Coxon — Annual Report 2021

Nov 15, 2021

Coxon Precise Industrial Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2021 and 2020 and Independent Auditors’ Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” (the “Criteria”) for the year ended December 31, 2021 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standards No. 10, “Consolidated Financial Statements”. Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we did not prepare a separate set of consolidated financial statements of affiliates for the reporting purposes under the Criteria.

Very truly yours,

COXON PRECISE INDUSTRIAL CO., LTD.

By:

HONG, HUAN-CHING Director

March 25, 2022

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INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Coxon Precise Industrial Co., Ltd.

Opinion

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

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC) and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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The key audit matters of the consolidated financial statements for the year ended December 31, 2021 are as follows:

Revenue Recognition of Triangular Trade

The operating revenue of Coxon Precise Industrial Co., Ltd. and its subsidiaries for the year ended December 31, 2021, was $3,840,940 thousand. Based on the consideration of the materiality of the financial statements and the auditing standard bulletin, the revenue recognition was preset as a significant risk. Partial revenue of Coxon Precise Industrial Co., Ltd. and its subsidiaries were generated from triangular trade occurred when production which manufactured in South China and shipped directly to customers. We considered the occurrence of revenue describes as above as a key audit matter. Refer to Notes 4 and 24 to the consolidated financial statements.

Our key audit procedures performed in respect of the operating revenue recognition included the following:

1. We understood, evaluated and tested the effectiveness of the design and implementation of internal control system that is related to revenue recognition.

2. We obtained the details of triangular trade for the year ended December 31, 2021 and we sampled and tested the selected transactions with their original purchase orders and delivery orders, and we compared the amounts to their respective accounts; in addition, we also sampled and tested delivery orders and relative authenticationsin South China within to ensure the occurrence of the sales.

3. We obtained the sales returns details of triangular trade for the subsequent period, sampled and tested the related sales return supporting documents and reviewed the reasonableness of the occurrence of such sales returns.

Other Matters

We have also audited the parent company only financial statements of Coxon Precise Industrial Co., Ltd. as of and for the years ended December 31, 2021 and 2020 on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IFRS, IAS, IFRIC and SIC endorsed and issued into effect by the FSC of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence users economic decisions taken on the basis of these consolidated financial statements.

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

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

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

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

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2021 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Ming-Chung Hsieh and Pan-Fa Wang.

Deloitte & Touche Taipei, Taiwan Republic of China March 25, 2022

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 audit such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ 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’ report and consolidated financial statements shall prevail.

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COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 6 and 31) Financial assets at fair value through profit or loss - current (Notes 7 and 31) Financial assets at fair value through other comprehensive income - current (Notes 8 and 31) Financial assets at amortized cost - current (Notes 9, 31 and 33) Trade receivables (Notes 10, 24 and 31) Trade receivables from related parties (Notes 10, 24, 31 and 32) Other receivables (Notes 10, 31 and 32) Current tax assets (Note 26) Inventories (Note 11) Prepayments (Note 34) Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Notes 8 and 31) Investments accounted for using the equity method (Note 13) Property, plant and equipment (Notes 14 and 33) Right-of-use assets (Note 15) Intangible assets (Note 16) Deferred tax assets (Note 26) Prepayments for equipment (Note 34) Other non-current assets (Notes 10 and 17) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Contract liabilities - current (Note 24) Notes and trade payables (Notes 19 and 31) Payables on equipment (Note 31) Other payables (Notes 20 and 31) Provisions - current (Note 21) Lease liabilities - current (Notes 15 and 31) Current portion of long-term borrowings (Notes 18, 29, 31 and 33) Other current liabilities (Note 20) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Notes 18, 29, 31 and 33) Deferred tax liabilities (Note 26) Lease liabilities - non-current (Notes 15 and 31) Net defined benefit liabilities - non-current (Note 22) Other non-current liabilities (Note 20) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 23) Share capital Ordinary shares Capital surplus Accumulated deficits Other equity Total equity attributable to owners of the Company NON-CONTROLLING INTERESTS Total equity TOTAL		2021 Amount % $ 657,756 17 13,024 - 53,355 2 40,000 1 1,290,646 33 3,927 - 90,236 2 26 - 463,715 12 105,909 3 15 - 2,718,609 70 24,101 1 2,784 - 940,405 24 166,345 4 11,551 - - - 6,592 - 16,904 1 1,168,682 30 $ 3,887,291 100 $ 31,492 1 873,192 22 21,156 1 404,379 10 14,949 - 57,618 2 - - 855 - 1,403,641 36 - - 349 - 89,172 2 32,819 1 3,820 - 126,160 3 1,529,801 39 1,216,622 31 2,161,467 56 (233,552) (6) (796,424) (20) 2,348,113 61 9,377 - 2,357,490 61 $ 3,887,291 100		2020
				Amount % $ 787,077 17 26,189 1 120,204 3 13,400 - 1,281,435 28 4,573 - 49,184 1 5,251 - 334,439 7 153,637 4 134 - 2,775,523 61 220,109 5 3,805 - 1,239,768 27 246,264 5 15,880 - 23,726 1 15,800 - 25,478 1 1,790,830 39 $ 4,566,353 100 $ 17,998 - 757,432 17 51,346 1 473,482 10 17,001 - 127,787 3 37,500 1 2,880 - 1,485,426 32 162,500 4 5,529 - 113,537 3 45,228 1 17,125 - 343,919 8 1,829,345 40 1,216,622 27 2,564,158 56 (402,691) (9) (688,275) (15) 2,689,814 59 47,194 1 2,737,008 60 $ 4,566,353 100

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

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COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Losses Per Share)

OPERATING REVENUE (Notes 24, 32 and 38) OPERATING COSTS (Notes 11 and 25) OPERATING PROFIT OPERATING EXPENSES (Note 25) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit gain Total operating expenses LOSS FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Note 25) Interest income Other gains and losses Gain on disposal of property, plant, and equipment Finance costs Share of loss of associates and joint ventures Total non-operating income and expenses LOSS BEFORE INCOME TAX INCOME TAX EXPENSE (Note 26) NET LOSS FOR THE YEAR OTHER COMPREHENSIVE INCOME (LOSS) (Notes 22, 23 and 26) Items that subsequently to profit or loss: Actuarial loss arising from defined benefit plans Unrealized (loss) gain on investments in equity instruments at fair value through other comprehensive income Income tax relating to items that will not be reclassified subsequently to profit or loss		2021	% 100 (100) - (4) (8) - - (12) (12) - 2 3 (1) - 4 (8) - (8) - (2) -		2020
		Amount $ 3,840,940 (3,832,007) 8,933 (141,097) (326,816) (8,785) 1,947 (474,751) (465,818) 3,478 73,999 126,159 (23,329) (997) 179,310 (286,508) (7,552) (294,060) 1,434 (69,053) (10,740)			Amount % $ 3,322,590 100 (3,311,774) (100) 10,816 - (131,608) (4) (335,003) (10) (15,321) - 12,100 - (469,832) (14) (459,016) (14) 2,605 - 44,191 1 13,831 1 (23,578) (1) (1,115) - 35,934 1 (423,082) (13) (1,392) - (424,474) (13) 1,168 - 99,597 3 (233) - (Continued)

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COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Losses Per Share)

Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations Income tax relating to item that may be reclassified subsequently to profit or loss Other comprehensive loss for the year, net of income tax TOTAL COMPREHENSIVE LOSS FOR THE YEAR NET LOSS ATTRIBUTABLE TO: Owners of the Company Non-controlling interests TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO: Owners of the Company Non-controlling interests LOSSES PER SHARE (Note 27) From continuing operations Basic		2021 Amount % $ 6,509 - - - (71,850) (2) $ (365,910) (10) $ (270,318) (7) (23,742) (1) $ (294,060) (8) $ (341,701) (9) (24,209) (1) $ (365,910) (10) $ (2.22)		2020
				Amount % $ (16,117) (1) (142,106) (4) (57,691) (2) $ (482,165) (15) $ (403,626) (12) (20,848) (1) $ (424,474) (13) $ (463,064) (14) (19,101) (1) $ (482,165) (15) $ (3.32)
		$		$
		$		$
		$		$
		$		$
		$		$

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

(Concluded)

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COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

BALANCE AT JANUARY 1, 2020 Appropriation of the 2019 earnings Legal reserves used to compensate deficit Special reserves used to compensate deficit Capital surplus used to compensate deficit Changes in non-controlling interest Net loss for the year ended December 31, 2020 Other comprehensive income (loss) or the year ended December 31, 2020, net of income tax Total comprehensive income (loss) for the year ended December 31, 2020 BALANCE AT DECEMBER 31, 2020 Capital surplus used to compensate deficit Disposal of subsidiaries Net loss for the year ended December 31, 2021 Other comprehensive income (loss) or the year ended December 31, 2021, net of income tax Total comprehensive income (loss) for the year ended December 31, 2021 Disposals of investments in equity instruments designated as at fair value through other comprehensive BALANCE AT DECEMBER 31, 2021		Equity Attributable to Owners of the Company		Total Non-controlling Interests $ 3,152,878 $ 75,871 - - - - - - - (9,576) (403,626) (20,848) (59,438) 1,747 (463,064) (19,101) 2,689,814 47,194 - - - (13,608) (270,318) (23,742) (71,383) (467) (341,701) (24,209) - - $ 2,348,113 $ 9,377	Total Equity $ 3,228,749 - - - (9,576) (424,474) (57,691) (482,165) 2,737,008 - (13,608) (294,060) (71,850) (365,910) - $ 2,357,490
	Ordinary Shares Shares Issued (In Thousands) Share Capital Capital Surplus 121,622 $ 1,216,622 $ 2,588,754 - - - - - - - - (24,596) - - - - - - - - - - - - 121,622 1,216,622 2,564,158 - - (402,691) - - - - - - - - - - - - - - - 121,622 $ 1,216,622 $ 2,161,467	Retained Earnings Legal Reserve Special Reserve Accumulated Deficits $ 211,361 $ 354,252 $ (590,209) (211,361) - 211,361 - (354,252) 354,252 - - 24,596 - - - - - (403,626) - - 935 - - (402,691) - - (402,691) - - 402,691 - - - - - (270,318) - - (9,306) - - (279,624) - - 46,072 $ - $ - $ (233,552)	Other Equity Exchange Differences on Translating Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Foreign Operations Comprehensive Income $ (568,419) $ (59,483) - - - - - - - - - - (159,970) 99,597 (159,970) 99,597 (728,389) 40,114 - - - - - - 6,976 (69,053) 6,976 (69,053) - (46,072) $ (721,413) $ (75,011)

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

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COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Loss before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss recognized on trade receivables Net gain on fair value changes of financial assets and liabilities as at fair value through profit or loss Finance costs Interest income Dividend income Share of loss of associates and joint ventures Gain on disposal of property, plant and equipment Gain on disposal of investments Impairment (reversal gain) loss recognized on financial assets Impairment loss recognized on property, plant and equipment Reversal of inventories Gain on disposal of right-of use assets Unrealized gain on the foreign currency exchange Gain on modification of lease Changes in operating assets and liabilities Notes and trade receivables Other receivables Inventories Prepayments Other current assets Contract liabilities Notes and trade payables Other payables Provisions Other current liabilities Deferred revenue Net defined benefit liabilities Cash (used in) generated from operations Interest received Dividends received Interest paid Income tax received (paid) Net cash (used in) generated from operating activities	2021 $ (286,508) 315,200 5,698 (1,947) - 23,329 (3,478) (3,923) 997 (126,159) (9,306) (14,071) 87,737 (46,571) - (14,138) (7,136) (32,939) 2,804 (80,029) 44,579 119 13,494 129,095 (40,082) (1,621) (1,120) (51) (10,975) (57,002) 3,441 3,923 (24,849) 5,479 (69,008)	2020 $ (423,082) 376,281 9,168 (12,100) (560) 23,578 (2,605) (45) 1,115 (13,831) (1,865) 16,519 28,349 (21,167) (3,641) (31,126) (2,694) (276,708) (3,347) 100,773 48,066 (56) (35,772) 243,124 17,603 (1,964) 1,653 (259) (473) 34,934 3,165 45 (38,460) 21,422 21,106 (Continued)

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COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Purchase of financial assets at amortized cost Proceeds from disposal of financial assets at amortized cost Purchase of financial assets at fair value through profit or loss Proceeds from sale of financial assets at fair value through profit or loss Net cash inflow on disposal of subsidiaries Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Payments for intangible assets Increase in prepayments for equipment Proceeds from disposal of right-of-use assets Net cash generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term borrowings Repayments of long-term borrowings Increase in guarantee deposits received Decrease in guarantee deposits received Repayment of the principal portion of lease liabilities Changes in non-controlling interests Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	2021 $ (16,132) 204,928 (40,000) 13,400 (100,546) 113,550 20,192 (113,988) 203,458 (274) (1,691) - - 282,897 200,000 (400,000) - (6,961) (125,057) - (332,018) (11,192) (129,321) 787,077 $ 657,756	2020 $ (19,171) - - 6,506 - 12,848 58,894 (74,717) 44,492 (98) (3,303) (5,366) 13,652 33,737 272,581 (272,581) 10,197 - (138,258) (9,576) (137,637) (7,430) (90,224) 877,301 $ 787,077

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

(Concluded)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

1. GENERAL INFORMATION

Coxon Precise Industrial Co., Ltd. (the “Company”) was incorporated in the Republic of China (ROC) in June 1989. The Company mainly manufactures, packages and sells all kinds of molds, metal and plastic components and makes relevant investments.

