DELTA — Audit Report / Information 2019

Dec 16, 2019

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REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Shareholders of Delta Electronics, Inc.

Opinion

We have audited the accompanying consolidated balance sheets of Delta Electronics, Inc. and its subsidiaries (the “Group”) as at December 31, 2019 and 2018, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the audit reports of the other independent accountants as described in the Other Matter - Scope of the Audit section of our report, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2019 and 2018, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the “Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants” and Generally Accepted Auditing Standards in the Republic of China (ROC GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Professional Ethics for Certified Public Accountants in the Republic of China (the “Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. Based on our audits and the audit reports of other independent accountants, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

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

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

Assessment of the reasonableness of the purchase price allocation for business combination

Description

In April 2019, the Group publicly acquired 42.85% of Delta Electronics (Thailand) Public Company Limited through a tender offer and obtained control over the Company. The value of intangible assets, inclusive of goodwill and identifiable intangible assets-premium on customer relationship, etc., acquired from the merger is significant. The merger was accounted for in accordance with IFRS 3, “Business Combination”. For details of purchase price allocation, refer to Note 6(30).

As the allocation of goodwill and the net fair value of identifiable assets and liabilities are based on management’s estimation and involve accounting estimations and assumptions, we consider the above equity price allocation transaction a key audit matter.

How our audit addressed the matter

We obtained an understanding of the basis and process of purchase price allocation which was estimated by management. We reviewed the reasonableness of the fair value assessment for assets acquired and liabilities assumed, projected cash flow, and the fair value calculation model as indicated in the purchase price allocation reports prepared by the appraisers appointed by the Group. Our procedures also included the following:

• A. Assessing the setting of parameters of valuation models and calculation formulas;

• B. Comparing expected growth rates and gross margin with historical data, economic and industry forecasts; and

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• C. Comparing the discount rate with the cost of capital assumptions of cash generating units and rate of returns of similar assets.

Impairment assessment of goodwill

Description

As at December 31, 2019, the recognised goodwill as a result of acquisitions of Delta Electronics (Thailand) Public Company Limited, Eltek AS, Cyntec Co., Ltd., Delta Controls Inc., Delta Greentech (China) Co., Ltd. and Loy Tec electronics GmbH amounted to NT$51,555,322 thousand, constituting 16.58% of consolidated total assets. Refer to Notes 5(2) and 6(12) for details. As the balance of goodwill acquired from the merger is material, the valuation model adopted in the impairment assessment has an impact in determining the recoverable amount which involves the significant accounting estimates and prediction of future cash flows. Thus, we consider the impairment assessment of goodwill a key audit matter.

How our audit addressed the matter

We obtained management’s impairment assessment of goodwill, obtained an understanding of the process in determining the expected future cash flows based on each cash generating unit, and performed the following audit procedures:

• A. Assessing whether the valuation models adopted by the Group are reasonable for the industry, environment and the valued assets of the Group;

• B. Confirming whether the expected future cash flows adopted in the valuation model are in agreement with the budget provided by the business units; and

• C. Assessing the reasonableness of material assumptions, such as expected growth rates, operating margin and discount rates, by:

• (a) Checking the setting of parameters of valuation models and calculation formulas;

• (b) Comparing the expected growth rate and operating margin with historical data, economic and industrial forecast documents; and

• (c) Comparing the discount rate with cost of capital assumptions of cash generating units and rate of returns of similar assets.

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– Other matter Scope of the Audit

We did not audit the financial statements of certain consolidated subsidiaries and investments accounted for under equity method that are included in the consolidated financial statements. Total assets of the subsidiaries amounted to NT$56,952,036 thousand and NT$9,917,275 thousand, constituting 18.31% and 3.79% of consolidated total assets as at December 31, 2019 and 2018, respectively, and operating revenue was NT$45,582,501 thousand and NT$10,568,370 thousand, constituting 17.00% and 4.46% of consolidated total operating revenue for the years then ended, respectively. The balance of investment accounted for under equity method was NT$0 thousand and NT$8,154,777 thousand, constituting 0% and 3.11% of consolidated total assets as at December 31, 2019 and 2018, respectively, and the share of profit (loss) of associates and joint ventures accounted for under equity method and share of other comprehensive income of associates and joint ventures accounted for under equity method was NT$429,060 thousand and NT$204,169 thousand, constituting 1.80% and 1.06% of consolidated total comprehensive income for the years then ended, respectively. Those financial statements and information disclosed in Note 13 were audited by other independent accountants whose reports thereon have been furnished to us, and our opinion expressed herein is based solely on the audit reports of the other independent accountants.

– Other matter Parent company only financial reports

We have audited and expressed an unqualified opinion with other matter section on the parent company only financial statements of Delta Electronics, Inc. as at and for the years ended December 31, 2019 and 2018.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement,

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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 audit committee, are responsible for overseeing the Group’s financial reporting process.

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

As part of an audit in accordance with ROC GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• A. 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;

• B. 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;

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

• D. Conclude on the appropriateness of management’s use of the going concern basis of

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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 auditor’s 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 auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern;

E.

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; and

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditor’s 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.

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The consolidated financial statements of Delta Electronics, Inc. and subsidiaries as at and for the year ended December 31, 2019 expressed in US dollars are presented solely for the convenience of the reader and were translated from the financial statements expressed in New Taiwan dollars using the exchange rate of $29.98 to US$1.00 at December 31, 2019. This basis of translation is not in accordance with International Financial Reporting Standards, International Accounting Standards, and relevant interpretations and interpretative bulletins that are ratified by the Financial Supervisory Commission.

Lin, Yu-Kuan Chou, Chien-Hung

for and on behalf of PricewaterhouseCoopers, Taiwan

March 10, 2020

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

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

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2019 AND 2018

(EXPRESSED IN THOUSANDS OF DOLLARS)

Assets Current assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Contract assets - current Notes receivable, net Accounts receivable, net Accounts receivable - related parties Other receivables Other receivables - related parties Current income tax assets Inventories Prepayments Other current assets Total current assets Non-current assets Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non-current Contract assets - non-current Investments accounted for under equity method Property, plant and equipment Right-of-use assets Investment property, net Intangible assets Deferred income tax assets Other non-current assets Total non-current assets Total assets	Notes 6(1) 6(2) 6(3) 6(5) 6(5) 7 7 6(7) 8 6(2) 6(3) 6(8) 6(9) and 8 6(10) 6(11) 6(12) 6(27) 6(13) and 8	US Dollars December 31, 2019 $ 1,466,311 37,440 10,668 36,274 127,306 1,766,348 8,794 49,354 18 12,430 1,311,422 80,078 15,445 4,921,888 74,224 59,950 10,151 37,989 2,121,113 103,864 469 2,749,588 222,795 72,795 5,452,938 $ 10,374,826	New Taiwan Dollars	New Taiwan Dollars
			December 31, 2019 $ 43,960,001 1,122,458 319,823 1,087,489 3,816,628 52,955,106 263,644 1,479,625 532 372,654 39,316,423 2,400,734 463,074 147,558,191 2,225,239 1,797,301 304,338 1,138,920 63,590,981 3,113,833 14,070 82,432,653 6,679,405 2,182,359 163,479,099 $ 311,037,290	December 31, 2018
				$ 59,618,697 1,000,116 57,656 1,708,291 4,091,231 52,053,496 1,722,114 757,008 99,389 293,394 34,301,866 1,151,065 451,583
				157,305,906
				2,392,799 2,920,338 495,875 9,393,716 46,428,874 - 1,644,728 32,628,388 6,179,485 2,545,315
				104,629,518
				$ 261,935,424

(Continued)

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2019 AND 2018

(EXPRESSED IN THOUSANDS OF DOLLARS)

Liabilities and Equity Current liabilities Short-term borrowings Financial liabilities at fair value through profit or loss - current Contract liabilities - current Notes payable Accounts payable Accounts payable - related parties Other payables Current income tax liabilities Other current liabilities Total current liabilities Non-current liabilities Long-term borrowings Deferred income tax liabilities Lease liabilities - non-current Other non-current liabilities Total non-current liabilities Total liabilities Equity Share capital Share capital - common stock Capital surplus Capital surplus Retained earnings Legal reserve Special reserve Unappropriated retained earnings Other equity interest Other equity interest Equity attributable to owners of the parent Non-controlling interest Total equity Significant contingent liabilities and unrecorded contract commitments Significant subsequent events Total liabilities and equity	Notes 6(14) 6(2) 6(21) 7 6(15) 6(15) 6(27) 6(16) 6(17) 6(18) 6(19) 4(3) and 6(20) 9 11	US Dollars New Taiwan Dollars December 31, 2019 December 31, 2019 December 31, 2018 $ 252,700$ 7,575,932 $ 6,259,062 531 15,929 8,544 111,815 3,352,208 2,643,318 723 21,669 7,955 1,316,827 39,478,462 39,016,773 1,074 32,197 1,484,335 961,620 28,829,379 24,786,588 72,951 2,187,076 2,712,106 141,204 4,233,308 3,710,299 2,859,445 85,726,160 80,628,980 925,578 27,748,839 25,232,787 467,274 14,008,861 11,569,432 47,407 1,421,265 - 259,430 7,777,723 5,043,317 1,699,689 50,956,688 41,845,536 4,559,134 136,682,848 122,474,516 866,425 25,975,433 25,975,433 1,637,870 49,103,331 48,397,067 834,915 25,030,754 23,211,444 252,203 7,561,032 7,088,143 1,337,837 40,108,361 33,160,104 ( 254,237) ( 7,622,034) ( 7,561,032 ) 4,675,013 140,156,877 130,271,159 1,140,679 34,197,565 9,189,749 5,815,692 174,354,442 139,460,908 $ 10,374,826 $ 311,037,290 $ 261,935,424

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

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2019 AND 2018

(EXPRESSED IN THOUSANDS OF DOLLARS, EXCEPT EARNINGS PER SHARE DATA)

Items

US Dollars New Taiwan Dollars Notes 2019 2019 2018 6(21) and 7 $ 8,943,676 $ 268,131,397 $ 237,017,809 6(7)(25) (26) and 7 ( 6,458,815) ( 193,635,252) ( 173,463,422) 2,484,861 74,496,145 63,554,387 6(25)(26) ( 661,682) ( 19,837,224) ( 16,553,772) ( 380,864) ( 11,418,313) ( 9,714,466) ( 796,794) ( 23,887,886) ( 19,257,915) 12(2) 1,870 56,068 138,489 ( 1,837,470)( 55,087,355) ( 45,387,664) 647,391 19,408,790 18,166,723 6(22) 134,662 4,037,166 4,373,591 6(23) 210,288 6,304,445 ( 134,572) 6(24) ( 24,611 ) ( 737,869) ( 548,704) 6(8) 4,732 141,877 943,990 325,071 9,745,619 4,634,305 972,462 29,154,409 22,801,028 6(27) ( 174,338) ( 5,226,653) ( 4,152,444) $ 798,124 $ 23,927,756 $ 18,648,584

Sales revenue Operating costs Gross profit Operating expenses Selling expenses General and administrative expenses Research and development expenses Expected credit impairment gain Total operating expenses Operating profit Non-operating income and expenses Other income Other gains and losses Finance costs Share of profit of associates and joint ventures accounted for under equity method Total non-operating income and expenses Profit before income tax Income tax expense Profit for the year

(Continued)

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2019 AND 2018

(EXPRESSED IN THOUSANDS OF DOLLARS, EXCEPT EARNINGS PER SHARE DATA)

				US Dollars	New Taiwan Dollars	New Taiwan Dollars
Items	Notes			2019	2019		2018
Other comprehensive income (loss)
Components of other comprehensive
income (loss) that will not be
reclassified to profit or loss
Gain (loss) on remeasurements of
defined benefit plans		(	$	11,220) ($	336,375)	( $	34,508)
Unrealised gain (loss) on valuation	6(3)
of equity investment at fair value
through other comprehensive
income				6,674	200,079	(	820,308)
Share of other comprehensive income
(loss) of associates and joint
ventures accounted for under equity
method that will not be reclassified
to profit or loss				550	16,500		15,249
Income tax related to components of	6(27)
other comprehensive income that
will not be reclassified to profit or
loss				203	6,088	(	61,234)
Other comprehensive income (loss)
that will not be reclassified to
profit or loss		(		3,793)(	113,708)	(	900,801)
Components of other comprehensive
income (loss) that will be reclassified
to profit or loss
Financial statements translation
differences of foreign operations		(		98,697) (	2,958,933)		2,184,566
Gain on hedging instrument				90	2,700		47,162
Share of other comprehensive income
(loss) of associates and joint ventures
accounted for under equity method
that will be reclassified to profit or
loss				117,914	3,535,054	(	771,659)
Income tax relating to the components	6(27)
of other comprehensive income that
will be reclassified to profit or loss		(		17,583)(	527,130)		42,768
Other comprehensive income that
will be reclassified to profit or loss				1,724	51,691		1,502,837
Other comprehensive income (loss) for
the year		($		2,069)($	62,017)	$	602,036
Total comprehensive income for the
year			$	796,055 $	23,865,739	$	19,250,620
Profit attributable to:
Owners of the parent			$	771,107 $	23,117,797	$	18,193,093
Non-controlling interest			$	27,017 $	809,959	$	455,491
Comprehensive income attributable to:
Owners of the parent			$	739,334 $	22,165,228	$	18,813,838
Non-controlling interest			$	56,721 $	1,700,511	$	436,782
Earnings per share
Basic earnings per share	6(28)		$	0.30 $	8.90	$	7.00
Diluted earnings per share	6(28)		$	0.30 $	8.85	$	6.96

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

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2019 AND 2018

(EXPRESSED IN THOUSANDS OF DOLLARS)

Items	Notes 6(19) 6(20) 6(3) 3(1) 6(19) 6(31) 6(20) 6(3)				Equityattributable to ow	ners of theparent
		Share capital - common stock Capital surplus $ 25,975,433 $ 48,446,318 - - 25,975,433 48,446,318 - - - - - - - - - - - - - ( 49,251) - - - - $ 25,975,433 $ 48,397,067 $ 25,975,433 $ 48,397,067 - - 25,975,433 48,397,067 - - - - - - - - - - - - - 34,941 - 671,323 - - - - $ 25,975,433 $ 49,103,331		Legal reserve $ 21,373,388 - 21,373,388 - - - 1,838,056 - - - - - $ 23,211,444 $ 23,211,444 - 23,211,444 - - - 1,819,310 - - - - - - $ 25,030,754	Retained earnings Other equityinterest Special reserve Unappropriated retained earnings Financial statements translation differences of foreign operations Unrealised gain (loss) on financial assets measured at fair value through other comprehensive income Unrealised gain (loss) on available- for-sale financial assets Hedging instrument gain (loss) on effective hedge of cash flow hedges $ 2,767,749 $ 33,082,224 ( $ 5,911,839) $ - ($ 1,256,841) $ 80,537 - 1,118,916 - ( 2,375,757) 1,256,841 ( 80,537 ) 2,767,749 34,201,140 ( 5,911,839) ( 2,375,757) - - - 18,193,093 - - - - - ( 15,946 ) 1,489,814 ( 903,738) - - - 18,177,147 1,489,814 ( 903,738) - - - ( 1,838,056 ) - - - - 4,320,394 ( 4,320,394 ) - - - - - ( 12,987,717 ) - - - - - ( 62,680 ) - - - - - - - - - - - ( 9,336 ) - 9,336 - - $ 7,088,143 $ 33,160,104 ( $ 4,422,025) ( $ 3,270,159) $ - $ - $ 7,088,143 $ 33,160,104 ( $ 4,422,025) ( $ 3,270,159) $ - $ - - 1,943 - - - - 7,088,143 33,162,047 ( 4,422,025) ( 3,270,159) - - - 23,117,797 - - - - - ( 255,785 ) ( 912,967) 200,079 - - - 22,862,012 ( 912,967) 200,079 - - - ( 1,819,310 ) - - - - 472,889 ( 472,889 ) - - - - - ( 12,987,717 ) - - - - - - - - - - - - - - - - - - - - - - - ( 635,782 ) - 635,782 - - $ 7,561,032 $ 40,108,361 ( $ 5,334,992) ( $ 2,434,298) $ - $ -		Other equityinterest
									Gain (loss) on hedging instruments
2018 New Taiwan Dollars Balance at January 1, 2018 Effects of retrospective application and retrospective restatement Balance after retrospective restatement at January 1, 2018 Profit for the year Other comprehensive income (loss) for the year Comprehensive income (loss) for the year Distribution of 2017 earnings Legal reserve Special reserve Cash dividends Changes in ownership interests in subsidiaries Changes in non-controlling interests Disposal of equity investments at fair value through other comprehensive income Balance at December 31, 2018 2019 New Taiwan Dollars Balance at January 1, 2019 Effects of retrospective application and retrospective restatement Balance after retrospective restatement at January 1, 2019 Profit for the year Other comprehensive income (loss) for the year Comprehensive income (loss) for the year Distribution of 2018 earnings Legal reserve Special reserve Cash dividends Changes in ownership interests in subsidiaries Difference between consideration and carrying amount of subsidiaries acquired or disposed Changes in non-controlling interests Disposal of equity investments at fair value through other comprehensive income Balance at December 31, 2019

(Continued)

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2019 AND 2018

(EXPRESSED IN THOUSANDS OF DOLLARS)

Items	Notes 3(1) 6(19) 6(31) 6(20) 6(3)				Equityattrib	utable to owners	o	f theparent	f theparent			Total $ 4,345,269 65 4,345,334 771,107 ( 31,773 ) 739,334 - - - ( 433,213) 1,166 22,392 - - $ 4,675,013	Non- controlling interest Total equity $ 306,529 $ 4,651,798 - 65 306,529 4,651,863 27,017 798,124 29,704 ( 2,069) 56,721 796,055 - - - - - - - ( 433,213) - 1,166 ( 165,032) ( 142,640) 942,461 942,461 - - $ 1,140,679 $ 5,815,692	Total equity
		Share capital - common stock $ 866,425 - 866,425 - - - - - - - - - - - $ 866,425	Capital surplus $ 1,614,312 - 1,614,312 - - - - - - - 1,166 22,392 - - $ 1,637,870	R	etained earnings Special reserve Unappropriated retained earnings $ 236,429 $ 1,106,074 - 65 236,429 1,106,139 - 771,107 - ( 8,531) - 762,576 - - - ( 60,684) 15,774 ( 15,774) - ( 433,213) - - - - - - - ( 21,207) $ 252,203 $ 1,337,837			Other equityinterest
				Legal reserve $ 774,231 - 774,231 - - - - 60,684 - - - - - - $ 834,915	Special reserve $ 236,429 - 236,429 - - - - - 15,774 - - - - - $ 252,203	Financial statements translation differences of foreign operations ($ 147,499) - ( 147,499) - ( 30,453 ) ( 30,453 ) - - - - - - - - ($ 177,952)		Unrealised gain (loss) on financial assets measured at fair value through other comprehensive income	Unrealised gain (loss) on available-for- sale financial assets	Hedging instrument gain (loss) on effective hedge of cash flow hedges $ - - - - - - - - - - - - - $ -	Gain (loss) on hedging instruments
2019 US Dollars Balance at January 1, 2019 Effects of retrospective application and retrospective restatement Balance after retrospective restatement at January 1, 2019 Profit for the year Other comprehensive income (loss) for the year Comprehensive income (loss) for the year Distribution of 2018 earnings Legal reserve Special reserve Cash dividends Changes in ownership interests in subsidiaries Difference between consideration and carrying amount of subsidiaries acquired or disposed Changes in non-controlling interests Disposal of equity investments at fair value through other comprehensive income Balance at December 31, 2019											$ 4,375 -			$ 4,651,798 65
											4,375			4,651,863
											- 537
											537
											- - - - - - - -
											$ 4,912			$ 5,815,692

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

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2019 AND 2018

(EXPRESSED IN THOUSANDS OF DOLLARS)

CASH FLOWS FROM OPERATING ACTIVITIES Consolidated profit before tax for the year Adjustments to reconcile net income to net cash generated from operating activities Income and expenses having no effect on cash flows Depreciation Amortization Expected credit impairment gain Net(gain)loss on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share-based payments Share of profit of associates accounted for under equity method Loss (gain) on disposal of property, plant and equipment Gain on disposal of investments Reversal of impairment loss on non-financial assets Changes in assets/liabilities relating to operating activities Net changes in assets relating to operating activities Financial assets mandatorily measured at fair value through profit or loss Contract assets Notes receivable Accounts receivable Accounts receivable - related parties Other receivables Other receivables - related parties Inventories Prepayments Other current assets Other non-current assets Net changes in operating liabilities relating to operating activities Contract liabilities Notes payable Accounts payable Accounts payable - related parties Other payables Other current liabilities Other non-current liabilities Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from operating activities

US Dollars New Taiwan Dollars Notes 2019 2019 2018 $ 972,462 $ 29,154,409 $ 22,801,028 6(9)(10)(11) (25) 363,996 10,912,594 8,939,275 6(12)(25) 102,497 3,072,851 2,203,617 12(2) ( 1,870 ) ( 56,068 ) ( 138,489 ) 6(23) ( 12,207 ) ( 365,965 ) 202,545 6(24) 24,408 731,745 545,804 6(22) ( 29,571 ) ( 886,537 ) ( 851,185 ) 6(22) ( 9,416 ) ( 282,302 ) ( 181,942 ) 6(29) 1,373 41,176 ( 5,282 ) 6(8) ( 4,732 ) ( 141,877 ) ( 943,990 ) 6(23) 1,883 56,441 ( 274,921 ) 6(23) ( 200,197 ) ( 6,001,894 ) - 6(23) ( 3,009 ) ( 90,215 ) - 9,470 283,898 240,966 27,096 812,339 ( 533,977 ) 9,160 274,603 ( 80,786 ) 277,066 8,306,424 ( 3,501,951 ) 94,511 2,833,432 ( 402,645 ) ( 3,890 ) ( 116,634 ) ( 42,452 ) 3,632 108,894 ( 29,208 ) 188,188 5,641,877 ( 3,476,464 ) ( 10,740 ) ( 321,976 ) 580,341 ( 11 ) ( 328 ) 240,631 4,348 130,389 50,370 23,645 708,890 949,545 457 13,714 ( 1,837 ) ( 224,254 ) ( 6,723,132 ) 2,307,949 ( 79,424 ) ( 2,381,143 ) 278,138 ( 4,269 ) ( 127,974 ) ( 422,895 ) ( 22,669 ) ( 679,602 ) ( 1,828,485 ) 22,765 682,490 821,714 1,520,698 45,590,519 27,445,414 31,427 942,187 781,652 9,416 282,302 714,031 ( 24,323 ) ( 729,218 ) ( 536,989 ) ( 139,260) ( 4,175,022) ( 4,732,398) 1,397,958 41,910,768 23,671,710

(Continued)

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2019 AND 2018

(EXPRESSED IN THOUSANDS OF DOLLARS)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income Disposal of financial assets at fair value through other comprehensive income Acquisition of investments accounted for under equity method Net cash flow from acquisition of subsidiaries (net of cash acquired) Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of investment properties Disposal of investment properties Acquisition of intangible assets (Increase) decrease in other financial assets (Increase) decrease in other non-current assets Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term borrowings Proceeds from long-term debt Lease principal repayment Cash dividends paid Cash dividends paid to minority share interests Acquisition of ownership interests in subsidiaries Net cash flows used in financing activities Effects due to changes in exchange rate Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

US Dollars New Taiwan Dollars Notes 2019 2019 2018 ( $ 373) ( $ 11,190 ) ( $ 439,188 ) 6(3) 37,187 1,114,871 733 ( 405) ( 12,154 ) ( 210,950 ) 6(30) ( 801,135) ( 24,018,015 ) - 6(9) ( 562,581)( 16,866,186 ) ( 11,340,871 ) 15,763 472,561 676,924 - - ( 15,448 ) - - 38 6(12) ( 22,247 ) ( 666,967 )( 503,457) ( 1,714 ) ( 51,359 ) 4,820 ( 16,327) ( 489,479) 151,465 ( 1,351,832) ( 40,527,918)( 11,675,934) 6(32) 43,925 1,316,870 ( 11,204,447 ) 6(32) 80,316 2,407,888 14,138,799 ( 19,555 ) ( 586,249 ) - 6(19) ( 433,213 ) ( 12,987,717 ) ( 12,987,717 ) 6(20) ( 77,391 ) ( 2,320,171 ) ( 369,183 ) 6(20)(31) ( 142,638) ( 4,276,338) ( 94,355) ( 548,556) ( 16,445,717) ( 10,516,903) ( 19,875) ( 595,829) 773,207 ( 522,305 ) ( 15,658,696 ) 2,252,080 1,988,616 59,618,697 57,366,617 $ 1,466,311 $ 43,960,001$ 59,618,697

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

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2019 AND 2018

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

1. HISTORY AND ORGANISATION

Delta Electronics, Inc. (the Company) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the Group) are global leaders in power and thermal management solutions and are primarily engaged in the research and development, design, manufacturing and sale of electronic control systems, DC brushless fans, thermal system, and miniaturization key component, industrial automation products, digital display products, communication products, consumer electronics products, energy-saving lighting application, renewable energy applications, EV charging, energy technology services and c onsulting services of building management and control solutions, etc. The Group’s mission statement, to provide innovative, clean and energy-efficient solutions for a better tomorrow, focuses on addressing key environmental issues such as global climate change. With the concern for the environment, the Group continues to develop innovative energy-efficient products and solutions. In recent years, the Group has transformed from a product provider towards a solution provider and the Group’s business is segregated into power electronics business, automation business, and infrastructure business.

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

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised for issuance by the Board of Directors on March 10, 2020.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

• (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC effective from 2019 are as follows:

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

Except for the following, the above standards and interpretations have no significant impact to the

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Group’s financial condition and financial performance based on the Group’s assessment. IFRS 16, ‘Leases’

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

• B. The Group has elected to apply IFRS 16 by not restating the comparative information (referred herein as the ‘modified retrospective approach’) when applying “IFRSs” effective in 2019 as endorsed by the FSC. Accordingly, the Group increased ‘right-of-use asset’, ‘lease liability’ and ‘retained earnings’ by $2,749,997, $1,695,257 and $1,943, respectively, and decreased other noncurrent assets by $1,052,797 with respect to the lease contracts of lessees on January 1, 2019.

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

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

• (b) The use of a single discount rate to a portfolio of leases with reasonably similar characteristics.

• (c) The use of hindsight in determining the lease term where the contract contains options to extend the lease.

• D. The Group calculated the present value of lease liabilities by using the weighted average incremental borrowing interest rate of 1.19%.

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

follows:
Operating lease commitments disclosed by applying IAS 17 as at	$	1,858,381
December 31, 2018
Less: Short-term leases	(	189,770)
Add: Adjustments as a result of a different treatment of extension options		232,621
Total lease contracts amount recognised as lease liabilities by applying
IFRS 16 on January 1, 2019		1,901,232
Incremental borrowing interest rate at the date of initial application		1.19%
Lease liabilities recognised as at January 1, 2019 by applying IFRS 16	$	1,695,257

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

the Group

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

follows:
	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of	January 1, 2020
Material’
Amendments to IFRS 3, ‘Definition of a business’	January 1, 2020
Amendments to IFRS 9, IAS 39 and IFRS 7, ‘Interest rate benchmark	January 1, 2020
reform’

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

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

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

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2021
Amendments to IAS 1, ‘Classification of liabilities as current or	January 1, 2022
noncurrent’

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

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

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(2) Basis of preparation

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

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

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

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

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

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

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

• (b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries are consistent with the policies adopted by the Group.

