DELTA - Interim / Quarterly Report 2021

DELTA ELECTRONICS, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT MARCH 31, 2021 AND 2020

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~

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

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

Introduction

We have reviewed the accompanying consolidated balance sheets of Delta Electronics, Inc. and its subsidiaries (the “Group”) as at March 31, 2021 and 2020, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three months then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standards (IAS) No. 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission (FSC). Our responsibility is to express a conclusion on these interim financial statements based on our reviews and the review reports of other independent auditors.

Scope of review

Except as explained in the Basis for Qualified Conclusion, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65, “Review of Financial Statements”. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

~2~

Basis for Qualified Conclusion

As explained in Notes 4(3)B and 6(8), the financial statements of certain insignificant consolidated subsidiaries and investments accounted for under the equity method were not reviewed by independent auditors. Those statements reflect total assets of NT$19,715,948 thousand and NT$19,057,569 thousand, constituting 5.73% and 6.23% of the consolidated total assets, and total liabilities of NT$5,872,717 thousand and NT$6,894,423 thousand, constituting 3.72% and 5.17% of the consolidated total liabilities as at March 31, 2021 and 2020, respectively, and total comprehensive loss of (NT$251,954) thousand and (NT$133,260) thousand, constituting (2.91%) and 8.31% of the consolidated total comprehensive income (loss) for the three months then ended, respectively.

Qualified Conclusion

Based on our reviews and the review reports of other independent auditors as described in the Other Matter–Review Reports By Other Independent Auditors section of our report, except for the possible effects of the matter described in the Basis for Qualified Conclusion section of our report, nothing has come to our attention that causes us to believe that the accompanying interim financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three months then ended in accordance with the “Rules Governing the Preparation of Financial Reports by Securities Issuers” and IAS No. 34, “Interim Financial Reporting” as endorsed by the FSC.

`–` Other Matter Review Reports By Other Independent Auditors

We did not review the financial statements of certain subsidiaries which were reviewed by other auditors. Total assets of these subsidiaries amounted to NT$55,079,205 thousand and NT$50,877,624 thousand, constituting 16.02% and 16.64% of the consolidated total assets as at March 31, 2021 and 2020, respectively, and total operating revenues amounted to NT$15,475,120 thousand and NT$11,946,469 thousand, constituting 21.35% and 21.46% of consolidated total operating revenues for the three months then ended, respectively.

~3~

The consolidated financial statements of Delta Electronics, Inc. and subsidiaries as at and for the three months ended March 31, 2021 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 $28.535 to US$1.00 at March 31, 2021. 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

April 28, 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 review of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and review report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

~4~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

(EXPRESSED IN THOUSANDS OF DOLLARS)

(THE BALANCE SHEETS AS OF MARCH 31, 2021 AND 2020 ARE UNAUDITED)

Assets		New Taiwan Dollars	March 31, 2020
	March 31,2021 $ 60,858,095 932,925 - 2,321,918 3,480,763 57,001,586 28,527 1,799,154 344,209 49,144,171 2,274,039 573,385 178,758,772 3,247,321 1,962,860 477,014 787,406 71,097,325 2,956,287 14,070 75,992,081 6,395,473 2,112,162 165,041,999 $ 343,800,771	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
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			$ 49,590,843 631,262 211,057 1,074,568 3,332,497 44,878,780 28,695 1,504,223 521,516 37,964,809 2,562,732 403,748
			142,704,730
			2,156,842 1,259,802 278,983 874,967 63,815,846 3,071,580 14,070 82,539,291 6,597,994 2,439,777
			163,049,152
			$ 305,753,882

(Continued)

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

(EXPRESSED IN THOUSANDS OF DOLLARS)

(THE BALANCE SHEETS AS OF MARCH 31, 2021 AND 2020 ARE UNAUDITED)

Liabilities and Equity	US Dollars New Taiwan Dollars Notes March 31,2021 March 31,2021 December 31,2020 March 31,2020 6(13) $ 58,833 $ 1,678,806 $ 2,001,532 $ 9,846,267 6(2) 7,350 209,728 60,060 304,590 6(20) 177,909 5,076,625 5,012,589 3,325,637 151 4,295 2,770 11,304 1,674,209 47,773,555 46,687,510 34,495,538 7 266 7,596 29,641 14,162 6(14) 1,205,627 34,402,563 32,884,221 27,022,564 112,078 3,198,135 3,085,472 2,308,512 6(15) 153,975 4,393,714 4,259,706 4,163,246 3,390,398 96,745,017 94,023,501 81,491,820 6(15) 1,277,218 36,445,402 39,313,990 29,067,496 561,194 16,013,677 15,450,119 14,035,789 47,341 1,350,887 1,411,312 1,405,950 263,217 7,510,890 7,627,652 7,442,454 2,148,970 61,320,856 63,803,073 51,951,689 5,539,368 158,065,873 157,826,574 133,443,509 6(17) 910,301 25,975,433 25,975,433 25,975,433 6(18) 1,718,828 49,046,774 49,202,505 49,431,190 6(19) 958,210 27,342,534 27,342,534 25,030,754 267,112 7,622,034 7,622,034 7,561,032 1,924,992 54,929,632 48,300,040 41,673,079 ( 389,428) ( 11,112,320) ( 12,543,208) ( 9,956,931) 5,390,015 153,804,087 145,899,338 139,714,557 4(3) 1,119,005 31,930,811 32,690,303 32,595,816 6,509,020 185,734,898 178,589,641 172,310,373 9 $ 12,048,388 $ 343,800,771 $ 336,416,215 $ 305,753,882
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 Total liabilities and equity

Liabilities and Equity

US Dollars
New Taiwan Dollars
Notes
March 31,2021
March 31,2021
December 31,2020
March 31,2020
6(13) $ 58,833
$ 1,678,806
$ 2,001,532
$ 9,846,267
6(2)
7,350
209,728
60,060
304,590
6(20)
177,909
5,076,625
5,012,589
3,325,637
151
4,295
2,770
11,304
1,674,209
47,773,555
46,687,510
34,495,538
7
266
7,596
29,641
14,162
6(14)
1,205,627
34,402,563
32,884,221
27,022,564
112,078
3,198,135
3,085,472
2,308,512
6(15)
153,975
4,393,714
4,259,706
4,163,246
3,390,398
96,745,017
94,023,501
81,491,820
6(15)
1,277,218
36,445,402
39,313,990
29,067,496
561,194
16,013,677
15,450,119
14,035,789
47,341
1,350,887
1,411,312
1,405,950
263,217
7,510,890
7,627,652
7,442,454
2,148,970
61,320,856
63,803,073
51,951,689
5,539,368
158,065,873
157,826,574
133,443,509
6(17)
910,301
25,975,433
25,975,433
25,975,433
6(18)
1,718,828
49,046,774
49,202,505
49,431,190
6(19)
958,210
27,342,534
27,342,534
25,030,754
267,112
7,622,034
7,622,034
7,561,032
1,924,992
54,929,632
48,300,040
41,673,079
(
389,428) (
11,112,320) (
12,543,208) (
9,956,931)
5,390,015
153,804,087
145,899,338
139,714,557
4(3)
1,119,005
31,930,811
32,690,303
32,595,816
6,509,020
185,734,898
178,589,641
172,310,373
9
$ 12,048,388
$ 343,800,771
$ 336,416,215
$ 305,753,882

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
Total liabilities and equity

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

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2021 AND 2020

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

Items Operating revenue Operating costs Gross profit Operating expenses Selling expenses General and administrative expenses Research and development expenses Expected credit impairment gain (loss) Total operating expenses Operating profit Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of profit (loss) 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 period	US Dollars Three months ended March 31,2021 Notes 6(20) and 7 $ 2,540,224 6(7)(25)(26) and 7 ( 1,783,006) 757,218 6(25)(26) ( 165,002) ( 104,811) ( 226,590) 12(2) 2,063 ( 494,340) 262,878 6(21) 4,114 6(22) 25,363 6(23) 19,607 6(24) ( 2,425 ) 6(8) ( 645) 46,014 308,892 6(27) ( 62,062) $ 246,830	New Taiwan Dollars Three months ended March 31, 2021 2020 $ 72,485,283 $ 55,678,341 ( 50,878,062) ( 40,934,614) 21,607,221 14,743,727 ( 4,708,340 ) ( 4,418,168) ( 2,990,768 ) ( 2,743,461) ( 6,465,750 ) ( 5,526,858) 58,861 ( 75,750) ( 14,105,997 ) ( 12,764,237) 7,501,224 1,979,490 117,405 163,045 723,720 1,019,849 559,498 ( 187,026) ( 69,206 ) ( 112,825) ( 18,394) ( 26,017) 1,313,023 857,026 8,814,247 2,836,516 ( 1,770,952 ) ( 608,447) $ 7,043,295 $ 2,228,069

(Continued)

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2021 AND 2020

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

Items Other comprehensive income (loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss Gain on remeasurements of defined benefit plans Unrealised gain (loss) on valuation of equity investment at fair value through other comprehensive income 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 on hedging instrument Share of other comprehensive income (loss) 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 (loss) income that will be reclassified to profit or loss Other comprehensive income (loss) that will be reclassified to profit or loss Other comprehensive income (loss) for the period Total comprehensive income (loss) for the period 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 (in dollars) Basic earnings per share Diluted earnings per share	Notes 6(3) 6(27) 6(27)	US Dollars New Taiwan Dollars Three months ended March 31,2021 Three months ended March 31, 2021 2020 $ 1,631 $ 46,522 $ 13,844 1,169 33,365 ( 462,518 ) 2,800 79,887 ( 448,674 ) 57,477 1,640,101 ( 3,472,802 ) ( 1 ) ( 37 ) ( 34,353 ) ( 2 ) ( 43 ) ( 203 ) ( 3,440) ( 98,149) 123,411 54,034 1,541,872 ( 3,383,947 ) $ 56,834 $ 1,621,759 ($ 3,832,621 ) $ 303,664 $ 8,665,054 ($ 1,604,552 ) $ 230,605 $ 6,580,300 $ 2,067,299 $ 16,225 $ 462,995 $ 160,770 $ 282,477 $ 8,060,480 ($ 770,179 ) $ 21,187 $ 604,574 ($ 834,373 ) $ 0.09 $ 2.53 $ 0.80 $ 0.09 $ 2.53 $ 0.79

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

~8~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(EXPRESSED IN THOUSANDS OF DOLLARS)

(UNAUDITED)

Items	Notes			Equityattributable to	Equityattributable to	owners of theparent
		Share capital - common stock Capital surplus $ 25,975,433 $ 49,103,331 - - - - - - - 327,859 - - - - $ 25,975,433 $ 49,431,190 25,975,433 $ 49,202,505 - - - - - - - ( 155,731) - - $ 25,975,433 $ 49,046,774	Capital surplus		Retained Earnings	Ot	her EquityInterest
				Legal reserve $ 25,030,754 - - - - - - $ 25,030,754 $ 27,342,534 - - - - - $ 27,342,534
2020 New Taiwan Dollars Balance at January 1, 2020 Profit for the period Other comprehensive income (loss) for the period Comprehensive income (loss) for the period Changes in ownership interests in subsidiaries Changes in non-controlling interests Disposal of equity investments at fair value through other comprehensive income Balance at March 31, 2020 2021 New Taiwan Dollars Balance at January 1, 2020 Profit for the period Other comprehensive income (loss) for the period Comprehensive income (loss) for the period Changes in ownership interests in subsidiaries Changes in non-controlling interests Balance at March 31, 2021	6(3)		$ 49,103,331
			- -
			-
			327,859 - -
			$ 49,431,190
			$ 49,202,505
			- -
			-

The accompanying notes are an integral part of these consolidated financial statements. ~9~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(EXPRESSED IN THOUSANDS OF DOLLARS)

(UNAUDITED)

Items		Equityattributable to	Equityattributable to	Equityattributable to	owners of theparent
	Share capital - common stock Capital surplus $ 910,301 $ 1,724,286 - - - - - - - ( 5,458 ) - - $ 910,301 $ 1,718,828		Retained Earnings		Ot	her EquityInterest
		Legal reserve $ 958,210 - - - - - $ 958,210	Special reserve
2021 US Dollars Balance at January 1, 2021 Profit for the period Other comprehensive income (loss) for the period Comprehensive income (loss) for the period Changes in ownership interests in subsidiaries Changes in non-controlling interests Balance at March 31, 2021			$ 267,112
				- -
				-
				- -
			$ 267,112

The accompanying notes are an integral part of these consolidated financial statements. ~10~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(EXPRESSED IN THOUSANDS OF DOLLARS)

(UNAUDITED)