The Company’s shares were previously listed on the Taipei Exchange (formerly the Taiwan GreTai Securities Market) since January 2008 and has now been listed on the Taiwan Stock Exchange (TWSE) since October 2009.

The consolidated financial statements of the Company and its subsidiaries, collectively referred to as the “Group”, are presented in the Company’s functional currency, New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the board of directors and authorized for issue on March 25, 2022.

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)

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Group’s accounting policies.

• b. The IFRSs endorsed by Financial Supervisory Commission (FSC) for application starting from 2022

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

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• 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 - 13 - 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. As of the date the consolidated financial statements were reported to the board of directors for issue, the Corporation and its subsidiaries have assessed that the application of other standards and interpretations will not have a material impact on the Corporation and its subsidiaries’ financial position and financial performance.

As of the date the consolidated financial statements were authorized for issue, the Group has assessed that the application of other standards and interpretations will not have a material 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

New IFRSs Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - Comparative Information” Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” Amendments to IAS 8 “Definition of Accounting Estimates” Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

Effective Date Announced by IASB (Note 1)

To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 (Note 2) January 1, 2023 (Note 3) January 1, 2023 (Note 4)

• 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.

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As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other 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

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs as endorsed and issued into effect by the FSC.

• 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 an 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 an asset or liability.

• c. Classification of current and non-current assets and liabilities

Current assets include:

• 1) Assets held primarily for the purpose of trading;

• 2) Assets expected to be realized within 12 months after the reporting period; and

• 3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

• 1) Liabilities held primarily for the purpose of trading;

• 2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and

• 3) Liabilities for which the Group does not have an unconditional right to defer settlement for at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Assets and liabilities that are not classified as current are classified as non-current.

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d. Basis of consolidation

Principles for preparing consolidated financial statements

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (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 dates of acquisitions up to the effective dates of disposals, 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 Company.

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 Company 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 Company.

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.

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition of an investment in an associate or a jointly controlled venture.

See Note 12, Tables 5 and 6 for detailed information on subsidiaries (including the percentages of ownership and main businesses).

e. Foreign currencies

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction (i.e., not retranslated).

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For the purpose of presenting consolidated financial statements, the functional currencies of the Group and its foreign operations (including subsidiaries, associates, joint ventures and branches in other countries that use currencies which are different from the currency of the Company) are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the year. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

On the disposal of a foreign operation (i.e., a disposal of the Company’s entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation are reclassified to profit or loss.

In relation to a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to the non-controlling interests of the subsidiary but is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

f. Inventories

Inventories consist of raw materials, supplies, finished goods and work in progress and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

• g. Investments in associates

An associate is an entity over which the Group has significant influence and which is neither a subsidiary nor an interest in a joint venture.

The Group uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. The Group also recognizes the changes in the Group’s share of the equity of associates attributable to the Group.

Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

• 16 -

When the Company subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group’s proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates and joint ventures accounted for using the equity method. If the Group’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

When the Group’s share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any assets, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate and the joint venture attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate and the joint venture. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities. If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Group continues to apply the equity method and does not remeasure the retained interest.

When a group entity transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group’ consolidated financial statements only to the extent that interests in the associate are not related to the Group.

h. Property, plant and equipment

Property, plant and equipment including assets held under finance leases and bearer plants are measured at cost less accumulated depreciation and accumulated impairment loss.

Depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

• 17 -

• i. Intangible assets

• 1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

• 2) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

• j. Impairment of property, plant and equipment, right-of-use asset, intangible assets, and assets related to contract costs

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use asset, intangible assets, and assets related to contract costs to determine whether there is any indication that those assets have suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

Before the Group recognizes an impairment loss from assets related to contract costs, any impairment loss on inventories, property, plant and equipment and intangible assets related to the contract applicable under IFRS 15 shall be recognized in accordance with applicable standards. Then, impairment loss from the assets related to the contract costs is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Group expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services and which have not been recognized as expenses. The assets related to the contract costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

• k. Financial instruments

Financial assets and financial liabilities are recognized when the Group entity becomes a party to the contractual provisions of the instruments.

• 18 -

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to an acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

• a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

• i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such a financial asset is mandatorily classified or designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss does not incorporate any dividends or interest earned on such a financial asset.

• ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

• i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

• ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables at amortized cost, and financial assets at amortized cost - current, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

• i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit adjusted effective interest rate to the amortized cost of such financial assets; and

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• ii) Financial assets that are not credit impaired on purchase or origination but have subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

• b) Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables), investments in debt instruments that are measured at FVTOCI, lease receivables, as well as contract assets.

The Group always recognizes lifetime expected credit losses (ECLs) for trade receivables, lease receivables and contract assets. For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and the carrying amounts of such financial assets are not reduced.

• 20 -

• c) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss.

2) Equity instruments

Debt and equity instruments issued by a group entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments issued by a group entity are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company’s own equity instruments.

• 3) Financial liabilities

• a) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method:

• b) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

• l. Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

m. Revenue recognition

The Group identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

For contracts where the period between the date on which the Group transfers a promised good or service to a customer and the date on which the customer pays for that good or service is one year or less, the Group does not adjust the promised amount of consideration for the effects of a significant financing component.

• 21 -

Revenue from the sale of goods

Revenue from the sale of goods comes from manufacturing, processing, and sales of molds, a parts and plastic molding fixtures. Sales of goods are recognized as revenue when the goods are shipped since it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables are recognized concurrently. Receipts in advance are recognized as contract liabilities before the goods are shipped.

The Group does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

n. Leases

At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

For a contract that contains a lease component and non-lease components, the Group allocates the consideration in the contract to each component on the basis of the relative stand-alone price and accounts for each component separately.

1) The Group as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

Variable lease payments that do not depend on an index or a rate are recognized as income in the periods in which they are incurred.

When a lease includes both land and building elements, the Group assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated between the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of a contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably between the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

2) The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

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Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate, residual value guarantees, the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and payments of penalties for terminating a lease if the lease term reflects such termination, less any lease incentives receivable. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in the amounts expected to be payable under a residual value guarantee, a change in the assessment of an option to purchase an underlying asset, or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

o. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than that which is stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

• p. Employee benefits

• 1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

• 2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

• 23 -

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost, including current service cost and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling, and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

• 3) Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plans except that remeasurement is recognized in profit or loss.

• 4) Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Group can no longer withdraw the offer of the termination benefit and when the Group recognizes any related restructuring costs.

q. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Law, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

• 2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

• 24 -

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

• 3) Current and deferred taxes for the year

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

5. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations 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 economic implications of the COVID-19 when making its critical accounting estimates. 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.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents (investments with original maturities of 3 months or less) Time deposits		**December 31 **	**December 31 **
		2021 $ 579 427,737 229,440 $ 657,756	2020 $ 930 786,147 - $ 787,077

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7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets mandatorily classified as at FVTPL-current Structured deposits		December	31
		2021 $ 13,024	2020 $ 26,189

The Group entered into a short-term structured time deposit contract with bank. The structured time deposit contract includes an embedded derivative instrument which is not closely related to the host contract. The entire contract was assessed and mandatorily classified as at FVTPL since it contained a host that is an asset within the scope of IFRS 9.

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Investments in Equity Instruments at FVTOCI

Current Foreign investments Listed shares and emerging market shares Ordinary shares - Fuji Seiki Co., Ltd. Unlisted shares Ordinary shares - Halo Neuro Inc. Ordinary shares - Yougang Electronic Technology (Shanghai) Co., Ltd. Non-current Domestic investments Unlisted shares Ordinary shares - Simpla Biotech Co., Ltd. Ordinary shares - Cimforce International Limited Ordinary shares - Kin Tin Optotronic Co., Ltd. Foreign investments Unlisted shares Ordinary shares - Toyo Precision Appliance (Kunshan) Co., Ltd. Ordinary shares - CGK International Co., Ltd. Ordinary shares - PT. Fuji Seiki Indonesia		December 31	December 31
		2021 $ 53,355 - - $ 53,355 $ 9,204 4,166 - - 10,731 - $ 24,101	2020 $ 120,204 - - $ 120,204 $ 12,197 - - 189,539 9,490 8,883 $ 220,109

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. These investments in equity instruments were classified as designated these investment as at FVTOCI.

• 26 -

9. FINANCIAL ASSETS AT AMORTIZED COST

Current Domestic investments Time deposits with original maturities of more than three months Bank deposits pledged as collateral		December	31
		2021 $ 40,000 - $ 40,000	2020 $ - 13,400 $ 13,400

As of December 31, 2021, the annual interest rate of time deposits with original maturities of more than three months is 0.52%-0.795%.

Refer to Note 33 for information relating to bank deposits pledged as collateral.

10. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

Notes receivables Unrelated parties Less: Allowance for impairment loss Trade receivables Unrelated parties Less: Allowance for impairment loss Related parties Other receivables Receivables from disposal of subsidiaries Others Related parties Less: Allowance for impairment loss		December 31	December 31
		2021 $ - - $ - $ 1,309,811 (19,165) $ 1,290,646 $ 3,927 $ 75,900 14,336 - - $ 90,236	2020 $ 39 - $ 39 $ 1,288,770 (7,374) $ 1,281,396 $ 4,573 $ 16,519 48,106 1,078 (16,519) $ 49,184

a. Trade receivables at amortized cost

In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk was significantly reduced.

• 27 -

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 using a provision matrix prepared by reference to the past default experience of the customer, the customer’s current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlook. 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.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables based on the Group’s provision matrix.

