DELTA - Audit Report / Information 2020

DELTA ELECTRONICS, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2020 AND 2019

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

~1~

INDEPENDENT AUDITORS’ REPORT

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 subsidiaries (the “Group”) as at December 31, 2020 and 2019, 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 reports of other auditors (please refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2020 and 2019, 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. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the audit reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group’s 2020 consolidated financial statements. 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.

~2~

Key audit matters for the Group’s 2020 consolidated financial statements are stated as follows:

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

Description

In June 2019, the Group acquired 100% of Amerlux, LLC. The allocation of the acquisition price was completed in the second quarter of 2020. 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(31).

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

How our audit addressed the matter

We obtained an understanding of the basis and process of the 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 operating margin with historical data, economic and industry forecasts; and
C. Comparing the discount rate with the cost of capital assumptions of cash generating units and rate of return of similar assets.

Impairment assessment of goodwill

Description

As at December 31, 2020, the recognised goodwill as a result of the acquisitions of Cyntec Co., Ltd., Eltek AS, Delta Controls Inc., Delta Greentech (China) Co., Ltd., Amerlux, LLC and Loy Tec electronics GmbH amounted to NT$15,532,478 thousand, constituting 4.62% of the 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

~3~

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.

Other matter – Reference to the audits of other auditors

We did not audit the consolidated financial statements of certain subsidiaries and investments accounted for under the equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these subsidiaries, is based solely on the reports of the other auditors. Total assets of these subsidiaries amounted to NT$64,807,490 thousand and NT$56,952,036 thousand, constituting 19.26% and 18.31% of the consolidated total assets as at December 31, 2020 and 2019, respectively, and the operating revenue amounted to NT$63,667,883 thousand and NT$45,582,501 thousand, constituting 22.53% and 17.00% of the consolidated total operating revenue for the years then ended, respectively. The balance of investments accounted for under the equity method amounted to NT$0, constituting 0% of the consolidated total assets as at December 31, 2020 and 2019, and the comprehensive income recognized from associates and joint ventures accounted for under the equity method amounted to NT$0 and NT$429,060 thousand, constituting 0% and 1.80% of the consolidated total comprehensive income for the years then ended, respectively.

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,

~4~

2020 and 2019.

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, 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.

Auditors’ responsibilities for the audit of the consolidated financial statements

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

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

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

~5~

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

E.

F.

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

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 auditors’ report unless law or

~6~

regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The consolidated financial statements of Delta Electronics, Inc. and subsidiaries as at and for the year ended December 31, 2020 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 $28.095 to US$1.00 at December 31, 2020. 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 FSC.

Lin, Yu-Kuan Chou, Chien-Hung

for and on behalf of PricewaterhouseCoopers, Taiwan

February 24, 2021

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 independent auditors’ report 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.

~7~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(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 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 the 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(21) 6(5) 6(5) 7 7 6(7) 8 6(2) 6(3) 6(21) 6(8) 6(9) and 8 6(10) 6(11) 6(12) 6(28) 6(5)(13) and 8	USDollars December 31, 2020 $ 2,089,766 37,777 - 77,261 132,892 2,106,333 1,505 64,193 12,980 1,597,773 77,281 27,078 6,224,839 104,723 68,613 18,749 27,941 2,436,091 107,519 501 2,685,874 230,351 69,037 5,749,399 $ 11,974,238	NewTaiwan Dollars	NewTaiwan Dollars
			December 31, 2020 $ 58,711,985 1,061,343 - 2,170,634 3,733,595 59,177,433 42,284 1,803,498 364,666 44,889,429 2,171,217 760,771 174,886,855 2,942,196 1,927,683 526,766 785,002 68,441,975 3,020,746 14,070 75,459,630 6,471,705 1,939,587 161,529,360 $ 336,416,215	December 31, 2019
				$ 43,960,001 1,122,458 319,823 1,087,489 3,816,628 52,955,106 263,644 1,480,157 372,654 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

(Continued)

~8~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF DOLLARS)

Liabilities and Equity	Notes 6(14) 6(2) 6(21) 7 6(15) 6(15) 6(28) 6(17) 6(18) 6(19) 4(3) and 6(20) 9 11	USDollars NewTaiwan Dollars December 31, 2020 December 31, 2020 December 31, 2019 $ 71,242$ 2,001,532 $ 7,575,932 2,138 60,060 15,929 178,416 5,012,589 3,352,208 99 2,770 21,669 1,661,773 46,687,510 39,478,462 1,055 29,641 32,197 1,170,465 32,884,221 28,829,379 109,823 3,085,472 2,187,076 151,617 4,259,706 4,233,308 3,346,628 94,023,501 85,726,160 1,399,323 39,313,990 27,748,839 549,924 15,450,119 14,008,861 50,234 1,411,312 1,421,265 271,495 7,627,652 7,777,723 2,270,976 63,803,073 50,956,688 5,617,604 157,826,574 136,682,848 924,557 25,975,433 25,975,433 1,751,290 49,202,505 49,103,331 973,217 27,342,534 25,030,754 271,295 7,622,034 7,561,032 1,719,169 48,300,040 40,108,361 ( 446,457)( 12,543,208) ( 7,622,034) 5,193,071 145,899,338 140,156,877 1,163,563 32,690,303 34,197,565 6,356,634 178,589,641 174,354,442 $ 11,974,238$ 336,416,215 $ 311,037,290
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 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

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

~9~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

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

Items	Notes 6(21) and 7 6(7)(26) (27) and 7 6(26)(27) 12(2) 6(22) 6(23) 6(12)(24) 6(25) 6(8) 6(28)	US Dollars New Taiwan Dollars 2020 2020 2019 $ 10,058,925 $ 282,605,493 $ 268,131,397 ( 6,954,729 ) ( 195,393,115)( 193,635,252) 3,104,196 87,212,378 74,496,145 ( 655,989 ) ( 18,430,010) ( 19,837,224) ( 427,861 ) ( 12,020,761) ( 11,418,313) ( 906,918 ) ( 25,479,870) ( 23,887,886) 5,127 144,067 56,068 ( 1,985,641 ) ( 55,786,574)( 55,087,355) 1,118,555 31,425,804 19,408,790 19,368 544,147 886,537 140,232 3,939,821 3,150,629 ( 42,679 ) ( 1,199,056) 6,304,445 ( 13,377 ) ( 375,837) ( 737,869) ( 2,121) ( 59,596) 141,877 101,423 2,849,479 9,745,619 1,219,978 34,275,283 29,154,409 ( 245,273 ) ( 6,890,944)( 5,226,653) $ 974,705 $ 27,384,339 $ 23,927,756
Operating 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 Interest income Other income Other gains and losses Finance costs Share of (loss) profit of associates and joint ventures accounted for under the equity method Total non-operating income and expenses Profit before income tax Income tax expense Profit for the year

(Continued)

 ~10~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

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

Items Notes Other comprehensive income (loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss Loss on remeasurements of defined benefit plans Unrealised gain on valuation of equity investment at fair value through other comprehensive income 6(3) Share of other comprehensive income of associates and joint ventures accounted for under the equity method that will not be reclassified to profit or loss Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 6(28) Other comprehensive income (loss) that will not be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss Financial statements translation differences of foreign operations (Loss) gain on hedging instrument Share of other comprehensive income of associates and joint ventures accounted for under the equity method that will be reclassified to profit or loss Income tax relating to the components of other comprehensive income that will be reclassified to profit or loss 6(28) Other comprehensive (loss) income that will be reclassified to profit or loss Other comprehensive loss for the year Total comprehensive income for the year Profit attributable to: Owners of the parent Non-controlling interest Comprehensive income (loss) attributable to: Owners of the parent Non-controlling interest Earnings per share Basic earnings per share 6(29) Diluted earnings per share 6(29)	USDollars 2020 ( $ 5,580 ) 11,613 - 493 6,526 ( 341,408 ) ( 658 ) 29 16,948 ( 325,089 ) ($ 318,563) $ 656,142 $ 907,109 $ 67,596 $ 665,241 ($ 9,099 ) $ 0.35 $ 0.35	NewTaiwan Dollars 2020 2019 ($ 156,768) ( $ 336,375 ) 326,268 200,079 - 16,500 13,838 6,088 183,338 ( 113,708 ) ( 9,591,864) ( 2,958,933 ) ( 18,489) 2,700 819 3,535,054 476,157 ( 527,130 ) ( 9,133,377) 51,691 ($ 8,950,039)($ 62,017) $ 18,434,300 $ 23,865,739 $ 25,485,231 $ 23,117,797 $ 1,899,108 $ 809,959 $ 18,689,957 $ 22,165,228 ($ 255,657)$ 1,700,511 $ 9.81 $ 8.90 $ 9.77 $ 8.85

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

~11~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF DOLLARS)

Notes				Equityattr	utable to owners of t	heparent	heparent					Non-controlling interest	Total equity
	Share capital - common stock	Capital surplus		Retained earnings				Ot	her equityinterest		Total
			Legal reserve	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	Gain (loss) on hedging instruments
6(19) 6(32) 6(3) 6(19) 6(32) 6(3)	`$ 25,975,433` `-` `25,975,433` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$ 25,975,433` `$ 25,975,433` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$ 25,975,433`	`$ 48,397,067` `-` `48,397,067` `-` `-` `-` `-` `-` `-` `34,941` `671,323` `-` `-` `$ 49,103,331` `$ 49,103,331` `-` `-` `-` `-` `-` `-` `195,879` `(` `96,705)` `-` `-` `$ 49,202,505`	`$ 23,211,444` `-` `23,211,444` `-` `-` `-` `1,819,310` `-` `-` `-` `-` `-` `-` `$ 25,030,754` `$ 25,030,754` `-` `-` `-` `2,311,780` `-` `-` `-` `-` `-` `-` `$ 27,342,534`	`$ 7,088,143` `-` `7,088,143` `-` `-` `-` `-` `472,889` `-` `-` `-` `-` `-` `$ 7,561,032` `$ 7,561,032` `-` `-` `-` `-` `61,002` `-` `-` `-` `-` `-` `$ 7,622,034`	`$ 33,160,104` `1,943` `33,162,047` `23,117,797` `(` `255,785)` `22,862,012` `(` `1,819,310)` `(` `472,889)` `(` `12,987,717)` `-` `-` `-` `(` `635,782)` `$ 40,108,361` `$ 40,108,361` `25,485,231` `(` `119,914)` `25,365,317` `(` `2,311,780)` `(` `61,002)` `(` `12,987,717)` `-` `(` `58,953)` `-` `(` `1,754,186)` `$ 48,300,040`		`($ 4,422,025)` `-` `(` `4,422,025)` `-` `(` `912,967)` `(` `912,967)` `-` `-` `-` `-` `-` `-` `-` `($ 5,334,992)` `($ 5,334,992)` `-` `(` `6,984,988)` `(` `6,984,988)` `-` `-` `-` `-` `-` `-` `-` `($ 12,319,980)`		`($ 3,270,159)` `-` `(` `3,270,159)` `-` `200,079` `200,079` `-` `-` `-` `-` `-` `-` `635,782` `($ 2,434,298)` `($ 2,434,298)` `-` `326,268` `326,268` `-` `-` `-` `-` `-` `-` `1,754,186` `($` `353,844)`	`$ 131,152` `-` `131,152` `-` `16,104` `16,104` `-` `-` `-` `-` `-` `-` `-` `$ 147,256` `$ 147,256` `-` `(` `16,640)` `(` `16,640)` `-` `-` `-` `-` `-` `-` `-` `$ 130,616`	`$ 130,271,159` `1,943` `130,273,102` `23,117,797` `(` `952,569)` `22,165,228` `-` `-` `(` `12,987,717)` `34,941` `671,323` `-` `-` `$ 140,156,877` `$ 140,156,877` `25,485,231` `(` `6,795,274)` `18,689,957` `-` `-` `(` `12,987,717)` `195,879` `(` `155,658)` `-` `-` `$ 145,899,338`	`$ 9,189,749` `-` `9,189,749` `809,959` `890,552` `1,700,511` `-` `-` `-` `-` `(` `4,947,661` `)` `28,254,966` `-` `$ 34,197,565` `$ 34,197,565` `1,899,108` `(` `2,154,765` `)` `(` `255,657` `)` `-` `-` `-` `-` `(` `243,181` `)` `(` `1,008,424` `)` `-` `$ 32,690,303`	`$` `139,460,908` `1,943` `139,462,851` `23,927,756` `(` `62,017` `)` `23,865,739` `-` `-` `(` `12,987,717` `)` `34,941` `(` `4,276,338` `)` `28,254,966` `-` `$` `174,354,442` `$` `174,354,442` `27,384,339` `(` `8,950,039` `)` `18,434,300` `-` `-` `(` `12,987,717` `)` `195,879` `(` `398,839` `)` `(` `1,008,424` `)` `-` `$` `178,589,641`

(Continued)

~12~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF DOLLARS)

Notes				Equityattr	utable to owners of t	eparent					Non-controlling interest	Total equity
	Share capital - common stock	Capital surplus		Retained earnings			Ot	her equityinterest		Total
			Legal reserve	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	Gain (loss) on hedging instruments
6(19) 6(32) 6(3)	`$` `924,557` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `924,557`	`$ 1,747,760` `-` `-` `-` `-` `-` `-` `6,972` `(` `3,442)` `-` `-` `$ 1,751,290`	`$` `890,933` `-` `-` `-` `82,284` `-` `-` `-` `-` `-` `-` `$` `973,217`	`$` `269,124` `-` `-` `-` `-` `2,171` `-` `-` `-` `-` `-` `$` `271,295`	`$ 1,427,598` `907,109` `(` `4,269)` `902,840` `(` `82,284)` `(` `2,171)` `(` `462,279)` `-` `(` `2,098)` `-` `(` `62,437)` `$ 1,719,169`	`($` `189,891)` `-` `(` `248,620)` `(` `248,620)` `-` `-` `-` `-` `-` `-` `-` `($` `438,511 )`		`($` `86,645)` `-` `11,613` `11,613` `-` `-` `-` `-` `-` `-` `62,437` `($` `12,595 )`	`$` `5,241` `-` `(` 592`)` `(` 592`)` `-` `-` `-` `-` `-` `-` `-` `$` `4,649`	`$` `4,988,677` `907,109` `(` `241,868)` `665,241` `-` `-` `(` `462,279)` `6,972` `(` `5,540)` `-` `-` `$` `5,193,071`	`$ 1,217,212` `67,596` `(` `76,695` `)` `(` `9,099` `)` `-` `-` `-` `-` `(` `8,656` `)` `(` `35,894` `)` `-` `$ 1,163,563`	`$` `6,205,889` `974,705` `(` `318,563` `)` `656,142` `-` `-` `(` `462,279` `)` `6,972` `(` `14,196` `)` `(` `35,894` `)` `-` `$` `6,356,634`

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

~13~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF DOLLARS)

CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated profit before tax for the year
Adjustments
Income and expenses having no effect on cash flows
Depreciation

Amortisation

Expected credit impairment gain

Net gain on financial assets or liabilities at fair
value through profit or loss

Interest expense

Interest income

Dividend income

(Reversal of) share-based payments

Share of loss (profit) of associates accounted for
under the equity method

Loss on disposal of property, plant and equipment

Loss (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
Inventories
Prepayments
Other current assets
Other non-current assets
Net changes in 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

2020

2020

2019
$ 1,219,978 $ 34,275,283 $ 29,154,409

6(9)(10)(26)
427,980
12,024,107
10,912,594
6(12)(26)
136,894
3,846,049
3,072,851
12(2)
(
5,128 ) (
144,067 ) (
56,068 )
6(2)(24)
(
2,545 ) (
71,489 )
(
365,965 )
6(25)
13,377
375,837
731,745
6(22)
(
19,368 ) (
544,147 ) (
886,537 )
6(23)
(
6,769 ) (
190,171 ) (
282,302 )
6(30)
(
32 ) (
900 )
41,176
6(8)
2,121
59,596
(
141,877 )
6(24)
2,404
67,529
56,441
6(24)
3,405
95,654 (
6,001,894 )
6(24)
28,536
801,712
(
90,215 )

(
20,380 ) (
572,564 )
283,898
(
46,283 ) (
1,300,311 )
812,339
2,955
83,033
274,603
(
210,033 ) (
5,900,888 )
8,306,424
7,879
221,360
2,833,432
(
11,205 ) (
314,845 ) (
7,740 )
(
191,962 ) (
5,393,170 )
5,641,877
8,270
232,351 (
321,976 )
3,619
101,682 (
328 )
2,542
71,407
130,389
58,862
1,653,725
708,890
(
673 ) (
18,899 )
13,714
238,833
6,710,023 (
6,723,132 )
(
91 ) (
2,556 ) (
2,381,143 )
144,361
4,055,801 (
127,974 )
1,097
30,801 (
679,602 )
70
1,974
682,490
1,788,714
50,253,917
45,590,519
19,125
537,327
942,187
6,709
188,495
282,302
(
13,411 ) (
376,796 ) (
729,218 )
(
133,579 ) (
3,752,891 ) (
4,175,022 )
1,667,558
46,850,052
41,910,768

(Continued)

~14~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF DOLLARS)

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of financial assets at fair value through other
comprehensive income
Proceeds from disposal of financial assets at fair value
through other comprehensive income

Proceeds from capital withdrawal liquidation of financial
asset at fair value through profit or loss

Acquisition of investments accounted for under the equity
method
Proceeds from disposal of investments accounted for
under the 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 intangible assets

Increase in other financial assets

Decrease (increase) in other non-current assets

Net cash flows used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

(Decrease) increase in short-term borrowings

Proceeds from long-term debt

Repayment of 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 increase (decrease) 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

2020

2020

2019

$ -
$ - ( $ 11,190 )
6(3)
17,863
501,867
1,114,871

158
4,444
-
-
- (
12,154 )
258
7,240
-
6(31)
(
38,730
)
(

1,088,115 )

(

24,018,015 )
6(9)
(
634,933)(
17,838,456 ) (
16,866,186 )

7,029
197,480
472,561
6(12)
(
24,373 ) (
684,761 )(
666,967)

(
19,118 ) (
537,131 ) (
51,359 )

11,840
332,660 (
489,479)

(
680,006) (
19,104,772)(
40,527,918)

6(33)
(
198,412)(
5,574,400 )
1,316,870
6(33)
2,389,898
67,144,183
2,407,888
6(33)
(
1,978,874 ) (
55,596,451 )
-

(
18,404 ) (
517,080 )(
586,249)
6(19)
(
462,279 ) (
12,987,717 ) (
12,987,717 )
6(20)
(
31,868 ) (
895,326 ) (
2,320,171 )
6(32)
(
14,196) (
398,839) (
4,276,338)

(
314,135) (
8,825,630) (
16,445,717)

(
148,342) (
4,167,666)(
595,829)

525,075
14,751,984(
15,658,696)

1,564,691
43,960,001
59,618,697

$ 2,089,766 $ 58,711,985 $ 43,960,001

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

~15~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2020 AND 2019

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

1. HISTORY AND ORGANIZATION

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.

THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were authorised for issuance by the Board of Directors on February 24, 2021.

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 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	January 1, 2020
benchmark reform’
Amendment to IFRS 16, ‘Covid-19-related rent concessions’	June 1, 2020 (Note)

Note: Earlier application from January 1, 2020 is allowed by the FSC.

The above standards and interpretations have no significant impact to the Group’s financial condition

~16~

and financial performance based on the Group’s assessment.

(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 2021 are as follows:

	Effective date by
	International Accounting
New Standards,Interpretations andAmendments	StandardsBoard
Amendments to IFRS 4, ‘Extension of the temporary exemption	January 1, 2021
from applying IFRS 9’
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16,	January 1, 2021
‘Interest Rate Benchmark Reform— Phase 2’

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:

==> picture [468 x 48] intentionally omitted <==

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
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, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IAS 1, ‘Classification of liabilities as current or	January 1, 2023
non-current’
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 16, ‘Property, plant and equipment: proceeds	January 1, 2022
before intended use’
Amendments to IAS 37, ‘Onerous contracts-cost of fulfilling a	January 1, 2022
contract’
Annual improvements to IFRS Standards 2018-2020	January 1, 2022

The above standards and interpretations have no significant impact to the 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

~17~

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”).

