CHEM — Interim / Quarterly Report 2021

Dec 13, 2021

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Consolidated Financial Statements for the Nine-Month Period Ended September 30, 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 September 30, 2021 and 2020, the consolidated statements of comprehensive income for the three-month period ended September 30, 2021 and 2020 and for the nine-month period ended September 30, 2021 and 2020, as well as the consolidated statements of changes in equity and cash flows for the nine-month period ended September 30, 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 September 30, 2021 and 2020 was 3,620,098 thousands and 7,134,783 thousands, which was 11.22% and 26.17% of consolidated assets. These companies’ liabilities of September 30, 2021 and 2020 was 1,611,592 thousands and 3,298,202 thousands, which was 7.62% and 18.42% of consolidated liabilities. These companies’ comprehensive income (loss) was 46,797 thousands, 160,893 thousands, 52,529 thousands and 202,824 thousands, which was 11.69%, 24.75%, 4.15% and 20.76% of consolidated statement of comprehensive income for the three-month period ended September 30, 2021 and 2020 and for the nine-month period ended September 30, 2021 and 2020, respectively.

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

As Note 6(11), the equity’s investment was 1,412,774 thousands and 1,169,819 thousands as of September 30, 2021 and 2020. The Share of profit of associates and joint ventures accounted for using equity method was 57,277 thousands, 89,768 thousands, 54,015 thousands and 108,482 thousands for the three-month period ended September 30, 2021 and 2020 and for the nine-month period ended September 30, 2021 and 2020, respectively. The Share of other comprehensive income of associates and joint ventures accounted for using equity method was (40,539) thousands, 278,897 thousands, (99,167) thousands and 333,828 thousands for the three-month period ended September 30, 2021 and 2020 and for the nine-month period ended September 30, 2021 and 2020, respectively. 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 September 30, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three-month period ended September 30, 2021 and 2020 and for the nine-month period ended September 30, 2021 and 2020 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 Chuan Ya Chang.

November 10, 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.

CHUNG-HSIN ELECTRIC AND MACHINERY MANUFACTURING CORPS. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS	September 30, 2021 (Reviewed)	September 30, 2021 (Reviewed)	December 31, 2020 (Audited)	December 31, 2020 (Audited)	September 30, 2020 (Reviewed)	September 30, 2020 (Reviewed)
	Amount ＄ 1,005,573 145,884 215,470 - 2,680,790 64,375 - 2,091,614 25,868 12,372 79,664 3,215 3,620,282 2,332,135 876,937 687,125 13,841,304 215,097 114,713 1,412,774 11,963,297 2,857,978 522,504 379,145 368,462 195,842 407,588 18,437,400 ＄ 32,278,704 ＄ 1,141,033 20,988 12,450 2,869,113 19,676 2,032,616 7,711 844,730 630 556,879 - 1,001,121 748,356 22,255 9,277,558 3,430,281 6,107,329 235,163 340,804 1,558,020 193,651 11,865,248	%	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	%	Amount ＄ 999,791 475,707 - 36 1,960,402 54,130 427 1,608,771 8,724 27,881 103,201 1,805 6,073,471 3,154,700 1,242,549 480,232 16,191,827 213,345 108,195 1,169,819 5,907,883 2,193,537 528,753 382,458 114,970 152,314 300,632 11,071,906 ＄ 27,263,733 ＄ 2,327,276 346,656 - 3,490,577 6,892 2,048,486 14,005 773,120 16,611 148,963 28,562 851,144 2,000,000 21,202 12,073,494 432,175 3,876,857 - 340,835 1,083,190 98,317 5,831,374	%
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) Current financial assets for hedging (Note 6) Current contract assets (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) 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		3 1 1 - 9 - - 6 - - - - 11 7 3 2		4 1 - - 5 - - 8 - - - - 13 11 3 2		4 2 - - 7 - - 6 - - - - 22 12 5 2
		43		47		60
		1 - 4 37 9 2 1 1 1 1		1 - 5 31 10 2 1 1 1 1		1 - 4 22 8 2 1 - 1 1
		57		53		40
		100		100		100
		3 - - 9 - 6 - 3 - 2 - 3 2 -		3 - - 10 - 10 - 3 - 2 - 3 3 -		9 1 - 13 - 8 - 3 - 1 - 3 7 -
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) Current contract liabilities (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 Current provisions (Note 6) Current lease liabilities (Note 6) Long-term liabilities, current portion (Note 6) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES： Bonds payable (Note 6) Long-term debts (Note 6) Current tax liabilities-non current Deferred income tax liabilities (Note 6) Non-current lease liabilities (Note 6) Other non-current liabilities, others (Notes 6 and 7) Total non-current liabilities
		28		34		45
		10 19 1 1 5 1		5 17 - 1 6 -		2 14 - 1 4 -
		37		29		21

～1～

CHUNG-HSIN ELECTRIC AND MACHINERY MANUFACTURING CORPS. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

		September 30, 2021	September 30, 2021	September 30, 2021	December 31, 2020	December 31, 2020	December 31, 2020		September 30, 2020	September 30, 2020	September 30, 2020
			(Reviewed)			(Audited)				(Reviewed)
ASSETS			Amount	%	Amount		%		Amount		%
Total liabilities			21,142,806	65		18,637,689		63		17,904,868	66
Equity attributable to owners of parent
Common stock (Note 6)			4,761,343	15		4,761,343		16		4,200,000	15
Certificate of entitlement to new shares from convertible bond (Note 6)			-	-		-		-		390,632	2
Capital surplus (Note 6)			1,477,331	4		1,455,475		5		1,126,159	4
RETAINED EARNINGS (Note 6)
Legal reserve			1,350,034	4		1,203,581		4		1,203,581	5
Special reserve			858,940	3		858,940		3		858,940	3
Unappropriated earnings			2,122,338	7		1,948,855		6		1,170,401	4
Total retained earnings			4,331,312	14		4,011,376		13		3,232,922	12
Other equity(Note 6)			432,490	1		538,980		2		282,805	1
Treasury shares (Notes 6 and 8)		(	116,880 )	-	(	116,880 )		-	(	116,880 ) (	1 )
Total Equity attributable to owners of parent			10,885,596	34		10,650,294		36		9,115,638	33
Non-controlling interests (Note 6)			250,302	1		253,252		1		243,227	1
Total equity			11,135,898	35		10,903,546		37		9,358,865	34
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	＄		32,278,704	100＄		29,541,235	100＄			27,263,733	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)

OPERATING REVENUE (Notes 6 and 7) OPERATING COST (Notes 6 and 7) GROSS PROFIT OPERATING EXPENSES (Notes 6 and 7) Selling expenses 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 gains 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 Items that may be reclassified to profit or loss Exchange differences on translating foreign operations Gains (losses) on hedging instrument Share of other comprehensive income of associates and joint ventures accounted for using equity method 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	(Reviewed, Not Audited) Third Quarterperiod ended September 30, 2021 2020 Amount ％ Amount ％ ＄ 4,119,423 100 ＄ 3,544,203 100 ( 3,267,164 ) ( 79 ) ( 2,967,467 ) ( 84 ) 852,259 21 576,736 16 ( 117,818 ) ( 3 ) ( 105,804 ) ( 3 ) ( 120,341 ) ( 3 ) ( 121,791 ) ( 3 ) ( 45,587 ) ( 1 ) ( 69,402 ) ( 2 ) ( 1,991 ) - 2,256 - ( 285,737 ) ( 7 ) ( 294,741 ) ( 8 ) 566,522 14 281,995 8 1,883 - 3,050 - 44,003 1 48,013 1 ( 98,720 ) ( 2 ) ( 16,650 ) - ( 18,997 ) - ( 18,905 ) ( 1 ) 57,277 1 89,768 3 ( 14,554 ) - 105,276 3 551,968 14 387,271 11 ( 113,568 ) ( 3 ) ( 51,083 ) ( 2 ) 438,400 11 336,188 9 7,175 - 876 - ( 40,456 ) ( 1 ) - - ( 4,683 ) - 38,131 1 - - 36 - - - 274,727 8 ( 37,964 ) ( 1 ) 313,770 9 ＄ 400,436 10 ＄ 649,958 18 ＄ 436,711 11 ＄ 330,101 9 1,689 - 6,087 - ＄ 438,400 11 ＄ 336,188 9 ＄ 398,877 10 ＄ 638,568 18 1,559 - 11,390 - ＄ 400,436 10 ＄ 649,958 18 ＄ 0.93 ＄ 0.80 ＄ 0.89 ＄ 0.78	Nine-mon	thperiod e	nded September 30,
		2021		2020

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

～3～

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

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

BALANCE, JANUARY 1, 2021 Legal reserve appropriated Cash dividends of ordinary share Profit (loss) OTHER COMPREHENSIVE INCOME TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Adjustments of capital surplus for company’s dividends received by subsidiaries Difference between consideration and carrying amount of subsidiaries acquired or disposed Changes in ownership interests in subsidiaries Net changes in Non-controlling interests Other BALANCE, September 30, 2021 BALANCE, JANUARY 1, 2020 Legal reserve appropriated Cash dividends of ordinary share Certificate of entitlement to new shares from convertible bond Profit (loss) OTHER COMPREHENSIVE INCOME TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Conversion of convertible bonds Adjustments of capital surplus for company’s dividends received by subsidiaries Changes in ownership interests in subsidiaries Net changes in Non-controlling interests Other BALANCE, September 30, 2020	Common Stock ＄4,761,343 - - - - - - - - - - ＄4,761,343 ＄4,200,000 - - - - - - - - - - - ＄4,200,000	Certificate of entitlement to new shares from convertible bond	Capital surplus		RETAI	NED EARNINGS			OTHER EQUITY	OTHER EQUITY		Treasury stock	Total Equity attributable to owners of Parent	Non-controlling interests
				Legal reserve	Special reserve	Unappropriated earnings	Total Retained earnings	Exchange differences on translating foreign operations	Unrealized gain (loss) on Financial assets at fair value through other comprehensive incomes	Gains (losses) on hedging instruments	Total Other equity
		＄- - - - -	＄1,455,475 - - - -	＄1,203,581 146,453 - - -	＄858,940 - - - -
		- - - - - -			- - - - - -	1,367,227 - - 191 - -	1,367,227 - - 191 - -
		＄-	＄1,477,331	＄1,350,034	＄858,940	＄ 2,122,338	＄ 4,331,312
		＄- - - - - -	＄ 421,024 - - 80,424 - -	＄1,143,143 60,438 - - - -	＄858,940 - - - - -
		- 390,632 - - - -	- 598,492 10,815 12,640 - 2,764	- - - - - -	- - - - - -
		＄390,632	＄1,126,159	＄1,203,581	＄858,940	＄1,170,401	＄3,232,922

（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)

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 Dividend 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 Impairment loss on non-financial assets Other Net changes in operating incomes and losses which do not affect cash flows Net changes in operating assets and liabilities (Increase) Decrease 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 (Decrease) Increase in other accounts payables (Decrease) Increase in other accounts payables - 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 (Continued)

NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2021 2020 ＄ 1,738,027 ＄ 843,804 1,195,543 1,200,507 118,518 107,455 3,633 ( 22,375 ) 9,200 44,355 64,590 51,392 ( 5,850 ) ( 10,778 ) ( 20,807 ) ( 31,582 ) ( 54,015 ) ( 108,482 ) ( 56,328 ) ( 1,270 ) ( 3,659 ) ( 2,906 ) 28,997 22,031 1,010 ( 933 ) 1,280,832 1,247,414 91,476 16,689 ( 1,212,809 ) ( 350,505 ) 29,751 12,301 - 20,661 186,275 ( 89,712 ) ( 19,436 ) 35,590 17,991 817 10,599 ( 38,876 ) 1,033,725 ( 3,634,081 ) 31,570 ( 695,108 ) ( 200,963 ) ( 191,094 ) ( 31,821 ) ( 4,913,318 ) 81,502 357,477 ( 12,746 ) ( 2,155 ) ( 1,006,081 ) 883,991 ( 8,669 ) ( 2,603 ) ( 24,099 ) 67,579 ( 320 ) 15,201 85,060 ( 141,963 ) ( 528 ) ( 5,986 ) ( 6,587 ) - ( 892,468 ) 1,171,541 ( 924,289 ) ( 3,741,777 ) 356,543 ( 2,494,363 ) 2,094,570 ( 1,650,559 ) 6,129 10,373 55,864 88,389 ( 28,088 ) ( 27,060 ) ( 93,821 ) ( 91,458 ) 2,034,654 ( 1,670,315 )

2021 ＄ 1,738,027 1,195,543 118,518 3,633 9,200 64,590 ( 5,850 ) ( 20,807 ) ( 54,015 ) ( 56,328 ) ( 3,659 ) 28,997 1,010 1,280,832 91,476 ( 1,212,809 ) 29,751 - 186,275 ( 19,436 ) 17,991 10,599 1,033,725 31,570 ( 200,963 ) ( 31,821 ) 81,502 ( 12,746 ) ( 1,006,081 ) ( 8,669 ) ( 24,099 ) ( 320 ) 85,060 ( 528 ) ( 6,587 ) ( 892,468 ) ( 924,289 ) 356,543 2,094,570 6,129 55,864 ( 28,088 ) ( 93,821 ) 2,034,654

～5～

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income Acquisition of financial assets at amortized cost Acquisition of investments accounted for using equity method Proceeds from disposal of investments accounted for using equity method 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 Decrease 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 Increase in short-term notes and bills payable Decrease in short-term notes and bills payable Proceeds from issuing bonds Increase in long-term debts Decrease in guarantee deposit received Payment of lease liabilities Increase in other non-current liabilities Decrease in other non-current liabilities Cash Dividends Paid 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

NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2021 2020 - ( 161,116 ) ( 73,795 ) - ( 21,508 ) - - 22,433 - 112,500 ( 3,125,113 ) ( 1,680,381 ) 72,428 48,796 ( 39,714 ) - - 1,772 ( 2,988 ) ( 350,512 ) ( 20,392 ) ( 62,126 ) - ( 1,341 ) 1,925 - ( 101,848 ) ( 61,698 ) ( 1,886 ) ( 1,883 ) ( 3,312,891 ) ( 2,133,556 ) 214,203 1,608,331 - 332,000 ( 55,500 ) - 1,996,270 1,500,134 942,600 1,725,000 ( 6,738 ) ( 2,933 ) ( 886,624 ) ( 839,873 ) - 15,271 ( 15,953 ) - ( 1,047,482 ) ( 504,000 ) ( 10,888 ) ( 13,150 ) 2,129 2,765 1,132,017 3,823,545 ( 8,921 ) ( 3,143 ) ( 155,141 ) 16,531 1,160,714 983,260 ＄ 1,005,573 ＄ 999,791

2021 - ( 73,795 ) ( 21,508 ) - - ( 3,125,113 ) 72,428 ( 39,714 ) - ( 2,988 ) ( 20,392 ) - 1,925 ( 101,848 ) ( 1,886 ) ( 3,312,891 ) 214,203 - ( 55,500 ) 1,996,270 942,600 ( 6,738 ) ( 886,624 ) - ( 15,953 ) ( 1,047,482 ) ( 10,888 ) 2,129 1,132,017 ( 8,921 ) ( 155,141 ) 1,160,714 ＄ 1,005,573

(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 NINE-MONTH PERIOD ENDED SEPTEMBER 30, 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.

• (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 November 10, 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	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
39, IFRS 7, IFRS 4 and IFRS	Phase 2
16
Amendments to IFRS 16	Covid-19-Related Rent Concessions	April 1, 2021 (Note)
	beyond June 30, 2021
Note: The FSC allows companies to apply these amendments in advance on January 1, 2021.

Amendments to IFRS 16, “Covid-19-Related Rent Concessions beyond June 30, 2021”

～7～

This amendment extends the practical expedient of Covid-19 related rent concessions for one year to help related accounting process of lessee.

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: The IFRSs endorsed by FSC with effective date starting 2022 were listed below:

New Standards, Amendments And Interpretations Amendments of IAS 16 Property, Plant and Equipment - Proceeds before Intended Use Amendments of IAS 37 Onerous Contracts-Cost of Fulfilling a Contract Amendments of IFRS 3 Reference to the Conceptual Framework Annual Improvements to IFRS Standards 2018–2020	Effective Date of IASB (Note 1)
	January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4) January 1, 2022 (Note 5)

• 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 January 1, 2022.

• Note 5: The amendments to IFRS 9 are applied prospectively to modifications and exchanges of financial liabilities that occur on or after January 1, 2022. The amendments to IAS 41 “Agriculture” are applied prospectively to the fair value measurements on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” are applied retrospectively for annual reporting periods beginning on or after January 1, 2022.

As of the date the consolidated financial statements were authorized for issue, the related impact will be disclosed when the Group completes the evaluation.