				USDollars		NewTaiwan Dollars	NewTaiwan Dollars
				Three months
				ended		Threemonths ended	March 31,
	Notes		March 31,2021			2021	2020
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated profit before tax for the period			$	308,892	$	8,814,247 $	2,836,516
Adjustments
Income and expenses having no effect on cash flows
Depreciation	6(9)(10)
	(25)			114,178		3,258,067	2,904,083
Amortization	6(11)(25)			31,843		908,639	988,871
Expected credit impairment (gain) loss	12(2)	(		2,063)	(	58,861 )	75,750
Net (gain) loss on financial assets or liabilities at fair	6(2)(23)
value through profit or loss		(		2,732)	(	77,965 )	771,288
Interest expense	6(24)			2,425		69,206	112,825
Interest income	6(21)	(		4,114)	(	117,405 ) (	163,045)
Dividend income	6(22)	(		2,029)	(	57,886 ) (	8,126)
Share-based payments	6(29)			-		-	9,925
Share of loss of associates accounted for under the	6(8)
equity method				645		18,394	26,017
Loss on disposal of property, plant and equipment	6(23)			616		17,590	13,755
Loss on disposal of investments	6(23)			-		-	84,685
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				6,905		197,033	54,386
Contract assets		(		3,558)	(	101,532 )	38,276
Notes receivable				8,860		252,832	484,131
Accounts receivable				79,049		2,255,662	8,233,745
Accounts receivable - related parties				482		13,757	234,949
Other receivables				384		10,970 (	10,275)
Other receivables - related parties				6		158 (	124)
Inventories		(		149,106)	(	4,254,742 )	1,531,450
Prepayments		(		3,603)	(	102,822 ) (	161,998)
Other current assets				259		7,396	41,112
Other non-current assets				91		2,602 (	105,682)
Net changes in liabilities relating to operating
activities
Contract liabilities				2,244		64,036 (	26,571)
Notes payable				53		1,525 (	10,365)
Accounts payable				38,060		1,086,045 (	5,478,939)
Accounts payable - related parties		(		773)	(	22,045 ) (	18,035)
Other payables				5,419		154,634 (	2,576,441)
Other current liabilities				5,048		144,008 (	87,088)
Other non-current liabilities		(		6,365)	(	181,635 ) (	330,093)
Cash inflow generated from operations				431,116		12,301,908	9,464,982
Interest received				3,878		110,657	153,663
Dividends received				2,027		57,850	3,841
Interest paid		(		2,438)	(	69,564 ) (	110,575)
Income taxes paid		(		40,113)	(	1,144,636 ) (	567,478)
Net cash flows from operating activities				394,470		11,256,215	8,944,433

(Continued)

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DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(EXPRESSED IN THOUSANDS OF DOLLARS)

(UNAUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets mandatorily measured at
fair value through profit or loss
Proceeds from disposal of financial assets at fair value
through other comprehensive income
Proceeds from capital withdrawal from financial asset at
fair value through profit or loss
Net cash flow from acquisition of subsidiaries (net of cash
acquired)
Increase in prepayment of long-term investment
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets
Decrease in other financial assets
Increase in other non-current assets
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings
Proceeds from long-term debt
Repayment of long-term debt
Lease principal repayment
Net cash flows from financing activities
Effects due to changes in exchange rate
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

US Dollars
New Taiwan Dollars
Three months ended
Three months ended March 31,
Notes
March 31, 2021
2021
2020
( $ 6,909)
($ 197,148 )
$ -
6(3)
-
-
185,486
1,108
31,626
-
6(30)
(
316)
(
9,015 ) (
220,624)
(
1,371) (
39,134 )
-
6(9)
(
200,232) (
5,713,609 ) (
4,079,204)
2,011
57,392
27,475
6(11)
(
16,836) (
480,425 ) (
154,136)
6,739
192,280
19,410
(
5,507)(
157,133)(
129,389)
(
221,313)(
6,315,166)(
4,350,982)
6(32)
(
11,310) (
322,726 )
2,270,335
6(32)
66,904
1,909,100
1,330,000
6(32)
(
167,481) (
4,799,060 ) (
15,299)
(
4,815)(
137,395)(
192,266)
(
116,702)(
3,330,081)
3,392,770
18,755
535,142 (
2,355,379)
75,210
2,146,110
5,630,842
2,057,543
58,711,985
43,960,001
$ 2,132,753 $ 60,858,095
$ 49,590,843

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

~12~

DELTA ELECTRONICS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 2021 AND 2020

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

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.

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

These consolidated financial statements were reported to the Board of Directors on April 28, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

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

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

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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

None.

(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 [483 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
Amendment to IFRS 16, ‘Covid-19-related rent concessions beyond	April 1, 2021
June 30, 2021’
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 adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2020, except for the compliance statement, basis of preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standards 34, “Interim financial reporting” as endorsed by the FSC.
B. These consolidated financial statements should be read along with the consolidated financial statements for the year ended December 31, 2020.

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(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
(a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries are consistent with the policies adopted by the Group.
(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.
(d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.
(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture.

~15~

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 (%)	Ownership (%)	Description
				March 31,2021	December 31,2020	March 31,2020
1 2 3 4 5 6 7 8	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) Delta Electronics Capital Company (DECC) Delta Electronics Int'l (Singapore) Pte. Ltd. (DEIL-SG)	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 Equity investments Sales of electronic products	100 100 100 - 100 100 100 100	100 100 100 100 100 100 100 100	100 100 100 100 100 100 100 100	Note 2 Note 3 Note 1 Note 2

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

Ownership (%)
Name of Name of Main Business March December March
No. Investor Subsidiary Activities 31, 2021 31, 2020 31, 2020 Description
----- End of picture text -----

No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
9	Delta Electronics,	Allied Material	Lease services, etc.	99.97	99.97	99.97
	Inc.	Technology Corp.
		(AMT)
10	Delta Electronics,	Delta America Ltd.	Equity investments	100	100	100
	Inc. and DEN	(DAL)
11	DEN	Delta Electronics	Equity investments,	100	100	100
		(H.K.) Ltd. (DHK)	operations
			management and
			engineering services
12	DIH	DEI Logistics (USA)	Warehousing and	100	100	100
		Corp. (ALI)	logistics services
13	`〃`	Delta Electronics	Sales of power	100	100	100
		(Japan), Inc. (DEJ)	products, display
			solution products,
			electronic
			components,
			industrial automation
			products and
			materials
14	DEN	Drake Investment	Equity investments	100	100	100
		(HK) Limited
		(Drake-HK)
15	DGSG, Drake-HK	Delta Greentech	Sales of	95.91	95.91	95.91
	and Boom	(China) Co., Ltd.	uninterruptible power
		(DGC)	systems and others
16	DIH	Vivitek Corporation	Sales of projector	100	100	100	Note 1
		(Vivitek)	products and their				Note 2
			materials
17	DEN	Delta Greentech SGP	Equity investments	100	100	100
		Pte. Ltd. (DGSG)
18	DIH	Delta Electronics	Repair centre and	100	100	100	Note 1
		Europe Ltd. (DEU)	providing support				Note 2
			services
19	DEN	Boom Treasure	Equity investments	100	100	100
		Limited (Boom)

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==> picture [480 x 40] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
20	DIH	Apex Investment	Equity investments	100	100	100	Note 4
		(HK) Limited
		(Apex-HK)
21	〃	Galaxy Star	〃	100	100	100	Note 4
		Investment (HK)
		Limited (Galaxy Star-
		HK)
22	〃	Jade Investment (HK)	〃	-	100	100	Note 5
		Limited
		(Jade-HK)
23	DHK	Delta Electronics	Manufacturing and	100	100	100
		(Dongguan) Co., Ltd.	sales of transformer
		(DDG)	and thermal products
24	〃	Delta Electronics	Manufacturing and	100	100	100
		Power (Dongguan)	sales of power
		Co., Ltd. (DEP)	supplies
25	〃	Delta Electronics	Product design,	100	100	100
		(Shanghai) Co., Ltd.	management
		(DPEC)	consulting service
			and distribution of
			electronic products
26	〃	Delta Electronics	Manufacturing and	100	100	100	Note 6
		(Jiangsu) Ltd. (DWJ)	sales of power
			supplies and
			transformers
27	`〃`	Delta Electronics	Manufacturing and	-	100	100	Note 6
		Components	sales of new-type
		(Wujiang) Ltd.	electronic
		(DWC)	components,
			variable-frequency
			drive and others
28	`〃`	Delta Video Display	Manufacturing and	-	100	100	Note 6
		System (Wujiang)	sales of various
		Ltd. (DWV)	projectors
29	`〃`	Delta Electronics	Manufacturing and	100	100	100
		(Wuhu) Co., Ltd.	sales of LED light
		(DWH)	source, power
			supplies and others

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==> picture [480 x 40] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
30	DHK	Delta Electronics	Manufacturing and	100	100	100
		(Chenzhou) Co., Ltd.	sales of transformers
		(DCZ)
31	`〃`	Cyntec Electronics	Research,	100	100	-	Note 1
		(Wuhu) Co., Ltd.	development,				Note 26
		(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	100	Note 1
		International Mexico	management system				Note 2
		S.A. DE C.V.	of industrial
		(DEIL-MX)	automation product
			and
			telecommunications
			equipment
33	DHK	Delta Green (Tianjin)	Manufacturing and	100	100	100	Note 1
		Industries Co., Ltd.	sales of transformers				Note 2
		(DGT)
34	`〃`	Delta Electronics	Wholesale and retail	100	100	100	Note 1
		(Pingtan) Co., Ltd.	of electronic products				Note 2
		(Delta Pingtan)	and energy-saving
			equipment
35	DEJ	Addtron Technology	Trading of	100	100	100
		(Japan), Inc.	networking system
		(AT Japan)	and peripherals
36	`〃`	Delta Electronics	Sales of power	100	100	100
		(Korea), Inc.	products, display
		(Delta Korea)	solution products
			electronic
			components,
			industrial automation
			products and their
			materials

~19~

==> picture [480 x 40] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
37	DCZ	Chenzhou Delta	Manufacturing and	100	100	100
		Technology Co., Ltd.	sales of transformers
		(CDT)
38	DPEC and DGC	Delta Energy	Energy performance	100	100	100	Note 1
		Technology	contracting,				Note 2
		(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.
39	DNH	Delta Networks, Inc.	Equity investments	100	100	100
		(DNI Cayman)
40	DNI Cayman	Delta Networks (HK)	`〃`	100	100	100
		Limited (DNHK)
41	DNHK	Delta Networks	Manufacturing and	100	100	100
		(Dongguan) Ltd.	sales of other radio-
		(DII)	broadcast receivers
			and the equipment in
			relation to broadband
			access networking
			system
42	Cyntec	Fairview Assets Ltd.	Equity investments	100	100	100
		(Fairview)
43	Fairview	Grandview Holding	`〃`	100	100	100
		Ltd. (Grandview)
44	Grandview	Cyntec Holding (HK)	`〃`	100	100	100
		Limited. (CHK)
45	`〃`	Cyntec International	Trading	100	100	100
		Ltd. (CIL-Labuan)

~20~

==> picture [480 x 40] intentionally omitted <==

No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
46	CHK	Cyntec Electronics	Research,	100	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
47	DelBio	DelBio (Wujiang)	Manufacturing,	100	100	100	Note 1
		Co., Ltd.	wholesale and retail				Note 2
			of medical equipment
48	DIH	ELTEK AS	Research,	100	100	100
			development and
			sales of power
			supplies and others
49	`〃`	Delta Controls Inc.	Provide solutions to	100	100	100
		(DCI)	building management
			and control
50	`〃`	DELTA	Equity investments	100	100	100	Note 1
		ELECTRONICS					Note 2
		HOLDING (USA)
		INC.
51	ELTEK AS	ELTEK PAKISTAN	Sales of power	100	100	100	Note 1
		(PRIVATE)	supplies and others				Note 2
		LIMITED
52	`〃`	Eltek Deutschland	Sales of power	100	100	100	Note 1
		GmbH	supplies and others				Note 2
			and system
			installation
53	Delta Energy Systems	ELTEK AUSTRALIA	`〃`	100	100	100	Note 2
	(Singapore) PTE.	PTY LIMITED					Note 7
	LTD. / ELTEK AS
54	ELTEK AS	Eltek Egypt for	Sales of power	95	95	95	Note 1
		Power Supply S.A.E.	supplies and others				Note 2

~21~

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No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
55	ELTEK AS	Eltek SGS Pvt Ltd.	Sales of power	100	100	100	Note 1
			supplies and others				Note 2
			and system
			installation
56	ELTEK AS and Eltek	Eltek SGS Mechanics	Sales of power	51	51	51	Note 1
	SGS Pvt Ltd.	Pvt Ltd.	supplies and others				Note 2
57	Delta Electronics	Eltek Polska Sp.	`〃`	100	100	51.04	Note 1
	(Poland) Sp. z o. o. /	z o. o. (Eltek Polska)					Note 2
	ELTEK AS						Note 8
							Note 9
58	ELTEK AS	ELTEK POWER	`〃`	100	100	100	Note 1
		FRANCE SAS					Note 2
59	〃	ELTEK LIMITED	Equity investments	100	100	100	Note 1
			and trading				Note 2
60	〃	ELTEK MEA DMCC	Sales of power	100	100	100	Note 1
			supplies and others				Note 2
61	ELTEK MEA DMCC	ELTEK KENYA	Sales of power	100	100	100	Note 1
	and ELTEK AS	LIMITED	supplies				Note 2
62	〃	ELTEK WEST	`〃`	100	100	100	Note 1
		AFRICA LIMITED					Note 2
63	ELTEK AS	Eltek Italia S.r.l.	Sales of power	100	100	100	Note 1
			supplies and others				Note 2
64	〃	Delta Electronics	`〃`	100	100	100	Note 1
		(Sweden) AB					Note 2
							Note 10
65	〃	Eltek Power (UK)	`〃`	100	100	100	Note 1
		Ltd.					Note 2
66	Delta Solutions	Eltek Power Oy	`〃`	-	100	100	Note 2
	(Finland) Oy /						Note 11
	ELTEK AS
67	ELTEK AS	OOO Eltek	Sales of power	100	100	100	Note 1
			supplies and others				Note 2
			and system
			installation

~22~

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No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
68	ELTEK AS	ELTEK ENERJI	Sales of power	-	-	100	Note 2
		SISTEMLERI	supplies and others				Note 12
		LIMITED SIRKETI
69	Eltek Deutschland	Eltek Montage	Installation and	100	100	100	Note 1
	GmbH	GmbH	maintenance of				Note 2
			power supplies
70	DEIL-SG	ELTEK POWER	Sales of power	100	100	100	Note 1
		INCORPORATED	supplies and others				Note 2
71	`〃`	ELTEK POWER	`〃`	100	100	100	Note 1
		CO., LTD.					Note 2
							Note 13
72	`〃`	ELTEK POWER	`〃`	100	100	100	Note 1
		(CAMBODIA) LTD.					Note 2
73	`〃`	ELTEK POWER	`〃`	100	100	100	Note 1
		(MALAYSIA) SDN.					Note 2
		BHD.					Note 14
74	ELTEK LIMITED	ELTEK CVI	Equity investments	-	-	100	Note 2
		LIMITED					Note 15
75	DHK	Eltek Energy	Development,	100	100	100	Note 1
		Technology	manufacturing and				Note 2
		(Dongguan)	sales of intelligent
		Ltd.	power equipment and
			system for supporting
			access networking
			system, and
			manufacturing and
			sales of intelligent
			power equipment for
			supporting renewable
			energy
76	DELTA	DELTA	Manufacturing and	100	100	100
	ELECTRONICS	ELECTRONICS	sales of power
	HOLDING (USA)	(USA) INC.	supplies
	INC.