(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

~18~

between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss, on the same basis as 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 Investor	Name of Subsidiary	Main Business Activities	Ownership (%)	Ownership (%)	Description
				December 31,2020	December 31,2019
1 2 3 4 5 6	Delta Electronics, Inc. `〃` `〃` Delta Electronics, Inc. and DIH Delta Electronics, Inc. `〃`	Delta International Holding Limited (DIH) Delta Networks Holding Limited (DNH) Delta Electronics (Netherlands) B.V. (DEN) PreOptix (Hong Kong) Co., Ltd. (PHK) Cyntec Co., Ltd. (Cyntec) DelBio Inc. (DelBio)	Equity investments `〃` Sales of power products, display solution products, electronic components, industrial automation products and materials Equity investments Research, development, manufacturing and sales of film optic- electronics devices Manufacturing, wholesale and retail of medical equipment	100 100 100 100 100 100	100 100 100 100 100 100	Note1

~19~

==> picture [467 x 42] intentionally omitted <==

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

Ownership (%)
Name of Name of Main Business December December
No. Investor Subsidiary Activities 31, 2020 31, 2019 Description
----- End of picture text -----

No.	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019	Description
7	Delta Electronics,	Delta Electronics	Equity investments	100	100
	Inc.	Capital Company
		(DECC)
8	`〃`	Delta Electronics	Sales of electronic	100	100
		Int'l (Singapore) Pte.	products
		Ltd. (DEIL-SG)
9	`〃`	Allied Material	Lease services, etc.	99.97	99.97
		Technology Corp.
		(AMT)
10	Delta Electronics,	Delta America Ltd.	Equity investments	100	100	Note 2
	Inc. and	(DAL)
	DEN/Delta
	Electronics, Inc.,
	DEN, Castle
	Horizon Limited
	and Energy Dragon
	Global Limited
11	DEN	Delta Electronics	Equity investments,	100	100
		(H.K.) Ltd. (DHK)	operations
			management and
			engineering services
12	DIH	DEI Logistics (USA)	Warehousing and	100	100
		Corp. (ALI)	logistics services
13	`〃`	Delta Electronics	Sales of power	100	100
		(Japan), Inc. (DEJ)	products, display
			solution products,
			electronic
			components,
			industrial automation
			products and
			materials
14	DEN	Drake Investment	Equity investments	100	100
		(HK) Limited
		(Drake-HK)

~20~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019	Description
15	DGSG, Drake-HK	Delta Greentech	Sales of	95.91	95.91
	and Boom	(China) Co., Ltd.	uninterruptible power
		(DGC)	systems and others
16	DIH	Vivitek Corporation	Sales of projector	100	100
		(Vivitek)	products and their
			materials
17	DEN	Delta Greentech SGP	Equity investments	100	100
		Pte. Ltd. (DGSG)
18	DIH	Delta Electronics	Repair centre and	100	100
		Europe Ltd. (DEU)	providing support
			services
19	DEN	Boom Treasure	Equity investments	100	100
		Limited (Boom)
20	DIH	Apex Investment	〃	100	100	Note 3
		(HK) Limited
		(Apex-HK)
21	〃	Galaxy Star	〃	100	100	Note 3
		Investment (HK)
		Limited (Galaxy
		Star-HK)
22	〃	Jade Investment	〃	100	100	Note 3
		(HK) Limited
		(Jade-HK)
23	DHK	Delta Electronics	Manufacturing and	100	100
		(Dongguan) Co., Ltd.	sales of transformer
		(DDG)	and thermal products
24	〃	Delta Electronics	Manufacturing and	100	100
		Power (Dongguan)	sales of power
		Co., Ltd. (DEP)	supplies
25	〃	Delta Electronics	Product design,	100	100
		(Shanghai) Co., Ltd.	management
		(DPEC)	consulting service
			and distribution of
			electronic products

~21~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019	Description
26	DHK	Delta Electronics	Manufacturing and	100	100
		(Jiangsu) Ltd. (DWJ)	sales of power
			supplies and
			transformers
27	`〃`	Delta Electronics	Manufacturing and	100	100
		Components	sales of new-type
		(Wujiang) Ltd.	electronic
		(DWC)	components,
			variable-frequency
			drive and others
28	`〃`	Delta Video Display	Manufacturing and	100	100
		System (Wujiang)	sales of various
		Ltd. (DWV)	projectors
29	`〃`	Delta Electronics	Manufacturing and	100	100
		(Wuhu) Co., Ltd.	sales of LED light
		(DWH)	source, power
			supplies and others
30	`〃`	Delta Electronics	Manufacturing and	100	100
		(Chenzhou) Co., Ltd.	sales of transformers
		(DCZ)
31	`〃`	Cyntec Electronics	Research,	100	-	Note 24
		(Wuhu) Co., Ltd.	development,
		(CEWH)	manufacturing,
			processing and sales
			of new-type
			electronic
			components (chip
			components, sensing
			elements, hybrid
			integrated circuits)
			and molding as well
			as processing of
			semi-finished alloy
			steel powder; import
			and export of goods
			or technique
32	DHK and DIH	Delta Electronics	Sales of power	100	100
		International Mexico	management system
		S.A. DE C.V.	of industrial
		(DEIL-MX)	automation product
			and
			telecommunications
			equipment

~22~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019	Description
33	DHK	Delta Green	Manufacturing and	100	100
		(Tianjin) Industries	sales of transformers
		Co., Ltd. (DGT)
34	`〃`	Delta Electronics	Wholesale and retail	100	100
		(Pingtan) Co., Ltd.	of electronic products
		(Delta Pingtan)	and energy-saving
			equipment
35	DEJ	Addtron Technology	Trading of	100	100
		(Japan), Inc.	networking system
		(AT Japan)	and peripherals
36	`〃`	Delta Electronics	Sales of power	100	100
		(Korea), Inc.	products, display
		(Delta Korea)	solution products
			electronic
			components,
			industrial automation
			products and their
			materials
37	DCZ	Chenzhou Delta	Manufacturing and	100	100
		Technology Co., Ltd.	sales of transformers
		(CDT)
38	DDG and DPEC	Delta Energy	Research and	-	100	Note 4
		Technology	development of
		(Dongguan) Co., Ltd.	energy-saving
		(DET-DG)	technology, energy-
			saving equipment
			and energy
			management system
			as well as technology
			consulting service
39	DPEC and DGC	Delta Energy	Energy performance	100	100
		Technology	contracting,
		(Shanghai) Co., Ltd.	development of
		(DET-SH)	energy-saving
			technology, energy-
			saving equipment
			and energy
			management system
			as well as consulting
			service, installation,
			sales, etc.

~23~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019 Description
40	DNH	Delta Networks, Inc.	Equity investments	100	100
		(DNI Cayman)
41	DNI Cayman	Delta Networks (HK)	`〃`	100	100
		Limited (DNHK)
42	DNHK	Delta Networks	Manufacturing and	100	100
		(Dongguan) Ltd.	sales of other radio-
		(DII)	broadcast receivers
			and the equipment in
			relation to broadband
			access networking
			system
43	Cyntec	Fairview Assets Ltd.	Equity investments	100	100
		(Fairview)
44	Fairview	Grandview Holding	`〃`	100	100
		Ltd. (Grandview)
45	Grandview	Cyntec Holding (HK)	`〃`	100	100
		Limited. (CHK)
46	`〃`	Cyntec International	Trading	100	100
		Ltd. (CIL-Labuan)
47	CHK	Cyntec Electronics	Research,	100	100
		(Suzhou) Co., Ltd.	development,
		(CES)	manufacturing and
			sales of new-type
			electronic
			components (chip
			components, sensing
			elements, hybrid
			integrated circuits)
			and wholesale of
			similar products
48	DelBio	DelBio (Wujiang)	Manufacturing,	100	100
		Co., Ltd.	wholesale and retail
			of medical equipment
49	DIH	ELTEK AS	Research,	100	100
			development and
			sales of power
			supplies and others

~24~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019	Description
50	DEN	Castle Horizon	Equity investments	-	100	Note 5
		Limited
51	`〃`	Energy Dragon	`〃`	-	100	Note 5
		Global Limited
52	DIH	Delta Controls Inc.	Provide solutions to	100	100
		(DCI)	building
			management and
			control
53	`〃`	DELTA	Equity investments	100	100
		ELECTRONICS
		HOLDING (USA)
		INC.
54	ELTEK AS	ELTEK PAKISTAN	Sales of power	100	100
		(PRIVATE)	supplies and others
		LIMITED
55	`〃`	Eltek Deutschland	Sales of power	100	100
		GmbH	supplies and others
			and system
			installation
56	Delta Energy	ELTEK	`〃`	100	100	Note 6
	Systems	AUSTRALIA PTY
	(Singapore) PTE.	LIMITED
	LTD. / ELTEK AS
57	ELTEK AS	Eltek Egypt for	Sales of power	95	95
		Power Supply S.A.E.	supplies and others
58	`〃`	Eltek SGS Pvt Ltd.	Sales of power	100	100
			supplies and others
			and system
			installation
59	ELTEK AS and	Eltek SGS	Sales of power	51	51
	Eltek SGS Pvt Ltd.	Mechanics Pvt Ltd.	supplies and others
60	Delta Electronics	Eltek Polska Sp.	`〃`	100	51.04	Note 7
	(Poland) Sp. z o. o.	z o. o. (Eltek Polska)				Note 8
	/ ELTEK AS
61	ELTEK AS	ELTEK POWER	`〃`	100	100
		FRANCE SAS

~25~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019	Description
62	ELTEK AS		ELTEK LIMITED	Equity investments	100	100
				and trading
63		〃	ELTEK MEA	Sales of power	100	100
			DMCC	supplies and others
64	ELTEK	MEA	ELTEK KENYA	Sales of power	100	100
	DMCC	and	LIMITED	supplies
	ELTEK	AS
65		〃	ELTEK WEST	`〃`	100	100
			AFRICA LIMITED
66	ELTEK AS		Eltek Italia S.r.l.	Sales of power	100	100
				supplies and others
67		〃	Delta Electronics	Sales of power	100	100	Note 9
			(Sweden) AB	supplies
68		〃	Eltek Power (UK)	`〃`	100	100
			Ltd.
69	Delta Solutions		Eltek Power Oy	Sales of power	100	100	Note 10
	(Finland) Oy /			supplies and others
	ELTEK	AS
70	ELTEK AS		OOO Eltek	Sales of power	100	100
				supplies and others
				and system
				installation
71		`〃`	ELTEK ENERJI	Sales of power	-	100	Note 11
			SISTEMLERI	supplies and others
			LIMITED SIRKETI
72	Eltek Deutschland		Eltek Montage	Installation and	100	100
	GmbH		GmbH	maintenance of
				power supplies
73	DEIL-SG		ELTEK POWER	Sales of power	100	100
			INCORPORATED	supplies and others
74		`〃`	ELTEK POWER	`〃`	100	100	Note 12
			CO., LTD.

~26~

No.	Name of Investor DEIL-SG `〃` ELTEK LIMITED DHK DELTA ELECTRONICS HOLDING (USA) INC. DELTA ELECTRONICS (USA) INC. DEN and DELTA ELECTRONICS (USA) INC. `〃` `〃`	Name of Main Business Subsidiary Activities ELTEK POWER (CAMBODIA) LTD. Sales of power supplies and others ELTEK POWER (MALAYSIA) SDN. BHD. `〃` ELTEK CVI LIMITED Equity investments Eltek Energy Technology (Dongguan) Ltd. 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 DELTA ELECTRONICS (USA) INC. Manufacturing and sales of power supplies DELTA ELECTRONICS (ARGENTINA) S.R.L. Sales of power supplies and others Eltek Sistemas de Energia Industria e Commercio S.A. Manufacturing and sales of power supplies DELTA ELECTRONICS (PERU) INC. S.R.L. Sales of power supplies and others DELTA ELECTRONICS (COLOMBIA) S.A.S. `〃`	December December 31,2020 31,2019 Ownership (%) 100 100 100 100 - 100 100 100 100 100 100 100 100 100 100 100 100 100	Description
75 76 77 78 79 80 81 82 83				Note 13 Note 14

~27~

==> picture [467 x 42] intentionally omitted <==

No.	In	vestor	Subsidiary	Activities	31,2020	31,2019	Description
84	DELTA		Eltekenergy Services,	Sales of power	100	100
	ELECTRONICS		S.A. de C.V.	supplies and others
	(USA) INC. and
	DELTA
	ELECTRONICS
	HOLDING (USA)
	INC.
85		`〃`	Eltek energy	`〃`	100	100
			International de
			México, S. de R.L.
			de C.V.
86	DAL		Delta Electronics	Sales of electronic	100	100
			(Americas) Ltd.	components
87		`〃`	Delta Solar Solutions	Equity investments	100	100
			LLC
88	Delta Electronics		2009 PPA LLC	Sales of power	-	100	Note 15
	(Americas) Ltd.			supplies
89	Delta Solar		DSS-CI LLC	Rental of solar power	100	100
	Solutions LLC			systems
90		`〃`	DSS-USF LLC	`〃`	100	100
91	Cyntec		Power Forest	IC design of power	100	59.03	Note 16
			Technology	management
			Corporation
			(Power Forest)
92	DET-SH		Delta Energy	Energy technology,	100	100
			Technology Puhuan	development and
			(Shanghai) Co., Ltd.	consulting of
				environmental
				technical skills, and
				design and sales of
				energy saving
				equipment

~28~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019	Description
93	DEIL-SG	Loy Tec electronics	Consulting service of	100	100
		GmbH (Loy Tec)	building
			management and
			control solutions
94	Loy Tec	LOYTEC Americas,	`〃`	-	100	Note 14
		Inc.
95	DHK	Delta Electronics	Installation of	100	100
		(Beijing) Co., Ltd.	mechanic, electronic,
			telecommunication
			and circuit
			equipment
96	`〃`	Delta Electronics	Sales of computers,	100	100
		(Xi'an) Co., Ltd.	peripherals and
			software
97	Delta Electronics,	UNICOM SYSTEM	Design and sales of	-	100	Note 17
	Inc.	ENG. CORP.	computers,
		(UNICOM)	peripherals and
			information system
			(software and
			hardware)
98	UNICOM	Unicom (Nanjing)	`〃`	-	100	Note 18
		System Eng. Corp
99	DIH/Delta	Delta Electronics	Equity investments,	100	100	Note 19
	Greentech	(Switzerland) AG	research,
	(Netherlands) B.V.	(DECH)	development and
	and DIH		sales of electronic
			products
100	DEN/DEN and	Delta Greentech	Marketing and sales	100	100	Note 20
	Delta Greentech	Electronics Industry	of electronic products
	(Netherlands) B.V.	LLC
101	DEN and Delta	Delta Greentech	Manufacturing and	100	100
	Electronics (USA)	(Brasil) S.A. (DGB)	sales of electronic
	INC.		products
102	DECH	Delta Electronics	Sales of electronic	100	100
		(Czech Republic),	products
		spol. s.r.o.

~29~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Investor	Name of Subsidiary	Main Business Activities	Main Business Activities	December 31,2020	December 31,2019	Description
103	DECH		Delta Electronics	Sales of electronic		100	100
			(Italy) S.r.l.	products
104		″	Delta Electronics		″	100	100
			(Poland) Sp. z o.o.
105		″	Delta Solutions		″	100	100
			(Finland) Oy
106		″	Delta Electronics		″	100	100
			Solutions (Spain) SL
107	ELTEK	POWER	Delta Electronics		″	100	100	Note 21
	FRANCE SAS /		(France) SA
	DECH
108	Delta Electronics		Delta Energy		″	100	100	Note 22
	(Sweden)		Systems (Sweden)
	AB/DECH		AB
109	Delta Electronics,		Vivotek Inc.	Manufacturing and		52.65	49.87	Note 23
	Inc.		(Vivotek)	sales of video
				compression software
				and encoding,
				network	video server,
				webcam	and its
				related components
110	Vivotek	and	Vatics Inc.	Designing and sales		54.41	54.41
	Realwin			of multimedia
				integrated circuits
111	Vivotek		Vivotek Holdings,	Holding	company	100	100
			Inc.
112		″	Realwin Investment	Investment in the		100	100
			Inc. (Realwin)	network
				communications
				industry
113		″	Vivotek Netherlands	Sales service		100	100
			B.V.
114		″	Vivotek (Japan)		`〃`	100	100
			Inc.

~30~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019 Description
115	Vivotek Holdings,		Vivotek USA, Inc.	Sales of webcams	100	100
	Inc.			and related
				components
116		Realwin	Wellstates	Investment and	100	100
			Investment, LLC	commercial lease of
				real estate
117		Vivotek	Otus Imaging, Inc.	Sales of webcams	100	100
				and related
				components
118		Realwin	Aetek Inc.	`〃`	56.21	56.21
119		`〃`	Vivotek Middle East	`〃`	89.99	89.99
			FZCO
120		`〃`	Lidlight Inc.	Sales of lighting	51	51
				equipment
121		DEN	DELTA	Manufacturing and	100	100
			ELECTRONICS	sales of electronic
			BRASIL LTDA.	products
122	Delta Electronics,		Delta Electronics	Manufacturing and	63.78	63.78
	Inc.,	DEIL-SG and	(Thailand) Public	exporting power
	DIH		Company Limited	supplies, other
			(DET)	electronic parts and
				components
123		DET	DET International	Equity investments	100	100
			Holding Limited
124		`〃`	Delta Energy	Equity investments,	100	100
			Systems (Singapore)	trading, management
			PTE. LTD.	and consultancy
125		`〃`	Delta Green	Integration, sales,	100	100
			Industrial (Thailand)	trading, installation
			Co., Ltd.	and providing
				services of
				uninterruptible power
				supply, photovoltaic
				inverter, electric cars
				changer and data
				center

~31~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019	Description
126	DET	Delta Electronics	Sales of electronic	100	-	Note 24
		(Vietnam) Company	products
		Limited
127	DET International	DET Logistics (USA)	Providing logistics	100	100
	Holding Limited	Corporation	services in USA
128	`〃`	Delta Energy	Development,	100	100
		Systems (Germany)	marketing and sales
		GmbH	of electronic products
129	`〃`	Delta Energy	Marketing and sales	100	100
		Systems (India)	of electronic products
		Private Ltd.
130	DET International	Delta Electronics	Manufacturing and	100	100
	Holding Limited	(Slovakia) s.r.o.	sales of power
	and Delta		supplies, power
	Energy Systems		system and OEM
	(Singapore) PTE.		power system
	LTD.
131	DET International	Delta Energy	Research and	100	100
	Holding Limited	Systems (Romania)	development
		S.R.L.
132	Delta Energy	Delta Energy	Property rights	100	100
	Systems (Germany)	Systems Property	business
	GmbH	(Germany) GmbH
133	Delta Energy	Delta Electronics	Marketing and sales	100	100
	Systems	(Australia) Pty. Ltd.	of renewable energy
	(Singapore) PTE.		products
	LTD.
134	`〃`	Delta Electronics	Manufacturing and	100	100
		India Pvt. Ltd.	marketing of non-
			telecom power
			system and
			uninterruptible power
			supply, and sales of
			uninterruptible power
			supply

~32~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019 Description
135	Delta Energy	Delta Electronics	Manufacturing of	100	100
	Systems	(Myanmar) Co., Ltd.	electronic products
	(Singapore) Pte.		used in CMP
	Ltd.		manufacturing
			process and
			machinery
136	`〃`	Delta Energy	Research and	100	100
		Systems (UK) Ltd.	development of
			electronic products
137	`〃`	Delta PBA	Providing solutions	51	51
		Engineering	for industrial
		Solutions Co., Ltd.	automation
138	`〃`	Delta Greentech	Equity investments	100	100
		(Netherlands)
		Cooperatie U.A.
139	Delta Greentech	Delta Greentech	`〃`	100	100
	(Netherlands)	(Netherlands) B.V.
	Cooperatie U.A.
140	Delta Greentech	Delta Energy	Marketing and sales	100	100
	(Netherlands) B.V.	Systems LLC	of power systems
141	`〃`	Eltek s.r.o.	Manufacturing of	100	100
			telecom power
			system
142	`〃`	Delta Electronics	Research and	100	100
		(Automotive)	development of
		Americas Inc.	automotive power
			and traction inverter
143	DEN	Amerlux, LLC	Design and	100	100
		(Amerlux)	production of
			dedicated lighting
			system and facilities
144	Amerlux, LLC	Amerlux Lighting	Equity investments	100	100
		Asia, LLC

~33~

==> picture [467 x 42] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2020	December 31,2019	Description
145	Amerlux Lighting	Amerlux Lighting	Equity investments	100	100
	Asia, LLC	Hong Kong Limited
146	Amerlux Lighting	Guangzhou Amerlux	Wholesale of lighting	100	100
	Hong Kong	Lighting Co., Ltd.	fixture and
	Limited		decorative objects
147	DIH	Digital Projection	Equity investments	100	-	Note 24
		International Ltd.
		(DPI)
148	Digital Projection	Digital Projection	`〃`	100	-	Note 24
	International Ltd.	Holdings Ltd.
149	Digital Projection	Digital Projection	Research,	100	-	Note 24
	Holdings Ltd.	Ltd.	development and
			sales of projector
			products
150	Digital Projection	Digital Projection	Sales of projector	100	-	Note 24
	Ltd.	Inc.	products
151	DEN	Trihedral	Software and	100	-	Note 24
		Engineering Limited	associated
		(Trihedral)	engineering services
152	Trihedral	Trihedral Inc.	〃	100	-	Note 24
153	Trihedral Inc.	Trihedral UK	〃	100	-	Note 24
		Limited

Note 1: In 2020, PHK returned capital amounting to USD 5,250,000 and USD 8,000,000 to Delta Electronics, Inc. and DIH, respectively, due to the liquidation of the subsidiary, which is yet to be completed as at December 31, 2020.
Note 2: As described in Note 5, the investors were changed to Delta Electronics, Inc. and DEN.
Note 3: In December 2019, the company began liquidation process and was dissolved, but has not yet been completed as at December 31, 2020.
Note 4: This company had been liquidated in January 2020.
Note 5: This company had been liquidated in February 2020.
Note 6: In October 2020, ELTEK AS sold ELTEK AUSTRALIA PTY LIMITED to Delta Energy Systems (Singapore) Pte. Ltd.

