CMC - Interim / Quarterly Report 2021

China Motor Corporation and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 30, 2021 and 2020 and Independent Auditors’ Review Report

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders China Motor Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of China Motor Corporation and its subsidiaries (collectively, the “Group”) as of September 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit 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

The financial statements of some non-significant subsidiaries included in the consolidated financial statements were not reviewed. As of September 30, 2021 and 2020, combined total assets of these non-significant subsidiaries were NT$8,558,181 thousand and NT$8,657,759 thousand, respectively, representing 16% and 17%, respectively, of the consolidated total assets, and combined total liabilities of these non-significant subsidiaries were NT$3,010,955 thousand and NT$2,612,824 thousand, respectively, representing 37% and 33%, respectively, of the consolidated total liabilities; for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, the amounts of combined comprehensive loss of these non-significant subsidiaries were NT$84,910 thousand, NT$39,211 thousand, NT$148,815 thousand and NT$130,376 thousand, respectively, representing 11%, 3%, 4%, and 5%, respectively, of the consolidated total comprehensive income. As disclosed in Note 15 to the consolidated financial statements, as of September 30, 2021 and 2020, some investments accounted for using the equity method were NT$14,292,080 thousand and NT$13,888,901 thousand, respectively, and for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30,

2021 and 2020, the comprehensive income of these equity-method investments were NT$391,844 thousand, NT$395,285 thousand, NT$1,402,333 thousand and NT$698,279 thousand, respectively, which were calculated on the basis of financial statements that have not been reviewed.

Qualified Conclusion

Based on our reviews, except for adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries, the investments accounted for using the equity method and the relevant information as described in the preceding paragraph been reviewed, nothing has come to our attention that caused 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 of September 30, 2021 and 2020, its consolidated financial performance for the three months ended September 30, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Ya-Ling Wong and Shiow-Ming Shue.

Deloitte & Touche Taipei, Taiwan Republic of China

November 11, 2021

Notice to Readers

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

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

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss (Note 7) Financial assets at amortized cost (Notes 9, 10 and 32) Financial assets for hedging (Note 11) Notes and accounts receivable, net (Note 12) Trade receivables from related parties (Note 31) Other receivables Inventories (Note 13) Prepayments (Note 31) Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss (Note 7) Financial assets at fair value through other comprehensive income (Note 8) Financial assets at amortized cost (Notes 9 and 10) Investments accounted for using the equity method (Note 15) Property, plant and equipment (Notes 16, 31 and 32) Right-of-use assets (Note 17) Investment properties (Notes 18 and 32) Intangible assets under development Deferred tax assets Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 19) Short-term bills payable Notes and accounts payable Trade payables to related parties (Note 31) Other payables (Note 20) Current tax liabilities (Note 4) Provisions (Notes 4 and 21) Lease liabilities (Note 17) Current portion of long-term borrowings (Note 19) Other current liabilities (Notes 7, 11, 31 and 33) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Note 19) Deferred tax liabilities Lease liabilities (Note 17) Net defined benefit liabilities (Note 4) Other non-current liabilities Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Notes 15 and 23) Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain on investments in financial assets at fair value through other comprehensive income Gain (loss) on hedging instruments (Note 11) Total other equity Total equity attributable to owners of the Corporation NON-CONTROLLING INTERESTS (Note 14) Total equity TOTAL		September 30, 2021 (Reviewed) Amount % $ 11,188,705 21 258,061 - 469,759 1 88,701 - 593,366 1 1,552,767 3 62,421 - 3,573,660 7 576,020 1 262,245 1 18,625,705 35 713,379 1 147,495 - 688,486 1 24,192,902 45 6,239,776 12 399,970 1 1,348,336 3 390,050 1 335,614 1 255,652 - 34,711,660 65 $ 53,337,365 100 $ 140,000 - 109,965 - 1,797,586 4 643,827 1 2,719,441 5 418,759 1 128,683 - 86,640 - - - 532,423 1 6,577,324 12 68,750 - 560,309 1 323,862 1 616,635 1 53,849 - 1,623,405 3 8,200,729 15 5,536,203 10 6,413,525 12 9,581,001 18 1,028,359 2 19,618,021 37 30,227,381 57 (930,032) (2) 345,066 1 (19,658) - (604,624) (1) 41,572,485 78 3,564,151 7 45,136,636 85 $ 53,337,365 100		December 31, 2020 (Audited) Amount % $ 10,403,769 19 1,059,429 2 366,456 1 120,266 - 914,273 2 1,267,478 2 46,490 - 3,809,653 7 1,728,436 3 662,614 1 20,378,864 37 672,914 1 178,873 - 540,716 1 23,632,945 43 6,527,229 12 356,732 1 1,355,015 2 373,697 1 307,145 1 273,563 1 34,218,829 63 $ 54,597,693 100 $ 215,000 - 149,963 - 2,586,431 5 907,237 2 2,641,821 5 284,692 - - - 87,196 - 37,500 - 362,403 1 7,272,243 13 56,250 - 578,310 1 277,908 1 651,430 1 54,908 - 1,618,806 3 8,891,049 16 5,536,203 10 6,411,778 12 9,257,157 17 1,028,359 2 20,544,970 37 30,830,486 56 (926,661) (2) 264,666 1 6,918 - (655,077) (1) 42,123,390 77 3,583,254 7 45,706,644 84 $ 54,597,693 100		September 30, 2020 (Reviewed)
						Amount % $ 8,580,890 16 1,290,067 3 331,294 1 83,477 - 1,046,745 2 1,690,885 3 120,077 - 3,312,940 6 1,443,920 3 767,811 2 18,668,106 36 661,001 1 204,356 - 665,732 1 23,131,725 44 6,499,877 12 376,178 1 1,357,774 3 346,708 1 280,884 1 262,881 - 33,787,116 64 $ 52,455,222 100 $ 245,000 - 189,930 - 2,203,369 4 733,994 1 2,369,200 5 300,927 1 - - 87,773 - 31,250 - 280,925 1 6,442,368 12 68,750 - 464,433 1 296,768 1 621,961 1 51,521 - 1,503,433 3 7,945,801 15 5,536,203 11 6,411,869 12 9,257,157 17 1,028,359 2 19,766,913 38 30,052,429 57 (1,101,344) (2) 160,876 - 4,287 - (936,181) (2) 41,064,320 78 3,445,101 7 44,509,421 85 $ 52,455,222 100

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

(With Deloitte & Touche review report dated November 11, 2021)

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

OPERATING REVENUE (Notes 24 and 31) Net sales Other operating revenue Total operating revenue OPERATING COSTS (Notes 13, 22, 25 and 31) Cost of goods sold Other operating costs Total operating costs GROSS PROFIT REALIZED (UNREALIZED) GAIN ON TRANSACTIONS WITH ASSOCIATES REALIZED GROSS PROFIT OPERATING EXPENSES (Notes 22, 25 and 31) Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Share of profit of associates and joint ventures (Note 15) Interest income Other income Gain (loss) on financial instruments at fair value through profit or loss Expected credit gain (loss) (Notes 10 and 25) Interest expense Other expense Gain (loss) on disposal of investments (Notes 15 and 25)		For the Three Months EndedSeptember 30	For the Three Months EndedSeptember 30	For the Three Months EndedSeptember 30		For the Nine Months	EndedSeptember 30	EndedSeptember 30
		2021		2020		2021		2020
		Amount % $ 8,237,371 97 276,622 3 8,513,993 100 7,180,025 84 51,344 1 7,231,369 85 1,282,624 15 (7,249) - 1,275,375 15 272,877 3 205,066 3 420,447 5 898,390 11 376,985 4 652,026 8 24,458 - 30,344 1 10,448 - 10,799 - (1,621 ) - (4,437 ) - (100,688 ) (1 )		Amount % $ 7,702,722 95 386,233 5 8,088,955 100 6,566,074 81 42,239 1 6,608,313 82 1,480,642 18 13,920 - 1,494,562 18 405,299 5 209,925 2 377,235 5 992,459 12 502,103 6 476,028 6 21,864 - 34,936 1 (2,197 ) - (1,772 ) - (3,675 ) - (1,610 ) - (82 ) -		Amount % $ 23,619,645 96 1,089,695 4 24,709,340 100 19,968,682 81 142,051 - 20,110,733 81 4,598,607 19 (27,680) - 4,570,927 19 1,058,508 4 668,782 3 956,793 4 2,684,083 11 1,886,844 8 2,061,992 8 75,693 - 103,257 1 31,365 - 35,974 - (5,278 ) - (8,115 ) - (100,688 ) -		Amount % $ 21,834,169 95 1,032,839 5 22,867,008 100 18,624,652 81 108,920 1 18,733,572 82 4,133,436 18 (16,728) - 4,116,708 18 976,986 4 613,723 3 1,130,358 5 2,721,067 12 1,395,641 6 1,195,583 5 65,270 - 92,615 - (21,410 ) - (63,394 ) - (13,267 ) - (8,133 ) - 224,539 1 (Continued)

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

Net foreign exchange gain (loss) Impairment loss (Notes 16 and 25) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 26) NET PROFIT FOR THE PERIOD OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Unrealized gain (loss) on investment in equity instruments at fair value through other comprehensive income (Note 23) Gain (loss) on hedging instruments (Notes 11 and 23) Share of other comprehensive income (loss) of associates accounted for using the equity method (Notes 15 and 23) Income tax relating to items that will not be reclassified subsequently to profit or loss (Notes 4 and 26)		For the Three Months EndedSeptember 30	For the Three Months EndedSeptember 30	For the Three Months EndedSeptember 30		For the Nine Months	EndedSeptember 30	EndedSeptember 30
		2021		2020		2021		2020
		Amount % $ (2,099 ) - (146,822) (2) 472,408 6 849,393 10 137,985 2 711,408 8 (6,013 ) - (1,848 ) - (23,056 ) - 449 -		Amount % $ 20,695 - - - 544,187 7 1,046,290 13 12,358 - 1,033,932 13 2,525 - 6,198 - 7,501 - (707 ) -		Amount % $ (20,684 ) - (146,851) (1) 2,026,665 8 3,913,509 16 540,865 2 3,372,644 14 (13,010 ) - (31,195 ) - 132,077 - 4,702 -		Amount % $ (17,843 ) - (94,529) - 1,359,431 6 2,755,072 12 122,460 - 2,632,612 12 (2,716 ) - 11,483 - (48,171 ) - (683 ) - (Continued)

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

For the Three Months EndedSeptember 30	For the Three Months EndedSeptember 30	For the Nine Months	EndedSeptember 30
2021	2020	2021	2020
Amount % $ (615 ) - 77,505 1 46,422 1 $ 757,830 9 $ 680,994 8 30,414 - $ 711,408 8 $ 729,329 9 28,501 - $ 757,830 9 $ 1.25 $ 1.25	Amount % $ 17,793 - 158,543 2 191,853 2 $ 1,225,785 15 $ 943,229 12 90,703 1 $ 1,033,932 13 $ 1,094,595 13 131,190 2 $ 1,225,785 15 $ 1.73 $ 1.73	Amount % $ (13,236 ) - (26,099) - 53,239 - $ 3,425,883 14 $ 3,218,610 13 154,034 1 $ 3,372,644 14 $ 3,307,813 13 118,070 1 $ 3,425,883 14 $ 5.90 $ 5.89	Amount % $ 4,522 - (125,543) (1) (161,108) (1) $ 2,471,504 11 $ 2,465,401 11 167,211 1 $ 2,632,612 12 $ 2,322,591 10 148,913 1 $ 2,471,504 11 $ 4.52 $ 4.52

$	$	$	$
$	$	$	$
$	$	$	$
$	$	$	$
$	$	$	$

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

(With Deloitte & Touche review report dated November 11, 2021)

(Concluded)

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

		Equity Attributable to Owners of the	Corporation
Ordinary Sh	ares Amount Capital Surplus $ 5,536,203 $ 6,414,118 - - - (2,249 ) - - - - - - - - - - - - $ 5,536,203 $ 6,411,869 $ 5,536,203 $ 6,411,778 - - - - - 1,747 - - - - - - - - - - - - - - $ 5,536,203 $ 6,413,525	Retained Earnings Legal Reserve Special Reserve Unappropriated Earnings $ 9,257,157 $ 1,029,654 $ 17,306,526 - (1,295 ) 1,295 - - (7,532 ) - - - - - 2,465,401 - - 304 - - 2,465,705 - - 919 - - - $ 9,257,157 $ 1,028,359 $ 19,766,913 $ 9,257,157 $ 1,028,359 $ 20,544,970 323,844 - (323,844 ) - - (3,875,342 ) - - (2,775 ) - - - - - 3,218,610 - - 1,128 - - 3,219,738 - - 24,856 - - 30,418 - - - $ 9,581,001 $ 1,028,359 $ 19,618,021	Other Equity Exchange Differences on Translating the Financial Unrealized Gain on Financial Assets at Fair Value Equity Directly Associated With Statements of Through Other Gain (Loss) on Non-current Foreign Operations Comprehensive Income Hedging Instruments Assets Held for Sale $ (990,653 ) $ 216,562 $ (19,968 ) $ (7,538 ) - - - - - - - - - - - - - - - - (110,691) (54,767) 14,806 7,538 (110,691) (54,767) 14,806 7,538 - (919 ) - - - - 9,449 - $ (1,101,344) $ 160,876 $ 4,287 $ - $ (926,661 ) $ 264,666 $ 6,918 $ - - - - - - - - - - - - - - - - - - - - - (3,371) 135,674 (44,228) - (3,371) 135,674 (44,228) - - (24,856 ) - - - (30,418 ) - - - - 17,652 - $ (930,032) $ 345,066 $ (19,658) $ -
			Exchange Differences on Translating the Financial Unrealized Gain on Financial Assets at Fair Value Statements of Through Other Foreign Operations Comprehensive Income $ (990,653 ) $ 216,562 - - - - - - - - (110,691) (54,767) (110,691) (54,767) - (919 ) - - $ (1,101,344) $ 160,876 $ (926,661 ) $ 264,666 - - - - - - - - - - (3,371) 135,674 (3,371) 135,674 - (24,856 ) - (30,418 ) - - $ (930,032) $ 345,066
Number of Shares (In Thousands) 553,620 - - - - - - - - 553,620 553,620 - - - - - - - - - - 553,620

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

(With Deloitte & Touche review report dated November 11, 2021)

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss (gain) recognized Net loss (gain) on fair value change of financial instruments at fair value through profit or loss Interest expenses Interest income Dividend income Share of profit of associates and joint ventures Net loss on disposal of property, plant and equipment Loss (gain) on disposal of investments Impairment loss of non-financial assets Unrealized gain on transactions with associates Unrealized gain on foreign currency exchange Gain on lease modifications Losses on recognition of provisions Changes in operating assets and liabilities Financial instruments at fair value through profit or loss Notes and accounts receivable Trade receivables from related parties Other receivables Inventories Prepayments Other current assets Notes and accounts payable Trade payables to related parties Other payables Other current liabilities Net defined benefit liabilities Cash generated from operations Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Disposal of financial assets at fair value through other comprehensive income Proceeds from refund of shares of financial assets at fair value through other comprehensive income		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 3,913,509 607,959 66,189 (38,800) (31,365) 5,278 (75,693) (17,218) (2,061,992) 2,357 100,688 216,096 27,680 (25,997) - 128,683 792,631 323,784 (285,382) (16,594) 186,691 1,143,335 400,363 (787,847) (263,656) 102,110 167,329 (34,795) 4,545,343 (441,318) 4,104,025 18,368 -	2020 $ 2,755,072 639,797 94,298 59,198 21,410 13,267 (65,270) (15,240) (1,195,583) 2,070 (224,539) 72,961 16,728 (41,086) (1,826) - (948,093) 147,789 (244,782) (39,872) 1,337,053 126,215 (101,880) (498,760) (251,106) (41,530) 52,286 (113,439) 1,555,138 (206,597) 1,348,541 - 404 (Continued)

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

Acquisition of financial assets at amortized cost Proceeds from repayment of principal of financial assets at amortized cost Acquisition of investments accounted for using the equity method Disposal of subsidiary Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Acquisition of disposal of investment properties Decrease (increase) in other non-current assets Interest received Dividends received Net cash generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Increase (decrease) in short-term bills payable Proceeds from long-term borrowings Repayment of long-term borrowings Repayment of the principal portion of lease liabilities Increase (decrease) in other non-current liabilities Cash dividends paid Interest paid Non-controlling interests Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ (1,896,812) 1,645,478 (24,500) - (460,443) 35,471 (49,664) (1,600) 16,566 80,422 1,520,335 883,621 (75,000) (39,998) - (25,000) (56,619) (970) (3,875,342) (5,265) (137,173) (4,215,367) (14,605) 757,674 10,519,610 $ 11,277,284	2020 $ (1,751,919) 1,799,993 - (2,196) (664,073) 22,116 (17,757) - (6,059) 69,341 1,481,659 931,509 (370,000) 5,991 50,000 - (69,093) 29,384 - (13,427) (126,690) (493,835) (2,338) 1,783,877 6,880,490 $ 8,664,367 (Continued)

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

Reconciliation of the amounts in the consolidated statements of cash flows with the equivalent items reported in the consolidated balance sheets at September 30, 2021 and 2020:

Cash and cash equivalents in the consolidated balance sheets Cash and cash equivalents included in financial assets for hedging Cash and cash equivalents in the consolidated statements of cash flows		September 30	September 30
		2021 $ 11,188,705 88,579 $ 11,277,284	2020 $ 8,580,890 83,477 $ 8,664,367

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

(With Deloitte & Touche review report dated November 11, 2021) (Concluded)

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CHINA MOTOR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

1. GENERAL INFORMATION

China Motor Corporation (the “Corporation”) is principally engaged in the manufacture and sale of automobiles and its related parts and components, and is listed on the Taiwan Stock Exchange.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements of the Corporation and its subsidiaries (collectively referred to as the “Group”) were approved by the Corporation’s board of directors on November 9, 2021.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC) did not have any material impact on the Group’s accounting policies.
b. The IFRSs endorsed by the FSC for application starting from 2022

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

Note 1: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
Note 2: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
Note 3: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.
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As of the date the consolidated financial statements were issued, the Group assessed that the application of the aforementioned standards and interpretations will not have a significant impact on the Group’s financial position and financial performance.

c. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

Effective Date New IFRSs Announced by IASB (Note 1)

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2023 Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” January 1, 2023 (Note 2) Amendments to IAS 8 “Definition of Accounting Estimates” January 1, 2023 (Note 3) Amendments to IAS 12 “Deferred Tax related to Assets and January 1, 2023 (Note 4) Liabilities arising from a Single Transaction”

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 4: Except for deferred taxes that will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.

