Aurora - Audit Report / Information 2021

Stock Code: 2373

Aurora Corporation

Parent Company Only Financial Statements and Independent Auditors' Report

For the Years Ended December 31, 2021 and 2020

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

§Table of Contents§

Item 1. Cover Page 2. Table of Contents 3. Independent Auditors' Report 4. Parent Company Only Balance Sheets 5. Parent Company Only Statements of Comprehensive Income 6. Parent Company Only Statements of Changes in Equity 7. Parent Company Only Statements of Cash Flows 8. Notes to Parent Company Only Financial Statements a. Company History b. Date of Authorization for Issuance of the Parent Company Only Financial Statements and Procedures for Authorization c. Application of New and Amended Standards and Interpretations d. Summary of Significant Accounting Policies e. Primary Sources of Uncertainties in Material Accounting Judgments, Estimates, and Assumptions f. Details of Significant Accounts g. Related Party Transactions h. Pledged Assets i. Significant Contingent Liabilities and Unrecognized Contract Commitments j. Significant Disaster Loss k. Significant Events after the Balance Sheet Date l. Others m. Supplementary Disclosures 1) Information on Significant Transactions 2) Information on Invested Companies 3) Information on Investments in Mainland China 4) Information on Major Shareholders n. Segment Information 9. Statements of Significant Accounting Subjects	Page 1 2 3-5 6 7-8 9 10-11 12 12 12-14 14-22 22 22-53 53-58 58 58-59 59 59-60 60 60 60-61 61 - 71-82	Number of Notes to Financial Statements
		- - - - - - - I II III IV V VI~XXVI XXVII XXVIII XXIX - XXX XXXI XXXII XXXII XXXII XXXII - -

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.

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:

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

Conclude on the appropriateness of the management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Aurora Corporation'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.
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.
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

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

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

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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

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)

	Retained earnings	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	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

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 )

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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.

General Manager: Chou Ming-Chung

Chairman: Yuan Hui-Hua

Principal Accounting Officer: Lin Ya-Ling

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)

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)

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.

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.

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.

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.

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

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.

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.

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.

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.

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

(Continued from previous page)

December 31, 2021 December 31, 2020

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

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

(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.

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.

Huxen Corporation

Huxen Corporation
Current Assets Non-current assets Current Liabilities Non-current liabilities Equity The Company's shareholding ratio Interests of the Company Unrealized gains (losses) on transactions with 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 32.53% December 31,2021 $ 1,374,673 ( 90,038 ) 159,767 $ 1,444,402 2021 $ 1,415,003 $ 549,456 16,770 $ 566,226 $ 169,238	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

Information on individually insignificant associates is summarized below: 2021 The Company's share of: Net income $ 3,965 Other comprehensive income 1,837 Total comprehensive income $ 5,802	Information on individually insignificant associates is summarized below: 2021 The Company's share of: Net income $ 3,965 Other comprehensive income 1,837 Total comprehensive income $ 5,802	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:

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

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

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.

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)

(Continued from previous page)

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)

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

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

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.

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.

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)

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(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%

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

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.

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.

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)

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.

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)

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

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

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)

(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

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.

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.

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.

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

December 31, 2020

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
$	$
$	$

		$ 3,060,759 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

(Continued from previous page)

Related Party

KM Developing Solutions Co., Ltd. (KM Developing)

Aurora Home Furniture Co., Ltd. (Aurora Home)

Aurora Telecom Co., Ltd. (Aurora Telecom) Huxen Corporation (Huxen)

Aurora Development Corp. (Aurora Development)

Aurora Leasing Corporation (Aurora Leasing)

Relationship with the Company

Subsidiary

Subsidiary Associate Associate Associate Other related party

Y. T. Chen Sustainable Management Foundation (Y.

T. Chen Foundation)

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).

c. Purchase of goods

payments collected within 1~4 month(s). 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)	2021 $ 32,363 22,875	2020
		$ 32,326 23,431

(Continued from previous page)

Type/Name of Related Party Aurora Office Automation Other related party Associate		2021 21,276 900 475 $ 77,889		2020
				21,207 - 574 $ 77,538

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.

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.

Payables to related parties

s 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
				$ 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

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

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.

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

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)

(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.

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.