December 31, 2021

Gross carrying amount Loss allowance (lifetime ECL) Amortized cost				Trade Rece	ivables		Total $ 1,313,738 (19,165) $ 1,294,573		Overdue Receivables
		Not Past Due $ 1,236,840 (7,274) $ 1,229,566	0-30 Days $ 51,248 (961) $ 50,287	31-90 Days $ 10,082 (932) $ 9,150	91-180 Days O $ 6,515 (945) $ 5,570	ver 180 Days $ 9,053 (9,053) $ -		O	ver 365 Days $ 1,451 (1,451) $ -

December 31, 2020

Gross carrying amount Loss allowance (lifetime ECL) Amortized cost				Trade Rece	ivables		Total $ 1,293,343 (7,374) $ 1,285,969		Overdue Receivables
		Not Past Due $ 1,242,724 (4,288) $ 1,238,436	0-30 Days $ 28,785 (828) $ 27,957	31-90 Days $ 13,286 (530) $ 12,756	91-180 Days O $ 6,968 (148) $ 6,820	ver 180 Days $ 1,580 (1,580) $ -		O	ver 365 Days $ 17,595 (17,595) $ -

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Add: Impairment losses recognized Less: Amounts written off Less: Net remeasurement of loss allowance Less: Disposal of subsidiaries Foreign exchange gains and losses Balance at December 31	For the Year Ended December 31	For the Year Ended December 31
	2021 Trade Receivables Overdue Receivables $ 7,374 $ 17,595 14,056 - - - - (16,003) (2,117) - (148) (141) $ 19,165 $ 1,451	2020
		Trade Receivables Overdue Receivables $ 14,679 $ 24,256 - - (2,172) - (5,214) (6,886) - - 81 225 $ 7,374 $ 17,595

• 28 -

b. Other receivables

• 1) In 2019, the Group sold out 100% voting shares of Teckyork Enterprise Co., Ltd. and its subsidiary Shanghai Teckyork Enterprise Co., Ltd. In 2020, for the receivables $16,519 thousand that had not been collected and thus evaluated to be uncollected, allowance for impairment loss was recognized in full amounts. In 2021, $14,071 thousand has been collected, while the remaining uncollected amounts of $2,448 thousand has been totally written-off.

• 2) In 2021, the Group sold out 100% voting shares of Dong Guan Cheng Da Metal Product Company Limited. $18,975 thousand has been collected as of December 31, 2021. $75,900 thousand would be collected after the disposal process is completed and tax is paid off. Please refer to Note 28.

• 3) Others are mainly receivables to employee reimbursement.

• 4) The movements of the loss allowance of other receivables were as follows:

Balance at January 1 Add: Impairment loss recognized Less: Reversal impairment loss Less: Actual write-offs for the year Balance at December 31	2021 $ 16,519 - (14,071) (2,448) $ -	2020 $ - 16,519 - - $ 16,519

11. INVENTORIES

Raw materials Materials Work in progress (including molds) Semifinished products Finished goods		**December 31 **	**December 31 **
		2021 $ 46,893 16,961 177,910 22,955 198,996 $ 463,715	2020 $ 23,059 16,093 154,170 24,959 116,158 $ 334,439

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2021 and 2020 was $3,832,007 thousand and $3,311,774 thousand, respectively.

The loss allowance of inventory as of December 31, 2021 and 2020 was $240,690 thousand and $256,182 thousand, respectively.

The cost of goods sold including the amounts of written-off the inventory and recognized as expenses were as follows:

Inventory reversed Unallocated production overhead	For the Year Ended	For the Year Ended	December 31
		2021 $ (46,571) 243,433 $ 196,862	2020 $ (21,167) 236,015 $ 214,848

• 29 -

12. SUBSIDIARY

• a. Subsidiary included in consolidated financial statements

Investor Investee Main Business Coxon Precise Industrial Co., Ltd. Coxon Industry Ltd. Global investing activities Coxon Industrial Ltd. Dong Guan Chensong Plastic Co., Ltd. Manufacturing and sale of nonmetal molding and automotive hardware Coxon Precise Industrial Co., Ltd. Sun Can International Ltd. Global investing activities Sun Can International Ltd. Sinxon Plastic (Dong Guan) Ltd. Manufacturing and sale of nonmetal molding and automotive hardware Coxon Precise Industrial Co., Ltd. Cheng Yee Enterprise Ltd. Global investing activities Cheng Yee Enterprise Ltd. Coxon Precise International Ltd. Global investing activities Cheng Yee Enterprise Ltd. Hang Yuan Enterprise Ltd. Global investing activities Hang Yuan Enterprise Ltd. Coxon Industry (Changshu) Co., Ltd. Manufacturing and sale of nonmetal molding, precision plastic injection parts, related semi-finished goods and components Hang Yuan Enterprise Ltd. Changshu Huaxon Industry Co., Ltd. Leasehold estate Cheng Yee Enterprise Ltd. Coxon Medical Limited Global investing activities Coxon Medical Limited Shanghai Coxon Medical Limited Manufacturing of medical materials Coxon Precise Industrial Co., Ltd. Cheng Da Industry Ltd. Global investing activities Cheng Da Industry Ltd. Dong Guan Cheng Da Metal Product Company Limited Manufacturing optical instrument, electronic products and plastic products Coxon Precise Industrial Co., Ltd. Plenty Link Technology Co., Ltd. Global investing activities Plenty Link Technology Co., Ltd. Dongguan Shuang-Ying Photoelectric Technology Co., Ltd. Manufacturing of optical instrument and electronic components Plenty Link Technology Co., Ltd. Shuang-Ying Science and Technology, Ltd. Manufacturing of optical instrument and electronic components

Proportion of Ownership (%) December 31 2021 2020 Note 100 100 - 100 100 - 100 100 - 100 100 - 100 100 - - 100 2 100 100 - 100 100 - 100 100 - - 80 1 - 100 1 100 100 - - 100 3 65 65 - 100 100 - 100 100 -

• Note 1: Coxon Medical Limited and its subsidiary were disposed on April 29, 2021. Please refer to Note 28.

• Note 2: Coxon Precise Industrial Co., Ltd. was liquidated on August 17, 2021.

• Note 3: Dong Guan Cheng Da Metal Product Company Limited was disposed on November 30, 2021. Please refer to Note 28.

• b. Subsidiary not included in consolidated financial statements: None

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in Associates

Associates that are not individually material Wuhan Resin-Hill Co., Ltd. Guangdong Tonly Precision Structure Co., Ltd. Siix Coxon Precision Phils., Inc. Name of Associate Wuhan Resin-Hill Co., Ltd. Guangdong Tonly Precision Structure Co., Ltd. Siix Coxon Precision Phils., Inc.		December	31
		2021 $ 2,784 - - $ 2,784 December	2020 $ 3,805 - - $ 3,805 31
		2021 40% - -	2020 40% - 45%

• 30 -

Refer to Table 5 “Information on Investees” and Table 6 “Information on Investments in Mainland China” for the nature of activities, principal places of business and countries of incorporation of the associates.

The liquidation process of Guanddong Tonly Precision Structure Co., Ltd. was completed on June 29, 2020. Siix Coxon Precision Phils., Inc. was disposed on June 16, 2021.

The Group owns less than 50% shares of Wuhan Resin-Hill Co., Ltd., but it is the only largest shareholder. As it holds less than half of board seats, the Group only has significant influence rather than control over the investee, which is thus treated as an associate.

The summarized financial information in respect of the Group’s associates is set out below:

Total assets Total liabilities Revenue Loss for the year		December 31	December 31
	2021 $ 21,253 $ 14,293 **For the Year Ended **		2020 $ 287,238 $ 355,933 **December 31 **
		2021 $ 49,135 $ (6,395)	2020 $ 272,313 $ (67,302)

Investments accounted for using the equity method as well as the share of profit or loss and other comprehensive gains and losses of the Group during 2021 and 2020, were calculated based on the financial reports without audited by the auditor. However, management of the Group believed that the 2021 and 2020 annual financial reports of the above subsidiaries would not be subject to major adjustments if they were verified by the auditor.

14. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2021 Additions Disposals Disposals of subsidiaries Reclassification Effect of exchange rate changes Balance at January 1, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expense Impairment losses (Reversal) Disposals Disposals of subsidiaries Effect of exchange rate changes Balance at January 1, 2021 Carry amounts value at December 31, 2021 Cost Balance at January 1, 2020 Additions Disposals Reclassification Effect of exchange rate changes Balance at January 1, 2020	Freehold Land $ 79,244 - - - - - $ 79,244 $ 18,812 - - - - - $ 18,812 $ 60,432 $ 79,244 - - - - $ 79,244	Buildings $ 1,165,239 - - - - (8,609) $ 1,156,630 $ 650,934 42,995 - - - (5,885) $ 688,044 $ 468,586 $ 1,157,358 214 - - 7,667 $ 1,165,239	Machinery $ 3,028,851 81,755 (524,733 ) (35,464 ) 1,795 (16,120) $ 2,536,084 $ 2,561,153 103,639 3,695 (482,374 ) (31,249 ) (5,493) $ 2,149,371 $ 386,713 $ 3,306,113 93,171 (409,087 ) 4,544 34,110 $ 3,028,851	Transportation Equipment $ 42,357 1,501 (5,817 ) (3,788 ) - (159) $ 34,094 $ 36,294 1,606 - (5,263 ) (1,975 ) (127) $ 30,535 $ 3,559 $ 43,509 - (1,537 ) - 385 $ 42,357	Office Equipment $ 51,686 554 (6,841 ) (722 ) - (221) $ 44,456 $ 48,427 1,113 - (6,833 ) (693 ) (210) $ 41,804 $ 2,652 $ 51,721 707 (657 ) - (85) $ 51,686	Leasehold Improvement $ 592,863 1,708 162,958 ) (13,407 ) - (8,151) $ 410,055 $ 450,107 22,210 83,740 (130,763 ) (9,885 ) (6,600) $ 408,809 $ 1,246 $ 591,574 8,400 - 999 (8,110) $ 592,863	Other Equipment $ 530,520 7,135 (209,110 ) (170,194 ) - (3,786) $ 154,565 $ 486,719 18,766 302 (200,927 ) (157,155 ) (4,357) $ 137,348 $ 17,217 $ 537,019 3,512 (16,693 ) 522 6,160 $ 530,520	Construction in Progress Total $ 1,454 $ 5,492,214 353 93,006 - (959,459 ) - (223,575 ) (1,795 ) - (12) (37,058) $ - $ 4,415,128 $ - $ 4,252,446 - 190,329 - 87,737 - (832,160 ) - (200,957 ) - (22,672) $ - $ 3,474,723 $ - $ 940,405 $ 29,759 $ 5,796,297 2,023 108,027 - (427,974 ) (30,253 ) (24,188 ) (75) 40,052 $ 1,454 $ 5,492,214 (Continued)

• 31 -

Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation expense Impairment losses (Reversal) Disposals Reclassification Effect of exchange rate changes Balance at January 1, 2020 Carry amounts value at December 31, 2020	Freehold Land $ 18,812 - - - - - $ 18,812 $ 60,432	Buildings $ 607,693 42,935 - - - 306 $ 650,934 $ 514,305	Machinery $ 2,753,280 131,066 27,546 (378,951 ) (4 ) 28,216 $ 2,561,153 $ 467,698	Transportation Equipment $ 34,764 2,852 - (1,461 ) - 139 $ 36,294 $ 6,063	Office Equipment $ 47,951 1,124 118 (656 ) - (110) $ 48,427 $ 3,259	Leasehold Improvement $ 434,763 23,345 - - - (8,001) $ 450,107 $ 142,756	Other Equipment $ 470,448 26,527 685 (16,245 ) 4 5,300 $ 486,719 $ 43,801	Construction in Progress Total $ - $ 4,367,711 - 227,849 - 28,349 - (397,313 ) - - - 25,850 $ - $ 4,252,446 $ 1,454 $ 1,239,768 (Concluded)

Due to the decline in sales of plastic component products of the Group in the South China area, the Group expects that the future economic benefits of the equipment used to produce such products in the South China area would be reduced, and the recoverable amount would be less than the carrying amount. Therefore, as of December 31, 2021 and 2020 the impairment losses of $87,737 thousand and $28,349 thousand were recognized, respectively. The impairment losses have been included in other benefits and losses of the consolidated income statements.

The above items of property, plant and equipment are depreciated on a straight-line basis over the estimated useful life of the asset:

Building Main buildings 10-50 years Engineering systems 5-20 years Machinery 1-10 years Transportation equipment 1-10 years Office equipment 1-10 years Leasehold improvement 2-20 years Other equipment 2-20 years

Refer to Note 33 for the carrying amount of property, plant and equipment pledged by the group to secure borrowings/general banking facilities granted to the Group.