As of the date the consolidated financial statements were issued, the Group is continuously assessing the possible impact that the application of the aforementioned standards and interpretations will have on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

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b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
3) Level 3 inputs are unobservable inputs for the asset or liability.
c. Basis of consolidation
1) Principles for preparing the consolidated financial statements

The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (i.e. its subsidiaries).

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective date of acquisition up to the effective date of disposal, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Corporation.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation.

Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Corporation.

When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Group directly disposed of the related assets or liabilities.

13 -

2) Subsidiaries included in the consolidated financial statements

Investor
Investee
Main Business
China-Motor Corporation
(parent)
Kian Shen Corporation (“Kian Shen”)
Production of frame of heavy duty
car and mold
Hwa Wei Holdings Corporation Ltd.
(“Hwa Wei”)
Overseas investment in production
and service industries
China Engine Corporation (“China
Engine”)
Manufacture of automobile engine
and parts
Sino Diamond Motors Corporation (“Sino
Diamond Motors”)
Sales and providing after sales
service of vehicle
Alliance Investment & Management Co.,
Ltd. (“Alliance Investment &
Management”)
Investment
China Motor Investment Co., Ltd. (CMI)
Investment
Hwa Chung Motors Corporation (“Hwa
Chung Motors”)
Sales of vehicle and parts
COC Tooling & Stamping Co., Ltd. (COC) Production of mold, fixture and
gauge of vehicle
Kian Shen
Kian Shen Investment Co., Ltd. (“Kian
Shen Investment”)
Overseas investment in production
and service industries
China Engine
Advance Power Machinery Co., Ltd.
(“Advance Power Machinery”)
Manufacture of automobile engine
and parts
Advance Power Investment Co., Ltd.
(“Advance Power Investment”)
Investment and sales
Sino Diamond Motors
Hwa-Yu Corporation Ltd. (“Hwa-Yu”)
Overseas investment in production
and service industries
Brilliant Insight International Consultancy
Service Co., Ltd. (“Brilliant Insight
International”)
Consulting and servicing business
Alliance Investment &
Management
Greentrans Investment Co., Ltd.
(“Greentrans Investment”)
Investment
Hwa Chung Motors
Greentrans Corporation (“Greentrans”)
Sales of motorcycle, bicycle and
parts
Ling Wei Motor Co., Ltd. (“Ling Wei”)
Sales of second-hand vehicle
COC
Y. M. Hi-Tech Industry Ltd. (“Y. M.
Hi-Tech”)
Steel cutting
Shye Shinn Corporation (“Shye Shinn”)
Investment
Kian Shen Investment
Kian Shen Investment Hong Kong Co.,
Limited (KSIHK)
Investment
Hwa-Yu
Hwa-Lin Investments Ltd. (“Hwa-Lin”)
Overseas investment in production
and service industries
Fujian Rui Hua Consulting Co., Ltd.
(“Fujian Rui Hua”)
Consulting and servicing business
Greentrans Investment
Jiangsu Greentrans Automotive Parts Co.,
Ltd. (“Jiangsu Greentrans”)
Production and sales of parts of
electronic motorcycle
Hwa-Lin
Dongguan Huayi Motor Maintenance Co.,
Ltd. (“Dongguan Huayi”)
Sales and maintenance of vehicle
and parts
Tianjin Hwarui Maintenance Co., Ltd.
(“Tianjin Hwarui”)
Sales and maintenance of vehicle
and parts
Sichuan Huafeng Hanwei Cars Service and
Maintenance Co., Ltd. (“Sichuan
Huafeng Hanwei”)
Sales and maintenance of vehicle
and parts
Guangzhou Huayou Motor Maintenance
Co., Ltd. (“Guangzhou Huayou Motor
Maintenance”)
Sales and maintenance of vehicle
and parts
Dongguan Huayi
Dongguan Huashun Motor Sales Co., Ltd.
(“Dongguan Huashun”)
Sales and maintenance of vehicle
and parts
Tianjin Hwarui
Tianjin Hwahong Sales Co., Ltd. (“Tianjin
Hwahong”)
Sales of vehicle and parts
Guangzhou Huayou
Motor Maintenance
Guangzhou Huayou Motor Sales Co., Ltd.
(“Guangzhou Huayou Motor Sales”)
Sales of vehicle and parts

Combined Shareholding Ratio (%)
September 30,
2021
December 31,
2020
September 30,
2020
Note
43.87
43.87
43.87
a)
100.00
100.00
100.00
52.10
52.10
52.10
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
49.76
49.76
49.76
b)
43.87
43.87
43.87
a)
-
-
-
e)
52.10
52.10
52.10
g)
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
42.30
42.30
42.30
b)
-
-
49.76
b) and d)
43.87
43.87
43.87
a)
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
f)
100.00
100.00
100.00
h)
-
-
-
c)
-
-
100.00
c)
100.00
100.00
100.00
f)
100.00
100.00
100.00
h)
-
-
-
c)

a) The Group held 43.87% equity interest in Kian Shen. Kian Shen is a listed company and 56.13% of its shares were held by numerous shareholders unrelated to the Group. Owning to the Group’s substantial influence on Kian Shen, an absolute number of voting rights and the relative size of other shareholdings, Kian Shen was deemed a subsidiary.
b) The Group held 49.76% equity in COC. However, since the Corporation controls more than half of the board members and holds relative majority of shares, COC was considered a subsidiary.
c) On November 2018, Sichuan Huafeng Hanwei, Guangzhou Huayou Motor Sales and Guangzhou Huayou Motor Maintenance resolved to dissolve their respective companies and the annulment was completed in February, June and December 2020, respectively.
d) In May 2020, the board of directors of COC resolved to dissolve Shye Shinn. The annulment of Shye Shinn had been completed in December 2020.
e) The Group’s board of directors approved to fully dispose of its interest held in its subsidiary, Advance Power Machinery, to Yulon on July 16, 2020. The disposal was completed on July 17, 2020, the date on which the control of Advance Power Machinery was transferred to the acquirer, refer to Note 28.
14 -
f) In December 2020, Dongguan Huayi and Dongguan Huashun resolved to dissolve their respective companies. As of September 30, 2021, the liquidation had not been completed.
g) The Group’s board of directors resolved to dissolve Advance Power Machinery on December 10, 2020. As of September 30, 2021, the liquidation had not been completed.
h) In July 2021, Tianjin Hwarui and Tianjin Hwahong resolved to dissolve their respective companies. As of September 30, 2021, the liquidation had not been completed.

For the relationships between the Corporation and its controlled entities as of September 30, 2021, refer to Table 10.

All the subsidiaries listed above are non-significant subsidiaries. Except for Kian Shen, their financial statements have not been reviewed.

d. Other significant accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2020.

1) Employee benefits

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

2) Taxation

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

3) Onerous contracts

Onerous contracts are those in which the Group’s unavoidable costs of meeting the contractual obligations exceed the economic benefits expected to be received from the contract. The present obligations arising under onerous contracts are recognized and measured as provisions.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The Group considers the recent development of the COVID-19 in Taiwan and its economic environment implications when making its critical accounting estimates in cash flow projections, growth rate, discount rate, profitability, etc. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

15 -

6. CASH AND CASH EQUIVALENTS

September 30,
2021
December 31,
2020
September 30,
2020
Cash
Cash on hand
$ 1,144 $ 1,338 $ 3,571
Checking accounts and demand deposits

5,042,369

3,473,411

1,614,783

5,043,513

3,474,749

1,618,354
Cash equivalents
Time deposits
6,100,623
6,558,227
6,434,690
Repurchase agreements collateralized by bonds
44,569

370,793

527,846

6,145,192

6,929,020

6,962,536
$ 11,188,705
$ 10,403,769
$ 8,580,890
FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
September 30,
2021
December 31,
2020
September 30,
2020
Financial assets-current
Financial assets mandatorily classified as at
FVTPL
Non-derivative financial assets
Mutual funds
$ 256,557
$ 1,056,288
$ 1,289,872
Derivative financial assets (not under hedge
accounting)
Foreign exchange forward contracts

1,504

3,141

195
$ 258,061
$ 1,059,429
$ 1,290,067
Financial assets-non-current
Financial assets mandatorily classified as at
FVTPL
Non-derivative financial assets
Domestic unlisted shares
$ 713,379
$ 672,914
$ 661,001
Financial liabilities (included in other current
liabilities)
Financial liabilities held for trading
Derivative financial liabilities (not under hedge
accounting)
Foreign exchange forward contracts
$ 363
$ -
$ 724

16 -

At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

September 30, 2021

			Notional Amount
Transaction	Currency	Maturity Date	(In Thousands)
Buy	USD/NTD	2021.10.12-2021.11.29	USD13,000/NTD360,622
Sell	RMB/USD	2021.10.15-2021.11.29	RMB45,481/USD7,000
December 31, 2020
			Notional Amount
Transaction	Currency	Maturity Date	(In Thousands)
Buy	JPY/NTD	2021.02.25-2021.03.26	JPY300,000/NTD79,900
Sell	RMB/USD	2021.01.04-2021.01.29	RMB78,635/USD12,000
September 30, 2020
			Notional Amount
Transaction	Currency	Maturity Date	(In Thousands)
Buy	USD/NTD	2020.10.13-2020.10.16	USD4,000/NTD115,762
Sell	RMB/USD	2020.10.13-2020.10.16	RMB27,124/USD4,000

The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Investments in equity instruments at FVTOCI
Domestic investments
Listed shares	$	13,521	$	30,370	$	31,395
Unlisted shares		24,957		24,145		24,152
		38,478		54,515		55,547
Foreign investments
Unlisted shares		109,017		124,358		148,809
	$	147,495	$	178,873	$	204,356

These investments in equity instruments are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

17 -

9. FINANCIAL ASSETS AT AMORTIZED COST

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Current
Pledged deposits (Note 32)	$ 240,318		$ 180,486		$ 180,486
Principal guaranteed notes		175,791		136,540		94,383
Segregated foreign exchange deposit account for
offshore funds		54,160		50,017		56,831
		470,269		367,043		331,700
Less: Allowance for impairment loss		(510)		(587)		(406)
	$ 469,759		$ 366,456		$ 331,294
Non-current
Segregated foreign exchange deposit account for
offshore funds	$ 482,833		$ 434,841		$ 559,857
Bonds		200,028		100,000		100,000
Preference shares		9,900		9,900		9,900
		692,761		544,741		669,757
Less: Allowance for impairment loss		(4,275)		(4,025)		(4,025)
	$ 688,486		$ 540,716		$ 665,732

a. The rates of pledged deposits ranged from 0.65%-0.82%, 0.65%-1.03% and 0.65%-1.03% per annum as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.
b. The coupon rates of principal guaranteed notes ranged from 0.55%-2.60%, 0.52%-2.50% and 0.68%-2.30% per annum as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.
c. The National Taxation Bureau, Ministry of Finance had approved the repatriation of funds in accordance with “the Management, Utilization, and Taxation of Repatriated Offshore Funds Act” from February 2020. The funds after tax were deposited into the segregated foreign exchange deposit account. The deposit was restricted under the Act, except that a portion of the funds could be withdrawn and freely utilized or engaged in financial investments or substantive investments. The funds could be withdrawn over a period of three years and five years from the date of depositing them into the segregated foreign exchange deposit account. The rates of offshore funds ranged from 0.10%-2.50%, 0.10%-1.50% and 0.30%-2.20% per annum as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.
d. The coupon rates of bonds ranged from 0.47%-0.86%, 0.86% and 0.86% per annum as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.
e. The coupon rate of preference shares was 1.50% per annum as of September 30, 2021, December 31, 2020 and September 30, 2020.
f. Refer to Note 10 for information relating to the credit risk management and impairment.
18 -

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

Investments in debt instruments were classified as financial assets at amortized cost.

	September 30,	December 31,	December 31,	September 30,	September 30,
	2021		2020		2020
Gross carrying amount	$ 1,163,030	$	911,784	$	1,001,457
Less: Allowance for impairment loss	(4,785)		(4,612)		(4,431)
Amortized cost	$ 1,158,245	$	907,172	$	997,026

The Group invests only in debt instruments that are rated the equivalent of investment grade or higher and have low credit risk after impairment assessment. The credit rating information is supplied by independent rating agencies. The Group’s exposure and the external credit ratings are continuously monitored. The Group reviews changes in bond yields and other public information of debtors and makes an assessment whether there has been a significant increase in the credit risk since initial recognition.

In determining the expected credit losses for debt instrument investments, the Group considers the historical default rates of each credit rating supplied by external rating agencies, the current financial condition of debtors, and the future prospects of the industries. The Group’s current credit risk grading mechanism is as follows:

Credit Rating Performing No rating	Description The counterparty has a low risk of default and a strong capacity to meet contractual cash flows The preference shares and bonds do not have credit rating	Basis for Recognizing Expected Credit Losses (ECLs)
		12-month ECLs Lifetime ECLs - not credit impaired

The gross carrying amounts of debt instrument investments by credit category and the corresponding expected loss rates were as follows:

September 30, 2021

Expected Credit Credit Rating Loss Rate Performing 0.00%-0.29% No rating 39.9496% December 31, 2020 Expected Credit Credit Rating Loss Rate Performing 0.00%-0.43% No rating 39.9496%	Gross Carrying Amount
	At Amortized Cost $ 1,153,130 9,900 Gross Carrying Amount
	At Amortized Cost $ 901,884 9,900

19 -

September 30, 2020

Expected Credit Credit Rating Loss Rate Performing 0.00%-0.43% No rating 39.9496%	Gross Carrying Amount
	At Amortized Cost $ 991,557 9,900

The movements of the allowance for impairment loss of investments in debt instruments at amortized cost were as follows:

Balance at January 1, 2021 Financial assets purchased (a) Derecognition (b) Change in exchange rates or others Balance at September 30, 2021 Balance at January 1, 2020 Financial assets purchased (a) Derecognition (b) Change in exchange rates or others Balance at September 30, 2020	Credit Rating
	Performing (12-month ECLs) No rating (Lifetime ECLs - Not Credit- impaired) $ 657 $ 3,955 2,684 - (2,532) - 21 - $ 830 $ 3,955 $ 1,918 $ 32,952 4,063 3,955 (5,532) (32,952) 27 - $ 476 $ 3,955

a. During the nine months ended September 30, 2021, the Group purchased principal guaranteed notes in the amount of $846,116 thousand and bonds in the amount of $100,029 thousand, respectively, and correspondingly increased the loss allowance for investments rated as performing by $2,684 thousand; during the nine months ended September 30, 2020, the Group purchased principal guaranteed notes in the amount of $944,845 thousand and preference shares in the amount of $9,900 thousand, respectively, and correspondingly increased the loss allowance for investments rated as performing by $4,063 thousand and lifetime ECLs by $3,955 thousand.
b. Investments in principal guaranteed notes of $806,777 thousand, expired and were redeemed during the nine months ended September 30, 2021, with consequential reductions in the loss allowance for investments rated as performing of $2,532 thousand; and investments in principal guaranteed notes of $858,370 thousand, bonds of $750,224 thousand and preference shares of $9,900 thousand expired and were redeemed during the nine months ended September 30, 2020, with consequential reduction in the loss allowance for investments rated as performing of $5,532 thousand and lifetime ECLs of $32,952 thousand.
20 -

11. FINANCIAL INSTRUMENTS FOR HEDGING

	September 30,	September 30,	December 31,	December 31,	September	September	30,
		2021		2020		2020
Financial assets
Cash flow hedges - spot rate	$	88,579	$	115,841	$	83,477
Cash flow hedges - foreign exchange forward
contracts		122		4,425			-
	$	88,701	$	120,266	$	83,477
Financial liabilities (included in
other current liabilities)
Cash flow hedges - foreign exchange forward
contracts	$	2,490	$	79	$	800

The Group’s hedging strategy is to enter into foreign exchange forward contracts and to buy foreign currency banknotes at the spot rate to avoid exchange rate exposure from its foreign currency receipts and payments and to manage exchange rate exposure of its forecasted foreign currency denominated purchases. Those transactions are designated as cash flow hedges. Basis adjustments are made to the initial carrying amounts of non-financial hedged items when the anticipated purchases take place.

For the hedges of highly probable forecasted purchases, the critical terms (i.e., the notional amount, period and subject) of the foreign exchange forward contracts are corresponded to their hedged items. The Group performs a qualitative assessment and expects that the value of the foreign exchange forward contracts and the value of the corresponding hedged items will be systematically changed in the opposite direction in respond to movements in the underlying exchange rate.

The source of hedge ineffectiveness in these hedging relationships is the effect of the counterparty and the Group’s own credit risk on the fair value of the foreign exchange forward contracts and foreign currency banknote, which is not reflected in the fair value of the hedged item attributable to changes in foreign exchange rates. No other sources of ineffectiveness are expected to emerge from these hedging relationships. During the nine months ended September 30, 2021 and 2020, hedging instruments at fair value and transferred to the initial carrying amount of hedged items are detailed in Note 23(e).

