CLEVO CO. — Interim / Quarterly Report 2019

Dec 24, 2019

CLEVO CO. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT

ACCOUNTANTS SEPTEMBER 30, 2019 AND 2018

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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REVIEW REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of CLEVO CO.

Introduction

We have reviewed the accompanying consolidated balance sheets of Clevo Co. and subsidiaries (the “Group”) as at September 30, 2019 and 2018, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

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

Basis for Qualified Conclusion

As explained in Notes 4(3) and 6(5), we did not review the financial statements of certain insignificant consolidated subsidiaries and investees accounted for using equity method. The total assets of the subsidiaries (including investments accounted for using equity method) of NT$11,612,552 thousand and NT$16,561,592 thousand, constituting 11% and 16% of the consolidated total assets, and total liabilities of NT$2,158,990 thousand and NT$3,872,476 thousand, constituting 3% and 6% of the consolidated total liabilities as at September 30, 2019 and 2018, respectively, and total comprehensive (loss) income (including share of profit (loss) of associates and joint ventures accounted for using equity method and

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share of other comprehensive income of associates and joint ventures accounted for using equity method) of (NT$193,711) thousand, (NT$47,151) thousand, NT$21,360 thousand and NT$118,890 thousand, constituting (16%), (2%), 183% and 45% of the consolidated total comprehensive (loss) income for the three-month and nine-month periods then ended, respectively. Those financial statements and information disclosed in Note 13 were not reviewed by other independent accountants whose reports thereon have been furnished to us, and our opinion expressed herein is based solely on the review reports of the other independent accountants.

Qualified Conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and investments accounted for using equity method been reviewed by independent accountants, that we might have become aware of had it not been for the situation described above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at September 30, 2019 and 2018, and of its consolidated financial performance for the three-month and nine-month periods then ended and its consolidated cash flows for the nine-month periods then ended in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Feng, Min-Chuan

[Wu, Han-Chi ]

For and on behalf of PricewaterhouseCoopers, Taiwan November 13, 2019

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The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the review of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and review 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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CLEVO CO. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2019, DECEMBER 31, 2018 AND SEPTEMBER 30, 2018

(Expressed in thousands of New Taiwan dollars) (REVIEWED, NOT AUDITED)

ASSETS	Notes	September30,2019 AMOUNT % $ 7,141,961 7 1,734,202 2 3,474,320 3 - - 2,420,918 2 1,045 - 87,607 - 5,058,814 5 3,848,919 4 925,002 1 24,692,788 24 22,011 - 2,409,144 2 6,920,173 7 5,134,307 5 62,899,784 60 31,689 - 193,556 - - - 1,774,561 2 79,385,225 76 $ 104,078,013 100	December31,2018 AMOUNT % $ 7,796,543 7 1,322,990 1 4,749,768 4 - - 1,623,861 2 3,166 - 9,984 - 7,896,031 7 - - 2,188,836 2 25,591,179 23 115,850 - 2,518,217 2 9,970,165 9 - - 65,426,212 58 21,311 - 214,011 - 6,675,527 6 1,927,385 2 86,868,678 77 $ 112,459,857 100	September30,2018	September30,2018
		AMOUNT $ 7,141,961 1,734,202 3,474,320 - 2,420,918 1,045 87,607 5,058,814 3,848,919 925,002 24,692,788 22,011 2,409,144 6,920,173 5,134,307 62,899,784 31,689 193,556 - 1,774,561 79,385,225 $ 104,078,013	AMOUNT $ 7,796,543 1,322,990 4,749,768 - 1,623,861 3,166 9,984 7,896,031 - 2,188,836 25,591,179 115,850 2,518,217 9,970,165 - 65,426,212 21,311 214,011 6,675,527 1,927,385 86,868,678 $ 112,459,857	AMOUNT $ 3,646,625 1,393,619 4,866,937 1,090 1,987,125 - 280 7,151,812 - 2,238,822 21,286,310 114,266 2,486,304 9,272,842 - 64,676,873 23,299 210,726 6,607,620 1,678,520 85,070,450 $ 106,356,760	%
Current assets 1100 Cash and cash equivalents 1110 Current financial assets at fair value through profit or loss 1136 Current financial assets at amortised cost 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable due from related parties, net 1220 Current income tax assets 130X Inventories 1460 Non-current assets or disposal groups classified as held for sale, net 1470 Other current assets 11XX Total current assets Non-current assets 1535 Non-current financial assets at amortised cost 1550 Investments accounted for using equity method, net 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred tax assets 1985 Long-term prepaid rents 1990 Other non-current assets 15XX Total non-current assets 1XXX Total assets	6(1) 6(2) 6(1) 6(3) 6(3) 6(3) and 7 6(4) and 8 6(11) 7 and 8 6(1) 6(5) 6(6) and 8 6(7), 7 and 8 6(9) and 8 6(10) 6(27) 6(7) and 8 8				3 1 5 - 2 - - 7 - 2
					20
					- 2 9 - 61 - - 6 2
					80
					100

(Continued)

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CLEVO CO. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2019, DECEMBER 31, 2018 AND SEPTEMBER 30, 2018

(Expressed in thousands of New Taiwan dollars) (REVIEWED, NOT AUDITED)

					September30,2019				December31,2018				September30,2018
	LIABILITIES AND
	STOCKHOLDERS' EQUITY	Notes			AMOUNT	%			AMOUNT	%			AMOUNT	%
	Current liabilities
2100	Short-term borrowings	6(12)		$	10,729,956	10		$	8,426,966		8	$	7,832,041		7
2130	Current contract liabilities	6(22)			1,199,631		1		3,146,037		3		2,920,149		3
2150	Notes payable				17,262		-		15,135		-		3,192		-
2170	Accounts payable				1,939,558		2		1,590,415		1		1,727,380		2
2180	Accounts payable - related	7
	parties				354,406		1		262,229		-		202,216		-
2200	Other payables				2,328,834		2		2,008,965		2		1,892,619		2
2230	Current tax liabilities	6(28)			61,078		-		170,192		-		178,425		-
2250	Provisions for liabilities -	6(17)
	current				50,523		-		50,523		-		50,523		-
2280	Current lease liabilities	7			13,610		-		-		-		-		-
2320	Long-term liabilities, current	6(15)
	portion				5,822,240		6		2,747,011		2		8,197,561		8
2399	Other current liabilities	6(13) and 7			1,388,411		1		646,170		1		1,100,827		1
21XX	Total current liabilities				23,905,509	23			19,063,643	17			24,104,933	23
	Non-current liabilities
2530	Corporate bonds payable	6(14)			5,000,000		5		5,000,000		5		5,000,000		5
2540	Long-term borrowings	6(15)			20,667,400	20			31,837,471	28			22,286,961	21
2570	Deferred tax liabilities	6(27)			12,258,318	12			12,380,424	11			12,172,609	11
2580	Non-current lease liabilities	7			57,111		-		-		-		-		-
2670	Other non-current liabilities	6(5)(16) and 7			1,340,950		1		2,321,189		2		1,357,526		1
25XX	Total non-current
	liabilities				39,323,779	38			51,539,084	46			40,817,096	38
2XXX	Total liabilities				63,229,288	61			70,602,727	63			64,922,029	61
	Equity attributable to owners of
	parent
	Share capital	6(18)
3110	Ordinary share				6,697,630		6		6,797,630		6		6,797,630		6
	Capital surplus	6(19)
3200	Capital surplus				333,951		-		982,539		1		982,539		1
	Retained earnings	6(20)
3310	Legal reserve				1,724,342		2		1,578,852		1		1,578,852		2
3320	Special reserve				36,131,662	35			34,937,216	31			34,937,217	33
3350	Unappropriated retained
	earnings				1,254,622		1		1,547,516		1		1,520,905		1
	Other equity interest
3400	Other equity interest	6(21)	(		3,940,382) (		4) (		2,720,683) (		2) (		3,275,464) (		3)
3500	Treasury shares	6(18)	(		1,357,042) (		1) (		1,283,228) (		1) (		1,123,611) (		1)
31XX	Total equity attributable
	to owners of parent				40,844,783	39			41,839,842	37			41,418,068	39
36XX	Non-controlling interest				3,942		-		17,288		-		16,663		-
3XXX	Total equity				40,848,725	39			41,857,130	37			41,434,731	39
3X2X	TOTAL LIABILITIES AND
	STOCKHOLDERS'
	EQUITY			$	104,078,013	100		$	112,459,857	100		$	106,356,760	100

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

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CLEVO CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

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

(REVIEWED, NOT AUDITED)

Items	Notes	Three-mon	thperiods e	nded September30,
		2019		2018
4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit/(loss) of associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the period Other comprehensive income Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8370 Share of other comprehensive income of associates and joint ventures accounted for under equity method 8399 Income tax relating to the components of other comprehensive income 8360 Other comprehensive income that will be reclassified to profit or loss 8300 Total other comprehensive loss for the period 8500 Total comprehensive income (loss) for the period Profit attributable to: 8610 Owners of the parent 8620 Non-controlling interest Comprehensive income (loss) attributable to: 8710 Owners of the parent 8720 Non-controlling interest Earnings per share 9750 Basic earnings per share 9850 Diluted earnings per share

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

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CLEVO CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Expressed in thousands of New Taiwan dollars)

(REVIEWED, NOT AUDITED)

Nine-month period ended September 30, 2018 Balance at January 1, 2018 Effects of restrospective application and retrospective restatement Balance at January 1, 2018 after adjustments Profit for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) Appropriations of 2017 earnings Legal reserve Speical reserve Capital dividends Treasury stock acquired Treasury stock retired Changes in non-controlling interests Balance at September 30, 2018 Nine-month period ended September 30, 2019 Balance at January 1, 2019 Profit for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) Appropriations of 2018 earnings Legal reserve Speical reserve Cash dividends Capital dividends Treasury stock acquired Treasury stock retired Adjustment to capital surplus arising from dividends paid to subsidiaries Changes in non-controlling interests Balance at September 30, 2019	Notes					Equityattri	butable to owners of	theparent				Total $ 42,284,137 - 42,284,137 1,423,026 ( 1,157,395) 265,631 - - ( 546,530) ( 607,920) 22,750 - $ 41,418,068 $ 41,839,842 1,225,873 ( 1,219,699) 6,174 - - ( 128,453) ( 513,810) ( 386,017) - 27,047 - $ 40,844,783	Non-controlling interest	Totalequity
		Ordinary share	CapitalS	urplus Capital surplus, treasury share transactions		RetainedEarnings	Unappropriated retained earnings	O	ther EquityInterest	Asset revaluation increment $ 20,922 - 20,922 - - - - - - - - - $ 20,922 $ 20,922 - - - - - - - - - - - $ 20,922	Treasury shares
			Total capital surplus, additional paid-incapital $ 1,379,498 - 1,379,498 - - - - - ( 546,530) - - - $ 832,968 $ 832,968 - - - - - - ( 513,810) - ( 12,254) - - $ 306,904		Legal reserve	Special reserve		Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on available-for-sale financial assets
	6(21) 6(20) 6(31) 6(18) 6(21) 6(20) 6(20) 6(31) 6(18)	$ 6,831,630 - 6,831,630 - - - - - - - ( 34,000 ) - $ 6,797,630 $ 6,797,630 - - - - - - - - ( 100,000 ) - - $ 6,697,630		$ 202,476 - 202,476 - - - - - - - ( 52,905) - $ 149,571 $ 149,571 - - - - - - - - ( 149,571) 27,047 - $ 27,047	$ 1,507,074 - 1,507,074 - - - 71,778 - - - - - $ 1,578,852 $ 1,578,852 - - - 145,490 - - - - - - - $ 1,724,342	$ 33,929,051 - 33,929,051 - - - - 1,008,166 - - - - $ 34,937,217 $ 34,937,216 - - - - 1,194,446 - - - - - - $ 36,131,662	$ 1,079,944 97,879 1,177,823 1,423,026 - 1,423,026 ( 71,778 ) ( 1,008,166 ) - - - - $ 1,520,905 $ 1,547,516 1,225,873 - 1,225,873 ( 145,490 ) ( 1,194,446 ) ( 128,453 ) - - ( 50,378 ) - - $ 1,254,622	($ 2,138,991) - ( 2,138,991) - ( 1,157,395) ( 1,157,395) - - - - - - ($ 3,296,386) ($ 2,741,605) - ( 1,219,699) ( 1,219,699) - - - - - - - - ($ 3,961,304)	$ 97,879 ( 97,879) - - - - - - - - - - $ - $ - - - - - - - - - - - - $ -		($ 625,346) - ( 625,346) - - - - - - ( 607,920) 109,655 - ($ 1,123,611) ($ 1,283,228) - - - - - - - ( 386,017) 312,203 - - ($ 1,357,042)		$ 15,898 - 15,898 923 339 1,262 - - - - - ( 497 ) $ 16,663 $ 17,288 5,036 478 5,514 - - - - - - - ( 18,860 ) $ 3,942	$ 42,300,035 - 42,300,035 1,423,949 ( 1,157,056) 266,893 - - ( 546,530) ( 607,920) 22,750 ( 497) $ 41,434,731 $ 41,857,130 1,230,909 ( 1,219,221) 11,688 - - ( 128,453) ( 513,810) ( 386,017) - 27,047 ( 18,860) $ 40,848,725

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

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CLEVO CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Expressed in thousands of New Taiwan dollars)

(REVIEWED, NOT AUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation Amortisation Expected credit (gain) loss Net (gain) loss on financial assets mandatorily measured at fair value through profit or loss Interest expense Interest income Dividend income Share of (profit) loss of associates and joint ventures accounted for under the equity method (Gain) loss on disposal of property, plant and equipment Gain on disposal of investment property Gain on disposal of investments Impairment loss on non-financial assets Gain on adjustment of investment properties at fair value Changes in operating assets and liabilities Changes in operating assets Financial assets mandatorily measured at fair value through profit or loss Notes receivable, net Accounts receivable, net Inventories Capitalisation of interest (inventories) Other current liabilities Other non-current liabilities Changes in operating liabilities Contract liabilites Notes payable Accounts payable Accounts payable - related parties Other payables Other current liabilities Other non-current liabilities Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from operating activities

Notes Nine-month period ended September 30, 2019 Nine-month period ended September 30, 2018 $ 1,790,338 $ 2,192,560 6(6)(7)(26) 145,695 123,920 6(10)(26) 6,571 14,311 12(2) ( 13,818 ) 5,550 6(24) ( 538,384 ) 329,373 6(25) 877,889 645,975 6(23) ( 152,815 ) ( 77,631 ) 6(23) ( 25,178 ) ( 32,364 ) 6(5) ( 65,042 ) 45,470 6(24) ( 2,218 ) 2,855 6(24) ( 463,078 ) - 6(24) ( 65,089 ) ( 939,800 ) 6(11) 160,539 - 6(9)(24) ( 848,197 ) ( 882,487 ) 121,197 ( 327,119 ) - 37 ( 781,521 ) ( 77,050 ) 813,011 426,275 6(4) ( 24,928 ) ( 82,216 ) 427,030 ( 206,535 ) 23,733 ( 35,515 ) ( 567,826 ) ( 173,870 ) 2,127 ( 11,943 ) 349,143 ( 125,519 ) 92,177 ( 66,993 ) ( 448,442 ) ( 8,858 ) 738,008 13,367 ( 57,167 ) 21,266 1,493,755 773,059 119,367 76,917 19,172 28,837 ( 904,415 ) ( 643,692 ) ( 543,791 ) ( 222,199 ) 184,088 12,922

(Continued)

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CLEVO CO. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Expressed in thousands of New Taiwan dollars)

(REVIEWED, NOT AUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES Repayment of disposal of available-for-sale financial assets Disposal of subsidiaries Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in refundable deposits Acquisition of intangible assets Acquisition of investment properties Proceeds from disposal of investment properties Interest paid (capitalisation of interest) Increase in long-term prepaid rent Decrease (increase) in financial assets at amortised cost - current Decrease (increase) in financial assets at amortised cost - non-current Proceeds from disposal of intangible assets Net cash flows from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Decrease in guarantee deposit Increase in other financial liabilities - current Cash dividends paid Decrease in other financial liabilities - non-currnet Acquisition of treasury stock Payments of lease liabilities Changes in non-controlling interests Net cash flows used in financing activities Changes in exchange rates Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

Notes Nine-month period ended September 30, 2019 Nine-month period ended September 30, 2018 6(31) $ - $ 44,115 6(31) 961,722 994,893 6(31) ( 718,549 ) ( 815,145 ) 6(31) 174,216 7,478 52,524 4,465 6(11) ( 17,871 ) ( 1,468 ) 6(31) 82,460 ( 440,270 ) 6(9) 4,066,394 3,861 6(9) ( 123,653 ) ( 283,798 ) - ( 1,556 ) 1,275,448 ( 1,508,140 ) 93,839 ( 155,614 ) 619 - 5,847,149 ( 2,151,179 ) 50,596,961 41,299,938 ( 48,200,543 ) ( 39,726,074 ) 18,813,999 32,797,008 ( 26,716,934 ) ( 34,937,800 ) ( 891,334 ) ( 101,967 ) 4,234 448,578 6(19) ( 642,263 ) ( 546,530 ) - ( 588,832 ) 6(31) ( 403,475 ) ( 607,920 ) ( 3,848 ) - ( 6,381 ) ( 497 ) ( 7,449,584 ) ( 1,964,096 ) 763,765 226,399 ( 654,582 ) ( 3,875,954 ) 7,796,543 7,522,579 $ 7,141,961 $ 3,646,625

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

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CLEVO CO. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2019 AND 2018

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(Reviewed, not audited)

1. HISTORY AND ORGANISATION

Clevo Co. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the design, manufacture and sales of VDUs, computers and peripheral devices, and the leasing business of Buynow.

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

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised for issuance by the Board of Directors on November 13, 2019.

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 2019 are as follows:

follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 9, ‘Prepayment features with negative compensation’ IFRS 16, ‘Leases’ Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’ Amendments to IAS 28, ‘Long-term interests in associates and joint ventures’ IFRIC 23, ‘Uncertainty over income tax treatments’ Annual improvements to IFRSs 2015-2017 cycle	January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. IFRS 16, ‘Leases’

• A. IFRS 16, ‘Leases’, replaces IAS 17, ‘Leases’ and related interpretations and SICs. The standard requires lessees to recognise a 'right-of-use asset' and a lease liability (except for those leases with terms of 12 months or less and leases of low-value assets). The accounting stays the same for lessors, which is to classify their leases as either finance leases or operating leases and account for those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided by lessors.

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• B. The Group has elected to apply IFRS 16 by not restating the comparative information (referred herein as the ‘modified retrospective approach’) when applying “IFRSs” effective in 2019 as endorsed by the FSC. Accordingly, the Group increased ‘right-of-use asset’ by $6,675,527 and decreased long-term prepaid rents by $6,675,527 with respect to the lease contracts of lessees on January 1, 2019.

• C. The Group has used the following practical expedients permitted by the standard at the date of initial application of IFRS 16:

• (a) Reassessment as to whether a contract is, or contains, a lease is not required, instead, the application of IFRS 16 depends on whether or not the contracts were previously identified as leases applying IAS 17 and IFRIC 4.

• (b) The accounting for operating leases whose period will end before December 31, 2019 as shortterm leases and accordingly, rent expense of $66,393 was recognised in the third quarter of 2019.

• D. The Group recognised lease liabilities which had previously been classified as ‘operating leases’ under the principles of IAS 17, ‘Leases’. The reconciliation between operating lease commitments under IAS 17 measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate and lease liabilities recognised as of January 1, 2019 is as follows:

Operating lease commitments disclosed by applying IAS 17 as at December 31, 2018 $ 89,702 Less: Short-term leases ( 89,702) Total lease contracts amount recognised as lease liabilities by applying - IFRS 16 on January 1, 2019 $

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

the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2020 are as follows:

follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of Material’ Amendments to IFRS 3, ‘Definition of a business’	January 1, 2020 January 1, 2020

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

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

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

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Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 9, IAS 39 and IFRS 7, ‘Interest rate benchmark January 1, 2020 reform’ Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets To be determined by between an investor and its associate or joint venture’ International Accounting Standards Board IFRS 17, ‘Insurance contracts’ January 1, 2021

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standards 34, ‘Interim financial reporting’ as endorsed by the FSC.

(2) Basis of preparation

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

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

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

• (c) Investment property measured at fair value.

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

• B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission (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 Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity

~12~

when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

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

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

• (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

~13~

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 98.99 98.99 98.99 100 100 100 100 100 100 Ownership (%)	September 30,2019 December 31,2018 September 30,2018 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 98.99 98.99 98.99 100 100 100 100 100 100 Ownership (%)	Description
			September 30,2019	December 31,2018
The Company The Company The Company The Company The Company The Company The Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company	Clevo Computer Singapore Pte Ltd. Clevo (Cayman Islands) Holding Company Kapok Computer (Samoa) Corporation Kapok Computer Co., Ltd. Clevo Investment Co., Ltd. Buynow On-line Holding Corporation Lunaria Investment GK Buynow Global Corporation Buynow (Hangzhou) Corporatioon	Management and advisory of computers Investing Investing Design and sale of computers and computer peripherals Investing Investing Building leasing Investing Investing	100 100 100 100 100 100 98.99 100 100	100 100 100 100 100 100 98.99 100 100

~14~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100	Description
			September 30,2019	December 31,2018
Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company	Buynow (Zhengzhou) Corporation Buynow Group (Changsha) Corporation Buynow (Nanchang) Corporation Buynow (Guangzhou) Corporation Flying Wolf Investment Limited Buynow (Xiamen) Corporation Buynow Group (Xian) Corporation Buynow (Changchun) Corporation	Investing Investing Investing Investing Investing Investing Investing Investing	100 100 100 100 100 100 100 100	100 100 100 100 100 100 100 100

~15~

Ownership (%)

Name of investor	Name of subsidiary	Main business activities	September 30,2019	December 31,2018	September 30,2018 100 100 100 100 100 100 100 100 100 100	Description
Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company	Buynow Group (Qingdao) Corporation Buynow (Wuxi) Corporation Buynow (Harbin) Corporation Flying International Investment Limited Buynow (Chongqing) Limited Buynow (Daqing) Corporation Buynow (Zibo) Corporation Buynow (Beijing) Corporation Buynow (Yancheng) Corporation Skill Develop International Limited	Investing Investing Investing Investing Investing Investing Investing Investing Investing Investing	100 100 100 100 100 100 100 100 100 100	100 100 100 100 100 100 100 100 100 100

~16~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100	Description
			September 30,2019	December 31,2018
Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company	Buynow (Yingkou) Corporation Buynow (Anshan) Corporation Buynow (Huizhou) Corporation Buynow (Guiyang) Corporation Buynow (Taizhou) Corporation Buynow (Dezhou) Corporation Buynow (Luoyang) Corporation Smarter Capital Limited	Investing Investing Investing Investing Investing Investing Investing Investing	100 100 100 100 100 100 100 100	100 100 100 100 100 100 100 100

~17~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100	Description
			September 30,2019	December 31,2018
Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (Cayman Islands) Holding Company Clevo (HK) Investment Holding Limited Buynow On-line Holding Corporation Skill Develop International Limited Clevo Computer Singapore Pte Ltd.	Buynow (Fujian Quanzhou) Corporation Buynow (Jinzhou) Corporation Clevo (China) Investment Co., Ltd. Buynow (Shantou) Corporation Clevo (HK) Investment Holding Limited Clevo Japan GK Buynow On-line Limited Well Asia Investment Limited Buynow (Chengdu) Corporation	Investing Investing Investing in companies, setting up R&D department and consultation service Investing Investing Investing Investing Investing Investing	100 100 100 100 100 100 100 100 100	100 100 100 100 100 100 100 100 100

~18~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 8.82 8.82 8.82	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 8.82 8.82 8.82	Description (Note 1)
			September 30,2019	December 31,2018
Clevo Computer Singapore Pte Ltd. Clevo Computer Singapore Pte Ltd. Clevo Computer Singapore Pte Ltd.	Buynow (Nanjing) Facility Leasing and Management Co., Ltd. Kalor Buynow (Heifei) Electronic Information Co., Ltd. Qingdao Buynow Technology Industry Co., Ltd.	Manufacturing, sale, research and development of computers and computer peripherals and services for related electronics products Manufacturing, sale, research and development of computers and computer peripherals and services for related electronics products Manufacturing, sale, research and development of computers and computer peripherals; Display, advisory and after-sales service of digital products; Property management of self-owned buildings	100 100 8.82	100 100 8.82

~19~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 20.59 20.59 20.59 100 100 100 21.21 21.21 21.21	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 20.59 20.59 20.59 100 100 100 21.21 21.21 21.21	Description (Note 1) (Note 1)
			September 30,2019	December 31,2018
Buynow Group (Qingdao) Corporation Kapok Computer (Samoa) Corporation Buynow Global Corporation	Qingdao Buynow Technology Industry Co., Ltd. Kapok Computer (Kunshan) Co., Ltd. Shanghai Buynow Electronic Information Co., Ltd.	Manufacturing, sale, research and development of computers and computer peripherals; Display, advisory and after-sales service of digital products; Property management of self-owned buildings Manufacturing, sale, research and development and maintenance service of computers, notebooks, tablets, information and communication products and computer components Rental of exhibition, advisory, maintenance service and property management of computer and related electronics products	20.59 100 21.21	20.59 100 21.21

~20~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100	Description
			September 30,2019	December 31,2018
Buynow Global Corporation Buynow Global Corporation Buynow (Hangzhou) Corporation	Quality Trust Property Management Co., Ltd. Kunshan Kaishuo Trading Co., Ltd. Buynow (Hangzhou) Electronic Information Co., Ltd.	Property management, advisory of real estate, building leasing, housekeeping service, parking lot service, car wash service and business service Mechanical equipment and accessories, wire and cable, air conditioning equipment, building and decoration material, lighting equipment, Kitchen appliance, water cleaner, pipeline and accessories, fire safety equipment, compressor and accessories, wholesale of elevators and appliances, import and export and advisory services Manufacturing, sale, research and development and after-sales service of computers and computer peripherals; Property management of buildings	100 100 100	100 100 100

~21~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100 100 100 100	Description
			September 30,2019	December 31,2018
Buynow Group (Xian) Corporation Buynow Group (Changsha) Corporation Buynow (Zhengzhou) Corporation Buynow (Nanchang) Corporation	Buynow (Xian) Industry Co., Ltd. Buynow (Changsha) Industry Co., Ltd. Buynow (Zhengzhou) Electronic Information Co., Ltd. Buynow (Nanchang) Industry Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products Manufacturing, sale, research and development and after-sales services of computers and computer peripherals; Property management of buildings Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products Manufacturing, sale, research and development and after-sales services of computers and computer peripherals Property management of buildings	100 100 100 100	100 100 100 100

~22~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 95.24 95.24 95.24 4.76 4.76 4.76	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 95.24 95.24 95.24 4.76 4.76 4.76	Description (Note 1) (Note 1)
			September 30,2019	December 31,2018
Buynow (Guangzhou) Corporation Buynow (Xiamen) Corporation Buynow (Changchun) Corporation Flying Wolf Investment Limited	Buynow (Guangzhou) Electronic Information Co., Ltd. Buynow (Fujian) Electronic Technology Development Co., Ltd. Buynow (Changchun) Industry Co., Ltd. Buynow (Changchun) Industry Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products Manufacturing, sale, maintenance service, research and development of computers and computer peripherals; Property management of buildings Manufacturing, sale, maintenance service, research and development of computers and computer peripherals; Property management of buildings	100 100 95.24 4.76	100 100 95.24 4.76

~23~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 28.57 28.57 28.57 71.43 71.43 71.43 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 28.57 28.57 28.57 71.43 71.43 71.43 100 100 100	Description (Note 1) (Note 1)
			September 30,2019	December 31,2018
Flying Wolf Investment Limited Flying Wolf Investment Limited Buynow (Wuxi) Corporation Buynow (Harbin) Corporation	Buynow Electronic Information (Shenyang) Co., Ltd. Buynow (Wuxi) Electronic Technology Development Co., Ltd. Buynow (Wuxi) Electronic Technology Development Co., Ltd. Buynow (Harbin) Industry Co., Ltd.	Research and development of computers and computer peripherals and electronic products; Advisory services of economic information Manufacturing, sale, maintenance service, research and development of computer software and digital products Manufacturing, sale, maintenance service, research and development of computer software and digital products Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products	100 28.57 71.43 100	100 28.57 71.43 100

