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Aurora Annual Report 2021

Jun 22, 2022

52038_rns_2022-06-22_3ee49a03-7adf-4683-98ec-705266e4653f.pdf

Annual Report

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Stock Code: 2373

==> picture [86 x 63] intentionally omitted <==

Aurora Corporation

2021 Annual Report (Translation)

April 11, 2022

This Annual Report is available at: http://mops.twse.com.tw/

http://www.aurora.com.tw/

  1. Spokesperson:

Name: Ma Chih-Hsien Title: Spokesperson Tel: (02) 2345-8088 E-mail: [email protected]

Deputy Spokesperson: Name: Wang Yu-Chih Title: Director Tel: (02) 2345-8088 E-mail: [email protected]

  1. Contact Information of Headquarters, Branches and Plants:
Name
Headquarters

Branches
Office Equipment
Division

Furniture Division

Furniture Factory

Cloud Service
Division
 Address
15F, No. 2, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei
City
15F, No. 2, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei
City
10/F, No.156, Jiankang Rd., Taipei City
No. 13, You 7th Rd., Dajia Dist., Taichung City
15F, No. 2, Sec. 5, Xinyi Rd., Xinyi Dist., Taipei
City		 Telephone
(02)2345-8088
(02)2345-8008
(02)5581-8588

(04)2681-5990
(02)2345-8066
  1. Contact Information of Stock Transfer Agencies:

Name: Yuanta Securities Co., Ltd. Address: B1, No. 210, Sec. 3, Chengde Rd., Datong Dist., Taipei City http://www.yuanta.com.twWebsite: http://www.yuanta.com.tw Tel: (02) 2586-5859

  1. Certified accountant for the most recent Annual Financial Report :

Name: Chi Rui-Chuan, Hsieh Chien-Hsin Name of Accounting Firm: Deloitte &Touche Address: 20F, No. 100, Songren Rd., Xinyi Dist., Taipei City 110016 http://www.deloitte.com.twWebsite: http://www.deloitte.com.tw Phone: (02) 2725-9988

  1. Overseas Securities Exchange Where Securities Are Listed and Method of Inquiry:None

  2. http://www.aurora.com.twCompany Website: http://www.aurora.com.tw

Contents

Contents Contents
**1. ** Report to Shareholders .......................................................................................................... 1
**2. ** Company Profile .................................................................................................................... 4
a. Date of Establishment ....................................................................................................... 4
b. Company History .............................................................................................................. 4
**3. ** Corporate Governance Report ............................................................................................. 8
a. Organizational System ...................................................................................................... 8
b. Directors, General Managers, Heads of Departments and Branches ................................ 10
c. Remuneration of Directors And General Manager ........................................................... 17
d. Corporate Governance Operations .................................................................................... 22
e. Certified Public Accountant Fee Information ................................................................... 60
f. Replacement of accountant ............................................................................................... 60
g. The chairman of the board of directors, the general manager, the manager in charge
of the financial or accounting affairs of the company, who has worked in a firm of
visa accountants or an affiliated enterprise thereof in the last year .................................. 60
h. Any Transfer of Equity Interests and/or Pledge of or Change in Equity Interests
(during the Most Recent Fiscal Year and during the Current Fiscal Year Up to the
Date of Publication of the Annual Report) by a Director, Managerial Officer, or
Shareholder with a Stake of More than 10% .................................................................... 60
i. Relationship among the 10 Largest Shareholders ............................................................. 62
j. The number of shares held by the company, its directors, managers and enterprises
directly or indirectly controlled by the company in the same reinvested enterprise and
the comprehensive shareholding ratio .............................................................................. 66
**4. ** Fundraising Situation ............................................................................................................ 67
a. Capital and Shares ............................................................................................................ 67
b. Situation of corporate bonds ............................................................................................. 72
c. Status of special shares ..................................................................................................... 72
d. Overseas Depository Certificate Processing ..................................................................... 72
e. Employee stock option certificate handling situation ....................................................... 72
f. Restriction on the handling of new shares of employees' rights ....................................... 72
g. Mergers and acquisitions of shares of other companies for the issuance of new shares .. 72
h. Implementation of Capital Allocation Plans ..................................................................... 72
**5. ** Overview of Operations ......................................................................................................... 73
a. Business Activities ............................................................................................................ 73
b. Analysis of Market and Production and Marketing Situation .......................................... 79
c. Information on Employees for the Two Most Recent Fiscal Years and during the
Current Fiscal Year Up to the Date of Publication of the Annual Report ......................... 85
d. Environmental Protection Expenses ................................................................................. 85
e. Employee-Employer Relations ......................................................................................... 85
f. Information Security Management ................................................................................... 88
g. Important Contract ............................................................................................................ 91
**6. ** Financial Overview ................................................................................................................ 92 Financial Overview ................................................................................................................ 92
a. Condensed Balance Sheets and Statements of Comprehensive Income for the Past
Five Fiscal Years ............................................................................................................... 92
b. Financial Analyses for the Past Five Fiscal Years ............................................................ 96
c. Audit Committee's Review Report on Financial Statements for the Most Recent
Fiscal Year ......................................................................................................................... 99
d. Financial Statements for the Most Recent Fiscal Year ..................................................... 100
e. The Company`s Individual Financial Report of the most recent year has been audited
and certified by the accountant ......................................................................................... 181
f. The Company and its related companies had financial turnover difficulties in the
most recent year and as of the date of publication of the annual report, the impact on
the financial situation of the Company ............................................................................. 263
**7. ** Review of Financial Conditions and Operating Results and Risk Matters ...................... 264
a. Financial Situation ............................................................................................................ 264
b. Financial Performance ...................................................................................................... 265
c. Cash Flow ......................................................................................................................... 266
d. Effect of significant capital expenditures on financial operations in the most recent
year .................................................................................................................................... 266
e. The most recent annual reinvestment policy, the main reasons for its profit or loss,
the improvement plan and the investment plan for the next year ..................................... 266
f. Analysis and assessment of risk matters for the most recent year and as of the date of
publication of the annual report ........................................................................................ 267
g. Other important matters .................................................................................................... 269
**8. ** Special Notes ........................................................................................................................... 270
a. Information on Affiliates ................................................................................................... 270
b. As of the date of publication of the latest annual and annual reports, the status of the
handling of private placement securities .......................................................................... 276
c. As of the printing date of the latest annual and annual reports, the subsidiary held or
disposed of the company's shares ..................................................................................... 276
d. Other necessary supplementary notes ............................................................................... 276
e. Events that have a significant impact on shareholders' equity or securities prices as
specified in Subparagraph 2, Paragraph 3, Article 36 of the Securities and Exchange
Act occurred in the most recent year and up to the date of publication of the annual
report ................................................................................................................................. 276

1. Report to Shareholders

Dear shareholders, ladies and gentlemen,

Looking back at 2021, due to the exacerbation of the local coronavirus outbreak in Taiwan in May, coupled with the global supply chain that has not resumed normal operations due to the continuation of the outbreak, the supply of raw materials, chips and other key production factors has been tight, which has impacted the overall economy and also affected the operation of Aurora. Nevertheless, Aurora continued to refine its operations to reduce the impact of external shocks, and the overall profit declined slightly in 2021. The following is a summary of the results of operations in 2021 and the plan for 2022:

a. 2021 Operating Results

1) Business Results

The Consolidated Operating Revenue in 2021 is NT$ (the same below) 13,577,257 thousand, the Net Income After Taxes Attributable to the parent company is NT$1,391,539 thousand, and the After-tax Profit per share is NT$6.19. The two-year profit and loss comparison is as follows:

Unit: NT$ thousand
Increase
(Decrease)
Growth Rate
626,283
5%
110,516
3%
(46,770)
-3%
(0.21)
-		 Unit: NT$ thousand
Increase
(Decrease)
Growth Rate
626,283
5%
110,516
3%
(46,770)
-3%
(0.21)
-
Item\ Year Year 2021 Year 2020 Increase
(Decrease)		 Growth Rate
Operating
Revenue		 Consolidated 13,577,257 12,950,974 626,283 5%
Parent
companyonly		 3,285,129 3,174,613 110,516 3%
Net Profit After Tax
(Attributable to the parent
company)		 1,391,539 1,438,309 (46,770) -3%
Earnings Per Share After
Tax NT$		 6.19 6.40 (0.21) -

In terms of the consolidated financial structure, the current ratio of 152% and the ratio of liabilities (as a percentage of assets) of 51% are sound.

  • 2) Review of Operating Performance

The Company's main operating results for 2021 include:

  • The OA and furniture businesses in both Mainland China and Taiwan have all reported profitable growth.

  • Aurora Cloud Technologies in Taiwan and National Taiwan Normal University have jointly established the "Aurora Cloud AI Human Resources Lab" to help the enterprises

1

to recruit talents accurately.

  • The OA business in Mainland China expanded the A4 machine market, grasped the trend of home office, and the number of units continued to grow.

  • “Activa Lab” opened in Shanghai, providing spatial solutions and intelligent experiences in five office modes, including focus, collaboration, learning, socializing and relaxation.

b. Summary of the 2022 Plan and Developed Strategies

  • 1) Prediction of Impact from External Competition and Overall Business Environment and Countermeasures

Major institutions, including the Directorate General of Budget, Accounting and Statistics, Executive Yuan, are all expected to maintain overall domestic economic growth in 2022, but there are still many variables internationally. In response to inflationary pressures, monetary policies in various countries will enter a cycle of tightening interest rates, and the military concerns of regional conflicts will also significantly increase political risks, which will affect the overall economic environment. Regardless of the external climate, Aurora will continue to refine its operations to meet the challenges. In addition, the coronavirus pandemic has accelerated the digital transformation of enterprises, and the continuous wave of ESG has also driven enterprises to accelerate the low-carbon transformation, which are opportunities for Aurora to develop. To this end, we focus on the office industry market, combining tools and technologies such as big data, AI artificial intelligence, IoT (Internet of Things) to enhance the digitization and intelligence of goods, services and solutions. We also incorporate the ESG philosophy into our business processes and business models to help customers save energy and reduce carbon, create an environmentally friendly, healthy, intelligent and efficient office environment, thereby creating differences between Aurora and the industry, and continuously strengthening our overall competitiveness.

  • 2) Development Strategies for Each Segment

  • a) OA business: Committed to being the leader in the overall solution of the office space, providing customers with an efficient, innovative and intelligent office environment.

    • i. Create an efficient office scenario with printing equipment (A3/A4/PP machines, etc.) as the core of the solution.

    • ii. Create an innovative service capabilities centered on IoT, cloud, and remote service platforms.

    • iii. Create intelligent meeting solutions centered on smart screens, cloud video, and meeting control systems.

2

  • iv. Create a zero-touch intelligent management (ZTSM) platform centered on cloud talent, facial recognition, and AI interviews.

  • b) Furniture business: Adhering to the belief that “Better Work Better Life”, we strive to become a leader in high-end office space solutions.

  • i. Combining Activa's agile philosophy and customer demand-driven development of trending merchandise and smart spatial solutions to deliver a healthy and wonderful work experience for customers.

  • ii. Give full play to the advantages of the brand, strengthen the competitiveness of directsale, distribution and e-commerce channels, and accelerate the development of new medical and educational furniture products, optimize the product portfolio, and expanding the scale of operations. Increase the gap with other industries.

  • iii. From product design and development, manufacturing, distribution, assembly, intelligent and environmentally friendly craftsmanship and processes, combined with high-quality suppliers, to achieve synergy and create a green ecosystem in the industry.

c. Conclusion

Despite the unfavorable circumstances of the COVID-19 pandemic in 2021, with the support of our shareholders and the efforts of our colleagues, we have delivered the stable profits and accumulated a more solid operating base. In recent years, ESG has become a criterion for sustainable business. The business philosophy of Aurora is "Customer satisfaction, Associate Contentment, Business Attainment, Pursue Sustainable Business", which includes the overall content of ESG sustainability. Looking forward to 2022, the Company will continue to do a great job in ESG forward-looking planning, formulate and implement concrete action plans, create higher value for shareholders, customers, colleagues, and society, make good use of corporate social responsibility, exert positive influence, and implement the business philosophy and ESG sustainability.

Chairman of the Board:

3

2. Company Profile

a. Date of Establishment:

The Company was founded in October 1965 and its main business is the sale of office equipment and furniture. In addition to providing the sales and services of various famous branded products, it also has its own branded "Aurora" products to meet the customer needs, increase the opportunity to renew products, establish brand loyalty, and lay the foundation for the enterprise's pursuit of sustainable business.

b. Company History

  1. Aurora Corporation was Founded

  2.  First introduction of electronic photocopiers

  3. Officially activate the Enterprise Identification System

  4. 1971 Issued the Aurora Monthly

  5. Implemented the Profit Center System branch-wide

  6. On the 20th anniversary of the establishment, the corporate logo symbolizing sustainable management was launched, and a new corporate identification system (CIS) was established.

  7. 1990 Established Office Furniture Division and its own brand "AURORA" won the National Excellent Brand Award

  8. 1991 the Company's stock was listed

  9. 1995 Established the "Aurora Office Parks" in Jiading, Shanghai

  10. 1997 Established Aurora Communication Chain Store to expand the distribution channels

  11. 1999 Changed the classification of securities trading from department stores to electronics

  12. 2000 Reinvested Aurora Office Furniture Co., Ltd. Shanghai (Aurora Furniture) from Aurora Office Equipment Co., Ltd. Shanghai

  13. 2003 Reinvested to establish Aurora Office Automation Sales Co., Ltd. Shanghai

  15. 2006 Reinvested and established Aurora Telecom Co., Ltd.

  16. In October, the trademark “Aurora” was awarded the “China Famous Trademark” in Mainland China.

  17. 2009 Merged Aurora System Co., Ltd. and Heng Rong Industry Co., Ltd.

  18. 2010 Participated in the Shanghai World Expo and became the first Taiwanese company to build its own pavilion in the World Expo in 160 years

  19. 2011 Was the first furniture brand to be entitled the "High-tech Enterprises" in China

  20. 2012  Aurora Museum preview, and "Bvlgari 125 Year Italian Classic Design Art Exhibition" tour exhibition in four major cities around the world

  21. Joint venture with Fursys Group of Korea to establish Sidiz Furniture Co., Ltd.

  22. 2013  Collaborated with the Industrial Technology Research Institute to publish the proprietary brand "Aurora 3D Printing Machine" and officially entered the Taiwan 3D printing market, becoming the only industry with 2D and 3D marketing channels; Mainland China cooperated with Stratasys, the leading 3D printing brand, to take inspiration from the series of China's general agency rights

  23. Aurora was selected as the "8th Asian Branding Ceremony" Three Awards: China's Top 10 Most Investment Value Brands, China's Top 10 Innovative Brands and Asian Brand

4

Management Excellence

  • Shanghai Aurora OA won the "8th Best Customer Service in China" three awards: China Best After-sales Service Award, China Best Service Management Award and China Best Customer Service Center Award

  • 2014  Established the Cloud Service Division and officially launched the "Aurora Cloud Office Cloud" to create a new field

In October, the Company took the share in the General Integration Technology Co., Ltd., and began to attack the 3D printing market both in Mainland China and Taiwan.

Aurora 3D printer - F1, Aurora office furniture - Yuzhihua executive desk and PLANE won the 23rd Taiwan Excellence Award

  • Aurora 3D printer F1 won the "Top 100 Innovative Product Award" in the Information Technology Month

  • Aurora won three awards from Jiading New Town, Shanghai: Best Contribution Award, Best Charity Award, Best Innovation Award

  • Aurora furniture won the 7th Shanghai Science and Technology Enterprise Innovation Award

  • Aurora won the 9th China Best Customer Service Award: China Best Customer Service Award, China Best Service Management Award, China Best After-sales Service Award, China Best Customer Service Center Award

  • Won the 2013 China Top 30 Shanghai Employers of the Year

  • Aurora's digital multi-functional machine was awarded a well-known trademark in China again, becoming a "Double-Power" enterprise with both furniture and OA categories

  • Aurora Furniture has once again passed the qualification certification of "High-tech Enterprise"

  • 2015 Aurora Group set up the "Good Faith Award" in 2015 to recognize the outstanding social institutions and provide long-term stable resources

  • The 3D printer F1 is stationed in the "Taiwan Boutique Hall", and also is stationed in the exhibition areas at various high-speed railway stations and airports

  • Aurora Group won the first "Cross-Straits Excellence in Service Enterprise Award"

  • 2016 Aurora Group established the Cross-Straits 3D medical platform with China Medical University (Taiwan) and Shanghai Jiao Tong University

  • Established Aurora Cloud Printing Co., Ltd. in Shanghai to build an enterprise business-level printing service experts

  • The Aurora Group won the 2016 "Cross-Straits Excellence Award"

  • Established "Ever Young BioDimension Corporation" with the China Medical University (Taiwan) system to provide 3D digital medical services

  • Joined hands with Japan's Konica Minolta Co., Ltd. to establish "KM Developing Solutions co., ltd." to attack the high-end printing market

  • Aurora OA of Mainland China won the 2016 "Design Service Special Contribution Award", "Annual Product Award", "Technology Video Annual Ceremony Maker's Choice Award"

  • 2017  Established "Aurora Cloud Technology Co., Ltd" in Shanghai, entered the Internet industry depending on the "Aurora Cloud Business Internet" platform

5

  • Aurora OA of Mainland China won the "National Brand Cultivation Demonstration Enterprise", "After-sales Service Certificate Five Stars", "National Office Furniture Top Brands Top10", "Quality Workplace Evaluation Growth Winning Award of China Business News"

  • Aurora OA of Mainland China won the "Enterprise Credit AAA Certificate"

  • Cooperated with Hon Hai Technology Group (Foxconn ® ) to create a communication "O2O Composite Channel"

  • Aurora Office Automation Corporation and Aurora Corporation of Aurora Group won the "Business Operator Introduction Electronic Invoice" award

  • "Ever Young BioDimension Corporation" signed a contract with the international giant "Materialise" to introduce the world's advanced Mimics 3D medical design solutions and course certification, becoming the only service model in Taiwan that provides course training, professional certification, and software and hardware by 3-IN-ONE mode

  • 2018

  • AURORA x ESTEL Dual-brand flagship showroom opens

  • Signed strategic cooperation with 3D brand Nano Dimension & Mcor to develop 3D printing application market

  • Aurora OA of Mainland China won the 2018 "Five-star After-sales Service Certification

  • Aurora Furniture "UP! Lifting Table" won the Outstanding Work Award and "Inpower" won the Red Star Award

  • All products of Aurora furniture have passed the GREENGUARD world authoritative indoor air quality certification test

  • 2019  Aurora Health Care medical furniture was launched to create a comfortable medical environment

  • Opening of the Shanghai "Aurora Office Life Flagship Exhibition Hall" to create an efficient, humane, intelligent and environmentally friendly office life solution for customers

  • Aurora Furniture was awarded the title of "China National Furniture Industry Leading Enterprise" by the China National Furniture Association

  • Aurora Furniture was invited to participate the 2019 World Industrial Design Conference and won the "Innovative Enterprises TIA Top 10" and "Innovative Design Awards TIA Top 10"

  • Aurora Group won three awards in the "9th National After-sales Service Evaluation, "National After-sales Service Enterprises Top -10", "National After-sales Service Industry Enterprises Top -10", and "National Brands for Customer Satisfaction Top -10"

  • Aurora Furniture "UP! Lifting Table" won the 28th Taiwan Excellence Award

  • Aurora 3D teamed up with Nano Dimension to set up "Aurora 3D Experience Center" in the Science and Technology Park "Wisdom Bay" in Mainland China

  • The Aurora OA "Mobile Customer Service" APP was launched to provide the intelligent and efficient services and create the value for customers

  • 2020  Issued the 13th edition of the "Aurora Business Philosophy", adhere to the service belief of "Customer First", create the value for customers and satisfy the customers.

6

  • "Aurora Cloud Technology Co., Ltd" cooperated with the Human Resources Department of the National Central University to cultivate the digital human resources professionals for future through teaching and introduction of the human resources cloud system, so that students can experience the application of human resources digital technology in advance.

  • The Aurora Jiangsu Smart Industrial Park started construction, moving towards smart manufacturing, providing customers with a full range of smart office space solutions.

  • Aurora Children's Furniture - Won the "2019 Ergonomic Industry Outstanding Contribution Award".

  • Aurora Furniture won the title of "The 8th China Hospital Furniture Suppliers for Hospital Construction Top 10".

  • The "CoLink" collaborative series of furniture won the China Design and Intelligent Manufacturing Award.

  • Aurora Furniture won the honors of Leading Brands of China Office Furniture "Top Ten", "Green Furniture Brands "Top Ten in China" and "Comprehensive Strengths of China Furniture Suppliers Top 100 " in 2019-2020.

  • 2021  Expanded the scope of services, "Aurora Office Furniture" was renamed as "Aurora Furniture"

  • Aurora Furniture's "Mobile Customer Service" APP was launched, Opened Zero Contact Service for epidemic prevention, and enhanced user experience

  • "Aurora Cloud Technology Co., Ltd" and National Taiwan Normal University have jointly established the "Aurora Cloud AI Human Resources Laboratory" to assist enterprises in finding the talents accurately

  • Aurora Furniture Puffy won the “The Magnolia Award”, Shanghai Design Innovation Product Excellence Award

  • Aurora Furniture won the "Brand Communication Contribution Award" and "Love and Dedication to Public Welfare Award"

  • The “Activa lab” mobile office laboratory for furniture was opened

  • Aurora home furnishing brand was officially established, Aurora began to enter the field of children's home furnishing

7

3. Corporate Governance Report

a. Organizational System:

Organizational System of Aurora Corporation

1) Organizational Structure

Effective Date: January 1, 2022

==> picture [340 x 263] intentionally omitted <==

2) Operations by Major Departments

Divisions Functions
Office of the Board Responsible for arranging meetings, handling important matters, and
receiving guests.
Auditing Office Responsible for implementing the internal audit system.
Office Equipment
Division		 Responsible for selling, leasing, and maintaining office equipment.
Software + Hardware Integration Solutions, 3D Integration Solutions
Services.
Furniture Division Responsible for researching and developing and selling office furniture
and offeringintegratedplanningand service.
Cloud Service Division Responsible for selling cloud systems and offering consulting service.
Legal Affairs Office Responsible for preventing and managing corporate governance risks and
maintainingcompanyinterests.
Human Resources
Office		 Responsible for establishing and implementing human resources
development policies and employee development plans.

8

Divisions Functions
Finance Office Financial system establishment and control, fiscal operations, business
analysis, fund management, share operations and
Investor Relations and other services.
IT Office Responsible for drawing up information policies, maintaining information
systems, and ensuringinformation security.
Marketing Office The Group's brand image, official website, digital marketing strategy
planningand execution, andpublic service.
Administration Office Management of the Group's administrative management, procurement, real
estate, logistics and warehousing.

9

b. Directors, General Managers, Heads of Departments and Branch Organizations Information:

1) Directors

Directors' Data (I)

April 11, 2022

Title Nationality/
Place of		 Name Gender
 Date of
Election		 Term
Date First
 Shareholding When Elected Shareholding When Elected Current Shareholding Current Shareholding Spouse & Minor
Shareholding		 Spouse & Minor
Shareholding		 Shares Held in Others'
Names		 Shares Held in Others'
Names		 Education
and Work		 Positions Concurrently Held in
the Company and Other		 Executives, Directors or
Supervisors who Are Spouses or
within the Second Degree of
Kinship		 Executives, Directors or
Supervisors who Are Spouses or
within the Second Degree of
Kinship		 Executives, Directors or
Supervisors who Are Spouses or
within the Second Degree of
Kinship		 Remark

Registration		 Age
(Appointment)
Elected		 Number of
Shares		 Shareholding
Ratio (%)		 Number of
Shares		 Shareholding
Ratio (%)		 Number of
Shares		 Shareholding
Ratio (%)		 Number
of
Shares		 Shareholding
Ratio (%)
Experience
Companies		 Job Title Name Relationship
Chairman R.O.C. Yuan Hui-Hua Female
51~60
2019.6.12		 3
years		 2010.06.25
1,169,000
0.49		 1,184,000
0.50		 21,269,000
9.00
0
0.00
Director of
Aurora
Corporation		 Director of Aurora Telecom
Director		 Chen
Yung-tai
Spouse		 -
Co., Ltd.
Director of KM Developing
Solutions co., ltd.
Director of Ever Young
Biodimension Corporation
Director of General Integration
Technology Co., Ltd.
Director of Aurora
International Co., Ltd.
Chairman of the Board of
Aurora (Bermuda) Investment
Ltd.
Chairman of Aurora (China)
Investment Co., Ltd.
Chairman of Aurora (China)
Co., Ltd.
Chairman, Aurora Office
Equipment Co., Ltd. Shanghai

Chairman, Aurora Office

Automation Sales Co., Ltd.
Shanghai
Director of Aurora
International Building
(Shanghai) Co., Ltd.
Chairman of Aurora Building
Management (Shanghai) Co.,
Ltd.
Chairman of Aurora Museum
(Shanghai) Co., Ltd.
Director of Huxen（China）Co.,
Ltd.
Director of Aurora Machinery
Equipment (Shanghai) Co.,
Ltd.
Chairman of Aurora (Shanghai)
E-Commerce Co., Ltd.
Chairman of Aurora (Shanghai)
Intelligent Equipment Co., Ltd.
Director of Aurora Cloud
(Shanghai) Technology Co.,
Ltd.

10

Title Nationality/
Place of		 Name Gender
 Date of
Election
Term
Date First
 Shareholding When Elected Shareholding When Elected Current Shareholding Current Shareholding Spouse & Minor
Shareholding		 Spouse & Minor
Shareholding		 Shares Held in Others'
Names		 Shares Held in Others'
Names		 Education
and Work		 Positions Concurrently Held in
the Company and Other		 Executives, Directors or
Supervisors who Are Spouses or
within the Second Degree of
Kinship		 Executives, Directors or
Supervisors who Are Spouses or
within the Second Degree of
Kinship		 Executives, Directors or
Supervisors who Are Spouses or
within the Second Degree of
Kinship		 Remark

Registration		 Age
(Appointment)
Elected		 Number of
Shares		 Shareholding
Ratio (%)		 Number of
Shares		 Shareholding
Ratio (%)		 Number of
Shares		 Shareholding
Ratio (%)		 Number
of
Shares		 Shareholding
Ratio (%)
Experience
Companies		 Job Title Name Relationship
Director of Sidiz Furniture Co.,
Ltd.
Chairman of Aurora (Jiangsu)
Enterprise Development Co.,
Ltd.
Director Republic of
China
Chen Yung-tai		 Male
81~90		 2019.6.12 3
years		 1989.12.15
21,134,000
8.95		 21,269,000
9.00
1,184,000
0.50
0
0.00
Chairman
of
the
Board
of
Directors of
Aurora
Corporation


Chairman of Aurora
International Co., Ltd.
Director of Aurora (Bermuda)
Investment Ltd.
Director of Aurora (China)
Investment Co., Ltd.
Director of Aurora (China) Co.,
Ltd.
Director, Aurora Office
Automation Sales Co., Ltd.
Shanghai
Director, Aurora Office
Equipment Co., Ltd. Shanghai
Chairman of Aurora
International Building
(Shanghai) Co., Ltd.
Director of Aurora Building
Management (Shanghai) Co.,
Ltd.
Director of Aurora Museum
(Shanghai)Co.,Ltd.		 Director
Yuan
Hui-Hua		 Spouse -
Director Republic of
China
Aurora
Holdings
Incorporated		 - 2019.6.12 3
years		 1989.12.15 103,154,312
43.67		 101,856,312
43.12
0
0.00
0
0.00
-		 - - - - -
R.O.C. Representative:
Rai Hau-Min
Male
81~90		 2019.6.12 3
years		 1989.12.15
0
0.07		 185,816
0.08
182,921
0.08
0
0.00
Chief
Justice and
President of
Judicial
Yuan

Director of Aurora Corporation
Director Republic of
China
Ma Chih-Hsien		 Male
51~60		 2019.6.12 3
years		 2014.08.06
0
0.00		 3,000
0.00
0
0.00
0
0.00
Chairman
of KM
Developing
Solutions
co.,ltd.		 Corporate Governance officer,
Aurora Corporation
Chairman of KM Developing
Solutions co., ltd.		 - - - -
Independent
Director		 Republic of
China
Liao Kuo-Jung		 Male
71~80		 2019.6.12 3
years		 2010.10.12
0
0.00		 0
0.00
0
0.00
0
0.00
Chairman
of TSEC
Corporation		 Chairman of TSEC
Corporation		 - - - -
Independent
Director		 Republic of
China
Hwa
Yueh-Jiuan		 Female
61~70
2019.6.12		 3
years		 2017.06.08
0
0.00		 0
0.00
0
0.00
0
0.00
President,
Waters
Consulting
Inc.		 General Manager of Robert
Walters Taiwan		 - - - -
Independent
Director		 Republic of
China
Hsu
Wen-Chung		 Male
61~70		 2019.6.12 3
years		 2018.06.12
0
0.00		 0
0.00
0
0.00
0
0.00
Chairman
of Huxen
Corporation		 Independent director of Aurora
Corporation		 - - - -

Note 1. Director Chen Yung-tai as a director from November 28, 2000 to June 19, 2002.

Note 2. Director Lai Hao-min as a director from November 9, 2009 to December 31, 2016.

Note 3. The Company set up the Audit Committee to replace the Supervisor on July 7, 2017.

Note 4. Director Ma Chih-Hsien ceased serving as a director from 7.10.2016 to 11.6.2019; became corporate Governance officer since 10.11.2020.

11

Table 1: Major shareholders of legal person shareholders

April 11, 2022
Major Shareholder
Percentage of
Ownership
Chen Yung-tai
23%
Y.T.Chen Sustainable Management Foundation
1.8%
Y.T.Chen Foundation
5.2%
Y.T.Chen Charitable Trust
30%
Chan Mengkam Foundation
10%
Yuan Hui-Hua
10%
Nison International Investment Management Co
Ltd
20%		 April 11, 2022
Major Shareholder
Percentage of
Ownership
Chen Yung-tai
23%
Y.T.Chen Sustainable Management Foundation
1.8%
Y.T.Chen Foundation
5.2%
Y.T.Chen Charitable Trust
30%
Chan Mengkam Foundation
10%
Yuan Hui-Hua
10%
Nison International Investment Management Co
Ltd
20%
Name of Institutional Percentage of
Major Shareholder
Shareholder Ownership
Aurora Holdings Incorporated Chen Yung-tai 23%
Y.T.Chen Sustainable Management Foundation 1.8%
Y.T.Chen Foundation 5.2%
Y.T.Chen Charitable Trust 30%
Chan Mengkam Foundation 10%
Yuan Hui-Hua 10%
Nison International Investment Management Co
Ltd
20%

Table 2: The major shareholders in Table 1 are legal persons and their major shareholders

April 11, 2022
Percentage of
Ownership
Not applicable
Not applicable
Not applicable
Not applicable
99.87%
0.13%
Name of legal entity Percentage of
Major shareholders of legal entity shareholder
shareholder Ownership
Y.T.Chen Sustainable
Management Foundation		 N/A Not applicable
Y.T.Chen Foundation N/A Not applicable
Y.T.Chen Charitable Trust N/A Not applicable
D.J. Chen Foundation N/A Not applicable
Nison International
Investment Management Co
Ltd		 Yuan Hui-Hua 99.87%
Yuan Tzu-Pin 0.13%

12

Directors' Information (II)

  1. Disclosure of information on professional qualifications of directors and supervisors and independence of independent directors:
April 11, 2022 April 11, 2022
Qualifications Concurrently
serves as
Independent
Professional Qualification and Work
Independence Status Director for
Experience
multiple other
publicly-listed
Name companies
Yuan Hui-Hua  More than five years of work
experience required for commercial,
financial and corporate business
 There is no situation related to
Article 30 of the CompanyLaw		 0
Chen Yung-tai  More than five years of work
experience required for commercial,
financial and corporate business
 There is no situation related to
Article30of theCompanyLaw		 0
Aurora
Holdings
Incorporated
Representative:
Rai Hau-Min		  More than five years of work
experience required for legal and
corporate business
 Former Chairman of the Central
Election Commission, Chief Justice
and President of Judicial Yuan
 There is no situation related to
Article30of theCompanyLaw		 0
Ma Chih-Hsien  More than five years of work
experience required for commercial,
financial and corporate business
 There is no situation related to
Article 30 of the CompanyLaw		 0
Liao Kuo-Jung  More than five years of work
experience required for commercial,
financial and corporate business
 Members of the board of the other
listed companies
 There is no situation related to
Article 30 of the Company Law
 Relatives, including the
independent director himself, his
spouse, the second degree of
Kinship, etc., do not serve as
directors, supervisors or
employees of the company or its
affiliated companies, and there is
no independent director
establishment of a public offering
company and matters to be
followed Article 3 Paragraph 1
The matters stipulated in this
article are in line with
independence.
 The person himself, spouse and
minor children hold 0 shares of
the Company.
0
Hwa Yueh-Jiuan  More than five years of work
experience required bybusiness and		  Relatives, including the
independent director himself,his		 0

13

Qualifications Concurrently
serves as
Independent
Professional Qualification and Work
Independence Status Director for
Experience
multiple other
publicly-listed
Name companies
company
 There is no situation related to
Article 30 of the Company Law		 spouse, the second degree of
Kinship, etc., do not serve as
directors, supervisors or
employees of the company or its
affiliated companies, and there is
no independent director
establishment of a public offering
company and matters to be
followed Article 3 Paragraph 1
The matters stipulated in this
article are in line with
independence.
 The person himself, spouse and
minor children hold 0 shares of
the Company.
Hsu Wen-Chung
 More than five years of work
experience required by business and
company
 There is no situation related to
Article 30 of the Company Law		  Relatives, including the
independent director himself, his
spouse, the second degree of
Kinship, etc., do not serve as
directors, supervisors or
employees of the company or its
affiliated companies, and there is
no independent director
establishment of a public offering
company and matters to be
followed Article 3 Paragraph 1
The matters stipulated in this
article are in line with
independence.
 The person himself, spouse and
minor children hold 0 shares of
the Company.
0

2. Board Diversity and Independence:

 Board Diversity:

  • (1) The directors of the Company have different expertise in various fields and are of some assistance to the development and operation of the Company. Please refer to the "Diversity of Board Members" in this Annual Report (Schedule 1, Page 36).

  • (2) The current board of directors of the Company consists of seven directors, including four directors and three independent directors, two of whom are women and occupy approximately 29% of the total number of director seats. The ages of directors are, respectively, 2 under the age of 60, 3 between the ages of 60 and 80, and 2 over the age of 80. The Company pays attention to the gender equality of the composition of the board of directors, and the ratio of female directors is targeted at more than 40%. It is

14

expected that one female director will be added to the board of directors in the future to achieve the goal.

  • (3) The Board of Directors discloses the proposed diversification of the membership policy on the Company's website and public information observatory.

  • Board Independence:

  • (1) The Company currently has 3 independent directors, accounting for about 43% of the total number of director seats. The independent directors are all appointed for a term of 4 ~ 6 years.

  • (2) None of the members of the board of directors have any kinship including spouses and the second degree of kinship, and are independent.