The following tables summarize the information relating to the hedges of foreign currency risk:

September 30, 2021

Notional Amount Forward Rate Hedging Instrument Currency (In Thousands) Maturity (Note) Line Item Cash flow hedges Forecast purchases - spot rate JPY/NTD JPY335,740/NTD90,670 2021.11.19- 2021.12.29 0.2540-0.2570 Financial assets for hedging Forecast purchases - foreign exchange forward contracts USD/NTD USD1,000/NTD27,630 2021.11.29 27.6300 (USD1:NTD) Financial assets for hedging Forecast purchases - foreign exchange forward contracts JPY/NTD JPY1,250,000/NTD312,440 2021.10.15- 2022.1.14 0.2481-0.2537 Other current liabilities Forecast purchases - foreign exchange forward contracts RMB/USD RMB6,487/USD1,000 2021.11.29 6.4870 (USD1:RMB) Other current liabilities		Carrying A	mount Liabilities I $ - - (2,464 ) (26) $ (2,490)	Change in Value Used for Calculating Hedge neffectiveness $ (1,673 ) 97 (2,279 ) (20) $ (3,875)
		Assets $ 88,579 122 - - $ 88,701

Note: JPY1:NTD, unless stated otherwise.

21 -

		Accumulated
		Gains or Losses
	Change in	on Hedging
	Value Used for	Instruments in
	Calculating	Other Equity
	Hedge	Continuing
Hedged Item	Ineffectiveness	Hedges
Cash flow hedges
Forecast purchases	$ 3,875	$ (3,875)

December 31, 2020

Notional Amount Forward Rate Hedging Instruments Currency (In Thousands) Maturity (Note) Line Item Cash flow hedge Forecast purchases - spot rate JPY/NTD JPY419,258/NTD113,979 2021.02.15- 2021.03.14 0.2700-0.2794 Financial assets for hedging Forecast purchases - foreign exchange forward contracts JPY/NTD JPY1,880,000/NTD503,630 2021.01.15- 2021.03.22 0.2665-0.2692 Financial assets for hedging Forecast purchases - foreign exchange forward contracts JPY/NTD JPY225,000/NTD60,975 2021.01.27 0.2710 Other current liabilities		Carrying A	mount Liabilities I $ - - (79) $ (79)	Change in Value Used for Calculating Hedge neffectiveness $ 1,489 3,540 (63) $ 4,966
		Assets $ 115,841 4,425 - $ 120,266

Note: JPY1:NTD, unless stated otherwise.

		Accumulated
		Gains or Losses
	Change in	on Hedging
	Value Used for	Instruments in
	Calculating	Other Equity
	Hedge	Continuing
Hedged Item	Ineffectiveness	Hedges
Cash flow hedges
Forecast purchases	$ (4,966)	$ 4,966
September 30, 2020

Notional Amount Forward Rate Hedging Instrument Currency (In Thousands) Maturity (JPY1:NTD) Line Item Cash flow hedges Forecast purchases - spot rate JPY/NTD JPY302,892/NTD83,986 2020.10.15- 2020.12.15 0.2753-0.2799 Financial assets for hedging Forecast purchases - foreign exchange forward contracts JPY/NTD JPY200,000/NTD55,460 2020.10.16- 2020.11.16 0.2752-0.2794 Other current liabilities		Carrying A	mount Liabilities I $ - (800) $ (800)	Change in Value Used for Calculating Hedge neffectiveness $ 1,683 (640) $ 1,043
		Assets $ 83,477 - $ 83,477

22 -

Hedged Item Cash flow hedges Forecast purchases Comprehensive Income Impact Cash flow hedges Forecast purchases	Change in Value Used for Calculating Accumulated Gains or Losses on Hedging Instruments in Other Equity Hedge Ineffectiveness Continuing Hedges $ (1,043) $ 1,043 Hedging Gains (Losses) Recognized in OCI	Change in Value Used for Calculating Accumulated Gains or Losses on Hedging Instruments in Other Equity Hedge Ineffectiveness Continuing Hedges $ (1,043) $ 1,043 Hedging Gains (Losses) Recognized in OCI	Change in Value Used for Calculating Accumulated Gains or Losses on Hedging Instruments in Other Equity Hedge Ineffectiveness Continuing Hedges $ (1,043) $ 1,043 Hedging Gains (Losses) Recognized in OCI	Change in Value Used for Calculating Accumulated Gains or Losses on Hedging Instruments in Other Equity Hedge Ineffectiveness Continuing Hedges $ (1,043) $ 1,043 Hedging Gains (Losses) Recognized in OCI	Change in Value Used for Calculating Accumulated Gains or Losses on Hedging Instruments in Other Equity Hedge Ineffectiveness Continuing Hedges $ (1,043) $ 1,043 Hedging Gains (Losses) Recognized in OCI
	For the Three Months Ended September 30 2021 2020 $ (1,848) $ 6,198		For the Nine Months Ended September 30
		2021 $ (1,848)		2021 $ (31,195)	2020 $ 11,483

The Group had signed component purchasing contracts with the suppliers in Japan and China, and also signed foreign exchange forward contracts with the banks and purchased foreign currency banknotes at the spot rate to avoid exchange rate risk associated with its forecasted purchases. When the forecasted purchases take place, the amount originally deferred and recognized in equity will be reclassified to the carrying amount of the materials purchased.

12. NOTES AND ACCOUNTS RECEIVABLE, NET

	September 30,	September 30,	December 31,	December 31,	September 30,
		2021		2020	2020
At amortized cost
Notes and accounts receivable	$	598,891	$	922,742	$ 1,058,852
Less: Allowance for impairment loss		(5,525)		(8,469)	(12,107)
	$	593,366	$	914,273	$ 1,046,745

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated by reference to the past default records of the customer and the customer’s current financial position. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

23 -

The aging of receivables is as follows:

	September 30,	September 30,	December 31,	December 31,	September 30,
		2021		2020	2020
Not past due	$	594,083	$	917,086	$ 1,015,892
1 to 60 days past due		4,486		3,260	945
61-90 days past due		244		433	3
Over 90 days past due		78		1,963	42,012
Gross carrying amount		598,891		922,742	1,058,852
Loss allowance (Lifetime ECLs)		(5,525)		(8,469)	(12,107)
Amortized cost	$	593,366	$	914,273	$ 1,046,745

The movements of the loss allowance of notes and accounts receivable were as follows:

Balance at January 1 Less: Net reversal of loss allowance Foreign exchange gains and losses Balance at September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 8,469 (2,826) (118) $ 5,525	2020 $ 16,348 (4,196) (45) $ 12,107

13. INVENTORIES

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Merchandise	$	142,579	$	128,537	$	247,456
Finished goods		545,815		1,240,435		531,110
Work in progress		291,286		279,501		279,509
Raw materials		2,538,541		2,081,440		2,137,044
Materials in transit		55,439		79,740		117,821
	$	3,573,660	$	3,809,653	$	3,312,940

The costs of inventories recognized as cost of goods sold for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020 were $7,180,025 thousand, $6,566,074 thousand, $19,968,682 thousand and $18,624,652 thousand, respectively. The costs of inventories recognized as cost of goods sold during the three months ended September 30, 2021 and nine months ended September 30, 2021 included write-downs of $81,067 thousand and $69,245 thousand, respectively.

14. SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS

The remaining 56.13% interest in Kian Shen is dispersed and held by shareholders unrelated to the Group as of September 30, 2021, December 31, 2020 and September 30, 2020.

Refer to Tables 6 and 7 for information on the countries of incorporation and principal places of business of Kian Shen and its subsidiaries.

24 -

The summarized financial information below represents amounts before intragroup eliminations.

Kian Shen and Kian Shen’s subsidiaries

September 30, 2021 December 31, 2020 September 30, 2020 Current assets $ 993,461 $ 1,242,835 $ 865,799 Non-current assets 4,210,644 4,041,897 4,179,590 Current liabilities (516,650) (573,234) (550,139) Non-current liabilities (382,520) (387,522) (364,302) Equity $ 4,304,935 $ 4,323,976 $ 4,130,948 Equity attributable to: Owners of Kian Shen $ 1,888,575 $ 1,896,928 $ 1,812,247 Non-controlling interests of Kian Shen 2,416,360 2,427,048 2,318,701 $ 4,304,935 $ 4,323,976 $ 4,130,948 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Revenue $ 306,465 $ 268,562 $ 996,678 $ 727,367 Profit for the period $ 50,692 $ 93,704 $ 206,513 $ 200,922 Other comprehensive income (loss) for the period (3,409) 72,820 (64,074) (31,910) Total comprehensive income for the period $ 47,283 $ 166,524 $ 142,439 $ 169,012 Profit attributable to: Owners of Kian Shen $ 22,239 $ 41,108 $ 90,597 $ 88,144 Non-controlling interests of Kian Shen 28,453 52,596 115,916 112,778 $ 50,692 $ 93,704 $ 206,513 $ 200,922 Total comprehensive income attributable to: Owners of Kian Shen $ 20,743 $ 73,054 $ 62,488 $ 74,146 Non-controlling interests of Kian Shen 26,540 93,470 79,951 94,866 $ 47,283 $ 166,524 $ 142,439 $ 169,012	September 30, 2021 December 31, 2020 September 30, 2020 Current assets $ 993,461 $ 1,242,835 $ 865,799 Non-current assets 4,210,644 4,041,897 4,179,590 Current liabilities (516,650) (573,234) (550,139) Non-current liabilities (382,520) (387,522) (364,302) Equity $ 4,304,935 $ 4,323,976 $ 4,130,948 Equity attributable to: Owners of Kian Shen $ 1,888,575 $ 1,896,928 $ 1,812,247 Non-controlling interests of Kian Shen 2,416,360 2,427,048 2,318,701 $ 4,304,935 $ 4,323,976 $ 4,130,948 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Revenue $ 306,465 $ 268,562 $ 996,678 $ 727,367 Profit for the period $ 50,692 $ 93,704 $ 206,513 $ 200,922 Other comprehensive income (loss) for the period (3,409) 72,820 (64,074) (31,910) Total comprehensive income for the period $ 47,283 $ 166,524 $ 142,439 $ 169,012 Profit attributable to: Owners of Kian Shen $ 22,239 $ 41,108 $ 90,597 $ 88,144 Non-controlling interests of Kian Shen 28,453 52,596 115,916 112,778 $ 50,692 $ 93,704 $ 206,513 $ 200,922 Total comprehensive income attributable to: Owners of Kian Shen $ 20,743 $ 73,054 $ 62,488 $ 74,146 Non-controlling interests of Kian Shen 26,540 93,470 79,951 94,866 $ 47,283 $ 166,524 $ 142,439 $ 169,012	September 30, 2021 December 31, 2020 September 30, 2020 Current assets $ 993,461 $ 1,242,835 $ 865,799 Non-current assets 4,210,644 4,041,897 4,179,590 Current liabilities (516,650) (573,234) (550,139) Non-current liabilities (382,520) (387,522) (364,302) Equity $ 4,304,935 $ 4,323,976 $ 4,130,948 Equity attributable to: Owners of Kian Shen $ 1,888,575 $ 1,896,928 $ 1,812,247 Non-controlling interests of Kian Shen 2,416,360 2,427,048 2,318,701 $ 4,304,935 $ 4,323,976 $ 4,130,948 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Revenue $ 306,465 $ 268,562 $ 996,678 $ 727,367 Profit for the period $ 50,692 $ 93,704 $ 206,513 $ 200,922 Other comprehensive income (loss) for the period (3,409) 72,820 (64,074) (31,910) Total comprehensive income for the period $ 47,283 $ 166,524 $ 142,439 $ 169,012 Profit attributable to: Owners of Kian Shen $ 22,239 $ 41,108 $ 90,597 $ 88,144 Non-controlling interests of Kian Shen 28,453 52,596 115,916 112,778 $ 50,692 $ 93,704 $ 206,513 $ 200,922 Total comprehensive income attributable to: Owners of Kian Shen $ 20,743 $ 73,054 $ 62,488 $ 74,146 Non-controlling interests of Kian Shen 26,540 93,470 79,951 94,866 $ 47,283 $ 166,524 $ 142,439 $ 169,012	September 30, 2021 December 31, 2020 September 30, 2020 Current assets $ 993,461 $ 1,242,835 $ 865,799 Non-current assets 4,210,644 4,041,897 4,179,590 Current liabilities (516,650) (573,234) (550,139) Non-current liabilities (382,520) (387,522) (364,302) Equity $ 4,304,935 $ 4,323,976 $ 4,130,948 Equity attributable to: Owners of Kian Shen $ 1,888,575 $ 1,896,928 $ 1,812,247 Non-controlling interests of Kian Shen 2,416,360 2,427,048 2,318,701 $ 4,304,935 $ 4,323,976 $ 4,130,948 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Revenue $ 306,465 $ 268,562 $ 996,678 $ 727,367 Profit for the period $ 50,692 $ 93,704 $ 206,513 $ 200,922 Other comprehensive income (loss) for the period (3,409) 72,820 (64,074) (31,910) Total comprehensive income for the period $ 47,283 $ 166,524 $ 142,439 $ 169,012 Profit attributable to: Owners of Kian Shen $ 22,239 $ 41,108 $ 90,597 $ 88,144 Non-controlling interests of Kian Shen 28,453 52,596 115,916 112,778 $ 50,692 $ 93,704 $ 206,513 $ 200,922 Total comprehensive income attributable to: Owners of Kian Shen $ 20,743 $ 73,054 $ 62,488 $ 74,146 Non-controlling interests of Kian Shen 26,540 93,470 79,951 94,866 $ 47,283 $ 166,524 $ 142,439 $ 169,012
		2021 $ 996,678 $ 206,513 (64,074) $ 142,439 $ 90,597 115,916 $ 206,513 $ 62,488 79,951 $ 142,439	2020 $ 727,367 $ 200,922 (31,910) $ 169,012 $ 88,144 112,778 $ 200,922 $ 74,146 94,866 $ 169,012

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Net cash inflow (outflow) from: Operating activities Investing activities Financing activities Foreign exchange adjustments Net cash inflow (outflow) Dividends paid to non-controlling interests		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 55,837 247,598 (247,140) (5,570) $ 50,725 $ 90,639	2020 $ (100,355) 181,774 (107,513) 1,960 $ (24,134) $ 82,399

15. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

September 30, 2021 Investments in associates $ 16,996,139 Investments in joint ventures 7,196,763 $ 24,192,902 a. Investments in associates September 30, 2021 Material associates Yulon $ 7,907,098 Associates that are not individually material 9,089,041 $ 16,996,139	December 31, 2020 September 30, 2020 $ 16,335,980 $ 15,688,684 7,296,965 7,443,041 $ 23,632,945 $ 23,131,725 December 31, 2020 September 30, 2020 $ 7,561,633 $ 7,267,461 8,774,347 8,421,223 $ 16,335,980 $ 15,688,684

1) Material associates

The Group’s proportion of shareholding and voting rights in Yulon was 16.80% on September 30, 2021, December 31, 2020 and September 30, 2020.

The Group exercises significant influence over Yulon and applies the equity method of accounting because the Group had a representation on the board of directors of Yulon even though the Group holds less than 20% of interest in Yulon.

Refer to Table 6 for the nature of activities, principal place of businesses and countries of incorporation of the associates.

Fair value (Level 1) of investments in associates with available published price quotations are summarized as follows:

	September 30,	December 31,	September 30,
Name of Associate	2021	2020	2020
Yulon	$ 7,118,707	$ 7,818,908	$ 6,018,136

26 -

The summarized financial information below represents amounts shown in the associates’ consolidated financial statements prepared in accordance with IFRSs, and reflects the adjustments made when the equity method of accounting was applied.

Yulon and Yulon’s subsidiaries

September 30, 2021 Current assets $ 226,923,465 Non-current assets 86,229,194 Current liabilities (211,384,789) Non-current liabilities (33,647,154) Equity 68,120,716 Non-controlling interests (17,199,906) $ 50,920,810 Proportion of the Group’s ownership 16.80% Equity attributable to the Group $ 8,554,696 Cross shareholdings (647,598) Carrying amount $ 7,907,098 For the Three Months Ended September 30 2021 2020 Operating revenue $ 19,376,397 $ 21,178,914 Net profit for the period $ 1,884,580 $ 1,440,115 Other comprehensive income (loss) (150,480) 170,653 Total comprehensive income for the period $ 1,734,100 $ 1,610,768 Dividends received from Yulon	September 30, 2021 Current assets $ 226,923,465 Non-current assets 86,229,194 Current liabilities (211,384,789) Non-current liabilities (33,647,154) Equity 68,120,716 Non-controlling interests (17,199,906) $ 50,920,810 Proportion of the Group’s ownership 16.80% Equity attributable to the Group $ 8,554,696 Cross shareholdings (647,598) Carrying amount $ 7,907,098 For the Three Months Ended September 30 2021 2020 Operating revenue $ 19,376,397 $ 21,178,914 Net profit for the period $ 1,884,580 $ 1,440,115 Other comprehensive income (loss) (150,480) 170,653 Total comprehensive income for the period $ 1,734,100 $ 1,610,768 Dividends received from Yulon	December 31, 2020 September 30, 2020 $ 215,186,668 $ 217,899,154 86,136,078 83,439,743 (201,009,483) (208,336,609) (35,437,943) (34,421,066) 64,875,320 58,581,222 (16,136,852) (11,597,604) $ 48,738,468 $ 46,983,618 16.80% 16.80% $ 8,188,063 $ 7,893,248 (626,430) (625,787) $ 7,561,633 $ 7,267,461 For the Nine Months Ended September 30 2021 2020 $ 57,759,067 $ 58,553,325 $ 5,610,101 $ 3,090,400 (356,763) (329,502) $ 5,253,338 $ 2,760,898 $ 166,714 $ -	December 31, 2020 September 30, 2020 $ 215,186,668 $ 217,899,154 86,136,078 83,439,743 (201,009,483) (208,336,609) (35,437,943) (34,421,066) 64,875,320 58,581,222 (16,136,852) (11,597,604) $ 48,738,468 $ 46,983,618 16.80% 16.80% $ 8,188,063 $ 7,893,248 (626,430) (625,787) $ 7,561,633 $ 7,267,461 For the Nine Months Ended September 30 2021 2020 $ 57,759,067 $ 58,553,325 $ 5,610,101 $ 3,090,400 (356,763) (329,502) $ 5,253,338 $ 2,760,898 $ 166,714 $ -	December 31, 2020 September 30, 2020 $ 215,186,668 $ 217,899,154 86,136,078 83,439,743 (201,009,483) (208,336,609) (35,437,943) (34,421,066) 64,875,320 58,581,222 (16,136,852) (11,597,604) $ 48,738,468 $ 46,983,618 16.80% 16.80% $ 8,188,063 $ 7,893,248 (626,430) (625,787) $ 7,561,633 $ 7,267,461 For the Nine Months Ended September 30 2021 2020 $ 57,759,067 $ 58,553,325 $ 5,610,101 $ 3,090,400 (356,763) (329,502) $ 5,253,338 $ 2,760,898 $ 166,714 $ -

		$
		$
		$

2021 $ 19,376,397 $ 1,884,580 (150,480) $ 1,734,100	2020 $ 21,178,914 $ 1,440,115 170,653 $ 1,610,768		2021 $ 57,759,067 $ 5,610,101 (356,763) $ 5,253,338 $ 166,714	2020 $ 58,553,325 $ 3,090,400 (329,502) $ 2,760,898 $ -

2) Aggregate information of associates that are not individually material

The Group’s share of: Net profit for the period Other comprehensive income (loss) Total comprehensive income for the period	For the Three Months Ended September 30 2021 2020 $ 270,309 $ 236,518 (17,090) 16,211 $ 253,219 $ 252,729	For the Three Months Ended September 30 2021 2020 $ 270,309 $ 236,518 (17,090) 16,211 $ 253,219 $ 252,729	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 270,309 (17,090) $ 253,219		2021 $ 755,040 90,453 $ 845,493	2020 $ 584,371 (66,587) $ 517,784

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All the associates are accounted for using the equity method.