~24~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100	Description
			September 30,2019	December 31,2018
Buynow (Chengdu) Corporation Flying International Investment Limited Buynow (Chongqing) Limited	Buynow (Chengdu) Electronic Information Co., Ltd. Tianjin Buynow Electronic Information Co., Ltd. Buynow (Chongqing) Industry Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals; Property management of buildings Manufacturing, sale, research and development of computers and computer peripherals and digital products Manufacturing, sale, research and development of computers and computer peripherals (not including electronic publishing), shopping mall management, wholesale and retail of electronic products, property management and parking lot service	100 100 100	100 100 100

~25~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100	Description
			September 30,2019	December 31,2018
Buynow On-line Limited Buynow (Daqing) Corporation	Shanghai Buynow Online Information Technology Co., Ltd. Daqing Buynow Electronic Information Co., Ltd.	Wholesale and retail, import and export, and after- sales service of household appliances, computer and computer components, communication equipment, electrical devices, office supplies and complementary products; Development, technology transfer, advisory, service and training for internet, computer software and hardware and communication equipment Manufacturing, retail and wholesale of computers and computer peripherals; Electronic information shopping mall management	100 100	100 100

~26~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 65 65 65 100 100 100 76 76 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 65 65 65 100 100 100 76 76 100	Description (Note 1) (Note 3)
			September 30,2019	December 31,2018
Well Asia Investment Limited Buynow (Zibo) Corporation Buynow (Beijing) Corporation	Guangdong Buynow Real Estate Management Co., Ltd. Zibo Buynow Electronic Information Co., Ltd. Beijing Clevo Investment Management Consultant Co., Ltd.	Self-owned property management and leasing; Manufacturing, research and development of computer software and hardware and digital products Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products; Advisory services for business management; Leasing of self- owned buildings, parking lot management, shopping mall management and property management Business advisory of investment management, wholesale agency of electronic products, import and export of goods and property management	65 100 76	65 100 76

~27~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 40 40 40 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 40 40 40 100 100 100	Description (Note 1)
			September 30,2019	December 31,2018
Buynow (Yancheng) Corporation Buynow (Huizhou) Corporation Buynow (Yingkou) Corporation	Buynow (Yancheng) Electronic Information Technology Development Co. Ltd. Buynow (Hangzhou) Electronic Information Co., Ltd. Yingkou Buynow Electronic Information Co., Ltd.	Manufacturing, maintenance service, research and development of computers and computer peripherals and digital products, and advisory of business management Industrial investment, management advisory of business, property management, computer network workshop and advertisement production Manufacturing, maintenance service, research and development of computers and computer peripherals and digital products, and business management advisory services	100 40 100	100 40 100

~28~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100 100 100 100	Description
			September 30,2019	December 31,2018
Buynow (Anshan) Corporation Buynow (Guiyang) Corporation Buynow (Taizhou) Corporation Smarter Capital Limited	Anshan Buynow Electronic Information Co., Ltd. Guiyang Buynow Electronic Information Co., Ltd. Taizhou Buynow Electronic Information Co., Ltd. Buynow SZ. Corporation	Manufacturing, maintenance service, research and development of computers and computer peripherals and digital products, and business management advisory services Research and development of computers and computer peripherals and electronic products, and business management advisory services Manufacturing, maintenance service, research and development of computers and computer peripherals and digital products, and business management advisory services Investing	100 100 100 100	100 100 100 100

~29~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100	Description
			September 30,2019	December 31,2018
Buynow SZ. Corporation Buynow (Dezhou) Corporation Buynow (Luoyang) Corporation	Suzhou Jinzuo Industry Co., Ltd. Dezhou Buynow Electronic Information Co., Ltd. Luoyang Buynow Electronic Information Co., Ltd.	Business affairs and property management business Research and development and maintenance service of computers and computer peripherals and electronic products; Business management advisory services and shopping mall management Research and development and maintenance service of computers and computer peripherals and electronic products; Business management advisory services and shopping mall management	100 100 100	100 100 100

~30~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 100 100 100	Description
			September 30,2019	December 31,2018
Buynow (Fujian Quanzhou) Corporation Buynow (Jinzhou) Corporation Buynow (Shantou) Corporation	Quanzhou Buynow Industry Co., Ltd. Buynow (Jinzhou) Industry Co., Ltd. Shantou Buynow Mall Co., Ltd.	Research and development and maintenance service of computers and computer peripherals and electronic products; Business management advisory services and shopping mall management Manufacturing of computer software and hardware and consumer electronic products; Business management advisory services and shopping mall management Investment in companies primarily engaged in research and development and advisory services	100 100 100	100 100 100

~31~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 - - 100 100 100 100 80 80 80	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 - - 100 100 100 100 80 80 80	Description (Note 5) (Note 1)
			September 30,2019	December 31,2018
Kapok Computer Co., Ltd. Shanghai Buynow Electronic Information Co., Ltd. Shanghai Buynow Electronic Information Co., Ltd. Shanghai Buynow Electronic Products Market Management Co., Ltd. Shanghai Buynow Electronic Products Market Management Co., Ltd.	Kunshan Kaiming Trading Co., Ltd. Shanghai Buynow Electronic Products Market Management Co., Ltd. Shanghai Buynow Electronic Products Market Management Co., Ltd. Shanghai Huihei Advertisment Co., Ltd. Shanghai Huizhuan Restaurant Management Co., Ltd.	Provide market management services for operators of laptop computers, tablets, desktop computers, palmtop computers, information and communication products and computer components Provide market management services for operators of electronic products Provide market management services for operators of computers and computer peripherals Advertising design and marketing Catering business management	100 100 - 100 80	100 100 - 100 80

~32~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 10 10 10 100 100 100	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 100 100 100 100 100 100 10 10 10 100 100 100	Description (Note 2)
			September 30,2019	December 31,2018
Quality Trust Property Management Co., Ltd. Buynow (Wuxi) Corporation Buynow (Wuxi) Corporation Buynow (Fujian) Electronic Co., Ltd.	Wuxi Quantai Property Management Co., Ltd. Wuxi Buynow Electronic Market Co., Ltd. Beijing Kaiye Electronic Technology Co., Ltd. Xiamen Lejing Internet Bar Co., Ltd.	Property management, real estate advisory services, building leasing, housekeeping service, parking lot service, car wash service and business service Leasing of facility, market management service, catering management, property management, parking lot management Technology- extension services, computer maintenance, public parking lot service for motorcycle, property management, business management advisory services, business building leasing, wholesale of computer and computer peripherals, hardware electronic products Internet café and internet message service	100 100 10 100	100 100 10 100

~33~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 35 35 35 60 60 60 20 20 20 78.79 78.79 78.79	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 35 35 35 60 60 60 20 20 20 78.79 78.79 78.79	Description (Note 1) (Note 1) (Note 1) (Note 1)
			September 30,2019	December 31,2018
Buynow Electronic Information Co., Ltd. Buynow Electronic Information Co., Ltd. Clevo (China) Investment Co., Ltd. Clevo (China) Investment Co., Ltd.	Guandong Huijing Real Estate Development Co., Ltd. Buynow (Hangzhou) Electronic Information Co., Ltd. Shanghai Huizhuan Restaurant Management Co., Ltd. Shanghai Buynow Electronic Information Co., Ltd.	Self-owned property management and leasing, manufacturing, sale, research and development of computer software and hardware and digital products Industrial investment, business management advisory services, property management, computer network workshop and advertisement production Catering business management Leasing of exhibition space for computer and electronic products, information advisory, maintenance service and property management	35 60 20 78.79	35 60 20 78.79

~34~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 70.59 70.59 70.59 - 100 100 20 20 20	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 70.59 70.59 70.59 - 100 100 20 20 20	Description (Note 1) (Note 7) (Note 2)
			September 30,2019	December 31,2018
Clevo (China) Investment Co., Ltd. Suzhou Jinzuo Corporation Limited Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Qingdao Buynow Technology Industrial Co., Ltd. Suzhou Buynow Department Store Co., Ltd. Beijing Kaiye Electronic Technology Co., Ltd.	Leasing of exhibition space for computer and electronic products, information advisory, maintenance service and property management Wholesale and retail of daily goods, office supplies, shoes, hats and bags, household appliance, sporting goods, hardware electronic, watch and the first-class medical device Technology- extension services, computer maintenance, public parking lot service for motorcycle, property management, business management advisory services, business building leasing, wholesale of computer and computer peripherals, hardware electronic products and household appliances	70.59 - 20	70.59 100 20

~35~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 20 20 20 20 20 20	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 20 20 20 20 20 20	Description (Note 2) (Note 2)
			September 30,2019	December 31,2018
Buynow Electronic Information (Zhengzhou) Buynow (Changchun) Industry Co., Ltd.	Beijing Kaiye Electronic Technology Co., Ltd. Beijing Kaiye Electronic Technology Co., Ltd.	Technology- extension services, computer maintenance, public parking lot service for motorcycle, property management, business management advisory services, business building leasing, wholesale of computer and computer peripherals, hardware electronic prudicts and household appliances Technology- extension services, computer maintenance, public parking lot service for motorcycle, property management, business management advisory, and business building leasing, wholesale of computer and computer peripherals, hardware electronic products and household appliances	20 20	20 20

~36~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 20 20 20 10 10 10	September 30,2019 December 31,2018 September 30,2018 Ownership (%) 20 20 20 10 10 10	Description (Note 2) (Note 2)
			September 30,2019	December 31,2018
Buynow (Hangzhou) Electronic Information Co., Ltd. Tianjin Buynow Electronic Information Co., Ltd.	Beijing Kaiye Electronic Technology Co., Ltd. Beijing Kaiye Electronic Technology Co., Ltd.	Technology- extension services, computer maintenance, public parking lot service for motorcycle, property management, business management and advisory, business building leasing, wholesale of computer and computer peripherals, hardware electronic products and household appliances Technology- extension services, computer maintenance, public parking lot service for motorcycle, property management, business management and advisory, business building leasing, wholesale of computer and computer peripherals, hardware electronic products and household appliances	20 10	20 10

~37~

Name of investor	Name of subsidiary	Main business activities	September 30,2019 December 31,2018 September 30,2018 Ownership (%) - 5.42 - - 6.97 - - 11.61 - 12.39 - - 11.61 - -	September 30,2019 December 31,2018 September 30,2018 Ownership (%) - 5.42 - - 6.97 - - 11.61 - 12.39 - - 11.61 - -	Description (Note 3, Note 4) (Note 3, Note 4) (Note 3, Note 4) (Note 4) (Note 4)
			September 30,2019	December 31,2018
Daqing Buynow Corporation Zibo Buynow Electronic Information Co., Ltd. Shanghai Buynow Electronic Information Co., Ltd. Buynow (Changchun) Industry Co., Ltd. Buynow Electronic Information (Zhengzhou)	Beijing Clevo Investment Management Consultant Co., Ltd. Beijing Clevo Investment Management Consulant Co., Ltd. Beijing Clevo Investment Management Consultant Co., Ltd. Beijing Clevo Investment Management Consultant Co., Ltd. Beijing Clevo Investment Management Consultant Co., Ltd.	Business advisory of investment management, wholesale agency of electronic products, import and export of goods and property management Business advisory of investment management, wholesale agency of electronic products, import and export of goods and property management Business advisory of investment management, wholesale agency of electronic products, import and export of goods and property management Business advisory of investment management, wholesale agency of electronic products, import and export of goods and property management Business advisory of investment management, wholesale agency of electronic products, import and export of goods and property management	- - - 12.39 11.61	5.42 6.97 11.61 - -

Note 1: The parent company of the Group held 100% of the shares in these subsidiaries, and the

~38~

subsidiaries were included in the consolidated financial statements.

• Note 2: Buynow (Wuxi) Electronic Technology Development Co., Ltd., Kalor Buynow (Heifei) Electronic Information Co., Ltd., Buynow (Zhengzhou) Electronic Information Co., Ltd., Buynow (Changchun) Industry Co., Ltd., and Buynow (Hangzhou) Electronic Information Co., Ltd. acquired 10%, 20%, 20%, 20%, and 20% of the shares of Beijing Kaiye Electronic Technology Co., Ltd., respectively. Additionally, Shanghai Buynow Electronic Information Co., Ltd. sold 100% of shares in Beijing Kaiye Electronic Technology Co., Ltd. to Tianjin Buynow Electronic Information Co., Ltd. on April 30, 2018. The parent company of the Group held 100% of the shares in these subsidiaries, and the subsidiaries were included in the consolidated financial statements.

• Note 3: Buynow (Beijing) Corporation sold 24% of shares in Beijing Clevo Investment Management Consultant Co., Ltd. to Daqing Buynow Electronic Information Co., Ltd., Zibo Buynow Electronic Information Co., Ltd., and Shanghai Buynow Electronic Information Co., Ltd. on September 10, 2018. Daqing Buynow Electronic Information Co., Ltd., Zibo Buynow Electronic Information Co., Ltd., and Shanghai Buynow Electronic Information Co., Ltd. acquired 5.42%, 6.97% and 11.61% of the shares, respectively. The parent company of the Group held 100% of the shares in these subsidiaries, and the subsidiaries were included in the consolidated financial statements.

• Note 4: On July 1, 2018, Shanghai Buynow Electronic Information Co., Ltd., Daqing Buynow Electronic Information Co., Ltd., and Zibo Buynow Electronic Information Co., Ltd. sold 11.61%, 5.42% and 8.97% of shares held in Beijing Clevo Investment Management Consultant Co., Ltd. to Buynow (Zhengzhou) Corporation, respectively; Daqing Buynow Electronic Information Co., Ltd. and Zibo Buynow Electronic Information Co., Ltd. sold 5.42% and 6.97% of shares held in Beijing Clevo Investment Management Consultant Co., Ltd. to Buynow (Changchun), respectively. The parent company of the Group held 100% of the shares in these subsidiaries, and the subsidiaries were included in the consolidated financial statements.

• Note 5: Shanghai Buynow Computer Market Management Co., Ltd. was liquidated and dissolved on October 22, 2018.

• Note 6: The financial statements of certain consolidated subsidiaries for the nine-month periods ended September 30, 2019 and 2018 were not reviewed by independent accountants. The total assets of these unreviewed subsidiaries as of September 30, 2019 and 2018 were $9,203,408 thousand and $14,075,288 thousand, constituting 9% and 13% of total consolidated assets, respectively, and the total liabilities were $2,100,696 thousand and $3,813,085 thousand, constituting 3% and 6% of the consolidated total liabilities, respectively. The total comprehensive (loss) income was ($1,323) thousand and $213,609 thousand, constituting (11%) and 80% of the consolidated total comprehensive income for the nine-month periods ended September 30, 2019 and 2018, respectively.

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Note 7: Suzhou Buynow Department Store Co., Ltd. was liquidated and dissolved on August 13, 2019.

• C. Subsidiaries not included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities		September 30,2019 December 31,2018 September 30,2018 100 100 100 Ownership (%)	September 30,2019 December 31,2018 September 30,2018 100 100 100 Ownership (%)	Description (Note)
				September 30,2019	December 31,2018
The Company	Clevo France Sarl	Design and sale of computers and computer peripherals		100	100

Note: As CLEVO FRANCE SARL has ceased operations, there was no outstanding balance in all balance sheet and income statement accounts of the subsidiary as of September 30, 2019, December 31, 2018 and September 30, 2018.

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

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group: None.

• (4) Foreign currency translation

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

• A. Foreign currency transactions and balances

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

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

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

• (d) All other foreign exchange gains and losses based on the nature of those transactions are

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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 group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

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

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

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

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

  • (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group 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.

• (5) Classification of current and non-current items

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

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

  • (b) Assets held mainly for trading purposes;

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

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

• 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;

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• (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.

(6) Cash equivalents

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

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

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

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

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

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

(8) Financial assets at amortised cost

• A. Financial assets at amortised cost are those that meet all of the following criteria:

  • (a) The objective of the Group’s business model is achieved by collecting contractual cash flows.

  • (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.

• D. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

• (9) Accounts and notes receivable

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

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

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(10) Impairment of financial assets

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

(11) Derecognition of financial assets

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

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

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

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

- (12) Leasing arrangements (lessor) operating leases

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

(13) Inventories

• A. Inventories, including construction in progress, buildings and land held for sale, are measured at acquired cost and capitalise borrowing costs incurred during the period of construction.

• B. The lands use rights of house construction and the superficies rights of acquiring specific lands the Group acquired for construction development and leasing are in accordance with paragraph 6 and 8 of IAS 2, therefore, the acquired costs of land use rights are recognised as inventories.

• C. The cost of the computers and peripheral products is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and relating production overheads (allocated based on normal operating capacity). It excludes borrowing costs.

• D. Inventories are stated at the lower of cost and net realisable value. 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.

(14) Non-current assets held for sale

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

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(15) Investments accounted for using equity method / associates

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

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

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

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

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

• (16) Property, plant and equipment

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

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

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

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• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Errors’, from the date of the change. The estimated useful lives are as follows:	of property, plant and equipment
Buildings and structures	2 ~ 50 years
Machinery and equipment	3 ~ 5 years
Molding equipment	1 ~ 3 years
Computer and communication Equipment	3 ~ 5 years
Transportation equipment	1 ~ 5 years
Office equipment	3 ~ 5 years
Other equipment	3 ~ 5 years
Leasehold improvements	5 ~ 30 years

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

Effective 2019

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

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payment is fixed payments, less any lease incentives receivable.

• The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• 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;

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

• (c) Any initial direct costs incurred by the lessee.

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.

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(18) Operating leases (lessee)

Prior to 2019

Payments made under an operating lease (net of any incentives received from the lessor) are recognised in profit or loss on a straight-line basis over the lease term.

(19) Investment property

• A. The investment property is to earn rental revenue or for capital appreciation or both instead of non-owner-occupied property held by the Group.

• B. The Group acquired the specific land superficies and its right to use of the constructed buildings on the land. Due to the development of the construction plans, the Group leased the land as the investing properties and recognised the acquired historical cost of the land use rights as the basis.

• C. 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.

(20) Intangible assets

• A. Computer software

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

• B. Goodwill

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

• (21) Impairment of non-financial assets

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

• B. The recoverable amounts of goodwill are evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed in the following years.

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

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level.

(22) 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 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.

• (23) 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.

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

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

• B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.

• (25) Bonds payable

• Ordinary corporate bonds issued by the Group are initially recognised at fair value less transaction costs. Any difference between the proceeds (net of transaction costs) and the redemption value is presented as an addition to or deduction from bonds payable, which is amortised to profit or loss over the period of bond circulation using the effective interest method as an adjustment to ‘finance costs’.

(26) Derecognition of financial liabilities

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

(27) 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.

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(28) Non-hedging 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.

(29) Provisions

Warranty provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated.

(30) 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 expense in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plans

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

• (b) Defined benefit plans

• i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.

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

• iii. Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.

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

  • Employees’ compensation and directors’ and supervisors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal 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 paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

• (31) 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 tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred 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 tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred 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 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 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

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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.

• G. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

• H. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised in profit or loss.

(32) Share capital

• A. Ordinary shares are classified as equity.

• 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.

(33) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved 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.

(34) Revenue recognition

• A. Sales of goods

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

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• (b) The computers are often sold with volume discounts based on aggregate sales over a 12month period. Revenue from these sales is recognised based on the price specified in the contract, net of the estimated volume discounts and sales discounts and allowances. Accumulated experience is used to estimate and provide for the volume discounts and sales discounts and allowances, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognised for expected volume discounts and sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. The sales usually are made with a credit term of 30 days to 120 days. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

• (c) The Group’s obligation to provide a refund for faulty products under the standard warranty terms is recognised as a provision.

• (d) 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. Booth rental revenue

The Group held investment properties to earn rentals, and lease revenue is recognised on a straight-line basis over the lease term.

• C. Land development and resale

• (a) The Group develops and sells residential properties. Revenue is recognised when control over the property has been transferred to the customer. The properties have generally no alternative use for the Group due to contractual restrictions. However, an enforceable right to payment does not arise until legal title has passed to the customer. Therefore, revenue is recognised at a point in time when the legal title has passed to the customer.

• (b) The revenue is measured at an agreed upon amount under the contract. The consideration is due when legal title has been transferred.

• D. Hotel revenue

• (a) The main services the Group provides are food services and accommodations.

• (b) Food services revenue is recognised at a point in time when the products are sold to the customers and the payments are charged immediately. The Group’s sales policy offers customers the rights of return within a certain time period. The estimate of sales return is evaluated with expected method based on historical experiences at the time of sale, and accumulated revenue the Group recognised shall not be reversed in the following years according to historical experiences. The validity of this assumption and estimated amount of returns are reassess at each reporting date.

• (c) The accommodations revenue is recognised on a straight-line basis throughout the period of

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stay of the customer. The customer pays at the time specified in the payment schedule.

E. Incremental costs of obtaining a contract

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

(35) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are recognised as non-current liabilities and are amortised to profit or loss over the estimated useful lives of the related assets using the straight-line method.

(36) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Group’s chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

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

UNCERTAINTY

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

(1) Critical judgements in applying the Group’s accounting policies

• Investment property

The Group uses a portion of the property for its own use and another portion to earn rentals or for capital appreciation. When these portions cannot be sold separately and cannot be leased out separately under a finance lease, the property is classified as investment property only if the own-use portion accounts for an insignificant part of the property.

(2) Critical accounting estimates and assumptions

• A. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet

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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.

As of September 30, 2019, the carrying amount of inventories was $5,058,814.

• B. Investment property measured at fair value

The Group assesses the fair value of investment property based on the professional judgement of appraiser, and determines the future cash flows of the investment property, discount rate and the future possible income and expenses arising from the assets depending on how assets are utilised and industrial characteristics. Any changes of economic circumstances or estimates due to the change of Group strategy might cause material effect in the amount of investment property measured at fair value.

As of September 30, 2019, the carrying amount of investment property was $62,899,784.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	September 30,2019		December 31,2018		September 30,2018
		2,247 $ 4,942,522 2,197,192 7,141,961 $		5,604 $ 3,736,018 4,054,921 7,796,543 $		2,550 $ 2,919,968 724,107 3,646,625 $

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

• B. Time deposits pledged to others as collateral for borrowings and those with maturity over three months totaling to $3,496,331, $4,865,618 and $4,981,203 were classified as financial assets at amortised cost as of September 30, 2019, December 31, 2018 and September 30, 2018, respectively.

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

September 30, 2019 December 31, 2018 September 30, 2018

Current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks Beneficiary certificates Valuation adjustment	853,948 $ 977,886 $ 975,557 $ 475,209 477,229 473,787 1,329,157 1,455,115 1,449,344 405,045 132,125) ( 55,725) ( 1,734,202 $ 1,322,990 $ 1,393,619 $

~53~

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

Financial assets mandatorily measured at fair value through profit or loss Equity instruments Beneficiary certificates Financial assets mandatorily measured at fair value through profit or loss Equity instruments Beneficiary certificates	Three-month period ended Three-month period ended September30,2019 September30,2018 95,880 $ 62,623) ($ 106,217 134,969) ( 202,097 $ 197,592) ($ Nine-month period ended Nine-month period ended September 30,2019 September 30,2018 324,905 $ 122,950) ($ 278,568 211,599) ( 603,473 $ 334,549) ($

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

• C. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(3).

(3) Notes and accounts receivable

in Note 12(3). Notes and accounts receivable
	September 30,2019		December 31,2018		September 30,2018
Notes receivable	$	-	$	-	$	1,090
Accounts receivable	$	2,463,076	$	1,679,433	$	2,030,640
Accounts receivable - related
parties		1,045		3,166		-
Less: Allowance for uncollectible
accounts	(	42,158)	(	55,572)	(	43,515)
	$	2,421,963	$	1,627,027	$	1,987,125

~54~

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

is as follows:
Not past due Up to 30 days 31 to 90 days 91 to 180 days Over 180 days Not past due Up to 30 days 31 to 90 days 91 to 180 days Over 180 days	Accounts receivable Notes receivable 1,858,890 $ - $ 433,229 - 45,638 - 59,443 - 66,921 - 2,464,121 $ - $ September 30,2019 Notes receivable	Accounts receivable Notes receivable 1,022,099 $ - $ 474,839 - 89,944 - 32,332 - 63,385 - 1,682,599 $ - $ December 31,2018 September 30,2018	December 31,2018
				Notes receivable
	1,858,890 $ 433,229 45,638 59,443 66,921			- $ - - - -
	2,464,121 $			- $
		Accounts receivable 1,479,522 $ 359,044 70,293 47,397 74,384 2,030,640 $		Notes receivable
				1,090 $ - - - -
				1,090 $

The above ageing analysis was based on past due date.

• B. As of September 30, 2019, December 31, 2018, September 30, 2018 and January 1, 2018, the balances of receivables (including notes receivable) from contracts with customers amounted to $2,464,121, $1,682,599, $2,031,730 and $2,011,990, respectively.

• C. The Group has no accounts receivable and notes receivable pledged to others.

• D. As at September 30, 2019, December 31, 2018 and September 30, 2018, 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 Group’s notes and accounts receivable was $2,421,963, $1,627,027 and $1,988,215, respectively.

• E. The Group has taken out credit insurance on accounts receivable from some of the main clients. The Group will get compensation based on the agreements.

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

~55~

(4) Inventories

Inventories
Raw materials Semi-finished goods Work in progress Finished goods Merchandise inventory Inventory in transit Construction in progress Buildings and land held for sale Raw materials Semi-finished goods Finished goods Merchandise inventory Inventory in transit Construction in progress Buildings and land held for sale Raw materials Semi-finished goods Finished goods Merchandise inventory Inventory in transit Construction in progress Buildings and land held for sale			September 30,2019		Book value 1,599,614 $ 116,324 105,629 5,338 8,088 - 1,834,993 - 3,223,821 3,223,821 $5,058,814 Book value 2,004,896 $ 141,752 126,030 36,988 2,942 2,312,608 4,874,213 709,210 5,583,423 $7,896,031
		Cost 1,650,474 $ 118,495 106,286 5,338 8,088 - 1,888,681 - 3,281,263 3,281,263 $5,169,944	Allowance for valuation loss (50,860) $ 2,171) ( 657) ( - - - 53,688) ( - 57,442) ( 57,442) ( ($111,130) December 31,2018
				Allowance for valuation loss 47,476) ($ 2,929) ( 721) ( - - 51,126) ( - 37,752) ( 37,752) ( ($88,878)		Book value 1,655,377 $ 165,712 10,372 8,020 7,654 1,847,135 4,654,639 650,038 5,304,677 $7,151,812

~56~

• A. The cost of inventories recognised as expense was $4,555,368, $3,528,763, $12,715,102 and $11,642,692, including $20,226, $0, $20,226 and $21,363 that the Group reversed from a previous inventory write-down and accounted for as reduction of cost of goods sold due to the sales of building and land held for sale for the three-month and nine-month periods ended September 30, 2019 and 2018, respectively as well as the amounts of $8,735, $7,532, $17,589 and ($1,011) that the Group wrote down (reversed) from cost to net realisable value accounted for as (reduction) increase in cost of goods sold for the three-month and nine-month periods ended September 30, 2019 and 2018, respectively.

• B. The amount of capitalised borrowings cost for the three-month and nine-month periods ended September 30, 2019 and 2018 was ($1,702), $26,054, $24,928 and $82,216, respectively, and the capitalised rate was 4.35%~5.94%, 4.50%~5.32%, 4.35%~5.94% and 4.50%~5.32%, respectively.

• C. As of September 30, 2019, inventories pledged are described in Note 8.

• (5) Investments accounted for using equity method

Chicony Square (Wuhan) Inc. Chicony Square (Cayman) Inc. Chicony Chengdu International Inc. Other non-current liabilities Chicony Square (Cayman) Inc.		September 30,2019 2,372,442 $ - 36,702 2,409,144 $ September 30,2019 58,294 $	December 31,2018 2,482,777 $ - 35,440 2,518,217 $ December 31,2018 48,753 $		September 30,2018
					2,453,436 $ - 32,868 2,486,304 $ September 30,2018
					59,391 $

• A. The basic information of the associates that are material to the Group is as follows:

Companyname	Principal place of business	Shareholdingratio	Shareholdingratio	Nature of relationship	Method of measurement
Chicony Square (Wuhan) Inc. Chicony Square (Cayman) Inc. Chicony Chengdu International Inc.	China (Note 2) China (Note 3) China (Note 2)	September 30,2019	December 31,2018	Significant influence associate Significant influence associate Significant influence associate	Equity method Equity method Equity method
		30% 30% 3.75% (Note 1)	30% 30% 3.75% (Note 1)

~57~

Companyname	Principal place of business	Shareholdingratio	Nature of relationship	Method of measurement Equity method Equity method Equity method
Chicony Square (Wuhan) Inc. Chicony Square (Cayman) Inc. Chicony Chengdu International Inc.	China (Note 2) China (Note 3) China (Note 2)	September 30,2018	Significant influence associate Significant influence associate Significant influence associate
		30% 30% 3.75% (Note 1)

Note 1: The Group held 30% of shares in these subsidiaries. Note 2: The registration is British Virgin Islands, and the principal place of business is China. Note 3: The registration is Cayman Islands, and the principal place of business is China.

