CHICONY — Audit Report / Information 2021

Nov 15, 2021

CHICONY ELECTRONICS CO., LTD.

PARENT COMPANY ONLY 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 parent company only balance sheets of Chicony Electronics Co., Ltd. (the “Company”) as at December 31, 2021 and 2020, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only 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 parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2021 and 2020 and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

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 parent company only financial statements section of our report. We are independent of the Company 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 the reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

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

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Key audit matters for the Company’s 2021 parent company only financial statements are stated as follows:

Valuation of inventory

Description

Refer to Notes 4(10), 5(2) and 6(5) for the description of accounting policy, critical accounting estimates, uncertainty of assumptions and details of accounts.

The Company’s main inventories are keyboard, camera modules and other electronic products. The prices of such inventories are affected by market demand and the rapid technological changes. Therefore, there is a 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 Company’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 determination 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.

Appropriateness of warehouse operating revenue cut-off

Description

Refer to Notes 4(32) and 6(23) for the accounting policies on revenue recognition, critical accounting assumptions and the details of revenue of the investments accounted for using equity method － of the Company Chicony Power Technology Co., Ltd., and its subsidiaries (the “CP Group”).

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The CP Group’s revenue arises from sales of goods, consisting mainly of factory direct shipment and warehouse sales income. 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 CP Group’s warehouses are located in multiple countries, and the revenue recognition process involves several manual operations. Thus, we considered the warehouse sales income 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. We evaluated the internal controls for regular reconciliation between the CP Group and its warehouse custodians.

2. We 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. We conducted warehouse inventory audit by using physical counts or using confirmation letters to validate inventory balances with the warehouse custodians.

Other matter – Reference to the audits of other auditors

We did not audit the financial statements of certain 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 associates, is based solely on the reports of the other auditors. The balance of these investments accounted for using equity method amounted to NT$1,085,293 thousand and NT$1,086,070 thousand, constituting 1.75% and 1.87% of the total assets as at December 31, 2021 and 2020, respectively, and the comprehensive income (including the share of profit (loss) of subsidiaries, associates and joint ventures accounted for using equity method and share of other comprehensive income (loss) of subsidiaries, associates and joint ventures accounted for using equity method) amounted to NT$33,482 thousand and NT$345,983 thousand, constituting 0.54% and 7.66% of the total comprehensive income for the years then ended, respectively.

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Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’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 Company or to cease operations, or has no realistic alternative but to do so.

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

Auditors’ responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material 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 Republic of China will always detect a material misstatement when it exists. Misstatements can arise from error or fraud 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 parent company only financial statements.

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

1. Identify and assess the risks of material misstatement of the parent company only 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

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resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

1. Obtain an understanding of internal control 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 Company’s internal control.

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

3. 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 Company’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 parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

5. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only 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 report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Chen, Ching Chang Weng, Shih-Jung

For and on behalf of PricewaterhouseCoopers, Taiwan March 9, 2022

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The accompanying parent company only 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 parent company only financial statements and report of independent accountants 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. PARENT COMPANY ONLY BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(3) 6(4) 6(4) 7 7 6(5) 6(2) 6(3) 6(6) 6(7) and 8 6(8) 6(9) and 8 8	December 31, 2021 $ 166,234 329,913 1,116,845 26,748 9,342,003 235,349 30,428 2,687,189 1,557,151 68,497 15,560,357 849,808 87,885 37,110,870 1,877,339 79,440 6,252,267 16,600 17,370 46,291,579 $ 61,851,936	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 1210 Other receivables - related parties 130X Inventories, net 1410 Prepayments 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 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 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets			$ 666,415 510,732 990,796 10,162 7,431,063 98,185 59,113 3,471,579 1,121,834 95,728
			14,455,607
			714,781 70,803 34,442,199 1,928,304 98,895 6,459,644 15,640 18,438
			43,748,704
			$ 58,204,311

(Continued)

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CHICONY ELECTRONICS CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

Notes December 31, 2021 December 31, 2020 $ 3,546 $ 3,663 321,073 273,124 7 16,040,633 15,945,736 6(11) 3,487,401 3,268,688 7 9,045,438 8,541,111 1,472,318 1,014,419 19,443 19,249 11,030 125,599 30,400,882 29,191,589 6(25) 401,164 532,416 61,186 80,629 6(13) 154,960 166,381 380,055 462,053 997,365 1,241,479 31,398,247 30,433,068 6(14) 7,452,927 7,394,603 6(15) 7,182,465 6,412,535 6(16) 6,102,860 5,560,152 4,252,574 3,290,829 9,974,608 9,665,615 6(17) ( 4,200,468) ( 4,241,214 ) 6(14) ( 311,277) ( 311,277 ) 30,453,689 27,771,243 9 11 $ 61,851,936 $ 58,204,311

Current liabilities 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 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 2640 Accrued pension liabilities 2670 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity 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 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 parent company only financial statements.

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CHICONY ELECTRONICS CO., LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

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

Items

Year ended December 31 Notes 2021 2020 6(18) and 7 $ 44,363,693 $ 36,581,549 6(5) and 7 ( 38,004,879) ( 30,442,599) 6,358,814 6,138,950 6(22)(23) and 7 ( 1,163,061) ( 1,169,047) ( 824,008) ( 1,091,177) ( 1,327,338) ( 1,248,962) 12(2) ( 2,341) ( 909) ( 3,316,748) ( 3,510,095) 3,042,066 2,628,855 6(19) and 7 17,251 24,063 6(20) and 7 334,778 289,681 6(21) 467,019 1,392,349 6(24) and 7 ( 44,773) ( 58,958) 6(6) 3,117,924 2,037,003 3,892,199 3,684,138 6,934,265 6,312,993 6(25) ( 779,839) ( 846,229) $ 6,154,426 $ 5,466,764 6(13) $ 9,880 $ 75 212,864 13,835 176,198 ( 275,791) 398,942 ( 261,881) 6(17) ( 356,285) ( 685,280) 6(17) ( 131) ( 2,078) ( 356,416) ( 687,358) $ 42,526 ( $ 949,239) $ 6,196,952 $ 4,517,525 6(26) $ 8.71 $ 7.80 $ 8.56 $ 7.68

4000 Sales revenue 5000 Operating costs 5950 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 7070 Share of profit of associates and joint ventures accounted for using equity method, net 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8311 Actuarial gains on defined benefit plans 8316 Unrealised gains from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method 8310 Other comprehensive income (loss) that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign operations 8380 Share of other comprehensive loss of associates and joint ventures accounted for using equity method 8360 Other comprehensive loss that will be reclassified to profit or loss 8300 Other comprehensive income (loss) for the year 8500 Total comprehensive income for the year Earnings per share (in NT dollars) 9750 Basic earnings per share 9850 Diluted earnings per share

The accompanying notes are an integral part of these parent company only financial statements.

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CHICONY ELECTRONICS CO., LTD. PARENT COMPANY ONLY 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 Disposal of financial assets at fair value through other comprehensive income Disposal of investment property 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 Disposal of financial assets at fair value through other comprehensive income Disposal of investment property Balance at December 31, 2021	Notes		Share capital - common stock		Capital surplus				Retained Earnings				Other Equity Interes	t		Treasurystocks		Total equity
							Legal reserve		Special reserve		Unappropriated retained earnings	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(17) 6(16) 6(14) 6(17) 6(16) 6(14)		$ 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

The accompanying notes are an integral part of these parent company only financial statements.

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CHICONY ELECTRONICS CO., LTD. PARENT COMPANY ONLY 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 Amortisation Impairment loss determined in accordance with IFRS 9 Interest income Dividend income Interest expense Net gain on financial assets and liabilities at fair value through profit or loss Share of profit of associates accounted for using equity method Gain on disposal of property, plant and equipment Gain on disposal of investment property Gain on fair value adjustment of investment property Changes in operating assets and liabilities Changes in operating assets Notes receivable, net Accounts receivable Accounts receivable - related parties Other receivables Other receivables - related parties Inventories, net Prepayments Changes in operating liabilities Notes payable Accounts payable Accounts payable - related parties Other payables Other payables - related parties Other current liabilities Defined benefit obligation - non-current Cash inflow (outflow) generated from operations Interest received Dividends received Interest paid Income tax paid Net cash flows from (used in) operating activities

YearendedDecember 31 Notes 2021 2020 $ 6,934,265 $ 6,312,993 6(7)(8)(22) 82,278 81,465 6(22) 17,851 16,519 12(2) 2,341 909 6(19) ( 17,251 ) ( 24,063 ) 6(21) ( 52,394 ) ( 30,589 ) 6(25) 44,773 58,958 6(2)(21) ( 114,611 ) ( 113,857 ) 6(6) ( 3,117,924 ) ( 2,037,003 ) 6(21) - ( 285 ) 6(21) ( 51,933 ) ( 222,225 ) 6(9)(21) ( 5,807 ) ( 25,479 ) ( 16,586 ) 1,150 ( 1,913,281 ) ( 2,664,192 ) ( 137,164 ) 109,352 28,685 9,254 667,150 ( 261,094 ) ( 435,317 ) 359,746 27,231 49,373 ( 117 ) - 47,949 ( 66,100 ) 94,897 ( 6,818,484 ) 768,283 786,619 96,161 ( 489,937 ) 169 ( 1,906 ) ( 1,541 ) ( 1,040 ) 2,948,107 ( 4,969,916 ) 17,251 24,063 988,485 731,285 ( 43,017 ) ( 58,320 ) ( 446,968 ) ( 125,303 ) 3,463,858 ( 4,398,191 )