Investments in associates that are not individually material are accounted for using the equity method although the Group holds less than 20% interest because the Group exercises significant influence on their major transactions or shares the same president of the board of directors.

The Group is the single largest shareholder of several associates. The Group’s holding is less than 50% of the voting rights in the investees but the Group considered its holding of voting rights relative to the size and dispersion of the other shareholdings, which are not widely dispersed, and concluded that it has neither the ability to direct the relevant activities of the investees nor the control over the investees. The management of the Group considered the Group as exercising significant influence over the investees and, therefore, classified them as associates accounted for using the equity method.

Except for Yulon, the investments accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were based on the associates’ financial statements that have not been reviewed.

The Group acquired 34.96% interest in Looplus Service Technology Inc. in the amount of $23,000 thousand during the nine months ended September 30, 2021. The Group acquired one of the seats on the board of directors and one of the seats on the supervisory board in July 2021 and began exercising significant influence over Looplus Service Technology Inc.

Hua-Chuang Automobile Information Technical Center reduced its capital for offsetting accumulated deficits and issued ordinary shares for cash in May and August 2020, respectively. The Group did not subscribe for additional new shares at the percentage of its existing ownership, which resulted in the Group’s combined shareholding to be less than 0.01%. In addition, the Corporation has resigned from its position as member of the board of directors of Hua-Chuang Automobile Information Technical Center and consequently ceased to have significant influence over Hua-Chuang Automobile Information Technical Center.

b. Investments in joint ventures

September 30, 2021 December 31, 2020 September 30, 2020 Joint ventures that are not individually material $ 7,196,763 $ 7,296,965 $ 7,443,041 Aggregate information of joint ventures that are not individually material: For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 The Group’s share of: Net profit of the period $ 202,232 $ 126,640 $ 772,499 $ 391,358 Other comprehensive income (loss) (7,845) 129,692 (61,537) (59,747) Total comprehensive income for the period $ 194,387 $ 256,332 $ 710,962 $ 331,611	September 30, 2021 December 31, 2020 September 30, 2020 Joint ventures that are not individually material $ 7,196,763 $ 7,296,965 $ 7,443,041 Aggregate information of joint ventures that are not individually material: For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 The Group’s share of: Net profit of the period $ 202,232 $ 126,640 $ 772,499 $ 391,358 Other comprehensive income (loss) (7,845) 129,692 (61,537) (59,747) Total comprehensive income for the period $ 194,387 $ 256,332 $ 710,962 $ 331,611	September 30, 2021 December 31, 2020 September 30, 2020 Joint ventures that are not individually material $ 7,196,763 $ 7,296,965 $ 7,443,041 Aggregate information of joint ventures that are not individually material: For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 The Group’s share of: Net profit of the period $ 202,232 $ 126,640 $ 772,499 $ 391,358 Other comprehensive income (loss) (7,845) 129,692 (61,537) (59,747) Total comprehensive income for the period $ 194,387 $ 256,332 $ 710,962 $ 331,611	September 30, 2021 December 31, 2020 September 30, 2020 Joint ventures that are not individually material $ 7,196,763 $ 7,296,965 $ 7,443,041 Aggregate information of joint ventures that are not individually material: For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 The Group’s share of: Net profit of the period $ 202,232 $ 126,640 $ 772,499 $ 391,358 Other comprehensive income (loss) (7,845) 129,692 (61,537) (59,747) Total comprehensive income for the period $ 194,387 $ 256,332 $ 710,962 $ 331,611
		2021 $ 772,499 (61,537) $ 710,962	2020 $ 391,358 (59,747) $ 331,611

All the joint ventures are accounted for using the equity method.

28 -

Except for Guangzhou NTN-Yulon Drivertrain Co., Ltd., the investments accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on the joint ventures’ financial statements that have not been reviewed.

In August 2021, South East (Fujian) Motor Corporation Ltd. issued ordinary shares for cash and changed its entity type and name, which is South East (Fujian) Motor Corporation Ltd., limited by shares. The Group did not subscribe for additional new shares of the aforementioned company in proportion to its existing ownership percentage, which resulted in a decrease of the Group’s combined shareholding from 25% to 8.35%. Accordingly, the Group’s capital surplus reduced by $141 thousand and retained earnings reduced by $2,775 thousand. Besides, the Group recognized a loss on disposal of investment in the amount of $100,688 thousand, which is the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to the joint venture that was reclassified to profit and loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. The Group is able to exercise significant influence over South East (Fujian) Motor that is not individually material even though it holds less than 20% of their voting rights. This is because the Group has representation on their board of directors.

16. PROPERTY, PLANT AND EQUIPMENT

	September 30,	December 31,	September 30,
	2021	2020	2020
Assets used by the Group
Land	$ 1,974,774	$ 1,974,774	$ 1,974,774
Land improvements	10,386	12,048	12,027
Buildings	799,895	839,986	831,450
Machinery	2,612,859	2,872,387	2,606,575
Other equipment	358,582	375,027	372,830
Construction in progress	483,280	453,007	702,221
	$ 6,239,776	$ 6,527,229	$ 6,499,877

Except for the depreciation recognized and the cost of acquisition of property, plant and equipment for increasing productivity, which totaled $440,430 thousand and $664,073 thousand during the nine months ended September 30, 2021 and 2020, respectively, the Group had no other significant disposal of property, plant and equipment.

As a result of the declining sales in the market for several types of vehicles, the estimated future cash flows expected to arise from the related equipment had decreased. Thus, the Group recognized an impairment loss of $146,822 thousand for the three months ended September 30, 2021 and $146,851 thousand for the nine months ended September 30, 2021. The Group determined the recoverable amount of the relevant assets on the basis of their value in use. The discount rate used for measuring the value in use was 5.75%.

Except for tooling (included in machinery), which is depreciated on an expected production quantity basis, the above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Category Land improvements Buildings Machinery Other equipment	Useful Life
	3-20 years 2-60 years 2-24 years 2-20 years

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Acquisition of property, plant and equipment includes the decrease in payables for equipment of $20,013 thousand for the nine months ended September 30, 2021.

Property, plant and equipment pledged as collateral for bank borrowings are set out in Note 32.

17. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Land Buildings Other equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Other equipment	September 30, 2021 December 31, 2020 September 30, 2020 $ 124,940 $ 54,807 $ 61,766 260,656 292,648 304,668 14,374 9,277 9,744 $ 399,970 $ 356,732 $ 376,178 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 104,267 $ 26,730 $ 6,968 $ 6,941 $ 20,755 $ 21,331 10,836 15,575 33,145 47,361 1,933 1,562 4,975 5,003 $ 19,737 $ 24,078 $ 58,875 $ 73,695	September 30, 2021 December 31, 2020 September 30, 2020 $ 124,940 $ 54,807 $ 61,766 260,656 292,648 304,668 14,374 9,277 9,744 $ 399,970 $ 356,732 $ 376,178 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 104,267 $ 26,730 $ 6,968 $ 6,941 $ 20,755 $ 21,331 10,836 15,575 33,145 47,361 1,933 1,562 4,975 5,003 $ 19,737 $ 24,078 $ 58,875 $ 73,695	September 30, 2021 December 31, 2020 September 30, 2020 $ 124,940 $ 54,807 $ 61,766 260,656 292,648 304,668 14,374 9,277 9,744 $ 399,970 $ 356,732 $ 376,178 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 104,267 $ 26,730 $ 6,968 $ 6,941 $ 20,755 $ 21,331 10,836 15,575 33,145 47,361 1,933 1,562 4,975 5,003 $ 19,737 $ 24,078 $ 58,875 $ 73,695	September 30, 2021 December 31, 2020 September 30, 2020 $ 124,940 $ 54,807 $ 61,766 260,656 292,648 304,668 14,374 9,277 9,744 $ 399,970 $ 356,732 $ 376,178 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 104,267 $ 26,730 $ 6,968 $ 6,941 $ 20,755 $ 21,331 10,836 15,575 33,145 47,361 1,933 1,562 4,975 5,003 $ 19,737 $ 24,078 $ 58,875 $ 73,695	September 30, 2021 December 31, 2020 September 30, 2020 $ 124,940 $ 54,807 $ 61,766 260,656 292,648 304,668 14,374 9,277 9,744 $ 399,970 $ 356,732 $ 376,178 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 104,267 $ 26,730 $ 6,968 $ 6,941 $ 20,755 $ 21,331 10,836 15,575 33,145 47,361 1,933 1,562 4,975 5,003 $ 19,737 $ 24,078 $ 58,875 $ 73,695	September 30, 2021 December 31, 2020 September 30, 2020 $ 124,940 $ 54,807 $ 61,766 260,656 292,648 304,668 14,374 9,277 9,744 $ 399,970 $ 356,732 $ 376,178 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 104,267 $ 26,730 $ 6,968 $ 6,941 $ 20,755 $ 21,331 10,836 15,575 33,145 47,361 1,933 1,562 4,975 5,003 $ 19,737 $ 24,078 $ 58,875 $ 73,695
		2021 $ 6,968 10,836 1,933 $ 19,737			2021 $ 104,267 $ 20,755 33,145 4,975 $ 58,875	2020 $ 26,730 $ 21,331 47,361 5,003 $ 73,695

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the nine months ended September 30, 2021 and 2020.

b. Lease liabilities

	September 30,	December 31,	September 30,
	2021	2020	2020
Carrying amount
Current	$ 86,640	$ 87,196	$ 87,773
Non-current	$ 323,862	$ 277,908	$ 296,768
Range of discount rate for lease liabilities was as follows:
	September 30,	December 31,	September 30,
	2021	2020	2020
Land	1.20%-1.41%	1.20%-1.94%	1.20%-1.94%
Buildings	1.20%-4.35%	1.20%-4.35%	1.20%-4.35%
Other equipment	0.95%-1.37%	0.95%-1.37%	0.95%-1.37%

30 -

c. Material leasing activities and terms

The Group leases land and buildings for the use of plants and offices with lease terms of 2 to 20 years. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent.

d. Other lease information

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	For the Three Months Ended September 30 2021 2020 $ 1,813 $ 4,768 $ 893 $ 212	For the Three Months Ended September 30 2021 2020 $ 1,813 $ 4,768 $ 893 $ 212	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 1,813 $ 893		2021 $ 8,604 $ 2,891 $ 71,374	2020 $ 13,747 $ 848 $ 91,361

18. INVESTMENT PROPERTIES

	September 30,	December 31,	September 30,
	2021	2020	2020
Investment properties	$ 1,348,336	$ 1,355,015	$ 1,357,774

Except for the depreciation recognized, the Group did not have any significant addition, disposal, or impairment of investment properties for the nine months ended September 30, 2021 and 2020.

The investment properties held by the Group are depreciated using the straight line method over their estimated useful lives of 10 to 60 years.

The fair values of investment properties of the Group were $2,278,789 thousand and $2,273,093 thousand as of December 31, 2020 and 2019, respectively. The management of the Group had assessed and determined that there were no significant changes in the fair values as of September 30, 2021 and 2020, as compared to that of December 31, 2020 and 2019, respectively.

The Group held freehold interests in all of its investment properties. The investment properties pledged as deposits for certain projects are set out in Note 32.

19. BORROWINGS

a. Short-term borrowings

	September 30,	December 31,	September 30,
	2021	2020	2020
Line of credit borrowings	$ 140,000	$ 215,000	$ 245,000

The ranges of interest rates on credit borrowings were 0.90%, 0.36%-0.96% and 0.36%-0.96% per annum as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.

31 -

b. Long-term borrowings

	September	September	30,	December 31,	December 31,	September 30,	September 30,
		2021			2020		2020
Unsecured borrowings
Line of credit borrowings	$	68,750		$	93,750	$	100,000
Less: Current portions			-		(37,500)		(31,250)
Long-term borrowings	$	68,750		$	56,250	$	68,750

The aforementioned long-term borrowings are repayable in installments at varying amounts before April 15, 2023. The Group had signed medium-term loan contracts with banks for non-revolving credit facilities. However, on September 1, 2021, the Group entered into a contract to extend the repayment date to July 31, 2024. As of September 30, 2021, December 31, 2020 and September 30, 2020, the annual interest rates were all 0.725%.

20. OTHER PAYABLES

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Payables for salaries or bonuses	$	981,442	$	1,081,979	$	747,549
Payables for advertisement		498,683		171,646		262,944
Payables for equipment		194,369		214,382		58,552
Payables for warranties		191,823		206,309		196,823
Payables for taxes		187,149		183,287		339,489
Provisions for employee benefits		90,911		138,475		94,642
Others		575,064		645,743		669,201
	$	2,719,441	$	2,641,821	$	2,369,200
PROVISIONS
	September 30,		December 31,		September 30,
		2021		2020		2020
Current
Onerous contract of purchase	$	128,683	$	-	$	-

21. PROVISIONS

Provisions for the expected cost of warranty obligations to assure that products comply with agreed-upon specification are recognized on the date of sale of the relevant products at the best estimate by the management of the Company of the expenditures required to settle the Group’s obligations.

22. RETIREMENT BENEFIT PLANS

For the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, the pension expenses of defined benefit plans were $7,696 thousand, $31,977 thousand, $25,003 thousand and $51,164 thousand, respectively, and these were calculated based on the actuarially determined pension cost rate on December 31, 2020 and 2019, respectively.

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23. EQUITY

a. Share capital

Ordinary shares

September 30, 2021 Number of shares authorized (in thousands) 1,800,000 Amount of shares authorized $ 18,000,000 Number of shares issued and fully paid (in thousands) 553,620 Shares issued and fully paid $ 5,536,203	December 31, 2020 September 30, 2020 1,800,000 1,800,000 $ 18,000,000 $ 18,000,000 553,620 553,620 $ 5,536,203 $ 5,536,203

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and a right to dividends.

b. Capital surplus

	September 30,	December 31,	September 30,
	2021	2020	2020
May be used to offset a deficit, distributed as
cash dividends, or transferred to share
capital (Note 1)
Conversion of bonds	$ 5,183,923	$ 5,183,923	$ 5,183,923
Issuance of ordinary shares	1,184,920	1,184,920	1,184,920
Others	4,666	4,666	4,666
May be used to offset a deficit only
Changes in percentage of ownership interest
in subsidiaries (Note 2)	2,225	2,225	2,225
Share of changes in capital surplus of
associates or joint ventures	37,791	36,044	36,135
	$ 6,413,525	$ 6,411,778	$ 6,411,869

Note 1: Such capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and once a year).

Note 2: Such capital surplus arises from the effect of changes in ownership interest in a subsidiary resulting from equity transactions other than actual disposal or acquisition, or from changes in capital surplus of subsidiaries accounted for using the equity method.
33 -

c. Retained earnings and dividend policy

Under the dividend policy as set forth in the Corporation’s articles of incorporation, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for offsetting losses of previous years and paying taxes, then for setting aside as legal reserve 10% of the remaining profit. If there is remaining profit, the profit shall be utilized for setting aside a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for distribution. For the policies on distribution of employees’ compensation and remuneration of directors, refer to Note 25.

The operating environment of the Corporation is considered a mature and steady industry. In determining the amount of dividends to be distributed, the Corporation takes its future capital expenditures and related factors into account and also seeks to uphold the shareholders’ interests while realizing the Corporation’s long-term financial plan. Dividends are distributed at no less than 40% of profits after tax, but dividends cannot be distributed if the Corporation has deficit. Dividends are paid in the form of cash or stock. The Corporation’s policy is that cash dividends should be at least 20% of total dividends.

The shareholders of the Corporation held their regular meeting in June 2020 and in that meeting, resolved the amendments to the dividend policy of the Corporation’s articles of incorporation, where the regulation of “dividends cannot be distributed if the Corporation has a deficit” has been deleted.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1010012865, Rule No. 1010047490 and Rule No. 1030006415 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reserved from a special reserve by the Corporation.