15. LEASE ARRANGEMENTS

• a. Right-of-use assets

Carrying amounts Land Buildings Machinery Other equipment		**December 31 **	**December 31 **
		2021 $ 22,026 143,188 - 1,131 $ 166,345	2020 $ 22,760 221,576 550 1,378 $ 246,264

• 32 -

Additions to right-of-use assets Disposal of right-of-use assets Disposal of subsidiaries Effect of exchange rate changes in right-of-use assets Depreciation charge for right-of-use assets Land Buildings Machinery Transportation equipment Other equipment	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2021 $ 419,891 $ (101,187) $ (272,470) $ (1,282) $ 611 123,468 545 - 247 $ 124,871	2020 $ 72,904 $ (92,299) $ - $ 32,343 $ 739 146,674 598 318 103 $ 148,432

Except for additions and disposal to right-of-use assets mentioned above, there were not any major sublease nor impairment occurred for year 2021 and 2020.

• b. Lease liabilities

Carrying amounts Current Non-current		**December 31 **	**December 31 **
		2021 $ 57,618 $ 89,172	2020 $ 127,787 $ 113,537

Range of discount rate for lease liabilities was as follows:

Land Buildings Machinery Other equipment	**December 31 **
	2021 2020 7.13% 7.13% 1.35%-7.13% 1.35%-7.13% 7.13% 7.13% 1.35% 1.35%

c. Material lease-in activities and terms

The Group leases certain machinery and other equipment for the use of product manufacturing with lease terms of 1 to 3 years. These arrangements do not contain renewal or purchase options.

The Group also leases land and buildings for the use of plants and dormitory with lease terms of 1 to 7 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.

• 33 -

d. Other lease information

Expenses relating to short-term leases and low-value asset leases Total cash outflow for leases	For the Year Ended	For the Year Ended	December 31
		2021 $ 385 $ (147,104)	2020 $ 590 $ (158,615)

The Group leases certain office equipment which qualified as short-term leases and qualified as low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

16. INTANGIBLE ASSETS

Cost Balance at January 1 Additions Disposals Disposals of subsidiaries Effect of exchange rate changes Balance at December 31 Accumulated amortization Balance at January 1 Amortization expense Disposals Disposals of subsidiaries Effect of exchange rate changes Balance at December 31 Carrying amounts at January 1 Carrying amounts at December 31	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2021 $ 146,780 1,691 (4,825) (636) (1,520) $ 141,490 $ 130,900 5,698 (4,826) (391) (1,442) $ 129,939 $ 15,880 $ 11,551	2020 $ 144,636 3,303 - - (1,159) $ 146,780 $ 123,072 9,168 - - (1,340) $ 130,900 $ 21,564 $ 15,880

The above items of other intangible assets are amortized on a straight-line basis at the following rates per annum:

Computer software

1-10 years

• 34 -

17. OTHER ASSETS

18.	Refundable deposits Overdue receivable Less: Allowance for impairment loss BORROWINGS Long-term Borrowings Secured borrowings (Note 33) Bank loans Hua Nan Commercial Bank Medium-term working capital loan with a credit line of $800,000 thousand and interest rate of 1.10% for the year ended December 31, 2020; loan period from January 20, 2020 to January 20, 2022. Principal lump-sum payment at maturity and interest payment monthly. Repayment has been made before maturity. Unsecured borrowings Bank loans China Trust Commercial Bank Medium-term working capital loan with a credit line of $350,000 thousand and interest rate of 1.13% for the year ended December 31, 2020; loan period from January 10, 2020 to January 10, 2022. Principal lump-sum payment at maturity and interest payment monthly. Repayment has been made before maturity. Shanghai Commercial Savings Bank Medium-term working capital loan with a credit line of $200,000 thousand and interest rate of 1.35% for the year ended December 31, 2020; loan period from March 10, 2020 to March 10, 2023. Principal lump-sum payment at maturity and interest payment monthly. Repayment has been made before maturity. Less: Current portion		December	31
			2021 $ 16,904 1,451 (1,451) $ 16,904 December	2020 $ 25,478 17,595 (17,595) $ 25,478 31
			2021 $ - - - - - $ -	2020 $ 50,000 50,000 100,000 200,000 (37,500) $ 162,500

• 35 -

19. NOTES PAYABLE AND TRADE PAYABLES

Notes payable to unrelated parties Operating Trade payables-operating Unrelated parties		December 31	December 31
		2021 $ 11 $ 873,181	2020 $ 7 $ 757,425

Trade payables were paid according to the condition of contract or billings from the suppliers. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

20. OTHER LIABILITIES

Current Other payables Salaries or bonuses Payable for processing fees Others Other liabilities Others Non-current Guarantee deposits Others		**December 31 **	**December 31 **
		2021 $ 60,017 146,836 197,526 $ 404,379 $ 855 $ 3,113 707 $ 3,820	2020 $ 95,832 123,838 253,812 $ 473,482 $ 2,880 $ 16,367 758 $ 17,125

21. PROVISIONS

Employee benefits		December	31
		2021 $ 14,949	2020 $ 17,001

The provision for employee benefits represents annual vacations taken by employees.

• 36 -

22. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company of the Group adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, a group makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plans adopted by the Company of the Group in accordance with the Labor Standards Law is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Company contribute amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Group has no right to influence the investment policy and strategy.

The amounts included in the consolidated balance sheets in respect of the Group’s defined benefit plans were as follows:

Present value of defined benefit obligation Fair value of plan assets Deficit Net defined benefit liabilities Movements in net defined benefit liabilities were as follows: Present Value of the Defined Benefit Obligation Balance at January 1, 2021 $ 74,284 Current service cost 116 Net interest expense (income) 371 Recognized in profit or loss 487 Remeasurement Return on plan assets (excluding amounts included in net interest) - Actuarial gain - changes in financial assumptions (928) Actuarial loss - changes in demographic assumptions 1,922 Actuarial loss - experience adjustments (1,989) Recognized in other comprehensive income (995)		December	31
	2021 2020 $ 67,266 $ 74,284 (34,447) (29,056) 32,819 45,228 $ 32,819 $ 45,228 Fair Value of the Plan Assets Net Defined Benefit Liabilities (Assets) $ (29,056) $ 45,228 - 116 (148) 223 (148) 339 (439) (439) - (928) - 1,922 - (1,989) (439) (1,434) (Continued)

• 37 -

	Present Value	Present Value		Net Defined
	of the Defined			Benefit
	Benefit		Fair Value of	Liabilities
	Obligation		the Plan Assets	(Assets)
Contributions from the employer	$	-	$ (11,314)	$ (11,314)
Benefits paid		(6,510)	6,510	-
Balance at December 31, 2021	$	67,266	$ (34,447)	$ 32,819
Balance at January 1, 2020	$	91,279	$ (44,410)	$ 46,869
Current service cost		363	-	363
Net interest expense (income)		685	(338)	347
Recognized in profit or loss		1,048	(338)	710
Remeasurement
Return on plan assets (excluding amounts
included in net interest)		-	(1,206)	(1,206)
Actuarial gain - changes in financial
assumptions		2,144	-	2,144
Actuarial loss - changes in demographic
assumptions		1,240	-	1,240
Actuarial loss - experience adjustments		(3,346)	-	(3,346)
Recognized in other comprehensive income		38	(1,206)	(1,168)
Contributions from the employer		-	(1,183)	(1,183)
Benefits paid		(18,081)	18,081	-
Balance at December 31, 2020	$	74,284	$ (29,056)	$ 45,228
				(Concluded)

Through the defined benefit plans under the Labor Standards Law, the Group is exposed to the following risks:

• 1) Investment risk: The plan assets are invested in domestic/and foreign/equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

• 2) Interest risk: A decrease in the (government/corporate) bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans’ debt investments.

• 3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

• 38 -

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

Discount rate(s) Expected rate(s) of salary increase	**December 31 **
	2021 2020 0.625% 0.500% 2.000% 2.000%

If possible reasonable changes in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation would decrease/increase as follows:

Discount rate(s) 0.25% increase 0.25% decrease Expected rate(s) of salary increase 0.25% increase 0.25% decrease		December	31
		2021 $ (1,848) $ 1,920 $ 1,861 $ (1,801)	2020 $ (2,164) $ 2,252 $ 2,179 $ (2,105)

The sensitivity analysis presented above may not be representative of the actual changes in the present value of the defined benefit obligation as it is unlikely that the changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Expected contributions to the plans for the next year Average duration of the defined benefit obligation		December	31
		2021 $ 1,076 11.2 years	2020 $ 1,228 11.9 years

23. EQUITY

a. Ordinary shares

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued		December 31	December 31
		2021 210,000 $ 2,100,000 121,662 $ 1,216,622	2020 210,000 $ 2,100,000 121,662 $ 1,216,622

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

There were 12,000 thousand shares of the Company’s shares authorized which were reserved for the issuance of employee share options.

• 39 -

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note) Issuance of ordinary shares Conversion of bonds Conversion of employee share options May be used to offset a deficit only Share of changes in capital surplus of associates Invalidation of employee share options		December 31	December 31
		2021 $ 1,753,223 408,244 - - - $ 2,161,467	2020 $ 1,753,223 496,427 133,054 68,616 112,838 $ 2,564,158

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

The shareholders’ meeting of the Company resolved to offset its deficit from capital surplus of $402,691 thousand on August 4, 2021.

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the amended Articles, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve 10% of the remaining profit, setting aside or reversing 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 Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of employees’ compensation and remuneration of directors and supervisors after the amendment, refer to “employees’ compensation and remuneration of directors and supervisors” in Note 25-e.

To ensure that the Company has funds for its present and future expansion plans, the Company prefers to distribute mixed share dividends and cash dividends as shareholders’ bonus among which share dividend is distributed from 0% to 50% and cash dividends from 100% to 50%. The distribution policy would be adjusted depending on the operating conditions, industry developments, capital requirement and so forth.

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

The undistributed retained earnings is appropriated to or reversed from special reserve by the Company in accordance with the laws and regulations.

• 40 -

The appropriations of deficit offsetting proposal for 2020 and 2019 approved in the shareholders’ meetings on August 4, 2021 and June 9, 2020, respectively, were as follows:

Legal reserves used to compensate deficit Special reserves used to compensate deficit	Appropriation of Earnings
	For 2020 For 2019 $ - $ (211,361) - (354,252)

The Company’s shareholders also resolved to issue capital surplus used to compensate deficit of $402,691 thousand in the shareholders’ meeting on August 4, 2021.

The appropriation of capital surplus to compensate deficit of $233,552 thousand was proposed by the Company’s board of directors on March 25, 2022.

The appropriation of deficit offsetting proposal for 2021 are subject to resolution in the shareholders’ meeting to be held on June 28, 2022.

• d. Special reserves

Beginning at January 1 Reversals Special reserves offset deficits Balance at December 31	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2021 $ - - $ -	2020 $ 354,252 (354,252) $ -

• e. Other equity items

• 1) Exchange differences on translating foreign operations

Balance at January 1 Effect of change in tax rate Recognized for the year Income tax related to gains on translating foreign operations Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2021 $ (728,389) 6,976 - $ (721,413)	2020 $ (568,419) (17,864) (142,106) $ (728,389)

2) Unrealized gain (loss) on financial assets at FVTOCI

Balance at January 1 Recognized for the year Unrealized (loss) gain - equity instruments Cumulative unrealized gain of equity instruments transferred to retained earnings due to disposal Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 40,114 (69,053) (46,072) $ (75,011)	2020 $ (59,483) 99,597 - $ 40,114

• 41 -

f. Non-controlling interests

Balance at January 1 Attributable to non-controlling interests: Cash capital reduction Disposal Share of loss for the year Exchange differences on translating foreign operations Balance at December 31		December	31
		2021 $ 47,194 - (13,608) (23,742) (467) $ 9,377	2020 $ 75,871 (9,576) - (20,848) 1,747 $ 47,194

24. REVENUE

Revenue from contracts with customers Plastic components Molds Others	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2021 $ 3,111,709 208,007 521,224 $ 3,840,940	2020 $ 2,785,254 141,496 395,840 $ 3,322,590

Contact Balances

Trade receivables Trade receivables from related parties Contract liabilities Receipts in advance		**December 31 **	**December 31 **
		2021 $ 1,290,646 $ 3,927 $ 31,492	2020 $ 1,281,396 $ 4,573 $ 17,998	2019 $ 938,236 $ 64,266 $ 53,770

Among contract revenue from customers for the years ended December 31, 2021 and 2020, contract liabilities of $20,633 thousand and $44,973 thousand were reclassified as revenue, respectively.