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

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

• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All

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amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss, on the same basis as if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B. Subsidiaries included in the consolidated financial statements:

No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
1 2 3 4 5 6 7 8 9 10	Delta International Holding Limited (DIH) Delta Networks Holding Limited (DNH) Delta Electronics (Netherlands) B.V. (DEN) PreOptix (Hong Kong) Co., Ltd. (PHK) NeoEnergy Microelectronics, Inc. (NEM) Cyntec Co., Ltd. (Cyntec) DelBio Inc. (DelBio) Delta Electronics Capital Company (DECC) Delta Electronics Int'l (Singapore) Pte. Ltd. (DEIL-SG) Allied Material Technology Corp. (AMT)	Equity investments 〃 Sales of power products, display solution products, electronic components, industrial automation products and materials Equity investments Designing and experimenting on integrated circuits and information software services Research, development, manufacturing and sales of film optic- electronics devices Manufacturing, wholesale and retail of medical equipment Equity investments Sales of electronic products Lease services, etc.	Delta Electronics, Inc. 〃 〃 Delta Electronics, Inc. and DIH Delta Electronics, Inc. 〃 〃 〃 〃 〃	100 100 100 100 - 100 100 100 100 99.97	94 100 100 100 98.17 100 100 100 100 99.97	Note 1 Note 2 Note 3

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
11 12 13 14 15 16 17 18 19 20 21 22 23	Delta America Ltd. (DAL) Delta Electronics (H.K.) Ltd. (DHK) DEI Logistics (USA) Corp. (ALI) Delta Electronics (Japan), Inc. (DEJ) DAC Holding (Cayman) Limited (DAC) Ace Pillar Holding Co., Ltd. (Ace) Drake Investment (HK) Limited (Drake-HK) Delta Greentech (China) Co., Ltd. (DGC) Vivitek Corporation (Vivitek) Delta Greentech SGP Pte. Ltd. (DGSG) Delta Electronics Europe Limited (DEU) Boom Treasure Limited (Boom) Apex Investment (HK) Limited (Apex-HK)	Equity investments Equity investments, operations management and engineering services Warehousing and logistics services Sales of power products, display solution products, electronic components, industrial automation products and materials Equity investments 〃 〃 Sales of uninterruptible power systems Sales of projector products and their materials Equity investments Repair centre and providing support services Equity investments 〃	Delta Electronics, Inc., DEN, Castle Horizon Limited and Energy Dragon Global Limited DEN/DIH DIH 〃 〃 〃 DEN/DIH DGSG、Drake- HK、Boom/ DIH、 Ace、Drake-HK、 DGSG、Boom DIH DEN/DIH DIH DEN/DIH DIH	100 100 100 100 - - 100 95.91 100 100 100 100 100	100 100 100 100 100 100 100 95.91 100 100 100 100 100	Note 4 Note 5 Note 2 Note 4 Note 6 Note 4 Note 4 Note 26

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
24 25 26 27 28 29 30 31 32 33 34 35	Galaxy Star Investment (HK) Limited (Galaxy Star-HK) Jade Investment (HK) Limited (Jade-HK) Delta Electronics (Dongguan) Co., Ltd. (DDG) Delta Electronics Power (Dongguan) Co., Ltd. (DEP) Delta Electronics (Shanghai) Co., Ltd. (DPEC) Delta Electronics (Jiangsu) Ltd. (DWJ) Delta Electronics Components (Wujiang) Ltd. (DWC) Delta Video Display System (Wujiang) Ltd. (DWV) Delta Electronics (Wuhu) Co., Ltd. (DWH) Delta Electronics (Chenzhou) Co., Ltd. (DCZ) Delta Electronics International Mexico S.A. DE C.V. (DEIL- MX) Delta Electronics (Wujiang) Trading Co., Ltd. (DWT)	Equity investments 〃 Manufacturing and sales of transformer and thermal products Manufacturing and sales of power supplies Product design, management consulting service and distribution of electronic products Manufacturing and sales of power supplies and transformers Manufacturing and sales of new-type electronic components, variable-frequency drive and others Manufacturing and sales of various projectors Manufacturing and sales of LED light source, power supplies and others Manufacturing and sales of transformers Sales of power management system of industrial automation product and telecommunications equipment Installation, consulting and trading of electronic products	DIH 〃 DHK 〃 〃 DHK/DHK, Apex- HK, Galaxy Star-HK and Jade-HK 〃 〃 DHK 〃 〃 〃	100 100 100 100 100 100 100 100 100 100 100 -	100 100 100 100 100 100 100 100 100 100 100 100	Note 26 Note 26 Note 7 Note 7 Note 7 Note 8

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
36 37 38 39 40 41 42 43 44 45	Delta Green (Tianjin) Industries Co., Ltd. (DGT) Delta Electronics (Pingtan) Co., Ltd. (Delta Pingtan) PreOptix (Jiang Su) Co., Ltd. (PJS) Addtron Technology (Japan), Inc. (AT Japan) Delta Electronics (Korea), Inc. (Delta Korea) Delta Electronics Mexico S.A. DE C.V. (DEM) Delta Video Technology Limited (DVT) Wuhu Delta Technology Co., Ltd. (WDT) Chenzhou Delta Technology Co., Ltd. (CDT) Delta Energy Technology (Dongguan) Co., Ltd. (DET-DG)	Manufacturing and sales of transformers Wholesale and retail of electronic products and energy-saving equipment Manufacturing and sales of lenses and optical engines for projectors Trading of networking system and peripherals Sales of power products, display solution products electronic components, industrial automation products and their materials Manufacturing and sales of electronic products Sales of electronic products Manufacturing and sales of transformers 〃 Research and development of energy- saving technology, energy-saving equipment and energy management system as well as technology consulting service	DHK 〃 PHK DEJ 〃 DAC 〃 DWH DCZ DDG and DPEC	100 100 - 100 100 - - - 100 100	100 100 100 100 100 100 100 100 100 100	Note 9 Note 10 Note 11 Note 12 Note 25

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
46 47 48 49 50 51 52 53 54 55 56	Delta Energy Technology (Shanghai) Co., Ltd. (DET-SH) Delta Networks, Inc. (DNI Cayman) Delta Networks, Inc. (Taiwan) (DNIT) DNI Logistics (USA) Corporation (ALN) Delta Networks (H.K.) Limited (DNHK) Delta Networks (Dongguan) Ltd. (DII) Fairview Assets Ltd. (Fairview) Grandview Holding Ltd. (Grandview) Cyntec Holding (H.K.) Ltd. (CHK) Cyntec International Ltd. -Labuan (CIL-Labuan) Cyntec Electronics (Suzhou) Co., Ltd. (CES)	Energy performance contracting, development of energy- saving technology, energy-saving equipment and energy management system as well as consulting service, installation, sales, etc. Equity investments Research, development, design, manufacturing and sales of networking system and peripherals Trading of networking system and peripherals Equity investments Manufacturing and sales of other radio- broadcast receivers and the equipment in relation to broadband access networking system Equity investments 〃 〃 Trading Research, development, manufacturing and sales of new-type electronic components (chip components, sensing elements, hybrid integrated circuits) and wholesale of similar products	DPEC and DGC DNH Delta Electronics, Inc. DNI Cayman 〃 DNHK Cyntec Fairview Grandview 〃 CHK	100 100 - - 100 100 100 100 100 100 100	100 100 99.98 100 100 100 100 100 100 100 100	Note 13 Note 14

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
57 58 59 60 61 62 63 64 65 66 67 68 69 70	DelBio (Wujiang) Co., Ltd. ELTEK AS Castle Horizon Limited Energy Dragon Global Limited Delta Controls Inc. (DCI) DELTA ELECTRONICS HOLDING (USA) INC. ELTEK PAKISTAN (PRIVATE) LIMITED Eltek Deutschland GmbH ELTEK AUSTRALIA PTY LIMITED Eltek Egypt for Power Supply S.A.E. Eltek SGS Pvt Ltd. Eltek SGS Mechanics Pvt Ltd. ELTEK POWER PTE. LTD. Eltek Polska Sp. z o. o.	Manufacturing, wholesale and retail of medical equipment Research, development and sales of power supplies and others Equity investments 〃 Provide resolution of building management and control Equity investments Sales of power supplies and others Sales of power supplies and others and system installation 〃 Sales of power supplies and others Sales of power supplies and others and system installation Sales of power supplies and others Sales of power supplies and others and system installation 〃	DelBio DIH/DEN DEN 〃 DIH/DEN 〃 ELTEK AS 〃 〃 〃 〃 ELTEK AS and Eltek SGS Pvt Ltd. DELI-SG/ELTEK- AS ELTEK AS	100 100 100 100 100 100 100 100 100 95 100 51 - 51.04	100 100 100 100 100 100 100 100 100 95 100 51 100 51.04	Note 4 Note 4 Note 4 Note 3

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86	ELTEK POWER FRANCE SAS ELTEK LIMITED ELTEK MEA DMCC ELTEK KENYA LIMITED ELTEK WEST AFRICA LIMITED Eltek Italia S.r.l. Eltek Power Sweden AB Eltek Power (UK) Ltd. Eltek Power Oy OOO Eltek ELTEK ENERJI SISTEMLERI LIMITED SIRKETI Eltek Montage GmbH E.V.I Electronics Sp. z o. o. ELTEK POWER INCORPORATED ELTEK POWER CO., LTD. ELTEK POWER (CAMBODIA) LTD.	Sales of power supplies and others and system installation Equity investments and trading Sales of power supplies and others Sales of power supplies 〃 Sales of power supplies and others Sales of power supplies and equity investments Sales of power supplies Sales of power supplies and others Sales of power supplies and others and system installation Sales of power supplies and others Installation and maintenance of power supplies Trading and construction of power supply model Sales of power supplies and others 〃 〃	ELTEK AS 〃 〃 ELTEK MEA DMCC and ELTEK AS 〃 ELTEK AS 〃 〃 〃 〃 〃 Eltek Deutschland GmbH 〃 DEIL-SG/ELTEK POWER PTE. LTD. 〃 〃	100 100 100 100 100 100 100 100 100 100 100 100 - 100 100 100	100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100	Note 15 Note 16 Note 16 Note 17 Note 16

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
87 88 89 90 91 92 93 94 95 96	ELTEK POWER (MALAYSIA) SDN. BHD. ELTEK CVI LIMITED Eltek Energy Technology (Dongguan) Ltd. DELTA ELECTRONICS (USA) INC. DELTA ELECTRONICS (ARGENTINA) S.R.L. Eltek Sistemas de Energia Industria e Commercio S.A. DELTA ELECTRONICS (PERU) INC. S.R.L. DELTA ELECTRONICS (COLOMBIA) S.A.S. Eltekenergy Services, S.A. de C.V. Eltekenergy International de México, S. de R.L. de C.V.	Sales of power supplies and others Equity investments Development, manufacturing and sales of intelligent power equipment and system for supporting access networking system, and manufacturing and sales of intelligent power equipment for supporting renewable energy Manufacturing and sales of power supplies Sales of power supplies and others Manufacturing and sales of power supplies Sales of power supplies and others 〃 〃 〃	DEIL-SG/ELTEK POWER PTE. LTD. ELTEK LIMITED DHK/ELTEK CVI LIMITED DELTA ELECTRONICS HOLDING (USA) INC. DELTA ELECTRONICS (USA) INC. 〃 〃 〃 DELTA ELECTRONICS (USA) INC. and DELTA ELECTRONICS HOLDING (USA) INC. 〃	100 100 100 100 100 100 100 100 100 100	100 100 100 100 100 100 100 100 100 100	Note 16 Note 18 Note 19

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
97 98 99 100 101 102 103 104 105 106 107 108 109 110	Delta Electronics (Americas) Ltd. Delta Solar Solutions LLC 2009 PPA LLC DSS-CI LLC DSS-USF LLC Power Forest Technology Corporation Delta Energy Technology Puhuan (Shanghai) Co., Ltd. Loy Tec electronics GmbH (Loy Tec) LOYTEC Americas, Inc. Delta Electronics (Beijing) Co., Ltd. Delta Electronics (Xi'an) Co., Ltd. Beijing Industrial Foresight Technology Co., Ltd. UNICOM SYSTEM ENG. CORP. (UNICOM) Unicom (Nanjing) System Eng. Corp	Sales of electronic components Equity investments Sales of power supplies Rental of solar power systems 〃 IC design of power management Energy technology, development and consulting of environmental technical skills, and design and sales of energy saving equipment Consulting service of building management and control solutions 〃 Installation of mechanic, electronic, telecommunication and circuit equipment Sales of computer, peripheral and software Computer system services and data process Design and sales of computer, peripheral and information system (software and hardware) 〃	DAL 〃 Delta Electronics (Americas) Ltd. Delta Solar Solution LLC 〃 Cyntec DET-SH DEIL-SG Loy Tec DHK 〃 Delta Electronics (Beijing) Co., Ltd. Delta Electronics, Inc. UNICOM	100 100 100 100 100 59.03 100 100 100 100 100 - 100 100	100 100 100 100 100 59.03 100 85 100 100 100 80 100 100	Note 20 Note 21

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
111 112 113 114 115 116 117 118 119 120 121 122 123 124	Delta Electronics (Switzerland) AG (DES) Delta Greentech Electronics Industry LLC Delta Greentech (Brasil) S.A. (DGB) Delta Electronics (Czech Republic), spol. s.r.o. Delta Electronics (Italy) S.r.l. Delta Electronics (Poland) Sp. z o. o. Delta Solutions (Finland) Oy Delta Electronics Solutions (Spain) SL Delta Electronics (France) SA Delta Energy Systems (Sweden) AB Vivotek Inc. (Vivotek) Vatics Inc. Vivotek Holdings, Inc. Realwin Investment Inc. (Realwin)	Equity investments, research, development and sales of electronic products Marketing and sales of electronic products Manufacturing and sales of electronic products Sales of electronic products ″ ″ ″ ″ ″ ″ Manufacturing and sales of video compression software and encoding, network video server, webcam and its related components Designing and sales of multimedia integrated circuits Holding company Investment in the network communications industry	Delta Greentech (Netherlands) B.V. and DIH/DEN and Delta Greentech (Netherlands) B.V. DEN、Delta Greentech (Netherlands) B.V. DEN DES ″ ″ ″ ″ ″ ″ Delta Electronics, Inc. Vivotek and Realwin Vivotek ″	100 100 100 100 100 100 100 100 100 100 49.87 54.41 100 100	51 51 100 100 100 100 100 100 100 100 50.13 54.41 100 100	Note 4 Note 22 Note 22 Note 23

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
125 126 127 128 129 130 131 132 133 134 135 136 137 138 139	Vivotek Netherlands B.V. Vivotek (Japan) Inc. Vivotek USA, Inc. Wellstates Investment, LLC Otus Imaging, Inc. Aetek Inc. Vivotek Middle East FZCO Lidlight Inc. DELTA ELECTRONICS BRASIL LTDA. Delta Electronics (Thailand) Public Company Limited (DET) DET International Holding Limited Delta Energy Systems (Singapore) PTE. LTD. Delta Green Industrial (Thailand) Co., Ltd. DET Logistics (USA) Corporation Delta Energy Systems (Germany) GmbH	Sales service 〃 Sales of webcams and related components Investment and commercial lease of real estate Sales of webcams and related components 〃 〃 Sales of lighting equipment Manufacturing and sales of electronic products Manufacturing and exporting power supplies, other electronic parts and components Equity investments Equity investments, trading, management and consultancy Integration, sales, trading, installation and providing services of uninterruptible power supply, photovoltaic inverter, electric cars changer and data center Providing logistics services in USA Development, marketing and sales of electronic products	Vivotek 〃 Vivotek Holdings, Inc. Realwin Vivotek Realwin 〃 〃 DEN Delta Electronics, Inc., DEIL-SG and DIH DET 〃 〃 DET International Holding Limited 〃	100 100 100 100 100 56.21 89.99 51 100 63.78 100 100 100 100 100	100 100 100 100 100 56.21 89.99 51 100 - - - - - -	Note 24 Note 24 Note 24 Note 24 Note 24 Note 24

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
140 141 142 143 144 145 146 147 148 149 150 151 152	Delta Energy Systems (India) Private Ltd. Delta Electronics (Slovakia) s.r.o. Delta Energy Systems (Romania) S.R.L. Delta Energy Systems Property (Germany) GmbH Delta Electronics (Australia) Pty. Ltd. Delta Electronics India Pvt. Ltd. Delta Electronics (Myanmar) Co., Ltd. Delta Energy Systems (UK) Ltd. Delta PBA Engineering Solutions Co., Ltd. Delta Greentech (Netherlands) Cooperatie U.A. Delta Greentech (Netherlands) B.V. Delta Energy Systems LLC Eltek s.r.o.	Marketing and sales of electronic products Manufacturing and sales of power supplies, power system and OEM power system Research and development Property rights business Marketing and sales of renewable energy products Manufacturing and marketing of non- telecom power system and uninterruptible power supply, and sales of uninterruptible power supply Manufacturing of electronic products used in CMP manufacturing process and machinery Research and development of electronic products Providing solution for industrial automation Equity investments 〃 Marketing and sales of power systems Manufacturing of telecom power system	DET International Holding Limited DET International Holding Limited and Delta Energy Systems (Singapore) PTE. LTD. DET International Holding Limited Delta Energy Systems (Germany) GmbH Delta Energy Systems (Singapore) PTE. LTD. 〃 〃 〃 〃 〃 Delta Greentech (Netherlands) Cooperatie U.A. Delta Greentech (Netherlands) B.V. 〃	100 100 100 100 100 100 100 100 51 100 100 100 100	- - - - - - - - - - - - -	Note 24 Note 24 Note 24 Note 24 Note 24 Note 24 Note 24 Note 24 Note 24 Note 24 Note 24 Note 24 Note 24

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No.	Name of Subsidiary	Main Business Activities	Name of Investor	Ownership (%)	Ownership (%)	Description
				December 31, 2019	December 31, 2018
153 154 155 156 157	Delta Electronics (Automotive) Americas Inc. Amerlux, LLC Amerlux Lighting Asia, LLC Amerlux Lighting Hong Kong Limited Guangzhou Amerlux Lighting Co., Ltd.	Research and development of automotive power and traction inverter Design and producing of dedicated lighting system and facilities Equity investments 〃 Wholesale of lighting fixture and decorative objects	Delta Greentech (Netherlands) B.V. DEN Amerlux, LLC Amerlux Lighting Asia, LLC Amerlux Lighting Hong Kong Limited	100 100 100 100 100	- - - - -	Note 24 Note 24 Note 24 Note 24 Note 24

• Note 1: In December 2019, DIH repurchased and cancelled 6% of its own equity interest from non-controlling interest, and the Company held 100% equity interest of DIH after the cancellation.

• Note 2: This company had been liquidated in October 2019.

• Note 3: In March 2019, ELTEK AS sold ELTEK POWER PTE. LTD. to DEIL-SG, and ELTEK POWER PTE. LTD. merged into DEIL-SG in May 2019. Under the merger, DEIL-SG was the surviving company while ELTEK POWER PTE. LTD. was the dissolved company.

• Note 4: In November 2019, due to the reorganisation of the Group, DEN exchanged 100% equity interests of its subsidiaries, ELTEK AS, DCI, and DELTA ELECTRONICS HOLDING (USA) INC. and a 51% equity interest of its subsidiary, DES, for 100% equity interests of the DIH’ subsidiaries, DHK, Drake-HK, DGSG and BOOM.

• Note 5: This company had been liquidated in November 2019.

• Note 6: In July 2019, Drake-HK acquired 10.38% and 3.81% equity interest of DGC held by DIH and Ace, respectively.

• Note 7: In July 2019, DHK acquired 15% equity interest of DWV, DWC and DWJ held by ApexHK, Galaxy Star-HK and Jade-HK, respectively.

• Note 8: This company had been liquidated in April 2019.

• Note 9: In October 2019, PHK sold a 100% equity interest of its subsidiary, PJS.

• Note 10: This company had been liquidated in March 2019.

• Note 11: This company had been liquidated in August 2019.

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Note 12: This company had been liquidated in December 2019.

Note 13: Merged with the Company on April 1, 2019.

• Note 14: In August 2019, DNI Cayman sold this company to DIH, and this company merged into its subsidiary-ALI. Under the merger, ALI was the surviving company while ALN was the dissolved company.

• Note 15: This company had been liquidated in September 2019.

• Note 16: Relative to the merger described in Note 3, the investee was changed from ELTEK POWER PTE. LTD. to DEIL-SG.

• Note 17: 55% of shares are held through others due to local regulations.

• Note 18: 71% of shares are held through others due to local regulations.

• Note 19: In July 2019, this company was sold to DHK by ELTEK CVI LIMITED.

• Note 20: In May 2019, DEIL-SG acquired a 15% equity interest in Loy Tec electronics GmbH, and the total shareholding ratio is 100%.

• Note 21: This company had been liquidated in July 2019.

• Note 22: The Group obtained control over Delta Electronics (Thailand) Public Company Limited through merger. The Group holds a 100% equity interest in Delta Electronics (Switzerland) AG and Delta Greentech Electronics Industry LLC through the Delta Electronics (Thailand) Public Company Limited 100% held subsidiary, Delta Greentech (Netherlands) B.V.

• Note 23: Because most of the shares were held by the company and other shareholdings are disaggregated, it was included in the consolidated financial statements.

• Note 24: Companies were established or acquired through merger during 2019.

• Note 25: In September 2019, the company began liquidation process and was dissolved, but has not yet been completed as at December 31, 2019.

• Note 26: In December 2019, the company began liquidation process and was dissolved, but has not yet been completed as at December 31, 2019.

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

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

• E. Significant restrictions: None.

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

As at December 31, 2019 and 2018, the non-controlling interest amounted to $34,197,565, $9,189,749, respectively. The information on non-controlling interest and respective subsidiary is as follows:

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Name of subsidiary Delta International Holding Ltd. (DIH) Vivotek Inc. (Vivotek) Delta Electronics (Thailand) Public Company limited (DET)	Principal place of business Amount Cayman Islands $ - Taiwan 3,932,420 Thailand 29,761,580 December	Ownership Ownership (%) Amount (%) - $ 4,216,092 6.00% 50.13% 3,975,977 49.87% 36.22% - - Non-controllinginterest 31,2019 December 31,2018

Summarised financial information of the subsidiary:

Balance sheet

Balance sheet
			DET			DIH
		December31,2019			December 31, 2018
Current assets	$		32,696,207	$		87,627,784
Non-current assets			62,551,578			34,384,761
Current liabilities	(		10,944,593)	(		46,922,159)
Non-current liabilities	(		2,134,279)	(		2,693,084)
Total net assets	$		82,168,913	$		72,397,302
			Vivotek
		December31,2019			December31,2018
Current assets	$		3,106,290	$		3,003,380
Non-current assets			6,452,452			6,575,800
Current liabilities	(		1,307,013)	(		1,207,012)
Non-current liabilities	(		407,284)	(		399,485)
Total net assets	$		7,844,445	$		7,972,683

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Statement of comprehensive income

Statement of comprehensive income
			DET			DIH
			Years ended	December 31,
			2019			2018
Revenue		$	50,644,767		$	162,343,089
Profit before income tax			1,754,400			12,993,455
Income tax expense	(		18,582)	(		2,661,380)
Profit for the year from continuing operations			1,735,818			10,332,075
Other comprehensive (loss) income, net of tax	(		1,006,786)			8,732,215
Total comprehensive income for the year		$	729,032		$	19,064,290
Comprehensive (loss) income attributable to
non-controlling interest	($		153,674)		$	523,933
Dividends paid to non-controlling interest		$	2,184,585		$	203,351
			Vivotek
			Years ended	December 31,
			2019			2018
Revenue		$	6,573,617		$	5,235,966
Profit before income tax			118,133			133,780
Income tax expense	(		66,991)	(		52,832)
Profit for the year from continuing operations			51,142			80,948
Other comprehensive (loss) income, net of tax	(		9,853)			10,647
Total comprehensive income for the year		$	41,289		$	91,595
Comprehensive income attributable to
non-controlling interest		$	1,442		$	19,508
Dividends paid to non-controlling interest		$	104,890		$	165,720
Statements of cash flows
			DET			DIH
			Years ended	December 31,
			2019			2018
Net cash provided by operating activities	$		5,112,438	$		14,952,859
Net cash used in investing activities	(		4,915,661)	(		4,113,982)
Net cash used in financing activities	(		2,839,443)	(		3,779,613)
Effect of exchange rates on cash and cash
equivalents			280,456	(		5,125,165)
(Decrease) increase in cash and cash
equivalents	(		2,362,210)			1,934,099
Cash and cash equivalents, beginning of year			14,877,311			31,677,068
Cash and cash equivalents, end of year	$		12,515,101	$		33,611,167

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		Vivotek	Vivotek
		Years ended	December 31,
		2019		2018
Net cash provided by operating activities	$	810,131	$	73,673
Net cash used in investing activities	(	220,047)	(	422,373)
Net cash used in financing activities	(	365,874)	(	37,419)
Effect of exchange rates on cash and cash
equivalents	(	8,709)		8,289
Increase (decrease) in cash and cash
equivalents		215,501	(	377,830)
Cash and cash equivalents, beginning of year		807,712		1,185,542
Cash and cash equivalents, end of year	$	1,023,213	$	807,712

(4) Foreign currency translation

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

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise, except when deferred in other comprehensive income as qualifying cash flow hedges.

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

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

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

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• B. Translation of foreign operations

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

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

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

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

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

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

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

(5) Classification of current and non-current items

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

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

• (b) Assets held mainly for trading purposes;

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

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

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

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

• (b) Liabilities arising mainly from trading activities;

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

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

(6) Cash equivalents

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

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

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

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

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

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

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

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

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

• C. They are initially recognised at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value. The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits

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associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(9) Accounts and notes receivable

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

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

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

(10) Impairment of financial assets

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

(11) Derecognition of financial assets

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

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

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

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

(12) Inventories

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

(13) Investments accounted for under equity method

• A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or

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indirectly 20 per cent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

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

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

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

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

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

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

(14) Cash surrender value of life insurance

Premium paid for life insurance with saving nature belonging to cash surrender value is recognised as a deduction to insurance premium expense in current period and is added to the carrying amount of cash surrender value.

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(15) Property, plant and equipment

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

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

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

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are 2~15 years except for buildings, the estimated life of which is 5~55 years.

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

Effective 2019

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

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

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability; and

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

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

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recognised as an adjustment to the right-of-use asset.

(17) Leased assets/ operating leases (lessee)

Prior to 2019

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

(18) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 7~50 years.

(19) Intangible assets

• A. Goodwill

• Goodwill arises in a business combination accounted for by applying the acquisition method. Acquisition prices in the business combination are calculated by the price of acquisition plus related direct costs. Goodwill is recognised at the difference of the acquisition prices less net fair value of identifiable assets acquired. The amortisation duration of acquisition prices may not exceed one year after the acquisition.

• B. Trademarks

• (a) Separately acquired trademarks with finite useful lives are stated at acquisition cost and are amortised on a straight-line basis over their estimated useful lives.

• (b) Certain trademarks which are assessed to generate net cash inflows and have indefinite useful lives are recorded at actual cost. These are not amortised and instead, are tested for impairment annually.

• C. Intangible assets other than goodwill and trademarks, mainly computer software, patents, customer relationship and technology authorisation fees, are amortised on a straight-line basis over their estimated useful lives of 2~22 years.

(20) Impairment of non-financial assets

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

• B. The recoverable amounts of goodwill, intangible assets with an indefinite useful life and intangible assets that have not yet been available for use are evaluated periodically. An

~43~

impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed in the following years.

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

(21) Borrowings

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

(22) Notes and accounts payable

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

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

• A. Derivatives are categorised as financial liabilities held for trading unless they are designated as hedges.

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

(24) Derecognition of financial liabilities

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

(25) Offsetting financial instruments

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

(26) Non-hedging and embedded derivatives

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

~44~

profit or loss.

• B. Under the financial assets, the hybrid contracts embedded with derivatives are initially recognised as financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income and financial assets at amortised cost based on the contract terms.

• C. Under the non-financial assets, whether the hybrid contracts embedded with derivatives are accounted for separately at initial recognition is based on whether the economic characteristics and risks of an embedded derivative are closely related in the host contract. When they are closely related, the entire hybrid instrument is accounted for by its nature in accordance with the applicable standard. When they are not closely related, the derivative is accounted for differently from the host contract as derivative while the host contract is accounted for by its nature in accordance with the applicable standard. Alternatively, the entire hybrid instrument is designated as financial liabilities at fair value through profit or loss upon initial recognition.

(27) Hedge accounting

• A. At the inception of the hedging relationship, there is formal designation and documentation of the hedging relationship and the Group’s risk management objective and strategy for undertaking the hedge. That documentation shall include identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Group will assess whether the hedging relationship meets the hedge effectiveness requirements.

• B. The Group designates the hedging relationship as follows:

• (a) Cash flow hedge: a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction.

• (b) Hedge of a net investment in a foreign operation.

• C. Cash flow hedges

• (a) The cash flow hedge reserve associated with the hedged item is adjusted to the lower of the following (in absolute amounts):

• i. The cumulative gain or loss on the hedging instrument from inception of the hedge; and

• ii. The cumulative change in fair value of the hedged item from inception of the hedge.

• (b) The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income. The gain or loss on the hedging instrument relating to the ineffective portion is recognised in profit or loss.

• (c) The amount that has been accumulated in the cash flow hedge reserve in accordance with (a) is accounted for as follows:

• i. If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, or a hedged forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair value hedge accounting

~45~

is applied, the Group shall remove that amount from the cash flow hedge reserve and include it directly in the initial cost or other carrying amount of the asset or liability.

  - ii. For cash flow hedges other than those covered by i. above, that amount shall be reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows affect profit or loss.

  - iii. If that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it shall immediately reclassify the amount that is not expected to be recovered into profit or loss as a reclassification adjustment.

• (d) When the hedging instrument expires, or is sold, terminated, exercised or when the hedging relationship ceases to meet the qualifying criteria, if the forecast transaction is still expected to occur, the amount that has been accumulated in the cash flow hedge reserve shall remain in the cash flow hedge reserve until the forecast transaction occurs; if the forecast transaction is no longer expected to occur, the amount shall be immediately reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment.

• D. Hedges of a net investment in a foreign operation

• (a) It is accounted for similarly to cash flow hedges.

