CHEM — Interim / Quarterly Report 2021

Dec 13, 2021

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Consolidated Financial Statements for the Three-Month Periods Ended March 31, 2021 and 2020 and Independent Accountants’ Review Report

==> picture [532 x 131] intentionally omitted <==

INDEPENDENT ACCOUNTANTS’ REVIEW REPORT

To The Board of Directors and the Stockholders

Chung-Hsin Electric and Machinery Manufacturing Corp. and its Subsidiaries

Introduction

We have reviewed the accompanying consolidated balance sheets of Chung-Hsin Electric and Machinery Manufacturing Corp. and its subsidiaries (the “Group”) as of March 31, 2021 and 2020 and the consolidated statements of comprehensive income for the three months ended March 31, 2021 and 2020, as well as the consolidated statements of changes in equity and cash flows for the three months ended March 31, 2021 and 2020, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting,” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Base of Qualified Conclusion

As Note 4(3), the consolidated financial statements included partial of the subsidiaries disclosure that is based its financial statement without independent accountant review. These companies’ total assets of March 31, 2021 and 2020 was 3,812,661 thousands and 4,719,199 thousands, which was 12.68% and 21.31% of consolidated assets. These companies’ liabilities of March 31, 2021 and 2020 was 1,890,083 thousands and 3,006,890 thousands, which was 10.19% and 21.10% of consolidated liabilities. These companies’ comprehensive income was 8,347 thousands and (67,256) thousands, which was 1.36% and 2,505.87% of consolidated statement of comprehensive income.

==> picture [516 x 74] intentionally omitted <==

As Note 6(10), the equity’s investment was 1,446,592 thousands and 711,844 thousands as of March 31, 2021 and 2020. The Share of profit of associates and joint ventures accounted for using equity method was (9,709) thousands and (10,273) thousands for the three months ended March 31, 2021 and 2020. The Share of other comprehensive income of associates and joint ventures accounted for using equity method was (15,018) thousands and (37,798) thousands for the three months ended March 31, 2021 and 2020. These was based its financial statements without independent accountant review. As disclosure in Note 13, its information was also without independent accountant review.

Qualified Conclusion

Based on our reviews, except the disclosure in base of qualified conclusion, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects the financial position of the entity as at March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three-month period then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting,” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partner on the reviews resulting in this independent auditors’ review report are Lin Chin Feng and Wu Meng Ta.

May 12, 2021

Notice to Reader

The accompanying consolidated financial statements are intended only to present the consolidated financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

For the convenience of readers, the independent accountants’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent accountants’ review report and consolidated financial statements shall prevail.

CH UN G -H SI N ELE CTRI C A N D M ACHI NE RY M AN UFA CTU RIN G C ORP S. A ND SU BSI DIA RIES

CO NS OLI DA TED ST ATEM EN TS OF BAL AN CE S HEET S

(I n T ho usa nd s of N e w T ai wa n D oll ars )

ASSETS	March 31, 2021 (Reviewed)	March 31, 2021 (Reviewed)	December 31, 2 (Audited)	020	March 31, 2020 (Reviewed)	March 31, 2020 (Reviewed)
	Amount ＄ 707,858 184,751 161,056 1,974,231 59,726 - 2,205,689 5,821 18,808 68,262 1,879 3,790,023 2,671,189 865,443 - 452,608 13,167,344 213,432 110,219 1,446,592 10,214,410 3,170,171 525,628 382,392 295,419 166,578 379,980 16,904,821 ＄ 30,072,165 ＄ 1,909,197 - 11,700 2,920,420 6,621 2,450,284 14,437 729,439 950 590,918 - 1,158,043 1,731,200 44,370 11,567,579 1,426,362 3,357,284 341,338 1,684,312 180,140 6,989,436 18,557,015 4,761,343 1,455,439	%	Amount ＄ 1,160,714 238,469 143,711 1,465,041 94,126 - 2,283,236 7,656 30,583 90,322 1,711 3,913,268 3,083,130 908,507 - 486,162 13,906,636 217,933 98,273 1,470,523 9,226,449 2,925,456 527,191 383,457 275,000 156,128 354,189 15,634,599 ＄ 29,541,235 ＄ 926,830 76,425 10,200 2,787,611 32,422 3,038,697 16,380 889,086 950 430,485 62 933,589 999,200 22,783 10,164,720 1,422,555 4,912,967 340,804 1,659,788 136,855 8,472,969 18,637,689 4,761,343 1,455,475	%	Amount ＄ 1,000,720 276,159 - 1,310,786 49,038 10,655 1,141,391 24,219 28,605 97,326 2,915 3,507,994 2,779,661 1,761,532 22,431 387,793 12,401,225 217,220 112,396 711,844 4,930,674 2,225,543 531,878 386,892 111,375 158,014 354,604 9,740,440 ＄ 22,141,665 ＄ 1,566,324 14,479 16,200 2,802,574 54,540 1,574,815 14,514 478,512 919 153,125 227,641 969,185 850,000 16,511 8,739,339 1,413,457 2,727,221 340,922 947,397 81,073 5,510,070 14,249,409 4,200,000 501,448	%
CURRENT ASSETS： Cash and cash equivalents (Note 6) Current financial assets at fair value through profit or loss (Note 6) Current financial assets at amortised cost (Note 6) Contract assets, current (Notes 6 and 7) Notes receivable, net (Note 6) Notes receivable due from related parties, net (Notes 6 and 7) Accounts receivable, net (Note 6) Accounts receivables due from related parties (Notes 6 and 7) Other accounts receivables, net Other accounts receivables due from related parties (Note 7) Current tax assets Inventory – manufactory (Note 6) Inventory – Construction (Notes 6, 7 and 8) Prepayments (Notes 6 and 7) Non-current assets as held for sale Other current assets (Note 8) Total current assets NON-CURRENT ASSETS： Non-current financial assets at fair value through profit or loss (Note 6) Non-current financial assets at fair value through other comprehensive income (Note 6) Investments accounted for using equity method (Note 6) Property, plant and equipment (Notes 6 and 8) Right-of-use assets (Note 6) Investment property, net(Notes 6 and 8) Intangible property (Note 6) Deferred income tax assets (Note 6) Guarantee deposits paid (Note 8) Other noncurrent assets (Note 6, 7 and 8) Total non-current assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY		2 1 - 7 - - 7 - - - - 13 9 3 - 2		4 1 - 5 - - 8 - - - - 13 11 3 - 2		5 1 - 6 - - 5 - - - - 16 13 8 - 2
		44		47		56
		1 - 5 34 11 2 1 1 - 1		1 - 5 31 10 2 1 1 1 1		- 1 3 22 10 3 2 - 1 2
		56		53		44
		100		100		100
		6 - - 10 - 8 - 2 - 2 - 4 6 -		3 - - 10 - 10 - 3 - 2 - 3 3 -		7 - - 13 - 7 - 2 - 1 1 4 4 -
CURRENT LIABILITIES： Short-term debts (Notes 6 and 7) Short-term notes and bills payable (Note 6) Current financial liabilities at fair value through profit or loss (Note 6) Contract liabilities, current (Notes 6 and 7) Notes payable Accounts payable Accounts payable due from related parties (Note 7) Other payables (Note 6) Other payables due from related parties (Note 7) Current tax liabilities Provisions, current (Note 6) Lease liabilities, current (Note 6) Current portion of long-term liabilities (Note 6) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES： Bonds payable (Note 6) Long-term debts (Note 6) Deferred income tax liabilities (Note 6) Lease liabilities, non-current (Note 6) Other non-current liabilities (Notes 6 and 7) Total non-current liabilities Total liabilities Equity attributable to owners of parent Common stock (Note 6) Capital surplus (Note 6)
		38		34		39
		5 11 1 6 -		5 17 1 6 -		6 13 2 4 -
		23		29		25
		61		63		64
		16 5		16 5		19 2

～1～

CH UN G -H SI N ELE CTRI C A N D M ACHI NE RY M AN UFA CTU RIN G C ORP S. A ND SU BSI DIA RIES

CO NS OLI DA TED ST ATEM EN TS OF BAL AN CE S HEET S

(I n T ho usa nd s of N e w T ai wa n D oll ars )

RETAINED EARNINGS (Note 6) Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity(Note 6) Treasury shares (Notes 6 and 8) Total Equity attributable to owners of parent Non-controlling interests (Note 6) Total equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	March 31, 2021 (Reviewed)	March 31, 2021 (Reviewed)	December 31, 2 (Audited)	020	March 31, 2020 (Reviewed)	March 31, 2020 (Reviewed)
	1,203,581 858,940 2,563,056 4,625,577 534,578 ( 116,880) 11,260,057 255,093 11,515,150 ＄ 30,072,165	4 3 8	1,203,581 858,940 1,948,855 4,011,376 538,980 ( 116,880) 10,650,294 253,252 10,903,546 ＄ 29,541,235	- 4 3 6	1,143,143 5 858,940 4 1,154,506 5 3,156,589 14 ( 87,287 ) - ( 116,880) - 7,653,870 35 238,386 1 7,892,256 36 ＄ 22,141,665 100	5 4 5
		15 2 -		13 2 -
		38 1		36 1		35 1
		39		37		36
		100		100		100

(The accompanying notes are an integral part of the consolidated financial statements.)

～2～

CHUNG-HSIN ELECTRIC AND MACHINERY MANUFACTURING CORPS. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

OPERATING REVENUE (Notes 6 and 7) OPERATING COST (Notes 6 and 7) GROSS PROFIT OPERATING EXPENSES (Notes 6 and 7) Marketing expenses General and administrative expenses Research and development expenses Expected credit impairment losses (gains) Total operating expenses OPERATING INCOME NON-OPERATING INCOME AND EXPENSES Interest income (Notes 6 and 7) Other income (Notes 6 and 7) Other incomes and losses (Note 6) Financial cost (Notes 6 and 7) Share of profit (loss) of associates and joint ventures accounted for using equity method (Note 6) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX (Note 6) PROFIT OTHER COMPREHENSIVE INCOME (Note 6) Items that may not be reclassified to profit or loss Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss Exchange differences on translating foreign operations Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss Total other comprehensive income Total comprehensive income PROFIT ATTRIBUTABLE TO Owners of parent Non-controlling interests COMPREHENSIVE INCOME ATTRIBUTABLE TO Owners of parent Non-controlling interests EARNINGS PER SHARE (Note 6) Basic earnings per share Diluted earnings per share	FirstQuarterperiod	ended March 31,
	2021	2020

(The accompanying notes are an integral part of financial statements.)

～3～

CHUNG-HSIN ELECTRIC AND MACHINERY MANUFACTURING CORPS. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

BALANCE, JANUARY 1, 2021 PROFIT FOR THE PERIOD OTHER COMPREHENSIVE INCOME FOR THE PERIOD TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Other BALANCE, MARCH 31, 2021 BALANCE, JANUARY 1, 2020 Due to recognition of equity component of convertible bonds issued PROFIT FOR THE PERIOD OTHER COMPREHENSIVE INCOME FOR THE PERIOD TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Changes in Non-controlling interests Other BALANCE, MARCH 31, 2020	Common Stock	Capital surplus Legal reserve ＄1,455,475＄1,203,581 - - - - - - ( 36 ) - ＄ 1,455,439＄1,203,581 ＄ 421,024＄1,143,143 80,424 - - - - - - - - - - - ＄ 501,448＄1,143,143		(In T RETAI	housands of New Taiwan Dollars) (Reviewed, Not Audited) NED EARNINGS	housands of New Taiwan Dollars) (Reviewed, Not Audited) NED EARNINGS	housands of New Taiwan Dollars) (Reviewed, Not Audited) NED EARNINGS	housands of New Taiwan Dollars) (Reviewed, Not Audited) NED EARNINGS		OTHER EQUITY
			Legal reserve	Special reserve	Unappropriated earnings		Total Retained earnings
	＄4,761,343 - -		＄1,203,581 - -	＄858,940 - -	＄	1,948,855 614,201 -	＄	4,011,376 614,201 -
	- -			- -		614,201 -		614,201 -
	＄4,761,343		＄1,203,581	＄858,940	＄	2,563,056	＄	4,625,577
	＄4,200,000 - - -		＄1,143,143 - - -	＄858,940 - - -	＄	1,048,760 - 105,746 -	＄	3,050,843 - 105,746 -
	- - -		- - -	- - -		105,746 - -		105,746 - -
	＄4,200,000		＄1,143,143	＄858,940	＄	1,154,506	＄	3,156,589

(The accompanying notes are an integral part of the consolidated financial statements.)

～4～

CHUNG-HSIN ELECTRIC AND MACHINERY MANUFACTURING CORPS. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

(Reviewed, Not Audited)
CASH FLOWS FROM OPERATING ACTIVITIES Profit Before Tax Adjustments to reconcile profit (loss): Depreciation Amortization Expected credit impairment losses (gains) Net loss (gain) on financial assets or liabilities at fair value through profit or loss Interest expenses Interest income Share of (profit) loss of associates and joint ventures accounted for using equity method Loss (Gain) on disposal of property, plant and equipment Loss (Gain) on disposal of investment Other Net changes in operating incomes and losses which do not affect cash flows Net changes in operating assets and liabilities Increase in financial assets mandatorily classified as at fair value through profit or loss (Increase) Decrease in contract assets (Increase) Decrease in notes receivable (Increase) Decrease in notes receivable - related parties (Increase) Decrease in accounts receivables (Increase) Decrease in accounts receivable - related parties (Increase) Decrease in other accounts receivables (Increase) Decrease in other accounts receivable - related parties (Increase) Decrease in inventory (Increase) Decrease in prepayments (Increase) Decrease in other current assets Net cash provide by (used in) operating assets (Decrease) Increase in contract liabilities (Decrease) Increase in notes payable (Decrease) Increase in accounts payable (Decrease) Increase in accounts payable - related parties (Increase) Decrease in other accounts receivables (Increase) Decrease in other accounts receivable - related parties (Decrease) Increase in provisions (Decrease) Increase in other current liabilities (Decrease) Increase in net defined benefit liability Net cash provide by (used in) operating liabilities Net changes provide by (used in) operating assets and liabilities Total Adjustments Cash provided by (used in) operating activities Cash received for interest Cash received for dividend Cash paid for interest Cash received (paid) for Income tax Net cash provide by (used in) operating activities	First Quarter period ended March 31, 2021 2020 ＄ 767,561＄ 154,356 440,699 428,875 40,090 40,275 ( 1,176 ) ( 9,939 ) 5,696 71,724 25,840 16,351 ( 1,939 ) ( 3,705 ) 9,709 10,273 ( 61,741 ) 63 ( 3,426 ) ( 671 ) 1,619 ( 107) 455,371 553,139 57,216 199,559 ( 506,251 ) 299,111 34,400 17,393 - 10,433 74,528 376,015 3,090 13,197 11,480 11 22,211 ( 37,239 ) 533,971 ( 642,186 ) 43,064 ( 1,214,091 ) 33,554 ( 98,656) 307,263 ( 1,076,453) 132,809 ( 330,526 ) ( 25,801 ) 45,493 ( 588,413 ) 410,320 ( 1,943 ) ( 2,094 ) ( 159,558 ) ( 238,228 ) - ( 491 ) ( 62 ) 57,116 21,587 ( 10,677 ) ( 2,175) - ( 623,556) ( 69,087) ( 316,293) ( 1,145,540) 139,078 ( 592,401) 906,639 ( 438,045) 2,083 3,736 - 20,344 ( 13,002 ) ( 7,537 ) ( 9,135) ( 579) 886,585 ( 422,081)
	2021 ＄ 767,561 440,699 40,090 ( 1,176 ) 5,696 25,840 ( 1,939 ) 9,709 ( 61,741 ) ( 3,426 ) 1,619 455,371 57,216 ( 506,251 ) 34,400 - 74,528 3,090 11,480 22,211 533,971 43,064 33,554 307,263 132,809 ( 25,801 ) ( 588,413 ) ( 1,943 ) ( 159,558 ) - ( 62 ) 21,587 ( 2,175) ( 623,556) ( 316,293) 139,078 906,639 2,083 - ( 13,002 ) ( 9,135) 886,585

(Continued)

～5～

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income Acquisition of financial assets at amortized cost Refund from capital reduction of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in guarantee deposits paid Acquisition of Intangible assets Acquisition of right-of-use assets Increase in long-term lease receivables Decrease in long-term lease receivables Increase in other noncurrent assets Other investment activities Net cash provide by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term debts Decrease in short-term notes and bills payable Proceeds from issuing bonds Decrease in long-term debts Decrease in guarantee deposit received Payment of lease liabilities Increase in other non-current liabilities Change in non-controlling interests Other financing activities Net cash provided by (used in) financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS, END OF PERIOD

First Quarter period ended March 31, 2021 2020 - ( 161,116 ) ( 17,411 ) - - 112,500 ( 1,098,214 ) ( 541,106 ) 61,882 9,559 ( 10,450 ) ( 3,928 ) ( 1,231 ) ( 350,095 ) ( 19,397 ) ( 40,139 ) - ( 2,315 ) 889 - ( 44,858 ) ( 34,174 ) ( 627) ( 627) ( 1,129,417) ( 1,011,441) 982,367 847,379 ( 76,500 ) ( 500 ) - 1,500,134 ( 824,300 ) ( 575,200 ) ( 5,155 ) ( 4,270 ) ( 334,287 ) ( 309,354 ) 49,818 3,418 ( 124 ) ( 2,751 ) ( 36) - ( 208,217 ) 1,458,856 ( 1,807 ) ( 7,874 ) ( 452,856 ) 17,460 1,160,714 983,260 ＄ 707,858 ＄ 1,000,720

2021 - ( 17,411 ) - ( 1,098,214 ) 61,882 ( 10,450 ) ( 1,231 ) ( 19,397 ) - 889 ( 44,858 ) ( 627) ( 1,129,417) 982,367 ( 76,500 ) - ( 824,300 ) ( 5,155 ) ( 334,287 ) 49,818 ( 124 ) ( 36) ( 208,217 ) ( 1,807 ) ( 452,856 ) 1,160,714 ＄ 707,858

(Concluded)

(The accompanying notes are an integral part of the consolidated financial statements.)

～6～

CHUNG-HSIN ELECTRIC AND MACHINERY MANUFACTURING CORPS. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2021 and 2020 (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(Reviewed, Not Audited)

1.HISTORY AND ORGANIZATION

The Corporation

Chung-Hsin Electric and Machinery Manufacturing Corp. (the Corporation), a Republic of China (R.O.C.) corporation, registered in Chung Ho city of New Taipei City, main business operated at No. 25, Wen-Te Rd., Lo Shan Tsun, Guishan Dist., Taoyuan city.

• (a)The Corporation starts in May, 1956 as name in Chung-Hsin factory before and reorganizes to Chung-Hsin Electric and Machinery Manufacturing Corps. in 1962.

• (b)The Corporation is engaged mainly in manufacturing equipments and machinery for power supplying, transmission and distribution; power automation system; generators, air conditioning; incinerator, ash recycling plant; pollution prevent project; turn key project for power supply and control, wind power generator, hydro power generator; producing and trading wireless and microwave communication product; parking management and constructing automatic parking facility, sale and rental residence and building ; manufacturing and marking of large gantry 5-Axis machining center; manufacturing and selling of pneumatic-operated and medium voltage switchgear equipments ; production and manufacture of aerospace components, OLED, precision machining for components and semiconductor components.