25. NET PROFIT FROM CONTINUING OPERATIONS

Net profit from continuing operations contains the following items:

• a. Interest income

Bank deposits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 3,478	2020 $ 2,605

• 42 -

b. Other gains and losses

Net foreign exchange gain (loss) Fair value changes of financial assets mandatorily classified as at FVTPL Dividends Miscellaneous income Miscellaneous expenses Gain on disposal of investments Gain on lease modification Lease revenue Impairment loss on property, plant and equipment Gain on disposal of right-of-use assets Impairment gain (loss) on financial assets	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 2,080 - 3,923 80,542 (40,159) 9,306 7,136 84,837 (87,737) - 14,071 $ 73,999	2020 $ (2,754) 560 45 95,359 (34,265) 1,865 2,694 21,914 (28,349) 3,641 (16,519) $ 44,191

c. Finance costs

Interest on bank loans Interest on lease liabilities Other finance costs	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 1,340 21,605 384 $ 23,329	2020 $ 2,969 19,767 842 $ 23,578

d. Depreciation, amortization, and employee benefits expense

Short-term employee benefits Post-employment benefits Defined benefit plans (Note 22) Defined contribution plans Total employee benefits expense Depreciation Amortization				Fo	rthe Year End	ed	**December 31 **
			2021		Total $ 744,503 339 6,859 $ 751,701 $ 315,200 $ 5,698			2020
	t	Attributable o Operating Costs t $ 591,680 110 4,060 $ 595,850 $ 165,731 $ 2,466	Attributable o Operating Expenses $ 152,823 229 2,799 $ 155,851 $ 109,548 $ 3,232	Attributable to Other Expenses $ - - - $ - $ 39,921 $ -		t	Attributable o Operating Costs t $ 541,369 201 3,335 $ 544,905 $ 255,691 $ 3,478	Attributable o Operating Expenses $ 174,081 509 7,102 $ 181,692 $ 120,590 $ 5,690	Attributable to Other Expenses $ - - - $ - $ - $ -	Total $ 715,450 710 10,437 $ 726,597 $ 376,281 $ 9,168

e. Employees’ compensation and remuneration of directors and supervisors

The Company accrued employees’ compensation and remuneration of directors and supervisors at the rates of between 3% and 12% and no higher than 3%, respectively, of net profit before income tax, employees’ compensation and remuneration of directors and supervisors.

Since the Group has net loss during 2021 and 2020, the estimated employee’s benefit and remuneration of directors and supervisors were both $0.

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

• 43 -

There was no difference between the actual amounts of employees’ compensation and remuneration of directors and supervisors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2020 and 2019.

Information on the employees’ compensation and remuneration of directors and supervisors resolved by the Company’s board of directors in 2022 and 2021 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

26. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Major components of tax expense recognized in profit or loss

The major components of tax expense were as follows:

Current tax In respect of the current year Adjustments for prior years’ tax Deferred tax In respect of the current year Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ - (254) 7,806 $ 7,552	2020 $ - 1,063 329 $ 1,392

A reconciliation of accounting income and current income tax expense is as follows:

Loss before income tax Income tax benefit at the statutory rate Tax effect of adjusting items: Nondeductible expenses and losses Unrecognized loss carryforwards/deductible temporary differences Loss from disposal of overseas equity investments Adjustments for prior years’ tax Income tax expense recognized in profit or loss	For the Year Ended	For the Year Ended	December 31
		2021 $ (286,508) $ (111,201) 70 119,591 (654) (254) $ 7,552	2020 $ (423,082) $ (164,312) 87 164,554 - 1,063 $ 1,392

b. Income tax recognized in other comprehensive income

Deferred tax In respect of the current year: Translation of foreign operations Actuarial gains and losses on defined benefit plan Total income tax recognized in other comprehensive income	For the Year Ended	For the Year Ended	December 31
		2021 $ - 10,740 $ 10,740	2020 $ 142,106 233 $ 142,339

• 44 -

c. Current tax assets and liabilities

Current tax assets - income tax payable Tax refund receivable		December	31
		2021 $ 26	2020 $ 5,251

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2021

Deferred tax assets Temporary differences Defined benefit obligation Write-down of inventories Impairment loss Others Deferred tax liabilities Temporary differences Others For the year ended December 31, 2020 Deferred tax assets Temporary differences Right-of-use assets Defined benefit obligation Allowance for impaired receivables Write-down of inventories Impairment loss Exchange differences on translating foreign operations Others	Opening Balance Recognized in Profit or Loss Recognized in Other Compre- hensive Income $ 9,045 $ 1,695 $ (10,740) 1,032 (1,032) - 1,110 (1,110) - 12,539 (12,539) - $ 23,726 $ (12,986) $ (10,740) $ 5,529 $ (5,180) $ - Opening Balance Recognized in Profit or Loss Recognized in Other Compre- hensive Income $ 55 $ (55) $ - 9,372 (94) (233) 6,332 (6,332) - 886 146 - 6,929 (5,819) - 142,106 - (142,106) 12,056 483 - $ 177,736 $ (11,671) $ (142,339)	Closing Balance $ - - - - $ - $ 349 Closing Balance $ - 9,045 - 1,032 1,110 - 12,539 $ 23,726 (Continued)

• 45 -

Deferred tax liabilities Temporary differences Property, plant and equipment Others	Opening Balance Recognized in Profit or Loss Recognized in Other Compre- hensive Income $ 1,113 $ (1,113) $ - 15,758 (10,229) - $ 16,871 $ (11,342) $ -	Closing Balance $ - 5,529 $ 5,529 (Concluded)

• e. Deductible temporary differences, unused loss carryforwards for which no deferred tax assets have been recognized in the consolidated balance sheets

Loss carryforwards Expiry in 2021 Expiry in 2022 Expiry in 2023 Expiry in 2024 Expiry in 2025 Expiry in 2026 Expiry in 2027 Expiry in 2028 Expiry in 2029 Expiry in 2030 Expiry in 2031 Deductible temporary differences		December 31	December 31
		2021 $ - 577,905 209,779 470,091 306,853 - 662 9,585 53,575 71,293 18,131 $ 1,717,874 $ 2,580,465	2020 $ 461,510 657,403 323,358 563,479 572,783 - 1,335 9,585 53,575 65,575 - $ 2,708,603 $ 2,377,555

• f. Income tax assessments

The income tax returns of the Company and Shuang-Ying Science and Technology, Ltd. through 2019 had been assessed by the tax authorities.

27. LOSSES PER SHARE

Unit: NT$ Per Share

Basic loss per share From continuing operations	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ (2.22)	2020 $ (3.32)

• 46 -

The losses and weighted average number of ordinary shares outstanding in the computation of losses per share were as follows:

Net Losses for the Year

Losses used in the computation of basic losses per share	For the Year Ended	For the Year Ended	December 31
		2021 $ (270,318)	2020 $ (403,626)

Weighted average number of ordinary shares outstanding (in thousand shares):

Weighted average number of ordinary shares in the computation of basic losses per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 121,662	2020 121,662

28. DISPOSAL OF SUBSIDIARIES

On March 26, 2021 and June 7, 2021, the board of directors of the Group resolved to dispose 100% shares of Coxon Medical Limited and its subsidiaries, and Dong Guan Cheng Da Metal Product Company Ltd., which were disposed on April 29, 2021 and November 30, 2021 respectively. The selling price were $46,250 thousand (US$1,650 thousand) and $99,796 thousand (RMB21,771 thousand) respectively. The former has been fully collected, while the latter of $75,900 thousand has not been collected as of December 31, 2021, which is recorded as other receivables. Please refer to Note 10.

• a. Consideration received from disposals

	Teckyork	Dong Guan
	Enterprise Co.,	Cheng Da
	Ltd. and	Metal Product
	Subsidiaries	Company Ltd.
Consideration received in cash and cash equivalents	$ 46,250	$ -
Other receivables	-	99,796
	$ 46,250	$ 99,796

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

	Teckyork	Teckyork	Dong Guan	Dong Guan
	Enterprise Co.,		Cheng Da
	Ltd. and		Metal Product
	Subsidiaries		Company Ltd.
Current assets
Cash and cash equivalents	$	47,148	$	16,877
Trade receivables		25,479		1,131
Other receivables		2,554		29,527
Prepayment		1,154		1,995
Inventories		476		-
				(Continued)

• 47 -

		Teckyork	Teckyork	Dong Guan	Dong Guan
		Enterprise Co.,		Cheng Da
		Ltd. and		Metal Product
		Subsidiaries		Company Ltd.
	Non-current assets
	Property, plant and equipment	$	8,242	$	14,376
	Right-of-use assets		-		272,470
	Intangible assets		-		245
	Refundable deposits		1,166		7,682
	Current liabilities
	Trade payables		(12,418)		(917)
	Other payables		(5,336)		(22,165)
	Provisions		(395)		(36)
	Other current liabilities		(30)		(875)
	Non-current liabilities
	Lease liabilities		-		(278,481)
	Long-term deferred income		-		(6,293)
	Net assets disposed of	$	68,040	$	35,536
				(Concluded)
c.	Gain or loss on disposals of subsidiaries
		Teckyork		Dong Guan
		Enterprise Co.,		Cheng Da
		Ltd. and		Metal Product
		Subsidiaries		Company Ltd.
	Consideration received	$	46,250	$	99,796
	Net assets disposed of		(68,040)		(35,536)
	Non-controlling interests		13,608		-
	Accumulated exchange differences on net assets of subsidiaries
	reclassified from equity to profit or loss due to loss of control
	over subsidiaries		(1,823)		(44,949)
	(Loss) gain on disposals	$	(10,005)	$	19,311
d.	Net cash inflow on disposals of subsidiaries
		Teckyork		Dong Guan
		Enterprise Co.,		Cheng Da
		Ltd. and		Metal Product
		Subsidiaries		Company Ltd.
	Consideration received in cash and cash equivalents	$	46,250	$	99,796
	Less: Disposal price has not been received		-		(75,900)
	Less: Cash and cash equivalent balances disposed of		(47,148)		(16,877)
		$	(898)	$	7,019

• 48 -

29. NON-CASH TRANSACTIONS

As of December 31, 2020, the Group reclassified long-term borrowings of $37,500 thousand under current portion of long-term borrowings.

30. 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 adopts prudent risk management strategy and performs audit on a regular basis. The capital structure of the Group is determined according to the business development strategies and operational requirements.