B. The summarised financial information of the associates that are material to the Group is as follows:

Balance sheet

Balance sheet
		Chicony		Square(Wuhan)	Inc.
	September 30,2019		December 31,2018		September 30,2018
Current assets	$	446,291	$	1,817,711	$	1,779,884
Non-current assets		7,493,327		7,457,179		7,378,819
Current liabilities	(	31,477)	(	998,964)	(	980,584)
Total net assets	$	7,908,141	$	8,275,926	$	8,178,119
Carrying amount of the associate	$	2,372,442	$	2,482,777	$	2,453,436
		Chicony		Square(Cayman)	Inc.
	September 30,2019		December 31,2018		September 30,2018
Current assets	$	2,396	$	2,376	$	2,356
Non-current assets		2,314,042		2,273,678		2,202,914
Current liabilities	(	184,702)	(	129,914)	(	111,765)
Non-current liabilities	(	2,326,050)	(	2,308,650)	(	2,291,475)
Total net assets	($	194,314)	($	162,510)	($	197,970)
Carrying amount of the associate	($	58,294)	($	48,753)	($	59,391)

~58~

Current assets Non-current assets Total net assets Carrying amount of the associate		ChiconyChengdu International Inc.	ChiconyChengdu International Inc.	ChiconyChengdu International Inc.
		September 30,2019 33 $ 978,692 978,725 $ 36,702 $	December 31,2018 33 $ 945,023 945,056 $ 35,440 $	September 30,2018 32 $ 876,451 876,483 $ 32,868 $

Carrying amount of the associate

Statement of comprehensive income

Chicony Square (Wuhan) Inc.

Profit (loss) for the period from continuing operations Other comprehensive loss, net of tax Total comprehensive loss

	Three-month period ended	Three-month period ended	Three-month period ended	Three-month period ended
		September 30,2019		September 30,2018
	($	7,327)	($	76,016)
	(	197,679)	(	255,627)
	($	205,006)	($	331,643)

Profit (loss) for the period from continuing operations Other comprehensive loss, net of tax Total comprehensive income (loss)

Loss for the period from continuing operations Other comprehensive loss, net of tax Total comprehensive loss

	ChiconySquare(Wuhan)Inc.	ChiconySquare(Wuhan)Inc.	ChiconySquare(Wuhan)Inc.
Nine-month period ended		Nine-month period ended
	September 30,2019		September 30,2018
$	225,317	($	116,392)
(	152,830)	(	184,946)
$	72,487	($	301,338)
	ChiconySquare(Cayman)Inc.
Three-month period ended		Three-month period ended
	September 30,2019		September 30,2018
($	53,628)	($	42,719)
(	26,054)	(	30,599)
($	79,682)	($	73,318)

Loss for the period from continuing operations Other comprehensive loss, net of tax Total comprehensive loss

ChiconySquare	(Cayman)Inc.
Nine-month period ended Nine-month period ended September 30,2019 September 30,2018 11,079) ($ 36,615) ($ 20,707) ( 17,726) ( 31,786) ($ 54,341) ($

~59~

Loss for the period from continuing operations Other comprehensive loss, net of tax Total comprehensive loss Profit for the period from continuing operations Other comprehensive loss, net of tax Total comprehensive income		ChiconyChengdu	International Inc.
	Three-month period ended Three-month period ended September 30,2019 September 30,2018 43,643) ($ 29,844) ($ 29,776) ( 34,970) ( 73,419) ($ 64,814) ($ ChiconyChengdu International Inc.
	Nine-month period ended Nine-month period ended September 30,2019 September 30,2018 57,334 $ 11,441 $ 23,665) ( 20,258) ( 33,669 $ 8,817) ($

• C. The amounts of associates accounted for under the equity method recognised by the Group were based on the financial statements of each associate that were not reviewed by the independent accountants for the corresponding periods. For the three-month and nine-month periods ended September 30, 2019 and 2018, the Group recognised share of profit (loss) and other comprehensive income of associates amounting to ($74,447), ($106,480), $22,683 and ($94,719), respectively. On September 30, 2019 and 2018, the investments accounted for under the equity method amounted to $2,409,144 and $2,486,304 and the credit balance of long-term investments (shown as other non-current liabilities) amounted to $58,294 and $59,391, respectively. On December 31, 2018, the amounts of associates accounted for under the equity method recognised by the Group were based on the financial statements of each associate that were audited by the independent accountants for the corresponding period. The related investments accounted for under equity method and the credit balance of long-term investments (shown as other non-current liabilities) amounted to $2,518,217 and $48,753 as of September 30, 2019 and 2018, respectively.

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(6) Property, plant and equipment

At January 1 Cost Accumulated depreciation and impairment Opening net book amount as at January 1 Additions Reclassifications Disposals Depreciation charge Net exchange differences Closing net book amount as at September 30 At September 30 Cost Accumulated depreciation and impairemt						2019
	Land 186,563 $ - 186,563 $ 186,563 $ - - - - - 186,563 $ 186,563 $ - 186,563 $	Buildings and structures	Machinery and equipment	Molding equipment	Computers and communication equipment	Transportation equipment	Office equipment	Leasehold improvements	Other equipment			Total
		2,851,422 $ 517,584) ( 2,333,838 $ 2,333,838 $ 590,160 269,069) ( 8,717) ( 25,127) ( 48,966) ( 2,572,119 $ 3,161,055 $ 588,936) ( 2,572,119 $	783,110 $ 190,016) ( 593,094 $ 593,094 $ 120,598 933 124,432) ( 36,083) ( 13,062) ( 541,048 $ 682,616 $ 141,568) ( 541,048 $	14,487 $ 6,935) ( 7,552 $ 7,552 $ - - - 2,124) ( 170) ( 5,258 $ 14,163 $ 8,905) ( 5,258 $	99,556 $ 72,607) ( 26,949 $ 26,949 $ 1,616 - 7,472) ( 5,559) ( 2,452) ( 13,082 $ 76,010 $ 62,928) ( 13,082 $	46,106 $ 34,764) ( 11,342 $ 11,342 $ 466 - 821) ( 1,539) ( 1,119) ( 8,329 $ 38,131 $ 29,802) ( 8,329 $	187,216 $ 111,780) ( 75,436 $ 75,436 $ 4,996 4) ( 99,402) ( 9,359) ( 14,624) ( 42,957) ($ 71,065 $ 114,022) ( 42,957) ($	124,842 $ 119,331) ( 5,511 $ 5,511 $ 8,847 16,124 3,096) ( 3,978) ( 95 23,503 $ 48,690 $ 25,187) ( 23,503 $	58,751 $ 15,897) ( 42,854 $ 42,854 $ 1,086 11,780) ( 13,522) ( 3,934) ( 1,085) ( 13,619 $ 29,987 $ 16,368) ( 13,619 $

~61~

2018

						2018
At January 1 Cost Accumulated depreciation and impairment Opening net book amount as at January 1 Additions Reclassifications Disposals Depreciation charge Effect of changes between consolidated entities (Note) Net exchange differences Closing net book amount as at September 30 At September 30 Cost Accumulated depreciation and impairemt	Land 186,563 $ - 186,563 $ 186,563 $ - - - - - - 186,563 $ 186,563 $ - 186,563 $	Buildings and structures	Machinery and equipment	Molding equipment	Computers and communication equipment	Transportation equipment	Office equipment	Leasehold improvements	Other epuipment	Construction in progress and equipment to be inspected Total 6,934,525 $ 9,408,735 $ - 933,878) ( 6,934,525 $ 8,474,857 $ 6,934,525 $ 8,474,857 $ 918,913 1,021,978 88,336 88,336 - 10,333) ( - 123,920) ( - 238) ( 148,764) ( 177,838) ( 7,793,010 $ 9,272,842 $ 7,793,010 $ 10,291,918 $ - 1,019,076) ( 7,793,010 $ 9,272,842 $	Total
		1,421,798 $ 444,760) ( 977,038 $ 977,038 $ 4,167 - - 59,736) ( - 19,342) ( 902,127 $ 1,396,832 $ 494,705) ( 902,127 $	338,697 $ 141,902) ( 196,795 $ 196,795 $ 78,490 - 83) ( 35,378) ( 13) ( 4,534) ( 235,277 $ 406,683 $ 171,406) ( 235,277 $	14,688 $ 4,094) ( 10,594 $ 10,594 $ - - - 2,152) ( - 247) ( 8,195 $ 14,346 $ 6,151) ( 8,195 $	107,701 $ 72,135) ( 35,566 $ 35,566 $ 10,171 - 6,103) ( 10,028) ( 206) ( 936) ( 28,464 $ 99,744 $ 71,280) ( 28,464 $	52,598 $ 38,997) ( 13,601 $ 13,601 $ 1,244 - 1,200) ( 1,830) ( - 1,020) ( 10,795 $ 44,586 $ 33,791) ( 10,795 $	175,550 $ 103,420) ( 72,130 $ 72,130 $ 4,600 - 956) ( 10,836) ( - 1,763) ( 63,175 $ 172,743 $ 109,568) ( 63,175 $	124,628 $ 114,728) ( 9,900 $ 9,900 $ - - 1,834) ( 579) ( - 187) ( 7,300 $ 123,713 $ 116,413) ( 7,300 $	51,987 $ 13,842) ( 38,145 $ 38,145 $ 4,393 - 157) ( 3,381) ( 19) ( 1,045) ( 37,936 $ 53,698 $ 15,762) ( 37,936 $
											9,272,842 $

Note: Refer to Note 6(31) B for the effect of changes between consolidated entities.

A. Refer to Note 6(9) D for the amount of borrowing costs capitalised as part of property, plant, and equipment and the range of the interest rates for the three-month and nine month periods ended September 30, 2019 and 2018.

B. The significant components of the Group's buildings and structures, including main construction, steel structure, and related equipment of underground mezzanine are depreciated from 2 to 15 years.

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

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(7) Leasing arrangements - lessee

• A. The Group leases various assets including land use right and office. Rental contracts are typically made for periods of 5 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

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

Land Land (shown as long-term prepaid rents) Office	September 30,2019 Carryingamount 5,063,587 $ - 70,720 5,134,307 $	December 31,2018 Carryingamount - $ 6,675,527 - 6,675,527 $	September 30,2018
			Carryingamount
			- $ 6,607,620 -
			6,607,620 $

Land Office Land Office	Three-month period ended September 30,2019 Depreciation charge 13,822 $ 3,848 17,670 $ Nine-month period ended September 30,2019 Depreciation charge 54,144 $ 3,848 57,992 $	Three-month period ended September 30,2018
		Rent expense
		1,811 $ -
		1,811 $
		Nine-month period ended September 30,2018
		Rent expense
		5,513 $ -
		5,513 $

• C. For the three-month and nine-month periods ended September 30, 2019, the additions to right-ofuse assets was both $74,442.

• D. For the nine-month period ended September 30, 2019, the Group’s total cash outflow for leases was $70,750.

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

was $70,750. The information on profit and loss accounts related to lease contracts is	as follows:
Three-month period ended Items affecting profit or loss September 30,2019 Interest expense on lease liabilities 509 $ Expense on short-term lease contracts 31,939) ($	Three-month period ended September 30,2018
	- $
	67,143 $

~63~

Items affecting profit or loss Interest expemse on lease liabilities Expense on short-term lease contracts	Nine-month period ended September 30,2019 509 $ 66,393 $	Nine-month period ended September 30,2018
		- $
		186,966 $

• F. Buynow (Xian), Guiyang Buynow, Yinkou Buynow, Anshan Buynow, Dezhou Buynow, Luoyang Buynow, Shantow Buynow, Buynow (Jinzhou) and Kapok (Kunshan) acquired the land use right from their respective local government agencies for a period of 40 to 50 years. Except for the land use right of Kapok (Kunshan) which is for factory land use (as of September 30, 2019, the amount was $21,528), others are for shopping mall land use.

• G. Guiyang Buynow and Yinkou Buynow entered into the state-owned construction land use right assignment contracts for the years ended December 31, 2014 and 2013 with their local government agencies. The total consideration was RMB 327,101, of which RMB 306,538 was paid and RMB 20,563 remains unpaid, as of September 30, 2019. As of September 30, 2019, the transfer of property rights has not yet been completed.

(8) Leasing arrangements - lessor

Effective 2019

• A. The Group leases various assets classified as investment property. Rental contracts are typically made for periods of 1 and 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

• B. For the three-month and nine-month periods ended September 30, 2019, the Group recognised rent income on investment property in the amount of $744,974 and $2,362,630, respectively, based on the operating lease agreement, which does not include variable lease payments.

• C. The maturity analysis of the lease payments under the operating leases is as follows:

2019 2020 2021 2022 2023 2024 2025 and after	September 30,2019
	107,625 $ 416,464 420,019 305,331 280,063 289,255 1,331,710
	3,150,467 $

~64~

(9) Investment property

nvestment property
		2019		2018
At January 1	$	65,426,212	$	69,922,175
Additions from subsequent expenditures		87,571		125,343
Disposals	(	4,066,394)	(	3,861)
Reclassifications		1,295,118		-
Effect of changes between consolidated
entities (Note)		-	(	4,964,608)
Net gains from fair value adjustment		848,197		882,487
Net exchange differences	(	690,920)	(	1,284,663)
At September 30	$	62,899,784	$	64,676,873

Note: Refer to Note 6(31) B. for the effect of changes between consolidated entities.

~65~

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

property are shown below:
Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the period Direct operating expenses arising from the investment property that did not generate rental income during the period Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the period Direct operating expenses arising from the investment property that did not generate rental income during the period	Three-month period ended September 30,2019 744,974 $ 242,463 $ 30,204 $ Nine-month period ended September 30,2019 2,362,630 $ 760,323 $ 109,397 $	Three-month period ended September 30,2018
		806,529 $
		277,924 $
		29,832 $
		Nine-month period ended September 30,2018
		2,524,778 $
		838,563 $
		83,432 $

• B. Measurement of investment property at fair value

The fair value of the investment property held by the Group as at September 30, 2019, December 31, 2018 and September 30, 2018 was $62,899,784, $65,426,212, and $64,676,873, respectively, which was valued by independent appraisers. Valuations were made using the income approach which is categorised within Level 3 in the fair value hierarchy. Key assumptions are as follows:

• (a) Investment property is mainly divided into Taiwan-computer segment and China-Buynow Plaza. Currently, the lease terms of investment property for different segments are: approximately 2 to 5 years for Taiwan-computer segment; 19 years (from 2007 to 2026) for Buynow (Changsha); 35 years (from 2007 to 2042) for Buynow (Nanchang); 20 years (from 2008 to 2028) for Beijing Clevo Investment; 18 years (from 2016 to 2034) for Buynow (Quanzhou); 10 years (from 2017 to 2027) for Suzhou Jinzuo; 15 years (from 2017 to 2023) for Buynow (Huizhou); 15 years (from 2019 to 2034) for Luoyang Buynow, and 1 year for remaining segments. The comparison information between local rent and similar objective property rent is provided in the ‘Summary of fair value disclosure on investment property’ (referred herein as “the following table”).

• (b) Movements of average occupancy rates in the prior year and earnings in prior years are provided in the following table.

• (c) The Group adopts the discounted cash flow analysis under income approach. The estimation process of the appraisal method is subject to the determination of the annual rent growth rate range using the comparison information between local rent and similar objective property rent,

~66~

and takes into consideration vacancy loss to estimate net rent income over the next ten years as future cash inflow and discounted to the date of appraisal with the discount rate described in (d). In addition, considering the ending balance of disposal value of the objective property is calculated based on the operating revenue over the next year starting from the disposal date to estimated remaining lives of the use right at the disposal date, which will be capitalised based on the estimated discount rate and annual rent growth rate as well as discounted to the appraisal date. The market value is calculated based on the ending disposal value plus the present value of rent for each period.

Future cash outflow consists of expenses directly and necessarily related to leasing such as related fees, utilities and promotion costs; and operating expenses necessarily related to operations (i.e. repair expenses), taxes, insurance fees, and capital expenditures. The rates of changes used in the estimation of future movements are in accordance with the rent growth rate used in the imputed rent income.

• (d) The information on the range of discount rates is provided in the following table. The discount rates are determined to take into consideration the interest rate of time deposits or government bonds, as well as the Group’s liquidity, risk, value-added and degree of difficulty of management.

• (e) The fair values of investment property under construction at the appraisal date and income estimation process were first determined by considering the growth of rent income under the forecast market conditions when the construction was completed, and were discounted using expected rental growth rate and vacancy loss to the appraisal date with a 10-year estimation period. Subsequently, the aforementioned discounted values reduced the necessary engineering costs and expenses incurred from appraisal date to expected completion date plus the discounted estimated salvage values.

• (f) The appraisal reports adopted by the Group are co-certified by the real estate appraisers, Charlie Yang and Jia-Hui Chen from Cushman & Wakefield Limited (referred herein as “Cushman & Wakefield”) and Cushman & Wakefield Limited (HK). The appraisal dates are January 1, 2019 and 2018. The Group continued to adopt the appraisal reports of partial investment property on January 1, 2019 and 2018 in the financial statements on September 30, 2019 and 2018. The reasonableness of the reports was reasonably assessed by the real estate appraisers, Charlie Yang from Cushman & Wakefield and Jia-Hui Chen from Cushman & Wakefield Limited (HK) and the review opinion reports were also co-certified.

• (g) The Japan-investment property held by the Group was sold on July 18, 2019, therefore the appraisal reports adopted by Japan-investment property of the Group are co-certified by the real estate appraisers, Charlie Yang and Yoji Kawakami from Cushman & Wakefield Limited and Cushman & Wakefield Limited (Japan). The appraisal dates are September 30, 2019, December 31, 2018, and September 30, 2018.

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Summary of fair value disclosure on investment property:

Nine-month period ended				Japan-investment	Japan-investment
September 30,2019	Computer segment		Buynowplaza		property
Comparative information	$550~$650		$136~$5,555		$3,700~$4,269
between local rent and similar
objective property rent
(dollar / square or square
meter / month)
Movements of earnings in the	$66,907	$29,485~$415,977		$23,595~$72,723
prior year
Average occupancy rates	100%		88%		97%
Nine-month period ended				Japan-investment
September 30,2018	Computer segment		Buynowplaza		property
Comparative information	$570~$720		$138~$5,635		$3,273~$3,818
between local rent and similar
objective property rent
(dollar / square or square
meter / month)
Movements of earnings in the	$70,251	$24,157~$378,488		$22,476~$68,957
prior year
Average occupancy rates	100%		88%		97%
Discount rate	September 30,2019		December 31,2018		September 30,2018
-Computer segment	3.65%		3.65%		3.65%
-Buynow plaza	4.75%~6.75%		4.75%~6.75%		4.75%~6.75%
-Japan-investment property	3.8%~3.9%		3.8%~3.9%		3.8%~3.9%
C. The fair value information about the investment property			is provided in Note 12(3).
D. Amount of borrowing costs capitalised as part of investment property and the range of the interest
rates for such capitalisation are as follows:

Amount capitalised Range of the interest rates for capitalisation	Nine-month period ended September 30,2019 $160,941 4.35%~5.94%	Nine-month period ended September 30,2018
		$283,798 3.95%~5.94%

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

~68~

(10) Intangible assets

Intangible assets
				2019
		Software		Goodwill		Total
At January 1
Cost	$	10,632	$	10,679	$	21,311
Accumulated amortisation and impairment		-		-		-
	$	10,632	$	10,679	$	21,311
At January 1	$	10,632	$	10,679	$	21,311
Additions		17,871		-		17,871
Disposals	(	638)		-	(	638)
Amortisation charge	(	6,571)		-	(	6,571)
Net exchange differences	(	46)	(	238)	(	284)
September 30	$	21,248	$	10,441	$	31,689
At September 30
Cost	$	21,248	$	10,441	$	31,689
Accumulated amortisation and impairment		-		-		-
	$	21,248	$	10,441	$	31,689
				2018
		Software		Goodwill		Total
At January 1
Cost	$	20,214	$	10,828	$	31,042
Accumulated amortisation and impairment		-		-		-
	$	20,214	$	10,828	$	31,042
At January 1	$	20,214	$	10,828	$	31,042
Additions		1,468		-		1,468
Effect of changes between consolidated
entities (Note)	(	65)		-	(	65)
Amortisation charge	(	8,798)		-	(	8,798)
Net exchange differences	(	95)	(	253)	(	348)
September 30	$	12,724	$	10,575	$	23,299
At September 30
Cost	$	12,724	$	10,575	$	23,299
Accumulated amortisation and impairment		-		-		-
	$	12,724	$	10,575	$	23,299

Note: Refer to Note 6(31) B. for the effect of changes between consolidated entities.

~69~

Goodwill arose from Buynow segment of the Group.

Details of amortisation on intangible assets are as follows:

Manufacturing costs Administrative expenses Research and development expenses Manufacturing costs Administrative expenses Research and development expenses	Three-month period ended September 30,2019 $ - 1,282 1,148 $2,430 Nine-month period ended September 30,2019 - $ 3,197 3,374 6,571 $	Three-month period ended September 30,2018 $ - 1,884 978
		$2,862
		Nine-month period ended September 30,2018 207 $ 5,757 2,834 8,798 $

(11) Non-current assets held for sale

The assets related to property, plant and equipment and right-of-use assets of Shantou Buynow Mall Co., Ltd. (part of Buynow plaza segment) have been reclassified as disposal group held for sale following the approval of the Group’s Board of Directors on May 24, 2019 to sell property, plant and equipment and right-of-use assets. The completion date for the transaction is expected by December 2019. As of September 30, 2019, the assets of the disposal group held for sale amounted to $3,848,919.

• A. Assets of disposal group held for sale:

$3,848,919. Assets of disposal group held for sale:
		September 30,2019
Property, plant and equipment	$	3,028,013
Right-of-use assets		975,554
		4,003,567
Accumulated impairment	(	154,648)
	$	3,848,919

• B. Impairment loss of $160,539 was recognised in other gains and losses as a result of the remeasurement of the disposal group held for sale at the lower of its carrying amount or fair value less costs to sell. Information relating to fair value is provided in Note 12(3).

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(12) Short-term borrowings

(13)	Other current liabilities Type of borrowings Bank borrowings Bank secured borrowings Bank secured borrowings Bank secured borrowings Bank secured borrowings Bank unsecured borrowings Type of borrowings Bank borrowings Bank secured borrowings Bank secured borrowings Bank secured borrowings Bank secured borrowings Bank unsecured borrowings Type of borrowings Bank borrowings Bank secured borrowings Bank secured borrowings Bank secured borrowings Bank secured borrowings Bank unsecured borrowings Advance rental revenue Advance disposals of property receipts (Note) Other current liabilities		September 30,2019 378,142 $ 222,477 1,411,200 949,997 7,768,140 10,729,956 $ December 31,2018 419,119 $ 206,650 921,731 2,228,788 4,650,678 8,426,966 $ September 30,2018 375,675 $ 231,335 528,760 981,536 5,714,735 7,832,041 $ September 30,2019	September 30,2019 378,142 $ 222,477 1,411,200 949,997 7,768,140 10,729,956 $ December 31,2018 419,119 $ 206,650 921,731 2,228,788 4,650,678 8,426,966 $ September 30,2018 375,675 $ 231,335 528,760 981,536 5,714,735 7,832,041 $ September 30,2019	Interest rate range Collateral 4.57%~5.22% Letter of credit 3.39%~3.51% Long-term prepaid rent and property, plant and equipment 3.09%~4.57% Time deposits pledged 3.39%~5.65% Investment property 0.95%~4.90% Promissory note Interest rate range Collateral 5.00%～5.65% Letter of credit 3.55%～4.57% Long-term prepaid rent and property, plant and equipment 3.55%～5.65% Investment property 3.64%～4.75% Time deposits pledged 0.95%～4.90% Promissory note Interest rate range Collateral 4.87%～5.22% Letter of credit 3.55%～3.59% Long-term prepaid rent and property, plant and equipment 4.57%～4.75% Demand deposits pledged 3.55%～5.65% Investment property 0.90%～4.57% Promissory note December 31,2018 September 30,2018 536,034 $ 559,465 $ - - 110,136 541,392 646,170 $ 1,100,857 $	Interest rate range Collateral 4.57%~5.22% Letter of credit 3.39%~3.51% Long-term prepaid rent and property, plant and equipment 3.09%~4.57% Time deposits pledged 3.39%~5.65% Investment property 0.95%~4.90% Promissory note Interest rate range Collateral 5.00%～5.65% Letter of credit 3.55%～4.57% Long-term prepaid rent and property, plant and equipment 3.55%～5.65% Investment property 3.64%～4.75% Time deposits pledged 0.95%～4.90% Promissory note Interest rate range Collateral 4.87%～5.22% Letter of credit 3.55%～3.59% Long-term prepaid rent and property, plant and equipment 4.57%～4.75% Demand deposits pledged 3.55%～5.65% Investment property 0.90%～4.57% Promissory note December 31,2018 September 30,2018 536,034 $ 559,465 $ - - 110,136 541,392 646,170 $ 1,100,857 $	Interest rate range Collateral 4.57%~5.22% Letter of credit 3.39%~3.51% Long-term prepaid rent and property, plant and equipment 3.09%~4.57% Time deposits pledged 3.39%~5.65% Investment property 0.95%~4.90% Promissory note Interest rate range Collateral 5.00%～5.65% Letter of credit 3.55%～4.57% Long-term prepaid rent and property, plant and equipment 3.55%～5.65% Investment property 3.64%～4.75% Time deposits pledged 0.95%～4.90% Promissory note Interest rate range Collateral 4.87%～5.22% Letter of credit 3.55%～3.59% Long-term prepaid rent and property, plant and equipment 4.57%～4.75% Demand deposits pledged 3.55%～5.65% Investment property 0.90%～4.57% Promissory note December 31,2018 September 30,2018 536,034 $ 559,465 $ - - 110,136 541,392 646,170 $ 1,100,857 $	Interest rate range Collateral 4.57%~5.22% Letter of credit 3.39%~3.51% Long-term prepaid rent and property, plant and equipment 3.09%~4.57% Time deposits pledged 3.39%~5.65% Investment property 0.95%~4.90% Promissory note Interest rate range Collateral 5.00%～5.65% Letter of credit 3.55%～4.57% Long-term prepaid rent and property, plant and equipment 3.55%～5.65% Investment property 3.64%～4.75% Time deposits pledged 0.95%～4.90% Promissory note Interest rate range Collateral 4.87%～5.22% Letter of credit 3.55%～3.59% Long-term prepaid rent and property, plant and equipment 4.57%～4.75% Demand deposits pledged 3.55%～5.65% Investment property 0.90%～4.57% Promissory note December 31,2018 September 30,2018 536,034 $ 559,465 $ - - 110,136 541,392 646,170 $ 1,100,857 $
				472,349 $ 876,982 39,080 1,388,411 $		536,034 $ - 110,136 646,170 $		559,465 $ - 541,392 1,100,857 $

Note: It refers to advance receipts from non-current assets held for sale.

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(14) Bonds payable

September 30, 2019 Secured bonds payable 5,200,000 $ Less: Current portion 200,000) ( 5,000,000 $	December 31, 2018 5,000,000 $ - 5,000,000 $	September 30, 2018
		5,000,000 $ -
		5,000,000 $

• A. On August 22, 2019, Clevo Co. issued $5,000,000 secured bonds, as approved by the regulatory authority. As of September 30, 2019, the outstanding bonds payable was $5,000,000.

• B. On August 12, 2015, Clevo Co. issued $5,000,000 secured bonds, as approved by the regulatory authority. As of September 30, 2019, the outstanding bonds payable was $200,000.

• C. The terms of the secured bonds are as follows:

Type of Bonds Issuance date Secured bonds payable 2015/8/28 Secured bonds payable 2019/8/26	Period 5 years 5 years	Amount $5,000,000 $5,000,000	Coupon rate	Payment term	Security
			Not exceeding fixed rate of 1.5% Not exceeding fixed rate of 0.8%	Principal is due at maturity. Interest is paid annually at simple interest rate. Principal is due at maturity. Interest is paid annually at simple interest rate.	Authorise Taiwan Cooperative Bank to execute corporate bond guarantee according to the guarantee agreement. Authorise Taiwan Cooperative Bank to execute corporate bond guarantee according to the guarantee agreement.