The main operational activities of the Corporation’s subsidiaries please refer to Note 4(3).

• (c)The common shares of the Corporation have been listed on Taiwan Stock Exchange since March 8, 1994.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIALSTATEMENTS AND PROCEDURES FOR AUTHORIZATION

The consolidated financial statements were approved by the board of directors and authorized for issue on May 12, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

• (1) Effect of adoption of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) in issue and endorsed by the Financial Supervisory Commission, R.O.C. (FSC):

The IFRSs endorsed and issued by the FSC in 2021 were listed below:

New Standards, Amendments And Interpretations Effective Date of IASB Amendments to IFRS 4 Extension of the Temporary Exemption June 25, 2020(Effective from Applying IFRS 9 immediately upon promulgation) Amendments to IFRS 9, IAS Interest Rate Benchmark Reform - January 1, 2021(Note) 39, IFRS 7, IFRS 4 and IFRS Phase 2 16

Note: The Group shall apply these amendments beginning on or after January 1, 2021.

The Group assesses the application of the above standards, amendments and interpretations have not material impact on the Group’s financial position and financial performance.

• (2) The impact of the Group has not applied the IFRSs in issue and endorsed by FSC: None.

～7～

(3) The IFRSs issued by IASB but not endorsed by FSC:

The IFRSs issued by IASB but not endorsed by FSC were listed below:

New Standards, Amendments 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 IAS 1 Classification of Liabilities as Current or Non-current Amendments to IAS 16 Property, Plant and Equipment - Proceeds before Intended Use Amendments to IAS 37 Onerous Contracts - Cost of Fulfilling a Contract Amendments to IFRS 3 Reference to the Conceptual Framework Annual Improvements to IFRS Standards 2018-2020 Amendments to IAS 1 Disclosure of Accounting Policies Amendments to IAS 8 Definition of Accounting Estimates Amendments to IFRS 16 Covid-19-Related Rent Concessions beyond June 30, 2021

Effective Date of IASB (Note 1)

Effective date to be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4) January 1, 2022 (Note 5) January 1, 2023 (Note 6) January 1, 2023 (Note 7) April 1, 2021 (Note 8)

• Note 1: Unless otherwise stated, the above new standards, amendments and interpretations are effective for annual periods beginning on or after the date mentioned.

• Note 2: The amendments are applicable 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 3: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

• Note 4: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.

• Note 5: The amendments to IFRS 9 will be 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 amendment to IAS 41 “Agriculture” will be 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 “Firs-time Adoptions of IFRSs” will be applied retrospectively for annual for annual reporting periods beginning on or after January 1, 2022.

• Note 6: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.

• Note 7: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.

• Note 8: The amendments will be applied for annual reporting periods beginning on or after April 1, 2021.

Amendments to IFRS 16, “Covid-19-Related Rent Concessions beyond June 30, 2021” This amendment extends the practical expedient of Covid-19 related rent concessions for one year to help related accounting process of lessee.

The Group is assessing the potential impact of the new standards and amendments above continuously. The related impact will be disclosed when the Group completes the evaluation.

～8～

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies except for the compliance statement, basis of preparation, basis of consolidation and new parts listed below, others is the same as note 4 in the consolidation financial statements of 2020. Except for the notes listed. The summary of significant accounting policies listed below is consistent adopted in all reporting periods.

(1) Compliance statement

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, ‘Interim Financial Reporting’ as endorsed by the FSC. The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements prepared under IFRSs issued and endorsed by the FSC. Please refer to the consolidated financial statements for the year ended December 31, 2020 together.

• (2) Basis of preparation

• Except for the financial instruments measured at fair value and net defined benefit liability which are measured at the fair value of plan assets less the present value of the defined benefit obligation, these consolidated financial statements have been prepared under the historical cost convention. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

The preparation of consolidated financial statements that comply with IFRSs in issue and endorsed by FSC, which requires the use of some important accounting estimates. In the process of applying the Group’s accounting policies, management also requires the use of its judgment, involving highly judged or complex items, or involving major assumptions in financial reporting and the estimated items, please refers to Note 5.

The items listed in the financial statements of each individual in the Group are measured in the individual functional currency. This consolidated financial statement is prepared using the functional currency New Taiwan dollar of the Corporation as the expression currency.

(3) Basis of consolidation

• A.The basis for the consolidated financial statements:

• a. The Group includes all subsidiaries in the consolidated financial statement. Subsidiaries refer to individuals (including structural individuals) controlled by the Group. When the Group is exposed to the right to change the remuneration of the individual or the remuneration rights for such variation, and the ability to affect such remuneration through the power of the individual, the Group controls the individual. Subsidiaries are included in the consolidated financial report from the date the Group obtains control, and are not included in the consolidated financial report when the Group loses control.

• b. Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Corporation and its subsidiaries are eliminated in consolidated financial statements. The accounting policies of the subsidiaries have been adjusted as necessary, consistent with the policies adopted by the Group.

• c. The components of profit and loss and other comprehensive income are attributed to Corporation and non-controlling interests; total comprehensive income attributed to the Corporation and non-controlling interests, even though non-controlling becomes lossed.

• d. Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary are accounted for as equity transactions.

～9～

The carrying amounts of the Corporation’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

• e. When the Group lose control of a subsidiary, a profit or loss is calculated as the difference between (i) the Group remeasures any investment retained in the former subsidiary at its fair value; (ii) the previous carrying amount. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss, on the same basis as would be required if the related assets or liabilities were disposed of.

• B. The subsidiaries in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Main Business Activities		Ownership (%)
			March 31, 2021	December 31, 2019	March 31, 2020
Chung-Hsin Electric And Machinery Manufacturing Corps.	CHEM USA CORP. CHENG-HSIN Engineering & Services CO.,LTD. Etrovision technology Co., Ltd. CHEM Corp. Sunrise Tech. Co. Ltd (Sunrise investment Corp. Changed its name) Global - Entech Co., Ltd. Tone-zoom industry Co., Ltd. Bao-Sheng Global Co., Ltd. FinData Technology Corp. Chung- Hsin Energy Tech. Inc. Tian Cin Energy Co., Ltd. Tian Peng Energy Co., Ltd.	Selling and assembly of note book computers Environmental protection incinerator set up and maintenance Electric power and monitor equipment Plan, design and maintenance for electricity, water and fire fighting system of building and factory Electric equipment installment Automatic control equipment Communication engineering TV-KU channel and C channel installment Export and import goods, Holding Pollution prevention and control equipment installation and maintenance, mechanical installation, automatic control equipment installation, power generation, power transmission and distribution, machinery manufacturing and energy technology services. Air pollution sample testing Waste water and environmental water testing Noise testing Evaluation of environmental affection Intensified fiber plastic material and product Bathing equipment Industrial plastic product Manufacture machinery equipment Lift installation Automation control equipment and traffic mark Parking business management, etc. Software Design Services, Data Processing Services, Digital Information Supply Services Manufacturing machinery for generating, transmitting and distributing electric power and fuel cells; energy technology services. Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services. Manufacturing machinery for generating, transmitting and	100.00% 100.00% 99.99% 100.00% 100.00% 99.98% 58.04% 100.00% 100.00% 100.00% 86.46% 85.32%	100.00% 100.00% 99.99% 100.00% 100.00% 99.98% 58.04% 100.00% 100.00% 100.00% 86.46% 85.32%	100.00% 100.00% 99.99% 100.00% 100.00% 99.98% 58.04% 100.00% 100.00% 100.00% 50.00% 50.00%

～10～

Name of Investor	Name of Subsidiary	Main Business Activities		Ownership (%)
			March 31, 2021	December 31, 2019	March 31, 2020
CHENG-HSIN Engineering & Services CO.,LTD. San - feng construction Co., Ltd. Tian Fu Energy Co., Ltd. CHEM Corp. CHEM POWER Corp. CHEM Power Limited Chem-tech (Shang-hai) Corp. CHEM J-V Limited H2 Power Tech, Inc.	Tian Chong Energy Co., Ltd. H2 PowerTech,Inc. Tian Fu Energy Co., Ltd. San - feng construction Co., Ltd. Wha Dun Building Management Service Co., Ltd. Accumis System Technologies Inc. Tian Fu Energy Co., Ltd. Tian Cin Energy Co., Ltd. Tian Peng Energy Co., Ltd. Tian Chong Energy Co., Ltd. CHEM POWER Corp. CHEM Power Limited CHEM J-V Limited Chemly power equipment Corp. Chung - Hsin Power Systems (Jiangsu) Corp. Nantong Shengyi precision machinery Co. Shannxi baoji Yong - shin Ltd. Jiangsu Chung - Hsin Precision Machinery Co., Ltd. Chem-tech (Shang hai) Corp. Chung-Hsin Power Systems (Shenyang) Inc. Zhen xing parking management Co., Ltd. Jiangsu Fumei Landscape & Real Estate Development Co., Ltd. H2 Power Tech, LLC.	distributing electric power and energy technology services. Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services. Holding company Investment consultants and energy technology services, etc. Civil engineering, construction, water conservancy, contract management industry Apartment managing services and consulting, etc. Optical and precision equipment manufacturing and software information services Investment consultants and energy technology services, etc. Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services. Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services. Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services. Export and import goods, Holding Export and import goods, Holding Export and import goods, Holding Manufacturing machinery for generating, transmitting and distributing electric power 220kV~550kV high voltage GIS/GCB assembly and manufacturing. Processing tanks, plates, over 1.5M of conductors and various machinery parts Aluminum alloy casting and related machinery manufacturing Alloy casting and precision manufacturing Parking equipment & parts manufacturing International trade Manufacturing ultra high voltage gas insulated switchgear for power transmission and distribution Aluminum casting and precision machinery manufacturing and selling Parking business management Resort development and management Technical services, licensing and equipment sales	85.99% 100.00% 52.42% 100.00% 100.00% － 47.58% 13.26% 14.39% 13.73% 100.00% 100.00% 100.00% 100.00% 100.00% 50.00% 69.12% 99.17% 100.00% 100.00% － 100.00% 100.00%	85.99% 100.00% 52.42% 100.00% 100.00% － 47.58% 13.26% 14.39% 13.73% 100.00% 100.00% 100.00% 100.00% 100.00% 50.00% 69.12% 99.17% 100.00% 100.00% － 100.00% 100.00%	50.00% 100.00% － 100.00% 100.00% 100.00% 100.00% 49.00% 49.00% 49.00% 100.00% 100.00% 100.00% 100.00% 100.00% 50.00% 69.12% 99.17% 100.00% 100.00% 100.00% 100.00% 100.00%

～11～

Name of Investor	Name of Subsidiary	Main Business Activities		Ownership (%)
			March 31, 2021	December 31, 2019	March 31, 2020
ME Energy Systems Limited CHEM ME ENERGY SYSTEMS HOLDINGS (PTY) Ltd.	H2 PowerTech,Inc. EGME Energy Ecosystems(India) Private Limited CHEM Fuel Cell (M) SDN. BHD. CHEM ME ENERGY SYSTEMS HOLDINGS (PTY) Ltd. CHEM ENERGY SA (PTY) LTD.	Holding company To promote, own, acquire, erect, construct, establish, maintain, improve, manage, devise, develop, manufacture, install, commission, alter, carry on, control, take on backup power services, fuel cells equipment projects, telecom towers or other facilities of generation back power services of green energy and their sales and distribution To promote Fuel cells, Microgrid and their sales Holding company for manufacturing, sales and service related to fuel cell generators and other generation and energy storage systems. Manufacturing and Sales of fuel generators, battery charging services, power generating services, fuel service and parts and maintenance thereof.	100.00% 99.99% 100.00% 100.00% 100.00%	100.00% 99.99% 100.00% 100.00% 100.00%	100.00% 99.99% 100.00% 100.00% 100.00%

C.Subsidiaries not included in the consolidated financial statements: none.

D.The significant non-controlling interests’ information of subsidiaries: none.

(4)Employee benefits

Retirement benefits Defined benefit plan

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations, significant plan amendments, settlements, or other significant one-off events occurred for the period.

(5)Income Tax

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income tax rate that would be applicable to expected total annual earnings.

5. CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The Group considers the economic implications of the COVID-19 when making its critical accounting estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods. The same critical accounting judgments and key sources of estimates and uncertainty assumptions have been followed in these consolidation financial statements as were applied in the preparation of Note 5 of the Group’s consolidation statements for the year ended December 31, 2020.

～12～

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand Turnover cash Bank Deposit	March31,2021 $ 4,425 10,108 693,325 $ 707,858	December31,2020 $ 4,348 9,505 1,146,861 $ 1,160,714	March31,2020
			$ 5,447 9,664 985,609
			$ 1,000,720

(A) The financial institutions of the Group have good credit. The Group has business with numbers of financial institutions to diversify credit risk. The probability of breach of contract is expected to be low.

(B) As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group’s cash and cash equivalents and bank deposit were used as collaterals for purchasing raw materials, engineering contracts, and loans and listed as restricted assets. Please refer to Note 8.

(2) Financial assets and liabilities at fair value through profit or loss

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

	March 31, 2021	December 31, 2020	March 31, 2020
Current financial assets Mandatorily at fair value through profit or loss Listed Stock Beneficiary certificate Financial products Non-current financial assets Mandatorily at fair value through profit or loss Listed Stock Financial products Current financial liabilities Held for trading - Convertible bonds call options and put options	$ 7,864 176,887 － $ 184,751 $ 213,432 － $ 213,432 $ 11,700	$ 7,672 230,797 － $ 238,469 $ 188,878 29,055 $ 217,933 $ 10,200	$ 89,108 66,446 120,605
			$ 276,159
			$ 217,220 －
			$ 217,220
			$ 16,200

As of March 31, 2021, December 31, 2020 and March 31, 2020, financial assets at fair value through profit or loss did not server as collaterals for bank loan.

(3) Financial assets at fair value through other comprehensive income or loss

March 31, 2021 December 31, 2020 March 31, 2020 Non-current Equity Instruments Equity $ 110,219 $ 98,273 $ 112,396

The Group invests in unlisted shares companies for medium and long-term strategic purposes and expects to make profits through long-term investments. The management of the Group believes that if short-term fair value fluctuations of these investments are included in profit or loss, it is inconsistent with the above-mentioned long-term investment plan. Therefore, they choose to designate these investments as fair value through other comprehensive incomes or losses.

(4) Financial assets at amortized cost

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

Current

Time deposits with original maturities － of more than 3 months $ 161,056 $ 143,711 $

～13～

As of March 31, 2021, December 31, 2020 and March 31, 2020, financial assets at amortized cost did not server as collaterals for bank loan.

(5) Notes receivable, Net

Notes receivable From Operating activities Less: allowance for impairment loss Notes receivable due from related parties	March31,2021 $ 59,726 － 59,726 － $ 59,726	December31,2020 $ 94,126 － 94,126 － $ 94,126	March31,2020
			$ 49,038 －
			49,038
			10,655
			$ 59,693

• A. As of March 31, 2021, December 31, 2020 and March 31, 2021, the Group has no notes receivable overdue.

• B. As of March 31, 2021, December 31, 2020 and March 31, 2021, notes receivable did not server as collaterals for bank loan.

(6) Accounts receivable, Net

Current: Accounts receivable Less: allowance for impairment loss Lease payments receivables Less: unearned finance income Accounts receivable, net Accounts receivable – related parties Less: allowance for impairment loss Accounts receivable due from related parties, net Current subtotal Non-current: Lease payments receivables Less: unearned finance income Non-current subtotal	March31,2021 $ 2,246,442 ( 43,401) 2,203,041 5,425 ( 2,777) 2,648 2,205,689 9,315 ( 3,494) 5,821 2,211,510 84,022 ( 23,393) 60,629 $ 2,272,139	December 31,2020 $ 2,321,057 ( 40,394 ) 2,280,663 5,529 ( 2,956 ) 2,573 2,283,236 12,399 ( 4,743 ) 7,656 2,290,892 87,022 ( 25,504 ) 61,518 $ 2,352,410	March31,2020 $ 1,180,196 ( 41,345 ) 1,138,851 5,409 ( 2,869 ) 2,540 1,141,391 33,350 ( 9,131 ) 24,219 1,165,610 89,166 ( 25,913 ) 63,253 $ 1,228,863

Finance leases of lease payments receivables were as follows:

Undiscounted lease Year 1 Year 2 Year 3 Year 4 Year 5	March 31, 2021 $ 5,425 5,425 5,425 5,425 5,425	December 31,2020 $ 5,529 5,529 5,529 5,529 5,529	March 31, 2020
			$ 5,409 5,409 5,409 5,409 5,409

～14～

Over 5 years Less: unearned finance i Lease investment, net Current Non-current	March31,2021 62,322 89,447 ( 26,170) $ 63,277 $ 2,648 60,629 $ 63,277	December 31,2020 64,906 92,551 ( 28,460 ) $ 64,091 $ 2,573 61,518 $ 64,091	March31,2020 67,530 94,575 ( 28,782 ) $ 65,793 $ 2,540 63,253 $ 65,793

• A.The Group signed the power supply contract of the solar power generation equipment is finance leased, and the average financing period is 20 years.

• B.The Group applies the approach to providing for expected credit losses, which permits the use of lifetime expected loss provision for Finance leases of lease payments receivables. As of the balance sheet date, there is no finance lease receivable overdue. In the meanwhile, the Group considers the past default record of the counterparty and the future development of the relevant industry of the lease object. The Group believes that the above mention of finance lease receivables has not impairment.

The Group applies the simplified approach to providing for expected credit losses, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using the expected credit loss rate, which is based on the past experience of the debtor and the overdue days of accounts receivable.

The following table details the loss allowance of trade receivables.

March 31, 2021 Expected credit loss rate Total Book Value Less: Loss allowance Amortized cost December 31, 2020 Expected credit loss rate Total Book Value Less: Loss allowance Amortized cost March 31, 2020 Expected credit loss rate Total Book Value Less: Loss allowance Amortized cost	Not overdue $ 2,250,259 － $ 2,250,259 $ 2,289,416 － $ 2,289,416 $ 1,186,510 － $ 1,186,510	Overdue 1~180 days 0%～50% $ 27,848 ( 6,705 $ 21,143 0%～50% $ 58,471 ( 2,682 $ 55,789 0%～50% $ 38,827 ( 3,910 $ 34,917	Overdue over 181 days 50%～100% $ 40,927 ) ( 40,190 $ 737 50%～100% $ 49,660 ) ( 42,455 $ 7,205 50%～100% $ 54,002 ) ( 46,566 $ 7,436	Total $ 2,319,034 ) ( 46,895 ) $ 2,272,139 $ 2,397,547 ) ( 45,137 ) $ 2,352,410 $ 1,279,339 ) ( 50,476 ) $ 1,228,863

～15～

The movements of the loss allowance were as follows:

Balance, beginning of period Increase on impairment loss for the period Reversal on impairment loss for the period Effect of exchange rate changes Balance, end of period Balance, beginning of period Increase on impairment loss for the period Reversal on impairment loss for the period Effect of exchange rate changes Balance, end of period	Forthe three-monthperiods ended on March31,2021 Accounts receivable Other receivable Contract asset $ 45,137 $ 35,818 $ 2,939 3,789 － － ( 2,026 ) － ( 2,939 ) ( 5 ) ( 1 ) － $ 46,895 $ 35,817 $ － For the three-month periods ended on March 31, 2020 Accounts receivable Other receivable Contract asset $ 60,818 $ 24,729 $ － 126 － － ( 10,065 ) － － ( 403 ) 20 － $ 50,476 $ 24,749 $ －

Related credit risk management and assessment methods please refer to Note 12(3). As of March 31, 2021, December 31, 2020 and March 31, 2021, accounts receivable did not server as collaterals for bank loan.