15

2) General Manager, Department and Branch Supervisor Information

April 11, 2022

Managerial Officer who Managerial Officer who Managerial Officer who
Shares Held by
Shares Held in Are Spouses or within
Shareholding Spouse and Minor Position
Date of Others' Names Education and the Second Degree of
Children Held with
Job Title Nationality
Name		 Gender Election Work Kinship Remark
Other
(Appointment)
Number
Number
Number		 Experience
Job
Title

Shareholding
Shareholding
Shareholding		 Companies
of
of
of
Name
Relationship
Ratio (%) Ratio (%) Ratio (%)
Shares Shares Shares
President, Office
Equipment
Division		 R.O.C. Chou
Ming-Chung		 Male 2017.08.10 10,484
0.00
0
0.00
0
0.00
Division
General
Manager of
Aurora Group		 None － － － －
General Manager,
Furniture Division		 R.O.C. You
Yan-Lin		 Male 2017.08.10 19,000
0.01
2,000
0.00
0
0.00
Division
General
Manager of
Aurora Group		 None － － － －
General Manager
of Cloud Service
Division		 R.O.C. Lin
Chin-Pao		 Male 2019.09.03 0
0.00
0
0.00
0
0.00
Division
General
Manager of
Aurora Group		 None － － － －
Senior Manager of
Finance Office		 R.O.C. Lin Ya-Ling Female 2018.03.06 3,500
0.00		 12,076
0.01
0
0.00
Senior Manager
of Aurora
Group		 None － － － －

16

c. Remuneration of directors and general manager

1) Director

Remuneration of the General Directors and Independent Directors in 2021

Unit: NT$,000

Job Title Name Remuneration Paid to Dire
Remuneration (A)
Retirement Pension (B)
Director's
All
All		 Remuneration Paid to Dire
Remuneration (A)
Retirement Pension (B)
Director's
All
All		 Remuneration Paid to Dire
Remuneration (A)
Retirement Pension (B)
Director's
All
All		 Remuneration Paid to Dire
Remuneration (A)
Retirement Pension (B)
Director's
All
All		 Remuneration Paid to Dire
Remuneration (A)
Retirement Pension (B)
Director's
All
All		 ctors
Remuneration
(C)
All		 Business Execution Cost
(D)
All		 Percentage of the total
amount of A, B, C and D
and other four items in
the Net Profit After Tax
(%)
All		 Percentage of the total
amount of A, B, C and D
and other four items in
the Net Profit After Tax
(%)
All



Salary, bo
expen		 Relevant Rem
nus and special
ses, etc. (E)
All		 uneration R
Retireme		 eceived byDire
nt Pension (F)
All		 ctors who Are Also Employees
Employee compensation (G)

All Companies in
 ctors who Are Also Employees
Employee compensation (G)

All Companies in
 ctors who Are Also Employees
Employee compensation (G)

All Companies in
 ctors who Are Also Employees
Employee compensation (G)

All Companies in


Remuneration
from Invested
Companies Other
than Subsidiaries
Percentage of total amount
of A, B, C, D, E, F and G
and other seven items in
Net Income After Tax (%)
All
The
Company
Companies in
Consolidated
Financial
Statements		 The
Company
Companies in
Consolidated
Financial
Statements		 The
Company
Companies in
Consolidated
Financial
Statements		 The
Company
Companies in
Consolidated
Financial
Statements		 The
Company
Companies in
Consolidated
Financial
Statements		 The
Company
Companies in
Consolidated
Financial
Statements		 The
Company
Companies in
Consolidated
Financial
Statements		 The Company
Cash
Amount
(note1:)
Stock		 Consolidated
Financial Statements
Cash
Amount
(note1:)
Stock
Amount		 The
Company
Companies in
Consolidated
Financial
Statements
or the Parent
Company
Chairman Yuan Hui-Hua 4,217
4,217
0
0
0
0
2,400
2,400
6,617
/0.48

6,617
/0.48
644
4,204
0
0
0
0
2,672
0
7,261
/0.52

13,493
/0.97

None
Director Chen Yung-tai
Director Aurora Holdings Incorporated
Representative: Rai Hau-Min
Director Ma Chih-Hsien
Independent
Director		 Liao Kuo-Jung 0
0
0
0
0
0
3,600
3,600
3,600
/0.26

3,600
/0.26

0
0
0
0
0
0
0
0
3,600
/0.26

3,600
/0.26

None
Independent
Director		 Hwa Yueh-Jiuan
Independent
Director		 Hsu Wen-Chung
1. Please clarify the remuneration payment policy, sy
According to the Articles of Incorporation, remun
2. In addition to the disclosures in the above table, th
etc.): None.		 stem, standards and structure of independent directors, and
eration paid to the Chairman and directors shall be determi
e remuneration received for services rendered by the direc		 clarify the correlation b
ned by the Board of Dire
tors of the Company in t		 etween the a
ctors based o
he most recen		 mount of remuneration paid based
n the degree of their participation i
t year (such as acting as an adviser		 on the responsibilities, risks, investment time and other factors:
n and contributions to the business operations of Aurora, as well as industry standards at home and abroad.
to non-affiliated employees of the parent company/all companies/reinvestment undertakings in the Financial Report,

Note: Employee compensation for 2021 is allocated only to the Board of Directors through the proposed allocation.

17

Range of Remuneration

Name of Director Name of Director Name of Director Name of Director
Total amount of the above seven remunerations (A + B + C + D +
Total amount of the above four remunerations (A+B+C+D)
Range of Remuneration Paid to Directors E + F + G)
All Companies in Consolidated All Companies in Consolidated
The Company The Company
Financial Statements Financial Statements
Less than NT$1,000,000 Chen Yung-tai, Ma Chih-Hsien,
Aurora Holdings Incorporated		 Chen Yung-tai, Ma Chih-Hsien,
Aurora Holdings Incorporated		 Chen Yung-tai, Ma Chih-Hsien,
Aurora Holdings Incorporated		 Chen Yung-tai,
Aurora Holdings Incorporated
NT$1,000,000 (inclusive) ~ NT$2,000,000 (exclusive) Rai Hau-Min, Liao Kuo-Jung,
Hwa Yueh-Jiuan, and Hsu
Wen-Chung		 Rai Hau-Min, Liao Kuo-Jung,
Hwa Yueh-Jiuan, and Hsu
Wen-Chung		 Rai Hau-Min, Liao Kuo-Jung,
Hwa Yueh-Jiuan, and Hsu
Wen-Chung		 Rai Hau-Min, Liao Kuo-Jung,
Hwa Yueh-Jiuan, and Hsu
Wen-Chung
NT$2,000,000(including)~ NT$3,500,000(excluding) － － － Ma Chih-Hsien
NT$ 3,500,000(inclusive)~ NT$ 5,000,000(exclusive) － － － －
NT$5,000,000(inclusive)~ NT$10,000,000(exclusive) Yuan Hui-Hua Yuan Hui-Hua Yuan Hui-Hua Yuan Hui-Hua
NT$ 10,000,000(inclusive)~ NT$ 15,000,000(exclusive) － － － －
NT$ 15,000,000(inclusive)~ NT$ 30,000,000(exclusive) － － － －
NT$30,000,000(including)~ NT$ 50,000,000(excluding) － － － －
NT$50,000,000 NT$(including)~ NT$100,000,000(excluding) － － － －
More than NT$ 100,000,000 － － － －
Total 8 in total 8 in total 8 in total 8 in total

18

2) General Manager

Remuneration of the General Manager for the year 2021

Unit: NT$ thousand

Percentage of the total Percentage of the total
amount of A, B, C and
Retirement Pension Bonuses and special Employee Compensation
Salary (A) D and other four items
(B) expenses, etc. (C) Amount (D) Remuneration
in the net profit after
from Invested
tax(%)
Companies
All Ci i
Job Title Name All All the All ompanes n All Other than
li
Companies companies Companies The Company
Consodated		 Companies Subsidiaries

Fiil
The in The mentioned
The		 in nanca The in or the Parent
Company Consolidated Company in the Company Consolidated Statements Company
Consolidated		 Company
Cash Cash
Financial Financial Financial Financial
amount
Stock
amount		 Stock
Statements Report Statements Statements
(Note) (Note)
General Manager Chou Ming-Chung 4,923
7,158
0
0
0
0		 4,275
0
4,709
0
9,198
/0.66		 11.867
/0.85		 None
General Manager
You Yan-Lin
General Manager
Lin Chin-Pao

Note: Employee compensation for 2021 is allocated only to the Board of Directors through the proposed allocation.

Range of Remuneration

Name of General Manager Name of General Manager
payment of remuneration to each General Manager of the Company
TheCompany AllCompanies inConsolidated FinancialStatements
Less than NT$1,000,000 － －
NT$1,000,000 (inclusive)~NT$2,000,000 (exclusive) LinChin-Pao LinChin-Pao
NT$2,000,000(including)~ NT$3,500,000(excluding) You Yan-Lin You Yan-Lin
NT$ 3,500,000 (inclusive)~NT$ 5,000,000 (exclusive) Chou Ming-Chung Chou Ming-Chung
NT$ 5,000,000(inclusive)~ NT$ 10,000,000(exclusive) － －
NT$10,000,000(inclusive)~ NT$15,000,000(exclusive) － －
NT$ 15,000,000(inclusive)~ NT$ 30,000,000(exclusive) － －
NT$30,000,000(including)~ NT$50,000,000(excluding) － －
NT$50,000,000 NT$ (including)~ NT$100,000,000(excluding) － －
More than NT$ 100,000,000 － －
Total 3in total 3in total

19

3) Name of manager and allocation of employee remuneration

December 31, 2021

Unit: NT$ thousand

Ratio of Total
Job Title Name Stock Cash Total Amount to Net
Income(%)
Managerial
Officers		 President Chou
Ming-Chung		 0 5,069 5,069 0.36
President You Yan-Lin
President Lin Chin-Pao
Senior Manager Lin Ya-Ling

Note: Employee compensation for 2021 is allocated only to the Board of Directors through the proposed allocation.

  • 4) Analysis of the ratio of the total remuneration paid to directors and general managers of the Company in the last two years to the net income after tax of individual financial statements of the Company and all companies in the consolidated statements, and explanation of the policies, standards and combinations for the payment of remuneration, the procedures for determining remuneration, and the correlation with operating results and future risks:

  • a) Analysis of the proportion of the total remuneration paid to the Directors and General Managers of the company in the last two years to the Net Profit After Tax of the individual Financial Report:

Ratio of Total Remuneration Paid to
Directors to Net Income		 Ratio of Total Remuneration Paid to
Directors to Net Income		 Percentage Of Total Manager's
Remuneration In Net Income After
Tax		 Percentage Of Total Manager's
Remuneration In Net Income After
Tax
The Company All Companies in
Consolidated
Financial Statements		 The Company
All Companies in
Consolidated
Financial Statements
0.75 1.20 0.69 0.69
0.78 1.23 0.66 0.85

b) The Company's Remuneration Policy:

The remuneration paid by the directors of the Company shall be handled in accordance with the relevant provisions of the Articles of Association. The remuneration paid by the general manager shall be approved in accordance with the principles of fairness and equity and the performance of each employee.

  • c) The standard and combination of remuneration paid by the Company:

The payment standards and portfolios of the directors and General Manager of the Company are divided into fixed and variable parts. The fixed remuneration is approved according to the scope of authority and responsibility of the position and the

20

operational objectives of the Company. The variable remuneration is based on the operational performance and contribution achieved. The operating results are shared.

  • d) Procedure for determining the remuneration of the Company:

At Aurora, remuneration is paid appropriately based on the overall operating performance and individual performances and upon approval according to the internal approval rules.

  • e) The correlation between the remuneration fixed by the Company and the operating performance:

Variable remuneration is paid to the directors and President based on the achieved operating performance to align individual performances with the overall operating performance.

21

d. Corporate Governance Operations:

1) The operation of the Board of Directors:

The Board of Directors held 6 meetings in the most recent year (2021), and the attendance

of the Directors was as follows:

Actual
Attendance
Actual Ratio of
Job Title Name Number of Remark
by Proxy Attendance
Attendance
Chairman Yuan Hui-Hua 6 0 100%
Director Chen Yung-tai 6 0 100%
Corporate
Director		 Representative of
Aurora Holdings
Incorporated :
Rai Hau-Min		 6 0 100%
Director Ma Chih-Hsien 6 0 100%
Independent
Director		 Liao Kuo-Jung 6 0 100%
Independent
Director		 Hwa Yueh-Jiuan 6 0 100%
Independent
Director		 Hsu Wen-Chung 6 0 100%
Other mentionable items:
1. In the operation of the Board of Directors, should one of the below situations occur, the board
meeting date, session, content of the resolution, opinions of all independent directors, and the
Company’s response to said opinions shall be recorded:
a.
Matters listed in Article 14.3 of the Securities and Exchange Act:
Meeting of Board
of Directors
Content of Motion and Follow-up		 Article 14-3，
Securities and
Exchange Act
Items Listed		 Independent
directors have
objections or
reservations
The 9th Meeting
of The 11th
Session
2021.03.16		 The Appointment of the Company's Certified
Public Accountant for 2021 and the assessment
of independence .		 None
Independent Directors' Opinion: None.
The Company's treatment of independent directors' opinions: None.
Resolution result: All the directors presented agreed to adopt.
The15th Meeting
of The 11th
Session
2022.03.16		 1.Amendment of the company's " Procedures of
Acquisition or Disposal of Assets ".		 None
2. The Appointment of the Company's Certified
Public Accountant for 2022 and the assessment
of independence .		 None
Independent Directors' Opinion: None.
The Company's treatment of independent directors' opinions: None.
Resolution result: All the directors presented agreed to adopt.
b. In addition to the previously mentioned matters, other matters resolved by the board of
directors with the objection or reservation of independent directors and with a record or
  1. In the operation of the Board of Directors, should one of the below situations occur, the board meeting date, session, content of the resolution, opinions of all independent directors, and the Company’s response to said opinions shall be recorded:
Article 14-3， Independent
Meeting of Board
of Directors		 Content of Motion and Follow-up Securities and
Exchange Act		 directors have
objections or
Items Listed reservations
The Appointment of the Company's Certified
Public Accountant for 2021 and the assessment None
The 9th Meeting
of The 11th
Session		 of independence .
Independent Directors' Opinion: None.
2021.03.16 The Company's treatment of independent directors' opinions: None.
Resolution result: All the directors presented agreed to adopt.
1.Amendment of the company's " Procedures of
Acquisition or Disposal of Assets ".		 None
The15th Meeting 2. The Appointment of the Company's Certified
of The 11th Public Accountant for 2022 and the assessment None
Session of independence .
2022.03.16 Independent Directors' Opinion: None.
The Company's treatment of independent directors' opinions: None.
Resolution result: All the directors presented agreed to adopt.
b. In addition to the previously mentioned matters, other matters resolved by the board of
directors with the objection or reservation of independent directors and with a record or

22

written statement: No such circumstance.

  1. Directors' circumvention of the resolution of interests: no such circumstance.

  2. Assessment of self-assessment (or peer) by the Board of Directors: On November 8, 2019, the Company formulated the “Measures for the Assessment of Performance of the Board of Directors” and the method for its assessment, which is implemented annually by the internal Board of Directors; the performance assessment of the external Board of Directors is implemented at least once every three years by an external professional independent body or a team of external expert scholars. At the end of Year 2021, the Company implemented a performance review for the year, see page 23-24.

  3. The objectives of strengthening the functions of the Board of Directors for the current year and the most recent year (such as establishing the Audit Committee, improving the transparency of information, etc.) and the performance assessment: In order to strengthen the corporate governance, improve the operational effectiveness of the Board of Directors, improve the audit supervision function and strengthen the management function, the Company established the "Audit Committee" on July 7, 2017, the "Remuneration Audit Committee" on December 29, 2011, and the "Corporate Governance Supervisor" on November 10, 2020, who is concurrently responsible for the corporate governance-related matters.

2) Performance of the Board of Directors' appraisal:

Evaluation
Cycle
(Note 1)		 Period of
Assessment
(Note 2)		 Scope of
Assessment
(Note 3)		 Assessment
Method
(Note 4)		 Content
(Note 5)		 Result of Assessment
Once a year 2021/1/1~
2021/12/31		 Board of
Directors		 Self-evaluation
by the Board
Including participation in
the operation of the
company, the quality of the
Board of Directors'
decision making,
composition and structure
of the Board of Directors,
election and continuing
education of the directors,
and internal control.		 The Board of Directors as a
whole was in good operation,
and external experts were
engaged to provide
continuing education for the
directors on a regular basis,
all of which were in
compliance with the relevant
rules and regulations of
corporategovernance.
Board
members		 Self-evaluation
by the directors

Including alignment of the
goals and missions of the
company, awareness of the
duties of a director,
participation in the operation
of the company,
management of internal
relationship and
communication, the
director's professionalism
and continuing education,
and internal control.		 The performance assessment
of the overall directors is in
line with the standards. The
directors have fully expressed
and made suggestions for the
company's various proposals,
and the overall operation
status
Present Still Perfect。
Functional
Committees		 Self-evaluation
by the Board
Including participation in
the operation of the
company, awareness of the
duties of the functional
committee, the quality of
decisions made by the
functional committee,
makeup of the functional
committee and election of
its members, and internal
control.		 The Remuneration
Committee has been in place
to perform its duties
independently. The
Remuneration Committee as
a whole was in good
operation.

Note 1. Indicate the execution period of the Board's appraisal, for example, once a year.

23

  • Note 2. This is the period covered by the board assessment, for example, the performance of the Board of Directors from January 1, 2021 to December 31, 2021.

  • Note 3. The scope of the appraisal includes the performance appraisal of the Board, individual board members and functional committees.

  • Note 4. The methods of assessment include internal self-assessment by the Board of Directors, self-assessment by board members, peer assessment, and performance assessment by appointing external professional bodies, experts or other appropriate means.

  • Note 5. Assessments include, at a minimum, the following items based on the scope of the assessment:

  • (1) Performance evaluation of the board of directors: at a minimum, it includes the degree of participation in the Company's operations, the quality of the Board's decision-making, the composition and structure of the Board of Directors, the selection and continuous training of directors, internal control, etc.

  • (2) Performance Appraisal of Individual Directors and Members: at a minimum, it includes the mastery of the Company's objectives and tasks, recognition of the Directors' responsibilities, degree of participation in the Company's operations, internal relations management and communication, professional and continuous training of directors, internal control, etc.

  • (3) Performance Evaluation of the functional committee: the degree of participation in the company's operations, the recognition of the responsibilities of the functional committee, the decision-making quality of the functional committee, the composition and appointment of the members of the functional committee, internal control, etc.

  • Note 6. The results of the Performance Evaluation of the Board of Directors were reported to the Board on 16 March 2022.

24

3) The operations of the Audit Committee:

The Audit Committee held 4 meetings in the most recent year (2021), with the participation of independent directors as follows:


Numbers of
Numbers of		 Actual Actual
Actual numbers
Job Title Name
attendance by		 Attendance Remark
of attendance
proxy Ratios(%)
Convener Liao Kuo-Jung 4 0 100%
Committee
Member		 Hwa
Yueh-Jiuan		 4 0 100
Committee
Member		 Hsu
Wen-Chung		 4 0 100
Note: On July 7, 2017, the Audit Committee was established to replace the original supervisor
system.
Other mentionable items:
1. With regard to the implementation of the Audit Committee, if any of the following
circumstances occurs, the dates, terms of the meetings, contents of motions, all Audit
Committee resolutions, and Aurora’s handling of such resolutions shall be specified:
a.
Matters listed in Article 14-5 of the Securities and Exchange Act:
Meetings of
Audit
Committee		 Content of Motion and Follow-up Matters listed in §
14-5 of the Stock
Exchange		 Objections or
Reservations by
Independent Directors
The 7th Meeting
of The 2nd
Session
2021.03.16		 1. The Company's 2020 Annual Business
Report and Financial Reports.		 √ None
2. The Company's Earnings Distribution Plan
for 2020.		 None
3. The Company intends to allocate cash
through capital reserves.		 None
4. Internal Audit Execution Report. None
5. The Company's internal control system
self-assessment report for 2020 and the
issuance of the "Statement of Internal
ControlSystem".		 √ None
6. The Appointment of the Company's
Certified Public Accountant for 2021 and
the of independence assessment.		 √ None
Audit resolution result:Allpresent members agreed to adopt.
The Company's handlingof the auditors' opinions: None.
The 8th Meeting
of The 2nd
Session
2021.05.12
1. The Company's Consolidated Financial
Report for the firstquarter of 2021.		 None
2. Internal Audit Execution Report. None
Audit resolution result: Allpresent members agreed to adopt.
TheCompany's handlingof the auditors' opinions: None.
The 9th Meeting
of The 2nd
Session
2021.08.11
1. The Company's Consolidated Financial
Report for the secondquarter of 2021.		 √ None
2. Internal Audit Execution Report. None
Audit resolution result:Allpresent members agreed to adopt.
TheCompany's handlingof the auditors' opinions: None.

25

The 10th
Meeting of The
2nd Session
2021.11.10		 1. The Company's Consolidated Financial
Report for the thirdquarter of 2021.		 None
2. Internal Audit Execution Report. None
3. Define the Company's auditplan for 2022. None
Audit resolution result:Allpresent members agreed to adopt.
TheCompany's handlingof the auditors' opinions: None.
The 2nd Session
The 11th
2022.03.16		 1. Prepare the company's 2021 Annual
Business Report and financial reports.		 √ None
2. The Company's 2021 Earnings Distribution
Proposal.		 None
3. The Company intends to allocate cash
through capital reserves.		 None
4. Internal Audit Execution Report. None

5. The Company's self-assessment report on
the internal control system in 2021 and the
issuance of the "Statement of Internal
ControlSystem".		 √ None
6. Amendments to the Company's
"Procedures for Acquisition or Disposal of
Assets"		 None
7. The appointment of Certified Public
Accountants and the Assessment
Independence of in 2022.		 √ None
Audit resolution result: Allpresent members agreed to adopt.
TheCompany's handlingof the auditors' opinions: None.
b. Except as previously set out, no other resolution has been approved by the Audit
Committee and approved by more than two-thirds of all directors: no such circumstance.
3. The name of the independent director, the content of the proposal, the reason for avoidance of
interest and the circumstances of participation in the vote shall be clarified by the independent
director in the execution of the proposal of evasion of interest: there is no such circumstance.
4. Communication between directors and head of internal audit and CPA (including material
issues, audit methods and results relating to the Company’s finances and business).
a.
Communication between the Independent Directors and Internal Audit Supervisor: The
Independent Directors convene a meeting of the Audit Committee on a quarterly basis,
after which the minutes of the meeting are prepared and the Directors and the top
management of the Company are informed of the important discussions and resolutions. 5
relevant meetings were held in 2021 and the most recent year, at which the Head of
Internal Audit attended to report on the implementation of the audit business and
significant internal control internal audit matters, and communicated with the Independent
Directors on the results of the Audit Report and the implementation of the tracking report.
b. Communication between the Independent Directors and the Accountants: In 2021 and the
most recent year, a total of five relevant meetings were held. Among them, the Company's
Certified Public Accountants reported to the Independent Directors on the results of the
review or audit of the Financial Statements of the Company and its domestic and overseas
subsidiaries and on the internal control audit at the 2nd-7th, 2nd-8th, 2nd-9th, 2nd-10th and
2nd-11th Audit Committee meetings, respectively.

26

4) The operation of corporate governance and its differences from the Code of Practice on Corporate Governance of Listed Companies and the reasons therefor:

ImplementationStatus ImplementationStatus ImplementationStatus Deviations from the
Corporate Governance Best
Practice Principles for
Evaluation Items
Yes No Summary Description TWSE/TPEx Listed
Companies and reasons
thereof
1.
Does the company establish and disclose its
corporate governance best-practice principles based
on the Corporate Governance Best-Practice
Principles for TWSE/TPEx Listed Companies?		 The Company has developed a Corporate Governance Code of
Practice in accordance with the Code of Practice for Corporate
Governance of Listed Companies and has disclosed it in the
Public Information Observatory and on the Company's
website.		 None.
2.
Shareholding structure & shareholders' rights
a.
Does the Company establish internal operating
procedures for dealing with shareholder advice,
doubts, disputes and litigation matters, and
implement them in accordance with the procedures?
b.
Does the company have a list of the ultimate
controllers of the major shareholders and major
shareholders who actually control the company?
c.
Does the company establish and implement risk
control and firewall mechanisms between affiliated
companies?
d.
Does the company have internal regulations that
prohibit insiders from trading in marketable
securities with undisclosed information?


a.
The company has spokespersons, stock affairs personnel
and legal personnel to properly handle shareholders'
suggestions, doubts, disputes and litigation matters.
b.
The Company shall report the changes in the shareholding
of the insiders on a monthly basis, obtain the shareholder
register during the suspension period, and keep a list of the
Company's major shareholders and the ultimate controllers
of the major shareholders.
c.
The Company has established the internal control system,
internal audit implementation rules and subsidiary
supervision and other related operations and measures to
implement an effective risk control, and has established
the Procedure for Lending Funds to Other Parties and or
Guarante", the "Procedures for Endorsement and
Guarantee" and other specifications for business and
financial transactions with related enterprises to properly
manage the risks between the Company and related
enterprises.
d.
The Company has established the "Internal Significant
Information Office and Preventive Insider Trading
Management Procedures" to regulate insiders and insider

(I) None.
(II) None.
(III) None.
(IV) None.

27

ImplementationStatus ImplementationStatus ImplementationStatus Deviations from the
Corporate Governance Best
Practice Principles for
Evaluation Items
Yes No Summary Description TWSE/TPEx Listed
Companies and reasons
thereof
tradingtargets and deter insider trading.
3.
Composition and responsibilities of the Board of
Directors
a.
Have diversification policies and specific
management goals been formulated and
implemented by the Board of Directors?		 a.
1. The Company formulated the "Code of Practice on
Corporate Governance" on December 24, 2014, and
formulated a diversity policy in Chapter 3
"Strengthening the Functions of the Board of
Directors". The nomination and selection of the
members of the Board of Directors of the Company
shall be in accordance with the Articles of Association
of the Company, adopt a candidate nomination system,
in addition to assessing the academic qualifications of
each candidate, and with reference to the opinions of
the stakeholders, comply with the Directors' Selection
Methodology and the Code of Practice on Corporate
Governance, in order to ensure the diversity and
independence of the members of the Board of
Directors.
1) The directors of the Company have different expertise
in various fields, which has certainly helped the
development and operation of the Company. The Board
of Directors focuses on operational judgment,
operational management and crisis management ability.
Please refer to the Annual Report "Diversity of Board
Members" (Schedule 1, p.36).
2) The current Board of Directors of the Company is
composed of 7 directors, including 4 directors and 3
independent directors. The Company focuses on the
gender equality in the composition of the board
members. The number of female director seats is about
29% of all directors,and the number of independent		 (I) None.
(II) The establishment will
be evaluated in the future as
practical needs arise.
(III)None.

28

ImplementationStatus ImplementationStatus ImplementationStatus Deviations from the
Corporate Governance Best
Practice Principles for
Evaluation Items
Yes No Summary Description TWSE/TPEx Listed
Companies and reasons
thereof
b.
In addition to the Salary and Remuneration
Committee and the Audit committee set up in
accordance with the law, does the company
voluntarily set up other various functional
committees?
c.
Does the Company define the method of
performance evaluation of the Board and the
manner in which it is evaluated, conduct
performance evaluation annually and periodically,
and submit the results of performance evaluation to
the Board, and use them as a reference for the
remuneration of individual directors and their
nomination for renewal?
directors seats is about 43% of all directors. The terms
of independent directors are 4 ~ 6 years. The directors
are 2 under 60 years old, 3 60 ~ 80 years old and 2 over
80 years old.
3) The Company pays attention to the gender equality of
the composition of the board of directors, and the ratio
of female directors is targeted at more than 40%. It is
expected that one female director will be added to the
Board of Directors in the future to achieve the target.
4) The Board of Directors discloses the proposed
diversification of the membership on the Company's
website and public information observatory.
b. In addition to the Audit Committee and the Salary and
Remuneration Committee established by law, the
remaining corporate governance operations of the
Company are under the responsibility of each department
according to its functions, and no other functional
committees have been established.
c.
1) On November 8, 2019, the Company formulated the
"Board Performance Evaluation Method" and its
evaluation method. The performance of the directors of
the Company for the year 2021 was evaluated in
accordance with the five self-assessment results, the
overall performance of the Board of Directors met the
criteria and the overall performance was in good
condition, and the report of the Board of Directors
dated 16 March 2022 is available on page 18.
2) On 29 December 2011, the Company established the
Compensation and Remuneration Committee, whose
main duties are to define and periodically review the
performance objectives andpolicies,systems,		 (IV) None.

29

ImplementationStatus ImplementationStatus ImplementationStatus ImplementationStatus Deviations from the
Corporate Governance Best
Practice Principles for
Evaluation Items
Yes No Summary Description TWSE/TPEx Listed
Companies and reasons
thereof
d.
Does the company regularly assess the
independence of Certified Public Accountants?		 standards and structure of the remuneration of the
directors and managers of the Company, periodically
assess the achievement of the performance objectives
of the directors and managers of the Company and
determine their remuneration.
d. The Company has developed an independent assessment
form for accountants with reference to the Republic of
China Certified Public Accountants' Code of Ethics
Bulletin No. 10 “Integrity, Fairness, Objectivity and
Independence” and has taken a statement of independence
from the accounting firm issued by the Board of Directors
annually assessing the independence of Certified Public
Accountants. The 2022 Independent Assessment was
completed and approved by the Board of Directors on 16
March 2022.
Evaluation Item Assessments
Results		 Independence
of theCPAs
1 No direct or indirect
material financial interests
with Aurora		 Yes Yes
2 No financing or guarantee
activities with Aurora or its
directors
Yes		 Yes
3 No close business
relationship or potential
employment relationship
with Aurora		 Yes Yes
4 The CPAs and members of
the audit team serving as
directors or managerial
officers or holding		 No Yes

30

ImplementationStatus ImplementationStatus ImplementationStatus ImplementationStatus Deviations from the
Corporate Governance Best
Practice Principles for
Evaluation Items
Yes No Summary Description TWSE/TPEx Listed
Companies and reasons
thereof
positions with significant
influence on the audit work
of Aurora at present or in
thepast 2years
5 No provision of non-audit
services that may directly
affect the audit work		 Yes Yes
6 Not an intermediary of the
shares or other securities
issued byAurora		 Yes Yes
7 Not serving as a defense
counsel of Aurora or
representing Aurora in
mediating conflicts with
thirdparties		 Yes Yes
8 Not a family member or
relative of a director or
managerial officer or
person holding a position
that has a significant
impact on the audit work
of Aurora		 Yes Yes
4.
Does the listed company have a suitable and
appropriate number of corporate governance
personnel and designate a head of corporate
governance who is responsible for matters related
to corporate governance (including, but not limited
to, providing information necessary for the
Directors, Supervisors to conduct the business,
assistingthe Directors,the Supervisors to comply		 Through the Resolution of the Board of Directors on
November 10, 2020, the Company held the position of
"Corporate Governance Supervisor" concurrently with
Director Ma Chih-Hsien, who has more than three years of
experience in the executive function of the financial affairs of
the Public Offering Company, and completed 18 hours of
professional refresher training in accordance with laws and
regulations before the expiration of the term of office of the		 None.

31

ImplementationStatus ImplementationStatus ImplementationStatus Deviations from the
Corporate Governance Best
Practice Principles for
Evaluation Items
Yes No Summary Description TWSE/TPEx Listed
Companies and reasons
thereof
with laws and regulations, handling matters related
to meetings of the board of directors and the
Shareholders' Meeting according to law, making
minutes of meetings of the Board of Directors and
the Shareholders' Meeting, etc.)?		 Company in 2021. Perform the corporate governance related
matters as follows:
a.
Provide directors required information for business
execution and assist directors in following laws and
regulations.
b.
Handle matters in relation to the Board meetings
(including Audit Committee and Remuneration
Committee meetings) and shareholders' meetings, keep
minutes at the meetings, and assist with legal compliance
of resolutions.
c.
Assist directors in assuming office and pursuing
continuingeducation.
5.
Has the company established the communication
channels with stakeholders (including but not
limited to shareholders, employees, customers and
suppliers, etc.), set up stakeholder sections on the
company's website, and responded appropriately to
important corporate social responsibility issues of
concern to stakeholders?		 a.
In addition to a stakeholder section on the company
website, Aurora has a spokesperson and each department's
contact information set up to maintain unimpeded
communication with shareholders, employees, customers,
suppliers, and other stakeholders and respond to material
corporate social responsibility issues in a proper manner.
b.
Company Website Stakeholder Area:
https://www.aurora.com.tw/stakeholder		 None.
6.
Does the company appoint a professional
shareholder service agency to deal with shareholder
affairs?		 The Company appoints a specialized share agency, Yuan Da
Securities (Shares) Co., Ltd., to act on behalf of the Company
in various share affairs.		 None.
7.
Information Disclosure
a.
Does the company have a website to disclose the
financial operations and corporate governance
status?
b.
Does the company adopt other methods of
information disclosure (such as setting up an
website in English language,designatingaperson
a.
An investor relations section has been set up on the
company website to disclose the financial operations and
corporate governance status in accordance with relevant
laws and regulations. URL: https://www.aurora.com.tw
b.
In addition to setting up Chinese and English websites,
Aurora discloses investor presentations on the company
website. Designatedpeople are appointed to handle		 a.
None.
b.
None.

32

ImplementationStatus ImplementationStatus ImplementationStatus Deviations from the
Corporate Governance Best
Practice Principles for
Evaluation Items
Yes No Summary Description TWSE/TPEx Listed
Companies and reasons
thereof
responsible for the collection and disclosure of
company information, the spokesperson system, the
corporate explanation meeting process to place the
company's website, etc.)?
c.
Does the company publicly announce and file the
Annual Financial Reports within two months after
the close of the given fiscal year and publicly
announce and file the first, second, and third
quarterly financial reports and the operation of each
month ahead of the required deadline?		 information collection and disclosure. A spokesperson
system is also in place to answer inquiries about the
business and financial operations of Aurora. For more
information, visit
https://www.aurora.com.tw/_aurora_en
c.
In accordance with the relevant regulations and within
the prescribed period of time, the Company announced
and reported the Annual Financial Report, the first,
second and third quarter financial report and the
operations of each month. For the disclosure of the above
information, please refer to the Public Information
Observatory.		 c.
Except for annual
financial statements, the
quarterly financial
statements and monthly
operations are
announced and reported
within the prescribed
period.
8.
Does the company have any other important
information (including but not limited to employee
rights, employee care, investor relations, supplier
relationships, stakeholder rights, Directors' and
Supervisors' further training, implementation of risk
management policies and risk measurement
standards, implementation of customer policies,
purchase of liability insurance for directors and
supervisors, etc.) that helps to understand the
company's corporate governance operations?		 a.
Employee rights and employee wellness
The Company has always safeguarded the rights and
interests of its colleagues. In addition to statutory
safeguards, the Company has good welfare measures and
open interactive channels and diversified appeal channels.
1)
Insurance: Group commercial insurance.
2)
Salary: team bonus, business achievement bonus,
year-end bonus, domestic and overseas rewards.
3)
Welfare: wedding and funeral subsidies, children's
education scholarships, travel subsidies, hospital
condolences, hospital medical subsidies, tail teeth
activities and uniforms.
4)
Medical Examination Assistance: Regularly provide
medical examination assistance to colleagues and the
plan selected by the excellent hospital.
5)
Travel Subsidy: Regularly subsidize domestic and
foreign travel of colleagues and irregular outdoor and
gathering activities.
6)
Education and Training: Complete the education and		 a.
None.
b.
None.
c.
None.

33

ImplementationStatus ImplementationStatus ImplementationStatus Deviations from the
Corporate Governance Best
Practice Principles for
Evaluation Items
Yes No Summary Description TWSE/TPEx Listed
Companies and reasons
thereof
training system (group training, business department
training, professional license training), E-learning
online learning platform, intranet platform training,
external education and training fee subsidy, and
encourage colleagues to pursue on-the-job training.
b.
Investor relations
Information on finances and business operations is fully
disclosed on the MOPS and the company website in
accordance with the relevant laws and regulations. A
spokesperson and contacts of business departments are
also in place to maintain the rights of investors.
c.
Supplier relations
Requisition and procurement are carried out in
accordance with the “Procurement Management Rules”
to establish equal and reciprocal partnership with
suppliers.
d.
Rights of stakeholders
1) Responsibilities to Customers:
Aurora attaches great importance to customers'
feedback and after-sales services. To meet customer
needs, immediate measures are taken to address
customer complaints.
2) With regard to Shareholder Responsibilities:
Aurora aims to maintain the rights and interests of
shareholders.
3) Set up the stakeholder area and their contact windows
to safeguard the rights of stakeholders.
e.
Directors’ training records
Please refer to “2021 Director’s Further Education
Status”(Schedule 2, page 36)in the Annual Report.		 d.
None.
e.
None.
f.
None.
g.
None.
h.
None .

34

ImplementationStatus ImplementationStatus ImplementationStatus Deviations from the
Corporate Governance Best
Practice Principles for
Evaluation Items
Yes No Summary Description TWSE/TPEx Listed
Companies and reasons
thereof
f.
Implementation of risk management policies and risk
evaluation measures
Risk management policies and risk evaluation measures
have been formulated and implemented. Please refer to
Article 7, Chapter 6 of the Annual Report "VI. Analysis
and evaluation of risk events for the most recent year and
up to the date of publication of the Annual Report”.
g.
Implementation of customer relations policies
1)
The Company strictly complies with the contracts
signed with customers and relevant agreements to
ensure the interests of customers.
2)
In addition to providing branch services throughout
the province, the Company has set up the customer
service centers and 0809 service hotline to protect the
consumers' rights and interests.
h.
Purchase of liability insurance for directors and
supervisors
The Company insured the “Directors Supervisors and
Managers Liability Insurance” with Fubon Property
Insurance Co., Ltd for a total amount of NT$ 3 million.
The insurance period is from December 1, 2021 to
December 1,2022.
9.
Please describe the improvement situation in the corporate governance evaluation results issued by the Corporate Governance Center of Taiwan Stock
Exchange in the most recent year, and propose priority enhancement matters and measures for those who have not yet improved:
The Company has improved the results of the 8th appraisal and expects to establish an interdepartmental project team and continue to follow up the
improvementplans of the relevant business units to improve the level of corporategovernance.