~34~

Note 7: In July 2020, ELTEK AS acquired 48.96% equity interest in Eltek Polska, and the total shareholding ratio is 100%.
Note 8: In December 2020, ELTEK AS sold Eltek Polska Sp.z o.o. (Eltek Polska) to Delta Electronics (Poland) Sp.z o.o.
Note 9: Formerly named Eltek Power Sweden AB and was renamed as Delta Electronics (Sweden) AB in November 2020.
Note 10: In October 2020, ELTEK AS sold Eltek Power Oy to Delta Solutions (Finland) Oy.
Note 11: This company had been liquidated in December 2020.
Note 12: 55% of shares are held through others due to local regulations.
Note 13: 71% of shares are held through others due to local regulations.
Note 14: This company had been liquidated in September 2020.
Note 15: This company had been liquidated in November 2020.
Note 16: In July 2020, Cyntec acquired 43.6% equity interest in Power Forest, and the total shareholding ratio is 100%.
Note 17: Merged with the Company in December 2020.
Note 18: This company had been liquidated in October 2020.
Note 19: In October 2020, DIH acquired 49% equity interest in DECH from Delta Greentech (Netherlands) B.V., and the total shareholding ratio is 100%.
Note 20: In October 2020, DEN acquired 49% equity interest in Delta Greentech Electronics Industry LLC from Delta Greentech (Netherlands) B.V., and the total shareholding ratio is 100%.
Note 21: In November 2020, DECH sold Delta Electronics (France) SA to ELTEK POWER FRANCE SAS.
Note 22: In October 2020, DECH sold Delta Energy Systems (Sweden) AB to Eltek Power Sweden AB. (Renamed in November 2020, please refer to Note 9 for details.)
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 2020.
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.

~35~

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

As at December 31, 2020 and 2019, the non-controlling interest amounted to $32,690,303 and $34,197,565, respectively. The information on non-controlling interest and respective subsidiary is as follows:

Principal place Name of subsidiary ofbusiness Amount Vivotek Inc. (Vivotek) Taiwan $ 3,618,610 Delta Electronics (Thailand) Public Company limited (DET) Thailand 28,697,265 December	Ownership Ownership (%) Amount (%) 47.35% $ 3,932,420 50.13% 36.22% 29,761,580 36.22% Non-controllinginterest 31,2020 December31,2019

Summarised financial information of the subsidiary:

Balance sheet

Balance sheet
			DET
		December 31, 2020			December31,2019
Current assets		$	39,887,645		$	32,696,207
Non-current assets			58,101,498			62,551,578
Current liabilities	(		16,133,275)	(		10,944,593)
Non-current liabilities	(		2,293,690)	(		2,134,279)
Total net assets		$	79,562,178		$	82,168,913
			Vivotek
		December31,2020			December31,2019
Current assets		$	3,377,240		$	3,106,290
Non-current assets			6,112,662			6,452,452
Current liabilities	(		1,474,665)	(		1,307,013)
Non-current liabilities	(		372,977)	(		407,284)
Total net assets		$	7,642,260		$	7,844,445

~36~

Statement of comprehensive income

DET

Revenue

Profit before income tax Income tax expense

Profit for the year from continuing operations Other comprehensive income (loss), net of tax Total comprehensive income for the year Comprehensive income (loss) attributable to non-controlling interest Dividends paid to non-controlling interest

Revenue Profit before income tax Income tax expense

Profit for the year from continuing operations Other comprehensive loss, net of tax Total comprehensive income for the year Comprehensive (loss) income attributable to non-controlling interest

Dividends paid to non-controlling interest

==> picture [226 x 381] intentionally omitted <==

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

Years ended December 31,
2020 2019
$ 59,201,254 $ 50,644,767
5,296,072 1,754,400
( 194,453) ( 18,852)
5,101,619 1,735,818
76,398 ( 1,006,786)
$ 5,178,017 $ 729,032
$ 1,885,272 ($ 153,674)
$ 767,376 $ 2,184,585
Vivotek
Years ended December 31,
2020 2019
$ 5,544,433 $ 6,573,617
88,666 118,133
( 55,329) ( 66,991)
33,337 51,142
( 17,700) ( 9,853)
$ 15,637 $ 41,289
($ 2,513) $ 1,442
$ 108,073 $ 104,890
----- End of picture text -----

Statements of cash flows

Statements of cash flows
			DET
			Years ended	December31,
			2020		2019
Net cash provided by operating activities		$	6,774,586	$	5,112,438
Net cash used in investing activities	(		3,380,819)	(	4,915,661)
Net cash used in financing activities	(		2,182,722)	(	2,839,443)
Effect of exchange rates on cash and cash
equivalents	(		793,745)		280,456
Increase (decrease) in cash and cash equivalents			417,300	(	2,362,210)
Cash and cash equivalents, beginning of year			12,626,085		14,877,311
Cash and cash equivalents, end of year		$	13,043,385	$	12,515,101

~37~

Vivotek

			Years ended	December31,	December31,	December31,
			2020			2019
Net cash provided by operating activities		$	501,406		$	810,131
Net cash used in investing activities	(		26,421)	(		220,047)
Net cash used in financing activities	(		56,787)	(		365,874)
Effect of exchange rates on cash and cash
equivalents	(		16,397)	(		8,709)
Increase in cash and cash equivalents			401,801			215,501
Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year		$	1,023,213 1,425,014		$	807,712 1,023,213

(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.

~38~

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.

~39~

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. Financial assets at amortised cost or fair value through other comprehensive income are designated as at fair value through profit or loss at initial recognition when they eliminate or significantly reduce a measurement or recognition inconsistency.
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.

~40~

C. Financial assets at fair value through other comprehensive income 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 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 direct costs and related production overheads (allocated based on normal operating capacity).

~41~

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 the 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 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

~42~

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.

(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

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

~43~

as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

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

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

(17) 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.

(18) 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.

(19) 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,

~44~

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 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.

(20) 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.

(21) 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.

(22) 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.

(23) 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.

~45~

(24) 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.

(25) 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 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.

(26) 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

~46~

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 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.

~47~

(27) Employee benefits

A. Pensions

(a) Defined contribution plan

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

(b) Defined benefit plan

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

- (28) 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.

~48~

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.

(29) 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 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

~49~

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.

(30) 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.

(31) 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.

(32) Revenue recognition
A. Sales of goods
(a) The Group manufactures and sells power supply of computers, information technology, vehicles and electrical machines, automation equipment and related components products. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.
(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.

~50~

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 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.

(33) 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.

(34) 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

~51~

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.

(35) 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 JUDGEMENTS, 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.

~52~

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
	December 31, 2020		December 31, 2019
Cash on hand	$	5,437	$	6,941
Checking accounts and demand deposits		44,121,426		30,808,159
Time deposits		14,446,742		13,144,901
Cash equivalents		138,380		-
	$	58,711,985	$	43,960,001

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.

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

AssetItems		December	31,2020		December	31,2019
Current items:
Financial assets mandatorily measured
at fair value through profit or loss
Listed stocks		$	446,452		$	541,143
Derivatives			290,505			142,668
Hybrid instrument-Convertible bonds			47,827			87,578
			784,784			771,389
Valuation adjustment			276,559			351,069
		$	1,061,343		$	1,122,458
Non-current items:
Financial assets mandatorily measured
at fair value through profit or loss
Listed stocks		$	368,048		$	499,290
Emerging stocks			289,600			81,000
Unlisted stocks			1,572,384			2,247,846
Hybrid instrument-Convertible bonds			974,983			-
			3,205,015			2,828,136
Valuation adjustment	(		262,819)	(		602,897)
		$	2,942,196		$	2,225,239
LiabilityItems
Current items:
Valuation adjustment
of derivatives		$	60,060		$	15,929

A. The Group has recognised financial assets and liabilities at fair value through profit or loss of $71,489 and $365,965 for the years ended December 31, 2020 and 2019, respectively.
B. Explanations of the transactions and contract information in respect of derivative financial assets

~53~

and liabilities that the Group does not adopt hedge accounting are as follows:

December 31, 2020

- Sell AUD / Buy USD AUD 7,250 - Sell BRL / Buy USD BRL 18,121 - Sell EUR / Buy NOK EUR 9,000 - Sell EUR / Buy USD EUR 39,500 - Sell GBP / Buy NOK GBP 1,500 - Sell INR / Buy USD INR 442,905 - Sell JPY / Buy USD JPY 1,783,610 - Sell THB / Buy JPY THB 26,113 - Sell USD / Buy JPY USD 3,700 - Sell USD / Buy NOK USD 7,000 - Sell USD / Buy RMB USD 309,009 - Sell USD / Buy SGD USD 26,305 - Sell USD / Buy THB USD 170,000 - Sell USD / Buy AUD USD 706 - Sell USD / Buy CZK USD 400 - Sell HKD / Buy USD HKD 90,000 - Sell EUR / Buy NOK EUR 13,955 - Sell RUB / Buy USD RUB 74,720 - Sell SEK / Buy NOK SEK 30,000 - Sell USD / Buy NOK USD 2,000 Cross currency swap: Contract amount (nominal Financial instruments principal) (inthousands) Forward exchange contracts:	Contract period
	2020.08.24~2021.05.04 2020.12.04~2021.02.04 2020.10.28~2021.05.06 2020.07.15~2021.06.02 2020.12.21~2021.02.04 2020.12.16~2021.01.28 2020.07.24~2021.05.19 2020.11.17~2021.03.26 2020.11.30~2021.02.25 2020.12.03~2021.04.08 2020.10.12~2021.04.09 2020.07.03~2021.05.03 2020.09.22~2021.04.02 2020.10.29~2021.03.03 2020.12.21~2021.01.21 2020.11.02~2021.05.04 2020.09.03~2021.03.04 2020.12.04~2021.02.04 2020.12.23~2021.06.30 2020.12.07~2021.01.06

- Sell AUD / Buy USD
AUD
7,250

- Sell BRL / Buy USD
BRL
18,121

- Sell EUR / Buy NOK
EUR
9,000

- Sell EUR / Buy USD
EUR
39,500

- Sell GBP / Buy NOK
GBP
1,500
- Sell INR / Buy USD
INR
442,905
- Sell JPY / Buy USD
JPY
1,783,610
- Sell THB / Buy JPY
THB
26,113
- Sell USD / Buy JPY
USD
3,700
- Sell USD / Buy NOK
USD
7,000
- Sell USD / Buy RMB
USD
309,009
- Sell USD / Buy SGD
USD
26,305
- Sell USD / Buy THB
USD
170,000
- Sell USD / Buy AUD
USD
706
- Sell USD / Buy CZK
USD
400
- Sell HKD / Buy USD
HKD
90,000
- Sell EUR / Buy NOK
EUR
13,955
- Sell RUB / Buy USD
RUB
74,720
- Sell SEK / Buy NOK
SEK
30,000
- Sell USD / Buy NOK
USD
2,000
Cross currency swap:
Contract amount (nominal
Financial instruments
principal) (inthousands)
Forward exchange contracts:

Contract period

2020.08.24~2021.05.04
2020.12.04~2021.02.04
2020.10.28~2021.05.06
2020.07.15~2021.06.02
2020.12.21~2021.02.04
2020.12.16~2021.01.28
2020.07.24~2021.05.19
2020.11.17~2021.03.26
2020.11.30~2021.02.25
2020.12.03~2021.04.08
2020.10.12~2021.04.09
2020.07.03~2021.05.03
2020.09.22~2021.04.02
2020.10.29~2021.03.03
2020.12.21~2021.01.21
2020.11.02~2021.05.04
2020.09.03~2021.03.04
2020.12.04~2021.02.04
2020.12.23~2021.06.30
2020.12.07~2021.01.06

~54~

- 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 Financial instruments Forward exchange contracts: Cross currency swap:	December31,2019	December31,2019
	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) (inthousands)	Contract period
		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

The Group entered into forward exchange contracts and cross currency swap to manage exposures to foreign exchange rate fluctuations of import or export sales, loans between related parties 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).

~55~

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

==> picture [467 x 202] intentionally omitted <==

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

Items December 31, 2020 December 31, 2019
Current items:
Equity instruments
Listed stocks $ - $ 1,559,472
Valuation adjustment - ( 1,239,649)
$ - $ 319,823
Non-current items:
Equity instruments
Listed stocks $ 1,608,699 $ 2,301,004
Unlisted stocks 672,828 690,945
2,281,527 2,991,949
Valuation adjustment ( 353,844) ( 1,194,648)
$ 1,927,683 $ 1,797,301
----- End of picture text -----

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 $1,927,683 and $2,117,124 as at December 31, 2020 and 2019, respectively.
B. For the years ended December 31, 2020 and 2019, the Group sold listed stocks whose fair value were $501,867 and $1,114,871, respectively, to adjust the stock position, resulting to an accumulated loss on disposal and valuation of $1,754,186 and $635,782, 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,
		2020		2019
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
comprehensive income	$	326,268	$	200,079
Cumulative loss reclassified to retained
earnings due to derecognition	($	1,754,186)	($	635,782)

D. As at December 31, 2020 and 2019, 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 $1,927,683 and $2,117,124, respectively.
E. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

~56~

(4) Hedging financial assets and liabilities

A. As at December 31, 2020 and 2019, there were no financial assets and liabilities used for hedging.
B. Information on cash flow hedges and hedges of net investments in foreign operations recognised as profit or loss and other comprehensive income:

==> picture [457 x 340] intentionally omitted <==

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

Hedges of net
investments in
Cash flow hedges foreign operations
Other equity
-
At January 1, 2020 $ $ 147,256
Add: Loss on hedge effectiveness-
amount recognised in other
-
comprehensive income ( 16,640)
Less: Reclassified to profit or loss as the
hedged item has affected profit or loss - -
-
At December 31, 2020 $ $ 130,616
Hedges of net
investments in
Cash flow hedges foreign operations
Other equity
-
At January 1, 2019 $ $ 131,152
Add: (Loss) gain on hedge effectiveness-
amount recognised in other
comprehensive income ( 6,124) 16,104
Less: Reclassified to profit or loss as the
-
hedged item has affected profit or loss 6,124
At December 31, 2019 $ - $ 147,256
----- End of picture text -----

(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, 2020 and 2019 are recycled into profit or loss in the period or periods when the hedged item affects profit or loss.
(b) Since the hedging instrument for cash flow hedge expired and the hedging relationship ceased to meet the qualifying criteria, the accumulated amount in the cash flow hedge reserve had been reclassified to profit or loss.
(c) 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.

~57~

(5) Notes and accounts receivable

Notes and accounts receivable
		December31,2020			December31,2019
Notes receivable		$	3,733,595		$	3,816,628
Accounts receivable		$	59,684,699		$	53,964,299
Less: Allowance for uncollectible accounts	(		507,266)	(		1,009,193)
		$	59,177,433		$	52,955,106
Overdue receivables
(shown as other non-current assets)		$	354,282		$	213,405
Less: Allowance for uncollectible accounts	(		354,282)	(		213,405)
		$	-		$	-
A. The aging analysis of accounts receivable is	as follows:
		December 31, 2020			December31,2019
Not past due		$	53,882,398		$	46,818,016
1 to 90 days			4,910,665			5,540,091
91 to 180 days			280,675			324,836
181 to 365 days			87,524			249,331
Over 366 days			16,171			22,832
		$	59,177,433		$	52,955,106

A. The aging analysis of accounts receivable is as follows:

The above aging analysis was based on past due date.

B. As at December 31, 2020 and 2019, there was no notes receivable past due.
C. As at December 31, 2020 and 2019, accounts receivable and notes receivable were all from contracts with customers. As at January 1, 2019, the balance of receivables from contracts with customers amounted to $56,144,727.
D. The Group has no notes receivable and accounts receivable pledged to others as collateral.
E. As at December 31, 2020 and 2019, 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 $3,733,595 and $3,816,628, and accounts receivable were $59,177,433 and $52,955,106, 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, 2020 and 2019, the relevant information on unsettled accounts receivable that were sold is set forth below:

~58~

December 31, 2020

Purchaser of accounts receivable Taishin International Bank Purchaser of accounts receivable Taishin International Bank	Accounts receivable transferred 14,300 $ Accounts receivable transferred 57,743 $	Amount Interest rate Amount Amount available for of amount derecognised Facilities advanced advance advanced - $ 280,950 $ - $ - $ - Amount Interest rate Amount Amount available for of amount derecognised Facilities advanced advance advanced - $ 299,800 $ - $ - $ - December 31, 2019

(7) Inventories

Inventories
Raw materials Work in process Finished goods Inventory in transit Raw materials Work in process Finished goods Inventory in transit		December 31, 2020
	Allowance for Cost valuation loss 17,738,335 $ 2,591,648) ($ 5,407,195 8,298) ( 27,192,237 3,897,457) ( 1,049,065 - 51,386,832 $ 6,497,403) ($ 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) ($ December31,2019		Book value
			15,146,687 $ 5,398,897 23,294,780 1,049,065
			44,889,429 $
			Book value
			10,756,215 $ 4,193,856 23,847,609 518,743
			39,316,423 $

The Group recognised as expense or loss:

The Group recognised as expense or loss:
			Years ended	December31,
			2020		2019
Cost of goods sold		$	190,732,108	$	187,469,554
Loss on market value decline and obsolete and
slow-moving inventories			502,171		1,794,257
Others	(		654,512)	(	647,439)
		$	190,579,767	$	188,616,372

~59~

(8) Investments accounted for under the equity method

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

Name of associates Ownership % Book value Optovue, Inc. 29.50 728,129 $ Digital Projection International Ltd. (DPI) (Note) (Note) Others 56,873 785,002 $ December 31, 2020	Ownership % Book value 29.50 842,043 $ 41.00 240,059 56,818 1,138,920 $ December 31, 2019

Note: On January 6, 2020, the subsidiary, DIH, acquired 59% equity interest in DPI, and the total equity interest of DPI held by the Group is 100%. Therefore, the Group has control over DPI, and DPI is included in the consolidated financial statements.

B. For the years ended December 31, 2020 and 2019, the share of (loss) profit of associates were ($59,596) and $141,877, respectively.
C. The share of profit (loss) and other comprehensive income (loss) of DET (an associate of the Group, which was included in the Group’s consolidated financial statements on April 2, 2019) for the three months ended March 31, 2019 was recognised based on the financial statements audited by other independent auditors.
D. 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, 2020 and 2019, the carrying amount of the Group’s individually immaterial associates amounted to $785,002 and $1,138,920, respectively.

		Years ended	December 31,	December 31,
		2020		2019
Loss for the year from continuing operations	($	59,596)	($	100,862)
Other comprehensive income, net of tax		55,073		17,156
Total comprehensive loss	($	4,523)	($	83,706)

E. The Group is the single largest shareholder of Optovue, Inc. with a 29.5% equity interest. Given that other top ten shareholders (non-related parties) hold more shares than the Group and there is no agreement among shareholders to consult with each other or to make decisions collectively, which indicates that the Group has no ability to direct the relevant decision of Optovue, Inc., the Group has no control, but only has significant influence, over the investee.

~60~

(9) Property, plant and equipment

Property, plant and equipment
																		Unfinished
																		construction
					Buildings and			Machinery and				Testing					and equipment
At January 1, 2020			Land			structures			equipment			equipment			Others	under acceptance					Total
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
2020
Opening net book amount		$	14,353,856		$	23,199,218		$	12,466,586		$	3,519,571		$	4,311,307		$	5,740,443		$	63,590,981
Additions			102,384			353,648			4,754,048			2,247,433			1,857,628			8,523,315			17,838,456
Acquired through business combinations			-			-			-			-			53,887			-			53,887
Disposal	(		9,079)	(		24,193)	(		125,441)	(		74,671)	(		31,625)			-	(		265,009)
Transfer			31,021			1,138,099			1,581,636			352,929			286,109	(		3,389,794)			-
Depreciation charge			-	(		1,859,147)	(		4,890,313)	(		2,173,864)	(		2,460,392)			-	(		11,383,716)
Net exchange differences	(		222,028)	(		347,881)	(		315,223)	(		35,743)	(		189,933)	(		281,816)	(		1,392,624)
Closing net book amount		$	14,256,154		$	22,459,744		$	13,471,293		$	3,835,655		$	3,826,981		$	10,592,148		$	68,441,975

At December 31, 2020
Cost		$	14,267,858		$	44,204,419		$	45,515,093		$	18,755,289		$	19,836,201		$	10,592,148		$	153,171,008
Accumulated depreciation and
impairment	(		11,704)	(		21,744,675)	(		33,043,800)	(		14,919,634)	(		16,009,220)			-	(		85,729,033)
		$	14,256,154		$	22,459,744		$	12,471,293		$	3,835,655		$	3,826,981		$	10,592,148		$	67,441,975

~61~

																	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
Disposals	(		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 impairment 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 machinery and equipment and structures and other equipment that was assessed for reuse in the future. Such reversal of impairment loss was recognised in other operating income and expenses.

~62~

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.
(10) Leasing arrangements - lessee
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 Land Buildings and structures Transportation equipment Other equipment	December31,2020 December31,2019 Bookvalue Bookvalue 1,602,097 $ 1,683,784 $ 1,323,106 1,321,468 71,012 86,200 24,531 22,381 3,020,746 $ 3,113,833 $ Years ended December 31,	December31,2019
		Bookvalue
		1,683,784 $ 1,321,468 86,200 22,381
		3,113,833 $
	2020 Depreciationcharge 47,402 $ 504,582 78,484 9,923 640,391 $	2019
		Depreciation charge
		49,250 $ 476,602 90,444 9,041
		625,337 $

C. For the years ended December 31, 2020 and 2019, the additions to right-of-use assets (excluding those acquired through business combinations) were $459,434 and $335,118, respectively.
D. 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	Years ended December31,	Years ended December31,
	2020 23,970 $ 474,400 $	2019
		23,962 $
		397,481 $

E. For the years ended December 31, 2020 and 2019, the Group’s total cash outflow for leases were $1,015,450 and $1,007,692, respectively.

~63~

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.
(11) Investment property

==> picture [470 x 368] intentionally omitted <==

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

Buildings and
Land structures Total
At January 1, 2020 / December 31, 2020
Cost $ 14,070 $ - $ 14,070
- - -
Accumulated depreciation and impairment
$ 14,070 $ - $ 14,070
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
----- End of picture text -----

(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.