• (b) The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other comprehensive income. The ineffective portion is recognised in profit or loss.

• (c) The cumulative gain or loss on the hedging instrument relating to the effective portion of the hedge that has been accumulated in the foreign currency translation reserve shall be reclassified from equity to profit or loss as a reclassification adjustment.

(28) Employee benefits

• A. Pensions

• (a) Defined contribution plans

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

• (b) Defined benefit plans

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

~46~

credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

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

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

• B. Employees’, directors’ and supervisors’ remuneration

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

- (29) Employee share based payment

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

• B. Restricted stocks:

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

• (b) For restricted stocks where employees do not need to pay to acquire those stocks, if employees resign during the vesting period, the Group has the right to repurchase the stocks for a fee and cancel these stocks. No distribution rights for dividends and capital reserves before the vesting conditions are met.

(30) Income tax

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

• B. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate

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and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

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

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

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

(31) Share capital

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

(32) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved by the Company’s shareholders. Cash dividends are recorded as liabilities.

• (33) Revenue recognition

• A. Sales of goods

  • (a) The Group manufactures and sells computers, information technology, electrical machines, power supply, automation equipment and related components products. Sales are recognised when control of the products has transferred, being when the products are delivered to the

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customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

• (b) Sales revenue is recognised based on the price specified in the contract, net of the estimated discounts and allowances. Accumulated experience is used to estimate and provide for the sales discounts and allowances, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognised for expected sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. Sales are usually made with a credit term of 30 to 90 days after acceptance. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

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

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

• B. Installation of software and module services

• (a) The Group provides installation of some software and module services. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the actual cost spent relative to the total expected cost. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

• (b) Some contracts include sales and installation services of equipment. The equipment and the installation services provided by the Group are not distinct and are identified to be one performance obligation satisfied over time since the installation services involve significant customisation and modification.

• (c) The Group’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation is subject to a revision whenever there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management becomes aware of the changes in

~49~

circumstances.

• C. Revenue from licencing intellectual property

The Group is entitled to collect usage-based royalty in return for licencing patented technologies and intellectual property lights to subsidiaries and associates under agreements. The Group recognises revenue when the performance obligation has been satisfied and the subsequent usage occurs.

• D. Incremental costs of obtaining a contract

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

(34) Government grants

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

(35) Business combinations

• A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisitionrelated costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

• B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognised and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognised directly in profit or loss on the acquisition date.

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(36) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group’s chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments.

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

UNCERTAINTY

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

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

Investment property

The Group uses part of the property for its own use and part to earn rentals or for capital appreciation. When the portions cannot be sold separately and cannot be leased out separately under a finance lease, the property is classified as investment property only if the own-use portion accounts for less than 20% of the property.

(2) Critical accounting estimates and assumptions

Impairment assessment of goodwill

The impairment assessment of goodwill relies on the Group’s subjective judgment, including identifying cash-generating units, allocating assets and liabilities as well as goodwill to related cashgenerating units, and determining the recoverable amounts of related cash-generating units. Please refer to Note 6(12) for the information on goodwill impairment.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand Checking accounts and demand deposits Time deposits	December31,2019 6,941 $ 30,808,159 13,144,901 43,960,001 $	December31,2018
		5,635 $ 37,506,087 22,106,975
		59,618,697 $

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

• B. Details of the Group’s cash and cash equivalents pledged to others as collateral are provided in Note 8.

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

==> picture [478 x 365] intentionally omitted <==

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

Asset Items December 31, 2019 December 31, 2018
Current items:
Financial assets mandatorily measured at fair
value through profit or loss
Listed stocks $ 541,143 $ 561,989
-
Emerging stocks 56,102
Derivatives 142,668 37,047
Hybrid instrument 87,578 119,074
771,389 774,212
Valuation adjustment 351,069 225,904
$ 1,122,458 $ 1,000,116
Non-current items:
Financial assets mandatorily measured at fair
value through profit or loss
Listed stocks $ 499,290 $ 501,639
Emerging stocks 81,000 107,037
Unlisted stocks 2,247,846 2,371,304
2,828,136 2,979,980
Valuation adjustment ( 602,897) ( 587,181)
$ 2,225,239 $ 2,392,799
Liability Items December 31, 2019 December 31, 2018
Current items:
Valuation adjustment of derivatives $ 15,929 $ 8,544
----- End of picture text -----

• A. The Group has recognised financial assets and liabilities at fair value through profit or loss of $365,965 and ($202,545) for the years ended December 31, 2019 and 2018, respectively.

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B. Explanations of the transactions and contract information in respect of derivative financial assets and liabilities that the Group does not adopt hedge accounting are as follows:

December 31, 2019

- Sell AUD / Buy NOK - Sell AUD / Buy USD - Sell BRL / Buy USD - Sell EUR / Buy GBP - Sell EUR / Buy NOK - Sell EUR / Buy USD - Sell GBP / Buy NOK - Sell HKD / Buy USD - Sell INR / Buy USD - Sell JPY / Buy USD - Sell SGD / Buy USD - Sell THB / Buy USD - Sell USD / Buy CZK - Sell USD / Buy HKD - Sell USD / Buy JPY - Sell USD / Buy NOK - Sell USD / Buy RMB Sell USD / Buy SGD Sell USD / Buy THB - Sell EUR / Buy NOK - Sell EUR / Buy RUB - Sell GBP / Buy NOK Sell USD / Buy EUR Sell USD / Buy NOK Cross currency swap: Financial instruments Forward exchange contracts:	AUD 600 AUD 1,500 BRL 32,622 EUR 1,000 EUR 8,000 EUR 28,500 GBP 2,600 HKD 151,000 INR 1,266,206 JPY 889,565 SGD 7,000 THB 9,060 USD 300 USD 770 USD 3,100 USD 6,000 USD 217,181 USD 14,092 USD 121,700 EUR 13,000 EUR 500 GBP 500 USD 1,113 USD 5,000 Contract amount (nominal principal) (in thousands)	Contractperiod
		2019.12.04~2020.01.07 2019.09.12~2020.04.28 2019.11.06~2020.02.07 2019.12.05~2020.02.07 2019.10.07~2020.07.03 2019.09.18~2020.04.03 2019.10.07~2020.02.07 2019.09.05~2020.03.03 2019.11.11~2020.01.21 2019.09.25~2020.03.19 2019.12.25~2020.02.04 2019.12.24~2020.01.23 2019.12.24~2020.01.21 2019.12.26~2020.03.03 2019.11.08~2020.02.25 2019.10.07~2020.04.03 2019.09.27~2020.03.23 2019.09.25~2020.04.03 2019.09.26~2020.04.03 2019.09.04~2020.06.05 2019.12.05~2020.02.07 2019.10.07~2020.01.07 2019.11.06~2020.01.07 2019.11.06~2020.03.05

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		December	31,2018
	Contract amount (nominal
Financial instruments	principal) (in thousands)		Contractperiod
Forward exchange contracts:
- Sell USD / Buy RMB	USD	123,654	2018.12.19~2019.01.22
- Sell USD / Buy NTD	USD	2,000	2018.12.10~2019.01.04
- Sell USD / Buy JPY	USD	4,200	2018.11.09~2019.02.25
- Sell USD / Buy CZK	USD	470	2018.12.17~2019.01.18
- Sell JPY / Buy USD	JPY	622,097	2018.11.05~2019.04.18
- Sell USD / Buy SGD	USD	11,750	2018.04.03~2019.03.04
- Sell AUD / Buy USD	AUD	18,430	2018.08.24~2019.03.26
- Sell EUR / Buy USD	EUR	23,800	2018.09.14~2019.04.25
- Sell EUR / Buy NOK	EUR	5,000	2018.10.08~2019.02.07
- Sell GBP / Buy NOK	GBP	1,500	2018.12.21~2019.02.07
- Sell SGD / Buy USD	SGD	2,050	2018.12.28~2019.01.29
- Sell THB / Buy USD	THB	91,276	2018.12.21~2019.02.26
- Sell THB / Buy SGD	THB	67,556	2018.12.21~2019.02.26
- Sell USD / Buy RUB	USD	500	2018.11.08~2019.01.09
- Sell USD / Buy EUR	USD	1,940	2018.11.09~2019.01.07
- Sell USD / Buy AUD	USD	800	2018.12.12~2019.02.05
- Sell BRL / Buy USD	BRL	41,666	2018.11.05~2019.02.07
- Sell INR / Buy USD	INR	71,220	2018.12.05~2019.02.07
Cross currency swap:
- Sell EUR / Buy NOK	EUR	6,000	2018.09.04~2019.01.07
- Sell EUR / Buy SEK	EUR	500	2018.12.10~2019.02.07
- Sell EUR / Buy SGD	EUR	11,653	2018.11.13~2019.01.07
- Sell GBP / Buy NOK	GBP	1,000	2018.12.06~2019.01.07
- Sell SGD / Buy EUR	SGD	6,000	2018.11.05~2019.01.07
- Sell RUB / Buy USD	RUB	166,900	2018.11.05~2019.01.09
- Sell USD / Buy NOK	USD	2,000	2018.11.09~2019.01.07
- Sell USD / Buy SGD	USD	5,000	2018.12.06~2019.01.07

The Group entered into forward exchange contracts and cross currency swap to manage exposures to foreign exchange rate fluctuations of import or export sales and dividend distribution between subsidiary and second-tier subsidiary. However, the forward exchange transactions did not meet the criteria for hedge accounting. Therefore, the Group did not apply hedge accounting.

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

• D. Information relating to credit risk is provided in Note 12(2).

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

Items	December	31,2019	December	31,2018
Current items:
Equity instruments
Listed stocks	$	1,559,472	$	871,492
Valuation adjustment	(	1,239,649)	(	813,836)
	$	319,823	$	57,656
Non-current items:
Equity instruments
Listed stocks	$	2,301,004	$	4,301,090
Unlisted stocks		690,945		1,008,088
		2,991,949		5,309,178
Valuation adjustment	(	1,194,648)	(	2,388,840)
	$	1,797,301	$	2,920,338

• A. The Group has elected to classify investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $2,117,124 and $2,977,994 as at December 31, 2019 and 2018, respectively.

• B. For the years ended December 31, 2019 and 2018, the Group sold listed stocks whose fair value were $1,114,871 and $733, respectively, to adjust the stock position, resulting to an accumulated loss on disposal of $635,782 and $9,336, respectively.

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

		Years ended	December31,	December31,
		2019		2018
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
comprehensive income (loss)	$	200,079	($	844,089)
Cumulative gain (loss) reclassified to retained
earnings due to derecognition	($	635,782)	($	9,336)

• D. As at December 31, 2019 and 2018, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group was $2,117,124 and $2,977,994, respectively.

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

• F. Information relating to credit risk is provided in Note 12(2).

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(4) Hedging financial assets and liabilities

• A. As at December 31, 2019 and 2018, the balances of financial assets and liabilities used for hedging were all $0.

• B. Information on cash flow hedges and hedges of net investments in foreign operations recognised as profit or loss and other comprehensive income:

as profit or loss and other comprehensive income:
Cash flow hedges Other equity At January 1, 2019 - $ Add: (Loss) gain on hedge effectiveness- amount recognised in other comprehensive income 6,124) ( Less: Reclassified to profit or loss as the hedged item has affected profit or loss 6,124 At December 31, 2019 - $ Cash flow hedges Other equity At January 1, 2018 7,061 $ Add: (Loss) gain on hedge effectiveness- amount recognised in other comprehensive income 4,161) ( Less: Reclassified to profit or loss as the hedged item has affected profit or loss 2,900) ( At December 31, 2018 - $	Hedges of net investments in foreign operations
	131,152 $ 16,104 -
	147,256 $
	Hedges of net investments in foreign operations
	73,476 $ 57,676 -
	131,152 $

• (a) The purpose of hedge accounting is that the hedged highly probable forecast transactions denominated in foreign currency are expected to occur during the next 12 months. Amounts accumulated in other comprehensive income as at December 31, 2019 and 2018 are recycled into profit or loss in the period or periods when the hedged item affects profit or loss.

• (b) Hedges of net investments in foreign operations

In the first quarter of 2018, due to the reorganisation of the Group, the risk of USD exchange rate fluctuating by fair value initially designated as hedged items of hedges of net investments in foreign operations was no longer material. Consequently, the hedge relationship did not meet the conditions of hedge accounting. The effective portion of hedges of net investments in foreign operations was accumulated in other equity previously. Since the foreign operations was not disposed, it was not reclassified from equity to profit or loss.

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(5) Notes and accounts receivable

Notes and accounts receivable
		December 31,2019			December 31,2018
Notes receivable		$	3,816,628		$	4,091,231
Accounts receivable	$		53,964,299	$		53,014,340
Less: Allowance for uncollectible accounts	( $		1,009,193) 52,955,106	( $		960,844) 52,053,496
Overdue receivables (shown as other non-
current assets)	$		213,405	$		271,439
Less: Allowance for uncollectible accounts	(		213,405)	(		271,439)
	$		-	$		-
A. The aging analysis of accounts receivable is	as follows:
		December 31, 2019			December 31,2018
Not past due		$	46,818,016		$	46,402,442
1 to 90 days			5,540,091			5,270,339
91 to 180 days			324,836			228,796
181 to 365 days			249,331			125,428
Over 366 days			22,832			26,491
		$	52,955,106		$	52,053,496

The above aging analysis was based on past due date.

• B. As at December 31, 2019 and 2018, there was no notes receivable past due.

• C. As at December 31 2019 and 2018, accounts receivable and notes receivable were all from contracts with customers. And as at January 1, 2018, the balance of receivables from contracts with customers amounted to $53,393,658.

• D. The Group has no notes receivable and accounts receivable pledged to others as collateral.

• E. As at December 31, 2019 and 2018, without taking into account any collateral held or other credit enhancements, the maximum hedge to credit risk in respect of the amount that best represents the Group’s notes receivable were $3,816,628 and $4,091,231, and accounts receivable were $52,955,106 and $52,053,496, respectively.

• F. Information relating to credit risk is provided in Note 12(2).

(6) Transfer of financial assets

The Group entered into a factoring agreement with financial institutions to sell its accounts receivable. Under the agreement, the Group is not required to bear the default risk of the accounts receivable and the percentage of advance payments is zero, but is liable for the losses incurred on any business dispute. As at December 31, 2019 and 2018, the relevant information on unsettled accounts receivable that were sold is set forth below:

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December 31, 2019 Purchaser of Accounts Amount Interest rate accounts receivable Amount Amount available for of amount receivable transferred derecognised Facilities advanced advance advanced - - - - Taishin $ 57,743 $ $ 299,800 $ $ $ International Bank December 31, 2018 Purchaser of Accounts Amount Interest rate accounts receivable Amount Amount available for of amount receivable transferred derecognised Facilities advanced advance advanced - - - - Taishin $ 70,948 $ $ 307,150 $ $ $ International Bank

(7) Inventories

Inventories
Raw materials Work in process Finished goods Inventory in transit Raw materials Work in process Finished goods Inventory in transit	Allowance for Cost valuation loss 13,734,404 $ 2,978,189) ($ 4,205,155 11,299) ( 27,482,584 3,634,975) ( 518,743 - 45,940,886 $ 6,624,463) ($ Allowance for Cost valuation loss 12,622,276 $ 1,701,414) ($ 3,065,158 13,027) ( 22,686,380 2,510,049) ( 152,542 - 38,526,356 $ 4,224,490) ($ December 31,2019 December 31,2018	Book value
		10,756,215 $ 4,193,856 23,847,609 518,743
		39,316,423 $
		Book value
		10,920,862 $ 3,052,131 20,176,331 152,542
		34,301,866 $

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The Group recognised as expense or loss:

The Group recognised as expense or loss:
		Years ended	December	31,
		2019		2018
Cost of goods sold	$	187,469,554	$	169,043,616
Loss on market value decline and obsolete and
slow-moving inventories		1,794,257		556,111
Others	(	647,439)	(	129,078)
	$	188,616,372	$	169,470,649

(8) Investments accounted for under equity method

• A. Details of investments accounted for under the equity method are set forth below:

Name of associates Optovue, Inc. Digital Projection International Ltd. (DPI) Delta Electronics (Thailand) Public Company Limited (DET) Others	December	Book value 842,043 $ 240,059 (Note 2) 56,818 1,138,920 $ 31,2019	December	31,2018
	Ownership % (Note 1) 29.50 41.00 (Note 2)		Ownership % (Note 1) 29.50 41.00 20.93	Book value
				959,816 $ 241,333 8,154,777 37,790
				9,393,716 $

• Note 1: The shareholding ratio in associates represent the ratio of common shares held by the Group.

• Note 2: On April 2, 2019, the subsidiary, DEIL-SG acquired 42.85% equity interests in DET, and the total equity interest of DET held by the Group is 63.78%. Therefore, the Group has control over DET, and DET is included in the consolidated financial statements.

• B. For the years ended December 31, 2019 and 2018, the share of profit (loss) of associates were $141,877 and $943,990, respectively.

• C. The financial statements of investments under equity method were audited by other independent accountants. The share of profit (loss) and other comprehensive income (loss) of associates was $429,060 and $204,169 for the years ended December 31, 2019 and 2018, respectively, and the balance of investments accounted for under equity method was $0 and $8,154,777 as at December 31, 2019 and 2018, respectively.

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D. The summarised financial information of the associates that are material to the Group is shown below:

Principal place Companyname of business DET Thailand	December 31, 2019 Not applicable Shareholding	December 31, 2018 20.93% ratio(Note)	Nature of Method of relationship measurement Holds more than 20% of voting rights Equity method

Note: The shareholding ratio in associates represent the ratio of common shares held by the Group.

Balance sheet		DET
	December 31,2018
Current assets	$	36,209,901
Non-current assets		9,734,999
Current liabilities	(	11,779,439)
Non-current liabilities	(	1,812,976)
Total net assets	$	32,352,485
Share in associate’s net assets	$	6,771,375
Unrealised upstream and sidestream transactions	(	8,719)
Others		1,392,121
Carrying amount of the associate	$	8,154,777
Statement of comprehensive income
		DET
		Year ended
	December 31,2018
Revenue	$	50,003,204
Profit for the year from continuing operations	$	4,767,009
Loss attributable to non-controlling interests	(	9,827)
Other comprehensive loss, net of tax	(	849,094)
Total comprehensive income	$	3,908,088
Dividends received from associates	$	532,089

• E. The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarised below:

As at December 31, 2019 and 2018, the carrying amount of the Group’s individually immaterial associates amounted to $1,138,920 and $1,238,939, respectively.

~60~

	Years ended	December31,	December31,
	2019		2018
Loss for the year from continuing operations	100,862) ($	($	41,160)
Other comprehensive income, net of tax	17,156		14,515
Total comprehensive loss	83,706) ($	($	26,645)

• F. The Group’s investment in DET has quoted market price. The fair value of DET as at December 31, 2018 was $17,298,030.

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(9) Property, plant and equipment

roperty, plant and equipment
												Unfinished
												construction
				Buildings and	Machinery and			Testing				and equipment
At January 1, 2019		Land		structures		equipment		equipment		Others	under acceptance			Total
Cost	$	9,387,791	$	35,410,148	$	34,306,477	$	15,133,753	$	13,323,988	$	1,426,294	$	108,988,451
Accumulated depreciation and
impairment	(	12,228)	(	14,756,380)	(	24,800,888)	(	12,254,047)	(	10,736,034)		-	(	62,559,577)
	$	9,375,563	$	20,653,768	$	9,505,589	$	2,879,706	$	2,587,954	$	1,426,294	$	46,428,874
2019
Opening net book amount	$	9,375,563	$	20,653,768	$	9,505,589	$	2,879,706	$	2,587,954	$	1,426,294	$	46,428,874
Additions		2,642,719		1,013,780		4,303,311		2,225,498		2,523,680		4,157,198		16,866,186
Acquired through business combinations		1,937,962		2,891,051		2,408,419		372,027		1,190,607		1,184,235		9,984,301
Disposal	(	347)	(	41,898)	(	280,720)	(	51,258)	(	154,652)	(	127)	(	529,002)
Transfer		-		82,483		906,706		166,922		198,636	(	1,354,747)		-
Reclassifications (Note 1)		465,686		1,164,972		-		-		-		-		1,630,658
Depreciation charge		-	(	1,874,482)	(	4,218,490)	(	1,993,308)	(	2,200,977)		-	(	10,287,257)
Reversal of impairrment loss (Note 2)		-		86,246		2,925		-		1,044		-		90,215
Net exchange differences	(	67,727)	(	776,702)	(	161,154)	(	80,016)		165,015		327,590	(	592,994)
Closing net book amount	$	14,353,856	$	23,199,218	$	12,466,586	$	3,519,571	$	4,311,307	$	5,740,443	$	63,590,981
At December 31, 2019
Cost	$	14,365,775	$	43,455,591	$	43,103,641	$	17,246,547	$	19,083,533	$	5,740,443	$	142,995,530
Accumulated depreciation and
impairment	(	11,919)	(	20,256,373)	(	30,637,055)	(	13,726,976)	(	14,772,226)		-	(	79,404,549)
	$	14,353,856	$	23,199,218	$	12,466,586	$	3,519,571	$	4,311,307	$	5,740,443	$	63,590,981

(Note 1) The investment property was reclassified to property, plant and equipment as the percentage of a portion of the investment property for its own use exceeded 20% from the first quarter of 2019.

(Note 2) For the year ended December 31, 2019, the Group recognised a reversal of impairment loss of $90,215 for certain buildings and structures machinery and equipment and other equipment that were assessed for reuse in the future. Such reversal of impairment loss was recognised in other operating income and expenses.

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													Unfinished
													construction
				Buildings and	Machinery and			Testing				and equipment
At January 1, 2018		Land		structures		equipment		equipment		Others	under acceptance				Total
Cost	$	6,200,330	$	34,716,148	$	32,147,803	$	14,124,840	$	12,529,075	$		1,266,620	$	100,984,816
Accumulated depreciation and
impairment	(	11,617)	(	13,243,559)	(	22,629,430)	(	11,118,300)	(	9,643,282)			-	(	56,646,188)
	$	6,188,713	$	21,472,589	$	9,518,373	$	3,006,540	$	2,885,793	$		1,266,620	$	44,338,628
2018
Opening net book amount	$	6,188,713	$	21,472,589	$	9,518,373	$	3,006,540	$	2,885,793	$		1,266,620	$	44,338,628
Additions		3,301,909		587,685		2,528,091		1,533,392		1,153,924			2,235,870		11,340,871
Disposals	(	136,450)	(	77,982)	(	113,358)	(	26,971)	(	47,242)			-	(	402,003)
Transfer		-		385,297		810,492		192,354		321,697	(		1,709,840)		-
Reclassifications (Note)		6,159		105,843		3,274		11,757		15,708			-		142,741
Depreciation charge		-	(	1,748,510)	(	3,457,862)	(	1,860,959)	(	1,724,851)			-	(	8,792,182)
Net exchange differences		15,232	(	71,154)		216,580		23,593	(	17,076)	(		366,356)	(	199,181)
Closing net book amount	$	9,375,563	$	20,653,768	$	9,505,590	$	2,879,706	$	2,587,953	$		1,426,294	$	46,428,874
At December 31, 2018
Cost	$	9,387,791	$	35,410,148	$	34,306,477	$	15,133,753	$	13,323,988	$		1,426,294	$	108,988,451
Accumulated depreciation and
impairment	(	12,228)	(	14,756,380)	(	24,800,888)	(	12,254,047)	(	10,736,034)			-	(	62,559,577)
	$	9,375,563	$	20,653,768	$	9,505,589	$	2,879,706	$	2,587,954	$		1,426,294	$	46,428,874

(Note) The reclassifications resulted from the reallocation of the purchase price relative to the acquisition of Vivotek Inc.

• A. The Group’s property, plant and equipment are mainly owner-occupied.

• B. No interest expense was capitalised on property, plant and equipment.

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

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(10) Leasing arrangements - lessee

Effective 2019

• A. The Group leases various assets including land, buildings and transportation equipment. Rental contracts are typically made for periods of 1 to 21 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

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

Land Buildings and structures Transportation equipment Other equipment	Year ended December 31,2019 December 31, 2019 Book value Depreciation charge 1,683,784 $ 49,250 $ 1,321,468 476,602 86,200 90,444 22,381 9,041 3,113,833 $ 625,337 $

• C. For the year ended December 31, 2019, the additions to right-of-use assets was $335,118.

• D. Information on profit or loss in relation to lease contracts is as follows:

Information on profit or loss in relation to lease contracts is as follows:
Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts	Year ended December 31, 2019
	23,962 $
	397,481 $

• E. For the year ended December 31, 2019, the Group’s total cash outflow for leases was $1,007,692.

• F. Extension options

• (a) Extension options are included in the Group’s lease contracts pertaining to certain land. These terms and conditions are the lessor’s general practice and for the Group to effectively utilise the assets.

• (b) In determining the lease term, the Group takes into consideration all facts and circumstances that create an economic incentive to exercise an extension option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

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(11) Investment property

Investment property
				Buildings and
		Land		structures		Total
At January 1, 2019
Cost	$	479,756	$	4,299,554	$	4,779,310
Accumulated depreciation
and impairment		-	(	3,134,582)	(	3,134,582)
	$	479,756	$	1,164,972	$	1,644,728
2019
Opening net book amount	$	479,756	$	1,164,972	$	1,644,728
Reclassifications (Note)	(	465,686)	(	1,164,972)	(	1,630,658)
Closing net book amount	$	14,070	$	-	$	14,070
At December 31, 2019
Cost	$	14,070	$	-	$	14,070
Accumulated depreciation
and impairment		-		-		-
	$	14,070	$	-	$	14,070
				Buildings and
		Land		structures		Total
At January 1, 2018
Cost	$	465,724	$	4,298,176	$	4,763,900
Accumulated depreciation
and impairment		-	(	2,987,489)	(	2,987,489)
	$	465,724	$	1,310,687	$	1,776,411
2018
Opening net book amount	$	465,724	$	1,310,687	$	1,776,411
Additions		14,070		1,378		15,448
Disposal	(	38)		-	(	38)
Depreciation charge		-	(	147,093)	(	147,093)
Closing net book amount	$	479,756	$	1,164,972	$	1,644,728
At December 31, 2018
Cost	$	479,756	$	4,299,554	$	4,779,310
Accumulated depreciation
and impairment		-	(	3,134,582)	(	3,134,582)
	$	479,756	$	1,164,972	$	1,644,728

(Note) The investment property was reclassified to property, plant and equipment as the percentage of a portion of the investment property for its own use exceeded 20% from the first quarter of 2019.

~65~

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

from the investment property are shown below:
Rental revenue from the lease of the investment property Direct operating expenses of investment property that generated rental revenue during the year Direct operating expenses of investment property that did not generate rental revenue during the year	2019 2018 6,747 $ 52,162 $ - $ 68,280 $ - $ 105,587 $ Years ended December 31,
		52,162 $
		68,280 $
		105,587 $

• B. The fair value of the investment property held by the Group as at December 31, 2019 and 2018 was $14,070 and $3,106,112, respectively, which was revalued by the Group.