31. FINANCIAL INSTRUMENTS

• a. Fair value of financial instruments that are not measured at fair value: None

• b. Fair value of financial instruments that are measured at fair value on a recurring basis

• 1) Fair value hierarchy

Financial assets at FVTOCI Invest in equity instruments Listed shares and emerging market shares Unlisted shares Financial assets at FVTOCI Invest in equity instruments Listed shares and emerging market shares Unlisted shares			December 31, 2021	December 31, 2021
		Level 1 $ 53,355 - $ 53,355	Level 2 Level 3 $ - $ - - 24,101 $ - $ 24,101 December 31, 2020		Total $ 53,355 24,101 $ 77,456
		Level 1 $ 120,204 - $ 120,204	Level 2 $ - - $ -	Level 3 $ - 220,109 $ 220,109	Total $ 120,204 220,109 $ 340,313

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

• 49 -

• 2) Valuation techniques and inputs applied for the purpose of measuring Level 3 fair value measurement

Financial Instrument Valuation Technique and Inputs Unlisted ordinary shares - ROC Market approach. The measurement is based on maximizing the use of relevant observable inputs at the year end

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

For the year ended December 31, 2021

	Financial
	Liabilities at
	Fair Value
	Through
	Other
	Comprehensive
	Income
Balance at January 1, 2021	$ 220,109
Additions	3,410
Disposal	(204,928)
Recognized in comprehensive income	10,517
Exchange rate fluctuation	(5,007)
Balance at December 31, 2021	$ 24,101
For the year ended December 31, 2020
	Financial
	Liabilities at
	Fair Value
	Through
	Other
	Comprehensive
	Income
Balance at January 1, 2020	$ 230,703
Recognized in comprehensive income	(1,436)
Exchange rate fluctuation	(9,158)
Balance at December 31, 2020	$ 220,109

• 50 -

c. Categories of financial instruments

Financial assets FVTPL Designated as at FVTPL Financial assets at amortized cost Cash and cash equivalents Financial assets at amortized cost - current Trade receivables from unrelated parties Notes and trade receivables Other receivables Financial assets at FVTOCI Equity instruments - current Equity instruments - non-current Financial liabilities Financial liabilities at amortized cost Notes and trade payables Payables on equipment Other payables Current portion of long-term borrowings Long-term borrowings

December 31

2021 2020 $ 13,024 $ 26,189 657,756 787,077 40,000 13,400 1,290,646 1,281,435 3,927 4,573 90,236 49,184 53,355 120,204 24,101 220,109 873,192 757,432 21,156 51,346 404,379 473,482 - 37,500 - 162,500

d. Financial risk management objectives and policies

The Group sought to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives was governed by the Group’s policies approved by the board of directors, which provided written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits was reviewed by the internal auditors on a continuous basis.

The Group’s Corporate Treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price 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 and interest rates. The Group entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including:

a) Foreign currency risk

The Group use foreign exchange forward contracts to eliminate currency exposure in foreign currency risk. The change of rate eliminated by the profit and loss of the terms of the hedge derivatives so the market price risk is not martial.

• 51 -

The following table details the Group’s sensitivity to a 1% increase and decrease in New Taiwan dollars (i.e. the functional currency) against the relevant foreign currencies. The sensitivity analysis included only outstanding foreign currency denominated monetary items and foreign currency forward contracts designated as cash flow hedges. For a 1% weakening of New Taiwan dollars against the relevant currency, there would be a decrease of $5,237 thousand and $1,922 thousand for the years ended December 31, 2021 and 2020, respectively, in post-tax income.

b) Interest rate risk

The Group was exposed to fair value interest rate risk in relation to fixed-rate bank borrowings. The bonds payable are fixed-rate and measured at amortized cost, so changes in rate will not have effect on the cash flow in the future.

The sensitivity analysis assumed bank borrowings were held for the whole reporting period and there was a 1% change in rates; it would result in a decrease of $1,600 thousand for the year ended December 31, 2020 in post-tax income.

c) Other price risk

The Group was exposed to equity price risk through its investments in listed equity securities. Equity investments are held for strategic rather than trading purposes. The Group does not actively trade these investments. The Group manages this exposure by maintaining a portfolio of investments with different risks.

The sensitivity analysis assumed the listed equity securities were outstanding for the whole reporting period and there was a 5% change in price; it would result in a decrease of $3,873 thousand and $17,016 thousand for the years ended December 31, 2021 and 2020, respectively, in comprehensive income.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk which will cause a financial loss to the Group due to failure of counterparties to discharge an obligation and financial guarantees provided by the Group could arise from the carrying amount of the respective recognized financial assets as stated in the balance sheets.

In order to minimize credit risk, management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowances are made for irrecoverable amounts. In this regard, management believes the Group’s credit risk was significantly reduced.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

For the years ended December 31, 2021 and 2020, the unused bank borrowings were $150,000 thousand and $950,000 thousand, respectively.

• 52 -

The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The table was drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

December 31, 2021

		Later Than 1	Later Than 1	Later Than 2
		Year and Up		Years and Up
	Up to 1 Year	to	2 Years	to 3 Years	Over	3 Years	Total
Non-derivative financial liabilities
Notes and trade payables	$ 873,192	$	-	$ -	$	-	$ 873,192
Payables on equipment	21,156		-	-		-	21,156
Other payables	404,379		-	-		-	404,379
Lease liabilities	57,618		50,362	38,810		-	146,790
December 31, 2020
		Later Than 1		Later Than 2
		Year and Up		Years and Up
	Up to 1 Year	to	2 Years	to 3 Years	Over	3 Years	Total
Non-derivative financial liabilities
Notes and trade payables	$ 757,432	$	-	$ -	$	-	$ 757,432
Payables on equipment	51,346		-	-		-	51,346
Other payables	473,482		-	-		-	473,482
Lease liabilities	127,787		48,491	22,362		42,684	241,324
Long-term borrowings	37,500		162,500	-		-	200,000

32. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Company and its subsidiaries, which were related parties of the Company, had been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Company and related parties are disclosed below.

a. Related party name and categories

Related Party Name Siix Coxon Precision Phils., Inc. Guangdong Tonly Precision Structure Co., Ltd. Tonly Electronic (Huizhou) Co., Ltd. Wuhan Resin-hill Co., Ltd. Quanta Computer Inc.	Related Party Categories
	Associates - equity-method investments (Note 1) Associates - equity-method investments (Note 2) Others - the parent of Guangdong Tongli Precision Structure Co., Ltd. (Note 3) Associates - equity-method investments Other - the third joint venture party of Plenty Link Technology Co., Ltd.

Note 1: Siix Coxon Precision Phils., Inc. was disposed on June 16, 2021.

Note 2: Guangdong Tonly Precision Structure Co., Ltd. was liquidated on June 29, 2020.

Note 3: Tonly Electronic (Huizhoa) Co., Ltd. was not an associate after December July 31, 2020.

• 53 -

b. Sales of goods

Line Item Related Party Category/Name Sales Associates Siix Coxon Precision Phils., Inc. Others Quanta Computer Inc. Tonly Electronic (Huizhou) Co., Ltd.	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ - 9,147 - $ 9,147	2020 $ 131 7,189 69,197 $ 76,517

Terms of sales among related parties were similar to those among third parties

• c. Receivable from related parties (excluding loans to related parties)

Line Item Related Party Category/Name Trade receivables Others Quanta Computer Inc. Other receivables Associates QUANTA Computer Inc. Wuhan Resin-hill Co., Ltd.		December	31
		2021 $ 3,927 $ - - $ -	2020 $ 4,573 $ 307 771 $ 1,078

For the years ended December 31, 2021 and 2020, no impairment loss was recognized for trade receivables from related parties.

• d. Other transactions with related parties

Line Item Related Party Category/Name Miscellaneous Others income Quanta Computer Inc. Tonly Electronic (Huizhou) Co., Ltd.	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ - - $ -	2020 $ 815 1,330 $ 2,145

• e. Compensation of key management personnel

The remuneration of directors and other members of key management personnel for the years ended December 31, 2021 and 2020 were as follows:

Short-term benefits Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 18,487 899 $ 19,386	2020 $ 24,087 1,045 $ 25,132

• 54 -

The remuneration of directors and key executives was determined by the remuneration committee with regard to the performance of individuals and market trends.

33. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings, the tariff of imported raw materials guarantees or the deposit for court guarantees:

Financial assets at amortized cost Property, plant and equipment - land Property, plant and equipment - buildings		December 31	December 31
		2021 $ - 79,244 35,723 $ 114,967	2020 $ 13,400 79,244 36,775 $ 129,419

34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group as of December 31, 2021 were as follows:

• a. Coxon Industry (Changshu) Co., Ltd. had commitments to purchase machinery and equipment and to comply with repair construction contracts which amounted to $2,935 thousand, of which $1,467 thousand has been paid and recorded under prepayments for equipment.

• b. Sinxon Plastic (Dong Guan) Ltd. had commitments to purchase machinery and equipment and to comply with repair construction contracts which amounted to $6,129 thousand, of which $3,064 thousand has been paid and recorded under prepayments for equipment.

• c. Dongguan Shuang-Ying Photoelectric Technology Co., Ltd. had commitments to purchase machinery and equipment and to comply with repair construction contracts which amounted to $2,645 thousand, of which $2,061 thousand has been paid and recorded under prepayments for equipment.

• d. The digital camera lawsuit on infringement between JCD Corporation (hereinafter referred to as “JCD”) and the Group is summarized as below.

• 1) Lawsuit matters: JCD applied for a tort arbitration to the Japan Commercial Arbitration Association, asking for prohibition from producing and selling the digital camera lenses designed by JCD as well as infringement compensation of US$2,662 thousand, JPY635 thousand and RMB393 thousand in 2010.

• 2) Lawsuit status up to report date: According to the verdict of the Japan Commercial Arbitration Association, Tokyo No. 10-11 on January 16, 2012, was summarized as below.

  • a) The Company (the defendant) should pay JCD (the plaintiff) US$1,441 thousand, JPY1,270 thousand with accrued interest accumulating from November 24, 2010 to the date on which the total compensation is made, using a 6% annual interest rate.

  • b) The Company cannot manufacture and sell the suspended category of digital camera zooms.

  • c) The Company shall pay the plaintiff a litigation fee of JPY1,562 thousand.

• 55 -

In accordance with the judgment from the Japan Commercial Arbitration Association and the recognition from Taiwan Taoyuan District Court, JCD applied a compulsory enforcement of claims, including infringement compensation of $43,901 thousand at a 6% annual interest rate from November 24, 2010 to the settlement date and an execution fee of $351 thousand. The case was ended so far.

Moreover, the suspension of enforcement which had been requested by the Company has been approved by Taiwan Taoyuan District Court. The certificate of deposit of $13,400 thousand, which was pledged as guarantee in 2013 and 2015, has been fully collected.

35. OTHER ITEMS

Due to the impact of the COVID-19 pandemic, some of clients’ orders had been adjusted, resulting in a decrease in sales revenue in 2020. However, the Group’s operation has returned to normal in 2021. The management of the Group will continuously pay attention to the COVID-19 impact on operation and adjust policy accordingly. Except for the above mentioned, as of the date on which financial statements were issued, COVID-19 did not have material impact on the Group’s financial position.