35

Schedule 1: Diversity of Board Members

Diversified Core A Seniority of
Concurrent Age
Independent		 Finance
Item
Business		 Industry
Nationality
Gender		 Employee **Director ** Decision-Making
and		 Law
Administration knowledge
of the 60 or
61 to
Accounting
81 + 4 to 6 years
Name of Director Company less 80
Yuan Hui-Hua Republic of
China
Female
Chen Yung-tai Republic of
China
Male
Rai Hau-Min Republic of
China
Male
Ma Chih-Hsien Republic of
China
Male
Liao Kuo-Jung Republic of
China
Male
Hwa
Yueh-Jiuan		 Republic of
China
Female
Hsu
Wen-Chung		 Republic of
China
Male

36

Schedule 2: 2021 Director's Advanced Studies

Training
Job Title Name Date Training Institution Name of course
Hours
Chairman Yuan
Hui-Hua		 11/11 Taiwan Corporate Governance
Association		 Risks and Opportunities of Climate Change and Net
Zero Emissions for Business Operations		 3
11/17 Taiwan Corporate Governance
Association		 The latest development trend and countermeasures of
international carbon tariff		 3
Director Chen
Yung-tai		 11/11 Taiwan Corporate Governance
Association		 Risks and Opportunities of Climate Change and Net
Zero Emissions for Business Operations		 3
11/17 Taiwan Corporate Governance
Association		 The latest development trend and countermeasures of
international carbon tariff		 3
Director Rai Hau-Min 11/11 Taiwan Corporate Governance
Association		 Risks and Opportunities of Climate Change and Net
Zero Emissions for Business Operations		 3
11/17 Taiwan Corporate Governance
Association		 The latest development trend and countermeasures of
international carbon tariff		 3
Director Ma
Chih-Hsien		 11/11 Taiwan Corporate Governance
Association		 Risks and Opportunities of Climate Change and Net
Zero Emissions for Business Operations		 3
11/17 Taiwan Corporate Governance
Association		 The latest development trend and countermeasures of
international carbon tariff		 3
Director Liao
Kuo-Jung		 11/11 Taiwan Corporate Governance
Association		 Risks and Opportunities of Climate Change and Net
Zero Emissions for Business Operations		 3
11/17 Taiwan Corporate Governance
Association		 The latest development trend and countermeasures of
international carbon tariff		 3
Independent
Director		 Hwa
Yueh-Jiuan		 11/11 Taiwan Corporate Governance
Association		 Risks and Opportunities of Climate Change and Net
Zero Emissions for Business Operations		 3
11/17 Taiwan Corporate Governance
Association		 The latest development trend and countermeasures of
international carbon tariff		 3
Independent
Director		 Hsu
Wen-Chung		 11/11 Taiwan Corporate Governance
Association		 Risks and Opportunities of Climate Change and Net
Zero Emissions for Business Operations		 3
11/17 Taiwan Corporate Governance
Association		 The latest development trend and countermeasures of
international carbon tariff		 3

37

5) Remuneration Committee:

a) Information on the members of the Compensation Committee

April 11, 2022
Qualifications
Identity
Name
Professional Qualification
and Work Experience		 Independence Status Number of
concurrently
serving as
members of the
compensation
and remuneration
committees of
other
public offering
companies
Independent
Director
(Convenor)
Hwa
Yueh-Jiuan
 More than five years of
work experience required
by business and company
 There is no situation
related to Article 30 of the
Company Law		  Including the independent
director himself, his spouse, his
the second-degree relative of
kinship and other relatives who
do not serve as directors,
supervisors or employees of the
company or its affiliated
companies. There is no
independent director
establishment in a public
offering company and the
provisions of Article 3,
Paragraph 1 of the Regulations
on Matters to be Observed.
Affair, in line with
independence.
 The person himself spouse and
minor children hold 0 shares of
the Company.		 0
Independent
Director
Liao
Kuo-Jung		  More than five years of
work experience required
for commercial, financial
and corporate business
 Directors of other listed
companies
Members
 There is no situation
related to Article 30 of the
Company Law		  Including the independent
director himself, his spouse, his
the second-degree relative of
kinship and other relatives who
do not serve as directors,
supervisors or employees of the
company or its affiliated
companies. There is no
independent director
establishment in a public
offering company and the
provisions of Article 3,
Paragraph 1 of the Regulations
on Matters to be Observed.
Affair, in line with
independence.
 The person himself spouse and
minor children hold 0 shares of
the Company.		 0

38

Qualifications
Identity
Name		 Qualifications
Identity
Name
Professional Qualification
and Work Experience		 Independence Status Number of
concurrently
serving as
members of the
compensation
and remuneration
committees of
other
public offering
companies
Independent
Director
Hsu
Wen-Chung
 More than five years of
work experience required
by business and company
 There is no situation
related to Article 30 of the
Company Law		  Including the independent
director himself, his spouse, his
the second-degree relative of
kinship and other relatives who
do not serve as directors,
supervisors or employees of the
company or its affiliated
companies. There is no
independent director
establishment in a public
offering company and the
provisions of Article 3,
Paragraph 1 of the Regulations
on Matters to be Observed.
Affair, in line with
independence.
 The person himself spouse and
minor children hold 0 shares of
the Company.		 0

  • b) Information on the operation of the Compensation Committee

  • i. There are three members of the compensation and remuneration committee of the company.

  • ii. The term of office of the members of the Committee: June 12, 2019 to June 11, 2022. The most recent meeting of the Pay and Remuneration Committee (2021) was held twice (A). The qualifications and attendance of the members are as follows:

follows:
Job Title Name Attendance in
Person
Times(B)		 Time of proxy
attendance
Times		 Actual attendance
Ratios (%) (B/A)
(Note)		 Remark
Convener Hwa
Yueh-Jiuan		 2 0 100%
Committee
Member		 Liao
Kuo-Jung		 2 0 100%
Committee
Member		 Hsu
Wen-Chung		 2 0 100%
Other mentionable items:
1.
If the Board does not adopt or amend the recommendation of the Remuneration Committee, it shall
state the date of the Board, the period, the substance of the proposal, the result of the resolution of
the Board and the Company's opinion on the Remuneration Committee (if the Board adopts the
recommendation that the remuneration is better than that of the Remuneration Committee, it shall
state the circumstances and reasons for the difference): there is no such circumstance

39

Meeting of
Remuneration
Committee		 Content of Motion and Follow-up Objections or
Reservations by
Remuneration
Committee
The 4th
Meeting of The
5nd Session
2021.05.04		 The company's "manager performance appraisal and
remuneration system" evaluationproposal		 None
Outcome of the resolution: all members of the Committee agreed to adopt.
Disposition of the Company's opinion on the Remuneration Committee: The
proposal for the Board of Directors was approved byall the Directorspresent.
The 6th
Meeting of The
5nd Session
2021.10.28		 Periodically review the Company's Compensation
Committee Organizational Rules.		 None
Outcome of the resolution: all members of the Committee agreed to adopt.
Disposition of the Company's opinion on the Remuneration Committee: The
proposal for the Board of Directors was approved byall the Directorspresent.
2. The date, period, content of the proposal, all opinions of the members and treatment of the
opinions of the members of the Remuneration Committee, if any, shall be specified in the
matter of the resolution of the Remuneration Committee, if there is any objection or reservation
on the part of the members and there is a record or written statement: no such circumstance.
3. Duties of the Remuneration Committee: The Committee faithfully performs the following
duties with the attention of good managers and submits its recommendations to the Board of
Directors for discussion.
a.
Establish and periodically review policies, systems, standards and structures for the
performance appraisal and remuneration of directors and managers.
b. Periodicallyevaluate and fix the remuneration of directors and managers.

  • Note 1. Any member or officer of the Committee prior to the Closing Date shall be appointed on the date specified in the Notes, and actual attendance Ratios (%) shall be calculated on the basis of the number of times the Committee met and the number of times the Committee attended.

  • Note 2. Prior to the Closing Date, any person who is re-elected to the Remuneration Committee shall fill in the new and old Remuneration Committee members and note in the notes the date of appointment and re-election of such member. Actual attendance Ratios (%) is calculated based on the number of times the Remuneration and Compensation Committee has met during its term of office and the number of times it has actually attended.

40

6) Implementation of the Code of Practice for the Promotion of Sustainable Development and the Circumstances and Reasons for Differences from the Code of Practice for the Sustainable Development of Listed Companies

Implementation Status Discrepancy with industry
standards in sustainable
Promoted items
Yes No Summary Description development practices and
reasons
1. Does the Company have a governance
structure for promoting sustainable
developments and exclusively (or
concurrently) dedicated units to be in charge
of proposing and enforcing sustainable
development, and let the Board of Directors
entrust the high-ranking management with
the implementation and supervise the status?		 1. The Company has not yet established a
governance structure and set up a full-time
(part-time) professional unit to promote the
sustainable development. At present, the Board
of Directors authorizes the Marketing Office
and the Corporate Governance Officer to deal
with the matter part-time and report to the Board
of Directors from time to time.
In the future, the Company will
establish a governance structure
that promotes the sustainable
development and set up a
dedicated (part-time) unit that
promotes sustainable
development.
2. Does the Company conduct risk assessment
of environmental, social and corporate
governance issues related to the Company's
operations in accordance with the materiality
principle, and formulate relevant risk
management policies or strategies?
2. On December 24, 2014 and March 16, 2022, the
Board of Directors of the Company approved
the formulation of the "Code of Practice for
Corporate Governance" and "Code of Practice
for Sustainable Development" for the
management and all employees to follow, and to
manage this code accordingly. Social risks and
influencers of environmental, social and
corporate governance issues related to company
operations, conduct risk assessments and
formulate risk management strategies to ensure
that the overall operation can be sustained and
sound corporategovernance.
2. None.
3. Environmental issues
a.
Does the company have an appropriate
environmental management system based on
its industry characteristics?
3. Environmental issues
a. 1) The furniture factory obtained the ISO
50001: 2018 energy management system
certification in 2020, and the energy
management policy is continuously promoted
every year.
a.
None.

41

Implementation Status Discrepancy with industry
standards in sustainable
Promoted items
Yes No Summary Description development practices and
reasons
2) Furniture Factory 2021 Energy Performance
Indicator (EnPI):
Target plant-wide energy saving rate (actual
consumption compared to energy baseline)
reduced by2%
b. Is the company committed to improving
energy efficiency and using low-impact
recycled materials?		 b. In 2021, the furniture factory continued to
promote the improvement of the on-site
operating environment to improve production
efficiency and reduce process abnormalities and
resource waste. Improve the utilization rate of
equipment and increase the utilization rate of
various resources.		 b. None.
c.
Does the company assess the potential risks
and opportunities of climate change for the
enterprise now and in the future, and take
relevant response measures?		 c. The Company has assessed the risks of climate
change to its business model, asset security, etc.,
and has appropriately diversified its customers
and mitigated its risks through property
insurance.
c. None.
d.
Has the company counted greenhouse gas
emissions, water consumption and total
waste weight in the past two years, and
formulated policies for greenhouse gas
reduction, water use reduction or other
waste management?		 d. 1)The furniture factory's 2021 electricity usage
energy performance (actual usage relative to the
energy baseline) decreased by 1.0%, saving
17,000 kWh of electricity. The energy
performance of natural gas use (actual
consumption relative to energy baseline) is
reduced by 0.5%, saving 1,000m³. A total
reduction of 11 metric tonnes of carbon
emissions.
2)In 2021, the improvement project of
mechanical punching equipment will be carried
out, and the production efficiency of the
equipment will be increased byabout 2 times. It

d. None.

42

Implementation Status Discrepancy with industry
standards in sustainable
Promoted items
Yes No Summary Description development practices and
reasons
saved 21,500 degrees/year of electricity and
reduces carbon emissions by 11 metric tons.
2) In response to the government's promotion of
a green environment, the company
continuously replaced traditional lamps with
energy-saving lamps every year. In 2021, the
company replaced office lighting with 60
lamps and traditional daylighting with LED
energy-saving lamps, saving 11,400 degrees
of electricity per year and reducing carbon
emissions by6 metric tons.
4. Social issues
a.
Does the company formulate appropriate
management policies and procedures
according to relevant regulations and the
International Bill of Human Rights?		 4. Social issues
a.
(I). In order to fulfill our corporate social
responsibilities and safeguard the fundamental
human rights of all our colleagues, customers
and stakeholders, the Company recognizes and
supports the United Nations Universal
Declaration of Human Rights, the Global
Compact and the Guiding Principles on
Business and Human Rights, as well as the
Declaration on Fundamental Principles and
Rights at Work of the International Labour
Organization, respects internationally
recognized human rights standards, ensures that
basic human rights are not infringed upon, and
treats and respects all our colleagues, contract
and temporary personnel, interns, etc. with
dignity. The company also abides by the local
labor-related laws and regulations, and has
formulated "work rules". Its labor rights and		 a.
None.

43

Implementation Status Discrepancy with industry
standards in sustainable
Promoted items
Yes No Summary Description development practices and
reasons
obligations comply with labor laws and
regulations, and have been verified by the labor
bureau to protect the legitimate rights and
interests of colleagues and promote
labor-management harmony.
b. Has the Company established and offered
proper employee benefits (including
compensation, leave, and other benefits) and
reflected the business performance or results
in employee compensation appropriately?		 b. 1) The company has established measures for
remuneration, attendance and leave,
performance appraisal, rewards and
punishments, and employee benefits, and
clearly regulates the standards of
remuneration, vacation, rewards, and
employee benefits, and implements the
"responsibility center system" and "business
results sharing" system", sharing the
company's operating profits with colleagues
2) Pay attention to the job value and
performance of colleagues, and conduct
performance appraisals twice a year to
quickly recognize outstanding colleagues
and mentor those who have fallen behind.
Based on personal contributions, it is used
as an evaluation basis for salary
adjustments, bonuses, dividends and other
rewards to motivate employees. Salary
grows with the company.
3) Article 29 of the company's articles of
association stipulates that if the company
has a profit in the year (the so-called profit
refers to the profit before tax deducting the
profit before the distribution of employee
b. None.

44

Implementation Status Discrepancy with industry
standards in sustainable
Promoted items
Yes No Summary Description development practices and
reasons
compensation), it should allocate 1% to
10% as employee compensation; However,
if the company still has accumulated losses,
it should make up for it. The employee
remuneration referred to in the preceding
paragraph is paid to shareholders or cash
recipients, including employees of
subsidiaries who meet certain conditions.
c.
Does the company provide a healthy and
safe work environment and organize health
and safety training for its employees on a
regular basis?		 c.
The Company is committed to providing a safe
and healthy working environment for its
employees, setting up and perfecting fire
protection systems in accordance with fire laws
and regulations, and periodically inspecting and
reporting in accordance with the law; colleagues
regularly conduct fire drills, conduct emergency
preparedness and response drills every year, and
provide employee health inspections every 2
years.
c.
None.
d. Does the company establish effective career
development and training plans for its
employees?		 d. 1) In addition to providing the education and
training for the leadership management,
general abilities, functional categories and
professional abilities, the Company
cultivates all-round talents through work
rotation, project responsibility, job agency,
expatriate training and other cultivation
methods, so as to enable colleagues to be
more willing to perform.
2) Through monthly or irregular business
meetings, intranet announcements and the
"Aurora Monthly",the companyallows		 d. None.

45

Implementation Status Discrepancy with industry
standards in sustainable
Promoted items
Yes No Summary Description development practices and
reasons
colleagues to fully understand the
company's operating policies.
e.
Does the Company comply with relevant
laws and international standards in relation
to customer health and safety, customer
privacy, marketing, and labeling of products
and services, and has it established relevant
consumer or customer protection policies
and grievance procedures?		 e. 1) The Company determines the "Customer
Complaint Processing Operational
Standard" and "Customer Feedback
Process", establishes a customer-oriented
quality system, and uses an objective
method to comprehensively assess the
satisfaction of customers with the products
or services of the Company, in order to
understand the gap between customer needs
and expectations, as a basis for quality
system improvement, to achieve the goal of
enterprise pursuing sustainable operation.
2) The marketing and labeling of the
Company's products and services are carried
out in accordance with the relevant
provisions of the Decree to protect the
interests of consumers and customers.
e.
None.
f.
Does the company formulate and implement
supplier management policies that require
suppliers to follow relevant regulations on
environmental protection, occupational
safety and health or labor human rights?		 f.
The Company attaches great importance to the
protection of the environment and society, has
carefully selected manufacturers who attach
great importance to good faith, and regularly
evaluates the suitability of manufacturers. All
suppliers shall comply with the Company's
policy of good faith, no gratuity, no kickback
and strictly observe the avoidance of interests. If
there is any breach, they shall cease to deal with
each other, in order to obtain the most
reasonablequotation,the bestqualityand the
f.
None.

46

Implementation Status Implementation Status Implementation Status Discrepancy with industry
standards in sustainable
Promoted items
Yes No Summary Description development practices and
reasons
best service, and achieve the purpose of the
Company and the supplier working together to
enhance corporate social responsibility. The
Company requires the cooperating suppliers to
self-assess the impact of their supply sources on
the environment and society of the community.
If the supply sources cause a significant impact
on the environment and society of the
community, the terms of the contract may be
terminated or rescinded at anytime.
5. Does the company refer to the
internationally accepted reporting standards
or guidelines for the preparation of reports
that disclose non-financial information of
the company, such as continuing reports?
Are the reports certified or assured by a
third-partyaccreditation body?		 5. The Company submitted the Code of Practice
for Sustainable Development to the Board of
Directors for consideration and adoption on 16
March 2022, and the Code was disclosed on the
Company's website.		 5. Third-party certification or
assurance will be arranged
upon evaluation.
6. If the Company has its own rules for sustainable development in accordance with the Code of Practice for the Sustainable Development of
Listed Counter Companies, please clarify the difference between its operation and the rules:
The Company has drawn up the "Sustainable Development Best-practice Principles." The Marketing Department is responsible for promoting
the implementation of the principles. No deviation from the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed
Companies" has been found.
7. VII. The other important information to help understand the implementation of promoting sustainable development:
Every business is a member of society. It is incumbent on businesses to give back to society as good corporate citizens while staying
competitive and profitable. "Giving Back To The Society" has always been the company's business philosophy, its concrete practice is to─
create employment opportunities, cultivate talents for the society; make environmental protection, provide high-quality goods and services,
improve living standards; give back to shareholders, enhance shareholders' willingness to invest, promote economic development; pay taxes in
accordance with the law, make the government have financial resources, improve the welfare of the people; and actively participate in the
public welfare, enhance the positive energy of the society.

47

Implementation Status Implementation Status Implementation Status Discrepancy with industry
standards in sustainable
Promoted items
Yes No Summary Description development practices and
reasons
Continued participation in social welfare activities in 2021 is as follows:
a.
Aurora Monthly: Founded in 1971, the publication has been uninterrupted for 50 years. It is a cultural public publication with business
management and artistic appreciation. It provides free social subscriptions to promote corporate and social communication and learning. About
70,000 copies are published on both sides of the Taiwan Strait every month, and an electronic monthly magazine is also issued in response to
environmental protection.
b. Through the "Office Supply Donation Project," Aurora has long been donating office supplies directly to disadvantaged groups and social
welfare institutions to help make the best use of their office space and improve their work efficiency.
 In 2021, a total of 13 social service agencies and 39 volunteers donated 78 hours of assistance, and a total of 260 tables, cabinets, chairs,
screens, workstations, sofas, and so on were donated.
c.
At Aurora, employees are encouraged to take part in philanthropic activities. A social welfare platform has been set up for employees to
participate in local communities. Since 2015, we have continued to hold "Warm Accompaniment" activities, mobilized colleagues to volunteer,
participated in localized public welfare services, and helped social welfare institutions with financial or volunteer needs to pass on warmth and
love. In total, we carried out 271 activities, 4,287 volunteers invested 16,622 hours, and 82,704 people were cared for.
 In 2021,a total of 21 social service organizations,199volunteers invested 73 hours,and a total of 6,765people were in vulnerable situations.

48

7) Deviations of the Company's ethical corporate management from the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies" and reasons for deviation:

Implementation Status Implementation Status Implementation Status Deviations from “Ethical
Corporate Management
Evaluation Items Best Practice Principles
Yes No Summary Description
for TWSE/GTSM Listed
Companies” and Reasons
1. Establishment of ethical corporate management
policies and programs
a.
(I). Does the company establish the ethical corporate
management policies approved by the Board of
Directors and declare its ethical corporate management
policies and procedures in its guidelines and external
documents, as well as the commitment from its Board
to implement the policies?
b. Has the company established a mechanism for
assessing the risk of bad faith conduct, periodically
analyzed and evaluated business activities with a high
risk of bad faith conduct within the scope of business,
and defined a plan for preventing bad faith conduct,
and covered at least the preventive measures for the
behaviors in Article 7 (2) of the Code of Business
Conduct for Listed Counterparties?
c.
Has the company clearly defined operating procedures,
behavior guidelines, punishment and complaint
systems for violations in the plan for preventing
dishonest behavior, and implement it, and regularly
review and revise the plan before disclosure?


















a.
Aurora has formulated the "Ethical Corporate
Management Best-practice Principles" and
"Regulations for Rewards and Disciplinary
Actions" to build a sound ethical corporate
management culture. Employees who are
found to have been involved in "falsification,
fraud, or accepting gifts from suppliers without
reporting" or "embezzlement of public funds,
misappropriation of company funding, or
forgery of documents," depending on the
severity of the case, are subject to disciplinary
actions or dismissal. The said regulations are
also announced on the intranet for all
employees to follow and implement ethical
corporate management.
b. When the company signs contracts with others,
it is advisable to fully understand the integrity
management status of the other party, and
incorporate
compliance
with
integrity
management into the contract terms. If
counterparties are found to be unethical,
Aurora will cease the business dealings or
transactions immediately and blacklist the
counterparties.
c.
The Companyhas established the “Points for






















a.
None.
b. None.
c.
None.

49

Implementation Status Implementation Status Implementation Status Deviations from “Ethical
Corporate Management
Evaluation Items Best Practice Principles
Yes No Summary Description
for TWSE/GTSM Listed
Companies” and Reasons
Safeguarding against Bad Faith” for directors,
managers and employees. Through the internal
control system and the Company's rules and
regulations, the Company shall be audited by
specialized units and report to the Board of
Directors for the sake ofgood faith operation.



2. Fulfillment of ethical corporate management
a.
Does the company evaluate business partners’ ethical
records and include ethics-related clauses in the
business contracts signed with the counterparties?
b. Does the company set up a dedicated unit for
promoting corporate integrity management under the
board of directors, and report regularly (at least once a
year) to the board of directors on its integrity
management policy and plan to prevent dishonest
behavior and supervise the implementation?
a. 1) For suppliers who intend to become the
company, if necessary, they should first
evaluate the legality of the object, the
integrity management policy, and whether
there has been a record of dishonest
behavior to ensure that their business
operations are fair and transparent, and will
not require, provide or Accept bribes.
2) In line with the principles of good faith and
integrity operation of the Company and the
anti-corruption
and
integrity
protection
policy, the supplier must sign a written
statement that it shall not have any improper
relationship with the employees (including
relatives) of the Company; the Company also
has "good faith clauses" in its external
procurement contracts. To implement the
ethical corporate management policies to the
full, suppliers violating the integrity clause
are subject to a large amount of punitive
liquidated damages and will be blacklisted by
Aurora.



















a.
None.
b. In the future, the
evaluation settings
will be implemented
again according to
actual needs.

50

Implementation Status Implementation Status Implementation Status Deviations from “Ethical
Corporate Management
Evaluation Items Best Practice Principles
Yes No Summary Description
for TWSE/GTSM Listed
Companies” and Reasons
c.
Does the company have a conflict of interest
prevention policy, to provide appropriate
representation channels, and implement it?
d. Has the company established an effective accounting
system and internal control system for the good faith
operation, and the internal audit unit drafted the
relevant audit plan based on the results of the
assessment of the risk of bad faith behavior, and
checked the compliance with the plan for preventing
bad faith behavior, or entrusted an accountant to
perform the audit?
e.
Does the company regularly hold internal and external
training on ethical corporate management?
b. Supervise each other through organizational
settings, such as segregation of requisitions
from purchases, and the establishment of
specifications for “Procurement Essentials” to
be strictly enforced. Based on the principle of
division of powers and responsibilities, the
audit department is responsible for auditing the
control points every year and from time to time
and reporting the audit results to the Board of
Directors on a regular basis. No material
defects have been identified in the audit
reports.
c.
All business activities of the company are
conducted in accordance with the law to
prevent conflicts of interest. Designated people
are responsible for compiling regular reports
on conflicts of interest lodged through a variety
of communication channels.
d. The Company's accounting system is defined
by the relevant ordinances, and an audit plan is
prepared
annually.
The
internal
control
management is carried out by the financial
units and auditors and reported to the Board of
Directors.
e.
At Aurora, employees are required to follow
"integrity, ethical conduct, and compliance" in
course ofperformingduties and managing






















c.
None.
d. None.
e.
None.

51

Implementation Status Implementation Status Implementation Status Deviations from “Ethical
Corporate Management
Evaluation Items Best Practice Principles
Yes No Summary Description
for TWSE/GTSM Listed
Companies” and Reasons
business activities. Through regular on-the-job
training, E-learning platform courses, and
external training, employees are imbued with an
idea that “integrity” is the fundamental cause of
success in interpersonal relationships and
business operations.



3. Operation of the whistle-blowing system
a.
Does the company establish both a
reward/whistle-blowing system and convenient
whistle-blowing channels? Are appropriate personnel
assigned to the accused party?
b. Has the company established standard operating
procedures for the investigation of reported matters,
the follow-up measures to be taken after the
investigation is completed, and the relevant
confidentiality mechanism?
c.
Does the Company take measures to protect
whistleblowers from being improperly disposed of as a
result of reporting?


a.
In April 2016, the Company submitted to the
Board of Directors for deliberation and
adoption the "Handling of Cases of Reporting
Illegal and Unethical or Unfaithful Conduct",
which can be delivered to the Company by
telephone, e-mail or in writing, with the
Spokesperson and Audit Office as the receiving
unit.
b. When the responsible department receives a
whistle-blower incident, it should clarify the
whistleblower's purpose and specific evidence,
and conduct verification through independent
channels, make every effort to protect the
whistleblower, and keep the whistleblower's
identity absolutely confidential.
c.
The Company clearly stipulates in the
"Handling of Reporting Illegal and Unethical
or Bad faith Cases" that reporting cases shall
be handled in a confidential manner, and the
identity of the reporter will be kept absolutely
confidential; if the reporter is a colleague, the
Company guarantees that the colleague will



















a.
None.
b. None.
c.
None.

52

Implementation Status Implementation Status Implementation Status Deviations from “Ethical
Corporate Management
Evaluation Items Best Practice Principles
Yes No Summary Description
for TWSE/GTSM Listed
Companies” and Reasons
not be improperly disposed of due to the
report.
4. Enhanced disclosure of ethical corporate management
information
a.
Does the company disclose the ethical corporate
management policies and the results of its
implementation on the companywebsite and MOPS?
Aurora has set up a Chinese website to disclose the
company profile and business-related information.
Website: http://www.aurora.com.tw
None.
5. If the Company has established the ethical corporate management policies based on the Ethical Corporate Management Best-Practice Principles
for TWSE/TPEx-Listed Companies, please describe any discrepancy between the policies and their implementation:
Aurora has established the "Ethical Corporate Management Best-practice Principles." No deviation from the Ethical Corporate Management Best
Practice Principles for TWSE/TPEx Listed Companies has been found.
6. Other important information to facilitate a better understanding of the company’s ethical corporate management policies (e.g., review and amend
its policies).
a.
The Company established the Audit Committee on July 7, 2017 in conjunction with the amendment of the Part of the Code of Business Conduct
on Integrity.
b. The Companyhas a businessphilosophyand narrative to share thephilosophyof integrityand decencyin thepursuit of sustainable business.

8) Corporate Governance Code and Related Regulations Disclosure Inquiries:

The Disclosure section of the Company's website, with the Investor Area available for downloading the Corporate Governance Code of Practice and related regulations, is available at http://www.aurora.com.tw/internal-policies.

9) Other important information for improving understanding of corporate governance operations:

In order to enhance corporate governance, the Company has in place the Corporate Governance Code of Practice, the Rules of Procedure of the Board of Directors, the Rules of Procedure of the Board of Directors, the Methodology for the Selection of Directors, the Code of Ethical Conduct, the Organizational Rules of the Audit Committee, the Code of Business Conduct for Integrity, the Organizational Rules of the

53

Remuneration Committee, the Code of Practice for Sustainable Development, the Essentials for Safeguarding Against Bad faith, the Standard Operating Procedures for Handling Directors' Requirements, the Methodology for Performance Assessment of Directors, the Rules Governing the Functional Responsibility of Independent Directors, the Internal Material Information Division and the Online Management Operating Procedures and the Procedures for Reporting Illegal and Unethical or Bad Faith Cases, as the procedures to be followed by the Directors, managers and employees.

In addition, the Company shall cooperate with the determination or amendment of the relevant laws and regulations of the Competent Authority to complete the determination and amendment of the "Rules of Procedure of the Shareholders' Meeting", "Code of Practice on Corporate Governance", "Code of Practice on Sustainable Development", etc., and disclose them on the Company's website for download reference.

54

10) Status of Implementation of Internal Control System

a) Statement of Internal Control:

Aurora Corporation

Statement on Internal Control

Date: March 16, 2022

Aurora makes the following statement according to the self-evaluation conducted of the internal control system in 2021:

1. Aurora acknowledges that it is the responsibility of the Board of Directors and managerial officers to establish, implement, and maintain the established internal control system. Its purpose is to reasonably ensure that operational effectiveness and efficiency (including income, performance, and asset safety) and reporting are reliable, timely, and transparent, as well as to ensure compliance with relevant regulations and laws.

2. An internal control system has inherent limitations. No matter how perfectly designed, an effective internal control system can provide only reasonable assurance of accomplishing its 3 stated objectives above. Moreover, the effectiveness of an internal control system may be subject to changes due to extenuating circumstances beyond control. Nevertheless, the internal control system contains self-monitoring mechanisms, and Aurora takes immediate remedial actions in response to any identified deficiencies.

3. Aurora evaluates the design and operating effectiveness of the internal control system based on the criteria provided in the "Regulations Governing the Establishment of Internal Control Systems by Public Companies" (herein below, the "Regulations"). The criteria adopted by the Regulations identify 5 components of internal control based on the process of management control: 1. control environment; 2. risk assessment; 3. control activities; 4. information and communication; and 5. monitoring operations. Each key component includes several items. Please refer to the Regulations for the aforementioned items.

4. Aurora has evaluated the design and operating effectiveness of the internal control system according to the Regulations.

5. In accordance with the aforementioned evaluation, Aurora has found that the design and implementation of the internal control system (including the assessment and management of subsidiaries), as of December 31, 2020, including the efficacy of understanding operations, the efficiency of achievement of objectives, reliability in reporting, timeliness, and compliance with the relevant guidelines and laws, are effective and can reasonably provide assurance of the aforesaid goals.

6. This statement is an integral part of Aurora's annual report and prospectus and will be made public. Any falsehood, concealment, or other illegality in the content made public will entail legal liability under Articles 20, 32, 171, and 174 of the Securities and Exchange Act.

7. This statement has been approved on March 16, 2022, by the Board of Directors, and out of the 7 Board members in attendance, none has objected to this statement and all consented to the content expressed herein.

Aurora Corporation

Chairman: Yuan Hui-Hua

President: Chou Ming-Chung

55

  • 11) As of the date of publication of the latest annual report, the Company and its internal personnel were punished in accordance with the law, the Company's internal personnel violated the provisions of the internal control system, the main defects and improvement situation: There is no such circumstance.

  • 12) Significant resolutions of the Board of Shareholders and the Board of Directors for the most recent year and up to the date of publication of the Annual Report:

Shareholders' Meeting:

Important resolutions of the shareholders' meeting of the Company on July 15, 2021:

  • a) Recognition the Company's 2020 Annual Business Report and Financial Reports.

  • b) Recognition of the Company’s Earnings Distribution for 2020.

  • Implementation: Set 8/8/2021 as the ex-dividend date and distribute cash dividends (cash distribution of NT$ 5.7 per share) on 8/20/2021.

  • c) Cash distributed through the company based on capital surplus.

Implementation: Set. 8/8/2021 as the ex-dividend date and distribute cash dividends (cash distribution of NT$ 0.3 per share) on 8/20/2021.

  • d) Adopted the amendments to the Rules of Procedure of the General Meeting of Shareholders of the Company.

Implementation: Has been operated in accordance with the amended rules.

  • e) Adopted the amendments to the "Directors' Election Method" of the Company.

  • Implementation: Operated amended.

Board of Directors:

  • a) Resolution of the Board of Directors of the Company at its 9th Meeting of The 11th Session meeting on March 16, 2021:

  • (1) Adopted the Company's 2020 Employee Compensation Distribution Plan.

  • (2) Adopted the Company's 2020 Annual Business Report and Financial Report.

  • (3) Adopted the Company's 2020 Earnings Distribution Plan.

  • (4) Adopted the Distribution of Cash Dividends from capital surplus.

  • (5) Adoption of the amendments to the "Rules of Procedure for Shareholders' Meetings."

  • (6) Adoption of the amendments to the "Regulations Governing the Election of

56

Directors."

  • (7) Passed the re-establishment of the "Regulations Governing Procedure for Board of Directors Meetings" and the revocation of the original regulations.

  • (8) Passed the enactment of the "Rules Governing the Scope of Powers of Independent Directors."

  • (9) Passed the amendments to the "Codes of Ethical Conduct" and other 3 regulations.

  • (10) By convening the 2021 Ordinary General Meeting of Shareholders of the Company.

  • (11) During the period of acceptance of the shareholders' proposal at the 2021 Ordinary Shareholders' Meeting of the Company, the place of acceptance, the review criteria and the matters related to the workflow.

  • (12) Self-assessment report and “Statement of Internal Control System” issued by the Company through the 2020 Internal Control System.

  • (13) Passed the appointment of the Company's 2021 Certified Public Accountant and independence assessment.

  • (14) Passed the change in the custodian of the company seal for endorsements/guarantees to Mr. Chien Chia-Hsin from the legal department.

  • (15) Passed the Company's financing loans to 19 banks, including Mega Bills Finance Co., Ltd. in 2021, it is proposed that agree to authorize the chairman of the board to handle related matters such as quota application, increase or decrease or extension within the loan financing quota of each bank.

(16) Relocated to a new location through our OA business.

  • b) Resolution of the Board of Directors of the Company at its 10th Meeting of The 11th Session meeting on May 12, 2021:

  • (1) Adopted the Consolidated Financial Report of the Company for the first quarter of 2021.

  • (2) Adopted the Remuneration Committee's evaluation of the "management performance evaluation and remuneration system."

  • (3) Adopted the business needs of the company, it is proposed to increase the short and medium-term comprehensive quota of Yuanta Commercial Bank, and proposed to authorize the chairman to handle matters related to financing.

  • (4) Relocated to a new location through our OA business.

57

  • c) Resolution of the Board of Directors of the Company at its 11th Meeting of The 11th Session meeting on June 25, 2021:

  • (1) Approved the proposal for the postponement of the date and time of the 2021 General Meeting of Shareholders.

  • (2) According to the needs of the company's business, it is planned to increase the short-term quota of HSBC (Taiwan) Commercial Bank. It is proposed to agree to authorize the chairman of the board to handle matters related to financing.

  • d) Resolution of the Board of Directors of the Company at its 12th Meeting of The 11th Session meeting on July 15, 2021:

Adopted the company's 2020 annual cash dividend ex-dividend date, capital reserve allocation cash base date and distribution matters.

  • e) Resolution of the Board of Directors of the Company at its 13th Meeting of The 11th Session meeting on Aug 11, 2021:

Adopted the Company's Consolidated Financial Report for the second quarter of 2021.

  • f) Resolution of the Board of Directors of the Company at its 14th Meeting of The 11th Session meeting on Nov 10, 2021:

  • (1) Adopted the Company's Consolidated Financial Report for the third quarter of 2021.

  • (2) Adopted the establishment of the company's 2022 audit plan.

  • (3) Relocated to a new location through our OA business.

  • g) Resolution of the Board of Directors of the Company at its 15th Meeting of The 11th Session meeting on March 16, 2022:

  • (1) Adopted the Company's Employee Compensation Allocation Plan for 2021.

  • (2) Adopted the Company's 2021 Annual Business Report and Financial Report.

  • (3) Adopted the Company's 2021 Earnings Distribution Plan.

  • (4) Adopted the Distribution of Cash Dividends from capital surplus.

  • (5) Adopted the amendments to the Articles of Incorporation.

  • (6) Adoption of the amendments to the "Rules of Procedure for Shareholders' Meetings."

  • (7) Adopted to amend the Company's “Procedures for Acquisition or Disposal of Assets”.

58

  • (8) Adopted the development of the Code of Corporate Governance Practices of the Company.

  • (9) Adopted to reformulate the Company's Code of Practice for Sustainable Development and repealing the previous Corporate Social Responsibility Principles.

  • (10) Adopted the company's director selection plan.

  • (11) Requesting the approval of the shareholders' meeting regarding to the competitive conduct of the directors of the Company.

  • (12) Adopted to convene the 2022 General Meeting of Shareholders of the Company.

  • (13) During the period of acceptance of the Shareholders' proposal and Directors' nomination rights at the 2022 Ordinary Shareholders' Meeting of the Company, matters related to the place of acceptance, review criteria and operational procedures.

  • (14) Adopted the company's 2021 annual internal control system self-assessment report and issue the "Internal Control System Statement".

  • (15) Passed the appointment of the Company's 2022 Certified Public Accountant and Independence Assessment.