~66~

(12) Intangible assets

Intangible assets
										Customer		Technical
At January 1, 2019		Trademarks			Patents		Goodwill		Relationship			Skill		Others		Total
Cost	$		3,677,160	$	1,587,354	$	19,987,587	$		11,055,632	$	4,010,083	$	3,220,854	$	43,538,670
Accumulated amortisation and
impairment	(		835,968)	(	1,148,612)	(	7,291)	(		5,629,871)	(	1,082,984)	(	2,205,556)	(	10,910,282)
	$		2,841,192	$	438,742	$	19,980,296	$		5,425,761	$	2,927,099	$	1,015,298	$	32,628,388
2019
Opening net book amount	$		2,841,192	$	438,742	$	19,980,296	$		5,425,761	$	2,927,099	$	1,015,298	$	32,628,388
Additions - acquired separately			-		44,596		-			-		-		622,371		666,967
Additions - acquired through
business combinations			436,080		254,419		37,943,596			7,803,373		8,357,715		318,530		55,113,713
Amortisation	(		232,379)	(	138,311)		-	(		1,376,775)	(	649,386)	(	676,000)	(	3,072,851)
Net exchange differences	(		64,763)	(	51,623)	(	1,390,229)	(		627,372)	(	807,628)		38,051	(	2,903,564)
Closing net book amount	$		2,980,130	$	547,823	$	56,533,663	$		11,224,987	$	9,827,800	$	1,318,250	$	82,432,653
At December 31, 2019
Cost	$		4,048,477	$	1,834,746	$	56,540,954	$		18,231,633	$	11,560,170	$	4,199,806	$	96,415,786
Accumulated amortisation and
impairment	(		1,068,347)	(	1,286,923)	(	7,291)	(		7,006,646)	(	1,732,370)	(	2,881,556)	(	13,983,133)
	$		2,980,130	$	547,823	$	56,533,663	$		11,224,987	$	9,827,800	$	1,318,250	$	82,432,653

~67~

								Customer		Technical
At January 1, 2018	Trademarks			Patents		Goodwill	Relationship			Skill		Others		Total
Cost	$	2,928,120	$	1,138,472	$	19,684,246	$	9,770,892	$	3,713,854	$	5,304,729	$	42,540,313
Accumulated amortisation and
impairment	(	622,233)	(	1,037,322)	(	7,291)	(	4,548,881)	(	776,556)	(	1,714,382)	(	8,706,665)
	$	2,305,887	$	101,150	$	19,676,955	$	5,222,011	$	2,937,298	$	3,590,347	$	33,833,648
2018
Opening net book amount	$	2,305,887	$	101,150	$	19,676,955	$	5,222,011	$	2,937,298	$	3,590,347	$	33,833,648
Additions - acquired separately		-		12,127		-		-		207,851		283,479		503,457
Reclassifications (Note)		691,811		379,787	(	25,421)		912,736		-	(	2,100,982)	(	142,069)
Amortisation	(	213,735)	(	111,290)		-	(	1,080,990)	(	306,428)	(	491,174)	(	2,203,617)
Net exchange differences		57,229		56,968		328,762		372,004		88,378	(	266,372)		636,969
Closing net book amount At December 31, 2018	$	2,841,192	$	438,742	$	19,980,296	$	5,425,761	$	2,927,099	$	1,015,298	$	32,628,388
Cost	$	3,677,160	$	1,587,354	$	19,987,587	$	11,055,632	$	4,010,083	$	3,220,854	$	43,538,670
Accumulated amortisation and
impairment	(	835,968)	(	1,148,612)	(	7,291)	(	5,629,871)	(	1,082,984)	(	2,205,556)	(	10,910,282)
	$	2,841,192	$	438,742	$	19,980,296	$	5,425,761	$	2,927,099	$	1,015,298	$	32,628,388

(Note) The reclassifications resulted from the reallocation of the purchase price relative to the acquisition of Vivotek Inc.

~68~

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

Operating costs Selling expenses Administrative expenses Research and development expenses	2019 2018 54,977 $ 12,506 $ 1,619,163 1,301,728 227,735 206,226 1,170,976 683,157 3,072,851 $ 2,203,617 $ Years ended December 31,

• B. The Group acquired registered or under-application trademark rights such as , , VIVITEK , 麗訊 , , and .

• Trademarks are assessed to have finite useful lives. The remaining trademarks which have indefinite useful lives shall not be amortised but are tested for impairment annually.

• C. Goodwill and trademarks with indefinite useful lives are allocated as follows to the Group’s cashgenerating units identified according to operating segment:

Goodwill: DET Eltek Cyntec Vivotek Inc. DCI DGC Loy Tec Amerlux Others Trademarks: Automation business Power electronics business	December 31,2019 35,646,502 $ 5,165,460 5,146,053 3,232,954 2,487,284 1,723,340 1,386,683 1,189,170 556,217 56,533,663 $ 691,811 $ 386,823 1,078,634 $	December 31,2018
		- $ 5,292,098 5,146,053 3,232,954 2,548,263 1,780,775 1,420,680 - 559,473
		19,980,296 $
		691,811 $ 386,823
		1,078,634 $

Acquisition prices in business combination are calculated based on the price of acquisition and direct costs for related acquisition. The amount of goodwill recognised is the difference of the acquisition price less net fair value of identifiable assets acquired. The amortisation duration of acquisition price may not exceed one year after the acquisition.

~69~

• D. As at December 31, 2019, the Group’s goodwill arose from business combinations amounting to $56,533,663 in order to improve benefit comprising of potential customer relations and operating revenue in the location of acquired companies. Based on IAS 36, goodwill acquired in a business combination should be tested at least annually for impairment. For the impairment testing of goodwill, goodwill acquired in a business combination is allocated to each of the cash-generating units that are expected to benefit from the synergies of the business combination. Each company may be a cash-generating unit which can generate independent cash flows and the impairment of goodwill is calculated based on value in use and carrying amount of net assets of each company.

The recoverable amount of all cash-generating units calculated using the value-in-use exceeded their carrying amount, so goodwill was not impaired. The key assumptions used for value-in-use calculations are operating profit margin growth rate and discount rate.

Management determined budgeted operating profit margin based on past performance and its expectations of market development. The weighted average growth rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflect specific risks relating to the relevant operating segments.

(13) Other non-current assets

Other non-current assets
Short-term borrowings Prepayments for business facilities Guarantee deposits paid Prepayments for long-term investments Cash surrender value of life insurance Long-term prepaid rent Others Unsecured bank loans Credit lines Interest rate range	December 31, 2019 1,101,540 $ 333,011 72,259 53,953 - 621,596 2,182,359 $ December31,2019 7,575,932 $ 73,937,712 $ 0.40%~9.15%	December 31,2018
		605,154 $ 314,517 90,833 60,780 1,052,797 421,234
		2,545,315 $
		December31,2018
		6,259,062 $
		78,523,480 $
		0.40%~7.13%

(14) Short-term borrowings

~70~

- (15) Long term borrowings

Long-term borrowings
Type of borrowings		December 31,2019			December 31,2018
Credit loans	$		27,439,702	$		25,013,145
Collateral loans			374,673			393,342
			27,814,375			25,406,487
Less: Current portion (shown as other current
liabilities)	(		65,536)	(		173,700)
	$		27,748,839	$		25,232,787
Credit lines	$		78,477,044	$		72,776,669
Interest rate range			0.38%~6.23%			0.37%~6.23%

• A. As at December 31, 2019, the revolving loans of $26,995,000 can be drawn down during the period from May 30, 2019 to May 30, 2024 and are payable before the due date under the agreement.

• B. Information in relation to the assets pledged to others as collateral for bank borrowings is provided in Note 8.

(16) Pensions

• A. Defined benefit plans

• (a) The Group has a defined benefit pension plan as follows:

  • i. The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contribution for the deficit by next March.

~71~

• ii. Certain subsidiaries located in Mainland China maintain defined benefit retirement (resignation) plans with relative contribution scheme. The employees and the subsidiaries contribute an amount relatively based on a certain percentage of the monthly basic salary depending on the employee’s position. When an employee retires or resigns, the total contribution from the employee is reimbursed based on the accumulated contribution (without interest) less withdrawals made by the employee in advance during the service period. The employee is also entitled to receive benefits calculated based on the accumulated contribution (without interest) from the related subsidiary multiplied by the approved benefit percentage for the employee’s service years less withdrawals made by the employee in advance during the service period. The scheme mentioned above ceased on August 1, 2004. The amount contributed before was archived, and the payment scheme was not changed.

• iii. The subsidiaries in Thailand has an obligation to pay certain retirement benefits when employees retire based on labor regulations.

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

	December	31,2019	December	31,2018
Present value of defined benefit obligations	($	5,702,536)	($	4,176,649)
Fair value of plan assets		1,910,802		1,603,757
Net defined benefit liability	($	3,791,734)	($	2,572,892)

~72~

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

		Present value of	Present value of
		defined benefit			Fair value of			Net defined
			obligations		plan assets		benefit liability
Year ended December 31, 2019
Balance at January 1	($		4,176,649)	$	1,603,757	($		2,572,892)
Current service cost	(		83,801)		-	(		83,801)
Interest (expense) revenue	(		74,784)		18,728	(		56,056)
Past service cost	(		107,552)		-	(		107,552)
	(		4,442,786)		1,622,485	(		2,820,301)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)			-		45,397			45,397
Change in demographic
assumptions	(		144,134)		-	(		144,134)
Change in financial assumptions	(		110,010)		-	(		110,010)
Experience adjustments			7,694		-			7,694
	(		246,450)		45,397	(		201,053)
Pension fund contribution			-		300,457			300,457
Paid pension			165,491	(	94,164)			71,327
Exchange difference			27,798	(	493)			27,305
Effect of business combination	(		1,206,589)		37,120	(		1,169,469)
Balance at December 31	($		5,702,536)	$	1,910,802	($		3,791,734)

~73~

	Present value of	Present value of
	defined benefit			Fair value of		Net defined
		obligations		plan assets	benefit liability
Year ended December 31, 2018
Balance at January 1	($	4,213,525)	$	1,360,130	($	2,853,395)
Current service cost	(	36,684)		-	(	36,684)
Interest (expense) revenue	(	58,972)		16,740	(	42,232)
Effect of plan amendment	(	6,557)		-	(	6,557)
Effect of plan curtailment		4,854		-		4,854
	(	4,310,884)		1,376,870	(	2,934,014)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)		-		39,382		39,382
Change in demographic
assumptions	(	5,541)		-	(	5,541)
Change in financial assumptions	(	121,114)		-	(	121,114)
Experience adjustments		1,986		-		1,986
	(	124,669)		39,382	(	85,287)
Pension fund contribution		-		384,691		384,691
Paid pension		253,601	(	197,186)		56,415
Exchange difference		5,303		-		5,303
Balance at December 31	($	4,176,649)	$	1,603,757	($	2,572,892)

• (d) On April 5, 2019, the Labor Protection Act (No. 7) B.E. 2562 was announced in the Royal Gazette which will take effect on May 5, 2019. This stipulates additional legal severance pay rates for employees who have worked for an uninterrupted period of twenty years or more, with such employees entitled to receive not less than 400 days’ compensation based on the latest wage rate. This change is considered a post-employment benefits plan amendment. The Group reflected the effect of the change by recognising past service costs as expense in the income statement of the current year.

• (e) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and domestic subsidiaries’ defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered

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by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company and its domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and its domestic subsidiaries are unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as at December 31, 2019 and 2018 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

• (f) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	2019 2018 0.75%~7.7% 1%~3.5% 2.3%~9.0% 3%~3.5% Years ended December 31,

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory.

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

Increase Decrease 0.25%-1% 0.25%-1% December 31,2019 Effect on present value of defined benefit obligation 210,467) ($ 270,232 $ Increase Decrease December 31,2018 0.25% 0.25% Effect on present value of defined benefit obligation 119,638) ($ 124,611 $ Discount rate Discount rate	Increase Decrease 0.25%-1% 0.25%-1% 184,828 $ 132,454) ($ Increase Decrease 0.25% 0.25% 115,753 $ 111,798) ($ Future salaryincreases Future salaryincreases

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

• (g) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2020 amount to $136,361.

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• (h) As at December 31, 2019, the weighted average duration of that retirement plan is 9~22 years.

• B. Defined contribution plans

• (a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act, covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the defined contribution pension plans of the Company and its domestic subsidiaries for the years ended December 31, 2019 and 2018 were $465,201 and $416,363, respectively.

• (b) Other overseas companies have defined contribution plans in accordance with the local regulations. Other than the periodic contribution, the overseas companies have no further obligations.

(17) Share capital

• A. In accordance with the Company’s Articles of Incorporation, the total authorised common stock is 4 billion shares (including 100 million shares for stock warrants conversion). As at December 31, 2019, the total issued and outstanding common stock was 2,597,543 thousand shares with par value of $10 (in dollars) per share.

• B. On December 20, 2004, the Board of Directors of the Company adopted a resolution that allowed certain stockholders to issue 16 million units of global depository receipts (GDRs), represented by 80 million shares of common stock (Deposited Shares), with one unit of GDR representing 5 shares of common stock. After obtaining approval from SFB, these GDRs were listed on the Securities Exchange of Luxembourg on March 29, 2005, with total proceeds of US$134,666 thousand. The issuance of GDRs was represented by outstanding shares, therefore, there is no dilutive effect on the common shares’ equity. The main terms and conditions of the GDRs are as follows:

• (a) Voting rights

GDR holders may, pursuant to the Depositary Agreement and the relevant laws and regulations of the R.O.C., exercise the voting rights pertaining to the underlying common shares represented by the GDRs.

(b) Redemption of GDRs

For sales and redemption of the underlying common shares represented by the GDRs when the holders of the GDRs request the Depositary to redeem the GDRs in accordance with the relevant R.O.C. regulations and the provisions in the Depositary Agreement, the Depositary may (i) deliver the underlying common shares represented by the GDRs to the GDR holders, or (ii) sell

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the underlying common shares represented by the GDRs in the R.O.C. stock market on behalf of the GDR holder. The payment of proceeds from such sale shall be made subject to the relevant R.O.C. laws and regulations and the provisions in the Depositary Agreement.

• (c) Distribution of dividends, preemptive rights and other rights

• Distribution of dividends, preemptive rights and other rights and interests of GDR units bear the same rights as common shares.

• (d) After considering the stock dividend distribution year by year, as at December 31, 2019, there were 603 thousand units outstanding, representing 3,015 thousand common shares of the Company’s common stock.

(18) Capital surplus

Pursuant to the R.O.C. Company Law, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(19) Retained earnings

• A. Under the Company’s Articles of Incorporation approved by the shareholders on June 8, 2016, the current year’s earnings, if any, shall be distributed in the following order:

• (a) Payment of all taxes and dues.

• (b) Offset against prior years’ operating losses, if any.

• (c) Set aside 10% of the remaining amount as legal reserve, unless the accumulated amount of the legal reserve has reached the total authorised capital of the Company.

• (d) Setting aside or reversing a special reserve according to relevant regulations when necessary.

• (e) The remainder along with beginning unappropriated earnings shall be stockholders’ bonus. The appropriation of earnings shall be proposed by the Board of Directors and resolved by the shareholders. As the Company is in the growth stage, and taking into consideration the shareholders’ benefits, financial health and business development, the amount of bonus distributed to shareholders shall be no less than 60% of the distributable earnings for the current period. Cash dividends shall be at least 15% of the bonus distributed to shareholders.

• B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal

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reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

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

• (b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

• D. The appropriations of 2018 and 2017 earnings had been approved by the shareholders during their meeting on June 10, 2019 and June 11, 2018, respectively. Details are summarised below:

The appropriations of 2018 and 2017 earnings had been approved by the shareholders during th meeting on June 10, 2019 and June 11, 2018, respectively. Details are summarised below:	The appropriations of 2018 and 2017 earnings had been approved by the shareholders during th meeting on June 10, 2019 and June 11, 2018, respectively. Details are summarised below:	The appropriations of 2018 and 2017 earnings had been approved by the shareholders during th meeting on June 10, 2019 and June 11, 2018, respectively. Details are summarised below:
Information about the appropriation of earnings will be posted in the “Market Observation P System” at the website of the Taiwan Stock Exchange. The appropriations of 2019 earnings had been proposed by the Board of Directors on March 2020. Details are summarised below: Dividends Dividends per share per share Amount (in dollars) Amount (in dollars) Legal reserve appropriated 1,819,310 $ 1,838,056 $ Special reserve appropriated 472,889 4,320,394 Cash dividends 12,987,717 5.0 $ 12,987,717 5.0 $ Years ended December 31, 2018 2017 Dividends per share Amount (in dollars) Legal reserve appropriated 2,311,780 $ Special reserve appropriated 61,002 Cash dividends 12,987,717 5.0 $ Year ended December31,2019
	Amount 2,311,780 $ 61,002 12,987,717	Dividends per share (in dollars)
		5.0 $

Information about the appropriation of earnings will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

• E. The appropriations of 2019 earnings had been proposed by the Board of Directors on March 10, 2020. Details are summarised below:

As at March 10, 2020, the abovementioned 2019 earnings appropriation has not yet been approved by the stockholders.

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• F. For the information relating to employees’ compensation and directors’ remuneration, please refer to Note 6(26).

(20) Non-controlling interest

Non-controlling interest
		Years ended	December 31,
		2019		2018
At January 1	$	9,189,749	$	9,216,505
Share attributable to non-controlling interest:
Profit for the year		809,959		455,491
Currency translation differences		890,552	(	18,709)
Dividends paid to minority interest	(	2,320,171)	(	369,183)
Increase in non-controlling interest (Note 1)		30,575,137		-
Decrease in non-controlling interest (Note 2)	(	4,947,661)	(	94,355)
At December 31	$	34,197,565	$	9,189,749

(Note 1) The increase in non-controlling interest is mainly due to the acquisition of share capital of DET in 2019.

• (Note 2) The decrease in non-controlling interest is mainly due to the acquisition of additional equity interest in Loy Tec, DIH and Vivotek Inc. during the years ended December 31, 2019 and 2018, respectively. Details are provided in Note 6(31).

(21) Operating revenue

Operating revenue
Revenue from contracts with customers	2019 2018 268,131,397 $ 237,017,809 $ Years ended December 31,
	2019 268,131,397 $

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major business:

Revenue from external customer contracts Timing of revenue recognition At a point in time Over time		Year ended December 31,2019	Year ended December 31,2019	Year ended December 31,2019
	Power electronics 133,069,546 $ 132,559,649 509,897 133,069,546 $	Automation 37,605,027 $ 33,397,404 4,207,623 37,605,027 $	Infrastructure 96,724,182 $ 91,506,014 5,218,168 96,724,182 $	Others 732,642 $ 693,223 39,419 732,642 $	Total
					268,131,397 $
					258,156,290 9,975,107
					268,131,397 $

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Revenue from external customer contracts Timing of revenue recognition At a point in time Over time	Power electronics 107,376,799 $ 106,523,370 853,429 107,376,799 $	Automation Infrastructure Others 35,177,393 $ 92,956,980 $ 1,506,637 $ 30,039,610 86,866,945 1,456,724 5,137,783 6,090,035 49,913 35,177,393 $ 92,956,980 $ 1,506,637 $ Year ended December 31,2018	Total 237,017,809 $
			224,886,649 12,131,160 237,017,809 $

B. Contract assets and liabilities

The Group has recognised the revenue-related contract assets primarily from automation equipment contracts and resolution of communication equipment power resource system; contract liabilities primarily pertain to advance sales receipts, advance receipts for automation equipment contract and resolution of communication equipment power resource system, etc.

Revenue recognised that was included in the contract liability balance at the beginning of the period is as follows:

is as follows:
			Years ended		December 31,
			2019			2018
Revenue recognised that was included in the contract
liability balance at the beginning of the year
Advance sales receipts, advance receipts for	automation
equipment contract and resolution of communication
equipment power resource system, etc.		$	2,643,318		$	1,693,773
Other income
		Years	ended December 31,
		2019				2018
Interest income:
Interest income from bank deposits	$	886,537		$		851,185
Rental income		132,678				114,844
Dividend income		282,302				181,942
Others		2,735,649				3,225,620
	$	4,037,166		$		4,373,591

(22) Other income

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(23) Other gains and losses

Other gains and losses
		Years ended	December 31,
		2019		2018
(Loss) gain on disposal of property, plant and
equipment	($	56,441)	$	274,921
Gain on disposal of investments (Note)		6,001,894		-
Net currency exchange gain		454,685		534,511
Gain (loss) on financial assets/liabilities at fair
value through profit or loss		365,965	(	202,545)
Reversal of impairment loss:
Reversal of impairment loss on property, plant
and equipment		90,215		-
Miscellaneous disbursements	(	551,873)	(	741,459)
	$	6,304,445	($	134,572)

(Note) The Group recognised a gain as a result of measuring at fair value its 20.93% equity interest in DET held before the business combination. Please refer to Note 6(30) for more information.

(24) Finance costs

Finance costs
Interest expense Loss on hedging instruments	Years ended December 31,
	2019 731,745 $ 6,124 $737,869	2018 545,804 $ 2,900
		$ 548,704

(25) Expenses by nature

Expenses by nature
Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Amortisation charges on intangible assets	Years ended December 31,
	2019 55,884,650 $ 10,287,257 625,337 3,072,851 69,870,095 $	2018
		47,419,926 $ 8,792,182 - 2,203,617
		58,415,725 $

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(26) Employee benefit expense

Employee benefit expense
		Years ended	December 31,
		2019		2018
Post-employment benefits
Defined contribution plans	$	955,204	$	737,060
Defined benefit plans		247,409		80,619
		1,202,613		817,679
Other employee benefits		54,682,037		46,602,247
	$	55,884,650	$	47,419,926

• A. According to the Articles of Incorporation of the Company, a ratio of profit of the current year distributable, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall not be lower than 3% for employees’ compensation and shall not be higher than 1% for directors’ remuneration.

• B. For the years ended December 31, 2019 and 2018, employees’ compensation was accrued at $2,347,652 and $2,297,672, respectively; while directors’ remuneration was accrued at $59,902 and $45,376, respectively. The aforementioned amounts were recognised in salary expenses.

For the year ended December 31, 2019, the employees’ compensation and directors’ remuneration were estimated and accrued based on profit of current year distributable as prescribed by the Company’s Articles of Incorporation. The employees’ compensation of $1,763,122 and directors’ remuneration of $29,400 for 2019 were resolved by the Board of Directors on March 10, 2020.

The employees’ compensation of $1,728,344 and directors’ remuneration of $29,400 for 2018 were resolved by the Board of Directors on March 11, 2019. Employees’ compensation as resolved by the Board of Directors was in agreement with the amount recognised in the 2018 financial statements. For directors’ compensation of $39,144, the difference of $9,744 between the amount resolved at the Board meeting and the amount recognised in the 2018 financial statements had been adjusted in the profit or loss for 2019.

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

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(27) Income tax

A. Income tax expense

(a) Components of income tax expense:

Components of income tax expense:
		Years ended	December 31,
		2019		2018
Current tax:
Current tax on profits for the year	$	4,263,471	$	4,663,669
Effect from Alternative Minimun Tax		9,188		612
Prior year income tax (overestimation)
underestimation	(	794,471)		448,246
Tax on undistributed surplus earnings		204,850		3,349
Total current tax		3,683,038		5,115,876
Deferred tax:
Origination and reversal of temporary
differences		1,543,615	(	1,579,877)
Impact of change in tax rate		-		616,445
Total deferred tax		1,543,615	(	963,432)
	$	5,226,653	$	4,152,444

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

follows:
		Years ended	December 31,
		2019	2018
Currency translation differences	$	540,534	$	186,751
Gain or loss on hedging instruments	(	13,404)	(	10,625)
Remeasurement of defined benefit
obligations	(	6,088)	(	17,833)
Unrealised gain or loss on financial assets
measured at fair value through other
comprehensive income		-		86,244
Impact of change in tax rate		-	(	226,071)
	$	521,042	$	18,466

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B. Reconciliation between income tax expense and accounting profit:

		Years ended	December 31,	December 31,
		2019		2018
Tax calculated based on profit before tax and	$	8,895,739	$	6,392,592
statutory tax rate
Effect from items disallowed by tax regulation	(	2,330,177)	(	2,861,011)
Effect from investment tax credits	(	467,938)	(	449,194)
Effect from taxable loss	(	290,538)	(	41,921)
Prior year income tax (overestimation)
underestimation	(	794,471)		448,246
Change in assessment of realisation of
deferred tax assets		-		43,326
Effect from Alternative Minimum Tax		9,188		612
Tax on undistributed surplus earnings		204,850		3,349
Impact of change in tax rate		-		616,445
Tax expenses	$	5,226,653	$	4,152,444

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

							2019	2019
							Recognised					Acquired
							in other					through
			Recognised in			comprehensive			Recognised			business
		January1		profit or loss			income		in equity		combination			December 31
Deferred tax assets:
-Temporary differences:
Allowance for inventory obsolescence	$	571,917	$		212,398	$	-	$	-	$		-	$		784,315
Pension liability		445,400			46,834		6,088		-			-			498,322
Assets impairment		200,743	(		16,786)		-		-			-			183,957
Depreciation difference between tax and		1,391,168	(		140,398)		-		-			-			1,250,770
financial basis
Others		3,264,169	(		49,482)		-		-			244,895			3,459,582
Tax losses		306,088			196,371		-		-			-			502,459
		6,179,485			248,937		6,088		-			244,895			6,679,405
Deferred tax liabilities:
-Temporary differences:
Long-term equity investments	(	9,280,608)	(		1,451,256)	(	540,534)		123			-	(		11,272,275)
Land value increment tax	(	119,862)			-		-		-			-	(		119,862)
Others	(	2,168,962)	(		341,296)		13,404		-	(		119,870)	(		2,616,724)
	(	11,569,432)	(		1,792,552)	(	527,130)		123	(		119,870)	(		14,008,861)
	($	5,389,947)	($		1,543,615)	($	521,042)	$	123	$		125,025	($		7,329,456)

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						2018
						Recognised
						in other
				Recognised in		comprehensive		Recognised
		January1		profit or loss		income		in equity		December 31
Deferred tax assets:
-Temporary differences:
Allowance for inventory obsolescence	$	559,686	$	12,231	$	-	$	-	$	571,917
Pension liability		414,995		8,209		22,196		-		445,400
Assets impairment		307,330	(	106,587)		-		-		200,743
Depreciation difference between tax and		1,648,197	(	257,029)		-		-		1,391,168
financial basis
Others		2,420,107		844,062		-		-		3,264,169
Tax losses		486,280	(	180,192)		-		-		306,088
		5,836,595		320,694		22,196		-		6,179,485
Deferred tax liabilities:
-Temporary differences:
Long-term equity investments	(	10,010,951)		759,137		39,315	(	68,109)	(	9,280,608)
Land revaluation increment tax	(	119,862)		-		-		-	(	119,862)
Others	(	1,972,586)	(	116,399)	(	79,977)		-	(	2,168,962)
	(	12,103,399)		642,738	(	40,662)	(	68,109)	(	11,569,432)
	($	6,266,804)	$	963,432	($	18,466)	($	68,109)	($	5,389,947)

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• D. Expiration dates of unused net operating loss carryforward and amounts of unrecognised deferred tax assets are as follows:

December 31, 2019

Year incurred 2004-2019 2010-2016	Unrecognised Amount filed / deferred Usable until assessed Unused amount tax assets year 6,015,563 $ 5,993,504 $ 5,605,653 $ 2035 3,087,022 $ 3,087,022 $ 1,579,274 $ indefinitely usable

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

December 31, 2018
Unrecognised
Amount filed / deferred Usable until
Year incurred assessed Unused amount tax assets year
2003-2018 $ 6,450,211 $ 6,146,359 $ 3,836,320 2028
2006-2014 $ 580,924 $ 580,924 $ 87,996 indefinitely usable
----- End of picture text -----

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

Deductible temporary differences

December31,2019 4,039,284 $	December31,2018
	180,764 $

• F. The Group has not recognised taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As at December 31, 2019 and 2018, the amounts of temporary differences unrecognised as deferred tax liabilities were $9,690,116 and $8,752,128, respectively.

• G. The status of the Company and its domestic subsidiaries’ assessed and approved income tax returns are as follows:

The Company, DNIT, DECC, Vivotek, Lidlight Inc., AMT, DelBio, Cyntec, UNICOM SYSTEM ENG. CORP., Power Forest Technology Corporation, Vatics Inc., Realwin Investment Inc., Otus Imaging, Inc. and Aetek Inc.