(7) Inventories-manufactory

Raw materials Semi-finished goods Work in process Finished goods Supplies Finished goods - purchased Materials in transit Inventory as collateral	March 31, 2021 $ 1,292,406 417,275 1,232,958 748,998 － 69,949 28,437 $ 3,790,023 None	December 31, 2020 $ 1,044,512 328,322 1,387,502 1,058,981 － 63,924 30,027 $ 3,913,268 None	March 31, 2020
			$ 1,347,854 368,628 1,109,139 557,931 16 92,391 32,035
			$ 3,507,994
			None

For the three-month periods ended March 31, 2021 and 2020, the profits and losses derived from cost of good sold were as follows:

Cost of inventory sold Recoverable gain on obsolete and slow-moving Loss on obsolete and slow-moving Loss on disposal of inventory	For the three-month periods ended on March 31,	For the three-month periods ended on March 31,
	2021 $ 1,199,944 ( 42,806 ) － 9,991 $ 1,167,129	2020
		$ 613,728 － 33,632 －
		$ 647,360

The recovery in the value of inventories was increase due to the net realizable value of inventory increase.

～16～

(8) Inventories – Construction

Building as Held for sale No94, 95, Chung Shan section No 138, Dunhua S. section Land held for construction site Chengzhong section Building in construction Fuxing section Chenggong section Prepayments for Land Fuxing section	March 31,2021 $ 415 2,309,515 2,309,930 242,956 － 118,303 118,303 － $ 2,671,189	December 31,2020 $ 415 2,721,645 2,722,060 242,956 － 118,114 118,114 － $ 3,083,130	March 31,2020
			$ 415 －
			415
			242,956
			2,337,504 117,066
			2,454,570
			81,720
			$ 2,779,661

• A. The Corporation had singed contracts with owners of land in Fuxing section city project and Chenggong section (Sanchongpu section), Sanchong Dist., New Taipei City city project to construct residential buildings.

• B. On May 11, 2020, the Corporation signed a co-construction contract with “CHAINQUI Construction Development Co., Ltd.” to construct commercial and residential buildings in the form of co-construction distribution. In order to participate in the development, the Corporation pledged the Land of Chengzhong section to Jushengsheng Construction Co., Ltd. The Corporation also signed a trust contract with Pauguo Real Estate Management Corporation (Pauguo), registered the trust of land ownership to Pauguo, and entrusted him with the related affairs of trust property. In Septmeber, 2020, because the project had been changed, the Corporation write off the collaterals of land and taken back the property of land.

• In February 2021, the Corporation also signed a trust agreement with Taipei Fubon Commercial Bank Co., Ltd. (“Taipei Fubon”) to entrust it to manage related trust property businesses, and the land ownership of Chengzhong section trust was registered with Taipei Fubon.

• C. For the three-month periods ended March 31, 2021 and 2020, the interest expense capitalized amount was $0 thousand and $4,076 thousand, respectively; and the capitalized interests’ ratio range was 0.96%.

• D. As of March 31, 2021, December 31, 2020 and March 31, 2020, Inventories Construction servers as collaterals for bank loan, please refer to Note 8.

(9) Prepayments

Prepayments
Prepaid rental Other prepaid expense Prepayments for purchasing materials Offset Against Business Tax Payable Prepayments for construction	March 31, 2021 $ 14,156 62,721 184,049 26,977 566,140	December 31, 2020 $ 13,176 75,594 211,193 39,808 558,808	March 31, 2020
			$ 20,683 72,719 220,888 95,016 1,333,374

～17～

Prepayments for investments Others	March 31, 2021 9,860 1,540 $ 865,443	December 31, 2020 9,860 68 $ 908,507	March 31, 2020
			3,860 14,992
			$ 1,761,532

(10) Investments accounted for under the equity method

Investment in associates:

nvestment in associates:
Associates are not individually material Guang-hsin Co., Ltd. Sheng-yuan investment Corp. Li-Xiang Technology Co., Ltd. (Note) Nomura Chung-Hsin Machinery Corporation(Note) Nantong L-S metal forming Co., Ltd Wuxi Hengchi Chem switchgear Co., Ltd. San He Guo Rui Electric Limited Company MIC Ltd. Less: accumulative impairment losses	March 31,2021		December 31,2020 Amount % $ 613,334 24.29% 616,752 29.33% －40.00% －49.00% 142,255 25.00% 38,096 45.00% 33,398 49.00% 26,688 40.00% 1,470,523 － $ 1,470,523	March 31,2020
	Amount	%	Amount	Amount	%
	$ 603,369 608,289 － － 140,721 36,753 32,532 24,928	24.29% 29.33% 40.00% 49.00% 25.00% 45.00% 49.00% 40.00%		$ 224,156 261,785 － － 128,497 29,925 34,474 33,007	24.29% 29.33% 40.00% 49.00% 25.00% 45.00% 49.00% 40.00%
	1,446,592 －			711,844 －
	$ 1,446,592			$ 711,844

Note 1: To reclassify in other non-current liabilities.

Certain investments accounted for under the equity method had not been reviewed by other independent accountant in first quarter of 2021 and 2020.

A.Aggregate information of associates that are not individually material:

Proportionate interest from associates Year of Income Other comprehensive income from associates Total comprehensive income	For the three-month periods ended on March 31, 2021 2020 $( 9,709 ) $( 10,273 ) ( 15,018 ) ( 37,798 ) $( 24,727 ) $( 48,071 )
	2021 $( 9,709 ) ( 15,018 ) $( 24,727 )

B. For the three-month periods ended on March 31, 2021 and 2020, the Group conducted evaluation and impairment test for associates. The result recognized losses on impairment of investment both were $0.

(11)Property, plant and equipment

Assets used by the Group Assets subject to operating leases	March 31, 2021 $ 10,214,410 － $ 10,214,410	December 31, 2020 $ 9,226,449 － $ 9,226,449	March 31, 2020 $ 4,922,921 7,753 $ 4,930,674

～18～

Assets used by the Corporation

For the three-month periods ended on March 31, 2021

										Unfinished
									construction and
									Equipment to		be
		Land		Buildings	Machinery		Transportation	Others		tested			Total
Cost
Beginning Balance
of period	$1,508,150$			3,393,791 $	3,404,727	$	105,461 $	754,966	$	4,962,290		$14,129,385
Additions		－		18,268	27,320		2,185	19,746		1,147,694			1,215,213
Disposals		－		－ (	9,174)		( 35) ( 218)				－	(	9,427)
Reclassifications		－		116	292		－	219		( 135,422)		(	134,795)
Effect of exchange
rate changes		－(		772) (958)			(8) (156)			(	13)	(	1,907)
End Balance of
period	$1,508,150$			3,411,403 $	3,422,207	$	107,603 $	774,557	$	5,974,549		$15,198,469
Accumulated
depreciation and
impairment loss
Beginning Balance
of period	$	－$	( 2,078,075)$ ( 2,240,641)			$	( 78,749)$	( 505,471)$			－$(		4,902,936)
Depreciation		－	(	25,605) (	43,842)		( 2,205)	( 19,667)			－	(	91,319)
Disposals		－		－	9,049		120	117			－		9,286
Effect of exchange
rate changes		－		316	495		9	90			－		910
End Balance of
period	$	－$(		2,103,364)$ (2,274,939)		$	(80,825)$(524,931)$				－$(		4,984,059)
Net Balance	$1,508,150$			1,308,039 $	1,147,268	$	26,778 $	249,626	$	5,974,549		$10,214,410

For the three-month periods ended on March 31, 2020

Cost Beginning Balance of period Additions Disposals Reclassifications Effect of exchange rate changes End Balance of period Accumulated depreciation and	Land	Buildings	Machinery	Transportation	Others	Unfinished construction and Equipment to be tested
	$ 1,507,959	$ 3,351,257	$ 3,243,456	$ 105,013	$ 710,932	$ 681,331
	$ － － － －
impairment loss Beginning Balance of period Depreciation Disposals Effect of exchange rate changes End Balance of period Net Balance
	$ －
	$ 1,507,959	$ 1,393,999	$ 1,068,185	$ 27,651	$ 243,796	$ 681,331

～19～

Assets subject to operating leases

Assets subject to operating	leases
Cost Beginning Balance of period Ending Balance of period Accumulated depreciation and impairment loss Beginning Balance of period Depreciation Ending Balance of period Net Balance	For the three-month periods ended on
	Land $ 4,131 $ 4,131 $ － － $ － $ 4,131

The Group lease land and buildings by operating lease. The lease period is 10 years. The operating lease has ended in October 2020 due to capacity considerations.

(A)Depreciation is calculated on a straight-line basis over estimated useful lives as follows:

Buildings Main buildings 35 to 50 years Electrical and Mechanical Construction, etc. 15 to 30 years Other 5 to 10 years Machinery 2 to 10 years Transportation 3 to 6 years Others 3 to 15 years

(B)As of March 31, 2021, December 31, 2020 and March 31, 2020, property, plant and equipment for guarantee and mortgage, please refer to Note 8.

(C)For the three-month periods ended March 31, 2021 and 2020, the interest expense capitalized amounts both were $0.

(D)For the three-month periods ended March 31, 2021 and 2020, the impairment loss amounts both were $0.

(12)Lease arrangements

• A.Right-of-use assets

Cost Beginning Balance of period Additions Disposals Effect of exchange rate changes Balance, end of period Accumulated depreciation Beginning Balance of period Depreciation Disposals Effect of exchange rate changes Balance, end of period Net Balance	For the three-monthperiods ended on March 31,

～20～

Cost Beginning Balance of period Additions Disposals Reclassifications Effect of exchange rate changes Balance, end of period Accumulated depreciation Beginning Balance of period Depreciation Disposals Reclassifications Effect of exchange rate changes Balance, end of period Net Balance B. Lease liabilities Carrying amount of lease liabilities Current Non-current		For the three-monthperiods ended on March 31,

Ranges of discount rates for lease liabilities are 0.96%~9.75%.

C.Material lease-in activities and terms

The Group leases certain buildings for the use of plants and offices with original lease terms of 1 to 5 years. The Group does not have bargain purchase options to acquire the buildings at the end of the lease terms. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent. As of March 31, 2021, December 31, 2020 and March 31, 2020, the right-of-use assets did not have impairment sight, therefore the Group did not conducted impairment test.

The Group has rent concessions from lessor due to serious economic implications of COVID-19 in 2020. The lessor agree decrease rent without any conditions. The Group has recognized aforementioned rent concessions $17,743 thousand and $0 thousand under deduction of depreciation of right-of-use assets, for the three months ended March 31, 2021 and 2020, respectively.

D.Other lease information

The Group has elected to apply the recognition exemption which qualifies as short-term leases or low-value asset leases did not recognize right-of-use assets and lease liabilities for these leases for the three months ended March 31, 2021 and 2020. The related expenses information was as follows:

Expenses relating to short-term leases or low-value asset leases Total cash outflow for leases	For the three-month periods ended on March 31,	For the three-month periods ended on March 31,
	2021 $ 15,743 $ 350,030	2020
		$ 29,382
		$ 229,444

～21～

(13)Investment property

) Investment property
Cost Beginning Balance of period Ending Balance of period Accumulated depreciation and impairment loss Beginning Balance of period Depreciation Ending Balance of period Net Balance Cost Beginning Balance of period Ending Balance of period Accumulated depreciation and impairment loss Beginning Balance of period Depreciation Ending Balance of period Net Balance	For the three-month periods ended on Land Buildings $ 391,808 $ 393,715 $ 391,808 $ 393,715 $ －$ ( 258,332 － ( 1,563 $ －$ (259,895 $ 391,808 $ 133,820 For the three-month periods ended on
	Land $ 391,808 $ 391,808 $ － － $ － $ 391,808

(A)Depreciation is calculated on a straight-line basis over estimated useful lives as 8 to 50 years.

(B)Rental revenue and direct operating costs / expenses are shown below:

Rental revenue from the investment property Direct operating costs / expenses	For the three-month periods ended March 31, 2021 2020 $ 6,860 $ 5,691 ( 2,436) ( 2,057) $ 4,424 $ 3,634
	2021 $ 6,860 ( 2,436) $ 4,424

(C)The lease terms for the investment property expire between 1 year and 5 years. The lessee had not bargain purchase options as expired lease agreements. As of March 31, 2021, December 31, 2020 and March 31, 2020, the guarantee deposits received for operating leases were $4,172 thousand, $4,172 thousand and $3,460 thousand, respectively.

(D)The future minimum lease payments of non-cancellable operating lease commitments were as follows:

Not later than one year Later than one year but not later than five years Over five years	March 31, 2021 $ 21,924 20,212 2,407 $ 44,543	December 31, 2020 $ 20,786 18,669 2,581 $ 42,036	March 31, 2020
			$ 18,998 24,307 3,103
			$ 46,408

(E)The fair value of the investment property held by the Corporation as at December 31, 2020 and 2017 were $993,708 thousand and $942,738 thousand, which were revalued by independent valuers. As March 31, 2021, December 31, 2020 and March 31, 2020, the management of the Corporation assessed that the fair value of investment property has no significant changes.

～22～

• (F) As of March 31, 2021, December 31, 2020 and March 31, 2020, investment property was used as collaterals for bank loan, please refer to Note 8.

(14)Intangible assets

Intangible assets
			For the three-monthperiods ended							March	31,2021
		Patent			Goodwill		Expertise			Other				Total
Cost
Beginning Balance of period	$	16,962			$	381,343	$	137,102		$	6,929		$	542,336
Additions			－			－		－			1,231			1,231
Effect of exchange rate changes			25			－	(	63	)			－	(	38 )
Ending Balance of period	$	16,987			$	381,343	$	137,039		$	8,160		$	543,529
Accumulated
amortization and
impairment
Beginning Balance of period	$(	10,443		)	$(	20,836 )	$(	123,624	)	$(	3,976 ) $(			158,879 )
Amortization	(		391	)		－	(	1,671	)	(		250 )	(	2,312 )
Effect of exchange rate changes	(		14	)		－		68				－		54
Ending Balance of period	$(	10,848		)	$(	20,836 )	$(	125,227	)	$(	4,226 ) $(			161,137 )
Net balance	$	6,139			$	360,507	$	11,812		$	3,934 $			382,392
				Forthe three-monthperiods endedMarch							31,2020
		Patent			Goodwill		Expertise			Other				Total
Cost
Beginning Balance of period	$	17,592			$	30,923	$	135,489		$	4,202		$	188,206
Additions			－			350,095		－				－		350,095
Effect of exchange rate changes			105			－	(	1,314 )				－	(	1,209 )
Ending Balance of period	$	17,697			$	381,018	$	134,175		$	4,202		$	537,092
Accumulated
amortization and
impairment
Beginning Balance of period	$(	8,986		)	$(	20,836 )	$(	115,606 )		$(	3,552 )		$(	148,980 )
Amortization	(		605	)		－	(	1,647 )		(		76 )	(	2,328 )
Effect of exchange rate changes	(		35	)		－		1,143				－		1,108
Ending Balance of period	$(	9,626		)	$(	20,836 )	$(	116,110 )		$(	3,628 )		$(	150,200 )
Net balance	$	8,071			$	360,182	$	18,065		$		574	$	386,892
Other non-current	assets
		March			31,	2021 December 31, 2020						March 31, 2020
Prepayment for
equipment		$				70,576	$		50,926			$		39,330
Deferred Expense					223,245			217,168						202,210
Long-term lease
payments receivables,
net						60,629			61,518					63,253

(15)Other non-current assets

～23～

				March 31, 2021	March 31, 2021	March 31, 2021		December	December	31, 2020			March 31,	March 31,	2020
Net defined benefit
assets						－				－					28,511
Others					25,530					24,577					21,300
				$	379,980			$		354,189			$	354,604
(16) Short-term debts
			March 31, 2021				December 31, 2020						March 31,	2020
Loan without
security :
Bank overdraft	$				8,357		$			47,973	$				5,944
Credit borrowing				1,861,540					751,357				1,327,081
				1,869,897					799,330				1,333,025
Guaranteed
loan :
Bank borrowings					39,300				127,500					233,299
	$			1,909,197			$		926,830		$		1,566,324
Range of interest rate		0.6744%～1.9%						0.5814%～1.90%			0.5814%～2.7355%
Collateral			Refer to Note 8					Refer to Note 8					Refer to Note 8
(17) Short-term notes and			bills payable
				March 31,	2021		December		31, 2020				March 31,		2020
Dah Chung Bills	$				－		$			－	$				14,500
Ta Ching Bills					－					50,000					－
Mega Bills					－					26,500					－
Less: unamortized
discount					－		(			75)		(			21)
	$				－		$			76,425	$				14,479
Range of interest rate				－				0.72%～1.05%					0.81%～0.93%
Collateral				None				None					None
(18) Other payables
				March 31, 2021				December 31, 2020					March 31, 2020
Other payables	$				185,046		$			10,769	$				13,467
Accrued expenses					544,393					878,317					465,045
	$				729,439		$			889,086	$				478,512
(19) Provisions
				March 31, 2021				December	31, 2020				March 31,		2020
Loss contracts			$		－		$			62	$				227,641
Movements of provisions were as follows:
							For	the three-month periods					ended March 31,
								2021					2020
Balance, beginning	of	period			$					62	$			170,525
Addition (Reduction)					(					62)					57,116
Balance, end of period					$					－	$			227,641

When the Group is expected that the cost of fulfilling the contractual obligation exceeds the expected economic benefit of the contract, the present obligation to recognize the loss contract is provisions.

～24～

(20)Bonds payable

The first domestic unsecured convertible bonds The second domestic unsecured convertible bonds Less：Discount on bonds payable	March 31, 2021 December 31, 2020 $ －$ － 1,500,000 1,500,000 ( 73,638) ( 77,445) $ 1,426,362 $ 1,422,555	March 31, 2020 $ 1,500,000 － ( 86,543) $ 1,413,457

Relevant information on first domestic unsecured convertible bonds issued by the Corporation is as follows:

• (A)The Corporation raised and issued the first domestic unsecured convertible bond, which was approved by the competent authority. The total issue amount is 1,500,000 thousands. The coupon rate is 0%. The issuance period is 5 years. The period is from January 16, 2020 to January 16, 2025. Convertible bonds are settled in cash at once as the maturity of the bond.

• (B) The bondholders of convertible bonds may request the Corporation to convert the convertible bonds into the Corporation’s common stock during at any time from the next day after the three months (April 17, 2020) of issuance of the convertible bonds to the maturity date, except for the period of cessation of transfer according to the regulations or laws. The rights and obligations of the converted common stocks are the same as those of the common stocks.