• (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 1 Disclosure of Accounting Policies Amendments to IAS 8 Definition of Accounting Estimates Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction

Effective Date of IASB

Effective date to be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023

As of the date the consolidated financial statements were authorized for issue, 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 interest s; 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(%)	Ownership(%)	Ownership(%)
		September 30,2021	December 31,2019	September 30,2020
Chung-Hsin Electric And Machinery Manufacturing Corps. CHENG-HSIN Engineering & Services CO.,LTD.	CHEM USA CORP. Selling and assembly of note book computers CHENG-HSIN Engineering & Services CO.,LTD. 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 Etrovision technology Co., Ltd. Electric equipment installment Automatic control equipment Communication engineering TV-KU channel and C channel installment CHEM Corp. Export and import goods, Holding Sunrise Tech. Co. Ltd (Sunrise investment Corp. Changed its name) 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. Global - Entech Co., Ltd. Air pollution sample testing Waste water and environmental water testing Noise testing Evaluation of environmental affection Tone-zoom industry Co., Ltd. Intensified fiber plastic material and product Bathing equipment Industrial plastic product Bao-Sheng Global Co., Ltd. Manufacture machinery equipment Lift installation Automation control equipment and traffic mark Parking business management, etc. FinData Technology Corp. Software Design Services, Data Processing Services, Digital Information Supply Services Chung- Hsin Energy Tech. Inc. Manufacturing machinery for generating, transmitting and distributing electric power and fuel cells; energy technology services. Tian Cin Energy Co., Ltd. Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services. Tian Peng Energy Co., Ltd. Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services. Tian Chong Energy Co., Ltd. Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services. ME Energy Systems Limited Power EQU, engineering & parking management services Tian Fu Energy Co., Ltd. Investment consultants and energy technology services, etc. San - feng construction Co., Ltd. Civil engineering, construction, water conservancy, contract management industry Wha Dun Building Management Service Co., Ltd. Apartment managing services and consulting, etc.	100.00% 100.00% 99.99% 100.00% 100.00% 99.99% (Note 1) 58.04% 100.00% 100.00% 100.00% 86.46% 85.32% 86.81% (Note2) 100.00% 52.42% 100.00% 100.00%	100.00% 100.00% 99.99% 100.00% 100.00% 99.98% 58.04% 100.00% 100.00% 100.00% 86.46% 85.32% 85.99% 100.00% 52.42% 100.00% 100.00%	100.00% 100.00% 99.99% 100.00% 100.00% 99.98% 58.04% 100.00% 100.00% 100.00% 86.46% 85.32% 85.99% 100.00% 52.42% 100.00% 100.00%

～10～

Name of Investor Name of Subsidiary Main Business Activities San - feng construction Co., Ltd. Tian Fu Energy Co., Ltd. Investment consultants and energy technology services, etc. Tian Fu Energy Co., Ltd. Tian Cin Energy Co., Ltd. Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services. Tian Peng Energy Co., Ltd. Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services. Tian Chong Energy Co., Ltd. Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services. CHEM Corp. CHEM POWER Corp. Export and import goods, Holding CHEM Power Limited Export and import goods, Holding CHEM J-V Limited Export and import goods, Holding CHEM POWER Corp. Chemly power equipment Corp. Manufacturing machinery for generating, transmitting and distributing electric power CHEM Power Limited Chung - Hsin Power Systems (Jiangsu) Corp. 220kV~550kV high voltage GIS/GCB assembly and manufacturing. Nantong Shengyi precision machinery Co. Processing tanks, plates, over 1.5M of conductors and various machinery parts Shannxi baoji Yong - shin Ltd. Aluminum alloy casting and related machinery manufacturing Jiangsu Chung - Hsin Precision Machinery Co., Ltd. Alloy casting and precision manufacturing Parking equipment & parts manufacturing Chem-tech (Shang hai) Corp. International trade Chung-Hsin Power Systems (Shenyang) Inc. Manufacturing ultra high voltage gas insulated switchgear for power transmission and distribution Aluminum casting and precision machinery manufacturing and selling CHEM J-V Limited Jiangsu Fumei Landscape & Real Estate Development Co., Ltd. Resort development and management H2 Power Tech, Inc. H2 Power Tech, LLC. Technical services, licensing and equipment sales ME Energy Systems Limited H2 PowerTech,Inc. Holding company EGME Energy Ecosystems (India) Private Limited 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 CHEM Fuel Cell (M) SDN. BHD. To promote Fuel cells, Microgrid and their sales CHEM ME ENERGY SYSTEMS HOLDINGS (PTY) Ltd. Holding company for manufacturing, sales and service related to fuel cell generators and other generation and energy storage systems. CHEM ME ENERGY SYSTEMS HOLDINGS (PTY) Ltd. CHEM ENERGY SA (PTY) LTD. Manufacturing and Sales of fuel generators, battery charging services, power generating services, fuel service and parts and maintenance thereof.

Ownership(%)

September 30, 2021 December 31,2019 September 30, 2020 47.58% 47.58% 47.58% 13.26% 13.26% 13.26% 14.39% 14.39% 14.39% 12.93% (Note 3) 13.73% 13.73% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 50.00% 50.00% 50.00% 69.12% 69.12% 69.12% 99.17% 99.17% 99.17% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.99% 99.99% 99.99% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Note 1: Acquired in this period.

Note 2: Acquired in this period due to cash capital increase.

Note 3: The decrease on shareholding ratio was cause by not participating in cash capital increase in accordance with the shareholding ratio.

• 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.

～11～

(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 has considered the economic implications of COVID-19 on critical accounting estimates and will continue evaluating the impact on its financial position and financial performance as a result of the pandemic. Revisions to accounting estimates are recognized in the year in which the estimate is revised if the revision affects only that year or in the year of the revision and future years if the revision affects both current and future years.

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.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand Turnover cash Bank Deposit	September30,2021 $ 5,066 10,254 990,253 $ 1,005,573	December31,2020 $ 4,348 9,505 1,146,861 $ 1,160,714	September30,2020
			$ 4,636 8,776 986,379
			$ 999,791

• (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 September 30, 2021, December 31, 2020 and September 30, 2020, the Group’s bank deposit were used as collaterals for purchasing raw materials, engineering contracts, and loans and listed as restricted assets. These have been reclassified into “other current assets” and “Other noncurrent assets”, please refer to Note 8.

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

Current financial assets Mandatorily at fair value through profit or loss Listed Stock Beneficiary certificate Held for trading - Convertible bonds call options and put options Financial products	September 30, 2021 $ 7,342 138,542 － － $ 145,884	December 31, 2020 $ 7,672 230,797 － － $ 238,469	September 30, 2020
			$ 97,355 161,547 1,595 215,210
			$ 475,707

～12～

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	September 30, 2021 $ 185,483 29,614 $ 215,097 $ 12,450	December 31, 2020 $ 188,878 29,055 $ 217,933 $ 10,200	September 30, 2020
			$ 213,345 －
			$ 213,345
			$ －

As of September 30, 2021, December 31, 2020 and September 30, 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

September 30, 2021 December 31, 2020 September 30, 2020 Non-current Equity Instruments Equity $ 114,713 $ 98,273 $ 108,195

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) Hedging Financial Instruments

September 30, 2021 December 31, 2020 September 30, 2020 Financial assets - current Cash flow hedge Forward foreign － － exchange contracts $ $ $ 36

The Group entered into forward foreign exchange contracts to avoid some of the foreign currency exchange rate risks that are highly probable arising from forecast transactions. Accounting to the market conditions, the Group adjusts hedging ratio not exceeding 100%. The above forward foreign exchange contracts are due within 12 months.

The hedging ineffectiveness of the hedging relationship is mainly due to the impact of the counterparty’s credit risk on the fair value of the forward foreign exchange contract.

There are no other sources of hedging ineffectiveness during the hedging period. For the gains and losses from changes in fair value of hedging instruments, please refer to Note 6(25).

The hedging information of exchange rate risk was as follows: September 30, 2021: none.

December 31, 2020: none.

September 30, 2020:

Hedging Balance in Other equity Contract Amount Contract Period Instruments (Continuing hedges) Forward foreign exchange contracts USD 250,000.00 2020.09.30~2020.12.15 $

36

～13～

(5) Financial assets at amortized cost

Financial assets at amortized cost
Current Time deposits with original maturities of more than 3 months	September 30, 2021	December 31, 2020	September 30, 2020
	$ 215,470	$ 143,711	$ －

As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group’s financial assets at amortized cost were used as collaterals for purchasing raw materials, engineering contracts, and loans and listed as restricted assets. These have been reclassified into “other current assets” and “Other noncurrent assets”, please refer to Note 8.

(6) Notes receivable, net

Notes receivable From Operating activities Less: allowance for impairment loss Notes receivable due from related parties	September 30, 2021 $ 64,375 － 64,375 － $ 64,375	December 31, 2020 $ 94,126 － 94,126 － $ 94,126	September 30, 2020 $ 54,130 ( －) 54,130 427 $ 54,557

• A. As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group has no notes receivable overdue.

• B. As of September 30, 2021, December 31, 2020 and September 30, 2020, notes receivable did not server as collaterals for bank loan.

(7) 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	September 30, 2021 $ 2,130,298 ( 41,335) 2,088,963 5,568 ( 2,917) 2,651 2,091,614 31,777 ( 5,909) 25,868 2,117,482 83,453 ( 23,860) 59,593 $ 2,177,075	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	September 30, 2020 $ 1,646,001 ( 39,749) 1,606,252 5,584 ( 3,065) 2,519 1,608,771 10,866 ( 2,142) 8,724 1,617,495 89,281 ( 27,002) 62,279 $ 1,679,774

～14～

Finance leases of lease payments receivables were as follows:

Undiscounted lease payments Year 1 Year 2 Year 3 Year 4 Year 5 Over 5 years Less: unearned finance income Lease investment, net Current Non-current	September 30, 2021 $ 5,568 5,568 5,568 5,568 5,568 61,181 89,021 ( 26,777) $ 62,244 $ 2,651 59,593 $ 62,244	December 31, 2020 $ 5,529 5,529 5,529 5,529 5,529 64,906 92,551 ( 28,460) $ 64,091 $ 2,573 61,518 $ 64,091	September 30, 2020 $ 5,584 5,584 5,584 5,584 5,584 66,943 94,865 ( 30,067) $ 64,798 $ 2,519 62,279 $ 64,798

• 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.

Not overdue September 30, 2021 Expected credit loss rate Total Book Value $ 2,167,416 Less: Loss allowance － Amortized cost $ 2,167,416 December 31, 2020 Expected credit loss rate Total Book Value $ 2,289,416 Less: Loss allowance － Amortized cost $ 2,289,416	Overdue 1~180 days 0%～50% $ 18,679 ( 9,213 $ 9,466 0%～50% $ 58,471 ( 2,682 $ 55,789	Overdue over 181 days 50%～100% $ 38,224 ) ( 38,031 $ 193 50%～100% $ 49,660 ) ( 42,455 $ 7,205	Total $ 2,224,319 ) ( 47,244 ) $ 2,177,075 $ 2,397,547 ) ( 45,137 ) $ 2,352,410
Expected credit loss rate Total Book Value Less: Loss allowance Amortized cost

～15～

Not overdue September 30, 2020 Expected credit loss rate Total Book Value $ 1,669,652 Less: Loss allowance － Amortized cost $ 1,669,652	Overdue 1~180 days 0%～50% $ 7,855 ( 3,382 ) $ 4,473	Overdue over 181 days 50%～100% $ 44,158 ( 38,509 $ 5,649	Total $ 1,721,665 ) ( 41,891 ) $ 1,679,774
Expected credit loss rate Total Book Value Less: Loss allowance Amortized cost

Total Book Value $ 1,669,652 $ 7,855 $ 44,158 $ Less: Loss allowance － ( 3,382 ) ( 38,509 ) ( Amortized cost $ 1,669,652 $ 4,473 $ 5,649 $	Total Book Value $ 1,669,652 $ 7,855 $ 44,158 $ Less: Loss allowance － ( 3,382 ) ( 38,509 ) ( Amortized cost $ 1,669,652 $ 4,473 $ 5,649 $	Total Book Value $ 1,669,652 $ 7,855 $ 44,158 $ Less: Loss allowance － ( 3,382 ) ( 38,509 ) ( Amortized cost $ 1,669,652 $ 4,473 $ 5,649 $	Total Book Value $ 1,669,652 $ 7,855 $ 44,158 $ Less: Loss allowance － ( 3,382 ) ( 38,509 ) ( Amortized cost $ 1,669,652 $ 4,473 $ 5,649 $	Total Book Value $ 1,669,652 $ 7,855 $ 44,158 $ Less: Loss allowance － ( 3,382 ) ( 38,509 ) ( Amortized cost $ 1,669,652 $ 4,473 $ 5,649 $	Total Book Value $ 1,669,652 $ 7,855 $ 44,158 $ Less: Loss allowance － ( 3,382 ) ( 38,509 ) ( Amortized cost $ 1,669,652 $ 4,473 $ 5,649 $	1,721,6 41,8 1,679,7
The movements of the loss allowance of other receivables were as follows:
		For the nine-month	period ended on September 30, 2021
	Accounts receivable		Other receivable		Contract asset
Balance, beginning of
period	$	45,137	$	35,818	$	2,939
Increase on impairment
loss for the period		8,633		－		1
Reversal on impairment
loss for the period	(	2,062 )		－	(	2,939 )
Write off on impairment
loss for the period	(	3,722 )		－		－
Effect of exchange rate
changes	(	742 )	(	171 )		－
Balance, end of period	$	47,244	$	35,647	$	1
		Forthenine-month	period ended onSeptember30,2020
	Accounts receivable		Other receivable		Contract asset
Balance, beginning of
period	$	60,818	$	24,729	$	－
Increase on impairment
loss for the period		1,007		－		－
Reversal on impairment
loss for the period	(	19,497 )	(	3,885 )		－
Write off on impairment
loss for the period	(	23 )		－		－
Effect of exchange rate
changes	(	414 )	(	84 )		－
Balance, end of period	$	41,891	$	20,760	$	－

Related credit risk management and assessment methods please refer to Note 12(3). As of September 30, 2021, December 31, 2020 and September 30, 2020, accounts receivable did not server as collaterals for bank loan.

(8) Inventories-manufactory

Inventories-manufactory
Raw materials Semi-finished goods Work in process Finished goods Supplies Finished goods - purchased Materials in transit Inventory as collateral	September 30, 2021 $ 1,240,985 501,203 1,345,998 464,725 16 26,478 40,877 $ 3,620,282 None	December 31, 2020 $ 1,044,512 328,322 1,387,502 1,058,981 － 63,924 30,027 $ 3,913,268 None	September 30, 2020
			$ 3,468,969 417,769 1,105,320 881,295 － 119,195 80,923
			$ 6,073,471
			None

The profits and losses derived from cost of good sold for the three-month period ended on September 30, 2021 and 2020 and for the nine-month period ended on

～16～

September 30, 2021 and 2020 were as follows:

Cost of inventory sold Loss for obsolete and slow-moving Cost of inventory sold Loss for obsolete and slow-moving Loss on disposal of inventory 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	For the three-month period	For the three-month period
	2021 $ 1,042,143 101,800 $ 1,143,943 For the nine-month period
	2021 $ 3,125,430 $ 80,358 9,993 $ 3,215,781 $ September 30,2021 December 31,2020 $ 415 $ 415 1,947,444 2,721,645 1,947,859 2,722,060 242,956 242,956 － － 141,320 118,114 141,320 118,114 － － $ 2,332,135 $ 3,083,130
		$
		$
	September 30,2021 $ 415 1,947,444 1,947,859 242,956 － 141,320 141,320 － $ 2,332,135

(9) Inventories – Construction

(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 nine-month periods ended September 30, 2021 and 2020, the interest expense capitalized amount was $0 thousand and $12,134 thousand, respectively; and the capitalized interests’ ratio range was 0.72% ~ 0.96%.

～17～

• (D) As of September 30, 2021, December 31, 2020 and September 30, 2020, Inventories Construction servers as collaterals for bank loan, please refer to Note 8.

(10)Prepayments

Prepayments
Prepaid rental Other prepaid expense Prepayments for purchasing materials Offset Against Business Tax Payable Prepayments for construction Prepayments for investments Others	September 30, 2021 $ 128,464 46,532 240,938 23,341 426,634 9,860 1,168 $ 876,937	December 31, 2020 $ 13,176 75,594 211,193 39,808 558,808 9,860 68 $ 908,507	September 30, 2020
			$ 55,291 107,898 393,375 69,312 593,180 9,860 13,633
			$ 1,242,549

• (11)Investments accounted for under the equity method Investment in associates:

Investment 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. Qingdao SunHydro Technology Group Co., Ltd. Less: accumulative impairment losses	September 30,2021		December 31,2020		September 30,2020
	Amount	%	Amount	%	Amount	%
	$ 572,214 591,112 － － 133,385 42,169 30,284 22,063 21,547	24.29% 29.33% 40.00% 49.00% 25.00% 45.00% 49.00% 40.00% 49.00%	$ 613,334 24.29% $ 479,560 24.29% 616,752 29.33% 473,964 29.33% －40.00% －40.00% －49.00% －49.00% 142,255 25.00% 138,401 25.00% 38,096 45.00% 17,457 45.00% 33,398 49.00% 32,955 49.00% 26,688 40.00% 27,482 40.00% － － － － 1,470,523 1,169,819 － － $ 1,470,523 $ 1,169,819
	1,412,774 －
	$ 1,412,774

Note : To reclassify in other non-current liabilities.

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

• B. The Group acquired 49% equities of Qingdao SunHydro Technology Group Co., Ltd. from non-related parties by RMB 5,000 thousand (NTD 21,508 thousand).

