CHICONY — Audit Report / Information 2021

Nov 15, 2021

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT ACCOUNTANTS DECEMBER 31, 2021 AND 2020

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of CHICONY ELECTRONICS CO., LTD.

Opinion

We have audited the accompanying consolidated balance sheets of Chicony Electronics Co., Ltd. and its subsidiaries (the “Group”) as at December 31, 2021 and 2020, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Group’s 2021 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Group’s 2021 consolidated financial statements are stated as follows:

Appropriateness of warehouse operating revenue cut-off

Description

Refer to Notes 4(32) and 6(23) for policies on revenue recognition and details of revenue.

The Group’s revenue arises from sales of goods, consisting mainly of factory direct shipment and warehouse sales revenue. Warehouse sales revenue is recognised when the goods are dispatched from the warehouses (transfer of control of products) and it is based on the reports and other relevant information provided by the warehouse custodians. The Group’s warehouses are located in multiple countries, and the revenue recognition process involves several manual operations. Thus, we considered the warehouse sales revenue cut off as one of the key areas of focus for this fiscal year’s audit.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Evaluated the interna l controls for regular reconciliation between the Group and its warehouse custodians.

2. Performed the revenue recognition cut-off tests, including obtaining sufficient appropriate audit evidences from the warehouse custodians and reviewing the reconciliations of the Group’s accounting records.

3. Conducted warehouse inventory audit by using confirmation letters to validate inventory balances with the warehouse custodians.

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Valuation of inventory

Description

Refer to Notes 4(12), 5(2) and 6(6) for the description of accounting policy, critical accounting estimates, uncertainty of assumptions and details of accounts.

The Group’s main inventories are keyboard, power supplies, camera modules and other electronic products. The prices of such inventories are affected by market demand and the rapid technological changes. Therefore, there is higher risk of market decline. As the assessment of net realisable value of inventories is subject to management judgement, we considered the valuation of inventory as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Assessed whether the Group’s accounting policies comply with the relevant standards and the reasonableness of management’s evaluation process, including the determination of net realisable value of inventories, the sales expenses and the judgement of obsolete inventories. Checked whether the provision policies were consistently adopted in the reporting periods.

2. Obtained net realisable value statement of inventories to confirm whether the calculation logic was adopted consistently, and tested the data sources of selected samples which includes inventory price or purchase price to verify whether the net realisable value used by the management was in compliance with its policies, and recalculated the accuracy of allowance for inventory valuation losses.

Other matter – Reference to the audits of other auditors

We did not audit the financial statements of certain subsidiaries and investments accounted for using equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these subsidiaries and associates, is based solely on the reports of the other auditors. Total assets of these subsidiaries and the balances of these investments accounted for using equity method amounted to NT$6,585,368 thousand and NT$4,731,772

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thousand, constituting 7.86% and 6.27% of the consolidated total assets as at December 31, 2021 and 2020, respectively, and the net operating revenue amounted to NT$884,748 thousand and NT$2,149,318 thousand, constituting 0.82% and 2.26% of the consolidated total operating revenue for the years then ended, respectively.

Other matter - Parent company only financial reports

We have audited and expressed an unqualified opinion with an Other matter section on the parent company only financial statements of Chicony Electronics Co., Ltd. as at and for the years ended December 31, 2021 and 2020.

Responsibilities of management and those charged with governance for the consolidated financial statements

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 the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the generally accepted auditing standards in the

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Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our auditors’ report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Chen, Chin-Chang Weng, Shih-Jung For and on behalf of PricewaterhouseCoopers, Taiwan March 9, 2022

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The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(3) 6(5) and 8 6(5) 7 6(6) 6(2) 6(3) 6(4) 6(7) 6(8) and 8 6(9) 6(10) and 8 6(11) 6(30) 6(13) and 8	December 31, 2021 $ 1,725,636 2,155,172 2,881,458 163,196 28,514,140 352,102 241,537 21,796,221 1,886,040 15,244 59,730,746 1,999,300 381,581 445,025 218,383 14,961,727 782,664 3,771,591 116,017 223,929 1,095,424 23,995,641 $ 83,726,387	December 31, 2020
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1120 Financial assets at fair value through other comprehensive income - current 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 130X Inventories, net 1410 Prepayments 1470 Other current assets 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1517 Financial assets at fair value through other comprehensive income - non- current 1535 Financial assets at amortised cost - non-current 1550 Investments accounted for using equity method 1600 Property, plant and equipment, net 1755 Right-of-use assets 1760 Investment property - net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets			$ 3,751,351 3,415,825 2,612,532 155,605 23,304,935 253,227 283,945 15,691,852 1,908,985 1,739
			51,379,996
			1,712,704 425,161 454,030 192,368 14,281,482 855,634 3,972,974 101,094 232,271 1,834,282
			24,062,000
			$ 75,441,996

(Continued)

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CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

Notes December 31, 2021 December 31, 2020 6(14) and 8 $ 1,624,355 $ 88,168 6(2) 59,354 390,711 6(23) 271,893 185,731 22,686 21,392 27,078,593 25,139,279 7 475,434 485,964 6(15) 14,106,451 12,817,050 2,884,344 2,060,162 138,721 136,230 6(16) 93,263 300,863 46,755,094 41,625,550 6(30) 397,258 512,215 273,312 339,007 6(17) 266,927 293,542 937,497 1,144,764 47,692,591 42,770,314 6(19) 7,452,927 7,394,603 6(20) 7,182,465 6,412,535 6(21) 6,102,860 5,560,152 4,252,574 3,290,829 9,974,608 9,665,615 6(22) ( 4,200,468) ( 4,241,214 ) 6(19) and 8 ( 311,277) ( 311,277 ) 30,453,689 27,771,243 4(3) 5,580,107 4,900,439 36,033,796 32,671,682 9 11 $ 83,726,387 $ 75,441,996

Current liabilities 2100 Short-term borrowings 2120 Financial liabilities at fair value through profit or loss - current 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2230 Income tax liabilities 2280 Lease liabilities - current 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of parent Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury stocks 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity

The accompanying notes are an integral part of these consolidated financial statements.

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CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items

Years ended December 31 Notes 2021 2020 6(23) and 7 $ 107,474,079 $ 95,082,227 6(6)(28)(29) and 7 ( 88,571,844) ( 77,306,598) 18,902,235 17,775,629 6(28)(29) ( 3,731,723) ( 3,862,736) ( 3,034,579) ( 2,729,786) ( 3,481,205) ( 3,515,726) 12(2) ( 41,710) ( 4,681) ( 10,289,217) ( 10,112,929) 8,613,018 7,662,700 6(24) 97,647 142,360 6(25) 877,662 748,728 6(26) ( 103,181) ( 256,878) 6(27) ( 59,671) ( 67,643) 6(7) 26,146 ( 11,077) 838,603 555,490 9,451,621 8,218,190 6(30) ( 1,879,325) ( 1,650,419) $ 7,572,296 $ 6,567,771

4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Impairment loss determined in accordance with IFRS 9 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit or loss of associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year

(Continued)

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CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items

Years ended December 31 Notes 2021 2020 6(17) $ 9,418 ( $ 635) 6(3) 402,372 ( 266,733) 411,790 ( 267,368) ( 370,851) ( 695,057) 6(7) ( 131) ( 2,078) ( 370,982) ( 697,135) $ 40,808 ( $ 964,503) $ 7,613,104 $ 5,603,268 $ 6,154,426 $ 5,466,764 $ 1,417,870 $ 1,101,007 $ 6,196,952 $ 4,517,525 $ 1,416,152 $ 1,085,743 6(31) $ 8.71 $ 7.80 6(31) $ 8.56 $ 7.68

Other comprehensive income Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8311 Actuarial gain (loss) on defined benefit plan 8316 Unrealized gain or loss on equity instruments at fair value through other comprehensive income 8310 Other comprehensive income (loss) that will not be reclassified to profit or loss Components of other comprehensive loss that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8370 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8360 Other comprehensive loss that will be reclassified to profit or loss 8300 Total other comprehensive income (loss) for the year 8500 Total comprehensive income for the year Profit attributable to: 8610 Owners of the parent 8620 Non-controlling interest Comprehensive income attributable to: 8710 Owners of the parent 8720 Non-controlling interest Earnings per share (in NTD dollars) 9750 Basic earnings per share 9850 Diluted earnings per share

The accompanying notes are an integral part of these consolidated financial statements.

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CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of New Taiwan dollars)

2020 Balance at January 1, 2020 Profit for 2020 Other comprehensive loss for 2020 Total comprehensive income (loss) Appropriations of 2019 earnings Legal reserve Special reserve Cash dividends Employees’ stock dividends Cash dividends paid to the subsidiaries Adjustments to share of changes in equity of associates and joint ventures Difference between proceeds from addition and disposal of subsidiary and book value Cash dividends distributed by subsidiaries Disposal of investments in equity instruments at fair value through other comprehensive income Disposals of investment property Non-controlling interest adjustment Balance at December 31, 2020 2021 Balance at January 1, 2021 Profit for 2021 Other comprehensive income (loss) for 2021 Total comprehensive income (loss) Appropriations of 2020 earnings Legal reserve Special reserve Cash dividends Employees’ stock dividends Cash dividends paid to the subsidiaries Adjustments to share of changes in equity of associates and joint ventures Difference between proceeds from addition and disposal of subsidiary and book value Cash dividends distributed by subsidiaries Disposal of investments in equity instruments at fair value through other comprehensive income Disposals of investment property Non-controlling interest adjustment Balance at December 31, 2021	Notes					Equityattributable to	Equityattributable to	Equityattributable to	owners of theparent								Non-controlling interest		Total equity
		Share capital - common stock	Total capital surplus, additional paid-in capital			Retained Earnings		Unappropriated retained earnings	O	ther EquityInteres	t			Treasurystocks	Total
					Legal reserve	Special reserve			Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income		Asset revaluation increment
	6(22) 6(21) 6(19) 6(32) 6(32) 6(3) 6(32) 6(22) 6(21) 6(19) 6(32) 6(32) 6(3) 6(32)	$ 7,344,975 - - - - - - 49,628 - - - - - - - $ 7,394,603 $ 7,394,603 - - - - - - 58,324 - - - - - - - $ 7,452,927		$ 6,114,005 - - - - - - 350,372 220,443 105,827 ( 378,112) - - - - $ 6,412,535 $ 6,412,535 - - - - - - 491,676 205,497 116,633 ( 43,876) - - - - $ 7,182,465	$ 4,976,270 - - - 583,882 - - - - - - - - - - $ 5,560,152 $ 5,560,152 - - - 542,708 - - - - - - - - - - $ 6,102,860	$ 3,105,405 - - - - 185,424 - - - - - - - - - $ 3,290,829 $ 3,290,829 - - - - 961,745 - - - - - - - - - $ 4,252,574		$ 9,370,658 5,466,764 ( 298 ) 5,466,466 ( 583,882 ) ( 185,424 ) ( 4,362,815 ) - - - - - ( 44,132 ) 4,744 - $ 9,665,615 $ 9,665,615 6,154,426 9,597 6,164,023 ( 542,708 ) ( 961,745 ) ( 4,099,110 ) - - - ( 243,650 ) - ( 8,218 ) 401 - $ 9,974,608	( $ 2,115,391) - ( 687,358) ( 687,358) - - - - - - - - - - - ( $ 2,802,749) ( $ 2,802,749) - ( 356,416) ( 356,416) - - - - - - - - - - - ( $ 3,159,165)	($ 2,597,937) - ( 261,583) ( 261,583) - - - - - - - - 44,132 - - ($ 2,815,388) ($ 2,815,388) - 389,345 389,345 - - - - - - - - 8,218 - - ($ 2,417,825)		$ 1,381,667 - - - - - - - - - - - - ( 4,744 ) - $ 1,376,923 $ 1,376,923 - - - - - - - - - - - - ( 401 ) - $ 1,376,522		( $ 311,277) - - - - - - - - - - - - - - ( $ 311,277) ( $ 311,277) - - - - - - - - - - - - - - ( $ 311,277)	$ 27,268,375 5,466,764 ( 949,239) 4,517,525 - - ( 4,362,815) 400,000 220,443 105,827 ( 378,112) - - - - $ 27,771,243 $ 27,771,243 6,154,426 42,526 6,196,952 - - ( 4,099,110) 550,000 205,497 116,633 ( 287,526) - - - - $ 30,453,689		$ 4,625,652 1,101,007 ( 15,264) 1,085,743 - - - - - 218,507 378,112 ( 606,428) - - ( 801,147) $ 4,900,439 $ 4,900,439 1,417,870 ( 1,718) 1,416,152 - - - - - 221,738 287,526 ( 797,890) - - ( 447,858) $ 5,580,107		$ 31,894,027 6,567,771 ( 964,503) 5,603,268 - - ( 4,362,815) 400,000 220,443 324,334 - ( 606,428) - - ( 801,147) $ 32,671,682 $ 32,671,682 7,572,296 40,808 7,613,104 - - ( 4,099,110) 550,000 205,497 338,371 - ( 797,890) - - ( 447,858) $ 36,033,796

The accompanying notes are an integral part of these consolidated financial statements.

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CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation Intangible assets amortization Other non-current assets recognized as expenses Impairment loss determined in accordance with IFRS 9 Share-based payments Interest income Dividend income Interest expense Net gain on financial assets and liabilities at fair value - derivative Net loss on financial assets and liabilities at fair value - others Share of profit or loss of associates accounted for using equity method Gain arising from lease modifications Loss on disposal of property, plant and equipment Gain on disposals of investment property Loss on disposal of intangible assets Impairment loss of non-financial assets Gain on fair value adjustment of investment property Accounts payable past due over two years transferred to other income Changes in operating assets and liabilities Changes in operating assets Financial assets and liabilities at fair value through profit or loss - current Notes receivable Accounts receivable Accounts receivable - related parties Other receivables Inventories Prepayments Other current assets Changes in operating liabilities Contract liabilities - current Notes payable Accounts payable Accounts payable - related parties Other payables Other current liabilities Other non-current liabilities Cash inflow generated from operations Interest received Dividends received Interest paid Income tax paid Net cash flows from operating activities

Years ended December 31 Notes 2021 2020 $ 9,451,621 $ 8,218,190 6(8)(9)(28) 2,879,979 2,437,434 6(11)(28) 79,775 73,033 6(28) 27,685 61,028 12(2) 41,710 4,681 6(18) 35,796 17,813 6(24) ( 97,647 ) ( 142,360 ) 6(25) ( 117,568 ) ( 243,213 ) 6(27) 59,671 67,643 6(2)(26) ( 913,249 ) ( 325,691 ) 6(26) 23,326 578,743 6(7) ( 26,146 ) 11,077 6(9) ( 1,092 ) ( 225 ) 6(26) 115,420 34,439 6(26) ( 51,933 ) ( 222,225 ) 6(11) 2,533 - 6(11)(12)(26) 33,000 54,819 6(10)(26) ( 11,800 ) ( 51,943 ) 6(25) ( 211,538 ) - 1,072,236 ( 515,076 ) ( 7,591 ) ( 1,869 ) ( 5,250,915 ) ( 3,125,578 ) ( 98,875 ) 79,123 75,269 7,196 ( 6,104,369 ) ( 1,844,506 ) 22,945 ( 455,625 ) ( 13,505 ) 5,235 86,163 37,915 1,294 ( 4,950 ) 2,150,852 1,402,889 ( 10,530 ) 70,387 2,172,034 2,431,781 7,138 166,247 ( 26,615 ) 35,086 5,395,074 8,861,498 64,861 61,131 117,493 242,463 ( 54,632 ) ( 69,107 ) ( 1,134,267 ) ( 665,793 ) 4,388,529 8,430,192

(Continued)

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CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets and liabilities at fair value through profit or loss - others Disposal of financial assets and liabilities at fair value through profit or loss - others Disposal of financial assets at fair value through other comprehensive income Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of investment property Proceeds from disposal of investment property Acquisition of intangible assets Increase in other non-current assets (Increase) decrease in refundable deposits Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term borrowings Increase in long-term borrowings Decrease in long-term borrowings Repayment of lease liabilities Payments to acquire treasury shares Treasury stock transferred to employees Change in non-controlling interests Cash dividend distributed by subsidiaries Net cash flows used in financing activities Effect of exchange rate changes Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Years ended December 31 Notes 2021 2020 ( $ 1,625,485 ) ( $ 1,378,757 ) 2,073,647 1,869,590 6(3) 156,971 135,108 6(33) ( 3,213,286 ) ( 3,406,962 ) 223,808 171,625 6(10) ( 1,714 ) - 145,869 2,394,737 6(11) ( 96,591 ) ( 82,432 ) ( 35,229 ) ( 1,359,233 ) ( 97,162 ) 27,600 ( 2,469,172 ) ( 1,628,724 ) 6(34) 1,536,154 ( 806,832 ) - 200,000 6(34) ( 100,000 ) ( 200,000 ) ( 145,391 ) ( 130,178 ) ( 3,893,613 ) ( 4,142,372 ) 36,996 38,487 6(32) ( 447,858 ) ( 801,147 ) ( 797,890 ) ( 606,428 ) ( 3,811,602 ) ( 6,448,470 ) ( 133,470 ) ( 738,169 ) ( 2,025,715 ) ( 385,171 ) 6(1) 3,751,351 4,136,522 6(1) $ 1,725,636 $ 3,751,351

The accompanying notes are an integral part of these consolidated financial statements.

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CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars,

except as otherwise indicated)

1. HISTORY AND ORGANISATION

Chicony Electronics Co., Ltd. (the “Company”) was incorporated in 1983 as a company limited by shares under the provisions of the Company Law of the Republic of China. The Company has been a listed company since 1999. The Company and its subsidiaries (collectively referred herein as the “Group”) are engaged in the manufacturing and sales of keyboards and other computer peripheral components.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised for issuance by the Board of Directors on March 9, 2022.

1. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest Rate Benchmark Reform— Phase 2’ Amendment to IFRS 16, ‘Covid-19-related rent concessions beyond 30 June 2021’ Note: Earlier application from January 1, 2021 is allowed by the FSC.	January 1, 2021 January 1, 2021 April 1, 2021 (Note)

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

	Effective date by
	International
	Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IAS 16, ‘Property, plant and equipment:proceeds before	January 1, 2022
intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract’	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

FRSs issued by IASB but not yet endorsed by the FSC New standards, interpretations and amendments issued by IASB but not endorsed by the FSC are as follows:	yet included in the IFRSs
New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
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, 'Insurance contracts' Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 – comparative information' 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’	To be determined by International Accounting Standards Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

• A. Except for the following items, these consolidated financial statements have been prepared under the historical cost convention:

• (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

• (b) Financial assets at fair value through other comprehensive income.

• (c) Investment property measured subsequently using the fair value model.