• (C) The Corporation will change the conversion price due to the anti-dilution clause, and the conversion price will be adjusted according to the pricing model specified in the conversion method. From September 18, 2020, the conversion price of bonds was adjusted from $27.7 to $26.7 per share.

• (D)From the next day of the month of the Corporation’s issuance (April 17, 2020) to the forty days before the end of the issuance period (December 7, 2024), if the conversion price reaches 30% (inclusive) at that time or the outstanding balance of the convertible bonds is less than 10% of the original total issuance, the Corporation may recover all of its bonds in cash at the per value of the bonds.

• (E) According to the regulations of the conversion method, all convertible bonds recovered (including bought back from the securities companies’ business offices), repaid or converted will be cancelled, no longer sold or issued, and the conversion rights attached will be eliminated together.

• (F)Convertible bondholders may ask the Corporation to buy back at the face value plus interest compensation on the date of issuance of three years of maturity (January 16, 2023) and four years of maturity (January 16, 2024). The interest compensation is 100.75% of face value of convertible bond upon 3 years from issue date and 101.00% of face value of convertible bond upon 4 years from the issue date.

issue date.
(G) The Convertible bond is including liability and	equity component. The effective
interest rate of the liability component is initially recognized 1.248%. The equity
component is recognized under capital surplus –	share option.
Proceeds from issuing bonds (minus transaction
costs 5,116 thousand)	$	1,500,134
Equity component	(	80,424 )
Financial liability at fair value through profit and
loss - current	(	9,900 )
Liability component on issue date		1,409,810
Interest calculated at the effective interest rate of
1.248%		90,190
Convertible bond converted into common stock	(	1,500,000 )
Liability component on December 31, 2020	$	－

• (H)The convertible bondholders have converted all the convertible bonds into 56,134 thousand shares in 2020.

～25～

Relevant information on second domestic unsecured convertible bonds issued by the Corporation is as follows:

• (A)The Corporation raised and issued the second domestic unsecured convertible bond, which was approved by the competent authority. The total issue amount is 1,500,000 thousands. The coupon rate is 0%. The issuance period is 5 years. The period is from December 17, 2020 to December 17, 2025. Convertible bonds are settled in cash at once as the maturity of the bond.

• (B) The bondholders of convertible bonds may request the Corporation to convert the convertible bonds into the Corporation’s common stock during at any time from the next day after the three months (March 18, 2021) of issuance of the convertible bonds to the maturity date, except for the period of cessation of transfer according to the regulations or laws. The rights and obligations of the converted common stocks are the same as those of the common stocks.

• (C) The Corporation will change the conversion price due to the anti-dilution clause, and the conversion price will be adjusted according to the pricing model specified in the conversion method. From March 31, 2021, the conversion price of bonds was $61.4 per share.

• (D)From the next day of the month of the Corporation’s issuance (March 18, 2021) to the forty days before the end of the issuance period (November 7, 2025), if the conversion price reaches 30% (inclusive) at that time or the outstanding balance of the convertible bonds is less than 10% of the original total issuance, the Corporation may recover all of its bonds in cash at the per value of the bonds.

• (E) According to the regulations of the conversion method, all convertible bonds recovered (including bought back from the securities companies’ business offices), repaid or converted will be cancelled, no longer sold or issued, and the conversion rights attached will be eliminated together.

• (F)Convertible bondholders may ask the Corporation to buy back at the face value plus interest compensation on the date of issuance of three years of maturity (December 17, 2023) and four years of maturity (December 17, 2024). The interest compensation is 100.75% of face value of convertible bond upon 3 years from issue date and 101.00% of face value of convertible bond upon 4 years from the issue date.

the issue date.
(G) The Convertible bond is including liability and	equity component. The effective
interest rate of the liability component is initially recognized 1.075%. The equity
component is recognized under capital surplus –	share option.
Proceeds from issuing bonds (minus transaction
costs 5,114 thousand)	$	1,500,886
Equity component	(	68,615 )
Financial liability at fair value through profit and
loss - current	(	10,350 )
Liability component on issue date		1,421,921
Interest calculated at the effective interest rate of
1.075%		4,441
Liability component on March 31, 2021	$	1,426,362

• (21)Long-term debts

(A) Long-term notes and bills payable

Mega Bills International Bills Dah Chung Bills China Bills Taiwan Bills Grand Bills	March 31, 2021 $ 750,000 500,000 100,000 300,000 212,000 100,000	December 31, 2020 $ 850,000 500,000 300,000 500,000 306,000 400,000	March 31, 2020
			$ 953,500 300,000 300,000 － 30,000 100,000

～26～

	March 31, 2021	March 31, 2021	December 31, 2020	December 31, 2020	December 31, 2020	March 31, 2020	March 31, 2020	March 31, 2020
Cooperative Bill		150,000			300,000			－
Less: unamortized
discount	(	616 )	(		1,233)	(		579)
	$	2,111,384	$		3,154,767	$		1,682,921
Range of interest rate	0.32%～0.81%		0.40%～0.902%			0.60%～0.902%
Collateral	Refer	to Note 8	Refer		to Note 8	Refer to Note 8
(B) Long-term debts
	March 31, 2021			December 31, 2020			March 31, 2020
Guaranteed loan :
Bank borrowings	$	2,977,100		$	2,757,400		$	1,894,300
Less: Current portion of
long-term liabilities	(	1,731,200 ) (			999,200	)	(	850,000)
	$	1,245,900		$	1,758,200		$	1,044,300
Range of interest rate		0.5182%~1.75%			0.518%~1.75%			0.9664%~1.25%
Collateral		Refer to Note 8			Refer to Note 8			Refer to Note 8

The subsidiaries of the Corporation obtained join loans from Bank of Taiwan (the main bank) and other financial institutions to build solar power-generating infrastructure and related accessory equipments.

According to the loan contract, these subsidiaries shall calculate and maintain a specific financial ratio in accordance with the annual audited financial reports audited by the accountant during the loan period.

(22)Other liabilities

Other liabilities
Net defined benefit liability Deposit in guarantee Credit balance of investment under equity method Custody funds Other	March 31, 2020 $ 10,268 25,634 16,793 125,780 1,665 $ 180,140	December 31, 2020 $ 12,443 30,789 15,996 75,962 1,665 $ 136,855	March 31, 2020
			$ － 22,488 11,372 45,547 1,666
			$ 81,073

(23)Post-employment benefits plans

(A)Defined contribution plans

The employees who were subject to the Labor Standard Law prior to July 1, 2005 were allowed to choose to be subject to the pension mechanism under the Labor Pension Act with their seniority as of July 1, 2005 retained or continue to be subject to the pension mechanism under the Labor Standards Law. The Corporation and its domestic subsidiaries have a defined contribution pension plan in accordance with the Labor Pension Act (LPA), covering all regular employees with R.O.C. nationality. Under the LPA, the Corporation and its domestic subsidiaries makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages at the Bureau of Labor Insurance.

The total expense recognized in profit or loss in consolidated statements of comprehensive income of $18,869 thousand and $17,268 thousand for the three months ended March 31, 2021 and 2020.

(B)Defined benefit plans

The Corporation has a defined benefit plan under the Labor Standards Law that is operated by the government. Under the defined benefit plan, provide benefits based on an employee’s length of service and average monthly salary for the six-month 〜 period prior to retirement. The Corporation contributes an amount equal to 2% 15% of salaries paid each month to a pension fund. The fund is administered by the pension fund monitoring committee and deposited in the Bank of Taiwan. Before the

～27～

end of each year, the Corporation assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Corporation is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Corporation does not have any right to intervene in the investments of the Funds.

The pension expenses for the period were as follows:

Operating cost Marketing expenses General and administrative expenses Research and development expenses	For the three-month periods ended March 31,	For the three-month periods ended March 31,
	2021 $ 761 280 136 40 $ 1,217	2020
		$ 641 296 142 162
		$ 1,241

(24)Equity

(A) Common stock

quity Common stock
Authorized shares (in thousands) Authorized capital Outstanding shares (in thousands) Outstanding common stocks	March 31, 2021 750,000 $ 7,500,000 476,134 $ 4,761,343	December 31, 2020 750,000 $ 7,500,000 476,134 $ 4,761,343	March 31, 2020
			750,000
			$ 7,500,000
			420,000
			$ 4,200,000

The Corporation issued common shares at $10.00 par value and each share has the rights to dividends and to vote.

The convertible bondholders have executed conversion of first convertible bond into 56,134 thousands shares in 2020. The registration of all changes has been completed.

(B) Capital surplus

Additional paid-in capital arising from bond conversion Treasury stock transactions Convertible bonds stock option Other	March 31, 2021 $ 939,167 426,405 68,614 21,253 $ 1,455,439	December 31, 2020 $ 939,167 426,405 68,614 21,289 $ 1,455,475	March 31, 2020 $ － 415,590 80,424 5,434 $ 501,448

The capital surplus arising from paid-in capital in excess of par value (including the excess of the issuance price over par value on issuance of common stocks, premium on convertible bonds and treasury stock transactions) and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Corporation has no accumulated deficit. The amount of capital surplus to be capitalized mentioned above should be fixed the ratio of capital in each year.

(C) Retained earnings and dividend policy

In accordance with the Corporation’s articles of incorporation, when allocating the net profits for each fiscal year, the Corporation shall set aside the following items accordingly: A. To pay taxes; B. To cover accumulated losses, if any; C. To appropriate 10% legal reserve unless the total legal reserve accumulated has already reached the amount of the Corporation’s authorized capital; D. To recognize or reverse special reserve return earnings; E. The board of directors shall propose allocation ratios for any remainder profit after withholding the amounts

～28～

under subparagraphs A to D above plus any unappropriated retained earnings of previous years based on the dividend policy set forth in the Article and propose such allocation ratio at the shareholders’ meeting.

As part of a high-technology industry and as a growing enterprise, the Corporation considers its operating environment, industry developments, and long-term interests of stockholders as well as its programs to maintain operating efficiency and meet its capital expenditure budget and financial goals in determining the stock or cash dividends to be paid. Cash dividends to be distributed should not be less than 10% of the total amount of dividends to be distributed on each year.

The legal reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Corporation incurs no loss.

Pursuant to existing regulations, the Corporation is required to set aside additional special capital reserve equivalent to the net debit balance of the other components of stockholders’ equity. For the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses.

Under Rule No. 1010012865 issued by the FSC on April 6, 2012, the Corporation adjusts all cumulative translation adjustments about $226,678 thousand and unrealized revaluations increment about $632,000 thousand to special reserve for the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses.

The appropriations of 2020 were agreed in the meeting of board of directors on March 30, 2021. The appropriations of 2019 were agreed by stockholders’ meeting on June 22, 2020. The appropriations and dividends per share were as follows:

Legal reserve Cash dividends	Appropriation of 2020 2019 $ 146,453 $ 60,438 $ 1,047,495 $ 504,000	Dividends Per Share (NT$)	Dividends Per Share (NT$)
	2020 $ 146,453 $ 1,047,495	2020 $ 2.2	2019
			$ 1.2

The appropriations of 2020 are to be presented for approval in the shareholders’ meeting on June 28, 2021.

Information on the appropriations agreed by the board of directors’ meeting and stockholders’ meeting are available on the Market Observation Post System website of the Taiwan Stock Exchange.

(D) Other equity items

Other equity items
		For the three-month periods ended March 31, 2021
		Exchange
		differences on		Unrealized gains
		translating of		(losses) on financial		Total
		foreign		assets at FVTOCI
		operations
Balance at beginning of
period	$(	202,855 )	$	741,835	$	538,980
Exchange differences on
translating of foreign
operations	(	1,248 )		－	(	1,248 )
Changes on financial assets
at FVTOCI		－		11,624		11,624
Proportionate interest from
associates and joint
ventures under equity
method		－	(	14,778 ) (		14,778 )
Balance at end of period	$(	204,103 )	$	738,681	$	534,578

～29～

		For the three-month periods ended March 31, 2020	For the three-month periods ended March 31, 2020	For the three-month periods ended March 31, 2020	For the three-month periods ended March 31, 2020	For the three-month periods ended March 31, 2020
		Exchange
		differences on		Unrealized gains
		translating of		(losses) on financial		Total
		foreign		assets at FVTOCI
		operations
Balance at beginning of
period	$(	208,979 )	$	230,677	$	21,698
Exchange differences on
translating of foreign
operations	(	23,408 )		－	(	23,408 )
Changes on financial assets
at FVTOCI		－	(	49,981 ) (		49,981 )
Proportionate interest from
associates and joint
ventures under equity
method		－	(	35,596 ) (		35,596 )
Balance at end of period	$(	232,387 )	$	145,100	$(	87,287 )

(E) Treasury shares

Treasury shares
Reason for reacquisition	In thousands shares For the three-month periods ended March 31, 2021 Shares at beginning of period Additions Disposals Shares at end of period 9,039 － － 9,039 In thousands shares For the three-month periods ended March 31, 2020 Shares at beginning of period Additions Disposals Shares at end of period 9,039 － － 9,039 shares of the Corporation were as follows: Shares(in thousands) Amount Fair Value 2,772 $ 31,340 $ 146,370 6,267 85,540 330,872 $ 116,880 $ 477,242 2,772 $ 31,340 $ 148,588 6,267 85,540 335,885 $ 116,880 $ 484,473 2,772 $ 31,340 $ 61,958 6,267 85,540 140,057 $ 116,880 $ 202,015	In thousands shares For the three-month periods ended March 31, 2021
		Shares at beginning of period Additions Disposals Shares at end of period 9,039 － － 9,039 In thousands shares For the three-month periods ended March 31, 2020		Shares at end of period
Subsidiaries’ Held Reason for reacquisition				9,039
				Shares at end of period
Subsidiaries’ Held The subsidiaries held the March 31, 2021 CHENG-HSIN Engineering & Services CO., LTD Sunrise Tech. Co. Ltd December 31, 2020 CHENG-HSIN Engineering & Services CO., LTD Sunrise Tech. Co. Ltd March 31, 2020 CHENG-HSIN Engineering & Services CO., LTD. Sunrise Tech. Co. Ltd				9,039
			$ 146,370 330,872
			$ 477,242
			$ 148,588 335,885
			$ 484,473
			$ 61,958 140,057
			$ 202,015

～30～

(F) Non-controlling interests

Balance at beginning of period Attributable to Proportionate non-controlling interests : Profit (Loss) for the period Exchange differences on translating of foreign operations Increase (decrease) on non-controlling interests Other Balance at end of period	For the three-month periods ended March 31, 2021 2020 $ 253,252 $ 238,566 1,965 2,571 ( 120 ) ( 2,016 ) － ( 788 ) ( 4 ) 53 $ 255,093 $ 238,386

(25)Operating revenue

Operating revenue
Sales revenue Rental revenue Service revenue Construction revenue Engineering revenue Professional revenue Maintenance revenue Other operating revenue	For the three-month periods ended March 31,
	2021 $ 1,900,633 10,236 491,852 542,808 1,353,393 1,390 377,015 5,386 $ 4,682,713	2020
		$ 819,793 10,032 481,930 － 1,311,633 1,007 354,712 64,058
		$ 3,043,165

A. Disaggregation of revenue from contracts with customers For the three-month periods ended March 31, 2021:

The timing of revenue recognition The revenue recognized at a point in time The revenue recognized over time		Byoperatingsegments	Byoperatingsegments
	ElectricityPower $ 1,694,938 1,240,032 $ 2,934,970	Service $ 17,368 771,177 $ 788,545	Engineeringand other $ 193,713 765,485 $ 959,198	Total
				$ 1,906,019 2,776,694
				$ 4,682,713

For the three-month periods ended March 31, 2020:

ElectricityPower The timing of revenue recognition The revenue recognized at a point in time $ 609,505 The revenue recognized over time 1,292,788 $ 1,902,293 B. Contract balances Contract assets Construction $ Offer of services and maintenances Others Less: Loss allowance			By	operatingsegments	operatingsegments
			Engineering $ 58,253 374,740 $ 432,993		Service Other Total 315 $ 215,778 $ 883,851 482,307 9,479 2,159,314 482,622 $ 225,257 $ 3,043,165 109.12.31 109.03.31 $ 1,277,407 $ 1,112,952 146,584 153,226 43,989 44,608 ( 2,939 ) －	Total
				$		$ 883,851 2,159,314
				$		$ 3,043,165
			110.03.31
		$

～31～

		110.03.31		109.12.31		109.03.31
Contract assets－current	$	1,974,231	$	1,465,041	$	1,310,786
Contract liabilities
Sale of goods	$	376,135	$	319,237	$	206,278
Sale of real estate		218		190,606		492,512
Construction		2,486,970		2,220,671		2,047,270
Others		57,097		57,097		56,514
Contract liabilities－current $		2,920,420	$	2,787,611	$	2,802,574
The changes in the contract		liability balances		primarily result from the timing
difference between the satisfaction of performance obligation and						the customer’s
payment. Other major changes were as follows:

	For the three-month periods ended March 31,	For the three-month periods ended March 31,	For the three-month periods ended March 31,	For the three-month periods ended March 31,
		2021		2020
Contract assets
Level of completion measures change	$	461,197	$(	228,122)
Contract liabilities
Level of completion measures change	$	269,700	$(	349,180)
he Group recognized in revenue	from	the beginning	balance of contract
iabilities was as follows:
	For the three-month periods ended March 31,
		2021		2020
Beginning balance of contract
liabilities
Sale of goods	$	63,017	$	12,347
Offer of services and maintenances		29,810		29,577
	$	92,827	$	41,924

The Group recognized in revenue from the beginning balance of contract liabilities was as follows:

(26)Interest income

nterest income
Bank deposits Financial assets at amortized cost Other	For the three-month periods ended March 31,
	2021 $ 1,141 230 568 $ 1,939	2020
		$ 2,890 － 815
		$ 3,705

(27) (28)	Other income Other Other gains and losses Gain (Loss) on disposal of property, plant and equipment Gain on disposal of investment Gain on Lease modification Net currency exchange gains (losses) Net gains (losses) on financial assets at fair value through profit or loss Other expenditure	For the three-month periods ended March 31, 2021 2020 $ 10,862 $ 18,202 For the three-month periods ended March 31, 2021 2020 $ 61,741 $( 63 ) 3,426 447 105 107 ( 2,645 ) ( 9,880 ) ( 5,696 ) ( 71,724 ) ( 64,713) ( 2,659) $( 7,782) $( 83,772)
		2021 $ 61,741 3,426 105 ( 2,645 ) ( 5,696 ) ( 64,713) $( 7,782)

～32～

(29)Finance costs

inance costs
Interest expenses Interest expenses of lease liabilities Capitalisation of interest	For the three-month periods ended March 31, 2021 2020 $( 17,412 ) $( 15,890 ) ( 8,428 ) ( 4,732 ) － 4,271 $( 25,840) $( 16,351)
	2021 $( 17,412 ) ( 8,428 ) － $( 25,840)

(30)Expenses by nature

Employee benefit expense Salary Labor & health insurance Pension Others Depreciation Amortization	Forthe three-monthperiods endedMarch31,2021	Forthe three-monthperiods endedMarch31,2021	Forthe three-monthperiods endedMarch31,2021	Forthe three-monthperiods endedMarch31,2020	Forthe three-monthperiods endedMarch31,2020	Forthe three-monthperiods endedMarch31,2020
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs $ 276,617 27,175 17,300 18,526 409,151 37,250 $ 786,019	Classified as Operating Expenses	Total
	$ 331,738 33,821 19,741 20,165 414,863 36,901	$ 266,901 15,829 3,110 15,392 25,836 3,189	$ 598,639 49,650 22,851 35,557 440,699 40,090		$ 198,013 15,690 4,245 13,749 19,724 3,026	$ 474,630 42,864 21,546 32,275 428,875 40,276
	$ 857,229	$ 330,257	$ 1,187,486		$ 254,447	$ 1,040,466

• (A)The Corporation shall distribute greater than 1% of current year’s profit as Employees’ bonus and less than 3% of current year’s profit as remuneration to directors after offsetting the cumulative losses, if any. The Corporation recognized accrued Employees’ compensation was $7,776 thousand and $1,466 thousand for the three-month periods ended March 31, 2021 and 2020, respectively. The Corporation recognized accrued remuneration to directors was $15,551 thousand and $2,932 thousand for the three-month periods ended March 31, 2021 and 2020, respectively. These accrued based on aforementioned ratio 1% and 2% of current year’s profit before tax. According to changes in Accounting Estimates, the differences between these amounts and the amounts proposed in the following year are adjusted for in the year of the proposal.