(Continued)

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CHICONY ELECTRONICS CO., LTD. PARENT COMPANY ONLY 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 Proceeds from disposal of financial assets and liabilities at fair value through profit or loss Proceeds from disposal of financial assets and liabilities at fair value through other comprehensive income Acquisition of investments accounted for using equity method Proceeds from disposal of investments accounted for using equity method Return of capital from investments accounted for using equity method Decrease (increase) in other receivables - related parties Acquisition of property, plant and equipment Disposal of property, plant and equipment Acquisition of investment property Disposal of investment property Acquisition of intangible assets Decrease in refundable deposits Decrease in other non-current assets Net cash flows (used in) from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Increase in other payables - related parties Payment of cash dividends (Decrease) increase in guarantee deposits received Repayment of lease liabilities Net cash flows (used in) from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2021 2020 ($ 525,863 ) ($ 857,534 ) 686,266 939,713 69,734 558 ( 734,351 ) ( 689,894 ) 23,527 - - 138,979 117,240 ( 168,450 ) 6(9) ( 13,187 ) ( 19,590 ) - 427 ( 1,714 ) - 145,869 2,394,737 ( 18,811 ) ( 17,483 ) 5 38,484 1,063 6,597 ( 250,222 ) 1,766,544 - ( 600,000 ) 6(27) 408,166 7,547,283 6(16) ( 4,099,110 ) ( 4,362,815 ) ( 3,624 ) 981 6(27) ( 19,249 ) ( 19,058 ) ( 3,713,817 ) 2,566,391 ( 500,181 ) ( 65,256 ) 6(1) 666,415 731,671 6(1) $ 166,234 $ 666,415

The accompanying notes are an integral part of these parent company only financial statements.

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CHICONY ELECTRONICS CO., LTD. NOTES TO THE PARENT COMPANY ONLY 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 is engaged in the manufacturing and sales of keyboards and other computer peripheral components.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

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

3. 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:

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

Note: Earlier application from January 1, 2021 is allowed by the FSC.

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

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

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:	January 1, 2022
proceeds before intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a	January 1, 2022
contract’
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’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:

endorsed by the FSC are as follows:
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 Company’s financial condition and financial performance based on the Company’s assessment.

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

The parent company only financial statements of the Company have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

(2) Basis of preparation

• A. Except for the following items, these parent company only 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) 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 International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

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

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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.

• B. Translation of foreign operations

• (a) The operating results and financial position of all the 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 Company 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 Company 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.

(4) 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 of equity instruments do not affect its classification.

(5) Financial assets 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 Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

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

(6) 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 Company 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 Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value. The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) Accounts receivable

• A. Accounts and notes receivable entitle the Company 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 Company’s operating pattern of accounts receivable that are expected to be factored is for the

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purpose of selling, and the accounts receivable are subsequently measured at fair value, with any changes in fair value recognised in profit or loss.

(8) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income and accounts receivable that have a significant financing component, at each reporting date, the Company 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 Company recognises the impairment provision for lifetime ECLs.

(9) Derecognition of financial assets

The Company 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 Company 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 Company has not retained control of the financial asset.

(10) 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.

(11) Investments accounted for using equity method / subsidiaries, associates and joint ventures

• A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company 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.

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

• C. The Company’s share of its subsidiaries’ 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 Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

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• 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. Associates are all entities over which the Company 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 equity method and are initially recognised at cost.

• F. The Company’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.

• G. 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 Company’s ownership percentage of the associate, the Company recognises the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

• H. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’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 Company.

• I. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for using 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 Company’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.

• J. Upon loss of significant influence over an associate, the Company 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.

• K. When the Company 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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• L. When the Company 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.

• M. Pursuant to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the financial statements prepared with basis for consolidation. Owners’ equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the financial statements prepared with basis for consolidation.

• (12) 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 Company 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. Except for buildings and structures which have a useful life of 55 years, the estimated useful lives of other fixed assets are 2~7 years.

(13) 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 Company. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

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• 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 Company 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.

• 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.

(14) 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.

(15) Intangible assets

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 1~3 years.

(16) Impairment of non-financial assets

The Company 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. When the circumstances or reasons for recognizing 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.

(17) Borrowings

• A. Borrowings comprise long-term and short-term bank borrowings and other long-term and shortterm loans. 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

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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.

(18) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

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

(19) 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.

(20) 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.

(21) 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.

(22) 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 plan

For defined contribution plan, 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 plan

• 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 Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit net 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 government bonds (at the balance sheet date) of a currency and term consistent with the

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currency and term of the employment benefit obligations.

• ii. Remeasurements arising on defined benefit plan 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 Company’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 Company recognises expense as it can no longer withdraw an offer of termination benefits or it recognises relating 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 Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(23) 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 parent company only 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 Company 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

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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.

• 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 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.

(24) 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.

(25) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(26) Revenue recognition

• A. Sales of goods

• (a) Sales revenue of the Company are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion, 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 Company has objective evidence that all criteria for acceptance have been satisfied.

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• (b) According to the contracts with customers, as the time interval between the transfer of the committed goods or services and payment by the customer does not exceeds one year. The Company will not adjust the transaction prices for 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.

• B. Incremental costs of obtaining a contract

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

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’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 Company follows the guidance of IAS 40 ‘Investment property’ to determine the assets to be measured at fair value. Unless in extreme circumstances, there is a definite evidence that fair value od investment property cannot be reliably measured on an ongoing basis, all the investment property of the Company is measured at fair value after the initial recognition.

(2) Critical accounting estimates and assumptions

• A. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Company 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 Company’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.

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6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	December	31, 2021	December	31,2020
Cash on hand and revolving funds	$	354	$	348
Checking accounts and demand deposits		165,880		666,067
	$	166,234	$	666,415

• A. The Company 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. The Company has no cash and cash equivalents pledged to others.

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

Items December31,2021 Current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks 641,759 $ Unlisted stocks 20,809 662,568 Valuation adjustment 332,655) ( 329,913 $ Non-current items: Financial assets mandatorily measured at fair value through profit or loss Unlisted stocks 389,907 $ Beneficiary certificates 317,000 706,907 Valuation adjustment 142,901 849,808 $

December31,2020

781,128 $ 20,809 801,937 291,205) ( 510,732 $ 394,390 $ 267,000 661,390 53,391 714,781 $

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

Equity instruments Debt instruments Beneficiary certificates	2021 2020 107,092 $ 123,701 $ 3,264 - 4,255 9,844) ( 114,611 $ 113,857 $ Years endedDecember31,

• B. The Company has no financial assets at fair value through profit or loss pledged to others as collateral.

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• C. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

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

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Items December 31, 2021 December 31, 2020
Current items:
Listed stocks $ 1,032,775 $ 1,065,503
Valuation adjustment 84,070 ( 74,707)
$ 1,116,845 $ 990,796
Non-current items:
Listed stocks $ 859,750 $ 859,750
Unlisted stocks 129,000 129,131
988,750 988,881
Valuation adjustment ( 900,865) ( 918,078)
$ 87,885 $ 70,803
----- End of picture text -----

• A. The Company has elected to classify equity investments that are considered to be strategic investments or have 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 values of such investments were $1,116,845, $87,885 and $990,796, $70,803 at December 31, 2021 and 2020, respectively.

• B. The Company sold $69,734 and $558 of equity investments at fair value which resulted in cumulative gain (losses) on disposal of $36,874 and ($52) 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 gain (losses) reclassified to retained earnings due to derecognition Dividend income recognised in profit or loss held at end of year	2021 2020 212,864 $ 13,835 $ 36,874 $ 52) ($ 19,191 $ 14,813 $ Years endedDecember31,

• D. The Company 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) Notes and accounts receivable

				December	December	December	31,2021 December31,2020	31,2021 December31,2020	31,2021 December31,2020	31,2021 December31,2020
Notes receivable				$				26,748 $		10,162
Accounts receivable				$			9,378,219 $			7,464,938
Less: Allowance for uncollectible accounts			(					36,216) (		33,875)
				$			9,342,003 $			7,431,063
A. The ageing analysis of	accounts receivable and				notes	receivable that were				past due but n
impaired is as follows:
		December	31, 2021					December	31, 2020
		Accounts	Notes					Accounts		Notes
		receivable	receivable					receivable		receivable
Not past due	$	9,307,732	$		26,748		$	7,034,770	$	10,162
1 to 30 days		19,186				-		241,656		-
31 to 120 days		15,881				-		147,126		-
121 to 215 days		136				-		9,032		-
Over 365 days		35,284				-		32,354		-
	$	9,378,219	$		26,748		$	7,464,938	$	10,162

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

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 $4,812,058.

• C. The Company has no notes and 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 the Company’s notes and accounts receivable were equivalent to the carrying amount.