~64~

A. The Group has no direct operating expenses arising from the investment property for the years ended December 31, 2020 and 2019. Rental income from the lease of the investment property is shown below:

shown below:
	Years ended	December31,
	2020	2019
Rental income from the lease of the
investment property	1,289 $	6,747 $

B. The fair value of the investment property held by the Group, which is the land used for water conservation, as at December 31, 2020 and 2019 cannot be reliably measured because the comparable market transactions are infrequent and alternative reliable estimates of fair value are not available.

~65~

(12) Intangible assets

Intangible assets
											Customer			Technical
At January 1, 2020		Trademarks				Patents		Goodwill		Relationship				Skill			Others			Total
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
2020
Opening net book amount		$	2,980,130		$	547,823	$	56,533,663		$	11,224,987		$	9,827,800		$	1,318,250		$	82,432,653
Additions - acquired separately			-			69,252		-			-			-			615,509			684,761
Additions - acquired through
business combinations			154,346			-		807,318			186,692			186,692			814			1,335,862
Reclassifications (Note)			-			-	(	27,626)			-			-			-	(		27,626)
Amortisation	(		253,418)	(		158,668)		-	(		1,622,151)	(		1,140,201)	(		671,611)	(		3,846,049)
Impairment loss			-			-	(	801,712)			-			-			-	(		801,712)
Net exchange differences	(		117,505)			13,975	(	3,011,851)	(		548,343)	(		560,500)	(		94,035)	(		4,318,259)
Closing net book amount		$	2,763,553		$	472,382	$	53,499,792		$	9,241,185		$	8,313,791		$	1,168,927		$	75,459,630

At December 31, 2020
Cost		$	3,943,732		$	1,979,798	$	54,297,182		$	17,495,795		$	11,376,981		$	4,227,079		$	93,320,567
Accumulated amortisation and
impairment	(		1,180,179)	(		1,507,416)	(	797,390)	(		8,254,610)	(		3,063,190)	(		3,058,152)	(		17,860,937)
		$	2,763,553		$	472,382	$	53,499,792		$	9,241,185		$	8,313,791		$	1,168,927		$	75,459,630

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

~66~

											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~

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

		Years ended	December31,	December31,
		2020		2019
Operating costs	$	52,763	$	54,977
Selling expenses		1,883,098		1,619,163
Administrative expenses		136,049		227,735
Research and development expenses		1,774,139		1,170,976
	$	3,846,049	$	3,072,851

==> picture [59 x 27] intentionally omitted <==

B. The Group acquired registered or under-application trademark rights such as

==> picture [46 x 21] intentionally omitted <==

==> picture [61 x 18] intentionally omitted <==

==> picture [42 x 17] intentionally omitted <==

, , 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 cash-generating units identified according to operating segment:

Goodwill: DET Cyntec Eltek Vivotek DCI DGC Amerlux Loy Tec Others Trademarks: Automation business Infrastructure business	December31,2020 33,405,219 $ 5,146,053 4,840,681 3,232,954 2,330,895 1,614,985 1,089,838 510,026 1,329,141 53,499,792 $ 691,811 $ 386,823 1,078,634 $	December31,2019
		35,646,502 $ 5,146,053 5,165,460 3,232,954 2,487,284 1,723,340 1,189,170 1,386,683 556,217
		56,533,663 $
		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.

D. As at December 31, 2020, the Group’s goodwill arose from business combinations amounting to $53,499,792 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

~68~

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.

As for the impairment of goodwill and trademarks with indefinite useful lives, except for the goodwill of DET and Vivotek of $36,638,173 which was evaluated by using their recoverable amount during the impairment test, the recoverable amount is the companies’ fair value less costs of disposal, estimated by reference to the closing price at the balance sheet date and the fair value is classified as a level 1 fair value; goodwill and trademarks with indefinite useful lives of other companies were $16,861,619 and $1,078,634, respectively, and the impairment is calculated based on value in use and carrying amount of net assets of each company. 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.

As the recoverable amount of the cash-generating unit, Loy Tec (the reportable segment is automation business), calculated using the value-in use is less than the carrying amount, the Group recognised impairment loss of $801,712 for the goodwill for the year ended December 31, 2020. The discount rate used in calculating value-in-use was 8.89% and 9.18% on December 31, 2020 and 2019, respectively.

(13) Other non-current assets

Other non-current assets
Short-term borrowings Prepayments for business facilities Guarantee deposits paid Other financial assets Prepayments for long-term investments Cash surrender value of life insurance Others Unsecured bank loans Credit lines Interest rate range	December31,2020 846,839 $ 256,693 187,257 81,059 43,512 524,227 1,939,587 $ December31,2020 2,001,532 $ 69,185,543 $ 0.39%~4.85%	December31,2019
		1,101,540 $ 333,011 49,505 72,259 53,953 572,091
		2,182,359 $
		December31,2019
		7,575,932 $
		73,937,712 $
		0.40%~9.15%

(14) Short-term borrowings

~69~

- (15) Long term borrowings

==> picture [470 x 142] intentionally omitted <==

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

Type of borrowings December 31, 2020 December 31, 2019
Credit loans $ 39,008,242 $ 27,439,702
Collateral loans 353,865 374,673
39,362,107 27,814,375
Less: Current portion
(shown as other current liabilities) ( 48,117) ( 65,536)
$ 39,313,990 $ 27,748,839
Credit lines $ 83,362,621 $ 78,477,044
Interest rate range 0.31%~6.23% 0.38%~6.23%
----- End of picture text -----

A. As at December 31, 2020, the revolving loans of $38,618,445 can be drawn down during the period from June 29, 2020 to August 31, 2022 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 plan
(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.

~70~

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, Switzerland and Norway, etc. have 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	31,2020	December	31,2019
Present value of defined benefit obligations	($	7,184,319)	($	6,773,098)
Fair value of plan assets		3,217,532		2,879,342
Net defined benefit liability	($	3,966,787)	($	3,893,756)

~71~

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

				2020
		Present value of
		defined benefit		Fair value of		Net defined
		obligations		plan assets		benefit liability
Balance at January 1	($	6,773,098)	$	2,879,342	($	3,893,756)
Current service cost	(	113,945)		-	(	113,945)
Interest (expense) income	(	66,649)		19,225	(	47,424)
Past service cost		6,580		-		6,580
	(	6,947,112)		2,898,567	(	4,048,545)
Remeasurements:
Return on plan assets
(excluding amounts
included in interest
income or expense)		-		82,663		82,663
Change in demographic
assumptions	(	18,966)		-	(	18,966)
Change in financial
assumptions	(	203,840)		-	(	203,840)
Experience adjustments		23,562		-		23,562
	(	199,244)		82,663	(	116,581)
Pension fund contribution		-		394,992		394,992
Paid pension		301,973	(	189,538)		112,435
Exchange difference	(	323,193)		16,956	(	306,237)
Effect of business
combination	(	16,743)		13,892	(	2,851)
Balance at December 31	($	7,184,319)	$	3,217,532	($	3,966,787)

~72~

2019

				2019
		Present value of
		defined benefit		Fair value of		Net defined
		obligations		planassets		benefitliability
Balance at January 1	($	5,184,155)		2,587,234 $	($	2,596,921)
Current service cost	(	101,679)		-	(	101,679)
Interest (expense) income	(	84,703)		28,367	(	56,336)
Past service cost	(	107,552)		-	(	107,552)
	(	5,478,089)		2,615,601	(	2,862,488)
Remeasurements:
Return on plan assets
(excluding amounts
included in interest
income or expense)		-		67,663		67,663
Change in demographic
assumptions	(	208,978)		-	(	208,978)
Change in financial
assumptions	(	144,134)		-	(	144,134)
Experience adjustments		11,860		-		11,860
	(	341,252)		67,663	(	273,589)
Pension fund contribution		-		312,549		312,549
Paid pension		235,907	(	164,580)		71,327
Exchange difference		16,925		10,989		27,914
Effect of business
combination	(	1,206,589)		37,120	(	1,169,469)
Balance at December 31	($	6,773,098)	$2,879,342		($	3,893,756)

(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-the-counter, 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

~73~

deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being 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, 2020 and 2019 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	2020 2019 0.18%~6.65% 0.25%~7.7% 1.0%~9.0% 1.0%~9.0% Years endedDecember31,	2020 2019 0.18%~6.65% 0.25%~7.7% 1.0%~9.0% 1.0%~9.0% Years endedDecember31,
		1.0%~9.0%

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:

obligation is affected. The analysis is as follows:
Increase Decrease 0.25%~1% 0.25%~1% December 31, 2020 Effect on present value of defined benefit obligation 288,249) ($ 322,744 $ Increase Decrease 0.25%~1% 0.25%~1% December 31, 2019 Effect on present value of defined benefit obligation 252,834) ($ 315,692 $ Discountrate Discountrate	Increase Decrease 0.25%~2.75% 0.25%~2.75% 229,378 $ 213,586) ($ Future salaryincreases Future salaryincreases
	Increase Decrease 0.25%~1% 0.25%~1% 187,364 $ 135,052) ($	Decrease 0.25%~1%

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, 2021 amount to $149,232.
(h) As at December 31, 2020, the weighted average duration of that retirement plan is 9~21 years.

~74~

B. Defined contribution plan

(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, 2020 and 2019 were $483,851 and $465,201, 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, 2020, 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 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.

~75~

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, 2020, there were 942 thousand units outstanding, representing 4,712 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, 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 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

~76~

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 Order No. Financial-Supervisory-Securities-Corporate1010012865, 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 2019 and 2018 earnings had been approved by the shareholders during their meeting on June 10, 2020 and June 10, 2019, respectively. Details are summarised below:

			Years ended	December31,
	2019			2018
			Dividends			Dividends
			per share			per share
	Amount		(indollars)	Amount		(indollars)
Legal reserve appropriated	2,311,780 $			1,819,310 $
Special reserve appropriated	61,002			472,889
Cash dividends	12,987,717	$	5.0	12,987,717	$	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 2020 earnings had been proposed by the Board of Directors on February 24, 2021. Details are summarised below:

24, 2021. Details are summarised below:
Legal reserve appropriated Special reserve appropriated Cash dividends	Dividends per share Amount (indollars) 2,355,218 $ 4,921,173 14,286,488 5.5 $ Year ended December31,2020
		5.5 $

(20) Non-controlling interest

Non-controlling interest
			Years ended	December31,
			2020		2019
At January 1		$	34,197,565	$	9,189,749
Share attributable to non-controlling interest:
Profit for the year			1,899,108		809,959
Currency translation differences	(		2,154,765)		890,552
Dividends paid to minority interest	(		895,326)	(	2,320,171)
Increase in non-controlling interest (Note 1)			-		30,575,137
Decrease in non-controlling interest (Note 2)	(		356,279)	(	4,947,661)
At December 31		$	32,690,303	$	34,197,565

~77~

(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 Vivotek, Power Forest, Eltek Polska, Loy Tec and DIH during the years ended December 31, 2020 and 2019, respectively. Details are provided in Note 6(32).

(21) Operating revenue

Operating revenue
	0		Years ended	December31,
			2020	2019
Revenue from contracts with customers		$	282,605,493	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:

Power electronics 155,421,208 $ 155,416,602 4,606 155,421,208 $	Automation Infrastructure Others 38,773,146 $ 88,188,000 $ 223,139 $ 35,658,814 82,977,247 94,991 3,114,332 5,210,753 128,148 38,773,146 $ 88,188,000 $ 223,139 $ Year ended December31,2020 Year ended December 31, 2019	Automation Infrastructure Others 38,773,146 $ 88,188,000 $ 223,139 $ 35,658,814 82,977,247 94,991 3,114,332 5,210,753 128,148 38,773,146 $ 88,188,000 $ 223,139 $ Year ended December31,2020 Year ended December 31, 2019	Automation Infrastructure Others 38,773,146 $ 88,188,000 $ 223,139 $ 35,658,814 82,977,247 94,991 3,114,332 5,210,753 128,148 38,773,146 $ 88,188,000 $ 223,139 $ Year ended December31,2020 Year ended December 31, 2019	Total
				282,605,493 $
				274,147,654 8,457,839
				282,605,493 $

Power electronics 133,069,546 $ 132,559,649 509,897 133,069,546 $	Automation 37,603,452 $ 33,396,134 4,207,318 37,603,452 $	Infrastructure 97,083,943 $ 91,865,775 5,218,168 97,083,943 $	Others 374,456 $ 334,732 39,724 374,456 $	Total
				268,131,397 $
				258,156,290 9,975,107
				268,131,397 $

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 year is as follows:

~78~

Years ended December 31, 2020 2019

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.

$ 3,352,208 $ 2,643,318

(22) Interest income

Interest income
Other income Interest income from bank deposits Other interest income Sample sales income Dividend income Testing fee income Mold fee income Rental income Others	2020 2019 541,816 $ 884,980 $ 2,331 1,557 544,147 $ 886,537 $ Years ended December31, Years ended December 31,
	2020 299,528 $ 190,171 168,577 142,251 133,521 3,005,773 3,939,821 $	2019
		252,513 $ 282,302 133,634 248,747 132,678 2,100,755
		3,150,629 $

(23) Other income

(24) Other gains and losses

Other gains and losses Mold fee income Rental income Others	$	142,251 133,521 3,005,773 3,939,821	248,747 132,678 2,100,755 3,150,629 $	248,747 132,678 2,100,755 3,150,629 $	248,747 132,678 2,100,755 3,150,629 $
		Years ended	December 31,
		2020			2019
Loss on disposal of property, plant and
equipment	($	67,529)	($		56,441)
(Loss) gain on disposal of investments (Note 1)	(	95,654)			6,001,894
Net currency exchange gain		399,073			454,685
Gain on financial assets/liabilities at fair
value through profit or loss		71,489			365,965
(Impairment loss) reversal of impairment loss
Reversal of impairment loss on property, plant
and equipment		-			90,215
Impairment loss on intangible assets (Note 2)	(	801,712)			-
Miscellaneous disbursements	(	704,723)	(		551,873)
	($	1,199,056)		$	6,304,445

~79~

(Note 1) The Group recognised a gain (loss) as a result of measuring at fair value its 41% and 20.93% equity interest in DPI and DET, respectively, held before the business combination. Please refer to Note 6(31) for more information.

(Note 2) Please refer to Note 6(12) for more information.

(25) Finance costs

Expenses by nature Interest expense Loss on hedging instruments Employee benefit expense Depreciation charges on property, plant and equipment Depreciation charges on right-of-use assets Amortisation charges on intangible assets	2020 2019 375,837 $ 731,745 $ - 6,124 $ 375,837 $ 737,869 Years ended December31, 2020 2019 60,812,227 $ 55,884,650 $ 11,383,716 10,287,257 640,391 625,337 3,846,049 3,072,851 76,682,383 $ 69,870,095 $ Years endedDecember31,

(26) Expenses by nature

(27) Employee benefit expense

Employee benefit expense equipment Depreciation charges on right-of-use assets Amortisation charges on intangible assets	11,383,716 10,287,257 640,391 625,337 3,846,049 3,072,851 76,682,383 $ 69,870,095 $	11,383,716 10,287,257 640,391 625,337 3,846,049 3,072,851 76,682,383 $ 69,870,095 $
Post-employment benefits Defined contribution plan Defined benefit plan Other employee benefits	Years endedDecember31,
	2020 902,005 $ 154,789 1,056,794 59,755,433 60,812,227 $	2019
		955,204 $ 247,409
		1,202,613 54,682,037
		55,884,650 $

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, 2020 and 2019, employees’ compensation was accrued at $3,181,712 and $2,347,652, respectively; while directors’ remuneration was accrued at $42,407 and $59,902, respectively. The aforementioned amounts were recognised in salary expenses.

For the year ended December 31, 2020, 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 $2,421,097 and directors’ remuneration of $29,400 for 2020 were resolved by the Board of Directors on February 24, 2021.

~80~

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. Employees’ compensation as resolved by the Board of Directors was in agreement with the amount recognised in the 2019 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 2019 financial statements had been adjusted in profit or loss for 2020.

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.

(28) Income tax

A. Income tax expense
(a) Components of income tax expense:

Components of income tax expense:
			Years ended	December 31,
			2020			2019
Current tax:
Current tax on profits for the year		$	4,604,570		$	4,263,471
Effect from Alternative Minimun Tax			12,783			9,188
Prior year income tax overestimation	(		97,295)	(		794,471)
Tax on undistributed surplus earnings			245,558			204,850
Total current tax			4,765,616			3,683,038
Deferred tax:
Origination and reversal of temporary
differences			2,125,328			1,543,615
		$	6,890,944		$	5,226,653

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

follows:
		Years ended	December31,
		2020		2019
Currency translation differences	($	474,308)	$	540,534
Gain or loss on hedging instruments	(	1,849)	(	13,404)
Remeasurement of defined benefit plan	(	13,838)	(	6,088)
	($	489,995)	$	521,042

~81~

B. Reconciliation between income tax expense and accounting profit:

		Years ended	December31,	December31,	December31,
		2020			2019
Tax calculated based on profit before tax and
statutory tax rate	$	11,843,633		$	8,895,739
Effect from items disallowed by tax regulation	(	2,890,671)	(		2,330,177)
Effect from investment tax credits	(	2,046,961)	(		467,938)
Effect from taxable loss	(	176,103)	(		290,538)
Prior year income tax overestimation	(	97,295)	(		794,471)
Effect from Alternative Minimum Tax		12,783			9,188
Tax on undistributed surplus earnings		245,558			204,850
Tax expenses	$	6,890,944		$	5,226,653

~82~

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

Recognised in January1 profit or loss Deferred tax assets: Temporary differences: Allowance for inventory obsolescence 784,315 $ 154,284) ($ Pension liability 498,322 42,998) ( Assets impairment 183,957 170,670) ( Depreciation difference between tax and financial basis 1,250,770 460,044 Others 3,459,582 203,351) ( Tax losses 502,459 110,279) ( 6,679,405 221,538) ( Deferred tax liabilities: Temporary differences: Long-term equity investments 11,272,275) ( 2,120,865) ( Land value increment tax 119,862) ( - Others 2,616,724) ( 217,075 14,008,861) ( 1,903,790) ( 7,329,456) ($ 2,125,328) ($			2020

~83~

									2019	2019
									Recognised						Acquired
									in other						through
						Recognised in		comprehensive				Recognised			business
			January1			profit or loss			income			in equity		combinations			December31
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 financial basis			1,391,168	(		140,398)				-		-			-			1,250,770
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)

~84~

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

December 31, 2020

Year incurred 2005-2020 2010-2016 Year incurred 2004-2019 2010-2016	Amount filed / assessed 4,632,444 $ 2,792,544 $ Amount filed / assessed 6,015,563 $ 3,087,022 $	Unrecognised deferred Usable until Unused amount taxassets year 4,585,065 $ 4,260,124 $ 2035 2,792,544 $ 1,362,709 $ Indefinitely usable Unrecognised deferred Usable until Unused amount tax assets year 5,933,504 $ 5,605,653 $ 2035 3,087,022 $ 1,579,274 $ Indefinitely usable December31,2019

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

Deductible temporary differences	December31,2020 December 31, 2019 5,466,258 $ 4,039,284 $

F. The Group has not recognised taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As at December 31, 2020 and 2019, the amounts of temporary differences unrecognised as deferred tax liabilities were $10,443,978 and $9,690,116, respectively.
G. The status of the Company and its domestic subsidiaries’ assessed and approved income tax returns are as follows:

returns are as follows:
The Company, Cyntec, and Vivotek DECC, DelBio, UNICOM, AMT, Power Forest Technology Corporation, Lidlight Inc., Vatics Inc., Realwin., Otus Imaging, Inc. and Aetek Inc.	Latest year assessed by Tax Authority
	2017 2018

~85~

(29) 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	endedDecember31,2020
	Amount aftertax 25,485,231 $ 25,485,231 $ - 25,485,231 $ Year	Weighted average number of ordinary shares Earnings outstanding per share (sharesinthousands) (indollars) 2,597,543 9.81 $ 2,597,543 11,741 2,609,284 9.77 $ endedDecember31,2019	Earnings per share (indollars)
			9.81 $
			9.77 $
	Amount aftertax 23,117,797 $ 23,117,797 $ - 23,117,797 $	Weighted average number of ordinary shares outstanding (sharesinthousands) 2,597,543 2,597,543 13,840 2,611,383	Earnings per share (indollars)
			8.90 $
			8.85 $

~86~

(30) Share-based payment

A. For the years ended December 31, 2020 and 2019, the Group’s share-based payment arrangements were as follows:

==> picture [466 x 30] intentionally omitted <==

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

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

Type ofarrangement	Grant date	Quantity granted	Contract period	Vesting conditions
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	4 years	1~3 years’ service
options
Vivotek - 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

			2020	2020			2019	2019
			Weighted-average				Weighted-average
		No. of		exercise price		No. of		exercise price
		options		(in dollars)		options		(indollars)
Options outstanding
opening balance at
January 1		1,672,000	$	15.79		1,960,000	$	15.72
Options forfeited	(	100,000)		15.00	(	227,000)		15.00
Options exercised	(	690,000)		15.00		-		-
Options expired	(	882,000)		16.50	(	61,000)		16.50
Options outstanding
at December 31		-	$	-		1,672,000	$	15.79
Options exercisable at
December 31		-	$	-		1,267,000	$	16.04

~87~

(b) Restricted stocks to employees

Restricted stocks to employees
		2020	2019
		No. ofshares	No. ofshares
January 1		798,000		345,500
Granted during the year		-		800,000
Vested during the year	(	333,983)		-
Expired during the year	(	90,017)	(	347,500)
December 31		374,000		798,000

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

December 31, 2020: None.