• (B)The appropriations of 2020 and 2019 were agreed in the meeting of board of directors on March 30, 2021 and March 27, 2020, respectively. The employees’ compensation and remuneration to directors were as follows:

Appropriations	For the Year Ended December 31,	For the Year Ended December 31,	For the Year Ended December 31,
	2020 Employees’ compensation Remuneration to directors $ 17,938 $ 35,877	2019
	Employees’ compensation $ 17,938	Employees’ compensation $ 7,990	Remuneration to directors
			$ 15,981

There was no difference between the aforementioned amounts of the employees’ compensation and remuneration to directors approved in the board of directors’ meeting, and the amounts recognized in the financial statements. Information on the compensation to employees, directors and supervisors is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(31)Income tax

(A) Components of income tax expense:

e tax Components of income tax expense:
	For the three-month periods			ended March 31,
		2021		2020
Current tax:
Current tax on profits for the period	$	167,023	$	60,811
Income tax adjustments on prior years		4,257		50
Deferred tax:
Temporary differences	（	19,885	)（	14,822 )
Total income tax expense recognized in
profit or loss	$	151,395	$	46,039

～33～

A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:

Profit before income tax Income tax payable calculated by Statutory tax rate Adjustment to effect of tax: Permanent income tax difference effect Exemption income Loss carry forward Income tax credits Additional tax on un-appropriated earnings Income tax adjustments on prior years Land Value Increment Tax Net differences on deferred income tax Income tax expense recognized in profit or loss	For the three-month periods ended March 31, 2021 2020 $ 767,561 $ 154,356 $ 173,517 $ 46,097 23,845 15,886 （ 27,475 )（ 77 ) （ 13,612 )（ 1,762 ) （ 3,473 )（ 1,343 ) 14,144 2,010 4,257 50 77 － ( 19,885 ) ( 14,822 ) $ 151,395 $ 46,039

The corporate income tax rate in the R.O.C. was 20%. In addition, the rate of the corporate unappropriated earnings was 5%. Taxes generated in other jurisdictions are calculated based on the applicable tax rate in each jurisdiction. Under the amendment to the R.O.C Statute of Industrial Innovation in July, 2019, the amounts of unappropriated earnings in 2018 and thereafter used for building or purchasing specific assets or technologies can qualify for deduction when computing the income tax on unappropriated earnings. When calculating the undistributed earnings tax, the Group only deducts the amount of capital expenditure that has actually been reinvested.

• (B) Deferred income tax assets or liabilities as result of temporary differences The three-month periods ended March 31, 2021 ：

The three-month periods ended	March 31, 2021：
Deferred income tax assets Temporary differences Unrealized reduce inventory to market Unrealized deferred sales profit Other Deferred income tax liabilities Temporary differences Property, plant and equipment Exchange differences on translating foreign operations Others The three-month periods ended Deferred income tax assets Temporary differences Unrealized reduce inventory to market Unrealized loss from disposal of property, plant and equipment	January 1, 2021 Recognized in Profit or Loss March 31, 2021 $ 113,023 $( 7,545 ) $ 105,478 155,413 28,810 184,223 6,564 ( 846) 5,718 $ 275,000 $ 20,419 $ 295,419 $ 286,075 $ － $ 286,075 54,621 － 54,621 108 534 642 $ 340,804 $ 534 $ 341,338 March 31, 2020： January 1, 2020 Recognized in Profit or Loss March 31, 2020 $ 77,386 $ 9,336 $ 86,722 10,976 ( 1,568 ) 9,408	March 31, 2021
		$ 105,478 184,223 5,718
		$ 295,419
		$ 286,075 54,621 642
		$ 341,338
		March 31, 2020

～34～

Unrealized deferred sales profit Other Deferred income tax liabilities Temporary differences Property, plant and equipment Exchange differences on translating foreign operations Others	－ 8,022 $ 96,384 $ 286,075 54,621 57 $ 340,753	11,914 ( 4,691 ) $ 14,991 $ － － 169 $ 169	11,914 3,331
			$ 111,375
			$ 286,075 54,621 226
			$ 340,922

(C) Income tax assessed and approved situations

The Corporation income tax return filings through 2017 had been assessed and approved by tax authority. The balances of the income tax credit had been assessed and approved by tax authority in each year were adjustment.

(32)Earnings per share (EPS)

arnings per share (EPS)
Basic EPS ($): Income attributable to owners of parent Weighted average number of ordinary shares in issue used in calculating basic EPS (in thousands) Basic EPS ($) after tax Diluted earnings per share: Income attributable to owners of parent Assumed conversion of all dilutive potential ordinary share: Effect shares on convertible bonds Income attributable to ordinary shareholders of the parent plus assumed conversion of dilutive potential ordinary shares Weighted average number of ordinary shares in issue used in calculating basic EPS (in thousands) Weighted average number of ordinary shares of convertible bonds (in thousands) Income attributable to weighted average number of ordinary shareholders of the parent plus assumed conversion of dilutive potential ordinary shares (in thousands) Diluted EPS ($) after tax	For the three-month periods ended March 31,
	2021 2020 $ 614,201 $ 105,746 467,096 410,961 $ 1.31 $ 0.26 For the three-month periods ended March 31,	2020
		$ 105,746
		410,961
		$ 0.26
	2021 $ 614,201 3,046 $ 617,247 467,096 24,430 491,526 $ 1.26	2020
		$ 105,746 2,918
		$ 108,664
		410,961 54,152
		465,113
		$ 0.23

(33)Reconciliation of Liabilities from Financing Activities

The three-month periods ended March 31, 2021 ：

Short-term debts Short-term notes and bills payable Lease liabilities Bonds payable	January1,2021 $ 926,830 76,425 2,593,377 1,422,555	Non-cashchanges Cash Flows Others $ 982,367 $ － ( 76,500 ) 75 ( 334,287 ) 583,265 － 3,807	March31,2021
			$ 1,909,197 － 2,842,355 1,426,362

～35～

					Non-cashchanges	Non-cashchanges
	January1,2021		Cash Flows			Others		March31,2021
Long-term liabilities
(including Current
portion of long-term
liabilities)		5,912,167	(	824,300 )		617		5,088,484
Guarantee deposit
received		30,789	(	5,155 )		－		25,634
	$	10,962,143	$(	257,875 )	$	587,764	$	11,292,032
The three-month periods		ended March	31,	2020：
					Non-cashchanges
	January1,2020		Cash Flows			Others		March31,2020
Short-term debts	$	718,945	$	847,379	$	－$		1,566,324
Short-term notes and bills
payable		14,980	(	500 )	(	1 )		14,479
Lease liabilities		1,766,479	(	309,354 )		459,457		1,916,582
Bonds payable		－		1,500,134	(	86,677 )		1,413,457
Long-term liabilities
(including Current
portion of long-term
liabilities)		4,152,417	(	575,200 )		4		3,577,221
Guarantee deposit
received		26,758	(	4,270 )		－		22,488
	$	6,679,579	$	1,458,189	$	372,783	$	8,510,551

7. RELATED PARTY TRANSACTIONS

(1) Related party name and their relationship with the Corporation

Name of related parties Relationship with the Corporation Guang-hsin Co., Ltd. (Guang-hsin) Associates Sheng-yuan Investment Corp. (Sheng-yuan) Associates Li-Xiang Technology Co., Ltd.(Li-Xiang) Associates Nomura Chung-Hsin Machinery Corporation Associates (Nomura Chung-Hsin) Wuxi Hengchi Chem switchgear Co., Ltd. (Wuxi Associates Hengchi) Nantong L-S Metal Forming Co., Ltd. (Nantong L-S) Associates Integrated Manufacturing & Services Co., Ltd. Associates (Integrated M&S) Associates (Reclassified as Fumei Development Co., Ltd. (Fumei) non-current assets as held for sale in March, 2020) Chung Chia International Investment Co., Ltd. Other related parties (Chung Chia) Yoshimoto Trading Co., ltd (Yoshimoto) Other related parties Key management Director, general manager and vice Manager

(2) Trading transactions

A. Sales revenue

ding transactions les revenue
Associates Other related parties	For the three-month periods ended March 31,
	2021 $ 1,089 12,788 $ 13,877	2020
		$ 1,763 12,018
		$ 13,781

The Group sold or provided service to above mentioned associated and related parties was based on mutually agreed terms.

～36～

B. Purchase

rchase
Associates Other related parties	For the three-month periods ended March 31,
	2021 $ 6,174 4,911 $ 11,085	2020
		$ 5,607 3,859
		$ 9,466

The Group purchased from above mentioned associated and related parties was based on mutually agreed terms.

C. Property transactions

The associates have an agreement with the Corporation to perform urban renewal in right transfer, and use the land in the Chenggong section of Sanchong Dist., New Taipei City to acquire about 160 square meters of building in March, 2021.

D. Other

(A) Cost / Expenses attributable

. Other (A) Cost / Expenses attributable	. Other (A) Cost / Expenses attributable	. Other (A) Cost / Expenses attributable
For the three-month periods ended March 31, 2021 2020 Associates $ 1,205 $ 1,242 Other related parties 12 12 $ 1,217 $ 1,254 (B) Other income For the three-month periods ended March 31, 2021 2020 Associates $ 3,937 $ － E. Contract Assets March 31, 2021 December 31, 2020 March 31, 2020 Associates $ 294 $ 1,154 $ 2,345 F. Notes receivable March 31, 2021 December 31, 2020 March 31, 2020 Associates Wuxi Hengchi $ － $ － $ 10,655 . Accounts receivable, net March 31, 2021 December 31, 2020 March 31, 2020 Associates $ 1,758 $ 2,438 $ 20,588 Other related parties 4,063 5,218 3,631 $ 5,821 $ 7,656 $ 24,219 . Accounts payable March 31, 2021 December 31, 2020 March 31, 2020 Associates $ 10,690 $ 12,689 $ 13,681 Other related parties 3,747 3,691 833 $ 14,437 $ 16,380 $ 14,514 I. Others accounts receivable / payable (A) Others receivable (excluding loans to related parties) March 31, 2021 December 31, 2020 March 31, 2020 Associates $ 812 $ 472 $ 1,876 (B) Others payable-other March 31, 2021 December 31, 2020 March 31, 2020 Associates $ 950 $ 950 $ 919
	$ 2,345
	March 31, 2020
	$ 10,655
	March 31, 2020
	$ 20,588 3,631
	$ 24,219
	March 31, 2020
	$ 13,681 833
	$ 14,514
		March 31, 2020
		$ 1,876
		March 31, 2020 $ 919

• E. Contract Assets

• F. Notes receivable

• G. Accounts receivable, net

H. Accounts payable

～37～

J. Prepayment
	March 31,			2021		December 31, 2020	March	31, 2020
Associates	$		62,040			$ 32,708	$	49,100
K. Prepayment for equipment (under other non-current assets)
	March 31,			2021		December 31, 2020	March	31, 2020
Associates	$		12,422			$ －	$		－
L. Contract Liabilities
	March 31,			2021		December 31, 2020	March	31, 2020
Associates	$			25		$ 25	$		－
M. Guarantee deposit received
	March 31, 2021					December 31, 2020	March 31, 2020
Associates	$			－	$ －		$		320
N. Financial Provided (under Other receivable)
	March 31, 2021					December 31, 2020	March 31,		2020
Associates
Guang-hsin	$			43,550		$ 43,550	$		43,550
Sheng Yuan				－		－			27,850
Li-Xiang				12,500		12,500			12,500
Nomura Chung-Hsin				11,400		33,800			11,550
	$			67,450		$ 89,850	$		95,450
Range of Interest rate	1.20%～1.80%					1.20%～2.50%	1.00%～2.50%
						Interest Income
				Forthe three-monthperiods endedMarch31,
					2021		2020
Associates		$				250 $			331
O. Financial Provided (under Short-term debts)
	March 31,			2021		December 31, 2020	March 31, 2020
Associates	$			－		$ －	$	49,800
Range of Interest rate		－				1.70%～1.90%	1.90%～2.15%
						Interest expenses
				For the three-month periods ended March 31,
					2021		2020
Associates			$			－ $			170

P. Dividend income (deduction of investment accounted under the equity method)

Associates Fumei Key management compensation Salaries and other short-term employee benefits Post-employment benefits	For the three-month periods ended March 31, 2021 2020 $ － $ 20,344 For the three-month periods ended March 31,	For the three-month periods ended March 31, 2021 2020 $ － $ 20,344 For the three-month periods ended March 31,
	2021 $ 40,337 281 $ 40,618	2020
		$ 19,567 248
		$ 19,815

(3) Key management compensation

～38～

8. PLEDGED ASSETS

(1) Assets (book values) were pledged for bank loans, engineering guarantee as follows:

Time deposits Deposit with bank Land held for construction site Property, plant and equipment Investment property Treasury shares Guarantee deposit paid	March 31, 2021 $ 264,819 55,538 － 119,967 525,628 301,620 166,578 $ 1,434,150	December 31, 2020 $ 263,441 140,639 － 120,435 527,191 306,190 156,128 $ 1,514,024	March 31, 2020
			$ 244,350 163,181 242,956 121,840 434,572 60,624 158,014
			$ 1,425,537

• (2) The Group provide the 78,793 thousand shares of subsidiaries servers as collaterals for bank loan.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED

CONTRACT COMMITMENTS

Except as note was disclosure, the Group has other significant contract commitments and contingencies were as follows:

• (A) The Group had commitments for engineering contracts guaranteed for a certain period of time after equipments or project completed, delivered and accepted by customers.

• (B) As of March 31, 2021, December 31, 2020 and March 31, 2020, amounts of significant engineering contracts under construction signed were $19,241,553 thousand, $19,212,337 thousand and $18,345,070 thousand; and payments made were $13,120,364 thousand, $12,789,986 thousand and $13,994,195 thousand.

• (C) As of March 31, 2021, December 31, 2020 and March 31, 2020, the unused letters of credit listed were as follows:

				Expressed in thousands	Expressed in thousands	Expressed in thousands
Currency		March 31, 2021		December 31, 2020		March 31, 2020
USD		1,699		1,013		59
Japanese Yen		48,700		31,447		52,071
Euro		－		1,475		－
(D) As of March 31, 2021, December 31, 2020				and March 31, 2020,		the guarantees of
significant engineering	contracts pledged by		banks were as follows:
		March 31, 2021	December 31, 2020		March 31, 2020
Bank of Taiwan	$	1,421,252	$	1,548,962 $		1,232,361
Hua Nan Commercial
Bank		1,395,545		1,488,973		1,208,677
First Bank		64,880		66,046		90,224
DBS Bank		26,610		14,420		－
Union Bank of Taiwan		275,716		118,336		13,272
Mega International
Commercial Bank
Co., Ltd		764,889		746,392		1,015,498
Yuanta Bank		38,257		61,046		31,303
Land Bank of Taiwan		110,000		115,000		115,000
Shanghai Commercial
& Savings Bank, Ltd.		439,278		424,944		282,918
Bank of Panhsin		6,541		37,616		1,678
The Export-Import
Bank of the ROC		39,309		6,541		6,541
	$	4,582,277	$	4,628,276 $		3,997,472

(E) As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group issued notes as guarantee for bank borrowing were $31,919,558 thousand, $32,375,407 thousand and $18,553,630 thousand, respectively.

～39～

• (F) As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group endorsed as guarantees for other companies including related parties were NTD $190,534 thousand, NTD $190,534 thousand and NTD $242,956 thousand, respectively.

• (G) The Corporation had been bid for engineer project of Linyuan plant of CPC Corporation, and signed the contract on April 18, 2000. The Corporation had been completed this project and be accepted by CPC. However, CPC arbitrarily deducted $23,716 thousands from the payment to the Corporation because CPC claimed the Corporation delayed the power generation project, and rejected additional construction payment $15,630 thousands because CPC disagreed this additional construction payment. The Corporation sued CPC for the deduction and requested payment $47,530 thousands with interest. Lawsuits under processing were listed as follows:

• A. According the first judgment of the court, CPC should pay the Corporation $40,964 thousands. CPC did not accept the judgment and appealed the case. The second judgment overruled the amount exceeding $27,980 thousands. Both CPC and the Corporation appealed the case.

• B. According the second judgment of the court, CPC should pay the Corporation $1,645 thousands and overruled the rest.

• C. Both CPC and the Corporation appealed the case. CPC should pay the Corporation a $1,645 thousands was sure and the rest under processing of Taiwan Supreme court.

• D. The Taiwan Supreme court had judgment that CPC Corporation should pay the Corporation other $8,144 thousands with interest and rejected the arbitration request of the Corporation on September 29, 2016. Both CPC and the Corporation appealed the case. Judgment No. 466 of the Supreme Court on 2017, abandoned the original trial that is not conducive to the part of the Corporation, sent back to the High Court more trial, and overruled the CPC Corporation’s appeal. So the judgment No. 113 on 2012 was sure.

• E. The Taiwan Supreme court judgment zhong-shang-geng-3-51 on 2017 had judgment that CPC Corporation should pay the Corporation other $15,382 thousands and rejected the arbitration request of the Corporation. Both of the Corporation and CPC Corporation appealed against the disadvantage. It is processed by Taiwan Supreme court currently.

10. SIGNIFICANT CATASTROPHE

None.

11. SUBSEQUENT EVENTS

None.

12. OTHERS

• (A) Seasonal or cyclical interpretation of interim operations

The Group’s operations are not affected by seasonal or cyclical factors.

• (B) Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance. The Group adopts prudent risk management strategy and performs audit on a regular basis. The capital structure of the Group is determined according to the business development strategies and operational requirements.