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

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(5) Inventories

Cost Raw materials 255 $ Finished goods 1,227,714 Merchandise inventory 418,535 1,646,504 $ Cost Finished goods 856,252 $ Merchandise inventory 373,647 1,229,899 $	Allowance for valuation loss - $ 80,991) ( 8,362) ( 89,353) ($ Allowance for valuation loss 82,955) ($ 25,110) ( 108,065) ($ December31,2021 December31,2020	Bookvalue 255 $ 1,146,723 410,173 1,557,151 $ Book value
		773,297 $ 348,537
		1,121,834 $

The cost of inventories recognised as expense for the year:

Cost of goods sold Loss on decline in market value	Years ended December31,	Years ended December31,
	2021 37,986,167 $ 18,712 38,004,879 $	2020
		30,438,901 $ 3,698
		30,442,599 $

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(6) Investments accounted for using equity method

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

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December 31, 2021 December 31, 2020
Shown as investments accounted for using
equity method
Subsidiaries
Chicony Overseas Inc. $ 24,725,937 $ 23,470,611
Chicony Electronics (Thailand) Co., Ltd. 885,868 544,240
Hipro Overseas (BVI) Inc. 2,555,646 2,593,190
XAVi Technology Corp. 303,798 291,398
Chicony Power Technology Co., Ltd. 4,914,875 4,015,643
Chicony Global Inc. 3,293,355 3,048,916
Unikey Electronics Co., Ltd. 431,391 478,201
$ 37,110,870 $ 34,442,199
Shown as other non-current liabilities
Subsidiaries
Hipro Electronics Ltd. $ 364,938 $ 443,310
----- End of picture text -----

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

			Years ended	December31,	December31,
			2021		2020
Subsidiaries
Chicony Overseas Inc.		$	1,364,908	$	981,748
Chicony Electronics (Thailand) Co., Ltd.			120,912		276,320
Hipro Overseas (BVI) Inc.			14,021		34,153
XAVi Technology Corp.			63,838		74,064
Chicony Power Technology Co., Ltd.			1,436,672		1,130,517
Chicony Global Inc.			314,383		266,534
Hipro Electronics Ltd.			16,261		16,392
Unikey Electronics Co., Ltd.	(		213,071)	(	742,725)
		$	3,117,924	$	2,037,003

• C. For the information about subsidiaries, refer to Note 4(3) of consolidated financial statements for the year ended December 31, 2021.

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(7) Property, plant and equipment

At January 1, 2021 Cost Accumulated depreciation and impairment 2021 Opening net book amount as at January 1 Additions Reclassifications Depreciation Closing net book amount as at December 31 At December 31, 2021 Cost Accumulated depreciation and impairment At January 1, 2020 Cost Accumulated depreciation and impairment 2020 Opening net book amount as at January 1 Additions Disposals Reclassifications Depreciation Closing net book amount as at December 31 At December 31, 2020 Cost Accumulated depreciation and impairment	Land 341,033 $ - 341,033 $ 341,033 $ - - - 341,033 $ 341,033 $ - 341,033 $ Land 327,859 $ - 327,859 $ 327,859 $ - - 13,174 - 341,033 $ 341,033 $ - 341,033 $	Buildings and structures	Testing equipment
		1,623,699 $ 111,729) ( 1,511,970 $ 1,511,970 $ - - 29,042) ( 1,482,928 $ 1,623,699 $ 140,771) ( 1,482,928 $ Buildings and structures	83,498 $ 60,364) ( 23,134 $ 23,134 $ 6,620 254 9,415) ( 20,593 $ 90,172 $ 69,578) ( 20,594 $ Testing equipment
		1,591,225 $ 83,278) ( 1,507,947 $ 1,507,947 $ - - 32,475 28,452) ( 1,511,970 $ 1,623,699 $ 111,729) ( 1,511,970 $	73,971 $ 51,205) ( 22,766 $ 22,766 $ 10,059 1) ( - 9,690) ( 23,134 $ 83,498 $ 60,364) ( 23,134 $

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• 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 Notes 6(12) and 8.

• (8) Leasing arrangements - lessee

• A. The Company leases various assets including buildings, business vehicles and multifunction printers. Rental contracts are typically made for periods of 1 to 8 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

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

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

Buildings and structures Buildings and structures	December 31, 2021 December31,2020 Bookvalue Bookvalue 79,440 $ 98,895 $ Years ended December 31,	December31,2020
		Bookvalue
		98,895 $
	2021 Depreciation expense 19,455 $	2020
		Depreciation expense
		19,455 $

• D. For the years ended December 31, 2021 and 2020, the Company has no additions to right-of-use assets.

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

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets	2021 2020 911 $ 1,102 $ 705 1,271 886 1,006 Years ended December 31,	2021 2020 911 $ 1,102 $ 705 1,271 886 1,006 Years ended December 31,
		2020 1,102 $ 1,271 1,006

• F. For the years ended December 31, 2021 and 2020, the Company’s total cash outflow for leases were $21,751 and $22,437, respectively.

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(9) Investment property

			2021			2020
At January 1		$	6,459,644		$	8,961,010
Additions – from subsequent expenditures			1,714			-
Disposal	(		214,898)	(		2,479,067)
Reclassifications			-	(		47,778)
Gain on fair value adjustment			5,807			25,479
At December 31		$	6,252,267		$	6,459,644

• A. Rental income from investment property and direct operating expenses arising from investment 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 ended December 31,	Years ended December 31,
	2021 132,488 $ 39,795 $ 17,033 $	2020
		128,702 $
		35,103 $
		19,264 $

B. Basis of investment property at fair value:

The Company’s investment properties are land and buildings of office building and residential compound building. Office buildings are located in Sanchong District and Wugu District in New Taipei City. They mainly earn from rental revenue with rental period ranging from 1 to 7 years. Residential compound building is located in Sanchong District in New Taipei City. The main purpose is for sale.

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The assumptions used for the years ended December 31, 2021 and 2020 are as follows:

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

			December31,2021
The subject	CEC Headquarter		Wugu Building	Chicony Laboratory
Location	Sanchong District,	New	Wugu District, New	Sanchong District, New
	Taipei City		Taipei City		Taipei City
Valuation	Income approach		Income approach	Income approach
method
Valuation firm	Colliers		Colliers		Colliers
Appraiser	Roy Ku		Ariel Ke		Carrie Chan
Evaluation	December 31, 2021		December 31, 2021	December 31, 2021
basis date
			December31,2020
The subject					Residential
			Chicony		Compound
	CEC Headquarter	WuguBuilding Laboratory			Building
Location	Sanchong	Wugu District, Sanchong			Sanchong
	District, New	New Taipei City District, New			District, New
	Taipei City		Taipei City		Taipei City
Valuation	Income approach	Income approach Income approach			Income approach
method
Valuation firm	Panasia		Panasia Panasia		Panasia
Appraiser	Min An, Yang	Shao	You, Chung Shao You, Chung		Min An, Yang
Evaluation	December 15,	December 15, December		15,	December 31,
basis date	2020 (Note)	2020 (Note) 2020 (Note)			2020

Note: We obtained validity statements of appraisal report as of December 31, 2020 from appraiser.

• (b) The Company’s office buildings’ (including car parks) fair value 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; includes 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, amortisation of agent fee and etc., is estimated based on the actual expenses incurred in the current year, taking into consideration 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 the Company’s office buildings (including car parks) and comparative rent information of similar properties are as follows:

The subject Estimated rent ($/3.3m2/month) Year ended December31,2021 CEC Headquarter $909~$1,017 Wugu Building $580~$680 Chicony Laboratory $750~$825 The subject Estimated rent ($/3.3m2/month) Year ended December31,2020 CEC Headquarter $898~$1,012 Wugu Building $282~$737 Chicony Laboratory $730 Residential Compound Building $840~$962	Similar comparative subjectin localor market	Occupancy rate 71.07% 100% 100% Occupancy rate	Income of past year
	Equivalent to estimated rent Equivalent to estimated rent Equivalent to estimated rent Similar comparative subject in local or market		109,613 $ 22,040 835 Income of past year
	Equivalent to estimated rent Equivalent to estimated rent Equivalent to estimated rent Equivalent to estimated rent	63.42% 100% 100% -	105,827 $ 22,040 835 -

• (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 range of rent growth rate and discount rate are as follows:

Rent growth rate Discount rate Rent growth rate Discount rate				December31,2021	December31,2021	ChiconyLaboratory 1.00% 2.845%	ChiconyLaboratory 1.00% 2.845%
		CECHeadquarter 1.00% 2.845%		WuguBuilding
		1.00% 2.845%		1.00% 3.00% December 31,2020
		CEC Headquarter	WuguBuilding		Chicony Laboratory		Residential Compound Building
		1.00% 2.23%	1.00% 2.90%		1.00% 2.40%		1.00% 2.12%

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

• D. Information about the investment property that was pledged to others as collateral is provided in Notes 6(12) and 8.

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(10) Short-term borrowings

• A. The Company had no short-term borrowings as of December 31, 2021 and 2020.

• B. As of December 31, 2021 and 2020, the Company had issued guarantee notes for the short-term borrowings amounting to $13,849,200 and $14,203,340, respectively.