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No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
77	DELTA	DELTA	Sales of power	100	100	100	Note 1
	ELECTRONICS	ELECTRONICS	supplies and others				Note 2
	(USA) INC.	(ARGENTINA)
		S.R.L.
78	DEN and DELTA	Eltek Sistemas de	Manufacturing and	100	100	100	Note 1
	ELECTRONICS	Energia Industria e	sales of power				Note 2
	(USA) INC.	Commercio S.A.	supplies
79	DELTA	DELTA	Sales of power	100	100	100	Note 1
	ELECTRONICS	ELECTRONICS	supplies and others				Note 2
	(USA) INC.	(PERU) INC. S.R.L.
80	`〃`	DELTA	`〃`	100	100	100	Note 1
		ELECTRONICS					Note 2
		(COLOMBIA) S.A.S.
81	DELTA	Eltekenergy Services,	`〃`	100	100	100	Note 1
	ELECTRONICS	S.A. de C.V.					Note 2
	(USA) INC. and
	DELTA
	ELECTRONICS
	HOLDING (USA)
	INC.
82	`〃`	Eltek energy	`〃`	100	100	100	Note 1
		International de					Note 2
		México, S. de R.L.
		de C.V.
83	DAL	Delta Electronics	Sales of electronic	100	100	100	Note 1
		(Americas) Ltd.	components				Note 2
84	`〃`	Delta Solar Solutions	Equity investments	100	100	100	Note 1
		LLC					Note 2
85	Delta Electronics	2009 PPA LLC	Sales of power	-	-	100	Note 2
	(Americas) Ltd.		supplies				Note 16
86	Delta Solar Solutions	DSS-CI LLC	Rental of solar power	100	100	100	Note 1
	LLC		systems				Note 2
87	`〃`	DSS-USF LLC	`〃`	100	100	100	Note 1
							Note 2

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No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
88	Cyntec	Power Forest	IC design of power	100	100	59.03	Note 1
		Technology	management				Note 2
		Corporation					Note 17
		(Power Forest)
89	DET-SH	Delta Energy	Energy technology,	100	100	100	Note 1
		Technology Puhuan	development and				Note 2
		(Shanghai) Co., Ltd.	consulting of
			environmental
			technical skills, and
			design and sales of
			energy saving
			equipment
90	DEIL-SG	Loy Tec electronics	Consulting service of	100	100	100	Note 1
		GmbH (Loy Tec)	building management				Note 2
			and control solutions
91	Loy Tec	LOYTEC Americas,	`〃`	-	-	100	Note 2
		Inc.					Note 15
92	DHK	Delta Electronics	Installation of	100	100	100	Note 1
		(Beijing) Co., Ltd.	mechanic, electronic,				Note 2
			telecommunication
			and circuit equipment
93	`〃`	Delta Electronics	Sales of computers,	100	100	100	Note 1
		(Xi'an) Co., Ltd.	peripherals and				Note 2
			software
94	Delta Electronics,	UNICOM SYSTEM	Design and sales of	-	-	100	Note 2
	Inc.	ENG. CORP.	computers,				Note 18
		(UNICOM)	peripherals and
			information system
			(software and
			hardware)
95	UNICOM	Unicom (Nanjing)	`〃`	-	-	100	Note 2
		System Eng. Corp					Note 19

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==> picture [480 x 40] intentionally omitted <==

No.	Name of Investor	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
96	DIH/Delta Greentech		Delta Electronics	Equity investments,	100	100	100	Note 1
	(Netherlands) B.V.		(Switzerland) AG	research,				Note 2
	and DIH		(DECH)	development and				Note 20
				sales of electronic
				products
97	DEN/DEN and Delta		Delta Greentech	Marketing and sales	100	100	100	Note 1
	Greentech		Electronics Industry	of electronic products				Note 2
	(Netherlands) B.V.		LLC					Note 21
98	DEN and	Delta	Delta Greentech	Manufacturing and	100	100	100	Note 1
	Electronics (USA)		(Brasil) S.A. (DGB)	sales of electronic				Note 2
	INC.			products
99	DECH		Delta Electronics	Sales of electronic	100	100	100	Note 1
			(Czech Republic),	products				Note 2
			spol. s.r.o.
100		″	Delta Electronics	″	100	100	100	Note 1
			(Italy) S.r.l.					Note 2
101		″	Delta Electronics	″	100	100	100	Note 1
			(Poland) Sp. z o.o.					Note 2
102		″	Delta Solutions	″	100	100	100	Note 1
			(Finland) Oy					Note 2
103		″	Delta Electronics	″	100	100	100	Note 1
			Solutions (Spain) SL					Note 2
104	ELTEK POWER		Delta Electronics	″	100	100	100	Note 1
	FRANCE	SAS /	(France) SA					Note 2
	DECH							Note 22
105	Delta Electronics		Delta Energy Systems	″	-	100	100	Note 2
	(Sweden)	AB/DECH	(Sweden) AB					Note 23
106	Delta Electronics,		Vivotek Inc.	Manufacturing and	52.65	52.65	49.87	Note 24
	Inc.		(Vivotek)	sales of video
				compression software
				and encoding,
				network video server,
				webcam and its
				related components

~26~

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No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
107	Vivotek and Realwin	Vatics Inc.	Designing and sales	54.41	54.41	54.41	Note 27
			of multimedia
			integrated circuits
108	Vivotek	Vivotek Holdings,	Holding company	100	100	100
		Inc.
109	″	Realwin Investment	Investment in the	100	100	100
		Inc. (Realwin)	network
			communications
			industry
110	″	Vivotek Netherlands	Sales service	100	100	100
		B.V.
111	″	Vivotek (Japan)	`〃`	100	100	100
		Inc.
112	Vivotek Holdings,	Vivotek USA, Inc.	Sales of webcams	100	100	100
	Inc.		and related
			components
113	Realwin	Wellstates	Investment and	100	100	100
		Investment, LLC	commercial lease of
			real estate
114	Vivotek	Otus Imaging, Inc.	Sales of webcams	100	100	100
			and related
			components
115	Realwin	Aetek Inc.	`〃`	56.21	56.21	56.21
116	`〃`	Vivotek Middle East	`〃`	89.99	89.99	89.99
		FZCO
117	`〃`	Lidlight Inc.	Sales of lighting	51	51	51
			equipment
118	DEN	DELTA	Manufacturing and	100	100	100	Note 1
		ELECTRONICS	sales of electronic				Note 2
		BRASIL LTDA.	products

~27~

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No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
119	Delta Electronics,	Delta Electronics	Manufacturing and	63.78	63.78	63.78
	Inc., DEIL-SG and	(Thailand) Public	exporting power
	DIH	Company Limited	supplies, other
		(DET)	electronic parts and
			components
120	DET	DET International	Equity investments	100	100	100
		Holding Limited
121	`〃`	Delta Energy Systems	Equity investments,	100	100	100
		(Singapore) PTE.	trading, management
		LTD.	and consultancy
122	`〃`	Delta Green	Integration, sales,	100	100	100
		Industrial (Thailand)	trading, installation
		Co., Ltd.	and providing
			services of
			uninterruptible power
			supply, photovoltaic
			inverter, electric cars
			changer and data
			center
123	`〃`	Delta Electronics	Sales of electronic	100	100	-	Note 26
		(Vietnam) Company	products
		Limited
124	DET`、`Delta Energy	DELTA	Manufacturing and	100	-	-	Note 25
	Systems (Singapore)	ELECTRONICS	sales of electronic
	PTE. LTD.	INDIA	products
		MANUFACTURING
		PRIVATE LIMITED
125	DET International	DET Logistics (USA)	Providing logistics	100	100	100
	Holding Limited	Corporation	services in USA
126	`〃`	Delta Energy Systems	Development,	100	100	100
		(Germany) GmbH	marketing and sales
			of electronic products
127	`〃`	Delta Energy Systems	Marketing and sales	100	100	100
		(India) Private Ltd.	of electronic products

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No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020 Description
128	DET International	Delta Electronics	Manufacturing and	100	100	100
	Holding Limited and	(Slovakia) s.r.o.	sales of power
	Delta		supplies, power
	Energy Systems		system and OEM
	(Singapore) PTE.		power system
	LTD.
129	DET International	Delta Energy Systems	Research and	100	100	100
	Holding Limited	(Romania) S.R.L.	development
130	Delta Energy Systems	Delta Energy Systems	Property rights	100	100	100
	(Germany) GmbH	Property (Germany)	business
		GmbH
131	Delta Energy Systems	Delta Electronics	Marketing and sales	100	100	100
	(Singapore) PTE.	(Australia) Pty. Ltd.	of renewable energy
	LTD.		products
132	`〃`	Delta Electronics	Manufacturing and	100	100	100
		India Pvt. Ltd.	marketing of non-
			telecom power
			system and
			uninterruptible power
			supply, and sales of
			uninterruptible power
			supply
133	`〃`	Delta Electronics	Manufacturing of	100	100	100
		(Myanmar) Co., Ltd.	electronic products
			used in CMP
			manufacturing
			process and
			machinery
134	`〃`	Delta Energy Systems	Research and	100	100	100
		(UK) Ltd.	development of
			electronic products
135	`〃`	Delta PBA	Providing solutions	51	51	51
		Engineering	for industrial
		Solutions Co., Ltd.	automation
136	`〃`	Delta Greentech	Equity investments	100	100	100
		(Netherlands)
		Cooperatie U.A.

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No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
137	Delta Greentech	Delta Greentech	Equity investments	100	100	100
	(Netherlands)	(Netherlands) B.V.
	Cooperatie U.A.
138	Delta Greentech	Delta Energy Systems	Marketing and sales	100	100	100
	(Netherlands) B.V.	LLC	of power systems
139	`〃`	Eltek s.r.o.	Manufacturing of	100	100	100
			telecom power
			system
140	`〃`	Delta Electronics	Research and	100	100	100
		(Automotive)	development of
		Americas Inc.	automotive power
			and traction inverter
141	DEN	Amerlux, LLC	Design and	100	100	100	Note 1
		(Amerlux)	production of				Note 2
			dedicated lighting
			system and facilities
142	Amerlux	Amerlux Lighting	Equity investments	100	100	100	Note 1
		Asia, LLC					Note 2
143	Amerlux Lighting	Amerlux Lighting	`〃`	100	100	100	Note 1
	Asia, LLC	Hong Kong Limited					Note 2
144	Amerlux Lighting	Guangzhou Amerlux	Wholesale of lighting	100	100	100	Note 1
	Hong Kong Limited	Lighting Co., Ltd.	fixture and decorative				Note 2
			objects
145	DIH	Digital Projection	Equity investments	100	100	100	Note 1
		International Ltd.					Note 2
		(DPI)
146	DPI	Digital Projection	`〃`	100	100	100	Note 1
		Holdings Ltd.					Note 2
147	Digital Projection	Digital Projection	Research,	100	100	100	Note 1
	Holdings Ltd.	Ltd.	development and				Note 2
			sales of projector
			products

~30~

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No.	Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021	December 31,2020	March 31,2020	Description
148	Digital Projection	Digital Projection	Sales of projector	100	100	100	Note 1
	Ltd.	Inc.	products				Note 2
149	DEN	Trihedral	Software and	100	100	-	Note 1
		Engineering Limited	associated				Note 26
		(Trihedral)	engineering services
150	Trihedral	Trihedral Inc.	〃	100	100	-	Note 1
							Note 26
151	Trihedral Inc.	Trihedral UK	〃	100	100	-	Note 1
		Limited					Note 26

Note 1: As the subsidiaries do not meet the definition of significant subsidiaries, their financial statements as at March 31, 2021 were not reviewed by independent auditors.
Note 2: As the subsidiaries do not meet the definition of significant subsidiaries, their financial statements as at March 31, 2020 were not reviewed by independent auditors.
Note 3: 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 was completed in March 2021.
Note 4: In December 2019, the company began liquidation process and was dissolved, but has not yet been completed as at March 31, 2021.
Note 5: This company had been liquidated in March 2021.
Note 6: Delta Electronics (Jiangsu) Ltd. merged with Delta Electronics Components (Wujiang) Ltd. and Delta Video Display System (Wujiang) Ltd. on January 1, 2021. After the merger, Delta Electronics (Jiangsu) Ltd. was the surviving company while Delta Electronics Components (Wujiang) Ltd. and Delta Video Display System (Wujiang) Ltd. were the dissolved companies.
Note 7: In October 2020, ELTEK AS sold ELTEK AUSTRALIA PTY LIMITED to Delta Energy Systems (Singapore) Pte. Ltd.
Note 8: In July 2020, ELTEK AS acquired 48.96% equity interest in Eltek Polska, and the total shareholding ratio is 100%.
Note 9: In December 2020, ELTEK AS sold Eltek Polska Sp.z o.o. (Eltek Polska) to Delta Electronics (Poland) Sp.z o.o.
Note 10: Formerly named Eltek Power Sweden AB and was renamed as Delta Electronics (Sweden) AB in November 2020.
Note 11: In October 2020, ELTEK AS sold Eltek Power Oy to Delta Solutions (Finland) Oy, and

~31~

Eltek Power Oy merged into Delta Solutions (Finland) Oy in February 2021. After the merger, Delta Solutions (Finland) Oy was the surviving company while Eltek Power Oy was the dissolved company.