～40～

(C) Financial instruments

(1) Categories of financial instruments

ancial instruments Categories of financial instruments
March 31, 2021 Financial assets Measured at FVTPL Mandatorily at FVTPL $ 398,183 Measured at FVTOCI 110,219 Measured at amortized cost (Note 1) 3,774,785 $ 4,283,187 Financial liabilities Measured at FVTPL $ 11,700 Measured at amortized cost (Note 2) 11,651,408 $ 11,663,108	December 31,2020	March 31, 2020
	$ 456,402 98,273 4,445,752	$ 493,379 112,396 2,980,752
	$ 5,000,427	$ 3,586,527
	$ 10,200 12,346,301	$ 16,200 8,717,270
	$ 12,356,501	$ 8,733,470

• Note 1: The amount includes cash and cash equivalents, financial assets measured at amortized cost, notes and accounts receivable (including related parities), other receivables (including related parities), deposit guarantee paid, financial lease receivables, restricted assets and other financial assets measured at amortized cost.

• Note 2: The amount includes short-term debts, short-term notes and bills payable, notes and accounts payable (including related parities), other payables (including related parities),bonds payable, long-term debts, guarantee deposit received and other financial liabilities measured at amortized cost.

• (2) Information of Fair value

• i.Measured without using fair value of financial instruments

The Group’s measured at amortized cost of financial assets / loans and receivables and financial liabilities had carrying values that very close to their fair values.

• ii.Measured by using fair value

The fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable.

• a. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

• b. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

• c. Level 3 inputs are unobservable inputs for the asset or liability.

The following table provides an analysis of financial instruments that are measured at fair value on a recurring basis, grouped into Levels 1 to 3.

March 31, 2021

	March	31, 2021
Fair value on a recurring basis	Level 1 Level 2 $ 7,864 $ － － － 176,887 － － 29,332 $ 184,751 $ 29,332 $ －$ 11,700 $ －$ －	Level 3 $ － 184,100 － － $ 184,100 $ － $ 110,219	Total
			$ 7,864 184,100 176,887 29,332
FVTPL Financial assets Listed stocks Unlisted stocks Beneficiary certificate Financial products FVTPL Financial Liabilities Call / Put option of convertible bond FVTOCI Financial assets Unlisted stocks
			$ 398,183
			$ 11,700
			$ 110,219

～41～

Fair value on a recurring basis		December31,2020	December31,2020	Total $ 7,672 188,878 230,797 29,055 $ 456,402 $ 10,200 $ 98,273 Total $ 89,108 217,220 66,446 120,605 $ 493,379 $ 16,200 $ 112,396
	Level 1 Level 2 $ 7,672 $ － － － 230,797 － － 29,055 $ 238,469 $ 29,055 $ －$ 10,200 $ －$ － March		Level 3 $ － 188,878 － － $ 188,878 $ － $ 98,273 31, 2020
FVTPL Financial assets Listed stocks Unlisted stocks Beneficiary certificate Financial products FVTPL Financial Liabilities Call / Put option of convertible bond FVTOCI Financial assets Unlisted stocks Fair value on a recurring basis
	Level 1 Level 2 $ 89,108 $ － － － 66,446 － 120,605 － $ 276,159 $ － $ －$ 16,200 $ －$ －		Level 3 $ － 217,220 － － $ 217,220 $ － $ 112,396
FVTPL Financial assets Listed stocks Unlisted stocks Beneficiary certificate Financial products FVTPL Financial Liabilities Call / Put option of convertible bond FVTOCI Financial assets Unlisted stocks

The Group held financial assets and liabilities measured at fair value on a recurring basis were no transfers between Level 1 and Level 2 for the three-month periods ended March 31, 2021 and 2020.

Reconciliation of Level 3 fair value measurements of financial instruments

The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTPL. Reconciliations for the three months ended March 31, 2021 and 2020 were as follows:

Balance at beginning of period Increase for the period Disposal for the period Recognized in profit (loss) Recognized in other comprehensive income Effect of exchange rate changes	For the three-month periods ended March 31, 2021 2020 $ 287,151 $ 282,366 － 161,116 ( 4,778 ) ( 65,115 ) 11,624 ( 49,981 ) 322 1,230 $ 294,319 $ 329,616
	2021 $ 287,151 － ( 4,778 ) 11,624 322 $ 294,319

～42～

iii.Valuation techniques and assumptions applied for the purposes of measuring fair value

The fair values of financial assets and financial liabilities are determined as follows:

  - The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active and liquid markets are determined with reference to quoted market prices;

  - The call / put option of convertible bonds adopt the binomial tree model to estimate the fair value. The significant observable input value used is stock price volatility.

  - The financial assets and liabilities without active and liquid markets are determined with estimate of fair value by market method. That based on past financial activities, value of similar companies, technique development of company and its expectations of market development and so on.

  - Derivatives Instruments were evaluated based on evaluation models accepted by market users such as Discount method and option pricing model. Forward exchange contracts are measured using forward exchange rates that are derived from quoted market prices.

• (3)Financial risk management objectives and policies

• The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial position and financial performance.

The important financial activities are reviewed by Board of Directors and Audit Committees in accordance with procedures required by relevant regulations or internal controls. The Group treasury identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters and investment of excess liquidity.

• A. Market risk

The Group’s activities expose it to foreign exchange risk and interest risk, etc. The Group used some of derivative instruments for management there risk. Foreign exchange risk

Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. To manage their foreign exchange risk, the Group applies natural hedges on the foreign currency risk.

The Corporation has no hedge for investments in foreign operations due to these are strategic investment.

Sensitive analyses of foreign exchange risk are calculated for foreign currency items on the end of reporting date.

The significant financial assets and liabilities denominated in foreign currencies were as follows:

(foreign currencies : function currency) Financial assets Monetary items USD:NTD RMB:NTD USD:RMB JPY: NTD Euro:NTD	March 31, 2021 Foreign Currency (In Thousands) Exchange Rate 6,850.76 28.54 14,107.46 4.3529 6,184.01 6.5566 450,044.41 0.2577 1,012.78 33.48	December 31,2020 Foreign Currency (In Thousands) Exchange Rate 8,432.90 28.48 15,509.19 4.3549 4,755.78 6.5398 477,118.21 0.2763 1,814.29 35.02	March 31, 2020	March 31, 2020
	Foreign Currency (In Thousands) 6,850.76 14,107.46 6,184.01 450,044.41 1,012.78	Foreign Currency (In Thousands) 8,432.90 15,509.19 4,755.78 477,118.21 1,814.29	Foreign Currency (In Thousands) 6,788.49 17,324.44 4,198.85 237,498.10 3,950.86	Exchange Rate
				30.23 4.2619 7.0931 0.2788 33.24

～43～

(foreign currencies : function currency) Non-monetary items USD:NTD Financial liabilities Monetary items USD: NTD RMB: NTD USD: RMB JPY: NTD Euro:NTD	March31,2021 Foreign Currency (In Thousands) Exchange Rate 81,274.11 28.54 683.49 28.54 － 4.3529 1,305.75 6.5566 195,243.02 0.2577 64.10 33.48	December31,2020 Foreign Currency (In Thousands) Exchange Rate 80,403.98 28.48 1,784.45 28.48 108.70 4.3549 1,307.76 6.5398 56,692.32 0.2763 95.11 35.02	March31,2020	March31,2020
	Foreign Currency (In Thousands) 81,274.11 683.49 － 1,305.75 195,243.02 64.10	Foreign Currency (In Thousands) 80,403.98 1,784.45 108.70 1,307.76 56,692.32 95.11	Foreign Currency (In Thousands) 78,316.35 129.51 28.70 1,370.44 92,397.87 59.56	Exchange Rate
				30.23 30.23 4.2619 7.0931 0.2788 33.24

When new Taiwan dollars up-valuation with foreign currency about 1%, the incomes are decreased $4,741 thousands and $4,563 thousands, respectively for the three-month periods ended March 31, 2021 and 2020. When the new Taiwan dollars are down-valuation with foreign currency about 1%, its impact amount is the negative amount of the same amount.

Interest rate risk

Interest rate risk is the risk in changes of fair value on financial instruments due to market interest ratio changed. Interest rate risk arises from deposits with banks and long-term or short-term debts.

Sensitive analyses of interest rate risk are determined with exposure interest risk on the end of reporting date and assumption to held one quarter. When the interest ratios are increase 1 yard, the incomes are decreased $9,279 thousands and $1,292 thousands, respectively for the three-month periods ended March 31, 2021 and 2020. When the interest ratios are decrease 1 yard, its impact amount is the negative amount of the same amount.

Other Price risk

The Group is exposed to equity securities price risk because of investments held by the Group and classified on the consolidated balance sheet as at fair value through profit or loss. All of material equity investment should be approved by director of board.

Sensitive analyses of price risk in equity instruments are calculated in changes of fair value on the end of reporting date. When the value of equity instruments are increase 5%, the incomes are increased $9,205 thousands and $10,935 thousands, respectively for the three-month periods ended March 31, 2021 and 2020. When the value of equity instruments are decrease 5%, its impact amount is the negative amount of the same amount.

B. Credit risk

Credit risk refers to the risk that counterparties will default on their contractual obligations resulting in financial loss to the Group. Credit risk arises from receivables from operating activities and deposits with banks, fixed revenues investments and other financial instruments from investing activities. The credit risk of operating and financial are managed individually.

Operating credit risk

The Group has set up the processes about credit risk management for maintenance the quality of accounts receivables.

Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. The Group will use instruments for increasing credit at appropriate time, such as prepayments for purchasing; collateral and guarantee etc. for reduce the credit risk.

～44～

As of March 31, 2021, December 31, 2020 and March 31, 2020, the accounts receivables of customers that are more than 10% of consolidated operating revenues are base on consolidated accounts receivables are 42%, 14% and 34%, respectively. Others accounts receivables are not material for centralized credit risk.

Financial credit risk

The finance department of the Group is responsible for measurement and monitor in credit risk of deposit with bank and other financial instruments. For banks and financial institutions, only independently rated parties with investing grade, corporation organization and governments are accepted. Therefore, there are not material credit risks.

Liquidity risk Management

The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring the use of loan credits and the compliance to loan contracts.

The tables below have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date the Group can be required to pay.

Non derivatives financial liabilities : Short-term debts Accounts and notes payable (including related parties) Other accounts payable (including related parties) Lease liabilities Current portion of long-term liabilities Bonds payable Long-term debts Non derivatives financial liabilities : Short-term debts Short-term notes and bills payable Accounts and notes payable (including related parties) Other accounts payable (including related parties) Lease liabilities Current portion of long-term liabilities Bonds payable Long-term debts			March 31, 2021		Total $ 1,909,197 2,471,342 730,389 2,842,355 1,731,200 1,426,362 3,357,284 $ 14,468,129
	Less Than 1 Year $ 1,909,197 2,471,342 730,389 1,158,043 1,731,200 － － $ 8,000,171	Between 2 Year and 3 Years Between 4 Years and 5 Years $ － $ － － － － － 986,791 303,362 － － － 1,426,362 3,357,284 － $ 4,344,075 $ 1,729,724 December31,2020		Over 5 Years $ － － － 394,159 － － － $ 394,159
	Less Than 1 Year $ 926,830 76,425 3,087,499 890,036 933,589 999,200 － － $ 6,913,579	Between 2 Year and 3 Years $ － － － － 973,367 － － 4,912,967 $ 5,886,334	Between 4 Years and 5 Years $ － － － － 291,134 － 1,422,555 － $ 1,713,689	Over 5 Years $ － － － － 395,287 － － － $ 395,287	Total
					$ 926,830 76,425 3,087,499 890,036 2,593,377 999,200 1,422,555 4,912,967
					$ 14,908,889

～45～

Non derivatives financial liabilities : Short-term debts Short-term notes and bills payable Accounts and notes payable (including related parties) Other accounts payable (including related parties) Lease liabilities Current portion of long-term liabilities Bonds payable Long-term debts			March31,2020
	Less Than 1 Year $ 1,566,324 14,479 1,643,869 479,431 969,185 850,000 － － $ 5,523,288	Between 2 Year and 3 Years $ － － － － 748,273 － － 2,727,221 $ 3,475,494	Between 4 Years and 5 Years Over 5 Years $ －$ － － － － － － － 175,807 23,317 － － 1,413,457 － － － $ 1,589,264 $ 23,317		Total
					$ 1,566,324 14,479 1,643,869 479,431 1,916,582 850,000 1,413,457 2,727,221
					$ 10,611,363

13. ADDITIONAL DISCLOSURES

• (1)Significant transactions information and (2) Information on investees:

• (A)Financing provided: attached table 1.

• (B)Endorsement/guarantee provided: attached table 2.

• (C)Marketable securities held: attached table 3.

• (D)The cumulative buying or selling amount of one specific security exceeding of $300 million or 20 percent of the paid-in capital: None.

• (E)Acquisition of individual real estates at costs exceeding of $300 million or 20% of the paid-in capital: None.

• (F)Dispose of individual real estates at costs exceeding of $300 million or 20% of the paid-in capital: None.

• (G)Total purchase from or sale to related parties amounting to exceeding of $100 million or 20% of the paid-in capital: attached table 4.

• (H)Receivables from related parties amounting to exceeding of $100 million or 20% of the paid-in capital: attached table 5.

• (I)Derivative financial transactions: None.

• (J)Intercompany relationships and significant transactions: attach table 6.

• (K)Names, locations, and related information of investees over which the company exercises significant influence: attach table 7.

(3)Information of investment in China

• (A)Names, main businesses, total paid-in capital, method of investment, investment out / in flows, percentage of ownership, investment profit (loss) of this period, Book value, accumulated amount of investment income remitted back to Taiwan and upper limit on investment in China. (Table 8)

• (B)Significant inter-company transactions, price, credit term, unrealized profit or loss and other related information for understanding the effect of investment in China. (Table 6)

• (4) Information of major shareholders: attach table 10.

14. SEGMENT FINANCIAL INFORMATION

(1) Operation segment

The Group provides the reportable segment as follows.

• 1.Electricity power ： The segment was engaged in manufactures electricity equipment and various types of substation construction etc.

～46～

• 2.Service ： The segment was be entrusted the management and operation of public and private parking lot.

• Engineering and other ： The segment provides engineering contraction which integrates water and electricity, fire control system etc.

• (2) The segment financial information please refers to attach table 9.

• (3) The financial information of geographical areas: The Group has not any significant foreign operation segments.

～47～

Atta	ched table 1			Chung-Hsin Electric For the I	Chung-Hsin Electric For the I	and Machinery Manufacturing Corp. and Subsid Financing provided details three-month periods ended March 31, 2021 n Thousands of New Taiwan Dollars	and Machinery Manufacturing Corp. and Subsid Financing provided details three-month periods ended March 31, 2021 n Thousands of New Taiwan Dollars	and Machinery Manufacturing Corp. and Subsid Financing provided details three-month periods ended March 31, 2021 n Thousands of New Taiwan Dollars	and Machinery Manufacturing Corp. and Subsid Financing provided details three-month periods ended March 31, 2021 n Thousands of New Taiwan Dollars	iaries
							h periods ende s of New Taiw
No	Financing company’s name	Counter party	Financial statement account	Related Party	Maximum balance for the period	Ending balance (2)	Amounts of loan (3)	Interest Rate (%)	Type of financing (1)	Transaction amount	Reasons for short-term financing	Allowance for bad debt	Coll	ateral	Financing limit for each borrowing company	Financing company’s financing amountlimit
													Item	Value
0	Chung-Hsin Electric and Machinery Manufacturing Corp	CHEM ENERGY SA PROPRIETARY LIMITED	Other Receivable	Yes	46,755	46,755	46,755	－	1	46,755	Business Dealings	－	－	－	(12) 46,755	(12) 2,252,011
		EGME ENERGY ECOSYSTEMS (INDIA)PRIVATE LIMITED	Other Receivable	Yes	6,068	6,068	6,068	－	1	6,068	Business Dealings	－	－	－	(12) 6,068	(12) 2,252,011
		CHEM FUEL CELL (M) SDN. BHD	Other Receivable	Yes	2,082	2,082	2,082	－	1	2,082	Business Dealings	－	－	－	(12) 2,082	(12) 2,252,011
		San-feng construction Co., Ltd.	Other Receivable	Yes	100,000	100,000	－	1.10%	2	－	Operation needed	－	－	－	(11) 2,000,000	(4) 4,504,023
		Tian Chong Energy Co., Ltd.	Other Receivable	Yes	200,000	200,000	－	1.10%	2	－	Operation needed	－	－	－	(11) 2,000,000	(4) 4,504,023
		Tian Peng Energy Co., Ltd.	Other Receivable	Yes	200,000	200,000	－	1.10%	2	－	Operation needed	－	－	－	(11) 2,000,000	(4) 4,504,023
		Tian Cin Energy Co., Ltd.	Other Receivable	Yes	100,000	100,000	－	1.10%	2	－	Operation needed	－	－	－	(11) 2,000,000	(4) 4,504,023
1	CHENG-HSIN Engineering & Services CO.,LTD	Wei-Chi Precision Co., Ltd.	Other Receivable	No	3,427	3,427	3,427	3.00%	2	－	Operation needed	3,427	Check	4,030	(7) 45,000	(4) 279,459
		Li-Xiang Technology Co., Ltd.	Other Receivable	Yes	12,500	12,500	12,500	1.80%	2	－	Operation needed	－	Check	12,500	(7) 45,000	(4) 279,459
		San-feng construction Co., Ltd.	Other Receivable	Yes	45,000	45,000	－	1.60%	2	－	Operation needed	－	－	－	(7) 45,000	(4) 279,459
2	Sunrise Tech. Co. Ltd (Sunrise investment Corp. change its name)	Guang-Hsin engineering & services Co., Ltd.	Other Receivable	Yes	45,000	45,000	43,550	1.20%	2	－	Operation needed	－	Check	45,000	(7) 45,000	(4) 250,359
		Shengyi electric and machinery Co.	Other Receivable	No	10,000	10,000	10,000	1.60%	2	－	Operation needed	－	Note	30,000	(7) 45,000	(4) 250,359
		Etrovision technology Co., Ltd.	Other Receivable	Yes	45,000	30,000	25,175	1.20%	2	－	Operation needed	－	－	－	(7) 45,000	(4) 250,359
		Nomura Chung-Hsin machinery Corporation	Other Receivable	Yes	39,000	39,000	11,400	1.20%	2	－	Operation needed	－	Note	39,000	(7) 45,000	(4) 250,359
		Sheng Yuan investment Corp.	Other Receivable	Yes	30,000	－	－	1.20%	2	－	Operation needed	－	－	－	(7) 45,000	(4) 250,359
3	San-feng construction Co., Ltd.	FinData Technology Corp.	Other Receivable	Yes	55,000	55,000	55,000	1.55%	2	－	Operation needed	－	Note	55,000	(8) 100,000	(5) 276,482
4	CHEM Corp.	Chemly power equipment Corp.	Other Receivable	Yes	14,270	14,270	14,270	0.50%	2	－	Operation needed	－	－	－	(6) 208,002	(4) 832,009
		Archers Systems Co., Ltd.	Other Receivable	No	2,255	2,255	2,255	5.00%	2	－	Operation needed	2,255	Note	2,460	(6) 208,002	(4) 832,009
5	Chemly power equipment Corp.	Chem-tech (Shang-hai) Corp.	Other Receivable	Yes	4,394	4,353	4,353	1.50%	2	－	Operation needed	－	－	－	(9) 31,658	(4) 42,211
		Chung-Hsin Power Systems (Shenyang) Inc.	Other Receivable	Yes	13,182	13,059	13,059	1.60%	2	－	Operation needed	－	－	－	(9) 31,658	(4) 42,211
		Jiangsu Fumei Landscape & Real Esta Development Co.,Ltd.	Other Receivable	Yes	8,788	8,706	8,706	1.50%	2	－	Operation needed	－	－	－	(9) 31,658	(4) 42,211
6	CHEM J-V Limited	Chung-Hsin Power Systems Corp.	Other Receivable	Yes	13,182	13,059	13,059	1.50%	2	－	Operation needed	－	－	－	(10) 47,526	(4) 126,735
7	CHEM Power Limited	Chung-Hsin Power Systems (Shenyang) Inc.	Other Receivable	Yes	85,620	85,620	72,492	0.50%	2	－	Operation needed	－	－	－	(6) 164,237	(4) 656,947
		Jiangsu Fumei Landscape & Real Esta Development Co.,Ltd.	Other Receivable	Yes	13,182	13,059	13,059	1.50%	2	－	Operation needed	－	－	－	(6) 164,237	(4) 656,947

(1)Type of financing: 1 business dealings 2 necessary for short term financing.