Issue date approved November 8, 2016 March 3, 2017 March 30, 2018	Expirydate November 7, 2020 March 2, 2023 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

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

Type of Grant arrangement date Power Forest- Employee stock options 2017.3.3 `〃` 2018.3.30 Vatics Inc.- Employee stock options 2016.11.8 Vivotek - Plan of restricted stocks to employees 2017.11.20 〃 2019.8.19	Stock price (in dollars) $ 18.38 16.42 14.60 97.20 102.50	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) Not applicable Not applicable	Expected option life(years) 3.5~4.5 3.5~4.5 2.5~3.5 1~2 1~2	Expected dividends 5% 5% Not applicable Not applicable Not applicable	Risk-free interest rate 0.79%~ 0.88% 0.63%~ 0.68% 0.57%~ 0.67% Not applicable Not applicable	Fair value per unit (in dollars)
							4.0053~ 4.0960 3.0262~ 3.0767 2.7995~ 3.3727 97.20 102.50

~88~

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:

	Years ended	December31,
	2020	2019
Equity-settled	($ 900)	$ 41,176

(31) Business combinations
A. Business combinations of the Group for the years ended December 31, 2020 and 2019 are as follows:
- (a) On January 6, 2020, the Group acquired 59% of the share capital of the Group’s associate, DPI, for $250,380 and obtained control over DPI. As a result of the acquisition, the Group is expected to strengthen the product lines in projector market.
- (b) On November 3, 2020, the Group acquired 100% of the share capital of Trihedral, for $885,725 and obtained control over Trihedral. As a result of the acquisition, the Group is expected to strength industrial automation and systems integration layout. The amortisation duration of the acquisition price for Trihedral will be completed in one year after the acquisition.
- (c) 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.
- (d) 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 fixtures and provide completed solutions to customers. The allocation of the acquisition price of Amerlux was completed in the second quarter of 2020, and the acquisition price decreased by $27,626 based on the adjustment terms in the contract.
B. The following table summarises the consideration paid for the abovementioned acquired subsidiairies and the fair values of the assets acquired, liabilities assumed and the non-controlling interest at the acquisition date:

~89~

					December 31, 2019	December 31, 2019
		December	31,2020			(Note)
Purchase consideration
Cash		$	1,136,105		$	39,719,143
Contingent consideration			125,744			243,422
			1,261,849			39,962,565
Fair value of equity interest held before the
business combination			173,132			18,057,035
Fair value of the non-controlling interest			-			30,575,137
			1,434,981			88,594,737
Fair value of the identifiable assets acquired
and liabilities assumed
Cash and cash equivalents			47,990			15,701,128
Other current assets			485,917			22,719,840
Property, plant and equipment			53,887			9,984,301
Intangible assets			528,544			17,170,117
Deferred tax assets			-			244,895
Other non-current assets			23,543			281,247
Other current liabilities	(		505,681)	(		13,250,975)
Deferred tax liabilities	(		1,814)	(		119,870)
Other non-current liabilities	(		4,723)	(		2,051,916)
Total identifiable net assets			627,663			50,678,767
Goodwill		$	807,318		$	37,915,970

Note: Represents the amount after the allocation of acquisition price.

C. The fair values of the acquired identifiable intangible assets and goodwill of Trihedral amounting to $373,384 and $550,753 are provisional pending receipt of the final valuations for those assets.
D. The Group originally held 41% of share ownership in DPI and 20.93% of share ownership in DET before the business combination. (Loss) gain on remeasurement of fair value for the years ended December 31, 2020 and 2019 amounted to ($47,636) and $5,925,521, respectively.
E. The operating revenue included in the consolidated statement of comprehensive income since November 3, 2020 contributed by Trihedral was $26,290. Trihedral also contributed profit before income tax amounting to $886 over the same period. Had the company been consolidated from January 1, 2020, the consolidated statement of comprehensive income would show operating revenue of $282,892,399 and profit before income tax of $34,309,069.

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

In 2020, the Group acquired an additional equity interest of 2.78%, 43.6% and 48.96% in Vivotek, Power Forest and Eltek Polska, respectively, for a total cash consideration of $398,839, and in 2019, the Group acquired an additional equity interest of 15% and 6% in Loy Tec and DIH for a total cash consideration of $4,276,338. The effect of changes in interests attributable to owners of the parent for the years ended December 31, 2020 and 2019 is shown below:

~90~

(33)

Changes in liabilities from financing activities
Vivotek
Power Forest
Eltek Polska
Total
Carrying amount of non-
controlling interest acquired
80,404
$ 107,690
$ 55,087
$ 243,181
$ Consideration paid to non-
controlling interest
177,078)
(
168,227)
(
53,534)
(
398,839)
(
96,674)
($ 60,537)
($ 1,553
$ 155,658)
($ Capital surplus - difference
between proceeds on actual
acquisition of or disposal of
equity interest in a
subsidiary
96,674)
($ 1,584)
($ 1,553
$
96,705)
($ Unappropriated retained
earnings
-
$ 58,953)
($ -
$ 58,953)
($ YearendedDecember31,2020
LoyTec
DIH
Total
Carrying amount of non-
controlling interest acquired
$ 369,887 $ 4,577,774 $ 4,947,661
Consideration paid to non-
controlling interest
372,338)
(
3,904,000)
(
4,276,338)
(
($2,451)
$ 673,774
$ 671,323
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
Year ended December 31, 2019
Long-term
borrowings
Liabilities from
Short-term
(including current
financing
borrowings
portion)
activities-gross
At January 1, 2020
7,575,932
$ 27,814,375
$ 35,390,307
$ Changes in cash flow
from financing activities
5,574,400)
(
11,547,732
5,973,332
At December 31, 2020
2,001,532
$ 39,362,107
$ 41,363,639
$

~91~

At January 1, 2019 Changes in cash flow from financing activities At December 31, 2019	Short-term borrowings 6,259,062 $ 1,316,870 7,575,932 $	Long-term borrowings Liabilities from (including current financing portion) activities-gross 25,406,487 $ 31,665,549 $ 2,407,888 3,724,758 27,814,375 $ 35,390,307 $

7. RELATED PARTY TRANSACTIONS

(1) Names and relationship of related parties

Names and relationship of related parties Delta Electronics (Thailand) Public Company Limited

Relationship with the Group

It was an associate before April 2, 2019, and became a subsidiary since April 2, 2019.

Delta Electronics (Slovakia) s.r.o. " Delta Electronics India Pvt. Ltd. " Delta Energy Systems (Singapore) Pte. Ltd. " Delta Electronics (Australia) Pty. Ltd. " Eltek s.r.o. " Delta Power Solutions (India) Pvt. Ltd.

It was an associate, but was dissolved after the merger with Delta Electronics India Pvt. Ltd. in February 2019.

It was an associate before January 6, 2020 and became a subsidiary since January 6, 2020.

Digital Projection Ltd.

Digital Projection Inc. " Optovue, Inc. Associate Compower AS " Fujian Kaixin Construciton Engineering Co., Ltd. " Delta Networks (Xiamen) Ltd. " Digital Projection Asia Pte Ltd. " Bruce Cheng Director of the Company

~92~

(2) Significant transactions and balances with related parties

A. Operating revenue

Operating revenue
		Years ended	December31,
		2020		2019
Sales of goods:
Associates	$	175,080	$	1,973,449
Director of the Company		21,905		-
Sales of services:
Associates		8,823		426,003
	$	205,808	$	2,399,452

The Group sells commodities to related parties based on mutually agreed selling price and terms as there is no similar transaction to be compared with. Sales of service to related parties arise mainly from licensing patent technologies and intellectual property and recognised as revenue on a usage basis.

B. Purchases of goods

Purchases of goods
		Years ended	December 31,
		2020		2019
Purchases of goods:
Associates	$	78,998	$	1,515,592

The purchase terms, including prices and payments, are based on mutual agreement and have no similar transaction to be compared with.

C. Period-end balances arising from sales of goods and services

Period-end balances arising from sales of goods	and services
Receivables from related parties: Associates	December31,2020 42,284 $	December31,2019
		263,644 $

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	December31,2020 December31,2019 29,641 $ 32,197 $

The payables to related parties arise mainly from purchase transactions and are due 70 days after the date of purchase. The payables bear no interest.

~93~

E. Period-end balances arising from other transactions

December31,2020 Other receivables-related parties Associates 199 $	December31,2019 532 $

The above pertain mainly to payments on behalf of others.

(3) Key management compensation

Key management compensation
		Years ended	December 31,
		2020		2019
Short-term employee benefits	$	294,322	$	278,719
Post-employment benefits		790		920
	$	295,112	$	279,639

8. PLEDGED ASSETS

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

Book Value

Pledged assets Demand deposits and time deposits (shown as other current assets) Demand deposits and time deposits (shown as other non-current assets) Property, plant and equipment	December 31, 2020 483,361 $ 187,257 567,141 1,237,759 $	December 31, 2019 Pledge purpose 277,006 $ Performance bonds, custom guarantee, court attachments and other guarantee deposits 49,505 Performance bonds and custom guarantee 578,606 Long-term borrowings and credit line 905,117 $

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(1) Contingencies

None.

(2) Commitments

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

Property, plant and equipment Costs of computer software	December31,2020 6,213,358 $ 72,804 $	December31,2019
		8,309,363 $
		163,391 $

~94~

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

Information about the appropriations of 2020 earnings of the Company is provided in Note 6(19)E.

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 operations and maximize stockholders’ equity.

(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	December31,2020 4,003,539 $ 1,927,683 $ 58,711,985 $ 3,733,595 59,219,717 1,803,498 256,693 863,642 124,589,130 $	December31,2019
		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 $

~95~

December 31, 2020 December 31, 2019

Financial liabilities

Financial liabilities	December31,2020	December31,2019
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 payables Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities (including current portion)	60,060 $ 2,001,532 $ 2,770 46,717,151 32,884,221 39,362,107 418,754 121,386,535 $ 1,949,698 $	15,929 $
		7,575,932 $ 21,669 39,510,659 28,829,379 27,814,375 387,488
		104,139,502 $
		1,946,635 $

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)).

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, EUR and THB. 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.

~96~

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, RMB and THB). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

fluctuations is as follows:
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB (Note) USD:THB (Note) RMB:USD (Note) EUR:USD (Note) Non-monetary items USD:NTD THB:USD (Note) RMB:USD (Note) USD:THB (Note) NOK:USD (Note) THB:NTD EUR:USD (Note) Financial liabilities Monetary items USD:NTD RMB:USD (Note) USD:THB (Note) USD:RMB (Note) EUR:USD (Note) SGD:USD (Note)		December31,2020
	Foreign currency amount (inthousands) 563,902 $ 409,156 233,393 1,033,179 101,021 5,497,174 $ 51,035,064 8,976,208 576,424 3,688,108 4,864,229 44,778 517,975 $ 2,039,318 264,943 241,984 47,675 53,296	Exchange rate 28.0950 6.5300 29.9010 0.1531 1.2251 28.0950 0.0334 0.1531 29.9010 0.1164 0.9396 1.2251 28.0950 0.1531 29.9010 6.5300 1.2251 0.7528	Book value (NTD) 15,842,840 $ 11,495,240 6,557,173 4,445,203 3,477,153 154,443,093 $ 47,952,546 38,619,685 16,194,634 12,056,903 4,570,430 1,541,250 14,552,505 $ 8,774,065 7,443,584 6,798,533 1,640,967 1,127,213

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

~97~

==> picture [422 x 430] 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 29.9800 $ 11,284,239
USD:RMB (Note) 417,948 6.9756 12,530,081
USD:THB (Note) 160,067 29.6900 4,798,813
RMB:USD (Note) 1,264,427 0.1436 5,442,070
EUR:USD (Note) 76,590 1.1204 2,572,651
Non-monetary items
USD:NTD $ 4,761,343 29.9800 $ 142,745,063
THB:NTD 4,544,178 1.0098 4,588,711
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
EUR:USD (Note) 73,212 1.1204 2,459,179
Financial liabilities
Monetary items
USD:NTD $ 331,831 29.9800 $ 9,948,281
USD:RMB (Note) 242,021 6.9756 7,255,785
USD:THB (Note) 183,394 29.6900 5,498,147
RMB:USD (Note) 1,816,382 0.1436 7,817,670
----- 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.

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, 2020 and 2019 amounted to $ $399,073 and $454,685, respectively.

~98~

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

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD USD : RMB (Note) USD : THB (Note) RMB : USD (Note) EUR : USD (Note) Financial liabilities Monetary items USD : NTD RMB : USD (Note) USD : THB (Note) USD : RMB (Note) EUR : USD (Note) SGD : USD (Note)	Degree of Effect on Effect on other comprehensive variation profit or loss income 1% 158,428 $ - $ 1% 114,952 - 1% 65,572 - 1% 44,452 - 1% 34,772 - 1% 145,525 $ - $ 1% 87,741 - 1% 74,436 - 1% 67,985 - 1% 16,410 - 1% 11,272 - Year ended December31,2020 Sensitivity analysis

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

Year ended December31,2019	Year ended December31,2019	Year ended December31,2019
Sensitivity analysis
Degree of variation 1% 1% 1% 1% 1% 1% 1% 1% 1%	Effect on profit or loss 112,842 $ 25,727 54,421 125,301 47,988 99,483 $ 78,177 72,558 54,981	Effect on other comprehensive income
		- $ - - - - - $ - - -

~99~

Note: Certain consolidated entities’ functional currency is not NTD. Therefore, the Group 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, 2020 and 2019 would have increased/decreased by $14,147 and $15,240, 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 $15,203 and $21,171, 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, 2020 and 2019, the Group’s borrowings at variable rate were denominated in NTD, USD and JPY.
ii. As at December 31, 2020 and 2019, if the interest rate increases by 0.25%, with all other variables held constant, profit, net of tax for the years ended December 31, 2020 and 2019 would have decreased by $78,700 and $55,629, 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.

~100~

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 the provision matrix based on the loss rate methodology to estimate expected credit loss.
viii. The Group uses the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. On December 31, 2020 and 2019, the provision matrix is as follows:

matrix is as follows:
At December 31, 2020 Expected loss rate Total book value Loss allowance Expected loss rate Total book value Loss allowance At December 31, 2019 Expected loss rate Total book value Loss allowance Expected loss rate Total book value Loss allowance	Not past due 0.00% 53,883,754 $ 1,356 $ 181-365 days past due 37.46% 139,939 $ 52,415 $ Notpast due 0.02% 46,827,565 $ 9,549 $ 181-365 days past due 45.50% 457,455 $ 208,124 $	1-90 days past due 0.92% 4,956,368 $ 45,703 $ Over 366 days past due 95.21% 337,312 $ 321,141 $ 1-90dayspast due 1.05% 5,598,752 $ 58,661 $ Over 366 days past due 96.56% 664,075 $ 641,243 $	91-180 days past due
			23.59% 367,326 $
			86,651 $
			Total
			59,684,699 $
			507,266 $
			91-180dayspast due
			22.00% 416,452 $
			91,616 $
			Total
			53,964,299 $
			1,009,193 $

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

~101~

At January 1 (Reversal of) provision for impairment loss Acquired from business combinations Write-offs during the year Reclassifications Effect of foreign exchange At December 31 At January 1 Reversal of impairment loss Acquired from business combinations Write-offs during the year Effect of foreign exchange At December 31	Notes Accounts receivable receivable - $ 1,009,193 $ - 254,514) ( - 26,588 - 137,816) ( - 102,008) ( - 34,177) ( - $ 507,266 $ Notes Accounts receivable receivable - $ 960,844 $ - 2,747) ( - 99,556 - 2,257) ( - 46,203) ( - $ 1,009,193 $	Contract Overdue assets receivables Total - $ 213,405 $ 1,222,598 $ - 110,447 144,067) ( - - 26,588 - 63,404) ( 201,220) ( - 102,008 - - 8,174) ( 42,351) ( - $ 354,282 $ 861,548 $ Contract Overdue assets receivables Total - $ 271,439 $ 1,232,283 $ - 53,321) ( 56,068) ( - - 99,556 - 4,484) ( 6,741) ( - 229) ( 46,432) ( - $ 213,405 $ 1,222,598 $ 2020 2019	Total
			1,222,598 $ 144,067) ( 26,588 201,220) ( - 42,351) ( 861,548 $ Total
			1,222,598 $

For provisioned loss for the years ended December 31, 2020 and 2019, the reversal of impairment loss arising from customers’ contracts amounted to $144,067 and $56,068, 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:

Non-derivative financial liabilities:

December31,2020 Short-term borrowings Notes and accounts payable (including related parties) Other payables Lease liabilities (including current portion) Long-term borrowings (including current portion)	Less than 1year 2,001,532 $ 46,719,921 32,884,221 538,386 48,117	Between 1 and2years - $ - - 361,912 34,521,128	Between 2 and 5 years - $ - - 497,277 4,371,048	Over 5 years
				- $ - - 552,123 421,814

~102~

Non-derivative financial liabilities:

==> picture [434 x 30] intentionally omitted <==

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

Less than Between 1 Between 2 Over
December 31, 2019 1 year and 2 years and 5 years 5 years
----- End of picture text -----

Short-term borrowings	7,575,932	-	-	-
Notes and accounts payable	39,532,328	-	-	-
(including related parties)
Other payables	28,829,379	-	-	-
Lease liabilities
(including current portion)	525,370	372,557	506,528	542,180
Long-term borrowings
(including current portion)	65,536	25,045,203	2,225,817	477,819

Derivative financial liabilities:

As at December 31, 2020 and 2019, 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, notes payable, accounts payable, other payables and long-term borrowings (including current portion) are approximate to their fair values.
C. The related information on 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:

~103~

December 31, 2020 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, 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	Level 1 1,414,718 $ 52,577 - 1,254,855 2,722,150 $ - $ Level 1 1,523,977 $ 99,252 - 1,426,179 3,049,408 $ - $	Level 2 - $ 900,000 290,505 - 1,190,505 $ 60,060 $ Level 2 - $ - 142,668 - 142,668 $ 15,929 $	Level3 1,270,756 $ 74,983 - 672,828 2,018,567 $ - $ Level3 1,581,800 $ - - 690,945 2,272,745 $ - $	Total
				2,685,474 $ 1,027,560 290,505 1,927,683
				5,931,222 $
				60,060 $
				Total
				3,105,777 $ 99,252 142,668 2,117,124
				5,464,821 $
				15,929 $

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:

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

(b) Except for financial instruments with active markets, the fair value of other financial

~104~

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, 2020 and 2019, 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, 2020 and 2019:

At January 1 Losses recognised in profit and loss Losses recognised in other comprehensive income Acquired during the year Disposals during the year Transfers out from Level 3 Net exchange differences At December 31		2020

~105~

				2019
	Hybrid	instruments	Equity	instruments		Total
At January 1	$	69,074	$	3,188,195	$	3,257,269
Losses 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

G. In 2020, the Group obtained sufficient observable market information for certain financial assets at fair value through profit or loss. These equity securities were transferred from Level 3 into Level 1 at the end of the month in which they were listed.
H. 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.

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.

I. 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:

~106~

Non-derivative equity instruments: Unlisted shares `〃` Hybrid instruments: Convertible bonds Non-derivative equity instruments: Unlisted shares `〃`	Fair value at December 31, 2020	Valuation technique	Significant unobservable input	Range (median)	Relationship of inputs to fair value
	$ 1,678,184 265,400 74,983 Fair value at December 31, 2019	Most recent non-active market price Market comparable companies Most recent non-active market price Valuation technique	Not applicable Price to book ratio multiple Price to asset ratio multiple Price to earning ratio multiple Discount for lack of marketability Not applicable Significant unobservable input	- 0.99~1.77 (1.08) 1.43~13.65 (1.81) 12.20~109.2 (20.4) 20% (20%) - Range (weighted average)	Not applicable 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
	$ 2,007,345 265,400	Most recent non-active market price Market comparable companies	Not applicable Price to book ratio multiple Discount for lack of marketability	- 1.96~19.97 (3.43) 20% (20%)	Not applicable The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value

J. 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. The following is the effect of profit or loss or of other comprehensive income from financial assets

~107~

and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

==> picture [460 x 284] intentionally omitted <==

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

December 31, 2020
Recognised in Recognised in other
profit or loss comprehensive income (loss)
Favorable Unfavorable Favorable Unfavorable
Input Change change change change change
Financial assets
Equity Discount for ± 1% $ - $ - $ 3,476 ($ 3,476)
instruments lack of
marketability
December 31, 2019
Recognised in Recognised in other
profit or loss comprehensive income (loss)
Favorable Unfavorable Favorable Unfavorable
Input Change change change change change
Financial assets
Equity Discount for ± 1% $ - $ - $ 3,275 ($ 3,275)
instruments lack of
marketability
----- End of picture text -----

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 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.

~108~

(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, 2020.

(4) Major shareholders information

Please refer to table 11.