Note 12: This company had been liquidated in December 2020.
Note 13: 55% of shares are held through others due to local regulations.
Note 14: 71% of shares are held through others due to local regulations.
Note 15: This company had been liquidated in September 2020.
Note 16: This company had been liquidated in November 2020.
Note 17: In July 2020, Cyntec acquired 43.6% equity interest in Power Forest, and the total shareholding ratio is 100%.
Note 18: Merged with the Company in December 2020.
Note 19: This company had been liquidated in October 2020.
Note 20: In October 2020, DIH acquired 49% equity interest in DECH from Delta Greentech (Netherlands) B.V., and the total shareholding ratio is 100%.
Note 21: 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 22: In November 2020, DECH sold Delta Electronics (France) SA to ELTEK POWER FRANCE SAS.
Note 23: In October 2020, DECH sold Delta Energy Systems (Sweden) AB to Eltek Power Sweden AB (renamed in November 2020, please refer to Note 10 for details.). Subsequently, Delta Energy Systems (Sweden) AB merged with Delta Electronics (Sweden) AB in January 2021, with Delta Electronics (Sweden) AB as the surviving company and Delta Energy Systems (Sweden) AB as the dissolved company.
Note 24: Because most of the shares were held by the Company, and other shareholdings are disaggregated, it was included in the consolidated financial statements.
Note 25: The company was established during 2021.
Note 26: The company was established or acquired through merger during 2020.
Note 27: The Cayman company, Kneron Holding Corporation (“Kneron”), plans to acquire all of the issued shares of Vatics Inc. in cash from Vatics Inc.’s original shareholders and the shareholders have approved the share transfer at their meeting on March 25, 2021. The share transfer has been submitted to the Competent Authority for review and the temporary effective date was set on May 31, 2021. After the share transfer, Vivotek will no longer hold shares in Vatics Inc.
C. Subsidiaries not included in the consolidated financial statements: None.

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D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group:

As at March 31, 2021, December 31, 2020 and March 31, 2020, the non-controlling interest amounted to $31,930,811, $32,690,303 and $32,595,816, respectively. The information on noncontrolling interest and respective subsidiary is as follows:

Name ofsubsidiary	Ownership Ownership Amount (%) Amount (%) $ 3,618,899 47.35% $ 3,618,610 47.35% 27,833,831 36.22% 28,697,265 36.22% Ownership Amount (%) $ 3,954,323 50.13% 28,520,303 36.22% Non-controllinginterest March31,2021 December31,2020 Non-controlling interest March31,2020	31,2020
	Ownership Amount (%) $ 3,618,610 47.35% 28,697,265 36.22% Non-controlling interest	Ownership (%)
Vivotek Inc. (Vivotek) Delta Electronics (Thailand) Public Company limited (DET) Name ofsubsidiary
	March31,2020
	Amount $ 3,954,323 28,520,303	Ownership (%)
Vivotek Inc. (Vivotek) Delta Electronics (Thailand) Public Company limited (DET)		50.13% 36.22%

Summarised financial information of the subsidiary:

Balance sheet

Balance sheet
				DET
		March31,2021	December31,2020			March31,2020
Current assets	$	42,005,558	$	39,887,645	$	32,394,905
Non-current assets		59,255,721		58,101,498		62,616,902
Current liabilities	(	21,743,878)	(	16,133,275)	(	14,115,964)
Non-current liabilities	(	2,312,439)	(	2,293,690)	(	2,153,979)
Total net assets	$	77,204,962	$	79,562,178	$	78,741,864

~33~

				Vivotek
		March31,2021	December31,2020			March31,2020
Current assets	$	3,294,646	$	3,377,240	$	3,232,658
Non-current assets		6,230,670		6,112,662		6,379,232
Current liabilities	(	1,515,152)	(	1,474,665)	(	1,325,857)
Non-current liabilities	(	367,293)	(	372,977)	(	397,897)
Total net assets	$	7,642,871	$	7,642,260	$	7,888,136

Statement of comprehensive income

Statement of comprehensive income
		DET
		Threemonths ended			March31,
		2021			2020
Revenue	$	17,573,059		$	12,185,616
Profit before income tax		1,318,274			389,316
Income tax (expense) benefit	(	55,427)			38,040
Profit for the period from continuing operations		1,262,847			427,356
Other comprehensive income, net of tax		406,283			626,009
Total comprehensive income for the period	$	1,669,130		$	1,053,365
Comprehensive income attributable to
non-controlling interest	$	604,840		$	379,239
Dividends paid to non-controlling interest	$	1,364,066		$	767,376
		Vivotek
		Threemonths ended			March31,
		2021			2020
Revenue	$	1,281,272		$	1,579,240
Profit before income tax		20,342			57,215
Income tax expense	(	18,374)	(		25,693)
Profit for the period from continuing operations		1,968			31,522
Other comprehensive (loss) income, net of tax	(	1,357)			2,243
Total comprehensive income for the period	$	611	$		33,765
Comprehensive (loss) income attributable to non-controlling interest	($	2,635)	$		17,015

~34~

Statements of cash flows

DET

Three months ended March 31,

Net cash provided by operating activities Net cash used in investing activities Net cash used in financing activities Effect of exchange rates on cash and cash equivalents Decrease in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period

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

2021 2020
$ 572,633 $ 1,286,758
( 1,374,139) ( 2,181,392)
( 19,431) ( 18,744)
( 16,857) ( 690,958)
( 837,794) ( 1,604,336)
13,043,385 12,515,101
$ 12,205,591 $ 10,910,765
----- End of picture text -----

Vivotek

Net cash used in operating activities

Net cash (used in) provided by investing activities Net cash provided by (used in) financing activities Effect of exchange rates on cash and cash equivalents Decrease in cash and cash equivalents Cash and cash equivalents, beginning of period Cash and cash equivalents, end of period

		Vivotek	Vivotek	Vivotek
		Three months ended			March31,
		2021			2020
($		29,398)	($		36,196)
(		215,482)			9,299
		71,281	(		17,749)
(		1,688)			1,671

(		175,287)	(		42,975)
		1,425,014			1,023,213
	$	1,249,727		$	980,238

(4) 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

~35~

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

(5) 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

~36~

determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.
E. Current income tax assets and liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.
F. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

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

There was no significant change in the reporting period. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2020.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand Checking accounts and demand deposits Time deposits Cash equivalents	March 31, 2021 5,752 $ 44,687,484 16,141,477 23,382 60,858,095 $	December 31, 2020 5,437 $ 44,121,426 14,446,742 138,380 58,711,985 $	March31,2020
			7,770 $ 30,143,928 19,439,145 -
			49,590,843 $

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.

~37~

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

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

Asset Items March 31, 2021 December 31, 2020 March 31, 2020
Current items:
Financial assets mandatorily
measured at fair value
through profit or loss
Listed stocks $ 365,378 $ 446,452 $ 419,037
Derivatives 190,905 290,505 17,991
Hybrid instrument-
Convertible bonds 34,398 47,827 101,282
590,681 784,784 538,310
Valuation adjustment 342,244 276,559 92,952
$ 932,925 $ 1,061,343 $ 631,262
Non-current items:
Financial assets mandatorily
measured at fair value
through profit or loss
Listed stocks $ 368,048 $ 368,048 $ 475,423
Emerging stocks 324,000 289,600 81,000
Unlisted stocks 1,489,792 1,572,384 2,286,696
- -
Convertible preferred stocks 197,148
Hybrid instrument-
Convertible bonds 900,000 974,983 74,983
3,278,988 3,205,015 2,918,102
Valuation adjustment ( 31,667) ( 262,819) ( 761,260)
$ 3,247,321 $ 2,942,196 $ 2,156,842
Liability Items
Current items:
Valuation adjustment
of derivatives $ 209,728 $ 60,060 $ 304,590
----- End of picture text -----

A. The Group has recognised financial assets and liabilities at fair value through profit or loss of $77,965 and ($771,288) for the three months ended March 31, 2021 and 2020, respectively.
B. Explanations of the transactions and contract information in respect of derivative financial assets and liabilities that the Group does not adopt hedge accounting are as follows:

~38~

- Sell AUD / Buy USD - Sell BRL / Buy USD - Sell EUR / Buy CAD - Sell EUR / Buy NOK - Sell EUR / Buy USD - Sell HKD / Buy USD - Sell INR / Buy USD - Sell JPY / Buy USD - Sell PLN / Buy NOK Sell THB / Buy JPY Sell THB / Buy USD Sell TWD / Buy USD Sell USD / Buy BRL Sell USD / Buy CZK - Sell USD / Buy JPY - Sell USD / Buy NOK - Sell USD / Buy RMB - Sell USD / Buy SGD - Sell USD / Buy THB - Sell USD / Buy TWD - Sell EUR / Buy NOK - Sell SEK / Buy NOK - Sell USD / Buy NOK Financial instruments Forward exchange contracts: Cross currency swap:	March31,2021	March31,2021
	AUD 6,750 BRL 18,908 EUR 3,252 EUR 4,000 EUR 46,500 HKD 60,000 INR 438,683 JPY 1,252,580 PLN 14,600 THB 42,677 THB 2,625,453 TWD 1,914,990 USD 1,500 USD 400 USD 6,200 USD 4,000 USD 251,646 USD 22,117 USD 176,000 USD 2,000 EUR 14,000 SEK 30,000 USD 6,500 Contract amount (nominal principal) (inthousands)	Contract period
		2020.11.25~2021.08.03 2021.02.03~2021.04.08 2021.01.19~2021.07.05 2020.12.03~2021.07.05 2020.09.25~2021.08.03 2020.11.25~2021.08.03 2021.03.03~2021.04.28 2020.11.16~2021.07.19 2020.12.11~2021.06.30 2021.02.03~2021.06.25 2021.03.31~2021.04.08 2021.01.21~2021.10.26 2021.03.08~2021.04.08 2021.03.25~2021.04.21 2021.02.05~2021.05.25 2021.02.15~2021.05.06 2020.12.14~2021.07.09 2020.11.02~2021.07.06 2020.12.29~2021.07.09 2021.03.05~2021.04.19 2020.12.03~2021.06.07 2020.12.23~2021.06.30 2020.12.03~2021.06.07

~39~

		December	31,2020
	Contract amount (nominal
Financial instruments	principal) (inthousands)		Contract period
Forward exchange contracts:
- Sell AUD / Buy USD	AUD	7,250	2020.08.24~2021.05.04
- Sell BRL / Buy USD	BRL	18,121	2020.12.04~2021.02.04
- Sell EUR / Buy NOK	EUR	9,000	2020.10.28~2021.05.06
- Sell EUR / Buy USD	EUR	39,500	2020.07.15~2021.06.02
- Sell GBP / Buy NOK	GBP	1,500	2020.12.21~2021.02.04
- Sell INR / Buy USD	INR	442,905	2020.12.16~2021.01.28
- Sell JPY / Buy USD	JPY	1,783,610	2020.07.24~2021.05.19
- Sell THB / Buy JPY	THB	26,113	2020.11.17~2021.03.26
- Sell USD / Buy JPY	USD	3,700	2020.11.30~2021.02.25
- Sell USD / Buy NOK	USD	7,000	2020.12.03~2021.04.08
- Sell USD / Buy RMB	USD	309,009	2020.10.12~2021.04.09
- Sell USD / Buy SGD	USD	26,305	2020.07.03~2021.05.03
- Sell USD / Buy THB	USD	170,000	2020.09.22~2021.04.02
- Sell USD / Buy AUD	USD	706	2020.10.29~2021.03.03
- Sell USD / Buy CZK	USD	400	2020.12.21~2021.01.21
- Sell HKD / Buy USD	HKD	90,000	2020.11.02~2021.05.04
Cross currency swap:
- Sell EUR / Buy NOK	EUR	13,955	2020.09.03~2021.03.04
- Sell RUB / Buy USD	RUB	74,720	2020.12.04~2021.02.04
- Sell SEK / Buy NOK	SEK	30,000	2020.12.23~2021.06.30
- Sell USD / Buy NOK	USD	2,000	2020.12.07~2021.01.06

~40~

March 31, 2020

- 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 THB / Buy JPY - Sell USD / Buy CZK - Sell USD / Buy JPY - Sell USD / Buy NOK - Sell USD / Buy RMB - Sell USD / Buy RUB - Sell USD / Buy SGD - Sell USD / Buy THB - Sell EUR / Buy NOK - Sell EUR / Buy RUB - Sell NOK / Buy EUR - Sell USD / Buy NOK Cross currency swap: Financial instruments Forward exchange contracts:	AUD 1,550 BRL 30,394 EUR 1,000 EUR 6,000 EUR 32,000 GBP 1,000 HKD 120,000 INR 135,878 JPY 629,011 THB 18,995 USD 300 USD 4,700 USD 9,000 USD 129,862 USD 700 USD 10,469 USD 118,300 EUR 7,000 EUR 500 NOK 40,726 USD 9,000 Contract amount (nominal principal) (in thousands)	Contractperiod
		2019.12.17~2020.08.04 2020.02.05~2020.05.06 2020.02.17~2020.04.03 2019.10.29~2020.07.03 2019.11.05~2020.08.04 2020.02.10~2020.04.03 2020.01.03~2020.07.02 2020.03.04~2020.05.06 2020.01.03~2020.05.20 2020.01.30~2020.06.26 2020.03.17~2020.04.21 2020.03.13~2020.05.22 2019.12.09~2020.06.05 2020.01.03~2020.06.19 2020.02.11~2020.04.03 2019.12.02~2020.06.04 2019.12.24~2020.06.22 2019.12.04~2020.06.05 2020.02.05~2020.04.03 2020.01.30~2020.04.03 2020.02.06~2020.08.05

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 within the Group. 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).