  • (16) Through the company's 2022 financing loans to 20 banks including Mega Bills Finance Co., Ltd., it is proposed to agree to authorize the chairman of the board to handle relevant matters such as quota application, increase or decrease or extension within the loan financing quota of each bank.

  • 13) If the directors disagree with the passing of a material resolution by the board of directors for the most recent year and up to the date of publication of the Annual Report, and there is a record or written statement to the contrary: No such circumstance.

  • 14) As of the date of publication of the most recent annual report, the summary of resignations of the chairman of the board of directors, the general manager, the chief accountant, the chief financial officer, the chief internal audit officer, the chief corporate governance officer and the chief research and development officer of the company: No such circumstance.

59

e. Certified Public Accountant Fee Information:

Unit: NT$1,000

Name of CPA
Firm		 CPA
Name		 CPA
Audit
Period		 Audit Fees Non-audit
Fees		 Total Remark
Deloitte &
Touche		 Chih
Jui-Chuan		 Year 2021
 3,009 816 3,825 Tax
Compliance
Audit
Hsieh
Chien-Hsin
Syu
Siao-Ting		 Year 2021 180
180		 Transfer
pricing

  • 1) Replacement of the accounting firm and a decrease in the audit expense paid for the year compared with the audit expense paid for the year before the replacement: No such circumstance.

  • 2) Cases where public audit fee decreased by more than 10% compared to the previous year: No such circumstance.

f. Replacement of CPA: No such circumstance.

  • g. The chairman of the board of directors, the general manager, the manager in charge of the financial or accounting affairs of the company, who has worked in a firm of visa accountants or an affiliated enterprise thereof in the last year: no such circumstance.

  • h. Any Transfer of Equity Interests and/or Pledge of or Change in Equity Interests (during the Most Recent Fiscal Year and during the Current Fiscal Year Up to the Date of Publication of the Annual Report) by a Director, Managerial Officer, or Shareholder with a Stake of More than 10%

  • 1) Changes in shareholdings of directors, managers and major shareholders:

Unit: Shares

Year 2021 Year 2022 end to April 11 Year 2022 end to April 11
Number of Number of
Shares Held Shares Shares Held Shares
Job Title Name
Increase Pledged Increase Pledged
(decrease) Increase (decrease) Increase
(decrease) (decrease)
Chairman Yuan Hui-Hua 14,000
0
1,000
0
Director Chen Yung-tai 0
(710,000)		 0
0
Director Aurora Holdings
Incorporated		 0
1,437,550
0
1,100,000
Representative:
Rai Hau-Min		 0
0
0
0
Director Ma Chih-Hsien 0
0
0
0

60

Year 2021 Year 2022 end to April 11 Year 2022 end to April 11
Number of Number of
Shares Held Shares Shares Held Shares
Job Title Name
Increase Pledged Increase Pledged
(decrease) Increase (decrease) Increase
(decrease) (decrease)
Independent
Director		 Liao Kuo-Jung 0
0
0
0
Independent
Director		 Hwa Yueh-Jiuan 0
0
0
0
Independent
Director		 Hsu Wen-Chung 0
0
0
0
Managerial
Officer		 Chou Ming-Chung 0
0
0
0
Managerial
Officer		 You Yan-Lin 0
0
0
0
Managerial
Officer		 Lin Chin-Pao 0
0
0
0
Major
Shareholder		 Aurora Holdings
Incorporated
(Note 1)		 0
1,437,550
0
1,100,000
Financial and
Accounting
Manager
Lin Ya-Ling		 0
0
0
0

Note1: Major shareholders holding more than 10% of the shares.

  • 2) Equity transfer information: The counterparty of the equity transfer is a non-related person, so there is no information on this item.

  • 3) Equity pledge information: The counterparty of the equity pledge is a non-related person, so this information is not available.

61

i. Relationship among the 10 Largest Shareholders

Relationship among the 10 Largest Shareholders

April 11, 2022

Unit: shares; %

The names or names and The names or names and Remark
relationships of the top ten
shareholders who have
relationship defined in
Spouse & Minor Shareholding by Statements of Auditing
Current Shareholding
Shareholding Nominees Standards No. 6 or who are
Name relatives within the scope of
the spouse or the
second-degree relative of
kinship.
Number of Shareholding
Number		 Shareholding
Number of
Shareholding

Name		 Relationship
Shares Ratio (%) of Shares Ratio (%) Shares Ratio (%)
Aurora Holdings
Incorporated		 101,856,312
43.12
－		 － 0
0.00		 Chen Yung-tai Chairman
Huxen
Corporation		 Investee
accounted for
using the
equity
method

Aurora Office
Automation
Corporation		 Investee
accounted for
using the
equity
method
Aurora
Development
Corp.		 Investee
accounted for
using the
equity
method
Representative:
Chen Yung-tai		 21,269,000
9.00
0
0.00
0
0.00		 Y.T.Chen
Sustainable
Management
Foundation		 Same person
as the
company's
chairman

BC
International
Investment
Limited		 Relative with
the chairman
of the
company
within the
second
degree of
kinship
Nison
International
Investment
Management
Co Ltd		 Relative with
the chairman
of the
company
within the
second
degree of
kinship
Chen Yung-tai 21,269,000
9.00		 1,184,000
0.50
0
0.00		 Aurora
Holdings
Incorporated		 The
company's
chairman

Y.T.Chen
Sustainable
Management
Foundation		 The
company's
chairman

62

The names or names and The names or names and Remark
relationships of the top ten
shareholders who have
relationship defined in
Spouse & Minor Shareholding by Statements of Auditing
Current Shareholding
Shareholding Nominees Standards No. 6 or who are
Name relatives within the scope of
the spouse or the
second-degree relative of
kinship.
Number of Shareholding
Number		 Shareholding
Number of
Shareholding

Name		 Relationship
Shares Ratio (%) of Shares Ratio (%) Shares Ratio (%)
BC
International
Investment
Limited		 Relative
within the
second
degree of
kinship of the
company's
chairman
Nison
International
Investment
Management
Co Ltd		 Relative
within the
second
degree of
kinship of the
company's
chairman
Aurora Leasing
Corporation		 20,791,276
8.80
－		 － 0
0.00
Huxen
Corporation		 Investor
accounting
for the
investee
using the
equity
method
Representative:
Liao Qing-zhang		 109
0.00
0
0.00
0
0.00
Huxen
Corporation		 Same person
as the
company's
chairman
Aurora Office
Automation
Corporation		 12,496,797
5.29
－		 － 0
0.00
Aurora
Holdings
Incorporated		 Investor
accounting
for the
investee
using the
equity
method
Representative:
Chen Zhen-sheng		 32
0.00
0
0.00
0
0.00
-		 -
Nison
International
Investment
Management Co
Ltd		 11,970,000
5.07
－		 － 0
0.00
-		 -
Representative:
Yuan Hui-hua		 1,184,000 0.50 0 0.00 0 0.00 Aurora
Holdings
Incorporated		 Relative with
the chairman
of the
company
within the
second
degree of
kinship
Chen Yungtai
Sustainable
Management
Foundation		 Relative with
the chairman
of the
company
within the
second
degree of
kinship

63

The names or names and The names or names and Remark
relationships of the top ten
shareholders who have
relationship defined in
Spouse & Minor Shareholding by Statements of Auditing
Current Shareholding
Shareholding Nominees Standards No. 6 or who are
Name relatives within the scope of
the spouse or the
second-degree relative of
kinship.
Number of Shareholding
Number		 Shareholding
Number of
Shareholding

Name		 Relationship
Shares Ratio (%) of Shares Ratio (%) Shares Ratio (%)
BC
International
Investment
Limited		 Relative with
the chairman
of the
company
within the
second
degree of
kinship
Chen Yung-tai Relative with
the chairman
of the
company
within the
second
degree of
kinship
Huxen
Corporation		 9,435,182
3.99
－		 － 0
0.00		 Aurora
Holdings
Incorporated		 Director
Investor
accounting
for the
investee
using the
equity
method

Aurora
Development
Corp.		 Investor
accounting
for the
investee
using the
equity
method
Aurora Leasing
Corporation		 Investee
accounted for
using the
equity
method
Representative:
Liao Qing-zhang		 109
0.00
0
0.00
0
0.00		 Aurora Leasing
Corporation		 Same person
as the
company's
Chen Yung-tai
Sustainable
Management
Foundation
as a consortium
legalperson		 7,000,000
2.96
－		 － 0
0.00		 Chen Yung-tai Chairman
Representative:
Chen Yung-tai		 21,269,000
9.00
0
0.00
0
0.00		 Aurora
Holdings
Incorporated		 Same person
as the
company's
chairman

BC
International
Investment
Limited		 Relative with
the chairman
of the
company
within the
second

64

The names or names and The names or names and Remark
relationships of the top ten
shareholders who have
relationship defined in
Spouse & Minor Shareholding by Statements of Auditing
Current Shareholding
Shareholding Nominees Standards No. 6 or who are
Name relatives within the scope of
the spouse or the
second-degree relative of
kinship.
Number of Shareholding
Number		 Shareholding
Number of
Shareholding

Name		 Relationship
Shares Ratio (%) of Shares Ratio (%) Shares Ratio (%)
degree of
kinship
Nison
International
Investment
Management
Co Ltd		 Relative with
the chairman
of the
company
within the
second
degree of
kinship
Aurora
Development
Corp.		 5,308,766
2.25
－		 － 0
0.00
Aurora
Holdings
Incorporated		 Director
Investor
accounting
for the
investee
using the
equity
method
Representative:
Chen Li-zhen		 2,000
0.00
0
0.00
0
0.00
Aurora Office
Automation
 Director
BC International
Investment
Limited		 4,250,000
1.80
－		 － 0
0.00		 ~~Corporation~~

－		 －
Representative:
Chen Guan-bai		 0
0.00
0
0.00
0
0.00		 Aurora
Holdings
Incorporated		 Relative with
the chairman
of the
company
within the
second
degree of
kinship

Y.T.Chen
Sustainable
Management
Foundation		 Relative with
the chairman
of the
company
within the
second
degree of
kinship
Nison
International
Investment
Management
Co Ltd		 Relative with
the chairman
of the
company
within the
second
degree of
kinship
Chen Yung-tai Relative with
the chairman
of the
company
within the
second

65

==> picture [487 x 208] intentionally omitted <==

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

The names or names and
relationships of the top ten
shareholders who have
relationship defined in
Spouse & Minor Shareholding by Statements of Auditing
Current Shareholding
Shareholding Nominees Standards No. 6 or who are
Name relatives within the scope of
the spouse or the
second-degree relative of
kinship.
Number of Shareholding Number Shareholding Number of Shareholding
Name Relationship
Shares Ratio (%) of Shares Ratio (%) Shares Ratio (%)
degree of
kinship
Shin Kong Life
Insurance Co., 3,426,000 1.45 － － 0 0.00 － －
Ltd.
Remark
----- End of picture text -----

  • j. The number of shares held by the company, its directors, managers and enterprises directly or indirectly controlled by the company in the same reinvested enterprise and the comprehensive shareholding ratio:

April 11, 2022

Unit: shares; %

Investment by Investment by
Directors/Managerial
Ownership by the Company
Officers and Companies		 Consolidated Investment
Investee business Directly or Indirectly
Controlled byAurora
Number of Shareholding Number of Shareholding Number of Shareholding
Shares ratio(%) Shares ratio(%) Shares ratio(%)
Aurora (Bermuda)
Investment Holding Co.,
Ltd.		 67,350,000
88.04%
9,150,000
11.96%
76,500,000
100.00%
Aurora Office Automation
Corporation		 82,277,763
91.13%
7,536,672
8.34%
89,814,435
99.47%
Huxen Corporation 47,010,591
32.53%
50,552,712
34.99%
97,563,303
67.52%
Aurora Telecom Co.,Ltd. 13,164,970
30.40%
-		 - 13,164,970
30.40%
Aurora Development Corp. 32,497,696
46.67%		 37,140,224
53.33%
69,637,920
100.00%
General Integration
TechnologyCo.,Ltd.		 5,465,000
55.00%
-		 - 5,465,000
55.00%
KM Developing Solutions
Co.,Ltd.		 7,000,000
70.00%
-		 - 7,000,000
70.00%
Ever Young Biodimension
Corporation		 858,000
26.00%
825,000
25.00%
1,683,000
51.00%
Aurora Machinery
Equipment (Shanghai) Co.,
Ltd.		 17,500,000
70.00%
7,500,000
30.00%
25,000,000
100.00%

66

4. Fundraising Situation

a. Capital and Shares:

1) Share Capital Source:

a) Share Capital Formation

April 11, 2022

Authorized Capital Authorized Capital Paid-in Capital Paid-in Capital Remark

Issue
Price		 Capital Increase
Year/Month

Number of		 Number of
Amount Amount Source of Capital by Assets Other Others

Shares		 Shares
than Cash
1989.12 10 82,350,000
823,500,000
82,350,000
823,500,000
Capital at the time of establishment NT$ 200,000
Cash capital increase of NT$ 443,300,000
Consolidated capital increase of NT $ 380,000,000
1990.10 10 105,000,000
1,050,000,000
105,000,000
1,050,000,000
Transfer of capital surplus to increase in
capital of NT$ 15,896,500
Surplus transferred to capital increase of NT$ 110,603,500
1992.01 10 120,750,000
1,207,500,000
120,750,000
1,207,500,000		 Surplus transferred to capital increase of NT$ 157,500,000
1992.10 10 132,825,000
1,328,250,000
132,825,000
1,328,250,000		 Surplus transferred to increase in capital of
NT$120,750,000
1993.10 10 152,748,750
1,527,487,500
152,748,750
1,527,487,500		 Surplus transferred to increase in capital of
NT$199,237,500
1994.09 10 178,716,037
1,787,160,370
178,716,037
1,787,160,370
Capital surplus transferred to capital increase
of NT$ 43,955,852
Surplus transferred to capital increase of NT$ 204,683,320
Consolidated
capital
increase
of
NT$ 11,033,698

1995.08 10 220,000,000
2,200,000,000
214,459,245
2,144,592,450		 Surplus transferred to capital increase of NT$ 357,432,080
1996.08 10 500,000,000
5,000,000,000
285,905,169
2,859,051,690
Surplus transferred to capital increase of NT$ 214,459,240
Cash capital increase NT$500,000,000
1997.06 10 500,000,000
5,000,000,000
314,495,687
3,144,956,870
Surplus transferred to capital increase of NT$ 142,952,590
Capital surplus transferred to capital increase
of NT$142,952,590
1998.06 10 500,000,000
5,000,000,000
332,495,687
3,324,956,870		 Cash capital increase of NT$ 180,000,000
1998.07 10 500,000,000
5,000,000,000
398,994,825
3,989,948,250		 Surplus transferred to capital increase of NT$ 664,991,380
1999.06 10 800,000,000
8,000,000,000
504,868,581
5,048,685,810
Surplus transferred to capital increase of NT$ 558,592,760
Capital surplus transferred to capital increase
of NT$ 239,396,890
Convertible corporate bonds NT$260,747,910
2000.01 10 800,000,000
8,000,000,000
518,208,594
5,182,085,940		 Conversion of corporate bonds into shares
NT$133,400,130
2000.06 10 800,000,000
8,000,000,000
626,796,846
6,267,968,460
Capital surplus transferred to capital increase
of NT$ 207,283,440
Surplus transferred to capital increase of NT$ 829,133,750
Corporate bonds converted into shares NT$ 49,465,330

2001.01 10 800,000,000
8,000,000,000
627,177,086
6,271,770,860		 Corporate bonds to be converted into shares
NT$3,802,400
2001.07 10 800,000,000
8,000,000,000
685,394,795
6,853,947,950		 Capital surplus transferred to capital increase
of NT$582,177,090
2002.11 10 800,000,000
8,000,000,000
376,967,137
3,769,671,370		 Decrease in capital: NT$ 3,084,276,580
2003.09 10
800,000,000
8,000,000,000
352,217,137
3,522,171,370		 Decrease in capital of NT$ 247,500,000
2006.06 10 500,000,000
5,000,000,000
352,217,137
3,522,171,370		 Decrease in the total capital of the amended
articles of association of NT$3,000,000,000
2007.05 10 500,000,000
5,000,000,000
337,217,137
3,372,171,370		 Decrease of NT$ 150,000,000
2007.07 10 500,000,000
5,000,000,000
327,217,137
3,272,171,370		 Decrease of NT$ 100,000,000
2007.08 10 500,000,000
5,000,000,000
334,486,715
3,344,867,150
Surplus transferred to capital increase of NT$ 6,344,350
Capital surplus transferred to capital increase
of NT$ 57,099,090
employee bonus transferred to capital increase
of NT$9,252,340

2007.09 10 500,000,000
5,000,000,000
324,486,715
3,244,867,150		 Decrease of NT$ 100,000,000
2008.08 10 500,000,000
5,000,000,000
337,432,169
3,374,321,690
Surplus transferred to capital increase of NT$ 3,244,870
Capital surplus transferred to capital increase
of NT$ 113,570,350
Employee bonus transferred to capital increase
of NT$12,639,320

2017.07 10 500,000,000
5,000,000,000
236,202,518
2,362,025,180		 Decrease in capital: NT$ 1,012,386,510

67

b) Type of share capital

Authorized Capital Authorized Capital
Share Type Remark
Issued Shares Unissued Shares Total
**Common stock ** 236,202,518 263,797,482 500,000,000 Listed stocks

c) General information about the reporting system: None.

2) Shareholder structure:

April 11, 2022

Structure Foreign
Other
Government
Financial		 Natural Institutions

institutional		 Total
Agencies Institutions Persons and Natural

shareholders
Item Persons
Number of
shareholders		 1
5
59
15,611
97
15,773
Shares Held 14
5,718,000		 181,577,589
44,616,053
4,290,862
236,202,518
Shareholding
ratio(%)		 0.00
2.42
76.87
18.89
1.82
100.00

3) Equity Diversification:

a) Common Shares: NT$ 10 Per share

April 11, 2022

Number of Number of shares
Range of Shares Shareholding ratio (%)
shareholders held
1 to 999 11,324
2,884,746
1.22
1,000 to 5,000 3,807
7,078,775
3.00
5,001 to 10,000 313
2,243,314
0.95
10,001 to 15,000 108
1,336,780
0.57
15,001 to 20,000 58
1,031,588
0.44
20,001 to 30,000 51
1,275,505
0.54
30,001 to 40,000 15
535,974
0.23
40,001 to 50,000 14
619,664
0.26
50,001 to 100,000 31
2,222,807
0.94
100,001 to 200,000 18
2,771,348
1.17
200,001 to 400,000 15
4,344,182
1.84
400,001 to 600,000 1
429,100
0.18
600,001 to 800,000 1
692,600
0.29
800,001 to 1,000,000 1
927,345
0.39
1,000,001 or more 16
207,808,790
87.98
Total 15,773
236,202,518
100
  • b) Special shares: None.

68

4) List of major shareholders:

April 11, 2022 April 11, 2022 April 11, 2022
Shares
Shares Held		 Shareholding
Name of Major Shareholders ratio(%)
Aurora Holdings Incorporated 101,856,312
43.12%
Chen Yung-tai 21,269,000
9.00%
Aurora LeasingCorporation 20,791,276
8.80%
Aurora Office Automation Corporation 12,496,797
5.29%
Nison International Investment Management Co Ltd 11,970,000
5.07%
Huxen Corporation 9,435,182
3.99%
Y.T. Chen Sustainable Management Foundation 7,000,000
2.96%
Aurora Development Corp. 5,308,766
2.25%
BC International Investment Limited 4,250,000
1.80%
Shin KongLife Insurance Co.,Ltd. 3,426,000
1.45%
  • 5) Price, net worth, earnings, dividends and related information per share for the last two years:
Unit: NT$ thousand
Year Year 2022 end to
Year 2020 Year 2021
Item April 11
Market
Price Per
Share		 Highest 94.80 94.70 92.70
Lowest 77.70 85.30 88.80
Average 87.49 90.65 90.07
Net Worth
per Share		 Before distribution 33.93 33.79 ─
After distribution 27.94 (Note 1) ─
Earnings
per Share		 Weighted average number of
shares(thousand shares)		 224,814 224,814 ─
Earningsper share(note 2:) 6.40 6.19 ─
Dividends
per Share		 Cash Dividends 6.00 6.00(Note 1) ─

Free
allotment		 Surplus allotment 0 0 ─

Stock dividends
appropriated from
capital surplus		 0 0 ─
Accumulated unpaid dividends 0 0 ─
Return on
Investment		 Price-to-EarningRatio(note3) 13.67 14.64 ─
Price to dividend Ratio(note 4) 14.58 15.11 ─

Cash Dividend Yield
Ratio(note5)		 6.86% 6.62% ─

Note 1. The profit distribution plan will be determined after the resolution of the next annual general meeting of shareholders is passed.

  • Note 2. Calculated based on the weighted average number of shares in the current year.

  • Note 3. Price-to-Earning Ratio = average closing price per share for the current year/earnings per share;

  • Note 4. Price-to-Earning ratio = average closing price per share for the year / cash dividend per share;

  • Note 5. Cash Dividend Yield Ratio= cash dividend per share/average closing price per share for the year.

  • Note 6. Net earnings per share and earnings per share should be entered in the information verified (reviewed) by the accountant for the most recent quarter as of the date of publication of the annual report; the remaining fields should be entered in the information for the year as of the date of publication of the annual report.

69

6) Company dividend policy and implementation status:

  • a) Dividend policy of the Company:

The Company's dividend policy is determined by the Board of Directors based on the operating conditions, capital requirements, changes in the overall internal and external environment and taking into account the interests of shareholders. The Company's industry is currently in a stable and growing stage. The capital requirements have eased. In the future, it is possible to return the operating results to shareholders. In the absence of special circumstances, the principle of distribution shall be no less than 50% of the post-tax earnings of the current year.

In consideration of business development, finances, capital expansion, and shareholders’ equity, Aurora distributes dividends in the combination of cash and stock, where cash dividends distributed are more than 10% of the dividends distributed for the year.

b) Dividend distribution proposed at this shareholders' meeting:

The shareholders' dividend payable to shareholders for the year 2021 is NT$1,228,253,094, all of which are proposed to be distributed in cash of NT$5.2 per share, and the capital reserve of NT$188,962,014, which is proposed to be distributed to shareholders in excess of the excess amount of shares issued in nominal amount, is NT$0.8 per share. After the 2022 General Meeting of Shareholders passes, the base date and distribution date of the cash dividend distribution shall be determined separately.

  • 7) The impact of the gratuitous allotment of shares proposed by the Board of Shareholders on the company's operating results and earnings per share: Not applicable.

8) Remuneration of employees and directors:

  • a) The number or scope of the remuneration of employees and directors contained in the company's articles of association:

If the company has a profit in the year (the so-called profit refers to the profit before tax deducting the profit before the distribution of employee compensation), it should set aside 10% to 10% as employee compensation; however, when the company still has accumulated losses, it should make up.

The counterparties to whom remuneration shall be distributed in cash or stock as stated in the preceding paragraph includes the employees of Aurora's subordinate companies that meet certain criteria.

70

A resolution adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors for the preceding two paragraphs shall be reported to the shareholders' meeting.

  • b) The basis for estimating the amount of remuneration of employees and directors listed in the current period, the basis for calculating the number of shares of employee remuneration distributed by shares, and the accounting treatment when the actual amount of distribution differs from the estimated amount:

  • i. The Company has not paid remuneration to directors and supervisors in the past years.

  • ii. Employee compensation is calculated at 1% of profit. If the amount remains unchanged, it is treated as a change in accounting estimate and adjusted to account in 2022.

  • c) Situation of remuneration distributed by the Board of Directors:

  • i. On March 16, 2022, the Board of Directors of the Company resolved to allocate remuneration as follows:

Resolution to distribute employee remuneration: NT$ 16,370,000

Allocation of remuneration to directors and supervisors: NT$ 0

There is no difference from the estimated amount in the year in which the expense is recognized.

  • ii. The amount of employee remuneration distributed in stock and the proportion to the total amount of the net profit after tax and total employee remuneration in the current period's individual or individual financial report: Not applicable

  • d) The actual distribution of remuneration for employees and directors in the previous year:

On March 16 and July 15, 2021, respectively, the Board of Directors and the Shareholders' Regular Meeting of the Company resolved the distribution of employee remuneration for the year 2020 as follows:

Approved by the original
Actual distribution
(2020) Board of Directors
Item Difference
(NT$ thousand) Distribution of resolutions
(NT$thousand)
Employee Remuneration
16,750		 16,750 0
Director Remuneration 0
0
0
  • 9) The company repurchased the company's shares: There is no such circumstance.

71

  • b. Situation of corporate bonds: There is no such circumstance.

  • c. Status of special shares: No such circumstance.

  • d. Overseas Depository Certificate Processing: None.

  • e. Employee stock option certificate handling situation: No such circumstance.

  • f. Restriction on the handling of new shares of employees' rights: No such circumstance.

  • g. Mergers and acquisitions of shares of other companies for the issuance of new shares: None.

h. Implementation of Capital Allocation Plans

1) Plan Content:

As of the quarter prior to the publication date of the Annual Report, the previous issue or private placement of securities had not been completed or had been completed within the last three years and the benefits of the plan had not yet been demonstrated: None.

2) Status of implementation: None.

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5. Overview of Operations

a. Business Activities

1) Business scope

  • a) The main business content includes:

  • i. Office equipment: Deal with sales of office machinery (photocopiers, fax machines, printers and clock bells, etc.) and related accessories, consumables and service maintenance business; sell proprietary branded office electronics such as computers, shredders, shellfish machines.

  • ii. Office furniture: sales of the production, design development, sales and relocation installation and maintenance services of the products such as desk, office chair, filing cabinet, screen, wooden appliances, etc.

  • iii. Office document integration planning: providing customized software, hardware construction services, corporate document management and document information security package services.

  • iv. 3D products: sales agent of 3D product design/scanning/printing software and hardware equipment sales and specific industry solution research and development and services.

  • b) Operating proportion:

Unit: NT$ thousand

Type of Product Amount in 2021 Percentage(%)
Office Equipment 8,149,571 60.0
Office Furniture 5,358,568 39.5
Others 69,118 0.5
Total 13,577,257 100.0

  • c) The Company's current goods (services) projects and planned new goods (services):

  • i. Office equipment: multi-function photocopiers, fax machines, clocks, printers, projectors, video equipment, interactive electronic whiteboards, digital signage and other intelligent equipment and office solutions (cloud human resources systems, intelligent space applications ) and other sales and leasing, and electronic products (computers, air purifiers, shredders), and provide the most complete after-sales service to help customers improve office efficiency.

  • ii. Office furniture: systematic sales and leasing of office desks, office chairs, filing cabinets, screens, wood products, sofas, coffee tables, and cubicles, as well as integrated services such as office space planning and design, relocation, etc.

73

  • iii. 3D products: agency sales of 3D software and hardware equipment, providing a full range of technical services for industrial 3D digital design, development and manufacturing, shortening the development time of the industry. In addition to agency sales, we also have a professional R&D team to develop customized 3D software, and develop an exclusive process for complete equipment and software integration for unique industries.

  • iv. Office cloud services: provide cloud-based human resources systems, AI interviewing systems, face recognition systems, customer management systems, electronic signature verification and other multifaceted cloud services to reduce the enterprise information costs and schedules, rapidly deploy digital transformation, and build the smart enterprises.

2) Industry overview:

Current Status and Industrial Development
Industry Competition
Development Link Trends
Office
equipment
1. As a result of direct
competition with Japanese
manufacturers and IT
companies and the
transparency of online
information, the
competition is intensifying.
2. Despite the impact of
COVID-19, new business
machines still maintain a
certain demand.
3. Shredder, clock-in,
computer, and laminator
markets have become
saturated.		 High Colorization
Digitization		 Aurora is the leading
distributor in Taiwan.
Office
Furniture		 1. The business model of the
industry has changed from
pure price competition to
the use of solutions for
various office space
products, equipment and
planning services to assist
customers in empowering
customers.
2. According to international
research, companies are
currently moving towards
innovative organizations,
and the planning of office
space should incorporate
elements such as
transparency, flexibility,
teamwork,and		 High Artificial
intelligence
Eco-friendly
People-centric
Style aesthetics
Health-oriented

1. The company occupies
a leading position in the
domestic office furniture
brand. It is jointly
designed and developed
by the R&D centers on
both sides of the Taiwan
Strait, and is equipped
with its own factory,
assembly, and logistics
team to provide a full
range of office planning
services.
2. The ACTIVA smart
office solution has been
launched in 2020 to meet
the space planning needs
of innovative enterprises;

74

Current Status and Industrial Development
Industry Competition
Development Link Trends
communication innovation
to improve employee
efficiency and meet the
needs of innovative
organizational planning.
3. In the process of the impact
of the epidemic, when
choosing office space
products, equipment and
planning services,
enterprises will pay more
and more attention to
whether the relevant office
equipment and services are
sufficient to provide the
elements that can improve
the physical and mental
health of colleagues.		 focus on the products,
equipment and planning
services of office space
with international health
standards, and implement
the idea of efficient and
healthy office.
3D
Products		 1. Along with EV electric
vehicles, Metaverse, NFT
issues and the global
Covid-19 cover, Taiwanese
companies will return and
expand production
opportunities, which in turn
will increase 3D
inspection/3D reverse
demand to accelerate new
product development.
However, the low prices of
foreign brands made by
mainland OEMs have
intensified the competition
of foreign high-end 3D
scanning machines.
2. As the patent for 3D
printing technology has
passed, the market is
transparent and new brands
have been launched one
after another. For
single-color and
single-material applications
in product prototyping
technology, customers have
more choices and the unit
price is getting cheaper. In
recent years, the Covid-19
epidemic has spread
globally.,forcingchanges		 High Industrial
application		 1. In recent years, 3D
scanners have been
popular, making it easier
to use, easier to use, and
more widely used with
improved accuracy.
Although affected by the
market price, the
international certification
of 3D scanners agented
by our company is a great
guarantee for customers
who demand quality
assurance.
2. 3D printing towards
production is the future
trend. Small quantities,
flexible manufacturing
and quick order grabbing
will enable major 3D
printing manufacturers to
gradually open up their
material parameters and
use the final product
materials for rapid
production (high-speed
printing) and flexible
manufacturing. Replace
the traditional production
process.
3. B2C pays more
attention to commodity

75

Current Status and Industrial Development
Industry Competition
Development Link Trends
in the supply and demand of
the supply chain, and the
rise of "3D printing
on-demand production",
replacing the traditional
manufacturing process,
jumping out of appearance
design, and moving towards
functionality and the
production of end-user parts
(End-User Part).
3. Full-color 3D printers open
the unlimited imagination
of custom 3D printed
products, making the
application more diverse,
including celebrity special
gifts, advertising copy
ideas, and souvenir
products. Through B2C talk
fermentation, it extends to
B2B enterprises into market
operation.


refinement (high CP
quality), efficiency (short
delivery period) and
customization (diversity)
than the industrial field,
testing the software and
hardware technology
integration capabilities of
3D printing companies.
The Company is not only
an equipment agent, but
also has the ability to
develop customized
products and make
flexible adjustments to
meet customer needs.

The relationship between the upper, middle and lower reaches of the office equipment and 3D printer industry:

==> picture [443 x 115] intentionally omitted <==

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

Firms
Brand suppliers
Distributors
Government agencies
(Agents, distributors, and schools
Whole-machine
system integrators)
manufacturers Consumers
----- End of picture text -----

The relationship between the upper, middle and lower reaches of the office furniture industry:

==> picture [447 x 106] intentionally omitted <==

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

Raw material
Firms
Manufacturing Distributors
and assembly (Agents,
Semi-finished
distributors,
products
system
integrators) Consumers
Brand suppliers
----- End of picture text -----

76

3) Technology and R&D overview:

  • a) The company mainly operates marketing business, technology and research and development focus on document information security management system, 3D and office furniture products. In 2021, research and development expenses will be NT$ 270,166 thousand, accounting for 2% of revenue. R&D expenses are estimated at NT$ 270,000 thousand in 2022.

  • b) Office Equipment

  • i. Office equipment: Products research and development is mainly based on the combination of the original OSA (Open Architecture System) and cooperative manufacturers to develop document solutions with digital computers.

  • ii. 3D products: Focusing on commercial markets such as automobiles, consumer goods, foundry, education and design, acting as an agent for the well-known brand Creaform in metrology-grade 3D scanning and global 3D printing leader Stratasys, with distinctive product highlights and clear target customers, coupled with global Customer application feedback, etc. to ferment the Taiwan market, and increase the high trust of customers. Among them, MetraSCAN under the Creaform brand specializes in high-end fields, and even combined with automated testing, it has become a market topic to attract customers' attention. At the same time, in order to accelerate the entry into the era of Laminate Manufacturing 2.0, Stratasys' latest manufacturing-grade 3D printer includes design concepts (composite material printing)/functional testing (SAF nylon powder sintering technology), and even high-speed printing, small batch production ( P3 technology Origin One system, emphasizing open commercial materials), allows design and production to be in place at one time, and turns to multi-layer manufacturing to replace traditional manufacturing. In recent years, the 3D printing market has been extended to 2C customized 3D printing products, such as 2.5D embossed photographs, 3D printing key rings, ring field 3D photo studios, and automatic 3D portrait doll applications such as 2D generation.

  • c) Office furniture: Adhere to the "user-centric" product research and development, from office trend insights to designs that incorporate Aurora-dam DNA, to provide customers with high-quality spatial solutions. Starting from 2020, we will promote the development axis ACTIVA Smart Office solution to provide different scenario solutions based on the behavioral needs of different types of activities in the office space by innovative organizations. We will integrate smart, environmentally friendly and healthy furniture products, equipment and planning services to improve work efficiency and employee happiness. Having been integrating vantage resources in Taiwan and mainland China, Aurora Innovation Center offers cozy and productive office space solutions, and has extended its successful experience in the office furniture sector to the development of furniture for educational and medical spaces.

77

4) Long-term and short-term business development plans:

  • a) Short-term plans:

  • i. Office Equipment:

Develop the business area intensively, do a good job in CRM, strengthen market competitiveness, and maintain a leading position in the market. 

  - Use effective strategies to focus on the medium and large colour printing press market to increase business size and printing volume.

  - Rapidly expand the market by specializing in large companies

  - Through a robust direct sales service network.

  • ii. Office furniture:

    • Provide integration services, enhance solutions, focus on health standards, integrate logistics resources Good service, solid leadership.

  • iii. 3D Products: provide expertise, integration, solutions for sales service orientation, establish physical sales pipeline, and constantly introduce new materials and equipment, provide diversified material selection to reduce costs and increase profitability.

  • iv. Cloud services: With cloud architecture and customized advantages, develop a comprehensive human resources intelligence platform to meet the needs of the enterprise market. It integrates the diverse services such as AI interviewing system and face recognition system to improve customer product occupancy, help enterprises to digitally transform and develop intelligent enterprises.

  • b) Long-term plan:

  • i. Office equipment: grasp the trends of the industry, continue to pay attention to the improvement of real profits, and combine software + hardware solutions to develop related businesses.

  • ii. Office furniture: Combine the advantages of design, R&D, production, marketing, logistics and vertical integration to quickly grasp the trends of the industry and meet customer needs; strengthen the link between goods, equipment and planning services with international health norms; introduce a cloud solution for smart factories to improve production efficiency and quality with smart manufacturing, with the goal of becoming a leading brand for integrated planning services in the office space.

iii. 3D Products:

78

  • Explore potential market demand by combining the existing OA vast access resources with software and hardware solutions. At the same time, the four major industries of automobile, education, medical care and consumer electronics are targeted to provide more precise and professional high-end process requirements.