Latest year assessed by Tax Authority 2017

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

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(28) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares: Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares: Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Year	ended December 31,2019
	Amount after tax 23,117,797 $ 23,117,797 $ - 23,117,797 $ Year	Weighted average number of ordinary shares Earnings outstanding per share (shares in thousands) (in dollars) 2,597,543 8.90 $ 2,597,543 13,840 2,611,383 8.85 $ ended December 31,2018	Earnings per share (in dollars)
			8.90 $
			8.85 $
	Amount after tax 18,193,093 $ 18,193,093 $ - 18,193,093 $	Weighted average number of ordinary shares outstanding (shares in thousands) 2,597,543 2,597,543 15,964 2,613,507	Earnings per share (in dollars)
			7.00 $
			6.96 $

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(29) Share-based payment

• A. For the years ended December 31, 2019 and 2018, the Group’s share-based payment arrangements were as follows:

==> picture [476 x 29] intentionally omitted <==

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

Quantity Contract
Type of arrangement Grant date granted period Vesting conditions
----- End of picture text -----

Type of arrangement	Grant date	Quantity granted	Contract period	Vestingconditions
Power Forest - Employee	2017.3.3	1,000,000	6 years	1 year’s service: 40% vested
stock options				2 years’ service: 70% vested
				3 years’ service: 100% vested
〃	2018.3.30	500,000	6 years	1 year’s service: 40% vested
				2 years’ service: 70% vested
				3 years’ service: 100% vested
Vatics Inc. - Employee stock	2016.11.8	2,116,000	3 years	1~3 years’ service
options
Vivotek Inc. - Plan of	2017.11.20	700,000	2 years	1~2 years’ performance
restricted stocks to
employees
〃	2019.8.19	800,000	2 years	1~2 years’ performance

• B. Details of the share-based payment arrangements are as follows:

• (a) Employee share options

				Years ended	December 31,	December 31,
			2019				2018
			Weighted-average				Weighted-average
		No. of		exercise price		No. of		exercise price
		options		(in dollars)		options		(in dollars)
Options outstanding
opening balance at
January 1		1,960,000	$	15.72		2,742,000	$	15.95
Options granted		-		-		500,000		15.00
Options forfeited	(	227,000)		15.00	(	241,000)		15.00
Options exercised		-		-	(	242,000)		15.00
Options expired	(	61,000)		16.50	(	799,000)		16.50
Options outstanding
at December 31		1,672,000	$	15.79		1,960,000	$	15.72
Options exercisable at
December 31		1,267,000	$	16.04		807,250	$	16.31

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(b) Restricted stocks to employees

Restricted stocks to employees
		Years ended December 31,
		2019		2018
		No. of shares		No. of shares
January 1		345,500		700,000
Granted during the year		800,000		-
Vested during the year		-	(	280,412)
Expired during the year	(	347,500)	(	74,088)
December 31		798,000		345,500

• C. The expiry date and exercise price of stock options outstanding at balance sheet date are as follows:

follows:
Issue date approved Expiry date November 8, 2016 November 7, 2019 March 3, 2017 March 2, 2023 March 30, 2018 March 29, 2024 Issue date approved Expiry date November 8, 2016 November 7, 2019 March 3, 2017 March 2, 2023 March 30, 2018 March 29, 2024	December 31, 2019
	Exercise price No. of shares (in dollars) 882,000 16.50 $ 430,000 15.00 360,000 15.00 December 31, 2018
	Exercise price No. of shares (in dollars) 943,000 16.50 $ 577,000 15.00 440,000 15.00

• D. The fair value of stock options granted is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Type of arrangement Power Forest- Employee stock options 〃 Vatics Inc.- Employee stock options	Grant date 2017.3.3 2018.3.30 2016.11.8	Stock price (in dollars) $ 18.38 16.42 14.60	Exercise price (in dollars) $ 15.00 15.00 16.50	Expected price volatility 32.08%~ 33.22% (Note) 32.43%~ 33.08% (Note) 36.37%~ 37.25% (Note)	Expected option life(years) 3.5~4.5 3.5~4.5 2.5~3.5	Expected dividends 5% 5% Not applicable	Risk-free interest rate 0.79%~ 0.88% 0.63%~ 0.68% 0.57%~ 0.67%	Fair value per unit (in dollars)
								4.0053~ 4.0960 3.0262~ 3.0767 2.7995~ 3.3727

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Type of Grant arrangement date Vivotek Inc.- Plan of restricted stocks to employees 2017.11.20 〃 2019.8.19	Stock price (in dollars) 97.20 102.50	Exercise price (in dollars) - -	Expected price volatility Not applicable Not applicable	Expected option life(years) 1~2 1~2	Expected dividends Not applicable Not applicable	Risk-free interest rate Not applicable Not applicable	Fair value per unit (in dollars) 97.2000 102.5000

• Note: Expected price volatility rate was estimated by using the stock prices of the most recent period with length of this period approximate to the length of the stock options’ expected life, and the standard deviation of return on the stock during this period.

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

Equity-settled

Years ended	December 31,
2019	2018
$41,176	($5,282)

(30) Business combinations

• A. On April 2, 2019, the Group acquired 42.85% of the share capital of the Group’s associate, DET, for $36,874,645 and obtained control over DET. As a result of the acquisition, the Group is expected to decrease its risk on global trade and extend global business. On June 1, 2019, the Group acquired 100% of the share capital of Amerlux for $2,844,498 and obtained control over Amerlux. As a result of the acquisition, the Group is expected to improve the product mix of lighting fixture and provide completed solutions to customers. The amortisation duration of acquisition price for Amerlux will complete in one year after the acquisition.

• B. The following table summarises the consideration paid for DET and Amerlux and the fair values of the assets acquired and liabilities assumed at the acquisition date, as well as the fair value of the non-controlling interest at the acquisition date:

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		December 31,2019	December 31,2019
Purchase consideration
Cash	$		39,719,143
Contingent consideration			271,048
			39,990,191
Fair value of equity interest in DET Company held before the
business combination			18,057,035
Fair value of the non-controlling interest			30,575,137
			88,622,363
Fair value of the identifiable assets acquired and liabilities assumed
Cash and cash equivalents			15,701,128
Other current assets			22,719,840
Property, plant and equipment			9,984,301
Intangible assets			17,170,117
Deferred tax assets			244,895
Other non-current assets			281,247
Other current liabilities	(		13,250,975)
Deferred tax liabilities	(		119,870)
Other non-current liabilities	(		2,051,916)
Total identifiable net assets			50,678,767
Goodwill	$		37,943,596

• C. The fair value of Amerlux of the acquired identifiable intangible assets and goodwill of $979,600 and $1,253,428 is provisional pending receipt of the final valuations for those assets.

• D. The Group originally held 20.93% of share ownership in DET before the business combination. Gain on remeasurement of fair value amounted to $5,925,521.

• E. The operating revenue included in the consolidated statement of comprehensive income since April 2, 2019 and June 1, 2019 contributed by DET and Amerlux were $29,052,688 and $1,658,205, respectively. DET and Amerlux also contributed profit before income tax amounting to $290,505 and $116,978 over the same period, respectively. Had the companies been consolidated from January 1, 2019, the consolidated statement of comprehensive income would show operating revenue of $278,665,788 and profit before income tax of $29,561,067.

(31) Transactions with non-controlling interest - Acquisition of additional equity interest in a subsidiary

In March and December 2019, the Group acquired an additional 15% and 6% of shares of Loy Tec and DIH for a total cash consideration of $372,338 and $3,904,000, respectively. The effect of changes in interests attributable to owners of the parent for the year ended December 31, 2019 is shown below:

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			Year	ended December 31,	ended December 31,	ended December 31,	2019	2019	2019
			LoyTec			DIH			Total
Carrying amount of non-		$	369,887		$	4,577,774		$	4,947,661
controlling interest acquired
Consideration paid to non-
controlling interest	(		372,338)	(		3,904,000)	(		4,276,338)
Capital surplus - difference
between proceeds on actual
acquisition of or disposal of
equity interest in a subsidiary
and its carrying amount	($		2,451)	$		673,774	$		671,323
Changes in liabilities from financing			activities
						Long-term
						borrowings			Liabilities from
			Short-term		(including current				financing
			borrowings			portion)			activities-gross
At January 1, 2019	$		6,259,062	$		25,406,487	$		31,665,549
Changes in cash flow from
financing activities			1,316,870			2,407,888			3,724,758
At December 31, 2019	$		7,575,932	$		27,814,375	$		35,390,307
						Long-term
						borrowings			Liabilities from
			Short-term		(including current				financing
			borrowings			portion)			activities-gross
At January 1, 2018	$		17,463,509	$		11,267,688	$		28,731,197
Changes in cash flow from
financing activities	(		11,204,447)			14,138,799			2,934,352
At December 31, 2018	$		6,259,062	$		25,406,487	$		31,665,549

(32) Changes in liabilities from financing activities

7.	RELATED PARTY TRANSACTIONS (1)Names and relationship of related parties Names and relationshipof relatedparties Delta Electronics (Thailand) Public Company Limited Delta Electronics (Slovakia) s.r.o. Delta Electronics India Pvt. Ltd. Delta Energy Systems (Singapore) PTE. LTD. Delta Energy Systems (Australia) Pty. Ltd. Eltek s.r.o.	RELATED PARTY TRANSACTIONS (1)Names and relationship of related parties Names and relationshipof relatedparties Delta Electronics (Thailand) Public Company Limited Delta Electronics (Slovakia) s.r.o. Delta Electronics India Pvt. Ltd. Delta Energy Systems (Singapore) PTE. LTD. Delta Energy Systems (Australia) Pty. Ltd. Eltek s.r.o.	Relationshipwith the Group
	(1)
		Delta Electronics (Thailand) Public Company Limited Delta Electronics (Slovakia) s.r.o. Delta Electronics India Pvt. Ltd. Delta Energy Systems (Singapore) PTE. LTD. Delta Energy Systems (Australia) Pty. Ltd. Eltek s.r.o.	It is an associate before April 2, 2019, and has been a subsidiary since April 2, 2019 " " " " "

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Names and relationshipof relatedparties	Relationshipwith the Group
Delta Power Solutions (India) Pvt. Ltd. Digital Projection Ltd. Digital Projection Inc.	Merged with Delta Electronics India Pvt. Ltd. in February 2019 Associate "

(2) Significant transactions and balances with related parties

A. Operating revenue

Operating revenue
		Years ended	December 31,
		2019		2018
Sales of goods:
Associates	$	1,973,449	$	4,631,945
Sales of services:
Associates		426,003		1,672,968
	$	2,399,452	$	6,304,913

The sales terms, including prices and collections, were negotiated based on cost, market, competitors and other factors. Sales of services are negotiated with related parties on a cost-plus basis.

B. Purchases of goods

Purchases of goods
Purchases of goods: Associates	Years ended December 31,
	2019 2018 1,515,592 $ 7,004,953 $

The purchase terms, including prices and payments, were negotiated based on cost, market, competitors and other factors.

C. Period-end balances arising from sales of goods

Period-end balances arising from sales of goods
Receivables from related parties: Associates	December 31,2019 263,644 $	December 31,2018
		1,722,114 $

The receivables from related parties arise mainly from sales transactions. The receivables are due 75 days after the date of sale. The receivables are unsecured in nature and bear no interest.

D. Period-end balances arising from purchases of goods

Payables to related parties: Associates	December 31,2019 32,197 $	December 31,2018
		1,484,335 $

The payables to related parties arise mainly from purchase transactions and are due 70 days after

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the date of purchase. The payables bear no interest.

• E. Period-end balances arising from other transactions

	December 31,2019	December 31,2019	December	31,2018
Other receivables-related parties
Associates	$	532	$	99,389

The above pertain mainly to payments on behalf of others.

• F. Disposal of other assets

Items Associates Other equipment	Proceeds Gain 53,048 $ 17,465 $ Year ended December 31,2018

For the year ended December 31, 2019, the Group has not disposed equipment to related parties.

(3) Key management compensation

Key management compensation
Short-term employee benefits Post-employment benefits	2019 2018 278,719 $ 450,556 $ 920 3,204 279,639 $ 453,760 $ Years ended December 31,
		450,556 $ 3,204
		453,760 $

8. PLEDGED ASSETS

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

Pledged assets Demand deposits (shown as other current assets) Time deposits (shown as other current assets) Time deposits (shown as other non-current assets) Property, plant and equipment	December 31, 2019 44,856 $ 232,150 49,505 578,606 905,117 $	December 31, 2018 127,251 $ 147,901 - 588,052 863,204 $	Pledgepurpose
			Performance bonds Perfermance bonds, customs deposits and other guarantee deposits Customs deposits Long-term borrowings and credit line

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

None.

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(2) Commitments

Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

	December 31, 2019	December 31, 2018
Property, plant and equipment	8,309,363 $	2,482,368 $
Costs of computer software	163,391 $	285,000 $

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

• A. Information about the appropriations of 2019 earnings of the Company is provided in Note 6(19)E.

• B. Due to the impact of the spread of COVID-19, the Group postponed the plans to resume the production of its plants in China after the Lunar New Year holiday to February 10, 2020 in line with the local regulations. As the coronavirus epidemic continues to evolve, the Group has prudently and flexibly adjusted the Group’s resources, labour and supply chain to mitigate the impact on its operation. The extent to which the Group’s operating revenue is affected by the delay of production resumption depends on the subsequent control of coronavirus epidemic situation.

12. OTHERS

(1) Capital risk management

The Group’s objectives when managing capital are to maintain an integrity credit rating and good capital structure to support operating and maximum stockholders’ equity.

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(2) Financial instruments

A. Financial instruments by category

Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Selected designated investments in equity instruments Financial assets at amortised cost Cash and cash equivalents Notes receivable Accounts receivable Other receivables Guarantee deposits paid Other financial assets Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities designated as at fair value through profit or loss Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable Other accounts payable Lease liability (including current portion) Long-term borrowings (including current portion) Guarantee deposits received	December 31,2019 3,347,697 $ 2,117,124 $ 43,960,001 $ 3,816,628 53,218,750 1,480,157 333,011 326,511 103,135,058 $ 15,929 $ 7,575,932 $ 21,669 39,510,659 28,829,379 1,946,635 27,814,375 387,488 106,086,137 $	December 31,2018
		3,392,915 $ 2,977,994 $
		59,618,697 $ 4,091,231 53,775,610 856,397 314,517 275,152
		118,931,604 $
		8,544 $
		6,259,062 $ 7,955 40,501,108 24,786,588 - 25,406,487 87,287
		97,048,487 $

B. Financial risk management policies

The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial position and financial performance. The Group uses derivative financial instruments to hedge certain risk exposures (see Note 6(2)).

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• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD, RMB and EUR. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.

• ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the Group use forward foreign exchange contracts, foreign exchange swap contracts and options, transacted with Group treasury.

• iii. The Group adopts the derivative financial instruments like forward exchange contracts / forward exchange transactions, etc. to hedge the fair value risk and cash flow risk due to foreign exchange rate fluctuations. The Group monitors at any time and pre-sets a “stop loss” amount to limit its foreign exchange risk.

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

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==> picture [401 x 402] intentionally omitted <==

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

December 31, 2019
Foreign currency
amount Exchange Book value
(in thousands) rate (NTD)
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD:NTD $ 376,392 29.98 $ 11,284,239
EUR:USD (Note) 76,590 1.1204 2,572,651
RMB:USD (Note) 1,264,427 0.1436 5,442,070
USD:RMB (Note) 417,948 6.9756 12,530,081
USD:THB (Note) 160,067 29.69 4,798,813
Non-monetary items
USD:NTD $ 4,761,343 29.98 $ 142,745,063
THB:USD (Note) 48,841,876 0.0337 49,320,526
RMB:USD (Note) 7,144,181 0.1436 30,748,410
NOK:USD (Note) 3,740,486 0.1137 12,748,138
THB:NTD 4,544,178 1.0098 4,588,711
ERU:USD (Note) 73,212 1.1204 2,459,179
Financial liabilities
Monetary items
USD:NTD $ 331,831 29.98 $ 9,948,281
RMB:USD (Note) 1,816,382 0.1436 7,817,670
USD:RMB (Note) 242,021 6.9756 7,255,785
USD:THB (Note) 183,394 29.69 5,498,147
----- End of picture text -----

Note: Certain consolidated entities’ functional currency is not NTD. Therefore, the Group shall consider these items when disclosing the above information.

~99~

Foreign currency amount Exchange Book value (in thousands) rate (NTD) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 97,782 $ 30.7150 3,003,374 $ RMB:USD (Note) 1,392,537 0.1456 6,228,957 USD:RMB (Note) 340,946 6.8666 10,472,156 EUR:NOK (Note) 42,704 10.0329 1,503,181 EUR:USD (Note) 62,091 1.1460 2,185,603 Non-monetary items USD:NTD 4,178,234 $ 30.7150 128,334,451 $ RMB:USD (Note) 6,716,680 0.1456 30,044,381 NOK:USD (Note) 3,479,516 0.1142 12,207,741 THB:USD (Note) 6,908,111 0.0310 6,584,811 EUR:USD (Note) 61,261 1.1460 2,156,379 THB:NTD 1,647,048 0.9532 1,569,966 Financial liabilities Monetary items USD:NTD 1,170,089 $ 30.7150 35,939,284 $ EUR:NTD 30,378 35.2000 1,069,306 RMB:USD (Note) 1,938,334 0.1456 8,670,362 USD:RMB (Note) 273,578 6.8666 8,402,948 EUR:NOK (Note) 48,333 10.0329 1,701,322 EUR:USD (Note) 38,062 1.1460 1,339,782 December 31,2018	Foreign currency amount Exchange Book value (in thousands) rate (NTD) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 97,782 $ 30.7150 3,003,374 $ RMB:USD (Note) 1,392,537 0.1456 6,228,957 USD:RMB (Note) 340,946 6.8666 10,472,156 EUR:NOK (Note) 42,704 10.0329 1,503,181 EUR:USD (Note) 62,091 1.1460 2,185,603 Non-monetary items USD:NTD 4,178,234 $ 30.7150 128,334,451 $ RMB:USD (Note) 6,716,680 0.1456 30,044,381 NOK:USD (Note) 3,479,516 0.1142 12,207,741 THB:USD (Note) 6,908,111 0.0310 6,584,811 EUR:USD (Note) 61,261 1.1460 2,156,379 THB:NTD 1,647,048 0.9532 1,569,966 Financial liabilities Monetary items USD:NTD 1,170,089 $ 30.7150 35,939,284 $ EUR:NTD 30,378 35.2000 1,069,306 RMB:USD (Note) 1,938,334 0.1456 8,670,362 USD:RMB (Note) 273,578 6.8666 8,402,948 EUR:NOK (Note) 48,333 10.0329 1,701,322 EUR:USD (Note) 38,062 1.1460 1,339,782 December 31,2018
	3,003,374 $ 6,228,957 10,472,156 1,503,181 2,185,603 128,334,451 $ 30,044,381 12,207,741 6,584,811 2,156,379 1,569,966 35,939,284 $ 1,069,306 8,670,362 8,402,948 1,701,322 1,339,782

Note: Certain consolidated entities’ functional currency is not NTD. Therefore, the Group shall consider these items when disclosing the above information.

• v. Total exchange gain, including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2019 and 2018 amounted to $454,685 and $534,511, respectively.

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		Year	ended December 31,	ended December 31,	2019
			Sensitivityanalysis
(Foreign currency:	Degree of		Effect on		Effect on
functional currency)	variation	profit or loss		comprehensive income
Financial assets
Monetary items
USD : NTD	1%	$	112,842	$	-
EUR : USD (Note)	1%		25,727		-
RMB : USD (Note)	1%		54,421		-
USD : RMB (Note)	1%		125,301		-
USD : THB (Note)	1%		47,988		-
Financial liabilities
Monetary items
USD : NTD	1%	$	99,483	$	-
RMB : USD (Note)	1%		78,177		-
USD : RMB (Note)	1%		72,558		-
USD : THB (Note)	1%		54,981		-

Note: Certain consolidated entities’ functional currency is not NTD. Therefore, the Group shall consider these items when disclosing the above information.

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : USD (Note) USD : RMB (Note) EUR : NOK (Note) EUR : USD (Note) Financial liabilities Monetary items USD : NTD EUR : NTD RMB : USD (Note) USD : RMB (Note) EUR : NOK (Note) EUR : USD (Note)	Year ended December 31,2018	Year ended December 31,2018	Year ended December 31,2018
		Sensitivityanalysis
	Degree of variation 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%	Effect on profit or loss 30,034 $ 62,290 104,722 15,032 21,856 359,393 $ 10,693 86,704 84,029 17,013 13,398	Effect on comprehensive income
			- $ - - - - - $ - - - - -

Note: Certain consolidated entities’ functional currency is not NTD. Therefore, the Group

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shall consider these items when disclosing the above information.

Price risk

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

• ii The Group’s investments in equity securities comprise shares issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2019 and 2018 would have increased/decreased by $15,240 and $13,901, respectively, as a result of gain/loss on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $21,171 and $16,325, respectively, as a result of other comprehensive income classified equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

• i. The Group’s main interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Group’s borrowings mainly bear fixed and variable interest rate. During the years ended December 31, 2019 and 2018, the Group’s borrowings at variable rate were denominated in NTD, USD and JPY.

• ii. On December 31, 2019 and 2018, if the interest rate increases by 0.25%, with all other variables held constant, profit, net of tax for the years ended December 31, 2019 and 2018 would have decreased by $55,629 and $50,811, respectively. The main factor is that changes in interest expense result from floating rate borrowings.

(b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of financial instruments which were settled in accordance with trading conditions.

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

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

• iv. For banks and financial institutions, only well rated parties are accepted.

• v. The Group adopts the assumption under IFRS 9, that is, if the contract payments are past due over 180 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• vi. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are not expected to be recovered and are transferred to overdue receivables.

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

• viii. The Group uses the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. On December 31, 2019 and 2018, the provision matrix is as follows:

matrix is as follows:
At December 31, 2019 Expected loss rate Total book value Loss allowance Expected loss rate Total book value Loss allowance At December 31, 2018 Expected loss rate Total book value Loss allowance Expected loss rate Total book value Loss allowance	Notpast due 0.02% 46,827,565 $ 9,549 $ 181-365 days past due 45.50% 457,455 $ 208,124 $ Notpast due 0.00% 46,402,866 $ 424 $ 181-365 days past due 49.81% 249,925 $ 124,497 $	1-90 dayspast due 1.05% 5,598,752 $ 58,661 $ Over 366 days past due 96.56% 664,075 $ 641,243 $ 1-90 dayspast due 1.15% 5,331,599 $ 61,260 $ Over 366 dayspast due 96.38% 731,317 $ 704,826 $	91-180 days past due
			22.00% 416,452 $
			91,616 $
			Total
			53,964,299 $
			1,009,193 $
			91-180 dayspast due
			23.39% 298,633 $
			69,837 $
			Total
			53,014,340 $
			960,844 $

ix. Movements in relation to the Group applying the simplified approach to provide loss allowance for notes receivable, accounts receivable, contract assets and overdue

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receivables are as follows:

receivables are as follows:
At January 1 Reversal of impairment loss Acquired from business combinations Write-offs during the year Effect of foreign exchange At December 31 At January 1_IAS 39 Adjustments under new standards At January 1-IFRS 9 (Reversal of) provision for impairment loss Effect of foreign exchange At December 31	Notes Accounts receivable receivable - $ 960,844 $ - 2,747) ( - 99,556 - 2,257) ( - 46,203) ( - $ 1,009,193 $	Contract Overdue assets receivables - $ 271,439 $ - 53,321) ( - - - 4,484) ( - 229) ( - $ 213,405 $ 2019 2018		Total
				1,232,283 $ 56,068) ( 99,556 6,741) ( 46,432) (
				1,222,598 $
	Notes Accounts receivable receivable - $ 1,166,495 $ - - - 1,166,495 - 166,297) ( - 39,354) ( - $ 960,844 $	Contract assets - $ - - - - - $	Overdue receivables 238,283 $ - 238,283 27,808 5,348 271,439 $	Total
				1,404,778 $ -
				1,404,778 138,489) ( 34,006) (
				1,232,283 $

For provisioned loss for the years ended December 31, 2019 and 2018, the reversal of impairment loss arising from customers’ contracts amounted to $56,068 and $138,489, respectively.

(c) Liquidity risk

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

• ii. The table below analyses the Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities:

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Non-derivative financial liabilities:

Non-derivative financial liabilities:
Less than December 31,2019 1year Short-term borrowings 7,575,932 $ Notes and accounts payable (including related parties) 39,532,328 Other payables 28,829,379 Lease liabilities (including current portion) 525,370 Long-term borrowings (including current portion) 65,536 Less than December 31, 2018 1year Short-term borrowings 6,259,062 $ Notes and accounts payable (including related parties) 40,509,063 Other payables 24,786,588 Long-term borrowings (including current portion) 173,700 Non-derivative financial liabilities:	Between 1 and 2years - $ - - 372,557 25,045,203 Between 1 and 2years - $ - - 24,585,550	Between 2 and 5years - $ - - 506,528 2,225,817 Between 2 and 5years - $ - - 116,969	Over 5years
			- $ - - 542,180 477,819 Over 5 years
			- $ - - 530,268

Derivative financial liabilities:

As at December 31, 2019 and 2018, the Group’s derivative financial liabilities are due within 1 year.

• iii. The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis to be significantly earlier, nor expect the actual cash flow amount to be significantly different.

(3) Fair value information

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

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3: Unobservable inputs for the asset or liability.

• B. The carrying amounts of financial instruments not measured at fair value including cash and cash equivalents, notes receivable, accounts receivable, other receivables, short-term borrowings,

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notes payable, accounts payable, other payables and long-term borrowings (including current portion) are approximate to their fair values.

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

December 31, 2019 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity instruments Hybrid instruments Derivative instruments Financial assets at fair value through other comprehensive income Equity instruments Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Derivative instruments December 31, 2018 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity instruments Hybrid instruments Derivative instruments Financial assets at fair value through other comprehensive income Equity instruments Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Derivative instruments	Level 1 1,523,977 $ 99,252 - 1,426,179 3,049,408 $ - $ Level 1 1,390,101 $ 54,000 - 1,632,492 3,076,593 $ - $	Level 2 - $ - 142,668 - 142,668 $ 15,929 $ Level 2 - $ - 37,047 - 37,047 $ 8,544 $	Level 3 1,581,800 $ - - 690,945 2,272,745 $ - $ Level 3 1,842,693 $ 69,074 - 1,345,502 3,257,269 $ - $	Total
				3,105,777 $ 99,252 142,668 2,117,124
				5,464,821 $
				15,929 $
				Total
				3,232,794 $ 123,074 37,047 2,977,994
				6,370,909 $
				8,544 $

• D. The methods and assumptions that the Group used to measure fair value are as follows:

(a) The instruments that the Group used market quoted prices as their fair values (that is, Level

• 1) are listed below by characteristics:

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Listed shares Convertible (exchangeable) Market quoted price Closing price Closing price

• (b) Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques that are approved for financial management.

• (c) When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

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

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

• (f) The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty.

• E. For the years ended December 31, 2019 and 2018, there was no transfer between Level 1 and Level 2.

• F. The following chart is the movement of Level 3 for the years ended December 31, 2019 and 2018:

2018:
						2019
		Hybrid	instruments		Equity	instruments		Total
At January 1	$		69,074	$		3,188,195	$	3,257,269
Loss recognised in profit or
loss			-	(		147,181)	(	147,181)
Acquired during the year			-			463,571		463,571
Transferred from convertible
bonds	(		69,074)			69,074		-
Disposals during the year			-	(		1,289,621)	(	1,289,621)
Net exchange differences			-	(		11,293)	(	11,293)
At December 31		$	-	$		2,272,745	$	2,272,745

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At January 1 Transfers from prepayments for investment Effect of IFRS 9 adjustment Loss recognised in profit or loss Gains and losses recognised in other comprehensive income Acquired during the year Proceeds from capital reduction Disposals during the year Net exchange differences At December 31	Hybrid instruments Equityinstruments Total - $ 1,580,428 $ 1,580,428 $ - 58,869 58,869 - 1,147,672 1,147,672 - 14,215) ( 14,215) ( - 337,414 337,414 69,074 419,585 488,659 - 12,930) ( 12,930) ( - 353,201) ( 353,201) ( - 24,573 24,573 69,074 $ 3,188,195 $ 3,257,269 $ 2018

• G. Investment department is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions and periodical review. Investment property is evaluated regularly by the Group’s financial treasury based on the valuation methods and assumptions announced by the Financial Supervisory Commission, Securities and Futures Bureau.

The capital department establishes valuation policies, valuation processes and ensures compliance with the related requirements in IFRS. The related valuation results are reported to the management monthly. The management is responsible for managing and reviewing valuation processes.

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

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Non-derivative equity instruments: Unlisted shares 〃 Non-derivative equity instruments: Unlisted shares 〃 Hybrid instruments: Convertible bonds	Fair value at December 31,2019	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	$ 2,007,345 265,400 Fair value at December 31,2018	Most recent non-active market price Market comparable companies Valuation technique	Not applicable Price to book ratio multiple Discount for lack of marketability Significant unobservable input	- 1.96~19.97 20% Range (weighted average)	Not applicable The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value Relationship of inputs to fair value
	$ 2,994,240 193,955 $ 69,074	Most recent non-active market price Market comparable companies Market comparable companies	Not applicable Price to book ratio multiple Discount for lack of marketability Enterprise value to EBITDA Discount for lack of marketability	- 0.97~3.8 20% 9.02 30%	Not applicable The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value

~109~

• I. The Group’s valuation techniques are based on the most recent non-active market price after carefully assessing the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

Financial assets Equity instruments Financial assets Equity instruments Hybrid instruments	Discount for lack of marketability Input Input	± 1% ± 1% ± 1% Change Change	Favorable Unfavorable change change - $ - $ December Recognised in profit or loss December	Favorable Unfavorable change change 3,275 $ 3,275) ($ Favorable Unfavorable change change 2,411 $ 2,411) ($ - $ - $ 31,2019 Recognised in other comprehensive income(loss) 31, 2018 Recognised in other comprehensive income(loss)
			Favorable Unfavorable change change - $ - $ 1,040 $ 1,040) ($ Recognised in profit or loss
	Discount for lack of marketability Discount for lack of marketability

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

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

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

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

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

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

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in

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capital or more: Please refer to table 6.

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

• I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Notes 6(2), 6(4) and 12(2).

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

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China) ： Please refer to table 9.

(3) Information on investments in Mainland China

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

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland China: Please refer to table 6, 7 and 8 for significant transactions of purchases, sales, receivables and payables of investee companies in the Mainland China, and transactions between the Company indirectly through investees in a third area, Delta Electronics Int'l (Singapore) Pte. Ltd. (DEIL-SG) and Cyntec International Ltd. (CIL-Labuan), with investee companies in the Mainland China, for the year ended December 31, 2019.

14. OPERATING SEGMENT INFORMATION

(1) General information

The Group’s management has determined the reportable segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. The Group considers the business from a product perspective. The Group’s business is segregated into power electronics business, automation business and infrastructure business. Breakdown of the revenue from all sources is as follows:

• A. Power electronics: Component, Embedded Power, Fans and Thermal Management, Automotive Electronics, Merchant & Mobile Power and Vivitek Projectors.