• (d) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in compliance with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

• (b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

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• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

• (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. 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 loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised 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. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B. Subsidiaries included in the consolidated financial statements:

Name of Name of Main business investor subsidiary activities Chicony Chicony Sales of computer Electronics Overseas Inc. peripherals and Co., Ltd. (COI) management of overseas (CEC) acquisitions and investments " Unikey Manufacturing and sales Electronics Co., of computers and Ltd. (UNIKEY) computer peripherals " Hipro Overseas Sales of switching power (BVI) Inc. (HOI) supplies and other electronic parts and management of overseas acquisitions and investments " Hipro Electronics Sales of switching power Ltd. (HEC) supplies and other electronic parts		December 31, December 31, 2021 2020 100% 100% 100% 100% 100% 100% 100% 100% Ownership (%)	Description
		December 31, 2021
		100% 100% 100% 100%

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Name of Name of Main business investor subsidiary activities CEC XAVi Researching, Technology manufacturing and sales Corp. (XAVi) of DSL bridges and routers " Chicony Manufacturing and sales Electronics of computer peripherals (Thailand) Co., Ltd. (CET) " Chicony Global Sales of computer Inc. (CGI) peripherals " Chicony Power Manufacturing and sales Technology Co., of plastic goods Ltd. (CP) COI Chicony America Sales of computer Inc. (CAI) peripherals " Chicony Manufacturing and sales Electronics (Dong of computers and Guan) Co., Ltd. computer peripherals (CEM2) " Mao-Feng Sales of computer International Inc. peripherals and (Mao-Feng) management of overseas acquisitions and investments " Chicony Manufacturing and sales Electronics of computers and (Suzhou) Co., computer peripherals Ltd. (CEM3) " Global Faith Sales of computer Inc. (GFI) peripherals and management of overseas acquisitions and investments " Real Young Design and sales of Electronics Co., computer peripherals Ltd. and management of (Real Young) overseas acquisitions and investments " Mao-Ray Manufacturing of Electronics electronic parts, (DongGuan) keyboards and plastic Co., Ltd. (Mao- products Ray) " Suzhou Mao- Manufacturing of Qun Electronics electronic parts, Co., Ltd. (Mao- keyboards and plastic Qun) products " Chicony Sales of computer Electronics CEZ peripherals s.r.o. (CEZ)		December 31, December 31, 2021 2020 45.34% 46.63% 100% 100% 100% 100% 53.02% 52.00% 100% 100% 100% 100% 100% 100% 100% 100% 60% 60% 100% 100% 100% 100% 60% 60% 100% 100% Ownership (%)	Description
		December 31, 2021
		45.34% 100% 100% 53.02% 100% 100% 100% 100% 60% 100% 100% 60% 100%	Note A Note C

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Name of Name of Main business investor subsidiary activities COI Suzhou Qun- Manufacturing and sales Yang Electronics of electronic parts, Co., Ltd. (Qun- keyboard and plastic Yang) products " Chicony Sales of computer Electronics peripherals Japan Co., Ltd. (CEJ) " Kuang Mao Sales of computer International peripherals and Inc. (Kuang management of Mao) overseas acquisitions and investments " Chicony Internet solution for America Group E-Commerce solution Inc. (CAGI) " Chicony Manufacturing and Electronics sales of computer (Chong-Qing) peripherals Co., Ltd. (CEM5) HEC Quansun Investment holdings Investment Corp. Ltd. (Quansun) " Qun-Jing Sales of computer Power Co., peripherals and Ltd. consumer equipment (Qun-Jing) CP Chicony Power Investment holdings Holdings Inc. (CPH) " Chicony Power Technology (Thailand) Co., Ltd. (CPTH) Manufacturing and sales of switching power supplies and other electronic parts " Chicony Power Investment holdings International Inc. (CPI)		December 31, December 31, 2021 2020 60% 60% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Ownership (%)	Description
		December 31, 2021
		60% 100% 100% 100% 100% 100% 100% 100% 100% 100%

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Name of Name of Main business investor subsidiary activities CP Chicony Power Manufacturing and USA Inc. sales of switching (CPUS) power supplies and other electronic parts " Chicony Power Research and Technology development centre HongKong and investment holdings Limited (CPHK) " WitsLight Design, researching and Technology developing LED Co., Ltd. lighting modules and (WTS) investment holdings WTS WitsLight Technology sales of LED lighting (Kunshan) Co., modules Ltd. (WTK) " Zhuzhou Torch Production and sales Auto Lamp of automotive and CO., Ltd. motorcycle (Zhuzhou components, electric Torch) machine and device, lamps and plastic products " Carlight Design, researching Technology and developing and Co., Ltd. (CT) sales of automotive and motorcycle lamps and other components CPHK Chicony Power Manufacturing and Technology sales of switching (DongGuan) power supplies and Co., Ltd. other electronic parts (CPDG) (Formerly Hipro Electronics (Dong Guan) Co., Ltd.)(HDG) International trade		December 31, December 31, 2021 2020 100% 100% 100% 100% 100% 83.68% 100% 100% 100% 100% 100% 100% 100% 100% Ownership (%)	Description
		December 31, 2021
		100% 100% 100% 100% 100% 100% 100%	Note B

~21~

Name of Name of Main business investor subsidiary activities CPHK Chicony Power Production and sales Technology of electronic (Suzhou) Co., equipment (high- Ltd. (CPSZ) performance power supply, power module and voltage transformer) and LED lighting equipment " Quang Sheng Production and sales Electronics of electronic (Nanchang) equipment (magnetic Co., Ltd. element, circuit board (GSE) and keyboard) and voltage transformer " Chicony Power Production and sales Technology of electronic (Chong-Qing) equipment (high- Co., Ltd. performance power (CPCQ) supply, power module and voltage transformer) and LED lighting equipment " Chicony Energy Consultation, development, Saving transfer and service of Technology energy-saving technology, (Shanghai) Co., energy management and Ltd. (CPSH) sales and installation of energy-saving lighting equipment " Chicony Power Importing and Technology Trading exporting of switching (Dong Guan) power supplies, LED Co., Ltd. lighting equipment, (CPDGT) and other electronics Chicony Power Technology (Taizhou) Co., Ltd. (CPTZ) Researching and developing, manufacturing, sales, installation, after-sale, and technology advisory services of electric machinery, electric frequency device and industry automation equipment; manufacturing and sales of electrical machinery and components; import and export of goods and technology		December 31, December 31, 2021 2020 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Ownership (%)	Description
		December 31, 2021
		100% 100% 100% 100% 100% 100%

~22~

			Ownership (%)	Ownership (%)
Name of	Name of	Main business	December 31,	December 31,
investor	subsidiary	activities	2021	2020	Description
XAVi	Directmax	Management of	100%	100%	Note D
	International	overseas acquisitions
	Ltd.	and investments
	(Directmax)
"	XAVi Technologies	Manufacturing, processing	100%	100%	Note E
	(Thailand) Co., Ltd.	and sales of communication
	(XAVi Thailand)	products
"	XAVi Overseas	Management of	100%	100%	Note D
	Ltd. (XAVi	overseas acquisitions
	Overseas)	and investments
"	Systemax	Sales of DSL bridges and	100%	100%
	Development Ltd.	routers
	(Systemax)
"	XAVi	Manufacturing and	100%	100%	Note D
	Technologies	sales of DSL bridges
	(Suzhou) Co., Ltd.	and routers

• Note A: Although the Company holds less than 50% of the voting shares directly or indirectly, the remaining shares of these companies are extremely dispersed. The participation of other shareholders in the previous shareholders’ meeting indicates that the Company has the current ability to direct the relevant activities of these companies and there is no sign that there is a collective decision-making agreement made among other shareholders. Under the assessment, the Company has control over the entity which was included in the consolidated financial statements.

• Note B: CP purchased shares from the original shareholder, WTS, on July 15, 2021 and July 31, 2020 and held 100% and 83.68% equity interest in WTS after the purchase, respectively.

• Note C: XAVi decreased its capital on November 10, 2020. The ratio of capital reduction was approximately 30%.

• Note D: XAVi Technologies (Suzou) Co., Ltd. has completed the reorganisation in the second quarter of 2021 and all of its shares originally held by XAVi Overseas are now held by Directmax.

• Note E: XAVi had completed the new establishment of Xavi Thailand in the amount of THB 50,000 thousand in the first quarter of 2020 and made an additional investment of THB 5,000 thousand in the second quarter of 2021.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group:

As of December 31, 2021 and 2020, the non-controlling interest amounted to $5,580,107 and $4,900,439, respectively. The information on non-controlling interest and respective subsidiaries is as follows:

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			Non-controllinginterest	Non-controllinginterest
		December	31,2021	December	31,2020
Name of	Principal place		Ownership		Ownership
subsidiary	of business	Amount	(%)	Amount	(%)
Chicony Power	Taiwan	$ 5,221,104	46.98%	$ 4,566,626	48.00%
Technology Co.,
Ltd.

Summarised financial information of the subsidiaries:

Balance sheets

Balance sheets
			Chicony Power Technology			Co., Ltd.
		December31,2021			December31,2020
Current assets		$	23,111,816		$	18,701,568
Non-current assets			6,900,732			6,469,523
Current liabilities	(		18,638,214)	(		15,347,884)
Non-current liabilities	(		260,874)	(		292,576)
Total net assets		$	11,113,460		$	9,530,631

Statements of comprehensive income

Statements of comprehensive income
			Chicony Power Technology			Co., Ltd.
			Years ended	December 31,
			2021			2020
Revenue		$	40,363,978		$	34,863,027
Profit before income tax			3,579,665			2,721,457
Income tax expense	(		751,190)	(		594,237)
Profit for the year			2,828,475			2,127,220
Other comprehensive income, net of tax			14,310			10,693
Total comprehensive income for the year		$	2,842,785		$	2,137,913
Comprehensive income attributable to non-
controlling interest		$	1,335,905		$	1,021,550
Dividends paid to non-controlling interest		$	760,771		$	606,428

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Statements of cash flows

Statements of cash flows
		ChiconyPower Technology			Co.,Ltd.
		Years ended	December31,
		2021			2020
Net cash provided by operating activities		1,412,478 $		$	3,086,269
Net cash used in investing activities	(	1,485,098)	(		1,980,943)
Net cash used in financing activities	(	238,130)	(		1,472,823)
Effect of exchange rates		6,285	(		6,532)
Decrease in cash and cash equivalents	(	304,465)	(		374,029)
Cash and cash equivalents, beginning of year		1,013,512			1,387,541
Cash and cash equivalents, end of year		709,047 $		$	1,013,512

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Group’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are measured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within other gains and losses.

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• B. Translation of foreign operations

• (a) The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • (i) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • (ii) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • (iii) All resulting exchange differences are recognised in other comprehensive income.

• (b) When the foreign operation partially disposed of or sold is an associate or joint arrangements, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group still retains partial interest in the former foreign associate or joint arrangements after losing significant influence over the former foreign associate, or losing joint control of the former joint arrangements, such transactions should be accounted for as disposal of all interest in these foreign operations.

• (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group still retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

• (d) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

(5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

• (b) Assets held mainly for trading purposes;

• (c) Assets that are expected to be realised within twelve months from the balance sheet date;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than twelve months after the balance sheet date.

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• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within twelve months from the balance sheet date;

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue do not affect its classification.

(6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

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

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(8) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value.

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(9) Accounts receivable

• A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

• C. The Group’s operating pattern of accounts receivable that are expected to be factored is for the purpose of selling, and the accounts receivable are subsequently measured at fair value, with any changes in fair value recognised in profit or loss.

(10) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income including accounts receivable that have a significant financing component, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(11) Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

The Group derecognises a financial asset when one of the following conditions is met:

• A. The contractual rights to receive the cash flows from the financial asset expire.

• B. The contractual rights to receive cash flows of the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.

• C. The contractual rights to receive cash flows of the financial asset have been transferred; and the Group has not retained control of the financial asset.

(12) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

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- (13) Leasing arrangements (lessor) lease receivables / operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(14) Investments accounted for using equity method / associates

• A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

• B. The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognises change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

• D. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• F. Upon loss of significant influence over an associate, the Group remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.

• G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

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• H. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

(15) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives are 20~55 years for buildings and structures, 1~10 years for machinery and testing equipment, 1~5 years for molding equipment and 1~20 years for other equipment.

(16) Leasing arrangements (lessee) - right-of-use assets / lease liabilities

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable. The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

~30~

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

• (a) The amount of the initial measurement of lease liability; and

• (b) Any lease payments made at or before the commencement date.

• The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the fair value model. A gain or loss arising from a change in the fair value of investment property is recognised in profit or loss.

(18) Intangible assets

• A. Trademarks and licenses

• Separately acquired trademarks and licenses are stated at historical cost. Trademarks and licenses acquired in a business combination are recognised at fair value at the acquisition date. Trademarks and licenses have a finite useful life and are amortised on a straight-line basis over their estimated useful lives of 1~10 years.

• B. Computer software

• Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 1~10 years.

• C. Goodwill

Goodwill arises in a business combination accounted for by applying the acquisition method.

• D. Other intangible assets are mainly technical skill and amortised on a straight-line basis over its estimated useful life of 2~14 years.

(19) Impairment of non-financial assets

• A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

• B. The recoverable amounts of goodwill, intangible assets with an indefinite useful life and intangible assets that have not yet been available for use shall be evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed in the following years.

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• C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

(20) Non-current assets held for sale

Non-current assets are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use, and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell, except for an investment property is measured subsequently using the fair value model.

(21) Borrowings

• A. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

• B. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

(22) Notes and accounts payable

Notes and accounts payable are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. They are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. However, short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as effect of discounting is immaterial.

(23) Financial liabilities at fair value through profit or loss

• A. Financial liabilities at fair value through profit or loss are financial liabilities held for trading. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorised as financial liabilities held for trading unless they are designated as hedges.

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• B. Financial liabilities at fair value through profit or loss are initially recognised at fair value. Related transaction costs are expensed in profit or loss. These financial liabilities are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial liabilities are recognised in profit or loss.

(24) Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability specified in the contract is discharged or cancelled or expires.

(25) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(26) Non-hedging and embedded derivatives

Non-hedging derivatives are initially recognised at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognised in profit or loss.

(27) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expenses in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expenses when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plans

• i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of

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government bonds of a currency and term consistent with the currency and term of the employment benefit obligations.

  - ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

  - iii. Past service costs are recognised immediately in profit or loss.

• C. Termination benefits

• Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Group’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Group recognises expense as it can no longer withdraw an offer of termination benefits or it recognises related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

• D. Employees’ compensation and directors’ and supervisors’ remuneration

• Employees’ compensation and directors’ and supervisors’ remuneration are recognised as expenses and liabilities, provided that such recognition is required under legal obligation or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is distributed by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

- (28) Employee share based payment

• A. For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-market vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. And ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

• B. Restricted stocks:

• (a) Restricted stocks issued to employees are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period.

• (b) For restricted stocks where those stocks do not restrict distribution of dividends to employees and employees are not required to return the dividends received if they resign during the vesting period, the Group recognises the fair value of the dividends received by the employees who are expected to resign during the vesting period as compensation cost at the date of dividends declared.

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• (c) For restricted stocks where employees do not need to pay to acquire those stocks, if employees resign during the vesting period, the Company will redeem at no consideration and retire those stocks.

(29) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

• D. Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred income tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

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• F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures, employees’ training costs and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

(30) Share capital

• A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

• B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(31) Dividends

Cash dividends are recorded as liabilities in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders or when the Board of Directors with attendance of at least two thirds of total directors and approval by a majority of the directors present. Stock dividends are recorded as stock dividends to be distributed in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders and are reclassified to ordinary shares on the effective date of new shares issuance..

(32) Revenue recognition

A. Sales of goods

• (a) Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

• (b) According to the contracts with customers, as the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

• (c) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

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B. Incremental costs of obtaining a contract

Given that the contractual period lasts less than one year, the Group recognises the incremental costs of obtaining a contract as an expense when incurred although the Group expects to recover those costs.

(33) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are presented by deducting the grants from the asset’s carrying amount and are amortised to profit or loss over the estimated useful lives of the related assets as reduced depreciation expense.

(34) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker. The Chief Operating Decision-Maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

- (1) Critical accounting judgements Evaluation of investment property

The Group follows the guidance of IAS 40 ‘‘Investment property’’ to determine the assets to be measured at fair value. Unless in extreme circumstances that there is a definite evidence that the fair value of investment property cannot be reliably measured on an ongoing basis, the investment property of the Group is measured at fair value after the initial recognition.

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(2) Critical accounting estimates and assumptions

• A. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

• B. Evaluation of investment property

The Group’s investment properties are measured at fair value. The fair value is evaluated using the income approach by an external appraiser. It involves critical assumptions including occupancy rate, rent growth rate, discount rate, etc.. Those assumptions may be affected by the economic conditions, market needs, etc. that may change.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	December31,2021 11,130 $ 1,626,303 88,203 1,725,636 $	December 31, 2020
		11,628 $ 3,454,907 284,816
		3,751,351 $

• A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. Details of cash and cash equivalents pledged as collateral are provided in Note 8.

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

Items		December	31,2021		December	31,2020
Current items:
Financial assets mandatorily measured at fair
value through profit or loss
Listed stocks		$	2,702,452		$	3,078,914
Unlisted stocks			20,809			20,809
Corporate bonds			22,770			22,770
Non-hedging derivatives
Forward exchange contracts			246,225			732,449
Exchange rate swaps			5,402			53
			2,997,658			3,854,995
Valuation adjustment	(		842,486)	(		439,170)
		$	2,155,172		$	3,415,825
Financial liabilities mandatorily measured at fair
value through profit or loss
Non-hedging derivatives
Forward exchange contracts		$	59,354		$	387,581
Exchange rate swaps			-			3,130
		$	59,354		$	390,711
Non-current items:
Financial assets mandatorily measured at fair
value through profit or loss
Unlisted stocks		$	725,534		$	747,663
Beneficiary certificates			1,208,949			1,089,083
			1,934,483			1,836,746
Valuation adjustment			64,817	(		124,042)
		$	1,999,300		$	1,712,704

• A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

	December	31,2021	December	31,2020
Equity instruments	($	59,388)	($	613,468)
Debt instruments		1,347		8,560
Beneficiary certificates		34,715		26,165
Derivatives		913,249		325,691
	$	889,923	($	253,052)

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• B. The Group entered into contracts relating to derivative financial assets and liabilities which were not accounted for under hedge accounting. The information is listed below:

Derivativeinstruments Forward foreign exchange contracts -SELL NTD/BUY USD -SELL USD/BUY RMB -SELL THB/BUY USD -SELL RMB/BUY USD -SELL USD/BUY NTD -SELL USD/BUY THB Exchange rate swaps -SELL USD/BUY NTD Derivativeinstruments Forward foreign exchange contracts -SELL NTD/BUY USD -SELL RMB/BUY USD -SELL USD/BUY RMB -SELL USD/BUY NTD -SELL THB/BUY USD Exchange rate swaps -SELL USD/BUY NTD	Contract amount (Notional Principal) (Inthousands) USD 580,000 USD 384,000 USD 134,000 USD 28,109 USD 75,000 USD 2,996 USD 50,500 December December	DueDate 31,2021
		2022.01.03~2022.02.25 2022.01.04~2022.12.21 2022.01.18~2022.07.11 2022.01.04~2022.03.10 2022.01.03~2022.03.22 2022.01.08 2022.02.22~2022.03.29 31, 2020
	Contract amount (Notional Principal) (Inthousands) USD 415,000 USD 78,567 USD 437,500 USD 60,000 USD 75,000 USD 21,600	DueDate
		2021.01.07~2021.02.26 2021.01.04~2021.04.07 2021.01.04~2021.12.01 2021.01.15~2021.02.23 2021.01.15~2021.02.10 2021.02.22~2021.03.18

Forward foreign exchange contracts / Foreign exchange swap contracts

The Group entered into forward foreign exchange contracts and foreign exchange swap contracts to buy (sell) foreign exchange swap and interest rate swap to hedge exchange rate risk of import and export proceeds. However, these forward foreign exchange contracts and foreign exchange swap contracts are not accounted for under hedge accounting.

• C. The Group has no financial assets and liabilities at fair value through profit or loss pledged to others.

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

==> picture [468 x 203] intentionally omitted <==

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

Items December 31, 2021 December 31, 2020
Current items:
Listed stocks $ 4,182,378 $ 4,275,431
Unlisted stocks 73,127 74,607
4,255,505 4,350,038
Valuation adjustment ( 1,374,047) ( 1,737,506)
$ 2,881,458 $ 2,612,532
Non-current items:
Listed stocks $ 1,281,850 $ 1,281,850
Unlisted stocks 484,444 589,881
1,766,294 1,871,731
Valuation adjustment ( 1,384,713) ( 1,446,570)
$ 381,581 $ 425,161
----- End of picture text -----

• A. The Group has elected to classify equity investments that are considered to be strategic investments or steady dividend income as financial assets at fair value through other comprehensive income - current and financial assets at fair value through other comprehensive income - non-current. The fair value of such investments as of December 31, 2021 and 2020 was equivalent to their carrying amount.

• B. The Group sold $156,971 and $135,108 equity investments at fair value which resulted in cumulative losses on disposal of $22,944 and $74,571 and were transferred as a deduction item to unappropriated retained earnings during the years ended December 31, 2021 and 2020, respectively.

• C. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income Cumulative losses reclassified to retained earnings due to derecognition Dividend income recognised in profit or loss held at end of year	2021 2020 402,372 $ 266,733) ($ 22,944 $ 74,571 $ 57,890 $ 45,360 $

• D. The Group has no financial assets at fair value through other comprehensive income pledged to others.

• E. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2).

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(4) Financial assets at amortised cost

Items December 31, 2021 December 31, 2020 Non-current items: Corporate bonds $ 445,025 $ 454,030

• A. Interest income from financial assets measured at amortised cost for the years ended December 31, 2021 and 2020 amounted to $40,435 and $85,279, respectively.

• B. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

(5) Accounts receivable

		December 31, 2021	December 31, 2021		December 31, 2020	December 31, 2020
Notes receivable		$	163,196		$	155,605
Accounts receivable		$	28,653,616		$	23,484,278
Less: Allowance for uncollectible accounts	(		139,476)	(		179,343)
		$	28,514,140		$	23,304,935

• A. The ageing analysis of accounts receivable and notes receivable that were past due but not impaired is as follows:

Not past due 1 to 30 days 31 to 120 days 121 to 215 days Over 365 days	December	Notes receivable 163,196 $ - - - - 163,196 $ 31, 2021	December	31, 2020
	Accounts receivable 28,362,192 $ 138,458 33,237 45,245 74,484 28,653,616 $		Accounts receivable 22,809,755 $ 321,327 162,567 46,337 144,292 23,484,278 $	Notes receivable
				155,605 $ - - - -
				155,605 $

The above ageing analysis was based on past due date.

• B. As of December 31, 2021 and 2020, the balances of accounts and notes receivable were all from contracts with customers. As of January 1, 2020, the balance of receivables from contracts with customers amounted to $20,514,551.

• C. The Group has no notes or accounts receivable pledged to others as collateral.

• D. As at December 31, 2021 and 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents notes and accounts receivable held by the Group was equal to carrying amount.

• E. Information relating to credit risk of accounts receivable and notes receivable is provided in Note 12(2).

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(6) Inventories

Inventories
Allowance for Cost valuation loss Raw materials 10,642,738 $ 747,245) ($ Work in progress 3,724,508 188,797) ( Finished goods 8,966,479 601,462) ( 23,333,725 $ 1,537,504) ($ Allowance for Cost valuation loss Raw materials 6,140,087 $ 431,482) ($ Work in progress 2,771,644 204,534) ( Finished goods 8,107,536 691,399) ( 17,019,267 $ 1,327,415) ($ December31,2021 December31,2020	Bookvalue 9,895,493 $ 3,535,711 8,365,017 21,796,221 $ Bookvalue
	5,708,605 $ 2,567,110 7,416,137 15,691,852 $

The cost of inventories recognised as expense for the year:

Cost of goods sold Loss on decline in market value Others	Years endedDecember31,	Years endedDecember31,
	2021 87,976,877 $ 473,766 121,201 88,571,844 $	2020
		76,833,341 $ 436,870 36,387
		77,306,598 $

The other losses (gains) represent the loss (gain) on physical count and income from sale of scraps and wastes.