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 and Merchant & Mobile Power.
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 is as follows:

~109~

Revenue from external customers Segment income (Note) Revenue from external customers Segment income (Note)	Power electronics business 155,421,208 $ 20,901,545 $ Power electronics business 133,069,546 $ 11,985,204 $	Automation Infrastructure business business 38,773,146 $ 88,188,000 $ 3,868,869 $ 6,655,390 $ YearendedDecember31,2020 Automation Infrastructure business business 37,603,452 $ 97,083,943 $ 2,573,746 $ 4,849,840 $ Year ended December 31, 2019	Total 282,382,354 $
			31,425,804 $
			Total
			267,756,941 $
			19,408,790 $

(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, 2020 and 2019 is provided as follows:

Reportable segments income Non-operating income and expenses Income before tax from continuing operations	Years ended December 31,	Years ended December 31,
	2020 31,425,804 $ 2,849,479 34,275,283 $	2019 19,408,790 $ 9,745,619
		29,154,409 $

(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, 2020 and 2019 were as follows:

~110~

Mainland China U.S.A. Taiwan Thailand Others	Non-current Non-current Revenue assets Revenue assets 91,342,056 $ 26,961,698 $ 106,559,016 $ 26,603,429 $ 63,307,375 4,339,910 69,568,497 4,744,619 30,519,295 39,834,563 8,387,683 26,206,541 1,603,452 39,943,247 1,733,577 41,987,260 95,833,315 37,228,069 81,882,624 51,283,319 282,605,493 $ 148,307,487 $ 268,131,397 $ 150,825,168 $ Years endedDecember31, 2020 2019	Non-current Non-current Revenue assets Revenue assets 91,342,056 $ 26,961,698 $ 106,559,016 $ 26,603,429 $ 63,307,375 4,339,910 69,568,497 4,744,619 30,519,295 39,834,563 8,387,683 26,206,541 1,603,452 39,943,247 1,733,577 41,987,260 95,833,315 37,228,069 81,882,624 51,283,319 282,605,493 $ 148,307,487 $ 268,131,397 $ 150,825,168 $ Years endedDecember31, 2020 2019
		26,603,429 $ 4,744,619 26,206,541 41,987,260 51,283,319 150,825,168 $

(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, 2020 and 2019.

~111~

Delta Electronics, Inc. and Subsidiaries

Loans to others

Year ended December 31, 2020

Table 1

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, 2020(Note 2)	Balance at December 31, 2020	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 loans granted	Footnote
													Item	Value
1	Fairview Assets Ltd.	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	9,552,300 $	- $	- $	0.50%	2	- $	Additional operating capital	- $	None	- $	28,848,529 $	28,848,529 $	Note 5
1	Fairview Assets Ltd.	Delta Controls Inc.	Other receivables - related parties	Yes	2,809,500	2,612,835	1,685,700	0.50%	2	-	Additional operating capital	-	None	-	28,848,529	28,848,529	Note 5
1	Fairview Assets Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Other receivables - related parties	Yes	17,180,093	17,180,093	17,180,093	0.5%- 0.7%	2	-	Additional operating capital	-	None	-	28,848,529	28,848,529	Note 5
2	Delta Networks Holding Limited	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	2,247,600	-	-	0.50%	2	-	Additional operating capital	-	None	-	3,062,568	3,062,568	Note 5
2	Delta Networks Holding Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Other receivables - related parties	Yes	814,755	814,755	814,755	0.50%	2	-	Additional operating capital	-	None	-	3,062,568	3,062,568	Note 5
3	Delta International Holding Limited	Drake Investment (HK) Limited	Other receivables - related parties	Yes	1,854,270	702,375	702,375	0.70%	2	-	Additional operating capital	-	None	-	68,094,687	68,094,687	Note 5
3	Delta International Holding Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Other receivables - related parties	Yes	13,822,740	2,247,600	2,247,600	0.70%	2	-	Additional operating capital	-	None	-	68,094,687	68,094,687	Note 5
3	Delta International Holding Limited	Delta Electronics (H.K.) Ltd.	Other receivables - related parties	Yes	14,505,449	12,361,800	12,361,800	0.70%	2	-	Additional operating capital	-	None	-	68,094,687	68,094,687	Note 5
3	Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	25,791,210	19,104,600	18,177,465	0.5%- 0.7%	2	-	Additional operating capital	-	None	-	68,094,687	68,094,687	Note 5
4	Eltek AS	Eltek Italia S.r.l.	Other receivables - related parties	Yes	34,420	34,420	34,319	1.90%	2	-	Additional operating capital	-	None	-	2,965,340	2,965,340	Note 5
4	Eltek AS	Delta Solutions (Finland) OY	Other receivables - related parties	Yes	34,420	34,420	34,420	0.60%	2	-	Additional operating capital	-	None	-	2,965,340	2,965,340	Note 5
4	Eltek AS	Eltek Power France SAS	Other receivables - related parties	Yes	86,050	86,050	86,050	0.60%	2	-	Additional operating capital	-	None	-	2,965,340	2,965,340	Note 5
4	Eltek AS	Eltek Electronics (Sweden) AB	Other receivables - related parties	Yes	102,300	102,300	102,300	0.60%	2	-	Additional operating capital	-	None	-	2,965,340	2,965,340	Note 5

Table 1-1

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2020(Note 2)	Balance at December 31, 2020	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 loans granted	Footnote
													Item	Value
4	Eltek AS	Delta Electronics (Poland) Sp. z o.o.	Other receivables - related parties	Yes	111,936 $	111,936 $	111,936 $	0.60%	2	- $	Additional operating capital	- $	None	- $	2,965,340 $	2,965,340 $	Note 5
5	Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics (Jiangsu) Ltd.	Other receivables - related parties	Yes	1,505,858	1,505,858	1,505,858	4.65%	2	-	Additional operating capital	-	None	-	4,302,399	4,302,399	Note 5
6	Vivotek Inc.	Lidlight Inc.	Other receivables - related parties	Yes	10,000	-	-	1.34%	2	-	Additional operating capital	-	None	-	20,000	580,013	Note 6
6	Vivotek Inc.	Otus Imaging, Inc.	Other receivables - related parties	Yes	15,000	-	-	1.34%	2	-	Additional operating capital	-	None	-	60,000	580,013	Note 6
6	Vivotek Inc.	Vatics Inc.	Other receivables - related parties	Yes	270,000	270,000	238,368	1.34%	2	-	Additional operating capital	-	None	-	280,452	580,013	Note 6
7	Grandview Holding Ltd.	Cyntec Holding (H.K.) Limited.	Other receivables - related parties	Yes	2,810	-	-	0.50%	2	-	Additional operating capital	-	None	-	7,649,494	7,649,494	Note 5
8	Delta Energy Systems (Germany) GmbH	Delta Energy Systems Property (Germany) GmbH	Other receivables - related parties	Yes	426,808	426,808	426,808	0.40%	2	-	Additional operating capital	-	None	-	634,064	634,064	Note 5
9	DET International Holding Limited	Delta Electronics India Pvt. Ltd.	Other receivables - related parties	Yes	1,404,750	1,404,750	1,404,750	4.00%	2	-	Additional operating capital	-	None	-	6,438,337	6,438,337	Note 5
10	Delta Greentech (Netherlands) B.V.	Eltek s.r.o.	Other receivables - related parties	Yes	240,940	240,940	206,520	0.40%	2	-	Additional operating capital	-	None	-	1,204,170	1,204,170	Note 5
11	Delta Greentech (China) Co., Ltd.	Cyntec Electronics (WuHu) Co., Ltd.	Other receivables - related parties	Yes	215,123	215,123	55,932	3.85%	2	-	Additional operating capital	-	None	-	2,484,671	2,484,671	Note 4

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, 2020, 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 latest financial statements which were audited or reviewed by independent auditors.

Table 1-2

(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 latest financial statements which were audited or reviewed by independent auditors.

Note 7: Nature of loans:

(1) Business transaction: 1.
(2) Short-term financing: 2.

Table 1-3

Delta Electronics, Inc. and Subsidiaries

Provision of endorsements and guarantees to others

Year ended December 31, 2020

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 31,2020	Outstanding endorsement / guarantee amount at December 31, 2020	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 (Note5)
1	ELTEK AS	ELTEK AUSTRALIA PTY LIMITED	4	2,917,987 $	126,428 $	126,428 $	126,428 $	- $	0.09%	7,294,967 $	N	N	N	Note 3

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 $145,899,338 thousand (2020/12/31).
Note 5: 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, 2020

Table 3 Expressed in thousands of New Taiwan dollars, except as otherwise indicated

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As at December 31,2020	As at December 31,2020	As at December 31,2020	As at December 31,2020
				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 - non-current	55,308,750	788,150 $	2.08	788,150 $
Delta Electronics, Inc.	Lanner Electronics Inc. common stock	None	Financial assets at fair value through other comprehensive income - non-current	6,763,845	466,705	5.73	466,705
Delta Electronics, Inc.	Lanner Electronics Inc. convertible bonds	None	Financial assets at fair value through profit or loss - non-current	-	900,000	-	900,000
Delta Electronics, Inc.	WK Technology Fund. common stock, etc.	None	Financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss	-	196,798	-	196,798
Delta Electronics Capital Company	Tong Hsing Electronic Industries, Ltd. common stock	None	Financial assets at fair value through profit or loss	1,369,750	242,446	0.77	242,446
Delta Electronics Capital Company	Fusheng Precision Co., Ltd. common stock	None	Financial assets at fair value through profit or loss - current	1,306,000	226,591	1.00	226,591
Delta Electronics Capital Company	Nien Made Enterprise Co., Ltd. common stock	None	Financial assets at fair value through profit or loss - current	466,043	151,930	0.16	151,930
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	7.51	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	136,690	1.45	136,690
Delta Electronics Capital Company	Ampak Technology Inc. common stock	None	Financial assets at fair value through profit or loss - non-current	1,800,000	121,680	2.99	121,680
Delta Electronics Capital Company	Hz0, Inc. common stock, etc.	None	Financial assets at fair value through profit or loss	-	1,632,844	-	1,632,844
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	140,475	10.46	140,475

Table 3-1

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As at December 31,2020	As at December 31,2020	As at December 31,2020	As at December 31,2020
				Number of shares	Book value	Ownership (%)	Fair value
Delta Electronics (Netherlands) B.V.	Grace Connection Microeletronics Limited common stock	None	Financial assets at fair value through profit or loss - non-current	141,065	112,380 $	19.90	112,380 $
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	-	51,468	-	51,468
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 - non-current	-	161,319	-	161,319
Delta Electronics (Japan), Inc.	Macy Inc. common stock	None	Financial assets at fair value through other comprehensive income - non-current	74,000,000	33,653	19.79	33,653
Delta America Ltd.	VPT Inc. common stock	None	Financial assets at fair value through other comprehensive income - non-current	860,000	4,917	17.52	4,917
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	-	32,268	15.00	32,268

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, 2020

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 January1,2020	Balance as at January1,2020	Addition	Addition	Disposal	Disposal	Disposal	Disposal	Balance as at December 31, 2020	Balance as at December 31, 2020	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	Stock Exchange Market	None	122,980,851	942,033 $	-	- $	67,672,101	487,499 $	1,635,924 $	($ 1,148,425) (Note 1)	55,308,750	788,150 $
Delta Electronics, Inc.	Lanner Electronics Inc. privately placed convertible bonds	Financial assets at fair value through profit or loss - non-current	Lanner Electronics Inc.	None	-	-	-	900,000	-	-	-	-	-	900,000
Delta Greentech (Netherlands) B.V.	Delta Electronics (Switzerland) AG	Investments accounted for under the equity method	Delta International Holding Limited	Affiliated enterprise	4,900	362,512	-	82,284 (Note 2)	4,900	367,149	444,796	(Note 3)	-	-	(Note 4)
Delta Electronics (Netherlands) B.V.	Trihedral Engineering Limited common stock and preferred stock	Investments accounted for under the equity method	Natural person	None	-	-	51,495	996,237 (Note 5)	-	-	-	-	51,495	996,237
ELTEK AS	ELTEK AUSTRALIA PTY LIMITED common stock	Investments accounted for under the equity method	Delta Energy Systems (Singapore) PTE. LTD	Affiliated enterprise	4,461	175,462	-	4,846 (Note 2)	4,461	423,322	180,308	(Note 3)	-	-	(Note 4)
Digital Projection Ltd.	Digital Projection Inc. common stock	Investments accounted for under the equity method	Digital Projection Inc.	Affiliated enterprise	1,000	(473,231)	19,999,000	544,900 (Note 6)	-	-	-	-	20,000,000	71,669

Note 1: It was retained earnings transferred from other equity.

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

Note 3: The transaction resulted from the Group’s adjustment in investment structure. There was no gain or loss on disposal pursuant to related ordinances. Note 4: Only sales transactions are disclosed.

Note 5: In November 2020, Delta Electronics (Netherlands) B.V. increased its investment in Trihedral Engineering Limited amounting to $1,011,469, including investment income (loss) recognised during the period and the movement in the adjustments in the carrying amount.

Note 6: In December 2020, Digital Projection Ltd. increased its investment in Digital Projection Inc. amounting to $562,718, including investment income (loss) recognised during the period and the movement in the adjustments in the carrying amount.

)

Table 4-1

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, 2020

Table 5

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

Real estate acquired by	Real estate acquired	Date of the event	Transaction amount	Status of payment	Counterparty	Relationship with the counterparty	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	Basis or reference used in 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.	Plant 1 in the Central Taiwan Science Park	December 3, 2020	693,837 $	In accordance with the contract terms	Lee Ming Construction Co., Ltd. and others	None	-	-	-	- $	Price comparison and negotiation	For future business development	None

Table 5-1

Delta Electronics, Inc. and Subsidiaries

Purchases or sales of goods from or to related parties reaching $100 million or 20% of the Company's paid-in capital or more

Year ended December 31, 2020

Table 6

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

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Greentech (Brasil) S.A.	DELTA ELECTRONICS BRASIL LTDA.	Affiliated enterprise	Operating revenue	131,106 $	20.19	70 days			1,981 $	2.02
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	1,196,623	10.29	70 days			576,341	8.56
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	9,103,476	78.15	70 days			5,822,120	86.50
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Operating revenue	165,121	1.06	70 days			119,733	2.89
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	1,471,500	9.30	70 days			214,457	18.40
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	13,963,898	87.76	70 days			496,424	42.59
Delta Electronics (Jiangsu) Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	Operating revenue	244,712	0.57	70 days			9,375	0.17
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	6,173,905	14.75	70 days			1,400,555	25.98
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	Operating revenue	463,511	1.09	70 days			124,408	2.30
Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	34,705,857	82.73	70 days			3,803,462	70.56
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Operating revenue	154,143	0.49	70 days			5,401	0.09
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	13,230,254	44.59	70 days			4,691,510	74.09

Table 6-1

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	16,027,965 $	54.04	70 days			1,542,068 $	24.35
Delta Video Display System (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	1,319,518	42.87	70 days			685,598	85.17
Delta Video Display System (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	1,720,774	55.92	70 days			118,244	14.68
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Operating revenue	300,171	0.96	70 days			134,066	1.27
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	Operating revenue	120,101	0.40	70 days			72,413	0.69
Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	Operating revenue	15,686,998	50.60	70 days			5,120,100	48.47
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Pingtan) Co., Ltd.	Affiliated enterprise	Operating revenue	2,056,127	6.63	70 days			715,950	6.78
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	940,595	3.03	70 days			298,004	2.82
Delta Networks (Dongguan) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	8,566,730	99.46	70 days			1,399,729	99.04
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	243,961	3.13	70 days			71,093	7.02
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	7,557,493	96.81	70 days			933,741	92.23
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	683,329	15.01	70 days			196,733	22.05
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	3,859,309	84.95	70 days			695,534	77.95
Chenzhou Delta Technology Co., Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Operating revenue	565,654	22.63	70 days			329,082	59.48

Table 6-2

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Chenzhou Delta Technology Co., Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	Operating revenue	1,144,339 $	46.37	70 days			204 $	0.04
Chenzhou Delta Technology Co., Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	Operating revenue	274,264	11.02	70 days			74,187	13.41
Chenzhou Delta Technology Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	478,595	19.28	70 days			142,362	25.73
Cyntec Co., Ltd.	Delta Electronics Inc.	Ultimate parent company	Operating revenue	1,851,495	29.77	Note 1	Note 1	Note 1	557,170	42.93
Cyntec Co., Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Operating revenue	156,804	2.53	90 days after delivery			69,174	5.32
Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	13,866,215	99.92	Note 2	Note 2	Note 2	2,456,871	99.69
Delta Energy Systems (Germany) GmbH	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Operating revenue	1,944,271	87.46	70 days			11,716	15.83
Delta Electronics India Pvt. Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	152,688	3.28	70 days			38,596	3.14
Delta Electronics (Japan), Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	1,080,930	20.91	70 days			167,141	15.62
Delta Electronics (Netherlands) B.V.	Delta Electronics (Italy) S.r.l.	Affiliated enterprise	Operating revenue	151,167	3.00	70 days			27,288	3.10
Delta Electronics (Netherlands) B.V.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	298,636	5.83	70 days			-	-
Delta Electronics (Netherlands) B.V.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Operating revenue	100,919	2.04	70 days			19,194	2.18
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Affiliated enterprise	Operating revenue	479,943	9.54	70 days			313,941	35.65

Table 6-3

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
ELTEK AS	ELTEK MEA DMCC	Affiliated enterprise	Operating revenue	163,753 $	3.15	70 days			64,408 $	5.74
ELTEK AS	Eltek Deutschland GmbH	Affiliated enterprise	Operating revenue	754,541	14.69	70 days			179,497	16.01
ELTEK AS	Eltek Egypt for Power Supply S.A.E.	Affiliated enterprise	Operating revenue	121,846	2.40	70 days			53,604	4.78
ELTEK AS	ELTEK POWER FRANCE SAS	Affiliated enterprise	Operating revenue	570,160	11.13	70 days			141,395	12.61
ELTEK AS	Eltek Power (UK) Ltd	Affiliated enterprise	Operating revenue	488,888	9.50	70 days			60,616	5.40
ELTEK AS	Eltek SGS Pvt Ltd	Affiliated enterprise	Operating revenue	106,982	2.10	70 days			37,180	3.31
ELTEK AS	OOO Eltek	Affiliated enterprise	Operating revenue	203,083	3.95	70 days			28,322	2.53
ELTEK AS	Delta Electronics (Sweden) AB	Affiliated enterprise	Operating revenue	144,433	2.80	70 days			10,915	0.98
ELTEK AS	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	184,657	3.69	70 days			-	-
ELTEK AS	Eltek s.r.o.	Affiliated enterprise	Operating revenue	585,708	11.45	70 days			139,520	12.45
ELTEK AS	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	Operating revenue	120,457	2.36	70 days			3,604	0.32
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Australia) Pty Ltd.	Affiliated enterprise	Operating revenue	115,195	0.04	70 days			28,123	0.15
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK AUSTRALIA PTY LIMITED	Affiliated enterprise	Operating revenue	248,339	0.09	70 days			114,251	0.58
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Greentech (Brasil) S.A.	Affiliated enterprise	Operating revenue	153,002	0.07	90 days after delivery			10,082	0.05

Table 6-4

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Switzerland) AG	Affiliated enterprise	Operating revenue	1,494,168 $	0.63	70 days			614,114 $	71.53
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Operating revenue	10,450,044	4.93	70 days			3,616,912	10.56
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	Operating revenue	8,389,532	3.89	70 days			101,461	0.60
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Operating revenue	15,716,023	7.36	70 days			799,825	4.22
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	Operating revenue	12,112,598	5.69	70 days			758,912	4.10
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Video Display System (Wujiang) Ltd.	Affiliated enterprise	Operating revenue	1,543,372	0.71	70 days			177,155	0.87
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	Affiliated enterprise	Operating revenue	6,715,882	3.15	70 days			612,348	3.51
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	Operating revenue	5,821,368	2.70	70 days			602,729	21.34
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	Operating revenue	2,797,238	1.28	70 days			703,390	43.52
Delta Electronics Int’l (Singapore) Pte. Ltd.	Chenzhou Delta Technology Co., Ltd.	Affiliated enterprise	Operating revenue	267,150	0.12	70 days			62,830	3.90
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec Co., Ltd.	Affiliated enterprise	Operating revenue	1,290,413	0.61	70 days			314,207	4.26
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec Electronics (Suzhou) Co., Ltd.	Affiliated enterprise	Operating revenue	468,306	0.19	70 days			113,288	1.50
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Solutions (Spain) SL	Affiliated enterprise	Operating revenue	188,141	0.06	70 days			56,134	6.87
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Solutions (Finland) Oy	Affiliated enterprise	Operating revenue	157,785	0.07	70 days			40,350	5.08

Table 6-5

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Electronics Int’l (Singapore) Pte. Ltd.	Digital Projection Ltd.	Affiliated enterprise	Operating revenue	130,679 $	0.05	75 days after delivery			75,472 $	0.40
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	Operating revenue	1,468,444	0.68	90 days after delivery			475,089	1.18
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Japan), Inc.	Affiliated enterprise	Operating revenue	2,628,381	1.22	70 days			715,997	1.75
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Korea), Inc.	Affiliated enterprise	Operating revenue	264,801	0.12	70 days			44,401	0.12
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics International Mexico SA de CV	Affiliated enterprise	Operating revenue	129,101	0.06	70 days			15,212	0.08
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Operating revenue	2,256,090	1.06	70 days			319,103	10.07
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK AS	Affiliated enterprise	Operating revenue	1,319,677	0.63	70 days			501,760	1.47
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Slovakia) s.r.o.	Affiliated enterprise	Operating revenue	494,488	0.23	70 days			65,459	0.16
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Operating revenue	1,188,577	0.51	70 days			402,154	2.99
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Inc.	Ultimate parent company	Operating revenue	17,800,978	8.43	70 days			8,098,493	20.08
Delta Electronics Int’l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Operating revenue	16,636,608	7.82	90 days after delivery			5,539,825	12.50
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Americas) Ltd.	Affiliated enterprise	Operating revenue	2,188,664	1.01	70 days			506,833	15.81
Delta Electronics Int’l (Singapore) Pte. Ltd.	Vivitek Corporation	Affiliated enterprise	Operating revenue	153,166	0.06	70 days			27,039	0.08
Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	Operating revenue	4,152,245	1.95	70 days			881,390	16.97