• C. Aggregate information of associates that are not individually material:

Proportionate interest from associates Year of Income Other comprehensive loss from associates Total comprehensive income Proportionate interest from associates Year of Income Other comprehensive loss from associates Total comprehensive income	For the three-month period ended on September 30, 2021 2020 $ 57,277 $ 89,768 ( 40,539) 278,897 $ 16,738 $ 368,665 For the nine-month period ended on September 30, 2021 2020 $ 54,015 $ 108,482 ( 99,167) 333,828 $( 45,152) $ 442,310
	2021 $ 54,015 ( 99,167) $( 45,152)

• D. For the nine-month period ended on September 30, 2021 and 2020, the Group conducted evaluation and impairment test for associates. The result recognized losses on impairment of investment both were $0.

～18～

(12) Property, plant and equipment	(12) Property, plant and equipment	(12) Property, plant and equipment	(12) Property, plant and equipment	(12) Property, plant and equipment	(12) Property, plant and equipment	(12) Property, plant and equipment	(12) Property, plant and equipment	(12) Property, plant and equipment
					September				30, 2021			December	31, 2020		September 30, 2020
Assets		used by the
Group					$			11,963,297				$	9,226,449		$		5,900,389
Assets		subject	to
operating leases									－					－				7,494
					$			11,963,297				$	9,226,449		$		5,907,883
Assets	used by		the Group
							For	thenine-monthperiod ended onSeptember30,2021
															Unfinished
															construction
		Land			Buildings			Machinery			Transportation			Others		and		Total
															Equipment to
															be tested
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			－			22,926			188,125			10,254		59,907		3,195,032		3,476,244
Disposals		(	903)	(			5,808)	(	65,576 )		(	2,604)	(	13,553 )	(	53,501 )	(	141,945 )
Reclassifications			－				347		398			－		659	(	351,210 )	(	349,806 )
Effect of
exchange rate			－	(		10,739)		(	15,383)		(	267)	(	2,011 )	(	119 )	(	28,519 )
changes
End Balance of period	$	1,507,247 $			3,400,517 $				3,512,291	$		112,844	$	799,968 $		7,752,492	$	17,085,359
Accumulated
depreciation and
impairment loss
Beginning Balance of period	$		－$(		2,078,075)$(				2,240,641)	$	(	78,749)$ (		505,471 )$		－$ (		4,902,936 )
Depreciation			－	(		76,011)		(	134,773)		(	8,601)	(	58,319 )		－	(	277,704 )
Impairment loss			－	(		23,584)		(	2,936)		(	277)	(	2,200 )		－	(	28,997 )
Disposals			－				3,448		55,262			4,602		8,200		－		71,512
Effect of
exchange rate			－				5,931		8,523			223		1,386		－		16,063
changes
End Balance of period	$		－$(		2,168,291)$(				2,314,565)	$	(	82,802)$ (		556,404 )$		－$ (		5,122,062 )
Net Balance	$	1,507,247 $			1,232,226 $				1,197,726	$		30,042	$	243,564 $		7,752,492	$	11,963,297

					Forthenine-monthperiod	Forthenine-monthperiod	Forthenine-monthperiod	Forthenine-monthperiod	ended onSeptember30,2020	ended onSeptember30,2020	ended onSeptember30,2020
												Unfinished
												construction
		Land			Buildings	Machinery		Transportation			Others		and			Total
												Equipment		to
													be tested
Cost
Beginning Balance of period	$	1,511,122 $			3,346,120 $	3,206,582	$		102,588 $		663,235 $		233,276 $			9,062,923
Additions		8,491			22,231	228,706			9,473		89,602		1,494,684			1,853,187
Disposals		( 15,593)		(	3,238) (	51,821 )		(	4,055)	(	14,055 )			－	(	88,762 )
Reclassifications			－		347	876			－		659	(	68,298 )		(	66,416 )
Effect of
exchange rate			－	(	7,323) (	11,388 )		(	203)	(	1,588 )	(	1,561 )		(	22,063 )
changes
End Balance of period	$	1,504,020 $			3,358,137 $	3,372,955	$		107,803 $		737,853 $		1,658,101 $			10,738,869
Accumulated
depreciation and
impairment loss
Beginning Balance of period	$		－$(		1,935,655)$(	2,145,813 )	$	(	75,557)$	(	451,994 )$			－$	(	4,609,019 )
Depreciation			－	(	77,348) (	116,622 )		(	6,199)	(	58,415 )			－	(	258,584 )
Impairment loss			－	(	20,093) (	1,934 )			－	(	3 )			－	(	22,030 )
Disposals			－		271	24,630			2,596		13,739			－		41,236
Effect of
exchange rate			－		3,291	5,626			151		849			－		9,917
changes
End Balance of period	$		－$(		2,029,534)$(	2,234,113 )	$	(	79,009)$	(	495,824 )$			－$	(	4,838,480 )
Net Balance	$	1,504,020 $			1,328,603 $	1,138,842	$		28,794 $		242,029 $		1,658,101 $			5,900,389

～19～

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 nine-month period ended on September 30, 2020 Land Buildings Total $ 4,130 $ 18,166 $ 22,296 $ 4,130 $ 18,166 $ 22,296 $ －$ ( 14,415) $ ( 14,415) － ( 387) ( 387) $ －$ ( 14,802) $ ( 14,802) $ 4,130 $ 3,364 $ 7,494	For the nine-month period ended on September 30, 2020 Land Buildings Total $ 4,130 $ 18,166 $ 22,296 $ 4,130 $ 18,166 $ 22,296 $ －$ ( 14,415) $ ( 14,415) － ( 387) ( 387) $ －$ ( 14,802) $ ( 14,802) $ 4,130 $ 3,364 $ 7,494
	Land $ 4,130 $ 4,130 $ － － $ － $ 4,130	Buildings $ 18,166 $ 18,166 $ ( 14,415) ( 387) $ ( 14,802) $ 3,364

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 September 30, 2021, December 31, 2020 and September 30, 2020, property, plant and equipment for guarantee and mortgage, please refer to Note 8.

• (C)As the nine-month period ended September 30, 2021 and 2020, the interest expense capitalized amounts were $30,095 thousand and $0 thousand.

• (D)For the nine-month period ended September 30, 2021 and 2020, the impairment loss amounts were $28,997 thousand and $0 thousand.

(13)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 Cost Beginning Balance of period Additions Disposals Reclassifications	For the nine-month period ended on September 30,

～20～

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 Lease liabilities Carrying amount of lease liabilities Current Noncurrent Discount rate

For the nine-month period ended on September 30, 2020 Land Buildings Transportation Total ( 1,833 ) ( 962 ) － ( 2,795 ) $ 3,825,467 $ 29,639 $ 23,838 $ 3,878,944 $( 1,261,871 ) $( 19,860 ) $( 8,560 ) $( 1,290,291 ) ( 917,674 ) ( 12,213 ) ( 6,961 ) ( 936,848 ) 526,312 13,294 2,474 542,080 80 ( 428 ) － ( 348) $( 1,653,153 ) $( 19,207 ) $( 13,047 ) $( 1,685,407 ) $ 2,172,314 $ 10,432 $ 10,791 $ 2,193,537 September 30, 2021 December 31, 2020 September 30, 2020 $ 1,001,121 $ 933,589 $ 851,144 $ 1,558,020 $ 1,659,788 $ 1,083,190 0.96%～9.75% 0.96%～1.90% 0.96%

B. Lease liabilities

• 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 September 30, 2021, December 31, 2020 and September 30, 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 lessors due to serious economic implications of COVID-19 in 2020. The lessors agree decrease rent without any conditions. The Group has recognized aforementioned rent concessions $213,767 thousand and $0 thousand under deduction of depreciation of right-of-use assets, for the nine-month ended September 30, 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. The related expenses information was as follows:

ollows:
Expenses relating to short-term leases or low-value asset leases Total cash outflow for leases Expenses relating to short-term leases or low-value asset leases Total cash outflow for leases	For the three-month periods ended on September 30,
	2021 2020 $ 6,029 $ 27,309 $ 235,293 $ 302,020 For the nine-month periods ended on September 30,	2020
		$ 27,309
		$ 302,020
	2021 $ 41,150 $ 927,774	2020
		$ 67,798
		$ 907,671

(14)Investment property

Investment property
Cost Beginning Balance of period Ending Balance of period	For the nine-month period ended on September 30, 2021
	Land $ 391,808 $ 391,808	Buildings $ 393,715 $ 393,715	Total
			$ 785,523
			$ 785,523

～21～

	For the nine-month period ended on September 30,	For the nine-month period ended on September 30,	For the nine-month period ended on September 30,	For the nine-month period ended on September 30,	For the nine-month period ended on September 30,	For the nine-month period ended on September 30,	2021
		Land			Buildings	Total
Accumulated depreciation and
impairment loss
Beginning Balance of period	$		－$		( 258,332) $	(	258,332)
Depreciation			－		( 4,687)	(	4,687)
Ending Balance of period	$		－$		( 263,019) $	(	263,019)
Net Balance	$	391,808		$	130,696 $		522,504
		For the nine-month period ended on September 30,					2020
		Land			Buildings	Total
Cost
Beginning Balance of period	$	391,808		$	393,715 $		785,523
Ending Balance of period	$	391,808		$	393,715 $		785,523
Accumulated depreciation and
impairment loss
Beginning Balance of period	$		－$		( 252,082) $	(	252,082)
Depreciation			－		( 4,688)	(	4,688)
Ending Balance of period	$		－$		( 256,770) $	(	256,770)
Net Balance	$	391,808		$	136,945 $		528,753
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:
		For the three-month period ended September 30,
			2021			2020
Rental revenue from the investment
property		$			7,171 $		6,185
Direct operating costs / expenses		(			3,002) (		2,200)
		$			4,169 $		3,985
		For	the	nine-month period ended September 30,
				2021		2020
Rental revenue from the investment
property		$			20,680 $		17,899
Direct operating costs / expenses		(			9,026) (		8,572)
		$			11,654 $		9,327

(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:

(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 September 30, 2021, December 31, 2020 and September 30, 2020, the guarantee deposits received for operating leases were $5,498 thousand, $4,172 thousand and $3,554 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	September 30, 2021 $ 24,999 14,651 － $ 39,650	December 31, 2020	September 30, 2020
		$ 20,786 18,669 2,581	$ 19,314 20,916 2,755
		$ 42,036	$ 42,985

(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 was revalued by independent valuers. The management of the Corporation assessed that there were no significant changes in the fair value of investment property at September 30, 2021, December 31, 2020 and September 30, 2020.

(F)As of September 30, 2021, December 31, 2020 and September 30, 2020, investment property was used as collaterals for bank loan, please refer to Note 8.

～22～

(15)Intangible assets

Cost Beginning Balance of period Additions Effect of exchange rate changes Ending Balance of period Accumulated amortisation and impairment Beginning Balance of period Amortisation Effect of exchange rate changes Ending Balance of period Net balance Cost Beginning Balance of period Additions Effect of exchange rate changes Ending Balance of period Accumulated amortisation and impairment Beginning Balance of period Amortisation Effect of exchange rate changes Ending Balance of period Net balance		For the nine-month period ended September 30, 2021
	Patent $ 16,962 － ( 265 ) $ 16,697 $ ( 10,443 ) ( 1,159 ) 130 $ ( 11,472 ) $ 5,225
	Patent $ 17,592 － ( 370 $ 17,222 $ ( 8,986 ( 1,799 162 $ ( 10,623 $ 6,599

(16)Other noncurrent assets

Other noncurrent assets
Prepayment for equipment Deferred Expense Long-term lease payments receivables, net Net defined benefit assets Others	September 30, 2021 $ 116,195 202,954 59,593 － 28,846 $ 407,588	December 31, 2020 $ 50,926 217,168 61,518 － 24,577 $ 354,189	September 30, 2020
			$ 21,480 179,620 62,279 35,836 1,417
			$ 300,632

(17)Short-term debts

Short-term debts
Financial institution Loan without security : Bank overdraft L/C purchasing	September 30, 2021 borrowing $ 2,511 1,138,522 1,141,033	December 31, 2020 $ 47,973 751,357 799,330	September 30, 2020
			$ － 1,724,270
			1,724,270

～23～

September 30, 2021 Guaranteed loan : Bank overdraft － Bank borrowings － $ 1,141,033 Range of interest rate 0.75%～1.55% Collateral Refer to Note 8 (18) Short-term notes and bills payable September 30, 2021 Dah Chung Bills $ 21,000 Ta Ching Bills － Mega Bills － Less: unamortized discount ( 12) $ 20,988 Range of interest rate 0.552%～1.05% Collateral None (19) Other payables September 30, 2021 Other payables $ 76,406 Accrued expense 768,324 $ 844,730	December 31, 2020 － 127,500 $ 926,830 0.5814%～1.90% Refer to Note 8 December 31, 2020 $ － 50,000 26,500 ( 75 ) $ 76,425 0.72%～1.05% None December 31, 2020 $ 10,769 878,317 $ 889,086	September 30, 2020 37,476 565,530 $ 2,327,276 0.5814%～2.7355% Refer to Note 8 September 30, 2020 $ 17,000 300,000 30,000 ( 344 ) $ 346,656 0.68%～1.02% None September 30, 2020 $ 14,920 758,200 $ 773,120

(20)Provisions – current

Provisions–current
For the nine-month period ended September 30, 2021 2020 Balance, beginning of period $ 62 $ 170,525 Addition (Reduction) ( 62) ( 141,963) Balance, end of period $ － $ 28,562 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.	For the nine-month period	ended September 30,
		2020
		$ 170,525 ( 141,963)
		$ 28,562

(21)Bonds payable

Bonds payable
The first domestic unsecured convertible bonds The second domestic unsecured convertible bonds The first domestic secured bonds	September 30, 2021 $ － 1,434,007 1,996,274 $ 3,430,281	December 31, 2020 $ － 1,422,555 － $ 1,422,555	September 30, 2020
			$ 432,175 － －
			$ 432,175

• A.Relevant information on 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.

～24～

• (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.

• B. 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.

～25～

• (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 13, 2021, the conversion price of bonds was adjusted from $61.4 to $58.6 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.

• (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) Equity component Financial liability at fair value through profit and loss - current Liability component on issue date Interest calculated at the effective interest rate of 1.075% Liability component on September 30, 2021	$ 1,500,886 ( 68,615 ) ( 10,350 ) 1,421,921 12,086 $ 1,434,007

• C. Relevant information on first domestic secured bonds issued by the Corporation is as follows:

The Corporation raised and issued the first domestic secured bond 2,000,000 thousands at 1,000 thousand par value. The issuance period is 5 years. The simple interest is paid once a year; the interest rate is 0.55%. The first secured bonds are settled in cash at once as the maturity of the bond. As of September 30, 2021, unamortised issuance cost is 3,726 thousands

The first domestic secured bond was guaranteed by a bank.

• (22)Long-term debts

• (A) Long-term notes and bills payable

Mega Bills International Bills Dah Chung Bills China Bills Taiwan Bills Grand Bills Cooperative Bill Less: unamortized discount Range of interest rate	September 30, 2021 $ 25,000 451,000 － － － － － ( 315) $ 475,685 0.32%～0.81%	December 31, 2020 $ 850,000 500,000 300,000 500,000 306,000 400,000 300,000 ( 1,233) $ 3,154,767 0.40%～0.902%	September 30, 2020 $ 862,500 300,000 300,000 300,000 316,000 400,000 150,000 ( 1,143) $ 2,627,357 0.40%～0.902%

～26～

Collateral (B) Long-term debts Loan without security : Bank borrowings Guaranteed loan : Bank borrowings Less: Current portion of long-term liabilities Range of interest rate Collateral	September 30, 2021 December 31, 2020 Refer to Note 8 Refer to Note 8 September 30, 2021 December 31, 2020 $ 1,150,000 － 5,230,000 $ 2,757,400 ( 748,356 ) ( 999,200 ) $ 5,631,644 $ 1,758,200 0.5182%～1.90% 0.518%～1.75% Refer to Note 8 Refer to Note 8	September 30, 2020 Refer to Note 8 September 30, 2020 － $ 3,249,500 ( 2,000,000 ) $ 1,249,500 0.518%～1.25% 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.

(23)Other non current liabilities

Net defined benefit liability Deposit in guarantee Credit balance of investment under equity method Custody funds Provisions Other	September 30, 2021 $ 5,856 24,051 16,948 60,009 85,122 1,665 $ 193,651	December 31, 2020 $ 12,443 30,789 15,996 75,962 － 1,665 $ 136,855	September 30, 2020
			$ 1,665 23,825 15,429 57,398 － －
			$ 98,317

The provision is the liability of Group to be determined by the legal proceedings. Please refer to Note 11.

(24)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 $19,089 thousand and $17,972 thousand for the three months ended September 30, 2021 and 2020; and $56,961 thousand and $53,113 thousand for the nine months ended September 30, 2021 and 2020.

(B)Defined benefit plans

The Corporation has a defined benefit plan under the Labor Standards Law that Provides benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. Under the defined benefit plan, two units are guaranteed for each year of service for the first 15 years and one unit is guaranteed for each additional year of service from the 16[th] year, subject to a maximum of 45 units. The Corporation contributes an amount equal to 2% 〜 15%

～27～

of salaries paid each month to a pension fund since November, 1986. The fund is administered by the pension fund monitoring committee and deposited in the Bank of Taiwan.