(7) Investments accounted for using equity method

A. Investments accounted for using the equity method were as follows:

Associate: Sky-Fine Investment Limited (Sky-Fine) Swift Success Holdings Limited (Swift Success)	December31,2021 18,455 $ 199,928 218,383 $	December31,2020
		7,708 $ 184,660
		192,368 $

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• B. The share of profit (loss) of associates accounted for using equity method for the years ended December 31, 2021 and 2020 are as follows:

December 31, 2021 and 2020 are as follows:
	December	31,2021	December	31,2020
Associate:
Sky-Fine Investment Limited (Sky-Fine)	$	11,495	($	10,816)
Swift Success Holdings Limited (Swift Success)		14,651	(	261)
	$	26,146	($	11,077)

The amount of profit or loss of associates and other comprehensive income or loss of Sky-Fine Investment Limited is evaluated based on its audited financial statements for the same reporting period.

C. Associates

As of December 31, 2021 and 2020, the carrying amount of the Group’s individually immaterial associates amounted to $218,383 and $192,368, respectively. The Group’s share of the operating results are summarised below:

			Years ended	December31,	December31,
			2021		2020
Profit (loss) for the year from continuing
operations		$	26,146	($	11,077)
Other comprehensive loss, net of tax	(		131)	(	2,078)
Total comprehensive income (loss)		$	26,015	($	13,155)

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(8) Property, plant and equipment

												Tooling			Testing		Construction	Construction
			Land			Buildings			Machinery			equipment			equipment		in	progress			Others			Total
At January 1, 2021
Cost		$	757,088		$	8,749,116		$	7,543,061		$	5,554,341		$	3,214,319		$	796,824		$	4,072,471		$	30,687,220
Accumulated
depreciation
and impairment			-	(		2,450,369)	(		4,311,509)	(		4,528,239)	(		2,101,073)			-	(		3,014,548)	(		16,405,738)
		$	757,088		$	6,298,747		$	3,231,552		$	1,026,102		$	1,113,246		$	796,824		$	1,057,923		$	14,281,482
2021
Opening net book
amount		$	757,088		$	6,298,747		$	3,231,552		$	1,026,102		$	1,113,246		$	796,824		$	1,057,923		$	14,281,482
Additions			89,230			520,135			781,164			437,541			624,672			244,423			400,188			3,097,353
Disposals			-			-	(		129,272)	(		63,356)	(		22,699)			-	(		123,901)	(		339,228)
Reclassifications			19,315			865,082			284,133			269,647			104,884	(		870,486)			168,919			841,494
Depreciation			-	(		361,479)	(		741,812)	(		679,714)	(		483,176)			-	(		454,201)	(		2,720,382)
Impairment loss			-			-	(		133)			-			-			-	(		7,850)	(		7,983)
Net exchange
differences	(		22,684)	(		52,180)	(		33,794)			2,737	(		14,387)	(		51,045)	(		19,656)	(		191,009)
Closing net book
amount		$	842,949		$	7,270,305		$	3,391,838		$	992,957		$	1,322,540		$	119,716		$	1,021,422		$	14,961,727
At December 31, 2021
Cost		$	842,949		$	10,086,025		$	8,130,805		$	5,629,898		$	3,720,964		$	119,716		$	4,266,155		$	32,796,512
Accumulated
depreciation
and impairment			-	(		2,815,720)	(		4,738,967)	(		4,636,941)	(		2,398,424)			-	(		3,244,733)	(		17,834,785)
		$	842,949		$	7,270,305		$	3,391,838		$	992,957		$	1,322,540		$	119,716		$	1,021,422		$	14,961,727

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												Tooling			Testing		Construction	Construction
			Land			Buildings			Machinery			equipment			equipment		inprogress				Others			Total
At January 1, 2020
Cost		$	621,313		$	6,946,841		$	7,499,023		$	5,174,391		$	2,512,656		$	1,105,959		$	3,875,891		$	27,736,074
Accumulated
depreciation
and impairment			-	(		2,163,052)	(		4,134,800)	(		4,036,277)	(		1,793,002)			-	(		2,787,263)	(		14,914,394)
		$	621,313		$	4,783,789		$	3,364,223		$	1,138,114		$	719,654		$	1,105,959		$	1,088,628		$	12,821,680
2020
Opening net book
amount		$	621,313		$	4,783,789		$	3,364,223		$	1,138,114		$	719,654		$	1,105,959		$	1,088,628		$	12,821,680
Additions			100,029			87,567			592,311			312,159			642,814			1,441,730			346,041			3,522,651
Disposals			-	(		154)	(		139,152)	(		1,002)	(		28,796)			-	(		36,960)	(		206,064)
Reclassifications			38,180			1,663,892			111,613			106,621			109,942	(		1,735,411)			76,071			370,908
Depreciation			-	(		273,603)	(		705,870)	(		537,888)	(		339,391)			-	(		416,157)	(		2,272,909)
Net exchange
differences	(		2,434)			37,256			8,427			8,098			9,023	(		15,454)			300			45,216
Closing net book
amount		$	757,088		$	6,298,747		$	3,231,552		$	1,026,102		$	1,113,246		$	796,824		$	1,057,923		$	14,281,482
At December 31, 2020
Cost		$	757,088		$	8,749,116		$	7,543,061		$	5,554,341		$	3,214,319		$	796,824		$	4,072,471		$	30,687,220
Accumulated
depreciation
and impairment			-	(		2,450,369)	(		4,311,509)	(		4,528,239)	(		2,101,073)			-	(		3,014,548)	(		16,405,738)
		$	757,088		$	6,298,747		$	3,231,552		$	1,026,102		$	1,113,246		$	796,824		$	1,057,923		$	14,281,482

~46~

• A. Amount of borrowing costs capitalised as part of property, plant and equipment and the range of the interest rates for such capitalisation are as follows: None.

• B. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

(9) Leasing arrangements - lessee

• A. The Group leases various assets including land use right, buildings, machinery and equipment, business vehicles, multifunction printers. Rental contracts are typically made for periods of 1 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants.

• B. Short-term leases with a lease term of 12 months or less comprise multifunction printers, lowvalue assets comprise warehouses, offices and business vehicles. Those were not included in right-of-use assets.

• C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Buildings and structures Land use right Buildings and structures Land use right	Years ended December 31,	Years ended December 31,
	2021 2020 Bookvalue Bookvalue 383,086 $ 446,237 $ 399,578 409,397 782,664 $ 855,634 $ Years ended December 31,	2020
		Bookvalue 446,237 $ 409,397
		855,634 $
	2021 Depreciation expense 149,195 $ 10,402 159,597 $	2020
		Depreciation expense
		154,269 $ 10,256
		164,525 $

• D. As of December 31, 2021, the Group signed a land use right contract with the Bureau of Land Resources for use of the land in the municipality of Chongqing, WuJiang City of Jiangsu Province and Dongguan City of Guangdong Province with a term of 50 years. All rentals had been paid on the contract date, shown as ‘Long-term prepaid rents - Land use right’. The grants received from the local government, as a reward for the local investment, were deducted from the cost of land use right.

• E. For the years ended December 31, 2021 and 2020, the additions to right-of-use assets (including changes in foreign exchange rate) were $113,713 and $127,049, respectively.

~47~

• F. The information on profit and loss accounts relating to lease contracts is as follows:

		Years ended	December31,	December31,
		2021		2020
Items affecting profit or loss
Interest expense on lease liabilities	$	19,463	$	23,610
Expense on short-term lease contracts		118,100		90,613
Expense on leases of low-value assets		2,222		2,255
Gain on lease modification		1,092		225

• G. For the years ended December 31, 2021 and 2020, the Group’s total cash outflow for leases were $285,176 and $246,656, respectively.

• H. The Group has no right-of-use assets pledged to others.

(10) Investment property

nvestment property
			Years ended	December 31,
			2021			2020
At January 1		$	3,972,974		$	6,447,876
Additions－from subsequent expenditures			1,714			-
Disposal	(		214,897)	(		2,479,067)
Reclassifications－transfer out			-	(		47,778)
Gain on fair value adjustment			11,800			51,943
At December 31		$	3,771,591		$	3,972,974

• A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

property are shown below:
Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the year Direct operating expenses arising from the investment property that did not generate rental income during the year	Years endedDecember31,
	2021 70,551 $ 17,589 $ 17,033 $	2020 66,293 $ 13,863 $ 19,264 $

~48~

• B. Basis of investment property at fair value:

The Group’s investment properties are land and buildings of office building. Office buildings are located in Sanchong District and Wugu District in New Taipei City. They mainly earn from rental revenue with rental periods ranging from 1 to 10 years. The assumptions used for the years ended December 31, 2021 and 2020 are as follows:

• (a) Details of the Group’s investment property are as follows:

	December31,2021	December31,2021
The subject	CEC Headquarter	Wugu Building
Location	Sanchong District,	Wugu District, New
	New Taipei City	Taipei City
Valuation method	Income approach	Income approach
Valuation firm	Colliers	Colliers
Valuer	Chien Hui, Ku	Feng Ju, Ke
Evaluation basis date	December 31, 2021	December 31, 2021

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December 31, 2020
Residential
The subject CEC Headquarter Wugu Building Compound Building
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The subject	CEC Headquarter	Wugu Building December 31, 2020	Residential CompoundBuilding
Location	Sanchong District,	Wugu District, New	Sanchong District,
	New Taipei City	Taipei City	New Taipei City
Valuation method	Income approach	Income approach	Income approach
Valuation firm	Panasia	Panasia	Panasia
Valuer	Min An, Yang	Shao You, Chung	Min An, Yang
Evaluation basis	December 15, 2020	December 15, 2020	December 31, 2020
date	(Note)	(Note)

Note: We obtained appraisal reports as of December 31 2020 from the appraiser.

• (b) The fair value of the Company’s properties (including buildings and car parks) was evaluated using the discounted cash flow analysis of income approach.

• The estimation process of the valuation method involves differentiating between rented and not yet rented. The former is calculated by contract rent and the latter is calculated by market price. It also considers comparative rent information of similar properties to determine annual growth range of rent; including idle loss, decoration offset loss, and the closing balance of disposal value of that property to calculate future cash inflow, then discounted by an appropriated discount rate accumulated until the valuation date. Future cash outflow which consists of expenses directly related to operations, i.e. land tax, house tax, insurance fee, management fee, maintenance fee, replacement allocation, amortization of agent fee, etc., is estimated based on the actual expenses incurred in the current year, considering the Company’s current operating results and changes which may occur in the future.

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• (c) The rent, occupancy rate and income of past year of the Group’s properties (including buildings and car parks) and comparative rent information of similar properties are as follows:

Year ended December 31, 2021 CEC Headquarter Wugu Building Year ended December 31, 2020 CEC Headquarter Wugu Building Residential Compound Building	Estimated rent ($/3.3m2/month)	Similar comparative localor market Equivalent to estimated rent Equivalent to estimated rent Equivalent to estimated rent Equivalent to estimated rent Equivalent to estimated rent	Occupancy rate 50.35% 100% 38.32% 100% -	Income of past year
	$909~$972 $580~$680 $898~$968 $282~$737 $840~$962			48,511 $ 22,040 44,253 $ 22,040 -

• (d) Rent growth rate is evaluated by considering the lease contract and actual market situation. Discount rate is evaluated by risk premium approach which takes the return rate on investment of the most general goods as standard, adopted the floating interest rate on a 2- year time deposits of a small amount, as posted by the Chunghwa Post Co., Ltd. plus 0.75 percentage points; and explore the liquidity, risk level, value-added level and the ease of management of the subject. The rent growth rates and discount rates are as follows:

Rent growth rate Discount rate Rent growth rate Discount rate	December	December	December	December
	CEC Headquarter 1.00% 2.845% December
	1.00% 2.845%		31,2020
	CECHeadquarter 1.00% 2.23%	Wugu Building 1.00% 2.90%
				1.00% 2.12%

• C. The fair value information about the investment property is provided in Note 12(3).

• D. Impairment of investment property: None.

• E. Information about the investment property that was pledged to others as collateral is provided in Note 8.

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F. The maturity analysis of the lease payments receivables under the operating leases is as follows:

2021 2022 2023 2024 2025 After 2026	December31,2021 December31,2020 - $ 52,080 $ 62,779 43,086 56,612 34,898 48,311 34,211 42,404 33,348 55,518 43,260 265,624 $ 240,883 $

(11) Intangible assets

ntangible assets
		Trademarks
		and patents				Software			Goodwill			Others			Total
At January 1, 2021
Cost		$	92,040		$	386,769		$	8,879		$	34,668		$	522,356
Accumulated
amortisation and
impairment	(		71,240)	(		318,038)			-	(		31,984)	(		421,262)
		$	20,800		$	68,731		$	8,879		$	2,684		$	101,094
2021
Opening net book amount		$	20,800		$	68,731		$	8,879		$	2,684		$	101,094
Additions			17,874			78,717			-			-			96,591
Disposals			-	(		2,533)			-			-	(		2,533)
Reclassifications			-			2,070			-			-			2,070
Amortisation	(		18,923)	(		60,091)			-	(		761)	(		79,775)
Impairment loss	(		394)	(		615)			-			-	(		1,009)
Net exchange differences			-	(		246)	(		177)			2	(		421)
Closing net book amount		$	19,357		$	86,033		$	8,702		$	1,925		$	116,017
At December 31, 2021
Cost		$	109,914		$	465,673		$	8,702		$	34,117		$	618,406
Accumulated
amortisation and
impairment	(		90,557)	(		379,640)			-	(		32,192)	(		502,389)
		$	19,357		$	86,033		$	8,702		$	1,925		$	116,017

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		Trademarks	Trademarks
		and	patents			Software			Goodwill			Others			Total
At January 1, 2020
Cost		$	72,616		$	320,372		$	132,795		$	31,634		$	557,417
Accumulated
amortisation and
impairment	(		53,032)	(		264,786)	(		69,085)	(		28,173)	(		415,076)
		$	19,584		$	55,586		$	63,710		$	3,461		$	142,341
2020
Opening net book amount		$	19,584		$	55,586		$	63,710		$	3,461		$	142,341
Additions			19,424			63,008			-			-			82,432
Reclassifications			-			3,788			-			-			3,788
Amortisation	(		18,208)	(		54,035)			-	(		790)	(		73,033)
Impairment loss			-			-	(		54,819)			-	(		54,819)
Net exchange differences			-			384	(		12)			13			385
Closing net book amount		$	20,800		$	68,731		$	8,879		$	2,684		$	101,094
At December 31, 2020
Cost		$	92,040		$	386,769		$	129,529		$	29,896		$	638,234
Accumulated
amortisation and
impairment	(		71,240)	(		318,038)	(		120,650)	(		27,212)	(		537,140)
		$	20,800		$	68,731		$	8,879		$	2,684		$	101,094

• A. Details of amortisation on intangible assets are as follows:

Operating costs Selling expenses Administrative expenses Research and development expenses	Years endedDecember31,	Years endedDecember31,
	2021 7,264 $ 1,913 22,220 48,378 79,775 $	2020
		3,641 $ 1,432 14,809 53,151
		73,033 $

• B. Goodwill is allocated to the Group’s cash-generating units identified according to operating segment as follows:

America

December31,2021 8,702 $	December31,2020
	8,879 $

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• C. Goodwill of the Group’s Asia segment is allocated to the cash-generating units identified by Zhuzhou Torch Auto Lamp Co., Ltd. (TORCH). The recoverable amount of all cash-generating units has been determined based on value-in-use calculations. The key assumptions used for value-in-use calculations are as follows: The value-in-use was discounted at the weighted average cost of capital’s discount rate of 3.84% for the year ended December 31, 2020, to reflect the specific risks relating to the relevant cash-generating units. For the year ended December 31, 2020, based on TORCH’s assessment that its future operating profit will not be as expected, an impairment loss of $54,819 (listed under ‘other gains and losses’ in the statement of comprehensive income) was recognised for the goodwill of Asia segment due to the recoverable amount was less than the carrying amount.

• D. The Group shut down certain production lines due to operational considerations for the year ended December 31, 2021 which resulted to an impairment of intangible assets amounting to $1,009. Please refer to Note 6(12) for details.

(12) Impairment of non-financial assets

• A. The Group recognised impairment loss for the years ended December 31, 2021 and 2020 amounting to $33,000 and $54,819, respectively. Details of such loss are as follows:

Impairment loss - property, plant and equipment Impairment loss - intangible assets Impairment loss - others	2021 2020 Recognised in profit or loss Recognised in profit or loss 7,983 $ - $ 1,009 54,819 24,008 - 33,000 $ 54,819 $ YearendedDecember31,

• B. The impairment loss reported by operating segments is as follows:

Taiwan Impairment loss - others		Year ended December 31,	Year ended December 31,	Year ended December 31,
		2021		2020 Recognised in profit or loss
		Recognised in profit or loss
		8,992 $ 24,008 33,000 $		- $ 54,819 54,819 $

• C. The Group shut down certain production lines due to operational considerations for the year ended December 31, 2021 which resulted to an impairment in property, plant and equipment, intangible assets and other assets. The Group wrote down the carrying amount of the asset based on the recoverable amount and recognised an impairment loss of $33,000 accordingly. The recoverable amount of the cash-generating units is the asset’s fair value less costs of disposal or value-in-use. The fair value is classified as a level 3 fair value.

~53~

(13) Other non-current assets

Guarantee deposits paid Prepayments for business facilities Others	December31,2021 December31,2020 210,095 $ 87,778 $ 717,040 1,577,231 168,289 169,273 1,095,424 $ 1,834,282 $

Information on other non-current assets that were pledged to others as collateral is provided in Note 8.

(14) Short-term borrowings

8. Short-term borrowings
Type ofborrowings Bank unsecured borrowings Secured borrowings Type of borrowings Bank unsecured borrowings Secured borrowings	December31,2021 Interest rate range 1,535,279 $ 0.68%~1% 89,076 2.32%~2.6% 1,624,355 $ December 31, 2020 Interest rate range 50,000 $ 0.89%~0.90% 38,168 2.80%~3.07% 88,168 $	Collateral
		None Notes receivable Collateral
		None Notes receivable

• A. As of December 31, 2021, the Group had issued promissory notes as guarantee for the short-termloans. Please see Note 9(1).

• B. Information about the collateral that the Company provided for the short-term borrowings is provided in Note 8.

• C. The Group has signed an agreement to offset financial assets and liabilities with financial institutions. The agreement meets the offsetting criteria of IAS 32, the financial assets and liabilities are offset and reported in the net amount in the balance sheet. Details of the offset as of December 31, 2021 and 2020 are as follows:

December 31, 2021 Gross amounts of Gross amounts of recognised Net amounts recognised financial financial assets/liabilities set presented in Description assets/liabilities off in the balance sheet the balance sheet Bank deposit/ - TWD12,702,028 (In thousands) TWD12,702,028 (In thousands) $ Bank borrowings December 31, 2020 Gross amounts of Gross amounts of recognised Net amounts recognised financial financial assets/liabilities set presented in Description assets/liabilities off in the balance sheet the balance sheet Bank deposit/ - TWD 3,279,488 (In thousands) TWD 3,279,488 (In thousands) $ Bank borrowings

~54~

(15) Other payables

Other payables
	December31,2021		December31,2020
Marketing allowance payable	$	4,368,444	$	3,798,421
Salary payable and annual bonus		2,803,633		2,742,115
Employees' dividends and directors' and
supervisors' remuneration payable		1,525,940		1,280,963
Processing expense payable		1,054,390		685,100
Construction and equipment expense payable		556,374		750,717
Miscellaneous purchase payable		538,661		705,411
Others		3,259,009		2,854,323
	$	14,106,451	$	12,817,050

- (16) Long term borrowings

Type of Borrowing period borrowings andrepayment term Interestrate Long-term bank borrowings TCB Borrowing period is from November 4, 2020 to January 20, 2021; interest is repayable upon maturity of the principal 1.797% Less: Current portion (shown as other current liabilities)	December 31, Collateral 2020 None 100,000 $ 100,000) ( - $

• Note: Revolving credit for five years starting from the first drawdown (January, 2016), each credit period is limited to 90 to 180 days.

• A. As of December 31, 2021 and 2020, the Group’s Chairman had issued promissory notes to guarantee the long-term loans. Please see Note 9(1).

• B. Information about the long-term borrowings that were pledged to others as collateral is provided in Note 8.

• C. In the fourth quarter of 2018, the Group had signed individual credit contracts with E. Sun Commercial Bank, Land Bank of Taiwan and Hua Nan Commercial Bank for long-term operating use. The contract period is five years, and the loan facilities are $2,000,000, $1,000,000 and $1,000,000, respectively. For the loan facility mentioned above, the Group had pledged partial floors of the headquarters building. For the information on pledged assets, please refer to Note 8.

• D. A long-term syndicated loan for five years was signed by CP with Taiwan Cooperative Bank as the lead bank in October 2015. It is to be used for the operations. The loan has expired as of January 2021.