36. EXCHANGE RATE OF FINANCIAL 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 currencies and the related exchange rates between foreign currencies and respective functional currencies were as follows:

December 31, 2021

Foreign Currencies (In Thousands) Exchange Rate Financial assets Monetary items USD $ 16,211 6.38 (USD:RMB) USD 22,997 27.68 (USD:NTD) EUR 2 31.32 (EUR:NTD) JPY 435 0.01 (JPY:USD) JPY 4,384 0.24 (JYP:NTD) HKD 160 0.13 (HKD:USD) HKD 2 3.55 (HKD:NTD) RMB 26,029 0.16 (RMB:USD) CHF 9 1.09 (CHF:USD) Non-monetary items Investments accounted for using equity method RMB 641 4.3415 (RMB:NTD)	Carrying Amount $ 448,724 636,566 77 105 1,054 568 7 113,071 232 $ 1,200,404 $ 2,784 (Continued)

• 56 -

Foreign Currencies (In Thousands) Exchange Rate Financial liabilities Monetary items USD $ 10,954 6.38 (USD:RMB) USD 8,389 27.68 (USD:NTD) EUR 3 7.21 (EUR:RMB) JPY 18,864 0.06 (JPY:RMB) JPY 410 0.01 (JYP:USD) HKD 2 0.82 (HKD:RMB) RMB 1,305 0.16 (RMB:USD) RMB 5 4.34 (RMB:USD) December 31, 2020 Foreign Currencies (In Thousands) Exchange Rate Financial assets Monetary items USD $ 16,361 6.52 (USD:RMB) USD 19,551 28.48 (USD:NTD) EUR 2 35.02 (EUR:NTD) JPY 12,430 0.01 (JPY:USD) JPY 37,138 0.28 (JYP:NTD) HKD 160 0.13 (HKD:USD) RMB 7,189 0.15 (RMB:USD) CHF 9 1.13 (CHF:USD) Non-monetary items Investments accounted for using equity method RMB 871 4.377 (RMB:NTD) Financial liabilities Monetary items USD 2,789 6.52 (USD:RMB) USD 26,241 28.48 (USD:NTD) JPY 469 0.06 (JPY:RMB) JPY 414 0.01 (JYP:USD) HKD 16 0.84 (HKD:RMB) HKD 3 0.13 (HKD:USD) HKD 3 3.67 (HKD:NTD) RMB 332 0.15 (RMB:USD)

Carrying Amount $ 303,195 232,213 83 4,537 99 7 5,669 20 $ 545,823 (Concluded) Carrying Amount $ 465,957 556,801 86 3,434 10,261 587 31,466 248 $ 1,068,840 $ 3,805 $ 79,419 747,334 130 114 58 11 11 1,453 $ 828,530

• 57 -

For the years ended December 31, 2021 and 2020, (realized and unrealized) net foreign exchange loss and gains were $2,080 thousand and $2,754 thousand, respectively. It is impractical to disclose net foreign exchange gain or losses by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the Group.

37. SEPARATELY DISCLOSED ITEMS

• a. Information on significant transactions and investees:

• 1) Financing provided to others: (Table 1)

• 2) Endorsements/guarantees provided: None

• 3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures): (Table 2)

• 4) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: (None)

• 5)Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None

• 6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None

• 7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: (Table 3)

• 8)Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: (Table 4)

• 9) Trading in derivative instruments: (Notes 7 and 34)

• 10) Intercompany relationships and significant intercompany transactions: (Table 7)

• b. Information on investees: (Table 5)

• c. Information on investments in mainland China

• 1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: (Table 6)

• 2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: (Table 6):

  • a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.

  • b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.

• 58 -

• c) The amount of property transactions and the amount of the resultant gains or losses.

• d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.

• e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.

• f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services.

• d. Information of major shareholders

Information of major shareholders: list all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 8)

38. 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 under IFRS 8 “Operating Segments” were as follows:

• Taiwan and South China

• South China (the chief operating range are domestic sales)

• Changshu

• Others

• a. Segment revenues and results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segment.

Segment revenue and results Revenue from external customers Inter-segment revenue Segment revenue Segment income Interest income Other income Finance costs Other expense and loss Income from continuing operations before income tax Segment assets Assets Investments Current tax assets Total assets Depreciation and amortization Acquisition of property, plant and equipment			**For **	the Year Ended D	ecember 31, 2021
		Taiwan and South China $ 1,014,693 231,645 $ 1,246,338 $ (113,126) $ 1,432,694 $ 36,780 $ 4,080	South China $ 1,409,269 385,653 $ 1,794,922 $ (366,081) $ 1,482,659 $ 207,458 $ 15,404	Changshu $ 1,409,832 974 $ 1,410,806 $ (89,130) $ 2,180,588 $ 73,727 $ 73,522	Others $ 7,146 6,224 $ 13,370 $ (9,574) $ 1,025 $ 2,933 $ 43	Adjustments and Elimination $ - (624,496) $ (624,496) $ 112,093 $ (1,302,966)	Total $ 3,840,940 - $ 3,840,940 $ (465,818 ) 3,478 328,054 (23,329 ) (128,893) $ (286,508) $ 3,794,001 93,264 26 $ 3,887,291 $ 320,898 $ 93,006

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Segment revenue and results Revenue from external customers Inter-segment revenue Segment revenue Segment income Interest income Other income Finance costs Other expense and loss Income from continuing operations before income tax Segment assets Assets Investments Current tax assets Deferred tax assets Total assets Depreciation and amortization Acquisition of property, plant and equipment			**For **	the Year Ended D	ecember 31, 2020
		Taiwan and South China $ 851,281 316,035 $ 1,167,316 $ (104,181) $ 1,719,552 $ 62,439 $ 25,658	South China $ 1,430,687 349,421 $ 1,780,108 $ (368,480) $ 1,739,286 $ 240,836 $ 58,500	Changshu $ 1,000,036 1,750 $ 1,001,786 $ 30,973 $ 2,081,207 $ 70,527 $ 23,869	Others $ 40,586 33,455 $ 74,041 $ (12,681) $ 207,229 $ 11,647 $ -	Adjustments and Elimination $ - (700,661) $ (700,661) $ 17,269 $ (1,580,205)	Total $ 3,322,590 - $ 3,322,590 $ (437,100 ) 2,605 83,728 (23,578 ) (48,737) $ (423,082) $ 4,167,069 370,307 5,251 23,726 $ 4,566,353 $ 385,449 $ 108,027

Segment profit represented the profit before tax earned by each segment without gain or loss on disposal of property, plant and equipment, interest income, dividend income, gain on disposal of investments, share of profit or loss of associates, net exchange gain or loss, net profit or loss of financial assets measured at FVTPL, finance costs 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.

b. Revenue from major products and services

The following is an analysis of the Group’s revenue from continuing operations from its major products and services.

Plastic components Molds Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 3,111,709 208,007 521,224 $ 3,840,940	2020 $ 2,785,254 141,496 395,840 $ 3,322,590

c. Geographical information

The Group operates in three principal geographical areas - Taiwan and China.

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The Group’s revenue from continuing operations from external customers by location of operations and information about its non-current assets by location of assets are detailed below.

Taiwan China America Japan Others		Revenue from External Customers 2021 2020 $ 713,767 $ 553,478 2,984,642 2,618,127 18,661 22,271 27,591 14,916 96,279 113,798 $ 3,840,940 $ 3,322,590		Non-current Assets	Non-current Assets
				December 31
		2021 $ 713,767 2,984,642 18,661 27,591 96,279 $ 3,840,940		2021 $ 113,452 1,011,441 - - - $ 1,124,893	2020 $ 123,000 1,394,712 - - - $ 1,517,712

Non-current assets exclude non-current assets classified as held for sale, financial instruments, and deferred tax assets.

• d. Information about major customers

Individual customers accounting for at least 10% of net sales for the years ended December 31, 2021 and 2020 were as follows:

Customer Customer A	For the Year Ended	For the Year Ended	December 31
		2021 $ 530,580	2020 $ 368,078

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TABLE 1

COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the Year	Ending Balance	Actual Borrowing Amount	Interest Rate	Nature of Financing	Business Transaction Account and Amounts	Reasons for Short-term Financing	Collateral	Collateral	Financing Limit for Each Borrower	Aggregate Financing Limits
												Item	Value
1	Sun Can International Ltd.	Sinxon Plastic (Dong Guan) Ltd.	Other receivables	Yes	$ 297,400	$ 276,800	$ 213,136	-	Financing	$ -	Working capital	-	$ -	$ 45,860	$ 45,860
2	Coxon Industry (Changshu) Co., Ltd.	Sinxon Plastic (Dong Guan) Ltd. Dong Guan Chensong Plastic Co., Ltd.	Other receivables Other receivables	Yes Yes	293,795 167,310	282,360 130,320	282,360 130,320	- -	Financing Financing	- -	Working capital Working capital	- -	- -	739,049 739,049	739,049 739,049
3	Changshu Huaxon Industry Co., Ltd.	Sinxon Plastic (Dong Guan) Ltd. Coxon Industry (Changshu) Co., Ltd.	Other receivables Other receivables	Yes Yes	184,880 98,290	173,660 97,740	173,660 97,740	- -	Financing Financing	- -	Working capital Working capital	- -	- -	750,639 750,639	750,639 750,639
4	Hang Yuan Enterprise Ltd.	Sun Can International Ltd.	Other receivables	Yes	42,585	41,520	41,738		Financing	-	Working capital	-	-	1,577,575	1,577,575

• Note 1:

Our company:

• a. The total amount of capital loan shall not exceed 40% of the net value of the Company's latest financial statement.

• b. If an inter-company or inter-firm short-term financing facility is necessary, the total loan amount shall not exceed 20% of the net value of the Company's latest financial statement; the individual loan amount shall not exceed 10% of the net value of the Company's latest financial statement.

Subsidiaries:

• a. The total amount of capital loans shall not exceed 40% of the net value of the Company's latest financial statement.

• b. If an inter-company or inter-firm short-term financing facility is necessary, the total loan amount shall not exceed 40% of the net value of the Company's latest financial statement; the individual loan amount shall not exceed 30% of the net value of the Company's latest financial statement.; however, if the borrower is the overseas subsidiary 100%-owned ultimately by the parent company, Coxon Precise Industrial Co., Ltd., the total loan amount could not be limited by 40% of the net value of the Company's latest financial statement mentioned above. However, the individual and the total loan amount cannot exceed 100% of the net value of the Company's latest financial statement.

• Note 2: Due to capital reduction of Sun Can International Ltd., the amount loaned to Sinxon Plastic (Dong Guan) Ltd., which had previously met the regulations above, exceeded the limitation. Sun Can International Ltd. has thus proposed a plan for improvement according to the letter of Jing-Guang-Zheng-Shen-Zing Decree No.1100365550 on December 16, 2021 from Securities and Futures Bureau, Financial Supervisory Commission, in which the loan of USD $7.7 million will be converted to shares of capital and the loan amount will be reduced to $0. The proposal was approved by board of directors on December 29, 2021.

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TABLE 2

COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2021

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

Holding Company Name	Type and Issuer of Marketable Securities	Relationship with the Holding Company	Financial Statement Account			December 31, 2021	December 31, 2021			Note
				Shares		Carrying Amount	Percentage of Ownership (%)		Fair Value
Changshu Huaxon Industry Co., Ltd. Coxon Precise Industrial Co., Ltd. Coxon Industry (Changshu) Co., Ltd. Coxon Precise International Limited	Financial instruments Structured deposits Shares Halo Neuro Inc. Fuji Seiki Co., Ltd. Youyang Electronic Technology (Shanghai) Co., Ltd. CGK International Co., Ltd. Simpla Biotech Co., Ltd. Kin Tin Optotronic Co., Ltd. Cimoforce International Co., Ltd.	None None None None None None None Other related party	Financial assets at FVTPL - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current	- 306,720 450,000 300,000 1,800,000 1,500,000 2,255,193 2,273,172		$ 13,024 $ - 53,355 - $ 53,355 $ 10,731 9,204 - 4,166 $ 24,101	- - - 30 - 11 6 11		$ 13,024 $ - 53,355 - $ 53,355 $ 10,731 9,204 - 4,166 $ 24,101

Note 1: The Marketable Securities in this table is referred to as shares, bonds, beneficiary certificates, and derivatives related to items mentioned above in scope of IFRS 9.

Note 2: Please refer to Schedules 5 and 6 for information on invested subsidiaries, affiliates and joint-venture interests.

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TABLE 3

COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

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

Buyer	Related Party	Relationship		Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Trade (Payables) Receivables	Notes/Trade (Payables) Receivables	Note
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Financial Statement Account and Ending Balance	% of Total
Coxon Precise Industrial Co., Ltd. Sun Can International Ltd. Sun Can International Ltd. Sinxon Plastic (Dong Guan) Ltd.	Sun Can International Ltd. Sinxon Plastic (Dong Guan) Ltd. Coxon Precise Industrial Co., Ltd. Sun Can International Ltd.	Parent and subsidiary Parent and subsidiary Parent and subsidiary Parent and subsidiary	Purchases Purchases Sales Sales	$ 152,526 148,095 152,526 148,095	20 100 100 12	120 days 120 days 120 days 120 days	In accordance with mutual agreements In accordance with mutual agreements In accordance with mutual agreements In accordance with mutual agreements	120 days 120 days 120 days 120 days	Trade payables $ 48,069 Trade payables 21,741 Trade receivables 48,069 Trade receivables 21,741	12 100 100 5

Note: The related party transactions between subsidiaries have been eliminated upon consolidation.