The pension expenses for the period were as follows:

Operating cost Marketing expenses Administrative expenses Research and development expenses Operating cost Marketing expenses Administrative expenses Research and development expenses	For the three-month period ended September 30,	For the three-month period ended September 30,
	2021 2020 $ 755 $ 634 279 297 141 150 43 160 $ 1,218 $ 1,241 For the nine-month period ended September 30,	2020
		$ 634 297 150 160
		$ 1,241
	2021 $ 2,291 820 419 123 $ 3,653	2020
		$ 1,926 884 438 474
		$ 3,722

(25)Equity

(A) Common stock

Authorized shares (in thousands) Authorized capital Outstanding shares (in thousands) Outstanding common stocks	September 30, 2021 750,000 $ 7,500,000 476,134 $ 4,761,343	December 31, 2020 750,000 $ 7,500,000 476,134 $ 4,761,343	September 30, 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

Capital surplus
Additional paid-in capital arising from bond conversion Treasury stock transactions Convertible bonds stock option Other	September 30, 2021 $ 939,167 446,290 68,614 23,260 $ 1,477,331	December 31, 2020 $ 939,167 426,405 68,614 21,289 $ 1,455,475	September 30, 2020
			$ 654,477 426,405 24,438 20,839
			$ 1,126,159

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 Company 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 earning

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

～28～

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 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 dividends to be paid. Cash dividends to be distributed 50% ~ 80% of distribution of earnings 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 by stockholders’ meeting on July 30, 2021. The appropriations of 2019 were agreed by stockholders’ meeting on June 22, 2020.

The appropriations and dividends per share were as follows:

		Appropriation	Appropriation	of		Dividends Per Share (NT$)	Dividends Per Share (NT$)	Dividends Per Share (NT$)	Dividends Per Share (NT$)
		2020		2019		2020		2019
Legal reserve	$	146,453	$		60,438
Cash dividends	$	1,047,495	$	504,000		$ 2.2		$	1.2
Information on the appropriations agreed			by stockholders’ meeting is available on
the Market Observation Post		System website of the Taiwan Stock Exchange.
) Other equity items
		For the nine-month period ended September 30, 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	(	29,774 )				－		(	29,774 )
Changes on financial
assets at FVTOCI			－			19,825			19,825
Proportionate interest	from
associates and joint
ventures under equity			－	(		96,541	)	(	96,541 )

(D) Other equity items

～29～

		For the nine-month period	For the nine-month period	For the nine-month period	ended September 30,	ended September 30,	ended September 30,	ended September 30,	2021
		Exchange
		differences on		Unrealized		gains
		translating of		(losses)	on financial			Total
		foreign		assets at FVTOCI
		operations
method
Balance at end of period	$(	232,629 ) $				665,119 $			432,490
		For the nine-month period			ended September 30,			2020
	Exchange differences on translating of foreign operations			Unrealized gains (losses) on financial assets at FVTOCI			Gains (losses) on hedging instruments		Total
Balance at beginning of	$(	208,979 )$		230,677		$	－$		21,698
period
Exchange differences on	(	26,695 )			－		－	(	26,695 )
translating of foreign
operations
Changes on financial		－	(	48,113 )			－	(	48,113 )
assets at FVTOCI
Proportionate interest		－		335,879			－		335,879
from associates and joint
ventures under equity
method
Gains on hedging		－			－		36		36
instruments
Balance at end of period	$(	235,674 )$		518,443		$	36 $(		282,805 )

(E) Treasury stocks

Treasury stocks
In thousands shares For the nine-month period ended September 30, 2021 Reason for reacquisition Shares at beginning of period Additions Disposals Shares at end of period Subsidiaries’ Held 9,039 － － 9,039 In thousands shares For the nine-month period ended September 30, 2020 Reason for reacquisition Shares at beginning of period Additions Disposals Shares at end of period Subsidiaries’ Held 9,039 － － 9,039 The subsidiaries held the shares of the Corporation were as follows: shares (in thousands) Amount Fair Value September 30, 2021： CHENG-HSIN Engineering & Services CO.,LTD. 2,772 $ 31,340 $ 135,143 Sunrise Tech. Co. Ltd 6,267 85,540 305,493 $ 116,880 $ 440,636 December 31, 2020： CHENG-HSIN Engineering & Services CO., LTD 2,772 $ 31,340 $ 148,588 Sunrise Tech. Co. Ltd 6,267 85,540 335,885 $ 116,880 $ 484,473	In thousands shares For the nine-month period ended September 30, 2021
	Shares at beginning of period Additions Disposals Shares at end of period 9,039 － － 9,039 In thousands shares For the nine-month period ended September 30, 2020		Shares at end of period
			9,039
			Shares at end of period
			9,039
			Fair Value
		$	135,143 305,493
		$	440,636
		$	148,588 335,885
		$	484,473

～30～

shares (in thousands) September 30, 2020： CHENG-HSIN Engineering & Services CO.,LTD. 2,772 Sunrise Tech. Co. Ltd 6,267	Amount $ 31,340 85,540 $ 116,880	Fair Value
		$ 118,371 267,580
		$ 385,951

(F) Non-controlling interests

Non-controlling interests
	For the nine-month period		ended	September 30,
		2021		2020
Balance at beginning of period	$	253,252	$	238,566
Attributable to Proportionate
non-controlling interests :
Profit (Loss) for the period		7,938		17,811
Exchange differences on translating
of foreign operations	(	2,319 )	(	378 )
Increase (decrease) on
non-controlling interests	(	8,558 )	(	12,772 )
Other	(	11 )		－
Balance at end of period	$	250,302	$	243,227

(26)Operating revenue

For the three-month period ended September 30,

Operating revenue	For the three-month period ended September 30,	d ended September 30,
Sales revenue Rental revenue Service revenue Construction revenue Engineering revenue Professional revenue Maintenance revenue Other operating revenue Sales revenue Rental revenue Service revenue Construction revenue Engineering revenue Professional revenue Maintenance revenue Other operating revenue	2021 2020 $ 1,328,721 $ 1,151,752 11,123 10,572 352,327 519,792 83,188 － 1,866,335 1,474,403 1,365 2,634 464,938 356,024 11,426 29,026 $ 4,119,423 $ 3,544,203 For the nine-month period ended September 30,	2020
		$ 1,151,752 10,572 519,792 － 1,474,403 2,634 356,024 29,026
		$ 3,544,203
	2021 $ 4,578,327 32,142 1,240,039 1,005,841 4,749,978 3,935 1,229,857 23,444 $ 12,863,563	2020
		$ 3,232,157 30,723 1,434,331 － 4,033,245 4,903 1,075,802 115,870
		$ 9,927,031

(A)Disaggregation of revenue from contracts with customers

For the three-month period ended September 30, 2021

The timing of revenue recognition The revenue recognized at a point in time The revenue recognized over time		By operating segments	By operating segments
	Electricity Power $ 1,051,518 1,713,857 $ 2,765,375	Service $ 38,067 670,838 $ 708,905	Engineering and other $ 333,750 311,393 $ 645,143	Total
				$ 1,423,335 2,696,088
				$ 4,119,423

～31～

For the nine-month period ended September 30, 2021 By operating segments ElectricityPower Service Engineering and other Total The timing of revenue recognition The revenue recognized at a point in time $ 3,876,241 $ 78,682 $ 1,652,689 $ 5,607,612 The revenue recognized over time 4,329,565 2,089,164 837,222 7,255,951 $ 8,205,806 $ 2,167,846 $ 2,489,911 $ 12,863,563 For the three-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 838,590 $ － $ 137,375 $ 204,812 $ 1,180,777 The revenue recognized over time 1,398,207 520,681 433,405 11,133 2,363,426 $ 2,236,797 $ 520,681 $ 570,780 $ 215,945 $ 3,544,203 For the nine-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 2,475,586 $ －$ 281,710 $ 590,731 $ 3,348,027 The revenue recognized over time 3,749,121 1,436,246 1,363,073 30,564 6,579,004 $ 6,224,707 $ 1,436,246 $ 1,644,783 $ 621,295 $ 9,927,031 (B) Contract balances September 30, 2021 December 31, 2020 September 30, 2020 Contract assets Construction $ 2,446,684 $ 1,277,407 $ 1,761,664 Offer of services and maintenances 202,741 146,584 157,466 Others 31,365 43,989 41,272 Less: Loss allowance － ( 2,939 ) － Contract assets－current $ 2,680,790 $ 1,465,041 $ 1,960,402 Contract liabilities Sale of goods $ 298,559 $ 319,237 $ 176,721 Sale of real estate 44,062 190,606 738,833 Construction 2,469,395 2,220,671 2,575,023 Others 57,097 57,097 － Contract liabilities－current$ 2,869,113 $ 2,787,611 $ 3,490,577 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 nine-month period ended September 30, 2021 By operating segments ElectricityPower Service Engineering and other Total The timing of revenue recognition The revenue recognized at a point in time $ 3,876,241 $ 78,682 $ 1,652,689 $ 5,607,612 The revenue recognized over time 4,329,565 2,089,164 837,222 7,255,951 $ 8,205,806 $ 2,167,846 $ 2,489,911 $ 12,863,563 For the three-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 838,590 $ － $ 137,375 $ 204,812 $ 1,180,777 The revenue recognized over time 1,398,207 520,681 433,405 11,133 2,363,426 $ 2,236,797 $ 520,681 $ 570,780 $ 215,945 $ 3,544,203 For the nine-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 2,475,586 $ －$ 281,710 $ 590,731 $ 3,348,027 The revenue recognized over time 3,749,121 1,436,246 1,363,073 30,564 6,579,004 $ 6,224,707 $ 1,436,246 $ 1,644,783 $ 621,295 $ 9,927,031 (B) Contract balances September 30, 2021 December 31, 2020 September 30, 2020 Contract assets Construction $ 2,446,684 $ 1,277,407 $ 1,761,664 Offer of services and maintenances 202,741 146,584 157,466 Others 31,365 43,989 41,272 Less: Loss allowance － ( 2,939 ) － Contract assets－current $ 2,680,790 $ 1,465,041 $ 1,960,402 Contract liabilities Sale of goods $ 298,559 $ 319,237 $ 176,721 Sale of real estate 44,062 190,606 738,833 Construction 2,469,395 2,220,671 2,575,023 Others 57,097 57,097 － Contract liabilities－current$ 2,869,113 $ 2,787,611 $ 3,490,577 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 nine-month period ended September 30, 2021 By operating segments ElectricityPower Service Engineering and other Total The timing of revenue recognition The revenue recognized at a point in time $ 3,876,241 $ 78,682 $ 1,652,689 $ 5,607,612 The revenue recognized over time 4,329,565 2,089,164 837,222 7,255,951 $ 8,205,806 $ 2,167,846 $ 2,489,911 $ 12,863,563 For the three-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 838,590 $ － $ 137,375 $ 204,812 $ 1,180,777 The revenue recognized over time 1,398,207 520,681 433,405 11,133 2,363,426 $ 2,236,797 $ 520,681 $ 570,780 $ 215,945 $ 3,544,203 For the nine-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 2,475,586 $ －$ 281,710 $ 590,731 $ 3,348,027 The revenue recognized over time 3,749,121 1,436,246 1,363,073 30,564 6,579,004 $ 6,224,707 $ 1,436,246 $ 1,644,783 $ 621,295 $ 9,927,031 (B) Contract balances September 30, 2021 December 31, 2020 September 30, 2020 Contract assets Construction $ 2,446,684 $ 1,277,407 $ 1,761,664 Offer of services and maintenances 202,741 146,584 157,466 Others 31,365 43,989 41,272 Less: Loss allowance － ( 2,939 ) － Contract assets－current $ 2,680,790 $ 1,465,041 $ 1,960,402 Contract liabilities Sale of goods $ 298,559 $ 319,237 $ 176,721 Sale of real estate 44,062 190,606 738,833 Construction 2,469,395 2,220,671 2,575,023 Others 57,097 57,097 － Contract liabilities－current$ 2,869,113 $ 2,787,611 $ 3,490,577 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 nine-month period ended September 30, 2021 By operating segments ElectricityPower Service Engineering and other Total The timing of revenue recognition The revenue recognized at a point in time $ 3,876,241 $ 78,682 $ 1,652,689 $ 5,607,612 The revenue recognized over time 4,329,565 2,089,164 837,222 7,255,951 $ 8,205,806 $ 2,167,846 $ 2,489,911 $ 12,863,563 For the three-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 838,590 $ － $ 137,375 $ 204,812 $ 1,180,777 The revenue recognized over time 1,398,207 520,681 433,405 11,133 2,363,426 $ 2,236,797 $ 520,681 $ 570,780 $ 215,945 $ 3,544,203 For the nine-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 2,475,586 $ －$ 281,710 $ 590,731 $ 3,348,027 The revenue recognized over time 3,749,121 1,436,246 1,363,073 30,564 6,579,004 $ 6,224,707 $ 1,436,246 $ 1,644,783 $ 621,295 $ 9,927,031 (B) Contract balances September 30, 2021 December 31, 2020 September 30, 2020 Contract assets Construction $ 2,446,684 $ 1,277,407 $ 1,761,664 Offer of services and maintenances 202,741 146,584 157,466 Others 31,365 43,989 41,272 Less: Loss allowance － ( 2,939 ) － Contract assets－current $ 2,680,790 $ 1,465,041 $ 1,960,402 Contract liabilities Sale of goods $ 298,559 $ 319,237 $ 176,721 Sale of real estate 44,062 190,606 738,833 Construction 2,469,395 2,220,671 2,575,023 Others 57,097 57,097 － Contract liabilities－current$ 2,869,113 $ 2,787,611 $ 3,490,577 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 nine-month period ended September 30, 2021 By operating segments ElectricityPower Service Engineering and other Total The timing of revenue recognition The revenue recognized at a point in time $ 3,876,241 $ 78,682 $ 1,652,689 $ 5,607,612 The revenue recognized over time 4,329,565 2,089,164 837,222 7,255,951 $ 8,205,806 $ 2,167,846 $ 2,489,911 $ 12,863,563 For the three-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 838,590 $ － $ 137,375 $ 204,812 $ 1,180,777 The revenue recognized over time 1,398,207 520,681 433,405 11,133 2,363,426 $ 2,236,797 $ 520,681 $ 570,780 $ 215,945 $ 3,544,203 For the nine-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 2,475,586 $ －$ 281,710 $ 590,731 $ 3,348,027 The revenue recognized over time 3,749,121 1,436,246 1,363,073 30,564 6,579,004 $ 6,224,707 $ 1,436,246 $ 1,644,783 $ 621,295 $ 9,927,031 (B) Contract balances September 30, 2021 December 31, 2020 September 30, 2020 Contract assets Construction $ 2,446,684 $ 1,277,407 $ 1,761,664 Offer of services and maintenances 202,741 146,584 157,466 Others 31,365 43,989 41,272 Less: Loss allowance － ( 2,939 ) － Contract assets－current $ 2,680,790 $ 1,465,041 $ 1,960,402 Contract liabilities Sale of goods $ 298,559 $ 319,237 $ 176,721 Sale of real estate 44,062 190,606 738,833 Construction 2,469,395 2,220,671 2,575,023 Others 57,097 57,097 － Contract liabilities－current$ 2,869,113 $ 2,787,611 $ 3,490,577 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 nine-month period ended September 30, 2021 By operating segments ElectricityPower Service Engineering and other Total The timing of revenue recognition The revenue recognized at a point in time $ 3,876,241 $ 78,682 $ 1,652,689 $ 5,607,612 The revenue recognized over time 4,329,565 2,089,164 837,222 7,255,951 $ 8,205,806 $ 2,167,846 $ 2,489,911 $ 12,863,563 For the three-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 838,590 $ － $ 137,375 $ 204,812 $ 1,180,777 The revenue recognized over time 1,398,207 520,681 433,405 11,133 2,363,426 $ 2,236,797 $ 520,681 $ 570,780 $ 215,945 $ 3,544,203 For the nine-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 2,475,586 $ －$ 281,710 $ 590,731 $ 3,348,027 The revenue recognized over time 3,749,121 1,436,246 1,363,073 30,564 6,579,004 $ 6,224,707 $ 1,436,246 $ 1,644,783 $ 621,295 $ 9,927,031 (B) Contract balances September 30, 2021 December 31, 2020 September 30, 2020 Contract assets Construction $ 2,446,684 $ 1,277,407 $ 1,761,664 Offer of services and maintenances 202,741 146,584 157,466 Others 31,365 43,989 41,272 Less: Loss allowance － ( 2,939 ) － Contract assets－current $ 2,680,790 $ 1,465,041 $ 1,960,402 Contract liabilities Sale of goods $ 298,559 $ 319,237 $ 176,721 Sale of real estate 44,062 190,606 738,833 Construction 2,469,395 2,220,671 2,575,023 Others 57,097 57,097 － Contract liabilities－current$ 2,869,113 $ 2,787,611 $ 3,490,577 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 nine-month period ended September 30, 2021 By operating segments ElectricityPower Service Engineering and other Total The timing of revenue recognition The revenue recognized at a point in time $ 3,876,241 $ 78,682 $ 1,652,689 $ 5,607,612 The revenue recognized over time 4,329,565 2,089,164 837,222 7,255,951 $ 8,205,806 $ 2,167,846 $ 2,489,911 $ 12,863,563 For the three-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 838,590 $ － $ 137,375 $ 204,812 $ 1,180,777 The revenue recognized over time 1,398,207 520,681 433,405 11,133 2,363,426 $ 2,236,797 $ 520,681 $ 570,780 $ 215,945 $ 3,544,203 For the nine-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 2,475,586 $ －$ 281,710 $ 590,731 $ 3,348,027 The revenue recognized over time 3,749,121 1,436,246 1,363,073 30,564 6,579,004 $ 6,224,707 $ 1,436,246 $ 1,644,783 $ 621,295 $ 9,927,031 (B) Contract balances September 30, 2021 December 31, 2020 September 30, 2020 Contract assets Construction $ 2,446,684 $ 1,277,407 $ 1,761,664 Offer of services and maintenances 202,741 146,584 157,466 Others 31,365 43,989 41,272 Less: Loss allowance － ( 2,939 ) － Contract assets－current $ 2,680,790 $ 1,465,041 $ 1,960,402 Contract liabilities Sale of goods $ 298,559 $ 319,237 $ 176,721 Sale of real estate 44,062 190,606 738,833 Construction 2,469,395 2,220,671 2,575,023 Others 57,097 57,097 － Contract liabilities－current$ 2,869,113 $ 2,787,611 $ 3,490,577 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 nine-month period ended September 30, 2021 By operating segments ElectricityPower Service Engineering and other Total The timing of revenue recognition The revenue recognized at a point in time $ 3,876,241 $ 78,682 $ 1,652,689 $ 5,607,612 The revenue recognized over time 4,329,565 2,089,164 837,222 7,255,951 $ 8,205,806 $ 2,167,846 $ 2,489,911 $ 12,863,563 For the three-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 838,590 $ － $ 137,375 $ 204,812 $ 1,180,777 The revenue recognized over time 1,398,207 520,681 433,405 11,133 2,363,426 $ 2,236,797 $ 520,681 $ 570,780 $ 215,945 $ 3,544,203 For the nine-month period ended September 30, 2020 By operating segments ElectricityPower Service Engineering Other Total The timing of revenue recognition The revenue recognized at a point in time $ 2,475,586 $ －$ 281,710 $ 590,731 $ 3,348,027 The revenue recognized over time 3,749,121 1,436,246 1,363,073 30,564 6,579,004 $ 6,224,707 $ 1,436,246 $ 1,644,783 $ 621,295 $ 9,927,031 (B) Contract balances September 30, 2021 December 31, 2020 September 30, 2020 Contract assets Construction $ 2,446,684 $ 1,277,407 $ 1,761,664 Offer of services and maintenances 202,741 146,584 157,466 Others 31,365 43,989 41,272 Less: Loss allowance － ( 2,939 ) － Contract assets－current $ 2,680,790 $ 1,465,041 $ 1,960,402 Contract liabilities Sale of goods $ 298,559 $ 319,237 $ 176,721 Sale of real estate 44,062 190,606 738,833 Construction 2,469,395 2,220,671 2,575,023 Others 57,097 57,097 － Contract liabilities－current$ 2,869,113 $ 2,787,611 $ 3,490,577 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:
								Total
								$ 5,607,612 7,255,951
								$ 12,863,563
							Other		Total
							$ 204,812 11,133		$ 1,180,777 2,363,426
							$ 215,945		$ 3,544,203
		ElectricityPower	Service		Engineering		Other $ 590,731 30,564 $ 621,295		Total
		$ 2,475,586 3,749,121	$ － 1,436,246		$	281,710 1,363,073			$ 3,348,027 6,579,004
		$ 6,224,707	$ 1,436,246		$	1,644,783			$ 9,927,031
	Contract assets Level of completion measures change Contract liabilities Level of completion measures change			For the nine-month period ended September 30, 2021 2020 $ 921,884 $ 215,079 $ 212,272 $( 78,470)
				2021 $ 921,884 $ 212,272