Table 6-6

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Operating revenue	425,651 $	12.61	70 days			120,321 $	12.10
Delta Electronics (Slovakia) s.r.o.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	1,685,174	50.07	70 days			442,628	22.25
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Operating revenue	1,179,075	35.06	70 days			397,799	40.01
Eltek s.r.o.	ELTEK AS	Affiliated enterprise	Operating revenue	1,826,294	96.23	70 days			140,279	65.92
Delta Electronics (Thailand) Public Company Limited	Delta Energy Systems (Germany) GmbH	Affiliated enterprise	Operating revenue	168,686	0.33	70 days			6,726	0.05
Delta Electronics (Thailand) Public Company Limited	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	Operating revenue	272,319	0.51	90 days after delivery			92,179	0.72
Delta Electronics (Thailand) Public Company Limited	Delta Electronics (Japan), Inc.	Affiliated enterprise	Operating revenue	222,212	0.44	70 days			43,718	0.34
Delta Electronics (Thailand) Public Company Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	744,829	1.48	70 days			257,911	0.92
Delta Electronics (Thailand) Public Company Limited	Delta Electronics (Slovakia) s.r.o.	Affiliated enterprise	Operating revenue	195,993	0.34	70 days			38,600	0.30
Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	Operating revenue	18,576,277	36.87	90 days after delivery			5,907,625	45.84
Delta Electronics (Thailand) Public Company Limited	Delta Electronics (Americas) Ltd.	Affiliated enterprise	Operating revenue	2,419,169	4.82	70 days			318,874	2.47
Delta Electronics (Thailand) Public Company Limited	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	Operating revenue	295,021	0.57	70 days			47,239	0.36
Delta Electronics Inc.	Delta Electronics Components (Wujiang) Ltd.	Subsidiary	Operating revenue	1,229,688	2.10	70 days			1,203,989	8.43
Delta Electronics Inc.	Delta Greentech (China) Co., Ltd.	Subsidiary	Operating revenue	177,540	0.32	70 days			25,380	0.18

Table 6-7

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction	Transaction	Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Delta Electronics Inc.	Cyntec Electronics (Suzhou) Co., Ltd.	Subsidiary	Operating revenue	860,995 $	1.46	70 days			173,142 $	1.21
Delta Electronics Inc.	Delta Electronics (Japan), Inc.	Subsidiary	Operating revenue	183,948	0.31	70 days			15,933	0.11
Delta Electronics, Inc.	Delta Electronics (Netherlands) B.V.	Subsidiary	Operating revenue	173,302	0.28	70 days			69,068	0.49
Delta Electronics Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Subsidiary	Operating revenue	17,731,227	30.34	70 days			2,922,498	10.41
Delta Electronics Inc.	Delta Energy Systems (Singapore) PTE. LTD.	Subsidiary	Operating revenue	183,960	0.31	70 days			8,390	0.06
Delta Electronics Inc.	Delta Electronics (Thailand) Public Company Limited	Subsidiary	Operating revenue	1,685,676	2.87	70 days			337,413	2.37
Delta Electronics Inc.	DelBio Inc.	Subsidiary	Operating revenue	107,930	0.16	70 days			37,950	0.26
Delta Electronics Inc.	DEI Logistics (USA) Corp.	Subsidiary	Operating revenue	7,861,839	13.40	90 days after delivery			2,305,455	16.15
Delta Electronics Inc.	Delta Electronics (Americas) Ltd.	Subsidiary	Operating revenue	987,723	1.69	70 days			321,230	2.25
Delta Electronics Inc.	Digital Projection Inc.	Subsidiary	Operating revenue	124,856	0.22	75 days after delivery			70,871	0.50
Delta Electronics Inc.	DELTA ELECTRONICS (USA) INC.	Subsidiary	Operating revenue	490,526	0.83	70 days			104,811	0.74
DelBio Inc.	Optovue, Inc.	Affiliated enterprise	Operating revenue	112,942	63.19	70 days			25,685	67.53
Delta Electronics (Americas) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	640,243	6.82	70 days			15,307	1.08
Delta Electronics (Americas) Ltd.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Operating revenue	554,150	6.14	70 days			94,475	6.71

Table 6-8

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third partytransactions	Differences in transaction terms compared to third partytransactions	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Vivotek Inc.	Vivotek USA, Inc.	Affiliated enterprise	Operating revenue	497,254 $	10.30	90 days	(Note 3)	(Note 3)	110,396 $	17.70

Note 1: Sales revenue is cost plus handling charges and necessary processing costs. The collection term for related parties is 75 days from next month, and to third parties is 30~120 days after monthly billings. Note 2: Sales revenue is cost plus necessary profit, and the collection term for related parties is 75 days from next month.

Note 3: Vivotek Inc. determined the prices and terms of goods sold to Vivotek USA, Inc. based on the economic conditions and market competitiveness of the sales area, and there is no comparable prices and terms available for the goods sold to third parties.

Table 6-9

Delta Electronics, Inc. and Subsidiaries

Receivables from related parties reaching $100 million or 20% of the Company's paid-in capital or more December 31, 2020

Table 7

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

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2020 (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 (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	576,341 $	2.72	- $		- $	- $
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	5,822,120	2.46	-		-	-
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	119,733	2.40	-		9,839	-
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	214,457	3.74	-		118,241	-
Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	496,424	8.78	-		324,884	-
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	1,400,555	3.95	-		468,200	-
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	124,408	3.78	-		17	-
Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	3,803,462	9.93	8,028		505,710	-
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	4,691,510	3.42	-		1,314,565	-
Delta Electronics Components (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	1,542,068	9.69	-		-	-
Delta Video Display System (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	685,598	2.10	-		164,330	-
Delta Video Display System (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	118,244	10.08	-		118,244
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	134,066	3.29	-		46,198
Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	5,120,100	3.43	2,663		1,407,286	-

Table 7-1

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2020 (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 (Shanghai) Co., Ltd.	Delta Electronics (Pingtan) Co., Ltd.	Affiliated enterprise	715,950 $	3.23	- $		196,225 $	- $
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	298,004	3.15	-		298,004	-
Delta Networks (Dongguan) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	1,399,729	4.94	-		972,382	-
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	933,741	5.31	-		-	-
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	196,733	3.79	-		132,965	-
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	695,534	5.27	-		466,377	-
Chenzhou Delta Technology Co., Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	329,082	3.44	-		188,359	-
Chenzhou Delta Technology Co., Ltd.	Delta Electronics Int'l (Singapore) Pte. Ltd.	Affiliated enterprise	142,362	4.05	-		92,714	-
Cyntec Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	165,628	-	-		165,628	-
Cyntec Co., Ltd.	Delta Electronics Inc.	Ultimate parent company	557,170	3.74	-		182,500	-
Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	2,456,871	4.95	-		1,457,456	-
Delta Electronics (Japan) Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	167,141	6.41	-		84,982	-
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Affiliated enterprise	313,941	1.74	148,952		65,782	-
ELTEK AS	Eltek Deutchland GmbH	Affiliated enterprise	179,497	5.66	-		79,429	-
ELTEK AS	ELTEK POWER FRANCE SAS	Affiliated enterprise	141,395	3.42	-		51,816	-
ELTEK AS	Eltek s.r.o.	Affiliated enterprise	139,520	5.23	-		65,117	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK AUSTRALIA PTY LIMITED	Affiliated enterprise	114,251	3.65	-		42,556	-

Table 7-2

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2020 (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 (Switzerland) AG	Affiliated enterprise	614,114 $	3.01	- $		365,046 $	- $
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	3,616,912	4.52	1,174,047		2,567,425	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	101,461	8.69	33,362		-	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	799,825	14.01	-		799,825	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	758,912	12.08	-		570,047	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Video Display System (Wujiang) Ltd.	Affiliated enterprise	177,155	7.35	-		151,243	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	Affiliated enterprise	612,348	6.98	-		612,348	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	602,729	6.48	-		207,522	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	703,390	4.02	431,858		323,091	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec Co., Ltd.	Affiliated enterprise	314,207	4.47	-		105,722	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec Electronics (Suzhou) Co., Ltd.	Affiliated enterprise	113,288	4.49	-		41,487	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	475,089	3.51	6,430		120,717	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Japan) Inc.	Affiliated enterprise	715,997	4.03	-		255,166	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	319,103	4.79	-		187,926	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK AS	Affiliated enterprise	501,760	3.86	6		385,052	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	402,154	3.98	5,711		241,397	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Inc.	Ultimate parent company	8,098,493	2.31	-		2,249,032	-

Table 7-3

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2020 (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.	DEI Logistics (USA) Corp.	Affiliated enterprise	5,539,825 $	2.79	4,448 $		1,623,382 $	- $
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Americas) Ltd.	Affiliated enterprise	506,833	3.66	2,890		140,603	-
Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	881,390	6.30	-		453,151	-
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	120,321	3.21	-		25,880	-
Delta Electronics (Slovakia) s.r.o.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	442,628	3.84	-		165,832	-
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	397,799	3.14	-		185,737	-
Eltek s.r.o.	ELTEK AS	Affiliated enterprise	140,279	14.93	4		140,279	-
Delta Electronics (Thailand) Public Company Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	257,911	4.80	7,250		46,098	-
Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	5,907,625	3.49	95,508		1,433,699	-
Delta Electronics (Thailand) Public Company Limited	Delta Electronics (Americas) Ltd.	Affiliated enterprise	318,874	9.61	1,698		102,389	-
Delta Electronics Inc.	Dalta Electronics Components (Wujiang) Ltd.	Subsidiary	1,203,989	2.04	-		1,081,886	-
Delta Electronics Inc.	Cyntec Electronics (Suzhou) Co., Ltd.	Subsidiary	173,142	5.62	4,234		7,148	-
Delta Electronics Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Subsidiary	3,420,912	7.64	18,626		2,932,645	-
Delta Electronics Inc.	Delta Electronics (Thailand) Public Company Limited	Subsidiary	337,413	6.19	30,291		163,826	-
Delta Electronics Inc.	DEI Logistics (USA) Corp.	Subsidiary	2,305,455	3.34	2,638		871,925	-
Delta Electronics Inc.	Delta Electronics (Americas) Ltd.	Subsidiary	321,230	4.59	-		110,339	-
Delta Electronics Inc.	DELTA ELECTRONICS (USA) INC.	Subsidiary	104,811	5.86	-		64,884	-

Table 7-4

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2020 (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 Networks Holding Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	815,796 $	-	- $		- $	- $
DET International Holding Limited	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	1,404,750	-	-		-	-
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	128,017	-	-		-	-
Delta International Holding Limited	Drake Investment (HK) Limited	Affiliated enterprise	703,631	-	-		-	-
Delta International Holding Limited	Delta Electronics (H.K.) Ltd.	Affiliated enterprise	12,385,356	-	-		-	-
Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	18,209,566	-	-		-	-
Delta International Holding Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	2,251,621	-	-		-	-
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	1,545,731	-	-		-	-
ELTEK AS	Eltek Electronics (Sweden) AB	Affiliated enterprise	102,300	-	-		-	-
ELTEK AS	Delta Electronics (Poland) Sp. z o.o.	Affiliated enterprise	111,977	-	-		-	-
Fairview Assets Ltd.	Delta Controls Inc.	Affiliated enterprise	1,686,426	-	-		-	-
Fairview Assets Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	17,206,927	-	-		-	-
Delta Greentech (Netherlands) B.V.	Eltek s.r.o.	Affiliated enterprise	206,520	-	-		-	-
Vivotek Inc.	Vatics Inc.	Affiliated enterprise	240,880	-	-		18	-
Vivotek Inc.	Vivotek USA	Affiliated enterprise	110,396	3.78	-		35,877	-
Delta Energy Systems (Germany) GmbH	Delta Energy Systems Property (Germany) GmbH	Affiliated enterprise	426,808	-	-		-	-

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

Note 2: The amount represents collections subsequent to December 31, 2020 up to February 24, 2021.

Table 7-5

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, 2020

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount(Note8)	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note3)
0	Delta Electronics Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Subsidiary	Operating revenue	17,731,227 $	(Note 4)	6.27
0	Delta Electronics Inc.	DEI Logistics (USA) Corp.	Subsidiary	Operating revenue	7,861,839	(Note 5)	2.78
1	Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	9,103,476	(Note 4)	3.22
2	Delta Electronics Power (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	13,963,898	(Note 4)	4.94
3	Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	6,173,905	(Note 4)	2.18
3	Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	34,705,857	(Note 4)	12.28
4	Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	13,230,254	(Note 4)	4.68
4	Delta Electronics Components (Wujiang) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	16,027,965	(Note 4)	5.67
5	Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	Operating revenue	15,686,998	(Note 4)	5.55
6	Delta Networks (Dongguan) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	8,566,730	(Note 4)	3.03
7	Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	7,557,493	(Note 4)	2.67
8	Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	3,859,309	(Note 4)	1.37
9	Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	13,866,215	(Note 7)	4.91
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Operating revenue	10,450,044	(Note 4)	3.70
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	Operating revenue	8,389,532	(Note 4)	2.97

Table 8-1

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount(Note8)	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note3)
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Operating revenue	15,716,023 $	(Note 4)	5.56
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Components (Wujiang) Ltd.	Affiliated enterprise	Operating revenue	12,112,598	(Note 4)	4.29
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	Affiliated enterprise	Operating revenue	6,715,882	(Note 4)	2.38
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	Operating revenue	5,821,368	(Note 4)	2.06
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Inc.	Ultimate parent company	Operating revenue	17,800,978	(Note 4)	6.30
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Operating revenue	16,636,608	(Note 5)	5.89
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	Operating revenue	4,152,245	(Note 4)	1.47
11	Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	Operating revenue	18,576,277	(Note 5)	6.57
0	Delta Electronics, Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Subsidiary	Receivables	3,420,912	(Note 4)	1.02
1	Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Accounts receivable	5,822,120	(Note 4)	1.73
3	Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Accounts receivable	3,803,462	(Note 4)	1.13
4	Delta Electronics Components (Wujiang) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Accounts receivable	4,691,510	(Note 4)	1.39
5	Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	Accounts receivable	5,120,100	(Note 4)	1.52
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Accounts receivable	3,616,912	(Note 4)	1.08
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Inc.	Ultimate parent company	Accounts receivable	8,098,493	(Note 4)	2.41
10	Delta Electronics Int’l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Accounts receivable	5,539,825	(Note 5)	1.65
11	Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	Accounts receivable	5,907,625	(Note 5)	1.76

Table 8-2

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)		Transaction	Transaction	Transaction
				General ledger account	Amount(Note8)	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note3)
12	Delta International Holding Limited	Delta Electronics (H.K.) Ltd.	Affiliated enterprise	Other receivables - related parties	12,385,356 $	(Note 6)	3.68
13	Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Other receivables - related parties	18,209,566	(Note 6)	5.41
14	Fairview Assets Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Other receivables - related parties	17,206,927	(Note 6)	5.11

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: It will follow the agreed price and transaction terms, and all the credit terms are 90 days after delivery. Note 6: Lending of capital.

Note 7: Sales revenue is cost plus necessary profit, the collection term for related parties is 75 days from next month.

Note 8: 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

Table 9

Delta Electronics, Inc. and Subsidiaries Information on investees Year ended December 31, 2020

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 31,2020	Shares held as at December 31,2020	Shares held as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognised by the Company for the year ended December 31,2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Delta Electronics, Inc.	Delta International Holding Limited	Maltese	Equity investments	8,922,118 $	8,922,118 $	67,680,000	100.00	68,300,397 $	1,076,096 $	693,897 $	(Note 6)
Delta Electronics, Inc.	Delta Networks Holding Limited	Cayman Islands	Equity investments	29,582	29,582	83,800,000	100.00	3,112,095	139,892	164,705	(Note 6)
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	4,529,355	128,492,272	100.00	17,298,092	5,699,592	5,721,993	(Note 6)
Delta Electronics, Inc.	Delta Electronics (Thailand) Public Company Limited	Thailand	Manufacturing and exporting power supplies, other electronic parts and components	4,780,487	4,780,487	69,128,140	5.54	4,570,430	6,621,016	224,882	(Notes 6 and 13)
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	32,669,114	921,449	938,087	(Note 6)
Delta Electronics, Inc.	DelBio Inc.	Taiwan	Manufacturing, wholesale and retail of medical equipment	900,000	900,000	21,761,836	100.00	221,734	19,910	19,734	(Note 6)
Delta Electronics, Inc.	Delta Electronics Capital Company	Taiwan	Equity investments	3,253,241	3,253,241	350,000,000	100.00	3,472,020	86,241) (	86,241) (	(Note 6)
Delta Electronics, Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Singapore	Sales of electronic products	34,498	34,498	45,234,240	100.00	36,275,120	14,084,007	14,451,088	(Note 6)
Delta Electronics, Inc.	PreOptix (Hong Kong) Co., Ltd.	Hong Kong	Equity investments	-	162,376	-	39.62	-	134	54	(Note 14)
Delta Electronics, Inc.	Allied Material Technology Corp.	Taiwan	Lease services, etc.	2,113,978	2,113,978	211,400,909	99.97	1,675,498	94,426) (	94,398) (	(Note 6)
Delta Electronics, Inc.	Delta America Ltd.	U.S.A.	Equity investments	103,065	103,065	2,100,000	10.26	325,803	283,419	66,256	(Notes 6 and 9)
Delta Electronics, Inc.	UNICOM SYSTEM ENG. CORP.	Taiwan	Design and sales of computer, peripheral and information system (software and hardware)	-	341,695	-	-	-	26,958	17,448	(Notes 6 and 22)

Table 9-1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2020	Shares held as at December 31,2020	Shares held as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognised by the Company for the year ended December 31,2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Delta Electronics, Inc.	Vivotek Inc.	Taiwan	Manufacturing and sales of video compression software and encoding, network video server, webcam and its related components	4,217,016 $	4,039,937 $	45,782,058	52.65	3,903,371 $	250,823 $	27,349 $	(Note 6)
Delta International Holding Limited	Delta Electronics (Thailand) Public Company Limited	Thailand	Manufacturing and exporting power supplies, other electronic parts and components	12,102,686	12,102,686	191,984,450	15.39	12,292,118	6,621,016	787,634	(Note 13)
Delta International Holding Limited	DEI Logistics (USA) Corp.	U.S.A.	Warehousing and logistics services	28,095	28,095	1,000,000	100.00	217,082	2,662	2,662	(Note 1)
Delta International Holding Limited	Delta Electronics (Japan), Inc.	Japan	Sales of power products, display solution products, electronic components, industrial automation products and materials	80,322	80,322	5,600	100.00	675,802	99,320	99,319	(Note 1)
Delta International Holding Limited	Digital Projection International Ltd.	Britain	Equity investments	396,883	345,785	46,949,667	100.00	307,262	144,747) (	155,630) (	(Note 1)
Delta International Holding Limited	Vivitek Corporation	U.S.A.	Sales of projector products and their materials	42,143	42,143	9,000,000	100.00	111,508	4,968	4,968	(Note 1)
Delta International Holding Limited	PreOptix (Hong Kong) Co., Ltd.	Hong Kong	Equity investments	-	224,760	-	60.38	-	134	81	(Notes 1 and 14)
Delta International Holding Limited	Delta Electronics (Switzerland) AG	Switzerland	Equity investments, research, development and sales of electronic products	571,576	215,331	10,000	100.00	783,241	275,357	7,393) (	(Note 1)
Delta International Holding Limited	DELTA ELECTRONICS HOLDING (USA) INC.	U.S.A.	Equity investments	1,918,605	1,918,605	1,060,624	100.00	2,017,268	237,279	235,036	(Note 1)
Delta International Holding Limited	Eltek AS	Norway	Research, development and sales of power supplies and others	13,967,920	13,967,920	93,531,101	100.00	12,056,903	864,335	10,538	(Note 1)
Delta International Holding Limited	Delta Controls Inc.	Canada	Provide solutions to building management and control	2,107,125	2,107,125	75,000,000	100.00	2,536,140	44,481	44,481	(Note 1)
Delta International Holding Limited	Delta Electronics Europe Ltd.	Britain	Repair centre and providing support services	102,828	102,828	500,000	100.00	58,177	2,329	2,329	(Note 1)
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	169,975	169,975	2,314,592	100.00	140,273	17,364	17,364	(Note 2)
Delta Electronics (Netherlands) B.V.	Energy Dragon Global Limited	British Virgin Islands	Equity investments	-	136,577	-	-	-	-	-	(Notes 8 and 20)
Delta Electronics (Netherlands) B.V.	Castle Horizon Limited	Republic of Seychelles	Equity investments	-	636,980	-	-	-	-	-	(Notes 8 and 20)
Delta Electronics (Netherlands) B.V.	Delta Electronics (H.K.) Ltd.	Hong Kong	Equity investments, operations management and engineering services	9,226,316	9,226,316	2,549,297,600	100.00	20,481,149	5,094,590	5,094,590	(Note 8)
Delta Electronics (Netherlands) B.V.	Boom Treasure Limited	Hong Kong	Equity investments	2,447,661	2,447,661	1	100.00	1,909,542	201,765	80,579	(Note 8)
Delta Electronics (Netherlands) B.V.	Drake Investment (HK) Limited	Hong Kong	Equity investments	4,835,609	4,835,609	304,504,306	100.00	4,773,625	500,155	334,259	(Note 8)