(11) Other payables

Other payables
Salary payable and annual bonus Employees’ compensation and directors’ and supervisors’ remuneration payable Marketing allowance payable Storage charge payable Construction and equipment expense payable Insurance expense payable Freight charges and customs clearing fee payable Others	December31,2021 1,233,260 $ 995,636 475,981 111,506 89,117 53,211 40,755 487,935 3,487,401 $	December31,2020
		1,076,295 $ 895,434 678,581 93,728 170,490 46,012 46,758 261,390
		3,268,688 $

- (12) Long term borrowings

As of December 31, 2021 and 2020, the Company had no long-term borrowings while issued guarantee notes for the long-term borrowings amounted to $2,600,000 and $2,000,000, respectively.

In the fourth quarter of 2018, the Company 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 5 years, and the revolving loan facilities are $2,000,000, $1,000,000 and $1,000,000, respectively. For the credit lines mentioned above, the Company has pledged partial floors of the headquarters building as described in Note 8. As of December 31, 2021, the Company has not drawn the credit line.

(13) Pensions

• A. Defined benefit plan: Employee contributions

• (a) The Company has 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 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 contributes 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 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

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aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions 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	($	273,251)	($	288,749)
Fair value of plan assets		118,291		122,368
Net accrued pension liability	($	154,960)	($	166,381)

• (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	($	288,749)		$	122,368	($	166,381)
Current service cost	(	1,394)			-	(	1,394)
Interest (expense) income	(	1,083)			466	(	617)
	($	291,226)		$	122,834	($	168,392)
Remeasurements:
Return on plan assets
(excluding amounts included
in interest income or expense)		-			1,688		1,688
Change in demographic
assumptions	(	5,786)			-	(	5,786)
Change in financial
assumptions		5,428			-		5,428
Experience adjustments		8,550			-		8,550
		8,192			1,688		9,880
Pension fund contribution		-			3,552		3,552
Paid pension		9,783	(		9,783)		-
Balance at December 31	($	273,251)		$	118,291	($	154,960)

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	Present value of	Present value of
		defined benefit			Fair value of		Net defined
		obligations			planassets		benefitliability
Year ended December 31, 2020
Balance at January 1	($	284,256)		$	116,760	($	167,496)
Current service cost	(	1,444)			-	(	1,444)
Interest (expense) income	(	2,132)			890	(	1,242)
	($	287,832)		$	117,650	($	170,182)
Remeasurements:
Return on plan assets
(excluding amounts included
in interest income or expense)		-			4,235		4,235
Change in demographic
assumptions	(	55)			-	(	55)
Change in financial
assumptions	(	9,025)			-	(	9,025)
Experience adjustments		4,920			-		4,920
	(	4,160)			4,235		75
Pension fund contribution		-			3,726		3,726
Paid pension		3,243	(		3,243)		-
Balance at December 31	($	288,749)		$	122,368	($	166,381)

• (d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s 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-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitisation 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 has no right to participate in managing and operating that fund and hence the Company is 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:

	2021	2020
Discount rate	0.625%	0.375%
Future salary increases	2.500%	2.500%

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:

December 31, 2021 Effect on present value of defined benefit obligation December 31, 2020 Effect on present value of defined benefit obligation	Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25% 5,332) ($ 5,508 $ 5,317 $ 5,175) ($ 6,067) ($ 6,273 $ 6,039 $ 5,873) ($ Discount rate Future salaryincreases
	Increase 0.25% 5,332) ($ 6,067) ($

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 plan of the Company for the year ending December 31, 2022 amount to $3,627.

• (g) As of December 31, 2021, the weighted average duration of the retirement plan is 7.9 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	26,206 $ 5,567 93,163 66,714
	191,650 $

B. Defined contribution plan

• (a) Effective July 1, 2005, the Company has 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 contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension

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accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

  - (b) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2021 and 2020 were $44,944 and $43,355, respectively.

• (14) Share capital

• A. As of December 31, 2021, the Company’s authorised capital was $8,000,000, consisting of 800,000 thousand shares of ordinary stock and the paid-in capital was $7,452,927 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

  • Movements in the number of the Company’s ordinary shares outstanding are as follows (shares 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 (March 9, 2021), 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 (March 9, 2020), 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:

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

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December 31, 2020

Name of company holding the shares Reason for reacquisition UNIKEY For investment HEC For investment	Number of shares (inthousands) Carrying amount Fair value (in dollars) (per share) 21,174 205,795 $ 86.20 $ 16,189 105,482 86.20 37,363 311,277 $

• (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.

(15) 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 are 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 $

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(16) 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 with relevant regulations when necessary; and the remainder, if any, to be appropriated shall be proposed by the Board of Directors and resolved by the stockholders at the stockholders’ meeting.

• 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.

• B. The Company’s dividend policy is summarised below: As the Company is belongs to the continually evolving electronics industry, the dividend policy takes into consideration the capital requirement for new products as well as increase the return on shareholders’ investment. Therefore, the total amounts of stockholders’ dividends should not exceed 90% of the total distributable earnings, and then the cash dividend should not be less than 10% of the total amounts of stockholders’ dividends. The above mentioned restrictions will not to be applicable if total amounts of stockholders’ dividends are 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 Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently.

• D. The appropriations of 2020 and 2019 earnings had been resolved at the shareholders’ meeting on June 11, 2021 and June 10, 2020, respectively, and the details are summarised below:

Years ended December 31,

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

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The appropriations of 2020 earnings, aside from the cash dividends which have been resolved by the Board of Directors and shall only be reported to the shareholders, the remaining appropriations have 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.

• E. 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:

Legal reserve Special reserve Cash dividends	Dividends per share Amount (in dollars) 591,255 $ 13,076 4,586,263 6.10 $ YearendedDecember31,2021

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

(17) Other equity interest

				2021	2021
				Unrealised
		Currency	gains (losses)			Revaluation
		translation		onvaluation		increment		Total
At January 1	($	2,802,749)	($	2,815,388)	$	1,376,923	($	4,241,214)
Revaluation
- Company		-		212,864		-		212,864
- Subsidiary		-		176,481		-		176,481
- Transfer out		-		8,218		-		8,218
Currency translation
differences:
-Company	(	356,285)		-		-	(	356,285)
-Associates	(	131)		-		-	(	131)
Revaluation increment
- Transfer out		-		-	(	401)	(	401)
At December 31	($	3,159,165)	($	2,417,825)	$	1,376,522	($	4,200,468)

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					2020	2020	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
- Company		-			13,835			-		13,835
- Subsidiary		-	(		275,418)			-	(	275,418)
- Transfer out		-			44,132			-		44,132
Currency translation
differences:
-Company	(	685,280)			-			-	(	685,280)
-Associates	(	2,078)			-			-	(	2,078)
Revaluation increment
- Transfer out		-			-	(		4,744)	(	4,744)
At December 31	($	2,802,749)	($		2,815,388)		$	1,376,923	($	4,241,214)

(18) Operating revenue

Disaggregation of revenue from contracts with customers

Revenue from contracts with customers Electronic components products Consumer electronic products and other electronic products Others	Years endedDecember31,	Years endedDecember31,
	2021 10,144,088 $ 32,466,587 1,753,018 44,363,693 $	2020
		8,686,552 $ 26,143,785 1,751,212
		36,581,549 $

(19) Interest income

Interest income from bank deposits Other interest income

Years ended December31,	Years ended December31,
2021 146 $ 17,105 17,251 $	2020
	269 $ 23,794
	24,063 $

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(20) Other income

Other income
Rental revenue Dividend income Others	Years ended December31,
	2021 132,488 $ 52,394 149,896 334,778 $	2020
		128,702 $ 30,589 130,390
		289,681 $

(21) Other gains and losses

Other gains and losses
			Years ended	December31,
			2021		2020
Net gain on financial assets and liabilities at
fair value through profit or loss - other		$	114,611	$	113,857
Net currency exchange gain			310,984		1,035,063
Gain on disposal of property, plant and
equipment			-		285
Gain on disposal of investment property			51,933		222,225
Gain on fair value adjustment of investment
property			5,807		25,479
Others	(		16,316)	(	4,560)
		$	467,019	$	1,392,349

(22) Expenses by nature

Expenses by nature
Employee benefit expense Employee benefit expense Depreciation charges on property, plant and equipment and right-of-use asset Amortisation on intangible assets Wages and salaries Labor and health insurance fees Pension costs Directors’ and supervisors’ remuneration Other personnel expenses	Years ended December31,
	2021 2020 2,114,460 $ 2,326,528 $ 82,278 81,465 17,851 16,519 Years ended December 31,	2020
	2021 1,854,072 $ 97,317 46,955 58,082 58,034 2,114,460 $	2020
		1,935,402 $ 89,475 46,041 52,656 52,954
		2,176,528 $

(23) Employee benefit expense

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

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employees’ compensation and shall not be higher than 1% for directors’ and supervisors’ remuneration.

• B. For the years ended December 31, 2021 and 2020, employees’ compensation was accrued at $934,885 and $847,551, respectively; directors’ and supervisors’ 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’ and supervisors’ remuneration resolved by the Board of Directors were $934,885 and $58,082, respectively, and the employees’ compensation will be distributed in the form of cash and shares.

• C. Employees’ compensation of $847,551 and directors’ and supervisors’ 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 price of $94.3 (in dollars).

• Information about employees’ compensation and directors’ and supervisors’ 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.

• D. As of December 31, 2021 and 2020, the Company had 844 and 864 employees, respectively. There were both 6 directors who have not served as employees as of December 31, 2021 and 2020.