	For the nine-month period	ended	September 30,
	2021		2020
Contract assets
Level of completion measures change$	921,884	$	215,079
Contract liabilities
Level of completion measures change$	212,272	$(	78,470)

～32～

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

	was as follows:
(27) (28) (29)	Beginning balance of contract liabilities Sale of goods Offer of services and maintenances Beginning balance of contract liabilities Sale of goods Offer of services and maintenances Interest income Bank deposits Financial assets at amortized cost Other Bank deposits Financial assets at amortized cost Other Other income Dividend income Other Dividend 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 / liabilities at fair value through profit or loss Other expenditure Impairment loss	For the three-month period ended September 30, 2021 2020 $ 166,942 $ 362 1,204 238 $ 168,146 $ 600 For the nine-month period ended September 30, 2021 2020 $ 233,579 $ 22,928 34,230 30,945 $ 267,809 $ 53,873 For the three-month period ended September 30, 2021 2020 $ 1,592 $ 2,446 ( 4 ) － 295 604 $ 1,883 $ 3,050 For the nine-month period ended September 30, 2021 2020 $ 3,548 $ 8,777 953 － 1,349 2,001 $ 5,850 $ 10,778 For the three-month period ended September 30, 2021 2020 $ 14,338 $ 31,582 29,665 16,431 $ 44,003 $ 48,013 For the nine-month period ended September 30, 2021 2020 $ 20,807 $ 31,582 56,002 52,951 $ 76,809 $ 84,533 For the three-month period ended September 30, 2021 2020 $( 3,412 ) $ 1,949 133 988 12 730 ( 2,881 ) ( 9,316 ) 1,826 17,038 ( 94,511 ) ( 6,008 ) 113 ( 22,031) $( 98,720) $( 16,650)
		2021 $( 3,412 ) 133 12 ( 2,881 ) 1,826 ( 94,511 ) 113 $( 98,720)

～33～

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 / liabilities at fair value through profit or loss Other expenditure Impairment loss	For the nine-month period ended September 30, 2021 2020 $ 56,328 $ 1,270 3,659 1,994 120 1,064 ( 18,259 ) ( 27,124 ) ( 9,200 ) ( 44,355 ) ( 188,858 ) ( 22,158 ) ( 28,997) ( 22,031) $( 185,207) $( 111,340)
	2021 $ 56,328 3,659 120 ( 18,259 ) ( 9,200 ) ( 188,858 ) ( 28,997) $( 185,207)

(30)Finance costs

inance costs
Interest expenses Interest expenses of lease liabilities Capitalisation of interest Interest expenses Interest expenses of lease liabilities Capitalisation of interest	For the three-month period ended September 30, 2021 2020 $( 31,778 ) $( 17,950 ) ( 7,764 ) ( 4,744 ) 20,545 3,789 $( 18,997) $( 18,905) For the nine-month period ended September 30, 2021 2020 $( 70,248 ) $( 50,759 ) ( 24,437 ) ( 12,767 ) 30,095 12,134 $( 64,590) $( 51,392)
	2021 $( 70,248 ) ( 24,437 ) 30,095 $( 64,590)

(31)Expenses by nature

Employee benefit expense Salary Labor & health insurance Pension Others Depreciation Amortization Employee benefit expense Salary Labor & health insurance Pension Others Depreciation Amortization	For the three-month period ended September 30, 2021	For the three-month period ended September 30, 2021	For the three-month period ended September 30, 2021	For the three-month period ended September 30, 2020	For the three-month period ended September 30, 2020	For the three-month period ended September 30, 2020
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs	Classified as Operating Expenses $ 164,424 11,085 5,509 12,867 11,738 2,963 $ 208,586	Total
	$ 289,313 34,101 19,884 16,284 309,425 36,105	$ 102,106 11,565 6,975 13,321 30,580 3,411	$ 391,419 45,666 26,859 29,605 340,005 39,516	$ 279,058 27,831 18,048 17,821 403,543 29,706		$ 443,482 38,916 23,557 30,688 415,281 32,669
	$ 705,112	$ 167,958	$ 873,070	$ 776,007		$ 984,593
						September 30,
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs	Classified as Operating Expenses $ 723,702 37,923 13,454 39,296 55,736 8,941 $ 879,052	Total
	$ 939,341 101,898 58,956 56,193 1,107,323 108,618	$ 668,881 37,317 14,239 44,401 88,220 9,900	$ 1,608,222 139,215 73,195 100,594 1,195,543 118,518	$ 841,062 82,764 51,099 54,342 1,144,771 98,514		$ 1,564,764 120,687 64,553 93,638 1,200,507 107,455
	$ 2,372,329	$ 862,958	$ 3,235,287	$ 2,272,552		$ 3,151,604

～34～

• (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 and supervisors after offsetting the cumulative losses, if any. The Corporation recognized accrued employees’ compensation was $5,500 thousand and $17,249 thousand for the three-month periods ended September 30, 2021 and for the nine-month periods ended September 30, 2021, respectively. The Corporation recognized accrued remuneration to directors was $11,000 thousand and $34,499 thousand for the three-month periods ended September 30, 2021 and for the nine-month periods ended September 30, 2021, respectively. The Corporation recognized accrued employees’ compensation was $3,908 thousand and $8,343 thousand for the three-month periods ended September 30, 2020 and for the nine-month periods ended September 30, 2020, respectively. The Corporation recognized accrued remuneration to directors was $7,816 thousand and $16,686 thousand for the three-month periods ended September 30, 2020 and for the nine-month periods ended September 30, 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 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.

(32)Income tax

(A) Components of income tax expense:

me tax Components of income tax expense:
Current tax: Current tax on profits for the period Income tax adjustments on prior years Deferred tax: Temporary differences Total income tax expense recognized in profit or loss Current tax: Current tax on profits for the period Income tax adjustments on prior years Deferred tax: Temporary differences Total income tax expense recognized in profit or loss	For the three-month period ended September 30, 2021 2020 $ 149,902 $ 60,433 ( 56 ) 6 ( 36,278) （ 9,356) $ 113,568 $ 51,083 For the nine-month period ended September 30, 2021 2020 $ 448,595 $ 152,386 7,729 （ 6,255 ) （ 93,462) （ 18,504) $ 362,862 $ 127,627
		2021 $ 448,595 7,729 （ 93,462) $ 362,862

～35～

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

	For the three-month period ended	For the three-month period ended	For the three-month period ended	For the three-month period ended	September 30,
		2021			2020
Profit before income tax	$	551,968	$		387,271
Income tax payable calculated by
Statutory tax rate		137,016			88,450
Adjustment to effect of tax:
Permanent income tax difference effect		27,982	（		20,100 )
Exemption income	（	8,427 )	（		1,454 )
Loss carry forward	(	3,763 )	（		4,264 )
Income tax credits	（	2,883 )	（		3,322 )
Income tax adjustments on prior years	(	56 )			6
Land Value Increment Tax		159			1,092
Other	(	182 )			31
Net differences on deferred income tax	(	36,278 )	（		9,356)
Income tax expense recognized in profit
or loss	$	113,568	$		51,083
	For the nine-month period ended September 30,
		2021			2020
Profit before income tax	$	1,738,027		$	843,804
Income tax payable calculated by Statutory
tax rate	$	409,420		$	222,451
Adjustment to effect of tax:
Permanent income tax difference effect		85,520		（	41,910 )
Exemption income	（	48,584	)	（	2,658 )
Loss carry forward	（	9,451	)	（	18,561 )
Income tax credits	（	8,649	)	（	9,934 )
Additional tax on un-appropriated earnings		14,144			2,010
Income tax adjustments on prior years		7,729		（	6,255 )
Land Value Increment Tax		1,047			1,092
Other		5,148		（	104 )
Net differences on deferred income tax	(	93,462	)	(	18,504)
Income tax expense recognized in profit	or
loss	$	362,862		$	127,627

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

For the nine-month period ended September 30, 2021

Deferred income tax assets Temporary differences Unrealized reduce inventory to market Unrealized deferred sales profit Others	January 1, 2021 $ 113,023 155,413 6,564 $ 275,000	Recognized in Profit or Loss $ 18,992 74,617 ( 147) $ 93,462	September 30, 2021
			$ 132,015 230,030 6,417
			$ 368,462

～36～

Deferred income tax liabilities January 1, 2021 Temporary differences Property, plant and equipment $ 286,075 Exchange differences on translating foreign operations 54,621 Others 108 $ 340,804 For the nine-month period ended September 30, 2020 Deferred income tax assets January 1, 2020 Temporary differences Unrealized reduce inventory to market $ 77,386 Unrealized loss from disposal of property, plant and equipment 10,976 Unrealized deferred sales profit － Other 8,022 $ 96,384 Deferred income tax liabilities Temporary differences Property, plant and equipment $ 286,075 Exchange differences on translating foreign operations 54,621 Others 57 $ 340,753	Recognized in Profit or Loss $ － － － $ － Recognized in Profit or Loss $ 16,193 ( 10,976 ) 16,017 ( 2,648) $ 18,586 $ － － 82 $ 82	September 30, 2021
		$ 286,075 54,621 108
		$ 340,804
		September 30, 2020
		$ 93,579 － 16,017 5,374
		$ 114,970
		$ 286,075 54,621 139
		$ 340,835

(C)Affected by COVID-19, the Corporation’s income tax payable 390,010 thousand for 2020 was approved on June 29, 2021 by National Taxation Bureau of Taipei, Ministry of Finance to pay in 36 installments. As of September 30, 2021, the 3 installment tax has been paid.

(D)Income tax assessed and approved situations

Except for 2018, the Corporation income tax return filings through 2019 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.

(33)Earnings per share (EPS)

Earnings per share (EPS)
For the three-month period ended September 30, 2021 2020 Basic EPS ($): Income attributable to owners of parent $ 436,711 $ 330,101 Weighted average number of ordinary shares in issue used in calculating basic EPS (in thousands) 467,096 412,421 Basic EPS ($) after tax $ 0.93 $ 0.80 For the nine-month period ended September 30, 2021 2020 Basic EPS ($): Income attributable to owners of parent $ 1,367,227 $ 698,366 Weighted average number of ordinary shares in issue used in calculating basic EPS (in thousands) 467,096 412,421 Basic EPS ($) after tax $ 2.93 $ 1.69	For the three-month period ended September 30,
		2021 2020 $ 436,711 $ 330,101 467,096 412,421 $ 0.93 $ 0.80 For the nine-month period ended September 30,	2020
			$ 330,101
			412,421
			$ 0.80
		2021 $ 1,367,227 467,096 $ 2.93	2020
			$ 698,366
			412,421
			$ 1.69

～37～

	For the three-month period	For the three-month period	For the three-month period	For the three-month period	ended September
			30,
		2021			2020
Diluted earnings per share:
Income attributable to owners of parent	$	436,711		$	330,101
Assumed conversion of all dilutive potential
ordinary share:
Effect shares on convertible bonds		3,062			3,492
Income attributable to ordinary shareholders of
the parent plus assumed conversion of dilutive
potential ordinary shares	$	439,773		$	333,593
Weighted average number of ordinary shares in
issue used in calculating basic EPS (in
thousands)		467,096			412,421
Weighted average number of ordinary shares of
convertible bonds (in thousands)		25,597			17,071
Income attributable to weighted average number
of ordinary shareholders of the parent plus
assumed conversion of dilutive potential
ordinary shares (in thousands)		492,693			429,492
Diluted EPS ($) after tax	$	0.89		$	0.78
	For the nine-month period				ended September
			30,
		2021			2020
Diluted earnings per share:
Income attributable to owners of parent	$	1,367,227		$	698,366
Assumed conversion of all dilutive potential
ordinary share:
Effect shares on convertible bonds		9,162			9,921
Income attributable to ordinary shareholders of
the parent plus assumed conversion of dilutive
potential ordinary shares	$	1,376,389		$	708,287
Weighted average number of ordinary shares in
issue used in calculating basic EPS (in
thousands)		467,096			412,421
Weighted average number of ordinary shares of
convertible bonds (in thousands)		25,597			17,071
Income attributable to weighted average number
of ordinary shareholders of the parent plus
assumed conversion of dilutive potential
ordinary shares (in thousands)		492,693			429,492
Diluted EPS ($) after tax	$	2.79		$	1.65

(34)Reconciliation of Liabilities from Financing Activities

For the nine-month periods ended September 30, 2021：

Short-term debts Short-term notes and bills payable Lease liabilities Bonds payable Long-term liabilities (including Current portion of long-term liabilities) Guarantee deposit received	January 1, 2020 $ 926,830 76,425 2,593,377 1,422,555 5,912,167 30,789 $ 10,962,143	Non-cash changes Cash Flows Others $ 214,203 $ － ( 55,500 ) 63 ( 886,624 ) 852,388 1,996,270 11,456 942,600 918 ( 6,738 ) － $ 2,204,211 $ 864,825	September 30, 2020
			$ 1,141,033 20,988 2,559,141 3,430,281 6,855,685 24,051
			$ 14,031,179