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The main contents of the contract are as follows:

• (a) CP’s annual consolidated financial statements should maintain financial ratios as follows:

• i. Current ratio is above 100%,

• ii. Financial liabilities divided by net tangible assets after subtracting cash and cash equivalents is under 250%,

• iii. Time interest earned is above 300%, and

• iv. Net tangible assets are above $4,000,000.

• The above financial ratios are based on the annual financial statements. If the Company does not conform to the contract, the Company should increase capital by cash or by other means. From the next day of the managing bank’s notification until the next interest payment date after the Company conforms to the contract, the lending rates will be increase by 0.125% of the used but unsettled amount of this contract, and it will not be considered a breach of contract. If CP could not adjust the financial ratios by next inspection day (subjected to the consolidated financial statements audited by auditors), the borrower is considered to have violated the contract.

• (b) CP should maintain appropriate accounts receivable ratio, which means the total of qualified accounts receivable balance and the compensation accounts balance divided by the remainder of undrawn balance should be above 50%. The remainder of undrawn balance is CP’s expected drawdown amounts plus the remainder of undrawn amounts. If the ratio cannot be maintained appropriately, CP should choose any of the following actions to make the accounts receivable ratio comply with the contract within seven days after the managing bank’s notification:

• i. Provide other qualified accounts receivable which was certified by the managing bank, or,

• ii. Repay the loan before maturity, or,

• iii. Repay or deposit in compensation accounts to maintain appropriate accounts receivable ratio above (or equal to) 50%.

• (c) As part of the contract, the commitment fee should be calculated every three months, which begins six months after CP drawdowns the credit for the first time. During the commitment fee calculation period, if the average drawdown amounts are less than 60% of the total loan facility, the commitment fee should be calculated quarterly, using the difference of actual drawdown amounts and 50% of the total loan facility, multiplied by 0.1%, the annual fee rate, and then pay the managing bank every three months.

(17) Pensions

• A. Defined benefit plans: Employee contributions

• (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45

~56~

units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contribution to cover the deficit by next March.

• (b) The amounts recognised in the balance sheet are determined as follows:

	December	31, 2021	December	31, 2020
Present value of defined benefit obligations	($	394,052)	($	407,542)
Fair value of plan assets		192,348		190,503
Net defined benefit liability	($	201,704)	($	217,039)

• (c) Movements in net defined benefit liabilities are as follows:

	Present value of	Present value of
	defined benefit				Fair value of		Net defined
		obligations			planassets	benefitliability
Year ended December 31, 2021
Balance at January 1	($	407,542)		$	190,503	($	217,039)
Current service cost	(	1,476)			-	(	1,476)
Interest (expense) income	(	1,642)			784	(	858)
	(	410,660)			191,287	(	219,373)
Remeasurements:
Return on plan assets (excluding
amounts included in interest
income or expense)		-			2,593		2,593
Change in demographic
assumptions	(	8,222)			-	(	8,222)
Change in financial assumptions		7,232			-		7,232
Experience adjustments		7,815			-		7,815
		6,825			2,593		9,418
Pension fund contribution		-			8,251		8,251
Paid pension		9,783	(		9,783)		-
Balance at December 31	($	394,052)		$	192,348	($	201,704)

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Present value of
defined benefit Fair value of Net defined
obligations plan assets benefit liability
Year ended December 31, 2020
Balance at January 1 ($ 398,989) $ 176,945 ($ 222,044)
Current service cost ( 2,065) - ( 2,065)
Interest (expense) income ( 2,983) 1,353 ( 1,630)
( 404,037) 178,298 ( 225,739)
Remeasurements:
Return on plan assets (excluding
amounts included in interest
-
income or expense) 6,206 6,206
Change in demographic
-
assumptions ( 1,199) ( 1,199)
-
Change in financial assumptions ( 12,130) ( 12,130)
-
Experience adjustments 6,488 6,488
( 6,841) 6,206 ( 635)
Pension fund contribution - 9,242 9,242
Paid pension 3,336 ( 3,243) 93
Balance at December 31 ($ 407,542) $ 190,503 ($ 217,039)
----- End of picture text -----

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and domestic subsidiaries’ defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company and domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and domestic subsidiaries are unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets As of December 31, 2021 and 2020 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

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(e) The principal actuarial assumptions used were as follows:

	Years ended	December31,
	2021	2020
Discount rate	0.625%~0.700%	0.300%~0.500%
Future salary increases	2.500%~3.000%	2.500%~3.000%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

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

Discount rate Future salary increases
Increase Decrease Increase Decrease
0.25% 0.25% 0.25% 0.25%
December 31, 2021
Effect on present value of
defined benefit obligation ($ 8,150) $ 8,434 $ 8,112 ($ 7,811)
December 31, 2020
Effect on present value of
defined benefit obligation ($ 8,979) $ 9,303 $ 8,930 ($ 8,667)
----- End of picture text -----

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The method and assumptions used for the preparation of sensitivity analysis during 2021 and 2020 are the same.

• (f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2022 amount to $17,080.

• (g) As of December 31, 2021, the weighted average duration of the retirement plan is 7.9~9.8 years. The analysis of timing of the future pension payment was as follows:

Within 1 year 1-2 year(s) 2-5 years Over 5 years	28,203 $ 16,052 122,312 91,987
	258,554 $

• B. Defined contribution plans

(a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’

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monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

• (b) The overseas subsidiaries of the Company have defined contribution plans.

• (c) The Company’s mainland China subsidiaries have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. Other than the monthly contributions, the Group has no further obligations.

• (d) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2021 and 2020 were $959,208 and $665,606, respectively.

(18) Share-based payment

• A. For the years ended December 31, 2021 and 2020, CP’s and XAVi’s share-based payment arrangements were as follows:

Type of arrangement Treasury stock transferred to employees Treasury stock transferred to employees 1st employee stock options	Grant date March 3, 2021 March 2, 2020 August 31, 2021	Quantity granted 916 thousand shares 948 thousand shares 894 thousand shares	Contract Vesting period conditions - Vested immediately - 〃 4 years 2 years’ service	Vesting conditions

• B. (a) Details of CP’s treasury stock transferred to employees are as follows:

Details of CP’s treasury stock transferred to employees are as follows:	as follows:
Weighted-average No. of exercise price No. of options (indollars) options Options outstanding at January 1 - - $ - Options granted 916 40.51 948 Options exercised 916) ( 40.51 948) ( Options outstanding at December 31 - - - Options exercisable at December 31 - - - 2021		2020
		Weighted-average exercise price (indollars)
		- $ 40.72 40.72 - -

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(b) Details of XAVi’s 1st employee stock options are as follows:

Options outstanding at January 1 Options granted Options outstanding at December 31 Options exercisable at December 31	2021	2021
	No. of options - 894 894 -	Weighted-average exercise price (indollars)
		- $ 15.00 15.00 -

• C. (a) For the years ended December 31, 2021 and 2020, the weighted average stock prices of options on the exercise date were NT$79.08 and NT$55.55 (in dollars), respectively.

• (b) For the year ended December 31, 2021, XAVi’s exercise prices of stock options outstanding was $15 (in dollars) and the weighted-average remaining contractual period was 3.25 years.

• D. (a) CP’s and XAVi’s fair value of stock options granted on grant date is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Type of arrangement Treasury stock transferred to employees 1st employee stock options 〃	August 31, 2021 Grant date March 2, 2020 March 3, 2021	Stock price 59.50 $79.00 42.15	Exercise price 40.72 $40.51 15.00	Expected Expected Risk-free Fair price option Expected interest value volatility life dividends rate per unit 〃 27.34% (Note) 28.07% (Note) 15 days - 0.14% $38.49 0.45% 18.79 - - 0.27% 4.3229 34.49% (Note) 3.25 years

• Note: Expected price volatility rate is estimated based on the average annualised standard deviation by using the daily rates of returns from the grant date back to 6 months ago as the hypothesised value.

• E. Expenses incurred on share-based payment transactions are shown below:

Equity-settled	Years ended December 31,	Years ended December 31,
	2021 35,796 $	2020
		17,813 $

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(19) Share capital

• A. As of December 31, 2021, the Company’s authorised capital was $8,000,000, and the paid-in capital was $7,452,927 with a par value of $10 (in dollars) per share, and the outstanding common stock was 800 million shares.

• Movements in the number of the Company’s ordinary shares outstanding are as follows (shares in thousands):

in thousands):
	2021	2020
At January 1	702,098	697,135
Employee share compensation	5,832	4,963
At December 31	707,930	702,098

• B. On March 10, 2021, the Company’s Board of Directors approved the employees’ stock bonus amounting to $550,000 at the previous closing price of $94.3 (in dollars) before the day of the Board of Directors’ meeting, issuing 5,832 thousand shares. The Company has obtained a letter of approval from the appropriate authorities. The issue date was set on April 8, 2021, and the Company had completed the related registration on April 23, 2021.

• C. On March 10, 2020, the Company’s Board of Directors approved the employees’ stock bonus amounting to $400,000 at the previous closing price of $80.6 (in dollars) before the day of the Board of Directors’ meeting, issuing 4,963 thousand shares. The Company has obtained a letter of approval from the appropriate authorities. The issue date was set on April 8, 2020, and the Company had completed the related registration on April 21, 2020.

• D. Treasury stock

• (a) Reason for stocks reacquisition and movements in the number of the Company’s treasury stocks are as follows:

stocks are as follows:
Name of company holding the shares UNIKEY HEC Name of company holding the shares UNIKEY HEC	Reason for reacquisition For investment For investment Reason for reacquisition For investment For investment	December31,2021
		Number of Fair value shares (in Carrying (in dollars) thousands) amount (pershare) 21,174 205,795 $ 82.30 $ 16,189 105,482 82.30 37,363 311,277 $ December31,2020		Fair value (in dollars) (pershare)
		Number of shares (in thousands) 21,174 16,189 37,363	Carrying amount 205,795 $ 105,482 311,277 $	Fair value (in dollars) (pershare)
				86.20 $ 86.20

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• (b) Pursuant to the R.O.C. Securities and Exchange Law, the number of stocks bought back as treasury stock should not exceed 10% of the number of the Company’s issued and outstanding stocks and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.

• (c) Pursuant to the R.O.C. Securities and Exchange Law, treasury stocks should not be pledged as collateral and is not entitled to dividends before it is reissued.

• (d) Pursuant to the R.O.C. Securities and Exchange Law, treasury stocks should be reissued to the employees within three years from the reacquisition date and shares not reissued within the three-year period are to be retired. Treasury shares to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition.

(20) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks 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. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

A summary of the Company’s capital surplus as of December 31, 2021 and 2020 is as follows:

Share premium Treasury share transactions Difference between consideration and carrying amount of subsidiaries acquired or disposed Changes in ownership interests in subsidiaries Others	December31,2021 4,369,558 $ 2,015,775 - 795,961 1,171 7,182,465 $	December31,2020
		3,877,882 $ 1,810,278 43,876 679,328 1,171
		6,412,535 $

(21) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses, if any; and then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the total capital stock balance and as special reserve in accordance to relevant regulations when necessary; and the remainder, if any, to be appropriated shall be presented by the Board of Directors and resolved by the stockholders at the stockholders’ meeting. Since June 5, 2019, the Board of Directors can distribute all or part of the distributable dividends and bonus, legal reserve and capital surplus in the form of cash as resolved by a majority vote at their meeting attended by two-thirds of the total number of directors and report to the shareholders which the aforementioned regulation of requiring resolution from the shareholders is not applicable.

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• B. The Company’s dividend policy is summarised below: the Company is in the development stage of the electronics industry. The dividend policy should be formulated by considering the capital requirements of the new products and promoting the return on equity simultaneously. Therefore, the total amounts of stockholders’ dividends should not exceed 90% of the total distributable earnings, and then the cash dividends should not be less than 10% of the total amounts of stockholders’ dividends. The above restrictions will not be applicable if the total amount of stockholders’ dividends is less than $0.5 (in dollars) per share.

• C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• D. (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• (b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently.

• E. The appropriations of 2020 and 2019 earnings had been resolved at the shareholders’ meeting on March 10, 2021 and June 10, 2020, respectively, and the details are summarised below:

Legal reserve Special reserve Cash dividends	Years endedDecember31,	Years endedDecember31,	Years endedDecember31,
	Dividends per share Amount (indollars) 542,708 $ 961,745 4,099,110 5.50 $ 2020	2019
	Amount 542,708 $ 961,745 4,099,110	Amount 583,882 $ 185,424 4,362,815	Dividends per share (indollars)
			5.90 $

The appropriations of 2020 earnings, aside from the cash dividends which had been resolved by the Board of Directors and shall only be reported to the shareholders, had been resolved after meeting the statutory voting threshold on June 11, 2021 via the electronic voting platform for shareholders’ meeting and had been resolved at the shareholders’ meeting on August 27, 2021.

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• F. Subsequent events: The appropriations of 2021 earnings had been proposed at the Board of Directors’ meeting on March 9, 2022, and the details are summarised below:

Directors’ meeting on March 9, 2022,	and the details are summarised below:	and the details are summarised below:	and the details are summarised below:
	Year ended December 31, 2020
			Dividends
			per share
	Amount		(in dollars)
Legal reserve	591,255 $
Special reserve	13,076
Cash dividends	4,586,263	$	6.10

The appropriations of 2021 earnings, aside from the cash dividends which had been resolved by the Board of Directors and shall only be reported to the shareholders, have not yet been resolved by the shareholders as of March 9, 2022.

(22) Other equity interest

Other equity interest
Currency Unrealised gains (losses) on Revaluation translation valuation increment Total At January 1 2,802,749) ($ 2,815,388) ($ 1,376,923 $ 4,241,214) ($ Revaluation -Group - 389,345 - 389,345 -Transfer - 8,218 - 8,218 Currency translation differences: -Group 356,285) ( - - 356,285) ( -Associates 131) ( - - 131) ( Revaluation increment -Transfer - - 401) ( 401) ( At December 31 3,159,165) ($ 2,417,825) ($ 1,376,522 $ 4,200,468) ($ 2021	2021
		Total

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2020

					Unrealised
		Currency		gains (losses)				Revaluation
		translation			onvaluation			increment		Total
At January 1	($	2,115,391)	($		2,597,937)		$	1,381,667	($	3,331,661)
Revaluation
-Group		-	(		261,583)			-	(	261,583)
-Transfer		-			44,132			-		44,132
Currency translation
differences:
-Group	(	685,280)			-			-	(	685,280)
-Associates	(	2,078)			-			-	(	2,078)
Revaluation increment
-Transfer		-			-	(		4,744)	(	4,744)
At December 31	($	2,802,749)	($		2,815,388)		$	1,376,923	($	4,241,214)

(23) Operating revenue A. Disaggregation of revenue from contracts with customers

Year ended December 31, 2021 Revenue from contracts with customers Electronic component products Consumer electronic products Others Year ended December 31, 2020 Revenue from contracts with customers Electronic component products Consumer electronic products Others	Taiwan 38,303,745 $ 41,256,580 588,840 80,149,165 $ Taiwan 32,275,278 $ 34,091,113 318,991 66,685,382 $	Asia 22,179,381 $ 2,714,149 377,395 25,270,925 $ Asia 20,371,854 $ 5,664,597 217,747 26,254,198 $	America 842,805 $ 772,828 36,048 1,651,681 $ America 682,132 $ 929,456 101 1,611,689 $	Europe 224 $ 400,300 1,784 402,308 $ Europe 351 $ 529,480 1,127 530,958 $	Total
					61,326,155 $ 45,143,857 1,004,067
					107,474,079 $
					Total
					53,329,615 $ 41,214,646 537,966
					95,082,227 $

B. Contract liabilities

The Group has recognised the following revenue-related contract liabilities:

Contract liabilities	December31,2021 271,893 $	December31,2020 185,731 $	January1,2020
			147,815 $

C. Contract liability balance at the beginning of 2021 and 2020 was all included in the operating revenue.

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(24) Interest income

Interest income
Interest income from bank deposits Interest income from financial assets measured at amortised cost	2021 2020 57,212 $ 57,081 $ 40,435 85,279 97,647 $ 142,360 $ Years ended December31,
		142,360 $

	Interest income from bank deposits Interest income from financial assets measured at amortised cost	2021 2020 57,212 $ 57,081 $ 40,435 85,279 97,647 $ 142,360 $	2021 2020 57,212 $ 57,081 $ 40,435 85,279 97,647 $ 142,360 $
(25)	Other income Rental revenue Dividend income Others Accounts payable past due two years transferred to other income	2021 2020 71,611 $ 66,461 $ 117,568 243,213 476,945 439,054 211,538 - 877,662 $ 748,728 $ Years endedDecember31,
			66,461 $ 243,213 439,054 -
			748,728 $

(26) Other gains and losses

Other gains and losses
			Years ended	December31,
			2021			2020
Net gain on financial assets and liabilities		$	913,249		$	325,691
at fair value through profit or loss - derivative
instruments
Net loss on financial assets and liabilities
at fair value through profit or loss - others	(		23,326)	(		578,743)
Net currency exchange loss	(		602,993)	(		187,811)
Loss on disposal of property, plant and equipment	(		115,420)	(		34,439)
Gain on disposal of investment property			51,933			222,225
Impairment on non-financial assets	(		33,000)	(		54,819)
Gain on fair value adjustment of investment
property			11,800			51,943
Other gains and losses	(		305,424)	(		925)
	($		103,181)	($		256,878)

(27)	Finance costs Interest expense: Bank borrowings Lease liability	Years ended December31,	Years ended December31,
		2021 40,208 $ 19,463 59,671 $	2020
			44,033 $ 23,610
			67,643 $

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(28) Expenses by nature

Expenses by nature
Employee benefit expense Depreciation Amortisation on intangible assets Other assets transferred to expense Employee benefit expense Depreciation Amortisation on intangible assets Other assets transferred to expense	Year ended December31,2021
	Cost of revenue Operatingexpense Total 10,393,324 $ 5,215,211 $ 15,608,535 $ 2,393,354 486,625 2,879,979 7,264 72,511 79,775 18,645 9,040 27,685 Year ended December31,2020		Total
	Cost of revenue 8,814,173 $ 2,065,997 3,641 29,822	Operating expense 5,241,583 $ 371,437 69,392 31,206	Total
			14,055,756 $ 2,437,434 73,033 61,028

(29) Employee benefit expense

Employee benefit expense
Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses	YearendedDecember31,2021
	Cost of revenue Operating expense Total 8,461,461 $ 4,630,497 $ 13,091,958 $ 105,136 211,605 316,741 770,138 191,405 961,543 1,056,589 181,704 1,238,293 10,393,324 $ 5,215,211 $ 15,608,535 $ YearendedDecember31,2020		Total
			13,091,958 $ 316,741 961,543 1,238,293
			15,608,535 $
	Cost of revenue 7,587,102 $ 78,101 507,822 642,996 8,816,021 $	Operating expense 4,715,987 $ 191,368 161,479 172,881 5,241,715 $	Total
			12,303,089 $ 269,469 669,301 815,877
			14,057,736 $

• A. According to the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees' compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 11% for employees’ compensation and shall not be higher than 1% for directors’ remuneration.

• B. For the years ended December 31, 2021 and 2020, employees’ compensation was accrued at $934,885 and $847,551, respectively; directors’ remuneration was accrued at $58,082 and $52,656, respectively. The aforementioned amounts were recognised in salary expenses.

The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 11.79% and 0.73% of distributable profit of current year for the year ended December 31, 2021, respectively. The employees’ compensation and directors’ remuneration resolved by the Board of Directors were $934,885 and $58,082, respectively, and the employees’

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compensation will be distributed in the form of shares.

• C. Employees’ compensation of $847,551 and directors’ remuneration of $52,656 for 2020 as resolved at the meeting of Board of Directors were in agreement with those amounts recognised in the 2020 financial statements. For the year ended December 31, 2020, 5,832 thousand shares of stock were issued as employee compensation, and the number of shares were calculated based on the closing price of $ 94.3 (in dollars) on the day before the Board of Directors’ meeting.

Information about employees’ compensation and directors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(30) Income tax

• A. Income tax expense

Components of income tax expense:

come tax Income tax expense Components of income tax expense:
			Years ended	December31,
			2021			2020
Current tax:
Current tax on profits for the year		$	2,069,957		$	1,870,325
Tax on undistributed earnings			20,106			15,161
Prior year income tax over estimation	(		109,529)	(		84,017)
Total current tax			1,980,534			1,801,469
Deferred tax:
Origination and reversal of temporary
differences	(		101,209)	(		151,050)
Total deferred tax	(		101,209)	(		151,050)
Income tax expense		$	1,879,325		$	1,650,419
Reconciliation between income tax expense and	accounting profit
			Years ended	December31,
			2021			2020
Tax calculated based on profit before tax and		$	2,667,010		$	1,812,368
statutory tax rate (Note)
Effect from items adjusted in accordance
with tax regulation	(		603,555)	(		8,093)
Effect from investment tax credits	(		94,707)	(		85,000)
Prior year income tax overestimation	(		109,529)	(		84,017)
Undistributed earnings			20,106			15,161
Income tax expense		$	1,879,325		$	1,650,419

• B. Reconciliation between income tax expense and accounting profit

Note: The basis for computing the applicable tax rate are the rates applicable in the respective countries where the Group entities operate.