(Remainder of page intentionally left blank)

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- (15) Long term borrowings

Type of borrowings	Borrowing period and repayment term	Interest rate range	Collateral		September 30, 2019
Unsecured borrowings Borrowing period is from September 28, 2018 to March 16, 2023; interest is payable monthly, principal is payable at maturity date Unsecured borrowings Borrowing period is from December 28, 2018 to December 28, 2023; interest is payable monthly, principal is payable in installments Unsecured borrowings Borrowing period is from June 29, 2015 to November 15, 2021; interest is payable quarterly, principal is payable in installments Secured borrowings Borrowing period is from March 20, 2018 to March 20, 2023; interest is payable monthly, principal is payable at maturity date Secured borrowings Borrowing period is from June 8, 2015 to June 8, 2025; interest is payable monthly, principal is payable in installments Secured borrowings Borrowing period is from June 14, 2017 to June 7, 2022; interest is payable monthly, principal is payable at maturity date Secured borrowings Borrowing period is from December 7, 2011 to August 17, 2028; interest is payable quarterly, principal is payable in installments Secured borrowings Borrowing period is from March 28, 2019 to April 25, 2022; interest is payable quarterly, principal is payable at maturity date Less: Current portion of long-term loans		0.91%~1.35% 1.318%~1.797% 2.78%~3.63% 1.33% 1.60%~6.37% 5.13%~5.94% 4.90%~6.93% 4.75%~5.70%	Promissory note Promissory note Promissory note Property, plant and equipment and investment property Investment property Letter of credit Investment property Time deposits pledged	5,490,000 $ 6,000,000 1,106,391 12,596,391 1,250,000 6,580,525 722,255 4,863,985 276,484 13,693,249 26,289,640 5,622,240) ( 20,667,400 $

~73~

Type of borrowings Borrowing period and repayment term Unsecured borrowings Borrowing period is from September 28, 2018 to December 28, 2023; interest is payable monthly, principal is payable at maturity date Unsecured borrowings Borrowing period is from December 28, 2018 to December 28, 2023; interest is payable monthly, principal is payable in installments Unsecured borrowings Borrowing period is from June 29, 2015 to November 20, 2020; interest is payable quarterly, principal is payable in installments Secured borrowings Borrowing period is from March 20, 2018 to March 20, 2023; interest is payable monthly, principal is payable at maturity date Secured borrowings Borrowing period is from July 27, 2016 to July 27, 2021; interest is payable monthly, principal is payable at maturity date Secured borrowings Borrowing period is from March 30, 2009 to June 8, 2025; interest is payable monthly, principal is payable in installments Secured borrowings Borrowing period is from December 1, 2014 to December 1, 2019; interest is payable monthly, principal is payable in installments Secured borrowings Borrowing period is from June 14, 2017 to June 7, 2022; interest is payable monthly, principal is payable at maturity date Secured borrowings Borrowing period is from November 6, 2014 to November 4, 2021; interest is payable quarterly, principal is payable at maturity date Secured borrowings Borrowing period is from April 23, 2009 to October 17, 2027; interest is payable quarterly, principal is payable in installments Less: Current portion of long-term loans	Interest rate range Collateral 0.91%～1.40% Promissory note 1.309%～1.797% Promissory note 3.14%～4.27% Promissory note 1.33% Property, plant and equipment and investment property 1.6%～6.72% Investment property 1.6%～5.9% Investment property 5.58% Investment property and inventories 5.13%～5.94% Letter of credit 0.58%～5.94% Investment property 4.90%～6.93% Investment property		December 31, 2018
		7,655,000 $ 6,000,000 3,088,190 16,743,190 1,250,000 2,510,975 6,123,268 136,514 781,704 2,700,102 4,338,729 17,841,292 34,584,482 2,747,011) ( 31,837,471 $

~74~

Type of	Borrowing period					September 30,
borrowings	and repayment term	Interest rate range	Collateral			2018
Unsecured	Borrowing period is from October 11, 2017 to	1.26%～1.40%	Promissory note		$	6,755,000
borrowings	March 20, 2023; interest is payable monthly,
	principal is payable at maturity date
Unsecured	Borrowing period is from June 30, 2014 to June	1.80%	Promissory note			4,200,000
borrowings	28, 2019; interest is payable monthly, principal
	is payable in installments
Unsecured	Borrowing period is from June 29, 2015 to	2.99%～3.83%	Promissory note			2,890,299
borrowings	November 20, 2020; interest is payable
	quarterly, principal is payable in installments
						13,845,299
Secured	Borrowing period is from March 20, 2018 to	1.33%	Property, plant			1,250,000
borrowings	March 20, 2023; interest is payable monthly,		and equipment
	principal is payable at maturity date		and investment
			property
Secured	Borrowing period is from January 15, 2018 to	1.60%	Investment			1,300,000
borrowings	September 28, 2023; interest is payable		property
	monthly, principal is payable at maturity date
Secured	Borrowing period is from March 30, 2009 to	1.60%～5.70%	Investment			6,550,600
borrowings	June 8, 2025; interest is payable monthly,		property
	principal is payable in installments
Secured	Borrowing period is from December 1, 2014 to	5.58%	Investment			135,183
borrowings	December 1, 2019; interest is payable monthly,		property and
	principal is payable in installments		inventories
Secured	Borrowing period is from June 14, 2017 to June	5.13%～5.94%	Letter of credit			798,848
borrowings	7, 2022; interest is payable monthly, principal is
	payable at maturity date
Secured	Borrowing period is from November 6, 2014 to	0.58%～5.94%	Investment			2,685,567
borrowings	November 4, 2021; interest is payable quarterly,		property
	principal is payable at maturity date
Secured	Borrowing period is from April 23, 2009 to	4.51%～6.93%	Investment			3,919,025
borrowings	August 17, 2028; interest is payable quarterly,		property
	principal is payable in installments
						16,639,223
						30,484,522
Less: Current	portion of long-term loans			(		8,197,561)
					$	22,286,961

~75~

(16) Pensions

A. Defined benefit pension plans

• (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Act, 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 Act. 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 aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

• (b) For the aforementioned pension plan, the Group recognised pension costs of $2,471, $2,685, $7,459 and $8,800 for the three-month and nine-month periods ended September 30, 2019 and 2018, respectively.

• (c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2020 amount to $11,937.

B. Defined contribution plans

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

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

• (c) The pension costs under the defined contribution pension plans of the Group for the threemonth and nine-month periods ended September 30, 2019 and 2018 were $8,882, $9,048, $27,165 and $26,733, respectively.

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(17) Provisions

Analysis of total provisions: At January 1, 2019 Additional provisions Used during the period At September 30, 2019 Current	September 30,2019 50,523 $	$ ( $ December 31,2018 50,523 $		Warranty
				50,523 47,283 47,283)
			$	50,523
				September 30,2018
				50,523 $

The Group provides warranties on computer products sold. Provision for warranty is estimated based on historical warranty data of computer products.

(18) Share capital

A. As of September 30, 2019, the Company’s authorized capital was $7,500,000, consisting of 750 million shares of ordinary stock, and the paid-in capital was $6,697,630, consisting of 679,763 thousand shares with a par value of $10 (in dollars) per share. On June 15, 2012, the Board of Directors resolved to increase the Company’s authorized capital in the articles of incorporation to $9,000,000, consisting of 900 million shares of ordinary stock, with a par value of $10 (in dollars) per share. The foregoing includes 20 million shares reserved for employee stock options with a par value of $10 (in dollars) per share, which the Board of Directors are authorized to issue depending on actual demand.

Movements in the number of the Company’s ordinary shares outstanding are as follows:

	2019			2018
At January 1		679,763			683,163
Capital reduction by treasury stock	(	10,000)	(		3,400)
At September 30		669,763			679,763

B. Treasury shares

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

shares are as follows:
Name of company holding the shares	Reason for reacquisition	September	30,2019
		Number of shares	Carryingamount
The Company Subsidiary-Kapok Computer Subsidiary-Clevo Investment	To be reissued to employees Long-term investment Long-term investment	37,500 thousand 16,967 thousand 10,081 thousand	$ 1,153,554 95,305 108,183

~77~

Name of company holding the shares	Reason for reacquisition	December 31,2018	December 31,2018
		Number of shares	Carryingamount
The Company Subsidiary-Kapok Computer Subsidiary-Clevo Investment	To be reissued to employees Long-term investment Long-term investment	35,300 thousand 16,966 thousand 10,081 thousand	$ 1,079,740 95,305 108,183

Name of company holding the shares	Reason for reacquisition	September 30,2018	September 30,2018
		Number of shares	Carryingamount
The Company Subsidiary-Kapok Computer Subsidiary-Clevo Investment	To be reissued to employees Long-term investment Long-term investment	30,000 thousand 16,966 thousand 10,081 thousand	$ 920,123 95,305 108,183

• (b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares 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 Act, treasury shares 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 Act, treasury shares 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.

(19) 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 Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

~78~

(20) 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 and then 10% of the remaining amount shall be set aside as legal reserve. However, when the legal reserve amounts to the authorized capital, this shall not apply. According to the law or the authority, the special surplus reserve shall be set or reversed. If there is still surplus, the Board of Directors shall draft the allocation resolved by the shareholders' meeting.

• B. The Company belongs to high tech and electronics industry and as the Company operates in a volatile business environment and is in the stable growth stage, the residual dividend policy is adopted taking into consideration the Company’s financial structure, operating results and future expansion plans, based on vision of industrial development, capital expenditure demand, sound financial plan and protect the right and interests of investors. According to the dividend policy, cash dividends shall account for at least 10% of the total dividends distributed.

• 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. Special reserve

• (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.

• (c) According to Jin-Guan-Zheng-Fa-Zi Letter No.1030006415, dated March 18, 2014, investment properties are initially and subsequently measured using fair value model. Changes of value due to appreciation as of December 31, 2013 are reflected on the increase of Appropriated Retained Earnings. The Company will recognise the reversal of earnings if subsequently disposed or the investment properties decrease.

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• E. The appropriations of 2018 and 2017 earnings as resolved by the shareholders on June 18, 2019 and June 15, 2018 are as follows:

Legal reserve Special reserve Cash dividends			2018			2017
		Amount	Dividends per share (in dollars)		Amount	Dividends per share (in dollars)
		145,490 $ 1,194,446 128,453 1,468,389 $	0.20 $		71,778 $ 1,008,166 - 1,079,944 $	- $

The Company appropriated cash from capital surplus as resolved by the stockholders during their meeting on June 18, 2019. The dividends per share is NTD 0.8, and the total amount is $513,810. The above appropriations of 2018 and 2017 earnings are the same with those approved by the Board of Directors on March 27, 2019 and March 27, 2018, repectively.

• F. For the information relating to employees’ compensation (bonuses) and directors’ and supervisors’ remuneration, please refer to Note 6(27).

(21) Other equity items

remuneration, please refer to Note 6(27). Other equity items
At January 1 Currency translation differences: –Group –Tax on Group –Associates –Tax on associates At September 30		2019
	Currency translation 2,741,605) ($ 1,212,027) ( 34,730 53,002) ( 10,600 3,961,304) ($	Revaluation Total 20,922 $ 2,720,683) ($ - 1,212,027) ( - 34,730 - 53,002) ( - 10,600 20,922 $ 3,940,382) ($

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At January 1 Effect of retrospective application and retrospective restatement Valuation adjustment Currency translation differences: –Group –Tax on Group –Associates –Tax on associates At September 30		2018	2018	2018
	Available-for- sale investment	Currency translation		Revaluation	Total
	97,879 $ 97,879) ( - - - - - - $	2,138,991) ($ - - 1,101,270) ( 6,876) ( 61,652) ( 12,403 3,296,386) ($		20,922 $ - - - - - - 20,922 $	2,020,190) ($ 97,879) ( - - 1,101,270) ( 6,876) ( 61,652) ( 12,403 3,275,464) ($

	–Group –Tax on Group –Associates –Tax on associates At September 30 $	- 1,101,270) ( - 6,876) ( - 61,652) ( - 12,403 - 3,296,386) ($ $	- 1,101,270) ( - 6,876) ( - 61,652) ( - 12,403 20,922 3,275,464) ($
(22)	Operating revenue Revenue from contracts with customers -Sales revenue of computer products -Land development and resale -Hotel revenue -Other revenue Others-rental revenue	Three-month period ended September 30,2019 4,394,899 $ 604,963 19,992 130,301 786,190 5,936,345 $	Three-month period ended September 30,2018
			3,728,296 $ 200,641 23,381 128,837 890,634
			4,971,789 $

Revenue from contracts with customers -Sales revenue of computer products -Land development and resale -Hotel revenue -Other revenue Others-rental revenue	Nine-month period ended September 30,2019 11,319,497 $ 2,200,485 71,603 503,055 2,508,558 16,603,198 $	Nine-month period ended September 30,2018
		11,652,423 $ 830,277 77,340 364,660 2,803,833
		15,728,533 $

~81~

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods over time and at a point in time in the following major product lines and geographical regions:

Computer

Three-month period ended September 30,2019						Buynow Plaza								Total
						Land development and resale		Hotel accommodations revenue				Others
Total segment revenue Inter-segment revenue Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Nine-month period ended September 30, 2019									19,992 $ -			130,301 $ -
			4,394,899 $						19,992 $			130,301 $
			4,394,899 $ -						- $ 19,992			130,301 $ -
			4,394,899 $						19,992 $			130,301 $
			Computer Segment
			Computer products			Land development and resale	Hotel accommodations revenue					Others
Total segment revenue Inter-segment revenue Revenue from external customer contracts Timing of revenue recognition At a point in time Over time	20,134,840 $ 8,815,343) ( 11,319,497 $ 11,319,497 $ - 11,319,497 $				2,200,485 $ - 2,200,485 $ 2,200,485 $ - 2,200,485 $			71,603 $ - 71,603 $ - $ 71,603 71,603 $			503,055 $ - 503,055 $ 503,055 $ - 503,055 $

~82~

Three-month period ended September 30, 2018	Computer Segment Computer products 6,418,319 $ 2,690,023) ( 3,728,296 $ 3,728,296 $ - 3,728,296 $ Computer Segment	Computer Segment Computer products 6,418,319 $ 2,690,023) ( 3,728,296 $ 3,728,296 $ - 3,728,296 $ Computer Segment	Buynow Plaza	Buynow Plaza	Others 128,837 $ - 128,837 $ 128,837 $ - 128,837 $	Total
			Land development and resale 200,641 $ - 200,641 $ 200,641 $ - 200,641 $	Hotel accommodations revenue 23,381 $ - 23,381 $ - $ 23,381 23,381 $ Buynow Plaza
Total segment revenue Inter-segment revenue Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Nine-month period ended September 30, 2018						6,771,178 $ 2,690,023) ( 4,081,155 $ 4,057,774 $ 23,381 4,081,155 $ 21,582,034 $ 8,657,334) ( 12,924,700 $ 12,847,360 $ 77,340 12,924,700 $ Total
		Computer products	Land development and resale	Hotel accommodations revenue	Others
Total segment revenue Inter-segment revenue Revenue from external customer contracts Timing of revenue recognition At a point in time Over time	20,309,757 $ 8,657,334) ( 11,652,423 $ 11,652,423 $ - 11,652,423 $		830,277 $ - 830,277 $ 830,277 $ - 830,277 $	77,340 $ - 77,340 $ - $ 77,340 77,340 $	364,660 $ - 364,660 $ 364,660 $ - 364,660 $

~83~

B. Contract assets and liabilities

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

	September 30,	September 30,		December 31,	September 30,	September 30,	September 30,
		2019		2018	2018			January1,2018
Contract liabilities:
Contract liabilities –
Advance
real estate receipts	$	1,165,829	$ 3,114,721		$ 2,876,082			$	2,520,270
Contract liabilities –
Advance
sales receipts		33,802		31,316		44,067			573,749
	$	1,199,631	$3,146,037		$2,920,149			$	3,094,019
. Revenue recognised that was included			in the contract liability balance				at the	beginning of the
period
			Three-month period ended			Three-month period ended
				September 30,	2019		September 30,2018
Revenue recognised that	was	included
in the contract liability balance at the
beginning of the period
Advance real estate receipts			$		489,261	$			4,886
Advance sales receipts			(		3,389)				405,827
			$		485,872	$			410,713
			Nine-month period ended			Nine-month period ended
				September 30,	2019		September 30,2018
Revenue recognised that	was	included
in the contract liability balance at the
beginning of the period
Advance real estate receipts			$	1,889,828		$			332,769
Advance sales receipts					31,316				573,749
			$	1,921,144		$			906,518

• C. Revenue recognised that was included in the contract liability balance at the beginning of the period

~84~

(23) Other income

Other income
Interest income: Interest income from bank deposits Rent income Dividend income Other income	Three-month period ended September 30,2019 38,650 $ 17,265 1,630 105,053 162,598 $	Three-month period ended September 30,2018
		25,148 $ 16,884 1,858 52,796
		96,686 $

Interest income: Interest income from bank deposits Rent income Dividend income Other income	Nine-month period ended September 30,2019 152,815 $ 51,832 25,178 223,126 452,951 $	Nine-month period ended September 30,2018
		77,631 $ 47,080 32,364 292,622
		449,697 $

(24) Other gains and losses

Other gains and losses
	Three-month period ended		Three-month period ended
		September 30,2019			September 30,2018
Losses on disposals of property, plant, and	($	2,558)	($		845)
equipment
Gains on disposals of investment property		463,078			-
Gains on disposals of investments		41,098			173
Foreign exchange losses	(	166,710)	(		359,155)
Gains (losses) on financial assets at fair		160,999	(		205,826)
value through profit or loss
Gains on fair value adjustment, investment		7,491			863,767
property
Other losses	(	55,902)	(		4,119)
	$	447,496		$	293,995

~85~

		Nine-month period ended	Nine-month period ended			Nine-month period ended	Nine-month period ended
			September 30,2019				September 30,2018
Gains (losses) on disposals of property,
plant, and equipment	$		2,218	($			2,855)
Gains (losses) on disposals of investment			463,078				-
property
Gains (losses) on disposals of investments			65,089	(			5,176)
Gains (losses) on disposals of subsidiary			-				944,976
Foreign exchange gains (losses)	(		136,094)	(			287,870)
Gains (losses) on financial assets at fair			538,384	(			329,373)
value through profit or loss
Gains on fair value adjustment, investment			848,197				882,487
property
Impairment loss recognised in profit or	(		160,539)				-
loss, non-current asset held for sale
Other losses	(		123,996)	(			16,472)
	$		1,496,337	$			1,185,717
Finance costs
		Three-month period ended			Three-month period ended
			September 30,2019				September 30,2018
Interest expense from bank borrowings		$	320,570			$	311,507
Less: Capitalisation of qualifying assets	(		30,196)	(			115,406)
Financial costs		$	290,374		$		196,101
		Nine-month period ended				Nine-month period ended
			September30,2019				September30,2018
Interest expense from bank borrowings		$	1,063,758		$		1,011,989
Less: Capitalisation of qualifying assets	(		185,869)	(			366,014)
Financial costs		$	877,889		$		645,975
Expenses by nature
		Three-month period ended			Three-month period ended
			September 30,2019				September 30,2018
Employee benefit expense		$	642,059		$		657,918
Depreciation charges on property, plant
and equipment			23,687				38,908
Amortisation charges on right-of-use
assets			17,670				-
Amortisation charges on intangible assets			2,430				2,862
Amortisation charges on long-term prepaid
rent			-				1,811
		$	685,846		$		701,499

(25) Finance costs

(26) Expenses by nature

~86~

Employee benefit expense Employee benefit expense Depreciation charges on property, plant and equipment Amortisation charges on right-of-use assets Amortisation charges on intangible assets Amortisation charges on long-term prepaid rent Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses	Nine-month period ended September 30,2019 1,783,600 $ 87,703 57,992 6,571 - 1,935,866 $ Three-month period ended September 30,2019 511,284 $ 16,241 11,353 103,181 642,059 $ Nine-month period ended September 30,2019 1,433,786 $ 44,979 34,624 270,211 1,783,600 $	Nine-month period ended September 30,2018
		1,792,246 $ 123,920 - 8,798 5,513
		1,930,477 $
		Three-month period ended September 30,2018
		537,755 $ 16,405 11,733 92,025
		657,918 $
		Nine-month period ended September 30,2018
		1,419,780 $ 44,320 35,533 292,613
		1,792,246 $

(27) Employee benefit expense

• A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, shall be distributed as employees’ compensation and directors’ and supervisors’ remuneration. The ratio shall be 5%~15% for employees’ compensation and shall not be higher than 1% for directors’ and supervisors’ remuneration.

• B. For the three-month and nine-month periods ended September 30, 2019 and 2018, employees’ compensation was accrued at ($3,330), $20,431, $86,840 and $88,431, respectively; while directors’ and supervisors’ remuneration was accrued at $5,250, $13,887, $13,760 and $15,887, respectively. The aforementioned amounts were recognised in salary expenses.

• The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 5%~15% and not higher than 1% of distributable profit of current year for the nine-month period ended September 30, 2019.

~87~

Employees’ compensation and directors’ and supervisors’ remuneration for 2018 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2018 financial statements.

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

(28) Income tax

A. Income tax expense

• (a) Components of income tax expense:

e tax ome tax expense Components of income tax expense:
		Three-month period ended			Three-month period ended
			September 30,2019			September 30,2018
Current tax:
Current tax on profits for the period		$	497,612		$	503,690
Prior year income tax
underestimation			-			519
Total current tax			497,612			504,209
Deferred tax:
Origination and reversal of
temporary differences	(		323,273)	(		129,256)
Total deferred tax	(		323,273)	(		129,256)
Income tax expense		$	174,339		$	374,953
		Nine-month period ended			Nine-month period ended
			September 30,2019			September 30,2018
Current tax:
Current tax on profits for the period	$		611,794	$		1,027,602
5% tax on undistributed surplus
earnings			3,956			-
Prior year income tax
underestimation			-			10,235
Total current tax			615,750			1,037,837
Deferred tax:
Origination and reversal of
temporary differences	(		56,321)	(		340,626)
Impact of change in tax rate			-			71,400
Total deferred tax	(		56,321)	(		269,226)
Income tax expense	$		559,429	$		768,611

~88~

• (b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

follows:
Currency translation differences Currency translation differences	Three-month period ended September 30,2019 $61,597 Nine-month period ended September 30,2019 $45,330	Three-month period ended September 30,2018
		$26,946
		Nine-month period ended September 30,2018
		$5,527

• B. The Company’s income tax returns through 2016 have been assessed and approved by the Tax Authority.

• C. Under the amendments to the Income Tax Act which was promulgated by the President of the Republic of China on February 7, 2018, the Company’s applicable income tax rate was raised from 17% to 20% effective from January 1, 2018. The Group has assessed the impact of the change in income tax rate.

(29) Earnings per share

change in income tax rate. Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares		Three-monthperiod ended September 30,2019
		Weighted average number of ordinary shares outstanding Amount after tax (shares in thousands) 453,457 $ 605,216 453,457 $ 605,216 - 2,761 453,457 $ 607,977	Earnings per share (in dollars) 0.75 $ 0.75 $

~89~

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares		Three-monthperiod ended September 30,2018	Three-monthperiod ended September 30,2018
		Weighted average number of ordinary shares outstanding Earnings per share Amount after tax (shares in thousands) (in dollars) 201,565 $ 622,716 0.32 $ 201,565 $ 622,716 - 3,049 201,565 $ 625,765 0.32 $ Nine-monthperiod ended September 30,2019
		Weighted average number of ordinary shares outstanding Amount after tax (shares in thousands) 1,225,873 $ 613,097 1,225,873 $ 613,097 - 3,785 1,225,873 $ 616,882	Earnings per share (in dollars) 2.00 $ 1.99 $

~90~

Nine-month period ended September 30, 2018

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Amount after tax 1,423,026 $ 1,423,026 - 1,423,026 $		Weighted average number of ordinary shares outstanding (shares in thousands) 630,439 630,439 3,775 634,214	Earnings per share (in dollars)
				2.26 $
				2.24 $

(30) Operating leases

Prior to 2019

• A. The Group leases investment property to others under non-cancellable operating lease agreements. These leases have terms expiring between 2007 and 2028, and all these lease agreements are not renewable at the end of the lease period. The future aggregate minimum lease payments receivable under non-cancellable operating leases are as follows:

Not later than one year Later than one year but not later than five years Later than five years		December 31,2018		September 30,2018
		438,333 $ 1,454,122 1,657,993 3,550,448 $		563,472 $ 2,012,622 2,245,122 4,821,216 $

B. The Group leases malls under non-cancellable operating lease agreements. These leases have terms expiring between 2007 and 2028, and all these lease agreements are renewable at the end of the lease period. Rental is increased irregularly to reflect market rental rates. Partial leases are charged extra rents following the changes of local price indexes. The Group recognised rental expenses of $67,143 and $186,966 for these leases in profit or loss for the three-month and ninemonth periods ended September 30, 2018. The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

~91~

Not later than one year Later than one year but not later than five years		December 31,2018		September 30,2018
		89,702 $ - 89,702 $		177,654 $ 221,082 398,736 $

(Remainder of page intentionally left blank)

~92~

(31) Supplemental cash flow information

A. Investing activities with partial cash payments

		Nine-month period ended	Nine-month period ended		Nine-month period ended	Nine-month period ended
			September 30,2019			September 30,2018
Purchase of property, plant and
equipment	$		727,769		$	1,021,978
Add: Ending balance of prepayment			65,851			-
Less: Opening balance of prepayment			-	(		1,125)
Less: Capitalisation of interest	(		75,071)	(		205,708)
Cash paid during the period	$		718,549	$		815,145
Purchase of investment property	$		87,571		$	125,343
Add: Opening balance of payable			1,077,057			1,169,114
Less: Ending balance of payable	(		1,247,088)	(		810,595)
Less: Effect of changes between
consolidated entities			-	(		43,592)
Cash paid during the period	($		82,460)	$		440,270
Proceeds from disposal of property, plant
and equipment	$		259,680	$		-
Add: Opening balance of receivable			-			-
Less: Ending balance of receivable	(		85,464)			-
Cash received during the period	$		174,216	$		-
Disposal of available-for-sale financial
assets	$		-		$	-
Add: Opening balance of receivable			-			44,115
Less: Ending balance of receivable			-			-
Cash received during the period	$		-	$		44,115
Disposal of subsidiary	$		-		$	2,013,423
Add: Opening balance of other
receivable			961,722			-
Less: Cash by subsidiary			-	(		94,516)
Less: Ending balance of other receivable			-	(		924,014)
Cash received during the period	$		961,722	$		994,893
Purchase of treasury stocks	$		386,017		$	607,920
Add: Opening balance of payable			17,458			-
Less: Ending balance of payable			-			-
Cash paid during the period	$		403,475	$		607,920

~93~

• B. The Group sold 100% of shares in the subsidiary – Buynow (Wuhan) Corporation on March 31, 2018 and therefore lost control over the subsidiary (please refer to Note 4(3)). The details of the consideration received from the transaction (including cash and cash equivalents) and assets and liabilities relating to the subsidiary are as follows:

liabilities relating to the subsidiary are as follows:
Consideration received Cash Total consideration Carrying amount of the assets and liabilities of the subsidiary - Buynow (Wuhan) Corporation Cash Accounts receivable Prepayments Other current assets Property, plant and equipment Investment property Intangible assets Refundable deposits Other non-current assets Notes payable Other payables Other current liabilities Long-term borrowings (including long-term liabilities, current portion) Deferred tax liabilities Guarantee deposit Other non-current liabilities Total net assets	March 31,2018
	2,013,423 $ 2,013,423 94,516 3,607 130 2,695 238 4,964,608 65 820 23,601 101) ( 89,617) ( 11,358) ( 2,706,706) ( 441,472) ( 58,727) ( 713,852) ( 1,068,447 $

(32) Changes in liabilities from financing activities

At January 1, 2019 Changes in cash flow from financing activities Impact of changes in foreign exchange rate At September 30, 2019	Short-term borrowings	Long-term borrowings		Bondspayable 5,000,000 $ - ( - ( 5,000,000 $	Liabilities from financing activities- gross
	8,426,966 $ 2,396,418 93,428) ( 10,729,956 $	34,584,482 $ 7,902,935) ( 191,907) ( 26,489,640 $			48,011,448 $ 5,506,517) 285,335)
					42,219,596 $

~94~

At January 1, 2018 Changes in cash flow from financing activities Impact of changes in foreign exchange rate Changes in loss of control in subsidiaries (Note) At September 30, 2018		Short-term borrowings	Long-term borrowings		Bondspayable	Liabilities from financing activities- gross
		6,221,472 $ 1,573,864 36,705 - 7,832,041 $	35,405,629 $ 2,140,792) ( 73,609) ( 2,706,706) ( 30,484,522 $		5,000,000 $ - - - 5,000,000 $	46,627,101 $ 566,928) ( 36,904) ( 2,706,706) ( 43,316,563 $

Note: Refer to Note 6(31) B. for effect of changes between consolidated entities.