~41~

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

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Items March 31, 2021 December 31, 2020 March 31, 2020
Current items:
Equity instruments
Listed stocks $ - $ - $ 1,555,291
Valuation adjustment - - ( 1,344,234)
$ - $ - $ 211,057
Non-current items:
Equity instruments
Listed stocks $ 1,608,699 $ 1,608,699 $ 1,608,699
Unlisted stocks 674,640 672,828 688,407
2,283,339 2,281,527 2,297,106
Valuation adjustment ( 320,479) ( 353,844) ( 1,037,304)
$ 1,962,860 $ 1,927,683 $ 1,259,802
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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 $1,962,860, $1,927,683 and $1,470,859 as at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.
B. For the three months ended March 31, 2021 and 2020, the Group sold listed stocks whose fair value were $0 and $185,486, respectively, to adjust the stock position, resulting to an accumulated loss on disposal and valuation of $0 and $515,277, 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:

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income Cumulative loss reclassified to retained earnings due to derecognition	2021 2020 33,365 $ 462,518) ($ - $ 515,277) ($ Threemonths endedMarch31,

D. As at March 31, 2021, December 31, 2020 and March 31, 2020, 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 $1,962,860, $1,927,683 and $1,470,859, respectively.
E. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

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(4) Hedging financial assets and liabilities

A. As at March 31, 2021, December 31, 2020 and March 31, 2020, 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 in profit or loss and other comprehensive income:

Other equity At January 1, 2021 Add: Loss on hedge effectiveness- amount recognised in other comprehensive income At March 31, 2021 Other equity At January 1, 2020 Add: Loss on hedge effectiveness- amount recognised in other comprehensive income At March 31, 2020	Hedges of net investments in Cash flowhedges foreignoperations - $ 130,616 $ - 33) ( - $ 130,583 $ Hedges of net investments in Cash flowhedges foreign operations - $ 147,256 $ - 30,918) ( - $ 116,338 $

(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 March 31, 2021, December 31, 2020 and March 31, 2020 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.

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(5) Notes and accounts receivable

Notes and accounts receivable
			March31,2021		December31,2020				March31,2020
Notes receivable		$	3,480,763		$	3,733,595		$	3,332,497
Accounts receivable		$	57,472,799		$	59,684,699		$	45,968,452
Less: Allowance for
uncollectible accounts	(		471,213)	(		507,266)	(		1,089,672)
		$	57,001,586		$	59,177,433		$	44,878,780
Overdue receivables
(shown as other non-current
assets)		$	328,364		$	354,282		$	184,986
Less: Allowance for
uncollectible accounts	(		328,364)	(		354,282)	(		184,986)
		$	-		$	-		$	-
A. The aging analysis of accounts			receivable is as follows:
			March 31, 2021		December 31, 2020				March31,2020
Not past due	$		53,071,918	$		53,883,754		$	39,741,123
1 to 90 days			3,692,433			4,956,368			4,442,286
91 to 180 days			215,350			367,326			570,895
181 to 365 days			205,187			139,939			507,016
Over 366 days			287,911			337,312			707,132
	$		57,472,799	$		59,684,699		$	45,968,452

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

The above aging analysis was based on past due date.

B. As at March 31, 2021, December 31, 2020 and March 31, 2020, there was no notes receivable past due.
C. As at March 31, 2021, December 31, 2020 and March 31, 2020, accounts receivable and notes receivable were all from contracts with customers. As at January 1, 2020, the balance of receivables from contracts with customers amounted to $56,771,734.
D. The Group has no notes receivable and accounts receivable pledged to others as collateral.
E. As at March 31, 2021, December 31, 2020 and March 31, 2020, 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 $3,480,763, $3,733,595 and $3,332,497, and accounts receivable were $57,001,586, $59,177,433 and $44,878,780, 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

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the percentage of advance payments is zero, but is liable for the losses incurred on any business dispute. As at March 31, 2021, December 31, 2020 and March 31, 2020, the relevant information on unsettled accounts receivable that were sold is set forth below:

March 31, 2021

			March31,2021	March31,2021
Inventories Purchaser of accounts receivable Taishin International Bank Purchaser of accounts receivable Taishin International Bank Purchaser of accounts receivable Taishin International Bank Raw materials Work in process Finished goods Inventory in transit Raw materials Work in process Finished goods Inventory in transit	Accounts receivable transferred 4,375 $ Accounts receivable transferred 14,300 $ Accounts receivable transferred 15,460 $ $ $ $ $		Amount Amount derecognised Facilities advanced - $ 285,350 $ - $ Amount Amount derecognised Facilities advanced - $ 280,950 $ - $ Amount Amount derecognised Facilities advanced - $ 302,250 $ - $ December31,2020 March31,2020 March31,2021		Amount available for advance - $ Amount available for advance - $ Amount available for advance - $	Interest rate of amount advanced
						- Interest rate of amount advanced
						- Interest rate of amount advanced
					$
			Cost	Allowance for valuation loss
		$
		$

			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) ($
		$
		$

(7) Inventories

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				March31,2020
				Allowance for
		Cost		valuation loss		Bookvalue
Raw materials	$	15,486,772	($	2,818,349)	$	12,668,423
Work in process		4,553,672	(	9,116)		4,544,556
Finished goods		23,554,556	(	3,999,196)		19,555,360
Inventory in transit		1,196,470		-		1,196,470
	$	44,791,470	($	6,826,661)	$	37,964,809

The cost of inventories recognised as expense or loss for the period:

			Threemonths ended	Threemonths ended	Threemonths ended	March31,
			2021			2020
Cost of goods sold		$	49,753,704		$	39,508,620
Loss on market value decline and obsolete and
slow-moving inventories			127,159			446,019
Others	(		188,849)	(		75,924)
		$	49,692,014		$	39,878,715

(8) Investments accounted for under the equity method

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

Ownership % Bookvalue 29.50 728,129 $ 56,873 785,002 $ December31,2020	March31,2020	March31,2020
Ownership % 29.50	Ownership % 29.50	Bookvalue
		825,591 $ 49,376
		874,967 $

B. 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 March 31, 2021, December 31, 2020 and March 31, 2020, the carrying amount of the Group’s individually immaterial associates amounted to $787,406, $785,002 and $874,967, respectively.

		Three months ended March31,	Three months ended March31,
		2021	2020
Loss for the period from continuing operations	($	18,394)	($	26,017)
Other comprehensive (loss) income, net of tax	(	43)		54,010
Total comprehensive (loss) income	($	18,437)	$	27,993

C. 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.

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(9) Property, plant and equipment

Property, plant and equipment
																	Unfinished
																	construction
					Buildings and			Machinery and				Testing				and equipment
At January 1, 2021			Land			structures			equipment			equipment			Others	under acceptance				Total
Cost		$	14,267,858		$	44,204,419		$	46,515,093		$	18,755,289		$	19,836,201	$	10,592,148		$	154,171,008
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		$	13,471,293		$	3,835,655		$	3,826,981	$	10,592,148		$	68,441,975
2021
Opening net book amount		$	14,256,154		$	22,459,744		$	13,471,293		$	3,835,655		$	3,826,981	$	10,592,148		$	68,441,975
Additions			-			28,666			1,231,903			303,533			420,744		3,728,763			5,713,609
Disposal			-	(		4,745)	(		39,342)	(		15,973)	(		14,922)		-	(		74,982)
Transfer			-			123,482			844,312			172,829			100,204	(	1,240,827)			-
Depreciation charge			-	(		453,030)	(		1,534,462)	(		527,452)	(		587,568)		-	(		3,102,512)
Net exchange differences	(		8,875)			39,634			44,538			12,109	(		7,784)		39,613			119,235
Closing net book amount		$	14,247,279		$	22,193,751		$	14,018,242		$	3,780,701		$	3,737,655	$	13,119,697		$	71,097,325
At March 31, 2021
Cost		$	14,258,408		$	44,506,691		$	48,116,755		$	19,047,492		$	20,173,535	$	13,119,697		$	159,222,578
Accumulated depreciation and
impairment	(		11,129)	(		22,312,940)	(		34,098,513)	(		15,266,791)	(		16,435,880)		-	(		88,125,253)
		$	14,247,279		$	22,193,751		$	14,018,242		$	3,780,701		$	3,737,655	$	13,119,697		$	71,097,325

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																		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			-			41,541			1,099,705			394,945			344,535			2,198,478			4,079,204
Acquired through business combinations			-			-			-			-			47,035			-			47,035
Disposals	(		9,079)	(		4,703)	(		17,677)	(		4,443)	(		5,328)			-	(		41,230)
Transfer			-			72,559			602,526			194,726			85,185	(		954,996)			-
Depreciation charge			-	(		472,729)	(		1,154,164)	(		540,590)	(		582,774)			-	(		2,750,257)
Net exchange differences	(		83,272)	(		147,803)	(		313,319)	(		31,580)	(		162,503)	(		371,410)	(		1,109,887)
Closing net book amount		$	14,261,505		$	22,688,083		$	12,683,657		$	3,532,629		$	4,037,457		$	6,612,515		$	63,815,846

At March 31, 2020
Cost		$	14,273,546		$	43,273,237		$	43,673,426		$	17,558,533		$	19,004,683		$	6,612,515		$	144,395,940
Accumulated depreciation and
impairment	(		12,041)	(		20,585,154)	(		30,989,769)	(		14,025,904)	(		14,967,226)			-	(		80,580,094)
		$	14,261,505		$	22,688,083		$	12,683,657		$	3,532,629		$	4,037,457		$	6,612,515		$	63,815,846

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

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

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

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(10) Leasing arrangements - lessee

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:

March31,2021	December31,2020 March31,2020 Bookvalue Bookvalue 1,602,097 $ 1,672,165 $ 1,323,106 1,290,552 71,012 72,506 24,531 36,357 3,020,746 $ 3,071,580 $ 2021 2020 Depreciation charge Depreciationcharge 11,784 $ 10,820 $ 125,341 120,222 16,619 20,002 1,811 2,782 155,555 $ 153,826 $ Threemonths endedMarch31,	March31,2020
Bookvalue 1,602,532 $ 1,268,227 62,849 22,679		Bookvalue
		1,672,165 $ 1,290,552 72,506 36,357
2,956,287 $		3,071,580 $

	Depreciationcharge
	10,820 $ 120,222 20,002 2,782
	153,826 $

C. For the three months ended March 31, 2021 and 2020, the additions to right-of-use assets (excluding those acquired through business combinations) were $68,343 and $137,224, 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	Three months ended March31,	Three months ended March31,
	2021 5,560 $ 113,761 $	2020
		5,988 $
		108,453 $

E. For the three months ended March 31, 2021 and 2020, the Group’s total cash outflow for leases were $256,716 and $306,707, respectively.

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F. Extension options
(a) Extension options are included in the Group’s lease contracts pertaining to certain land. These terms and conditions are the lessor’s general practice and for the Group to effectively utilise the assets.
(b) In determining the lease term, the Group takes into consideration all facts and circumstances that create an economic incentive to exercise an extension option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

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(11) Intangible assets

Intangible assets
											Customer			Technical
At January 1, 2021		Trademarks				Patents		Goodwill		Relationship				Skill			Others			Total
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
2021
Opening net book amount		$	2,763,553		$	472,382	$	53,499,792		$	9,241,185		$	8,313,791		$	1,168,927		$	75,459,630
Additions - acquired separately			-			886		-			-			8,742			470,797			480,425
Additions - acquired through
business combinations (Note)			-			-		9,015			-			-			-			9,015
Reclassifications (Note)			-			-		137,896	(		25,631)	(		112,265)			-			-
Amortisation	(		59,620)	(		40,258)		-	(		340,385)	(		271,282)	(		197,094)	(		908,639)
Net exchange differences			25,365			1,209		669,242			123,537			122,920			9,377			951,650
Closing net book amount		$	2,729,298		$	434,219	$	54,315,945		$	8,998,706		$	8,061,906		$	1,452,007		$	75,992,081

At March 31, 2021
Cost		$	3,988,190		$	1,985,492	$	55,125,700		$	17,688,809		$	11,450,816		$	4,678,226		$	94,917,233
Accumulated amortisation and
impairment	(		1,258,892)	(		1,551,273)	(	809,755)	(		8,690,103)	(		3,388,910)	(		3,226,219)	(		18,925,152)
		$	2,729,298		$	434,219	$	54,315,945		$	8,998,706		$	8,061,906		$	1,452,007		$	75,992,081

(Note) The additions - acquired through business combinations and reclassifications resulted from the adjustment of the contingent proceeds and the reallocation of the purchase price relative to the acquisition of Trihedral. The allocation of acquisition price was completed in the first quarter of 2021 and the acquisition price increased by $9,015 based on the adjustment terms in the contract.