• E. (a) Average employee benefit expense in 2021 and 2020 was $2,454 and $2,475, respectively.

• (b) Average employee salaries in 2021 and 2020 were $2,212 and $2,256, respectively.

• (c) Adjustment of average employee salaries was (2%).

• (d) Directors who have not served as employees were not included in the calculation of the abovementioned average employee benefit expense and employee salaries.

• (e) The Company has no supervisors’ remuneration as it has set up an audit committee.

• F. The Company’s remuneration policy is as follows:

• Remuneration of directors (including independent directors) includes rewards and directors’ remuneration from earnings distribution. The remuneration is determined by the remuneration committee after considering directors’ participation in the operation of the Company and the value of their contribution to the Company. Remuneration of general manager and vice general manager includes salaries, bonuses, employees’ compensation and pensions contributed under regulations. The remuneration is determined by the remuneration committee after considering the Company’s annual operating revenue, profit performance and the achievement of the managers’ performance goals and referring to the performance and the general pay levels of the industry. Remuneration of employees includes monthly salaries, bonuses and employees’ compensation. The salary standard of the employees is determined based on the position, education and

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experience background, professional knowledge and market value. The employees’ compensation will be distributed in the form of shares or cash as resolved by the Board of Directors. The Company appraises performance of its employees regularly every year to make sure it knows well about its employees’ working performance and uses the appraisal as basis for promotion, training development and remuneration distribution.

Remuneration of directors and managers as well as employees’ compensation are reported to the Board of Directors for resolution after being discussed by the remuneration committee.

(24) Finance costs

Interest expense Bank loan Lease liability Others	2021 2020 9,900 $ 14,704 $ 911 1,102 33,962 43,152 44,773 $ 58,958 $ Years ended December 31,

(25) Income tax

A. Income tax expense

ome tax Income tax expense
		Years ended	December31,
		2021		2020
Current tax:
Current tax on profits for the year	$	975,885	$	981,353
Tax on undistributed earnings		-		7,652
Prior year income tax overestimation	(	70,200)	(	75,055)
Income tax expense		905,685		913,950
Deferred tax:
Origination and reversal of temporary
differences	(	125,846)	(	67,721)
Income tax expense	$	779,839	$	846,229
Reconciliation between income tax expense and	accounting profit
		Years ended	December31,
		2021		2020
Tax calculated based on profit before tax and	$	1,386,853	$	1,262,599
statutory tax rate
Prior year income tax overestimation	(	70,200)	(	75,055)
Tax on undistributed earnings		-		7,652
Effect from items adjusted in accordance with
tax regulation	(	536,814)	(	348,967)
Income tax expense	$	779,839	$	846,229

B. Reconciliation between income tax expense and accounting profit

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

						2021	2021
							Recognised
								in other
			Recognised in				comprehensive
		January 1	profit or			loss		income		December 31
Temporary differences:
- Deferred tax liabilities:
Fair value adjustment of	($	376,272)	$	73,725			$	5,406		($	297,141)
investment property
Unrealised exchange gain	(	156,144)		52,121					-	(	104,023)
	($	532,416)	$	125,846			$	5,406		($	401,164)
							2020
						Recognised in
		January1				profit		or loss		December31
Temporary differences:
- Deferred tax liabilities:
Fair value adjustment of		($	503,041)			$		126,769	($		376,272)
investment property
Unrealised exchange gain		(	97,096)		(			59,048)	(		156,144)
		($	600,137)			$		67,721	($		532,416)

• D. The amounts of deductible temporary differences that were not recognised as deferred tax assets are as follows:

Deductible temporary differences	December31,2021 971,589 $	December31,2020
		990,302 $

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

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(26) Earnings per share

Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Assumed conversion of all dilutive potential ordinary shares Employees’ bonus Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Assumed conversion of all dilutive potential ordinary shares Employees’ bonus Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary shares outstanding Earnings per share Amount aftertax (sharesinthousands) (indollars) 6,154,426 $ 706,843 8.71 $ - 12,446 6,154,426 $ 719,289 8.56 $ Year ended December31,2021 Year ended December31,2020	Weighted average number of ordinary shares outstanding Earnings per share Amount aftertax (sharesinthousands) (indollars) 6,154,426 $ 706,843 8.71 $ - 12,446 6,154,426 $ 719,289 8.56 $ Year ended December31,2021 Year ended December31,2020
	Weighted average number of ordinary shares outstanding Amount aftertax (sharesinthousands) 5,466,764 $ 701,161 - 10,767 5,466,764 $ 711,928	Earnings per share (indollars)
		7.80 $
		7.68 $

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(27) Changes in liabilities from financing activities

Changes in liabilities from financing activities
Lease Other payables - liability related parties At January 1 99,878 $ 8,276,526 $ Changes in cash flow from financing activities 19,249) ( 408,166 At December 31 80,629 $ 8,684,692 $ Short-term Lease Other payables - borrowings liability related parties At January 1 600,000 $ 118,936 $ 729,243 $ Changes in cash flow from financing activities 600,000) ( 19,058) ( 7,547,283 At December 31 - $ 99,878 $ 8,276,526 $ 2020 2021	Total 8,376,404 $ 388,917 8,765,321 $ Total
	1,448,179 $ 6,928,225
	8,376,404 $

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties

Relationship withthe Company

Chicony Electronics (DongGuan) Co., Ltd. Chicony Electronics (Suzhou) Co., Ltd. Chicony Electronics (Chong-Qing) Co., Ltd. Mao-Ray Electronics (DongGuan) Co., Ltd. Unikey Electronics Co., Ltd. Hipro Electronics Ltd. Quansun Investment Corp. Ltd. Chicony Electronics (Thailand) Co., Ltd Chicony Global Inc. Chicony Overseas Inc. Mao-Feng International Inc. Real Young Electronics Co., Ltd ShunOn Electronic Co. Clevo Co. Hongwell

Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Other related party Other related party Other related party

Note: For the rest of the names of and relationship with related parties, please refer to Note 4(3) of consolidated financial statements.

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(2) Significant related party transactions

A. Operating revenue:

Sales of goods: - Subsidiaries - Other related parties Sales of services: - Chicony Global Inc. - Chicony Electronics (Suzhou) Co., Ltd. - Other subsidiaries	2021 2020 41 $ 4,862 $ 3,999 2,196 1,462,224 1,639,600 155,772 28,824 77,952 74,484 1,699,988 $ 1,749,966 $ Years endedDecember31,

The price, terms of the sale and related contracts with related parties were the same with those to third parties, with reasonable rebates. In general, the collection periods ranged from 60 to 90 days. However, extension is given depending on the financial situation of related parties.

B. Purchases:

Purchases:
Purchases of goods: - Chicony Electronics (Suzhou) Co., Ltd. - Chicony Electronics (Thailand) Co., Ltd. - Chicony Electronics (DongGuan) Co., Ltd. - Mao-Ray Electronics (DongGuan) Co., Ltd. - Other subsidiaries	Years ended December 31,
	2021 12,914,490 $ 9,206,574 8,749,523 4,898,968 329,563 36,099,118 $	2020
		10,251,441 $ 6,832,902 6,539,090 4,354,564 298,240
		28,276,237 $

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

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C. Receivables from related parties:

Accounts receivable: - Chicony Electronics (Suzhou) Co., Ltd. - Chicony Electronics (Chong-Qing) Co., Ltd. - Other subsidiaries - Other related parties Other receivables - Real Young Electronics Co., Ltd - Chicony Global Inc. - Other subsidiaries	December31,2021 December31,2020 158,284 $ 26,943 $ 77,065 71,185 - 7 - 50 235,349 98,185 230,873 505,318 186,856 574,219 21,700 27,042 439,429 1,106,579 674,778 $ 1,204,764 $

Other non-operating receivables due from related parties mainly arose from payments on behalf of others, management consulting service income, office rental income (no interest charged) and interest receivables from loans to related parties.

D. Payables to related parties:

Accounts payable: - Chicony Electronics (Suzhou) Co., Ltd. - Chicony Electronics (DongGuan) Co., Ltd. - Chicony Electronics (Thailand) Co., Ltd - Mao-Ray Electronics (DongGuan) Co., Ltd. - Other subsidiaries - Other related parties Other payables: - Chicony Electronics (DongGuan) Co., Ltd. - Other subsidiaries	December31,2021 7,181,968 $ 6,520,180 1,411,756 839,662 87,067 - 16,040,633 270,280 90,466 360,746 16,401,379 $	December31,2020
		6,793,433 $ 5,025,106 1,023,161 2,997,522 106,502 12
		15,945,736
		141,899 122,686
		264,585
		16,210,321 $

(a) The payables from related parties arise mainly from purchase transactions. The credit term is limited from 60 to 180 days after the date of transaction. The payables are unsecured in nature and bear no interest.

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• (b) Other accounts payable to related parties mainly arose from service expense, collection of payments on behalf of others, payments on behalf of related parties and interest payable on loans.