  • Integrate the 3D software and hardware technology accumulated over the years, cooperate with new products and equipment, and develop application models for new industries, so as to create new business models and increase equipment sales.

b. Analysis of Market and Production and Marketing Situation

1) Market Analysis

Type of Sales Supply Market Supply and Demand in the Market and Possible
Product Territory Territory Share Future Growth
Office
equipment
Taiwan
and
mainland
China		 Japan,
Taiwan，
Mainland
China,
Thailand		 20~25% 1. The market continues to grow slowly. As the
corporate procurement demand gradually rises
due to the rejuvenation of the spring, market
activities are expected to become more popular.
2. Increased market demand for customized
solutions helps to improve the competitiveness
and differentiation of commodities.
3. The color digital machine market is gradually
growing due to the active promotion of various
brands, and the market demand is also gradually
growing.
4. Market demand for air purifiers continues to
increase due to air pollution and the increasing
emphasis on air quality in the office
environment.
5. Due to the improvement of personal information
laws and confidentiality concepts, the market
for shredders continues to grow.
6. Due to the continuous development of the
epidemic, the demand for zero-contact and
remote office is increasing day by day, and the
demand for equipment such as video
communication systems, interactive electronic
whiteboards, and digital signage boards has
increased, driving market business
opportunities.
7. Among them, the use of digital signage by
enterprises, schools and retailers continues to
grow due to the reduction in the cost of
large-size displayscreens.
Office
Furniture		 Taiwan
and
mainland
China		 Taiwan and
mainland
China
14~19%		 1. Increasingly attach importance to intelligence,
human nature, environmental protection, style
aesthetics, and health-oriented issues.
2. Under theprinciple of adheringtoquality,

79

Type of Sales Supply Market Supply and Demand in the Market and Possible
Product Territory Territory Share Future Growth
intelligent production is introduced to integrate
the production and marketing supply chain.
3. The customer demand has been shifted from
simple products to the service demand of overall
space planning. Therefore, the goods,
equipment and planning services of each office
space should be integrated to propose solutions
to meet customer needs.
4. The planning needs of professional fields
(medical space, school space, health furniture)
are increasing.
3D
Products		 Taiwan
and
mainland
China		 Taiwan and
mainland
China
20~25%		 1. 1. According to the 2021 Additive
Manufacturing Trends Report released by 3D
Hubs, the global AM (Additive Manufacturing)
market size in the next five years will reach
USD 37.2 billion by 2026. At the same time, in
response to the Covid-19 epidemic, which has
forced changes in supply and demand in the
supply chain, the market has emerged as "3D
printing on-demand production", replacing
traditional manufacturing processes, meeting
small and medium-volume production, and
attacking terminal mass production markets,
including automotive, aerospace , consumer
goods and other high-end customized industries,
and even began to reverse the traditional
operation thinking of shooting factory and
switch to manufacturing-level 3D printers.
2. Although 3D scanning technology has not really
penetrated into residential and private places,
but with EV electric vehicles, Metaverse, NFT
issues and the global Covid-19 cover, Taiwanese
companies are returning to the market for small
and diverse, flexible manufacturing and quick
order grabbing , the demand for reverse/3D
testing has increased greatly. Quality
certification, product highlights and feedback
from application customers will rapidly ferment
in the market. In the future, it is expected to
increase market share and lead the development
of the industry.
Type of Future Development Future development
Competitive Niches Response
Product Positive Factors Unfavorable Factors
Office
equipment		 1. High brand
recognition.
2. The cumulative
customer base is
large.
3. High market share.		 1. With 66 branches,
it is the largest in
the industry.
2. Market share leads
the way.
3. The brand image is		 1. The demand for
rental market
increases, and the
price decreases due
to market
competition,which		 1. Develop the
business area
intensively,, do a
good job in CRM,
strengthen
commodity

80

Type of Future Development Future development
Competitive Niches Response
Product Positive Factors Unfavorable Factors
4. Commodities are
combined with the
original factory
OSA development
system to provide
differentiated
commodities.		 superior to the
industry.
4. Continuously
develop office
printing and
document security
programs to
provide customers
with competitive
goods and services.		 affects the gross
profit.
2. Japanese factories
attack the market
directly through
distribution
channels at low
prices.
3. A variety of used
water cargo planes
and filling
consumables are
flooded with the
market.		 education to
enhance
competitiveness
and stabilize price
and quality.
2. Provide exquisite
services to
strengthen the local
market.
3. Select the strategic
strike market share
and combine it with
the self-developed
document
management
system to provide a
comprehensive
office document
solution.
4. Consumer goods
strengthen
differentiation,
target sales of
middle and
higher-level goods,
and improve
competitiveness.
Office
Furniture		 1. Own brand, design
and development,
manufacturing,
marketing
integration
services.
2. Strong market
development
ability.
3. The customer base
is spread across the
two sides of the
Taiwan Straits and
can be effectively
integrated and
developed
according to the
needs of the two
sides.
4. High brand
awareness,
integrated
marketing through
OMO to enhance
customer service
experience.		 1. Obtained a
excellent brand
image.
2. Obtained
comprehensive
marketing
resources in both
Taiwan and
Mainland China.
3. A high-quality
management team
with the advantages
of vertical
integration of
design, R&D,
production,
marketing and
logistics, providing
customers with a
full range of space
planning services.
1. Affected by
mainland
commodities,
competition has a
more severe impact
on gross profit.
2. Market demand has
not significantly
expanded, and
there are many
competitors in the
industry.
3. International raw
material prices
continue to
fluctuate, causing
the cost of the
industry to rise.
4. Future costs will be
greatly affected by
increased labor
demand and
decreased supply.


1. Delicate service,
accumulating
customer
reputation,
accumulating brand
value.
2. Build a complete
service supply
chain in response to
market demand.
3. In response to
customer demand
for health, develop
a full range of
products,
equipment and
planning services
and focus on
international health
standards.
4. Emphasize product
differentiation to
give customers
peace of mind to
buy and use.
5. Develop the
integrated services
to improve the

81

Type of Future Development Future development
Competitive Niches Response
Product Positive Factors Unfavorable Factors
quality of customer
procurement.
3D
Products		 1. With more than 20
years of experience
and experience,
accumulated
market/customer
recognition.
2. Provide
professional/integra
tion/solutions to
guide sales
services.
3. Establish a
reputation for
physical brand
sales pipeline.
4. 3D product line is
complete,
providing
diversified
solutions to meet
the needs of
customers in
different industries.
5. Combine the
existing OA's vast
channel resources
to tap the potential
market demand.		 1. Own 3D software
applications/3D
scanning
capabilities/custom
process software
development
capabilities.
2. Combined
brand/sales
pipeline/practical
experience and
strength to provide
professional/integra
tion/solutions for
sales service
orientation.
3. A reputation for
physical sales
pipeline has been
established with
well-known brands
around the world.
4. Existing OA's vast
access resources
can be leveraged to
tap potential
market demand.		 1. The number of
talent demand
cultivation is still
insufficient.
2. The environment in
which professional
technology is
cultivated needs to
be improved.
3. The alignment of
professional
technical service
capabilities with
the OA pipeline
takes time.
1. Expand the
influence of the OA
pipeline with the
3D business
department as the
base.
2. The establishment
of a unified unit is
based on the
strategic planning
guidelines and
timing standards.
3. Quickly improve
market share and
shape industry
leadership.
4. Build a
downstream 3D
manufacturer to
learn and
understand the end
product
post-processing
process know-how
in order to master
the best of different
industries.

2) Usage and Manufacturing Processes for Main Products

Type of
Main Products Usage and Manufacturing Processes
Product
Office
equipment		 1. Office equipment:
Sale of digital printers, photocopiers, color
printers, fax machines, printers, clock-ins,
projectors, video equipment, interactive
whiteboards, and digital signage, as well as
after-sales service.
2. Office Document System Integration:
Provision of a total solution using digital
printers and laser printers as output devices,
combined with scanning functions, file
storage devices, and relevant software.
3. Consumer goods
Fax machines, clock bells, paper shredders,
computers,shells.		 1. Effectively assist enterprises to reduce
operating costs and simplify operational
processes to improve work efficiency.
2. In response to the development of market
trends, through customized solutions, help
enterprises to improve the document
processing process, reduce costs and
improve competitiveness.
3. Information document printing, attendance
management, document confidentiality and
protection, and calculation assistance tools
to improve enterprise work efficiency.
Office
Furniture		 Office furniture merchandise and office space
planning and integration services related to
desks, chairs, screens, filing cabinets, high
compartments, supervisor space merchandise,
imports, etc.		 Provide space planning design and product
configuration advice according to customer
needs, complete services from production,
logistics and distribution to prefecture
assembly, and provide office space planning
services in enterprise technology,
professionalism,health and environment.

82

Type of
Main Products Usage and Manufacturing Processes
Product
3D Printing 1. 3D Design, Manufacturing Software CATIA,
Delmia, Design-X.
2. Creaform Handheld 3D Laser Scanning
Equipment, Artec Handheld Scanning
Equipment and Custom 3D Photo Studio.
3. Stratasys 3D Printer and Manufacturing
Grade System.
4. Manipulator automation development and
integration.		 1. Provide complete processes and equipment
required for the design, development, and
production of products in all industries to
shorten the product development timeline.
2. Meet the small and medium batch
production market through industrial-grade
3D printers, the design and production are
in place at one time to
3. 3D technology can expand many overseas
needs and industries, and there is still a lot
of room toplay.

3) Status of supply of main raw materials:

Raw materials of cabinets are mainly steel plates. Aurora cooperates with many domestic suppliers to stabilize the source of raw materials.

  • 4) Names of customers who account for more than 10% of total purchases (sale) in the last two years and their purchases (sale) amounts and proportions:

Information on major suppliers in the last two years:

Unit: NT$ thousand Unit: NT$ thousand Unit: NT$ thousand
Year 2020 Year 2021
Percentage
Percentage
of net
Relation of net Relationship
Item purchase

Name		 Amount with Name Amount purchase in
with the
in the

issuer		 the whole Issuer
whole year
year (%)
(%)
1 Konica
Minolta
Business
Solutions
(China) Co.,
Ltd.		 1,248,524
18
-		 Konica
Minolta
Business
Solutions
(China) Co.,
Ltd.		 1,215,211
17
-
2 Others 5,505,895
82
-		 Others 6,099,838
83
-
Netpurchase 6,754,419
100
-		 Netpurchase 7,315,049
100
-

Note: As of the publication date of the annual report, the financial information of the Company on March 31, 2022 has not been checked or reviewed by accountants.

83

Information on major sales customers in the last two years:

Unit: NT$ thousand

Year 2020 Year 2020 Year 2020 Year 2021 Year 2021 Year 2021
Percentage Percentage

Relation		 Relationship
Item
of Annual
of Annual
Name Amount with Name Amount with the
net sales net sales
issuer Issuer
(%) (%)
1 Huxen
(China) Co.,
Ltd.		 1,755,455
14
Other
related
party		 Huxen
(China) Co.,
Ltd.		 1,578,776
12
Other
related party
2 Aurora Corp.
of America		 1,419,892
11		 Aurora Corp.
of America		 1,220,464
9		 -
3 Others 9,775,628
75		 Others 10,778,017
79		 -
Net sales 12,950,974
100		 Net sales 13,577,257
100

Note: As of the publication date of the annual report, the financial information of the Company on March 31, 2022 has not been checked or reviewed by accountants.

5) Production value in the last two years:

Unit: NT$ thousand

Year
Year 2020
Year 2020
Year 2020		 Year 2021 Year 2021 Year 2021
Production amount
Production Production Production Production Production Production
Capacity Volume value Capacity Volume value
Main Products
Cabinet 470,000
415,774
1,839,971
570,000
461,579		 2,049,076
Screen 1,200,000
1,021,126
806,879		 1,200,000
985,846
791,461
Supervisor Table 125,000
87,449
454,514
125,000
122,947
478,672
Total 1,795,000
1,524,349
3,101,364
1,895,000
1,570,372
3,319,209

6) Sales in the last two years:

Unit: NT$ thousand

Year 2020 Year 2020 Year 2020 Year 2020 Year 2021 Year 2021 Year 2021 Year 2021
Item Domestic Sales Export Domestic Export
Volume Value Quantity Value Quantity Value Quantity Value
OA Photocopiers 57,896
2,877,683
─		 ─ 46,644
2,976,902
─		 ─

Other
machines		 184,510
440,104
3,008
1,569,135		 228,144
522,596
2,677		 1,410,561
Peripherals ─ 3,587,118
─		 ─ ─ 3,391,831
─		 ─
Office Furniture ─ 4,431,502
─		 45,432 ─ 5,265,117
─		 10,250
Total ─ 11,336,407
─		 1,614,567
─		 12,156,446
─		 1,420,811

84

c. Information on Employees for the Two Most Recent Fiscal Years and during the Current Fiscal Year Up to the Date of Publication of the Annual Report

Year 2022 end to April
Year Year 2020 Year 2021
11
Number of
Employees		 Marketing 1,776 2,017 1,861
Technology
service		 1,064 1,024 1,025
Staff member 1,601 1,356 1,343
Total 4,441 4,397 4,229
Average age 34.5 36.1 37.0
Averageyear of services 7.0 8.0 8.3
Education
Distribution
Ratio		 PhD 0% 0% 0%
Master 2% 2% 2%
College 73% 73% 73%
High school 11% 11% 11%
Below high
school		 14% 14% 14%

  • d. Environmental Protection Expenses:

  • 1) Losses and dispositions suffered as a result of environmental pollution in the most recent year and up to the date of publication of the annual report: None.

  • 2) Future countermeasures and possible expenses: The original supplier is responsible for replacing the products or recovering the defective products, so there is no risk of damage to the environment.

  • e. Employee-Employer Relations

  • 1) The company's employee welfare measures, further training, retirement system and its implementation, as well as labor agreement and employee rights and interests maintenance measures:

“ Talent” is the most important asset. Aurora is committed to providing employees a workplace that promotes work-life balance. To create a quality work environment, Aurora has designed a generous employee benefit system and a comprehensive training and development system, allowing employees to play to their strengths and realize their full potential.

Aurora also attaches great importance to human rights and gender equality. Aurora ensures that every employee is free from discrimination and harassment in the workplace. All employees are given human rights training to protect their rights and interests. At Aurora, employees are hired regardless of gender, age, religion, and race. People with disabilities are also employed for different types of work.

85

  • Protective measures for the work environment and personal safety of employees

  • a) Welfare Measures

    • i. Insurance

During orientation, traffic safety is disseminated through promotional videos to sales and service representatives who frequently ride motorcycles. In addition to statutory labor and health insurance, accident insurance is also purchased for sales and service representatives.

  • ii. Health Examination

Aurora places importance on the health of all employees. Regular allowances are provided for employees to take health examinations at select medical institutions.

iii. Travel Assistance

At Aurora, work-life balance is much emphasized. A happy mind and a healthy body make a lively and enthusiastic work attitude. Regular travel allowances are provided for employees; in addition, high-performing employees are granted an incentive to travel overseas every year.

iv. Leave

Leave is granted to employees in accordance with the Labor Standards Act. Supervisors are regularly informed of the employees' leave records to help them achieve the work-life balance.

  • v. Birthdays, weddings and funerals, emergency assistance, etc.

Departments hold monthly birthday parties from time to time. Consolation money and relief for weddings and funerals, hospitalization, and major disasters are also granted.

  • vi. Employee Satisfaction Survey

Aurora conducts satisfaction surveys from time to time to understand the employees’ identification and satisfaction with the company and their work. Corrective measures are developed and taken based on the employees' feedback to create a happy workplace for employees.

  • b) Work Environment safety

According to the Fire Services Act, a sound fire system has been set up to carry out and report inspections on a regular basis; in addition to regular fire training, emergency response drills are organized every year.

86

  • c) Further study and training situation

Aurora pays much attention to talent development. In addition to providing a full range of training programs, Aurora aligns the employees' career development plans with corporate development.

On-the-job training is organized to assist employees in performing their duties and achieving their work goals. Job rotations, project assignments, work substitutions, and external training courses are also arranged to train employees in every aspect.

Performance improvement and talent cultivation are the cores of training, so training is tied in with promotion and performance.

The training plan is formulated mainly on the basis of cultivating colleagues with common characteristics and values, and prioritizing outstanding management talents. Therefore, the following four categories are distinguished according to their nature:

  • i. Leadership training

Employees are trained to be leaders and associate leaders with abilities such as leadership, interview skills, consensus building, strategic planning, performance management, and the Labor Standards Act. They learn how to lead subordinates to be efficient and productive at work.

  • ii. General skills training

Training helps improve the employees' general abilities to improve work efficiency such as communication skills, presentation skills, time management, stress management, and creative thinking.

iii. Functional training

Specific work assignments entail such functional training as orientation for new recruits and executive training.

iv. Expertise training

Employees are trained to work professionally with expertise and skills such as sales skills, customer relationship management, and product knowledge, so as to achieve good performances.

In 2021, 383 education and training classes were held, and nearly 3,100 people were trained.

  • The Current Important Labor Fund Agreements and Implementation Situation

  • a) Retirement Eligibility

87

Retirement can be requested according to the law, but if the seniority is more than ten years and the seniority are at least 55 years old, or the seniority is more than 20 years, the colleagues can apply for it after approval by the supervisor.

  • b) The withdrawal of pension and the payment of pension shall be handled according to laws and regulations

In accordance with the laws and regulations, the company has contributed 6% of the monthly salary to the individual pension account of the Ministry of Labor for new employees and existing employees who choose to apply the new pension regulations on a monthly basis since July 1, 2005. Existing employees who apply the old pension method and those who choose to apply the new pension method shall have their seniority retained under the old system calculated and appropriated to the designated bank account according to the pension payment standard of the old employee retirement method. For employees who are transferred by Aurora to any of the affiliates, their seniority will be accumulated to calculate to provide more protection for the employees.

  • c) The labor-management agreement and various employee rights protection measures

On the premise of the willingness and respect of colleagues, the company creates a happy and happy working environment, a lively and energetic working atmosphere, a positive and enterprising harmonious labor-management relationship, and combines and improves welfare and treatment. Since the implementation of the Labor Standards Act, the Act of Gender Equality in Employment, and the Labor Pension Act, Aurora has upheld ethical corporate management and compliance in the course of conducting business. Employees are encouraged to fully participate and work as a team, so as to share the profits. Aurora tie up the employees' career development plans with corporate development in hopes of achieving business sustainability.

  • 2) Losses suffered as a result of labor disputes during the most recent year and up to the date of publication of the annual report: None.

  • 3) Estimated current and potential future losses due to labor and capital disputes and response measures: None.

f. Information Security Management:

  • 1) Information security risk management structure, information security policy, specific management plan and resources invested in information security management:

  • a) Information Security Policy

The Company's information security policy is "to establish information security

88

management methods to maintain the overall information security of the Company, strengthen the security management of information assets, ensure their confidentiality, integrity, availability and legitimacy, and avoid human negligence, intentional attacks and natural disasters affecting the Company's operations or damaging the Company's interests".

  • b) Information security organizations

In order to ensure information security management, the Company has established an information security organization, whose members include senior executives of the Company, which is responsible for promoting, coordinating and supervising the following information security management matters:

  • i. Approval and Supervision of Information Security Policy

  • ii. Allocation and coordination of information security responsibilities

  • iii. Supervision of Information Assets Protection Matters

  • iv. Review and Supervision of Information Security Incidents

  • v. Approval of information security matters

  • vi. Hold regular information security meetings

  • c) Asset security risk control

The Company actively plans and deploys information security measures to improve the information security environment and reduce information risks from the system surface, network surface, data surface and equipment surface for information security risk management and control. Include the following:

  • i. System account management and auditing

  • ii. System data access control and audit mechanism

  • iii. System Raw Code Management and Detection

The relevant raw code of the information system shall be given appropriate security attributes according to the confidentiality level, and the files of different security attributes shall be separated and saved with corresponding security measures. The outsourced or self-built system code has passed the original code inspection and verification of the program, and conforms to international certification standards.

89

iv. Cybersecurity

Set up cybersecurity devices (firewalls), mail filtering systems, anti-virus protection systems, and secure access as needed for your business. The anti-virus control system is updated in February 2021.

  • v. Backup and Disaster Recovery

To ensure the integrity and correctness of data in the Group Information Systems, establish backup and disaster recovery plans, and regularly drill down to ensure normal operation in the event of a disaster or failure of storage media.

Database restoration exercises were carried out in March, June, September and December 2021 and were successfully completed, leaving documents for review.

A disaster recovery exercise was carried out in November 2021, which was successfully completed and the documents were left for review.

vi. Email management

Use of corporate emails is governed by email management practices that govern the security of your account, rules of use, and email usage. Mail filtering device updated in June 2021.

d) Employee safety training and publicity

The Company conducts basic information security education and training for new employees when they join the Company, and regularly conducts information security promotion and information security drills for working personnel to strengthen the awareness of information security. When a cybersecurity incident occurs, information security reports are made to raise employees' awareness of protection against external attacks, and provide information security for the company's operations.

The Company implemented on-the-job employee information security promotions in March, June, September and December 2021 and conducted social engineering drills for current employees from July to September 2021.

2) In the most recent year and up to the date of publication of the annual report, losses, possible impacts and countermeasures due to major information security incidents:

The events that occurred in the Company in 2021 and up to the date of publication of the annual report have no significant impact on the overall operation of the Company.

90

g. Important Contract

April 11, 2022

Type of
The Party Contract Period Major contents Restrictive Clause
Contract
Distribution
Contracts
SHARP CORPORATION		 2022.4.1~2023.3.31
(Automatically
extended for one year
upon expiration)
SHARP Full Series
Photocopiers		 1. Exclusive distribution
2. Non-competition
Provisions
OEM
Contracts		 (1) Konica Minolta , Inc
(2) Konica Minolta Business
Solutions (China) Co., Ltd.
(3) Aurora Office Automation
Sales Co., Ltd. Shanghai		 2019.1.1~2023.12.31 Consignment
production and
procurement of
multifunctional
composite machines
and PP machines in
Mainland China		 None
OEM
Contracts		 (1) Aurora Office Automation
Sales Co., Ltd. Shanghai
(2) Zhuhai Pantum Electronics
Co.,Ltd.		 2021.1.1~2022.12.31 A4 printer
commissioned
production and
procurement		 None
Distribution
Contracts
(1) Stratasys AP Limited
(2) Aurora Machinery Equipment
(Shanghai ) Co., Ltd.		 2022.1.1~2022.12.31 Stratasys Full Series
3D Printers		 1. There is an
anti-competitive clause
2. New contract being
signed
Distribution
Contracts
KONICA MINOLTA, INC
Aurora Office Automation
Corporation		 2022.4.1~2023.3.31 Photocopiers and
printers of KM full
series		 1. There is an
anti-competitive clause
2. Restricted to sale in
Taiwan
Distribution
Contracts
STRATASYS AP LTD.
General Integration Technology
Co., Ltd.		 2022.1.1~2022.12.31 SSYS Full Series
3D Printers		 1. Non-exclusive
distribution
2. Eixst an
anti-competitive clause
3. Restricted to sale in
Taiwan
Distribution
Contracts
CREAFORM, INC.
General Integration Technology
Co., Ltd.		 2021.6.21~2022.6.20 3D Scanning
Equipment		 1. Non-exclusive
distribution
2. Restricted to sale in
Taiwan
Distribution
Contracts
KONICA MINOLTA, INC
KM Developing Solutions Co.,
Ltd.		 2022.4.1~2023.3.31 Large photocopier
and multi-functional
photocopier		 1. Exist an annual sales
volume limit
2. Eixst an
anti-competitive clause
3. Restricted to sale in
Taiwan

91

6. Financial Overview

  • a. Condensed Balance Sheets and Statements of Comprehensive Income for the Past Five Fiscal Years

  • 1) Condensed Balance Sheets - Parent Company Only

Unit: NT$ thousand

Year
Item		 Year
Item
Financial information for the last five years (note 1:)
Financial information for the last five years (note 1:)
Financial information for the last five years (note 1:)
Financial information for the last five years (note 1:)
Financial information for the last five years (note 1:)		 Financial
information for
the year ended
March 31, 2022
Year 2017 Year 2018 Year 2019 Year 2020 Year 2021
Current Assets 1,283,058
1,105,283
938,311
1,094,617
1,222,660
N/A
(Note 2)
Property, Plant, and
Equipment		 896,886
819,253
851,333
803,052
776,296
Intangible assets 48,634
53,458
50,273
48,615
48,707
Other Assets 8,885,438
9,540,368
9,782,752
10,925,965
11,137,874
Total Assets 11,114,016
11,518,362
11,622,669
12,872,249
13,185,537
Current
liabilities		 Before
Distribution		 2,253,865
2,532,715
2,785,415
3,488,028
4,148,117
After
distribution		 3,671,080
3,949,930
4,155,390
4,834,382
(Note 3)
Non-current Liabilities 1,402,591
1,400,215
1,625,621
1,755,532
1,441,905
Total
Liabilities		 Before
Distribution		 3,656,456
3,932,930
4,411,036
5,243,560
5,590,022
After
distribution		 5,073,691
5,350,145
5,781,011
6,589,914
(Note 3)
Equities Attributable to
Owners of Parent Company		 6,998,937
7,585,432
7,211,633
7,628,689
7,595,515
Share Capital 2,362,025
2,362,025
2,362,025
2,362,025
2,362,025
Capital surplus 1,761,702
1,843,004
1,920,710
1,941,799
1,939,269
Retained
Earnings		 Before
Distribution		 3,907,515
4,048,436
3,973,659
4,087,994
4,112,289
After
distribution		 2,490,300
2,631,221
2,603,684
2,741,640
(Note 3)
Other Equity 246,151
123,793
(252,935)		 28,697
(26,242)
Treasurystock (819,833) (791,826) (791,826) (791,826) (791,826)
Equity
Total Amount		 Before
Distribution		 7,457,560
7,585,432
7,211,633
7,628,689
7,595,515

After
distribution		 6,040,345
6,168,217
5,841,658
6,282,335
(Note 3)

Note 1. The financial information of each of the above companies has been verified by an accountant. Note 2. The Company prepares individual financial reports on an annual basis only. Note 3. Once the Earnings Distribution Plan is adopted by the next Annual General Meeting of Shareholders.

92

2) Consolidated Condensed Balance Sheet

Unit: NT$ thousand

Year
Item		 Year
Item
Financial information for the last fiveyears(Note 1)
Financial information for the last fiveyears(Note 1)
Financial information for the last fiveyears(Note 1)
Financial information for the last fiveyears(Note 1)
Financial information for the last fiveyears(Note 1)		 Financial
information for
the year ended
March 31, 2022
Year 2017 Year 2018 Year 2019 Year 2020 Year 2021
Current Assets 10,739,029
11,202,362
10,392,354
10,895,709
10,657,461
N/A
(Note 2)
Property, Plant, and
Equipment		 1,894,586
1,868,239
1,939,676
2,315,741
2,543,920
Intangible assets 153,870
156,308
168,654
177,009
195,088
Other Assets 3,703,067
4,053,484
4,609,092
4,674,450
4,854,625
Total Assets 16,490,552
17,280,393
17,109,776
18,062,909
18,251,094
Current
liabilities		 Before
Distribution		 6,059,240
6,581,582
6,082,773
6,619,633
7,000,463
After
distribution		 7,476,475
7,998,797
7,452,748
7,965,987
(Note 3)
Non-current Liabilities 1,930,684
1,999,803
2,653,270
2,519,129
2,323,997
Total
Liabilities		 Before
Distribution		 7,989,924
8,581,385
8,736,043
9,138,762
9,324,460
After
distribution		 9,407,159
9,998,600
10,106,018
10,485,116
(Note 3)
Equities Attributable to
Owners of Parent Company		 7,457,560
7,585,432
7,211,633
7,628,689
7,595,515
Share Capital 2,362,025
2,362,025
2,362,025
2,362,025
2,362,025
Capital surplus 1,761,702
1,843,004
1,920,710
1,941,799
1,939,269
Retained
Earnings		 Before
Distribution		 3,907,515
4,048,436
3,973,659
4,087,994
4,112,289
After
distribution		 2,490,280
2,631,221
2,603,684
2,741,640
(Note 3)
Other Equity 246,151
123,793
(252,935)		 28,697
(26,242)
Treasurystock (819,833) (791,826) (791,826) (791,826) (791,826)
Non-controllingInterests 1,043,068
1,113,576
1,162,100
1,295,458
1,331,119
Total Equity Before
Distribution		 8,500,628
8,699,008
8,373,733
8,924,147
8,926,634
After
distribution		 7,083,393
7,281,793
7,003,758
7,577,793
(Note 3)

Note 1. The financial information of each of the above companies has been verified by an accountant.

Note 2. As of the date of publication of the Annual Report, the Company's financial information on 3/31/2022 had not been reviewed or reviewed by an accountant.

Note 3. Once the Earnings Distribution Plan has been approved by the next Annual General Meeting of Shareholders.

93

3) Individual Condensed Consolidated Income Statement

Unit: NT$ thousand

(Except earnings per share expressed in NT$)

Year
Item
Financial information for the last fiveyears(Note 1)
Financial information for the last fiveyears(Note 1)
Financial information for the last fiveyears(Note 1)
Financial information for the last fiveyears(Note 1)
Financial information for the last fiveyears(Note 1)		 Financial
information
for the year
ended March
31,2022
Year 2017 Year 2018 Year 2019 Year 2020 Year 2021
OperatingRevenue 3,013,539
3,110,307
3,146,934
3,174,613
3,285,129
N/A
(Note 2)
Gross Profit 1,360,708
1,407,004
1,441,807
1,485,605
1,488,526
Operating profit(loss) 343,683
388,132
389,146
413,523
415,888
Non-operating revenue and
expenses		 1,544,619
1,237,660
1,221,698
1,236,365
1,199,549
Income before Tax 1,888,302
1,625,792
1,610,844
1,649,888
1,615,437
Net Income from
Net Profit of Current Term		 1,810,866
1,522,999
1,374,792
1,438,309
1,391,539
Loss from Discontinued
Operations		 0
0
0
0
0
Net income(loss)for theperiod 1,810,866
1,522,999
1,374,792
1,438,309
1,391,539
Other Comprehensive Income
(Loss) in the Current Term
(Net Value After Tax)		 129,742
(87,221)
(409,082)
327,633
(75,828)
Total Comprehensive Income 1,940,608
1,435,778
965,710
1,765,942
1,315,711
Earningsper Share 6.67
6.78
6.12
6.40
6.19

Note 1. The financial information of each of the above companies has been verified by an accountant.

Note 2. The Company prepares Individual Financial Reports on an annual basis only.

94

4) Consolidated Condensed Consolidated Income Statement

Unit: NT$ thousand

(Except earnings per share expressed in NT$)

Year
Item		 Financial information for the last fiveyears(Note 1) Financial information for the last fiveyears(Note 1) Financial information for the last fiveyears(Note 1) Financial information for the last fiveyears(Note 1) Financial information for the last fiveyears(Note 1) Financial
information
for the year
ended March
31,2022
Year 2017 Year 2018 Year 2019 Year 2020 Year 2021
OperatingRevenue 14,370,795
14,343,895
13,605,113
12,950,974
13,577,257
N/A
(Note 2)
Gross Profit 6,083,895
6,283,558
6,097,714
5,874,627
6,038,691
Operating profit(loss) 1,221,348
1,465,824
1,370,653
1,517,380
1,468,693
Non-operating revenue
and expenses		 999,389
543,934
562,087
508,048
551,706
Income before Tax 2,220,737
2,009,758
1,932,740
2,025,428
2,020,399
Net Income from
Net Profit of Current
Term		 1,923,379
1,650,814
1,501,756
1,558,735
1,526,231
Loss from Discontinued
Operations		 0
0
0
0
0
Net income (loss) for the
period		 1,923,379
1,650,814
1,501,756
1,558,735
1,526,231
Other Comprehensive
Income (Loss) in the
Current Term
(Net Value After Tax)		 125,740
(110,121)
(450,153)
366,143
(84,556)
Total Comprehensive
Income		 2,049,119
1,540,693
1,051,603
1,924,878
1,441,675
Net Income Attributable
to:
Owners of the Parent
Company		 1,810,866
1,522,999
1,374,792
1,438,309
1,391,539
Net Income Attributable
to Non-controlling
Interests		 112,513
127,815
126,964
120,426
134,692
Total comprehensive
income attributable to
owners of theparent		 1,940,608
1,435,778
965,710
1,765,942
1,315,711
Comprehensive Income
Attributable to
Non-controllingInterests		 108,511
104,915
85,893
158,936
125,964
Earningsper Share 6.67
6.78
6.12
6.40
6.19

Note 1. The financial information of each of the above companies has been verified by an accountant.

Note 2. As of the date of publication of the Annual Report, the Company's financial information on 3/31/2022 had not been reviewed or reviewed by an accountant.

5) Name of CPAs and Audit Opinions for the Last Five Years

Year CPA Name Opinions
2021 Deloitte & Touche Chih Rui-Chuan and Hsieh
Chien-Hsin
Unmodified opinion
2020 Deloitte & Touche Chih Rui-Chuan and Hsieh
Chien-Hsin
Unmodified opinion
2019 Deloitte & Touche Huang Hai-Yueh and
Hsieh Chien-Hsin		 Unmodified opinion
2018 Deloitte & Touche Huang Hai-Yueh and
Hsieh Chien-Hsin		 Unmodified opinion
2017 Deloitte & Touche Huang Hai-Yueh and
Hsieh Chien-Hsin		 Unmodified opinion

95

b. Financial Analyses for the Past Five Fiscal Years

1. Financial Analysis - Parent Company Only

Year
Analysis items(note 3)		 Year
Analysis items(note 3)		 Mostrecentfive-year financialanalysis (Note1) Mostrecentfive-year financialanalysis (Note1) Mostrecentfive-year financialanalysis (Note1) Mostrecentfive-year financialanalysis (Note1) Mostrecentfive-year financialanalysis (Note1) Current year to 2022
Financial
information as at 31
March
2017 2018 2019 2020 2021
Financial
Structure
(%)		 Liabilities to Assets
Ratio		 35.90
34.14
37.95
40.74
42.40
N/A
(Note 2)
Ratio of long-term
capital to property, plant,
and equipment
987.88
1,096.81
1,038.05
1,168.57
1,164.17
Solvency
(%)		 Current Ratio 56.93
43.64
33.69
31.38
29.43
Quick Ratio 36.16
23.82
16.79
15.69
12.27
Times interest earned
ratio		 99.71
85.83
67.95
64.00
63.08
Operating
Ability		 Receivables Turnover
Ratio(times)		 7.69
8.23
9.42
10.05
11.02
Average days for cash
receipts		 47
44
39
36
33
Inventory Turnover
Ratio (Times)		 3.26
3.50
3.43
3.20
2.85
Payables Turnover Ratio
(Times)		 4.81
4.38
5.04
5.21
4.94
Average days for sale of
goods		 112
104
106
114
128
Property, Plant, and
Equipment Turnover
Ratio (Times)		 3.92
3.62
3.77
3.84
4.16
Total Assets Turnover
Ratio(Times)		 0.27
0.27
0.27
0.26
0.25
Profitability Return on assets(%) 16.59
13.59
12.05
11.91
10.84
Return on Equity (%) 25.05
20.25
18.58
19.38
18.28

Ratio of Net Profit
Before Tax to Paid-In
Capital(%)		 79.94
68.83
68.20
69.85
68.39
NetProfitRatio (%) 60.09
48.97
43.69
45.31
42.36
Earnings per share
(NT$)		 6.67
6.78
6.12
6.40
6.19
Cash Flow Cash Flow Ratio(%) 18.97
16.57
11.88
16.85
9.26
Cash Flow Adequacy
Ratio(%)		 31.74
31.69
31.63
30.45
28.04
Cash Reinvestment
Ratio (%)		 -7.08
-10.49
-11.78
-8.50
-10.93
Financial
Leverage		 Degree of Operating
Leverage(DOL)		 1.82
1.82
1.99
1.94
1.92
Degree of financial
leverage(DFL)		 1.06
1.06
1.07
1.07
1.07
Reasons for the 20% change in various financial ratios in the last two years:
1. The decrease in the Quick Ratio (%) was mainly due to the increase in short-term borrowings.
2. The decrease in the Cash Flow Ratio (%) is mainly due to the decrease in Net Cash Inflows from inventories and
other current assets and the increase in short-term borrowings.
3. Decrease in Cash Reinvestment Ratio (%), mainly due to decrease in net cash inflows from inventories and other
current assets

Note 1. The financial information of each of the above companies has been verified by an accountant.

Note 2. The Company prepares Individual Financial Reports on an annual basis only.

Note 3. The above calculation formula is listed on page 97-98.

96

  1. Consolidated Financial Analysis
Item Year Financial analysis for the last fiveyears(Note 1) Financial analysis for the last fiveyears(Note 1) Financial analysis for the last fiveyears(Note 1) Financial analysis for the last fiveyears(Note 1) Financial analysis for the last fiveyears(Note 1) Financial
information for
the year ended
March 31,
2022
Year 2017 Year 2018 Year 2019 Year 2020 Year 2021
Financial
Structure
(%)		 Liabilities to Assets Ratio 48.45 49.66 51.06 50.59 51.09 N/A
(Note2)
Ratio of long-term capital
to property, plant, and
equipment		 550.59 572.67 568.50 494.15 442.26
Solvency
(%)		 Current Ratio 177.23 170.21 170.85 164.60 152.24
Quick Ratio 149.76 139.36 142.50 138.34 124.71
Times interest earned ratio 67.94 54.76 30.68 36.24 45.52
Operating
Ability		 Receivables Turnover
Ratio(times)		 7.80 8.51 9.18 8.61 8.59
Average days for cash
receipts		 47 43 40 42 42
Inventory Turnover Ratio
(Times)		 5.23 4.59 4.18 4.26 4.36
Payables Turnover Ratio
(Times)		 4.70 4.16 4.73 5.33 5.37
Average days for sale of
goods		 70 80 87 86 84
Property, Plant, and
Equipment Turnover Ratio
(Times)
7.94		 7.62 7.15 6.09 5.59
Total Assets Turnover
Ratio(Times)		 0.89 0.85 0.79 0.74 0.75
Profitability Return on assets(%) 12.02 9.95 9.04 9.12 8.61
Return on Equity (%) 23.43 19.20 17.59 18.02 17.10

Ratio of Net Profit Before
Tax to Paid-In Capital(%)		 94.02 85.09 81.83 85.75 85.54
Net Profit Ratio(%) 13.38 11.51 11.04 12.04 11.24
Earningsper share(NT$) 6.67 6.78 6.12 6.40 6.19
Cash Flow Cash Flow Ratio(%) 30.06 17.95 18.11 28.33 22.48
Cash Flow Adequacy
Ratio(%)		 80.32 69.73 69.13 77.99 72.42
Cash Reinvestment Ratio
(%)		 5.97 -1.71 -2.33 3.89 1.07
Financial
Leverage		 Degree of Operating
Leverage(DOL)		 1.37 1.28 1.50 1.52 1.57
Degree of financial
leverage(DFL)		 1.03 1.03 1.05 1.04 1.03
Reasons for the 20% change in various financial ratios in the last two years:
1. The decrease in the Cash Flow Ratio (%) was mainly due to the increase in net cash outflows from inventories and
the increase in short-term borrowings.
2. The decrease in the Cash Reinvestment Ratio (%) was mainly due to the increase in net Cash Outflows from
inventories.