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

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

Table 4

Aurora Corporation

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).

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

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

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

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

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

Indicate if no investment profit (loss) is recognized as an investee is under preparation.
Indicate if investment profit (loss) is recognized on the following basis:
- (1) Financial statements audited by international accounting firms cooperating with accounting firms in the Republic of China.
- (2) Financial statements audited by the parent company's CPAs in Taiwan.
- (3) Others.
Note 3. The Company invested in Aurora (China) Investment Co., Ltd. directly through Aurora (Bermuda) Investment Ltd. (with 88.04% equity held by the Company) established in Bermuda. Aurora (China) Investment Co., Ltd. then invested in Aurora (Jiang Su) Enterprise Development Co., Ltd., Aurora Office Equipment Co., Ltd. Shanghai, and Aurora (China) Co., Ltd. Then, Aurora (China) Co., Ltd. invested in Aurora Office Automation Sales Co., Ltd. Shanghai, Aurora Home Furniture Co., Ltd., Aurora (Shanghai) Cloud Technology Co., Ltd., and Aurora (Shanghai) Electronic Commerce Co., Ltd. Then, Aurora Office Automation Sales Co., Ltd. Shanghai invested in Chongqing Gonggangzhihui Additive Manufacturing Technology Research Institute Co., Ltd.
Note 4. Based on the prevailing exchange rate approved by the Investment Commission, Ministry of Economic Affairs, the accumulated amount of investments remitted from Taiwan to mainland China in the foreign currency at the end of the period did not exceed the amount of investments in the foreign currency approved by the Investment Commission.
Note 5. The net worth of the Group as of December 31, 2021 was NT$8,926,634 thousand. In accordance with the "Directions Governing the Examination of Investment or Technical Cooperation in Mainland China," the cap amount should be NT$5,355,980 thousand (NT$8,926,634 thousand x 60%).

Table 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).

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.

§ 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

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.

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.

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.

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 `〃`

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.

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 "

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

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

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.

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)

(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.

AI assistant

Aurora — Audit Report / Information 2021

52038_rns_2021-11-15_c7fb0ba6-c483-4a10-9393-f340076be870.pdf

Aurora Corporation

Parent Company Only Financial Statements and Independent Auditors' Report

§Table of Contents§

Independent Auditors' Report

To Aurora Corporation:

Opinions

Basis for Opinions

Key Audit Matters

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

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

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

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

Aurora Corporation Parent Company Only Statement of Comprehensive Income For the Years Ended December 31, 2021 and 2020

(Continued from the previous page)

Aurora Corporation

Parent Company Only Statements of Changes in Equity

For the Years Ended December 31, 2021 and 2020

Aurora Corporation

Parent Company Only Statements of Cash Flows For the Years Ended December 31, 2021 and 2020

(Continued from the previous page)

Aurora Corporation

Notes to Parent Company Only Financial Statements

For the Years Ended December 31, 2021 and 2020

1. Company History

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

Procedures for Authorization

3. Application of New and Amended Standards and Interpretations

4. Summary of Significant Accounting Policies

j. Goodwill

Financial assets at amortized cost

o. Leases

1) Where the Company is a lessor:

2) Deferred income tax

3) Current and deferred income taxes

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

6. Cash

7. Notes Receivable and Accounts Receivable

Accounts receivable

December 31, 2021

December 31, 2020

8. Inventories

9. Investments Accounted for Using the Equity Method

(Continued from previous page)

Huxen Corporation

10. Property, plant, and equipment

a. For self-use

11. Lease Agreements

b. Lease liabilities

d. Other lease information

12. Investment properties

13. Intangible assets

14. Other current assets

15. Loans

December 31, 2020

16. Accounts Payable

17. Other Liabilities

18. Post-retirement Benefit Plan

b. Defined benefit plans

19. Equity

b. Capital surplus

20. Revenue

21. Net Income

f. Employee compensation

Estimated percentage

22. Income Tax

2021

23. Earnings per Share

Net income

24. Capital Risk Management

25. Information on Cash Flows

26. Financial instruments

a) Foreign exchange risk

Sensitivity analysis

b) Interest rate risk

Sensitivity analysis

2) Credit risk

3) Liquidity risk

Aurora Audit Report / Information 2021