～38～

For the nine-month periods ended September 30, 2020：

Short-term debts Short-term notes and bills payable Lease liabilities Bonds payable Long-term liabilities (including Current portion of long-term liabilities) Guarantee deposit received	January 1, 2020 $ 718,945 14,980 1,766,479 － 4,152,417 26,758 $ 6,679,579	Non-cash changes Cash Flows Others September 30,2020 $ 1,608,331 $ －$ 2,327,276 332,000 ( 324 ) 346,656 ( 839,873 ) 1,007,728 1,934,334 1,500,134 ( 1,067,959 ) 432,175 1,725,000 ( 560 ) 5,876,857 ( 2,933 ) － 23,825 $ 4,322,659 $( 61,115 )$ 10,941,123	September 30,2020

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) Qingdao SunHydro Technology Group Co., Ltd. Associates 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 Director, supervisor, general manager and vice Key management Manager

(2) Trading transactions

A.Sales revenue

Associates Other related parties Associates Other related parties	For the three-monthperiod ended September 30,	For the three-monthperiod ended September 30,
	2021 2020 $ 48,721 $ 1,951 5,817 13,512 $ 54,538 $ 15,463 For the nine-monthperiod ended September 30,	2020
		$ 1,951 13,512
		$ 15,463
	2021 $ 54,042 28,123 $ 82,165	2020
		$ 6,076 36,526
		$ 42,602

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

～39～

B.Purchase

Purchase
Associates Other related parties Associates Other related parties	For the three-month period ended September 30,
	2021 2020 $ 5,923 $ 8,887 － 2,392 $ 5,923 $ 11,279 For the nine-month period ended September 30,	2020
		$ 8,887 2,392
		$ 11,279
	2021 $ 24,739 4,911 $ 29,650	2020
		$ 24,171 10,084
		$ 34,255

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

• C.Property transactions

• (A)Acquisitions of Property, plant and equipment

Associates Associates Proceeds from disposal Associates Associates Associates Associates	Price	Price
	Forthe three-monthperiod ended September30,
	2021 2020 $ 1,384 $ － Price	2020
		$ －
	Forthenine-monthperiod ended September30,
	2021 2020 $ 1,600 $ － of property, plant and equipment Price	2020
		$ －
	Forthe three-monthperiod ended September30,
	2021 2020 $ 1,613 $ － Price	2020
		$ －
	Forthenine-monthperiod ended September30,
	2021 2020 $ 1,613 $ － Loss (Gain) on disposal	2020
		$ －
	Forthe three-monthperiod ended September30,
	2021 2020 $ 365 $ － Loss (Gain) on disposal	2020
		$ －
	Forthenine-monthperiod ended September30,
	2021 $ 365	2020
		$ －

• (B)Proceeds from disposal of property, plant and equipment

• (C)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

Associates Other related parties	For the three-month period ended September 30,	For the three-month period ended September 30,
	2021 $ 1,480 － $ 1,480	2020
		$ 1,355 12
		$ 1,367

～40～

For the nine-month period ended September 30, 2021 2020 Associates $ 3,990 $ 3,964 Other related parties － 36 $ 3,990 $ 4,000 (B) Other income For the three-month period ended September 30, 2021 2020 Associates Wuxi Hengchi $ － $ 612 Others 235 410 $ 235 $ 1,022 For the nine-month period ended September 30, 2021 2020 Associates Wuxi Hengchi $ 7,426 $ 1,094 Others 701 1,081 $ 8,127 $ 2,175 E. Contract Assets September 30, 2021 December 31, 2020 September 30, 2020 Associates $ － $ 1,154 $ 3,279 F. Notes receivable September 30, 2021 December 31, 2020 September 30, 2020 Associates $ － $ － $ 427 G. Accounts receivable, net September 30, 2021 December 31, 2020 September 30, 2020 Associates $ 25,868 $ 2,438 $ 4,553 Other related parties － 5,218 4,171 $ 25,868 $ 7,656 $ 8,724 H. Accounts payable September 30, 2021 December 31, 2020 September 30, 2020 Associates $ 7,711 $ 12,689 $ 12,336 Other related parties － 3,691 1,669 $ 7,711 $ 16,380 $ 14,005 I. Others accounts receivable / payable (A) Others receivable (excluding loans to related parties) September 30, 2021 December 31, 2020 September 30, 2020 Associates Guang-hsin $ 11,441 $ 229 $ 6,309 Sheng-yuan － － 12,903 Other 386 243 739 $ 11,827 $ 472 $ 19,951 (B) Others payable-other September 30, 2021 December 31, 2020 September 30, 2020 Associates $ 630 $ 950 $ 13,947 Other related parties － － 2,664 $ 630 $ 950 $ 16,611 J. Prepayments September 30, 2021 December 31, 2020 September 30, 2020 Associates $ 61,307 $ 32,708 $ 32,708	For the nine-month period ended September 30,	For the nine-month period ended September 30,	For the nine-month period ended September 30,	For the nine-month period ended September 30,	For the nine-month period ended September 30,
	2021 2020 $ 3,990 $ 3,964 － 36 $ 3,990 $ 4,000 For the three-month period ended September 30,	2020
		$ 3,964 36
		$ 4,000
	2021 2020 $ － $ 612 235 410 $ 235 $ 1,022 For the nine-month period ended September 30,	2020
		$ 612 410
		$ 1,022
	2021			2020
	$	$		1,094 1,081
	$	$		2,175
				September 30, 2020
				$ 3,279
				September 30, 2020
				$ 427
				September 30, 2020
				$ 4,553 4,171
				$ 8,724
					September 30, 2020
					$ 12,336 1,669
					$ 14,005
					September 30, 2020
				$ 6,309 12,903 739
				$ 19,951
				September 30, 2020
			$ 32,708

～41～

K.Prepayment for equipment (under other non-current assets)

K. Prepayment for equipment (under other non-current assets)	K. Prepayment for equipment (under other non-current assets)	rent assets)	rent assets)
September 30, 2021 December 31, 2020 September 30, 2020 Associates $ 12,422 $ － $ － L. Contract Liabilities September 30, 2021 December 31, 2020 September 30, 2020 Associates $ 23,844 $ 25 $ － M. Guarantee deposit received September 30, 2021 December 31, 2020 September 30, 2020 Associates $ － $ － $ 320 N. Financial Provided (under Other receivable) September 30, 2021 December 31, 2020 September 30, 2020 Associates Guang-hsin $ 45,000 $ 43,550 $ 43,550 Li-Xiang 7,500 12,500 12,500 Nomura Chung-Hsin 15,337 33,800 27,200 $ 67,837 $ 89,850 $ 83,250 Range of Interest rate 1.00%～1.80% 1.20%～2.50% 1.20%～2.50% Interest revenues For the three-month periods ended September 30, 2021 2020 Associates $ 190 $ 349 Interest revenues For the nine-month periods ended September 30, 2021 2020 Associates $ 654 $ 1,034 O. Financial Provided (under Short-term debts) September 30, 2021 December 31, 2020 September 30, 2020 Associates $ － $ － $ － Range of Interest rate － 1.70%～1.90% 1.72%～1.90% Interest expenses For the three-month periods ended September 30, 2021 2020 Associates $ － $ 89 Interest expenses For the nine-month periods ended September 30, 2021 2020 Associates $ － $ 410 P. Dividend income (deduction of investment accounted under the equity method) For the three-month periods ended September 30, 2021 2020 Associates Guang-hsin － 5,679 Sheng-yuan － 12,903 $ － $ 18,582 For the nine-month periods ended September 30, 2021 2020 Associates Guang-hsin $ 11,357 $ 5,679		December 31, 2020 $ － December 31, 2020 $ 25 December 31, 2020 $ － December 31, 2020 $ 43,550 12,500 33,800 $ 89,850 1.20%～2.50% Interest revenues		September 30, 2020
				$ －
				September 30, 2020
				$ －
				September 30, 2020
				$ 320
				September 30, 2020
				$ 43,550 12,500 27,200
				$ 83,250
				1.20%～2.50%
	For the three-month periods ended September 30,
	2021 2020 $ 190 $ 349 Interest revenues For the nine-month periods ended September 30, 2021 2020 $ 654 $ 1,034 Short-term debts) September 30, 2021 December 31, 2020 September 30, 2020 $ － $ － $ － － 1.70%～1.90% 1.72%～1.90% Interest expenses		2020
			$ 349
		654 $ December 31, 2020 $ － 1.70%～1.90% Interest expenses		2020
			$	1,034
	Short-term debts) September 30, 2021 $ － －			September 30, 2020 $ － 1.72%～1.90%
	For the three-month periods ended September 30,
	2021 2020 $ － $ 89 Interest expenses		2020
			$ 89
	For the nine-month periods ended September 30,
			2020
			$ 410
	2021 2020 － 5,679 － 12,903 $ － $ 18,582 For the nine-month periods ended September 30,		2020
			5,679 12,903
			$ 18,582
	2021 $ 11,357		2020
			$ 5,679

～42～

Sheng-yuan Fumei Nantong L-S	For the nine-month periods ended September 30, 2021 2020 － 12,903 － 20,344 23,700 17,882 $ 35,057 $ 56,808	For the nine-month periods ended September 30, 2021 2020 － 12,903 － 20,344 23,700 17,882 $ 35,057 $ 56,808
		2020 12,903 20,344 17,882 $ 56,808

• (3) Key management compensation

Salaries and other short-term employee benefits Post-employment benefits Salaries and other short-term employee benefits Post-employment benefits	For the three-month periods ended September 30,	For the three-month periods ended September 30,
	2021 2020 $ 15,905 $ 12,397 282 256 $ 16,187 $ 12,653 For the nine-month periods ended September 30, 2021 2020 $ 68,838 $ 42,329 844 753 $ 69,682 $ 43,082	2020
		$ 12,397 256
		$ 12,653
	2021 $ 68,838 844 $ 69,682

8. PLEDGED ASSETS

• (1)Assets (book values) were pledged for bank loans or 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	September 30, 2021 $ 249,580 26,904 － 119,030 522,503 278,484 195,842 $ 1,392,343	December 31, 2020 $ 263,441 140,639 － 120,435 527,191 306,190 156,128 $ 1,514,024	September 30, 2020
			$ 209,504 179,259 242,956 120,903 431,687 243,924 152,314
			$ 1,580,547

• (2)As of September 30, 2021, the Group provided the 186,440 thousand shares of subsidiaries servers as collaterals for bank loan

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

Except as note 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 September 30, 2021, December 31, 2020 and September 30, 2020, amounts of significant engineering contracts under construction and others signed were $19,482,344 thousand, $19,212,337 thousand and $18,602,226 thousand, respectively; and payments made were $15,507,007 thousand, $12,789,986 thousand and $11,965,090 thousand, respectively.

• (C) As of September 30, 2021, December 31, 2020 and September 30, 2020, the unused letters of credit listed as follows:

～43～

				Expressed in thousands	Expressed in thousands	Expressed in thousands
		September 30,		December 31,		September 30,
Currency		2021		2020		2020
USD		677		1,013		345
Japanese Yen		64,581		31,447		28,942
Euro		－		1,475		81
(D) As of September 30, 2021,		December 31,	2020 and September			30, 2020, the
guarantees of significant engineering contracts			pledged by banks were			as follows:
		September 30,		December 31,		September 30,
		2021		2020		2020
Bank of Taiwan	$	1,568,947	$	1,548,962	$	1,502,746
Hua Nan Commercial Bank		1,338,520		1,488,973		1,437,020
First Bank		60,319		66,046		68,752
DBS Bank		26,611		14,420		－
Union Bank of Taiwan		282,466		118,336		39,720
Mega International
Commercial Bank Co.,
Ltd		715,891		746,392		689,627
Yuanta Bank		39,907		61,046		31,303
Land Bank of Taiwan		80,000		115,000		115,000
Shanghai Commercial &
Savings Bank, Ltd.		457,364		424,944		304,801
Bank of Panhsin		39,309		37,616		20,561
The Export-Import Bank of
the ROC		6,541		6,541		6,541
	$	4,615,875	$	4,628,276	$	4,216,071

• (E) As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group issued notes as guarantee for bank borrowing and engineering contracts, etc. were $40,992,706 thousand, $32,375,407 thousand and $29,876,781 thousand, respectively.

• (F) As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group endorsed as guarantees for other companies including related parties were NTD $190,534 thousand, NTD $190,534 thousand and NTD $433,490 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,

～44～

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

The Corporation received first judgment of the Taichung District Court in October 2021. In the Power Chassis System case, the Taichung District Court ruled that chairman of the Corporation and other executives had breached the Securities and Exchange Act and that the Corporation was confiscated about 2,099,160 thousand. The Corporation believes that the first judgment of the court did not investigate the evidence of the Corporation’s request thoroughly, so it ruled that it was confiscated, which was unreasonable and the judgment was improper obviously. In order to maintain the reputation and prove innocence, the Corporation, chairman of the Corporation and others has appointed lawyers to appeal on November 8, 2021. The Corporation has estimated related losses and liability provision in the financial report.

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 optimisation 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.

(C)Financial instruments

• A. Categories of financial instruments

Financial assets Measured at FVTPL Mandatorily at FVTPL Hedging Financial assets Measured at FVTOCI Measured at amortised cost (Note 1) Financial liabilities Measured at amortised cost (Note 2) Financial liabilities	September 30, 2021 $ 360,981 － 114,713 4,026,855 $ 4,502,549 $ 12,450 14,377,401 $ 14,389,851	December 31, 2020	September 30, 2020
		$ 456,402 － 98,273 4,445,752	$ 689,052 36 108,195 3,406,282
		$ 5,000,427	$ 4,203,565
		$ 10,200 12,346,301	$ － 11,865,902
		$ 12,356,501	$ 11,865,902

• 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

～45～

parities),bonds payable, long-term debts, guarantee deposit received and other financial liabilities measured at amortized cost.

• B. Fair value of financial instruments

• a. Measured without using fair value

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.

• b. 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:

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

• 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

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

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value:

Fair value on a recurring basis		September 30,2021
	Level 1 Level 2 Level 3 $ 7,342 $ －$ － － － 185,483 138,542 － － 176,887 29,614 － $ 145,884 $ 29,614 $ 185,483 $ －$ 12,450 $ － $ －$ －$ 114,713 December 31, 2020		Total
			$ 7,342 185,483 138,542 29,614
Financial assets at FVTPL 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
			$ 360,981
			$ 12,450
			$ 114,713
	Level 1 Level 2 Level 3 $ 7,672 $ －$ － － － 188,878 230,797 － － － 29,055 － $ 238,469 $ 29,055 $ 188,878 $ －$ 10,200 $ － $ －$ －$ 98,273		Total
			$ 7,672 188,878 230,797 29,055
Financial assets at FVTPL Listed stocks Unlisted stocks Beneficiary certificate Financial products FVTPL Financial Liabilities Call / Put option of convertible bond FVTOCI Financial assets Unlisted stocks
			$ 456,402
			$ 10,200
			$ 98,273

～46～

Fair value on a recurring basis		September 30, 2020	Total $ 97,355 213,345 161,547 215,210 1,595 $ 689,052 $ 108,195
	Level 1 Level 2 Level 3 $ 97,355 $ －$ － － － 213,345 161,547 － － － 215,210 － － 1,595 － $ 258,902 $ 216,805 $ 213,345 $ －$ －$ 108,195
Financial assets at FVTPL Listed stocks Unlisted stocks Beneficiary certificate Financial products 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 nine-month periods ended September 30, 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 and FVTOCI. Reconciliations for the nine-month periods ended September 30, 2021 and 2020 was 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 Balance at end of period	For the nine-month periods ended September 30, 2021 2020 $ 287,151 $ 282,366 4,301 161,116 ( 201 ) ( 3,224 ) ( 7,217 ) ( 65,745 ) 19,824 ( 48,113 ) ( 3,662) ( 4,860 ) $ 300,196 $ 321,540
	2021 $ 287,151 4,301 ( 201 ) ( 7,217 ) 19,824 ( 3,662) $ 300,196

• c. 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.

• C. 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 programmed focuses on the

～47～

unpredictability of financial markets and seeks to minimise 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

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:

were as follows:
(foreign currencies : function currency) Financial assets Monetary items USD:NTD RMB:NTD USD:RMB JPY:NTD Non-monetary items USD:NTD Financial liabilities Monetary items USD:NTD RMB:NTD USD:RMB JPY:NTD Euro:NTD	September30,2021 Foreign Currency (In Thousands) Exchange Rate 11,436.07 27.85 25,717.54 4.3094 5,582.08 6.4626 456,892.19 0.2490 868.39 32.32 87,065.14 27.85 1,003.28 27.85 37.04 4.3094 1,304.28 6.4626 168,519.01 0.2490 75.65 32.32	December31,2020 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 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	September30,2020
	Foreign Currency (In Thousands) 11,436.07 25,717.54 5,582.08 456,892.19 868.39 87,065.14 1,003.28 37.04 1,304.28 168,519.01 75.65	Foreign Currency (In Thousands) 8,432.90 15,509.19 4,755.78 477,118.21 1,814.29 80,403.98 1,784.45 108.70 1,307.76 56,692.32 95.11	Foreign Currency (In Thousands) 5,452.71 17,636.92 6,044.28 348,247.57 803.20 79,758.57 950.87 3.28 1,404.24 81,420.18 74.45	Exchange Rate
				29.10 4.2728 6.8106 0.2756 34.15 29.10 29.10 4.2728 6.8106 0.2756 34.15

When new Taiwan dollars are upvaluation with foreign currency about 1%, the incomes are decreased $6,178 thousands and $3,702 thousands, respectively for the nine-month periods ended September 30, 2021 and 2020. When Taiwan dollars down-valuate 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 dat ~~e a~~ nd all other variables were held constant. When the interest ratios are increase 1 yard, the incomes are decreased $12,215 thousands and $7,865 thousands, respectively for the nine-month periods ended September 30, 2021 and 2020.