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											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			-			1,577		-			-			-			152,559			154,136
Additions - acquired through
business combinations			-			-		219,391			145,429			-			46,091			410,911
Amortisation	(		62,030)	(		39,496)		-	(		440,434)	(		290,254)	(		156,657)	(		988,871)
Net exchange differences			15,266			28,724		365,910			114,328			77,862	(		71,628)			530,462
Closing net book amount		$	2,933,366		$	538,628	$	57,118,964		$	11,044,310		$	9,615,408		$	1,288,615		$	82,539,291

At March 31, 2020
Cost		$	4,003,343		$	1,941,117	$	57,126,885		$	18,516,346		$	12,023,036		$	3,878,601		$	97,489,328
Accumulated amortisation and
impairment	(		1,069,977)	(		1,402,489)	(	7,921)	(		7,472,036)	(		2,407,628)	(		2,589,986)	(		14,950,037)
		$	2,933,366		$	538,628	$	57,118,964		$	11,044,310		$	9,615,408		$	1,288,615		$	82,539,291

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

		Threemonths	ended	March31,
		2021		2020
Operating costs	$	12,937	$	12,823
Selling expenses		401,396		504,280
Administrative expenses		36,860		36,429
Research and development expenses		457,446		435,339
	$	908,639	$	988,871

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

==> picture [59 x 27] 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	March31,2021 33,928,384 $ 5,146,053 4,916,491 3,232,954 2,367,400 1,640,277 1,106,907 518,013 1,459,466 54,315,945 $ 691,811 $ 386,823 1,078,634 $	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 $		March31,2020
				35,937,809 $ 5,146,053 5,207,673 3,232,954 2,507,610 1,737,423 1,172,940 1,398,016 778,486 57,118,964 $ 691,811 $ 386,823 1,078,634 $

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

D. The Group’s goodwill arose from business combinations in order to improve benefit comprising of potential customer relations and operating revenue in the location of acquired companies. Based on IAS 36, goodwill acquired in a business combination should be tested at least annually

~53~

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.

In assessing the impairment of goodwill and trademarks with indefinite useful lives, for the goodwill of DET and Vivotek, as there is an open market quotation, the recoverable amount is the higher of the companies’ fair value less costs of disposal and value in use; for the goodwill and trademarks with indefinite useful lives of other companies, 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.

(12) Other non-current assets

(12)	Other non-current assets
(13) (14)	Short-term borrowings Other payables 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 Salary and bonus payable Dividends payable Others	March31,2021 1,021,683 $ 240,484 174,967 111,393 42,010 521,625 2,112,162 $ March31,2021 1,678,806 $ 65,415,765 $ 0.48%~4.85% March31,2021 17,985,232 $ 1,364,066 15,053,265 34,402,563 $	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% December31,2020 17,957,602 $ - 14,926,619 32,884,221 $	March 31, 2020
				1,245,790 $ 340,250 48,309 72,259 55,396 677,773
				2,439,777 $
				March31,2020
				9,846,267 $
				75,760,249 $
				0.40%~7.00%
				March31,2020
				14,336,020 $ 767,376 11,919,168
				27,022,564 $

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- (15) Long term borrowings

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Type of borrowings March 31, 2021 December 31, 2020 March 31, 2020
Credit loans $ 36,142,891 $ 39,008,242 $ 28,758,525
Collateral loans 349,256 353,865 370,551
36,492,147 39,362,107 29,129,076
Less: Current portion
(shown as other current
liabilities) ( 46,745) ( 48,117) ( 61,580)
$ 36,445,402 $ 39,313,990 $ 29,067,496
Credit lines $ 84,266,599 $ 83,362,621 $ 78,986,914
Interest rate range 0.31%~6.23% 0.31%~6.23% 0.31%~6.23%
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A. As at March 31, 2021, the revolving loans of $35,779,160 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.

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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) For the aforementioned pension plan, the Group recognised pension costs of $35,627 and $36,782 for the three months ended March 31, 2021 and 2020, respectively.
(c) Expected contributions to the defined benefit pension plans of the Group within one year from March 31, 2021 are $149,232.

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.
(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 March 31, 2021, 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

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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.

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 March 31, 2021, there were 962 thousand units outstanding, representing 4,810 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

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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 not be 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 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 2020 earnings had been proposed by the Board of Directors on February 24, 2021 and the appropriations of 2019 earnings had been approved by the shareholders during their meeting on June 10, 2020. Details are summarised below:

their meeting on June 10, 2020.	Details are summarised below:	Details are summarised below:	Details are summarised below:
Legal reserve appropriated Special reserve appropriated Cash dividends	Years endedDecember31,
	Dividends per share Amount (indollars) 2,355,218 $ 4,921,173 14,286,488 5.5 $ 2020	2019
	Amount 2,355,218 $ 4,921,173 14,286,488	Amount 2,311,780 $ 61,002 12,987,717	Dividends per share (indollars)
			5.0 $

As at April 28, 2021, the abovementioned 2020 earnings appropriation has not yet been approved by the shareholders. These financial statements do not reflect the dividends payable. Information about the appropriation of employees’ bonus and directors’ and supervisors’ remuneration by the

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Company as proposed by the Board of Directors and resolved by the stockholders will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(20) Operating revenue

Operating revenue
	0	Three months	ended	March31,
		2021		2020
Revenue from contracts with customers		72,485,283 $	$	55,678,341

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 43,527,028 $ 43,527,028 - 43,527,028 $	Automation Infrastructure Others 10,618,037 $ 18,264,109 $ 76,109 $ 10,199,029 17,407,143 50,611 419,008 856,966 25,498 10,618,037 $ 18,264,109 $ 76,109 $ Three months ended March31,2021 Three months ended March 31, 2020	Automation Infrastructure Others 10,618,037 $ 18,264,109 $ 76,109 $ 10,199,029 17,407,143 50,611 419,008 856,966 25,498 10,618,037 $ 18,264,109 $ 76,109 $ Three months ended March31,2021 Three months ended March 31, 2020	Automation Infrastructure Others 10,618,037 $ 18,264,109 $ 76,109 $ 10,199,029 17,407,143 50,611 419,008 856,966 25,498 10,618,037 $ 18,264,109 $ 76,109 $ Three months ended March31,2021 Three months ended March 31, 2020	Total
				72,485,283 $
				71,183,811 1,301,472
				72,485,283 $

Power electronics 30,593,023 $ 30,589,980 3,043 30,593,023 $	Automation 8,496,223 $ 7,764,432 731,791 8,496,223 $	Infrastructure 16,509,689 $ 15,653,238 856,451 16,509,689 $	Others 79,406 $ 17,983 61,423 79,406 $	Total
				55,678,341 $
				54,025,633 1,652,708
				55,678,341 $

B. Contract assets and liabilities

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

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

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Three months ended March 31, 2021 2020

Revenue recognised that was included in the contract liability balance at the beginning

of the period

Advance sales receipts, advance receipts

for automation equipment contract and resolution of communication equipment power resource system, etc.

$ 3,041,658 $ 3,352,208

(21) Interest income

Interest income
			Three months ended		March 31,
			2021		2020
Interest income from bank deposits	$		117,189	$	163,045
Other interest income			216		-
	$		117,405	$	163,045
Other income
			Three months ended		March 31,
			2021		2020
Sample sales income	$		78,198	$	77,473
Dividend income			57,886		8,126
Testing fee income			47,630		15,188
Mold fee income			42,445		22,202
Rental income			29,793		31,435
Others			467,768		865,425
	$		723,720	$	1,019,849
Other gains and losses
			Threemonths ended		March31,
			2021		2020
Loss on disposal of property, plant and
equipment	($		17,590)	($	13,755)
Loss on disposal of investments (Note)			-	(	84,685)
Net currency exchange gain			535,102		735,531
Gain (loss) on financial assets/liabilities at fair
value through profit or loss			77,965	(	771,288)
Miscellaneous disbursements	(		35,979)	(	52,829)
		$	559,498	($	187,026)

(22) Other income

(23) Other gains and losses

(Note) The Group recognised a gain (loss) as a result of measuring at fair value its 41% equity interest in DPI, held before the business combination. Please refer to Note 6(30) for more information.

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(24) Finance costs

(24)	Finance costs	Finance costs
(25)	Expenses by nature 2021 2020 Interest expense 69,206 $ 112,825 $ Three months ended March31, 2021 2020 Employee benefit expense 16,144,539 $ 12,981,128 $ Depreciation charges on property, plant and equipment 3,102,512 2,750,257 Depreciation charges on right-of-use assets 155,555 153,826 Amortisation charges on intangible assets 908,639 988,871 20,311,245 $ 16,874,082 $ Three months ended March 31,
		16,874,082 $

(26) Employee benefit expense

Employee benefit expense equipment Depreciation charges on right-of-use assets Amortisation charges on intangible assets	3,102,512 2,750,257 155,555 153,826 908,639 988,871 20,311,245 $ 16,874,082 $	3,102,512 2,750,257 155,555 153,826 908,639 988,871 20,311,245 $ 16,874,082 $
Post-employment benefits Defined contribution plan Defined benefit plan Other employee benefits	Three months ended March 31,
	2021 236,650 $ 35,627 272,277 15,872,262 16,144,539 $	2020
		245,594 $ 36,782
		282,376 12,698,752
		12,981,128 $

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 three months ended March 31, 2021 and 2020, employees’ compensation was accrued at $785,126 and $310,715, respectively; while directors’ remuneration was accrued at $10,600 and $9,449, respectively. The aforementioned amounts were recognised in salary expenses.

For the three months ended March 31, 2021, 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. Employees’ compensation and directors’ remuneration as resolved by the Board of Directors were in agreement with the amount recognised in the 2020 financial statements.

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

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(27) Income tax

A. Income tax expense

(a) Components of income tax expense:

Components of income tax expense:
		Threemonths	ended	March31,
		2021		2020
Current tax:
Current tax on profits for the year	$	1,210,758	$	590,464
Tax on undistributed surplus earnings		-		15,255
Total current tax		1,210,758		605,719
Deferred tax:
Origination and reversal of temporary
differences		560,194		2,728
	$	1,770,952	$	608,447

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

follows:
		Three months ended		March 31,
		2021		2020
Currency translation differences		98,153 $	($	119,976)
Gain or loss on hedging instruments	(	4)	(	3,435)
		98,149 $	($	123,411)

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

returns are as follows:
	Latest year
	assessed by
	Tax Authority
The Company and Cyntec	2017
DECC, DelBio, UNICOM, Power Forest Technology Corporation,	2018
Vivotek and Vatics Inc.
AMT, Lidlight Inc., Realwin., Otus Imaging and Aetek Inc.	2019

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(28) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares: Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares: Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Threemonths endedMarch31,		2021
	Weighted average number of ordinary shares Amount outstanding aftertax (sharesinthousands) 6,580,300 $ 2,597,543 6,580,300 $ 2,597,543 - 7,054 6,580,300 $ 2,604,597 Threemonths endedMarch31,		Earnings per share (indollars)
			2.53 $
			2.53 $
			2020
	Amount aftertax 2,067,299 $ 2,067,299 $ - 2,067,299 $	Weighted average number of ordinary shares outstanding (sharesinthousands) 2,597,543 2,597,543 11,827 2,609,370	Earnings per share (indollars)
			0.80 $
			0.79 $

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(29) Share-based payment

A. For the three months ended March 31, 2021 and 2020, the Group’s share-based payment arrangements were as follows:

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

Type of arrangement	Grant date	Quantity granted	Contract period	Vestingconditions
Power Forest - Employee	2017.3.3	1,000,000	6 years	1 year’s service: 40% vested
stock options			(Note)	2 years’ service: 70% vested
				3 years’ service: 100% vested
`〃`	2018.3.30	500,000	6 years	1 year’s service: 40% vested
			(Note)	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 restricted	2019.8.19	800,000	2 years	1~2 years’ performance
stocks to employees

Note: As Power Forest and Cyntec converted shares on July 1, 2020, in accordance with the issuance of employee stock option certificates and exercise methods, the options may be subject to accelerated vesting.
B. Details of the share-based payment arrangements are as follows:
(a) Employee share options

Options outstanding opening balance at January 1 Options forfeited Options expired Options outstanding at March 31 Options exercisable at March 31	Weighted-average Weighted-average exercise price exercise price options (indollars) options (indollars) - - $ 1,672,000 15.79 $ - - 100,000) ( 15.00 - - 36,000) ( 16.50 - - $ 1,536,000 15.83 $ - - $ 1,438,000 15.88 $ 2021 2020 No. of No. of	2020	2020
			Weighted-average exercise price (indollars)
			15.79 $ 15.00 16.50
			15.83 $
			15.88 $

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(b) Restricted stocks to employees

January 1 Expired during the year March 31	2021 2020 No. of shares No. of shares 374,000 798,000 - 10,000) ( 374,000 788,000

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

March 31, 2021 and December 31, 2020: None.

March 31, 2020

				Exercise price
Issue date approved	Expiry date	No. of shares		(in dollars)
November 8, 2016	November 7, 2020	846,000	$	16.50
March 3, 2017	March 2, 2023	365,000		15.00
March 30, 2018	March 29, 2024	325,000		15.00

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

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

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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:

Three months ended March 31, 2021 2020 - Equity-settled $ $ 9,925

(30) Business combinations

A. The Group has no business combinations during the three months ended March 31, 2021. Business combinations of the Group for the year ended March 31, 2020 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 originally and obtained control over Trihedral. As a result of the acquisition, the Group is expected to strengthen industrial automation and systems integration layout. The allocation of the acquisition price of Trihedral was completed in the first quarter of 2021, and the acquisition price increased by $9,015 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:

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			Trihedral(Note)			DPI
Purchase consideration
Cash		$	885,725		$	250,380
Contingent consideration			134,759			-
			1,020,484			250,380
Fair value of DPI’s equity interest held before
the business combination			-			173,132
			1,020,484			423,512
Fair value of the identifiable assets acquired
and liabilities assumed
Cash and cash equivalents			18,234			29,756
Other current assets			72,912			413,005
Property, plant and equipment			6,852			47,035
Intangible assets			236,302			154,346
Other non-current assets			-			23,543
Other current liabilities	(		9,666)	(		496,015)
Deferred tax liabilities	(		1,814)			-
Other non-current liabilities			-	(		4,723)
Total identifiable net assets			322,820			166,947
Goodwill		$	697,664		$	256,565

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

C. The allocation of the acquisition price of Trihedral was completed in the first quarter of 2021 and the fair values of the acquired identifiable intangible assets and goodwill were $236,302 and $697,664, respectively.
D. The allocation of the acquisition price of DPI was completed in the second quarter of 2020 and the fair values of the acquired identifiable intangible assets and goodwill were $154,346 and $256,565, respectively.
E. The Group originally held 41% of share ownership in DPI before the business combination. Loss on remeasurement of fair value for the first quarter of 2020 amounted to $47,636.
(31) Supplemental cash flow information

Financing activities with no cash flow effects

Financing activities with no cash flow effects
Cash dividends declared but yet to be paid to non-controlling interest	Threemonths endedMarch31,
	2021 1,364,066 $	2020
		767,376 $

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(32) Changes in liabilities from financing activities

						Long-term
						borrowings			Liabilities from
			Short-term			(including current			financing
			borrowings			portion)			activities-gross
At January 1, 2021		$	2,001,532		$	39,362,107		$	41,363,639
Changes in cash flow
from financing activities	(		322,726)	(		2,869,960)	(		3,192,686)
At March 31, 2021		$	1,678,806		$	36,492,147		$	38,170,953
						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			2,270,335			1,314,701			3,585,036
At March 31, 2020		$	9,846,267		$	29,129,076		$	38,975,343

7. RELATED PARTY TRANSACTIONS

(1) Names and relationship of related parties

LATED PARTY TRANSACTIONS Names and relationship of related parties
Names and relationshipof relatedparties	Relationship with the Group
Optovue, Inc.	Associate
Compower AS	"
Fujian Kaixin Construciton Engineering Co., Ltd.	"
Delta Networks (Xiamen) Ltd.	"
Digital Projection Asia Pte Ltd.	"

(2) Significant transactions and balances with related parties

A. Operating revenue

Operating revenue
Sales of goods: Associates Sales of services: Associates	Threemonths endedMarch31,
	2021 43,924 $ 733 44,657 $	2020
		20,902 $ -
		20,902 $

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

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B. Purchases of goods

Purchases of goods
		Threemonths	ended	March31,
		2021		2020
Purchases of goods:
Associates	$	13,281	$	14,643

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

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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

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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.