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C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

							2021	2021
								Recognised in
					Recognised in		other comprehensive
			January1		profit or loss			income		December31
Temporary differences:
-Deferred tax assets:
Unrealised exchange loss		$	18,480	($		14,197)	$		-		$	4,283
Provision for inventory price			63,394	(		6,156)			-			57,238
decline
Allowance for doubtful			471			-			-			471
accounts in excess of tax limit
Unrealised accrued expenses			74,885			32,844			-			107,729
Unrealised government grants			42,949			350			-			43,299
Others			32,092	(		21,183)			-			10,909
		$	232,271	($		8,342)	$		-		$	223,929
Temporary differences:
-Deferred tax liabilities:
Fair value adjustment of	($		233,752)		$	43,673	$	5,406		($		184,673)
investment property
Unrealised exchange gain	(		156,144)			52,121			-	(		104,023)
Unrealised financial asset
evaluation gain	(		41,325)			14,165			-	(		27,160)
Gain on long-term equity
investment	(		253)			-			-	(		253)
Temporary differences of
fixed assets for tax and
financial purposes	(		1,979)			41			-	(		1,938)
Unrealised pension
contribution	(		436)			99			-	(		337)
Others	(		78,326)	(		548)			-	(		78,874)
	($		512,215)		$	109,551	$	5,406		($		397,258)

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						2020
						Recognised in
			January1			profit or loss			December31
Temporary differences:
-Deferred tax assets:
Unrealised exchange loss		$	-		$	18,480		$	18,480
Provision for inventory price			41,993			21,401			63,394
decline
Allowance for doubtful			-			471			471
accounts in excess of tax limit
Unrealised accrued expenses			52,439			22,446			74,885
Unrealised government grants			43,489	(		540)			42,949
Others			14,418			17,674			32,092
		$	152,339		$	79,932		$	232,271
Temporary differences:
-Deferred tax liabilities:
Fair value adjustment of	($		394,251)		$	160,499	($		233,752)
investment property
Unrealised exchange gain	(		97,096)	(		59,048)	(		156,144)
Unrealised financial asset
evaluation gain	(		11,452)	(		29,873)	(		41,325)
Gain on long-term equity
investment			-	(		253)	(		253)
Temporary differences of
fixed assets for tax and
financial purposes	(		2,138)			159	(		1,979)
Unrealised pension
contribution			-	(		436)	(		436)
Others	(		78,396)			70	(		78,326)
	($		583,333)		$	71,118	($		512,215)

• D. As of December 31, 2021 and 2020, the amounts of deductible temporary differences that were not recognised as deferred tax assets are as follows:

Deductible temporary differences	December31,2021 999,187 $	December31,2020
		1,012,295 $

• E. The Company’s income tax returns through 2019 have been assessed and approved by the Tax Authority.

• F. According to the Preferential Tax Policy Issues concerning Further Implementation of the Development of Western China regulated by the “Law of the People’s Republic of China on Enterprise Income Tax” and the State Taxation Administration, Ministry of Finance, industrial items that CEM5 and CPCQ set in the western region as specified in the “Catalogue of encouraging industries in Western China” were supervisory business. The enterprises whose main business income accounted for more than 70% of the total enterprise income in the current year are entitled to a 10% tax exemption before and in 2020 and extend the Preferential Tax

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Policy Issues concerning the Development of Western China after applying and obtaining approval from the competent tax authority. The enterprises whose main business income accounted for more than 60% of the total enterprise income in the current year are also entitled to a 10% of tax exemption from 2021 to 2030 after applying and obtaining approval from the competent tax authority. The tax rate is 15%.

(31) Earnings per share

)Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Assumed conversion of all dilutive potential ordinary shares Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Amount aftertax 6,154,426 $ - 6,154,426 $ Year	Weighted average number of ordinary Earnings per shares outstanding share (sharesinthousands) (in dollars) 706,843 8.71 $ 12,446 719,289 8.56 $ ended December31,2021
			8.71 $
			8.56 $

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Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Assumed conversion of all dilutive potential ordinary shares Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Amount aftertax 5,466,764 $ - 5,466,764 $ Year	Weighted average number of ordinary Earnings per shares outstanding share (sharesinthousands) (indollars) 701,161 7.80 $ 10,767 711,928 7.68 $ ended December31,2020

(32) Transactions with non-controlling interest

• A. Acquisition of additional equity interest in a subsidiary

(a) For the year ended December 31, 2021, the Group acquired an additional 1.02% of shares of its subsidiary-CP for a total cash consideration of $440,572. The carrying amount of noncontrolling interest in CP was $4,726,103 at the acquisition date. This transaction resulted in a decrease in the non-controlling interest by $148,134 and a decrease in the equity attributable to owners of the parent by $292,438. For the year ended December 31, 2020, the Group acquired an additional 2.41% of shares of its subsidiary-CP for a total cash consideration of $635,120. The carrying amount of non-controlling interest in CP was $4,515,654 at the acquisition date. This transaction resulted in a decrease in the noncontrolling interest by $256,841 and a decrease in the equity attributable to owners of the parent by $378,279. The effect of changes in interests in CP on the equity attributable to owners of the parent for the years ended December 31, 2021 and 2020 is shown below:

Carrying amount of non-controlling interest acquired Consideration paid to non-controlling interest Capital surplus - difference between proceeds on actual acquisition of or disposal of equity interest in a subsidiary and its carrying amount	2021 2020 148,134 $ 256,841 $ 440,572) ( 635,120) ( 292,438) ($ 378,279) ($ Years endedDecember31,	2021 2020 148,134 $ 256,841 $ 440,572) ( 635,120) ( 292,438) ($ 378,279) ($ Years endedDecember31,
	292,438) ($	378,279) ($

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• (b) For the year ended December 31, 2021, the Group acquired an additional 0.19% of shares of its subsidiary-XAVi for a total cash consideration of $1,615. The carrying amount of noncontrolling interest in XAVi was $482,775 at the acquisition date. This transaction resulted in a decrease in the non-controlling interest by $1,672 and an increase in the equity attributable to owners of the parent by $57. For the year ended December 31, 2020, the Group acquired an additional 0.69% of shares of its subsidiary-XAVi for a total cash consideration of $6,949. The carrying amount of non-controlling interest in XAVi was $587,098 at the acquisition date. This transaction resulted in a decrease in the non-controlling interest by $7,116 and an increase in the equity attributable to owners of the parent by $167.The effect of changes in interests in XAVi on the equity attributable to owners of the parent for the years ended December 31, 2021 and 2020 is shown below:

f $6,949. The carrying amount of non-controlling interest in XAVi was $587,098 at the cquisition date. This transaction resulted in a decrease in the non-controlling interest by 7,116 and an increase in the equity attributable to owners of the parent by $167.The effect f changes in interests in XAVi on the equity attributable to owners of the parent for the years nded December 31, 2021 and 2020 is shown below:	f $6,949. The carrying amount of non-controlling interest in XAVi was $587,098 at the cquisition date. This transaction resulted in a decrease in the non-controlling interest by 7,116 and an increase in the equity attributable to owners of the parent by $167.The effect f changes in interests in XAVi on the equity attributable to owners of the parent for the years nded December 31, 2021 and 2020 is shown below:	f $6,949. The carrying amount of non-controlling interest in XAVi was $587,098 at the cquisition date. This transaction resulted in a decrease in the non-controlling interest by 7,116 and an increase in the equity attributable to owners of the parent by $167.The effect f changes in interests in XAVi on the equity attributable to owners of the parent for the years nded December 31, 2021 and 2020 is shown below:	f $6,949. The carrying amount of non-controlling interest in XAVi was $587,098 at the cquisition date. This transaction resulted in a decrease in the non-controlling interest by 7,116 and an increase in the equity attributable to owners of the parent by $167.The effect f changes in interests in XAVi on the equity attributable to owners of the parent for the years nded December 31, 2021 and 2020 is shown below:
2021 2020 Carrying amount of non-controlling interest acquired 1,672 $ 7,116 $ Consideration paid to non-controlling interest 1,615) ( 6,949) ( Capital surplus - difference between proceeds on actual acquisition of or disposal of equity interest in a subsidiary and its carrying amount 57 $ 167 $ Years ended December 31,
	$	57	167 $

• (b) For the year ended December 31, 2021, CP acquired an additional 16.32% of shares of its subsidiary, WTS, for a total cash consideration of $29,199. The carrying amount of noncontrolling interest in WTS was $17,514 at the acquisition date. This transaction resulted in a decrease in the non-controlling interest by $5,490 and a decrease in the equity attributable to owners of the parent by $6,195. For the year ended December 31, 2020, CP acquired an additional 5.551% of shares of its subsidiary, WTS, for a total cash consideration of $7,955. The carrying amount of non-controlling interest in WTS at the acquisition date was the same as the total consideration paid. This transaction resulted in a decrease in the non-controlling interest by $7,955 but there was no change in the equity attributable to owners of the parent. The effect of changes in interests in WTS on the equity attributable to owners of the parent for the years ended December 31, 2021 and 2020 is shown below:

			Years ended	December31,
			2021	2020
Carrying amount of non-controlling interest acquired		$	17,514	$	7,955
Consideration paid to non-controlling interest	(		29,199)	(	7,955)
Decrease in non-controlling interest			5,490		-
Capital surplus
- difference between proceeds on actual
acquisition of or disposal of equity interest in
a subsidiary and its carrying amount	($		6,195)	$	-

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• B. Disposal of equity interest in a subsidiary (that did not result in a loss of control)

• (a) For the year ended December 31, 2021, the Group disposed of 1.48% of shares of its subsidiary-XAVi for a total cash consideration of $23,528. The carrying amount of noncontrolling interest in 23,528 was $449,921 at the disposal date. This transaction resulted in an increase in the non-controlling interest by $11,532 and an increase in the equity attributable to owners of the parent by $11,050. The effect of changes in interests in XAVi on the equity attributable to owners of the parent for the year ended December 31, 2021 is shown below:

Carrying amount of non-controlling interest disposed Consideration received from non-controlling interest Other equity (such as translation differences) Capital surplus - recognition of changes in ownership interest in subsidiaries		Yearended
	December 31, 2021 11,532) ($ 23,528 946) ( 11,050 $

• (b)XAVi decreased its capital on November 10, 2020 in the amount of $298,057, of which included $138,979 pertains to proceeds for shares returned to the parent company and $159,078 pertains to proceeds for shares returned to the non-controlling interest. This transaction did not affect the shareholding ratio. The effect on the equity attributable to owners of the parent for the year ended December 31, 2020 is shown below:

		Year ended
	December 31, 2020
Carrying amount decreased because of capital reduction	($	138,984)
Proceeds from capital reduction		138,979
Capital surplus
- recognition of changes in ownership interest in subsidiaries	($	5)

• C. Changes in ownership interest in subsidiaries

• (a) The subsidiary-CP, distributed employee share compensation and transferred treasury stock to employees for the year ended December 31, 2021. This transaction resulted in an increase in the non-controlling interest by $221,442 and an increase in the equity attributable to owners of the parent by $116,390 which totally increased shareholders’ equity by $337,832 (shown as ‘capital surplus - recognition of changes in ownership interest in subsidiaries’).

• (b) The subsidiary-XAVi, distributed employee stock options for the year ended December 31, 2021. This transaction resulted in an increase in the non-controlling interest by $296 and an increase in the equity attributable to owners of the parent by $243 which totally increased shareholders’ equity by $539 (shown as ‘capital surplus - recognition of changes in ownership interest in subsidiaries’).

• (c) The subsidiary-CP, distributed employee share compensation and transferred treasury stock to employees for the year ended December 31, 2020. This transaction resulted in an increase in the non-controlling interest by $218,502 and an increase in the equity attributable to owners of the parent by $105,832 which totally increased shareholders’ equity by $324,334 (shown as ‘capital surplus - recognition of changes in ownership interest in subsidiaries’)..

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(33) Supplemental cash flow information

Investing activities with partial cash payments

Supplemental cash flow information Investing activities with partial cash payments
			Years ended	December 31,
			2021			2020
Purchase of property, plant and equipment		$	3,097,353		$	3,522,651
Add: Opening balance of payable on equipment			583,741			468,052
Less: Ending balance of payable on equipment	(		467,808)	(		583,741)
Cash paid during the year		$	3,213,286		$	3,406,962

(34) Changes in liabilities from financing activities

2021

			2021
At January 1 Changes in cash flow from financing activities Impact of changes in foreign exchange rate Changes in other non-cash items At December 31 At January 1 Changes in cash flow from financing activities Impact of changes in foreign exchange rate Changes in other non-cash items At December 31		Short-term borrowings	Long-term borrowings (Note) Leaseliability Total 100,000 $ 475,238 $ 663,406 $ 100,000) ( 145,391) ( 1,290,763 - 9,089) ( 9,056) ( - 91,275 91,275 - $ 412,033 $ 2,036,388 $ Long-term borrowings (Note) Leaseliability Total 100,000 $ 482,769 $ 1,477,769 $ - 130,178) ( 937,010) ( - 6,445) ( 6,445) ( - 129,092 129,092 100,000 $ 475,238 $ 663,406 $ 2020
		88,168 $ 1,536,154 33 - 1,624,355 $
		Short-term borrowings
	895,000 $ 806,832) ( - - 88,168 $

Note: Including current portion

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7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties Relationship with the Company Newmax Technology Co., Ltd. Other related party Clevo Co. Other related party Hongwell Other related party Chicony Square Other related party Kapok Computer (Kunshan) Co., Ltd. Other related party Buynow Group (includinig Loyang, Anshan, Quanzhou, Other related party Zhengzhou, etc) Hon Hui Co., Ltd. (including Shanghai, New Taipei, Other related party Ruiguang, etc) Far Win (Kunshan) Co., Ltd. Other related party Far Win (Dong guan) Co., Ltd. Other related party ShunOn Electronic Co. Other related party Jiaxing Chunxiang Electronic Technology Co., Ltd. Other related party Chongqing Chunxiang Electronic Technology Co., Ltd. Other related party Jim Yu Plastic Electronic (Wujiang) Co., Ltd. Other related party Cheung Shun (Wujiang) Plastic Processing Technology Co., Ltd. Other related party Key management personnel Other related party

(2) Significant related party transactions

A. Operating revenue:

Operating revenue:
Sales of goods: Other related parties	Years ended December 31,
	2021 2020 1,061,795 $ 934,711 $

The terms of the sales to related parties were the same as those to third parties.

• B. Purchases:

The terms of the sales to related parties were the Purchases:	same as those to third parties.	same as those to third parties.
Purchases of goods: Other related parties	Years endedDecember31,
	2021 2,455,376 $	2020
		2,037,162 $

The terms of the purchases from related parties were the same as those to third parties.

C. Receivables from related parties:

Receivables from related parties:
Accounts receivable: Other related parties	December 31, 2021 352,102 $	December31,2020
		253,227 $

The receivables from related parties arise mainly from sale transactions. The receivables are unsecured in nature and bear no interest. There was no allowance for doubtful accounts pertaining to accounts receivable from related parties.

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D. Payables to related parties:

Payables to related parties:
	December31,2021	December31,2020
Accounts payable:
Other related parties	475,434 $	485,964 $

The payables from related parties arise mainly from purchase transactions. The payables are unsecured in nature and bear no interest.

• E. Lease transactions – lessor:

• (a) As of December 31, 2021, the main lease contracts between the Group and related parties are as follows:

Lessee Leased object Lease payment Lease term Other related parties Buildings and structures $ 213/ month Within a year

• (b) The Group’s rental income during the year derived from leasing offices to related parties is as follows:

Years ended December 31, 2021 2020 Other related parties $ 2,573 $ 854 F. Dividend income: Years ended December 31, 2021 2020 Other related parties $ 37,774 $ 26,070

• G. Disposal of investment property:

No such transaction for the year ended December 31, 2021.

Disposal of investment property: No such transaction for the year ended December Other related parties	31, 2021. 2021 2020 37,774 $ 26,070 $ Years endedDecember31,	31, 2021. 2021 2020 37,774 $ 26,070 $ Years endedDecember31,
Key management personnel	Disposal proceeds (before tax) Gain on disposal 61,512 $ 8,041 $ YearendedDecember31,2020
		8,041 $

(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Termination benefits Share-based payments	Years ended December31,
	2021 225,275 $ 2,005 126,138 353,418 $	2020
		207,407 $ 2,138 122,756
		332,301 $

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8. PLEDGED ASSETS

• (1) The Group’s assets pledged as collateral are as follows:

Pledged asset Bank deposits (shown as other current assets) Notes receivable Property, plant and equipment Investment property Refundable deposits (shown as other non-current assets) "

December31,2021 December31,2020 Purpose 11,978 $ - $ Guarantee for acceptance bill 89,076 38,168 Discounted bank financing 1,158,418 1,177,020 Long-term borrowings and short-term borrowings 3,132,591 3,132,753 Long-term borrowings and short-term borrowings 138,366 25,154 Performance guarantee and bid bond 71,729 62,624 Deposits and guarantee for plant and operating leases 4,602,158 $ 4,435,719 $ Bookvalue

December31,2021 11,978 $ 89,076 1,158,418 3,132,591 138,366 71,729 4,602,158 $

• (2) As of December 31, 2021 and 2020, UNIKEY has pledged the Company’s common stock (shown as “treasury stock”) amounting to 7,200,000 shares, as collateral for loans.

• (3) As of December 31, 2021 and 2020, HEC has pledged the Company’s common stock (shown as “treasury stock”) amounting to 12,600,000 shares, as collateral for loans.

• SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

• (1) As of December 31, 2021, for bank loans, financing forward exchange contracts, bill purchased and accounts receivable factoring purposes, the Group provided standby promissory notes totaling $27,382,840 as security.

• (2) The amounts of unpaid payment for construction in progress and acquisition of machinery and equipment are as follows:

==> picture [225 x 28] intentionally omitted <==

10. SIGNIFICANT DISASTER LOSS

None.

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11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

• (1) Please see Notes 6(21) and 6(29) for the details of appropriations of the 2021 earnings.

• (2) In order to meet the future business development needs, the subsidiary-CPTH engaged third parties to build a new plant on its own land in Chachoengsao province, Thailand. The total amount of the construction contract was THB 1,361,000 thousand (approximately NTD 1,147,000 thousand).

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as ‘equity’ as shown in the consolidated balance sheet plus net debt.

(2) Financial instruments

A. Financial instruments by category

Financial instruments by category
Financial assets Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income - designation of equity instrument Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable (including related parties) Other receivables Guarantee deposits paid	December31,2021 4,154,472 $ 3,263,039 1,725,636 445,025 163,196 28,866,242 241,537 210,095 39,069,242 $	December31,2020
		5,128,529 $ 3,037,693 3,751,351 454,030 155,605 23,558,162 283,945 87,778
		36,457,093 $

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==> picture [446 x 209] intentionally omitted <==

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

December 31, 2021 December 31, 2020
Financial assets
Financial liabilities at fair value through
profit or loss $ 59,354 $ 390,711
Financial liabilities at amortised cost
Short-term borrowings 1,624,355 88,168
Notes payable 22,686 21,392
Accounts payable (including related 27,554,027 25,625,243
parties)
Other accounts payable 14,106,451 12,817,050
Long-term borrowings (including current
-
portion) 100,000
Lease liability 412,033 475,237
$ 43,778,906 $ 39,517,801
----- End of picture text -----

• B. Financial risk management policies

• (a) 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. To minimise any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange contracts and foreign exchange swap contracts are used to hedge certain exchange rate risk. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

• (b) Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close cooperation 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, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

• (c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2).

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.

• ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable USD and RMB expenditures. Forward

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foreign exchange contracts are adopted to minimise the volatility of the exchange rate affecting cost of forecast inventory purchases.

• iii. The Group hedges exchange rate risk by foreign exchange rate and foreign exchange swap rate. However, the Group does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(2).

• iv. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: USD and RMB). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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Foreign currency amount (In thousands) Exchange rate (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 876,583 USD 27.6750 USD:RMB (Note) 1,110,401 USD 6.3709 USD:THB (Note) 70,711 USD 33.3755 Financial liabilities Monetary items USD:NTD 1,358,723 USD 27.6750 USD:RMB (Note) 624,577 USD 6.3709 USD:THB (Note) 218,221 USD 33.3755 Foreign currency amount (In thousands) Exchange rate (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 702,612 USD 28.2350 USD:RMB (Note) 1,025,879 USD 6.5249 USD:THB (Note) 43,694 USD 30.0371 Financial liabilities Monetary items USD:NTD 1,264,347 USD 28.2350 USD:RMB (Note) 624,545 USD 6.5249 USD:THB (Note) 124,796 USD 30.0371 December31,2021 December31,2020	December31,2021	December31,2021	Book value (NTD) 24,259,435 $ 30,730,348 1,956,927 37,603,932 $ 17,285,168 6,039,266 Book value (NTD) 19,968,602 $ 28,965,694 1,233,700 35,829,255 $ 17,634,028 3,523,615	Year ended December31,2021	Year ended December31,2021	Year ended December31,2021
				Sensitivityanalysis
				Degree of Effect on Effect on other comprehensive variation profit or loss income 1% 242,594 $ - $ 1% 307,303 - 1% 19,569 1% 376,039 $ - $ 1% 172,852 - 1% 60,393 - Year ended December31,2020		Effect on other comprehensive income
		Exchange rate 28.2350 6.5249 30.0371 28.2350 6.5249 30.0371		Sensitivityanalysis
				Degree of variation 1% 1% 1% 1% 1% 1%	Effect on profit or loss 199,686 $ 289,657 12,337 358,293 $ 176,340 35,236	Effect on other comprehensive income
						- $ - - $ - -

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• Note: The functional currencies of certain subsidiaries belonging to the Group are not NTD, thus, this information has to be considered when reporting. For example, when a subsidiary’s functional currency is RMB, the subsidiary’s segments that are involved with USD have to be taken into consideration.