Table 9-2

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2020	Shares held as at December 31,2020	Shares held as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognised by the Company for the year ended December 31,2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Delta Electronics (Netherlands) B.V.	Delta America Ltd.	U.S.A.	Equity investments	1,450,586 $	1,450,586 $	18,374,182	89.74	2,327,919 $	283,419 $	253,478 $	(Notes 8 and 9)
Delta Electronics (Netherlands) B.V.	Optovue, Inc.	U.S.A.	Research, development, design, manufacturing and sales of medical equipment	1,039,515	1,039,515	5,190,330	29.50	728,129	165,827) (	64,647) (	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Turkey	Marketing and sales of electronic products	157,894	108,447	940,687	100.00	52,996	24,164) (	1,891) (	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta Greentech (Brasil) S.A.	Brazil	Manufacturing and sales of electronic products	199,755	199,755	4,315,657	100.00	174,844	48,844	48,844	(Note 8)
Delta Electronics (Netherlands) B.V.	DELTA ELECTRONICS BRASIL LTDA.	Brazil	Manufacturing and sales of electronic products	570,851	311,401	87,000,000	100.00	446,667	3,023) (	3,023) (	(Note 8)
Delta Electronics (Netherlands) B.V.	Amerlux, LLC	U.S.A.	Design and producing of dedicated lighting system and facilities	2,745,415	2,769,977	-	100.00	2,746,948	25,666	57,154) (	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta Greentech SGP Pte. Ltd.	Singapore	Equity investments	784,712	784,712	12,175,470	100.00	630,119	65,058	28,389	(Note 8)
Delta Electronics (Netherlands) B.V.	Trihedral Engineering Limited	Canada	Software and associated engineering service	993,262	-	51,495	100.00	996,237	2,223) (	8,395) (	(Notes 8 and 23)
Delta America Ltd.	Delta Electronics (Americas) Ltd.	U.S.A.	Sales of electronic components	212,238	212,238	250,000	100.00	1,280,689	187,577	187,577	(Note 16)
Delta America Ltd.	Delta Solar Solutions LLC	U.S.A.	Equity investments	63,776	63,776	-	100.00	43,887	12,133) (	12,133) (	(Note 16)
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Thailand	Manufacturing and exporting power supplies, other electronic parts and components	33,614,314	33,614,314	534,479,306	42.85	35,416,137	6,621,016	2,192,991	(Note 13)
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK POWER INCORPORATED	Philippines	Sales of power supplies and others	21,164	21,164	11,400,000	100.00	14,664	9,380) (	9,380) (	(Note 7)
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK POWER CO., LTD.	Thailand	Sales of power supplies and others	-	-	40,000	100.00	244,291	6,642	6,642	(Note 7)
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK POWER (CAMBODIA) LTD.	Cambodia	Sales of power supplies and others	-	-	1,000	100.00	17,600) (	1,673	1,673	(Note 7)
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK POWER (MALAYSIA) SDN. BHD.	Malaysia	Sales of power supplies and others	58,026	58,026	300,000	100.00	57,785) (	2,615	2,615	(Note 7)
Delta Electronics Int’l (Singapore) Pte. Ltd.	Loy Tec Electronics GmbH	Austria	Consulting service of building management and control solutions	2,280,174	2,280,174	-	100.00	1,541,250	78,044	22,815	(Note 7)
Loy Tec Electronics GmbH	LOYTEC Americas, Inc.	U.S.A.	Consulting service of building management and control solutions	-	280	-	-	-	118	118	(Notes 17 and 21)
Delta Networks Holding Limited	Delta Networks, Inc.	Cayman Islands	Equity investments	4,996,948	4,996,948	1,196,886,000	100.00	1,946,405	129,431	128,914	(Note 3)
Delta Networks, Inc.	Delta Networks (HK) Limited	Hong Kong	Equity investments	983,325	983,325	35,000,000	100.00	1,923,419	129,424	129,424	(Note 4)

Table 9-3

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2020	Shares held as at December 31,2020	Shares held as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognised by the Company for the year ended December 31,2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Digital Projection International Ltd.	Digital Projection Holdings Ltd.	Britain	Equity investments	163,085 $	- $	40,526,221	100.00	144,974) ($	144,747) ($	144,747) ($	(Note 19)
Cyntec Co., Ltd.	Fairview Assets Ltd.	Cayman Islands	Equity investments	1,116,521	1,116,521	32,740,062	100.00	28,848,529	594,135	594,135	(Note 5)
Cyntec Co., Ltd.	Power Forest Technology Corporation	Taiwan	IC design of power management	347,387	179,161	24,134,934	100.00	268,711	10,983	3,146) (	(Note 5)
Delta Electronics (Thailand) Public Company Limited	DET International Holding Limited	Cayman Islands	Equity investments	8,878,938	8,878,938	264,357,330	100.00	7,007,099	275,054	81,767) (	(Note 18)
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	193,558	193,558	20,600,000	100.00	97,517	6,544) (	6,544) (	(Note 18)
Delta Electronics (Thailand) Public Company Limited	Delta Energy Systems (Singapore) PTE. LTD.	Singapore	Equity investments, trading, management and consultancy	5,237,217	5,237,217	146,586,590	100.00	9,187,535	171,923	174,286	(Note 18)
Delta Electronics (Thailand) Public Company Limited	DELTA ELECTRONICS (VIETNAM) COMPANY LIMITED	Vietnam	Sales of electronic products	2,848	-	-	100.00	2,848	-	-	(Notes 18 and 23)
Vivotek Inc.	Vatics Inc.	Taiwan	Designing and sales of multimedia integrated circuits	305,651	305,651	14,170,694	50.53	40,447) (	91,332) (	41,855) (	(Note 11)
Vivotek Inc.	Vivotek Holdings, Inc.	U.S.A.	Holding company	31,555	31,555	1,050	100.00	235,071	36,088	36,088	(Note 11)
Vivotek Inc.	Realwin Investment Inc.	Taiwan	A venture capital company	173,696	173,696	17,369,635	100.00	109,463	19,402	18,590	(Note 11)
Vivotek Inc.	Vivotek Netherlands B.V.	Netherlands	Sales service	11,418	11,418	3,000	100.00	11,536	1,063	1,063	(Note 11)
Vivotek Inc.	Otus Imaging, Inc.	Taiwan	Sales of webcams and related components	44,294	44,294	6,000,000	100.00	45,926	38,698	38,698	(Note 11)
Vivotek Inc.	Vivotek (Japan) Inc.	Japan	Sales service	17,939	17,939	6,600	100.00	25,493	961	961	(Note 11)
Vivotek Holdings, Inc.	Vivotek USA, Inc.	U.S.A.	Sales of webcams and related components	28,480	28,480	10,000,000	100.00	304,252	36,140	36,140	(Note 10)
Realwin Investment Inc.	Skywatck INC.	Taiwan	Wholesale of electronic equipment	755	6,211	50,070	1.66	-	4,747) (	-	(Note 15)
Realwin Investment Inc.	Wellstates Investment, LLC	U.S.A.	Investment and commercial lease of real estate	34,859	34,859	-	100.00	47,986	2,564	2,564	(Note 12)
Realwin Investment Inc.	Aetek Inc.	Taiwan	Sales of webcams and related components	34,045	34,045	3,372,500	56.21	47,820	20,870	11,731	(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	9,455) (	1,630	1,467	(Note 12)
Realwin Investment Inc.	Lidlight Inc.	Taiwan	Sales of lighting equipment	10,200	10,200	1,020,000	51.00	2,731	100	51	(Note 12)

Table 9-4

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2020	Shares held as at December 31,2020	Shares held as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognised by the Company for the year ended December 31,2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Realwin Investment Inc.	Vatics Inc.	Taiwan	Designing and sales of multimedia integrated circuits	31,123 $	31,123 $	1,089,299	3.88	1,660) ($	91,332) ($	3,547) ($	(Note 12)
Note 1: The Company’s second-tier subsidiary or subsidiary’s investee accounted for under equity method, 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 89.74% equity shares of Delta America Ltd. through Delta Electronics (Netherlands) B.V.. Considering the 10.26% equity shares held by the Company, the total ownership was 100%. Note 11: The Company’s second-tier subsidiary, which was recognised as investment gains/losses through Vivotek Inc. Note 10: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Vivotek Holdings, Inc.

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

Note 13: The Company indirectly acquired 15.39% and 42.85% equity shares of Delta Electronics (Thailand) Public Company Limited through Delta International Holding Limited and Delta Electronics Int'l (Singapore) Pte. Ltd., respectively, considering 5.54% equity shares held by the Company, the total ownership was 63.78%.

Note 14: The Company indirectly acquired 60.38% equity shares of PreOptix (Hong Kong) Co., Ltd. through Delta International Holding Limited.

Considering the 39.62% equity shares held by the Company, the total ownership was 100%. For the year ended December 31, 2020, PreOptix (Hong Kong) Co., Ltd. returned capital amounting to USD 5,250,000 and USD 8,000,000 to the Company and Delta International Holding Limited, respectively, which is yet to be completed as at December 31, 2020. Note 15: 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 16: The Company’s second-tier subsidiary, which was recognised as investment gains/losses through Delta America Ltd.

Note 17: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Loy Tec Electronics GmbH.

Note 18: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Delta Electronics (Thailand) Public Company Limited. Note 19: The Company’s second-tier subsidiary, which was recognised as investment gains/losses through Digital Projection International Ltd. Note 20: This company had been liquidated in February 2020. Note 21: This company had been liquidated in September 2020. Note 22: Merged with the Company in December 2020. Note 23: Companies were established or acquired through merger during 2020.

Table 9-5

Delta Electronics, Inc. and Subsidiaries Information on investments in Mainland China Year ended December 31, 2020

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, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2020	Accumulated amount of remittance from Taiwan to Mainland China as at December 31,2020	Net income (loss) of investee for the year ended December 31, 2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2020(Note 25)	Book value of investments in Mainland China as at December 31, 2020	Accumulated amount of investment income remitted back to Taiwan as at December 31,2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Delta Electronics (Dongguan) Co., Ltd.	Manufacturing and sales of transformer and thermal products	2,747,972 $	Invested by DHK	2,163,151 $	- $	- $	2,163,151 $	496,708 $	100.00	495,219 $	3,830,260 $	271,398 $	(Notes 3 and 20)
Delta Electronics Power (Dongguan) Co., Ltd.	Manufacturing and sales of power supplies	1,182,800	Invested by DHK	665,487	-	-	665,487	319,000	100.00	317,794	2,396,570	377,484	(Notes 6 and 20)
Delta Electronics (Shanghai) Co., Ltd.	Product design, management consulting service and distribution of electronic products	3,412,574	Invested by DHK	439,503	-	-	439,503	2,619,096	100.00	2,616,244	7,023,091	-	(Notes 9 and 20)
Delta Electronics (Wuhu) Co., Ltd.	Manufacturing and sales of LED light source, power supplies and others	3,764,730	Invested by DHK	480,740	-	-	480,740	258,059	100.00	255,640	4,308,181	-	(Notes 10 and 20)
Delta Electronics (Chenzhou) Co., Ltd.	Manufacturing and sales of transformers	1,769,985	Invested by DHK	120,103	-	-	120,103	113,155	100.00	113,845	1,889,352	-	(Notes 11 and 20)
Delta Electronics (Jiangsu) Ltd.	Manufacturing and sales of power supplies and transformers	1,123,800	Invested by DHK	3,938,883	-	-	3,938,883	820,926	100.00	818,525	3,023,609	-	(Note 20)
Delta Electronics Components (Wujiang) Ltd.	Manufacturing and sales of new-type electronic components, variable-frequency drive and others	3,309,872	Invested by DHK	6,452,263	-	-	6,452,263	797,072	100.00	798,176	6,622,874	49,567	(Notes 7 and 20)
Delta Video Display System (Wujiang) Ltd.	Manufacturing and sales of various projectors	814,755	Invested by DHK	1,338,873	-	-	1,338,873	106,271	100.00	106,011	1,352,872	-	(Notes 8 and 20)
Delta Green (Tianjin) Industries Co., Ltd.	Manufacturing and sales of transformers	127,270	Invested by DHK	929,527	-	-	929,527	39,535) (	100.00	39,535) (	42,666) (	-	(Notes 12 and 20)
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	207,903	Invested by DHK	1,065,076	-	-	1,065,076	16,605) (	100.00	16,605) (	153,058	-	(Note 20)
Delta Electronics (Pingtan) Co., Ltd.	Wholesale and retail of electronic products and energy-saving equipment	129,074	Invested by DHK	145,945	-	-	145,945	47,926	100.00	47,926	190,883	-	(Note 20)

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, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2020	Accumulated amount of remittance from Taiwan to Mainland China as at December 31,2020	Net income (loss) of investee for the year ended December 31, 2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2020 (Note 25)	Book value of investments in Mainland China as at December 31, 2020	Accumulated amount of investment income remitted back to Taiwan as at December 31,2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Delta Electronics (Beijing) Co., Ltd.	Installation of mechanic, electronic, telecommunication and circuit equipment	215,123 $	Invested by DHK	12,850 $	- $	- $	12,850 $	4,981 $	100.00	4,981 $	158,761 $	- $	(Notes 13 and 20)
Delta Electronics (Xi'an) Co., Ltd.	Sales of computer, peripheral equipment and software	236,635	Invested by DHK	237,641	-	-	237,641	14,428) (	100.00	14,428) (	202,788	-	(Note 20)
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	5,675,190	Invested by CHK	5,575,801	-	-	5,575,801	560,487	100.00	560,487	7,857,013	-	(Note 22)
Delta Networks (Dongguan) Ltd.	Manufacturing and sales of other radio- broadcast receivers and the equipment in relation to broadband access networking system	983,325	Invested by DNHK	1,256,025	-	-	1,256,025	136,639	100.00	136,614	1,775,836	618,090	(Notes 5 and 21)
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	63,454	Invested by DNHK	19,667	-	-	19,667	2,381	30.00	714	17,100	-	(Note 21)
DelBio (Wujiang) Co., Ltd.	Manufacturing, wholesale and retail of medical equipment	112,380	Invested by DelBio	112,380	-	-	112,380	4,806	100.00	4,788	173,622	-	(Note 23)
Unicom (Nanjing) System Eng. Corp	Design and sales of computer, peripheral and information system (software and hardware)	-	Invested by UNICOM	8,429	-	8,429	-	6,274	100.00	6,274	-	51,209	(Note 18)
Chenzhou Delta Technology Co., Ltd.	Manufacturing and sales of transformers	109,712	Invested by DCZ	-	-	-	-	41,938	100.00	3,607	192,114	-	(Note 15)
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	-	Invested by DPEC and DDG	-	-	-	-	15	-	15	-	-	(Notes 15 and 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.	43,025	Invested by DPEC and DGC	-	-	-	-	303	96.32	303	33,189	-	(Note 15)

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, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2020	Accumulated amount of remittance from Taiwan to Mainland China as at December 31,2020	Net income (loss) of investee for the year ended December 31, 2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2020 (Note 25)	Book value of investments in Mainland China as at December 31, 2020	Accumulated amount of investment income remitted back to Taiwan as at December 31,2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
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	- $	- $	- $	- $	757 $	96.32	757 $	9,033 $	- $	(Note 15)
Guangzhou Amerlux Lighting Co., Ltd.	Wholesale of lighting fixture and decorative objects	13,345	Invested by Amerlux Lighting Hong Kong Limited	164,999	4,203	-	169,202	22,521	100.00	22,521	41,009	-	(Notes 14 and 24)
Delta Greentech (China) Co., Ltd.	Sales of uninterruptible power systems	2,443,792	Invested by Drake-HK, Boom and DGSG	8,591,806	-	-	8,591,806	910,290	95.91	873,068	5,879,516	-	(Notes 4 and 19)
Cyntec Electronics (Wuhu) Co., Ltd.	Research, development, manufacturing, processing and sales of new-type electronic components (chip components, sensing elements, hybrid integrated circuits) and molding as well as processing of semi- finished alloy steel powder; import and export of goods or technique.	28,095	Invested by DHK	-	28,095	-	28,095	46,109) (	100.00	46,109) (	16,747) (	-	(Notes 17 and 20)
Fujian Kaixin Construction Engineering Co., Ltd.	Constructions of buildings and structures, steel structures, building decoration, earth work, municipal public works and landscape as well as design and construction of hydraulic and hydroelectric engineering and structural reinforcement and reconditioning	107,561	Invested by DPT	-	-	-	-	-	40.00	-	12,047	-	(Note 15)

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 6.53 to US$1 and NTD 4.30245 to RMB$1. Note 2: The accumulated remittance as at January 1, 2020, remitted or collected this period, accumulated remittance as at December 31, 2020 and investment income remitted back as at December 31, 2020 was translated into New Taiwan Dollars at the average exchange rate of NTD 28.095 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. Additionally, on October 27, 2020, Delta Electronics Power (Dongguan) Co., Ltd. merged with Delta Electronics (Dongguan) Co., Ltd. as permitted by Investment Commission. Under the merger procedure, Delta Electronics (Dongguan) Co., Ltd. would be the surviving company and Delta Electronics Power (Dongguan) Co., Ltd. would be the dissolved company. As of December 31, 2020 the procedure was still in process.

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. Additionally, on October 27, 2020, Delta Electronics Power (Dongguan) Co., Ltd. merged with Delta Electronics (Dongguan) Co., Ltd. as permitted by Investment Commission. Under the merger procedure, Delta Electronics (Dongguan) Co., Ltd. would be the surviving company and Delta Electronics Power (Dongguan) Co., Ltd. would be the dissolved company. As of December 31, 2020 the procedure was still in process.

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. Additionally, on September 24, 2020, Delta Electronics Components (Wujiang) Ltd. merged with Delta Electronics (Jiangsu) Ltd. as permitted by Investment Commission. Under the merger procedure, Delta Electronics (Jiangsu) Ltd. will be the surviving company and Delta Electronics Components (Wujiang) Ltd. will be the dissolved company. As of December 31, 2020, the procedure was still in process.

Table 10-3

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.

Additionally, on September 24, 2020, Delta Video Display System (Wujiang) Ltd. merged with Delta Electronics (Jiangsu) Ltd. as permitted by Investment Commission. Under the merger procedure, Delta Electronics (Jiangsu) Ltd. will be the surviving company and Delta Video Display System (Wujiang) Ltd. will be the dissolved company. As of December 31, 2020, the procedure was still in process.

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: 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 12: 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 13: 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 14: On July 15, 2020, the Investment Commission permitted that the unused facility of US$3,578 thousand from the facility of US$9,600 thousand initially permitted by Investment Commission was retired as the payment of transfer price was made. Note 15: 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 investment the Company’s ceiling of amount in Mainland China.

Note 16: This company had been liquidated in January 2020. Note 17: It was established during 2020. Note 18: The retirement procedure of the investment in Unicom (Nanjing) System Eng. Corp. from UNICOM SYSTEM ENG. CORP. was completed. Except for the share capital of US$300 thousand retired and the capitalisation of earnings of US$688 thousand have been remitted back to Taiwan, the capitalisation of earnings of US$1,134 thousand to be remitted back was also permitted by the Investment Commission. Note 19: Jointly invested through Drake Investment (HK) Limited, DELTA GREENTECH SGP Pte. Ltd. and Boom Treasure Limited. Note 20: Invest through Delta Electronics (H.K.) Led. Note 21: Invest through Delta Networks (H.K.) Led. Note 22: Invest through Cyntec Holding (H.K.) Limited. Note 23: Invest through DelBio Inc. Note 24: Invest through Amerlux Lighting Hong Kong Limited. Note 25: The company recognised investment income / loss based on the audited financial statement.

Company name	Accumulated amount remitted from Taiwan to Mainland China as at December 31, 2020	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)	$ 27,271,975	$ 27,780,354	$ -
Cyntec Co., Ltd.	5,575,801	5,575,801	16,358,552
DelBio Inc.(Note 4)	112,380	112,380	133,728

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 28.095 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 calculated based on DelBio Inc.’s 60% of net assets as at December 31, 2020.

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, 2020 are shown in Table 6 and 7.

Table 10-4

Delta Electronics, Inc. and Subsidiaries

Major shareholders information

December 31, 2020

Table 11

Table 11
Name of major shareholders Shares	No. of shares held	Ownership (%)
DEICO INTERNATIONAL LTD.	267,556,280	10.30%
DELTRON HOLDING LTD.	218,211,168	8.40%

Table 11-1

AI assistant

DELTA — Audit Report / Information 2020

52000_rns_2020-12-16_9b669a3e-326e-4d67-8a41-f23ec13b98ae.pdf

DELTA ELECTRONICS, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for opinion

Key audit matters

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

Description

How our audit addressed the matter

Impairment assessment of goodwill

Description

How our audit addressed the matter

Other matter – Reference to the audits of other auditors

Other matter – Parent company only financial reports

2020 and 2019.

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

Auditors’ responsibilities for the audit of the consolidated financial statements

E.

F.

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2020 AND 2019

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2020 AND 2019

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020 AND 2019

DELTA ELECTRONICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020 AND 2019

DELTA ELECTRONICS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2020 AND 2019

1. HISTORY AND ORGANIZATION

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

B. Subsidiaries included in the consolidated financial statements:

Balance sheet

Statement of comprehensive income

DET

Revenue

Statements of cash flows

Vivotek

(4) Foreign currency translation

(5) Classification of current and non-current items

(6) Cash equivalents

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

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

(9) Accounts and notes receivable

(10) Impairment of financial assets

(11) Derecognition of financial assets

(12) Inventories

(14) Cash surrender value of life insurance

(15) Property, plant and equipment

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

(17) Investment property

(18) Intangible assets

(19) Impairment of non-financial assets

(20) Borrowings

(21) Notes and accounts payable

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

(23) Derecognition of financial liabilities

(24) Offsetting financial instruments

(25) Non-hedging and embedded derivatives

(26) Hedge accounting

(27) Employee benefits

A. Pensions

(b) Defined benefit plan

- (28) Employee share based payment

B. Restricted stocks:

(29) Income tax

(30) Share capital

(31) Dividends

(33) Government grants

(34) Business combinations

(35) Operating segments

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

DELTA Audit Report / Information 2020

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