7. RELATED PARTY TRANSACTIONS

(1)Names of related parties and relationship

Names of related parties Relationship with the Company Kent Hsu Chairman Changchun-hong Hyatt Hotel Management Co., Ltd. Other related party Chicony Energy Saving Technology (Shanghai) Co., Ltd. Other related party Chicony Electronics (Suzhou) Co., Ltd. Other related party Chicony Power Technology Co., Ltd. Other related party Honghui Real Estate Company Other related party Chicony Dalu Enterprise (Chengdu) Co., Ltd. Associate Chicony Square (Wuhan) Inc. Associate Chicony Industry (Wuhan) Co., Ltd. Associate Chicony Square (Wuhan) Inc. Associate Chicony Square (Cayman) Inc. Associate

(2)Significant related party transactions

A. Operating revenue

nificant related party transactions Operating revenue
Sales of goods: -Associates Sales of services: -Other related parties -Associates	Three-month period ended September 30,2019 - $ - $ - - $	Three-month period ended September 30,2018
		- $
		40 $ 2,198
		2,238 $

~95~

Sales of goods: -Associates Sales of services: -Other related parties -Associates	Nine-month period ended September 30,2019 31,426 $ 1,261 $ 602 1,863 $	Nine-month period ended September 30,2018
		- $
		155 $ 10,628
		10,783 $

The Group (Buynow (China)) offered the services to related parties.

B. Purchases

Three-month period ended Three-month period ended September 30, 2019 September 30, 2018 Purchases of goods: -Other related parties $ 315,401 $ 163,966 Nine-month period ended Nine-month period ended September 30, 2019 September 30, 2018 Purchases of goods: -Other related parties $ 673,221 $ 587,619

The purchases of the Group’s subsidiary, Kapok Computer (Kunshan), from other related parties are unique. Accordingly, the purchase prices are uncomparable and payment terms are the same with third parties, which are within 1 ~ 5 months.

C. Receivables from related parties

September 30, 2019 December 31, 2018 September 30, 2018 Accounts receivable: -Associates $ 1,045 $ 3,166 $ -

Receivables from related parties are mainly from selling goods and providing services to related parties and the receivables do not bear interest and no collaterals were pledged.

D. Payables to related parties

==> picture [476 x 82] intentionally omitted <==

~96~

E. Other receivables from related parties (shown as other current asset)

Other receivables: -Chicony Dalu Enterprise (Chengdu) Co., Ltd. -Chicony Industry (Wahan) Co., Ltd. -Chicony Square (Wuhan) Inc.	September 30,2019 43,813 $ 52,576 - 96,389 $	December 31,2018 - $ - 961,722 961,722 $	September 30,2018
			- $ - 924,014
			924,014 $

The receivables from related parties are mainly from sales of subsidiaries. The Group - Clevo (Cayman Islands) has already obtained $892,533 (CNY$ 199,000 thousand) of guarantee deposit from Chicony Square (Wuhan) Inc. as of December 31, 2018. The receivables were collected as of March 31, 2019.

F. Guarantee deposit

September 30, 2019 December 31, 2018 September 30, 2018 Chicony Square (Wuhan) Inc. $ - $ 892,533 $ -

G. Property transactions

(a) Disposal of property, plant and equipment:

Chicony Industry (Wuhan) Co., Ltd. Chicony Dalu Enterprise (Chengdu) Co., Ltd.	Disposalproceeds Gain(loss)on disposal 47,971 $ 2,394 $ 108,776 2,820 156,747 $ 5,214 $ Nine-monthperiod ended September 30,2019

(b) Disposal of other assets:

Nine-month period ended September 30, 2019 Accounts No. of shares Objects Disposal proceeds Gain Chicony Dalu Enterprise Intangible - - $ 1,518 $ - assets (Chengdu) Co., Ltd.

~97~

Accounts Chicony Square (Wuhan) Inc. Disposal of subsidiaries	No. of shares	Objects Buynow (Wuhan) Corporation		Nine-month period ended September 30,2018	Nine-month period ended September 30,2018
				Disposalproceeds 2,013,423 $	Gain/(loss) 944,976 $
	15,000,000

H. Loans from related parties

Loans from related parties (shown as other liabilities – current and non-current)

Chicony Industry (Wuhan) Co., Ltd. Chicony Square (Cayman) Inc. Chicony Square (Wuhan) Inc.	September 30,2019 - $ 437,297 10,962 448,259 $	December 31,2018 - $ 434,026 6,728 440,754 $	September 30,2018
			444,137 $ 430,797 4,441
			879,375 $

The loans from associates are payable at maturity within 1~5 years after the loan is made and carry interest both at 0%~5% per annum for the years ended December 31, 2019 and 2018. The amount of interest payable (recognised as other payables) as of September 30, 2019, December 31, 2018 and September 30, 2018 was $420, $102, and $843, respectively. Additionally, interest expense recognised for the three-month and nine-month periods ended September 30, 2019 and 2018 was $121, $462, $1,320 and $8,127, respectively.

I. Lease transactions - lessee

(a) The Group leases buildings from Honghui Real Estate Company for the nine-month period ended September 30, 2019. Rental contracts are typically made for a period of 5 years. The lease is subject to IFRS 16 as the usage of lease was included in the operating plan. Rents are paid at the end of year.

(b) Acquisition of right-of-use assets:

paid at the end of year. Acquisition of right-of-use assets:
Other related parties	September 30,2019
	74,442 $

On July 1, 2019 (the date of initial application of IFRS 16), the Group increased right-of-use assets by $74,442.

• (c) Rent expense of short-term leases

assets by $74,442. ) Rent expense of short-term leases
Nine-month period ended September 30,2019 Other related parties 11,159 $	Nine-month period ended September 30,2018
	22,660 $

• (d) Lease liabilities

• (i) Outstanding balance:

~98~

• Other related parties (ii) Interest expense

Other related parties

		September 30,2019
	$	70,720
	Nine-month period ended
		September 30,2019
	$	509

The Group leased property, plant, and equipment from related parties for the nine-month periods ended September 30, 2019 and 2018. The rental prices per square meter are approximately the same as those with related parties.

J. Others

The joint guarantor and co-issuer of the guarantee notes of bank borrowings is Kent Hsu for the nine-month periods ended September 30, 2019 and 2018.

(3)Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Salaries and other short-term employee benefits Post-employment benefits	Three-month period ended September 30,2019 37,337 $ 308 37,645 $ Nine-month period ended September 30,2019 74,615 $ 970 75,585 $	Three-month period ended September 30,2018
		63,325 $ 358
		63,683 $
		Nine-month period ended September 30,2018
		88,178 $ 1,069
		89,247 $

~99~

8. PLEDGED ASSETS

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

Pledged asset			Book value	September 30,2018 Purpose 242,103 $ Long-term borrowings 4,981,203 STANDBY L/C, long-term and short-term borrowings 3,346,851 Long-term borrowings 61,003,928 Long-term and short-term borrowings 69,574,085 $
		September 30,2019 - $ 3,496,331 2,619,756 58,696,971 64,813,058 $	December 31,2018 383,644 $ 4,940,430 1,644,480 59,758,127 66,726,681 $
Inventories Financial assets at amortised cost (current and non- current) Property, plant and equipment (non- depreciated balance) Investment property and right-of-use asset (long-term prepaid

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1)Contingencies

None.

(2)Commitments

• A. As of September 30, 2019, December 31, 2018, and September 30, 2018, the Company issued guarantee notes amounting to $24,299,765, $22,216,186 and $22,427,921, respectively, for bank repayment and forward exchange trading.

• B. On December 28, 2018, the Company entered into a syndicated loan agreement with 9 banks including Taiwan Cooperative Bank amounting to $6,000,000 and provided equal amount of guarantee notes. The Company and the Chairman of the Group are the joint guarantors and coissuers of the guarantee notes.

• C. On May 20, 2015, the Group’s consolidated subsidiary, CLEVO (CAYMAN ISLANDS) HOLDING COMPANY, entered into a syndicated loan agreement with 7 banks including Land Bank of Taiwan amounting to USD 120 million and provided equal amount of guarantee notes. The Company, the Group’s consolidated subsidiary, CLEVO (CAYMAN ISLANDS) HOLDING COMPANY, and the Chairman of the Group are the joint guarantors and co-issuers of the guarantee notes.

• D. As of September 30, 2019, December 31, 2018, and September 30, 2018, the Group’s total contract prices for signed construction contracts amounted to $8,126,200, $13,259,931, and $12,521,992, of which $7,435,086, $12,292,558, and $11,686,711 were paid and $691,114, $967,373, and $835,281 remain unpaid, respectively.

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10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

On October 18, 2019, the Company and EPOQUE CORPORATION obtained the contract negotiation rights as the most-qualified applicant for the land development project of Taipei City Western District Gateway Project-Taipei Main Station Special Zone. The project will be co-invested by the Company and EPOQUE CORPORATION through establishing TAIPEI TWIN CORPORATION, whose 50% shares will be held by the Company.

12. OTHERS

(1) Capital management

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

During the year ended December 31, 2019, the Group’s strategy, which was unchanged from 2018, was to maintain the gearing ratio within 40% to 60%. The gearing ratios at September 30, 2019, December 31, 2018 and September 30, 2018 were as follows:

	September 30,2019	September 30,2019	December 31,2018	December 31,2018	September 30,2018	September 30,2018	September 30,2018
Total borrowings	$	42,219,596	$	48,011,448		$	43,316,563
Less: Cash and cash equivalents	(	7,141,961)	(	7,796,543)	(		3,646,625)
Net debt		35,077,635		40,214,905			39,669,938
Total equity		40,848,725		41,857,130			41,434,732
Total capital	$	75,926,360	$	82,072,035	$		81,104,670
Gearing ratio		46%		49%			49%

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(2) Financial instruments

A. Financial instruments by category

nancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets at amortised cost Financial liabilities Financial liabilities at amortised Lease liability	September 30,2019 1,734,202 $ 13,531,295 15,265,497 $ 48,016,335 $ 70,720 $	December 31,2018 1,322,990 $ 15,606,732 16,929,722 $ 53,964,173 $ - $	September 30,2018
			1,393,619 $ 11,999,401
			13,393,020 $
			48,680,207 $
			- $

Note: Financial assets at amortised cost include cash and cash equivalents, accounts and notes receivable, other receivables, guarantee deposits paid and time deposits unqualified as cash equivalents; financial liabilities at amortised cost include short-term borrowings, accounts and notes payable, other payables, corporate bonds payable, long-term borrowings, guarantee deposits received and other financial liabilities.

• B. Financial risk management policies

The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. To minimise any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are used to hedge certain exchange rate risk.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

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

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

• iii. To deduct the risk of fair value from exchange rate fluctuation and the risk of cash flow, the Group hedges foreign assets and liabilities or expected transaction that are probable by

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• using financial derivatives such as forward exchange contracts. The Group monitors the exchange rate fluctuation at any time, and sets stop loss limit.

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

as follows:
Foreign currency amount (In thousands) Exchange rate Financial assets Monetary items USD:NTD 300,966 $ 31.06 USD:RMB 9,626 7.07 RMB:NTD 286,508 4.38 HKD:NTD 32,661 3.96 JPY:NTD 6,206,733 0.29 Investments accounted for using the equity method USD:NTD 73,930 31.01 Financial liabilities Monetary items USD:NTD 97,727 31.01 USD:RMB 254,639 7.07 JPY:NTD - 0.29 September 30,2019 (Foreign currency: functional currency)		September 30,2019		Book value (NTD)
			Exchange rate 31.06 7.07 4.38 3.96 0.29 31.01 31.01 7.07 0.29
				9,332,956 $ 298,084 1,254,905 129,338 1,799,953 2,409,144 3,030,514 7,885,304 -

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(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB RMB:NTD HKD:NTD JPY:NTD Investments accounted for using the equity method USD:NTD Financial liabilities Monetary items USD:NTD USD:RMB JPY:NTD (Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB RMB:NTD HKD:NTD JPY:NTD Investments accounted for using the equity method USD:NTD Financial liabilities Monetary items USD:NTD USD:RMB JPY:NTD		December 31,2018	December 31,2018	Book value (NTD)
		Foreign currency amount (In thousands) Exchange rate 355,173 $ 30.78 7,741 6.86 392,489 4.49 37,042 3.93 139,333 0.28 81,813 30.78 130,901 30.78 244,788 6.86 11,400 0.28 September 30,2018
				10,932,225 $ 238,434 1,762,276 145,575 39,013 2,518,217 4,029,133 7,539,813 3,192 Book value (NTD)
		Foreign currency amount (In thousands) 267,061 $ 15,176 404,135 57,861 76,235 81,385 129,460 164,997 11,400	Exchange rate 30.55 6.88 4.44 3.90 0.27 30.55 30.55 6.88 0.27
				8,158,714 $ 463,584 1,794,359 225,658 20,583 2,486,304 3,955,003 5,040,196 3,078

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• vii. The total exchange loss, including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the three-month and nine-month periods ended September 30, 2019 and 2018 amounted to ($166,710), ($359,155), ($136,094) and ($287,870), respectively.

• viii. Analysis of foreign currency market risk arising from significant foreign exchange variation:

variation:
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB RMB:NTD HKD:NTD JPY:NTD Financial liabilities Monetary items USD:NTD USD:RMB JPY:NTD	Degree of variation Nine-month	Effect on profit or loss Effect on other comprehensive income 74,664 $ - $ 2,385 - 10,039 - 1,035 - 14,400 - 24,244 - 63,082 - - - period ended September 30,2019 Sensitivityanalysis
	1% 1% 1% 1% 1% 1% 1% 1%

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Nine-month period ended September 30, 2018

		Nine-month	period ended September 30,2018	period ended September 30,2018
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB RMB:NTD HKD:NTD JPY:NTD Financial liabilities Monetary items USD:NTD USD:RMB JPY:NTD			Effect on profit or loss Effect on other comprehensive income 65,270 $ - $ 3,709 - 14,355 - 1,807 - 164 31,640 - 40,322 - 25 - Sensitivityanalysis
		Degree of variation	Effect on profit or loss
		1% 1% 1% 1% 1% 1% 1% 1%	65,270 $ 3,709 14,355 1,807 164 31,640 40,322 25	- $ - - - - - -

Price risk

• i.The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio.

• ii.The Group’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 nine-month periods ended September 30, 2019 and 2018 would have increased/decreased by $16,371 and $12,985, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss.

Cash flow and fair value interest rate risk

• i.The Group’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During the nine-month periods ended September 30, 2019 and 2018, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars, US dollars, RMB dollars, and JPY dollars.

• ii.The Group’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

• iii.If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, profit, net of tax for the nine-month periods ended September 30, 2019 and 2018

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would have decreased/increased by $292,968 and $308,612, respectively. The main factor is that changes in interest expense result from floating rate borrowings.

(b) Credit risk

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

• ii.According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

• iii.Individual risk limits are set based on internal or external ratings in accordance with limits set by the credit department. The utilisation of credit limits is regularly monitored.

• iv.For banks and financial institutions, only independently rated parties with a best rating are accepted.

• v.The Group adopts the following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

• (i) 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.

• (ii) For investments in bonds that are traded over the counter, if any external credit rating agency rates these bonds as investment grade, the credit risk of these financial assets is low.

• vi.The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.

• vii.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 reorganization 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.

• viii.The Group classifies customer’s accounts receivable in accordance with customer types. The Group applies the modified approach using provision matrix to estimate expected credit loss under the provision matrix basis.

• ix.The Group wrote-off the financial assets, which cannot be reasonably expected to be

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recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. On December 31, 2018, the Group’s written-off financial assets that are still under recourse procedures amounted to $50,259. There were no such transactions as of September 30, 2019 and 2018.

x.The Group used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable, contract assets and lease payments receivable. On September 30, 2019, December 31, 2018, and September 30, 2018, the provision matrix is as follows:

is as follows:
At September 30, 2019 Expected loss rate Total book value Loss allowance Expected loss rate Total book value Loss allowance At December 31, 2018 Expected loss rate Total book value Loss allowance Expected loss rate Total book value Loss allowance	Notpast due	1~90 days past due	91~180 days past due
	0.02%~0.03% 1,858,890 $ 298 181~270 days past due	0.02%~1.74% 483,867 $ 1,262 Over 270 days	7.67%~10.40% 69,443 $ 5,529 Total
	% 45,380 $ 28,528 Notpast due	100.00% 6,541 $ 6,541 1~90 days past due	2,464,121 $ 42,158 91~180 days past due
	0.03%~0.05% 1,022,099 $ 557 181~270 days past due	0.27%~21.59% 564,783 $ 10,214 Over 270 days	12.51%~39.51% 32,332 $ 6,025 Total
	35.77%~74.57% 34,399 $ 9,790	100.00% 28,986 $ 28,986	1,682,599 $ 55,572

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At September 30, 2018 Expected loss rate Total book value Loss allowance Expected loss rate Total book value Loss allowance	Notpast due	1~90 days past due	91~180 days past due
	0.03%~0.06% 1,480,612 $ 851 181~270 days past due	0.03%~0.28% 429,337 $ 1,110 Over 270 days	0.03%~100% 47,397 $ 310 Total
	0.03%~100% 33,803 $ 663	100.00% 40,581 $ 40,581	2,031,730 $ 43,515

• xi.Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable is as follows:

allowance for accounts receivable is as follows:
			2019
		Accounts receivable
At January 1	$		55,572
Reversal of impairment	(		13,818)
Effect of foreign exchange			404
At September 30	$		42,158
			2018
		Accounts receivable
At January 1		$	97,704
Provision for impairment			5,550
Write-offs	(		50,259)
Effect of foreign exchange	(		6,074)
Effect of changes between consolidated entities (Note)	(		3,406)
At September 30		$	43,515

Note: Refer to Note 6(31) B. for effect of changes between consolidated entities.

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.

• ii. The table below analyses the Group’s non-derivative financial liabilities based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

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September 30,2019	Less than 1 year	Between 1 and 2years	Between 2 and 5years	Over 5years
		14,794 $ 5,012,500 5,334,103 708,884 - Between 1 and 2years	42,316 $ - 14,767,317 - 437,297 Between 2 and 5years	- $ - 1,233,481 - - Over 5years
		5,075,000 $ 12,576,403 1,635,227 - Between 1 and 2years	- $ 19,426,728 - 434,026 Between 2 and 5years	- $ 1,467,491 - - Over 5years
		5,068,750 $ 7,656,959 658,863 -	- $ 14,087,993 - 430,797	- $ 1,216,421 - -

Except for the abovementioned, the non-derivative financial liabilities of the Group are all expiring within one year.

• iii. The Group does not expect the maturity date will be early, or the actual amount will be different.

(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

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frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates is included in Level 1.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in offthe-run beneficiary certificates, bank debentures, convertible bonds and derivative instruments is included in Level 2.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in investment property is included in Level 3.

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• B. Financial instruments not measured at fair value

The carrying amounts of cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables, financial assets at amortised cost, other financial assets, short-term borrowings, notes payable, accounts payable (including related parties), other payables, corporate bonds payable, long-term borrowings (including current portion) and other financial liabilities are approximate to their fair values.

• C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at September 30, 2019, December 31, 2018 and September 30, 2018 is as follows:

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

September 30,2019 Assets Recurring fair value measurements	Level 1 1,028,240 $ 10,130 - 1,038,370 $ Level 1 895,174 $ 14,497 - 909,671 $ Level 1 950,749 $ 15,050 - 965,799 $	Level 2 - $ 695,832 - 695,832 $ Level 2 - $ 413,319 - 413,319 $ Level 2 - $ 427,820 - 427,820 $	Level 3 - $ - 62,899,784 62,899,784 $ Level 3 - $ - 65,426,212 65,426,212 $ Level 3 - $ - 64,676,873 64,676,873 $	Total
				1,028,240 $ 705,962 62,899,784
Financial assets at fair value through profit or loss Equity securities Beneficiary certificates Investment property (Note) December 31,2018 Assets Recurring fair value measurements
				64,633,986 $
				Total
				895,174 $ 427,816 65,426,212
Financial assets at fair value through profit or loss Equity securities Beneficiary certificates Investment property (Note) September 30,2018 Assets Recurring fair value measurements
				66,749,202 $
				Total
				950,749 $ 442,870 64,676,873
Financial assets at fair value through profit or loss Equity securities Beneficiary certificates Investment property (Note)
				66,070,492 $

Note : Investment property measured at fair value

(b)The methods and assumptions the Group used to measure fair value are as follows:

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

Listed shares Open-end fund / Debt securities Net asset Market quoted price Closing price value

• ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters).

• iii. When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

• iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate.

• v. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

• vi. The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.

• D. For the nine-month periods ended September 30, 2019 and 2018, there was no transfer between Level 1 and Level 2.

• E. The movement of Level 3 for the nine-month periods ended September 30, 2019 and 2018 are

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provided in Note 6(9).

• F. For the nine-month periods ended September 30, 2019 and 2018, there was no transfer into or out from Level 3.

• G. Financial & Administrative segment is in charge of valuation procedures for fair value measurements being categorised within Level 3 (investment property), which is based on the valuation methods and assumptions announced by the Financial Supervisory Commission, Securities and Futures Bureau or through outsourced appraisal performed by the external valuer. The Group sets up valuation policies, valuation processes, and rules for measuring fair value of investment property and ensures compliance with the related requirements in IFRS.

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

Investment property	Fair value at September 30, 2019	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	62,899,784 $	Income approach of discounted cash flow method	Long-term rent revenue growth rate and discount rate	(Note 1)	The higher the long- term rent revenue growth rate, the higher the fair value; The higher the discount rate, the lower the fair value

Note 1: The range of long-term rent revenue growth rate is (10%)~20%; the range of discount rate is provided in Note 6(9).

Investment property	Fair value at December 31, 2018	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	65,426,212 $	Income approach of discounted cash flow method	Long-term rent revenue growth rate and discount rate	(Note 1)	The higher the long- term rent revenue growth rate, the higher the fair value; The higher the discount rate, the lower the fair value

Note 1: The range of long-term rent revenue growth rate is (10%)~20%; the range of discount rate is provided in Note 6(9).

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Investment property	Fair value at September 30, 2018	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	64,676,873 $	Income approach of discounted cash flow method	Long-term rent revenue growth rate and discount rate	(Note 1)	The higher the long- term rent revenue growth rate, the higher the fair value; The higher the discount rate, the lower the fair value

Note 1: The range of long-term rent revenue growth rate is (10%)~20%; the range of discount rate is provided in Note 6(9).

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

The disclosures of investee companies were based on financial statements reviewed by independent accountants and the following transactions with subsidiaries were eliminated when preparing consolidated financial statements. The following disclosure information is for reference only. A. Loans to others: Please refer to table 1.

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

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

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to table 4.

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

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 7.

• I. Trading in derivative instruments undertaken during the reporting periods: As of September 30, 2019, the Group’s open interest derivative instruments were $0. The Group recognised net profit amounting to $17,923 on derivative instruments for the nine-month period ended September 30, 2019.

• J. Significant inter-company transactions during the reporting periods: Please refer to table 8.

(2) Information on investees

Names, locations, and other information of investee companies (not including investees in Mainland

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China) ： Please refer to table 9.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 10.

• B. Ceiling on investments in Mainland China: Please refer to table 10.

• C. Significant transactions, price, payment term and unrealised gain or loss, either directly or indirectly through a third area, with investee companies in the Mainland Area:

• Significant sales (purchases), property transactions, accounts receivable (payable), provision of endorsements and guarantees from notes or provides collaterals and accommodation of funds for the nine-month period ended September 30, 2019, either directly or indirectly through a third area, with investee companies in the Mainland Area are provided in Note 13(1) A, B, E, G, H, J.

14. SEGMENT INFORMATION

(1) General information

Management has determined the reportable operating segments based on the reports reviewed by the chief operating decision maker-Board of Directors that are used to make strategic decisions. The Group’s main operating businesses are manufacturing and trading of computer and computer peripherals; research and development, production, and sales of computer software and hardware; after-sales services for aforementioned products and property management. The product features and manufacturing procedures are different so that its marketing and selling ways are different. The chief operating decision-maker operates various businesses from the perspective of different products. Currently, businesses are mainly divided into computer segment, Buynow Plaza and other segments, of which computer segment and Buynow Plaza are the reportable segments.

(2) Segment information

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

is as follows:
Three-month period ended September 30, 2019 Revenue from external customers Inter-segment revenue Total segment revenue External-segment income (before tax) Segment income (after tax) Nine-month period ended September 30, 2019 Revenue from external customers Inter-segment revenue Total segment revenue External-segment income (before tax) Segment income (after tax)		Computer Segment Buynow Plaza Others 4,394,900 $ 1,523,067 $ 18,378 $ 3,618,930 1,570 - 8,013,830 $ 1,524,637 $ 18,378 $ 75,064 $ 107,159 $ 450,089 $ 81,126 $ 73,350) ($ 450,198 $ Computer Segment Buynow Plaza Others 11,319,498 $ 5,182,250 $ 101,450 $ 8,815,343 4,611 692) ( 20,134,841 $ 5,186,861 $ 100,758 $ 38,520 $ 1,246,289 $ 505,529 $ 177,253 $ 547,808 $ 505,848 $	Total
			5,936,345 $ 3,620,500
			9,556,845 $
			632,312 $
			457,974 $
			Total
			16,603,198 $ 8,819,262
			25,422,460 $
			1,790,338 $
			1,230,909 $

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Three-month period ended September 30, 2018 Revenue from external customers Inter-segment revenue Total segment revenue External-segment income (before tax) Segment income (after tax) Nine-month period ended September 30, 2018 Revenue from external customers Inter-segment revenue Total segment revenue External-segment income (before tax) Segment income (after tax)	Computer Segment 3,728,296 $ 2,690,023 6,418,319 $ 327,771) ($ 359,819) ($ Computer Segment 11,652,423 $ 8,657,334 20,309,757 $ 294,466) ($ 411,803) ($	Buynow Plaza Others 1,204,110 $ 39,383 $ 1,568 806) ( 1,205,678 $ 38,577 $ 880,770 $ 23,770 $ 537,822 $ 23,813 $ Buynow Plaza Others 3,958,563 $ 117,547 $ 4,664 806) ( 3,963,227 $ 116,741 $ 2,397,156 $ 89,870 $ 1,745,678 $ 90,074 $	Total
			4,971,789 $ 2,690,785
			7,662,574 $
			576,769 $
			201,816 $
			Total
			15,728,533 $ 8,661,192
			24,389,725 $
			2,192,560 $
			1,423,949 $

(Note): The chief operating decision maker does not use the measured amount of the assets as a measurement indicator; therefore, such information is not disclosed.