Total exchange loss, including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2021 and 2020, amounted to $602,993 and $187,811, respectively.

Price risk

• i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

• ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic and foreign companies. The prices of fincial instruments would change due to the change of the future value of investee companies. If the prices of these financial instruments had increased/decreased by 1% with all other variables held constant, posttax profit for the years ended December 31, 2021 and 2020 would have increased/decreased by $38,819 and $43,731, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $32,630 and $30,377, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

The Group’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. During the years ended December 31, 2021 and 2020, the Group’s borrowings at variable rate were denominated in the NTD, USD and JPY. At December 31, 2021 and 2020, if market interest rates had been 25bp higher with all other variables held constant, other comprehensive income for the years ended December 31, 2021 and 2020 would have been $0 and $250 lower, respectively.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortised cost and at fair value through profit or loss.

• ii. According to the Group’s internal management policy, the Group only trades with banks with good credit. According to the credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

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• iii. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• iv. The Group classifies customer’s accounts receivable, contract assets and rents receivable in accordance with customer types. The Group applies the simplified approach using a provision matrix, based on the loss rate methodology to estimate expected credit loss.

• v. According to the Group’s internal management policy, the default occurs when the contract payments are past due over 360 days.

• vi. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

• (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganisation due to their financial difficulties;

• (ii) The disappearance of an active market for that financial asset because of financial difficulties;

• (iii) Default or delinquency in interest or principal repayments;

• (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

• vii.The Group used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable (including related parties). On December 31, 2021 and 2020, the provision matrix is as follows:

December 31, 2021 Not past due 1-30 days past due 31-120 days past due 121-125 days past due Over 360 days past due December 31, 2020 Not past due 1-30 days past due 31-120 days past due 121-125 days past due Over 360 days past due	Expected lossrate 0.00%~0.07% 0.26%~2.32% 0.36%~6.39% 8.33%~84.94% 100% Expected lossrate 0%~0.6% 2%~18% 3%~30% 20%~30% 100%	Total book value 28,714,294 $ 138,458 33,237 45,245 74,484 29,005,718 $ Total book value 23,062,982 $ 321,327 162,567 46,337 144,292 23,737,505 $	Loss allowance
			21,228 $ 3,209 2,125 38,430 74,484
			139,476 $
			Loss allowance
			22,482 $ 2,535 1,297 8,737 144,292
			179,343 $

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• viii. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

			2021			2020
			Accounts			Accounts
			receivable			receivable
At January 1		$	179,343		$	176,777
Provision for impairment			41,710			4,681
Write-offs	(		78,849)			-
Effect of foreign exchange	(		2,728)	(		2,115)
At December 31		$	139,476		$	179,343

• ix. Movements in loss allowance for investments in debt instruments carried at amortised cost are as follows:

cost are as follows:
Financial assets at amortised cost Financial assets at amortised cost		December 31, 2021
	12 months 445,025 $ 12 months 454,030 $	Significant increase in Impairment creditrisk ofcredit Total - $ - $ 445,025 $ Significant increase in Impairment creditrisk ofcredit Total - $ - $ 454,030 $ December31,2020 Lifetime Lifetime
		Significant increase in creditrisk - $

The financial assets at amortised cost held by the Group were corporate bonds. As their expected loss rates were remote under the assessment, there was no loss allowance on December 31, 2021 and 2020.

• (c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable external regulatory or legal requirements.

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• ii. Group treasury invests surplus cash in interest bearing current accounts, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts. As at December 31, 2021 and 2020, the Group held money market position of $ 6,499,509 and $9,035,578, respectively, that are expected to readily generate cash inflows for managing liquidity risk.

iii.The Group has the following undrawn borrowing facilities:

	December31,2021	December31,2021	December 31, 2020	December 31, 2020
Expiring within one year	$	28,392,882	$	31,214,465
Expiring beyond one year		4,000,000		4,000,000
	$	32,392,882	$	35,214,465

• iv. The table below analyses the Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

December 31, 2021 Non-derivative financial liabilities Short-term borrowings Notes payable Accounts payable (including related parties) Other payables Lease liability Derivative financial liabilities: Financial liabilities at fair value through profit or loss December 31, 2020 Non-derivative financial liabilities Short-term borrowings Notes payable Accounts payable (including related parties) Other payables Lease liability Long-term borrowings (including current portion) Derivative financial liabilities: Financial liabilities at fair value through profit or loss	Less than 1year 1,625,018 $ 22,686 27,554,027 14,106,451 153,123 59,354 $ Less than 1year 88,327 $ 21,392 25,625,242 12,817,050 154,096 100,098 390,711 $	Over 1year
		- $ - - - 288,606 - $ Over 1year
		- $ - - - 363,247 - - $

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(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks (including emerging stocks), beneficiary certificates and convertible bonds, is included in Level 1.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in most derivative instruments is included in Level 2.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in certain stock instruments, beneficiary certificates and investment property is included in Level 3.

• B. The carrying amounts of cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables, short-term borrowings, accounts payable (including related parties) and other payables are approximate to their fair values.

• C. The related information on financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2021 and 2020 are as follows:

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(a) The related information on the nature of the assets and liabilities is as follows:

December 31, 2021 Assets Recurring fair value measurements Financial assets mandatorily measured at fair value through profit or loss - current Equity securities Debt securities Non-hedging derivatives Forward exchange contracts Exchange rate swaps Financial assets mandatorily measured at fair value through profit or loss - non-current Equity securities Beneficiary certificates Financial assets at fair value through other comprehensive income - current Equity securities Financial assets at fair value through other comprehensive income - non-current Equity securities Investment property (Note) Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss - current Non-hedging derivatives Forward exchange contracts	Level 1 1,882,565 $ 20,980 - - - 96,069 2,881,458 - - 4,881,072 $ Level 1 - $	Level 2 - $ - 246,225 5,402 - - - 34,494 - 286,121 $ Level 2 59,354 $	Level3 - $ - - - 902,414 1,000,817 - 347,087 3,771,591 6,021,909 $ Level3 - $	Total
				1,882,565 $ 20,980 246,225 5,402 902,414 1,096,886 2,881,458 381,581 3,771,591
				11,189,102 $
				Total
				59,354 $

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December 31, 2020 Assets Recurring fair value measurements Financial assets mandatorily measured at fair value through profit or loss - current Equity securities Debt securities Non-hedging derivatives Forward exchange contracts Exchange rate swaps Financial assets mandatorily measured at fair value through profit or loss - non-current Equity securities Beneficiary certificates Financial assets at fair value through other comprehensive income - current Equity securities Financial assets at fair value through other comprehensive income - non-current Equity securities Investment property (Note) Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss - current Non-hedging derivatives Forward exchange contracts Exchange rate swaps	Level 1 2,660,425 $ 22,898 - - - 36,180 2,612,532 - - 5,332,035 $ Level 1 - $ - - $	Level 2 - $ - 732,449 53 - - - 16,005 - 748,507 $ Level 2 387,581 $ 3,130 390,711 $	Level3 - $ - - - 763,390 913,134 - 409,156 3,972,974 6,058,654 $ Level3 - $ - - $	Total
				2,660,425 $ 22,898 732,449 53 763,390 949,314 2,612,532 425,161 3,972,974
				12,139,196 $
				Total
				387,581 $ 3,130
				390,711 $

Note: Investment property measured at fair value.

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• (b) The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

			Open-end	Convertible
	Listed shares	Emerging stock	fund	bond
Market quoted	Closing price	Average trades	Net asset value	Closing
price		price

• D. For the years ended December 31, 2021 and 2020, there was no transfer between Level 1 and Level 2.

• E. The following chart is the movement of Level 3 for the years ended December 31, 2021 and 2020:

2020:
						2021
			Beneficiary			Equity
			certificates			instruments			Total
At January 1		$	913,134		$	1,172,546		$	2,085,680
Acquired during the year			113,155			29,463			142,618
Sold during the year	(		40,587)	(		92,085)	(		132,672)
Recognised in profit or loss			24,826			119,853			144,679
Recognised in other comprehensive
income			-			43,369			43,369
Effect of exchange rate changes	(		9,711)	(		23,645)	(		33,356)
At December 31		$	1,000,817		$	1,249,501		$	2,250,318
Movement of unrealised gain or loss
in profit or loss of assets and
liabilities held as at December 31,
2021 (Recorded as non-operating
income and expense)		$	24,826		$	119,853		$	144,679

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						2020
			Beneficiary			Equity
			certificates			instruments			Total
At January 1		$	738,399		$	1,367,388		$	2,105,787
Acquired during the year			227,985			-			227,985
Sold during the year	(		63,368)	(		97,128)	(		160,496)
Recognised in profit or loss			21,515	(		42,229)	(		20,714)
Recognised in other comprehensive
income			-	(		20,860)	(		20,860)
Effect of exchange rate changes	(		11,397)	(		34,625)	(		46,022)
At December 31		$	913,134		$	1,172,546		$	2,085,680
Movement of unrealised gain or loss
in profit or loss of assets and
liabilities held as at December 31,
2020 (Recorded as non-operating
income and expense)		$	21,515	($		42,229)	($		20,714)

Information about the movements of the investment property in Level 3 is provided in Note 6(10).

• F. For the years ended December 31, 2021 and 2020, there was no transfer into or out from Level 3.

• G. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Fair value at December 31, 2021 Non-derivative equity instruments: Unlisted shares 155,285 $ " 1,094,216 Private equity fund investment 1,000,817 Investment property 3,771,591	Significant Valuation unobservable technique input Market approach Discount for lack of marketability Net asset value N/A Net asset value N/A Income approach Revenue growth rate, discount rate	Range Relationship of (weighted inputs to fair average) value - The higher the discount for lack of marketability, the lower the fair value - N/A - N/A - The higher the revenue growth rate, the higher the fair value; the higher the discount rate, the lower the fair value	Relationship of inputs to fair value

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	Fair value at	Fair value at		Significant	Range	Relationship of
	December 31,		Valuation	unobservable	(weighted	inputs to fair
		2020	technique	input	average)	value
Non-derivative equity instruments:
Unlisted shares	$	146,349	Market	Discount for	-	The higher the discount
			approach	lack of		for lack of marketability,
				marketability		the lower the fair value
"		1,026,197	Net asset value	N/A	-	N/A
Private equity fund		913,134	Net asset value	N/A	-	N/A
investment
Investment property		3,972,974	Income	Revenue	-	The higher the revenue
			approach	growth rate,		growth rate, the higher
				discount rate		the fair value; the higher
						the discount rate, the
						lower the fair value

• H. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect on profit or loss or on other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

models have changed:
Input Financial assets Equity instruments Market approach, Net asset value Beneficiary certificates Input Financial assets Equity instruments Market approach, Net asset value Beneficiary certificates Net asset value Net asset value	Change Change ±1% ±1% ±1% ±1%	December	31,2021
		Favourable Unfavourable change change 19,032 $ 19,032) ($ Recognised in profit or loss 9,024 $ 9,024) ($ 10,008 10,008) ( December	Recognised in other comprehensive income
			Favourable Unfavourable change change 3,471 $ 3,471) ($ 3,471) ($ 3,471 $ - - 31,2020	Unfavourable change
		Favourable Unfavourable change change 16,765 $ 16,765) ($ 7,634 $ 7,634) ($ Recognised in profit or loss 9,131 9,131) (	Recognised in other comprehensive income
			Favourable Unfavourable change change 4,092 $ 4,092) ($ 4,092 $ - - 4,092) ($	Unfavourable change

(4) Other matters

During the outbreak of the Covid-19 pandemic and with the government's various preventive measures, the Group was able to maintain its regular operations. The Group's ability to continue as

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a going concern, impairment of assets and financing risk were not significantly affected based on the Group's assessment.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to table 4.

• E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: Please refer to table 5.

• F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: Please refer to table 6.

• G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paidin capital or more: Please refer to table 7.

• H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 8.

• I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Note 6(2).

• J. Significant inter-company transactions during the reporting periods: Please refer to table 9.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 10.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 11.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 13(1).

(4) Major shareholders information

Major shareholders information: Please refer to table 12.

14. SEGMENT INFORMATION

(1) General information

The Group operates business from a geographic perspective; geographically, the Group currently focuses on wholesale in Taiwan, Mainland China, America, and Europe.

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(2) Measurement of segment information

The Chief Operating Decision-Maker evaluates the performance of the operating segments based on a measure of adjusted EBITDA. Interest income and expense are not allocated to operating segments, as this type of activity is driven by the Group central treasury, which manages the cash position of the Group. The accounting policies of the operating segments are in agreement with the significant accounting policies summarised in Note 4.

(3) Information about segment profit or loss, assets and liabilities

The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

Year ended December 31, 2021 Revenue from external customers Inter-segment revenue Segment revenue Segment profit Year ended December 31, 2020 Revenue from external customers Inter-segment revenue Segment revenue Segment profit	Taiwan 80,149,165 $ 5,910,758 86,059,923 $ 6,203,372 $ 66,685,382 $ 2,698,811 69,384,193 $ 4,554,291 $	Reconciliation Asia America Europe and elimination 25,270,925 $ 1,651,681 $ 402,308 $ - $ 95,629,095 - 3,537 101,543,390) ( 120,900,020 $ 1,651,681 $ 405,845 $ 101,543,390) ($ 5,329,091 $ 1,862) ($ 7,897) ($ 77,753 $ 26,254,198 $ 1,611,689 $ 530,958 $ - $ 80,650,860 16 2,264 83,351,951) ( 106,905,058 $ 1,611,705 $ 533,222 $ 83,351,951) ($ 5,471,159 $ 32,757) ($ 12,194) ($ 253,696 $	Total
			107,474,079 $ -
			107,474,079 $
			11,600,457 $
			95,082,227 $ -
			95,082,227 $
			10,234,195 $

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(5) Reconciliation for segment income

The revenue from external customers reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the statement of comprehensive income. A reconciliation of reportable segment profit or loss to the profit before tax and discontinued operations for the years ended December 31, 2021 and 2020 is provided as follows:

			Years ended	December31,	December31,	December31,
			2021			2020
Reportable segments income		$	11,600,457		$	10,234,195
Related loss not yet classified	(		2,987,439)	(		2,571,495)
Total non-operating income and expenses			838,603			555,490
Income before tax from continuing operations		$	9,451,621		$	8,218,190

(6) Information on products and services

Revenue from third parties is mainly derived from the sale of computer peripheral products, consumer electronic products and other electronic products as follows:

consumer electronic products and other electronic	products as follows:	products as follows:
Electrical components products Consumer Electrical products and other electronic products Others	Years endedDecember31,
	2021 61,326,155 $ 45,143,857 1,004,067 107,474,079 $	2020
		53,329,615 $ 41,214,646 537,966
		95,082,227 $

(7) Geographical information

Geographical information for the years ended December 31, 2021 and 2020 is as follows:

Taiwan Asia America Europe	Non-current Revenue assets 80,149,165 $ 3,335,329 $ 25,270,925 13,377,549 1,651,681 32,345 402,308 514 107,474,079 $ 16,745,737 $ YearendedDecember31,2021	Non-current Revenue assets 66,685,382 $ 3,439,927 $ 26,254,198 13,497,193 1,611,689 46,760 530,958 834 95,082,227 $ 16,984,714 $ YearendedDecember31,2020
	Revenue 80,149,165 $ 25,270,925 1,651,681 402,308 107,474,079 $	Revenue 66,685,382 $ 26,254,198 1,611,689 530,958 95,082,227 $

The Group’s geographical revenue information is determined based on the area collecting the accounts receivable.

Non-current assets include property, plant and equipment, right-of-use assets, intangible assets and other non-current assets, but excluding financial assets and deferred income tax assets.

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(8) Major customer information

For the years ended December 31, 2021 and 2020, details of customers accounting for at least 10% of the Group's operating revenues in the consolidated comprehensive income statement are as follows:

ollows:
A customer	Revenue Segment 11,359,057 $ Asia Year ended December31,2021	Year ended December31,2020
	Revenue 11,359,057 $	Revenue 9,560,678 $	Segment
			Asia

(Remainder of page intentionally left blank)

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CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Table 1

Loans to others

Year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2021	Balance at December 31,2021	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loans granted	Footnote
													Item	Value
0 0 0 0 0 1 2 2 2 3 4 5 5 6 6 6 7 7 7 7 7 8 8 9	The Company The Company The Company The Company The Company CGI COI COI COI Mao-Feng CEM3 CEM5 CEM5 HOI HOI HOI CP CP CP CP CP CPDG CPDG CPI	Qun-Jing Quansun UNIKEY CET HEC The Company The Company CGI KUM The Company Mao-Qun CEM3 CEM2 CGI RealYoung The Company CPUS CPHK CPTH WTS CT WTK Zhuzhou Torch Auto Lamp Co., Ltd. CP	Other receivables " " " " " " " " " " " " " " " " " " " " " " "	Yes " " " " " " " " " " " " " " " " " " " " " " "	(Note 4) 400,000 $ 1,300,000 3,000,000 1,398,000 1,000,000 3,120,765 3,566,250 501,300 228,240 2,139,750 174,400 283,400 523,200 1,953,192 97,002 1,100,075 171,180 1,369,440 361,400 57,060 65,000 9,994 319,588 1,383,705	(Note 5) 200,000 $ 650,000 1,500,000 1,383,750 500,000 2,905,875 3,542,400 498,150 221,400 2,075,625 173,760 282,360 521,280 1,342,238 94,095 1,093,163 152,213 1,245,375 359,775 41,513 65,000 - 318,415 1,342,238	194,000 $ 600,000 1,008,760 - 445,000 2,297,025 3,346,461 61,992 191,234 1,948,043 173,760 282,360 521,280 1,342,238 94,095 1,093,163 127,305 1,237,073 193,725 32,933 59,000 - 312,334 1,292,423	0.6%-0.8% 0.6%-0.8% 0.6%-0.8% 1.00% 0.6%-0.8% 0%-1% 0%-1% 0%-0.8% 0%-1% 0%-1% 2.00% 1.50% 1.50% 0%-2% 0%-1% 0%-0.8% 1%-1.5% 1%-1.5% 1.00% 1%-1.5% 1%-1.5% 1.60% 1.60% 0.00%	(Note 3) 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- $ - - - - - - - - - - - - - - - - - - - - - - -	Working capital " " " " " " " " " " " " " " " " " " " " " " "	- $ - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - -	- $ - - - - - - - - - - - - - - - - - - - - - - -	(Note 1,2) 9,136,107 $ 9,136,107 $ 9,136,107 $ 9,136,107 $ 9,136,107 $ 132,931 US$ 862,922 US$ 862,922 US$ 862,922 US$ 389,107 US$ 2,092,837 RMB 813,316 RMB 813,316 RMB 92,345 US$ 92,345 US$ 92,345 US$ 4,445,384 $ 4,445,384 $ 4,445,384 $ 4,445,384 $ 4,445,384 $ 315,763 RMB 315,763 RMB 250,505 US$	(Note 1,2) 12,181,476 $ 12,181,476 $ 12,181,476 $ 12,181,476 $ 12,181,476 $ 132,931 US$ 891,061 US$ 891,061 US$ 891,061 US$ 389,107 US$ 2,092,837 RMB 813,316 RMB 813,316 RMB 92,345 US$ 92,345 US$ 92,345 US$ 4,445,384 $ 4,445,384 $ 4,445,384 $ 4,445,384 $ 4,445,384 $ 315,763 RMB 315,763 RMB 250,505 US$	- - - - - - - - - - - - - - - - - - - - - - - -

Table 1 Page 1

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2021	Balance at December 31,2021	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loans granted	Footnote
													Item	Value
10 11 12 13	CPSZ Directmax Systemax Xavi	CPTZ Xavi Xavi XAVi Thailand	" " " "	" " " "	(Note 4) 174,400 85,590 224,920 140,964	(Note 5) 173,760 83,025 199,260 140,964	130,320 83,025 199,260 91,212	1.60% 0.00% 0.00% 0.9%-1%	(Note 3) 2 2 2 2	- - - -	" " " "	- - - -	- - - -	- - - -	(Note 1,2) 732,002 RMB 13,400 US$ 7,460 US$ 358,282 $	(Note 1,2) 732,002 RMB 13,400 US$ 7,460 US$ 358,282 $	- - - -

Note 1: In accordance with the financing procedures of the Company, total financing amount should not exceed 40% of the Company’s stockholders’ equity and

• a. the total financing amount to any individual party should not exceed 30% of the Company’s stockholders’ equity and the amount of sales/purchase during the year for the purpose of business.

• b. the total financing amount to any individual party should not exceed 30% of the Company’s stockholders’ equity for the purpose of loan.

• c. for the purpose of loan between the Company's foreign subsidiaries or from foreign subsidiaries to the Company, for which the Company both have 100% shares directly or indirectly, the total financing amount should not exceed the borrower's stockholders' equity, and the lending period may not exceed 3 years; and the financing amount to single company shall be subject to the following restrictions:

• (a) the total financing amount should not exceed the borrower's stockholders' equity and the amount of sales/purchase during the year for the purpose of business.

• (b) the total financing amount should not exceed the borrower's stockholders' equity for the purpose of loan.

• d. except for c., the financing period should not exceed one year.