The appropriation of earnings for 2020 that had been resolved by the shareholders in their meeting in July 2021 were as follows:

	Appropriation	Appropriation	Dividends Per	Dividends Per
	of	Earnings	Share	(NT$)
Legal reserve	$	323,844
Cash dividends		3,875,342	$	7.0

The Corporation proposed to not distribute any dividends due to the net loss incurred in 2019.

Information on the appropriation of earnings approved in the shareholders’ meeting is available at the Market Observation Post System website of the Taiwan Stock Exchange.

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d. Special reserve

Balance at January 1 Reversals Disposal of subsidiaries and associates Disposal of property, plant and equipment Balance at September 30		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 1,028,359 - - $ 1,028,359	2020 $ 1,029,654 (1,185) (110) $ 1,028,359

e. Other equity items

1) Exchange differences on translating the financial statements of foreign operations

Balance at January 1 Recognized during the period Share from associates and join ventures accounted for using the equity method Exchange differences on translating the financial statements of foreign operations Reclassification adjustments Share from disposal of joint ventures accounted for using the equity method Disposal of foreign operations Other comprehensive loss recognized for the period Balance at September 30		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ (926,661) (93,516) (10,543) 100,688 - (3,371) $ (930,032)	2020 $ (990,653) (115,661) (5,362) - 10,332 (110,691) $ (1,101,344)

2) Unrealized valuation gain on financial assets at FVTOCI

Balance at January 1 Recognized for the period Unrealized loss - equity instruments Share from associates accounted for using the equity method Other comprehensive gain (loss) recognized for the period Cumulative unrealized loss of equity instruments transferred to retained earnings due to disposal by associates Cumulative unrealized loss of equity instruments transferred to retained earnings due to disposal Balance at September 30		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 264,666 (13,010) 148,684 135,674 (24,856) (30,418) $ 345,066	2020 $ 216,562 (2,286) (52,481) (54,767) (919) - $ 160,876

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3) Cash flow hedges

Balance at January 1 Recognized for the period Gain (loss) on changes in the fair value of hedging instruments Foreign currency risk - spot rate Foreign currency risk - foreign exchange forward contracts Share from join ventures accounted for using the equity method Other comprehensive income (loss) recognized for the period Transferred to initial carrying amount of hedged items Balance at September 30 f. Non-controlling interests Balance at January 1 Attributable to non-controlling interests: Share of profit for the period Other comprehensive loss recognized for the period Unrealized loss on financial assets at FVTOCI Exchange differences on translating the financial statements of foreign operations Share in other comprehensive loss of associates and joint ventures accounted for using the equity method Other comprehensive loss recognized for the period Cash dividends distributed by subsidiaries Balance at September 30			For the Nine Months Ended September 30	For the Nine Months Ended September 30
			2021 2020 $ 6,918 $ (19,968) (20,814) 6,285 (5,679) 4,515 (17,735) 4,006 (44,228) 14,806 17,652 9,449 $ (19,658) $ 4,287 For the Nine Months Ended September 30
		2021 $ 3,583,254 154,034 - (2,693) (33,271) (35,964) (137,173) $ 3,564,151		2020 $ 3,422,878 167,211 (430) (448) (17,420) (18,298) (126,690) $ 3,445,101

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24. REVENUE

Revenue from contracts with customers Revenue from the sale of goods Revenue from the sale of vehicles Revenue from the sale of components Service revenue Rental income Other revenue 25. NET PROFIT Net profit includes the following: a. Depreciation and amortization		For the Three Months Ended September 30 2021 2020 $ 7,329,027 $ 6,003,079 908,344 1,699,643 8,237,371 7,702,722 254,687 355,172 18,232 26,563 3,703 4,498 $ 8,513,993 $ 8,088,955		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 7,329,027 908,344 8,237,371 254,687 18,232 3,703 $ 8,513,993		2021 $ 19,818,998 3,800,647 23,619,645 1,000,035 78,895 10,765 $ 24,709,340	2020 $ 17,692,636 4,141,533 21,834,169 939,427 76,783 16,629 $ 22,867,008

An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating costs Operating expenses An analysis of amortization in intangible assets by function Research and development expenses	For the Three Months Ended September 30 2021 2020 $ 143,456 $ 179,411 49,489 51,854 $ 192,945 $ 231,265 $ 1,480 $ 1,351 9,739 8,042 $ 11,219 $ 9,393 $ 11,190 $ 20,304	For the Three Months Ended September 30 2021 2020 $ 143,456 $ 179,411 49,489 51,854 $ 192,945 $ 231,265 $ 1,480 $ 1,351 9,739 8,042 $ 11,219 $ 9,393 $ 11,190 $ 20,304	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 143,456 49,489 $ 192,945 $ 1,480 9,739 $ 11,219 $ 11,190		2021 $ 461,387 146,572 $ 607,959 $ 4,300 28,578 $ 32,878 $ 33,311	2020 $ 476,947 162,850 $ 639,797 $ 4,048 29,338 $ 33,386 $ 60,912

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b. Rental income and operating expenses directly related to investment properties

Rental income from investment properties Direct operating expenses of investment properties generating rental income c. Employee benefits expense	For the Three Months Ended September 30 2021 2020 $ 16,640 $ 17,506 $ 5,760 $ 5,909	For the Three Months Ended September 30 2021 2020 $ 16,640 $ 17,506 $ 5,760 $ 5,909	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 16,640 $ 5,760		2021 $ 50,022 $ 17,982	2020 $ 51,739 $ 18,087

Post-employment benefits Defined contribution plans Defined benefit plans Short-term benefits An analysis of employee benefits expenses by function Operating costs Operating expenses		For the Three Months Ended September 30 2021 2020 $ 16,936 $ 17,167 7,696 31,977 24,632 49,144 751,287 792,158 $ 775,919 $ 841,302 $ 387,465 $ 414,835 388,454 426,467 $ 775,919 $ 841,302		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 16,936 7,696 24,632 751,287 $ 775,919 $ 387,465 388,454 $ 775,919		2021 $ 55,623 25,003 80,626 2,401,850 $ 2,482,476 $ 1,247,949 1,234,527 $ 2,482,476	2020 $ 54,479 51,164 105,643 2,313,831 $ 2,419,474 $ 1,213,284 1,206,190 $ 2,419,474

d. Employees’ compensation and remuneration of directors

According to the Articles of Incorporation of the Corporation, the Corporation accrues employees’ compensation and remuneration of directors at the rates of no less than 0.1% and no higher than 0.5%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. For the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, the employees’ compensation and remuneration of directors are as follows:

Amount

Amount
Employees’ compensation Remuneration of directors	For the Three Months Ended September 30 2021 2020 $ 12,159 $ 10,333 $ 4,926 $ 4,897		For the Nine Months Ended September 30
		2021 $ 12,159 $ 4,926		2021 $ 33,990 $ 18,681	2020 $ 16,748 $ 12,780

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

38 -

The appropriations of employees’ compensation and remuneration of directors for the year ended December 31, 2020 that were resolved by the Corporation’s board of directors in March 2021 are as follows:

Employees’ compensation Remuneration of directors	For the Year Ended December 31, 2020	For the Year Ended December 31, 2020
		Cash $ 31,923 $ 17,130

There was no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the year ended December 31, 2020.

Due to the net loss before income tax for the year ended December 31, 2019, the Corporation did not accrue employees’ compensation and remuneration of directors.

Information on the employees’ compensation and remuneration of directors resolved by the Corporation’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

e. Impairment loss

Property, plant and equipment (Note 16) Intangible assets under development	For the Three Months Ended September 30 2021 2020 $ 146,822 $ - - - $ 146,822 $ -	For the Three Months Ended September 30 2021 2020 $ 146,822 $ - - - $ 146,822 $ -	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 146,822 - $ 146,822		2021 $ 146,851 - $ 146,851	2020 $ 32 94,497 $ 94,529

The Group intends to modify vehicle engines, and the future cash flows expected to arise from the related intangible assets of engines had decreased to zero. Therefore, the Group recognized an impairment loss of $94,497 thousand for the nine months ended September 30, 2020.

f. Gain on disposal of investments

In August 2018, the Group entered into a contract for the transfer of its shares in Zhejiang Kanda to a non-related party and collected the proceeds from the contract in installments (discounted price after tax was $390,514 thousand (RMB91,105 thousand)). The disposal was completed in May 2020, the date on which the Group recognized a gain on disposal of investments amounting to $234,953 thousand, and recognized an expected credit gain (loss) of $36,147 thousand and $(93,833) thousand for the nine months ended September 30, 2021 and 2020, respectively, after taking into consideration the debtor’s current financial position and the value of the assets pledged as collateral.

39 -

26. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of tax expense are as follows:

Current tax In respect of the current period Taxation for repatriated offshore funds Tax refund for offshore funds Income tax on unappropriated earnings Adjustments for the prior periods Deferred tax In respect of the current period Adjustments for the prior periods Income tax expense recognized in profit or loss	For the Three Months Ended September 30 2021 2020 $ 120,698 $ 26,815 20,911 5,835 - - - - - - 141,609 32,650 (3,624) (20,292) - - (3,624) (20,292) $ 137,985 $ 12,358	For the Three Months Ended September 30 2021 2020 $ 120,698 $ 26,815 20,911 5,835 - - - - - - 141,609 32,650 (3,624) (20,292) - - (3,624) (20,292) $ 137,985 $ 12,358	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 120,698 20,911 - - - 141,609 (3,624) - (3,624) $ 137,985		2021 $ 406,343 167,141 (5,124) 8,400 7,915 584,675 (43,579) (231) (43,810) $ 540,865	2020 $ 61,857 121,108 - - (15,055) 167,910 (45,450) - (45,450) $ 122,460

The tax rate applicable to subsidiaries in China is 25%. Tax rates used by other entities in the Group operating in other jurisdictions are based on the tax laws in those jurisdictions.

In July 2019, the president of the ROC announced the amendments to the Statute for Industrial Innovation, which stipulate that the amounts of unappropriated earnings in 2018 and thereafter that are reinvested in the construction or purchase of certain assets or technologies are allowed as deduction when computing the income tax on unappropriated earnings.

In July 2019, the president of the ROC announced the regulations on the Management, Utilization, and Taxation of Repatriated Offshore Funds Act. Within two years from the date of enforcement of this Act, profit-seeking enterprises may be subject to taxation based on these regulations upon approval by the tax authorities. A tax rate of 8% applies to the first year’s repatriation of funds, while a tax rate of 10% applies to the second year’s repatriation of funds; the statutory rate of 20% is not applicable. If substantive investments are subsequently made, profit-seeking enterprises may apply for a refund of 50% of the tax paid for qualifying investment amounts.

During the nine months ended September 2021, the Group repatriated $818,753 thousand (RMB27,513 thousand and EUR20,691 thousand) after approval was obtained from the National Taxation Bureau, Ministry of Finance. Total income tax withholdings was $167,141 thousand, comprising $86,843 thousand based on the source of income and $80,298 thousand based on the preferential tax rate at 10%.

40 -

During the nine months ended September 30, 2020, the Group repatriated $685,351 thousand (RMB161,076 thousand and US$367 thousand) after approval was obtained from the National Taxation Bureau, Ministry of Finance. Total income tax withholdings was $121,108 thousand, comprising $66,468 thousand based on the source of income and $54,640 thousand based on the preferential tax rate at 8%. Subsequent substantive investments amounted to $122,052 thousand, and application for the refund of tax was $5,124 thousand.

b. Income tax recognized in other comprehensive income

Deferred tax In respect of the current period Cash flow hedges	For the Three Months Ended September 30 2021 2020 $ 449 $ (707)	For the Three Months Ended September 30 2021 2020 $ 449 $ (707)	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 449		2021 $ 4,702	2020 $ (683)

c. Income tax assessments

The tax returns of the Corporation through 2019 have been assessed by the tax authorities.

27. EARNINGS PER SHARE

Basic earnings per share Diluted earnings per share	For the Three Months Ended September 30 2021 2020 $ 1.25 $ 1.73 $ 1.25 $ 1.73	For the Three Months Ended September 30 2021 2020 $ 1.25 $ 1.73 $ 1.25 $ 1.73	Unit: NT$ Per Share For the Nine Months Ended September 30	Unit: NT$ Per Share For the Nine Months Ended September 30	Unit: NT$ Per Share For the Nine Months Ended September 30
		2021 $ 1.25 $ 1.25		2021 $ 5.90 $ 5.89	2020 $ 4.52 $ 4.52

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share are as follows:

Net Profit for the Period

Profit of the Corporation		For the Three Months Ended September 30 2021 2020 $ 680,994 $ 943,229		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 680,994		2021 $ 3,218,610	2020 $ 2,465,401

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Weighted Average Number of Ordinary Shares Outstanding (In Thousands of Shares)

Weighted average number of ordinary shares used in the computation of basic earnings per share Weighted average number of ordinary shares Adjustment for shares held by associates Effect of potentially dilutive ordinary shares Employees’ compensation Weight average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended September 30 2021 2020 553,620 553,620 (8,239) (8,239) 545,381 545,381 460 399 545,841 545,780	For the Three Months Ended September 30 2021 2020 553,620 553,620 (8,239) (8,239) 545,381 545,381 460 399 545,841 545,780	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 553,620 (8,239) 545,381 460 545,841		2021 553,620 (8,239) 545,381 656 546,037	2020 553,620 (8,239) 545,381 399 545,780

When calculating earnings per share (EPS), the Group considers the shares held by associates as treasury shares to reduce the number of shares outstanding.

Since the Group offered to settle compensation paid to employees in cash or shares, the Group assumed that the entire amount of the compensation will be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares was included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

28. DISPOSAL OF SUBSIDIARY

The Group’s board of directors approved to fully dispose of its interest held in its subsidiary, Advance Power Machinery, to Yulon on July 16, 2020. The disposal was completed on July 17, 2020, the date on which the control of Advance Power Machinery was transferred to the acquirer.

a. Consideration received from disposal

Sales proceeds received $ 10,787

42 -
b. Analysis of assets and liabilities on the date control was lost

	Advance Power	Advance Power
	Machinery
Current assets
Cash and cash equivalents	$	12,983
Trade receivables form related parties		10,844
Other receivables		1,579
Other current assets		30
Non-current assets
Other non-current assets		20
Current liabilities
Other payables		(14,311)
Current tax liabilities		(31)
Other current liabilities		(245)
Net assets disposed of	$	10,869
Loss on disposal of subsidiaries
	Advance Power
	Machinery
Consideration received	$	10,787
Net assets disposed of		(10,869)
Loss on disposal	$	(82)
Net cash and cash equivalent outflow on disposal of subsidiary
Proceeds of disposal	$	10,787
Less: Cash and cash equivalent balances disposed of		(12,983)
Net cash outflow on disposal of subsidiaries	$	(2,196)

c. Loss on disposal of subsidiaries
d. Net cash and cash equivalent outflow on disposal of subsidiary

29. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance. The Group’s overall strategy remains unchanged in the future.

30. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments that are not measured at fair value

The Group’s management believes the carrying amounts of financial assets and financial liabilities that are not measured at fair value recognized in the consolidated financial statements approximate their fair values or their fair values cannot be reliably measured.

43 -
b. Fair value of financial instruments that are measured at fair value on a recurring basis
1) Fair value hierarchy

September 30, 2021 Financial assets Financial assets at FVTPL Mutual funds Domestic unlisted shares Derivative financial instruments Financial assets at FVTOCI Domestic listed shares Domestic unlisted shares Foreign unlisted shares Financial assets for hedging Non-derivative financial instruments Derivative financial instruments Financial liabilities Financial liabilities at FVTPL Derivative financial instruments (included in other current liabilities) Financial liabilities for hedging Derivative financial instruments (included in other current liabilities)	Level 1 $ 256,557 - - $ 256,557 $ 13,521 - - $ 13,521 $ 88,579 - $ 88,579 $ - $ -	Level 2 $ - - - $ - $ - - - $ - $ - - $ - $ - $ -	Level 3 $ - 713,379 1,504 $ 714,883 $ - 24,957 109,017 $ 133,974 $ - 122 $ 122 $ 363 $ 2,490	Total $ 256,557 713,379 1,504 $ 971,440 $ 13,521 24,957 109,017 $ 147,495 $ 88,579 122 $ 88,701 $ 363 $ 2,490

44 -

December 31, 2020

Financial assets Financial assets at FVTPL Mutual funds Domestic unlisted shares Derivative financial instruments Financial assets at FVTOCI Domestic listed shares Domestic unlisted shares Foreign unlisted shares Financial assets for hedging Non-derivative financial instruments Derivative financial instruments Financial liabilities Financial liabilities for hedging Derivative financial instruments (included in other current liabilities) September 30, 2020 Financial assets Financial assets at FVTPL Mutual funds Domestic unlisted shares Derivative financial instruments	Level 1 $ 1,056,288 - - $ 1,056,288 $ 30,370 - - $ 30,370 $ 115,841 - $ 115,841 $ - Level 1 $ 1,289,872 - - $ 1,289,872	Level 2 $ - - - $ - $ - - - $ - $ - - $ - $ - Level 2 $ - - - $ -	Level 3 $ - 672,914 3,141 $ 676,055 $ - 24,145 124,358 $ 148,503 $ - 4,425 $ 4,425 $ 79 Level 3 $ - 661,001 195 $ 661,196	Total $ 1,056,288 672,914 3,141 $ 1,732,343 $ 30,370 24,145 124,358 $ 178,873 $ 115,841 4,425 $ 120,266 $ 79 Total $ 1,289,872 661,001 195 $ 1,951,068 (Continued)