• E. Service purchase – commission, maintenance and repair services and marketing service expense (shown as ‘Selling expenses’)

Subsidiaries	Years ended December31	Years ended December31
	2021 16,920 $	2020
		35,538 $

• F. Lease transactions - lessor

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

Lessee Leased object Lease payment Lease term Subsidiaries Buildings and structures $ 99~3,917/ month 2020.10.01~2023.12.31 Other related parties Buildings and structures $ 213/ month Less than one year

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

s as follows:
Subsidiaries Other related parties	Years ended December31
	2021 61,936 $ 2,573 64,509 $	2020
		62,409 $ 854
		63,263 $

• G. Management consulting service income (shown as ‘Miscellaneous income - others’)

G. Management consulting service income (shown as	‘Miscellaneous income - others’)	‘Miscellaneous income - others’)
H. Dividend income Subsidiaries Subsidiaries (shown as deductions from ‘Investments accounted for using equity method’) Other related parties (shown as ‘Other income’)	Years ended December31
	2021 2020 23,634 $ 22,143 $ Years endedDecember31	2020
		22,143 $
	2021 936,091 $ 7,860 943,951 $	2020
		700,696 $ 5,240
		705,936 $

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I. Dividend expenditure

Subsidiaries (shown as ‘Addition to investments accounted for using equity method’)

Years ended December 31 2021 2020 $ 205,497 $ 220,443

• J. Financing

• (a) Loans to related parties:

  • i. Outstanding balance:

Outstanding balance:
Unikey Electronics Co., Ltd. Quansun Investment Corp. Ltd. Hipro Electronics Ltd. Other subsidiaries	December31,2021 1,008,760 $ 600,000 445,000 194,000 2,247,760 $	December31,2020
		1,132,000 $ 604,000 435,000 194,000 2,365,000 $

ii. Interest income:

Interest income:
Unikey Electronics Co., Ltd. Quansun Investment Corp. Ltd. Hipro Electronics Ltd. Other subsidiaries	Years ended December 31,
	2021 7,917 $ 4,413 3,245 1,530 17,105 $	2020
		11,013 $ 5,646 1,163 5,972
		23,794 $

The loans to associates are repayable monthly over 2 years and carry interest at 0.8%~1% per annum for the year ended December 31, 2020. However, the loans do not carry interest starting from June 2021.

• (b) Loans from related parties:

• i. Outstanding balance:

Outstanding balance:
Chicony Overseas Inc. Chicony Global Inc. Mao-Feng International Inc. Other subsidiaries	December31,2021 3,346,461 $ 2,297,025 1,948,043 1,093,163 8,684,692 $	December31,2020
		3,389,329 $ 2,391,505 1,987,462 508,230
		8,276,526 $

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ii. Interest expense:

Interest expense:
		Years ended	December31,
		2021		2020
Chicony Overseas Inc.	$	14,449	$	18,597
Chicony Global Inc.		9,800		14,407
Mao-Feng International Inc.		7,958		8,792
Other subsidiaries		1,755		1,356
	$	33,962	$	43,152

The loans from associates are repayable monthly over 2 years and carry interest at 0.8%~1% per annum for the year ended December 31, 2020. However, the loans do not carry interest starting from June 2021.

K. Endorsements and guarantees and commitments

As of December 31, 2021 and 2020, the credit guarantee provided by the Company to subsidiaries’ borrowings are as follows:

orrowings are as follows:
Subsidiaries	Years ended December 31,
	2021 - $	2020
		338,820 $

(3) Key management compensation

Salaries and other short-term employee benefits Termination benefits Share-based payments	Years ended December 31,	Years ended December 31,
	2021 108,503 $ 1,562 126,138 236,203 $	2020
		95,778 $ 1,689 122,756
		220,223 $

8. PLEDGED ASSETS

The Company’s assets pledged as collateral are as follows:

Pledged asset Refundable deposits (shown as “Other non-current assets”) Property, plant and equipment Investment property	December31,2021 December31,2020 Purpose 6,331 $ 6,326 $ Bid bond and margin for operating lease 515,446 523,726 Long-term borrowings 4,314,958 4,320,404 Long-term borrowings 4,836,735 $ 4,850,456 $ Bookvalue
	December31,2021 6,331 $ 515,446 4,314,958 4,836,735 $

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

In addition to the information in Notes 6(10) and 6(12), more information on significant commitments

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and contingencies is disclosed as follows:

• (1) As of December 31, 2021, for bank loans, financing forward exchange contracts, bill purchased and commercial paper issuance, the Company provided standby promissory notes payable totaling $18,368,435 as security.

• (2) As of December 31, 2021, the capital expenditures that have not yet been incurred amounted to $14,258.

10. SIGNIFICANT DISASTER LOSS

None.

1. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

On March 9, 2022, the Board of Directors during its meeting resolved the distribution of 2021 earnings and proposed the distribution of employees’ compensation and directors’ and supervisors’ remuneration. The information is provided in Notes 6(16) and 6(23).

12. OTHERS

• (1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’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 Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Company 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.

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(2) Financial instruments

A. Financial instruments by category

==> picture [462 x 456] intentionally omitted <==

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

December 31, 2021 December 31, 2020
Financial assets
Financial assets mandatorily measured at
fair value through profit or loss - current $ 329,913 $ 510,732
Financial assets at fair value through
other comprehensive income - current 1,116,845 990,796
Financial assets mandatorily measured at
fair value through profit or loss - non-current 849,808 714,781
Financial assets at fair value
through other comprehensive income
- non-current 87,885 70,803
Financial assets at amortised cost
Cash and cash equivalents 166,234 666,415
Notes receivable 26,748 10,162
Accounts receivable (including related 9,577,352 7,529,248
parties)
Other receivables (including related 2,717,617 3,530,692
parties)
Guarantee deposits paid 6,331 6,326
$ 14,878,733 $ 14,029,955
December 31, 2021 December 31, 2020
Financial liabilities
Financial liabilities at amortised cost
Notes payable 3,546 3,663
Accounts payable (including related 16,361,706 16,218,860
parties)
Other payables (including related parties) 12,532,839 11,809,799
Lease liability 80,629 99,878
$ 28,978,720 $ 28,132,200
----- End of picture text -----

B. Financial risk management policies

(a) The Company’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 Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency swap contracts are used to hedge certain exchange rate risk. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

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• (b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close co-operation with the Company’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. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Company 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 Company treasury. Exchange rate risk is measured through a forecast of highly probable USD and RMB expenditures. Forward foreign exchange contracts are adopted to minimise the volatility of the exchange rate affecting cost of forecast inventory purchases.

• iii. The Company’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD). 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: functional currency) Financial assets Monetary items USD:NTD Non-Monetary items USD:NTD THB:NTD Financial liabilities Monetary items USD:NTD (Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-Monetary items USD:NTD Financial liabilities Monetary items USD:NTD	December 31,2021	December 31,2021	December 31,2021	Year ended December 31,2021	Year ended December 31,2021	Year ended December 31,2021
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)		Sensitivityanalysis
				Degree of variation	Effect on profit or loss	Effect on other comprehensive income
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)		Sensitivityanalysis
				Degree of variation	Effect on profit or loss	Effect on other comprehensive income
	USD 290,397 USD 1,038,476 USD 883,405	~60~ 28.235 28.235 28.235	$ 8,199,359 $ 29,321,360 $ 24,942,940	1% 1% 1%	$ 81,994 $ - $ 249,429	$ - $ 293,214 $ -

Total exchange gain (loss), including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2021 and 2020, amounted to $310,984 and $1,035,063, respectively.

Price risk

• i. The Company’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 Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

• ii. The Company’s investments in equity securities comprise shares and open-end funds issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2021 and 2020 would have increased/decreased by $11,797 and $12,255, 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 $12,047 and $10,616, 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 Company’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company 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 Company’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, there would be no impact on other comprehensive income for the years ended December 31, 2021 and 2020.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Company 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 fair value through profit or loss.

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• ii. According to the Company’s internal management policy, the Company only trade with the good credit bank. According to the credit policy, each local entity in the Company 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.

• iii. The Company 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 Company classifies customer’s accounts receivable, contract assets and rents receivable in accordance with customer types. The Company applies the simplified approach using the provision matrix to estimate expected credit loss.

• v. According to the Company’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 Company used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable, contract assets and lease payments receivable. On December 31, 2021 and 2020, the provision matrix is as follows:

December 31, 2021 Not past due 1 to 30 days past due 31 to 120 days past due 121 to 215 days past due Over 360 days past due	Expected lossrate 0%~0.1% 0.26% 0.36% 8.33% 100%	Total book value 9,543,081 $ 19,186 15,881 136 35,284 9,613,568 $	Loss allowance
			43 $ 50 828 11 35,284
			36,216 $

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	Expected		Total book		Loss
	loss rate		value		allowance
December 31, 2020
Not past due	0%~0.3%	$	7,132,955	$	-
1 to 30 days past due	2%~5%		241,656		243
31 to 120 days past due	3%~10%		147,126		375
121 to 125 days past due	10%~20%		9,032		903
Over 360 days past due	100%		32,354		32,354
		$	7,563,123	$	33,875

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

At January 1 Provision for impairment loss At December 31	2021 Accounts receivable 33,875 $ 2,341 36,216 $	2020
		Accounts receivable
		32,966 $ 909
		33,875 $

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’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 Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable external regulatory or legal requirements.

• ii. Company 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 Company held money market position of $1,612,638 and $2,167,595, respectively, that are expected to readily generate cash inflows for managing liquidity risk.