(3) Reconciliation for segment income (loss)

A reconciliation of reportable segment revenue and total revenue, and a reconciliation of reportable

segment income or loss and total income or loss before tax is provided as follows:

	Three-month period ended	Three-month period ended	Three-month period ended	Three-month period ended
Revenue		September 30,2019		September 30,2018
Reportable segments revenue	$	9,538,467	$	7,623,997
Other segments revenue		18,378		38,577
Elimination of intersegment revenue	(	3,620,500)	(	2,690,785)
Total revenue	$	5,936,345	$	4,971,789
	Nine-month period ended		Nine-month period ended
Revenue		September 30,2019		September 30,2018
Reportable segments revenue	$	25,321,702	$	24,272,984
Other segments revenue		100,758		116,741
Elimination of intersegment revenue	(	8,819,262)	(	8,661,192)
Total revenue	$	16,603,198	$	15,728,533

~117~

Income/(Loss) Reportable segments income (after tax) Other segments income (after tax) Elimination of intersegment transactions Income after tax from continuing operations Income/(Loss) Reportable segments income (after tax) Other segments income (after tax) Elimination of intersegment transactions Income after tax from continuing operations	Three-month period ended September30,2019 7,776 $ 450,198 - 457,974 $ Nine-month period ended September 30,2019 725,061 $ 505,848 - 1,230,909 $	Three-month period ended September30,2018 178,003 $ 23,813 - 201,816 $ Nine-month period ended September 30,2018 1,333,875 $ 90,074 - 1,423,949 $	Three-month period ended September30,2018 178,003 $ 23,813 - 201,816 $ Nine-month period ended September 30,2018 1,333,875 $ 90,074 - 1,423,949 $
			1,333,875 $ 90,074 -
			1,423,949 $

~118~

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

CLEVO CO. and Subsidiaries

Loans to others

Nine-month period ended September 30, 2019

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
0	The Company	Clevo (Cayman Islands) Holding Company	Other current financial assets	Yes	$ 800,000	$ 800,000	$ 769,178	1.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
1	Kapok Computer Co., Ltd.	The Company	Other current financial assets	Yes	55,000	55,000	55,000	1.04%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
2	Clevo Investment Co., Ltd.	The Company	Other current financial assets	Yes	49,000	49,000	49,000	1.04%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
3	Clevo Computer Singapore Ptd., Ltd.	The Company	Other non-current financial assets	Yes	120,955	120,955	120,955	0.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
4	Clevo (Cayman Islands) Holding Company	Kapok Computer (Samoa) Corporation	Other non-current financial assets	Yes	894,070	-	-	3 months LIBOR+1.5 %	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
4	Clevo (Cayman Islands) Holding Company	Buynow Electronic Information (Hangzhou) Co., Ltd.	Other current financial assets	Yes	139,563	139,563	139,563	6 months LIBOR+2.5 %	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
4	Clevo (Cayman Islands) Holding Company	Buynow (Guangzhou) Corporation	Other current financial assets	Yes	139,563	139,563	139,563	6 months LIBOR+1.5 %	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
4	Clevo (Cayman Islands) Holding Company	Buynow (Xian) Industry Co., Ltd.	Other current financial assets	Yes	62,028	62,028	62,028	6 months LIBOR+2.5 %	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
4	Clevo (Cayman Islands) Holding Company	Buynow (Harbin) Corporation	Other current financial assets	Yes	91,491	91,491	91,491	6 months LIBOR+1.5 %	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
4	Clevo (Cayman Islands) Holding Company	Daqing Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	93,042	93,042	93,042	6 months LIBOR+2.5 %	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
4	Clevo (Cayman Islands) Holding Company	Zibo Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	93,042	93,042	93,042	6 months LIBOR+2.5 %	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
4	Clevo (Cayman Islands) Holding Company	Buynow (Taizhou) Corporation	Other current financial assets	Yes	201,591	201,591	201,591	6 months LIBOR+2%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 1

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
4	Clevo (Cayman Islands) Holding Company	Kunshan Kaishuo Trading Co., Ltd.	Other non-current financial assets	Yes	$ 157,857	$ 153,472	$ 153,472	3.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
5	Buynow Electronic Information (Hangzhou) Co., Ltd.	Changsha Hungyu Business Management Co., Ltd.	Other current financial assets	Yes	131,109	125,189	125,189	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
5	Buynow Electronic Information (Hangzhou) Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	212,668	188,990	188,990	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
5	Buynow Electronic Information (Hangzhou) Co., Ltd.	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Other current financial assets	Yes	17,540	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
5	Buynow Electronic Information (Hangzhou) Co., Ltd	Buynow (Xian) Industry Co., Ltd.	Other current financial assets	Yes	138,563	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
5	Buynow Electronic Information (Hangzhou) Co., Ltd	Buynow (Harbin) Industry Co., Ltd.	Other current financial assets	Yes	41,657	41,657	41,657	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
5	Buynow Electronic Information (Hangzhou) Co., Ltd	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	133,082	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
5	Buynow Electronic Information (Hangzhou) Co., Ltd	Yingkou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	16,575	16,575	16,575	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
5	Buynow Electronic Information (Hangzhou) Co., Ltd	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	208,941	208,941	208,941	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
5	Buynow Electronic Information (Hangzhou) Co., Ltd	Guiyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	123,216	123,216	123,216	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
5	Buynow Electronic Information (Hangzhou) Co., Ltd	Dezhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	32,887	23,679	23,679	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 2

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Changsha Hungyu Business Management Co., Ltd.	Other current financial assets	Yes	$ 28,502	$ 28,502	$ 28,502	5.00%	2	$ -	Additional operating capital	- $	-	- $	16,337,913	40,844,783	Note 8
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	236,785	188,551	188,551	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Buynow (Nanchang) Industry Co., Ltd.	Other current financial assets	Yes	126,724	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Other current financial assets	Yes	305,764	284,278	284,278	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	Other current financial assets	Yes	2,192	877	877	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Other current financial assets	Yes	105,238	105,238	105,238	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Zibo Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	64,458	62,266	62,266	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Buynow Electronic Information (Hangzhou) Co., Ltd	Other current financial assets	Yes	131,898	131,898	131,898	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	202,408	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	299,139	299,139	299,139	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 3

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	167,723 $	167,723 $	167,723 $	5.00%	2	- $	Additional operating capital	- $	-	- $	16,337,913 $	40,844,783 $	Note 8
6	Buynow (Chengdu) Electronic Information Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	Other current financial assets	Yes	138,563	37,710	37,710	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
7	Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Changsha Hungyu Business Management Co., Ltd.	Other current financial assets	Yes	5,043	5,043	5,043	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
7	Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	148,605	6,139	6,139	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
7	Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	Other current financial assets	Yes	342,243	342,243	342,243	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
7	Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	Other current financial assets	Yes	128,478	128,478	128,478	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
7	Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Zibo Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	129,793	9,208	9,208	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
7	Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	131,109	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
7	Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	122,120	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
7	Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	89,014	89,014	89,014	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 4

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
8	Kapok Computer (Kunshan) Co., Ltd.	Buynow (Nanchang) Industry Co., Ltd.	Other current financial assets	Yes	$ 324,264	$ 324,264	$ 324,264	5.00%	2	- $	Additional operating capital	- $	-	- $	16,337,913 $	40,844,783 $	Note 8
8	Kapok Computer (Kunshan) Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	Other current financial assets	Yes	397,142	103,572	103,572	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
8	Kapok Computer (Kunshan) Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	Other current financial assets	Yes	547,106	547,106	547,106	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
8	Kapok Computer (Kunshan) Co., Ltd.	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Other current financial assets	Yes	175,397	175,397	175,397	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
8	Kapok Computer (Kunshan) Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	719,652	719,652	719,652	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
8	Kapok Computer (Kunshan) Co., Ltd.	Yingkou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	83,313	83,313	83,313	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
8	Kapok Computer (Kunshan) Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	436,299	436,299	436,299	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
8	Kapok Computer (Kunshan) Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	555,569	555,569	555,569	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
9	Buynow (Nanchang) Industry Co., Ltd.	Buynow (Chongqing) Industry Co., Ltd.	Other current financial assets	Yes	58,758	58,758	58,758	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
9	Buynow (Nanchang) Industry Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	15,786	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
9	Buynow (Nanchang) Industry Co., Ltd.	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Other current financial assets	Yes	10,524	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
9	Buynow (Nanchang) Industry Co., Ltd.	Clevo (China) Investment Co., Ltd.	Other current financial assets	Yes	263,095	32,887	32,887	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
9	Buynow (Nanchang) Industry Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	83,313	83,313	83,313	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
9	Buynow (Nanchang) Industry Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	279,845	273,268	273,268	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
9	Buynow (Nanchang) Industry Co., Ltd.	Taizhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	118,831	118,831	118,831	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 5

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
9	Buynow (Nanchang) Industry Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	$ 213,545	$ 182,851	$ 182,851	5.00%	2	- $	Additional operating capital	- $	- $	- $	$ 16,337,913	$ 40,844,783	Note 8
9	Buynow (Nanchang) Industry Co., Ltd.	Buynow (Jinzhou) Industry Co., Ltd.	Other current financial assets	Yes	91,206	67,089	67,089	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
10	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Changsha Hungyu Business Management Co., Ltd.	Other current financial assets	Yes	63,011	63,011	63,011	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
10	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	45,165	34,202	34,202	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
10	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	Other current financial assets	Yes	197,058	197,058	197,058	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
10	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Beijing Kaiye Electronic Technology Co., Ltd.	Other current financial assets	Yes	182,500	182,500	182,500	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
10	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Beijing Clevo Investment Management Consultant Co., Ltd.	Other current financial assets	Yes	42,095	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
10	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	106,553	14,470	14,470	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
10	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Clevo (China) Investment Co., Ltd.	Other current financial assets	Yes	10,962	4,385	4,385	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
10	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	28,502	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
10	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	84,936	82,743	82,743	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
10	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	37,053	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 6

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
10	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	Other current financial assets	Yes	$ 14,909	$ -	$ -	5.00%	2	-	Additional operating capital	- $	-	- $	16,337,913 $	40,844,783 $	Note 8
11	Buynow (Guangzhou) Corporation	Buynow(Guangzhou) Electronic Information Co., Ltd.	Other current financial assets	Yes	155,070	155,070	155,070	6 months LIBOR+2.5 %	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
12	Buynow Electronic Information (Shenyang) Co., Ltd.	Changsha Hungyu Business Management Co., Ltd.	Other current financial assets	Yes	103,265	96,687	96,687	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
12	Buynow Electronic Information (Shenyang) Co., Ltd.	Zibo Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	32,887	32,887	32,887	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
12	Buynow Electronic Information (Shenyang) Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	4,385	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
12	Buynow Electronic Information (Shenyang) Co., Ltd.	Yingkou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	134,222	134,222	134,222	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
12	Buynow Electronic Information (Shenyang) Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	9,121	1,096	1,096	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
12	Buynow Electronic Information (Shenyang) Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	23,459	23,459	23,459	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
12	Buynow Electronic Information (Shenyang) Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	50,470	50,470	50,470	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
13	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Changsha Hungyu Business Management Co., Ltd.	Other current financial assets	Yes	7,717	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
13	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	121,024	34,641	34,641	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
13	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Buynow(Guangzhou) Electronic Information Co., Ltd.	Other current financial assets	Yes	59,898	47,182	47,182	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 7

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
13	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	Other current financial assets	Yes	$ 133,082	$ 82,656	$ 82,656	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
13	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Beijing Kaiye Electronic Technology Co., Ltd.	Other current financial assets	Yes	78,928	57,004	57,004	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
13	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Daqing Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	249,458	247,704	247,704	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
13	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Buynow Electronic Information (Hangzhou) Co., Ltd.	Other current financial assets	Yes	53,803	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
13	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	215,602	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
13	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	Other current financial assets	Yes	83,313	30,694	30,694	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
13	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Xiamen Lejing Internet Bar Co., Ltd.	Other current financial assets	Yes	438	438	438	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
14	Buynow (Xian) Industry Co., Ltd.	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Other current financial assets	Yes	9,208	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
14	Buynow (Xian) Industry Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	211,791	153,691	153,691	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 8

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
14	Buynow (Xian) Industry Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	$ 35,079	$ -	$ -	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
14	Buynow (Xian) Industry Co., Ltd.	Taizhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	188,551	75,201	75,201	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
14	Buynow (Xian) Industry Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	124,093	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
15	Buynow (Changchun) Industry Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	152,332	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
15	Buynow (Changchun) Industry Co., Ltd.	Buynow (Guangzhou) Electronic Information Co., Ltd.	Other current financial assets	Yes	48,190	48,190	48,190	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
15	Buynow (Changchun) Industry Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	Other current financial assets	Yes	166,627	157,857	157,857	5.00%	2	-	Additional operating capita	-	-	-	16,337,913	40,844,783	Note 8
15	Buynow (Changchun) Industry Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	Other current financial assets	Yes	131,324	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
15	Buynow (Changchun) Industry Co., Ltd.	Buynow (Chongqing) Industry Co., Ltd.	Other current financial assets	Yes	4,385	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
15	Buynow (Changchun) Industry Co., Ltd.	Zibo Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	145,000	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
15	Buynow (Changchun) Industry Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	78,753	78,753	78,753	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
15	Buynow (Changchun) Industry Co., Ltd.	Suzhou Jinzuo Industry Co., Ltd.	Other current financial assets	Yes	4,385	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 9

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
15	Buynow (Changchun) Industry Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	$ 4,385	$ -	$ -	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
15	Buynow (Changchun) Industry Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	Other current financial assets	Yes	66,168	31,089	31,089	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
16	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	32,098	32,098	32,098	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
16	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	Other current financial assets	Yes	47,576	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
16	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	Other current financial assets	Yes	83,664	75,771	75,771	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
16	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	6,577	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
16	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	106,553	94,056	94,056	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
16	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Suzhou Jinzuo Industry Co., Ltd.	Other current financial assets	Yes	6,577	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
16	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Buynow (Jinzhou) Industry Co., Ltd.	Other current financial assets	Yes	40,780	40,780	40,780	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
17	Quality Trust Property Management Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	4,385	4,385	4,385	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 10

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
17	Quality Trust Property Management Co., Ltd.	Buynow (Guangzhou) Electronic Information Co., Ltd.	Other current financial assets	Yes	$ 35,517	$ 31,352	$ 31,352	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
17	Quality Trust Property Management Co, Ltd.	Buynow (Xian) Industry Co., Ltd	Other current financial assets	Yes	41,437	41,437	41,437	5.00%	2	-	Additional operating capita	-	-	-	16,337,913	40,844,783	Note 8
17	Quality Trust Property Management Co., Ltd.	Wuxi Quntai Property Management Co., Ltd.	Other current financial assets	Yes	1,315	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
17	Quality Trust Property Management Co., Ltd.	Beijing Clevo Investment Management Consultant Co., Ltd.	Other current financial assets	Yes	6,577	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
17	Quality Trust Property Management Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	81,472	70,948	70,948	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
17	Quality Trust Property Management Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	8,770	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
17	Quality Trust Property Management Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	13,155	13,155	13,155	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
17	Quality Trust Property Management Co., Ltd.	Buynow (Jinzhou) Industry Co., Ltd.	Other current financial assets	Yes	2,192	2,192	2,192	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
18	Buynow (Harbin) Corporation	Buynow (Harbin) Industry Co., Ltd.	Other current financial assets	Yes	93,042	93,042	93,042	6 months LIBOR+2.5 %	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
19	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	106,203	6,577	6,577	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
19	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Other current financial assets	Yes	8,827	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 11

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
19	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	Other current financial assets	Yes	$ 185,482	$ 185,482	$ 185,482	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
19	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	Other current financial assets	Yes	120,147	115,104	115,104	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
19	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Buynow (Chongqing) Industry Co., Ltd.	Other current financial assets	Yes	2,192	2,192	2,192	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
19	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Zibo Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	32,448	29,598	29,598	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
19	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Beijing Clevo Investment Management Consultant Co., Ltd.	Other current financial assets	Yes	26,309	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
19	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	67,089	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
19	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	156,138	156,138	156,138	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
19	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	Other current financial assets	Yes	4,385	4,385	4,385	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
19	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Buynow (Jinzhou) Industry Co., Ltd.	Other current financial assets	Yes	48,234	48,234	48,234	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 12

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
20	Wuxi Quntai Property Management Co., Ltd.	Quality Trust Property Management Co., Ltd.	Other current financial assets	Yes	4,823 $	- $	- $	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
20	Wuxi Quntai Property Management Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	7,235	7,235	7,235	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
20	Wuxi Quntai Property Management Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	12,278	8,331	8,331	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
21	Buynow (Chongqing) Industry Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	213,721	114,622	114,622	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	215,036	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Buynow (Chengdu) Electronic Information Co., Ltd.	Other current financial assets	Yes	4,385	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Buynow (Nanchang) Industry Co., Ltd.	Other current financial assets	Yes	51,216	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Buynow (Fujian) Electronic Technology development Co., Ltd.	Other current financial assets	Yes	146,456	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	Other current financial assets	Yes	80,682	37,272	37,272	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Qingdao Buynow Technology Industry Co., Ltd.	Other current financial assets	Yes	198,593	187,630	187,630	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Buynow (Chongqing) Industry Co., Ltd.	Other current financial assets	Yes	14,032	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Daqing Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	158,471	158,471	158,471	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 13

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Zibo Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	$ 39,464	$ -	$ -	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Clevo (China) Investment Co., Ltd.	Other current financial assets	Yes	59,635	55,250	55,250	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	473,571	469,186	469,186	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Suzhou Jinzuo Industry Co., Ltd.	Other current financial assets	Yes	6,577	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	32,887	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	195,129	195,129	195,129	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	Other current financial assets	Yes	99,538	38,149	38,149	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
22	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Shanghai Huizhuan Restaurant Management Co., Ltd.	Other current financial assets	Yes	19,732	19,732	19,732	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
23	Daqing Buynow Electronic Information Co., Ltd.	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Other current financial assets	Yes	149,087	149,087	149,087	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
24	Tianjin Buynow Electronic Information Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	142,948	140,756	140,756	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
24	Tianjin Buynow Electronic Information Co., Ltd.	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Other current financial assets	Yes	207,406	67,308	67,308	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 14

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
24	Tianjin Buynow Electronic Information Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	Other current financial assets	Yes	$ 82,875	$ 57,881	$ 57,881	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
24	Tianjin Buynow Electronic Information Co., Ltd.	Qingdao Buynow Technology Industry Co., Ltd.	Other current financial assets	Yes	219,947	197,146	197,146	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
24	Tianjin Buynow Electronic Information Co., Ltd.	Zibo Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	140,510	140,510	140,510	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
24	Tianjin Buynow Electronic Information Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	32,010	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
24	Tianjin Buynow Electronic Information Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	168,512	168,512	168,512	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
24	Tianjin Buynow Electronic Information Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	114,008	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
24	Tianjin Buynow Electronic Information Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	74,982	50,865	50,865	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
24	Tianjin Buynow Electronic Information Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	69,238	69,238	69,238	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
24	Tianjin Buynow Electronic Information Co., Ltd.	Buynow (Jinzhou) Industry Co., Ltd.	Other current financial assets	Yes	28,502	28,502	28,502	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
25	Buynow (Yancheng) Electronic Information Technology Development Co., Ltd.	Beijing Kaiye Electronic Technology Co., Ltd.	Other current financial assets	Yes	21,925	21,925	21,925	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
25	Buynow (Yancheng) Electronic Information Technology Development Co., Ltd.	Daqing Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	30,694	30,694	30,694	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
25	Buynow (Yancheng) Electronic Information Technology Development Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	488,260	488,260	488,260	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 15

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
25	Buynow (Yancheng) Electronic Information Technology Development Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	$ 127,163	$ 127,163	$ 127,163	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
25	Buynow (Yancheng) Electronic Information Technology Development Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	24,775	24,775	24,775	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
26	Beijing Clevo Investment Management Consultant Co., Ltd.	Qingdao Buynow Technology Industry Co., Ltd.	Other current financial assets	Yes	249,326	203,022	203,022	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
26	Beijing Clevo Investment Management Consultant Co., Ltd.	Buynow Electronic Information (Huizhou) Co., Ltd.	Other current financial assets	Yes	192,936	179,343	179,343	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
26	Beijing Clevo Investment Management Consultant Co., Ltd.	Taizhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	169,872	113,745	113,745	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	403,149	375,963	375,963	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Buynow (Nanchang) Industry Co., Ltd.	Other current financial assets	Yes	301,463	249,940	249,940	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Buynow (Guangzhou) Electronic Information Co., Ltd.	Other current financial assets	Yes	58,319	58,319	58,319	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Other current financial assets	Yes	192,936	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 16

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
27	Guangdong Buynow Real Estate Management Co., Ltd.	Qingdao Buynow Technology Industry Co., Ltd.	Other current financial assets	Yes	$ 131,942	$ 39,289	$ 39,289	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	Other current financial assets	Yes	50,427	50,427	50,427	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Beijing Kaiye Electronic Technology Co., Ltd.	Other current financial assets	Yes	33,764	11,839	11,839	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Daqing Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	134,266	125,496	125,496	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Buynow Electronic Information (Huizhou) Co., Ltd.	Other current financial assets	Yes	199,426	192,059	192,059	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	304,743	129,346	129,346	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Clevo (China) Investment Co., Ltd.	Other current financial assets	Yes	24,117	24,117	24,117	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	34,202	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	161,803	161,803	161,803	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Suzhou Jinzuo Industry Co., Ltd.	Other current financial assets	Yes	215,124	188,814	188,814	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	22,802	22,802	22,802	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	241,271	43,849	43,849	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 17

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
27	Guangdong Buynow Real Estate Management Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	Other current financial assets	Yes	$ 192,936	$ 192,936	$ 192,936	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
27	Guangdong Buynow Real Estate Management Co., Ltd.	Buynow (Jinzhou) Industry Co., Ltd.	Other current financial assets	Yes	21,925	21,925	21,925	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
28	Shantou Buynow Mall Co., Ltd.	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Other current financial assets	Yes	19,732	19,732	19,732	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
28	Shantou Buynow Mall Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	7,893	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
28	Shantou Buynow Mall Co., Ltd.	Suzhou Jinzuo Industry Co., Ltd.	Other current financial assets	Yes	8,770	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
29	Clevo (China) Investment Co., Ltd.	Shanghai Buynow Online Information Technology Co., Ltd.	Other current financial assets	Yes	11,401	11,401	11,401	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
29	Clevo (China) Investment Co., Ltd.	Shanghai Huihei Advertisment Co., Ltd.	Other current financial assets	Yes	8,770	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
30	Anshan Buynow Electronic Information Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	Other current financial assets	Yes	61,389	61,389	61,389	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
31	Guiyang Buynow Electronic Information Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	4,385	4,385	4,385	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
32	Suzhou Jinzuo Industry Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	2,192	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
32	Suzhou Jinzuo Industry Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	47,971	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
33	Buynow (Taizhou) Corporation	Taizhou Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	201,591	201,591	201,591	6 months LIBOR+2.5 %	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
34	Taizhou Buynow Electronic Information Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	135,932	120,147	120,147	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

Table 1 Page 18

NO. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2019 (Note 3)	Balance at September 30, 2019 (Note 9)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful account	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
35	Dezhou Buynow Electronic Information Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	Other current financial assets	Yes	$ 9,866	$ 9,866	$ 9,866	5.00%	2	- $	Additional operating capital	- $	-	- $	$ 16,337,913	$ 40,844,783	Note 8
35	Dezhou Buynow Electronic Information Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	236,785	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
35	Dezhou Buynow Electronic Information Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	Other current financial assets	Yes	57,355	57,355	57,355	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
36	Quanzhou Buynow Industry Co., Ltd.	Beijing Clevo Investment Management Consultant Co., Ltd.	Other current financial assets	Yes	28,502	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
37	Kunshan Kaishuo Trading Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	Other current financial assets	Yes	124,093	101,292	101,292	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
37	Kunshan Kaishuo Trading Co., Ltd.	Shautou Buynow Mall Co., Ltd.	Other current financial assets	Yes	13,155	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8
38	Shanghai Huihei Advertisment Co., Ltd.	Shantou Buynow Mall Co., Ltd.	Other current financial assets	Yes	4,385	-	-	5.00%	2	-	Additional operating capital	-	-	-	16,337,913	40,844,783	Note 8

• Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

• (1)The Company is ‘0’.

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

• Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc.

• Note 3: Fill in the maximum outstanding balance of loans to others during year ended December 31, 2019.

Note 4: The nature of loans ：

• (1)Related to business transactions is"1".

• (2)short-term financing is "2".

• Note 5: In accourdance with the Article 4 of the Company's "Procedured for Provision of Loans" the liait on the loans to a party with business transactions is lower than the amount occurred between the creditor and borrower in the current year when nature of the loan is related to business transactions.

• Note 6: Fill in purpose of loan when nature of loan is for short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc.

• Note 7: According to the Company’s “Procedures for Provision of Loans”

• (1)The ceiling on loans granted by the Company to other shall not be more than 40% of the Company's net asstes.

• (2)The limit on loans granted by the Company to a single party shall not be more than 30% of the Company's net assets.

Note 8:According to the Subsidiaries' “Procedures for Provision of Loans”

• (1)The limit on loans granted by a subsidiary to a single party in which the Company directly and indirectly holds 100%�of the voting shares shall not be more than 40% of the Company's net assets.

• (2)The ceiling on loans to others in which the Company directly and indirectly holds 100% of the voting shares shall not be more than 100% of the Company's net assets,and limit to other single party is 40% of the subsidiary's net assets.

• Note 9: The amounts of funds to be loaned to others which have been approved by the board of directors of a public company in accordance with Article 14, Item 1 of the "Regulations Governing Loaning of Funds and

• Making of Endorsements/Guarantees by Public Companies" should be included in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public

• company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if

• the board of directors of a public company has authorized the chairman to loan funds in instalments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the

• “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies”, the published balance of loans to others at the end of the reporting period should also include these lines of loaning approved by the board of directors, and these lines of loaning should not be excluded from this balance even though the loans are repaid subsequently, for taking into consideration they could be loaned again thereafter.

Table 1 Page 19

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

CLEVO CO. and Subsidiaries Provision of endorsements and guarantees to others Nine-month period ended September 30, 2019

Number （Note 1）	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party （Note 3）	Maximum outstanding endorsement/ guarantee amount as of September 30, 2019 （Note 4）	Outstanding endorsement/ guarantee amount at September 30, 2019 （Note 5）	Actual amount drawn down （Note 6）	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 （Note 3）	Provision of endorsements/ guarantees by parent company to subsidiary （Note 7）	Provision of endorsements/ guarantees by subsidiary to parent company （Note 7）	Provision of endorsements/ guarantees to the party in Mainland China （Note 7）	Footnote
		Company name	Relationship with the endorser/ guarantor （Note 2）
0	The Company	Clevo (Cayman Islands) Holding Co.	2	40,844,783 $	4,962,240 $	4,962,240 $	1,023,462 $	- $	12.15	81,689,566 $	Y	N	N	-
0	The Company	Kapok Computer (Samoa) Corporation	2	40,844,783	1,271,574	1,085,490	82,929	-	2.66	81,689,566	Y	N	N	-
0	The Company	Kapok Computer (Kunshan) Co., Ltd.	3	40,844,783	155,070	155,070	-	-	0.38	81,689,566	Y	N	Y	-
0	The Company	Buynow (Xian) Industry Co., Ltd.	3	40,844,783	241,909	130,259	130,259	-	0.32	81,689,566	Y	N	Y	-
0	The Company	Tianjin Buynow Electronic Information Co., Ltd.	3	40,844,783	446,072	-	-	-	-	81,689,566	Y	N	Y	-
0	The Company	Shantou Buynow Mall Co., Ltd.	3	40,844,783	438,490	438,490	219,245	-	1.07	81,689,566	Y	N	Y	-
0	The Company	Buynow (Chongqing) Industry Co., Ltd.	3	40,844,783	131,810	-	-	-	-	81,689,566	Y	N	Y	-
0	The Company	Buynow (Chengdu) Electronic Information Co., Ltd.	3	40,844,783	434,196	403,182	403,182	-	0.99	81,689,566	Y	N	Y	-

Table 2 Page 1

Number （Note 1）	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party （Note 3）	Maximum outstanding endorsement/ guarantee amount as of September 30, 2019 （Note 4）	Outstanding endorsement/ guarantee amount at September 30, 2019 （Note 5）	Actual amount drawn down （Note 6）	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 （Note 3）	Provision of endorsements/ guarantees by parent company to subsidiary （Note 7）	Provision of endorsements/ guarantees by subsidiary to parent company （Note 7）	Provision of endorsements/ guarantees to the party in Mainland China （Note 7）	Footnote
		Company name	Relationship with the endorser/ guarantor （Note 2）
0	The Company	Anshan Buynow Electronic Information Co., Ltd.	3	40,844,783 $	500,518 $	500,518 $	500,518 $	- $	1.23	81,689,566 $	Y	N	Y	-
0	The Company	Dezhou Buynow Electronic Information Co., Ltd.	3	40,844,783	232,605	232,605	232,605	-	0.57	81,689,566	Y	N	Y	-
0	The Company	Buynow Electronic Information (Hangzhou) Co., Ltd.	3	40,844,783	100,796	100,796	100,796	100,796	0.25	81,689,566	Y	N	Y	-
0	The Company	Taizhou Buynow Electronic Information Co., Ltd.	3	40,844,783	306,943	131,547	131,547	131,547	0.32	81,689,566	Y	N	Y	-
0	The Company	Suzhou Jinzuo Industry Co., Ltd.	3	40,844,783	219,245	-	-	-	-	81,689,566	Y	N	Y	-
0	The Company	Buynow (Jinzhou) Industry Co., Ltd.	3	40,844,783	438,490	438,490	399,903	438,490	1.07	81,689,566	Y	N	Y	-
0	The Company	Buynow (Nanchang) Industry Co., Ltd.	3	40,844,783	219,245	219,245	175,396	219,245	0.54	81,689,566	Y	N	Y	-
0	The Company	Guangdong Buynow Real Estate Management Co., Ltd.	3	40,844,783	131,547	131,547	-	131,547	0.32	81,689,566	Y	N	Y	-
1	Changsha Hungyu Business Management Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	3	40,844,783	306,943	306,943	153,472	306,943	0.75	40,844,783	N	N	Y	-
2	Buynow Electronic Information (Hangzhou) Co., Ltd.	Zibo Buynow Electronic Information Co., Ltd.	3	40,844,783	206,090	206,090	153,340	206,090	0.50	40,844,783	N	N	Y	-
2	Buynow Electronic Information (Hangzhou) Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	3	40,844,783	87,698	87,698	87,698	87,698	0.21	40,844,783	N	N	Y	-

Table 2 Page 2

Number （Note 1）	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party （Note 3）	Maximum outstanding endorsement/ guarantee amount as of September 30, 2019 （Note 4）	Outstanding endorsement/ guarantee amount at September 30, 2019 （Note 5）	Actual amount drawn down （Note 6）	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 （Note 3）	Provision of endorsements/ guarantees by parent company to subsidiary （Note 7）	Provision of endorsements/ guarantees by subsidiary to parent company （Note 7）	Provision of endorsements/ guarantees to the party in Mainland China （Note 7）	Footnote
		Company name	Relationship with the endorser/ guarantor （Note 2）
3	Buynow (Chengdu) Electronic Information Co., Ltd.	Shantou Buynow Mall Co., Ltd.	3	40,844,783 $	2,192,450 $	2,192,450 $	1,232,253 $	2,192,450 $	5.37	40,844,783 $	N	N	Y	-
3	Buynow (Chengdu) Electronic Information Co., Ltd.	Buynow (Chongqing) Industry Co., Ltd.	3	40,844,783	438,490	438,490	346,407	-	1.07	40,844,783	N	N	Y	-
3	Buynow (Chengdu) Electronic Information Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	3	40,844,783	219,245	219,245	175,396	-	0.54	40,844,783	N	N	Y	-
4	Buynow Electronic Information (Shenyang) Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	3	40,844,783	876,980	-	-	-	-	40,844,783	N	N	Y	-
5	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	3	40,844,783	701,584	701,584	-	-	1.72	40,844,783	N	N	Y	-
6	Buynow (Xian) Industry Co., Ltd.	Qingdao Buynow Technology Industry Co., Ltd.	3	40,844,783	701,584	701,584	458,661	-	1.72	40,844,783	N	N	Y	-
7	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Shanghai Buynow Computer Market Management Co., Ltd.	3	40,844,783	285,019	285,019	87,531	285,019	0.70	40,844,783	N	N	Y	-
8	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Kapok Computer (Kunshan) Co., Ltd.	3	40,844,783	852,924	852,924	84,747	852,924	2.09	40,844,783	N	N	Y	-
9	Guangdong Buynow Real Estate Management Co., Ltd.	The Company	3	40,844,783	3,000,000	3,000,000	2,350,000	3,000,000	7.34	40,844,783	N	Y	N	-
10	Buynow (Chongqing) Industry Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	3	40,844,783	219,245	219,245	175,396	219,245	0.54	40,844,783	N	N	Y	-

Table 2 Page 3

Number （Note 1）	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party （Note 3）	Maximum outstanding endorsement/ guarantee amount as of September 30, 2019 （Note 4）	Outstanding endorsement/ guarantee amount at September 30, 2019 （Note 5）	Actual amount drawn down （Note 6）	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 （Note 3）	Provision of endorsements/ guarantees by parent company to subsidiary （Note 7）	Provision of endorsements/ guarantees by subsidiary to parent company （Note 7）	Provision of endorsements/ guarantees to the party in Mainland China （Note 7）	Footnote
		Company name	Relationship with the endorser/ guarantor （Note 2）
11	Buynow (Changchun) Industry Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	3	40,844,783 $	920,829 $	920,829 $	810,330 $	920,829 $	2.25	40,844,783 $	N	N	Y	-
12	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	3	40,844,783	1,578,564	1,578,564	1,556,640	1,578,564	3.86	40,844,783	N	N	Y	-
13	Taizhou Buynow Electronic Information Co., Ltd.	Buynow (Jinzhou) Industry Co., Ltd.	3	40,844,783	526,188	526,188	526,188	526,188	1.29	40,844,783	N	N	Y	-
14	Daqing Buynow Electronic Information Co., Ltd.	Buynow (Nanchang) Industry Co., Ltd.	3	40,844,783	219,245	219,245	175,396	219,245	0.54	40,844,783	N	N	Y	-

• Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

• (1)The Company is ‘0’.