～48～

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 either as available for sale or 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 values of equity instruments are increase 5%, the incomes are increased $7,276 thousands and $15,978, respectively for the nine-month periods ended September 30, 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.

As of September 30, 2021, December 31, 2020 and September 30, 2020, the accounts receivables of customers that are more than 10% of consolidated operating revenues are base on consolidated accounts receivables are 55%, 14% and 43%, 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.

Less Than 1 Year Non derivatives financial liabilities : Short-term debts $ 1,141,033 Short-term notes and bills payable 20,988 Accounts and notes payable (including related parties) 2,060,003 Other accounts payable (including related parties) 845,360 Lease liabilities 1,001,121		September30,2021	September30,2021	September30,2021
		Between 2 Year and 3 Years $ － － － － 970,144	Between 4 Years and 5 Years $ － － － － 214,827	Over 5 Years $ － － － － 373,049	Total
					$ 1,141,033 20,988 2,060,003 845,360 2,559,141

～49～

Current portion of long-term liabilities Bonds payable Long-term debts		September30,2021	September30,2021	September30,2021
	Less Than 1 Year 748,356 － － $ 5,816,861	Between 2 Year and 3 Years － － 1,345,529 $ 2,315,673	Between 4 Years and 5 Years － 3,430,281 386,844 $ 4,031,952	Over 5 Years － － 4,374,956 $ 4,748,005	Total 748,356 3,430,281 6,107,329
					$ 16,912,491

Less Than 1 Year Non derivatives financial liabilities : Short-term debts $ 926,830 Short-term notes and bills payable 76,425 Accounts and notes payable (including related parties) 3,087,499 Other accounts payable (including related parties) 890,036 Lease liabilities 933,589 Current portion of long-term liabilities 999,200 Bonds payable － Long-term debts － $ 6,913,579 Less Than 1 Year Non derivatives financial liabilities : Short-term debts $ 2,327,276 Short-term notes and bills payable 346,656 Accounts and notes payable (including related parties) 2,069,383 Other accounts payable (including related parties) 789,731 Lease liabilities 851,144 Current portion of long-term liabilities 2,000,000 Bonds payable － Long-term debts － $ 8,384,190		December31,2020	December31,2020	December31,2020
		Between 2 Year and 3 Years Between 4 Years and 5 Years Over 5 Years $ － $ － $ － － － － － － － － － － 973,367 291,134 395,287 － － － － 1,422,555 － 4,912,967 － － $ 5,886,334 $ 1,713,689 $ 395,287 September30,2020			Total
					$ 926,830 76,425 3,087,499 890,036 2,593,377 999,200 1,422,555 4,912,967
					$ 14,908,889
		Between 2 Year and 3 Years － － － － 804,824 － － 3,876,857 4,681,681	Between 4 Years and 5 Years $ － － － － 255,261 － 432,175 － $ 687,436	Over 5 Years － － － － 23,105 － － － 23,105	Total
					$ 2,327,276 346,656 2,069,383 789,731 1,934,334 2,000,000 432,175 3,876,857
					$ 13,776,412

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 $100 million or 20% of the paid-in capital: None.

～50～

• (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’s the reportable segment as follows.

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

• 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.

～51～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Financing provided details For the nine-month period ended September 30, 2021 Express in Thousands of New Taiwan Dollars

Attac	hed table1
No	Financing company’s name	Counter party	Financial statement account	Relate d 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	Col	lateral	Financing limit for each borrowing company	Financing company’s financing amount limit
													Item	Value
0	Chung-Hsin Electric and Machinery Manufacturing Corp	CHEM ENERGY SA PROPRIETARY LIMITED	Other Receivable	Yes	51,128	51,128	49,171	－	1	51,128	Business Dealings	－	－	－	(13) 51,128	(13) 2,177,119
		EGME ENERGY ECOSYSTEMS (INDIA)PRIVATE LIMITED	Other Receivable	Yes	6,068	5,921	5,921	－	1	5,921	Business Dealings	－	－	－	(13) 5,921	(13) 2,177,119
		CHEM FUEL CELL (M) SDN. BHD	Other Receivable	Yes	2,082	2,031	2,031	－	1	2,031	Business Dealings	－	－	－	(13) 2,031	(13) 2,177,119
		San-feng construction Co., Ltd.	Other Receivable	Yes	100,000	－	－	1.10%	2	－	Operation needed	－	－	－	(11) 2,000,000	(4) 4,354,238
		Tian Chong Energy Co., Ltd.	Other Receivable	Yes	1,100,000	1,100,000	－	1.10%-3.00%	2	－	Operation needed	－	－	－	(11) 2,000,000	(4) 4,354,238
		Tian Peng Energy Co., Ltd.	Other Receivable	Yes	1,000,000	1,000,000	－	1.10%-3.00%	2	－	Operation needed	－	－	－	(11) 2,000,000	(4) 4,354,238
		Tian Cin Energy Co., Ltd.	Other Receivable	Yes	200,000	200,000	－	1.10%-3.00%	2	－	Operation needed	－	－	－	(11) 2,000,000	(4) 4,354,238
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	7,500	1.80%	2	－	Operation needed	－	Check	7,500	(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	45,000	1.00%~1.20%	2	－	Operation needed	－	Note	45,000	(8) 100,000	(4) 250,359
		Shengyi electric and machinery Co.	Other Receivable	No	10,000	10,000	10,000	1.60%	2	－	Operation needed	－	Note	10,000	(8) 100,000	(4) 250,359
		Etrovision technology Co., Ltd.	Other Receivable	Yes	45,000	30,000	－	1.00%~1.20%	2	－	Operation needed	－	Note	30,000	(8) 100,000	(4) 250,359
		Nomura Chung-Hsin machinery Corporation	Other Receivable	Yes	39,000	29,000	15,337	1.00%~1.20%	2	－	Operation needed	－	Note	29,000	(8) 100,000	(4) 250,359
		San-feng construction Co., Ltd.	Other Receivable	Yes	45,000	45,000	－	1.00%	2	－	Operation needed	－	Note	45,000	(8) 100,000	(4) 250,359
		Sheng Yuan investment Corp.	Other Receivable	Yes	30,000	－	－	1.20%	2	－	Operation needed	－	－	－	(8) 100,000	(4) 250,359
		FinData Technology Corp.	Other Receivable	Yes	55,000	55,000	55,000	1.00%	2	－	Operation needed	－	Note	55,000	(8) 100,000	(4) 250,359
3	San-feng construction Co., Ltd.	FinData Technology Corp.	Other Receivable	Yes	55,000	35,000	－	1.55%	2	－	Operation needed	－	－	－	(8) 100,000	(5) 276,842
4	Bao-Sheng Global Co.,Ltd.	FinData Technology Corp.	Other Receivable	Yes	5,000	5,000	5,000	1.20%	2	－	Operation needed	－	Note	5,000	(7) 45,000	(4) 63,700
5	CHEM Corp.	Chemly power equipment Corp.	Other Receivable	Yes	14,270	13,925	13,925	0.50%	2	－	Operation needed	－	－	－	(6) 208,002	(4) 832,009
		Archers Systems Co., Ltd.	Other Receivable	No	2,255	2,200	2,200	5.00%	2	－	Operation needed	2,200	Note	2,460	(6) 208,002	(4) 832,009
6	Chemly power equipment Corp.	Chem-tech (Shang-hai) Corp.	Other Receivable	Yes	4,394	4,309	4,309	1.50%	2	－	Operation needed	－	－	－	(9) 31,658	(4) 42,211
		Chung-Hsin Power Systems (Shenyang) Inc.	Other Receivable	Yes	13,182	12,928	12,928	1.50%~1.60%	2	－	Operation needed	－	－	－	(9) 31,658	(4) 42,211
		Jiangsu Fumei Landscape & Real Esta Development Co.,Ltd.	Other Receivable	Yes	8,788	8,619	8,619	1.50%	2	－	Operation needed	－	－	－	(9) 31,658	(4) 42,211

～52～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Attac	hed table1				Financing provided details For the nine-month period ended September 30, 20 Express in Thousands of New Taiwan Dollars	Financing provided details For the nine-month period ended September 30, 20 Express in Thousands of New Taiwan Dollars	Financing provided details For the nine-month period ended September 30, 20 Express in Thousands of New Taiwan Dollars	Financing provided details For the nine-month period ended September 30, 20 Express in Thousands of New Taiwan Dollars	21	21
No	Financing company’s name	Counter party	Financial statement account	Relate d 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	Col	lateral	Financing limit for each borrowing company	Financing company’s financing amount limit
													Item	Value
7	CHEM J-V Limited	Chung-Hsin Power Systems Corp.	Other Receivable	Yes	13,182	12,928	12,928	1.50%	2	－	Operation needed	－	－	－	(10) 47,526	(4) 126,735
8	CHEM Power Limited	Chung-Hsin Power Systems (Shenyang) Inc.	Other Receivable	Yes	85,620	83,550	70,739	0.50%	2	－	Operation needed	－	－	－	(6) 164,237	(4) 656,947
		Jiangsu Fumei Landscape & Real Esta Development Co.,Ltd.	Other Receivable	Yes	13,182	12,928	12,928	1.50%	2	－	Operation needed	－	－	－	(6) 164,237	(4) 656,947
9	Jiangsu Chung-Hsin Precision MachineryCo.,Ltd	Jiangsu Fumei Landscape & Real Esta Development Co.,Ltd.	Other Receivable	Yes	21,547	21,547	8,619	1.00%	2	－	Operation needed	－	－	－	(12) 228,970	(4) 366,352

(1)Type of financing: 1 business purpose 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)Not exceeding 10% of the net equity current period.

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

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

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

(10)Not exceeding 15% of the net equity current period.

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

(12)Not exceeding 25% of the net equity current period.

(13)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.

～53～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Endorsement / Guarantee provide For the nine-month period ended September 30, 2021 Express in Thousands of New Taiwan Dollars, except as otherwise indicated

Att	ached 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	16,328,393 16,328,393 16,328,393 16,328,393 16,328,393 16,328,393 16,328,393 16,328,393 16,328,393 16,328,393 16,328,393	US 39,325 (1,300thousand) 30,000 1,100,000 360,000 10,000 460,000 5,597,587 4,223,898 214,000 95,180 95,354	US 36,205 (1,300thousand) 10,000 1,100,000 360,000 10,000 460,000 2,050,000 1,238,000 214,000 95,180 95,354	US 36,205 (1,300thousand) － 166,422 284,179 1,752 167,037 1,028,860 751,943 － 95,180 95,354	36,205 10,000 1,100,000 360,000 10,000 460,000 2,030,288 774,245 － － －	0.33% 0.09% 10.11% 3.31% 0.09% 4.23% 18.83% 11.37% 1.97% 0.87% 0.88%	21,771,191 21,771,191 21,771,191 21,771,191 21,771,191 21,771,191 21,771,191 21,771,191 21,771,191 21,771,191 21,771,191	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 12,225,344	Total 5,668,739	Total 2,626,932		52.08%
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) 2,177,119 (3) 2,177,119	108,000 13,659	108,000 13,659	47,073 13,659	－ －	(5) 0.99% (5) 0.13%	(4) 5,442,798 (4) 5,442,798	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.

～54～

• (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.

～55～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Marketable securities held (excluding subsidiaries and associates) September 30, 2021

Express in Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 3-1

Attached table 3-1
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	7,339 3 4,519	0.20% －	7,339 3 4,519
					11,861		11,861
	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 1,344,048 1,200,000 8,373,688 2,093,191	－ 35,510 － 34,509 －	0.05% 0.04% － 19.94% 2.62%	－ 35,510 － 34,509 －	Preferred stock
					70,019		70,019
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	135,143 －	0.58% 4.91%	135,143 －	2,712,500 shares as collateral
					135,143		135,143
Wha Dun Building Management Service Co., Ltd.	Beneficiary Certificate FuHuaYouliCurrencyFund	－	Currentfinancialassets atFVTPL	496,397.90	6,747	－	6,747
Global-Entech Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	996,715.40	13,548	－	13,548
Chung- Hsin Energy Tech. Inc.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	335,930.40	4,566	－	4,566
Tian Chong Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	462,456.90	6,286	－	6,286
Tian Peng Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	1,481,240.50	20,134	－	20,134
Tian Cin Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	650,970.40	8,848	－	8,848
Tian Fu Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Current financial assets at FVTPL	269,255.90	3,660	－	3,660
CHEM J-V Limited	Equity Toko electric(Suzhou)Co.,Ltd.	－	Non-current financial assets at FVTPL	US1,048,000	22,551	18.99%	22,551

～56～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Marketable securities held (excluding subsidiaries and associates) September 30, 2021

Express 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	－ 114,713	19.65% 6.62%	－ 114,713
Sunrise Tech. Co. Ltd (Sunrise investment Corp. change its name)	Beneficiary Certificate Fu Hua Youli Currency Fund Hua Nan Phoenix Money Market Fund Subtotal	－ －	Current financial assets at FVTPL Current financial assets at FVTPL	4,430,756.70 609,878.90	60,225 10,009	－ －	60,225 10,009
					70,234		70,234
	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 － － － － －	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	6,266,514 3,256,550 6,579 2,572,127 6,522,129 1,557,000	305,493 52,326 656 18,268 9,563 12,100	1.32% 13.28% 4.17% 0.92% 9.03% 3.37%	305,493 52,326 656 18,268 9,563 12,100	3,000,000 shares as collateral
					398,406		398,406
Nantong Shengyi precision machineryCo.	Financial products such as fixed profits of RMB,etc	－	Non-current financial assets at FVTPL	－	29,614	－	29,614

～57～

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 nine-month period ended September 30, 2021 Express 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	1,977,747	14.53%	－	－	－	Accounts receivable 1,376,506	40.03%
The Corporation	Tian Peng Energy Co., Ltd.	Investment using equity method	Sales	928,392	6.82%	－	－	－	Accounts receivable 147,095	4.28%
The Corporation	Tian Cin Energy Co., Ltd.	Investment using equity method	Sales	294,041	2.16%	－	－	－	Accounts receivable 164,558	4.79%
The Corporation	Jiangsu Chung-Hsin Precision MachineryCo.,Ltd.	Investment using equity method	Purchases	189,030	2.36%	－	－	－	Accounts Payable 29,252	1.64%
The Corporation	San-Feng construction Co., Ltd.	Investment using equity method	Purchases	106,717	1.33%	－	－	－	－	－

～58～

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 September 30, 2021

Express 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 Chong Energy Co., Ltd.	Investment using equity method	Accounts receivable 1,376,506	1.97	－	－	1,376,506	－
The Corporation	Tian Peng Energy Co., Ltd.	Investment using equity method	Accounts receivable 147,095	1.76	－	－	－	－
The Corporation	Tian Cin Energy Co., Ltd.	Investment using equity method	Accounts receivable 164,558	2.23	－	－	－	－

～59～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Intercompany relationships and significant transactions For the nine-month period ended September 30, 2021 Express in Thousands of New Taiwan Dollars

Attached table 6-1	Attached table 6-1	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 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 The Corporation	Chem Energy SA (Pty) Ltd. H2 PowerTech, LLC. 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 Peng Energy Co., Ltd. Tian Peng Energy Co., Ltd. Tian Peng Energy Co., Ltd. Tian Peng Energy Co., Ltd. Sunrise Tech. Co. Ltd. Tone-zoom industry Co., Ltd. Chung-Hsin Power Systems (Shenyang) Inc. Chung-Hsin Power Systems Corp. 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. Chem-tech (Shang-hai) Corp. Chem-tech (Shang-hai) Corp. Bao-Sheng Global Co., Ltd. Bao-Sheng Global 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 1	Other Receivables Cost and Expense Accounts Receivable Sales Engineering revenue Accounts Receivable Sales Engineering revenue Professional revenue Accounts Receivable Sales Engineering revenue Professional revenue Notes payable Other Receivables Purchases Sales Purchases Purchases Contract liabilities Accounts Payable Sales Contract liabilities Cost and Expense Accounts Payable Engineering Cost	49,171 98,855 164,558 111,559 178,473 1,376,506 944,903 1,012,835 20,000 147,095 215,225 697,158 16,000 11,959 11,760 13,162 24,545 50,857 189,030 14,213 29,252 25,408 18,403 92,793 20,148 106,717	5 4 4 4 4 4 4 4 4 4 4 4 4 7 8 4 4 4 4 4 4 4 4 4 4 4	0.15% 0.77% 0.51% 0.87% 1.39% 4.26% 7.35% 7.87% 0.16% 0.46% 1.67% 5.42% 0.12% 0.04% 0.04% 0.10% 0.19% 0.40% 1.47% 0.04% 0.09% 0.20% 0.06% 0.72% 0.06% 0.83%
1 1	CHENG-HSIN Engineering & Services CO.,LTD CHENG-HSINEngineering & Services CO.,LTD	Wha Dun Building Management Service Co., Ltd. WhaDun BuildingManagement Service Co.,Ltd.	3 3	Accounts Payable	18,650	6	0.06%
				Maintenance Cost	18,012	6	0.14%
2	Sunrise Tech. Co. Ltd(Sunrise investment Corp. change its name)	FinData TechnologyCorp.	3	Other Receivables	55,128	5	0.17%
3	ChemCorp.	Chemly powerequipment Corp.	3	Other Receivables	14,312	5	0.04%

～60～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Intercompany relationships and significant transactions For the nine-month period ended September 30, 2021 Express in Thousands of New Taiwan Dollars

Attached table 6-2	Attached table 6-2	Attached table 6-2	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)
4 4	CHEM J-V Limited CHEM J-V Limited	Chung-Hsin Power Systems Corp. Nantong Shengyi precision machinery Co.	3 3	Other Receivables Accounts Receivable	13,070 44,320	5 6	0.04% 0.14%
5	Chemly power equipment Corp.	Chung-Hsin Power Systems(Shenyang)Inc.	3	Other Receivables	13,030	5	0.04%
6 6	Jiangsu Chung-Hsin Precision Machinery Co., Ltd. Jiangsu Chung-Hsin Precision Machinery Co.,Ltd.	Chung-Hsin Power Systems Corp. Nantong Shengyiprecision machinery Co.	3 3	Sales Purchases	12,505 12,617	6 6	0.10% 0.10%
7 7	CHEM Power Limited CHEM Power Limited	Chung-Hsin Power Systems (Shenyang) Inc JiangsuFumei Landscape &Real EstaDevelopment Co.,Ltd.	3 3	Other Receivables Other Receivables	70,882 13,068	5 5	0.22% 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.