45 -

Financial assets at FVTOCI Domestic listed shares Domestic unlisted shares Foreign unlisted shares Financial assets for hedging Non-derivative financial instruments Financial liabilities Financial liabilities at FVTPL Derivative financial instruments (included in other current liabilities) Financial liabilities for hedging Derivative financial instruments (included in other current liabilities)	Level 1 $ 31,395 - - $ 31,395 $ 83,477 $ - $ -	Level 2 $ - - - $ - $ - $ - $ -	Level 3 $ - 24,152 148,809 $ 172,961 $ - $ 724 $ 800	Total $ 31,395 24,152 148,809 $ 204,356 $ 83,477 $ 724 $ 800 (Concluded)

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the nine months ended September 30, 2021

Financial Assets
Equity
Instruments at
FVTPL
Derivative
Financial
Instruments at
FVTPL
Equity
Instruments at
FVTOCI
Derivative
Financial
Instruments
for Hedging
Balance at January 1
$ 672,914
$ 3,141
$ 148,503
$ 4,425

Recognized in profit or loss
40,465
(1,637)
-
-
Recognized in other
comprehensive loss

-

-

(14,529)

(4,303)

Balance at September 30
$ 713,379
$ 1,504
$ 133,974
$ 122

Total
$ 828,983
38,828

(18,832)
$ 848,979

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Financial Liabilities Derivative Financial Instruments at FVTPL Derivative Financial Instruments for Hedging Balance at January 1 $ - $ 79 Recognized in profit or loss 363 - Recognized in other comprehensive income - 2,411 Balance at September 30 $ 363 $ 2,490	Total $ 79 363 2,411 $ 2,853

For the nine months ended September 30, 2020

Financial Assets Equity Instruments at FVTPL Derivative Financial Instruments at FVTPL Equity Instruments at FVTOCI Derivative Financial Instruments for Hedging Balance at January 1 $ 686,413 $ 304 $ 178,259 $ 440 Recognized in profit or loss (25,412) (109) - - Recognized in other comprehensive loss - - (5,298) (440) Balance at September 30 $ 661,001 $ 195 $ 172,961 $ - Financial Liabilities Derivative Financial Instruments at FVTPL Derivative Financial Instruments for Hedging Balance at January 1 $ 2,483 $ 6,884 Recognized in profit or loss (1,759) - Recognized in other comprehensive loss - (6,084) Balance at September 30 $ 724 $ 800	$	Total $ 865,416 (25,521) (5,738) $ 834,157 Total 9,367 (1,759) (6,084) 1,524
	$

3) Valuation techniques and inputs applied for Level 3 fair value measurement
a) Derivative financial instruments: The fair values of foreign exchange forward contracts of future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.
b) Domestic unlisted securities to which the market approach was applied: The fair values of domestic unlisted shares referred to stock prices of listed companies with operating activities that were similar to those of the Corporation. The material unobservable inputs are as follows:

	September 30,	December 31,	September 30,
	2021	2020	2020
Operating income ratio	0.69-5.18 times	0.69-5.21 times	0.20-5.58 times
Gross profit ratio	-	-	2.23-17.18 times
EBITDA ratio	4.75-36.25 times	4.75-36.25 times	5.21-24.22 times
Post-tax profit ratio	-	-	13.24-71.17 times
P/B ratio	0.43-3.86 times	0.43-3.86 times	0.57-7.82 times
Discount rate for lack of	32.28%	32.28%	32.28%
marketability

47 -

If the inputs to the valuation model were changed to reflect reasonably possible alternative assumptions while all the other variables were held constant, the fair values of the shares would have increased (decreased) as follows:

		September 30,	September 30,	December	December	31,	September 30,	September 30,
			2021		2020			2020
	Operating income ratio
	0.1 time increase	$	29,925	$	25,129		$	54,350
	0.1 time decrease	$	(29,925)	$	(25,129)		$	(54,350)
	Gross profit ratio
	1 time increase	$	-	$		-	$	5,384
	1 time decrease	$	-	$		-	$	(5,384)
	EBITDA ratio
	1 time increase	$	8,984	$	8,984		$	3,874
	1 time decrease	$	(8,984)	$	(8,984)		$	(3,874)
	Post-tax profit ratio
	1 time increase	$	-	$		-	$	10,660
	1 time decrease	$	-	$		-	$	(10,660)
	P/B ratio
	0.1 time increase	$	83,707	$	79,510		$	70,139
	0.1 time decrease	$	(83,707)	$	(79,510)		$	(70,139)
Categories of financial instruments
		September 30,		December		31,	September 30,
			2021		2020			2020
Financial assets
FVTPL
Mandatorily at FVTPL		$	971,440	$	1,732,343		$	1,951,068
Financial assets for hedging			88,701		120,266			83,477
Financial assets at amortized cost (Note 1)		14,726,900		13,989,558			12,921,200
Financial assets at FVTOCI			147,495		178,873			204,356
Financial liabilities
Amortized cost (Note 2)			5,495,001		6,612,232			5,851,886
FVTPL	(included in other current liabilities)
Held	for trading		363			-		724
Financial liabilities for hedging (included in
other	current liabilities)		2,490			79		800

c. Categories of financial instruments
Note 1: The balances included financial assets measured at amortized cost, which comprise cash and cash equivalents, debt investments, notes and accounts receivable (related parties included), other receivables, other financial assets (included in other current assets), guarantee deposits (included in other non-current assets) and long-term receivables (included in other non-current assets).
Note 2: The balances included financial liabilities measured at amortized cost which comprise short-term borrowings, short-term bills payable, notes and accounts payable (related parties included), other payables, long-term borrowings (current portion of long-term borrowing included) and deposits received (included in other non-current liabilities).
48 -

d. Financial risk management objectives and policies

The Group’s major financial instruments include equity and debt investments, accounts receivable, accounts payable, borrowings and lease liabilities. Financial risks include market risk, credit risk, and liquidity risk.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and other price risk.

a) Foreign currency risk

Holding foreign currency denominated assets and liabilities exposes the Group to adverse fluctuations of cash flows and the reduction of foreign currency assets due to the changes in foreign currency rate. The Group avoids cash flow risk resulting from the changes in adverse foreign currency rate by using derivative contracts.

Sensitivity analysis

The Group is mainly exposed to the U.S. dollar (USD), Euro (EUR), Japanese yen (JPY) and Renminbi (RMB).

The following table details the Group’s sensitivity to a 1% increase and decrease in the New Taiwan dollar against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included outstanding foreign currency denominated monetary items and their translation at the end of the reporting period is adjusted for a 1% change in foreign currency rates. A positive (negative) number below indicates an increase (decrease) in pre-tax profit and equity associated with a 1% strengthening (weakening) of the New Taiwan dollar against the relevant currency.

USD to NTD	USD to NTD	USD to NTD
For the Nine Months Ended September 30
	2021 2020 $ (7,570) $ (5,232) USD to RMB
For the Nine Months Ended September 30
	2021 2020 $ (236) $ (245) JPY to NTD
For the Nine Months Ended September 30
	2021 $ 855 $ (3,999)	2020 $ 710 $ (1,386)

49 -

Loss Equity	RMBto NTD	RMBto NTD	RMBto NTD
	For the Nine Months Ended September 30
		2021 $ (15,535) $ (279)	2020 $ (14,823) $ -

b) Interest rate risk

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rate risk at the end of the reporting period were as follows:

	September 30,	December 31,	September 30,	September 30,
	2021	2020		2020
Cash flow interest rate risk
Financial assets	$ 12,054,595	$ 11,184,954	$	9,461,541
Financial liabilities	318,715	458,713		534,930
Fair value interest rate risk
Lease liabilities	410,502	365,104		384,541

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liabilities outstanding at the end of the reporting period was outstanding for the whole year. The sensitivity rate of 0.25% is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 0.25% higher/lower and all other variables were held constant, the Group’s pre-tax profit for the nine months ended September 30, 2021 and 2020 would have increased/decreased by $22,005 thousand and $16,737 thousand, respectively.

The Group’s sensitivity to interest rates increased during the current period mainly due to the increase in variable rate asset instruments.

c) Other price risk

The Group was exposed to equity price risk on its investments in listed securities and mutual funds.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 5% higher/lower, pre-tax profit for the nine months ended September 30, 2021 and 2020 would have increased/decreased by $12,828 thousand and $64,494 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for the nine months ended September 30, 2021 and 2020 would have increased/decreased by $676 thousand and $1,570 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

50 -

2) Credit risk

There is a potential impact on the amounts of financial assets if the counterparties of the Corporation or third parties fail to perform their obligations in financial instrument contracts. The impact includes the concentrated degrees, composition parts and contracts amounts of the financial instruments and other receivables. The Group believes the credit risk is low because the counterparties are creditworthy banks, brokers and dealers.

3) Liquidity risk

The Group has sufficient operating capital to meet cash requirements for settlement of derivative transactions. Thus, liquidity risk is low. As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group had available unutilized unsecured and secured financing facilities (including bills and letters) of $6,539,871 thousand, $6,448,979 thousand and $6,457,876 thousand, respectively.

31. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Corporation and its subsidiaries, which are related parties of the Corporation, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed below.

a. Names and categories of related parties

Related Party Name
Mitsubishi Motors Corporation (Mitsubishi Motors Corp.)

Mitsubishi Corporation

Tai Yuen Textile Co., Ltd.

Le Wen Investment Co., Ltd.

Yulon Management Company Ltd. (Yulon Management)

Mitsubishi Corporation (Taiwan) Ltd.

Mitsubishi Motors Philippines Corporation

Mitsubishi Motors Thailand

Mitsubishi Motors Europe B.V.

Mitsubishi Motors Middle East and Africa

Shye Shyang Mechanical Industrial Co., Ltd.

Fuzhou Samnel Mechanical and Electrical Co., Ltd.

Related Party Category

Investors that has significant influence
over the Group
Investors that has significant influence
over the Group
Investors that has significant influence
over the Group
Investors that has significant influence
over the Group
Subsidiary of investors that have
significant influence over the Group
Subsidiary of investors that have
significant influence over the Group
Subsidiary of investors that have
significant influence over the Group
Subsidiary of investors that have
significant influence over the Group
Subsidiary of investors that have
significant influence over the Group
Subsidiary of investors that have
significant influence over the Group
The Group is its key management
personnel
The Group is its key management
personnel
(Continued)

51 -

Related Party Name
Uni-Calsonic Corp.

Yulon Motor Co., Ltd. (Yulon)

Fortune Motors Co., Ltd. (Fortune Motors)

ROC Spicer Ltd. (ROC-Spicer)

Uni Auto Parts Manufacture Co., Ltd. (Uni Auto Parts
Manufacture)

Shung Ye Motor Co., Ltd. (Shung Ye Motor)

Hua-Chuang Automobile Information Technical Center Co.,
Ltd. (Hua-Chuang Automobile Information)

Yulon IT Solutions Inc.

Sinjang Co., Ltd.

Sin Gan Co., Ltd.

Tokio Marine Newa Insurance Co., Ltd.

Hong Shuo Cultural Enterprises, Co., Ltd.

Hsiang Shuo Enterprises

Sinqual Technology Co., Ltd.

Yufong Property Management Co., Ltd.

Taiwan Acceptance Corporation (Taiwan Acceptance)

Yue Sheng Industrial Co., Ltd.

Luxgen Motor Co., Ltd. (Luxgen)

Yulon Nissan Motor Co., Ltd.

Y-Teks Co., Ltd.

YES-Energy Service Co., Ltd.

Yue Ki Industrial Co., Ltd. (Yue Ki Industrial)

Carplus Auto Leasing Corporation

Fortune HS Leasing Co., Ltd.

Yu Rich Financial Services Company

ROC-Keeper Industrial Ltd.

Fuzhou Lianhong Motor Parts Co., Ltd.

Advance Power Machinery Co.

Fu-Lun Motors Co., Ltd.

Looplus Service Technology Inc. (Looplus Service)

Ching-Tong Motor Co., Ltd.

Guangzhou NTN-Yulon Drivetrain Co., Ltd.

Xiangyang NTN-Yulon Drivetrain Co., Ltd.

South East (Fujian) Motor Corporation Ltd. (South East
Corporation Ltd. by shares) (South East (Fujian) Motor)

Fujian Benz Automotive Co., Ltd.

Fuzhou Fushiang Motor Industrial Co., Ltd.

Xiamen King-Long Kian-Shen Frame

Hangzhou King-Long Kian-Shen Co., Ltd.

China Engine (Fujian)

Yuanchuang Industrial Investment Consulting Co., Ltd.

Related Party Category

Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Change in relationship from subsidiary
to associate since July 17, 2020
Associate
Associate since April, 2021
Associate
Joint venture
Joint venture
Joint venture
Joint venture
Joint venture
Joint venture
Joint venture
Joint venture
Substantive related party

(Concluded)

52 -

b. Operating transactions

1) Sales of goods

Related Party Line Item Category/Name Sales Associates Fortune Motors Shung Ye Motor Others Investors and subsidiaries of the investors that have significant influence over the Group Joint ventures		For the Three Months Ended September 30 2021 2020 $ 4,576,150 $ 5,043,216 914,186 1,337,975 137,560 330,175 5,627,896 6,711,366 22,632 7,796 5,204 5,535 $ 5,655,732 $ 6,724,697		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 4,576,150 914,186 137,560 5,627,896 22,632 5,204 $ 5,655,732		2021 $ 14,643,047 3,377,273 495,155 18,515,475 67,927 14,119 $ 18,597,521	2020 $ 14,490,055 3,911,496 648,050 19,049,601 58,051 20,477 $ 19,128,129

2) Purchases of goods

Related Party Line Item Category/Name Purchases Associates Investors and subsidiaries of the investors that have significant influence over the Group The Group is its key management Joint ventures		For the Three Months Ended September 30 2021 2020 $ 458,128 $ 552,534 328,416 345,521 65,373 86,072 3,197 27,229 $ 855,114 $ 1,011,356		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 458,128 328,416 65,373 3,197 $ 855,114		2021 $ 1,652,758 1,028,651 237,055 15,538 $ 2,934,002	2020 $ 1,381,455 1,271,834 208,495 84,011 $ 2,945,795

3) Technical services expense

Related Party Line Item Category/Name Cost of goods sold and selling and marketing expenses Investors that have significant influence over the Group		For the Three Months Ended September 30 2021 2020 $ 32,711 $ 53,735		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 32,711		2021 $ 143,070	2020 $ 173,701

4) Development expense

Related Party Line Item Category/Name Research and development expenses Investors that have significant influence over the Group		For the Three Months Ended September 30 2021 2020 $ - $ -		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ -		2021 $ 690	2020 $ 6,063

53 -

5) Other expense

Related Party Line Item Category/Name Selling and marketing expenses and general and administrative Investors and subsidiaries of the investors that have significant influence over the Group expenses Associates Others		For the Three Months Ended September 30 2021 2020 $ 21,261 $ 23,109 4,313 4,493 348 - $ 25,922 $ 27,602		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 21,261 4,313 348 $ 25,922		2021 $ 55,996 10,915 1,014 $ 67,925	2020 $ 67,911 11,877 - $ 79,788

6) Contract liabilities

	Related Party	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
Line Item	Category/Name		2021		2020		2020
Other current	Associates
liabilities	Luxgen	$	58,585	$	58,585	$	58,585
	Others		7,849		6,902		7,803
			66,434		65,487		66,388
	Investors that have		-		16,393		-
	significant influence
	over the Group
	Others		-		-		7,334
		$	66,434	$	81,880	$	73,722
Receivables from	related parties
	Related Party	September 30,		December 31,		September 30,
Line Item	Category/Name		2021		2020		2020
Trade receivables	Associates
from related	Fortune Motors	$	1,103,252	$	724,638	$	1,183,075
parties	Shung Ye Motor		332,992		338,521		313,655
	Others		104,568		189,089		182,302
			1,540,812		1,252,248		1,679,032
	Joint ventures		6,948		11,270		10,654
	Others		5,007		3,960		1,199
		$	1,552,767	$	1,267,478	$	1,690,885

7) Receivables from related parties
54 -

8) Payables to related parties

	Related Party	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
Line Item	Category/Name		2021		2020		2020
Trade payables to	Associates
related parties	Uni Auto Parts	$	90,037	$	148,010	$	114,013
	Manufacture
	Yue Ki Industrial		89,157		113,048		92,401
	ROC-Spicer		81,157		100,270		88,473
	Yulon		51,192		57,163		79,490
	Others		135,770		183,651		114,106
			447,313		602,142		488,483
	Investors and
	subsidiaries of the
	investors that have
	significant influence
	over the Group
	Mitsubishi Motors		71,132		127,147		105,948
	Corp.
	Yulon Management		64,360		93,243		70,134
	Others		8,492		7,786		5,809
			143,984		228,176		181,891
	The Group is its key
	management		44,076		67,906		54,708
	Others		8,454		9,013		8,912
		$	643,827	$	907,237	$	733,994
9) Prepayments
	Related Party	September 30,		December 31,		September 30,
Line Item	Category/Name		2021		2020		2020
Prepayments	Joint ventures	$	36	$	3,681	$	8,736
	Others		804		194		486
		$	840	$	3,875	$	9,222

10) Acquisition of property, plant and equipment

Related Party Line Item Category/Name Property, plant and equipment Associates Others		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 12,244 - $ 12,244	2020 $ 74,262 6,940 $ 81,202

The outstanding payables to related parties were not guaranteed and would be paid in cash. The Group’s receivables from some related parties were guaranteed. For the nine months ended September 30, 2021 and 2020, no loss allowance was recognized for trade receivables from related parties.

55 -

The prices and payment terms for the Group’s transactions with related parties are the same as that for third parties. For lease contracts entered into with related parties, rental prices were determined by reference to the market, and had general payment terms.

The Group signed a contract with Mitsubishi Motors Corporation, refer to Note 33 for the details.

c. Remuneration of key management personnel

The remuneration of directors and key executives for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020 was as follows:

Short-term employee benefits Post-employment benefits	For the Three Months Ended September 30 2021 2020 $ 26,785 $ 26,295 305 428 $ 27,090 $ 26,723	For the Three Months Ended September 30 2021 2020 $ 26,785 $ 26,295 305 428 $ 27,090 $ 26,723	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 26,785 305 $ 27,090		2021 $ 83,257 889 $ 84,146	2020 $ 77,855 1,280 $ 79,135

The remuneration of directors and key executives, as determined by the remuneration committee, is based on the performance of individuals and market trends.

