an investee is under preparation.
Indicate if investment profit (loss) is recognized on the following basis:
- (1) Financial statements audited by international accounting firms cooperating with accounting firms in the Republic of China.
- (2) Financial statements audited by the parent company's CPAs in Taiwan.
- (3) Others.
Note 3. The Company invested in Aurora (China) Investment Co., Ltd. directly through Aurora (Bermuda) Investment Ltd. (with 88.04% equity held by the Company) established in Bermuda. Aurora (China) Investment Co., Ltd. then invested in Aurora (Jiang Su) Enterprise Development Co., Ltd., Aurora Office Equipment Co., Ltd. Shanghai, and Aurora (China) Co., Ltd. Then, Aurora (China) Co., Ltd. invested in Aurora Office Automation Sales Co., Ltd. Shanghai, Aurora Home Furniture Co., Ltd., Aurora (Shanghai) Cloud Technology Co., Ltd., and Aurora (Shanghai) Electronic Commerce Co., Ltd. Then, Aurora Office Automation Sales Co., Ltd. Shanghai invested in Chongqing Gonggangzhihui Additive Manufacturing Technology Research Institute Co., Ltd.
Note 4. Based on the prevailing exchange rate approved by the Investment Commission, Ministry of Economic Affairs, the accumulated amount of investments remitted from Taiwan to mainland China in the foreign currency at the end of the period did not exceed the amount of investments in the foreign currency approved by the Investment Commission.

Note 5. The net worth of the Group as of December 31, 2021 was NT$8,926,634 thousand. In accordance with the "Directions Governing the Examination of Investment or Technical Cooperation in Mainland China," the cap amount should be NT$5,355,980 thousand (NT$8,926,634 thousand x 60%).

Table 8

Aurora Corporation and Subsidiaries

Major Transactions with Any Investee Company in mainland China Directly or Indirectly through a Third Region, and Their Prices, Payment terms, Unrealized Gains (Losses), and Other Information For the Year Ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Investee Company	Relationship with the Company	Type of Transaction	Amount		Transaction Term		Notes and Accounts Receivable (Payable)	Notes and Accounts Receivable (Payable)	Unrealized gains (losses)	Remark
				Price	Payment Terms	Difference with General Transactions	Balance	Percentage (%) (Note)
Aurora Office Automation Sales Co., Ltd. Shanghai	The Company's sub-subsidiary	Sales	( $ 1,578,776 )	According to market conditions	Due within 120 days	No material difference	$ -	-	$ -

Note: The above percentage is calculated as the ratio of the balance of notes and accounts receivable (payable) with related parties to the balance of total notes and accounts receivable (payable).

Table 9

Aurora Corporation

Information on Major Shareholders December 31, 2021

Name of Major Shareholders	Shareholding	Shareholding
	Shares	Percentage of Ownership (%)
Aurora Holdings Incorporated Chen Yung-Tai Aurora Leasing Corporation Aurora Office Automation Corporation NishengInvestment Co.,Ltd.	101,856,312 21,269,000 20,791,276 12,496,797 11,934,000	43.12 9.00 8.80 5.29 5.05

Note 1. The major shareholders in this table are shareholders holding more than 5% of the common and preference shares that have completed delivery without physical registration (including treasury shares) on the last business day of each quarter calculated by the Taiwan Depository & Clearing Corporation. Share capital indicated in the Company's consolidated financial statements may differ from the actual number of shares that have been issued and delivered without physical registration as a result of different basis of preparation.
Note 2. If a shareholder delivers its shareholding information to the trust, the aforesaid information shall be disclosed by the individual trustee who opened the trust account. Please refer to MOPS for information on shareholders who declare themselves to be insiders holding more than 10% of shares in accordance with the Securities and Exchange Act, and their shareholdings including their shareholdings plus their delivery of trust and shares with the right to make decisions on trust property.

AI assistant

Aurora — Annual Report 2021

52038_rns_2021-11-15_b22f1e10-a807-409d-a0c3-7a2a10f16364.pdf

Aurora Corporation and Subsidiaries

Consolidated Financial Statements and Independent Auditors' Report

§Table of Contents§

Declaration of Consolidated Financial Statements of Affiliates

Independent Auditors' Report

To Aurora Corporation:

Opinions

Basis for Opinions

Key Audit Matters

Sales revenue

Other Matters

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Aurora Corporation and Subsidiaries Consolidated Balance Sheets December 31, 2021 and 2020 (In Thousands of New Taiwan Dollars)

Aurora Corporation and Subsidiaries Consolidated Statements of Comprehensive Income For the Years Ended December 31, 2021 and 2020

Aurora Corporation and Subsidiaries Consolidated Statements of Changes in Equity For the Years Ended December 31, 2021 and 2020

Aurora Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2021 and 2020

(Continued from the previous page)

Aurora Corporation and Subsidiaries

Notes to Consolidated Financial Statements

For the Years Ended December 31, 2021 and 2020

1. Company History

2. Date of Authorization for Issuance of the Consolidated Financial Statements and

Procedures for Authorization

3. Application of New and Amended Standards and Interpretations

4. Summary of Significant Accounting Policies

d. Basis of consolidation

e. Business combinations

f. Foreign currencies

2) Derecognition

1) Financial assets

p. Leases

1) Where the Group is a lessor:

2) Deferred income tax

3) Current and deferred income taxes

5. Primary Sources of Uncertainties in Material Accounting Judgments, Estimates, and Assumptions

6. Cash and Cash Equivalents

7. Financial Instruments at Fair Value through Profit or Loss

9. Other Financial Assets - Non-current

Accounts receivable

December 31, 2021

December 31, 2020

11. Inventories

12. Subsidiaries

(Continued from previous page)

c. Information on subsidiaries with material non-controlling interests

(Continued from previous page)

Aurora Office Automation

13. Investments Accounted for Using the Equity Method

Huxen Corporation

14. Property, plant, and equipment

a. For self-use

15. Lease Agreements

b. Lease liabilities

16. Investment property

17. Intangible assets

18. Other Assets

19. Loans

December 31, 2020

c. Long-term loans

20. Accounts payable

21. Other Liabilities

a. Other payables

22. Post-retirement Benefit Plan

a. Defined contribution plans

b. Defined benefit plans

23. Equity

Common stock

b. Capital surplus

24. Revenue

25. Net Income

c. Finance costs

f. Employee compensation

Estimated percentage

26. Income Tax

Aurora Annual Report 2021