E. Period-end balances arising from other transactions

Other receivables-related parties Associates	March31,2021 41 $	December31,2020 199 $	March31,2020
			656 $

The above pertain mainly to payments on behalf of others.

(3) Key management compensation

Three months ended March 31,

Short-term employee benefits Post-employment benefits	2021 75,933 $ 157 76,090 $	2020
		37,312 $ 192
		37,504 $

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8. PLEDGED ASSETS

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

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Book Value
March 31, December 31, March 31,
Pledged assets 2021 2020 2020 Pledge purpose
Demand deposits and time $ 496,395 $ 483,361 $ 258,792 Performance bonds,
deposits (shown as other custom guarantee, court
current assets) attachments and other
guarantee deposits
Demand deposits and time 174,967 187,257 48,309 Performance bonds and
deposits (shown as other custom guarantee
non-current assets)
Property, plant and Long-term borrowings
equipment 565,442 567,141 577,413 and credit line
$ 1,236,804 $ 1,237,759 $ 884,514
----- End of picture text -----

9. 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	March 31, 2021 5,472,614 $ 12,175 $	December 31, 2020 6,213,358 $ 72,804 $	March31,2020
			8,276,737 $
			171,786 $

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

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.

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(2) Financial instruments

A. 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 Cash and cash equivalents Notes receivable Accounts receivable Other receivables Guarantee deposits paid Other financial assets Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities designated as at fair value through profit or loss Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable Other payables Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities (including current portion) Financial assets at amortised cost	March31,2021 4,180,246 $ 1,962,860 $ 60,858,095 $ 3,480,763 57,030,113 1,799,154 240,484 671,362 124,079,971 $ 209,728 $ 1,678,806 $ 4,295 47,781,151 34,402,563 36,492,147 347,019 120,705,981 $ 1,880,645 $	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 $ 60,060 $ 2,001,532 $ 2,770 46,717,151 32,884,221 39,362,107 418,754 121,386,535 $ 1,949,698 $	March31,2020
			2,788,104 $
			1,470,859 $
			49,590,843 $ 3,332,497 44,907,475 1,504,223 340,250 307,101
			99,982,389 $
			304,590 $
			9,846,267 $ 11,304 34,509,700 27,022,564 29,129,076 406,962
			100,925,873 $
			1,952,302 $

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

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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.
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:

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March 31, 2021

	March31,2021
(Foreign currency: functional currency) Financial assets Monetary items USD:RMB (Note) USD:NTD USD:THB (Note) EUR:USD (Note) RMB:USD (Note) Non-monetary items USD:NTD THB:USD (Note) RMB:USD (Note) USD:THB (Note) NOK:USD (Note) THB:NTD EUR:USD (Note) CAD:USD (Note) Financial liabilities Monetary items USD:NTD USD:THB (Note) USD:RMB (Note) RMB:USD (Note) EUR:USD (Note) SGD:USD (Note)	Foreign currency amount Exchange (inthousands) rate 483,455 $ 6.5551 458,181 28.5350 308,283 31.1892 117,423 1.1733 726,887 0.1526 5,659,841 $ 28.5350 50,913,140 0.0321 9,374,712 0.1526 548,680 31.1892 3,608,542 0.1172 4,797,831 0.9149 46,522 1.1733 45,669 0.7938 490,492 $ 28.5350 345,283 31.1892 340,920 6.5551 1,660,735 0.1526 51,316 1.1733 55,169 0.7433	Book value (NTD)
		13,795,389 $ 13,074,206 8,796,842 3,931,323 3,164,232 161,503,577 $ 46,580,432 40,809,340 15,656,579 12,065,991 4,389,536 1,557,559 1,034,410 13,996,180 $ 9,852,651 9,728,155 7,229,396 1,718,064 1,170,140

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

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December 31, 2020

		December31,2020
(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)	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.

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==> picture [422 x 447] intentionally omitted <==

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

March 31, 2020
Foreign currency
amount Exchange Book value
(in thousands) rate (NTD)
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD:NTD $ 305,509 30.2250 $ 9,234,023
EUR:USD (Note) 83,419 1.0998 2,772,861
RMB:USD (Note) 1,296,865 0.1410 5,525,321
USD:RMB (Note) 289,403 7.0942 8,747,213
USD:THB (Note) 151,548 32.6052 4,580,528
Non-monetary items
USD:NTD $ 4,764,276 30.2250 $ 144,000,240
THB:USD (Note) 51,327,064 0.0307 47,580,188
RMB:USD (Note) 8,820,927 0.1410 37,581,738
USD:THB (Note) 523,645 32.6052 15,827,181
NOK:USD (Note) 4,291,826 0.0952 12,345,823
THB:NTD 4,709,376 0.9270 4,365,592
EUR:USD (Note) 74,585 1.0998 2,479,192
Financial liabilities
Monetary items
USD:NTD $ 279,719 30.2250 $ 8,454,496
RMB:USD (Note) 1,835,320 0.1410 7,819,419
USD:RMB (Note) 209,373 7.0942 6,328,305
USD:THB (Note) 171,477 32.6052 5,182,900
----- 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 three months ended March 31, 2021 and 2020 amounted to $535,102 and $735,531, respectively.

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

(Foreign currency: functional currency) Financial assets Monetary items USD:RMB (Note) USD:NTD USD:THB (Note) EUR:USD (Note) RMB:USD (Note) Financial liabilities Monetary items USD:NTD USD:THB (Note) USD:RMB (Note) RMB:USD (Note) EUR:USD (Note) SGD:USD (Note)	Degree of Effect on Effect on other comprehensive variation profit or loss income 1% 137,954 $ - $ 1% 130,742 - 1% 87,968 - 1% 39,313 - 1% 31,642 - 1% 139,962 $ - $ 1% 98,527 - 1% 97,282 - 1% 72,294 - 1% 17,181 - 1% 11,701 - Three months ended March31,2021 Sensitivity analysis

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

Three months ended March31,2020	Three months ended March31,2020	Three months ended March31,2020
Sensitivity analysis
Degree of variation 1% 1% 1% 1% 1% 1% 1% 1% 1%	Effect on profit or loss 92,340 $ 27,729 55,253 87,472 45,805 84,545 $ 78,194 63,283 51,829	Effect on other comprehensive income
		- $ - - - - - $ - - -

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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 three months ended March 31, 2021 and 2020 would have increased/decreased by $16,597 and $9,763, 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 $15,536 and $10,479, 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 three months ended March 31, 2021 and 2020, the Group’s borrowings at variable rate were denominated in NTD, USD and JPY.
ii. As at March 31, 2021 and 2020, if the interest rate increases by 0.25%, with all other variables held constant, profit, net of tax for the three months ended March 31, 2021 and 2020 would have decreased by $18,240 and $14,559, respectively. The main factor is that changes in interest expense result from floating rate borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of financial instruments which were settled in accordance with trading conditions.
ii. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

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iii. Individual risk limits are set based on internal or external ratings in accordance with limits set by the credit controller. The utilisation of credit limits is regularly monitored.
iv. For banks and financial institutions, only well rated parties are accepted.
v. The Group adopts the assumption under IFRS 9, that is, if the contract payments are past due over 180 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
vi. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are not expected to be recovered and are transferred to overdue receivables.
vii. The Group classifies customer’s accounts receivable and contract assets in accordance with customer types. The Group applies the simplified approach using 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 March 31, 2021, December 31, 2020 and March 31, 2020, the provision matrix is as follows:

At March 31, 2021 Expected loss rate Total book value Loss allowance Expected loss rate Total book value Loss allowance At December 31, 2020 Expected loss rate Total book value Loss allowance Expected loss rate Total book value Loss allowance	Notpast due 0.05% 53,071,918 $ 27,359 $ 181-365 days past due 45.75% 205,187 $ 93,881 $ Not past due 0.00% 53,883,754 $ 1,356 $ 181-365 days past due 37.46% 139,939 $ 52,415 $	1-90dayspast due 1.14% 3,692,433 $ 42,188 $ Over 366 days past due 92.07% 287,911 $ 265,072 $ 1-90 days past due 0.92% 4,956,368 $ 45,703 $ Over 366 days past due 95.21% 337,312 $ 321,141 $	91-180dayspast due
			19.83% 215,350 $
			42,713 $
			Total
			57,472,799 $
			471,213 $
			91-180 days past due
			23.59% 367,326 $
			86,651 $
			Total
			59,684,699 $
			507,266 $

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==> picture [421 x 164] intentionally omitted <==

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

Not past due 1-90 days past due 91-180 days past due
At March 31, 2020
Expected loss rate 0.02% 1.82% 17.86%
Total book value $ 39,741,123 $ 4,442,286 $ 570,895
Loss allowance $ 6,498 $ 80,682 $ 101,950
181-365 days Over 366 days
past due past due Total
Expected loss rate 42.57% 96.83%
Total book value $ 507,016 $ 707,132 $ 45,968,452
Loss allowance $ 215,860 $ 684,682 $ 1,089,672
----- End of picture text -----

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:

At January 1 Reversal of impairment loss Write-offs during the period Effect of foreign exchange At March 31 At January 1 Provision for (reversal of) impairment loss Acquired from business combinations Write-offs during the period Effect of foreign exchange At March 31			2021
	Notes Accounts receivable receivable - $ 507,266 $ - 37,907) ( - 1) ( - 1,855 - $ 471,213 $
	Notes Accounts receivable receivable - $ 1,009,193 $ - 84,772 - 26,588 - 15) ( - 30,866) ( - $ 1,089,672 $

For provisioned loss for the three months ended March 31, 2021 and 2020, the reversal of (provision for) impairment loss arising from customers’ contracts amounted to $58,861 and ($75,750), 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

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financial liabilities and to the expected maturity date for derivative financial liabilities:

Non-derivative financial liabilities:

Non-derivative financial liabilities:
Less than March31,2021 1year Short-term borrowings 1,678,806 $ Notes and accounts payable (including related parties) 47,785,446 Other payables 34,402,563 Lease liabilities (including current portion) 529,758 Long-term borrowings (including current portion) 46,745 Less than December31,2020 1year Short-term borrowings 2,001,532 $ Notes and accounts payable (including related parties) 46,719,921 Other payables 32,884,221 Lease liabilities (including current portion) 538,386 Long-term borrowings (including current portion) 48,117 Less than March31,2020 1year Short-term borrowings 9,846,267 $ Notes and accounts payable (including related parties) 34,521,004 Other payables 27,022,564 Lease liabilities (including current portion) 546,352 Long-term borrowings (including current portion) 61,580 Non-derivative financial liabilities: Non-derivative financial liabilities:	Between 1 and2years - $ - - 346,549 31,675,153 Between 1 and2years - $ - - 361,912 34,521,128 Between 1 and2years - $ - - 376,136 26,373,994	Between 2 and 5 years - $ - - 468,270 4,368,365 Between 2 and 5 years - $ - - 497,277 4,371,048 Between 2 and 5 years - $ - - 486,352 2,230,630	Over 5 years
			- $ - - 536,068 401,884 Over 5 years
			- $ - - 552,123 421,814 Over 5 years
March31,2020 Short-term borrowings Notes and accounts payable (including related parties) Other payables Lease liabilities (including current portion) Long-term borrowings (including current portion)
			- $ - - 543,462 462,872

Derivative financial liabilities:

As at March 31, 2021, December 31, 2020 and March 31, 2020, 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.