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TABLE 4

COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2021

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

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate		Overdue	Amounts Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
Sun Can International Ltd. Coxon Industry (Changshu) Co., Ltd. Changshu Huaxon Industry Co., Ltd. Coxon Industry (Changshu) Co., Ltd.	Sinxon Plastic (Dong Guan) Ltd. Sinxon Plastic (Dong Guan) Ltd. Sinxon Plastic (Dong Guan) Ltd. Dong Guan Chensong Plastic Co., Ltd.	Associate Associate Associate Associate	$ 213,136 (Note 1) 282,452 (Note 1) 173,660 (Note 1) 131,493 (Note 1)	- - - -	$ - - - -	- - - -	$ - - - -	$ - - - -

Note 1: Recognized on other receivables.

Note 2: The related party transactions between subsidiaries had been eliminated upon consolidation.

• 65 -

TABLE 5

COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Investment Amount	Investment Amount	As of December 31, 2021	As of December 31, 2021	As of December 31, 2021	Net Income (Loss ) of the Investee	Share of Profits(Loss)	Note
				December 31, 2021	December 31, 2020	Shares	%	Carrying Amount
Coxon Precise Industrial Co., Ltd. Cheng Yee Enterprise Ltd. Coxon Industry Ltd. Plenty Link Technology Co., Ltd.	Sun Can International Ltd. Coxon Industry Ltd. Cheng Da Industry Cheng Yee Enterprise Ltd. Plenty Link Technology Co., Ltd. Hang Yuan Enterprise Ltd. Coxon Precise International Limited Coxon Medical Limited Siix Coxon Precision Phils, Inc. Shuang Ying Science and Technology Ltd.	Samoa Samoa Samoa Samoa Cayman Islands Samoa Virgin Islands Samoa Philippines Taiwan	Global investing activities Global investing activities Global investing activities Global investing activities Global investing activities Global investing activities Global investing activities Global investing activities Manufacturing and sale of nonmetal molding Manufacturing of optical instrument and electronic components	$ 258,138 1,371,321 1,037,385 590,371 368,107 714,760 - - - 19,500	$ 551,004 1,371,321 1,098,824 1,037,910 368,107 714,760 91,020 59,490 121,642 19,500	7,932,762 42,870,000 33,769,000 12,400,000 11,700,000 20,000,000 - - - 1,950,000	100 100 100 100 65 100 - - - 65 (Note 2)	$ 45,860 214,235 98,911 1,578,600 17,414 1,577,575 - - - 994	$ (88,348) (20,211) (42,619) (60,573) (62,858) (46,690) 3,409 (8,712) (3,902) (5,663)	$ (88,348) (20,211) (42,619) (60,573) (40,858) (46,690) 3,409 (6,970) - (3,681)	Note 6 Note 6 Note 6 Note 5 Note 4 Note 3

Note 1: The share of profits and losses of subsidiaries and associates recognized by the equity method of the subsidiaries included in the consolidated financial report, the investment by the equity method in the account of the investing company and the net equity value of the invested company have been fully offset.

Note 2: The company holds 65% equity of Plenty Link Technology Co., Ltd. and Plenty Link Technology Co., Ltd. holds 100% equity of Shuangying Technology Co., Ltd. Therefore, the company indirectly holds Shuangying Technology Co., Ltd. 65% stake in the company.

Note 3: Disposed on June 16, 2021.

Note 4: Disposed on April 29, 2021.

Note 5: Disposed on August 17, 2021.

Note 6: On August 13, 2021, the board of directors resolved to make capital reduction for Cheng Yi Enterprise Co., Ltd., Xin Qin International Co., Ltd., and Cheng Da Industrial Co., Ltd, and the funds have all been repatriated to the Company.

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TABLE 6

COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars and U.S. Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2021	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2021	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of December 31, 2021	Accumulated Repatriation of Investment Income as of December 31, 2021	Note
					Outward	Inward
Shanghai Sonor Enterprise Co., Ltd. (Note 1) Vastech Plastic (Shanghai) Industrial Co., Ltd. (Note 1) Changshu Huaxon Industry Co., Ltd. (Note 2) Sinxon Plastic (Dong Guan) Ltd. (Note 3) Coxon Industry (Changshu) Co., Ltd. (Note 2) Toyo Precision Appliance (Kunshan) Co., Ltd. (Note 2) Shanghai Coxon Medical Ltd. (Notes 2 and 4) Dong Guan Cheng Da Metal Product Company Ltd. (Note 5) Dong Guan Chensong Plastic Co., Ltd. (Note 6) Dong Guan Shuang-Ying Photoelectric Technology Co., Ltd. (Note 7) Wuhan Resin-hill Co., Ltd. (Note 8)	Manufacturing and sale of nonmetal molding, precision plastic injection parts, related semi-finished goods and components Manufacturing and sale of nonmetal molding, precision plastic injection parts and optical lens Leasehold estate Manufacturing and sale of nonmetal molding and automobile parts Manufacturing and sale of nonmetal molding, precision plastic injection parts, related semi-finished goods and components Manufacturing and processing of sheet metal-press work parts Manufacturing of medical materials Manufacturing instrument, electronic products and plastic products Manufacturing and sale of metal and nonmetal molding and automobile parts Manufacturing of optical instrument and electronic components Manufacturing of automotive hardware	$ - - 938,525 550,844 1,211,000 - - - 1,367,130 465,025 5,000 (Note 10)	Investment through third party Investment through third party Investment through third party Investment through third party Investment through third party Investment through third party Investment through third party Investment through third party Investment through third party Investment through third party Note 11	$ 95,094 42,786 64,270 320,818 863,138 194,278 23,120 141,448 471,320 279,595 -	$ - - - - - - - - - - -	$ - - - - - - - - - - -	$ 95,094 42,786 64,270 320,818 863,138 194,278 23,120 141,448 471,320 279,595 -	$ - - (9,737) (88,490) (58,918) - (9,109) (183) (17,709) (55,288) (2,493)	- - 100 100 100 - - - 100 65 40	$ - - (9,737) (88,490) (58,918) - (7,287) (183) (17,709) (55,288) (997)	$ - - 750,639 (166,309) 739,049 - - - 121,291 16,741 2,784	$ - - - - - - - - - - -
												(Continued)

• 67 -

Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
$2,495,867	$4,885,793	Note 9

• Note 1: The Company invested in Vastech Industrial Co., Ltd. through Teckyork Enterprise Co., Ltd. in the third region, and Vastech Industrial Co., Ltd. invested in Vastech Plastic (Shanghai) Industrial Co., Ltd., which was liquidated in June 2018. Teckyork Enterprise Co., Ltd. and its subsidiaries had been sold on June 19, 2019 and the Group had received proceeds. Yet, deregistration for Shanghai Sonor Enterprise Co., Ltd. and Vasetch Plastic (Shanghai) Industrial Co., Ltd. were still pending approval by Investment Commission, MOEA.

• Note 2: The Company invested in 100% ownership of Hang Yuan Enterprise Ltd., 100% ownership of Coxon Precise International Limited, and 80% of ownership of Coxon Medical Limited through Cheng Yee Enterprise Ltd. in the third region. Hang Yuan Enterprise Ltd., Coxon Precise International Limited, and Coxon Medical Limited respectively invested in 100% ownership of Coxon Industry (Changshu) Co., Ltd., 100% ownership of Changshu Huaxon Industry Co., Ltd., 15% of ownership of Toyo Precision Appliance (Kunshan) Co., Ltd., and 100% ownership of Shanghai Coxon Medical Limited. On March 26, 2021, the Board of directors resolved to dispose 15% of ownership of Toyo Precision Appliance (Kunshan) Co., Ltd., and it was transferred on June 4, 2021.

• Note 3: The Company invested in Xinsong Plastic (Dongguan) Co., Ltd. through Xinqin International Co., Ltd. in the third region.

• Note 4: The capital invested in Shanghai Coxon Medical Ltd. came from Coxon Medical Limited’s own capital of US$3,700 thousand. Coxon Medical Limited and its subsidiaries were sold on April 29, 2021, and the proceeds has been fully collected.

• Note 5: The Company invested in Dong Guan Cheng Da Metal Product Company Limited through the third area Cheng Da Industry Ltd. On June 7, 2021, the board of directors resolved to reduce the capital of Dong Guan Cheng Da Metal Product Company Limited, and the funds have been repatriated to the Company. The subsequent disposal process was completed on November 30, 2021.

• Note 6: The Company invested in Dong Guan Chensong Plastic Co., Ltd. through Coxon Industrial Ltd. in the third region.

• Note 7: The Company invested in Dongguan Shuang-Ying Photoelectric Technology Co., Ltd. through Plenty Link Technology Co., Ltd. in the third region.

• Note 8: Coxon Industry (Changshu) Co., Ltd. invested 40% ownership of Wuhan Resin-hill Co., Ltd. with its own funds.

• Note 9: According to the newly revised “Principles for the Review of Investments or Technical Cooperation in the Mainland Area” on August 29, 1997, since the company has obtained the certification documents issued by the Industrial Bureau of the Ministry of Economic Affairs that conform to the operation scope of the operating headquarters, there is no need to calculate the investment. limit.

Note 10: The paid-in capital is expressed in RMB.

Significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: See Table 3.

Endorsements/guarantees provided with investee companies in mainland China, either directly or indirectly through a third party: None.

Financing provided with investee companies in mainland China, either directly or indirectly through a third party: Table 1.

Other transactions which significantly affect profit and loss or the financial situation: None.

(Concluded)

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TABLE 7

COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2021

(Amounts in Thousands of New Taiwan Dollars)

No. (Note 1)	Investee Company	Counterparty	Flow of Transactions (Note 2)	Transaction Details	Transaction Details
				Financial Statement Account	Amount	Payment Terms (Note 3)	% of Total Sales or Assets (Note 4)
0	Coxon Precise Industrial Co., Ltd.	Sun Can International Ltd.	a	Purchases	$ 152,526	Note	4
1	Dong Guan Chensong Plastic Co., Ltd.	Coxon Industry (Changshu) Ltd.	c	Other payable	131,493	Note	3
2	Sun Can International Ltd.	Sinxon Plastic (Dong Guan) Ltd.	a a	Other receivables Purchases	213,136 148,095	Note Note	5 4
3	Sinxon Plastic (Dong Guan) Ltd.	Coxon Industry (Changshu) Ltd. Changshu Huaxon Industry Co., Ltd.	c c	Other payable Other payable	282,452 173,660	Note Note	7 4

Note 1: The numbers above are identified as follows:

• a. “0” for the Company.

• b. “1” for the subsidiary.

Note 2: The flow of transactions was as follows:

• a. From the Company to the subsidiary.

• b. From the subsidiary to the Company.

• c. Between subsidiaries.

• Note 3: The transaction terms with the related party are not significantly different from those to third parties.

• Note 4: For assets and liabilities, the amount is shown as a percentage to consolidated total assets as of December 31, 2021, while revenue, costs and expenses are shown as a percentage to consolidated total operating revenue for the year ended December 31, 2021.

• Note 5: The transactions among related parties were disclosed based on the standard which purchases (costs), sales revenue, trade receivables from related parties and trade payables to related parties over $100 million or 20% of the paid-in capital. Otherwise, the transaction among related are not disclosed.

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TABLE 8

COXON PRECISE INDUSTRIAL CO., LTD. AND SUBSIDIARIES

INFORMATION OF MAJOR SHAREHOLDERS DECEMBER 31, 2021

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
No shareholders with ownership of 5% or greater

Note: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

• 70 -