Note 1. The financial information of each of the above companies has been verified by an accountant.

Note 2. As of the date of publication of the Annual Report, the Company's financial information on 3/31/2022 had not been reviewed or reviewed by an accountant.

Note 3. The formula is as follows:

  • (1) Financial Structure

  • a. Liabilities to assets ratio = total liabilities/total assets.

  • b. Long-term capital to property, plant and equipment ratio = (total equity + noncurrent liabilities)/property, plant and equipment net.

97

  • (2) Bond repayment capacity

  • a. Current Ratio = Current Assets/Current Liabilities.

  • b. Quick Ratio = (Current Assets - Inventory - Prepaid Fees)/Current Liabilities.

  • c. Interest Coverage Ratio = Net Income Before Income Tax and Interest Expense/Interest Expense for the current period.

  • (3) Operating capacity

  • a. Accounts Receivable Turnover Ratio (including accounts receivable and notes receivable arising from operations) = net sales/average balances of accounts receivable (including accounts receivable and notes receivable arising from operations) for each period.

  • b. Average Cash Days = 365/Receivables Turnover Rate.

  • c. Inventory turnover = cost of goods sold/average inventory value.

  • d. Turnover rate of accounts payable (including accounts payable and bills payable arising from operations) = cost of goods sold/balance of average payable (including accounts payable and bills payable arising from operations) for each period.

  • e. Average days of sale = 365/inventory turnover.

  • f. Property, plant and equipment turnover = net sales/average property, plant and equipment net.

  • g. Total asset turnover = net sales/average total assets.

  • (4) Profitability

  • a. Return on assets = (after-tax profit or loss + interest expense × (1 - tax rate))/average total assets.

  • b. Return on equity = total after-tax profit or loss/average equity.

  • c. Net Gain Rate = After-tax Profit/Loss/Net Sales.

  • d. Earnings per share = (profit or loss attributable to owners of the parent company - special dividends)/weighted average number of issued shares.

  • (5) Cash flow

  • a. Cash flow ratio = net cash flow from operating activities/current liabilities.

  • b. Net cash flow allowance ratio = net cash flow from operating activities in the last five years/(capital expenditure + increase in inventories + cash dividend) in the last five years.

  • c. Cash reinvestment ratio = (net cash flow from operating activities - cash dividend)/(gross property, plant and equipment + long-term investments + other non-current assets + working capital).

  • (6) Degree of Leverage

  • a. Operating profit = (net operating income - changes in operating costs and expenses)/operating profit.

  • b. Financial strength = Operating profit/(Operating profit - interest expense).

98

  • c. Audit Committee's Review Report on Financial Statements for the Most Recent Fiscal Year

Audit Committee's Review Report

The Board of Directors of the Company shall submit the Company's Annual Business Report, Financial Report and Earnings Distribution Proposal for the year 2011; the Financial Report shall be checked by the accounting firm appointed by the Board of Directors, and an Audit Report shall be issued.

The said business report, financial statements, and the proposal for distribution of earnings have been audited by the Audit Committee and determined to be in compliance with the Company Act and other relevant laws and regulations. The Audit Committee's Report is hereby prepared in accordance with Article 219 of the Company Act.

It is hereby submitted for review.

Sincerely,

Annual Meeting of Shareholders of Aurora Corporation in 2022

Convener of the Audit Committee

Liao Kuo-Jung

March 16, 2022

99

d. Financial Statements for the Most Recent Fiscal Year

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.

100

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:

  1. 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

101

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.

  1. 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.

  2. Assess the appropriateness of the accounting policies adopted by the management, as well as the reasonableness of their accounting estimates and relevant disclosures.

  3. 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.

  4. 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, we will 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.

  5. 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.

  6. 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

102

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

Chairman: Yuan Hui-Hua

The accompanying notes are an integral part of the Consolidated Financial Statements. General Manager: Chou Ming-Chung

Principal Accounting Officer: Lin Ya-Ling

103

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

(Continued on the next page)

104

(Continued from the previous page)

(Continued from the previous page)
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

(Continued on the next page)

105

(Continued from the previous page)

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

106

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)

Code
A1
Balance as of January 1, 2020

Appropriation and distribution of earnings for 2019:

B1
Legal reserve

B5
Cash dividends of common stock

C15
Cash dividends appropriated from capital surplus

D1
Net income in 2020

D3
Other comprehensive income after tax in 2020

D5
Total comprehensive income in 2020

M1
Changes in capital reserve from dividends paid to
subsidiaries
O1
Changes in non-controlling interests

O1
Cash dividends distributed by subsidiaries

Q1
Disposal of equity instruments at fair value through
other comprehensive income
Z1
Balance as of December 31, 2020


Appropriation and distribution of earnings for 2020:

B1
Legal reserve

B5
Cash dividends of common stock


C15
Cash dividends appropriated from capital surplus


D1
Net income in 2021


D3
Other comprehensive income after tax in 2021


D5
Total comprehensive income in 2021


M1
Changes in capital reserve from dividends paid to
subsidiaries

O1
Cash dividends distributed by subsidiaries


Z1
Balance as of December 31, 2021
 Capital Stock

$ 2,362,025

-

-

-

-
-

-

-

-

-
-


2,362,025


-

-


-


-

-


-


-

-


$ 2,362,025
 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

107

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

(Continued on the next page)

108

(Continued from the previous page)

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

109

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)

110

  • 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

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

  • 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.

111

  • 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.

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.

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.

112

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.

113

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.

114

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.

115

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.

116

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.

117

  • 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.

118

  • 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.

119

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.

120

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.

121

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).

122

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.

123

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

124

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

(Continued on the next page)

125

(Continued from previous page)

ed from previous page)
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.

126

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

(Continued on the next page)

127

(Continued from previous page)

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		 $
-

128

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

129

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.

130

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

131

  • 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

132

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)

133

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

134

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

Cost
Beginning balance

Addition
Disposal and obsolescence

Conversion adjustment

Ending balance

Accumulated depreciation
Beginning balance
Depreciation expenses
Disposal and obsolescence

Conversion adjustment

Ending balance

Ending net amount

Cost
Beginning balance

Addition
Disposal and obsolescence

Conversion adjustment

Ending balance

Accumulated depreciation
Beginning balance
Depreciation expenses
Disposal and obsolescence

Conversion adjustment

Ending balance

Ending net amount
 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

135

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.

136

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

137

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)

138

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

139

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

140

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

141

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

142

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

143

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.

144

  • 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

145

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.

146

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

147

  • 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

148

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

149

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

150

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

151

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

152

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

153

  • 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




154

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.

155

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.

156

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.

157

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

158

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)

159

Related Party

Relationship with the Group

(Continued from previous page)

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

160

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.

161

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
Type/Name of Related Party
2021
Other related party
$ 37

Lease agreements
Type/Name of Related Party
Acquisition of right-of-use assets
Aurora Holdings
Associate		 Disposal Disposal proceeds
2020
$ -

2021		 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

162

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.

163

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.

164

  • 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 printer~~s~~
Solutions (China) Co., Ltd.
in mainland China
(3)Aurora Office Automation
Sl C Ld Shhi
aes o., t. anga
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
photocopiers		 amount limit
2 Non-comete
. p
3. Sales in Taiwan
only

165

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

166

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.

167

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

168

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.

169

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		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-		 $ -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

170

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		 Information on Prior Transaction If the
Is Related		 Information 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

171

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).

172

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)

173

(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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

(Continued on the next page)

174

(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(%) (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.

175

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

176

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
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.

  1. Direct investment in mainland China.

  2. Investment in mainland China through Aurora (Bermuda) Investment Ltd.

  3. Others.

177

Note 2. Investment profit (loss) recognized for the period:

  1. Indicate if no investment profit (loss) is recognized as an investee is under preparation.

  2. 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.

  3. 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.

  4. 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.

  5. 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%).

178

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).

179

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.

180

  • e. Parent Company Only Financial Statements for the Most Recent Fiscal Year, Audited by CPAs

Independent Auditors' Report

To Aurora Corporation:

Opinions

Aurora Corporation's Parent Company Only Balance Sheets as of December 31, 2021 and 2020, in addition to the Parent Company Only Statements of Comprehensive Income, Parent Company Only Statements of Changes in Equity, Parent Company Only Statements of Cash Flows, and Notes to the Parent Company Only 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 Parent Company Only Financial Statements mentioned above have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers in all material aspects, and are considered to have reasonably expressed the parent company only financial conditions of Aurora Corporation as of December 31, 2021 and 2020, as well as the parent company only financial performance and parent company only 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 Parent Company Only Financial Statements section of our report. We are independent of Aurora Corporation 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 Parent Company Only Financial Statements of Aurora Corporation for the year ended December 31, 2021. These matters were addressed in the context of our audit of the Parent Company Only 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 Parent Company Only Financial Statements of Aurora Corporation for the year ended December 31, 2021 are stated as follows:

Sales revenue and sales revenue of key subsidiaries accounted for using the equity method.

The main businesses of Aurora Corporation and its key subsidiaries accounted for using the equity method 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.

181

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

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.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

To ensure that the Parent Company Only Financial Statements do not contain material misstatements caused by fraud or errors, the management is responsible for preparing prudent Parent Company Only Financial Statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for preparing and maintaining necessary internal control procedures pertaining to the Parent Company Only Financial Statements.

In preparing the Parent Company Only Financial Statements, the management is responsible for assessing Aurora Corporation's 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 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's financial reporting process.

Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the Parent Company Only 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:

  1. Identify and evaluate the risk of material misstatements due to fraud or error in the Parent Company Only Financial Statements; design and carry out appropriate countermeasures for the evaluated risk; and obtain sufficient and appropriate evidence as the basis for 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.

  2. 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.

  3. Assess the appropriateness of the accounting policies adopted by the management, as well as the reasonableness of their accounting estimates and relevant disclosures.

182

  1. 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's 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 Parent Company Only 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 to cease to continue as a going concern.

  2. Evaluate the overall expression, structure and contents of the Parent Company Only Financial Statements (including relevant Notes), and whether the Parent Company Only Financial Statements fairly present relevant transactions and items.

  3. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within Aurora Corporation to express an opinion on the Parent Company Only Financial Statements. We are responsible for the direction, supervision, and performance of the audit and for expressing an opinion on the Parent Company Only Financial Statements of Aurora Corporation.

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's Parent Company Only 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

183

Aurora Corporation Parent Company Only Balance Sheets For the Years Ended December 31, 2021 and 2020 (In Thousands of New Taiwan Dollars)

Code

1100
1150
1170
1180
1200
130X
1479
11XX

1550
1600
1755
1760
1805
1821
1840
1920
15XX
1XXX

Code

2100
2110
2130
2170
2200
2230
2280
2300
21XX

2540
2570
2580
2640
2645
25XX
2XXX

3110
3200
3310
3320
3350
3300
3400
3500
3XXX
 Assets
Current Assets
Cash (Note VI)
Notes receivable (Notes IV ,VII and XX)
Accounts receivable (Notes IV ,VII and XX)
Accounts receivable - related parties (Notes IV, VII,XX and
XXVII)
Other receivables (Notes XLVII and XXVII)
Inventories (Notes IV and VIII)
Other current assets (Note XIV)
Total current assets
Non-current assets
Investments accounted for using the equity method (Notes IV and
IX)
Property, plant, and equipment (Notes IV, X, XXVII, and XXVIII)
Right-of-use assets (Notes IV, XI, and XXVII)
Investment properties (Notes IV, XII, and XXVIII)
Goodwill (Notes IV and XIII)
Other intangible assets (Notes IV and XIII)
Deferred tax assets (Notes IV and XXII)
Refundable deposits (Note XXVII)
Total non-current assets
Total assets
Liabilities and Equity
Current Liabilities
Short-term loans (Note XV)
Short-term notes and bills payable (Note XV)
Contract liabilities - current (Notes IV and XX)
Accounts payable (Notes XVI and XXVII)
Other payables (Notes XVII and XXVII)
Current tax liabilities (Notes IV and XXII)
Lease liabilities - current (Notes IV, XI and XXVII)
Other current liabilities (Note XVII)
Total current liabilities
Non-current liabilities
Long-term loans (Note XV)
Deferred income tax liabilities (Notes IV and XXII)
Lease liabilities - non-current (Notes IV, XI and XXVII)
Net defined benefit liabilities - non-current (Notes IV and XVIII)
Guarantee deposits received (Note XXVII)
Total non-current liabilities
Total liabilities
Equity (Note XIX)
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
Total liabilities and equity		 December 31,2021
Amount
%
$ 167,091
1
74,211
1
134,406
1
67,966
-
66,985
-
634,381
5
77,620

1
1,222,660

9
10,780,872
82
776,296
6
156,847
1
71,018
1
38,147
-
10,560
-
81,158
1
47,979

-
11,962,877

91
$ 13,185,537
100
$ 3,125,822
24
-
-
179,273
1
341,786
2
265,792
2
93,739
1
78,661
1
63,044

-
4,148,117

31
650,000
5
298,724
2
79,269
1
412,894
3
1,018

-
1,441,905

11
5,590,022

42
2,362,025

18
1,939,269

15
1,880,146
14
852,220
6
1,379,923

11
4,112,289

31

26,242)

-

791,826)
(
6)
7,595,515

58
$ 13,185,537
100		 December 31,2021
Amount
%
$ 167,091
1
74,211
1
134,406
1
67,966
-
66,985
-
634,381
5
77,620

1
1,222,660

9
10,780,872
82
776,296
6
156,847
1
71,018
1
38,147
-
10,560
-
81,158
1
47,979

-
11,962,877

91
$ 13,185,537
100
$ 3,125,822
24
-
-
179,273
1
341,786
2
265,792
2
93,739
1
78,661
1
63,044

-
4,148,117

31
650,000
5
298,724
2
79,269
1
412,894
3
1,018

-
1,441,905

11
5,590,022

42
2,362,025

18
1,939,269

15
1,880,146
14
852,220
6
1,379,923

11
4,112,289

31

26,242)

-

791,826)
(
6)
7,595,515

58
$ 13,185,537
100		 December 31,2020 December 31,2020 December 31,2020
Amount
$ 167,091
74,211
134,406
67,966
66,985
634,381
77,620

1,222,660

10,780,872
776,296
156,847
71,018
38,147
10,560
81,158
47,979

11,962,877

$ 13,185,537

$ 3,125,822
-
179,273
341,786
265,792
93,739
78,661
63,044

4,148,117

650,000
298,724
79,269
412,894
1,018

1,441,905

5,590,022

2,362,025

1,939,269

1,880,146
852,220
1,379,923

4,112,289


26,242)


791,826)

7,595,515

$ 13,185,537
 Amount
$ 173,009
83,048
154,015
72,492
64,483
503,546
44,024

1,094,617

10,576,456
803,052
158,776
71,493
38,147
10,468
78,942
40,298

11,777,632

$ 12,872,249

$ 2,283,652
299,655
137,276
332,640
269,697
42,340
73,819
48,949

3,488,028

1,000,000
258,436
86,217
410,001
878

1,755,532

5,243,560

2,362,025

1,941,799

1,731,715
852,220
1,504,059

4,087,994

28,697


791,826)

7,628,689

$ 12,872,249
 %
















(
(














(
















(














(

 1
1
1
1
-
4
-
8
82
6
1
1
-
-
1
1
92
100
18
2
1
3
2
-
1
-
27
8
2
1
3
-
14
41
18
15
13
7
12
32
-

6)
59
100

The accompanying notes are an integral part of the Parent Company Only Financial Statements.

Chairman: Yuan Hui-Hua

General Manager: Chou Ming-Chung

Principal Accounting Officer: Lin Ya-Ling

184

Aurora Corporation

Parent Company Only Statement 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,
XX, and XXVII)
4110
Sales revenue

4170
Sales returns

4190
Sales discounts and
allowances
4000
Total operating revenue
5000
Operating costs (Notes VIII, XXI,
and XXVII)
5900
Gross profit
5910
Unrealized gains from sales of
associates
5920
Realized gains from sales of
associates
5950
Realized gross profit

Operating expenses (Notes XXI
and XXVII)
6100
Selling and marketing
expenses
6200
General and administrative
expenses
6450
Expected credit losses (Notes
IV and VII)
6000
Total operating
expenses
6900
Net operating income

Non-operating income and
expenses (Notes IV, IX, XXI,
and XXVII)
7100
Interest income
7190
Other income
7020
Other gains and losses

7050
Finance costs

7070
Share of profit or loss of
subsidiaries and associates
accounted for using the
equity method
7000
Total non-operating income
and expenses		 2021 ％
101

(
1 )

-

100

55

45
(
2 )

2


45

20
12

-


32


13

-
2

-

(
1 )

35


36
 2020
Amount
$ 3,307,517


13,753 )
8,635)


3,285,129

1,798,923

1,486,206

61,580 )
63,900

1,488,526

677,783
393,309
1,546

1,072,638

415,888

134
86,929

1,689 )

26,023 )
1,140,198

1,199,549
 Amount
$ 3,199,689


15,836 )
9,240)

3,174,613

1,692,644

1,481,969

61,664 )
65,300

1,485,605

660,298
411,772
12

1,072,082

413,523

113
84,225

1,527 )

26,190 )
1,179,744

1,236,365
 ％

(
(


(





(
(
(
(

(





(
(

 101
(
1 )

-
100

53
47
(
2 )

2

47
21
13

-

34

13
-
3

-
(
1 )

37

39

(Continued on the next page)

185

(Continued from the previous page)

Code
7900
Net income before tax
7950
Tax expenses (Notes IV and
XXII)
8200
Net income

Other comprehensive income
(Notes IV, IX, and XIX)
8310
Components that will not be
reclassified to profit or
loss
8311
Gains (losses) on
re-measurements of
defined benefit plans
(Note XVIII)
8330
Share of other
comprehensive
income of
subsidiaries and
associates accounted
for using the equity
method
8349
Income tax related to
components that will
not be reclassified to
profit or loss (Note
XXII)

8360
Components that may
be reclassified to
profit or loss
8361
Exchange differences
on translation of
financial statements
of foreign operations
8370
Share of other
comprehensive
income of
subsidiaries and
associates accounted
for using the equity
method

8300
Other comprehensive
income, net
8500
Total comprehensive income

Earnings per share (Note XXIII)
9710
Basic

9810
Diluted
 2021
Amount
1,615,437
223,898)

1,391,539


21,375 )

3,789 )
4,275

20,889)


58,615 )
3,676

54,939)

75,828)

$ 1,315,711

$ 6.19
$ 6.18
(

(
(

(
(

(
(

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

186

Aurora Corporation

Parent Company Only Statements of Changes in Equity For the Years Ended December 31, 2021 and 2020

(In Thousands of New Taiwan Dollars)

Code
A1
Balance as of January 1, 2020

Appropriation and distribution of
earnings for 2019:
B1
Legal reserve
B5
Cash dividends of common stock
C15 Cash dividends appropriated from capital
surplus
D1
Net income in 2020
D3
Other comprehensive income after tax in
2020
D5
Total comprehensive income in 2020

M1
Changes in capital reserve from
dividends paid to subsidiaries
Q1
Disposal of equity instruments at fair
value through other comprehensive
income
Z1
Balance as of December 31, 2020

Appropriation and distribution of
earnings for 2020
B1
Legal reserve
B5
Cash dividends of common stock
C15 Cash dividends appropriated from capital
surplus
D1
Net income in 2021
D3
Other comprehensive income after tax in
2021
D5
Total comprehensive income in 2021

M1
Changes in capital reserve from
dividends paid to subsidiaries
Z1
Balance as of December 31, 2021
 Capital Stock
$ 2,362,025

-
-
-

-
-

-

-
-

2,362,025

-
-
-

-
-

-

-

$ 2,362,025
 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
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


























(



 $ 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

The accompanying notes are an integral part of the Parent Company Only Financial Statements.

Chairman: Yuan Hui-Hua

General Manager: Chou Ming-Chung

Principal Accounting Officer: Lin Ya-Ling

187

Aurora Corporation

Parent Company Only 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 loss
A20900
Finance costs
A21200
Interest income

A22500
Loss on disposal of property,
plant, and equipment
A22300
Share of profit or loss of
subsidiaries and associates
accounted for using the
equity method

A23900
Unrealized gains from
associates
A24000
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

A32125
Contract liabilities
A32150
Accounts payable
A32180
Other payables

A32230
Other current liabilities
A32240
Net defined benefit liabilities

A33000
Cash generated from operations
A33100
Interest received
A33300
Interest paid

A33500
Income tax paid

AAAA
Net cash flows generated from
operating activities

Cash flows from investing activities
B02700
Acquisition of property, plant, and
equipment
 2021
$ 1,615,437
247,177
6,507
1,546
26,023
(
134 )
323
(
1,140,198 )
61,580
(
63,900 )
(
601 )
8,837
18,063
4,526
(
2,502 )
(
251,707 )
(
33,596 )
41,997
9,146
(
4,102 )
14,095
(
18,482)

540,035
134
(
25,826 )
(
130,152)


384,191

(
11,583 )		 2020
$ 1,649,888

247,248

7,490

12

26,183
(
113 )

358
(
1,179,744 )

61,664
(
65,300 )
(
138 )
(
2,285 )

3,732

2,073
(
263 )
(
153,599 )
(
21,749 )

73,498

68,020

15,761

907
(
32,552)

701,091

113
(
26,051 )
(
87,455)

587,698
(
17,135 )

(Continued on the next page)

188

(Continued from the previous page)

Code
B02800
Proceeds from disposal of property,
plant, and equipment
B03700
Increase in refundable deposits

B04500
Acquisition of intangible assets

B07600
Dividends received from subsidiaries
and associates

BBBB
Net cash flows from investing
activities

Cash flows from financing activities
C00100
Increase 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

C03000
Proceeds from guarantee deposits
received
C04500
Cash dividends paid

C04020
Repayment of the principal portion
of lease liabilities

CCCC
Net cash flows used in
financing activities

EEEE
Net increase(decrease) in cash

E00100
Cash at beginning of period

E00200
Cash at end of period
 2021
58
(
7,681 )
(
6,599 )

947,704


921,899

842,170
-
(
299,655 )
(
350,000 )
140
(
1,417,215 )
(
87,448)

(
1,312,008)

(
5,918 )

173,009

$ 167,091
 2020
1
(
6,135 )
(
5,832 )

491,341

462,240
232,766
299,655

-

-
62
(
1,417,216 )
(
82,454)
(
967,187)

82,751

90,258
$ 173,009

The accompanying notes are an integral part of the Parent Company Only Financial Statements.

Chairman: Yuan Hui-Hua

General Manager: Chou Ming-Chung

Principal Accounting Officer: Lin Ya-Ling

189

Aurora Corporation

Notes to Parent Company Only 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) 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 Parent Company Only Financial Statements are presented in the New Taiwan dollar, the Company's functional currency.

2. Date of Authorization for Issuance of the Parent Company Only Financial Statements and

Procedures for Authorization

The Parent Company Only 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 Company.

  • 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)

190

  • Note 1. The amendments to IFRS 9 are applied 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” are applied 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” are applied 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. These amendments are applied 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 financial statements, the Company's assessment of the effects of amendments to other standards and interpretations should not cause material effects on the financial conditions and performance.

  • 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 by
the 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.

191

  • 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.

As of the date of authorization of the Parent Company Only Financial Statements, the Company 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.

4. Summary of Significant Accounting Policies

  • a. Compliance declaration

The Parent Company Only Financial Statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

  • b. Preparation basis

The Parent Company Only Financial Statements have been prepared on a historical cost basis, except for net defined benefit liabilities recognized at the present value of defined benefit obligations less fair value of plan assets.

When preparing parent company only financial statements, the Company adopts the equity method for investments in subsidiaries and associates. In order to align profit or loss, other comprehensive income, and equity from the current year in the Parent Company Only Financial Statements with those attributable to the Company's owners, the differences in accounting treatment with individual and consolidated basis have led to adjustments in "investments accounted for using the equity method", "share of profit or loss of subsidiaries and associates accounted for using the equity method", "share of other comprehensive income of subsidiary and associates accounted for using the equity method" and related equity items.

  • 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 (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. Foreign currencies

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

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.

192

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 parent company only 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.

  • e. Inventories

Inventories comprise raw materials, work in process, and commodities. 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 necessary to make the sale.

  • f. Investments in subsidiaries

The Company has adopted the equity method for investments in subsidiaries.

Subsidiaries refer to entities controlled by the Company.

Under the equity method, the investment is initially recognized at cost. The carrying amount of investment is adjusted thereafter for the post-acquisition changes in the Company's share of profit or loss and other comprehensive income and profit distribution of the subsidiaries. In addition, changes in the Company’s share of subsidiaries' other equity are recognized in proportion to its shareholding ratio.

Any excess of the cost of acquisition over the Company's share of the net fair value of the identifiable assets, and liabilities of subsidiaries 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.

When the Company assesses impairment, the test shall be performed on the basis of cash generating units within the financial statements. The recoverable amount and the carrying amount of cash generating units shall be compared. Subsequently, if the recoverable amount of an asset increases, the recovery of the impairment loss shall be recognized as an advantage, provided that the carrying amount of the asset recovered from the impairment loss shall not exceed the carrying amount of the asset to be amortized if the impairment loss is not recognized. Impairment losses attributable to goodwill shall not be reversed in subsequent periods.

The unrealized profit or loss in downstream transactions between the Company and the subsidiary shall be eliminated in the parent company only financial statements. The gains and losses arising from the countercurrent and side current transactions between the Company and its subsidiaries shall be recognized in the parent company only financial statements only to the extent not related to the Company's equity in the subsidiaries.

193

  • g. Investments in associates

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

The Company accounts for investments in associates using the equity method.

Under the equity method, investments are initially treated at cost and adjusted thereafter for the post-acquisition change in the Company'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 Company’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 Company'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 Company 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 Company 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 Company and associates are recognized in the financial statements only when the profits and losses are irrelevant to the Company's interests in the associates.

  • h. 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.

  • i. Investment properties

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

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

194

j. 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 Company 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 unit 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 unit 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 unit 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.

  • k. 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 Company 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.

  • l. 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 Company 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. If it is not possible to determine the recoverable amount for an individual asset, the Company shall estimate the recoverable amount of the asset's cash-generating unit.

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

195

impairment loss in the previous years. A reversal of an impairment loss is recognized immediately in profit or loss.

  • m. Financial instruments

Financial assets and financial liabilities shall be recognized in the balance sheets when the Company becomes a party of the financial instrument contract.

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 Company are financial assets at amortized cost.

Financial assets at amortized cost

When the Company's investments in financial assets match 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. Financial assets that are not credit impairment from purchases or at the time of founding but subsequently become credit impairments shall be calculated by multiplying the effective interest rate in the reporting period after the credit impairment by the cost after the amortization of financial assets.

  • b) Impairment of financial assets

The impairment loss of financial assets at amortized cost is measured by the Company 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.

196

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 Company 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 Company derecognizes the financial assets when the contractual rights to the cash flow from the said financial assets expire or when the Company 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.

  • 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.

  • n. Revenue recognition

After the Company 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 Company 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.

197

o. Leases

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

1) Where the Company 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 Company 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. A right-of-use asset is separately presented on the 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 Company 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 expressed separately in the balance sheets.

  • p. 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.

198

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.

  • q. 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 parent company only statements of comprehensive income. The Company's current income tax liabilities are based on the statutory tax rate on the balance sheet date.

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 Company 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 Company expects, at the balance sheet date, to recover or settle the carrying amount of its assets and liabilities.

199

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 Company 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 Company 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 Company, the management found no material uncertainties.

6. Cash

Cash on hand and working capital
Checks and demand deposits in banks
Notes Receivable and Accounts Receivable
Notes receivable
Measured at amortized cost
Total carrying amount
Less: loss allowance
Accounts receivable
Measured at amortized cost
Total carrying amount
Less: loss allowance
(Continued on the next page)		 December 31,2021
$ 2,285
164,806
$ 167,091
December 31,2021
$ 74,211

-
$ 74,211
$ 137,452
(
3,046)
$ 134,406		 December 31,2020 December 31,2020
$ 2,320
170,689
$ 173,009
December 31,2020




(



(
 $ 83,048
-
$ 83,048
$ 155,531
1,516)
$ 154,015

7. Notes Receivable and Accounts Receivable

200

December 31, 2021 December 31, 2020

(Continued from previous page)

Accounts receivable-related parties
Measured at amortized cost
Total carrying amount

Less: loss allowance


Overdue receivables
Overdue receivables

Less: loss allowance
(
 $ 67,966

-

$ 67,966

$ 2,705


2,705)
(
$ -
 $ 72,492
-
$ 72,492
$ 2,995

2,995)
$ -

Accounts receivable

The Company's credit period for commodity sales averages 60~90 days. To minimize credit risk, the management of the Company has delegated a team responsible for taking other monitoring measures to ensure that follow-up action is taken to recover overdue debts. The Company will also review recoverable amount of receivable on balance sheet date to ensure unrecoverable receivables are listed in impairment loss. As such, the management concludes that the credit risk of the Company is significantly reduced.

The Company 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 Company, 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 Company 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 Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these 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
 Not Past Due
0.24%
$ 134,399

(
317)

$ 134,082
1 to 90 Days
Past Due
78.75%
$ 1,525

(
1,201)

$ 324
 More than 91
Days Past Due
100%
$ 1,528

(
1,528)

$ -
 Total

(
(
(
(
 $ 137,452
3,046)
$ 134,406

201

December 31, 2020


Expected credit loss rate
Total carrying amount

Allowance for loss (expected credit
losses during the period)

Amortized cost
 Not Past Due
0.15%
$ 153,221

(
230)

$ 152,991
1 to 90 Days
Past Due
55.51%
$ 2,302

(
1,278)

$ 1,024
 More than 91
Days Past Due
100%
$ 8

(
8)

$ -
 Total

(
(
(
(
 $ 155,531
1,516)
$ 154,015

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

follows:
Beginning balance
Add:
Impairment loss in the current
period
Less:
Write-off in the current year
Ending balance		 2021
$ 4,511
1,546

306)
$ 5,751		 2020

(
(
 $ 4,723
12

224)
$ 4,511

8. Inventories

Commodities
Office
automation
products,
office
supplies, and computer equipment
System furniture
Raw materials
Work in process
Goods in Transit		 December 31,2021
$ 279,263
310,275
23,723
6,538

14,582
$ 634,381		 December 31,2020 December 31,2020






$ 244,376
227,092
16,301
7,824
7,953
$ 503,546

The costs of goods sold related to inventories for the years ended December 31, 2021 and 2020 were NT$1,666,178 thousand (including NT$8,955 thousand of inventory falling price loss) and NT$1,556,713 thousand (including NT$1,206 thousand of inventory falling price loss), respectively.

9. Investments Accounted for Using the Equity Method

Investments in subsidiaries
Investments in associates		 December 31,2021
$ 8,627,558

2,153,314
$ 10,780,872		 December 31,2020 December 31,2020




$ 8,419,245
2,157,211
$ 10,576,456

a. Investments in subsidiaries

202

(Continued on the next page)

(Continued from previous page)

Unlisted companies
Aurora (Bermuda) Investment Ltd.
Aurora Office Automation
Corporation
General Integration Technology
Co., Ltd.
KM Developing Solutions Co., Ltd.
Aurora Machinery Equipment
(Shanghai) Co., Ltd.
Ever Young Biodimension
Corporation		 December 31,2021
$ 7,305,999
1,035,862
137,361
109,052
34,970

4,314
$ 8,627,558		 December 31,2020 December 31,2020






$ 7,063,743
1,076,067
129,128
104,947
41,076
4,284
$ 8,419,245

The percentage of ownership, equities, and voting rights of the Company in subsidiaries as of the balance sheet date are as follows:

of the balance sheet date are as follows:
Aurora (Bermuda) Investment Ltd.
Aurora Office Automation
Corporation
General Integration Technology Co.,
Ltd.
KM Developing Solutions Co., Ltd.
Aurora Machinery Equipment
(Shanghai) Co., Ltd.
Ever Young Biodimension
Corporation		 December 31,2021
88.04%
91.13%
55.00%
70.00%
70.00%
26.00%		 December 31,2020
88.04%
91.13%
55.00%
70.00%
70.00%
26.00%

The Company's shareholding in Ever Young Biodimension Corporation is 26%, and General Integration Technology Co., Ltd. holds 25% of Ever Young Biodimension Corporation's shares, totaling over 50% of the voting rights of Ever Young Biodimension Corporation. As the Company has control over Ever Young Biodimension Corporation, it is classified as a subsidiary.

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 Machinery Equipment (Shanghai) Co., Ltd. However, the Company's management believed that the unaudited financial statements of Aurora Machinery Equipment (Shanghai) Co., Ltd. would not lead to significant adjustments.

203

204

b. Investments in associates

December 31, 2021

December 31, 2020

Significant associates
Listed companies
Huxen Corporation

Individually insignificant associates
Unlisted companies
Aurora Development Corp.
Aurora Telecom Co., Ltd.

 $ 1,444,402

494,848
214,064

$ 2,153,314
 $ 1,427,127
496,580
233,504
$ 2,157,211

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

the balance sheet date are as follows:
Name of Company
Huxen Corporation
Aurora Development Corp.
Aurora Telecom Co., Ltd.		 December 31,2021
32.53%
46.67%
30.40%		 December 31,2020
32.53%
46.67%
30.40%

Please refer to Note XXXIII (Table 5) 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 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
$ 2,411,643		 December 31,2020
$ 2,421,045

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.

205

Huxen Corporation

Huxen Corporation
December 31,2021
December 31,2020
Current Assets
$ 1,252,341
$ 1,232,685
Non-current assets
4,958,409
4,880,103
Current Liabilities
( 1,284,301 )
( 1,213,982 )
Non-current liabilities
(
700,588)
(
718,985)
Equity
$ 4,225,861
$ 4,179,821
The Company's shareholding ratio
32.53%
32.53%
December 31,2021
December 31,2020
Interests of the Company
$ 1,374,673
$ 1,359,695
Unrealized gains (losses) on
transactions with investees
(
90,038 )
(
92,357 )
Goodwill

159,767

159,789
Investment carrying amount
$ 1,444,402
$ 1,427,127
2021
2020
Operating revenue
$ 1,415,003
$ 1,409,767
Net income
$ 549,456
$ 568,211
Other comprehensive income

16,770
(
13,763)
Total comprehensive income
$ 566,226
$ 554,448
Dividends received from the
associate
$ 169,238
$ 178,640
Information on individually insignificant associates is summarized below:
2021
2020
The Company's share of:
Net income
$ 3,965
$ 386
Other comprehensive income

1,837

10,385
Total comprehensive income
$ 5,802
$ 10,771		 December 31,2020
$ 1,232,685
4,880,103
( 1,213,982 )
(
718,985)
$ 4,179,821
32.53%
December 31,2020
$ 1,359,695
(
92,357 )

159,789
$ 1,427,127
2020
$ 1,409,767
$ 568,211

13,763)
$ 554,448
$ 178,640

2020



$ 386
10,385
$ 10,771

  • c. Share of profit or loss and other comprehensive income of subsidiaries and associates accounted for using the equity method are as follows:

  • 1) Share of profit (loss) of subsidiaries and associates accounted for using the equity method:

206

Aurora (Bermuda) Investment Ltd.
Aurora Office Automation
Corporation
General Integration Technology
Co., Ltd.
KM Developing Solutions Co., Ltd.
Aurora Machinery Equipment
(Shanghai) Co., Ltd.

Ever Young Biodimension
Corporation
Huxen Corporation
Aurora Development Corp.
Aurora Telecom Co., Ltd.
 2021
Profit or Loss of
Investee
Investment
Profit or Loss
Recognized by
the Company
$ 810,020
$ 743,776

281,230
186,769
14,946
8,306

34,864
24,405
(
8,273 ) (
5,791 )
115
30
549,456
178,738
50,149
23,405
(
63,946 ) (
19,440)

$ 1,140,198		 2021
Profit or Loss of
Investee
Investment
Profit or Loss
Recognized by
the Company
$ 810,020
$ 743,776

281,230
186,769
14,946
8,306

34,864
24,405
(
8,273 ) (
5,791 )
115
30
549,456
178,738
50,149
23,405
(
63,946 ) (
19,440)

$ 1,140,198		 2020 2020 2020
Profit or Loss of
Investee
$ 810,020

281,230
14,946

34,864
(
8,273 )
115
549,456
50,149
(
63,946 )
 Profit or Loss of
Investee
$ 827,357

279,885
(
702 )
32,174
(
23,720 )
(
6,777 )
568,211
49,233
(
74,310 )
 Investment
Profit or Loss
Recognized by
the Company


(

(
(
(
(
(
 $ 803,422
187,333

388 )
22,521

16,603 )

1,766 )
184,839
22,977

22,591)
$ 1,179,744
  • 2) Share of other comprehensive income of subsidiaries and associates accounted for using the equity method:
using the equity method:
Aurora (Bermuda) Investment Ltd.
Aurora Office Automation
Corporation
General Integration Technology
Co., Ltd.