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

• Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories; fill in the number of category each case belongs to:

• (1)Having business relationship.

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

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

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

• (5)Mutual guarantee of the trade made by the endorsed/guaranteed company or joint contractor as required under the construction contract.

• (6)Due to joint venture, all shareholders provide endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

• Note 3: In accordance with Company's procedures of endorsements and guarantees, limit on the Company's total guarantee amount is 200% of the Company's net assets, and the limit on endorsement/guarantee

• to a single party is 100% of the aforementioned total amount. The limit on total guarantee amount and the endorsement/guarantee to a single party of the subsidiaries owned directly or

• indirectly 100% voting shares by the Company are both 200% of the Company's net assets. The limit on total guarantee amount and the endorsement/guarantee to a single party of the subsidiaries owned directly or indirectly 100% voting shares by the Company are both 200% of the Company's net assets.

• Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

• Note 5: Fill in the amount approved by the Board of Directors or the chariman if the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies.

• Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

• Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

• Note 8: The limit on the Company and the subsidiaries' total endorsement/guarantee amount is 300% of the Company's net assets.

• Note 9: The limit on endorsement/guarantee to a single party of the Company and the subsidiaries is 100% of the Company's net assets.

• Note 10: When the total guarantee amount of the Company and the subsidiaries reached 50% of the Company's net assets, it is necessary to explain the necessity and reasonableness at the shareholders' meeting.

• Note 11: In accordance with Article 5 of the Company's procedures of endorsements and guarantees, due to the endorsement of the business relationship, the limit on endorsement/guarantee to a single

• party due to business relationship shall not exceed the limit mentioned in Note 3 and the actual sales amount between of the single enterprise and the guarantee company within the last year.

Table 2 Page 4

CLEVO CO. and Subsidiaries Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) September 30, 2019

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer （Note 2）	General ledger account	As of September 30,2019	As of September 30,2019	As of September 30,2019	As of September 30,2019	Footnote （Note 4）
				Number of shares	Book value （Note 3）	Ownership	Fair value
	Stocks
The Company	AU Optronics Corp.	-	Current financial assets measured at fair value through profit or loss	1,092,989 $	8,591 $	0.01%	8,591 $	-
The Company	Chicony Electronics Co., Ltd.	Same chairman as the Company	Current financial assets measured at fair value throughprofit or loss	4,697,000	429,306	0.64%	429,306	-
The Company	Innolux Corporation	-	Current financial assets measured at fair value through profit or loss	51,219	338	0.00%	338	-
The Company	Net Publishing Co., Ltd.	-	Current financial assets measured at fair value through profit or loss	230,000	16,583	0.55%	16,583	-
The Company	Taiwan Business Bank, Ltd.	-	Current financial assets measured at fair value through profit or loss	7,976,979	101,706	0.12%	101,706	-
The Company	Da Lue International Holding Co., Ltd.	-	Current financial assets measured at fair value through profit or loss	1,745,283	25,045	3.90%	25,045	-
The Company	PING AN INSURANCE (GROUP) CO. OF CHINA,LTD.	-	Current financial assets measured at fair value throughprofit or loss	300,000	106,844	0.00%	106,844	-
The Company	Boe Technology Group Co., Ltd.	-	Current financial assets measured at fair value throughprofit or loss	375,000	6,166	0.00%	6,166	-
The Company	Hangzhou Hikvision Digital Technology Co.,Ltd.	-	Current financial assets measured at fair value throughprofit or loss	300,000	42,490	0.04%	42,490	-
The Company	ChinaAMC CSI 300 Index ETF	-	Current financial assets measured at fair value throughprofit or loss	200,000	33,973	0.05%	33,973	-
	Stocks
Kapok Computer Co., Ltd.	Chicony Electronics Co., Ltd.	Same chairman as the Company	Current financial assets measured at fair value through profit or loss	40,862	3,735	0.01%	3,735	-
Kapok Computer Co., Ltd.	CLEVO CO.	The Company	Non-current financial assets measured at fair value through other comprehensive income	16,966,596	533,599	2.53%	533,599	-
	Stocks
Clevo Investment Co., Ltd.	Chicony Electronics Co., Ltd.	Same chairman as the Company	Current financial assets measured at fair value through profit or loss	182,072	16,641	0.02%	16,641	-
Clevo Investment Co., Ltd.	CLEVO CO.	The Company	Non-current financial assets measured at fair value through other comprehensive income	10,080,669	317,037	1.51%	317,037	-
	Beneficiary certificate
Clevo (Cayman Islands) Holding Company	Greater China Multi-Strategy Fund	-	Current financial assets measured at fair value through profit or loss	124,095	366,007	0.00%	366,007	-

Table 3 Page 1

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer （Note 2）	General ledger account	As of September 30,2019	As of September 30,2019	As of September 30,2019	As of September 30,2019	Footnote （Note 4）
				Number of shares	Book value （Note 3）	Ownership	Fair value
Clevo (Cayman Islands) Holding Company	UG Hidden Dragon Special Opportunity Fund	-	Current financial assets measured at fair value throughprofit or loss	266,378 $	329,825 $	0.00%	329,825 $	-
	Stocks
Kapok Computer (Kunshan) Co., Ltd.	Hangzhou Hikvision Digital Technology Co.,Ltd.	-	Current financial assets measured at fair value throughprofit or loss	427,065	60,486	0.01%	60,486	-
Kapok Computer (Kunshan) Co., Ltd.	Wangsu Science & Technology Co., Ltd.	-	Current financial assets measured at fair value through profit or loss	603,667	26,470	0.03%	26,470	-
Kapok Computer (Kunshan) Co., Ltd.	East Money Information Co., Ltd.	-	Current financial assets measured at fair value throughprofit or loss	2,312,396	149,864	0.04%	149,864	-

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

• Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

• Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

• Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3 Page 2

CLEVO CO. and Subsidiaries Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more Nine-month period ended September 30, 2019

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

Real estate acquired by	Real estate acquired	Date of the event	Transaction amount	Status of payment	Counterparty	Relationship with the counterparty	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	Basis or reference used in setting the price	Reason for acquisition of real estate and status of the real estate	Other commitments
							Original owner who sold the real estate to the counterparty	Relationship between the original owner and the acquirer	Date of the original transaction	Amount
Buynow (Xian) Industry Co., Ltd.	Construction in Progress, Prepayments and Land Use Right	2005~ Third Quarter of 2019	$ 1,097,751	$ 663,732	Xi'an Xinxiaozhai Old Village Reconstruction and Construction Development Co., Ltd. etc.	-	-	-	-	$ -	mutual agreement	department store; under construction	-
Yingkou Buynow Electronic Information Co., Ltd.	Construction in Progress and Land Use Right	Second Quarter of 2011~ Third Quarter of 2019	745,100	727,267	Bureau of Land and Resources of Yingkou City etc.	-	-	-	-	-	mutual agreement	department store; under construction	-
Anshan Buynow Electronic Information Co., Ltd.	Buildings and Land Held for Sale, Construction in Progress and Land Use Right	Second Quarter of 2011~ Third Quarter of 2019	3,106,958	2,944,925	Bureau of Land and Resources of Anshan City etc.	-	-	-	-	-	mutual agreement	department store; under construction	-
Guiyang Buynow Electronic Information Co., Ltd.	Construction in Progress and Land Use Right	Fourth Quarter of 2011~ Third Quarter of 2019	1,411,471	1,352,418	Guiyang Municipal Bureau of Land and Resources etc.	-	-	-	-	-	mutual agreement	department store; under construction	-
Buynow (Jinzhou) Industry Co., Ltd.	Buildings and Land Held for Sale, Construction in Progress and Land Use Right	Second Quarter of 2013~ Third Quarter of 2019	1,764,920	1,746,744	Jinzhou Municipal Bureau of Land and Resources etc.	-	-	-	-	-	mutual agreement	department store; under construction	-

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 4

Table 5

CLEVO CO. and Subsidiaries

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

Nine-month period ended September 30, 2019

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 setting the price	Other commitments
Lunaria Investment GK	Investment property	July 18, 2019	November 6, 2014	3,603,316 $	4,066,394 $	$ 4,066,394	463,078 $	PLC11R合同 會社	None	Active assets, create operating performance of group mall.	Refer to the appraised amount and resolved by the Board of Directors	Fulfill the rights and obligations based on the agreement mutually signed

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 b 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 an monetary amount of the transaction, whichever is earlier.

Table 5

CLEVO CO. and Subsidiaries Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more Nine-month period ended September 30, 2019

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions （Note 1）	Differences in transaction terms compared to third party transactions （Note 1）	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
The Company	Kapok Computer (Kunshan) Co., Ltd.	The Company as the ultimate parent company	Purchases	8,919,789 $	63.99%	Open account 30 days and offset between creditor's rights and debt obligation. Prepayment is allowed when there is fund demand.	The selling price is reduced by 5%~15%. However, it can be adjusted according to market conditions.	1~5 months for normal customers due to fund demands.	- $	-	-
The Company	Kapok Computer (Kunshan) Co., Ltd.	The Company as the ultimate parent company	Sales	( 3,212,463)	22.11%	180 days	The goods are not sold to other customers, so the prices cannot be compared.	1~2 months for normal customers due to fund demands.	1,813,767	44.78%	-
Kapok Computer (Kunshan) Co., Ltd.	The Company	The Company as the ultimate parent company	Sales	( 8,919,789)	99.98%	Open Account 30 Days	It is the only customer, so the price cannot be compared.	-	-	-	-
Kapok Computer (Kunshan) Co., Ltd.	The Company	The Company as the ultimate parent company	Purchases	3,212,463	44.14%	180 days	It is the only customer, so the price cannot be compared.	-	( 1,813,767)	50.06%	-
Kapok Computer (Samoa) Corporation	Kapok Computer (Kunshan) Co., Ltd.	The Company as a subsidiary	Sales	( 347,648)	100.00%	Open Account 180 Days	It is the only customer, so the price cannot be compared.	-	( 319)	100%	-
Kapok Computer (Kunshan) Co., Ltd.	Kapok Computer (Samoa) Corporation	The Company as a subsidiary	Purchases	347,648	4.77%	180 days	It is the only customer, so the price cannot be compared.	-	319	-0.01%	-

Note 1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the ‘Unit price’ and ‘Credit term’ columns.

Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party transactions.

Note 3: 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.

Table 6

CLEVO CO. and Subsidiaries

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

Nine-month period ended September 30, 2019

Nine-month period ended September 30, 2019	Nine-month period ended September 30, 2019	Nine-month period ended September 30, 2019	Nine-month period ended September 30, 2019	Nine-month period ended September 30, 2019
Table 7					Expressed in thousands of NTD (Except as otherwise indicated)
Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30, 2019 （Note 1）	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
The Company	Kapok Computer (Kunshan) Co., Ltd.	The transaction object is a subsidiary of the company.	1,813,767 $	3.25	- $	Change into other current financial assets	- $	- $

Note 1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the ‘Unit price’ and ‘Credit term’ columns.

Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party transactions.

Note 3: 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.

Table 7

CLEVO CO. and Subsidiaries Significant inter-company transactions during the reporting period Nine-month period ended September 30, 2019

Table 8

Expressed in thousands of NTD

(Except as otherwise indicated)

N0. （Note 1）	Company name	Counterparty	Relationship （Note 2）	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	The Company	Kapok Computer (Kunshan) Co., Ltd.	1	Purchases	8,919,789 $	The selling price is reduced by 5%~15%. However, it can be adjusted according to market conditions. The payment period is open account 30 days.	53.72%
0	The Company	Kapok Computer (Kunshan) Co., Ltd.	1	Sales	3,212,463	It is the only customer, so the price cannot be compared. The payment period is 180 days.	19.35%
0	The Company	Clevo (Cayman Islands) Holding Company	2	Other current financial assets	769,178	1.00%	0.74%
1	Kapok Computer Co., Ltd.	The Company	2	Other current financial assets	55,000	1.04%	0.05%
2	Clevo Computer Singapore Ptd Ltd.	The Company	3	Other non-current financial assets	120,955	0.00%	0.12%
3	Clevo (Cayman Islands) Holding Company	Buynow Electronic Information (Hangzhou) Co., Ltd.	3	Other current financial assets	139,563	6 months LIBOR+2.5%	0.13%
3	Clevo (Cayman Islands) Holding Company	Buynow (Guangzhou) Corporation	3	Other current financial assets	139,563	6 months LIBOR+1.5%	0.13%
3	Clevo (Cayman Islands) Holding Company	Buynow (Xian) Industry Co., Ltd.	3	Other current financial assets	62,028	6 months LIBOR+2.5%	0.06%
3	Clevo (Cayman Islands) Holding Company	Buynow (Harbin) Corporation	3	Other current financial assets	91,491	6 months LIBOR+1.5%	0.09%
3	Clevo (Cayman Islands) Holding Company	Daqing Buynow Electronic Information Co., Ltd.	3	Other current financial assets	93,042	6 months LIBOR+2.5%	0.09%
3	Clevo (Cayman Islands) Holding Company	Zibo Buynow Electronic Information Co., Ltd.	3	Other current financial assets	93,042	6 months LIBOR+2.5%	0.09%
3	Clevo (Cayman Islands) Holding Company	Buynow (Taizhou) Corporation	3	Other current financial assets	201,591	6 months LIBOR+2%	0.19%
3	Clevo (Cayman Islands) Holding Company	Kunshan Kaishuo Trading Co., Ltd.	3	Other non-current financial assets	153,472	3.00%	0.15%

Table 8 Page 1

N0. （Note 1）	Company name	Counterparty	Relationship （Note 2）	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	The Company	Kapok Computer (Kunshan) Co., Ltd.	3	Accounts receivable- related parties	1,813,767 $	-	1.74%
4	Buynow Electronic Information (Hangzhou) Co., Ltd.	Changsha Hungyu Business Management Co., Ltd.	3	Other current financial assets	125,189	5.00%	0.12%
4	Buynow Electronic Information (Hangzhou) Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	3	Other current financial assets	188,990	5.00%	0.18%
4	Buynow (Hangzhou) Electronic Information Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	3	Other current financial assets	208,941	5.00%	0.20%
4	Buynow Electronic Information (Hangzhou) Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	3	Other current financial assets	123,216	5.00%	0.12%
5	Buynow (Chengdu) Electronic Information Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	3	Other current financial assets	188,551	5.00%	0.18%
5	Buynow (Chengdu) Electronic Information Co., Ltd.	Buynow (Fujian) Electronic Technology Development Co., Ltd.	3	Other current financial assets	284,278	5.00%	0.27%
5	Buynow (Chengdu) Electronic Information Co., Ltd.	Shanghai Buynow Electronic Products Market Management Co., Ltd.	3	Other current financial assets	105,238	5.00%	0.10%
5	Buynow (Chengdu) Electronic Information Co., Ltd.	Zibo Buynow Electronic Information Co., Ltd.	3	Other current financial assets	62,266	5.00%	0.06%
5	Buynow (Chengdu) Electronic Information Co., Ltd.	Buynow Electronic Information (Huizhou) Co., Ltd.	3	Other current financial assets	131,898	5.00%	0.13%
5	Buynow (Chengdu) Electronic Information Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	3	Other current financial assets	299,139	5.00%	0.29%
5	Buynow (Chengdu) Electronic Information Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	3	Other current financial assets	167,723	-	0.16%
5	Buynow (Chengdu) Electronic Information Co., Ltd.	Shantou Buynow Mall Co., Ltd.	3	Non-operating receivables-related parties	96,284	5.00%	0.09%
6	Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Buynow (Xian) Indsutry Co., Ltd.	3	Other current financial assets	342,243	5.00%	0.33%
6	Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	3	Other current financial assets	128,478	5.00%	0.12%
6	Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	3	Other current financial assets	89,014	5.00%	0.09%
7	Kapok Computer (Kunshan) Co., Ltd.	Buynow (Nanchang) Industry Co., Ltd.	3	Other current financial assets	324,264	5.00%	0.31%
7	Kapok Computer (Kunshan) Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	3	Other current financial assets	103,572	5.00%	0.10%

Table 8 Page 2

N0. （Note 1）	Company name	Counterparty	Relationship （Note 2）	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
7	Kapok Computer (Kunshan) Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	3	Other current financial assets	547,106 $	5.00%	0.53%
7	Kapok Computer (Kunshan) Co., Ltd.	Shanghai Buynow Electronic Products Market Management Co., Ltd.	3	Other current financial assets	175,397	5.00%	0.17%
7	Kapok Computer (Kunshan) Co., Ltd.	Shantou Buynow Mall Co. Ltd.	3	Other current financial assets	719,652	5.00%	0.69%
7	Kapok Computer (Kunshan) Co., Ltd.	Yingkou Buynow Electronic Information Co., Ltd.	3	Other current financial assets	83,313	5.00%	0.08%
7	Kapok Computer (Kunshan) Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	3	Other current financial assets	436,299	5.00%	0.42%
7	Kapok Computer (Kunshan) Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	3	Other current financial assets	555,569	5.00%	0.53%
7	Kapok Computer (Kunshan) Co., Ltd.	Kapok Computer (Samoa) Corporation	3	Purchases	347,648	The goods are not sold to other customers, so the prices cannot be compared.	2.09%
8	Buynow (Nanchang) Industry Co., Ltd.	Buynow (Chongging) Industry Co., Ltd.	3	Other current financial assets	58,758	5.00%	0.06%
8	Buynow (Nanchang) Industry Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	3	Other current financial assets	83,313	5.00%	0.08%
8	Buynow (Nanchang) Industry Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	3	Other current financial assets	273,268	5.00%	0.26%
8	Buynow (Nanchang) Industry Co., Ltd.	Taizhou Buynow Electronic Information Co., Ltd.	3	Other current financial assets	118,831	5.00%	0.11%
8	Buynow (Nanchang) Industry Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	3	Other current financial assets	182,851	5.00%	0.18%
8	Buynow (Nanchang) Industry Co., Ltd.	Buynow (Jinzhou) Industry Co., Ltd.	3	Other current financial assets	67,089	5.00%	0.06%
9	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Changsha Hungyu Business Management Co., Ltd.	3	Other current financial assets	63,011	5.00%	0.06%
9	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	3	Other current financial assets	197,058	5.00%	0.19%
9	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Beijing Kaiye Electronic Technology Co., Ltd.	3	Other current financial assets	182,500	5.00%	0.18%
9	Buynow (Zhengzhou) Electronic Information Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	3	Other current financial assets	82,743	5.00%	0.08%
10	Buynow (Guangzhou) Corporation	Buynow (Guangzhou) Electronic Information Co., Ltd.	3	Other current financial assets	155,070	6 months LIBOR+2.5%	0.15%
11	Buynow Electronic Information (Shenyang) Co., Ltd.	Changsha Hungyu Business Management Co., Ltd.	3	Other current financial assets	96,687	5.00%	0.09%
11	Buynow Electronic Information (Shenyang) Co., Ltd.	Yingkou Buynow Electronic Information Co., Ltd.	3	Other current financial assets	134,222	5.00%	0.13%

Table 8 Page 3

N0. （Note 1）	Company name	Counterparty	Relationship （Note 2）	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
11	Buynow Electronic Information (Shenyang) Co., Ltd.	Yingkou Buynow Electronic Information Co., Ltd.	3	Non-operating receivables-related parties	70,360 $	-	0.07%
11	Buynow Electronic Information (Shenyang) Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	3	Other current financial assets	50,470	5.00%	0.05%
12	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	3	Other current financial assets	82,656	5.00%	0.08%
12	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Beijing Kaiye Electronic Technology Co., Ltd.	3	Other current financial assets	57,004	5.00%	0.05%
12	Buynow (Fujian) Electronic Technology Development Co., Ltd.	Daqing Buynow Electronic Information Co., Ltd.	3	Other current financial assets	247,704	5.00%	0.24%
13	Buynow (Xian) Industry Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	3	Other current financial assets	153,691	5.00%	0.15%
13	Buynow (Xian) Industry Co., Ltd.	Taizhou Buynow Electronic Information Co., Ltd.	3	Other current financial assets	75,201	5.00%	0.07%
14	Buynow (Changchun) Industry Co., Ltd.	Buynow (Xian) Inclustry Co., Ltd.	3	Other current financial assets	157,857	5.00%	0.15%
14	Buynow (Changchun) Industry Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	3	Other current financial assets	78,753	5.00%	0.08%
15	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	3	Other current financial assets	75,771	5.00%	0.07%
15	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	3	Other current financial assets	94,056	5.00%	0.09%
16	Quality Trust Property Management Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	3	Other current financial assets	70,948	5.00%	0.07%
17	Buynow (Harbin) Corporation	Buynow (Harbin) Industry Co., Ltd.	3	Other current financial assets	93,042	6 months LIBOR+2.5%	0.09%

Table 8 Page 4

N0. （Note 1）	Company name	Counterparty	Relationship （Note 2）	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
18	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	3	Other current financial assets	185,482 $	5.00%	0.18%
18	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	3	Other current financial assets	115,104	5.00%	0.11%
18	Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	3	Other current financial assets	156,138	5.00%	0.15%
19	Buynow (Chongqing) Industry Co., Ltd.	Shantou Buynow Mall Co., Ltd.	3	Other current financial assets	114,622	5.00%	0.11%
19	Buynow (Chongqing) Industry Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	3	Non-operating receivables-related parties	65,241	-	0.06%
20	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Qingdao Buynow Technology Industry Co., Ltd.	3	Other current financial assets	187,630	5.00%	0.18%
20	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Daqing Buynow Electronic Information Co., Ltd.	3	Other current financial assets	158,471	5.00%	0.15%
20	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Clevo (China) Investment Co., Ltd.	3	Other current financial assets	55,250	5.00%	0.05%
20	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	3	Other current financial assets	469,186	5.00%	0.45%
20	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	3	Other current financial assets	195,129	5.00%	0.19%
20	Shanghai Buynow Electronic Products Market Management Co., Ltd.	Qingdao Buynow Technology Industry Co., Ltd.	3	Non-operating receivables-related parties	70,200	-	0.07%
21	Daqing Buynow Electronic Information Corporation	Buynow (Zhengzhou) Electronic Information Co., Ltd.	3	Other current financial assets	149,087	5.00%	0.14%
22	Tianjin Buynow Electronic Information Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	3	Other current financial assets	140,756	5.00%	0.14%
22	Tianjin Buynow Electronic Information Co., Ltd.	Buynow (Fujian) Electronic Technology development Co., Ltd.	3	Other current financial assets	67,308	5.00%	0.06%
22	Tianjin Buynow Electronic Information Co., Ltd.	Buynow (Xian) Industry Co., Ltd.	3	Other current financial assets	57,881	5.00%	0.06%
22	Tianjin Buynow Electronic Information Co., Ltd.	Qingdao Buynow Technology Industry Co., Ltd.	3	Other current financial assets	197,146	5.00%	0.19%
22	Tianjin Buynow Electronic Information Co., Ltd.	Zibo Buynow Electronic Information Co., Ltd.	3	Other current financial assets	140,510	5.00%	0.13%
22	Tianjin Buynow Electronic Information Co., Ltd.	Anshan Buynow Electronic Information Co., Ltd.	3	Other current financial assets	168,512	5.00%	0.16%

Table 8 Page 5

N0. （Note 1）	Company name	Counterparty	Relationship （Note 2）	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
22	Tianjin Buynow Electronic Information Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	3	Other current financial assets	55,827 $	5.00%	0.05%
22	Tianjin Buynow Electronic Information Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	3	Non-operating receivables-related parties	50,865	-	0.05%
22	Tianjin Buynow Electronic Information Co., Ltd.	Luoyang Buynow Electronic Information Co., Ltd.	3	Other current financial assets	69,238	5.00%	0.07%
23	Buynow (Yancheng) Electronoc Information Technology Development Co., Ltd.	Shantou Buynow Mall Co., Ltd.	3	Other current financial assets	488,260	5.00%	0.47%
23	Buynow (Yancheng) Electronoc Information Technology Development Co., Ltd.	Dezhou Buynow Electronic Information Co., Ltd.	3	Other current financial assets	127,163	5.00%	0.12%
24	Beijing Clevo Investment Management Consultant Co., Ltd.	Qingdao Buynow Technology Industry Co., Ltd.	3	Other current financial assets	203,022	5.00%	0.20%
24	Beijing Clevo Investment Management Consultant Co., Ltd.	Buynow Electronic Information (Hangzhou) Co., Ltd	3	Other current financial assets	179,343	5.00%	0.17%
24	Beijing Clevo Investment Management Consultant Co., Ltd.	Taizhou Buynow Electronic Information Co., Ltd.	3	Other current financial assets	113,745	5.00%	0.11%
25	Guangdong Buynow Real Estate Management Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	3	Other current financial assets	375,963	5.00%	0.36%
25	Guangdong Buynow Real Estate Management Co., Ltd.	Buynow (Nanchang) Industry Co., Ltd.	3	Other current financial assets	249,940	5.00%	0.24%
25	Guangdong Buynow Real Estate Management Co., Ltd.	Buynow (Guangzhou) Electronic Information Co., Ltd.	3	Other current financial assets	58,319	5.00%	0.06%
25	Guangdong Buynow Real Estate Management Co., Ltd.	Buynow (Harbin) Industry Co., Ltd.	3	Other current financial assets	50,427	5.00%	0.05%
25	Guangdong Buynow Real Estate Management Co., Ltd.	Daqing Buynow Electronic Information Co., Ltd.	3	Other current financial assets	125,496	5.00%	0.12%
25	Guangdong Buynow Real Estate Management Co., Ltd.	Buynow Electronic Information (Hangzhou) Co., Ltd	3	Other current financial assets	192,059	5.00%	0.18%
25	Guangdong Buynow Real Estate Management Co., Ltd.	Shantou Buynow Mall Co., Ltd.	3	Other current financial assets	129,346	5.00%	0.12%
25	Guangdong Buynow Real Estate Management Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	3	Other current financial assets	161,803	5.00%	0.16%
25	Guangdong Buynow Real Estate Management Co., Ltd.	Suzhou Jinzuo Industry Co., Ltd.	3	Other current financial assets	188,814	5.00%	0.18%
25	Guangdong Buynow Real Estate Management Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	3	Other current financial assets	192,936	5.00%	0.19%
25	Guangdong Buynow Real Estate Management Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	3	Other current financial assets	100,735	5.00%	0.10%