• Note 2: In accordance with the financing procedures of the subsidiary, total financing amount should not exceed the subsidiary’s stockholders’ equity audited or reviewed by CPA and

• a. the total financing amount to any individual party should not exceed 40% of the subsidiary’s stockholders’ equity for the purpose of short-term financing.

• b. the total financing amount to any individual party should not exceed 50% of the subsidiary’s stockholders’ equity and the amount of sales/purchase during the year for the purpose of business.

• c. the limit on the loans to granted between the subsidiary – CP’s foreign subsidiaries or from foreign subsidiaries to the Company for which the subsidiary – CP directly or indirectly holds 100% of its voting shares is the borrower’s net asset based on the latest audited or reviewed consolidated

• (a) the total financing amount should not exceed the borrower's stockholders' equity and the amount of sales/purchase during the year for the purpose of business.

• (b) the total financing amount should not exceed the borrower's stockholders' equity for the purpose of loan.

• d. except for c., the financing period should not exceed one year.

• Note 3: The numbers filled in the column of ‘Nature of loan are as follows:

• (1) The business transaction is ‘1’.

• (2) The short-term financing is ‘2’.

Note 4: The maximum balance is the maximum outstanding balance during the year ended December 31, 2021.

Note 5: The ending balance had been approved at the Board of Directors’ meeting.

Table 1 Page 2

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Provision of endorsements and guarantees to others

Year ended December 31, 2021

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Number	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a singleparty	Maximum outstanding endorsement/ guarantee amount as of December 31, 2021	Outstanding endorsement/ guarantee amount at December 31, 2021	Actual amount drawn down	Amount of endorsements / guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided	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	Footnote
		Company name	Relationship with the endorser/ guarantor
0	The Company	CEZ	(Note 1) 2	7,613,422 $	337,380 $	- $	- $	-	0.00%	(Note 2) 15,226,845 $	Y	N	N	-

Note 1 ： Relationship between the endorser/guarantor and the party being endorsed/guaranteed is as follows:

• (1) Having business relationship.

• (2) The endorser/guarantor parent company owns directly or indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (3) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.

• (4) Between the endorser/guarantor parent company both owns directly or indirectly more than 90% voting shares of the endorsed/guaranteed subsidiaries.

• (5) Mutual guarantee of the trade as required by the construction contract.

• (6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

• (7) Performance guarantees for pre-sales sales contracts under the Consumer Protection Act.

• Note 2: In accordance with the guarantee procedure of the Company, the total guarantee amount is limited to 50% of the Company’s capital. The Company’s guarantee to each entity is limited to 50% of the total guarantee amount. The grand total guarantee amount of the Group is limited to 50% of the Company’s capital, and other restrictions are as follows:

• a. the total guarantee amount, except the above mentioned restriction, to any individual party should not exceed the higher amount of sales/purchase during the year for the purpose of business.

• b. the total guarantee amount is limited to the Company’s stockholders’ equity when the Company takes guarantee procedure to the entity whose stockholders’ equity is lower than 50% of its paid-in capital.

Table 2 Page 1

Table 3

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December31,2021	As of December31,2021		Footnote
				Numberofshares	Bookvalue	Ownership (%)	Fairvalue
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company CP CP CP CP CP CP CP CP	Common stock Laster Tech Corporation Ltd. Common stock Newmax Technology Co., Ltd. Common stock Solomon Technology Corporation Common stock Eden Biologics, Inc. Common stock MOSA INDUSTRIAL CORPORATION Common stock Wiwynn Corporation Common stock ASLAN Pharmaceuticals Limited Common stock WK Venture Capital XI Common stock Top Taiwan Venture Capital Group Common stock Chengding Venture Capital Group Common stock Sheng Da Venture Capital Group Preferred stock Magi Capital Venture Co., Ltd Beneficiary certificate Fuh Hwa Smart Energy Securities Investment Trust Fund Beneficiary certificate Fuh Hwa New Oriental Securities Investment Trust Fund Beneficiary certificate Fuh Hwa New Energy Efficient Securities Investment Trust Fund Beneficiary certificate Fuh Hwa Small Capital Fund Common stock Clevo Co. Common stock Genesis Photonics Inc. Common stock AcBel Polytech Inc. Common stock ShunOn Electronic Co. Common stock Alcor Micro,Corp. Private equity Genesis Photonics Inc. Common stock Taipei Tech innoFund Common stock Maxima Ventures II, Inc. Common stock Taiwan Cultural and Creative Co., Ltd. Common stock MKD Technology Inc. Common stock Newmax Technology Co., Ltd. Common stock Powertech Technology Inc. Common stock Taiwan Semiconductor Manufacturing Co., Ltd. Common stock United Microelectronics Corporation Common stock ASE Technology Holding Co., Ltd Common stock WK Venture Capital XI Common stock Top Taiwan Venture Capital Group Common stock Chengding Venture Capital Group	Corporate director " - - - - - Corporate director " " " - - - - - Common chairman - - Corporate director " - Corporate director - - - Corporate director An independent director of CP is the company’s chairman - - - Corporate director " "	Financial assets at fair value through profit or loss - current " " " " " " Financial assets at fair value through profit or loss - non-current " " " " " " " " Financial assets at fair value through other comprehensive income - current " " " " Financial assets at fair value through other comprehensive income - non-current " " " " Financial assets at fair value through profit or loss - current " " " " Financial assets at fair value through profit or loss - non-current " "	5,246,987 1,243,607 694,000 290,000 445,000 6,000 220,000 15,380,000 7,500,000 10,000,000 3,570,000 317,184 9,000,000 9,000,000 8,700,000 402,350 13,100,608 304,350 3,727,000 10,802,254 1,056,000 4,224,458 3,500,000 3,000,000 1,600,000 1,600,000 2,660,983 100,000 300,000 500,000 200,000 1,000,000 7,500,000 10,000,000	231,130 $ 49,060 16,587 870 18,757 6,690 6,819 304,985 96,091 138,519 42,114 31,687 73,890 16,110 82,563 63,849 432,320 2,554 136,408 481,781 63,782 23,192 48,679 10,481 2,887 2,646 104,976 9,770 184,500 32,500 21,300 19,830 96,091 138,519	5.68% 0.68% 0.40% 0.07% 0.24% 0.00% 0.58% 15.38% 9.38% 7.41% 10.71% 7.79% － － － － 2.02% 0.43% 0.72% 7.30% 1.50% 6.03% 11.67% 8.21% 5.78% 6.66% 1.44% 0.01% 0.00% 0.00% 0.00% 1.00% 9.38% 7.41%	231,130 $ 49,060 16,587 870 18,757 6,690 6,819 304,985 96,091 138,519 42,114 31,687 73,890 16,110 82,563 63,849 432,320 2,554 136,408 481,781 63,782 23,192 48,679 10,481 2,887 2,646 104,976 9,770 184,500 32,500 21,300 19,830 96,091 138,519	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Table 3 Page 1

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December31,2021	As of December31,2021		Footnote
				Numberofshares	Bookvalue	Ownership (%)	Fairvalue
CP CP CP CP CP CP CP HEC HEC UNIKEY UNIKEY UNIKEY CGI CGI COI COI COI COI COI COI COI COI COI COI COI COI COI COI COI CPI CPI CPI CPI Quansun Quansun Qun-Jing XAVi XAVi XAVi XAVi	Beneficiary certificate Fuh Hwa New Oriental Securities Investment Trust Fund Beneficiary certificate Fuh Hwa Smart Energy Securities Investment Trust Fund Beneficiary certificate Fuh Hwa New Energy Efficient Securities Investment Trust Fund Common stock Clevo Co. Common stock Genesis Photonics Inc. Private equity Genesis Photonics Inc. Common stock Taipei Tech innoFund Common stock Clevo Co. Common stock The Company Common stock Newmax Technology Co., Ltd. Common stock Clevo Co. Common stock The Company Preferred stock PRP CE1 BC1 Inc. Bond PRP CE1 BC1 Common stock Laster Tech Corporation Ltd. Common stock Wiwynn Corporation Common stock ZILLTEK TECHNOLOGY CORP. Common stock Q Technology (Group) Company Limited Common stock Valens Semiconductor Ltd. Common stock Marvell Technology, Inc. Common stock Wealth Guard Ventures Limited Beneficiary certificate Celesta Capital II, L.P. Beneficiary certificate Celesta Capital IV, L.P. Beneficiary certificate MagiCapital Fund II, L.P. Common stock Clevo Co. Common stock Alpha Professional Holdings Limited Common stock CTBC Securities Co., Ltd. Common stock Merrimack Pharmacenticals, Inc. Preferred stock SAGA-CHINA Beneficiary certificate Celesta Capital II, L.P. Beneficiary certificate Celesta Capital IV, L.P. Beneficiary certificate Marvell Technology, Inc. Common stock Anxin-China Holdings Limited Common stock New Hung Kuan Enterprise Co., Ltd Common stock Clevo Co. Common stock Clevo Co. Common stock Chicony Power Technology Co., Ltd. Common stock Laster Tech Corporation Ltd. Bond Yeong Guan Energy Technology Group Co., Ltd. The third unsecured convertible bonds Beneficiary certificate Fuh Hwa New Oriental Securities Investment Trust Fund	- - - Common chairman " " Corporate director Common chairman The Company Corporate director Common chairman The Company - - Corporate director - - - - - - - - - Common chairman - - - - - - - - - Common chairman " Affiliated company Corporate director - -	Financial assets at fair value through profit or loss - non-current " " Financial assets at fair value through other comprehensive income - current " Financial assets at fair value through other comprehensive income - non-current " Financial assets at fair value through other comprehensive income - current " Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current " Financial assets at fair value through profit or loss - non-current Financial assets at amortised cost - non-current Financial assets at fair value through profit or loss - current " " " " " Financial assets at fair value through profit or loss - non-current " " " Financial assets at fair value through other comprehensive income - current " " " Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - non-current " Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - current " Financial assets at fair value through profit or loss - current " " Financial assets at fair value through profit or loss - non-current	6,000,000 21,000,000 5,800,000 4,538,000 1,236,392 1,979,291 1,500,000 11,370,823 16,188,935 18,825,998 16,730,000 21,174,298 122,487 - 2,027,763 10,000 11,000 5,636,000 300,000 2,228 602,373 6,426,373 2,700,000 4,619,900 10,104,000 500 270,000 84,482 4,739,493 3,213,187 1,350,000 2,264 8,300,000 8,140,000 7,100,000 2,100,000 514,160 805,055 213,000 3,000,000	10,739 $ 172,410 55,042 149,754 10,373 11,302 20,862 375,237 1,332,349 742,685 552,090 1,742,645 2,717 445,025 89,323 11,150 4,400 201,624 63,929 5,394 31,861 186,173 76,090 223,517 333,432 2 30,983 9,142 108,893 93,087 38,045 5,482 - 152,639 234,300 69,300 40,156 35,463 20,980 5,370	－ － － 0.70% 1.77% 2.83% 5.00% 1.75% 2.17% 10.22% 2.57% 2.84% － － 2.19% 0.01% 0.03% 0.48% 0.00% 0.00% 17.28% － － － 1.56% 0.00% 0.00% 0.63% － － － － 0.27% 21.71% 1.09% 0.32% 0.13% 0.83% － －	10,739 $ 172,410 55,042 149,754 10,373 11,302 20,862 375,237 1,332,349 742,685 552,090 1,742,645 2,717 445,025 89,323 11,150 4,400 201,624 63,929 5,394 31,861 186,173 76,090 223,517 333,432 2 30,983 9,142 108,893 93,087 38,045 5,482 - 152,639 234,300 69,300 40,156 35,463 20,980 5,370	- - - - - - - - Note 2 - - Note 3 - - - - - - - - - - - - - - - - - - - - - Note 4 - - - - - -

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9 'Financial instruments'. Note 2: Provided 12,600,000 shares pledged for short-term loan.

Note 3: Provided 7,200,000 shares pledged for short-term loan.

Note 4: The Company holds over 20% ownership interest of the entity, however, based on objectives indicators; the Company has no significant influence on the entity.

Table 3 Page 2

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

Year ended December 31, 2021

Table 4 Investor	Marketable securities(Note 1)	General ledger account	Counterparty (Note 2)	Relationship with the investor (Note 2)	Balance as at January1,2021	Balance as at January1,2021	Addition(Note 3)	Addition(Note 3)		Disposal(Note 3)	Disposal(Note 3)		Expressed in thousands of NTD (Except as otherwise indicated) Balance as at December 31, 2021 (Note 4)	Expressed in thousands of NTD (Except as otherwise indicated) Balance as at December 31, 2021 (Note 4)
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
The Company	Chicony Power Technology Co., Ltd.	Investments acoounted for using equity method	External person and external cooperate	Subsidiary	200,467,594	2,352,241 $	6,239,000	440,572 $	-	- $	- $	- $	206,706,594	2,792,813 $

person

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities. Note 2: It is applicable to disclosure information when marketable securities were recognized as "investments accounted for using equity method". Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300 million or 20% of paid-in capital or more. Note 4: It refers to the initial costs without considering the amortisation or valuation of exchange rate at the end of the year.

Table 4 Page 1

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Acquisition of real estate reaching $300 million or 20% of paid-in capital or more

Year ended December 31, 2021

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

If the counterparty is a related party, information as

to the last transaction of the real estate is disclosed below:

Real estate acquired by	Real estate acquired	Date ofthe event	Transaction amount	Status of payment	Counterparty	Relationship with the counterparty	Original owner who sold the real estate to the counterparty	Relationship between the original owner and the acquirer	Date of the original transaction	Amount	Basis or reference used in setting the price	Reason for acquisition of real estate and status of the real estate	Other commitments
CET	Construction in process	2019/11/8 (Date of contract signing)	$ 1,033,357 (THB 1,246,210 thousand)	1,033,357 $	JWS Construction Co., Ltd., etc.	None	-	-	-	$ -	Contract	Plant (For the Purpose of Conducting Business)	None

• Note 1: The appraisal result should be presented in the ‘Basis or reference used in setting the price’ column if the real estate acquired should be appraised pursuant to the regulations. Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Note 3: Date of the event referred to herein is the date of contract signing date, date of payment, date of execution of a trading order, date of title transfer, date of board resolution, or other date that can confirm the counterparty and the monetary amount of the transaction, whichever is earlier.

Table 5 Page 1

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more

Year ended December 31, 2021

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Real estate disposed by	Real estate	Transaction date or date of the event	Date of acquisition	Book value	Disposal amount	Status of collection of proceeds	Gain (loss) on disposal	Counterparty	Relationship with the seller	Reason for disposal	Basis or reference used in settingtheprice	Other commitments
The Company	Investment property	2019/12/24 - 2021/6/18	2016/2/25	2,599,780 $	2,782,327 $	2,782,327 $	182,547 $	Employees of the Group and the associates and unintended audience	Employees of the Group and the associates and unintended audience	Employees’ housing purchased by the employees	Valuation agency: Panasia Limited Valuation amount: NTD 2,715,606,160	None

Note 1: The appraisal result should be presented in the ‘Basis or reference used in setting the price’ column if the real estate disposed of should be appraised pursuant to the regulations.

• Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20% of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

• Note 3: Date of the event referred to herein is the date of contract signing, date of payment, date of execution of a trading order, date of title transfer, date of board resolution, or other date that can confirm the counterparty and the monetary amount of the transaction, whichever is earlier.

Table 6 Page 1

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more

Year ended December 31, 2021

Purchaser/seller	Counterparty	Relationship with the counterparty (Note3)		Transaction	Transaction		Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
The Company CEM2 The Company CEM3 The Company CEM5 The Company Mao-Ray The Company CET CEM2 CET CGI CEM2 CGI CEM3 CGI CAI CGI CEZ CEM2 CGI Mao-Ray CGI CEM3 CGI CEM5 CGI	CEM2 The Company CEM3 The Company CEM5 The Company Mao-Ray The Company CET The Company CET CEM2 CEM2 CGI CEM3 CGI CAI CGI CEZ CGI CGI CEM2 CGI Mao-Ray CGI CEM3 CGI CEM5	Subsidiary owned by COI The parent company of COI Subsidiary owned by Mao-Feng The parent company of COI Subsidiary owned by COI The parent company of COI Subsidiary owned by Real Young The parent company of COI Subsidiary owned by COI The parent company of COI Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company	Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases	8,749,523 $ 8,749,523) ( 12,914,490 12,914,490) ( 328,520 328,520) ( 4,898,968 4,898,968) ( 9,206,574 9,206,574) ( 333,732) ( 333,732 162,808) ( 162,808 345,009) ( 345,009 957,037) ( 957,037 233,871) ( 233,871 1,065,168) ( 1,065,168 2,252,385) ( 2,252,385 8,866,012) ( 8,866,012 5,185,683) ( 5,185,683	23 85 34 51 1 5 13 64 24 89 3 3 1 2 2 1 5 99 1 92 10 5 29 12 35 46 74 27	60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days	Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1	60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days 60~180 days	6,520,180) ($ 6,520,180 7,181,968) ( 7,181,968 87,067) ( 87,067 839,662) ( 839,662 1,411,756) ( 1,411,756 545,907 545,907) ( - - 81,729 81,729) ( 582,587 582,587) ( 2,013 2,013) ( - - 1,243,005 1,243,005) ( 1,435,692 1,435,692) ( 3,108,873 3,108,873) (	40 89 44 72 1 2 5 37 9 90 7 26 - - 1 1 9 100 0 45 - - 54 21 14 25 87 53	- - - - - - - - - - - - - - - - - - - - - - - - - - - -

Table 7 Page 1

Purchaser/seller	Counterparty	Relationship with the counterparty (Note3)		Transaction	Transaction		Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
CET CGI Mao-Ray CEM2 CEM3 CEM5 Qun-Yang CEM3 CPSZ CEM3 CP CEM3 CP CEM2 CP CEM5 CP Mao-Ray CP CET CP CEZ CP CPUS CPDG CP CPSZ CP CPSZ CPTH CPCQ CP	CGI CET CEM2 Mao-Ray CEM5 CEM3 CEM3 Qun-Yang CEM3 CPSZ CEM3 CP CEM2 CP CEM5 CP Mao-Ray CP CET CP CEZ CP CPUS CP CP CPDG CP CPSZ CPTH CPSZ CP CPCQ	Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company	Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases	495,385) ($ 495,385 197,730) ( 197,730 147,040) ( 147,040 101,830) ( 101,830 520,551) ( 520,551 1,655,192) ( 1,655,192 265,675) ( 265,675 957,316) ( 957,316 273,154) ( 273,154 158,908) ( 158,908 150,780) ( 150,780 693,063) ( 693,063 9,053,507) ( 9,053,507 15,858,217) ( 15,858,217 276,228) ( 276,228 7,380,469) ( 7,380,469	5 3 1 22 1 2 101 0 3 2 4 7 1 3 3 16 1 4 - 1 - 59 2 100 95 28 94 47 2 25 96 22	60~180 days 60~180 days 60~90 days 60~90 days 60~90 days 60~90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 45 days 45 days 60 days 60 days 45 days 45 days	Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1	60~180 days 60~180 days 60~90 days 60~90 days 60~90 days 60~90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 45 days 45 days 45 days 45 days 60 days 60 days 45 days 45 days	25,476 $ 25,476) ( 77,108 77,108) ( - - 18,316 18,316) ( 231,839 231,839) ( 653,347 653,347) ( 58,675 58,675) ( 403,023 403,023) ( 99,984 99,984) ( 11,428 11,428) ( 655 655) ( 433,225 433,225) ( 2,212,133 2,212,133) ( 2,772,316 2,772,316) ( 146,773 146,773) ( 2,614,771 2,614,771) (	2 0 1 11 - - 99 0 7 3 6 10 1 2 4 22 1 5 0 1 0 15 4 100 93 28 85 35 4 40 97 33	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Table 7 Page 2

Purchaser/seller	Counterparty	Relationship with the counterparty (Note3)		Transaction	Transaction		Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
CPCQ CPSZ CPTH CP GSE CPSZ GSE CPDG GSE CPCQ CPDG Zhuzhou Torch CET XAVi XAVi Suzhou XAVi XAVi Suzhou XAVi Thailand XAVi Thailand XAVi CEM2 CEM3 CEM3 CEM3 CEM3 CEM3 CEM5 CEM5 Mao-Ray CP	CPSZ CPCQ CP CPTH CPSZ GSE CPDG GSE CPCQ GSE Zhuzhou Torch CPDG XAVi CET XAVi XAVi Suzhou XAVi Thailand XAVi Suzhou XAVi XAVi Thailand Newmax Newmax KAPOK JiaXing ShunOn Far win (Kunshan) Co., Ltd. ShunOn Electronic Co. ShunOn Electronic Co. Far win (Kunshan) Co., Ltd. Far win (Dongguan) Co., Ltd. KAPOK	Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Associate Associate Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party	Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Purchases Purchases Sales Purchases Purchases Purchases Purchases Purchases Purchases Sales	252,180) ($ 252,180 538,557) ( 538,557 314,806) ( 314,806 334,596) ( 334,596 108,165) ( 108,165 224,223) ( 224,223 525,500) ( 525,500 1,893,789) ( 1,893,789 266,535) ( 266,535 460,846) ( 460,846 102,715 211,623 642,252) ( 575,300 455,213 173,559 486,284 195,955 175,167 396,433) (	3 2 100 2 31 2 33 4 11 2 1 26 5 18 68 66 10 30 100 16 1 1 3 2 2 1 8 3 2 1	60 days 60 days 45 days 45 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 45~180 days 45~180 days 45~180 days 45~180 days 45~180 days 45~180 days 45~180 days 45~180 days 60~90 days 60~90 days 60 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60 days	Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 2 Note 1 Note 1 Note 1 Note 2 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 2	60 days 60 days 45 days 45 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 45~180 days 45~180 days 45~180 days 45~180 days 45~180 days 45~180 days 45~180 days 45~180 days 60~90 days 60~90 days 60 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60~90 days 60 days	50,989 $ 50,989) ( 182,516 182,516) ( 129,901 129,901) ( 154,619 154,619) ( 44,702 44,702) ( 62,271 62,271) ( 124,849 124,849) ( - - 118,910 118,910) ( 24,184 24,184) ( 1,509) ( 28,119) ( 236,933 104,880) ( 54,582) ( 19,656) ( 90,930) ( 20,280) ( 22,179) ( 110,982	2 1 100 2 30 2 36 4 10 2 3 37 8 84 - - 63 23 44 16 0 0 2 2 1 1 5 1 1 1	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Note 1: Purchases from related parties were basically the same as those from third parties. Note 2: Sales to related parties were basically the same as those to third parties.