(7)Remuneration payable to directors

(8)Dividend receivables

～61～

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 nine-month period ended September 30, 2021

Express in Thousands of New Taiwan Dollars, except as otherwise indicated

			, ,	For the nine-month period ended September 30, 2021 Express in Thousands of New Taiwan Dollars, except as otherwise	For the nine-month period ended September 30, 2021 Express in Thousands of New Taiwan Dollars, except as otherwise	For the nine-month period ended September 30, 2021 Express in Thousands of New Taiwan Dollars, except as otherwise	For the nine-month period ended September 30, 2021 Express in Thousands of New Taiwan Dollars, except as otherwise	indicated	indicated	indicated	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 this period	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%	64,351	9,811	9,811	Exchange differences on translating foreign operations $(1,316)	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%	572,214	69,733	16,938	Unrealized loss of financial assets $(46,701) Cash Dividend $(11,357)	－
	Sunrise Tech. Co. Ltd (Sunrise investment Corp. change its name)	Taiwan	General investment	262,000	262,000	33,955,200	100.00%	305,108	31,221	31,221	Treated as treasury stock $(305,489) Unrealized loss of financial assets $(30,392) Cash Dividend $(16,129)	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	52,897,749	100.00%	594,332	48,854	48,854	Treated as treasury stock $(135,143) Unrealized loss of financial assets $(13,445) Unrealized gains and losses of intercompany transactions $56,254 Recognize changes in subsidiary equity $174	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	15,893	15,869	1,699,823	99.99%	28,535	2,598	2,574	Invest for the period $24	Subsidiary
	Tone-zoom industry Co., Ltd.	Taiwan	1. Intensified fiber plastic material and product 2. Bathing equipment 3. Industrial plastic product	20,995	20,995	1,680,000	58.04%	33,463	(12,544)	(7,281)	Cash Dividend $(11,760)	Subsidiary
	Sheng-yuan investment Corp.	Taiwan	General investment	53,397	53,397	13,655,606	29.33%	591,112	82,495	24,199	Unrealized loss of financial assets $(49,839) Stock Dividend $47,011	－
	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%	36,677	16,618	16,616	－	Subsidiary
	Chem Corp. Samoa	Samoa	Holding company	2,976,037	2,976,037	90,856,648	100.00%	2,132,836	93,881	93,881	Exchange differences on translating foreign operations $(20,028) Unrealized gains and losses of intercompany transactions $(6,027)	Subsidiary
	Bao-Sheng Global Co.,Ltd.	Taiwan	Manufacture machinery equipment, lift installation, automation control equipment, traffic mark and parking management, etc.	93,000	93,000	14,860,000	100.00%	161,365	2,115	2.115	Stock Dividend $48,600	Subsidiary

～62～

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 nine-month period ended September 30, 2021

Express in Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table7-2
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
	Li-Xiang Technology Co., Ltd	Taiwan	Import and export trade about Rail industry, electronic control system, slope away from the coatingliquid	6,670	6,670	667,000	40.00%	－	251	101	Credit balance of Investment under equity method $3,460	－
	Nomura Chung-Hsin Machinery Corporation	Taiwan	Manufacture machinery, other equipment andinternationtrade	20,874	20,874	2,087,400	49.00%	－	(2,148)	(1,053)	Credit balance of Investment under equity method $13,488	－
	FinData Technology Corp.	Taiwan	Software Design Services, Data Processing Services, Digital Information SupplyServices	60,000	60,000	2,000,000	100.00%	－	(7,730)	(7,730)	Credit balance of Investment under equity method $60,179	Subsidiary
	ME ENERGY SYSTEMS LIMITED	Hong Kong	Power EQU, engineering & parking management services	321,940	243,613	10,673,455	100.00%	194,425	(36,969)	(36,969)	Cash capital increased $78,328 Exchange differences on translating foreign operations $(8,430) FVTOCI financial assets $19,824 Unrealized gains and losses of intercompany transactions$8,090	Subsidiary
	Chung- Hsin Energy Tech. Inc.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and fuel cells; energy technology services.	5,000	5,000	500,000	100.00%	4,673	(148)	(148)	－	Subsidiary
	Tian Cin Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energytechnologyservices.	209,467	209,467	20,946,720	86.46%	98,670	(13,393)	(11,580)	Unrealized gains and losses of intercompany transactions $(36,018)	Subsidiary
	Tian Peng Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energytechnologyservices.	674,245	674,245	67,424,520	85.32%	196,012	(36,404)	(31,060)	Unrealized gains and losses of intercompany transactions $(119,199)	Subsidiary
	Tian Chong Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	995,012	928,288	99,501,200	86.81%	342,600	(46,318)	(39,921)	Unrealized gains and losses of intercompany transactions $(216,850) Invest for the period $66,724 Did not participate in the cash increase based onthe shareholdingratio $(332)	Subsidiary
	Tian Fu Energy Co., Ltd. (Tian Fu)	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energytechnologyservices.	156,000	156,000	15,600,000	52.42%	148,097	(13,323)	(6,984)	Recognize changes in subsidiary equity $191	Subsidiary
CHENG-HSIN Engineering & Services CO.,LTD	San-feng construction Co., Ltd.	Taiwan	Civil engineering, construction, water conservancy, contract managementindustry	411,939	411,939	53,200,000	100.00%	561,912	3,361	Note	－	Subsidiary
	Wha Dun Building Management Service Co.,Ltd.	Taiwan	Apartment managing services and consulting, etc.	10,000	10,000	2,361,611	100.00%	27,390	2,258	Note	Stock Dividend $7,090	Subsidiary

～63～

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 nine-month period ended September 30, 2021 Express 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 this period	Remark
				Ending balance	Beginning balance	Share	%	Book value
San-feng construction Co., Ltd.	Tian Fu Energy Co., Ltd. (Tian Fu)	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	490,000	490,000	14,160,000	47.58%	484,223	(13,323)	Note	－	－
Tian Fu Energy Co., Ltd. (Tian Fu)	Tian Cin Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	32,134	32,134	3,213,420	13.26%	29,809	(13,393)	Note	－	－
	Tian Peng Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	113,690	113,690	11,368,980	14.39%	107,674	(36,404)	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	12.93%	140,709	(46,318)	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%	－	14,927	－	Accumulated Impairment loss $(22)	－
CHEM Corp.	CHEM Power Corp.	Samoa	Holding company	349,434	349,434	US10,742,824.04	100.00%	105,248	829	Note	－	Subsidiary
	CHEM J-V Limited	HongKong	Holdingcompany	382,936	382,936	US12,644,500.00	100.00%	275,042	(39,767)	Note	－	Subsidiary
	CHEM Power Limited	Hong Kong	Holding company	2,570,519	2,570,519	US78,224,615.70	100.00%	1,758,789	133,314	Note	－	Subsidiary
H2 Power Tech, Inc.	H2 Power Tech, LLC.	USA	Technical services, licensing and equipment sales	15,100	15,100	US500,000.00	100.00%	10,741	(7,487)	Note	－	Subsidiary
CHEM J-V Limited	MICT international Ltd.	Hong Kong	Holding company	48,308	48,308	3,600,000	40.00%	23,063	(10,523)	Note	－	－
ME ENERGY ~~S~~YSTEMS LIMITED	H2 Power Tech, INC.	USA	Holding company	3,564	3,564	50	100.00%	10,741	(7,487)	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	US205,527.15	99.99%	－	(1,621)	Note	Credit balance of Investment under equity method $935	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%	2,221	(1,120)	Note	－	Subsidiary
	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.	102,635	45,815	US3,500,000	100.00%	54,150	(26,783)	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.	102,374	45,815	US3,490,838.62	100.00%	53,833	(26,845)	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.

～64～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries Information of investment in mainland China For the nine-month period ended September 30, 2021 Express in Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 8
Investee	Main businesses	Total paid-in capital	Method of investment (1)	Accumulated outflow of investment from Taiwan as of beginning balance	Investment flows		Accumulated outflow of investment from Taiwan as of ending balance	Net Income (Losses) of the Investee Company	Percentag e of ownership	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 (US5,400,000)	(b)	130,662 (US4,125,220.53)	－	－	130,662	(1,115)	100.00%	(1,115)	11,404	－
Chemly Power equipment Corp.	Manufacturing machinery for generating, Transmitting and distributing electric power	318,310 (US9,800,000)	(b)	318,310 (US9,799,284.34)	－	－	318,310 (US9,799,284.34)	829	100.00%	829	105,248	－
Wuxi Hengchi Chem Switchgear Co., Ltd.	GIS assembly and manufacturing	185,963 (US5,575,982.58)	(b)	81,329 (US2,403,148.34)	－	－	81,329 (US2,403,148.34)	10,008	45.00%	4,504	42,169	－
Jiangsu Chung-Hsin Precision Machinery Co., Ltd.	Aluminum alloy tank, tube and accessories manufacturing and casting	950,804 (US29,268,000)	(b)	966,640 (US29,750,000)	－	－	966,640 (US29,750,000)	124,834	99.17%	123,794	1,021,663	－
Shannxi baoji Yong-shin Ltd.	Aluminum alloy tank, tube and accessories manufacturing and casting	10,694 (US326,130.09)	(b)	6,979 (US213,000)	－	－	6,979 (US213,000)	(199)	69.12%	(138)	16,378	－
Nantong L-S metal forming Co., Ltd.	Aluminum Alloy tank, tube and accessories manufacturing and casting	113,889 (US3,630,200)	(b)	14,982 (US 453,800)	－	－	14,982 (US 453,800)	65,286	25.00%	16,322	133,385	－
Toko electric (Suzhou) Co., Ltd.	Manufacturing and selling potential transformer	183,154 (US5,520,000)	(b)	33,523 (US1,048,000)	－	－	33,523 (US1,048,000)	－	18.99%	－	22,551	Evaluated by FVTPL - non current
Chung-Hsin Power Systems Corp.	220kv~550kv high voltage GIS/GCB assembly and manufacturing	598,772 (US18,000,000)	(b)	598,772 (US18,000,000)	－	－	598,772 (US18,000,000)	10,537	100.00%	10,537	272,049	－
Chung-Hsin Power Systems (Shenyang) Inc.	Manufacturing and selling high voltage GIS/GCB, aluminum casting and related equipments.	596,455 (US18,000,000)	(b)	487,636 (US14,679,315.53) (4)	－	－	487,636 (US14,679,315.53) (4)	(13,231)	100.00%	(13,231)	40,763	－
Nantong Shengyi precision machinery Co.	Processing tank, conductors and various machinery parts	331,907 (US10,000,000)	(b)	165,755 (US5,000,000)	－	－	165,755 (US5,000,000)	25,157	50.00%	12,579	207,279	－
Hitachi (Suzhou) EHV Switchgear Corp	69KV-1100KV kv high voltage switch board, assembly and manufacturing	633,000 (US20,000,000)	(b)	16,455 (US500,000)	－	－	16,455 (US500,000)	－	－	－	－	Disposal for the period
San-he Kwok Shui Electric Co.	Manufacturing machinery for generating, Transmitting and distributing electric power	92,695 (US2,950,485.95)	(b)	45,221 (US1,435,539.87)	－	－	45,221 (US1,435,539.87)	(5,685)	49.00%	(2,786)	30,284	－
Jiangsu Fumei Landscape & Real Estate Development Co., Ltd.	Resort development and management	296,700 (US10,000,000)	(b)	296,700 (US10,000,000)	－	－	296,700 (US10,000,000)	(47,750)	100.00%	(47,750)	－	Credit balance of Investment under equity method $3,080
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 (US7,000,000)	(c)	－	－	－	－	(10,523)	40.00%	(4,209)	20,190	－
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.	271,209 (US9,738,230.74) (5)	(b)	161,116 (US5,371,416)	－	－	161,116 (US5,371,416)	－	6.62%	－	114,713	Evaluated by FVTOCI – non-current
Qingdao SunHydro Technology Group Co., Ltd.	Emerging energy technology research and development, service, development, liquid separation and purification equipment sales, station hydrogenation and hydrogen removal equipment sales	129,282 (US4,642,094.51) (5)	(b)	－	21,508 (US 773,455.02 )	－	21,508 (US773,455.02)	－	49.00%	－	21,547	－

～65～

Accumulated investment in China as of September 30,2021	Investment amounts authorized by investment commission,MOEA	Upper limit on investment authorized by investment commission,MOEA(3)
3,362,771(US104,065,245.84)	3,645,718(US 112,882,089.58)	6,531,357

• (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 September 30, 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 September 30, 2021.

～66～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries

Operating Segment Information

For the nine-month period ended September 30, 2021 and 2020

Attached table 9-1 For the nine-month period ended September 30, 2021 Electricity Power Service Engineering and Other Revenue External customer $ 8,205,806 $ 2,167,846 $ 2,489,911 Inter-segment 3,620,573 141,704 153,926 Total revenue $11,826,379 $2,309,550 $2,643,837 Segment profit $ 1,597,911 $( 36,328 ) $ 265,157 Interest revenue Interest expense Investment profit and loss Non-operating profit and loss Impairment Profit before income tax Depreciation and amortization $ 271,154 $ 1,011,553 $ 31,354 Assets Segment assets $ 18,944,878 $ 2,805,600 $ 4,467,957 Investment under equity method Deferred income tax Others Total assets Capital expenditure $3,034,964 $29,033 $ 61,116

Express in thousands of New Taiwan dollars Adjustment and elimination Total $ — $ 12,863,563 (3,916,203 ) — $(3,916,203 ) $12,863,563 $ 24,410 $ 1,851,150 5,850 ( 64,590 ) 69,281 ( 94,667 ) (28,997 ) $1,738,027 $ — $ 1,314,061 $ — $ 26,218,435 1,412,774 368,462 4,279,033 $32,278,704 $— $3,125,113

Attached table 9-1 For the nine-month period ended September 30, 2020 Electricity Power Engineering Revenue External customer $ 6,224,707 $ 1,644,782 Inter-segment 1,928,674 33,245 Total revenue $8,153,381 $1,678,027 Segment profit $ 786,077 $ 105,924 Interest revenue Interest expense Investment profit and loss Non-operating profit and loss Impairment Loss Profit before income tax Depreciation and amortization $ 219,622 $ 9,132 Assets Segment assets $ 14,315,622 $ 1,084,063 Investment under equity method Deferred income tax Others Total assets Capital expenditure $1,633,925 $731 Note	Service $ 1,436,246 127,722 $1,563,968 $ 9,894 $ 1,036,344 $ 2,366,122 $20,995	Express in thousands of New Taiwan dollars Other Adjustment and elimination Total $ 621,296 $ — $ 9,927,031 76,287 (2,165,928 ) — $697,583 $(2,165,928 ) $9,927,031 $( 121,294 ) $ 22,142 $ 802,743 10,778 ( 51,392 ) 97,703 6,003 (22,031 ) $843,804 $ 42,864 $ — $ 1,307,962 $ 4,623,024 $ — $ 22,388,831 1,169,819 114,970 3,590,113 $27,263,733 $24,730 $— $1,680,381

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.

～67～

Chung-Hsin Electric and Machinery Manufacturing Corp. and Subsidiaries INFORMATION ON MAJOR SHAREHOLDERS September 30, 2021

Attached table 10

Attached table 10
Shareholders	Shares
	Total Shares Owned (In Thousands)	Ownership Percentage (%)
Sheng Yuan investment Corp.	38,923	8.17
Guang-Hsinengineering & services Co.,Ltd.	26,290	5.52

• 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 non-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 non-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.

～68～