Table 8 Page 6

N0. （Note 1）	Company name	Counterparty	Relationship （Note 2）	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
25	Guangdong Buynow Real Estate Management Co., Ltd.	Guiyang Buynow Electronic Information Co., Ltd.	3	Non-operating receivables-related parties	56,904 $	-	0.05%
26	Anshan Buynow Electronic Information Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	3	Non-operating receivables-related parties	61,389	-	0.06%
27	Buynow (Taizhou) Corporation	Taizhou Buynow Electronic Information Co., Ltd.	3	Other current financial assets	201,591	5.00%	0.19%
28	Taizhou Buynow Electronic Information Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	3	Other current financial assets	120,147	6 months LIBOR+2.5%	0.12%
29	Dezhou Buynow Electronic Information Co., Ltd.	Quanzhou Buynow Industry Co., Ltd.	3	Other current financial assets	57,355	5.00%	0.06%
30	Kunshan Kaishuo Trading Co., Ltd.	Shanghai Buynow Electronic Information Co., Ltd.	3	Other current financial assets	101,292	5.00%	0.10%

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 period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts. Note 4: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Table 8 Page 7

Expressed in thousands of NTD (Except as otherwise indicated)

CLEVO CO. and Subsidiaries Information on investees

Nine-month period ended September 30, 2019

Table 9

Investor	Investee （Notes 1 and 2）	Location	Main business activities	Initial investment amount （Note 3）	Initial investment amount （Note 3）	Shares held as at September 30, 2019	Shares held as at September 30, 2019	Shares held as at September 30, 2019	Net profit (loss) of the investee for the nine- month period ended September 30, 2019	Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2019	Footnote
				Balance at September 30, 2019	Balance at December 31, 2018	Number of shares	Ownership (%)	Book value
The Company	Clevo Computer Singapore Pte Ltd.	Singapore	Management and advisory of computers	529,638 $	529,638 $	27,544,070	100.00	7,605,076 $	144,592 $	144,592 $	The subsidiary of the Company
The Company	Clevo (Cayman Islands) Holding Company	Cayman Islands	Investment	11,329,649	11,329,649	220,730,000	100.00	39,449,166	405,346	405,346	The subsidiary of the Company
The Company	Kapok Computer (Samoa) Corporation	Samoa	Investment	232,643	232,643	7,000,000	100.00	1,068,098	46,229	45,881	The subsidiary of the Company
The Company	Buynow On-Line Holding Corporation	Samoa	Investment	35,513	35,513	1,100,000	100.00	7,783) (	2,130) (	2,130) (	The subsidiary of the Company
The Company	Clevo Investment Co., Ltd.	Taiwan	Investment	140,000	140,000	14,000,000	100.00	76,811	17,350	7,270	The subsidiary of the Company
The Company	Kapok Computer Co., Ltd.	Taiwan	Design and sale of computers and computer peripherals	80,000	80,000	8,000,000	100.00	59,235	18,594	1,628	The subsidiary of the Company
The Company	Lunaria Investment Gk	Japan	Investment	-	1,172,094	-	98.99	374,460	498,578	493,542	The subsidiary of the Company
Clevo Computer Singapore Pte Ltd.	Buynow (Chengdu) Corporation	Samoa	Investment	278,468	278,468	7,000,000	100.00	3,492,233	58,054	58,054	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow Global Corporation	British Virgin Islands	Investment	118,490	118,490	2,600,000	100.00	855,307	13,632	13,632	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Hangzhou) Corporation	British Virgin Islands	Investment	173,107	173,107	5,000,000	100.00	3,208,337	76,823	76,823	The Company as the ultimate parent company

Table 9 Page 1

Investor	Investee （Notes 1 and 2）	Location	Main business activities	Initial investment amount （Note 3）	Initial investment amount （Note 3）	Shares held as at September 30, 2019	Shares held as at September 30, 2019	Shares held as at September 30, 2019	Net profit (loss) of the investee for the nine- month period ended September 30, 2019	Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2019	Footnote
				Balance at September 30, 2019	Balance at December 31, 2018	Number of shares	Ownership (%)	Book value
Clevo (Cayman Islands) Holding Company	Buynow (Zhengzhou) Corporation	Samoa	Investment	103,185 $	103,185 $	3,000,000	100.00	3,112,718 $	67,058 $	67,058 $	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow Group (Changsha) Corporation	British Virgin Islands	Investment	136,180	136,180	4,000,000	100.00	227,385	6,201	6,201	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Nanchang) Corporation	Samoa	Investment	104,484	104,484	3,000,000	100.00	2,897,938	945,822	945,822	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Guangzhou) Corporation	Samoa	Investment	161,745	161,745	5,000,000	100.00	2,371,185	22,152	22,152	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Flying Wolf Investment Limited	British Virgin Islands	Investment	96,141	96,141	3,000,000	100.00	3,055,472	49,170	49,170	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Xiamen) Corporation	Samoa	Investment	95,502	95,502	3,000,000	100.00	1,844,099	16,752	16,752	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow Group (Xian) Corporation	Samoa	Investment	96,543	96,543	3,000,000	100.00	766,478	17,244	17,244	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Changchun) Corporation	Samoa	Investment	64,064	64,064	2,000,000	100.00	2,805,808	82,186	82,186	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Wuhan) Corporation	Samoa	Investment	-	448,211	-	-	-	-	-	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow Group (Qingdao) Corporation	Samoa	Investment	115,648	115,648	3,500,000	100.00	115,973	1,253	1,253	The Company as the ultimate parent company

Table 9 Page 2

Investor	Investee （Notes 1 and 2）	Location	Main business activities	Initial investment amount （Note 3）	Initial investment amount （Note 3）	Shares held as at September 30, 2019	Shares held as at September 30, 2019	Shares held as at September 30, 2019	Net profit (loss) of the investee for the nine- month period ended September 30, 2019	Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2019	Footnote
				Balance at September 30, 2019	Balance at December 31, 2018	Number of shares	Ownership (%)	Book value
Clevo (Cayman Islands) Holding Company	Buynow (Chongqing) Limited	Hong Kong	Investment	169,140 $	169,140 $	5,000,000	100.00	1,077,774 $	7,515 $	7,515 $	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Flying International Investment Limited	Samoa	Investment	178,968	178,968	3,000,000	100.00	2,340,742	19,386	19,386	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Samoa	Investment	64,054	64,054	2,000,000	100.00	1,217,729	29,216	29,216	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Harbin) Corporation	Samoa	Investment	99,012	99,012	3,000,000	100.00	103,041	84,210) (	84,210) (	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Daqing) Corporation	Samoa	Investment	96,894	96,894	3,000,000	100.00	19,031) (	705) (	705) (	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Zibo) Corporation	Samoa	Investment	95,805	95,805	3,000,000	100.00	63,482) (	17,017) (	17,017) (	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Beijing) Corporation	Samoa	Investment	244,256	244,256	6,000,000	100.00	1,701,048	38,577	38,577	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Skill Develop International Limited	Samoa	Investment	581,916	581,916	9,350,000	100.00	5,108,978	83,684	83,684	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Yancheng) Corporation	Samoa	Investment	931,920	931,920	31,500,000	100.00	742,934	3) (	3) (	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Huizhou) Corporation	Samoa	Investment	200,737	200,737	1,500,000	100.00	60,028) (	2,897) (	2,897) (	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Yingkou) Corporation	Samoa	Investment	434,082	434,082	15,000,000	100.00	417,350	282) (	282) (	The Company as the ultimate parent company

Table 9 Page 3

Investor	Investee （Notes 1 and 2）	Location	Main business activities	Initial investment amount （Note 3）	Initial investment amount （Note 3）	Shares held as at September 30, 2019	Shares held as at September 30, 2019	Shares held as at September 30, 2019	Net profit (loss) of the investee for the nine- month period ended September 30, 2019	Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2019	Footnote
				Balance at September 30, 2019	Balance at December 31, 2018	Number of shares	Ownership (%)	Book value
Clevo (Cayman Islands) Holding Company	Buynow (Anshan) Corporation	Samoa	Investment	1,119,393 $	1,119,393 $	38,000,000	100.00	1,145,051 $	71,600) ($	71,600) ($	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Guiyang) Corporation	Samoa	Investment	301,236	240,132	10,000,000	100.00	262,662	783) (	783) (	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Chicony Industry (Wuhan) Co., Ltd.	British Virgin Islands	Investment	123,204	123,204	3,600,000	30.00	2,372,442	225,317	67,595	Investment accounted for under equity method
Clevo (Cayman Islands) Holding Company	Chicony Square (Cayman) Inc.	Cayman Islands	Investment	86,886	86,886	3,000,000	30.00	58,294) (	11,097) (	3,329) (	Investment accounted for under equity method
CLEVO (CAYMAN ISLANDS) HOLDING COMPANY	BUYNOW (WUHAN) CORPORATION	Samoa	Investment	-	-	4,500,000	30.00	229,908	127,317) (	38,195) (	Investment accounted for under equity method
Clevo (Cayman Islands) Holding Company	Chicony Chengdu International Inc.	British Virgin Islands	Investment	362,866	362,866	1,500,000	3.75	36,702	57,334	2,150	Investment accounted for under equity method
Clevo (Cayman Islands) Holding Company	Buynow (Taizhou) Corporation	Samoa	Investment	505,786	505,786	17,000,000	100.00	298,090	17,461) (	17,461) (	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Smarter Capital Limited	Samoa	Investment	1,013,693	1,013,693	14,900,000	100.00	964,494	11,705	11,705	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Dezhou) Corporation	Samoa	Investment	881,914	881,914	30,000,000	100.00	425,361	331,220) (	331,220) (	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Luoyang) Corporation	Samoa	Investment	894,346	894,346	30,000,000	100.00	248,861	284,519) (	284,519) (	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Fujian Quanzhou) Corporation	Samoa	Investment	446,195	446,195	15,000,000	100.00	463,327	2,028	2,028	The Company as the ultimate parent company

Table 9 Page 4

Investor	Investee （Notes 1 and 2）	Location	Main business activities	Initial investment amount （Note 3）	Initial investment amount （Note 3）	Shares held as at September 30, 2019	Shares held as at September 30, 2019	Shares held as at September 30, 2019	Net profit (loss) of the investee for the nine- month period ended September 30, 2019	Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2019	Footnote
				Balance at September 30, 2019	Balance at December 31, 2018	Number of shares	Ownership (%)	Book value
Clevo (Cayman Islands) Holding Company	Buynow (Jinzhou) Corporation	Samoa	Investment	448,081 $	448,081 $	15,000,000	100.00	342,711 $	72,779) ($	72,779) ($	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Buynow (Shantou) Corporation	Samoa	Investment	578,224	578,224	19,200,000	100.00	587,367	335,936) (	335,936) (	The Company as the ultimate parent company
Clevo (Cayman Islands) Holding Company	Clevo (HK) Investment Holding Limited	Hong Kong	Investment	3,138	3,138	100,000	100.00	3,445	12	12	The Company as the ultimate parent company
Clevo (HK) Investment Holding Limited	Clevo Japan Gk	Japan	Investment	2,817	2,817	-	100.00	3,846	68	68	The Company as the ultimate parent company
Skill Develop International Limited	Well Asia Investment Limited	Hong Kong	Investment	277,817	277,817	9,200,000	100.00	5,108,978	83,684	83,684	The Company as the ultimate parent company
Smarter Capital Limited	Buynow SZ. Corporation	Samoa	Investment	452,081	452,081	14,900,000	100.00	964,494	11,705	11,705	The Company as the ultimate parent company
Buynow On-Line Holding Corporation	Buynow On-Line Limited	Hong Kong	Investment	35,483	35,483	1,100,000	100.00	7,782) (	2,130) (	2,130) (	The Company as the ultimate parent company

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.

Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:

• (1)The columns of ‘Investee’, ‘Location’, ‘Main business activities’, Initial investment amount’ and ‘Shares held as at September 30, 2019’ should fill orderly in the Company’s

• (public company’s) information on investees and every directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column..

• (2)The ‘Net profit (loss) of the investee for the nine-month period ended September 30, 2019’ column should fill in amount of net profit (loss) of the investee for this period.

• (3)The ‘Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2019’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised

investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Note 3: Prepaid long-term investment funds is included.

Table 9 Page 5

CLEVO CO. and Subsidiaries Information on investments in Mainland China Nine-month period ended September 30, 2019

Table 10

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2019	Net income of investee for the nine- month period ended September 30, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine- month period ended September 30, 2019 （Note 2）	Book value of investments in Mainland China as of September 30, 2019	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Buynow (Chengdu) Electronic Information Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products, and property management of buildings	278,468 $	2	278,468 $	- $	- $	278,468 $	58,054 $	100	58,054 $	3,492,233 $	- $	-
Buynow (Nanjing) Facility Leasing And Management Co., Ltd.	Manufacturing, sale, research and development of computers and computer peripherals and services for related electronic products	58,159	2	37,522	-	-	37,522	34,863	100	34,863	1,951,834	-	-
Kalor Buynow (Heifei) Electronic Information Co., Ltd.	Manufacturing, sale, research and development of computers and computer peripherals and services for related electronics products	69,491	2	-	-	-	-	50,177	100	50,177	2,119,185	-	-
Kapok Computer (Kunshan) Co., Ltd.	Manufacturing, sale, research and development and maintenance service of computer, notebook, tablet, information and communication products and computer components	238,599	2	238,599	-	-	238,599	60,843	100	60,843	1,254,326	-	-
Kunshan Kaiming Trading Co., Ltd.	Provide market management services for operators of laptop computer, tablet, desktop computer, palmtop computer, information and communication products and computer components	17,746	3	-	-	-	-	889	100	889	2,144	-	-

Table 10 Page 1

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2019	Net income of investee for the nine- month period ended September 30, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine- month period ended September 30, 2019 （Note 2）	Book value of investments in Mainland China as of September 30, 2019	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Chicony Industry (Wuhan) Co., Ltd.	Development, production and sales of computer software and hardware, electronic products; sales services, non- staple food; coffee shop operations; venue rental	1,927,049 $	2 CHICONY SQUARE (WUHAN) INC.	526,552 $	- $	- $	526,552 $	297,169 $	30	89,151 $	1,103,226 $	- $	-
Wuhan Qunbai Industry Co., Ltd.	Development and sales of computer software, hardware and electronic products; sales services	58,904	3	-	-	-	-	36,682	30	11,005	634,703	-	-
Chicony Square (Wuhan) Management Co., Ltd.	Sales of service and non-staple food; cafe operation; venue rental	14,414	3	-	-	-	-	7,649	24.99	1,911	28,854	-	-
Qunguang Industrial (Xi'An) Co., Ltd.	Development of computer software and hardware, electronic products	4,053,756	3	-	-	-	-	209,413) (	30	62,824) (	697,324	-	-
Buynow Electronic Information (Hangzhou) Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products, and property management of buildings	198,848	2	198,848	-	-	198,848	76,823	100	76,823	3,208,337	-	-
Shanghai Buynow Electronic Information Co., Ltd.	Rental of the display venues of computer and related electronic products; information consultation; maintenance services; property management	521,418	2.3	56,778	-	-	56,778	7,325) (	100	7,325) (	2,909,102	-	-
Quality Trust Property Management Co., Ltd.	Property management, advisory of real estate, building leasing, housekeeping service, parking lot service, car wash service and business service	24,975	2	21,645	-	-	21,645	17,226	100	17,226	205,580	-	-
Wuxi Quntai Property Management Co., Ltd.	Property management, advisory of real estate, building leasing, housekeeping service, parking lot service, car wash service and business service	2,402	3	-	-	-	-	4,091	100	4,091	23,194	-	-

Table 10 Page 2

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2019	Net income of investee for the nine- month period ended September 30, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine- month period ended September 30, 2019 （Note 2）	Book value of investments in Mainland China as of September 30, 2019	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Shanghai Buynow Electronic Products Market Management Co., Ltd.	Provide market management services for operators of electronic products	504,484 $	3	- $	- $	- $	- $	48,775 $	100	48,775 $	4,586,078 $	- $	-
Beijing Kaiye Electronic Technology Co., Ltd.	Technology-extension services, computer maintenance, public parking lot service for motorcycle, property management, business management and advisory, business building leasing, wholesale of computer and computer peripherals, hardware electronic and daily appliance	231,961	3	-	-	-	-	15,612) (	100	15,612) (	315,131) (	-	-
Buynow (Nanchang) Industry Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products, and property management of buildings	119,297	3	119,297	-	-	119,297	945,822	100	945,822	2,897,938	-	-
Changsha Hungyu Business Management Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products, and property management of buildings	119,297	2	119,297	-	-	119,297	6,201	100	6,201	227,385	-	-
Buynow (Zhengzhou) Electronic Information Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products	119,123	2	119,123	-	-	119,123	65,024	100	65,024	3,110,663	-	-
Buynow (Guangzhou) Electronic Information Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products	198,670	2	198,670	-	-	198,670	21,375	100	21,375	2,306,204	-	-

Table 10 Page 3

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2019	Net income of investee for the nine- month period ended September 30, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine- month period ended September 30, 2019 （Note 2）	Book value of investments in Mainland China as of September 30, 2019	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Tianjin Buynow Electronic Information Co., Ltd.	Development, producttion and sales of computer hardware and software and electronic digital technology products	224,794 $	2	206,061 $	- $	- $	206,061 $	15,349 $	100	15,349 $	2,327,609 $	- $	-
Beijing Clevo Investment Management Consultant Co., Ltd.	Business advisory of investment management, wholesale agency of electronic products, import and export of goods and property management	305,459	2	314,567	-	-	314,567	50,759	100	50,759	2,238,221	-	-
Buynow (Yancheng) Electronoc Information Technology Development Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products, and advisory of business management	942,511	2	942,511	-	-	942,511	3) (	100	3) (	742,933	-	-
Buynow (Xian) Industry Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products	116,528	2	116,528	-	-	116,528	17,244	100	17,244	766,478	-	-
Buynow (Fujian) Electronic Technology Development Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products	119,117	2	119,117	-	-	119,117	16,752	100	16,752	1,844,099	-	-
Chicony Dalu Enterprise (Chengdu) Co., Ltd.	Developing and manufacturing computers, hardware, electronic products; production and sales of cosmetics and daily necessities; rental business	2,291,275	2 CHICONY CHENGDU INTERNATIONA L INC.	687,382	-	-	687,382	57,333	30	17,200	293,608	-	-
Buynow Electronic Information (Shenyang) Co., Ltd.	Research and development of computers and computer peripherals and electronic products, and advisory of economic information	119,298	2	119,298	-	-	119,298	33,484	100	33,484	2,423,555	-	-
Guangdong Buynow Real Estate Management Co., Ltd.	Self-owned property management and leasing. manufacturing, sale, research and development of computer software and hardware and digital products	442,167	2.3	363,300	-	-	363,300	128,815	100	128,815	7,858,716	-	-

Table 10 Page 4

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2019	Net income of investee for the nine- month period ended September 30, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine- month period ended September 30, 2019 （Note 2）	Book value of investments in Mainland China as of September 30, 2019	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Buynow (Changchun) Industry Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products, and property management of buildings	81,539 $	2	77,656 $	- $	- $	77,656 $	86,293 $	100	86,293 $	2,946,039 $	- $	-
Buynow (Wuhan) Industry Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computer software and digital products, and property management of buildings	468,580	2 BUYNOW (WUHAN) CORPORATION	-	-	-	-	127,317) (	30	38,195) (	229,908	-	-
Qingdao Buynow Technology Industry Co., Ltd.	Manufacturing, sale, research and development of computers and computer peripherals. Display, advisory and after- sales service of digital products. Property management of self-owned buildings	551,402	2.3	133,021	-	-	133,021	6,085	100	6,085	563,250	-	-
Buynow (Wuxi) Electronic Technology Development Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computer software and digital products	106,622	2	76,158	-	-	76,158	40,901	100	40,901	1,704,786	-	-
Wuxi Buynow Electronic Market Co., Ltd.	Leasing of facility, market management service, catering management, property management, parking lot management	2,454	3	-	-	-	-	15	100	15	2,358	-	-
Buynow (Harbin) Industry Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products	111,364	2	111,364	-	-	111,364	84,382) (	100	84,382) (	99,726	-	-
Buynow (Chongqing) Industry Co., Ltd.	Manufacturing, sale, research and development of computers and computer peripherals (not including electronic publishing), shopping mall management, wholesale and retail of electronic products, property management and parking lot service	164,167	2	164,167	-	-	164,167	7,515	100	7,515	1,077,773	-	-

Table 10 Page 5

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2019	Net income of investee for the nine- month period ended September 30, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine- month period ended September 30, 2019 （Note 2）	Book value of investments in Mainland China as of September 30, 2019	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Shanghai Buynow Online Information Technology Co., Ltd.	Wholesale and retail, import and export, and after-sales service of household appliances, computer and computer components, communication equipment, electrical devices, office supplies and complementary products; development, technology transfer, advisory, service and training of Internet, computer software and hardware and communication equipment	32,630 $	2	32,630 $	- $	- $	32,630 $	2,125) ($	100	2,125) ($	10,740) ($	- $	-
Daqing Buynow Electronic Information Co., Ltd.	Manufacturing, retail and wholesale of computers and computer peripherals, and electronic information shopping mall management	98,158	2	98,158	-	-	98,158	705) (	100	705) (	19,031) (	-	-
Buynow Electronic Information (Huizhou) Co., Ltd.	Manufacturing, sale, research and development and after-sales service of computers and computer peripherals; property management of buildings	120,115	2.3	211,996	-	-	211,996	7,242) (	100	7,242) (	150,070) (	-	-
Shantou Buynow Mall Co., Ltd.	Investment in companies primarily engaged in research and development and advisory service	574,562	2	574,562	-	-	574,562	335,936) (	100	335,936) (	587,367	-	-
Zibo Buynow Electronic Information Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products. Advisory of business management, leasing of self-owned buildings, parking lot management, shopping mall management and property management	98,012	2	98,012	-	-	98,012	17,017) (	100	17,017) (	63,482) (	-	-

Table 10 Page 6

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2019	Net income of investee for the nine- month period ended September 30, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine- month period ended September 30, 2019 （Note 2）	Book value of investments in Mainland China as of September 30, 2019	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Yingkou Buynow Electronic Information Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products, and advisory of business management	464,194 $	2	464,194 $	- $	- $	464,194 $	282) ($	100	282) ($	417,349 $	- $	-
Anshan Buynow Electronic Information Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products, and advisory of business management	1,150,017	2	1,150,017	-	-	1,150,017	71,600) (	100	71,600) (	1,145,051	-	-
Clevo (China) Investment Co., Ltd.	Investment in companies primarily engaged in research and development and advisory service	897,135	2	897,135	-	-	897,135	121,497) (	100	121,497) (	2,435,599	-	-
Guiyang Buynow Electronic Information Co., Ltd.	Research and development of computers and computer peripherals and electronic products, and advisory service of business management	303,271	2	303,271	-	-	303,271	783) ($	100	783) ($	262,661 $	-	-
Taizhou Buynow Electronic Information Co., Ltd.	Manufacturing, sale, maintenance service, research and development of computers and computer peripherals and digital products, and advisory of business management	507,871	2	507,871	-	-	507,871	16,907) (	100	16,907) (	299,306	-	-
Suzhou Jinzuo Industry Co., Ltd.	Business affairs and property management business	480,460	2	1,008,954	-	-	1,008,954	11,705	100	11,705	964,494	-	-
Suzhou Buynow Department Store Co., Ltd.	Wholesale and retail of daily goods, office supplies, shoes, hats and bags, household appliance, sporting goods, hardware electronic, watch and the first-class medical device	519	3	-	-	-	-	9) (	100	9) (	-	-	-

Table 10 Page 7

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2019	Net income of investee for the nine- month period ended September 30, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine- month period ended September 30, 2019 （Note 2）	Book value of investments in Mainland China as of September 30, 2019	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Dezhou Buynow Electronic Information Co., Ltd.	Research and development and maintenance service of computers and computer peripherals and electronic products; advisory service of business management and shopping mall management	881,914 $	2	881,914 $	- $	- $	881,914 $	331,220) ($	100	331,220) ($	425,361 $	- $	-
Luoyang Buynow Electronic Information Co., Ltd.	Research and development and maintenance service of computers and computer peripherals and electronic products.; advisory service of business management and shopping mall management	893,922	2	893,922	-	-	893,922	284,518) (	100	284,518) (	248,861	-	-
Quanzhou Buynow Industry Co., Ltd.	Research and development and maintenance service of computers and computer peripherals and electronic products; advisory service of business management and shopping mall management	446,195	2	446,195	-	-	446,195	2,028	100	2,028	463,327	-	-
Buynow (Jinzhou) Industry Co., Ltd.	Manufacturing of computer software and hardware and consumer electronic products, advisory of business management and shopping mall management	448,342	2	448,342	-	-	448,342	72,779) (	100	72,779) (	342,711	-	-
Kunshan Kaishuo Trading Co., Ltd.	Mechanical equipment and accessories, wire and cable, air conditioning equipment, building and decoration material, lighting equipment, kitchen appliance, water cleaner, pipeline and accessories, fire safety equipment, compressor and accessories, wholesale of elevators and appliances, import and export and advisory services	30,198	2	30,198	-	-	30,198	1,894) (	100	1,894) (	25,906	-	-

Table 10 Page 8

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30, 2019	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2019	Net income of investee for the nine- month period ended September 30, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine- month period ended September 30, 2019 （Note 2）	Book value of investments in Mainland China as of September 30, 2019	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Shanghai Huihei Advertisment Co., Ltd.	Advertising design and marketing	4,850 $	3	- $	- $	- $	- $	1,145) ($	100	1,145) ($	4,363 $	- $	-
Shanghai Huizhuan Restaurant Management Co., Ltd.	Catering business management	22,884	3	-	-	-	-	877) (	100	877) (	13,905) (	-	-
Xiamen Lejing Internet Bar Co., Ltd.	Internet café and internet message service	465	3	-	-	-	-	253) (	100	253) (	3,974) (	-	-

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

• (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.

• (3) Others

• Note 2: In the ‘Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2019 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 that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.

• B.The financial statements that are 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.

Table 10 Page 9

					Ceiling on
					investments in
					Mainland China
	Accumulated amount of		Investment amount approved by the		imposed by the
	remittance from Taiwan to			Investment Commission of the	Investment
		Mainland China as of		Ministry of Economic Affairs	Commission of
Companyname		September 30,2019		(MOEA)	MOEA
CLEVO CO.	$	13,393,300	$	15,200,249	24,506,870 $
(USD	421,680 thousand of USD)		(USD 466,227 thousand of USD)

• Note 1: According to the amended regulation, "The Principle of Investment and Technical Cooperation in Chin", issued by Ministry of Economic Affairs on August 29, 2008 (No. 09704604680), the investor can only make an investment toward China up to 60% of its individual or consolidated net worth, whichever is larger. The ultimate limit of investment is 60% of the consolidated net worth. (40,844,783 x 60% = 24,506,870)

• Note 2: It has been liquidated as of September 30, 2019, and has been approved to invest US$4,120,000 by the Ministry of Economic Affairs.

• Note 3: As of September 30, 2019, the capital increased by the earnings extension has been approved by the Ministry of Economic Affairs for an investment of US$9,750,000.

• Note 4: Guiyang Buynow Electronic Information Co., Ltd. has been approved by the Ministry of Economic Affairs for

• an investment of US$10,000,000. However, it remains unremitted until September 30, 2019.

Table 10 Page 10