Aurora Machinery Equipment
(Shanghai) Co., Ltd.

Huxen Corporation
Aurora Development Corp.		 2021
Other
Comprehensive
Income of
Investee
Other
Comprehensive
Income
Recognized by
the Company
( $ 66,220 ) ( $ 58,300 )
3,201 (
7,332 )
(
135 ) (
73 )
(
450 ) (
315 )
16,770
5,455
3,935

1,837
($ 58,728)		 2020
Other
Comprehensive
Income of
Investee
( $ 66,220 )
3,201
(
135 )
(
450 )
16,770
3,935

 Other
Comprehensive
Income of
Investee
$ 139,883

226,340

250

834
(
13,763 )
22,251

 Other
Comprehensive
Income
Recognized by
the Company
(
(
(
(

(



(

 $ 123,153

219,929

98

583

4,476 )
10,385
$ 349,672

10. Property, plant, and equipment

Property, plant, and equipment
For self-use
Operating lease		 December 31,2021
$ 542,159
234,137
$ 776,296		 December 31,2020




$ 558,613
244,439
$ 803,052

207

a. For self-use

For self-use
Cost
Balance as of January 1, 2021

Addition
Inventories transferred to
property, plant, and
equipment
Disposal and obsolescence

Balance as of December 31,
2021

Accumulated depreciation
Balance as of January 1, 2021
Depreciation expenses
Disposal and obsolescence

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
Disposal and obsolescence

Balance as of December 31,
2020

Accumulated depreciation
Balance as of January 1, 2020
Depreciation expenses
Disposal and obsolescence

Balance as of December 31,
2020

Net amount as of December 31,
2020
 Self-owned
Land		 Housing and
Construction		 Machinery Office
Equipment		 Total











$ 424,697

-
-

-

424,697

-

-

-


-

$ 424,697

$ 424,697

-
-

-

424,697

-

-

-


-

$ 424,697







(


(

 $ 173,556

-
-

-

173,556

114,529
4,272

-

118,801

$ 54,755

$ 174,144

-
-

588)

173,556

111,112
4,005

588)

114,529

$ 59,027
(

(



(

(

 $ 61,092

6,497
-

2,300)


65,289

30,842
6,871

2,300)


35,413

$ 29,876

$ 54,638

7,444
-

990)


61,092

25,623
6,209

990)


30,842

$ 30,250
(

(



(

(

 $ 97,858

5,086
818

15,496)


88,266

53,219

17,671

15,455)


55,435

$ 32,831

$ 106,901

9,691
715

19,449)


97,858

52,818

19,850

19,449)


53,219

$ 44,639
(


(



(


(

 $ 757,203
11,583
818

17,796)
751,808
198,590
28,814

17,755)
209,649
$ 542,159
$ 760,380
17,135
715

21,027)
757,203
189,553
30,064

21,027)
198,590
$ 558,613

208

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:

Housing and Construction

durable years:
Housing and Construction
Warehouses 20 years
Plants and buildings 40~55 years
Mechanical and electrical engineering 25~30 years
Housing improvements 30~34 years
Machinery
Monitoring instruments and water softeners 2~15 years
Air compressors 16 years
Office Equipment 1~15 year(s)
  • b. Operating leases - office equipment
Operating leases - office equipment
Cost
Beginning balance
Inventories transferred to property,
plant, and equipment
Property, plant, and equipment
transferred to inventories
Disposal and obsolescence
Ending balance
Accumulated depreciation
Beginning balance
Depreciation expenses
Property, plant, and equipment
transferred to inventories
Disposal and obsolescence
Ending balance
Ending net amount		 2021
$ 777,082
125,425
(
31,256 )
(
70,021)

801,230
532,643
130,016
(
25,885 )
(
69,681)

567,093
$ 234,137		 2020
$ 803,664
104,560
(
42,856 )
(
88,286)

777,082
523,158
133,517
(
36,105 )
(
87,927)

532,643
$ 244,439

For the Company'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.

209

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
Year 6		 December 30,2021
$ 23,282
16,476
6,130
2,732
811

37
$ 49,468		 December 31,2020




$ 21,846
13,907
10,150
2,526
1,123
-
$ 49,552

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

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

11. Lease Agreements

  • a. Right-of-use assets
Cost
Balance as of January 1, 2021

Addition
Disposal and obsolescence

Balance as of December 31,
2021

Accumulated depreciation
Balance as of January 1, 2021
Depreciation expenses
Disposal and obsolescence

Balance as of December 31,
2021

Net amount as of December 31,
2021

Cost
Balance as of January 1, 2020

Addition
Disposal and obsolescence

(Continued on the next page)		 Land and
Buildings
$ 206,473
111,429

73,462)

244,440

69,279
75,141

40,279)

104,141

$ 140,299

$ 175,368
123,154

92,049)
 Transportation
Equipment
$ 33,218

8,174
(
6,576)


34,816


11,636

12,731
(
6,099)


18,268

$ 16,548

$ 19,158

21,582
(
7,522)
 Total

(

(



(

(



(




(

(



(




(		 $ 239,691

119,603

80,038)

279,256

80,915

87,872

46,378)

122,409
$ 156,847
$ 194,526

144,736

99,571)

210

(Continued from previous page)

Balance as of December 31,
2020

Accumulated depreciation
Balance as of January 1, 2020
Depreciation expenses
Disposal and obsolescence

Balance as of December 31,
2020

Net amount as of December 31,
2020
 Land and
Buildings
206,473

58,242
71,272

60,235)

69,279

$ 137,194
 Transportation
Equipment

33,218


6,562

11,921
(
6,847)


11,636

$ 21,582
 Total

(


(


(

 239,691

64,804

83,193

67,082)
80,915
$ 158,776

b. Lease liabilities

Lease liabilities
Carrying amount of lease liabilities
Current
Non-current		 December 31,2021
$ 78,661
$ 79,269		 December 31,2020


$ 73,819
$ 86,217

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
0.762%~0.789%
0.762%~0.789%		 December 31,2020
0.783%~0.789%
0.783%~0.789%
  • c. Major lease activities and terms

The Company leases land, buildings, and transportation equipment for operations, and the lease term is between 1 to 6 year(s). When the lease term ends, the Company has no preferential rights to purchase the leased vehicles and business premises.

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 X and XII.

2021 2020
Short-term lease expenses ($ 2,936) ($ 2,471)
Total cash flows on lease
- Repayment of lease liabilities ( $ 87,448 ) ( $ 82,454 )
- Interest expenses paid (
1,227)		 (
1,135)
($ 88,675) ($ 83,589)

211

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

12. Investment properties

Investment properties
Cost
Beginning balance

Ending balance

Accumulated depreciation
Beginning balance
Depreciation expenses

Ending balance

Ending net amount
 2021 Total
$ 84,541

84,541


13,048
475

13,523

$ 71,018
 2020
Land
$ 57,970


57,970

-

-


-

$ 57,970
 Housing and
Construction
$ 26,571


26,571


13,048

475


13,523

$ 13,048
 Land
$ 57,970

57,970


-
-

-

$ 57,970
 Housing and
Construction
$ 26,571


26,571


12,574

474


13,048

$ 13,523
 Total





























$ 84,541
84,541

12,574
474
13,048
$ 71,493

The investment property is subject to a lease term of 2 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		 December 31,2021
$ 330

-
$ 8,490		 December 31,2020




$ 3,960
330
$ 4,290

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

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

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

Main buildings 55 years

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

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

Fair value December 31,2021
$ 85,372		 December 31,2020 December 31,2020
$ 85,986

212

13. Intangible assets

a. Goodwill

December 31, 2021 December 31, 2020

Carrying amount
Goodwill
 $ 38,147
 $ 38,147

No indication of impairment was identified in 2021 and 2020.

  • b. Other intangible assets
Cost
Beginning balance

Addition
Disposal and
obsolescence

Ending balance

Accumulated
amortization
Beginning balance
Amortization expenses
Disposal and
obsolescence

Ending balance

Ending net amount
 2021 Total
$ 20,146

6,599

3,531)

23,214


9,678

6,507

3,531)

12,654

$ 10,560
 2020
Trademark
Right
$ 808
-

-


808

786

22

-


808

$ -
 Computer
Software
$ 19,338

6,599

3,531)

22,406


8,892

6,485

3,531)

11,846

$ 10,560
 Trademark
Right
$ 2,531

-
(
1,723)


808


2,469

40
(
1,723)


786

$ 22
 Computer
Software
$ 30,972

5,832
17,466)

19,338

18,908

7,450
17,466)


8,892

$ 10,446
 Total








(



(

(



(

(



(

(



(

(



(

 $ 33,503

5,832
19,189)
20,146
21,377

7,490
19,189)

9,678
$ 10,468

No indication of impairment was identified in 2021 and 2020.

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

lives:
Trademark Right 20 years
Computer Software 1~10 year(s)

14. Other current assets

Other current assets
Prepayments for goods
Prepaid expenses
Temporary payments
Tax overpaid retained for offsetting the
future tax payable		 December 31,2021
$ 70,470
3,927
3,088

135
$ 77,620		 December 31,2020
$ 34,759
4,189
4,943

133
$ 44,024


$ 34,759
4,189
4,943
133
$ 44,024

213

15. Loans

  • a. Short-term loans
ns
Short-term loans
Credit loans
Loans for material purchase
Credit loans
NTD
Loans for material purchase
USD		 December 31,2021
$ 3,050,000

75,822
$ 3,125,822
0.66%～0.73%
0.64%～0.76%		 December 31,2020
$ 2,260,000

23,652
$ 2,283,652
0.69%～0.79%
0.74%～0.81%

  • 1) Please refer to Note XXVIII for assets pledged as collateral for the above-mentioned loans.

  • 2) Please refer to Note XXIX (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

Long-term loans
Secured loans
Bank loans (1)
Unsecured loans
Bank loans (2)		 Nominal
Amount
$ 300,000
 Discounted
Amount
Carrying
amount
($ 345)
$ 299,655
December 31,2021
$ -

650,000
$ 650,000		 Interest
Rate
Collateral
0.75%
None
December 31,2020
$ 570,000

430,000
$ 1,000,000		 Collateral
( $




$ 570,000
430,000
$ 1,000,000

  • c. Long-term loans

  • 1) Loans are secured by pledge of land and buildings held by the Company (see Note XXVIII), with interest accruing at floating rates and the remaining maturity period of not more than 2 years as of December 31, 2020. The rate range was 1.00% per annum. Interest is paid on a monthly basis, and the principal is paid at maturity for subsequent borrowing.

214

  • 2) Unsecured loans are bank loans at floating rates. As of December 31, 2021 and 2020, the rate ranges were 0.71%~0.825% and 0.85%~1.00% per annum, respectively. Interest is paid on a monthly basis, and the principal is paid at maturity for subsequent borrowing.

16. Accounts Payable

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

17. Other Liabilities

  • a. Other payables
Salaries and bonuses payable
Related parties
Business taxes payable
Holiday benefits payable
Others		 December 31,2021
$ 164,397
41,281
11,414
360

48,340
$ 265,792		 December 31,2020 December 31,2020




$ 159,053
41,669
17,045
362
51,568
$ 269,697

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

  • b. Other current liabilities
the Company on behalf of related parties.
Other current liabilities
Temporary credits
Receipts under custody		 December 31,2021
$ 59,759

3,285
$ 63,044		 December 31,2020




$ 45,876
3,073
$ 48,949

18. Post-retirement Benefit Plan

  • a. Defined contribution plans

The Company adopts a pension plan under the Labor Pension Act, which is a state-managed defined contribution plan. According to the Labor Pension Act, the Company makes monthly contributions to employees' individual pension accounts at 6% of their monthly salaries.

b. Defined benefit plans

The pension system adopted by the Company 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 allocates 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 has no right over its investment and administration strategies.

215

The amounts of defined benefit plans included in the parent company only balance sheets are as follows:

are as follows:
December 31,2021 December 31,2020
Present value of defined benefit
obligation $ 449,934 $ 446,204
Fair value of plan assets (
37,040		 ) ( 36,203)
Net defined benefit liabilities $ 412,894 $ 410,001
Changes in net defined benefit liabilities (assets) are as follows:
Present value Net defined
of defined benefit
benefit Fair value of liabilities
obligation plan assets (assets)
January 1, 2021
 $ 446,204 ($ 36,203 )
 $ 410,001
Service costs
Service costs for the current period
494		 -
494
Interest expenses (income)
 2,231 ( 235 )
 1,996
Recognized in profit or loss
 2,725 ( 235 )
 2,490
Remeasurements
Return on plan assets (excluding
interest income calculated by a
discount rate) - ( 331 ) (
331 )
Actuarial losses - changes in
demographic assumptions 11,642 -
11,642
Actuarial losses - changes in
financial assumptions
 (
5,418 )		 - (
5,418 )
Actuarial losses - experience
adjustments
 15,482 - 15,482
Recognized in other comprehensive
income
 21,706 ( 331 )
 21,375
Contribution by the employer - ( 20,972 ) (
20,972 )
Benefits paid on plan assets
 ( 20,701)
20,701
-
December 31, 2021
 $ 449,934 ($ 37,040 )
 $ 412,894
January 1, 2020
 $ 433,635 ($ 18,631 )
 $ 415,004
Service costs
Service costs for the current period
817		 -
817
Service costs for the previous
period 36 -
36
Interest expenses (income)
 3,252 ( 222 )
 3,030
Recognized in profit or loss
 4,105 ( 222 )
 3,883

(Continued on the next page)

216

(Continued from previous page)

(Continued from previous page)
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
-
4,777
11,109

12,352


28,238

-
(
19,774)

$ 446,204
 Fair value of
plan assets
(
689 )

-

-

-

(
689)

(
36,435 )

19,774

($ 36,203)
 Net defined
benefit
liabilities
(assets)


(
 (
689 )

4,777

11,109

12,352

27,549
(
36,435 )

-
$ 410,001

The Company 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 Company 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 Company'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%

217

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
($ 10,794)
$ 11,173
$ 10,825
($ 10,513)		 December 31,2020 December 31,2020
(


(		 (


(		 $ 11,220)
$ 11,629
$ 11,253
$ 10,951)

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
$ 21,861
9.7年		 December 31,2020 December 31,2020
$ 21,396
10.2年

19. Equity

a. 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 December 31,2020






500,000
$ 5,000,000
236,202
$ 2,362,025

218

b. Capital surplus

December 31, 2021 December 31, 2020

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

 $ 931,641

3,333
938
54,838
7,913
7,948
892,411
40,247

$ 1,939,269
 $ 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 XXI (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.

219

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 per share and NT$0.2 per share) from capital surplus - stock issuance premium of NT$70,860 thousand and 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 arising from first-time application of IFRSs is as follows:

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.

220

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 Company
Associates accounted for using the
equity method
Unrealized gains (losses) on financial
assets at fair value through other
comprehensive income
Subsidiaries and associates
accounted for using the equity
method		 December 31,2021
( $ 621,480)
(
60,695)
(682,175)
655,933
($ 26,242)		 December 31,2020
( $ 511,130)
(103,503)
(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 Company'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.

upon disposal of foreign operations.
Beginning balance
Incurred this year
Exchange differences on translation
of foreign operations
Share of associates accounted for
using the equity method
Other comprehensive income
Ending balance		 2021
( $ 614,633 )
( 58,615 )
(
8,927)
(67,542)
($ 682,175)		 2020
( $ 758,072 )
123,736
19,703
143,439
($ 614,633)

221

  • 2) Unrealized gains (losses) on financial assets at fair value through other comprehensive income
income
Beginning balance
Incurred this year
Unrealized gains (losses)
Share of subsidiaries and associates
accounted for using the equity
method
Other comprehensive income
Accumulated gains (losses) on
disposal of equity instruments
transferred to retained earnings
Ending balance
f.
Treasury shares
Shares of the Company held by
subsidiaries		 2021
$ 643,330
12,603
12,603

-
$ 655,933
December 31,2021
$ 791,826		 2020
$ 505,137
207,584
207,584
(69,391)
$ 643,330
December 31,2020
$ 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
Treasury
Shares
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
Treasury
Shares
$ 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.

222

20. Revenue

  • a. Breakdown of revenue from contracts with customers
Product category
Office Equipment
Office furniture
Others		 2021
$ 1,977,618
1,254,182
53,329
$ 3,285,129		 2020






$ 2,005,036
1,098,461
71,116
$ 3,174,613
  • b. Contract balance
Contract balance
Notes receivable (Note VII)
Accounts receivable (including related
parties) (Note VII)
Contract liabilities		 December 31,2021
$ 74,211
202,372
179,273		 December 31,2020
$ 83,048
226,507
137,276

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

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$131,377 thousand and NT$62,635 thousand, respectively.

21. Net Income

  • a. Other income
Income
Other income
Rental income
- Investment properties
Income from consultancy
Other income		 2021
$ 4,788
77,888

4,253
$ 86,929		 2020




$ 4,076
77,538
2,611
$ 84,225

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

  • b. Other gains and losses
for rendering consulting services.
Other gains and losses
Loss on disposal of property, plant,
and equipment
Gains on lease modifications
Net foreign exchange gains (losses)
Miscellaneous expenses		 2021
( $ 323 )
601
262
( 2,229)
($ 1,689)		 2020
( $ 358 )
138
(
361 )
(
946)
($ 1,527)

223

c.
Finance costs
Interest on bank loans
Lease interest
Imputed interest on deposits
d. Depreciation and amortization expenses
Property, plant, and equipment
Right-of-use assets
Investment properties
Intangible assets
Depreciation expenses by function
Operating costs
Operating expenses
Non-operating income and expenses
Amortization expenses by function
Operating costs
Operating expenses
e.
Employee benefits
Short-term employee benefits
Retirement benefits (Note XVIII)
Defined contribution plans
Defined benefit plans
Total employee benefit expenses
By function
Operating costs
Operating expenses		 2021
$ 24,790
1,227
6
$ 26,023
2021
$ 158,830
87,872
475
6,507
$ 253,684
$ 139,691
107,011
475
$ 247,177
$ 186
6,321
$ 6,507
2021
$ 820,265
34,470
2,490
$ 857,225
$ 43,328
813,897
$ 857,225		 2020




$ 25,048
1,135
7
$ 26,190
2020


















$ 163,581
83,193
474
7,490
$ 254,738
$ 142,778
103,996
474
$ 247,248
$ 215
7,275
$ 7,490
2020










$ 815,920
34,886
3,883
$ 854,689
$ 41,230
813,459
$ 854,689

224

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 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 parent company only 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.

22. Income Tax

  • a. Major components of income tax expenses (benefits) recognized in profit or loss are as follows:
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
$ 181,551
-
181,551
42,347
$ 223,898		 2020








$ 86,969
6
86,975
124,604
$ 211,579

225

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

b.
c.		 2021
Income before tax
$ 1,615,437
Income tax expenses calculated at the
statutory rate
$ 323,087
Fees that cannot be deducted from
taxes
1
Tax-exempted income
(
84,331 )
Unrecognized deductible temporary
difference
(
14,859 )
Adjustments of current income tax
expenses in previous years

-
Income tax expense recognized in
profit or loss
$ 223,898
Income tax recognized in other comprehensive income
2021
Deferred income tax
Accrued this year - remeasurements
of defined benefit plans
($ 4,275)
Current income tax liabilities
December 31,2021
Current income tax liabilities
Income tax payable
$ 93,739		 2020 2020
$ 1,649,888
$ 329,977
1
(
103,837 )
(
14,568 )

6
$ 211,579
2020
($ 5,510)
December 31,2020
$ 42,340
  • d. Deferred income tax assets and liabilities

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

(Continued on the next page)

226

(Continued from previous page)

2021

2021
Deferred income tax assets
Temporary differences
Deferred revenue

Loss allowances
Loss on inventory write-down
Holiday benefits payable
Book-tax difference in
pensions
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


2020
Deferred income tax assets
Temporary differences
Deferred revenue

Loss allowances
Loss on inventory write-down
Holiday benefits payable
Book-tax difference in
pensions
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

 Beginning
balance
$ 18,472
274

2,168
73
13,131
44,824

$ 78,942

$ 258,429
7

$ 258,436

Beginning
balance
$ 19,199
309

1,927
95
19,641
39,314

$ 80,485

$ 140,885
-

$ 140,885
 Recognized
in profit or
loss
( $ 464 )

311

1,791
(
1 )
(
3,696 )

-

($ 2,059)

$ 40,205

83

$ 40,288

Recognized
in profit or
loss
( $ 727 )
(
35 )

241
(
22 )
(
6,510 )

-

($ 7,053)

$ 117,544

7

$ 117,551
 Recognized in
other
comprehensive
income
$ -


-

-

-

-

4,275

$ 4,275

$ -


-

$ -

Recognized in
other
comprehensive
income
$ -


-

-

-

-

5,510

$ 5,510

$ -


-

$ -
 Ending
balance











$ 18,008
585
3,959
72
9,435
49,099
$ 81,158
$ 298,634
90
$ 298,724
Ending
balance




















$ 18,472
274
2,168
73
13,131
44,824
$ 78,942
$ 258,429
7
$ 258,436

227

  • 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 not recognized as deferred income tax liabilities were NT$799,350 thousand and NT$785,087 thousand, respectively.

  • f. Income tax assessment

The Company's corporate income tax returns have been assessed by the Tax Authorities until 2019. There is no difference between the assessment result and the filing.

23. Earnings per Share

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

Net income

per share are as follows:
Net income
Net income
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 Company 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.

24. Capital Risk Management

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

228

25. Information on Cash Flows

The acquisition of property, plant, and equipment by the Company 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
$ 126,243
$ 5,371		 2020


$ 105,275
$ 6,751

26. Financial instruments

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

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

  • b. Category of financial instruments
Category of financial instruments
Financial assets
Financial assets at amortized cost
(Note 1)
Financial liabilities
Measured at amortized cost (Note 2)		 December 31,2021
$ 558,638
4,208,247		 December 31,2020
$ 587,345
4,010,062

  • Note 1. The balance includes cash, accounts receivable, other receivables, refundable deposits, and other financial assets at amortized cost.

  • Note 2. The balance includes short-term loans, short-term notes and bills payable, accounts payable, other payables (excluding employee benefits payable and business tax payable), long-term loans, guarantee deposits received, and other financial liabilities at amortized cost.

  • c. Financial risk management objectives and policies

The main financial instruments of the Company include equity instrument investments, accounts receivable, accounts payable, loans, and lease liabilities. The financial management department of the Company provides services for the business units, coordinates the operation of the domestic financial market, and supervises and manages financial risks related to the operation of the Company by analyzing the internal risk reports of the risks according to the level and scope of risks. Such risk includes market risk (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk.

  • 1) Market risk

The main financial risks the Company is exposed to in the business activities are foreign exchange risk and interest rate risk.

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

229

a) Foreign exchange risk

For the monetary assets and liabilities of the Company denominated in non-functional currencies on the balance sheet date, please refer to Note XXXI.

Sensitivity analysis

The Company 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
$ 2,275		 2020
$ 641

The impact of profit or loss was mainly attributable to the demand deposits and loans for material purchasing denominated in USD that were still outstanding and not hedged in cash flows on the balance sheet date. The Company'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 Company.

b) Interest rate risk

The carrying amounts of financial assets and financial liabilities of the Company 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
$ 157,930
157,463
650,000		 December 31,2020
$ 459,691
160,413
1,000,000

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.

230

If the interest rate increased or decreased by 25 basis points, the Company's net income before tax in 2021 and 2020 would have decreased or increased by NT$1,231 thousand and NT$2,099 thousand, respectively, with all other variables remaining constant. This is mainly attributable to the exposure to the risks of interest rates of the Company's deposits and long-term loans.

2) Credit risk

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

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

3) Liquidity risk

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

The following tables detail the Company’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 Company 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(%)

0.77%
0.70%

 Payment on
Sight or
within 1
Month

$ 133,050
6,947
-
1,605,412

$ 1,745,409
 1~3 Month(s)
$ 295,171

13,774

-
1,520,410

$ 1,829,355
 3~12 Months
$ 3,914

57,518

-

-
$ 61,432
 1~5 Year(s)













$ 290

79,796
650,000

-
$ 730,086

231

December 31, 2020

Weighted Average
Effective Rate(%)
Non-derivative financial
liabilities
Zero-interest-bearing
liabilities

Lease liabilities
Variable-rate
instruments
0.97%
Instruments with fixed
interest rates
0.74%


Line of credit
Unsecured banking facilities
- Amount utilized
- Amount not utilized
Secured banking facilities
- Amount utilized
- Amount not utilized		 Payment on
Sight or
within 1
Month
1~3 Month(s)
$ 201,213 $ 217,968
6,527
12,965
-
-
2,059,993

499,655

$ 2,267,733
$ 730,588

December 31,2021
$ 3,869,714
3,964,886
$ 7,834,600
$ -

920,000
$ 920,000		 Payment on
Sight or
within 1
Month
1~3 Month(s)
$ 201,213 $ 217,968
6,527
12,965
-
-
2,059,993

499,655

$ 2,267,733
$ 730,588

December 31,2021
$ 3,869,714
3,964,886
$ 7,834,600
$ -

920,000
$ 920,000		 3~12 Months
1~5 Year(s)
$ 6,710
$ 864

53,260
84,080

-
1,000,000

23,659

-
$ 83,629
$ 1,084,944
December 31,2020
$ 3,060,759
3,039,841
$ 6,100,600
$ 570,000

350,000
$ 920,000		 3~12 Months
1~5 Year(s)
$ 6,710
$ 864

53,260
84,080

-
1,000,000

23,659

-
$ 83,629
$ 1,084,944
December 31,2020
$ 3,060,759
3,039,841
$ 6,100,600
$ 570,000

350,000
$ 920,000		 3~12 Months
1~5 Year(s)
$ 6,710
$ 864

53,260
84,080

-
1,000,000

23,659

-
$ 83,629
$ 1,084,944
December 31,2020
$ 3,060,759
3,039,841
$ 6,100,600
$ 570,000

350,000
$ 920,000		 3~12 Months
1~5 Year(s)
$ 6,710
$ 864

53,260
84,080

-
1,000,000

23,659

-
$ 83,629
$ 1,084,944
December 31,2020
$ 3,060,759
3,039,841
$ 6,100,600
$ 570,000

350,000
$ 920,000		 1~5 Year(s)


$



$


$		 $










$ 3,060,759
3,039,841
$ 6,100,600
$ 570,000
350,000
$ 920,000

27. Related Party Transactions

In addition to those disclosed in other notes, the transactions between the Company and related parties are as follows:

  • a. Names and relations of related parties
ies are as follows:
Names and relations of related parties
Related Party
Aurora Holdings Incorporated (Aurora Holdings)
Aurora Office Equipment Co., Ltd. Shanghai (AOE)
Aurora (China) Co., Ltd. (AOF)
Aurora Office Automation Sales Co., Ltd. Shanghai
(AOA)
Aurora Office Automation Corporation (Aurora
Office Automation)
General Integration Technology Co., Ltd. (General
Integration)
(Continued on the next page)		 Relationshipwith the Company
Investor
of
significant
influence
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary

232

(Continued from previous page)

Related Party Relationship with the Company

KM Developing Solutions Co., Ltd. (KM Subsidiary Developing) Aurora Home Furniture Co., Ltd. (Aurora Home) Subsidiary Aurora Telecom Co., Ltd. (Aurora Telecom) Associate Huxen Corporation (Huxen) Associate Aurora Development Corp. (Aurora Development) Associate Aurora Leasing Corporation (Aurora Leasing) Other related party Y. T. Chen Sustainable Management Foundation (Y. T. Chen Foundation) Other related party

Other related party

Aurora Interior Design Co., Ltd. (Aurora Interior Design) Other related party

b. Operating revenue

Operating revenue
Type/Name of Related Party
Aurora Leasing
Subsidiary
Associate
Other related party
Investor of significant influence		 2021
$ 356,907
187,397
20,948
7,534
183
$ 572,969		 2020






$ 369,851
126,420
19,931
-
55
$ 516,257

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

233

c. Purchase of goods

Purchase of goods
Type/Name of Related Party
Subsidiary
Other related party
Associate		 2021
$ 59,152
40,997
579
$ 100,728		 2020




$ 46,535
36,860
942
$ 84,337

Purchases from related parties are made by the Company 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
Aurora Leasing
(Continued on the next page)
(Continued from previous page)
Type/Name of Related Party
Aurora Office Automation
Other related party
Associate		 2021
$ 32,363
22,875
2021
21,276
900
475
$ 77,889		 2020
$ 32,326
23,431
2020


21,207
-
574
$ 77,538

(Continued from previous page)

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

e. Operating expenses

parties by the Company.
Operating expenses
Type/Name of Related Party
Investor of significant influence
Associate
Other related party
Subsidiary		 2021
$ 2,130
2,810
821
762
$ 6,523		 2020




$ 2,321
1,412
-
1,194
$ 4,927

Operating expenses represent expenses paid to related parties for advertising and consulting services rendered.

234

f. Receivables from related parties

Accounting Subject
Accounts receivable




Other receivables
Type/Name of Related
Party
Aurora Leasing

AOF
Associate
Subsidiary


Associate

Subsidiary
Other related party

 December 31,
2021
$ 56,599

10,189
831

347

$ 67,966

$ 4,034

2,457

1,521

$ 8,012
 December 31,
2020		 December 31,
2020










$ 63,262
8,640
241
349
$ 72,492
$ 4,076
2,441
1,667
$ 8,184

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.

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

235

Payables to related parties

Accounting Subject
Accounts payable



Other payables
Type/Name of Related
Party
Other related party

Associate
Subsidiary


Aurora Leasing

Subsidiary
Associate
Investor of significant
influence

 December 31,
2021
$ 664

50

20

$ 734

$ 41,133

73
64

11

$ 41,281
 December 31,
2020		 December 31,
2020










$ 827
159

1
$ 987
$ 41,537
54
66

12
$ 41,669
  • g. Acquisition of property, plant, and equipment
Type/Name of Related Party
Subsidiary
Associate		 Price Price
2021
$ 146
55
$ 201		 2020




$ 222
131
$ 353

The transaction prices are determined according to market conditions.

  • h. Lease agreements
Lease agreements
Type/Name of Related Party
Acquisition of right-of-use assets
Aurora Office Automation
Investor of significant influence
Associate		 2021
$ 11,975
2,004
28
$ 14,007		 2020





$ 4,229
46,085
3,842
$ 54,156

236

Accounting Subject Type/Name of Related

Accounting Subject Type/Name of Related Accounting Subject Type/Name of Related
Party

Lease liabilities -
current
Investor of significant
influence
Associate
Subsidiary
Lease liabilities -
non-current
Investor of significant
influence
Subsidiary
Associate
Type/Name of Related Party
Interest expenses
Investor of significant influence
Associate
Subsidiary		 December 31,2021
$ 15,412
12,461

3,976
$ 31,849
$ 9,047
6,021

-
$ 15,068
2021
$ 255
149

44
$ 448		 December 31,2020
$ 15,291
14,507

1,832
$ 31,630
$ 24,458
-
12,444
$ 36,902
2020










$ 163
256

28
$ 447

The Company leased offices from related parties for the years ended December 31, 2021 and 2020, respectively, with the lease terms of 1 to 6 years; the rent is payable on a monthly basis and the terms are not materially different from those of the general clients.

  • i. 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
Subsidiary		 2021
$ 9,175
36
$ 9,211		 2020




$ 4,151

72
$ 4,223

Rental income is as follows:

Rental income is as follows:
Type/Name of Related Party
Other related party
Subsidiary		 2021
$ 4,704
72
$ 4,776		 2020




$ 4,003

72
$ 4,075

237

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

j. Others

Accounting Subject
Refundable deposits



Guarantee deposits
received
Type/Name of Related
Party
Aurora Development

Aurora Holdings
Huxen


Y. T. Chen Foundation

Aurora Interior Design

 December 31,
2021
$ 3,252

2,590

566

$ 6,408

$ 660


100

$ 760
 December 31,
2020		 December 31,
2020










$ 3,252
2,590
566
$ 6,408
$ 660
-
$ 660
  • k. Remuneration to the management
Remuneration to the management
Short-term employee benefits
Retirement benefits		 2021
$ 29,993
926
$ 30,919		 2020




$ 27,717
1,000
$ 28,717

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

28. Pledged Assets

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

for loans:
Property, plant, and equipment
Investment properties		 December 31,2021
$ 266,974

71,018
$ 337,992		 December 31,2020




$ 271,245
71,493
$ 342,738

29. Significant Contingent Liabilities and Unrecognized Contract Commitments

  • a. Unused letters of credit outstanding as of December 31, 2021 amounted to US$3,015 thousand.

  • b. Guarantee notes issued by the Company to financial institutions for short-term and long-term loans as of December 31, 2021 amounted to NT$8,354,600 thousand.

  • c. Guaranteed notes issued by the Company under warranty contracts or for business needs as of December 31, 2021 amounted to NT$28,462 thousand.

238

  • d. Guaranteed notes received by the Company for business operations as of December 31, 2021 totaled NT$2,330 thousand.

  • e. Performance bonds issued by banks for the Company as of December 31, 2021 amounted to NT$10,290 thousand.

  • f. Unrecognized contractual commitments of the Company for purchases of goods as of December 31, 2021 amounted to NT$31,156 thousand.

  • g. Significant contracts of the Company are disclosed as follows:

Type of
Contract		 Category of
Product
Contracting Party		 Contract Duration Contract Content Restrictions
Distribution
Contract
Office
Equipment		 SHARP
CORPORATION		 2021.04.01-2022.03.31
(Automatic extension by one
year upon expiry)		 Sharp photocopiers 1. Exclusive distribution
2. . Non-compete

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

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

The following information is aggregated by the foreign currencies other than the functional currency of the Company and the exchange rates between foreign currencies and the functional currency are disclosed. The significant impact on assets and liabilities recognized in foreign currencies is as follows:

Unit: Foreign currency/NT$ thousand

December 31, 2021
Foreign currencyassets
Non-monetary items
Subsidiaries accounted for
using the equity method
RMB

Foreign currencyliabilities
Monetary items
USD		 Foreign
currencies
$ 1,723,784

2,734		 Exchange Rate
4,344 (RMB:NTD)

27.68 (USD:NTD)		 Carrying
amount
$ 7,340,969
75,822

239

December 31, 2020

December 31, 2020
Foreign currencyassets
Monetary items
USD

Non-monetary items
Subsidiaries accounted for
using the equity method
RMB

Foreign currencyliabilities
Monetary items
USD		 Foreign
currencies
$ 80
1,663,834

829		 Exchange Rate
28.48 (USD:NTD)

4.377 (RMB:NTD)

28.48 (USD:NTD)		 Carrying
amount
$ 2,288
7,104,819
23,652

Realized and unrealized foreign exchange gains and losses that have significant impact on the Company are recognized in other gains and losses. Please refer to Note XXI (II).

32. 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.

  • b. Information on invested companies: Table 5.

  • c. Information on investments in mainland China:

(Continued on the next page)

240

(Continued from previous page

  • 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 6.

  • 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 7.

  • 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 8.

241

Table 1

Aurora Corporation

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 and associates, please refer to Tables 5 and 6.

242

Table 2

Aurora Corporation

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 Reclass ification Purc hase Sa le 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		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 $ -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-
-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-		 $ -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

243

Table 3

Aurora Corporation

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		 Information on Prior Transaction If the
Is Related		 Information 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

244

Table 4

Aurora Corporation

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 (payable).

245

Table 5

Aurora Corporation

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		 Shareholding
(%)
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

246

Table 6

Aurora Corporation

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
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
for the Period
(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

247

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

  1. Direct investment in mainland China.

  2. Investment in mainland China through Aurora (Bermuda) Investment Ltd.

  3. Others.

Note 2. Investment profit (loss) recognized for the period:

  1. Indicate if no investment profit (loss) is recognized as an investee is under preparation.

  2. 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.

  3. 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.

  4. 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.

  5. 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%).

248

Table 7

Aurora Corporation

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 based on the ratio of the balance of notes and accounts receivable (payable) with related parties to the balance of the Company's notes and accounts receivable (payable).

249

Table 8

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 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. For information on shareholders, who declare 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, please refer to MOPS.