32. ASSETS PLEDGED AS COLLATERAL

The following assets were provided as collateral for borrowings, tariff from importing vehicle and materials, escrows and government tenders:

	September 30,	December 31,	September 30,
	2021	2020	2020
Pledged deposits (Note 9)	$ 240,318	$ 180,486	$ 180,486
Property, plant and equipment	57,079	508,913	509,261
Investment properties	-	52,323	52,323
	$ 297,397	$ 741,722	$ 742,070

33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Significant commitments and contingencies of the Group as of September 30, 2021 were as follows:

a. The Group issued guarantee notes amounting to $4,156,550 thousand, which had been pledged as collateral for loans from banks and other financial institutions; unused letters of credit amounted to $45,680 thousand.
56 -
b. The Group entered into an agreement with Mitsubishi Motors Corporation as stated below:

Project Technical royalty Technical royalty	Content Technical cooperation and manufacture of Delica and other car models Technical cooperation and manufacture of Outlander and other car models	Date of Agreement/ Expiry Date 2006.03.01-2025.04.08 2005.07.01-2025.09.07	Agreement Price Royalty was agreed to be the basis of the FOB price of automobiles sold and manufactured parts repaired Royalty was agreed to be the fixed amount of automobiles sold per unit and the basis of the FOB price of manufactured parts repaired	Payment
				Paid every 6 months within 90 days Paid every 6 months within 60-90 days

c. According to Rule No. 1090261416 issued by the Land Administration Department of the Taoyuan City Government on October 19, 2020, the Group’s land in Dayuan which was recognized under property, plant and equipment is within the scope of the “Taoyuan Aerotropolis Urban Plan First Stage in Expropriated Zone”. The land will be expropriated, and the Group will obtain approval offset land compensation. The related compensation and relief fund the Group received as a result of the aforementioned land expropriation case amounted to $254,212 thousand in September 2021. The Group has not completed its obligation to move out from the existing buildings and land and has not completed the related handover procedures with the Taoyuan City Government. As a result, the related compensation and relief payments should be recognized in advance receipts (included in other current liabilities).
d. The status of endorsements/guarantees was listed in Table 2.

34. OTHER ITEMS

The Group’s operating revenue was affected by the impact of the COVID-19 pandemic which has evolved globally and is currently impacting Taiwan. Based on the information available as of the balance sheet date, the Group considered the economic implications of the pandemic when making its critical accounting estimates; refer to Note 5.

35. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currency and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

September 30, 2021

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Foreign currency assets
Monetary items
RMB	$	335,657	4.305	$ 1,445,002
USD		21,996	27.85	612,602
JPY		419,763	0.2490	104,521
Non-monetary items
Investments accounted for using the equity
method
RMB		1,054,112	4.305	4,537,952
EUR		94,794	32.32	3,063,752
				(Continued)

57 -

		Foreign			Carrying
		Currency	Exchange Rate		Amount
Foreign currency liabilities
Monetary items
JPY	$	407,266	0.2490	$	101,409
					(Concluded)
December 31, 2020
		Foreign			Carrying
		Currency	Exchange Rate		Amount
Foreign currency assets
Monetary items
RMB	$	327,164	4.377	$	1,431,995
USD		19,214	28.48		547,208
JPY		717,026	0.2763		198,114
Non-monetary items
Investments accounted for using the equity
method
RMB		1,071,073	4.377		4,688,087
EUR		86,458	35.02		3,027,742
Foreign currency liabilities
Monetary items
RMB		44,915	4.377		196,592
JPY		646,121	0.2763		178,523
September 30, 2020
		Foreign			Carrying
		Currency	Exchange Rate		Amount
Foreign currency assets
Monetary items
RMB	$	326,283	4.269	$	1,392,901
USD		18,415	29.10		535,878
JPY		521,345	0.2756		143,683
Non-monetary items
Investments accounted for using the equity
method
RMB		1,198,555	4.269		5,116,630
EUR		79,131	34.15		2,702,309
Foreign currency liabilities
Monetary items
JPY		475,967	0.2756		131,177

58 -

For the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, net foreign exchange gains (losses) were $(2,099) thousand, $20,695 thousand, $(20,684) thousand and $(17,843) thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions.

36. SEPARATELY DISCLOSED ITEMS

Except for those listed in Notes 7, 11 and 30 and Tables 1 to 10, there were no other separately disclosed items.

37. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group’s reportable segments were vehicle manufacturing, channel and others.

The following was an analysis of the Group’s revenue and results by reportable segment:

Vehicle manufacturing Channel Others Adjustment and eliminations Administration cost and remunerations of directors Other non-operating income and expenses, net Profit before income tax		Segment Revenues For the Nine Months Ended September 30 2021 2020 $ 23,164,205 $ 21,157,114 1,802,757 1,977,389 24,895 34,401 (282,517) (301,896) $ 24,709,340 $ 22,867,008		Segment Income or Loss	Segment Income or Loss
				For the Nine Months Ended September 30
		2021 $ 23,164,205 1,802,757 24,895 (282,517) $ 24,709,340		2021 $ 4,238,478 16,038 (13,052) (580) 4,240,884 (292,048) (35,327) $ 3,913,509	2020 $ 2,824,920 6,094 (11,534) (629) 2,818,851 (227,627) 163,848 $ 2,755,072

Intersegment transactions are determined by reference to market prices.

Segment profit represented the profit before tax earned by each segment without allocation of central administration costs and remuneration of directors, interest income, other income, gain (loss) on financial instruments at fair value through profit or loss, expected credit gain (loss), interest expense, other expense, gain (loss) on disposal of investments, net foreign exchange gain (loss), impairment loss and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

59 -

TABLE 1

CHINA MOTOR CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Note 1)	Ending Balance	Actual Amount Borrowed (Notes 1 and 5)	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reason for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower (Note 2)	Aggregate Financing Limit (Note 3)
													Item	Value
0	China Motor Corporation	Sino Diamond Motors	Other receivables	Yes	$ 600,000	$ 600,000	$ 600,000	0.9	Short-term financing	$ -	Working capital	$ -	-	$ -	$ 1,247,175	$ 8,314,497
1	Dongguan Huayi (Note 4)	Dongguan Huashun	Other receivables	Yes	86,100 (RMB 20,000 thousand)	-	-	-	Short-term financing	-	Working capital	-	-	-	1,247,175	8,314,497
2	Dongguan Huashun (Note 4)	Dongguan Huayi	Other receivables	Yes	86,100 (RMB 20,000 thousand)	-	-	-	Short-term financing	-	Working capital	-	-	-	1,247,175	8,314,497
3	Tianjin Hwarui (Note 4)	Tianjin Hwahong Dongguan Huayi Dongguan Huashun	Other receivables Other receivables Other receivables	Yes Yes Yes	43,050 (RMB 10,000 thousand) 86,100 (RMB 20,000 thousand) 86,100 (RMB 20,000 thousand)	- - -	- - -	- - -	Short-term financing Short-term financing Short-term financing	- - -	Working capital Working capital Working capital	- - -	- - -	- - -	1,247,175 1,247,175 1,247,175	8,314,497 8,314,497 8,314,497
4	Tianjin Hwahong (Note 4)	Tianjin Hwarui Dongguan Huayi Dongguan Huashun	Other receivables Other receivables Other receivables	Yes Yes Yes	86,100 (RMB 20,000 thousand) 86,100 (RMB 20,000 thousand) 86,100 (RMB 20,000 thousand)	- - -	- - -	- - -	Short-term financing Short-term financing Short-term financing	- - -	Working capital Working capital Working capital	- - -	- - -	- - -	1,247,175 1,247,175 1,247,175	8,314,497 8,314,497 8,314,497

Note 1: Converted at the exchange rate of RMB1:NT$4.305 as of September 30, 2021.

Note 2: The amount is 3% of the total shareholders’ equity of the latest financial statements of China Motor Corporation.

Note 3: The amount is 20% of the total shareholders’ equity of the latest financial statements of China Motor Corporation.

Note 4: Dongguan Huayi, Dongguan Huashun, Tianjin Hwarui and Tianjin Hwahong resolved to terminate the credit line to subsidiaries on June 30, 2021.

Note 5: Eliminated during the preparation of the consolidated financial statements.

60 -

TABLE 2

CHINA MOTOR CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/Guarantor	Endorsee/Guarantee Receiver	Endorsee/Guarantee Receiver	Limit on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Period (Note)	Outstanding Endorsement/ Guarantee at the End of the Period (Note)	Actual Amount Borrowed	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiary	Endorsement/ Guarantee Given by Subsidiary on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Company in Mainland China
		Name	Relationship
1	Sino Diamond Motors (Note 2)	Dongguan Huayi Tianjin Hwarui	Subsidiary Subsidiary	20% of the Corporation’s issued capital, $1,107,241 thousand 20% of the Corporation’s issued capital, $1,107,241 thousand	$ 86,100 (RMB 20,000 thousand) 86,100 (RMB 20,000 thousand)	$ - -	$ - -	$ - -	- -	50% of the Corporation’s issued capital, $2,768,102 thousand 50% of the Corporation’s issued capital, $2,768,102 thousand	No No	No No	Yes Yes

Note 1: Converted at the exchange rate of RMB1:NT$4.305 as of September 30, 2021.

Note 2: Sino Diamond Motors resolved to waive the endorsements/guarantee limit to its subsidiaries on June 30, 2021.

61 -

TABLE 3

CHINA MOTOR CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD SEPTEMBER 30, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name/Issuer of Marketable Security	Relationship with the Holding Company	Financial Statement Account		September	30, 2021		Note
				Number of Shares (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Fair Value
China Motor Corporation	Beneficiary certificates BlackRock Global Fund - World Technology Fund Yuanta Taiwan Top 50 ETF Fuh Hwa Smart Energy Bond Fund II Templeton Global Climate Change Fund Shares Shye Shyang Mechanical Industrial Myson Century, Inc. Taiwan Aerospace NORM Pacific Automation Corp. Carnival Com2B (Cayman) Corp. Principal guaranteed notes President Securities 100% Principal Note Corporate bonds Evergreen Marine Corporation YAGEO Corporation	- - - - Corporate director Corporate director - - - - - - -	Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at amortized cost - current Financial assets at amortized cost - non-current Financial assets at amortized cost - non-current	20 250 2,703 62 9,009 2,352 811 128 95 2,000 - - -	$ 44,914 34,262 30,201 27,064 645,017 12,138 11,610 1,635 1,383 - 42,925 99,910 99,798	- - - - 10.00 3.92 0.60 0.45 0.05 4.44 - - -	$ 44,914 34,262 30,201 27,064 645,017 12,138 11,610 1,635 1,383 - - - -

(Continued)

62 -

Holding Company Name	Type and Name/Issuer of Marketable Security	Relationship with the Holding Company	Financial Statement Account		September	30, 2021		Note
				Number of Shares (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Fair Value
Alliance Investment & Management Hwa Lin China Engine Kian Shen Ling Wei	Shares Samuel (Cayman) Co., Ltd. CARPLUS Auto Leasing Corporation T-Car Inc. Solidlite Corporation Site information service Phalanx Biotech Group Preference shares Rock Financial Risk Service Co., Ltd. Principal guaranteed notes President Securities 100% Principal Guaranteed Note Beneficiary certificates Hua Nan Phoenix Money Market Fund Beneficiary certificates Yuanta De-Li Money Market Fund Beneficiary certificates Prudential Financial Money Market Fund	- - - - - - - - - - -	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at amortized cost - non-current Financial assets at amortized cost - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	6,327 3,248 1,275 789 65 216 - - 4,880 1,519 939	$ 85,896 68,362 23,121 6,551 3,009 2,152 5,945 132,356 80,096 25,005 15,015	15.07 3.45 4.05 3.60 0.54 0.33 - - - - -	$ 85,896 68,362 23,121 6,551 3,009 2,152 - - 80,096 25,005 15,015

Note: Refer to Tables 6 and 7 for the information of investments in subsidiaries and associates.

(Concluded)

63 -

TABLE 4

CHINA MOTOR CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

(In Thousands of New Taiwan Dollars)

Seller/Buyer	Related Party	Relationship		Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase/ Sale	Amount	% to Total (Note 1)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total (Note 1)
China Motor Corporation (“CMC”) Sino Diamond Motors Kian Shen	Fortune Motors Shung Ye Motor Mitsubishi Motors Corp. Kian Shen (Note 2) Uni Auto Parts Manufacture ROC-Spicer Shye Shyang Mechanical Industrial COC (Note 2) Yue Ki Industrial Uni-Calsonic Shung Ye Motor Fortune Motors Mitsubishi Motors Corp. China Motor Corporation (Note 2) Yue Ki Industrial	Investee accounted for using the equity method Investee accounted for using the equity method Director of CMC Subsidiary Investee accounted for using the equity method Investee accounted for using the equity method Director of Shye Shyang Mechanical Industrial Subsidiary Investee accounted for using the equity method Investee accounted for using the equity method Investee accounted for using the equity method Investee accounted for using the equity method Director of CMC Parent company Investee accounted for using the equity method	Sale Sale Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Sale Sale Purchase Sale Purchase	$ (13,994,334) (2,605,452) 631,863 536,355 507,159 371,189 233,465 218,840 140,110 112,288 (771,742) (648,596) 396,788 (536,355) 130,734	(64) (12) 5 4 4 3 2 2 1 1 (49) (41) 59 (54) 16	Payment collected 15-90 working days after the goods have been delivered Payment collected 15-75 working days after the goods have been delivered Payment made 7 working days after the goods are shipped Payment made within 45 days after the month of delivery Payment made within 45 days after the month of delivery Payment made within 45 days after the month of delivery Payment made within 45 days after the month of delivery Payment made within 45 days after the month of delivery Payment made within 45 days after the month of delivery Payment made within 45 days after the month of delivery Payment collected 7-45 days after goods have been delivered Payment collected 15-45 days after goods have been delivered Payment made 7 working days after the goods are shipped Payment collected within 45 days after the month of delivery Net 95 days from the end of the month of when invoice is issued	$ - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - -	$ 1,098,703 277,587 (71,132) (85,459) (90,037) (81,157) (44,076) (46,480) (27,175) (21,945) 52,599 4,497 - 85,459 (61,982)	62 16 (4) (4) (5) (4) (2) (2) (1) (1) 73 6 - 48 (23)

(Continued)

64 -

Seller/Buyer	Related Party	Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase/ Sale	Amount	% to Total (Note 1)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total (Note 1)
COC China Engine	China Motor Corporation (Note 2) Yulon Yulon	Parent company Investee accounted for using the equity method Investee accounted for using the equity method	Sale Sale Sale	$ (218,840) (194,323) (126,268)	(26) (23) (72)	Payment collected within 45 days after the month of delivery Payment collected within 45 days after the month of delivery Payment collected within 45 days after the month of delivery	$ - - -	- - -	$ 46,480 33,369 31,608	19 14 92

Note 1: The proportion of the individual company’s total purchases (sales) or total receivables (payables).

Note 2: Eliminated during the preparation of the consolidated financial statements.