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iii. The Company has the following undrawn borrowing facilities:

Expiring within one year Expiring beyond one year	December31,2021 13,849,200 $ 4,000,000 17,849,200 $	December31,2020 14,203,340 $ 4,000,000
		18,203,340 $

• iv. The table below analyses the Company’s non-derivative financial liabilities and netsettled 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 non-derivative 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: Less than 1 year Over 1 year - Accounts payable $ 16,361,706 $ (including related parties) - Other payables 12,532,839 (including related parties) Lease liability 20,160 62,160 December 31, 2020 Non-derivative financial liabilities: Less than 1 year Over 1 year - Accounts payable $ 16,218,860 $ (including related parties) - Other payables 11,809,799 (including related parties) Lease liability 20,160 82,320

(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 Company’s investment in listed stocks (including emerging stocks), beneficiary certificates and convertible bonds, is included in Level 1.

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• 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 Company’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 Company’s investment in certain derivative instruments 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 (including related parties), short-term borrowings, notes payable, accounts payable and other payables (including related parties) are approximate to their fair values.

• C. The related information on financial instruments at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:

• (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 Financial assets mandatorily measured at fair value through profit or loss - non-current Equity securities Beneficiary certificates Financial assets measured at fair value through other comprehensive income - current Equity securities Financial assets measured at fair value through other comprehensive income - non-current Equity securities Investment property (Note)	Level 1 329,913 $ - 79,959 1,116,845 - - 1,526,717 $	Level 2 - $ - - - 23,192 - 23,192 $	Level3 - $ 613,396 156,453 - 64,693 6,252,267 7,086,809 $	Total
				329,913 $ 613,396 236,412 1,116,845 87,885 6,252,267
				8,636,718 $

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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 Financial assets mandatorily measured at fair value through profit or loss - non-current Equity securities Beneficiary certificates Financial assets measured at fair value through other comprehensive income - current Equity securities Financial assets measured at fair value through other comprehensive income - non-current Equity securities Investment property (Note)	Level 1 510,732 $ - 18,090 990,796 - - 1,519,618 $	Level 2 - $ - - - 10,899 - 10,899 $	Level3 - $ 532,624 164,067 - 59,904 6,459,644 7,216,239 $	Total
				510,732 $ 532,624 182,157 990,796 70,803 6,459,644
				8,746,756 $

Note: Investment property measured at fair value.

(b) The methods and assumptions the Company used to measure fair value are as follows: The instruments the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

==> picture [446 x 44] intentionally omitted <==

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

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

						2021
			Beneficiary			Equity
			certificates			securities			Total
At January 1		$	164,067		$	592,528		$	756,595
Sold during the year			-	(		8,266)	(		8,266)
(Losses) gains recognised in profit
or loss	(		7,614)			88,907			81,293
Gains recognised in other
comprehensive income			-			4,920			4,920
At December 31		$	156,453		$	678,089		$	834,542
Movement of unrealised gain or
loss in profit or loss of assets
and liabilities held as at
December 31, 2021 (Recorded
under other gains and losses)	($		7,614)		$	88,907		$	81,293
						2020
			Beneficiary			Equity
			certificates			securities			Total
At January 1		$	84,060		$	598,812		$	682,872
Acquired during the year			87,000			-			87,000
Sold during the year			-	(		23,473)	(		23,473)
(Losses) gains recognised in profit
or loss	(		6,993)			37,779			30,786
Gains recognised in other
comprehensive income			-	(		20,590)	(		20,590)
At December 31		$	164,067		$	592,528		$	756,595
Movement of unrealised gain or
loss in profit or loss of assets
and liabilities held as at
December 31, 2020 (Recorded
under other gains and losses)	($		6,993)		$	37,779		$	30,786

For the information on investment property movement in level 3, please refer to Note 6(9).

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

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

Unlisted shares " Venture capital shares Private equity fund investment Investment property Unlisted shares " Venture capital shares Private equity fund investment Investment property equity instrument: Non-derivative Non-derivative equity instrument:	Fair value at December 31,2021	Valuation technique Market approach Net asset value Income approach Valuation technique Net asset value	Significant unobservable input	Range (weighted average)	Relationship of inputs to fairvalue
	$ 2,646 675,443 6,252,267 Fair value at December 31,2020 $ 6,725 585,803 6,459,644 156,453 164,067		Discount for lack of marketability N/A Revenue growth rate, discount rate Significant unobservable input N/A	- - - Range (weighted average) - - - - -	The higher the discount for lack of marketability, the lower the fair value 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 fairvalue N/A
		Market approach Net asset value Income approach Net asset value	Discount for lack of marketability N/A Revenue growth rate, discount rate N/A		The higher the discount for lack of marketability, the lower the fair value N/A The higher the revenue growth rate, the higher the fair value; the higher the discount rate, the lower the fair value N/A

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• H. The Company 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:

Financial assets Equity instruments Beneficiary certificates	Input	Change ±1% ±1%		December	31,2021	31,2021
			Recognised in		Recognised in other comprehensive income
					Favourable Unfavourable change change 647 $ 647) ($ - - 647 $ 647) ($	Unfavourable change
	Market approach, Net asset value

Financial assets Equity instruments Beneficiary certificates	Input	Change ±1% ±1%		December	31,2020	31,2020
			Recognised in		comprehensive income Recognised in other
					Favourable Unfavourable change change 599 $ 599) ($ - - 599 $ 599) ($	Unfavourable change
	Market approach, Net asset value

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 NT$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:

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Please refer to table 8.

• I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Notes 6(2) and 6(22) in the consolidated financial statements.

• 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

Not applicable.

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CHICONY ELECTRONICS CO., LTD.

DETAILS OF FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS – CURRENT YEAR ENDED DECEMBER 31, 2021

(In thousands of New Taiwan dollars)

==> picture [754 x 195] intentionally omitted <==

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

No. of shares/sheets/ Face Acquisition Fair value
Name of financial instrument Summary units (Note) value Amount Interest rate Cost Unit price Amount
Listed stocks
Laster Tech Corporation Ltd. 5,247 $ 462,326 $ 44.05 $ 231,130
MOSA INDUSTRIAL CORPORATION 445 25,741 42.15 18,757
Newmax Technology Co., Ltd. 1,244 82,332 39.45 49,060
Wiwynn Corporation 6 5,530 1,115.00 6,690
Solomon Technology Corporation 694 13,589 23.90 16,587
ASLAN Pharmaceuticals Limited 220 52,241 31.00 6,819
$ 641,759 $ 329,043
Unlisted stocks
JHL Biotech Inc. Taiwan 290 $ 20,809 3.00 $ 870
$ 662,568 $ 329,913
Note: In thousand shares/thousand sheet/thousand units
----- End of picture text -----

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CHICONY ELECTRONICS CO., LTD.

DETAILS OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME – CURRENT YEAR ENDED DECEMBER 31, 2021

(In thousands of New Taiwan dollars)

Name of financial instrument Listed stocks Clevo Co. Genesis Photonics Inc. AcBel Polytech Inc. ShunOn Electronic Co. Alcor Micro Corp.	No. of shares/sheets/ Summary units(Note) 13,101 304 3,727 10,802 1,056	Face value	Amount	Interest rate		Acquisition Cost Unitprice 564,540 $ 33.00 $ 21,350 8.39 172,043 36.60 233,288 44.60 41,554 60.40 1,032,775 $ Fair	Amount value	Amount value
								432,320 $ 2,554 136,408 481,781 63,782 1,116,845 $

Note: In thousand shares/thousand sheet/thousand units

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CHICONY ELECTRONICS CO., LTD. DETAILS OF ACCOUNTS RECEIVABLE DECEMBER 31, 2021

(In thousands of New Taiwan dollars)

Client Name	Summary Amount 2,063,841 $ 1,650,608 868,852 821,222 700,145 3,273,551 9,378,219 36,216) ( 9,342,003 $ 77,065 $ 158,284 235,349 $	Remark
Client A Company B Company C Company D Company E Company Others Less: Allowance for doubtful accounts Related parties Chicony Electronics (Chong-Qing) Co., Ltd. Chicony Electronics (Suzhou) Co., Ltd.		Amount past due over one year is $35,284 Each individual customer balance did not exceed 5% of the account balance.