(2)The amounts of finance were approved by resolution of directors.

(3)The actual amounts of loan happened.

(4)Not exceeding 40% of the net equity current period.

(5)Not exceeding 50% of the net equity current period.

(6)Finance of single company limited to the whole year business transaction amount of latest year. Short-term financing did not exceeding 10% of the net equity current period.

～48～

• (7)Not exceeding NT$ 45,000 thousands for each counter party.

(8)Not exceeding NT$ 100,000 thousands for each counter party.

(9)Not exceeding 30% of the net equity current period

(10)Not exceeding 15% of the net equity current period for each counter party.

(11) Not exceeding NT$2,000,000 thousands for each counter party.

(12)Finance of single company limited to the whole year business transaction amount of latest year. Short-term financing did not exceeding 20% of the net equity current period or the amount of business dealings. The amount of business dealings is the higher of purchase or sales.

～49～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Endorsement / Guarantee provide

For the three-month periods ended March 31, 2021

In Thousands of New Taiwan Dollars, except as otherwise indicated

Atta	ched table 2
No	Endorsement / guarantee Provider	Endorsement / guarantee for		Amount limit on each endorsement / guarantee (2)	Maximum balance of endorsement / guarantee during the period	Ending balance of endorsement / guarantee	Amount limit on each endorsement / guarantee	Endorsement / guarantee amount backed by property	Accumulated amount of endorsement / guarantee to net equity (%)	Maximum endorsement / guarantee amount allowed (1)	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements /guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China
		Name	Relation
0 0 0 0 0 0 0 0 0 0 0	Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp.	Chung-Hsin Power Systems (shengyang) Inc. Global-Entech Co., Ltd. CHENG-HSIN Engineering & Services CO.,LTD San-feng construction Co., Ltd. Wha Dun Building Management Service Co., Ltd. Bao-Sheng Global Co.,Ltd. Tian Chong Energy Co., Ltd. Tian Peng Energy Co., Ltd. Tian Cin Energy Co., Ltd. Matian Optoelectronics Co., Ltd. Tagumo Technology Co., Ltd.	2 2 2 2 2 2 2 2 2 1 1	16,890,085 16,890,085 16,890,085 16,890,085 16,890,085 16,890,085 16,890,085 16,890,085 16,890,085 16,890,085 16,890,085	US 39,325 (1,300thousands) 30,000 1,000,000 360,000 10,000 460,000 5,597,587 4,223,898 214,000 95,180 95,354	US 37,102 (1,300 thousands) 10,000 1,000,000 360,000 10,000 460,000 1,050,000 888,000 214,000 95,180 95,354	US 37,102 (1,300 thousands) 9,203 149,021 314,990 1,752 177,283 1,028,860 751,943 － 95,180 95,354	37,102 30,000 1,000,000 360,000 10,000 460,000 1,030,288 774,245 － － －	0.33% 0.09% 8.88% 3.20% 0.09% 4.09% 9.32% 7.89% 1.90% 0.85% 0.85%	22,520,114 22,520,114 22,520,114 22,520,114 22,520,114 22,520,114 22,520,114 22,520,114 22,520,114 22,520,114 22,520,114	Yes Yes Yes Yes Yes Yes Yes Yes Yes No No	No No No No No No No No No No No	Yes No No No No No No No No No No
					Total 12,125,344	Total 4,219,636	Total 2,660,668		37.49%
1 1	CHENG-HSIN Engineering & Services CO.,LTD CHENG-HSIN Engineering & Services CO.,LTD	San-feng construction Co., Ltd. Chung-Hsin Electric and Machinery Manufacturing Corp.	3 4	(3) 2,252,011 (3) 2,252,011	48,000 3,456	48,000 3,456	40,000 3,456	－ －	(5) 0.43% (5) 0.03%	(4) 5,630,028 (4) 5,630,028	No No	No Yes	No No

(1)Not exceeding 2 times of the Corporation’s current year net equity.

(2)Not exceeding 1.5 times of the Corporation’s net equity for each company. Exclude the entity which the corporation owned 90% of voting shares directly or indirectly and the guarantee amount could not exceed 10% of the Corporation’s net equity. However, the companies that the Corporation directly or indirectly holds 100% of the voting shares are not limited to this.

(3)Not exceeding 20% of the parent company’s current year net equity for each entity.

(4)Not exceeding 50% of the parent company’s current year net equity.

(5)The percentage of accumulate endorsement and guarantee amount of CHENG-HSIN Engineering & Services CO., LTD.

(6)The percentage of accumulate endorsement and guarantee amount of San-feng construction Co., Ltd.

(7)Provide notes as a guarantee.

～50～

• (8)The relative between Endorsement / Guarantee providing are as follows: a. business between companies; b. direct investment exceeding 50% of the subsidies; c. investment exceeding 50% of the subsidies by parent and its other subsidies; d. direct investment exceeding 90% of parent company by the company and its subsidies; e. taking insurances to each other under engineering contract; f. shareholder’s guarantee by shares of the company due to common investment relationship; g. in the same industry, the Consumer Protection Law provides performance guarantees and joint guarantees for pre-sale house sales contracts.

～51～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Marketable securities held(excluding subsidiaries and associates) March 31, 2021

In Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 3-1

Attached table 3-1			March 31, 2021 In Thousands of New Taiwan Dollars, except	as otherwise indicated	as otherwise indicated	as otherwise indicated
Holding company	Type of marketable security/ Name of marketable security	Relation with the Company	Financial statement account	Ending balance				Remark
				Shares	Book value	(%)	Market value(Note)
The Corporation	Stock Pacific construction Co., Ltd. Ascent solar Beneficiary Certificate Schroder International Selection Fund Emerging Markets A Accumulation Subtotal	－ － －	Current financial assets at FVTPL Current financial assets at FVTPL Current financial assets at FVTPL	770,124 8,400 100,000.00	7,855 9 4,598	0.20% －	7,855 9 4,598
					12,462		12,462
	Stock Powerchip Technology Corporation Powerchip Semiconductor Manufacturing Corp Quan-you technology Co., Ltd Xian-han Co., Ltd. Cotech engineering Corp Subtotal	－ － － － －	Non-current financial assets at FVTPL Non-current financial assets at FVTPL Non-current financial assets at FVTPL Non-current financial assets at FVTPL Non-current financial assets at FVTPL	675,197 1,236,531 1,200,000 8,373,688 2,093,191	－ 27,326 － 40,232 －	0.05% 0.04% － 19.94% 2.62%	－ 27,326 － 40,232 －	Preferred stock
					67,558		67,558
CHENG-HSIN Engineering & Services CO.,LTD	Stock Chung-hsin E&M manufacturing Corp. Cotech engineering Corp. Subtotal	Parent company －	Non-current financial assets at FVTOCI Non-current financial assets at FVTPL	2,772,162 3,924,926	146,370 －	0.58% 4.91%	146,370 －	2,712,500 shares as collateral
					146,370		146,370
Wha Dun Building Management Service Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	25,357.80	344	－	344
Global-Entech Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	658,268.30	8,942	－	8,942
Chung- Hsin Energy Tech. Inc.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	343,289.40	4,663	－	4,663
Tian Chong Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	1,860,786.50	25,276	－	25,276
Tian Peng Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	1,371,300.00	18,627	－	18,627
Tian Cin Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	1,121,976.20	15,240	－	15,240
Tian Fu Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	295,013.50	4,007	－	4,007
CHEM Corp.	Equity AblyEnterprise Limited	－	Non-current financial assets at FVTPL	US 9,969	214	19.94%	214
CHEM J-V Limited	Equity Toko electric(Suzhou)Co.,Ltd.	－	Non-current financial assets at FVTPL	US 1,048,000	22,702	18.99%	22,702

～52～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Marketable securities held(excluding subsidiaries and associates) March 31, 2021

In Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 3-2
Holding company	Type of marketable security/ Name of marketable security	Relation with the Company	Financial statement account	Ending balance				Remark
				Shares	Book value	(%)	Market value(Note)
ME ENERGY SYSTEMS LIMITED	Stock ELEMENT ONE LLC Equity Shanghai Shunhua New Energy System Co.,Ltd.	－ －	Non-current financial assets at FVTPL Non-current financial assets at FVTOCI	428,572 US 5,371,416	－ 110,219	19.65% 6.62%	－ 110,219
Sunrise Tech. Co. Ltd (Sunrise investment Corp. change its name)	Beneficiary Certificate Fu Hua Youli Currency Fund Stock Chung-hsin E&M manufacturing Corp. Zhengyu technology engineering Co., Ltd. Hwa-sheng venture capital Co., Ltd. Kaohsiung rapid transit Co., Ltd. NEXTLINK Inc. An Qing Innovation Investment Co., Ltd. Subtotal	－ Parent company － － － － －	Current financial assets at FVTPL Non-current financial assets at FVTOCI Non-current financial assets at FVTPL Non-current financial assets at FVTPL Non-current financial assets at FVTPL Non-current financial assets at FVTPL Non-current financial assets at FVTPL	7,007,801 6,266,514 3,256,550 6,579 2,572,127 6,522,129 1,557,000	95,190 330,872 52,326 656 18,980 9,563 12,100	－ 1.32% 13.28% 4.17% 0.92% 9.03% 3.37%	95,190 330,872 52,326 656 18,980 9,563 12,100	3,000,000 shares as collateral
					519,687		519,687
Nantong Shengyi precision machineryCo.	Financial products such as fixed profits of RMB,etc	－	Non-current financial assets at FVTPL	－	29,332	－	29,332

～53～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Purchase from or sale to related parties amounting exceeding $100 million or 20% of the Company paid-in capital For the three-month periods ended March 31, 2021

In Thousands of New Taiwan Dollars

Attached table 4
Company Name	Related Party	Nature of Relationships	Transaction Details				Differences in transaction terms compared to third party transactions		Notes/Accounts Receivable (Payable)		Remark
			Purchase/ Sales	Amount	Percentage of total purchase or sales	Credit term	Unit Price	Credit term	Balance	Percentage of total Notes/Accounts Receivable (Payable)
The Corporation	Tian Chong Energy Co., Ltd.	Investment using equity method	Sales	689,582	13.61%	－	－	－	Accounts receivable 1,913,027 Contract assets 651,706	36.60% －
The Corporation	Tian Peng Energy Co., Ltd.	Investment using equity method	Sales	401,307	7.92%	－	－	－	Accounts receivable 1,279,662 Contract assets 274,739	24.49% －

～54～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Receivables from related parties amounting to exceeding of $100 million or 20% of the paid-in capital March 31, 2021

In Thousands of New Taiwan Dollars

Attached table 5
Company Name	Related Party	Nature of Relationships	Ending balance of accounts receivable (Note)	Turnover rate	Overdue		Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
The Corporation	Tian Cin Energy Co., Ltd.	Investment using equity method	Accounts receivable 220,935 Contract assets 165,945	1.85	－	－	140,040	－
The Corporation The Corporation	Tian Chong Energy Co., Ltd.	Investment using equity method	Accounts receivable 1,913,027 Contract assets 651,706	1.72	－	－	790,896	－
The Corporation	Tian Peng Energy Co., Ltd.	Investment using equity method	Accounts receivable 1,279,662 Contract assets 274,739	1.26	－	－	730,631	－

～55～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Intercompany relationships and significant transactions

For the three-month periods ended March 31, 2021 In Thousands of New Taiwan Dollars

In Thousands of New Taiwan Dollars	In Thousands of New Taiwan Dollars	In Thousands of New Taiwan Dollars	In Thousands of New Taiwan Dollars
Attached table 6-1
No (1)	Company name	County party	Nature of relationship (2)		Intercompany Transaction
				Financial statement **item **	Amount (over 10 million)	Term	Percentage of consolidate total gross sale or total assets(%)(3)
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation The Corporation	Chem Energy SA (Pty) Ltd. H2 PowerTech, LLC. H2 PowerTech, LLC. Tian Cin Energy Co., Ltd. Tian Cin Energy Co., Ltd. Tian Cin Energy Co., Ltd. Tian Cin Energy Co., Ltd. Tian Chong Energy Co., Ltd. Tian Chong Energy Co., Ltd. Tian Chong Energy Co., Ltd. Tian Chong Energy Co., Ltd. Tian Chong Energy Co., Ltd. Tian Peng Energy Co., Ltd. Tian Peng Energy Co., Ltd. Tian Peng Energy Co., Ltd. Tian Peng Energy Co., Ltd. Tian Peng Energy Co., Ltd. Chung-Hsin Power Systems Corp. Jiangsu Chung-Hsin Precision Machinery Co., Ltd. Jiangsu Chung-Hsin Precision Machinery Co., Ltd. Jiangsu Chung-Hsin Precision Machinery Co., Ltd. Bao-Sheng Global Co., Ltd. Bao-Sheng Global Co., Ltd. San-feng construction Co., Ltd. San-feng constructionCo.,Ltd.	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1	Other Receivables Cost and Expense Prepayment Accounts Receivable Contract assets Sales Engineering revenue Accounts Receivable Contract assets Sales Engineering revenue Professional revenue Accounts Receivable Contract assets Sales Engineering revenue Professional revenue Purchases Purchases Contract liabilities Accounts Payable Cost and Expense Accounts Payable Prepayment Cost	46,755 23,927 15,514 220,935 165,945 29,617 60,526 1,913,027 651,706 326,715 342,864 20,000 1,279,662 274,739 119,501 265,802 16,000 35,367 64,473 12,274 27,382 31,204 18,472 32,143 37,013	5 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4	0.16% 0.51% 0.05% 0.73% 0.55% 0.63% 1.29% 6.36% 2.17% 6.98% 7.32% 0.43% 4.26% 0.91% 2.55% 5.68% 0.34% 0.76% 1.38% 0.04% 0.09% 0.67% 0.06% 0.11% 0.79%
1	CHENG-HSIN Engineering& Services CO.,LTD	Wha Dun BuildingManagement Service Co.,Ltd.	3	Accounts Payable	11,624	6	0.04%
2	San-feng constructionCo.,Ltd.	FinDataTechnology Corp.	3	Other Receivables	55,262	5	0.18%
3	SunriseTech. Co.Ltd (Sunriseinvestment Corp. changeitsname)	Etrovisiontechnology Co.,Ltd.	3	Other Receivables	25,193	5	0.08%
4	ChemCorp. Samoa	Chemly powerequipment Corp.	3	Other Receivables	14,631	5	0.05%
5 5	CHEM J-V Limited CHEMJ-VLimited	Chung-Hsin Power Systems Corp. Nantong Shengyiprecision machinery Co.	3 3	Other Receivables AccountsReceivable	13,141 44,890	5 6	0.04% 0.15%

～56～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Intercompany relationships and significant transactions

For the three-month periods ended March 31, 2021 In Thousands of New Taiwan Dollars

		In Thousands of New Taiwan Dollars	In Thousands of New Taiwan Dollars
Attached table 6-2
No (1)	Company name	County party	Nature of relationship (2)		Intercompany Transaction
				Financial statement item	Amount (over 10 million)	Term	Percentage of consolidate total gross sale or total assets(%)(3)
6	Chemly powerequipment Corp.	Chung-Hsin PowerSystems (Shenyang)Inc.	3	Other Receivables	13,065	5	0.04%
7 7 7	Jiangsu Chung-Hsin Precision Machinery Co., Ltd. Jiangsu Chung-Hsin Precision Machinery Co., Ltd. Jiangsu Chung-Hsin Precision Machinery Co.,Ltd.	Chung-Hsin Power Systems Corp. Chung-Hsin Power Systems Corp. Nantong Shengyiprecision machinery Co.	3 3 3	Sales Accounts Receivable AccountsPayable	11,422 18,405 12,754	6 6 6	0.24% 0.06% 0.04%
8 8	CHEM Power Limited CHEM Power Limited	Chung-Hsin Power Systems (Shenyang) Inc JiangsuFumei Landscape &Real EstaDevelopment Co.,Ltd.	3 3	Other Receivables Other Receivables	73,993 13,280	5 5	0.25% 0.04%

(1)Inter Company transaction information：1. Parent company is represented by 0. 2. Subsidiaries are represented by sequel numbers.

(2)Transaction relationship：1. Parent to subsidiaries 2.Subsidiaries to Parents 3.Subsidiaries to Subsidiaries

(3)Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

(4)Transaction terms were agreed by both parties.

(5)Financing with related parties are processed according to the regulations and rules accordingly.

(6)Sale/purchase terms and price were agreed by both parties.