(Concluded)

65 -

TABLE 5

CHINA MOTOR CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL SEPTEMBER 30, 2021

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
China Motor Corporation	Fortune Motors Shung Ye Motor	Investee accounted for using the equity method Investee accounted for using the equity method	$ 1,098,703 277,587	20.51 12.85	$ - -	- -	$ 1,053,083 237,178	$ - -

66 -

TABLE 6

CHINA MOTOR CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Business and Product	Investment Amount	Investment Amount	As of September 30, 2021	As of September 30, 2021	As of September 30, 2021	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				September 30, 2021	December 31, 2020	Number of Shares	%	Carrying Amount
China Motor Corporation Kian Shen Kian Shen Investment Alliance Investment & Management Sino Diamond Motors	Yulon Kian Shen (Note 6) Fortune Motors Sino Diamond Motors (Note 6) Tokio Marine Newa Insurance (Note 1) Alliance Investment & Management (Note 6) Daimler Vans Hong Kong Ltd. ROC-Spicer CMI (Note 6) COC (Note 6) Hwa Wei (Note 6) Uni Auto Parts Manufacture Shung Ye Motor (Notes 2 and 4) China Engine (Note 6) Uni-Calsonic Yue Ki Industrial Co., Ltd. Tai-Ya Investment Hwa Chung Motors (Note 6) Kian Shen Investment (Note 6) KSIHK (Note 6) Greentrans Investment (Note 6) Hua-Yu (Note 6) China Engine (Note 6) Brilliant Insight International (Note 6) Shung Ye Motor (Note 3) Fortune Motors Looplus Service Technology Inc.	Miaoli, Taiwan Taoyuan, Taiwan Taipei, Taiwan Taipei, Taiwan Taipei, Taiwan Taipei, Taiwan Hong Kong Taoyuan, Taiwan Samoa Taoyuan, Taiwan British Virgin Islands Miaoli, Taiwan Taipei, Taiwan Taoyuan, Taiwan Miaoli, Taiwan Hsinchu, Taiwan Hong Kong Taoyuan, Taiwan British Virgin Islands Hong Kong Samoa Samoa Taoyuan, Taiwan Taoyuan, Taiwan Taipei, Taiwan Taipei, Taiwan Hsinchu, Taiwan	Manufacture and sale of vehicles The production of frame of heavy duty car and mold Sales and provision of after-sales service of vehicle Sales and provision of after-sales service of vehicle Property insurance Investment Investment Manufacture and sales of automobile parts Investment The production of mold, fixture and gauge of vehicle Overseas investment on production and service industries The production of mold, fixture and gauge of vehicle Sales and provision of after-sales service of vehicle Manufacture of automobile engine and parts Manufacture and sale of automobile parts Manufacture and sales of car components Investment Manufacture and sale of vehicles Investment Investment Investment Overseas investment on production and service industries Manufacture of automobile engine and parts Consulting and service Sales and provision of after-sales service of vehicle Sales and provision of after-sales service of vehicle Information software service industry and leasing	$ 3,835,585 344,800 2,132,826 2,192,724 955,941 1,200,030 2,011,363 683,032 1,402 412,125 1,202 109,813 391,142 625,978 105,806 109,396 81,004 328,900 328,888 US$ 25,907 thousand 344,369 1,489,334 11,000 22,000 180 24 22,984	$ 3,835,585 344,800 2,132,826 2,192,724 955,941 1,200,030 2,011,363 683,032 1,402 412,125 1,202 109,813 391,142 625,978 105,806 109,396 79,505 328,900 328,888 US$ 25,907 thousand 344,369 1,489,334 11,000 22,000 180 24 -	166,714,441 32,201,367 132,116,729 151,067,030 61,510,524 183,000,000 46,565,750 147,990 40,000 33,564,678 40,000 13,032,137 29,667,632 87,999,000 6,083,525 2,936,222 2,288,459 8,790,000 10,296,000 25,907,000 11,200,000 36,942,942 1,000 2,200,000 12,368 1,000 1,477,572	16.80 43.87 41.93 100.00 20.57 100.00 32.45 29.60 100.00 49.76 40.00 15.00 39.98 52.10 31.20 15.08 29.60 100.00 100.00 100.00 100.00 100.00 - 100.00 0.02 - 34.94	$ 7,907,098 2,132,622 4,804,303 1,371,879 2,312,980 1,277,417 3,063,752 544,734 270,004 797,133 178,632 356,082 410,065 451,470 131,440 89,729 68,551 81,695 4,114,627 RMB 928,766 thousand 210,774 834,874 5 5,682 225 18 21,459	$ 3,414,034 206,514 949,265 39,773 1,116,903 7,286 2,486,499 120,503 (197,347) 66,911 (328,889) 7,170 30,183 6,995 21,515 (76,726) 1,044 3,000 251,418 RMB 53,018 thousand (3,494) 26,193 6,995 (10,363) 30,183 949,265 (6,067)	$ 534,453 90,300 398,017 37,083 229,747 7,286 806,869 36,237 (197,347) 33,247 (131,555) 1,045 12,067 4,097 6,674 (11,582) 299 3,000 - - - - - - - - -	Investee accounted for using the equity method Subsidiary Investee accounted for using the equity method Subsidiary Investee accounted for using the equity method Subsidiary Investee accounted for using the equity method Investee accounted for using the equity method Subsidiary Subsidiary Subsidiary Investee accounted for using the equity method Investee accounted for using the equity method Subsidiary Investee accounted for using the equity method Investee accounted for using the equity method Investee accounted for using the equity method Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Investee accounted for using the equity method Investee accounted for using the equity method Investee accounted for using the equity method

(Continued)

67 -

Investor Company	Investee Company	Location	Main Business and Product	Investment Amount	Investment Amount	As of September 30, 2021	As of September 30, 2021	As of September 30, 2021	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				September 30, 2021	December 31, 2020	Number of Shares	%	Carrying Amount
Hua-Yu China Engine Brilliant Insight International CMI Hwa Chung Motors COC	Hwa-Lin (Note 6) Advance Power Investment (Notes 5 and 6) Looplus Service Technology Inc. Hwa Wei (Note 6) Ling Wei (Note 6) Greentrans (Note 6) Y. M. Hi-Tech (Note 6)	British Virgin Islands Mauritius Hsinchu, Taiwan British Virgin Island Taipei, Taiwan Taipei, Taiwan Taoyuan, Taiwan	Overseas investment on production and service industries Reinvestment and sales Information software service industry and leasing Overseas investment on production and service industries Sales of second-hand vehicle Sales of motorcycle and parts Steel cutting	US$ 37,229 thousand 59,456 16 1,428,503 58,000 10,000 46,250	US$ 37,229 thousand 59,456 - 1,428,503 31,000 10,000 46,250	33,392,942 3,750,000 1,000 60,000 6,308,397 1,000,000 4,250,000	100.00 100.00 0.02 60.00 100.00 100.00 85.00	$ 748,730 - 14 267,949 68,780 8,561 75,188	$ 27,692 - (6,067) (328,889) 4,832 (1,856) 10,948	$ - - - - - - -	Subsidiary Subsidiary Investee accounted for using the equity method Subsidiary Subsidiary Subsidiary Subsidiary

Note 1: During preparation of the consolidated financial statements, price making of $75,455 thousand from intra-group transaction had been eliminated.

Note 2: During preparation of the consolidated financial statements, loss on disposal of $22,538 thousand from intra-group transaction had been eliminated.

Note 3: During preparation of the consolidated financial statements, gain on disposal of $31 thousand from intra-group transaction had been eliminated.

Note 4: During preparation of the consolidated financial statements, sidestream transaction of $2,552 thousand had been eliminated.

Note 5: The Group’s board of directors resolved to dissolve Advance Power Machinery on December 10, 2020. As of September 30, 2021, the liquidation had not been completed.

Note 6: Eliminated during the preparation of the consolidated financial statements.

(Concluded)

68 -

TABLE 7

CHINA MOTOR CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Paid-in Capital (Note 1)	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2021 (Note 1)	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of September 30, 2021(Note 1)	Net Income (Loss) of the Investee (Notes 2 and 3)	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Notes 2 and 3)	Carrying Amount as of September 30, 2021 (Note 1)	Accumulated Repatriation of Investment Income as of September 30, 2021 (Note 1)
					Outward	Inward
South East (Fujian) Motor (Note 4) China Engine (Fujian) Fujian Benz Automotive Guangzhou NTN-YULON Drivetrain Fuzhou Fushiang Motor Industrial Xiangyang NTN-YULON Drivetrain Xiamen King-Long Kian-Shen Frame Beijing NTN-SEOHAN Driveshaft (Note 5) Jiangsu Greentrans Automotive Parts (Note 8) Fujian Spicer Shenyang Spicer	Manufacture and sales of industrial automation products Manufacture and sales of engines and engine parts Sales of industrial automation products Sales and manufacture of vehicles’ components Sales and manufacture of vehicles’ components Sales and manufacture of vehicles’ components Sales and manufacture of vehicles’ components The assembling and extra work of transmission shafts and other parts Manufacture and sales of parts of electronic motorcycles Manufacture of vehicles’ key components, drive axle assembly and engine parts series products Manufacture and sale of automobile transmission, shafts, mechanical transmission, shafts and components	$ 3,843,300 (US$ 138,000 thousand) 417,750 (US$ 15,000 thousand) 9,275,840 (EUR 287,000 thousand) 348,125 (US$ 12,500 thousand) 495,173 (US$ 17,780 thousand) 946,900 (US$ 34,000 thousand) 413,280 (RMB 96,000 thousand) 167,100 (US$ 6,000 thousand) 311,920 (US$ 11,200 thousand) 881,690 (RMB 204,806 thousand) 369,916 (RMB 85,927 thousand)	Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region Direct investment in mainland China Indirect investment in mainland China through a company registered in a third region	$ 960,825 (US$ 34,500 thousand) 208,875 (US$ 7,500 thousand) 1,505,013 (EUR 46,566 thousand) 139,250 (US$ 5,000 thousand) 78,955 (US$ 2,835 thousand) - 42,527 (US$ 1,527 thousand) 15,039 (US$ 540 thousand) 311,920 (US$ 11,200 thousand) 300,919 (US$ 10,805 thousand) 72,689 (US$ 2,610 thousand)	$ - - - - - - - - - - 1,504 (US$ 54 thousand)	$ - - - - - - - - - - -	$ 960,825 (US$ 34,500 thousand) 208,875 (US$ 7,500 thousand) 1,505,013 (EUR 46,566 thousand) 139,250 (US$ 5,000 thousand) 78,955 (US$ 2,835 thousand) - 42,527 (US$ 1,527 thousand) 15,039 (US$ 540 thousand) 311,920 (US$ 11,200 thousand) 300,919 (US$ 10,805 thousand) 74,192 (US$ 2,664 thousand)	$ (1,127,916) - 4,973,974 (EUR 148,079 thousand) 464,380 (RMB 107,074 thousand) (19,603) (RMB -4,520 thousand) 206,400 (RMB 47,591 thousand) (27,237) (RMB -6,280 thousand) - (3,494) 289,947 3,350 (US$ 119 thousand)	8.35 38.03 16.23 17.55 15.35 17.55 21.94 - 100.00 29.00 20.67	$ (282,203) - 807,033 (EUR 24,026 thousand) 185,752 (RMB 42,830 thousand) (6,861) (RMB -1,582 thousand) 82,560 (RMB 19,036 thousand) (13,618) (RMB -3,140 thousand) - (3,494) 84,056 693 (US$ 25 thousand)	$ 306,764 167,284 3,068,978 (EUR 94,956 thousand) 1,993,724 (RMB 463,118 thousand) 461,848 RMB 107,282 thousand) 1,023,008 (RMB 237,633 thousand) 192,666 (RMB 44,754 thousand) - 210,761 404,941 70,305 (US$ 2,524 thousand)	$ 724,741 (US$ 26,023 thousand) - 1,795,441 (EUR 55,552 thousand) 900,950 (RMB 209,280 thousand) 213,330 (RMB 49,554 thousand) 37,023 (RMB 8,600 thousand) - - - 134,949 (RMB 31,347 thousand) -

(Continued)

69 -

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital (Note 1)	Method of Investment	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2021 (Note 1)	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of September 30, 2021 (Note 1)	Net Income (Loss) of the Investee (Notes 2 and 3)	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Notes 2 and 3)	Carrying Amount as of September 30, 2021 (Note 1)	Accumulated Repatriation of Investment Income as of September 30, 2021 (Note 1)
							Outward	Inward
Fujian Rui Hua (Note 8) Tianjin Hwarui (Notes 7 and 8) Dongguan Huayi (Notes 6 and 8) Dongguan Huashun (Notes 6 and 8) Tianjin Hwahong (Notes 7 and 8)	Consultation and services Sales and maintenance of vehicle and parts Sales and maintenance of vehicle and parts Sales of vehicle and parts Sales of vehicle and parts		$ 94,690 (US$ 3,400 thousand) 223,357 (US$ 8,020 thousand) 123,933 (US$ 4,450 thousand) 107,625 (RMB 25,000 thousand) 129,150 (RMB 30,000 thousand)	Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region Indirect investment in mainland China through a company registered in a third region		$ 94,690 (US$ 3,400 thousand) 216,144 (US$ 7,761 thousand) 117,443 (US$ 4,217 thousand) - -	$ - - - - -	$ - - - - -	$ 94,690 (US$ 3,400 thousand) 216,144 (US$ 7,761 thousand) 117,443 (US$ 4,217 thousand) - -	$ (1,499) (9,967) (6) - (1,167) (RMB -269 thousand)	100.00 100.00 100.00 100.00 100.00	$ (1,499) (9,967) (6) - (1,167) (RMB -269 thousand)	$ 86,108 185,496 14,104 13,070 (RMB 3,036 thousand) 126,554 (RMB 29,397 thousand)	$ - - - - -

Accumulated Outward Remittance for Investment in Mainland China as of September 30, 2021 (Note 1)		Investment Amount Authorized by Investment Commission, MOEA (Note 1)			Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
$4,919,312 (US$122,596 thousand and EUR46,566 thousand)		$5,821,694 (US$193,409 thousand and EUR13,467 thousand)			$24,943,491

Note 1: Converted at the exchange rates on September 30, 2021: US$1=NT$27.85, RMB1=NT$4.305, EUR1=NT$32.32.
Note 2: Converted at the average exchange rates of the nine months ended September 30, 2021: US$1=NT$28.067, RMB1=NT$4.337, EUR1=NT$33.59.
Note 3: Except for Guangzhou NTN-YULON Drivertrain Co., Ltd., the investments accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were based on the associate’s financial statements that have not been reviewed.
Note 4: During preparation of the consolidated financial statements, the unrealized profit of $12,283 thousand had been eliminated.
Note 5: Beijing NTN-SEOHAN Driveshaft was disposed of in February 2021. The Group had applied to the Investment Commission, MOEA for a decrease in the amount of investments in mainland China on March 30, 2021 and received authorization letter of MOEAIC-Second No. 11000085360 on April 15, 2021.
Note 6:
Note 7:

In December 2020, Dongguan Huayi and Dongguan Huashun resolved to dissolve their respective companies. As of September 30, 2021, the liquidation had not been completed.

In July 2021, Tianjin Hwarui and Tianjin Hwahoug resolved to dissolve their respective companies. As of September 30, 2021, the liquidation had not been completed.

Note 8: Eliminated during the preparation of the consolidated financial statements.

(Concluded)

70 -

TABLE 8

CHINA MOTOR CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars)

No.	Company Name	Related Party	Relationship			Transaction Details
				Financial Statement Account	Amount	Payment Terms	% to Total Sales or Assets
0	China Motor Corporation	Sino Diamond Motors Kian Shen COC	Subsidiary Subsidiary Subsidiary	Other receivables Cost of goods sold Cost of goods sold	$ 600,000 536,355 218,840	The prices and payment terms were based on agreements. Transaction price was determined based on the market price, and the transaction terms are similar to that for transactions with non-related parties Transaction price was determined based on the market price, and the transaction terms are similar to that for transactions with non-related parties	1.12 2.17 0.89

Note 1: This table includes transactions for amounts over one hundred million.

Note 2: Eliminated during the preparation of the consolidated financial statements.

71 -

TABLE 9

CHINA MOTOR CORPORATION

INFORMATION OF MAJOR SHAREHOLDERS SEPTEMBER 30, 2021

Name of Major Shareholder	Shares	Shares
	Number of Shares	Ownership Percentage (%)
Tai Yuen Textile., Ltd. Mitsubishi Motors Corp. Yulon Motor Co., Ltd. Diamond Hosiery & Thread Co., Ltd.	139,435,815 77,507,309 44,592,177 37,438,652	25.19 14.00 8.05 6.76

Note: The table discloses shareholding information of shareholders whose shareholding percentage is 5% or above. The Taiwan Depository & Clearing Corporation calculates the total number of ordinary shares and special shares (including treasury shares) that have completed the dematerialized registration and delivery on the last business day of the quarter. The share capital reported in the consolidated financial statements and the actual number of shares that have completed the dematerialized registration and delivery may be different due to difference in the basis of calculation.

72 -

TABLE 10

CHINA MOTOR CORPORATION AND SUBSIDIARIES

FRAMEWORK OF INTERCOMPANY INVESTMENT RELATIONSHIPS AND PERCENTAGE OF SHARES HELD SEPTEMBER 30, 2021

==> picture [957 x 513] intentionally omitted <==

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

Parent Corporation
43.87% 52.10% 100.00% 100.00% 100.00% 100.00% 49.76%
Alliance CMI
Kian Shen China Engine Sino Diamond Hwa Chung COC
Investment & (Samoa)
Motors Motors
Management
(Note)
60.00% 100.00% 100.00% 85.00%
100.00% 100.00%
100.00% 100.00% 100.00%
Kian Shen Investment Advance Power Investment Hua-Yu (Samoa) Brilliant Insight International Investment Greentrans 40.00% Greentrans Ling Wei Y.M.
(British Virgin Hi-Tech
(Mauritius) Consultancy (Samoa)
Islands) Service
Co., Ltd.
100.00% 100.00% 100.00% 100.00%
KSIHK Fujian Rui Hwa-Lin Hwa Wei Holdings
(Hong Kong) Hua (British Virgin Jiangsu (British Virgin
Islands) Greentrans Islands)
100.00% 100.00%
Dongguan Huayi Tianjin Hwarui
100.00% 100.00%
Tianjin
Dongguan
Huashun Hwahong
----- End of picture text -----

Note: Since Sino Diamond Motors only holds 1 thousand shares of China Engine, the percentage of ownership is not disclosed.

73 -

AI assistant

CMC — Interim / Quarterly Report 2021

51979_rns_2021-12-29_06151d32-eebe-4228-aa5e-378cae59cb76.pdf

China Motor Corporation and Subsidiaries

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CHINA MOTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CHINA MOTOR CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

Effective Date New IFRSs Announced by IASB (Note 1)

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2) Subsidiaries included in the consolidated financial statements

1) Employee benefits

3) Onerous contracts

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

September 30, 2021

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

September 30, 2021

September 30, 2020

11. FINANCIAL INSTRUMENTS FOR HEDGING

September 30, 2021

December 31, 2020

12. NOTES AND ACCOUNTS RECEIVABLE, NET

13. INVENTORIES

14. SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS

Kian Shen and Kian Shen’s subsidiaries

15. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

1) Material associates

Yulon and Yulon’s subsidiaries

16. PROPERTY, PLANT AND EQUIPMENT

17. LEASE ARRANGEMENTS

c. Material leasing activities and terms

d. Other lease information

18. INVESTMENT PROPERTIES

19. BORROWINGS

a. Short-term borrowings

b. Long-term borrowings

20. OTHER PAYABLES

21. PROVISIONS

22. RETIREMENT BENEFIT PLANS

23. EQUITY

Ordinary shares

c. Retained earnings and dividend policy

d. Special reserve

e. Other equity items

2) Unrealized valuation gain on financial assets at FVTOCI

3) Cash flow hedges

24. REVENUE

Amount

e. Impairment loss

f. Gain on disposal of investments

26. INCOME TAXES

27. EARNINGS PER SHARE

Net Profit for the Period

Weighted Average Number of Ordinary Shares Outstanding (In Thousands of Shares)

28. DISPOSAL OF SUBSIDIARY

29. CAPITAL MANAGEMENT

30. FINANCIAL INSTRUMENTS

December 31, 2020

d. Financial risk management objectives and policies

CMC Interim / Quarterly Report 2021