• B. Automation: Industrial Automation and Building Automation.

• C. Infrastructure: ICT Infrastructure and Energy Infrastructure.

Because of the change of product classification, the Group’s internal business segment restructured accordingly. The prior period information was restated for comparison.

(2) Measurement of segment information

The Group’s segment profit (loss) is measured with the operating profit (loss) before tax, which is used as a basis for the Group in assessing the performance of the operating segments. The accounting policies of the operating segments are in agreement with the significant accounting policies summarized in Note 4.

(3) Segment information

The segment information provided to the chief operating decision-maker for the reportable segments

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is as follows:

is as follows:
Revenue from external customers Segment income (Note) Revenue from external customers Segment income (Note)		Year ended December 31,2019
	Power electronics business 133,069,546 $ 15,511,770 $	Automation Infrastructure business business 37,605,027 $ 96,724,182 $ 3,283,965 $ 6,411,617 $ Year ended December 31,2018		Total
				267,398,755 $
				25,207,352 $
	Power electronics business 107,376,799 $ 11,563,105 $	Automation business 35,177,393 $ 4,304,910 $	Infrastructure business 92,956,980 $ 6,876,648 $	Total
				235,511,172 $
				22,744,663 $

Note: Segment income represents income after eliminating inter-segment transactions.

(4) Reconciliation information for segment income (loss)

• A. The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that of the statement of comprehensive income.

• B. A reconciliation of reportable segments income or loss to income (loss) before tax from continuing operations for the years ended December 31, 2019 and 2018 is provided as follows:

		Years ended	December	31,
		2019	2018
Reportable segments income	$	25,207,352	$	22,744,663
Other segments’ loss	(	5,798,562)	(	4,577,940)
Non-operating income and expenses		9,745,619		4,634,305
Income before tax from continuing operations	$	29,154,409	$	22,801,028

(5) Information on products and services

As the Group considered the business from a product perspective, the reportable segments were based on different products and services. Revenues from external customers are the same as in Note 14(3).

(6) Geographical information

Information about geographic areas for the years ended December 31, 2019 and 2018 were as follows:

~112~

				Years ended	December 31,	December 31,
		2019				2018
				Non-current				Non-current
		Revenue		assets		Revenue		assets
Mainland China	$	106,559,016	$	26,739,482	$	129,527,991	$	27,608,438
U.S.A.		69,568,497		4,764,583		31,582,755		2,879,059
Taiwan		8,387,683		26,387,992		7,387,094		31,566,486
Tailand		1,733,577		41,987,260		1,901,354		-
Others		81,882,624		51,454,579		66,618,615		21,193,322
	$	268,131,397	$	151,333,896	$	237,017,809	$	83,247,305

(7) Major customer information

There are no customers accounting for more than 10% of the Group’s operating revenues for the years ended December 31, 2019 and 2018.

~113~

Table 1

Delta Electronics, Inc. and Subsidiaries

Loans to others Year ended December 31, 2019

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

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2019(Note 2)	Balance at December 31, 2019	Actual amount drawn down	Interest rate	Nature of loan (Note 7)	Amount of transactions with the borrower	Reason for short- term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
													Item	Value
1	Fairview Assets Ltd.	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	10,193,200 $	10,193,200 $	10,193,200 $	0.50%	2	- $	Additional operating capital	- $	None	- $	29,928,831 $	29,928,831 $	Note 5
1	Fairview Assets Ltd.	Delta Controls Inc.	Other receivables – related parties	Yes	3,237,840	2,998,000	2,008,660	0.50%	2	-	Additional operating capital	-	None	-	29,928,831	29,928,831	Note 5
1	Fairview Assets Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Other receivables - related parties	Yes	8,994,000	8,139,570	8,139,570	0.50%	2	-	Additional operating capital	-	None	-	29,928,831	29,928,831	Note 5
2	Delta Networks Holding Limited	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	6,595,600	2,398,400	2,398,400	0.50%	2	-	Additional operating capital	-	None	-	5,522,502	5,522,502	Note 5
2	Delta Networks Holding Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Other receivables - related parties	Yes	869,420	869,420	869,420	0.50%	2	-	Additional operating capital	-	None	-	5,522,502	5,522,502	Note 5
3	Delta Electronics (H.K.) Ltd.	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	839,440	-	-	0.50%	2	-	Additional operating capital	-	None	-	17,387,743	17,387,743	Note 5
3	Delta Electronics (H.K.) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Other receivables - related parties	Yes	5,996,000	-	-	0.50%	2	-	Additional operating capital	-	None	-	17,387,743	17,387,743	Note 5
4	Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	8,904,060	8,004,660	8,004,660	0.50%	2	-	Additional operating capital	-	None	-	71,442,255	71,442,255	Note 5
4	Delta International Holding Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Other receivables - related parties	Yes	18,347,760	14,750,160	14,750,160	0.50%	2	-	Additional operating capital	-	None	-	71,442,255	71,442,255	Note 5
4	Delta International Holding Limited	Drake Investment (HK) Limited	Other receivables - related parties	Yes	1,109,260	989,340	989,340	0.50%	2	-	Additional operating capital	-	None	-	71,442,255	71,442,255	Note 5
4	Delta International Holding Limited	Delta Electronics (H.K.) Ltd.	Other receivables - related parties	Yes	3,897,400	1,388,074	938,374	0.50%	2	-	Additional operating capital	-	None	-	71,442,255	71,442,255	Note 5
5	ELTEK AS	Eltek Italia S.r.l.	Other receivables - related parties	Yes	26,872	26,872	26,773	1.90%	2	-	Additional operating capital	-	None	-	2,233,058	2,233,058	Note 5
6	Delta Electronics (Wuhu) Co., Ltd.	Cyntec Electronics (Suzhou) Co., Ltd.	Other receivables - related parties	Yes	172,159	-	-	4.35%	2	-	Additional operating capital	-	None	-	4,414,992	4,414,992	Note 5
6	Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics (Jiangsu) Ltd.	Other receivables - related parties	Yes	1,291,194	1,291,194	1,075,995	4.35%	2	-	Additional operating capital	-	None	-	4,414,992	4,414,992	Note 5
7	Vivotek Inc.	Vatics Inc.	Other receivables - related parties	Yes	200,000	200,000	163,565	1.34%	2	-	Additional operating capital	-	None	-	288,353	576,705	Note 6
7	Vivotek Inc.	Lidlight Inc.	Other receivables - related parties	Yes	10,000	10,000	-	1.34%	2	-	Additional operating capital	-	None	-	20,000	576,705	Note 6
7	Vivotek Inc.	Otus Imaging, Inc.	Other receivables - related parties	Yes	15,000	15,000	-	1.34%	2	-	Additional operating capital	-	None	-	60,000	576,705	Note 6
8	Grandview Holding Ltd.	Cyntec Holding (H.K.) Ltd.	Other receivables - related parties	Yes	2,998	2,998	2,998	0.50%	2	-	Additional operating capital	-	None	-	9,240,613	9,240,613	Note 5
9	Delta Energy Systems (Germany) GmbH	Delta Energy Systems Property (Germany) GmbH	Other receivables - related parties	Yes	386,285	386,285	366,131	0.40%	2	-	Additional operating capital	-	None	-	504,311	504,311	Note 5

Table 1一1

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2019(Note 2)	Balance at December 31, 2019	Actual amount drawn down	Interest rate	Nature of loan (Note 7)	Amount of transactions with the borrower	Reason for short- term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
													Item	Value
9	Delta Energy Systems (Germany) GmbH	Eltek s.r.o.	Other receivables - related parties	Yes	50,385 $	- $	- $	0.40%	2	- $	Additional operating capital	- $	None	- $	504,311 $	504,311 $	Note 5

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

• (1) The Company is ‘0’.

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

Note 2: Maximum outstanding balance during the current period was translated into New Taiwan dollars using the exchange rate at December 31, 2019, which the Company reported to the Securities and Futures Bureau.

Note 3: Limit on loans granted by the Company to a single party is 20% of the Company’s net assets based on the latest audited or reviewed financial statements, and limit on total loans is 40% of the Company’s net assets based on the latest audited or reviewed financial statements. Note 4: Limit on loans granted by subsidiaries to a single party is 40% of the subsidiaries’ net assets based on the latest audited or reviewed financial statements, and limit on total loans is 40% of the subsidiaries’ net assets based on the latest audited or reviewed financial statements. Note 5: Limit on loans for financing granted by and to subsidiaries of which the ultimate parent directly or indirectly holds 100% of its voting shares is the lender’s net assets based on the latest audited or reviewed financial statements, and limit on total loans is the lender’s net assets based on the latest audited or reviewed financial statements.

Note 6: The calculation and amount on ceiling of loans of Vivotek Inc. are as follows:

(1) The ceiling on total amount of loans to others shall not exceed 20% of the subsidiary’s net assets value in the lastest financial statement which was audited or reviewed by independent accountant.

(2) For the short-term financing, the limit on loans granted to a single party shall not exceed the subsidiary’s paid-in capital and 10% of the subsidiary’s net assets value in the lastest financial statement which was audited or reviewed by independent accountant. Note 7: Nature of loans:

• (1) Business transaction: 1.

• (2) Short-term financing: 2.

Table 1一2

Delta Electronics, Inc. and Subsidiaries

Provision of endorsements and guarantees to others Year ended December 31, 2019

Table 2

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

Number (Note 1)	Endorser /guarantor	Partybeingendorsed/guaranteed	Partybeingendorsed/guaranteed	Limit on endorsements / guarantees provided for a singleparty	Maximum outstanding endorsement / guarantee amount as at December 31, 2019	Outstanding endorsement / guarantee amount at December 31, 2019	Actual amount drawn down	Amount of endorsements / guarantees secured with collateral	Ratio of accumulated endorsement / guarantee amount to net asset value of the endorser / guarantor company	Ceiling on total amount of endorsements / guarantees provided	Provision of endorsements / guarantees by parent company to subsidiary	Provision of endorsements / guarantees by subsidiary to parent company	Provision of endorsements / guarantees to the party in Mainland China	Footnote
		Companyname	Relationship with the endorser / guarantor (Note 6)
1	ELTEK AS	Eltek Power Sweden AB	2	2,803,138 $	16,050 $	- $	- $	- $	0.00%	7,007,844 $	Y	N	N	Note 3
1	ELTEK AS	ELTEK MEA DMCC	2	2,803,138	69,937	-	-	-	0.00%	7,007,844	Y	N	N	Note 3
1	ELTEK AS	ELTEK AUSTRALIA PTY LIMITED	2	2,803,138	134,910	134,910	134,910	-	0.10%	7,007,844	Y	N	N	Note 3
2	Vivotek Inc.	Vatics Inc.	2	576,705	120,000	-	-	-	4.16%	1,153,410	Y	N	N	Note 5

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

• (1) The Company is ‘0’.

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

Note 2: In accordance with the Company’s“Procedures for Provision of Endorsements and Guarantees,” limit on total endorsements is 40% of the Company’s net assets based on the latest audited or reviewed financial statements, limit on endorsements to a single

company is 20% of the Company’s net assets based on the latest audited or reviewed financial statements. Limit on total endorsements granted by the Company and subsidiaries is 50% of the Company’s net assets based on the latest audited or reviewed financial statements, limit on total endorsements to a single party is 30% of the Company’s net assets based on the latest audited or reviewed financial statements.

Note 3: In accordance with Eltek’s “Procedures for Provision of Endorsements and Guarantees,” limit on total endorsements is 5% of the Company’s net assets based on the latest audited or reviewed financial statements, and limit on endorsements to a single party is 2% of the Company’s net assets based on the latest audited or reviewed financial statements.

Note 4: The Company’s net assets based on the latest audited or reviewed financial statements were $140,156,877 thousand (2019/12/31).

Note 5: The limit on total endorsements/guarantees of Vivotek Inc. shall not exceed 40% of the company’s net assets value in the lastest financial statement which was reviewed or audited by independent accountant, and limit on endorsements to a single party is 20% of Vivotek Inc.’s net assets based on the latest audited or reviewed financial statements.

Note 6: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories:

(1) Having business relationship.

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

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

• (4) The endorser/guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company.

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

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

• (7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

Table 2-1

Delta Electronics, Inc. and Subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2019

Delta Electronics, Inc. and Subsidiaries Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2019	Delta Electronics, Inc. and Subsidiaries Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2019	Delta Electronics, Inc. and Subsidiaries Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2019	Delta Electronics, Inc. and Subsidiaries Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2019	Delta Electronics, Inc. and Subsidiaries Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2019	Delta Electronics, Inc. and Subsidiaries Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2019	Delta Electronics, Inc. and Subsidiaries Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2019	Delta Electronics, Inc. and Subsidiaries Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2019	Delta Electronics, Inc. and Subsidiaries Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2019
Expressed in thousands of New Taiwan dollars, except as otherwise indicated Table 3
Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As at December 31, 2019				Footnote
				Number of shares	Book value	Ownership (%)	Fair value
Delta Electronics, Inc.	United Renewable Energy Co., Ltd. common stock	None	Financial assets at fair value through other comprehensive income	122,980,851	942,033 $	4.89	942,033 $
Delta Electronics, Inc.	Lanner Electronics Inc. common stock	None	Financial assets at fair value through other comprehensive income - non- current	6,763,845	463,323	5.73	463,323
Delta Electronics, Inc.	WK Technology Fund. common stock, etc.	None	Financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income	-	217,631	-	217,631
Delta Electronics Capital Company	Fusheng Precision Co., Ltd. common stock	None	Financial assets at fair value through profit or loss	1,683,000	302,099	1.28	302,099
Delta Electronics Capital Company	Tong Hsing Electronic Industries, Ltd. common stock	None	Financial assets at fair value through profit or loss	2,472,000	386,868	1.49	386,868
Delta Electronics Capital Company	Nien Made Enterprise Co., Ltd. common stock	None	Financial assets at fair value through profit or loss - current	652,043	180,616	0.22	180,616
Delta Electronics Capital Company	Cystalvue Medical Corporation. common stock	None	Financial assets at fair value through profit or loss - current	1,498,000	117,593	6.17	117,593
Delta Electronics Capital Company	TaskEasy, Inc. common stock	None	Financial assets at fair value through profit or loss - non-current	2,633,872	141,008	7.72	141,008
Delta Electronics Capital Company	Allied Supreme Corp. common stock	None	Financial assets at fair value through profit or loss - non-current	1,000,000	115,000	1.45	115,000
Delta Electronics Capital Company	FineTek Co., Ltd. common stock, etc.	None	Financial assets at fair value through profit or loss	-	1,705,515	-	1,705,515
Cyntec Co., Ltd.	SUSUMU Co., Ltd. common stock	None	Financial assets at fair value through other comprehensive income - non- current	200,000	104,081	11.53	104,081
Cyntec Co., Ltd.	GaN Systems Inc. preferred stock, etc.	None	Financial assets at fair value through other comprehensive income	-	161,319	-	161,319
Delta International Holding Limited	Mentis Technology, Inc., etc	None	Financial assets at fair value through profit or loss - non-current	-	89,940	-	89,940
Delta Electronics (Japan), Inc.	Macy Inc. common stock	None	Financial assets at fair value through other comprehensive income - non- current	74,000,000	34,274	19.79	34,274

Table 3-1

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As at December 31, 2019	As at December 31, 2019	As at December 31, 2019	As at December 31, 2019	Footnote
				Number of shares	Book value	Ownership (%)	Fair value
Delta Electronics (Pingtan) Co., Ltd.	Pingtan Hi Tech Investment Development Shares Co., Ltd.	None	Financial assets at fair value through other comprehensive income - non- current	-	32,280 $	15.00	32,280 $
Delta America Ltd.	VPT Inc. common stock	None	Financial assets at fair value through other comprehensive income - non- current	860,000	5,247	17.52	5,247
Unicom System Eng. Corp.	Digi-Hua System Co., Ltd. common stock	None	Financial assets at fair value through profit or loss - non-current	332,556	3,273	3.32	3,273
Delta Electronics (Netherlands) B.V.	ZENTERA SYSTEMS, Inc. preferred stock	None	Financial assets at fair value through other comprehensive income - non- current	1,838,235	149,900	10.46	149,900
Delta Electronics (Netherlands) B.V.	Grace Connection Microeletronics	None	Financial assets at fair value through other comprehensive income - non- current	141,065	119,920	19.90	119,920
Delta Electronics (Netherlands) B.V.	Noda RF Technologies Co., Ltd. common sotck, etc.	None	Financial assets at fair value through other comprehensive income - non- current	-	54,921	-	54,921

Table 3-2

Delta Electronics, Inc. and Subsidiaries

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital Year ended December 31, 2019

Table 4

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

Investor	Marketable securities	General ledger account	Counterparty	Relationship with the investee	Balance as at January1, 2019	Balance as at January1, 2019	Addition	Addition	Disposal	Disposal	Disposal	Disposal	Balance as at December 31, 2019	Balance as at December 31, 2019	Footnote
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Delta Electronics, Inc.	United Renewable Energy Co., Ltd. common stock	Financial assets at fair value through other comprehensive income	Centralized securities exchange market	None	167,145,851	1,308,752 $	-	- $	44,165,000	390,802 $	1,067,657 $	($ 676,855) (Note 4)	122,980,851	942,033 $
Cyntec Co., Ltd.	LUXTERA. INC. preferred stock	Financial assets at fair value through other comprehensive income	Cisco Systems, Inc.	None	55,029,284	673,609	-	-	55,029,284	656,798	336,195	256,482 (Note 4)	-	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Co., Ltd. common stock	Investments accounted for under equity method	Natural person	None	-	-	534,479,306	36,571,874 (Note 6)	-	-	-	-	534,479,306	36,571,874
Delta Electronics Int’l (Singapore) Pte. Ltd.	Loy Tec electronics GmbH common stock	Investments accounted for under equity method	Natural person	None	-	2,156,379	-	302,800 (Note 2) (Note 5)	-	-	-	-	-	2,459,179
ELTEK AS	ELTEK POWER PTE. LTD. common stock	Investments accounted for under equity method	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	2,000,000	1,078,841	-	14,229 (Note 2)	2,000,000	1,292,340	1,093,070	(Note 1)	-	-	(Note 3)
Delta Electronics (Netherlands) B.V.	Amerlux, LLC common stock	Investments accounted for under equity method	The Unicorn Group, Inc.	None	-	-	-	3,027,510 (Note7)	-	-	-	-	-	3,027,510
Delta International Holding Limited	Delta Greentech (China) Co., Ltd. common stock	Investments accounted for under equity method	Drake Investment (HK) Limited	Affiliated enterprise	58,940,390	512,035	-	( 7,142) (Note 2)	58,940,390	825,907	504,893	(Note 1)	-	-
Ace Pillar Holding Co., Ltd.	Delta Greentech (China) Co., Ltd. commom stock	Investments accounted for under equity method	Drake Investment (HK) Limited	Affiliated enterprise	21,646,341	219,339	-	( 2,270) (Note 2)	21,646,341	303,073	217,069	(Note 1)	-	-

Table 4-1

Investor	Marketable securities	General ledger account	Counterparty	Relationship with the investee	Balance as at January1, 2019	Balance as at January1, 2019	Addition	Addition	Disposal	Disposal	Disposal	Disposal	Balance as at December 31, 2019	Balance as at December 31, 2019	Footnote
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Apex Investment (HK) Limited, Galaxy Star Investment (HK) Limited and Jade Investment (HK) Limited	Delta Electronics (Jiangsu) Ltd. share certificate	Investments accounted for under equity method	Delta Electronics (H.K.) Ltd.	Affiliated enterprise	-	1,257,702 $	-	($ 251,145) (Note 2)	-	2,450,404 $	1,006,557 $	(Note 1)	-	- $
Apex Investment (HK) Limited, Galaxy Star Investment (HK) Limited and Jade Investment (HK) Limited	Delta Electronics Components (Wujiang) Ltd. share certificate	Investments accounted for under equity method	Delta Electronics (H.K.) Ltd.	Affiliated enterprise	-	3,353,616	-	( 292,549) (Note 2)	-	7,445,415	3,061,067	(Note 1)	-	-
Apex Investment (HK) Limited, Galaxy Star Investment (HK) Limited and Jade Investment (HK) Limited	Delta Video Display System (Wujiang) Ltd. share certificate	Investments accounted for under equity method	Delta Electronics (H.K.) Ltd.	Affiliated enterprise	-	614,384	-	( 61,458) (Note 2)	-	1,318,844	552,926	(Note 1)	-	-
PreOptix (Hong Kong) Co., Ltd.	PreOptix (Jiang Su) Co., Ltd. share certificate	Investments accounted for under equity method	SMARTWIN ELECTRONICS TECHNOLOGY (HK) LIMITED	None	-	264,796	-	-	-	479,082	270,315	208,767	-	-

Note 1: The transaction resulted from the Group’s adjustment in investment structure. There was no gain or loss on disposal pursuant to related ordinances.

Note 2: It reflected the movement in the adjustments in the profit (loss), dividends and net value of investments recognised in this period.

Note 3: Only sales transactions are disclosed.

Note 4: It was retained earnings transferred from other equity.

Note 5: In April 2019, Delta Electronics Int’l (Singapore) Pte. Ltd. increased its investment in Loy Tec electronics GmbH amounting to $372,338, including investment income (loss) recognised during the period and the movement in the adjustments in the carrying amount.

Note 6: In April 2019, Delta Electronics Int’l (Singapore) Pte. Ltd. increased its investment in Delta Electronics (Thailand) Public Company Limited amounting to $36,874,645, including investment income (loss) recognised during the period and the movement in the adjustments in the carrying amount.

Note 7: In June 2019, Delta Electronics (Netherlands) B.V. increased its investment in Amerlux, LLC amounting to $2,844,498, which was including investment income (loss) recognised during the period and the movement in the adjustments in the carrying amount.

Table 4-2

Delta Electronics, Inc. and Subsidiaries Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more Year ended December 31, 2019

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

Table 5

Real estate acquired by	Real estate acquired	Date of the event	Transaction amount	Status of payment	Counterparty	Relationship with the counterparty	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	Basis or reference used in settingtheprice	Reason for acquisition of real estate and status of the real estate	Other commitments
							Original owner who sold the real estate to the counterparty	Relationship between the original owner and the acquirer	Date of the original transaction	Amount
Delta Electronics, Inc.	Land and buildings in Zhongli and Neili	April 17, 2019	2,561,996 $	Acquired by cash	Kenmec Mechanical Engineering Co., Ltd.	None	-	-	-	- $	Appraisal report	For future business development	None

Table 5-1

Delta Electronics, Inc. and Subsidiaries

Table 6

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more Year ended December 31, 2019 Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction term compared to third party transactions	Differences in transaction term compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable
Delta Electronics Inc.	Delta Greentech (China) Co., Ltd.	Subsidiary	Sales and other operating revenue	147,910 $	0.31	70 days			68,769 $	0.72
Delta Electronics Inc.	Cyntec Co., Ltd.	Subsidiary	Sales and other operating revenue	122,798	0.24	70 days			13,420	0.14
Delta Electronics Inc.	Cyntec Electronics (Suzhou) Co., Ltd.	Subsidiary	Sales and other operating revenue	326,396	0.68	70 days			133,400	1.41
Delta Electronics Inc.	Delta Electronics India Pvt. Ltd.	Subsidiary	Sales and other operating revenue	122,431	0.24	70 days			12,890	0.14	Note 5
Delta Electronics Inc.	Delta Electronics (Japan), Inc.	Subsidiary	Sales and other operating revenue	221,881	0.45	70 days			45,591	0.48
Delta Electronics Inc.	Delta Electronics (Netherlands) B.V.	Subsidiary	Sales and other operating revenue	226,477	0.47	70 days			57,560	0.61
Delta Electronics Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Subsidiary	Sales and other operating revenue	13,226,927	27.45	70 days			1,721,805	18.06
Delta Electronics Inc.	Delta Energy Systems (Singapore) PTE. LTD.	Subsidiary	Sales and other operating revenue	256,919	0.51	70 days			68,885	0.73	Note 5
Delta Electronics Inc.	Delta Electronics (Thailand) Public Company Limited	Subsidiary	Sales and other operating revenue	1,252,916	2.59	70 days			207,670	2.18	Note 5
Delta Electronics Inc.	DEI Logistics (USA) Corp.	Subsidiary	Sales and other operating revenue	7,150,125	14.79	70 days			2,403,743	25.20

Table 6-1

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction term compared to third party transactions	Differences in transaction term compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable
Delta Electronics Inc.	Delta Electronics (Americas) Ltd.	Subsidiary	Sales and other operating revenue	571,906 $	1.20	70 days			108,971 $	1.14
Delta Electronics Inc.	Vivitek Corporation	Subsidiary	Sales and other operating revenue	111,506	0.22	70 days			10,751	0.11
Delta Electronics Inc.	DELTA ELECTRONICS (USA) INC.	Subsidiary	Sales	689,105	1.45	70 days			62,569	0.66
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Australia) Pty. Ltd.	Affiliated enterprise	Sales and other operating revenue	148,112	0.07	70 days			32,499	0.18	Note 5
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK AUSTRALIA PTY LIMITED	Affiliated enterprise	Sales	178,661	0.08	70 days			21,860	0.11
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Greentech (Brasil) S.A.	Affiliated enterprise	Sales	223,823	0.11	70 days			182,237	0.51
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics ( Switzerland ) AG	Affiliated enterprise	Sales	1,259,354	0.53	70 days			378,561	58.58
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	5,954,782	2.75	70 days			1,007,970	5.90
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	11,552,172	5.30	70 days			1,829,242	10.65
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Sales and other operating revenue	16,805,200	7.70	70 days			1,443,569	7.85
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	Sales and other operating revenue	11,603,582	5.34	70 days			1,247,026	7.58
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Video Display System (Wujiang) Ltd.	Affiliated enterprise	Sales and other operating revenue	2,813,726	1.26	70 days			242,711	1.22

Table 6-2

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction term compared to third party transactions	Differences in transaction term compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	Affiliated enterprise	Sales and other operating revenue	10,766,626 $	4.94	70 days			1,312,357 $	7.64
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	6,078,444	2.77	70 days			1,194,038	33.42
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	2,510,641	1.11	70 days			687,149	39.68
Delta Electronics Int’l (Singapore) Pte. Ltd.	Chenzhou Delta Technology Co., Ltd.	Affiliated enterprise	Sales	209,854	0.12	70 days			48,689	2.83
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec Co., Ltd.	Affiliated enterprise	Sales	720,535	0.33	70 days			263,106	4.96
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec International Ltd.	Affiliated enterprise	Sales	2,160,719	0.99	70 days			1,050,790	19.85
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec Electronics (Suzhou) Co., Ltd.	Affiliated enterprise	Sales	245,037	0.07	70 days			95,263	1.75
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Solutions (Spain) SL	Affiliated enterprise	Sales	172,250	0.04	70 days			86,300	17.17
Delta Electronics Int’l (Singapore) Pte. Ltd.	Digital Projection Ltd.	Associate	Sales and other operating revenue	408,251	0.18	70 days			83,269	0.45
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	Sales and other operating revenue	1,484,615	0.69	70 days			362,480	0.97
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Japan), Inc.	Affiliated enterprise	Sales and other operating revenue	2,948,357	1.35	70 days			586,949	1.46
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Korea), Inc.	Affiliated enterprise	Sales and other operating revenue	245,886	0.11	70 days			65,280	0.17

Table 6-3

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction term compared to third party transactions	Differences in transaction term compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics International Mexico S.A. DE C.V.	Affiliated enterprise	Sales	132,610 $	0.05	70 days			70,368 $	0.38
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Sales and other operating revenue	2,767,840	1.23	70 days			623,019	13.32
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK AS	Affiliated enterprise	Sales	1,280,882	0.59	70 days			181,890	1.03
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK POWER PTE. LTD.	Affiliated enterprise	Sales	150,010	0.06	70 days			37	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Slovakia) s.r.o.	Affiliated enterprise	Sales and other operating revenue	457,211	0.20	70 days			70,393	0.19	Note 5
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Sales and other operating revenue	682,877	0.31	70 days			194,886	0.55	Note 5
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Green Industrial (Thailand) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	175,397	0.05	70 days			22,866	0.06	Note 5
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Inc.	Ultimate parent company	Sales and other operating revenue	16,664,508	7.66	70 days			7,284,145	17.83
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Networks, Inc. (Taiwan)	Affiliated enterprise	Sales	553,977	0.26	70 days			-	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Sales	24,064,206	11.06	70 days			6,383,361	15.72
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Americas) Ltd.	Affiliated enterprise	Sales	2,732,567	1.26	70 days			687,908	21.13
Delta Electronics Int’l (Singapore) Pte. Ltd.	Vivitek Corporation	Affiliated enterprise	Sales and other operating revenue	253,690	0.13	70 days			41,169	0.12