～57～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Names, locations, and related information of investees over which the company exercises significant influence (excluding information of China) For the three-month periods ended March 31, 2021

In Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 7	-1
Investor	Investee	Location	Business	Original investment		Ending balance			Profit (loss) of investee in this period	Investment profit/loss recognized in thisperiod	Remark
				Ending balance	Beginning balance	Share	%	Book value
The Corporation	CHEM USA CORPORATION	USA	Selling and assembly of note book and computers	34,753	34,753	1,300,000	100.00%	61,657	5,653	5,653	Exchange differences on translating foreign operations $148	Subsidiary
	Guang-Hsin engineering & services Co., Ltd.	Taiwan	1. Telecommunication equipment wholesale, retail and installment 2. Communication engineering 3. Computer equipment installment 4. Information software service	33,120	33,120	5,678,623	24.29%	603,369	(10,638)	(2,584)	Unrealized loss of financial assets $(7,381)	－
	Sunrise Tech. Co. Ltd (Sunrise investment Corp. change its name)	Taiwan	General investment	262,000	262,000	33,955,200	100.00%	282,565	(7,451)	(7,451)	Treated as treasury stock $(330,868) Unrealized loss of financial assets $(5,013)	Subsidiary
	CHENG-HSIN Engineering & Services CO.,LTD	Taiwan	1. Environmental protection incinerator set up and maintenance 2.Electric power and monitor equipment 3. Plan, design and maintenance for electricity, water and fire fighting system of building and factory	150,006	150,006	47,272,341	100.00%	556,840	11,767	11,767	Treated as treasury stock $(146,370) Unrealized loss of financial assets $(2,218) Unrealized gains and losses of intercompany transactions $116	Subsidiary
	Global-Entech Co., Ltd.	Taiwan	1. Air pollution sample testing 2. Waste water and environmental water testing 3. Noise testing 4. Evaluation of environmental affection	15,869	15,869	1,699,705	99.98%	27,356	1,419	1,419	－	Subsidiary
	Tone-zoom industry Co., Ltd.	Taiwan	1. Intensified fiber plastic material and product 2. Bathing equipment 3. Industrialplasticproduct	20,995	20,995	1,680,000	58.04%	50,986	(2,617)	(1,518)	－	Subsidiary
	Sheng-yuan investment Corp.	Taiwan	General investment	53,397	53,397	8,954,496	29.33%	608,289	(3,633)	(1,066)	Unrealized loss of financial assets $(7,397)	－
	Etrovision technology Co., Ltd.	Taiwan	1. Electric equipment installment 2. Automatic control equipment 3. Communication engineering 4. TV-KU channel and C channel installment	115,006	115,006	8,000,598	99.99%	23,854	3,794	3,793	－	Subsidiary
	Chem Corp. Samoa	Samoa	Holding company	2,976,037	2,976,037	90,856,648	100.00%	2,093,063	34,596	34,596	Exchange differences on translating foreign operations $(1,231) Unrealized gains and losses of intercompany transactions$(5,312)	Subsidiary

～58～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Names, locations, and related information of investees over which the company exercises significant influence (excluding information of China) For the three-month periods ended March 31, 2021

In Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 7-2
Investor	Investee	Location	Business	Original investment		Ending balance			Profit (loss) of investee in this period	Investment profit/loss recognized in thisperiod	Remark
				Ending balance	Beginning balance	Share	%	Book value
	Bao-Sheng Global	Taiwan	Manufacture machinery equipment, lift installation, automation control equipment, traffic mark and parking management,etc.	93,000	93,000	10,000,000	100.00%	163,482	4,232	4,232	－	Subsidiary
	Co.,Ltd.
	Li-Xiang Technology	Taiwan	Import and export trade about Rail industry, electronic control system, slope away from the coatingliquid	6,670	6,670	667,000	40.00%	－	(899)	(360)	Credit balance of Investment under equity method $3,921	－
	Co., Ltd
	Nomura Chung-Hsin	Taiwan	Manufacture machinery, other equipment and internation trade	20,874	20,874	2,087,400	49.00%	－	(892)	(437)	Credit balance of Investment under equity method$12,872	－
	Machinery Corporation
	FinData Technology	Taiwan	Software Design Services, Data Processing Services, Digital Information SupplyServices	60,000	60,000	2,000,000	100.00%	－	(3,677)	(3,677)	Credit balance of Investment under equity method $56,126	Subsidiary
	Corp.
	ME ENERGY	Hong Kong	Power EQU, engineering & parking management services	243,613	243,613	7,900,000	100.00%	126,771	(21,221)	(21,221)	Exchange differences on translating foreign operations $(165) FVTOCI financial assets $11,624 Unrealized gains and losses of intercompany transactions$2,951	Subsidiary
	SYSTEMS LIMITED
	Chung- Hsin Energy	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and fuel cells; energy technology services.	5,000	5,000	500,000	100.00%	4,756	(65)	(65)	－	Subsidiary
	Tech. Inc.
	Tian Cin Energy Co.,	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energytechnologyservices.	209,467	209,467	20,946,720	86.46%	130,134	(5,776)	(4,993)	Unrealized gains and losses of intercompany transactions $(11,141)	Subsidiary
	Ltd.
	Tian Peng Energy Co.,	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	674,245	674,245	67,424,520	85.32%	280,789	(20,175)	(17,213)	Unrealized gains and losses of intercompany transactions $(48,269)	Subsidiary
	Ltd.
	Tian Chong Energy	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energytechnologyservices.	928,288	928,288	92,828,760	85.99%	427,259	(24,567)	(21,125)	Unrealized gains and losses of intercompany transactions $(84,595)	Subsidiary
	Co., Ltd.
	Tian Fu Energy Co.,	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energytechnologyservices.	156,000	156,000	15,600,000	52.42%	151,191	(7,055)	(3,699)	－	Subsidiary
	Ltd. (Tian Fu)

～59～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Names, locations, and related information of investees over which the company exercises significant influence (excluding information of China) For the three-month periods ended March 31, 2021

In Thousands of New Taiwan Dollars, except as otherwise indicated

				For the three-month periods ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	For the three-month periods ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	For the three-month periods ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	For the three-month periods ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated
Attached table 7-3
Investor	Investee	Location	Business	Original investment		Ending balance			Profit (loss) of investee in this period	Investment profit/loss recognized in thisperiod	Remark
				Ending balance	Beginning balance	Share	%	Book value
CHENG-HSIN Engineering & Services CO.,LTD	San-feng construction Co., Ltd.	Taiwan	Civil engineering, construction, water conservancy, contract management industry	411,939	411,939	53,200,000	100.00%	560,026	1,650	Note	－	Subsidiary
	Wha Dun Building Management Service Co., Ltd.	Taiwan	Apartment managing services and consulting, etc.	10,000	10,000	1,652,632	100.00%	27,280	2,148	Note	－	Subsidiary
San-feng construction Co., Ltd.	Tian Fu Energy Co., Ltd. (Tian Fu)	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energytechnologyservices.	490,000	490,000	14,160,000	47.58%	487,032	(7,055)	Note	－	－
Tian Fu Energy Co., Ltd. (Tian Fu)	Tian Cin Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energytechnologyservices.	32,134	32,134	3,213,420	13.26%	30,819	(5,776)	Note	－	－
	Tian Peng Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energytechnologyservices.	113,690	113,690	11,368,980	14.39%	110,009	(20,175)	Note	－	－
	Tian Chong Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	148,176	148,176	14,817,600	13.73%	143,240	(24,567)	Note	－	－
Sunrise Tech. Co. Ltd (Sunrise investment Corp. change its name)	U.S.Technical Consultants Inc.	USA	Aerospace Equipment Manufacturing	22	22	5,310	22.27%	－	(3,930)	－	Accumulated Impairment loss $(22)	－
CHEM Corp.	CHEM Power Corp.	Samoa	Holding company	349,434	349,434	US 10,742,824.04	100.00%	105,217	(263)	Note	－	Subsidiary
	CHEM J-V Limited	HongKong	Holdingcompany	382,936	382,936	US12,644,500.00	100.00%	305,129	(11,519)	Note	－	Subsidiary
	CHEM Power Limited	Hong Kong	Holding company	2,570,519	2,570,519	US78,224,615.70	100.00%	1,687,701	46,329	Note	－	Subsidiary
H2 Power Tech, Inc.	H2 Power Tech, LLC.	USA	Technical services, licensing and equipment sales	15,100	15,100	US 500,000.00	100.00%	6,166	(12,385)	Note	－	Subsidiary
CHEM J-V Limited	MICT international Ltd.	HongKong	Holdingcompany	48,308	48,308	3,600,000	40.00%	24,928	(3,986)	Note	－	－
ME ENERGY SYSTEMS LIMITED	H2 Power Tech, INC.	USA	Holding company	3,564	3,564	50	100.00%	6,166	(12,385)	Note	－	Subsidiary
	EGME ENERGY ECOSYSTEMS (INDIA) PRIVATE LIMITED	India	To promote, own, acquire, erect, construct, establish, maintain, improve, manage, devise, develop, manufacture, install, commission, alter, carry on, control, take on backup power services, fuel cells equipment projects, telecom towers or other facilities of generation back power services of green energy and their sales and distribution	6,401	6,401	US 205,527.15	99.99%	176	(509)	Note	－	Subsidiary
	CHEM FUEL CELL (M) SDN.BHD.	Malaysia	To promote Fuel cells, Micro grid and their sales	6,253	6,253	824,002	100.00%	2,982	(453)	Note	－	Subsidiary

～60～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Names, locations, and related information of investees over which the company exercises significant influence (excluding information of China) For the three-month periods ended March 31, 2021

In Thousands of New Taiwan Dollars, except as otherwise indicated

				For the three-month periods ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	For the three-month periods ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	For the three-month periods ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	For the three-month periods ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated
Attached table 7-3
Investor	Investee	Location	Business	Original investment		Ending balance			Profit (loss) of investee in this period	Investment profit/loss recognized in thisperiod	Remark
				Ending balance	Beginning balance	Share	%	Book value
	CHEM ME ENERGY SYSTEMS HOLDINGS (PTY) Ltd.	South Africa	Holding company for manufacturing, sales and service related to fuel cell generators and other generation and energy storage systems.	45,815	45,815	2,000 (US 1,500,000)	100.00%	20,274	(7,876)	Note	－	Subsidiary
CHEM ME ENERGY SYSTEMS HOLDINGS (PTY) Ltd.	CHEM ENERGY SA (PTY) LTD.	South Africa	Manufacturing and Sales of fuel generators, battery charging services, power generating services, fuel service and parts and maintenance thereof.	45,815	45,815	13,000 (US 1,500,000)	100.00%	20,255	(7,875)	Note	－	Subsidiary

Note ： The share of profits/losses of the investee company is not reflected herein as such amount is already included in the share of profits/losses of the investor company.

～61～

Attached table 8		Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Information of investment in mainland China For the three-month periods Ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Information of investment in mainland China For the three-month periods Ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Information of investment in mainland China For the three-month periods Ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Information of investment in mainland China For the three-month periods Ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Information of investment in mainland China For the three-month periods Ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Information of investment in mainland China For the three-month periods Ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Information of investment in mainland China For the three-month periods Ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated	Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Information of investment in mainland China For the three-month periods Ended March 31, 2021 In Thousands of New Taiwan Dollars, except as otherwise indicated
Investee	Main businesses	Total paid-in capital	Method of investment (1)	Accumulated outflow of investment from Taiwan as of beginning balance	Investm	ent flows	Accumulated outflow of investment from Taiwan as of ending balance	Net Income (Losses) of the Investee Company	Percent age of ownersh ip	Investment profit (loss) of this period recognized (2)	Book value	Accumulated inward remittance of Earnings as of ending balance
					Outflow	In flow
Chem-tech (Shang-hai) Corp.	Importing and exporting trading	174,178 (US 5,400,000)	(b)	130,662 (US 4,125,220.53)	－	－	130,662	(291)	100.00%	(291)	12,349	－
Chemly Power equipment Corp.	Manufacturing machinery for generating, Transmitting and distributing electric power	318,310 (US 9,800,000)	(b)	318,310 (US 9,799,284.34)	－	－	318,310 (US 9,799,284.34)	(263)	100.00%	(263)	105,217	－
Wuxi Hengchi Chem Switchgear Co., Ltd.	GIS assembly and manufacturing	185,963 (US 5,575,982.58)	(b)	81,329 (US 2,403,148.34)	－	－	81,329 (US 2,403,148.34)	(2,966)	45.00%	(1,335)	36,753	－
Jiangsu Chung-Hsin Precision Machinery Co., Ltd.	Aluminum alloy tank, tube and accessories manufacturing and casting	950,804 (US 29,268,000)	(b)	966,640 (US 29,750,000)	－	－	966,640 (US 29,750,000)	42,690	99.17%	42,334	949,888	－
Shannxi baoji Yong-shin Ltd.	Aluminum alloy tank, tube and accessories manufacturing and casting	10,694 (US 326,130.09)	(b)	6,979 (US 213,000)	－	－	6,979 (US 213,000)	(351)	69.12%	(243)	16,442	－
Nantong L-S metal forming Co., Ltd.	Aluminum Alloy tank, tube and accessories manufacturing and casting	113,889 (US 3,630,200)	(b)	14,982 (US 453,800)	－	－	14,982 (US 453,800)	(5,908)	25.00%	(1,477)	140,721	－
Toko electric (Suzhou) Co., Ltd.	Manufacturing and selling potential transformer	183,154 (US 5,520,000)	(b)	33,523 (US 1,048,000)	－	－	33,523 (US 1,048,000)	－	18.99%	－	22,703	Evaluated by FVTPL – non-current
Chung-Hsin Power Systems Corp.	220kv~550kv high voltage GIS/GCB assembly and manufacturing	598,772 (US 18,000,000)	(b)	598,772 (US 18,000,000)	－	－	598,772 (US 18,000,000)	6,943	100.00%	6,943	271,123	－
Chung-Hsin Power Systems (Shenyang) Inc.	Manufacturing and selling high voltage GIS/GCB, aluminum casting and related equipments.	596,455 (US 18,000,000)	(b)	487,636 (US 14,679,315.53) (4)	－	－	487,636 (US 14,679,315.53) (4)	(4,729)	100.00%	(4,729)	49,744	－
Nantong Shengyi precision machinery Co.	Processing tank, conductors and various machinery parts	331,907 (US 10,000,000)	(b)	165,755 (US 5,000,000)	－	－	165,755 (US 5,000,000)	5,971	50.00%	2,985	199,722	－
Hitachi (Suzhou) EHV Switchgear Corp	69KV-1100KV kv high voltage switch board, assembly and manufacturing	633,000 (US 20,000,000)	(b)	16,455 (US 500,000)	－	－	16,455 (US 500,000)	－	－	－	－	Disposal for the period
San-he Kwok Shui Electric Co.	Manufacturing machinery for generating, Transmitting and distributing electric power	92,695 (US 2,950,485.95)	(b)	45,221 (US 1,435,539.87)	－	－	45,221 (US 1,435,539.87)	(1,746)	49.00%	(856)	32,532	－
Jiangsu Fumei Landscape & Real Estate Development Co., Ltd.	Resort development and management	296,700 (US 10,000,000)	(b)	296,700 (US 10,000,000)	－	－	296,700 (US 10,000,000)	(8,060)	100.00%	(8,060)	36,763	－
Integrated Manufacturing & Services Co., Ltd.	Development of special equipment for solar cell production, manufacture of optical engine, lighting source, projection screen, high definition projection cathode-ray tube and micro display module, and production, cleaning and regeneration of new electrical device	215,740 (US 7,000,000)	(c)	－	－	－	－	(3,986)	40.00%	(1,594)	23,009	－
Shanghai Shunhua New Energy System Co., Ltd.	R & D and sales of on-board hydrogen supply systems for fuel cell vehicles and hydrogen supply basic equipment, design, construction and operation services of hydrogen refueling stations.	273,947 (US 9,598,616.66) (5)	(b)	161,116 (US 5,371,416)	－	－	161,116 (US 5,371,416)	－	6.62%	－	110,219	Evaluated by FVTOCI – non-current

～62～

Accumulated investment in China as of March 31,2021	Investment amounts authorized by investment commission,MOEA	Upper limit on investment authorized by investment commission,MOEA(Note 3)
3,341,264 (US103,291,790.82)	3,624,168 (US112,108,296.58)	6,756,034

(1) Methods of investment: (a) Remit through third area to invest in China. (b) Through the company set up in third area and then reinvest in China. (c) Through investment to set up company then invest in China. (d) Other method.

• (2)Investment profit and loss in Chemly Power equipment Corp., Jiangsu Chung-Hsin Precision Machinery Co., Ltd., Chung-Hsin Power Systems Corp., Chung-Hsin Power Systems (Shenyang) Inc. and Jiangsu Fumei Landscape & Real Estate Development Co., Ltd. were recognized based on the reviewed financial statements by CPA of Taiwan. Others had not been reviewed.

• (3)Calculated based on 60% of net equity value of the Corporation as of March 31, 2021. (4)The Corporation used US$3,600,000 as professional technology fee to invest in Chung-Hsin Power Systems (shengyang) Inc. indirectly and owned 100.00% of the investee’s shares.

(5)Converted at the exchange rate on March 31, 2021.

～63～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Operating Segment Information

For the three-month periods Ended March 31, 2021 and 2020

Express in in thousands of New Taiwan dollars

Attached table 9-1 For the three-month periods Ended March 31, 2021 Revenue External customer Inter-segment Total revenue Segment profit Interest revenue Interest expense Investment profit and loss Non-operating profit and loss Profit before income tax Depreciation and amortization Assets Segment assets Investment under equity method Deferred income tax Others Total assets Capital expenditure	Electricity Power $ 2,934,970 1,311,608 $4,246,578 $ 619,026 $ 88,944 $ 16,527,258 $1,071,746	Service $ 788,545 45,571 $834,116 $ 12,817 $ 382,709 $ 3,178,385 $14,565	Engineering and Other $ 959,198 81,069 $1,040,267 $ 160,964 $ 9,136 $ 4,971,875 $11,903	Adjustment and elimination $ — (1,438,248 ) $(1,438,248 ) $ 5,284 $ — $ — $—	Total $ 4,682,713 — $4,682,713 $ 798,091 1,939 ( 25,840 ) ( 11,978 ) 5,349 $767,561 $ 480,789 $ 24,677,518 1,446,592 295,419 3,652,636 $30,072,165 $1,098,214

Express in thousands of New Taiwan dollars

Attached table 9-2 For the three-month periods Ended March 31, 2020 Revenue External customer Inter-segment Total revenue Segment profit Interest revenue Interest expense Investment profit and loss Non-operating profit and loss Profit before income tax Depreciation and amortization Assets Segment assets Investment under equity method Deferred income tax Others Total assets Capital expenditure	Electricity Power $ 1,902,293 599,585 $2,501,878 $ 229,359 $ 70,692 $ 8,707,119 $518,719	Engineering $ 432,993 5,579 $438,572 $ 53,080 $ 2,981 $ 1,002,818 $343	Service $ 482,621 49,698 $532,319 $( 31,156 ) $ 380,362 $ 2,359,170 $7,588	Other Adjustment and elimination $ 225,258 $ — 50,796 (705,658 ) $276,054 $(705,658 ) $( 17,174 ) $ 8,736 $ 15,115 $ — $ 4,505,984 $ — $14,456 $—	Total $ 3,043,165 — $3,043,165 $ 242,845 3,705 ( 16,351 ) ( 81,549 ) 5,706 $154,356 $ 469,150 $ 16,575,091 711,844 111,375 4,743,355 $22,141,665 $541,106

Note

1. The Group uses the income before tax from operations as the measurement for segment profit and the basis of performance assessment.

2. The accounting policies of operating segment are the same with others.

～64～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries INFORMATION ON MAJOR SHAREHOLDERS March 31, 2021

	March 31, 2021	March 31, 2021
Attached table 10
Shareholders	Shares
	Total Shares Owned (In Thousands)	Ownership Percentage (%)
Sheng Yuan investment Corp.	35,195	7.39
Guang-Hsin engineering & services Co., Ltd.	24,815	5.21

• Note 1: The main shareholder information in this table is calculated by the Taiwan Depository & Clearing Corporation on the last business day at the end of each quarter, and the total number of ordinary shares and special shares held by the shareholders who have completed the delivery of the company without physical registration (including treasury shares) is more than 5%. As for the share capital recorded in the Corporation’s financial report and the number of shares actually delivered by the Corporation without physical registration, may be different due to the calculation basis different.

• Note 2: The above information, if the shareholder delivers the shareholding to the trust, it will be disclosed by the individual trustee who opened the trust account. As for shareholders’ declaration of insider shareholdings that hold more than 10% of their shares in accordance with the Securities Exchange Act, their shareholdings include their shareholdings plus their delivery of trusts and shares that have the right to make decisions on trust property. Please refer to Market Observation Post System website for information on insider equity declaration.

～65～