250

§ STATEMENTS OF SIGNIFICANT ACCOUNTING SUBJECTS§

ITEM
Statements of Assets, Liabilities and Equity Items
Cash Statement
Statement of Notes Receivable
Statement of Accounts Receivable/Accounts Receivable -
Related Parties
Statement of Other Receivables
Statement of Inventories
Statement of Other Current Assets
Statement of Changes in Investments Accounted for Using
the Equity Method
Statement of Changes in Property, Plant, and Equipment
Statement of Changes in Accumulated Depreciation of
Property, Plant, and Equipment
Statement of Changes in Right-of-use Assets
Statement of Changes in Accumulated Depreciation of
Right-of-use Assets
Statement of Changes in Investment Properties
Statement of Changes in Accumulated Depreciation of
Investment Properties
Statement of Changes in Intangible Assets
Statement of Deferred Income Tax Assets
Statement of Short-term Loans
Statement of Accounts Payable
Statement of Other Payables
Statement of Other Current Liabilities
Statement of Long-term Loans
Statement of Profit or Loss Items
Statement of Operating Revenue
Statement of Operating Costs
Statement of Selling and Marketing Expenses
Statement of General and Administrative Expenses
Statement of Finance Costs
Statement of Employee Benefits and Depreciation and
Amortization Expenses by Function		 NUMBER/INDEX
Note VI
Statement 1
Statement 2
Note VII
Note VIII
Note XIV
Statement 3
Note X
Note X
Note XI
Note XI
Note XII
Note XII
Note XIII
Note XXII
Statement 4
Statement 5
Note XVII
Note XVII
Statement 6
Statement 7
Statement 8
Statement 9
Statement 9
Note XXI
Statement 10

251

Statement 1

Aurora Corporation

Statement of Notes Receivable December 31, 2021 (In Thousands of New Taiwan Dollars)

Item
Company A
Others (Note)
Less: loss allowance		 Summary
payment for goods
〃		 Amount



$ 3,633
70,578
-
$ 74,211

Note: The balance of each item does not exceed 5% of the balance of this account.

252

Statement 2

Aurora Corporation

Statement of Accounts Receivable/Accounts Receivable - Related Parties December 31, 2021

(In Thousands of New Taiwan Dollars)

Item
Non-related party
Others (Note)
Less: loss allowance
Related party
Aurora Leasing Corporation
AOF
Others (Note)		 Summary
payment for goods
payment for goods
〃
〃		 Amount






$ 137,452
3,046
$ 134,406
$ 56,599
10,189
1,178
$ 67,966

Note: The balance of each item does not exceed 5% of the balance of this account.

253

Statement 3

Aurora Corporation

Statement of Changes in Investments Accounted for Using the Equity Method For the Year Ended December 31, 2021

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Name of Investee
Listed companies
Huxen Corporation
Unlisted companies
Aurora (Bermuda)
Investment Ltd.
Aurora Office Automation
Corporation
General Integration
Technology Co., Ltd.
KM Developing Solutions
Co., Ltd.
Aurora Machinery
Equipment (Shanghai)
Co., Ltd.
Ever Young Biodimension
Corporation
Aurora Development
Corp.
Aurora Telecom Co., Ltd.		 Beginningbalance
Number of
Shares (in
Thousands)
Amount
47,011
$ 1,427,127
67,350
7,063,743
82,278
1,076,067
5,465
129,128
7,000
104,947
17,500
41,076
858
4,284
32,498
496,580
13,165

233,504
$ 10,576,456		 Beginningbalance
Number of
Shares (in
Thousands)
Amount
47,011
$ 1,427,127
67,350
7,063,743
82,278
1,076,067
5,465
129,128
7,000
104,947
17,500
41,076
858
4,284
32,498
496,580
13,165

233,504
$ 10,576,456		 Increase(Note 1)
Number of
Shares (in
Thousands)
Amount
-
$ 5,455
-
-
-
68,330
-
-
-
-
-
-
-
-
-
1,837
-

-
$ 75,622		 Increase(Note 1)
Number of
Shares (in
Thousands)
Amount
-
$ 5,455
-
-
-
68,330
-
-
-
-
-
-
-
-
-
1,837
-

-
$ 75,622		 Decrease(Note 2)
Number of
Shares (in
Thousands)
Amount
-
$ 169,238
-
501,520
-
295,304
-
73
-
20,300
-
315
-
-
-
26,974
-

-
$ 1,013,724		 Decrease(Note 2)
Number of
Shares (in
Thousands)
Amount
-
$ 169,238
-
501,520
-
295,304
-
73
-
20,300
-
315
-
-
-
26,974
-

-
$ 1,013,724		 Investment Profit
(Loss)
$ 178,738
743,776
186,769
8,306
24,405
(
5,791 )
30
23,405
(
19,440)
$ 1,140,198		 Deferred
Unrealized
Gains
$ 2,320
-
-
-
-
-
-
-
-
$ 2,320		 Endingbalance Amount
$ 1,444,402
7,305,999
1,035,862
137,361
109,052
34,970
4,314
494,848
214,064
$ 10,780,872		 Market Value/Net Equity Value
(Note 3)
Unit Price
Total
51.3
$ 2,411,643
110.57
7,446,964
25.52
2,303,851
19.71
107,736
15.58
109,052
2
34,970
5.03
4,318
15.23
494,848
6.55

86,236
$ 12,999,618		 Market Value/Net Equity Value
(Note 3)
Unit Price
Total
51.3
$ 2,411,643
110.57
7,446,964
25.52
2,303,851
19.71
107,736
15.58
109,052
2
34,970
5.03
4,318
15.23
494,848
6.55

86,236
$ 12,999,618		 Guarantee or
Pledge
None
None
None
None
None
None
None
None
None		 Remark
Number of
Shares (in
Thousands)
47,011
67,350
82,278
5,465
7,000
17,500
858
32,498
13,165		 Number of
Shares (in
Thousands)
-
-
-
-
-
-
-
-
-		 Number of
Shares (in
Thousands)
-
-
-
-
-
-
-
-
-		 Number of
Shares (in
Thousands)
47,011
67,350
82,278
5,465
7,000
17,500
858
32,498
13,165		 Percentage of
Ownership (%)
32.53
88.04
91.13
55
70
70
26
46.67
30.4		 Unit Price
51.3
110.57
25.52
19.71
15.58
2
5.03
15.23
6.55












－
－
－
－
－
－
－
－
－

Note 1. The increase of Huxen Corporation and Aurora Development Corp. for the current period is due to the recognition of changes in equity of the investees in proportion to their shareholdings. The increase of Aurora Office Automation Corporation for the current period is due to the distribution of the dividends of NT$68,330 thousand, which are cash dividends deemed to be treasury stocks distributed by the Company to Aurora Office Automation Corporation.

Note 2. The decrease of Huxen Corporation for the current period is due to cash dividends received from investees of NT$169,238 thousand; the decrease of Aurora (Bermuda) Investment Ltd. for the current period I due to the cumulative translation adjustment of long-term foreign-currency equity investments of $58,300 thousand and the receipt of cash dividends from investees of NT$443,220 thousand; the decrease of General Integration Technology Co., Ltd. for the current period is due to the recognition of changes in equity in investees based on the percentage of ownership; the decrease of Aurora Machinery Equipment (Shanghai) Co., Ltd. for the current period is due to the cumulative translation adjustment of long-term foreign-currency equity investments; the decrease in KM Developing Solutions Co., Ltd. and Aurora Development Corp. for the current period is due to the receipt of cash dividends from investees; the decrease of Aurora Office Automation Corporation for the current period is due to the receipt of cash dividends of NT$287,972 thousand from the investee and the recognition of changes in equity in proportion to the investee's shareholding of NT$7,332 thousand.

Note 3. Market price refers to the closing price on December 31, 2021. Net equity value is mainly based on the financial statements of the investee and the Company's shareholding percentage.

254

Statement 4

Aurora Corporation

Statement of Short-term Loans December 31, 2021 (In Thousands of New Taiwan Dollars)

Type of Loans
Credit loans
Loans for material purchase		 Description
Sumitomo Mitsui Banking
Corporation
First Commercial Bank
Cathay United Bank
Bank of China
Bank of Communications
Standard Chartered Bank
Taipei Fubon Bank
Taipei Fubon Bank
HSBC
Taishin International Bank
Bank of Taiwan		 Endingbalance
$ 900,000
100,000
300,000
400,000
250,000
300,000
200,000
100,000

500,000
3,050,000
26,449

49,373

75,822
$ 3,125,822		 Contract Period
(YYYY/MM/DD)
2021/11/18～2022/02/16
2021/02/10～2022/01/07
2021/12/15～2022/01/14
2021/12/17～2022/01/03
2021/12/22～2022/01/12
2021/12/29～2022/01/27
2021/10/22～2022/01/21
2021/11/30～2022/02/25
2021/11/18～2022/02/18
2021/09/30～2022/07/02
2021/11/09～2022/06/07		 Interest Rate
0.69%
0.70%
0.73%
0.69%
0.72%
0.66%
0.73%
0.73%
0.68%
0.64%～0.68%
0.69%～0.76%		 Line of credit
900,000
250,000
300,000
500,000
250,000
550,000
500,000
500,000
554,600
250,000
500,000		 Pledge orGuarantee





Promissory note
〃
〃
〃
〃
〃
〃
〃
〃
Promissory note
〃

255

Statement 5

Statement of Accounts Payable December 31, 2021 (In Thousands of New Taiwan Dollars)

Aurora Corporation

Item
Non-related party
Others (Note)
Related party
Others (Note)		 Summary
payment for goods
payment for goods		 Amount


$ 341,052
734
$ 341,786

Note: The balance of each item does not exceed 5% of the balance of this account.

256

Statement 6

Aurora Corporation

Statement of Long-term Loans December 31, 2021 (In Thousands of New Taiwan Dollars)

Creditor
Yuanta Commercial Bank
Mega International
Commercial Bank		 Summary
Credit loans (interest payable on a monthly basis, principal
repayable in one lump sum on maturity)
Credit loans (interest payable on a monthly basis, principal
repayable in one lump sum on maturity)		 Borrowing Amount
$ 500,000

150,000
$ 650,000		 Contract Period
(YYYY/MM/DD)
2021/11/15～2023/05/14
2021/12/29～2023/09/21		 Interest Rate (%)
0.71%
0.825%		 Pledge or Guarantee


Promissory note
"

257

Statement 7

Aurora Corporation

Statement of Net Operating Revenue For the Year Ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Item
MFPs
System furniture
Rental and revenue from printing
service
Other commodities
Supplies		 Quantity (Set)
219,681		 Amount



$ 679,743
1,254,182
726,965
53,329
570,910
$ 3,285,129

258

Statement 8

Aurora Corporation

Statement of Operating Costs For the Year Ended December 31, 2021 (In Thousands of New Taiwan Dollars)

Item
Cost of self-produced goods sold
Manufacturing overheads
Direct raw materials consumed
Inventory at beginning of period
Purchase
Others
Less: inventory at end of period
Total direct raw materials consumed
Director labor
Manufacturing overheads
Manufacturing costs
Add: work-in-process at beginning of period
Less: work-in-process at end of period
Acquired cost of sales
Add: finished products at beginning of period
Purchase
Less: finished products at end of period
Self-use, leased assets, and other expenses
Cost of goods sold
Rental and service costs
Depreciation expenses - leased assets
Operating costs		 Amount
$ 16,301
219,478
10,257
(
23,723)
222,313
25,022

55,761
303,096
7,824
(
6,538)

304,382
479,421
1,614,580
(
604,120 )
(
128,085)
1,361,796
1,666,178
2,729

130,016
$ 1,798,923

259

Statement 9

Aurora Corporation

Statement of Operating Expenses For the Year Ended December 31, 2021 (In Thousands of New Taiwan Dollars)

Item
Salary expenses
Depreciation expenses
Insurance expenses
Others (Note)		 Amount
Selling and marketing
expenses
$ 451,518
40,421
49,585
136,259
$ 677,783		 General and
administrative
expenses




$ 226,629
66,590
21,357
78,733
$ 393,309

Note: The balance of each item does not exceed 5% of the balance of this account.

260

Statement 10

Aurora Corporation

Statement of Employee Benefits and Depreciation and Amortization Expenses by Function For the Years Ended December 31, 2021 and 2020

(In Thousands of New Taiwan Dollars)

Employee benefits (Note)
Salaries
Labor and health insurance
Pensions
Remuneration Paid to
Directors
Others
Depreciation
Amortization		 2021 2021 Total
$ 602,157
73,404
36,960
10,861
133,843
$ 857,225
$ 247,177
$ 6,507		 2020 2020
Operation Costs

$ 30,086
4,880
1,593
-

6,769
$ 43,328
$ 139,691
$ 186		 Operation Expenses
$ 572,071
68,524
35,367
10,861

127,074
$ 813,897
$ 107,011
$ 6,321
Non-operation
Expenses
$ -
-
-
-

-
$ -
$ 475
$ -		 Operation Costs

$ 30,058
4,259
1,534
-

5,379
$ 41,230
$ 142,568
$ 215		 Operation Expenses
$ 574,294
65,054
37,235
10,861

126,015
$ 813,459
$ 104,206
$ 7,275
Non-operation
Expenses
$ -
-
-
-

-
$ -
$ 474
$ -		 Total
































$ 604,352
69,313
38,769
10,861
131,394
$ 854,689
$ 247,248
$ 7,490

  • Note 1. As of December 31, 2021 and 2020, the number of employees of the Company was 1,034 and 1,053, respectively. The number of directors who did not concurrently serve as employees was 6 and, respectively. Note 2. For companies whose shares are listed on the TWSE/TPEx, the following information should also be disclosed:

  • (1) The average employee benefits expense for the current year is NT$823 thousand （ "Total employee benefit expenses for the current year - Total Directors' remuneration" / "Number of employees for the current year - Number of Directors who do not concurrently serve as employees" ）

The average employee benefits expense for the previous year is NT$806 thousand ((Total employee benefit expenses for the previous year - Total Directors' remuneration) / (Number of employees for the previous year - Number of Directors who do not concurrently serve as employees))

  • (2) The average employee salary expense for the current year is NT$586 thousand (Total employee salary expenses for the current year / (Number of employees for the current year - Number of Directors who do not concurrently serve as employees))

    • The average employee salary expense for the previous year was NT$577 thousand (Total salary expense for the previous year / (Number of employees in the previous year - Number of Directors who do not concurrently serve as employees)).

  • (3) Change in average employee salary expense is 1.6% ((Average employee salary expense of the current year - Average employee salary expense of the previous year) / Average employee salary expense of the previous year).

  • (4) The Company has established the Audit Committee; therefore, no supervisors were hired and there is no remuneration for supervisors.

  • Note 3. The Company's remuneration policy:

  • (1) Directors and supervisors: They are all remunerated in accordance with the relevant provisions of the Company's Articles of Incorporation. Their remuneration is approved based on the principle of fairness and impartiality, as well as the performance of each member. The remuneration is determined by the resolutions of the Board of Directors.

  • (2) Managerial officers: The payment standard and combination are divided into fixed and variable remuneration. Fixed remuneration is ratified based on the responsibility of the position and company-wide operational goals, while variable remuneration is paid based on the achieved operating performance and contribution.

(Continued on the next page)

261

(Continued from previous page)

  • (3) Employees: Their salary consists of fixed and variable salary. Fixed salary is determined based on the value created by the job positions, their level of professionalism and complexity, and their experience in their job positions, etc., with reference to the salary level of the industry.

The variable salary includes year-end bonuses, appraisal bonuses, and profits distributed to the employees, which are allocated by the Board of Directors based on the Company's annual profitability.

  • (4) Employee salary adjustment: In accordance with the Company's performance appraisal method, the salary adjustment range is determined by factors such as the assessment indicators of the employees' job responsibilities and the degree of accomplishment of the work plan every year. The direct supervisors of the employees are tasked to perform comprehensive assessment to decide the range of salary adjustment while considering the Company's operating environment.

Relationship between Operating Performance and Remuneration

Remuneration of the Company is based on the results of operating performance to align individual performances with the overall operating performance.

262

  • f. The Company and its related companies had financial turnover difficulties in the most recent year and as of the date of publication of the annual report, the impact on the financial situation of the Company: None.

263

7. Review of Financial Conditions and Operating Results and Risk Matters

a. Financial Situation:

Comparative Analysis of Financial Position

Unit: NT$ thousand

Year Increase(Decrease) Increase(Decrease)
Item Year 2020 Year 2021 Amount ％
Current Assets 10,895,709 10,657,461
(238,248)		 (2.19)
Property, plant,and equipment 2,315,741
2,543,920
228,179		 9.85
Intangible assets 177,009 195,088
18,079		 10.21
Other Assets 4,674,450
4,854,625
180,175
3.85
Total Assets 18,062,909 **18,251,094 **
188,185		 **1.04 **
Current Liabilities 6,619,633
7,000,463
380,830
5.75
Long-term Loans 1,340,000
1,130,000
(210,000)		 (15.67)
Other Liabilities 1,179,129 1,193,997
14,868
1.26
Total Liabilities **9,138,762 **
9,324,460		 185,698 2.03
Capital Stock 2,362,025
2,362,025
0
0.00
Capital surplus 1,941,799 1,939,269 (2,530) (0.13)
Retained earnings 4,087,994
4,112,289		 24,295
0.59
Other Equity 532,329 513,051
(19,278)		 (3.62)
Total Equity 8,924,147
**8,926,634 **
**2,487 **
0.03

  • Analysis of changes in percentage increase or decrease exceeding 20%: None.

  • Effect of changes in financial position: There is no significant effect on the financial position.

  • Future response plan: Not applicable.

264

b. Financial Performance:

Comparative Analysis of Financial Performance

Unit: NT$ thousand

Year Increase(decrease) Increase(decrease)

Item Year 2020 Year 2021 Amount ％
Total Operating Revenue
decrease: Return of sold goods
Sales Allowance		 12,985,917
25,470
9,473
13,607,432

21,270

8,905
621,515

(4,200)

(568)
4.79

(16.49)
(6.00)
Net Operating Revenue
OperatingCosts		 12,950,974
7,152,644
13,577,257

7,567,572
626,283

414,928
4.84

5.80
Gross Profit
Realized(unrealized)salesprofit		 5,798,330

76,297
6,009,685

29,006
211,355

(47,291)
3.65
(61.98)
Net Gross Profit
Operating Expenses
Operating Income
Non-operating Income and
Expenses		 5,874,627
4,357,247
1,517,380
508,048
6,038,691

4,569,998

1,468,693

551,706
164,064

212,751

(48,687)

43,658
2.79

4.88

(3.21)

8.59
Income before Tax
Income Tax Expense		 2,025,428
466,693
2,020,399

494,168
(5,029)

27,475
(0.25)

5.89
Net Income 1,558,735
1,526,231
(32,504)		 (2.09)

  • Analysis of changes in the percentage of increase or decrease of more

  • than 20%: Decrease in realized sales profit: The increase in unrealized gain was mainly due to the increase in sales amount for the year.

  • The expected sales volume and its basis, the impact on the Company's future financial operations and the corresponding plan: Please refer to the "Letter to Shareholders".

265

c. Cash Flow:

  • 1) Cash Flow Analysis for the Current Year
Unit: NT$ thousand Unit: NT$ thousand
Increase
(decrease) in
amount
Year
Item		 Change, by
Percentage

Year 2020		 Year 2021
Cash and Cash Equivalents
at Beginningof Year		 5,764,661
5,444,125
(320,536)
(5.56)
Net Cash Flows Generated
from OperatingActivities		 1,875,427
1,573,927
(301,500)
(16.08)
Net Cash Flows Used in
InvestingActivities		 (409,651)
(2,588,333)
(2,178,682)
531.84
Net Cash Flows Used in
FinancingActivities		 (1,907,932)
(1,650,283)
257,649
(13.50)
Effect of Exchange Rate
Changes		 121,620
(85,583)
(207,203)
(170.37)
Cash and Cash Equivalents
at End of Year		 5,444,125
2,693,853
(2,750,272)
(50.52)

The increase in net cash outflows from investing activities was mainly due to the increase in bank time deposits with original maturities of more than 3 months.

  • 2) Improvement plan and liquidity analysis for illiquidity: there is no illiquidity situation of cash.

  • 3) Cash liquidity analysis for future years

Remedies for Remedies for
Cash at
Beginning of
Year		 Net Cash Flows
Annual Cash Cash Surplus insufficient cash
from Operating
Flow (Deficit) Investment Financing
Activities
Plan plan
2,693,853
1,190,783
(994,810)
2,889,826		 - ─

d. Effect of significant capital expenditures on financial operations in the most recent year:

  • 1) The operation of significant capital expenditures in the last two years and the source of funds and the nature of capital expenditures to be invested in the next five years: None.

  • 2) Expected Potential Productive Gains:

    • a) Estimated increase in production and sales volume, value and gross profit: not applicable.

    • b) Other benefit statement: Not applicable.

  • e. The most recent annual reinvestment policy, the main reasons for its profit or loss, the improvement plan and the investment plan for the next year:

  • 1) The Company's reinvestment policy:

266

Aurora mainly reinvests in businesses which closely correlate to Aurora's major lines of business or high-performing businesses with promising prospects. The company's overall investment evaluation, implementation and control are in accordance with the company's the "Procedures for Acquisition or Disposal of Assets"

  • 2) The investment income recognized by the Company under the equity method in 2021 was NT$235,655 thousand, which was mainly due to the recognition of the profit of the invested company.

  • 3) Improvement plan and investment plan for the next year:

The Company will continue to focus on its business operations and has no investment plans for the coming year, except for capital expenditures to expand the scale of operations.

f. Analysis and assessment of risk matters for the most recent year and as of the date of publication of the annual report:

  • 1) The impact of interest rate, exchange rate changes and inflation on the company's profit and loss and future countermeasures

  • a) Changes in interest rates: Currently, the domestic interest rate level is kept low, and the interest rate on the Company's borrowings is kept low relative to the Company's borrowing rate. Therefore, the decrease in interest expense is beneficial to the Company's profit.

  • b) Exchange rate movements: The Company's foreign currency liabilities are mainly denominated in United States dollars. It will closely observe the exchange rate market dynamics and take appropriate hedging operations.

  • c) Inflation: The Company’s sales are mainly in the domestic market. The Accounting Office predicts that the economic growth rate in 2022 will be about 4.42%. The price situation is expected to be stable. Inflationary pressures should be effectively controlled without significantly affecting the Company's profit or loss.

  • 2) Policies for engaging in high-risk, high-profile investments, lending of funds to others, endorsement guarantees and derivative commodity transactions, main reasons for profits or losses and future response measures:

  • a) The Company does not engage in high-risk, high-risk investment.

  • b) The Company has the "Procedure for Lending Funds to Other Parties and or Guarante", the "Procedures for Endorsement and Guarantee" and the "Procedures for Acquisition or Disposal of Assets", which are actually handled in accordance with the regulations when performing such operations, and the risk control and internal audit are also conducted.

267

  • 3) Future R&D plans and estimated R&D expenses: please refer to [5. Operation Overview].

  • 4) The impact of important domestic and foreign policies and legal changes on the company's financial business and countermeasures:

The financial operations of Aurora were not affected by important policies adopted and changes in the legal environment at home and abroad.

  • 5) The impact of technological changes (including information security risks) and industrial changes on the company's financial business and countermeasures:

The financial operations of Aurora were not affected by any developments in science and technology.

  • 6) The impact of corporate image change on corporate crisis management and countermeasures:

The financial operations of Aurora were not affected by any changes in the corporate image.

  • 7) Expected benefits, possible risks and countermeasures of M&A:

Aurora did not engage in any mergers and acquisitions.

  • 8) Expected Benefits, Possible Risks and Countermeasures for Plant Expansion:

Aurora did not engage in any plant expansion.

  • 9) Risks and countermeasures faced by centralized purchases or sales:

The company sells KONICA MINOLTA and SHARP company's office machine products to achieve economies of scale, resulting in the company's purchase amount of about 28% of the company's total purchase; the two parties also have OEM and distribution contracts, so there is little impact on the company's risks.

  • 10) The impact, risks and countermeasures on the Company of a substantial transfer or exchange of equity by a director or a major shareholder holding more than ten percent:

  • No major quantity of shares belonging to a director or shareholder holding greater than a 10% stake in Aurora was transferred or otherwise changed hands.

  • 11) Impact, risks and countermeasures of changes in operating rights on the Company:

There was no change in governance personnel or top management of Aurora.

  • 12) Significant litigation, non-litigation or administrative contentious events, the results of which may have a material effect on shareholders' equity or the price of securities: None.

  • 13) Other important risks and countermeasures: None.

268

  • g. Other important matters: None.

269

8. Special Notes

a. Information on Affiliates

  • 1) Consolidated Business Report of Affiliates

  • a) Relationship enterprise organization chart

Data Date: December 31, 2021

Aurora Corporation

==> picture [489 x 405] intentionally omitted <==

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

91.13% 88.04% 70% 70% 55% 26%
Aurora Office AURORA KM Aurora General Ever Young
Automation (BERMUDA) Developing Machinery Integration Biodimension
Corporation INVESTMENT Solutions Equipment Technology Corporation
LTD. Co., Ltd. (Shanghai) Co., Ltd.
Co., Ltd.
100% 30% 25%
Aurora (China) Investment Co., Ltd.
100% 100% 66.67%
Aurora Office Aurora (China) 33.33% Aurora (Jiangsu)
Equipment Co., Co., Ltd. Enterprise
Ltd. Shanghai Development
Co., Ltd.
100% 70% 100% 70% Aurora
Aurora Office Aurora Cloud Sidiz Furniture (Shanghai)
Equipment Co., (Shanghai) Co., Ltd. E-Commerce
Ltd. Shanghai Technology Co., Ltd.
Office Co., Ltd.
automation
product sales
Co., Ltd.
----- End of picture text -----

270

b) Basic information of all related enterprises

December 31, 2021

Unit: NT$ thousand

Date of Actual paid-in
Name of Company
Address		 Main Business or Products
Incorporation capital
Aurora Office Automation
Corporation		 1975.11.07 13F, No. 2, Sec. 5, Xinyi
Rd.,Xinyi Dist.,Taipei City		 NT$902,902
thousand		 Sale and maintenance of
MFPs
AURORA(BERMUDA)
INVESTMENT LTD.		 1995.04.28 Cedar House, 41 Cedar
Avenue, Hamilton HM
12,Bermuda		 USD 76,500
thousand		 Investment holding
Aurora (China)
Investment Co., Ltd.		 1999.04.23 Floor 36-37, No. 99 Insert a
tag (Alt+1), Fucheng Road,
Pudong New Area, Shanghai,
China
USD 76,500
thousand		 Investment holding
Aurora Office Equipment
Co., Ltd. Shanghai		 1993.08.31 No. 388, Jiaxin Road, Malu
Town, Jiading District,
Shanghai,China		 USD 33,000
thousand		 Manufacturing and sale of
computers, MFPs, and
communications equipment
Aurora (China) Co., Ltd. 2000.01.25 No. 369 Shenxia Road, Jiading
District,Shanghai,China		 USD 30,000
thousand		 Manufacturing and sale of
office furniture
Aurora Office Automation
Sales Co., Ltd. Shanghai
Co.,Ltd.		 2003.11.03 No. 399 Hujiafu Road, Jiading
District, Shanghai, China		 RMB 350,000
thousand		 Sales, leasing and agency
sales of Aurora branded
merchandise
Aurora Cloud (Shanghai)
Technology Co., Ltd.		 2016.11.11 Room 294H, Building 2, No.
750, Linyuan Street, Zhujing
Town, Jinshan District,
Shanghai,China		 RMB 10,000
thousand		 Sale of printing and office
equipment and furniture and
consulting service
Sidiz Furniture Co., Ltd. 2012.08.20 No. 388, Jiaxin Road, Malu
Town, Jiading District,
Shanghai,China		 RMB 50,000
thousand		 Production and sale of
furniture
General Integration
TechnologyCo.,Ltd.		 1992.08.11 No. 343, Chongqing Rd.,
Xitun Dist.,TaichungCity		 NT$ 99,360
thousand		 Sale and maintenance of
MFPs
KM Developing Solutions
Co., Ltd.		 2016.04.01 16F, No. 2, Sec. 5, Xinyi
Rd., Xinyi Dist., Taipei City		 NT$100,000
thousand		 Wholesale and retail of
information software,
computers, and office
equipment
Ever Young Biodimension
Corporation		 2016.11.17 No. 343, Chongqing Rd.,
Xitun Dist.,TaichungCity		 NT$ 33,000
thousand		 Wholesale of precision
instruments
Aurora Machinery
Equipment (Shanghai) Co.,
Ltd.
2018.08.03		 Room 522, No. 1, Keelung
Road, China (Shanghai) Pilot
Free Trade Zone		 RMB 25,000
thousand		 Wholesale of mechanical
and electronic equipment,
internet communication
equipment, and computer
software and hardware
Aurora (Jiangsu)
Enterprise Development
Co., Ltd.		 2019.05.16 North of Bihua Road and
west of Jindu Road, Nantong
High-tech Industrial
Development Zone		 RMB 300,000
thousand		 Reinvestment and property
lease
Aurora (Shanghai)
E-Commerce Co., Ltd.		 2015.12.16 Room 299A, Building 2, No.
750, Linyuan Street, Zhujing
Town, Jinshan District,
Shanghai		 RMB 5,000
thousand		 E-platform

c) It is presumed that there is control over the same shareholder information as the affiliated person: None.

  • d) The industry covered by the overall relationship enterprise's business: providing complete services for the trading and manufacturing industry.

  • e) Information on the directors, supervisors and general manager of each related enterprise:

271

December 31, 2021 Unit: NT$ thousand; shares; %

Shareholding Shareholding
Name of Company Job Title Name or Representative NumberofShares Shareholdingratio
Aurora Office Automation
Corporation		 Chairman
Supervisor
President		 Representative of Aurora
Corporation:
Chen Zhensheng
Chen Chen-Mei
Lin Chin-Pao		 82,277,763
91.13%
AURORA
(BERMUDA)
INVESTMENT LTD.		 Chairman
Director
Director		 Yuan Hui-Hua
Chen Yung-tai
Wu Chun		 USD 67,350
88.04%
Aurora (China) Investment
Co., Ltd.
Chairman
Director
Director
Supervisor		 Yuan Hui-Hua
Chen Yung-tai
Wu Chun
Ma Chih-Hsien		 USD 76,500
100.00%
Aurora Office Equipment
Co., Ltd. Shanghai
Ltd. Shanghai		 Chairman
Director
Director
Supervisor		 Yuan Hui-Hua
Chen Yung-tai
Wu Chun
Ma Chih-Hsien		 USD 33,000
100.00%
Aurora (China) Co., Ltd. Chairman
Director
Director
Supervisor		 Yuan Hui-Hua
Chen Yung-tai
Chou Chi-Cheng
Ma Chih-Hsien		 USD 30,000
100.00%
Aurora Office Equipment
Co., Ltd. Shanghai
Office automation product
sales Co., Ltd.		 Chairman
Director
Director
Supervisor		 Yuan Hui-Hua
Chen Yung-tai
Chou Chi-Cheng
Wu Chun		 RMB 350,000
100.00%
Aurora Cloud (Shanghai)
Technology Co., Ltd.		 Chairman
Director
Director
Supervisor		 Wu Chun
Yuan Hui-Hua
Chou Ming-Chung
Ma Chih-Hsien		 RMB 10,000
70.00%
Sidiz Furniture Co., Ltd. Chairman
Director
Director
Supervisor		 Lo Wan-Jen
Yuan Hui-Hua
Chou Chi-Cheng
Ma Chih-Hsien		 RMB 50,000
100.00%
Aurora (Jiangsu) Enterprise
Development Co., Ltd.		 Chairman
Director
Director
Supervisor		 Yuan Hui-Hua
Chou Chi-Cheng
Lo Wan-Jen
Wu Jun		 RMB 300,000
100.00%
General Integration
Technology Co., Ltd.		 Chairman
Director
Director
Supervisor		 Chi Chung-Nan
Representative of Aurora
Corporation:
Yuan Hui-Hua
Representative of Aurora
Corporation:
Chen Zhensheng
Chen Li-Chen		 5,464,800
55.00%
KM Developing Solutions
Co., Ltd.		 Chairman
Director
Director
Supervisor		 Representative of Aurora
Corporation: Ma Chih-Hsien
Representative of Aurora
Corporation:Yuan Hui-Hua
Japanese Company Konica
MINOLTA,
Inc Representative: Kazuyuki
Tsukamoto
Chen Cheng-Sen		 7,000,000
70.00%

272

Shareholding Shareholding
Name of Company Job Title Name or Representative NumberofShares Shareholdingratio
Ever Young Biodimension
Corporation		 Chairman
Director
Director
Director
Director
Director
Director
Supervisor
Supervisor		 Yang Li-Hui
Representative of Aurora
Corporation: Yuan
Yanhua
Representative of Aurora
Corporation: Chen
Zhensheng
Representative of General
Integration Technology
Co., Ltd. : Ji Chongnan
Representative of General
Integration Technology
Co., Ltd. : Zhang Min
male Nan
Fang Hsin-Yuan
Wang Hsu-Wen
Chen Li-Chen
Chen Yi-Wen		 1,683,000
51.00%
Aurora Machinery
Equipment (Shanghai) Co.,
Ltd.		 Chairman
Director
Director
Supervisor		 Chi Chung-Nan
Yuan Hui-Hua
Chou Chi-Cheng
MaChih-Hsien		 RMB 25,000
thousand

100.00%
Aurora (Shanghai)
E-Commerce Co., Ltd.		 Chairman
Supervisor		 Yuan Hui-Hua
ChenChi		 RMB 5,000
thousand

70.00%

f) Operational overview of each affiliated company

December 31, 2021

December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021 December 31, 2021
Unit: NT$ thousand
Earnings

Profit or
Name of Total Total Net Operating Operating Per Share
Capital
Loss
Company Assets Liabilities
Worth		 Revenue Profit (NT$)
(after tax)
(after tax)
AURORA
2,328,350		 11,133,452 2,667,759 8,465,693
9,236,222
806,463
810,020
10.59
(BERMUDA)
INVESTMENT
LTD.
Aurora Office 902,902 3,201,873
898,002		 2,303,871
824,968
162,061
281,230
3.11
Automation
Corporation
General 99,360
300,166
104,282
195,884
142,174
405
14,946
1.50
Integration
Technology
Co.,Ltd.
KM 100,000
211,429
55,640
155,789
286,684
42,980
34,864
3.49
Developing

273

Earnings

Profit or
Name of Total Total Net Operating Operating Per Share
Capital
Loss
Company Assets Liabilities
Worth		 Revenue Profit (NT$)
(after tax)
(after tax)
Solutions Co.,
Ltd.
Ever Young 33,000
24,435
7,829
16,606
15,456
(7,883)
115
0.03
Biodimension
Corporation
Aurora
112,549
68,226
18,276
49,950
48,051
(9,733)
(8,273)
(0.33)
Machinery
Equipment
(Shanghai) Co.,
Ltd.

Note: AURORA (BERMUDA) INVESTMENT LTD. A summary of the disclosed operations is included in the Consolidated Financial Statements. The subsidiaries are as follows:

Aurora (China) Investment Co., Ltd. and its subsidiaries;

  • (1) Aurora (China) Co., Ltd.

  • (2) Aurora Office Equipment Co., Ltd. Shanghai

  • (3) Aurora (Jiangsu) Enterprise Development Co., Ltd.

  • (4) Aurora Office Automation Sales Co., Ltd. Shanghai

  • (5) Aurora Cloud (Shanghai) Technology Co., Ltd.

  • (6) Sidiz Furniture Co., Ltd.

  • (7) Aurora (Shanghai) E-Commerce Co., Ltd.

274

  • 2) Consolidated Financial Statements of Affiliates

Declaration of Consolidated Financial Statements of Affiliates

In the year of 2021 (from January 1st to December 31st, 2021), according to the "Standards for the Preparation of Related Business Consolidated Financial Statements and Related Business Reports", companies that should be included in the preparation of related business consolidated financial statements and According to IFRS 10, the companies that should be included in the preparation of the consolidated financial report of the parent and subsidiary are the same, and the relevant information that should be disclosed in the consolidated financial statement of the related enterprise has been disclosed in the previous consolidated financial report of the parent and subsidiary, and will not be prepared separately Consolidated financial statements of related companies.

Sincerely,

Company name: Aurora Corporation

Person in charge: Yuan Hui-hua

March 16, 2022

  • 3) Related enterprise report: None.

275

  • b. As of the date of publication of the latest annual and annual reports, the status of the handling of private placement securities: None.

  • c. As of the printing date of the latest annual and annual reports, the subsidiary held or disposed of the company's shares:

Unit: NT$ thousand; shares; %

Shareholding Amount Shares Held and
Makin of
Name of
 Paid-in
 Source percentage Date of and Amount and Investment
 Amount Up to the g
Endorsements/
 Loaning of
of of the Acquisition or
Number		 Number of Shares Date of Pledge Funds to
Subsidiary Capital Capital company
Disposal
of Shares		 Disposed of Income Publication of the Guarantees to
 Subsidiary

(%)		 Acquired Annual Report Subsidiary
Aurora
Office
Automation
Corporation		 NT$ 902,902
thousand		 Private
capital		 91.13% As of the date
of publication
of the Annual
Report		 - - - 12,496,797 shares
1,135,959		 - - -

  • d. Other necessary supplementary notes: None.

  • e. Events that have a significant impact on shareholders' equity or securities prices as specified in Subparagraph 2, Paragraph 3, Article 36 of the Securities and Exchange Act occurred in the most recent year and up to the date of publication of the annual report: None.

276

Aurora Corporation

Chairman of the Board:

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