Table 6-4

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction term compared to third party transactions	Differences in transaction term compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable
Delta Electronics Int’l (Singapore) Pte. Ltd.	Digital Projection Inc.	Associate	Sales and other operating revenue	437,550 $	0.20	70 days			134,471 $	0.72
Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	Sales and other operating revenue	2,599,471	1.18	70 days			437,074	1.23
Delta Networks, Inc. (Taiwan)	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	314,341	17.76	70 days			-	-
Delta Networks, Inc. (Taiwan)	Delta Electronics Inc.	Ultimate parent company	Sales and other operating revenue	285,829	16.15	70 days			-	-
Delta Networks, Inc. (Taiwan)	DEI Logistics (USA) Corp.	Affiliated enterprise	Sales	1,032,121	58.32	70 days			-	-
Delta Networks (Dongguan) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	14,654,249	98.06	70 days			2,068,258	92.12
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	850,625	8.05	70 days			303,473	12.87
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	8,241,746	77.71	70 days			1,583,437	67.15
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	102,334	0.47	70 days			18,099	0.53
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	1,839,580	9.10	70 days			572,370	16.77
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	17,812,635	88.26	70 days			2,682,974	78.62
Delta Electronics (Jiangsu) Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	Sales	232,333	0.54	70 days			63,711	1.25

Table 6-5

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction term compared to third party transactions	Differences in transaction term compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	6,179,388 $	14.14	70 days			1,723,371 $	33.68
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	Sales	514,930	1.19	70 days			120,953	2.37
Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	36,619,932	83.65	70 days			3,185,866	62.26
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Sales and other operating revenue	157,896	0.57	70 days			71,749	1.44
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	11,389,974	41.44	70 days			3,051,738	61.43
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	15,602,874	56.96	70 days			1,766,011	35.55
Delta Video Display System (Wujiang) Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Sales and other operating revenue	137,025	2.57	70 days			28,900	3.49
Delta Video Display System (Wujiang) Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	Sales and other operating revenue	242,882	4.57	70 days			5,442	0.66
Delta Video Display System (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	1,796,481	34.29	70 days			568,651	68.66
Delta Video Display System (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	3,044,774	57.74	70 days			223,091	26.93
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	214,181	2.24	70 days			53,539	2.72
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	9,336,504	97.46	70 days			1,913,633	97.26

Table 6-6

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction term compared to third party transactions	Differences in transaction term compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	548,833 $	12.64	70 days			163,519 $	17.55
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	3,788,305	87.03	70 days			768,153	82.44
Chenzhou Delta Technology Co., Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	Sales	1,646,489	70.10	70 days			362,016	67.69
Chenzhou Delta Technology Co., Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	Sales	229,577	9.79	70 days			77,565	14.50
Chenzhou Delta Technology Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	440,193	18.77	70 days			93,948	17.56
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Sales and other operating revenue	115,731	0.40	70 days			48,602	0.51
Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	13,918,526	48.87	70 days			4,020,275	42.00
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Pingtan) Co., Ltd.	Affiliated enterprise	Sales	1,655,401	5.80	70 days			557,637	2.91
Delta Electronics (Shanghai) Co., Ltd.	Eltek Energy Technology(Dongguan) Ltd.	Affiliated enterprise	Sales	121,971	0.41	70 days			38,956	0.41
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	863,675	3.04	70 days			299,002	3.12
Cyntec Co., Ltd.	Cyntec International Ltd.	Affiliated enterprise	Sales and other operating revenue	527,576	10.16	Note 1	Note 1	Note 1	11,956	1.24
Cyntec Co., Ltd.	Delta Electronics Inc.	Ultimate parent company	Sales and other operating revenue	1,269,971	24.50	Note 2	Note 2	Note 2	432,289	44.83

Table 6-7

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction term compared to third party transactions	Differences in transaction term compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable
Cyntec Co., Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Sales	214,204 $	4.17	Note 2	Note 2	Note 2	27,789 $	2.88
Cyntec Electronics (Suzhou) Co., Ltd.	Cyntec International Ltd.	Affiliated enterprise	Sales	2,140,364	16.88	Note 3	Note 3	Note 3	5,580	0.18
Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	10,263,850	83.01	Note 4	Note 4	Note 4	3,147,932	99.85
Cyntec International Ltd.	Cyntec Co., Ltd.	Affiliated enterprise	Sales	519,847	10.03	Note 1	Note 1	Note 1	26	-
ELTEK AS	ELTEK MEA DMCC	Affiliated enterprise	Sales and other operating revenue	294,101	4.35	70 days			70,509	4.34
ELTEK AS	Eltek Sistemas de Energia Industria e Commercio S.A.	Affiliated enterprise	Sales and other operating revenue	136,498	2.02	70 days			23,918	1.48
ELTEK AS	Eltek Deutschland GmbH	Affiliated enterprise	Sales and other operating revenue	325,085	4.88	70 days			87,292	5.38
ELTEK AS	Eltek Egypt for Power Supply S.A.E.	Affiliated enterprise	Sales and other operating revenue	264,675	3.95	70 days			193,938	11.94
ELTEK AS	ELTEK POWER FRANCE SAS	Affiliated enterprise	Sales and other operating revenue	713,458	10.67	70 days			191,821	11.81
ELTEK AS	Eltek Power (UK) Ltd.	Affiliated enterprise	Sales and other operating revenue	781,307	11.76	70 days			147,327	9.07
ELTEK AS	Eltek SGS Pvt Ltd.	Affiliated enterprise	Sales	129,889	1.94	70 days			50,201	3.09
ELTEK AS	OOO Eltek	Affiliated enterprise	Sales and other operating revenue	203,795	3.06	70 days			5,472	0.33

Table 6-8

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction term compared to third party transactions	Differences in transaction term compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable
ELTEK AS	Eltek Power Sweden AB	Affiliated enterprise	Sales and other operating revenue	104,264 $	1.54	70 days			4,755 $	0.29
ELTEK AS	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	132,272	2.04	70 days			16,203	1.00
ELTEK AS	Eltek s.r.o.	Affiliated enterprise	Sales and other operating revenue	485,704	7.27	70 days			84,389	5.20	Note 5
ELTEK AS	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	Sales and other operating revenue	1,196,560	17.98	70 days			342,774	21.11
Delta Electronics (Netherlands) B.V.	Delta Electronics (Italy) S.r.l.	Affiliated enterprise	Sales and other operating revenue	174,082	2.84	70 days			29,436	2.71
Delta Electronics (Netherlands) B.V.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	593,391	9.76	70 days			87,575	8.07
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Affiliated enterprise	Sales and other operating revenue	415,034	6.89	70 days			238,247	21.94
Delta Electronics (Japan), Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	933,639	17.11	70 days			170,126	17.33
Delta Electronics (Japan), Inc.	Delta Electronics Inc.	Ultimate parent company	Sales and other operating revenue	231,255	4.25	70 days			36,397	3.71
Delta Electronics (Americas) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	1,409,217	18.56	70 days			10,052	1.05
Delta Electronics (Americas) Ltd.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Sales and other operating revenue	454,504	6.02	70 days			67,342	7.04
Delta Electronics (Americas) Ltd.	Delta Electronics Inc.	Ultimate parent company	Sales and other operating revenue	138,250	1.86	70 days			19,169	2.00

Table 6-9

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction term compared to third party transactions	Differences in transaction term compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable
Vivotek Inc.	Vivotek USA, Inc.	Affiliated enterprise	Sales	525,772 $	8.77	90 days			152,659 $	20.21
Vivotek Inc.	Vatics Inc.	Affiliated enterprise	Purchase	117,769	2.93	30 days			17,395) (	2.57
Delta Energy Systems (Germany) GmbH	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Sales and other operating revenue	2,117,776	89.67	70 days			14,540	17.16
Delta Electronics India Pvt. Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	199,511	4.11	70 days			77,945	2.89
Delta Electronics (Myanmar) Co., Ltd.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Sales and other operating revenue	104,263	100.01	70 days			7,865	100.00
Delta Electronics (Slovakia) s.r.o.	Delta Greentech (Netherlands) B.V.	Affiliated enterprise	Sales and other operating revenue	390,839	12.09	70 days			17,634	1.83
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Sales and other operating revenue	541,177	17.11	70 days			144,954	15.05
Delta Electronics (Slovakia) s.r.o.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	1,464,384	46.32	70 days			434,996	22.58
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Sales and other operating revenue	614,666	19.81	70 days			352,467	36.60
Eltek s.r.o.	ELTEK AS	Affiliated enterprise	Sales and other operating revenue	1,954,077	98.79	70 days			104,395	80.58
Delta Electronics (Thailand) Public Company Limited	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	135,728	0.34	70 days			6,599	0.07
Delta Electronics (Thailand) Public Company Limited	Delta Energy Systems (Germany) GmbH	Affiliated enterprise	Sales	109,164	0.25	70 days			2,176	0.02

Table 6-10

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction term compared to third party transactions	Differences in transaction term compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable
Delta Electronics (Thailand) Public Company Limited	Delta Power Solutions (India) Pvt. Ltd.	Affiliated enterprise	Sales	111,360 $	0.28	70 days			- $	-
Delta Electronics (Thailand) Public Company Limited	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	Sales and other operating revenue	438,732	1.11	70 days			122,210	1.33
Delta Electronics (Thailand) Public Company Limited	Delta Electronics (Japan), Inc.	Affiliated enterprise	Sales	240,717	0.61	70 days			60,483	0.66
Delta Electronics (Thailand) Public Company Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	367,752	0.94	70 days			52,527	0.57
Delta Electronics (Thailand) Public Company Limited	Delta Electronics (Slovakia) s.r.o.	Affiliated enterprise	Sales and other operating revenue	229,529	0.54	70 days			25,013	0.27
Delta Electronics (Thailand) Public Company Limited	Delta Electronics Inc.	Ultimate parent company	Sales	110,979	0.29	70 days			31,674	0.34
Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	Sales and other operating revenue	14,639,861	36.82	70 days			4,725,070	51.26
Delta Electronics (Thailand) Public Company Limited	Delta Electronics (Americas) Ltd.	Affiliated enterprise	Sales	714,683	1.79	70 days			184,399	2.00
Delta Electronics (Thailand) Public Company Limited	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	Sales	177,251	0.42	70 days			89,169	0.97

Note 1: Selling price was the same with the third parties. The credit term to related parties is 60~90 days after monthly billings, while 30~120 days after monthly billings for the third parties. Note 2: Sales price was available to third party, the collection term for related parties is 75 days from next month, the credit terms to the third parties is 30~120 days after monthly billings.

Note 3: For the sales transactions, the amount is calculated by adding costs, fees and all necessary processing costs. The credit term to related parties is 60~90 days after monthly billings, while 30~120 days after monthly billings for the third parties. Note 4: Sales revenue is cost plus necessary profit, the collection term for related parties is 75 days from next month.

Note 5: It initially was the Group’s associate, and became the Group’s subsidiary since April 2019.

Table 6-11

Delta Electronics, Inc. and Subsidiaries Receivables from related parties reaching $100 million or 20% of paid-in capital or more December 31, 2019

Table 7

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

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2019 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)	Allowance for doubtful accounts
					Amount	Action taken
Delta Electronics, Inc.	Cyntec Electronics (Suzhou) Co., Ltd.	Subsidiary	133,400 $	3.25	1,009 $		33,681 $	- $
Delta Electronics, Inc.	Delta Electronics Int'l (Singapore) Pte. Ltd.	Subsidiary	2,050,668	8.44	40,430		2,050,668	-
Delta Electronics, Inc.	Delta Electronics (Thailand) Public Company Limited	Subsidiary	207,670	14.55	52,583		182,443	-
Delta Electronics, Inc.	DEI Logistics (USA) Corp.	Subsidiary	2,403,743	5.07	6,583		1,554,150	-
Delta Electronics, Inc.	Delta Electronics (Americas) Ltd.	Subsidiary	108,971	7.14	-		108,971	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Greentech (Brasil) S.A.	Affiliated enterprise	182,237	2.38	76,965		56,979	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics ( Switzerland ) AG	Affiliated enterprise	378,561	5.08	-		307,867	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	1,007,970	12.38	37,881		929,380	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	1,829,242	13.36	463,158		1,829,242	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	1,443,569	22.35	-		1,443,569	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	1,247,026	16.24	-		1,247,026	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Video Display System (Wujiang) Ltd.	Affiliated enterprise	242,711	17.61	-		242,711	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	Affiliated enterprise	1,312,357	25.61	15		1,312,357	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	1,194,038	8.47	-		1,194,038	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	687,149	10.47	302,430		428,714	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec Co., Ltd.	Affiliated enterprise	263,106	5.31	-		177,346	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec International Ltd.	Affiliated enterprise	1,050,790	3.99	-		637,883	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	362,480	7.95	20,521		239,992	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Japan), Inc.	Affiliated enterprise	586,949	9.54	-		405,332	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK POWER (MALAYSIA) SDN. BHD.	Affiliated enterprise	121,700	0.40	112,793		2,206	-

Table 7-1

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2019 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)	Allowance for doubtful accounts
					Amount	Action taken
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	623,019 $	8.64	- $		623,019 $	- $
Delta Electronics Int'l (Singapore) Pte. Ltd.	ELTEK AS	Affiliated enterprise	181,890	13.63	-		103,198	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	194,886	6.81	7,474		114,826	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics, Inc.	Ultimate parent company	7,432,332	2.95	-		2,056,319	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	6,383,361	7.30	573,449		3,936,460	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Americas) Ltd.	Affiliated enterprise	687,908	7.71	2,896		428,175	-
Delta Electronics Int'l (Singapore) Pte. Ltd.	Digital Projection Inc.	Associate	134,471	6.29	70,220		70,220	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	437,074	10.28	216,636		136,311	-
Delta Networks (Dongguan) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	2,068,258	13.74	-		1,753,830	-
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	163,519	6.48	-		105,708	-
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	768,153	9.52	-		704,529	-
Chenzhou Delta Technology Co., Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	362,016	8.75	-		314,058	-
Cyntec Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	113,063	14.61	-		133,063	-
Cyntec Co., Ltd.	Delta Electronics Inc.	Ultimate parent company	432,289	3.49	-		294,345	-
Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	3,147,932	4.63	20,286		2,850,236	-
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	303,473	5.43	-		177,460	-
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	1,583,437	10.09	-		1,558,959	-
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	572,370	6.22	-		368,891	-
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	2,682,974	12.88	-		2,682,974	-
Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	4,020,275	6.66	-		2,499,779	-
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Pingtan) Co., Ltd.	Affiliated enterprise	557,637	5.73	-		332,362	-
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	299,002	5.59	-		130,367	-
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	1,913,633	9.41	31		1,772,897	-

Table 7-2

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2019 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)	Allowance for doubtful accounts
					Amount	Action taken
ELTEK AS	Eltek Egypt for Power Supply S.A.E.	Affiliated enterprise	193,938 $	2.56	154,804 $		75,717 $	- $
ELTEK AS	ELTEK POWER FRANCE SAS	Affiliated enterprise	191,821	6.92	-		154,872	-
ELTEK AS	Eltek Power (UK) Ltd.	Affiliated enterprise	147,327	10.23	277		147,327	-
ELTEK AS	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	342,774	6.72	70		51,259	-
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	1,723,371	6.90	-		1,060,982	-
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	120,953	8.22	-		73,477	-
Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	3,185,866	22.12	-		3,185,866	-
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	3,051,738	7.17	-		1,945,745	-
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	1,766,011	17.02	-		1,766,011	-
Delta Video Display System (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	568,651	6.10	-		373,195	-
Delta Video Display System (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	223,091	26.17	-		223,091	-
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Affiliated enterprise	238,247	1.95	40,716		60,292	-
Delta Electronics (Thailand) Public Company Limited	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	122,210	6.57	24,980		103,539	-
Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	4,725,070	3.24	1,095,477		3,069,585	-
Delta Electronics (Thailand) Public Company Limited	Delta Electronics (Americas) Ltd.	Affiliated enterprise	184,399	7.21	-		99,637	-
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	144,954	5.65	-		84,542	-
Delta Electronics (Slovakia) s.r.o.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	434,996	4.93	-		316,715	-
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	352,467	3.06	-		260,023	-
Eltek s.r.o.	ELTEK AS	Affiliated enterprise	104,395	26.15	989		104,395	-
Delta Electronics (Japan), Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	170,126	4.81	-		6,695	-
Vivotek Inc.	Vivotek USA, Inc.	Affiliated enterprise	152,659	3.60	-		-	-
Delta Energy Systems (Germany) GmbH	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	247,324	-	46		-	-
Delta International Holding Limited	Delta Electronics (H.K.) Ltd.	Affiliated enterprise	14,874,153	-	-		-	-

Table 7-3

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2019 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)	Allowance for doubtful accounts
					Amount	Action taken
Fairview Assets Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	10,193,200 $	-	- $		- $	- $
Fairview Assets Ltd.	Delta Controls Inc.	Affiliated enterprise	2,008,660	-	-		-	-
Fairview Assets Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	8,139,570	-	-		-	-
Delta Networks Holding Limited	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	2,401,405	-	-		-	-
Delta Networks Holding Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	870,024	-	-		-	-
Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	8,014,451	-	-		-	-
Delta International Holding Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	14,769,307	-	-		-	-
Delta International Holding Limited	Drake Investment (HK) Limited	Affiliated enterprise	990,604	-	-		-	-
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	1,102,648	-	-		-	-
Vivotek Inc.	Vatics Inc.	Affiliated enterprise	163,565	-	-		-	-
Delta Energy Systems (Germany) GmbH	Delta Energy Systems Property (Germany) GmbH	Affiliated enterprise	366,131	-	-		-	-

Note 1: Including other receivables in excess of $100,000.

Note 2: The amount represents collections subsequent to December 31, 2019 up to March 10, 2020.

Table 7-4

Table 8

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

Delta Electronics, Inc. and Subsidiaries Significant inter-company transactions during the reporting period Year ended December 31, 2019

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount(Note 7)	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	Delta Electronics, Inc.	Delta Electronics Int'l (Singapore) Pte. Ltd.	Subsidiary	Sales and other operating revenue	13,226,927 $	(Note 4)	4.93
0	Delta Electronics, Inc.	DEI Logistics (USA) Corp.	Subsidiary	Sales and other operating revenue	7,150,125	(Note 4)	2.67
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	5,954,782	(Note 4)	2.22
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	11,552,172	(Note 4)	4.31
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Sales and other operating revenue	16,805,200	(Note 4)	6.27
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	Sales and other operating revenue	11,603,582	(Note 4)	4.33
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Video Display System (Wujiang) Ltd.	Affiliated enterprise	Sales and other operating revenue	2,813,726	(Note 4)	1.05
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	Affiliated enterprise	Sales and other operating revenue	10,766,626	(Note 4)	4.02
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	6,078,444	(Note 4)	2.27
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Japan), Inc.	Affiliated enterprise	Sales and other operating revenue	2,948,357	(Note 4)	1.10
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Sales and other operating revenue	2,767,840	(Note 4)	1.03
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics Inc.	Ultimate parent company	Sales and other operating revenue	16,664,508	(Note 4)	6.22
1	Delta Electronics Int'l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Sales	24,064,206	(Note 4)	8.97
1	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Americas) Ltd.	Affiliated enterprise	Sales	2,732,567	(Note 4)	1.02
2	Delta Networks (Dongguan) Ltd.	Delta Electronics Int'l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	14,654,249	(Note 4)	5.47

Table 8-1

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount(Note 7)	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
3	Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	8,241,746 $	(Note 4)	3.07
4	Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	17,812,635	(Note 4)	6.64
5	Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	6,179,388	(Note 4)	2.30
5	Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	36,619,932	(Note 4)	13.66
6	Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Sales	11,389,974	(Note 4)	4.25
6	Delta Electronics Components (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	15,602,874	(Note 4)	5.82
7	Delta Video Display System (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales and other operating revenue	3,044,774	(Note 4)	1.14
8	Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	9,336,504	(Note 4)	3.48
9	Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	3,788,305	(Note 4)	1.41
10	Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	Sales and other operating revenue	13,918,526	(Note 4)	5.19
11	Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Sales	10,263,850	(Note 6)	3.83
12	Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	Sales and other operating revenue	14,639,861	(Note 4)	5.46
1	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Inc.	Ultimate parent company	Accounts receivable and other receivables	7,432,332	(Note 4)	2.39
1	Delta Electronics Int’l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Accounts receivable	6,383,361	(Note 4)	2.05
11	Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Accounts receivable	3,147,932	(Note 4)	1.01
10	Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	Accounts receivable	4,020,275	(Note 4)	1.29
5	Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Accounts receivable	3,185,866	(Note 4)	1.02

Table 8-2

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount(Note 7)	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
12	Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	Accounts receivable	4,725,070 $	(Note 4)	1.52
13	Delta International Holding Limited	Delta Electronics (H.K.) Ltd.	Affiliated enterprise	Other receivables	14,874,153	(Note 5)	4.78
14	Fairview Assets Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Other receivables	10,193,200	(Note 5)	3.28
14	Fairview Assets Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Other receivables	8,139,570	(Note 5)	2.62
13	Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Other receivables	8,014,451	(Note 5)	2.58
13	Delta International Holding Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Other receivables	14,769,307	(Note 5)	4.75

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

• (1) Parent company is ‘0’.

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

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

• (1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: There is no similar transaction to compare with. It will follow the agreed price and transaction terms and all the credit terms are 70 days.

Note 5: Lending of capital

Note 6: Sales revenue is cost plus necessary profit, the collection term for related parties is 75 days from next month.

Note 7: The disclosure requirement for the above disclosed amounts is 1% of the consolidated total assets for balance sheet accounts and 1% of the consolidated total revenue for income statement accounts.

Table 8-3

Delta Electronics, Inc. and Subsidiaries

Table 9

Information on investees

Year ended December 31, 2019

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

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2019	Shares held as at December 31,2019	Shares held as at December 31,2019	Net profit (loss) of the investee for the year ended December 31, 2019	Investment income (loss) recognised by the Company for the year ended December 31, 2019	Footnote
				Balance as at December 31, 2019	Balance as at December 31, 2018	Number of shares	Ownership (%)	Book value
Delta Electronics, Inc.	Delta International Holding Limited	Cayman Islands	Equity investments	8,922,118 $	8,922,118 $	67,680,000	100.00	71,598,502 $	8,372,730 $	8,900,336 $	(Note 6)
Delta Electronics, Inc.	Delta Networks Holding Limited	Cayman Islands	Equity investments	29,581	29,581	83,800,000	100.00	5,547,216	247,367	180,995	(Note 6)
Delta Electronics, Inc.	PreOptix (Hong Kong) Co., Ltd.	Hong Kong	Equity investments	162,376	162,376	5,250,000	39.62	243,787	199,548	79,061
Delta Electronics, Inc.	Cyntec Co., Ltd.	Taiwan	Research, development, manufacturing and sales of film optic-electronic devices	12,067,931	12,067,931	2,341,204,333	100.00	33,929,506	1,140,122	910,629	(Note 6)
Delta Electronics, Inc.	Delta Electronics Capital Company	Taiwan	Equity investments	3,253,241	3,253,241	350,000,000	100.00	3,835,853	308,435	308,435
Delta Electronics, Inc.	Delta Electronics Int'l (Singapore) Pte. Ltd.	Singapore	Sales of electronic products	34,498	7,270	1,500,000	100.00	24,194,633	9,621,278	9,347,995	(Note 6)
Delta Electronics, Inc.	DelBio Inc.	Taiwan	Manufacturing, wholesale and retail of medical equipment	900,000	900,000	21,761,836	100.00	218,817	18,955	18,061	(Note 6)
Delta Electronics, Inc.	Allied Material Technology Corp.	Taiwan	Lease services, etc.	2,113,978	2,113,978	211,400,909	99.97	1,769,895	99,951) (	99,921) (
Delta Electronics, Inc.	UNICOM SYSTEM ENG. CORP.	Taiwan	Design and sales of computer, peripheral and information system (software and hardware)	341,695	341,695	570,000	100.00	453,222	21,383	19,350	(Note 6)
Delta Electronics, Inc.	NeoEnergy Microelectronics, Inc.	Taiwan	Designing and experimenting on integrated circuits and information software services	-	462,442	-	-	-	702	689	(Note 16)
Delta Electronics, Inc.	Delta Electronics (Thailand) Public Company Limited	Thailand	Manufacturing and exporting power supplies,other electronic parts and components	4,780,487	114,615	69,128,140	5.54	4,588,711	2,912,485	56,013	(Notes 6 and 13)
Delta Electronics, Inc.	Delta Electronics (Netherlands) B.V.	Netherlands	Sales of power products, display solution products, electronic components, industrial automation products and materials	4,529,355	4,247,073	128,492,272	100.00	10,740,522	2,289,934	925,303	(Note 6)

Table 9-1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2019	Shares held as at December 31,2019	Shares held as at December 31,2019	Net profit (loss) of the investee for the year ended December 31, 2019	Investment income (loss) recognised by the Company for the year ended December 31, 2019	Footnote
				Balance as at December 31, 2019	Balance as at December 31, 2018	Number of shares	Ownership (%)	Book value
Delta Electronics, Inc.	Delta Networks, Inc. (Taiwan)	Taiwan	Research, development, design, manufacturing and sales of networking system and peripherals	- $	2,490,390 $	-	-	- $	32,827 $	44,610 $	(Notes 6 and 14)
Delta Electronics, Inc.	Delta America Ltd.	U.S.A.	Equity investments	103,065	103,065	2,100,000	10.26	246,704	276,273	20,056	(Notes 6 and 9)
Delta Electronics, Inc.	Vivotek Inc.	Taiwan	Manufacturing and sales of video compression software and encoding, network video server, webcam and its related components	4,039,937	4,039,937	43,404,058	49.87	3,908,920	274,905	43,928	(Note 6)
Delta International Holding Limited	Delta Electronics (H.K.) Ltd.	Hong Kong	Equity investments, operations management and engineering services	-	9,845,345	-	-	-	4,676,058	3,271,265	(Notes 1and 17)
Delta International Holding Limited	DAC Holding (Cayman) Limited	Cayman Islands	Equity investments	-	483,885	-	-	-	109,484) (	109,484) (	(Notes 1and 18)
Delta International Holding Limited	Delta Electronics (Japan), Inc.	Japan	Sales of power products, display solution products, electronic components, industrial automation products and materials	85,712	85,712	5,600	100.00	578,816	78,893	78,893	(Note 1)
Delta International Holding Limited	Digital Projection International Ltd.	Britain	Equity investments	342,982	342,982	19,249,667	41.00	240,059	26,332	12,973) (	(Note 1)
Delta International Holding Limited	PreOptix (Hong Kong) Co., Ltd.	Hong Kong	Equity investments	239,840	239,840	8,000,000	60.38	354,973	199,548	120,487	(Note 1)
Delta International Holding Limited	DEI Logistics (USA) Corp.	U.S.A.	Warehousing and logistics services	86,072	14,990	1,000,000	100.00	229,496	6,860	5,219	(Note 1)
Delta International Holding Limited	Ace Pillar Holding Co., Ltd.	Samoa	Equity investments	-	409,391	-	-	-	6,563) (	13,127) (	(Notes 1and 16)
Delta International Holding Limited	Drake Investment (HK) Limited	Hong Kong	Equity investments	-	5,160,048	-	-	-	382,289	191,545	(Notes 1and 17)
Delta International Holding Limited	Vivitek Corporation	U.S.A.	Sales of projector products and their materials	44,970	44,970	9,000,000	100.00	113,956	16,320	16,320	(Note 1)
Delta International Holding Limited	Delta Greentech SGP Pte. Ltd.	Singapore	Equity investments	-	837,361	-	-	-	56,507	18,030	(Notes 1and 17)
Delta International Holding Limited	Delta Electronics Europe Limited	Britain	Repair centre and providing support services	109,727	109,727	500,000	100.00	58,060	4,429	4,429	(Note 1)
Delta International Holding Limited	Boom Treasure Limited	Hong Kong	Equity investments	-	2,614,486	-	-	-	172,212	45,831	(Notes 1and 17)
Delta International Holding Limited	Apex Investment (HK) Limited	Hong Kong	Equity investments	-	3,787,800	-	-	-	268,214	130,956	(Notes 1and 19)