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CHICONY ELECTRONICS CO., LTD. DETAILS OF OTHER RECEIVABLES – RELATED PARTY DECEMBER 31, 2021

(In thousands of New Taiwan dollars)

==> picture [498 x 14] intentionally omitted <==

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

Items Summary Amount Remark
----- End of picture text -----

Unikey Electronics Co., Ltd. Quansun Investment Corp. Ltd. Hipro Electronics Ltd. Real Young Electronics Co., Ltd. Qun-Jing Power Co., Ltd. Chicony Global Inc. Others	1,010,966 $ 601,223 445,933 230,873 194,395 186,856 16,943 2,687,189 $

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CHICONY ELECTRONICS CO., LTD. DETAILS OF INVENTORIES DECEMBER 31, 2021

(In thousands of New Taiwan dollars)

			Amount	Amount
Items	Summary		Costs	Netrealisable value		Remark
Raw materials		$	255	$	306
Finished goods			1,227,714		1,500,662
Merchandise inventory			418,535		574,196
Less: Allowance for valuation loss	(		89,353)		-
		$	1,557,151	$	2,075,164

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CHICONY ELECTRONICS CO., LTD. DETAILS OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS – NON-CURRENT YEAR ENDED DECEMBER 31, 2021

(In thousands of New Taiwan dollars)

==> picture [748 x 165] intentionally omitted <==

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

At January 1 Additions for the year Decrease for the year At December 31
Name and type Shares Fair value Shares Amount Shares Amount Shares Fair value
WK Venture Capital Management Co., Ltd. Stock 15,380 $ 271,938 - $ 33,047 - $ - 15,380 $ 304,985
" - - -
Top Taiwan Venture Capital Management Co., Ltd. 7,500 72,205 23,886 7,500 96,091
" - - -
Chen Ding Venture Capital Management Co., Ltd. 10,000 111,934 26,585 10,000 138,519
Sheng Da Venture Capital Management Co., Ltd. " 3,000 33,000 570 9,114 - - 3,570 42,114
Magi Capital Venture Co., Ltd. Preferred stock 363 43,547 - - ( 46) ( 11,860) 317 31,687
Fuh Hwa Smart Energy Securities Investment Beneficiary
Trust Fund certificates 9,000 77,850 - - - ( 3,960) 9,000 73,890
Fuh Hwa Securities Investment Trust Fund " 8,700 86,217 - - - ( 3,654) 8,700 82,563
Fuh Hwa New Oriental Securities Investment
Trust Fund " 9,000 18,090 - - - ( 1,980) 9,000 16,110
Fuh Hwa Small Capital Fund " - - 402 63,849 - 402 63,849
$ 714,781 $ 156,481 ($ 21,454) $ 849,808
----- End of picture text -----

Note 1: In thousand shares/thousand sheet/thousand units

Note 2: The reason for additions and decreases in financial assets at fair value through profit or loss - non-current was fair value valuation.

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CHICONY ELECTRONICS CO., LTD.

DETAILS OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME – NON-CURRENT YEAR ENDED DECEMBER 31, 2021

(In thousands of New Taiwan dollars)

==> picture [748 x 107] intentionally omitted <==

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

At January 1 Additions for the year Decrease for the year At December 31
Name and type Shares Fair value Shares Amount Shares Amount Shares Fair value
TAIPEI TECH Venture Capital Co., Ltd. Stock 3,500 $ 47,250 - $ 1,428 - $ - 3,500 $ 48,679
Maxima Ventures I, Inc. " 13 131 - - ( 13) ( 131) - -
Maxima Ventures II, Inc. " 3,000 4,647 - 5,834 - - 3,000 10,481
Taiwan Cultural and Creative Co., Ltd. " 1,600 1,151 - 1,737 - - 1,600 2,887
" - - -
MKD Technology Inc. 1,600 6,725 ( 4,079) 1,600 2,646
Genesis Photonics Inc. Private stock 4,225 10,899 - 12,293 - - 4,225 23,192
$ 70,803 $ 21,292 ($ 4,210) $ 87,885
----- End of picture text -----

Note: In thousand shares/thousand sheet/thousand units

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CHICONY ELECTRONICS CO., LTD.

DETAILS OF INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD (INCLUDING OTHER NON-CURRENT LIABILITIES – OTHER) YEAR ENDED DECEMBER 31, 2021

(In thousands of New Taiwan dollars)

Name	Balance at	January1	Additions	for theyear	Reductions	for theyear	Transfers f	or theyear	Bala	nce at Decemb	er 31	Fair va	lue or net assets value	Collateral	Remark
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Ownership	Amount	Unit price	Total amount
Shown as investments accounted	1,000 4,843,384 12,560,000 200,467,594 32,428,442 1,000,000 90,000,000 4,660,000	23,470,611 $ 544,240 2,593,190 4,015,643 291,398 3,048,916 478,201 443,310) (	- 3,370,000 - 6,239,000 - - - -	1,434,545 $ 427,202 14,021 1,949,184 79,792 425,055 166,261 179,200	- - - - 1,026,000 - - -	179,219) ($ 85,574) ( 51,565) ( 1,049,952) ( 67,392) ( 180,616) ( 213,071) ( 100,828) (	- - - - - - - -	- $ - - - - - - -	1,000 8,213,384 12,560,000 206,706,594 31,402,442 1,000,000 90,000,000 4,660,000	100% 82.11% 100% 52.71% 45.15% 100% 100% 100%	24,725,937 $ 885,868 2,555,646 4,914,875 303,798 3,293,355 431,391 364,938) (	- - - - - - - -	24,725,937 $ 885,868 2,555,646 5,857,905 404,411 3,678,873 2,174,036 967,411	None " " " " " " " None
for using equity method Chicony Overseas Inc. Chicony Electronics (Thailand) Co., Ltd. Hipro Overseas (BVI) Inc. Chicony Power Technology Co., XAVi Electronics Ltd. Chicony Global Inc. Unikey Electronics Co., Ltd. Shown as other non-current liabilities-other Hipro Electronics Ltd.
		33,998,889 $		4,675,260 $		1,928,217) ($		- $			36,745,932 $

Note 1: The reason of additions in investment accounted for using equity method was increasing in share of profit of associates and joint ventures accounted for using equity method, financial statements translation differences of foreign operations under equity method, unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income under equity method, and cash dividends paid to the subsidiaries.

Note 2: The reason of decrease in investment accounted for using equity method was disposal of investments, increasing in share of loss of associates and joint ventures accounted for using equity method, financial statements trasnlation differences of foreign operations under equity method, unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income under equity method, adjustments to share of changes in equity of associates and joint ventures, and cash dividends received from the subsidiaries.

Note 3: The reason of differences between the balance at December 31 and the net assets value of investments was unrealised gross profit and subsidiaries holding the Copmany's stock which treated as treasury stock writting off investments accounted for using equity method.

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CHICONY ELECTRONICS CO., LTD. DETAILS OF ACCOUNTS PAYABLE DECEMBER 31, 2021

(In thousands of New Taiwan dollars)

Supplier Name	Summary		Amount	Remark
Supplier
A Company		$	58,117
B Company			50,457
C Company			32,040
D Company			30,633
E Company			25,211
F Company			19,351
Others			105,264	Each individual supplier balance did
		$	321,073	not exceed 5% of the account balance.
Related parties
Chicony Electronics (Suzhou) Co., Ltd.		$	7,181,968
Chicony Electronics (DongGuan) Co., Ltd.			6,520,180
Mao-Ray Electronics (DongGuan) Co., Ltd.			839,662
Chicony Electronics (Thailand) Co., Ltd			1,411,756
Others			87,067
		$	16,040,633

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CHICONY ELECTRONICS CO., LTD. DETAILS OF SALES REVENUE YEAR ENDED DECEMBER 31, 2021

(In thousands of New Taiwan dollars)

Items	Shipments		Amount Remark
Electronic component products	42,272 pieces	$	10,144,088
Consumer electronic products	55,080 pieces		32,466,587
and other electronic products
Others			1,753,018
		$	44,363,693

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CHICONY ELECTRONICS CO., LTD. DETAILS OF OPERATING COSTS YEAR ENDED DECEMBER 31, 2021

(In thousands of New Taiwan dollars)

Items			Amount
Materials at January 1		$	-
Add: Purchases			42,211
Less: Materials at December 31	(		255)
Cost of materials sold	(		41,956)
Transfer to operating expenses			-
Materials used during the year			-
Direct labor			-
Manufacturing expenses			-
Manufacturing cost			-
Add: Finished goods inventory at January 1			1,229,899
Purchases			9,849,468
Less: Finished goods inventory at December 31	(		1,646,249)
Transfer to operating expenses	(		5,781)
Cost of goods sold of triangular trade			28,397,279
Cost of materials sold			41,956
Loss on decline in market value			18,712
Others			119,595
Operating cost		$	38,004,879

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CHICONY ELECTRONICS CO., LTD. DETAILS OF OPERATING EXPENSES YEAR ENDED DECEMBER 31, 2021 (In thousands of New Taiwan dollars)

Items		Selling expenses		General and administrative expenses		Reserch and development expenses		Total
Wages and salaries Pension costs Rental expenses Travelling expenses Shipment expenses Postage and phone expenses Repair and maintenance expenses Advertising expenses Utilities Insurance expenses Entertainment Food stipend Taxes Depreciation Amortisation Employee benefits Commission Export charge fees Donations Service fees Inspection fees Research material expenses Others		325,598 $ 7,817 994 2,015 143,241 3,307 11,041 40,595 1,306 25,115 3,812 4,589 13,557 21,449 637 4,437 386,779 63,617 1 4,208 29,749 244 68,953 1,163,061 $		540,346 $ 13,865 382 5,849 - 6,672 41,616 16 6,534 37,182 1,219 6,931 42,790 43,763 5,401 5,522 - 8,548 6,467 25,779 2,633 136 22,357 824,008 $		1,046,210 $ 25,273 215 22,903 - 1,121 357 - 2,846 53,577 404 12,668 6,207 17,066 11,813 12,588 - 38 - 16,353 11,941 33,847 51,911 1,327,338 $		1,912,154 $ 46,955 1,591 30,767 143,241 11,100 53,014 40,611 10,686 115,874 5,435 24,188 62,554 82,278 17,851 22,547 386,779 72,203 6,468 46,340 44,323 34,227 143,221 3,314,407 $

~82~

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