Table 7 Page 3

Table 8

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Receivables from related parties reaching $100 million or 20% of paid-in capital or more

December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31,2021	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Accounts receivable	CEM3 The Company The Company The Company KAPOK CGI CET CAI The Company XAVi CGI CGI CEM3 CEM5 CEM3 CPUS KAPOK CP CP CPTH CP CPSZ CP CPDG XAVi Thailand UNIKEY HEC Qun-Jing Quansun Real Young CGI The Company KUM The Company CEM2 CET The Company CET Mao-Qun CEM2 CEM3 CPHK CPUS CPTH Zhuzhou Torch CPTZ CP CGI The Company Directmax XAVi	Subsidiary owned by Mao-Feng The parent company of COI The parent company of COI The parent company of COI Other related party Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Other related party Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Subsidiary owned by the Company Subsidiary owned by the Company Subsidiary owned by HEC Subsidiary owned by HEC Subsidiary owned by COI Subsidiary owned by the Company The Company Affiliated company The Company Affiliated company Affiliated company The Company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company The Company Affiliated company Affiliated company	158,283 $ 6,520,180 839,662 7,181,968 236,933 1,435,692 545,907 582,587 1,411,756 124,849 3,108,873 1,243,005 653,347 403,023 231,839 433,225 110,982 2,212,133 2,772,316 146,773 2,614,771 129,901 182,516 154,619 118,910 1,010,966 $ 445,933 194,395 601,223 230,873 186,856 3,379,507 194,326 2,317,704 2,236,437 3,295,597 1,964,794 424,391 178,434 534,479 285,313 1,245,135 128,140 193,979 314,878 133,514 1,292,423 1,357,753 1,096,273 107,421 199,260	0.01 1.52 2.55 1.85 3.01 7.19 0.69 2.10 7.56 4.03 2.05 3.62 3.02 3.03 2.14 1.73 4.73 4.27 5.15 3.05 2.71 2.53 4.58 2.54 1.90 - - - - - - - - - - - - - - - - - - - - - - - - -	- $ - - - - - - - - - - - - - - - - - - - - - - - - - $ - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- $ - - - - - - - - - - - - - - - - - - - - - - - - - $ - - - - - - - - - - - - - - - - - - - - - - - -	- $ - - - - - - - - - - - - - - - - - - - - - - - - - $ - - - - - - - - - - - - - - - - - - - - - - - -
The Company CEM2 Mao-Ray CEM3 CEM3 CEM3 CEM2 CGI CET CET CEM5 Mao-Ray CP CP CPSZ CP CP CPDG CPSZ CPSZ CPCQ GSE CPTH GSE XAVi Suzhou Other receivable
The Company The Company The Company The Company The Company The Company COI COI CGI CGI CGI Mao-Feng CEM2 CEM3 CEM5 CEM5 CP CP CP CPDG CPSZ CPI HOI HOI XAVi Overseas Systemax

Table 8 Page 1

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES Significant inter-company transactions during the reporting period Year ended December 31, 2021

Table 9 Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)		Expressed in thousands of NTD (Except as otherwise indicated) Transaction	Expressed in thousands of NTD (Except as otherwise indicated) Transaction	Expressed in thousands of NTD (Except as otherwise indicated) Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note3)
0	The Company	UNIKEY	1	Other receivables-related party	$ 1,010,966	Note 5	1.21
1	CGI	The Company	2	Other receivables-related party	2,317,704	Note 5	2.77
2	COI	The Company	2	Other receivables-related party	3,379,507	Note 5	4.04
3	CET	The Company	2	Accounts receivable-related party	1,411,756	Note 4	1.69
"	CET	The Company	2	Sales	9,206,574	Note 4	8.57
4	CEM2	The Company	2	Sales	8,749,523	Note 4	8.14
"	CEM2	The Company	2	Accounts receivable-related party	6,520,180	Note 4	7.79
5	CEM3	The Company	2	Sales	12,914,490	Note 4	12.02
"	CEM3	The Company	2	Accounts receivable-related party	7,181,968	Note 4	8.58
"	CEM3	CGI	3	Sales	8,866,012	Note 4	8.25
"	CEM3	CGI	3	Accounts receivable-related party	1,435,692	Note 4	1.71
6	CEM5	CGI	3	Sales	5,185,683	Note 4	4.83
"	CEM5	CGI	3	Accounts receivable-related party	3,108,873	Note 4	3.71
7	Mao-Ray	The Company	2	Sales	4,898,968	Note 4	4.56
"	Mao-Ray	The Company	2	Accounts receivable-related party	839,662	Note 4	1.00
"	Mao-Ray	CGI	3	Sales	2,252,385	Note 4	2.10
"	Mao-Ray	CGI	3	Accounts receivable-related party	1,243,005	Note 4	1.16
8	Mao-Feng	The Company	2	Other receivables-related party	1,964,794	Note 5	2.35

Table 9 Page 1

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note3)
9	CP	CEM3	3	Sales	1,655,192	Note 4	1.54
"	CP	CPHK	3	Other receivables-related party	1,245,135	Note 5	1.49
10	HOI	CGI	3	Other receivables-related party	1,357,753	Note 5	1.62
"	HOI	The Company	2	Other receivables-related party	1,096,273	Note 5	1.31
11	CPSZ	CP	3	Sales	15,858,217	Note 4	14.76
"	CPSZ	CP	3	Accounts receivable-related party	2,772,316	Note 4	3.31
12	CPCQ	CP	3	Sales	7,380,469	Note 4	6.87
"	CPCQ	CP	3	Accounts receivable-related party	2,614,771	Note 4	3.12
13	CPDG	CP	3	Sales	9,053,507	Note 4	8.42
"	CPDG	CP	3	Accounts receivable-related party	2,212,133	Note 4	2.64
14	CPI	CP	3	Other receivables-related party	1,292,423	Note 5	1.54
15	XAVi-Suzhou	XAVi	3	Sales	1,893,789	Note 4	1.76

Other transactions between the parent company and subsidiaries not exceeding 1% of the consolidated total revenue or total assets are not disclosed. Those transactions are shown in other assets and revenue.

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

• (1) Parent company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

• (1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on year-end balance of

total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: Sales to related parties were basically the same as those to third parties, with consideration of transaction quantities and market situation, the payment terms were basically the same as third parties .

Note 5: The terms of related party loans depends on both parties’ operation situation.

Note 6: Receivables from advances and service charges of related parties.

Table 9 Page 2

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Information on investees (not including investees in Mainland China)

Year ended December 31, 2021

Table 10

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Sharesheld as atDecember31,2021	Sharesheld as atDecember31,2021	Sharesheld as atDecember31,2021	Net profit (loss) of the investee for the year ended December 31,2021	Investment income (loss) recognised by the Company for the year ended December 31, 2021	Footnote
				Balance as at December 31,2021	Balance as at December 31,2020	Numberofshares	Ownership (%)	Bookvalue
The Company UNIKEY COI	COI CET UNIKEY HOI HEC XAVi CGI CP Real Young XAVi CAI CAGI Mao-Feng CET KUM CEZ GFI Real Young	BVI Thailand Taiwan R.O.C. BVI Taiwan R.O.C. Taiwan R.O.C. Malaysia Taiwan R.O.C. BVI Taiwan R.O.C. U.S.A U.S.A BVI Thailand Samoa Czech Republic Cayman Islands BVI	(1) Sales of computer peripherals (2) Management of overseas acquisitions & investments Manufacturing and sales of computer peripherals Manufacturing and sales of computer peripherals (1) Sales of switching power supplies and other electronic parts (2) Management of overseas acquisitions & investments Sales of switching power supplies and other electronic parts Researching, manufacturing and selling the DSL bridges and routers Sales of computer peripherals (1) Research, manufacture and sales of switching power supply, other electronic parts and equipment, and lamps (2) Smart building system business (1) Design and sales of computer peripherals (2) Management of overseas acquisitions & investments Researching, manufacturing and selling the DSL bridges and routers Sales of computer peripherals Internet solution for E-Commerce solution (1) Sales of computer peripherals (2) Management of overseas acquisitions & investments (1) Sales of computer peripherals (2) Management of overseas acquisitions & investments Sales of computer peripherals (1) Sales of computer peripherals (2) Management of overseas acquisitions & investments (1) Design and sales of computer peripherals (2) Management of overseas acquisitions & investments Manufacturing and sales of computer peripherals	265,326 $ 783,011 150,000 412,003 2,330 121,163 33,027 2,792,813 41,490 1,615 89,944 (USD 3,250) 85,931 (USD 3,105) 63,486 (USD 2,294) 216,502 (USD 7,823) 62,850 (USD 2,271) 194 (USD 7) 66,199 (USD 2,392) 223,393 (USD 8,072)	265,326 $ 489,232 150,000 412,003 2,330 125,122 33,027 2,352,241 41,490 - 89,944 (USD 3,250) 85,931 (USD 3,105) 63,486 (USD 2,294) 261,502 (USD 7,823) 62,850 (USD 2,271) 194 (USD 7) 66,199 (USD 2,392) 223,393 (USD 8,072)	1,000 8,213,384 90,000,000 12,560,000 4,660,000 31,402,440 1,000,000 206,706,594 1,275,000 133,261 3,250,000 12,400,000 2,294,000 1,789,141 2,284,142 - 2,310,000 7,864,780	100.00% 82.11% 100.00% 100.00% 100.00% 45.15% 100.00% 52.71% 13.95% 0.19% 100.00% 100.00% 100.00% 17.89% 100.00% 100.00% 60.00% 86.05%	24,725,937 $ 885,868 431,391 2,555,646 364,938) ( 303,798 3,293,355 4,914,875 146,418 1,702 82,747 1,224) ( 10,768,526 193,256 175,713) ( 224,927 195,882) ( 910,861	1,365,296 $ 151,091 96,612) ( 14,021 105,300 147,655 425,054 2,827,207 139,470 147,655 456) ( 45) ( 447,215 151,091 10,599 366 9,508) ( 139,470	1,364,908 $ 120,912 213,071) ( 14,021 16,261 63,838 314,383 1,436,672 - - - - - - - - - -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary

Table 10 Page 1

Initial investment amount

Shares held as at December 31, 2021

Investor	Investee	Location	Main business activities	Balance as at December 31,2021	Balance as at December 31,2020	Numberofshares	Ownership (%)	Bookvalue	Net profit (loss) of the investee for the year ended December 31,2021	Investment income (loss) recognised by the Company for the year ended December 31, 2021	Footnote
COI CP CPH CPI WTS Kuang Mao HEC XAVi Directmax	CEJ Swift Success Holdings limited CPH CPTH CPI CPUS CPHK WitsLight Technology CT Sky-Fine Quansun Qun-Jung CP Directmax Xavi Technologies (Thailand) Co., Ltd. XAVi Overseas Systemax	Japan Samoa BVI Thailand Cayman Islands U.S.A Hong Kong Samoa Taiwan R.O.C. Samoa Taiwan R.O.C. Taiwan R.O.C. Taiwan R.O.C. BVI Thailand BVI BVI	Sales of computer peripherals Investment holdings Investment holdings Research and development center Design, researching and developing and sales of automotive and motorcycle lamps and other components Sales of computer peripherals Investment holdings Manufacturing and sales of computer peripherals (1) Research, manufacture and sales of switching power supply, other electronic parts and equipment, and lamps (2) Smart building system business Sales of DSL bridges and routers Sales of switching power supplies and other electronic parts Investment holdings Sales of switching power supplies and other electronic parts Design, research and development, manufacturing and sales of LED lighting modules and investment holdings Management of overseas acquisitions and investments Management of overseas acquisitions and investments Manufacturing, processing and sales of communication products	2,629 $ (USD 95) 148,393 (USD 5,362) 326,350 (USD 10,000) 271,773 (THB 290,000) 278,500 (USD 10,000) 36,678 (USD 1,317) 306,816 (HKD 85,800) 287,273 (USD 10,315) 3,000 68,994 (USD 2,493) 80,000 1,000 54,811 332,791 (USD 10,250) 53,637 (THB 55,000) 324,942 (USD 10,000) 7,849 (USD 250)	2,629 $ (USD 95) 148,393 (USD 5,362) 326,350 (USD 10,000) 237,744 (THB 250,000) 278,500 (USD 10,000) 36,678 (USD 1,317) 306,816 (HKD 85,800) 258,170 (USD 9,270) 3,000 68,994 (USD 2,493) 80,000 1,000 54,811 332,791 (USD 10,250) 49,065 (THB 50,000) 324,942 (USD 10,000) 7,849 (USD 250)	- - 10,000,000 99,000,000 10,000,000 1,500,000 46,800,000 12,800,000 300,000 310,423 8,000,000 100,000 1,202,830 7,750,000 5,499,997 7,500,000 250,000	100.00% 40.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 29.00% 100.00% 100.00% 0.31% 100.00% 100.00% 100.00% 100.00%	10,888 $ 199,928 6,563,962 149,601 6,932,735 11,704 5,407,612 76,105 60,463) ( 18,455 207,357) ( 124,217) ( 65,898 370,852 75,057 105,670 206,459	782 $ 36,628 514,058 55,420) ( 514,058 11,971) ( 555,489 27,628) ( 13,272) ( 39,637 5,329 245) ( 2,827,207 25,164) ( 8,669 - 3,024	- $ - - - - - - - - - - - - - - - -	Sub- subsidiary Sub- subsidiary Sub- subsidiary Subsidiary Sub- subsidiary Investments accounted for using equity method Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Sub- subsidiary Investments accounted for using equity method Sub- subsidiary Sub- subsidiary

Note: The amount of NTD exchanged from foreign currency in the table were exchanged with the exchange rate at financial reporting date except profit or loss was exchanged with the average exchange rate from January 1, 2021 to December 31, 2021.

Table 10 Page 2

Table 11

Expressed in thousands of NTD (Except as otherwise indicated)

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES Information on investments in Mainland China Year ended December 31, 2021

Amount remitted from

					Amount remitted from	Amount remitted from
Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2021	Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2021		Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2021	Net income of investee for the year ended December 31, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2021	Book value of investments in Mainland China as of December 31,2021	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2021	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Chicony Electronics (Dong Guan) Co., Ltd. Chicony Electronics (Suzhou) Co., Ltd. Chicony Electronics (Chong-Qing) Co., Ltd. Mao-Ray Electronics (Dong Guan) Co., Ltd. Suzhou Mao-Qun Electronics Co., Ltd. Suzhou Qun-Yang Electronics Co., Ltd. XAVi Technology (Suzhou) Co., Ltd. Chicony Power Technology (Dong Guan) Co., Ltd. Chicony Power Technology (Suzhou) Co., Ltd. Quang Sheng Electronics (Nangchang) Co., Ltd.	Manufacturing and sales of computer peripherals Manufacturing and sales of computer peripherals Manufacturing and sales of computer peripherals Manufacturing of electronic parts, keyboards and plastic products Manufacturing of electronic parts, keyboards and plastic products Manufacturing of electronic parts, keyboards and plastic products Manufacturing and sales of DSL bridges Manufacturing and sales of switching power supplies and other electronic parts Manufacturing and sales of switching power supplies and LED lighting equipment Manufacturing of switching power supplies and other electronics parts	322,150 $ 967,558 435,788 277,530 124,911 4,804 324,942 593,135 1,297,467 131,175	(Note 1) (2)A (2)C (2)A (2)B (2)D (2)D (2)F (2)E (2)E (2)E	317,555 $ 329,424 - 236,374 93,661 - 324,942 286,935 194,245 97,602	- $ - - - - - - - - -	- $ - - - - - - - - -	317,555 $ 329,424 - 236,374 93,661 - 324,942 286,935 194,245 97,602	126,790 $ 434,709 643,069 135,606 7,797) ( 8,015) ( 28,188) ( 131,240 342,404 9,753	100% 100% 100% 100% 60% 60% 45.34% 53.02% 53.02% 53.02%	126,790 $ (2)B 434,709 (2)B 643,069 (2)B 135,606 (2)B 4,678) ( (2)B 4,809) ( (2)B 12,780) ( (2)B 69,584 (2)B 181,543 (2)B 2,707 (2)B (Note 2) (Note 4)	4,134,218 $ 9,093,324 3,533,838 1,351,439 289,552) ( 89,571) ( 83,119 1,371,254 3,178,846 240,951	- $ - - - - - - - - -	- - - - - - - - - -

Table 11 Page 1

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2021	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2021	Net income of investee for the year ended December 31, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2021	Book value of investments in Mainland China as of December 31,2021	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2021	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Chicony Power Technology (Chong Qing) Co., Ltd. Chicony Energy Saving Technology (Shanghai) Co., Ltd. Chicony Power Technology Trading (Dong Guan) Co., Ltd. Chicony Power Technology Trading (Taizhou) Co., Ltd. WitsLight Technology (Kunshan) Co., Ltd. Zhuzhou Torch Auto Lamp Co., Ltd.	Manufacturing and sales of switching power supplies and LED lighting equipment Sales of LED lighting equipment Importing and exporting of switching power supplies, LED lighting equipment, and other electronic parts and smart building system business Researching and developing, manufacturing, sales, installation, aftersale, and advisory services of electric machinery, electric frequency device and industry automation equipment; manufacturing and sales of electrical machinery and components; import and export of goods and technique Manufacturing and sales of LED lighting modules Production and sales of automotive and motorcycle components, electric machine and device, lamps and plastic products	301,744 $ 44,379 10,491 90,030 331,859 228,654	(Note 1) (2)E (2)E (2)E (2)E (2)G (2)G	- $ - - - - -	- $ - - - - -	- $ - - - - -	- $ - - - - -	254,786 $ 817) ( 165 161,918) ( 13,843) ( 13,426) (	53.02% 53.02% 53.02% 53.02% 53.02% 53.02%	(Note 2) (Note 4) 135,088 $ (2)B 433) ( (2)B 87 (2)B 85,849) ( (2)B 8,737) ( (2)B 8,546) ( (2)B	1,890,037 $ 45,048 71 124,271) ( 169,335 164,318	- $ - - - - -	- - - - - -

Table 11 Page 2

Investment amount approved by the Ceiling on investments in Accumulated amount of remittance from Investment Commission of the Mainland China imposed by the Taiwan to Mainland China as of December Ministry of Economic Affairs Investment Commission of Company name 31, 2021 (Note 3) (MOEA) (Note 3) MOEA The Company $ 2,055,256 $ 3,063,955 $ 18,272,213 (USD 74,264 thousand) (USD 110,712 thousand)

Note 1: Investment methods are classified into the following three categories:

• (1) Directly invest in a company in Mainland China.

• (2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China, the investing companies includes:

• A. Chicony Overseas Inc.

• B. Real Young Elec. Co., Ltd.

C. Mao-Feng International Inc.

D. Global Faith Inc.

• E. Chicony Power Technology Hong Kong Limited(CPHK)

F. Directmax International Ltd.

• G. WitsLight Technology Co., Ltd..

• (3) Others.

Note 2: In the ‘Investment income (loss) recognised by the Company for the year ended December 31, 2021’ column:

(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.

(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories: A.The financial statements were audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.

B.The financial statements were audited and attested by R.O.C. parent company’s CPA. C.Others

Note 3: The numbers in this table are expressed in New Taiwan Dollars.

Note 4: Calculated based on the Company’s ending combined shareholding ratio.

Table 11 Page 3

CHICONY ELECTRONICS CO., LTD. AND SUBSIDIARIES

Major shareholders information

December 31, 2021

	December 31, 2021
Table 12 Name of major shareholders		Shares	Expressed in thousands of NTD (Except as otherwise indicated)
	Number of shares held(commen shares)	Number of shares held(preference shares)	Ownership (%)
Hsu, Kun-Tai	56,615,782	-	7.59%

Note 1: (1) The major shareholders' information was derived from the data using the Company issued common shares (including treasury shares) and preference shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation. The share capital which was recorded on the financial statements may different from the actual number of shares in dematerialised form due to the difference in calculation basis.

(2) If the aforementioned data contains shares which were kept in the trust by the shareholders, the data was disclosed as a separate account of the client which was set by the trustee. As for the shareholder who reports share equity as an insider

whose shareholding ratio was greater than 10% in accordance with Securities and Exchange Act, the shareholding ratio included the self-owned shares and trusted shares, at the same time, persons who have power to decide how to allocate the trust assets. For the information on reported share equity of insiders, please refer to the Market Observation Post System.

Table 12 Page 1