Table 9-2

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2019	Shares held as at December 31,2019	Shares held as at December 31,2019	Net profit (loss) of the investee for the year ended December 31, 2019	Investment income (loss) recognised by the Company for the year ended December 31, 2019	Footnote
				Balance as at December 31, 2019	Balance as at December 31, 2018	Number of shares	Ownership (%)	Book value
Delta International Holding Limited	Galaxy Star Investment (HK) Limited	Hong Kong	Equity investments	- $	3,787,800 $	-	-	- $	268,214 $	130,956 $	(Notes 1and 19)
Delta International Holding Limited	Jade Investment (HK) Limited	Hong Kong	Equity investments	-	3,787,800	-	-	-	268,214	130,956	(Notes 1and 19)
Delta International Holding Limited	Delta Electronics (Thailand) Public Company Limited	Thailand	Manufacturing and exporting power supplies, other electronic parts and components	12,914,701	4,291,709	191,984,450	15.39	12,748,652	2,912,485	104,475	(Note 13)
Delta International Holding Limited	ELTEK AS	Norway	Research, development and sales of power supplies and others	14,905,081	-	93,531,101	100.00	12,748,652	1,185,420	76,666	(Note 17)
Delta International Holding Limited	DELTA ELECTRONICS HOLDING (USA) INC.	U.S.A.	Equity investments	2,047,331	-	1,060,624	100.00	1,973,672	226,967	10,001) (	(Note 17)
Delta International Holding Limited	Delta Controls Inc.	Canada	Provide resolution of building management and control	2,248,500	-	75,000,000	100.00	2,660,140	107,725	3,225	(Note 17)
Delta International Holding Limited	Delta Electronics (Switzerland) AG	Switzerland	Equity investments, research, development and sales of electronic products	230,375	-	5,100	51.00	357,066	89,899	5,492) (	(Note 17)
Delta Electronics (H.K.) Ltd.	Delta Electronics International Mexico S.A. DE C.V.	Mexico	Sales of power management system of industrial automation product and telecommunications equipment	181,379	181,379	252,002	100.00	140,715	8,120) (	8,120) (	(Note 2)
Delta Electronics (Netherlands) B.V.	ELTEK AS	Norway	Research, development and sales of power supplies and others	-	14,905,081	-	-	-	1,185,420	323,381	(Note 17)
Delta Electronics (Netherlands) B.V.	DELTA ELECTRONICS HOLDING (USA) INC.	U.S.A.	Equity investments	-	2,047,331	-	-	-	226,967	234,615	(Note 17)
Delta Electronics (Netherlands) B.V.	Delta America Ltd.	U.S.A.	Equity investments	689,045	689,045	8,179,182	39.95	990,401	276,273	109,466	(Notes 8 and 9)
Delta Electronics (Netherlands) B.V.	Optovue, Inc.	U.S.A.	Research, development, design, manufacturing and sales of medical equipment	1,109,260	1,109,260	5,190,330	29.50	842,043	331,448) (	97,786) (
Delta Electronics (Netherlands) B.V.	Delta Controls Inc.	Canada	Provide resolution of building management and control	-	2,248,500	-	-	-	107,725	104,470	(Note 17)
Delta Electronics (Netherlands) B.V.	Energy Dragon Global Limited	British Virgin Islands	Equity investments	169,527	169,527	10,001	100.00	219,815	24,284	24,284	(Notes 8 and 9)
Delta Electronics (Netherlands) B.V.	Castle Horizon Limited	Republic of Seychelles	Equity investments	790,742	790,742	471,800	100.00	1,025,336	113,304	113,304	(Notes 8 and 9)

Table 9-3

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2019	Shares held as at December 31,2019	Shares held as at December 31,2019	Net profit (loss) of the investee for the year ended December 31, 2019	Investment income (loss) recognised by the Company for the year ended December 31, 2019	Footnote
				Balance as at December 31, 2019	Balance as at December 31, 2018	Number of shares	Ownership (%)	Book value
Delta Electronics (Netherlands) B.V.	Delta Electronics (Switzerland) AG	Switzerland	Equity investments, research, development and sales of electronic products	- $	230,375 $	-	-	- $	89,899 $	48,091 $	(Note 17)
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Turkey	Marketing and sales of electronic products	115,723	115,723	479,750	51.00	47,389	39,167) (	24,393) (	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta Greentech (Brasil) S.A.	Brazil	Manufacturing and sales of electronic products	213,158	213,158	4,315,657	100.00	161,644	58,758	58,758	(Note 8)
Delta Electronics (Netherlands) B.V.	DELTA ELECTRONICS BRASIL LTDA.	Brazil	Manufacturing and sales of electronic products	332,295	332,295	37,000,000	100.00	252,004	3,383	3,383	(Note 8)
Delta Electronics (Netherlands) B.V.	Amerlux, LLC	U.S.A	Design and producing of dedicated lighting system and facilities	2,955,825	-	-	100.00	3,027,510	125,416	74,700	(Note 8)
Delta Electronics (Netherlands) B.V.	Drake Investment (HK) Limited	Hong Kong	Equity investments	5,160,048	-	304,504,306	100.00	4,492,813	382,289	18,694	(Note 17)
Delta Electronics (Netherlands) B.V.	Boom Treasure Limited	Hong Kong	Equity investments	2,614,486	-	1	100.00	1,965,502	172,212	1,883	(Note 17)
Delta Electronics (Netherlands) B.V.	Delta Electronics (H.K.) Ltd.	Hong Kong	Equity investments, operations management and engineering services	9,845,345	-	2,549,297,600	100.00	17,387,743	4,676,058	1,269,648	(Note 17)
Delta Electronics (Netherlands) B.V.	Delta Greentech SGP Pte. Ltd.	Singapore	Equity investments	837,361	-	12,175,470	100.00	645,313	56,507	677	(Note 17)
Delta America Ltd.	Delta Electronics (Americas) Ltd.	U.S.A.	Sales of electronic components	216,809	216,809	250,000	100.00	1,187,993	162,720	162,720
Delta America Ltd.	Delta Solar Solutions LLC	U.S.A.	Equity investments	66,855	66,855	-	100.00	59,144	1,677) (	1,677) (
Delta Electronics Int'l (Singapore) Pte. Ltd.	Loy Tec electronics GmbH	Austria	Consulting service of building management and control solutions	2,433,160	2,071,849	-	100.00	2,459,179	117,931	58,213	(Note 7)
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK POWER INCORPORATED	Philippines	Sales of power supplies and others	22,584	-	11,400,000	100.00	24,157	2,235) (	2,305) (	(Note 7)
Delta Electronics Int'l (Singapore) Pte. Ltd.	ELTEK POWER CO., LTD.	Thailand	Sales of power supplies and others	1	-	40,000	100.00	255,800	6,769) (	6,861) (	(Note 7)
Delta Electronics Int'l (Singapore) Pte. Ltd.	ELTEK POWER (CAMBODIA) LTD.	Cambodia	Sales of power supplies and others	1	-	1,000	100.00	20,489) (	8) (	8) (	(Note 7)
Delta Electronics Int'l (Singapore) Pte. Ltd.	ELTEK POWER (MALAYSIA) SDN. BHD.	Malaysia	Sales of power supplies and others	61,919	-	300,000	100.00	63,876) (	6,293	6,287	(Note 7)
Delta Electronics Int'l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Thailand	Manufacturing and exporting power supplies,other electronic parts and components	35,869,626	-	534,479,306	42.85	36,571,874	2,912,485	290,872	(Note 13)

Table 9-4

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2019	Shares held as at December 31,2019	Shares held as at December 31,2019	Net profit (loss) of the investee for the year ended December 31, 2019	Investment income (loss) recognised by the Company for the year ended December 31, 2019	Footnote
				Balance as at December 31, 2019	Balance as at December 31, 2018	Number of shares	Ownership (%)	Book value
Delta Electronics Int'l (Singapore) Pte. Ltd.	ELTEK POWER PTE. LTD.	Singapore	Sales of power supplies and others and system installation	- $	- $	-	-	- $	4,775) ($	55 $
Loy Tec electronics GmbH	LOYTEC Americas, Inc.	U.S.A.	Consulting service of building management and control solutions	322	322	9,978	100.00	18,101	9,724	9,724
Delta Networks Holding Limited	Delta Networks, Inc.	Cayman Islands	Equity investments	5,332,212	5,332,212	1,196,886,000	100.00	2,243,939	223,627	219,222	(Note 3)
Delta Networks, Inc.	Delta Networks (H.K.) Limited	Hong Kong	Equity investments	1,049,300	1,049,300	35,000,000	100.00	2,218,893	220,448	220,448	(Note 4)
Delta Networks, Inc.	DNI Logistics (USA) Corporation	U.S.A.	Trading of networking system and peripherals	-	16,671	-	-	-	1,838	1,838	(Notes 4 and 21)
Cyntec Co., Ltd.	Fairview Assets Ltd.	Cayman Islands	Equity investments	1,116,521	1,116,521	32,740,062	100.00	29,928,831	944,379	944,379	(Note 5)
Cyntec Co., Ltd.	Power Forest Technology Corporation	Taiwan	IC design of power management	179,161	179,161	8,702,934	59.03	162,778	700	9,102) (	(Note 5)
Vivotek Inc.	Vatics Inc.	Taiwan	Designing and sales of multimedia integrated circuits	305,651	305,651	20,243,849	50.53	1,408	98,050) (	46,717) (	(Note 11)
Vivotek Inc.	Vivotek Holdings, Inc.	U.S.A.	Holding company	31,555	31,555	1,050	100.00	196,957	13,960	13,960	(Note 11)
Vivotek Inc.	Realwin Investment Inc.	Taiwan	Investment in the network communications industry	173,696	173,696	17,369,635	100.00	92,674	14,265	17,955	(Note 11)
Vivotek Inc.	Vivotek Netherlands B.V.	Netherlands	Sales service	11,418	11,418	3,000	100.00	10,006	1,076	1,076	(Note 11)
Vivotek Inc.	Otus Imaging, Inc.	Taiwan	Sales of webcams and related components	44,294	44,294	6,000,000	100.00	7,228	6,455) (	6,455) (	(Note 11)
Vivotek Inc.	Vivotek (Japan) Inc.	Japan	Sales service	17,939	17,939	6,600	100.00	25,143	6,860	6,860	(Note 11)
Vivotek Holdings, Inc.	Vivotek USA, Inc.	U.S.A.	Sales of webcams and related components	29,980	29,980	10,000,000	100.00	283,619	13,969	13,969	(Note 10)
Realwin Investment Inc.	Skywatck INC.	Taiwan	Wholesale of electronic equipment	6,211	6,211	412,070	13.64	-	4,173) (	-	(Note 20)
Realwin Investment Inc.	Wellstates Investment, LLC	U.S.A.	Investment and commercial lease of real estate	34,859	34,859	-	100.00	47,911	2,304	2,304	(Note 12)
Realwin Investment Inc.	Aetek Inc.	Taiwan	Sales of webcams and related components	34,045	34,045	3,372,500	56.21	37,775	12,312	6,920	(Note 12)
Realwin Investment Inc.	Vivotek Middle East FZCO	United Arab Emirates	Sales of webcams and related components	11,242	11,242	1,322	89.99	11,610) (	9,785	8,805	(Note 12)

Table 9-5

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2019	Shares held as at December 31,2019	Shares held as at December 31,2019	Net profit (loss) of the investee for the year ended December 31, 2019	Investment income (loss) recognised by the Company for the year ended December 31, 2019	Footnote
				Balance as at December 31, 2019	Balance as at December 31, 2018	Number of shares	Ownership (%)	Book value
Realwin Investment Inc.	Lidlight Inc.	Taiwan	Sales of lighting equipment	10,200 $	10,200 $	1,020,000	51.00	2,680 $	106 $	54 $	(Note 12)
Realwin Investment Inc.	Vatics Inc.	Taiwan	Designing and sales of multimedia integrated circuits	31,123	31,123	1,556,142	3.88	1,887	98,050) (	3,808) (	(Note 12)
Delta Electronics (Thailand) Public Company Limited	DET International Holding Limited	Cayman Islands	Equity investments	9,542,307	9,542,307	264,357,330	100.00	8,386,628	320,641	320,641	(Note 15)
Delta Electronics (Thailand) Public Company Limited	Delta Green Industrial (Thailand) Co., Ltd.	Thailand	Integration, sales, trading, installation and providing services of uninterruptible power supply, photovoltaic inverter, electric cars changer and data center	208,019	208,019	20,600,000	100.00	208,019	39,501	39,501	(Note 15)
Delta Electronics (Thailand) Public Company Limited	Delta Energy Systems (Singapore) PTE. LTD.	Singapore	Equity investments, trading, management and consultancy	5,628,503	3,403,486	146,586,590	100.00	5,628,503	185,996	185,996	(Note 15)

Note 1: The Company’s second-tier subsidiary or subsidiary, which was recognised as investment gains/losses through Delta International Holding Limited. Note 2: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Delta Electronics (H.K.) Ltd.

Note 3: The Company’s second-tier subsidiary, which was recognised as investment gains/losses through Delta Networks Holding Limited. Note 4: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Delta Networks, Inc. Note 5: The Company’s second-tier subsidiary, which was recognised as investment gains/losses through Cyntec Co., Ltd.

Note 6: The investment income /loss is net of the elimination of intercompany transactions.

Note 7: The Company’s second-tier subsidiary, which was recognised as investment gains/losses through Delta Electronics Int’l (Singapore) Pte. Ltd.

Note 8: The Company’s second-tier subsidiary, which was recognised as investment gains/losses through Delta Electronics (Netherlands) B.V.

Note 9: The Company indirectly acquired 39.95% and 49.79% equity shares of Delta America Ltd. through Delta Electronics (Netherlands) B.V. and its subsidiaries, Castle Horizon Limited and Energy Dragon Global Limited, respectively, considering 10.26% equity shares of DAL held by the Company, the total ownership are 100%.

Note 10: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Vivotek Holdings, Inc.

Note 11: The Company’s second-tier subsidiary, which was recognised as investment gains/losses through Vivotek Inc.

Note 12: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Realwin Investment Inc.

Note 13: The total shareholding ratio is 63.78% when the Company’s subsidiary, Delta Electronics Int'l (Singapore) Pte. Ltd., acquired the company’s equity interests on April 2, 2019, which was including the original weighted-average comprehensive shareholding ratio of 20.01%.

Note 14: The company was merged into the Company on April 1, 2019, and the company was dissolved after the merger.

Note 15: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Delta Electronics (Thailand) Public Company Limited.

Note 16: This company had been liquidated in October 2019.

Note 17: In November 2019, due to the reorganisation of the Group, Delta Electronics (Netherlands) B.V. exchanged 100% equity interests of its subsidiaries, ELTEK AS, Delta Controls Inc., and DELTA ELECTRONICS HOLDING (USA) INC. and a 51% equity interest of its subsidiary, Delta Electronics (Switzerland) AG, for 100% equity interests of the DIH’ subsidiaries, Delta Electronics (H.K.) Ltd., Drake Investment (HK) Limited, Delta Greentech SGP Pte. Ltd. and Boom Treasure Limited. Note 18: This company had been liquidated in November 2019.

Note 19: In December 2019, the company began liquidation process and was dissolved, but has not yet been completed as at December 31, 2019.

Note 20: The Company’s Associate was recognised as investment gains/losses due to significant influence by the Company’s second-tier subsidiary Realwin Investment Inc., which owns one board member in the Company. Note 21: In August 2019, DNI Cayman sold this company to DIH, and this company merged into its subsidiary-ALI. Under the merger, ALI was the surviving company while ALN was the dissolved company.

Table 9-6

Delta Electronics, Inc. and Subsidiaries Information on investments in Mainland China Year ended December 31, 2019

Table 10

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

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as at January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2019	Accumulated amount of remittance from Taiwan to Mainland China as at December 31, 2019	Net income (loss) of investee for the year ended December 31, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2019 (Note 27)	Book value of investments in Mainland China as at December 31, 2019	Accumulated amount of investment income remitted back to Taiwan as at December 31, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Delta Electronics (Dongguan) Co., Ltd.	Manufacturing and sales of transformer and thermal products	2,932,344 $	Invested by DHK	2,015,585 $	292,699 $	- $	2,308,284 $	220,725 $	100.00	205,774 $	3,759,398 $	289,607 $	(Notes 3 and 18)
Delta Electronics Power (Dongguan) Co., Ltd.	Manufacturing and sales of power supplies	1,262,158	Invested by DHK	507,262	202,875	-	710,137	439,162	100.00	419,872	2,690,986	402,811	(Notes 6 and 18)
Delta Electronics (Shanghai) Co., Ltd.	Product design, management consulting service and distribution of electronic products	3,413,788	Invested by DHK	-	468,991	-	468,991	2,012,239	100.00	1,921,873	6,140,542	-	(Notes 9 and 18)
Delta Electronics (Wuhu) Co., Ltd.	Manufacturing and sales of LED light source, power supplies and others	4,017,320	Invested by DHK	169,087	343,908	-	512,995	241,907	100.00	228,620	4,423,240	-	(Notes 10 and 18)
Delta Electronics (Chenzhou) Co., Ltd.	Manufacturing and sales of transformers	1,888,740	Invested by DHK	-	128,161	-	128,161	143,709	100.00	143,629	1,896,810	-	(Notes 12 and 18)
Delta Electronics (Jiangsu) Ltd.	Manufacturing and sales of power supplies and transformers	1,199,200	Invested by DHK, Apex- HK, Galaxy Star-HK and Jade-HK	4,010,917	192,241	-	4,203,158	882,155	100.00	684,688	2,635,590	-	(Note 18)
Delta Electronics Components (Wujiang) Ltd.	Manufacturing and sales of new-type electronic components, variable-frequency drive and others	3,531,944	Invested by DHK, Apex- HK, Galaxy Star-HK and Jade-HK	6,350,699	534,470	-	6,885,169	1,170,375	100.00	812,094	6,948,247	52,892	(Notes 7 and 18)
Delta Video Display System (Wujiang) Ltd.	Manufacturing and sales of various projectors	869,420	Invested by DHK, Apex- HK, Galaxy Star-HK and Jade-HK	1,330,764	97,940	-	1,428,704	149,464	100.00	113,264	1,246,912	-	(Notes 8 and 18)
Delta Electronics (Wujiang) Trading Co., Ltd.	Installation, consulting and trading of electronic products	-	Invested by DHK	11,272	-	-	11,272	-	-	1,736	-	-	(Note 26)
Delta Green (Tianjin) Industries Co., Ltd.	Manufacturing and sales of transformers	135,809	Invested by DHK	930,890	61,002	-	991,892	49,303) (	100.00	46,686) (	14,941) (	-	(Notes 14 and 18)
Delta Electronics (Pingtan) Co., Ltd.	Wholesale and retail of electronic products and energy-saving equipment	129,119	Invested by DHK	140,906	14,831	-	155,737	36,911	100.00	35,121	172,662	-	(Note 18)
PreOptix (Jiang Su) Co., Ltd.	Manufacturing and sales of lenses and optical enginges for projectors	-	Invested by PHK	382,845	-	-	382,845	12,821) (	-	12,052) (	-	-	(Notes 13, 21 and 29)
Wuhu Delta Technology Co., Ltd.	Manufacturing and sales of transformers	-	Invested by DWH	-	-	-	-	3,358	100.00	3,192	-	-	(Notes 16 and 28)
Chenzhou Delta Technology Co., Ltd.	Manufacturing and sales of transformers	109,751	Invested by DCZ	-	-	-	-	42,538	100.00	40,194	186,923	-	(Note 16)

Table 10-1

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as at January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2019	Accumulated amount of remittance from Taiwan to Mainland China as at December 31, 2019	Net income (loss) of investee for the year ended December 31, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2019 (Note 27)	Book value of investments in Mainland China as at December 31, 2019	Accumulated amount of investment income remitted back to Taiwan as at December 31, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Delta Energy Technology (Dongguan) Co., Ltd.	Research and development of energy-saving technology, energy-saving equipment and energy management system as well as technology consulting service	129,119 $	Invested by DPEC and DDG	- $	- $	- $	- $	3,550 $	100.00	3,111 $	159,959 $	- $	(Note 16)
Delta Energy Technology (Shanghai) Co., Ltd.	Energy performance contracting, development of energy-saving technology, energy-saving equipment and energy management system as well as consulting service, installation, sales, etc.	43,040	Invested by DPEC and DGC	-	-	-	-	(5,242)	96.32	(5,085)	32,893	-	(Note 16)
Delta Greentech (China) Co., Ltd.	Sales of uninterruptible power systems	2,444,661	Invested by DIH, Ace, Boom, Drake-HK and DGSG	8,751,880	416,383	-	9,168,263	760,772	95.91	833,901	5,450,898	-	(Notes 4 and 17)
Delta Energy Technology Puhuan (Shanghai) Co., Ltd.	Energy technology, development and consulting of environmental technical skills, and design and sales of energy saving equipment	430	Invested by DET-SH	-	-	-	-	668	96.32	4,572	8,271	-	(Note 16)
Cyntec Electronics (Suzhou) Co., Ltd.	Research, development, manufacturing and sales of new-type electronic components (chip components, sensing elements, hybrid integrated circuits) and wholesale of similar products	6,069,822	Invested by CHK	5,949,902	-	-	5,949,902	777,637	100.00	777,637	7,587,354	-	(Note 20)
Delta Networks (Dongguan) Ltd.	Manufacturing and sales of other radio- broadcast receivers and the equipment in relation to broadband access networking system	1,049,300	Invested by DNHK	1,340,296	-	-	1,340,296	217,884	100.00	217,884	2,009,942	659,560	(Notes 5 and 19)
Delta Networks (Xiamen) Ltd.	Operation of radio transmission apparatus, and automatic data processing, reception, conversion and transmission or regeneration of voice, images or other data of the machine, including switches and routers, with a special program to control a computer or word processor with memory business	63,476	Invested by DNHK	20,986	-	-	20,986	4,149	30.00	4,061	16,342	-	(Note 19)
Eltek Energy Technology (Dongguan) Ltd.	Development, manufacturing and sales of intelligent power equipment and system for supporting access networking system, and manufacturing and sale of intelligent power equipment for supporting renewable energy	221,852	Invested by DHK / ELTEK CVI LIMITED	1,123,664	12,872	-	1,136,536	10,621	100.00	10,621	170,101	-	(Note 23)
DelBio (Wujiang) Co., Ltd.	Manufacturing, wholesale and retail of medical equipment	119,920	Invested by DelBio	119,920	-	-	119,920	26,112	100.00	26,078	168,592	-	(Note 22)
Delta Electronics (Beijing) Co., Ltd.	Installation of mechanic, electronic, telecommunication and circuit equipment	215,199	Invested by DHK	-	13,712	-	13,712	23,031) (	100.00	21,914) (	153,703	-	(Notes 15 and 18)
Delta Electronics (Xi'an) Co., Ltd.	Sales of computer, peripheral equipment and software	236,719	Invested by DHK	253,396	18,189	-	253,585	15,852) (	100.00	15,062) (	217,407	-	(Note 18)

Table 10-2

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as at January 1, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2019	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2019	Accumulated amount of remittance from Taiwan to Mainland China as at December 31, 2019	Net income (loss) of investee for the year ended December 31, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2019 (Note 27)	Book value of investments in Mainland China as at December 31, 2019	Accumulated amount of investment income remitted back to Taiwan as at December 31, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Beijing Industrial Foresight Technology Co., Ltd.	Computer system services and data process	- $	Invested by Delta Electronics (Beijing) Co., Ltd.	- $	- $	- $	- $	595) ($	-	448) ($	- $	- $	(Note 24)
Unicom (Nanjing) System Eng. Corp	Design and sales of computer, peripheral and information system (software and hardware)	8,994	Invested by UNICOM	8,994	-	-	8,994	3,771	100.00	3,771	24,771	34,009	(Note 11)
Guangzhou Amerlux Lighting Co., Ltd.	Wholesale of lighting fixture and decorative objects	14,241	Invested by Amerlux Lighting Hong Kong Limited	-	176,069	-	176,069	10,645	100.00	10,645	14,186	-	(Note 25)

Note 1: The capital was translated based on the capital certified report of the investee companies into New Taiwan Dollars at the average exchange rate of RMB 6.96565 to US$1 and NTD 4.30398 to RMB$1.

Note 2: The accumulated remittance as at January 1, 2019, remitted or collected this period, accumulated remittance as at December 31, 2019 and investment income remitted back as at December 31, 2019 was translated into New Taiwan Dollars at the average exchange rate of NTD 29.98 to US$1 at the balance sheet date.

Note 3: Except for the facility of US$76,994 thousand permitted by Investment Commission, the capitalisation of earnings of US$27,081 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note 4: Except for the facility of US$305,813 thousand permitted by Investment Commission, the capitalisation of earnings of US$980 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 5: Except for the facility of US$44,706 thousand permitted by Investment Commission, the capitalisation of earnings of US$11,312 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 6: Except for the facility of US$23,687 thousand permitted by Investment Commission, the capitalisation of earnings of US$22,654 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 7: Except for the facility of US$229,659 thousand permitted by Investment Commission, the capitalisation of earnings of US$27,303 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 8: Except for the facility of US$47,655 thousand permitted by Investment Commission, the capitalisation of earnings of US$8,272 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 9: Except for the facility of US$15,643 thousand permitted by Investment Commission, the capitalisation of earnings of US$110,401 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 10: Except for the facility of US$17,111 thousand permitted by Investment Commission, the capitalisation of earnings of US$120,320 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China. Note 11: Indirect investment through UNICOM SYSTEM ENG. CORP.

Note 12: Except for the facility of US$4,275 thousand permitted by Investment Commission, the capitalisation of earnings of US$59,220 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note 13: Except for the facility of US$7,520 thousand permitted by Investment Commission, the investment of US$5,250 thousand by PreOptix Co., Ltd. was permitted by Investment Commission.

Note 14: Except for the facility of US$33,085 thousand permitted by Investment Commission, the capitalisation of earnings of US$265 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note 15: Except for the facility of US$457 thousand permitted by Investment Commission, the capitalisation of earnings of US$7,268 thousand permitted by Investment Commission is excluded from the Company’s amount of investment in Mainland China.

Note 16: According to the regulations of the Investment Commission, the reinvestment of the investee companies in Mainland China is not required to obtain the approval of the Investment Commission; thus the investment amounts are excluded from the calculation of the Company’s ceiling of investment amount in Mainland China.

Note 17: Jointly invested through Drake Investment (HK) Limited., Delta Greentech SGP Pte. Ltd. and Boom Treasure Limited.

Note 18: Invest through Delta Electronics (H.K.) Ltd.

Note 19: Invest through Delta Networks (H.K.) Limited

Note 20: Invest through Cyntec Holding (H.K.) Limited.

Note 21: Invest through PreOptix (Hong Kong) Co., Ltd.

Note 22: Invest through DelBio Inc.

Note 23: In July 2019, this company was sold to Delta Electronics (H.K.) Ltd. by ELTEK CVI LIMITED., therefore it was invested through Delta Electronics (H.K.) Ltd. Note 24: This company had been liquidated in July 2019.

Note 25: Invest through Amerlux Lighting Hong Kong Limited.

Table 10-3

Note 26: This company had been liquidated in April 2019.

Note 27: The company recognised investment income / loss based on the audited financial statement. Note 28: This company had been liquidated in December 2019.

Note 29: The ownership of PreOptix (Jiang Su) Co., Ltd. had been sold in October 2019.

Company name	Accumulated amount remitted from Taiwan to Mainland China as at December 31, 2019	Investment amount approved by the Investment Commission of Ministry of Economic Affairs (MOEA)	Ceiling of investments in Mainland China imposed by the Investment Commission of MOEA
Delta Electronics, Inc. (Notes 2 and 3)	$ 29,067,290	$ 29,721,517	$ -
Cyntec Co., Ltd.	5,949,902	5,949,902	17,124,770
DelBio Inc. (Note 4)	119,920	119,920	131,884
UNICOM SYSTEM ENG. CORP. (Notes 5 and 6)	-	-	80,000

Note 1: The accumulated amount remitted out of Taiwan to Mainland China and investment amount approved by the investment commission was translated into New Taiwan Dollars at the average exchange rate of NTD 29.98 to US$1 at the balance sheet date.

Note 2: The investment income of US$22,000 thousand, US$18,000 thousand, US$10,509 thousand and US$14,351 thousand were remitted back on March 11, 2011, June 27, 2012, August 14, 2012, June 24, 2009 and December 29, 2005, respectively, from the investee companies in Mainland China and was permitted by Investment Commission on August 3, 2012, August 28, 2012, July 17, 2009 and January 6, 2006, respectively, which are deductible from the Company’s accumulated amount remitted out of Taiwan to Mainland China.

Note 3: According to “Regulation Governing the Approval of Investment or Technical Cooperation in Mainland China”, the Company obtained the approval of operation headquarters from Industrial Development Bureau of Ministry of Economic Affairs. There is no ceiling of investment amount.

Note 4: The ceiling is caculated based on DelBio Inc.' s 60% of net assets as at December 31, 2019.

Note 5: The limitation pursuant to the regulations is NT $80 million or 60% of net value or consolidated net assets, whichever is higher.

Note 6: The investment income of US$1,134 thousand were remitted back on October 17, 2019 from the investee companies in Mainland China and was permitted by Investment Commission on November 12, 2019, which are deductible from the Company’s accumulated amount remitted out of Taiwan to Mainland China.

The significant purchases, sales, accounts payable and accounts receivable that the Company directly conducted with investee companies in Mainland China as well as those that the Company indirectly conducted with investee companies in Mainland China through Delta Electronics Int'l (Singapore) Pte. Ltd. (DEIL-SG) and Cyntec International Limited. - Labuan (CIL-Labuan) for the year ended December 31, 2019 are shown in Table 6 and 7.

Table 10-4