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(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:

March 31, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity instruments Convertible preferred stocks 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 1,659,688 $ - 31,255 - 1,288,220 2,979,163 $ - $	Level 2 - $ - 900,000 190,905 - 1,090,905 $ 209,728 $	Level3 1,201,250 $ 197,148 - - 674,640 2,073,038 $ - $	Total
				2,860,938 $ 197,148 931,255 190,905 1,962,860
				6,143,106 $
				209,728 $

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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 March 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	Level 1 1,414,718 $ 52,577 - 1,254,855 2,722,150 $ - $ Level 1 976,310 $ 102,005 - 782,452 1,860,767 $ - $	Level 2 - $ 900,000 290,505 - 1,190,505 $ 60,060 $ Level 2 - $ - 17,991 - 17,991 $ 304,590 $	Level3 1,270,756 $ 74,983 - 672,828 2,018,567 $ - $ Level3 1,616,815 $ 74,983 - 688,407 2,380,205 $ - $	Total
				2,685,474 $ 1,027,560 290,505 1,927,683
				5,931,222 $
				60,060 $
				Total
				2,593,125 $ 176,988 17,991 1,470,859
				4,258,963 $
				304,590 $

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 Convertible (exchangeable) Closing price Closing price

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(b) Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques that are approved for financial management.
(c) When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
(d) The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate.
(e) The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using the valuation model is adjusted accordingly with additional inputs. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.
(f) The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty.
E. For the three months ended March 31, 2021 and 2020, there was no transfer between Level 1 and Level 2.
F. The following chart is the movement of Level 3 for the three months ended March 31, 2021 and 2020:

2020:
At January 1 Losses recognised in profit and loss Acquired during the period Disposals during the period Transfers out from Level 3 Net exchange differences At March 31			2021
		Hybrid instruments	Debt instruments
	74,983 $ 5,131) ( - 69,852) ( - - - $		- $ - 197,148 - - - 197,148 $

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				2020
	Hybrid	instruments	Equity	instruments		Total
At January 1	$	-	$	2,272,745	$	2,272,745
Losses recognised in profit or
loss		-	(	4,276)	(	4,276)
Acquired during the period		74,983		33,300		108,283
Net exchange differences		-		3,453		3,453
At March 31	$	74,983	$	2,305,222	$	2,380,205

G. In the first quarter of 2021, 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:

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Non-derivative equity instruments: Unlisted shares `〃` Non-derivative debt instruments: Convertible preferred stocks	Fair value at March 31,2021	Valuation technique	Significant unobservable input	Range (median)	Relationship of inputs to fair value
	$ 1,610,489 265,400 197,148	Most recent non-active market price Market comparable companies Option pricing model of VC Method	Not applicable Price to book ratio multiple Price to asset ratio multiple Price to earning ratio multiple Discount for lack of marketability Value multiple	- 0.91~1.77 (1.20) 1.43~13.65 (1.83) 11.30~92.6 (12.3) 20% (20%) 39.0~49.8 (44.4)	Not applicable The higher the multiple, the higher the fair value The higher the multiple, the higher the fair value; the higher the discount for lack of marketability, the lower the fair value

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Non-derivative equity instruments: Unlisted shares `〃` Hybrid instruments: Convertible bonds Non-derivative equity instruments: Unlisted shares `〃` Hybrid instruments: Convertible bonds	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 March 31,2020	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	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
	$ 2,039,822 265,400 74,983	Most recent non-active market price Market comparable companies Most recent non-active market price	Not applicable Price to book ratio multiple Discount for lack of marketability Not applicable	- 1.96~19.97 20% -	Not applicable The higher the multiple, the higher the fair value The discount for lack of marketability, the lower the fair value Not applicable

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

March 31, 2021

		March3
Financial assets Equity instruments Financial assets Debt instrument Financial assets Equity instruments Financial assets Equity instruments	Discount for lack of marketability ± 1% Value multiple ± 1% Discount for lack of marketability ± 1% Discount for lack of marketability ± 1% Input Change Input Change Input Change	Favorable Unfavorable change change - $ - $ 1,097 $ 1,097) ($ Recognised in profit or loss December
		Favorable change - $
		Favorable Unfavorable change change - $ - $ profit or loss Recognised in
		Favorable change - $

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.

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D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
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 4.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.
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 6.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 7.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland China: Please refer to table 4, 5 and 6 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), with investee companies in the Mainland China, for the three months ended March 31, 2021.

(4) Major shareholders information

Please refer to table 9.

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.

~88~

Because of the change in product classification, the Group’s internal business segments were restructured. Accordingly, the prior period information was restated for comparative purposes.

(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:

is as follows:
Revenue from external customers Segment income (Note) Revenue from external customers Segment income (Note)	Power electronics Automation Infrastructure business business business Total 43,527,028 $ 10,618,037 $ 18,264,109 $ 72,409,174 $ 5,061,756 $ 1,270,178 $ 1,169,290 $ 7,501,224 $ Threemonths endedMarch31,2021 Three months ended March 31, 2020
	Power electronics business 30,593,023 $ 1,669,008 $	Automation Infrastructure business business 8,496,223 $ 16,509,689 $ 344,227 $ 33,745) ($	Total
			55,598,935 $
			1,979,490 $

(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 three months ended March 31, 2021 and 2020 is provided as follows:

follows:
Reportable segments income Non-operating income and expenses Income before tax from continuing operations	Threemonths endedMarch31,
	2021 7,501,224 $ 1,313,023 8,814,247 $	2020
		1,979,490 $ 857,026
		2,836,516 $

~89~

Delta Electronics, Inc. and Subsidiaries

Loans to others

Three months ended March 31, 2021

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 three months ended March 31, 2021(Note 2)	Balance at March 31, 2021	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 Controls Inc.	Other receivables - related parties	Yes	2,653,755 $	2,653,755 $	1,712,100 $	0.50%	2	- $	Additional operating capital	- $	None	- $	29,482,319 $	29,482,319 $	Note 5
1	Fairview Assets Ltd.	Delta Electronics Int'l (Singapore) Pte. Ltd.	Other receivables - related parties	Yes	17,449,153	17,449,153	17,449,153	0.5%- 0.7%	2	-	Additional operating capital	-	None	-	29,482,319	29,482,319	Note 5
2	Delta Networks Holding Limited	Delta Electronics Int'l (Singapore) Pte. Ltd.	Other receivables - related parties	Yes	827,515	827,515	827,515	0.50%	2	-	Additional operating capital	-	None	-	3,143,303	3,143,303	Note 5
3	Delta International Holding Limited	Drake Investment (HK) Limited	Other receivables - related parties	Yes	713,375	713,375	713,375	0.70%	2	-	Additional operating capital	-	None	-	69,341,240	69,341,240	Note 5
3	Delta International Holding Limited	Delta Electronics Int'l (Singapore) Pte. Ltd.	Other receivables - related parties	Yes	2,282,800	2,282,800	2,282,800	0.70%	2	-	Additional operating capital	-	None	-	69,341,240	69,341,240	Note 5
3	Delta International Holding Limited	Delta Electronics (H.K.) Ltd.	Other receivables - related parties	Yes	12,555,400	12,555,400	12,555,400	0.70%	2	-	Additional operating capital	-	None	-	69,341,240	69,341,240	Note 5
3	Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	Other receivables - related parties	Yes	19,403,800	19,403,800	18,462,145	0.5%- 0.7%	2	-	Additional operating capital	-	None	-	69,341,240	69,341,240	Note 5
4	Eltek AS	Eltek Italia S.r.l.	Other receivables - related parties	Yes	33,480	33,480	33,381	1.90%	2	-	Additional operating capital	-	None	-	3,066,980	3,066,980	Note 5
4	Eltek AS	Delta Solutions (Finland) OY	Other receivables - related parties	Yes	33,480	33,480	33,480	0.60%	2	-	Additional operating capital	-	None	-	3,066,980	3,066,980	Note 5
4	Eltek AS	Eltek Power France SAS	Other receivables - related parties	Yes	83,700	83,700	83,700	0.60%	2	-	Additional operating capital	-	None	-	3,066,980	3,066,980	Note 5
4	Eltek AS	Delta Electronics (Sweden) AB	Other receivables - related parties	Yes	98,400	98,400	98,400	0.60%	2	-	Additional operating capital	-	None	-	3,066,980	3,066,980	Note 5
4	Eltek AS	Delta Electronics (Poland) Sp. z. o.o.	Other receivables - related parties	Yes	105,178	105,178	105,178	0.60%	2	-	Additional operating capital	-	None	-	3,066,980	3,066,980	Note 5
5	Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics (Jiangsu) Ltd.	Other receivables - related parties	Yes	1,523,596	1,523,596	1,523,596	4.65%	2	-	Additional operating capital	-	None	-	4,383,925	4,383,925	Note 5

Table 1-1

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the three months ended March 31, 2021(Note 2)	Balance at March 31, 2021	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
6	Vivotek Inc.	Vatics Inc.	Other receivables - related parties	Yes	270,000 $	270,000 $	238,368 $	1.09%	2	- $	Additional operating capital	- $	None	- $	295,090 $	590,181 $	Note 6
7	Delta Energy Systems (Germany) GmbH	Delta Energy Systems Property (Germany) GmbH	Other receivables - related parties	Yes	401,760	401,760	401,760	0.40%	2	-	Additional operating capital	-	None	-	662,096	662,096	Note 5
8	DET International Holding Limited	Delta Electronics India Pvt. Ltd.	Other receivables - related parties	Yes	1,426,750	1,426,750	1,426,750	4.00%	2	-	Additional operating capital	-	None	-	6,483,022	6,483,022	Note 5
9	Delta Greentech (Netherlands) BV	Eltek s.r.o.	Other receivables - related parties	Yes	234,360	234,360	200,880	0.40%	2	-	Additional operating capital	-	None	-	1,160,265	1,160,265	Note 5
10	Delta Greentech (China) Co., Ltd.	Cyntec Electronics (WuHu) Co., Ltd.	Other receivables - related parties	Yes	217,657	217,657	56,591	3.85%	2	-	Additional operating capital	-	None	-	2,625,700	2,625,700	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 March 31, 2021, 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.
(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 1-2

Table 2

Delta Electronics, Inc. and Subsidiaries

Provision of endorsements and guarantees to others Three months ended March 31, 2021

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 March 31, 2021	Outstanding endorsement / guarantee amount at March 31, 2021	Actual amount drawn down	Amount of endorsements / guarantees secured with collateral	Ratio of accumulated endorsement / guarantee amount to net asset value of the endorser / guarantor company	Ceiling on total amount of endorsements / guarantees provided	Provision of endorsements / guarantees by parent company to subsidiary	Provision of endorsements / guarantees by subsidiary to parent company	Provision of endorsements / guarantees to the party in Mainland China	Footnote
		Companyname	Relationship with the endorser / guarantor (Note 4)
1	ELTEK AS	ELTEK AUSTRALIA PTY LIMITED	4	3,076,082 $	128,408 $	128,408 $	128,408 $	- $	0.08%	7,690,204 $	N	N	N	Note 2

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 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 3: The Company’s net assets based on the latest audited or reviewed financial statements were $153,804,087 thousand (2021/3/31).

Note 4: 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) March 31, 2021

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 March 31,2021	As at March 31,2021	As at March 31,2021	As at March 31,2021
				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	829,631 $	2.08	829,631 $
Delta Electronics, Inc.	Lanner Electronics Inc. common stock	None	Financial assets at fair value through other comprehensive income - non-current	6,763,845	458,589	5.73	458,589
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	-	188,877	-	188,877
Delta Electronics Capital Company	Tong Hsing Electronic Industries, Ltd. common stock	None	Financial assets at fair value through profit or loss	1,369,750	280,114	0.77	280,114
Delta Electronics Capital Company	Fusheng Precision Co., Ltd. common stock	None	Financial assets at fair value through profit or loss - current	1,069,000	242,129	0.82	242,129
Delta Electronics Capital Company	Nien Made Enterprise Co., Ltd. common stock	None	Financial assets at fair value through profit or loss - current	427,043	169,963	0.15	169,963
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	176,550	1.45	176,550
Delta Electronics Capital Company	Ampak Technology Inc. common stock	None	Financial assets at fair value through profit or loss - non-current	1,800,000	159,858	2.99	159,858
Delta Electronics Capital Company	Acer E-enabling Service Business Inc. common stock	None	Financial assets at fair value through profit or loss - non-current	800,000	125,536	2.19	125,536
Delta Electronics Capital Company	Hz0, Inc. common stock, etc.	None	Financial assets at fair value through profit or loss	-	1,443,352	-	1,443,352

Table 3-1

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As at March 31,2021	As at March 31,2021	As at March 31,2021	As at March 31,2021
				Number of shares	Book value	Ownership (%)	Fair value
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	142,675 $	10.46	142,675 $
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	114,140	19.90	114,140
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	-	52,274	-	52,274
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	32,001	19.79	32,001
Delta America, Ltd.	VPT Inc. common stock	None	Financial assets at fair value through other comprehensive income - non-current	860,000	4,994	17.52	4,994
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	-	32,648	15.00	32,648
Vivotek Inc.	Kneron Holding Corporation preferred stock	None	Financial assets at fair value through profit or loss - non-current	1,310,003	197,148	2.43	197,148

Table 3-2

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 Three months ended March 31, 2021

Table 4

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 Electronics (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	952,373 $	13.10	70 days			1,081,427 $	18.36
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	6,248,570	85.94	70 days			4,748,298	80.60
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	4,295,645	23.42	70 days			4,898,236	46.79
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	Operating revenue	141,177	0.76	70 days			144,651	1.38
Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	13,781,225	75.15	70 days			5,345,991	51.06
Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	Operating revenue	4,223,353	57.22	70 days			4,800,265	54.24
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Pingtan) Co., Ltd.	Affiliated enterprise	Operating revenue	562,282	7.62	70 days			638,395	7.21
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	234,966	3.19	70 days			236,227	2.67
Delta Networks (Dongguan) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	1,413,692	99.19	70 days			1,143,365	98.88
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	1,747,881	96.65	70 days			949,087	95.39
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	177,594	16.53	70 days			167,337	17.86
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	896,829	83.47	70 days			769,796	82.14

Table 4-1

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)
Chenzhou Delta Technology Co., Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Operating revenue	395,959 $	62.57	70 days			290,587 $	57.34
Chenzhou Delta Technology Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	148,517	23.47	70 days			125,071	24.67
Cyntec Co., Ltd.	Delta Electronics, Inc.	Ultimate parent company	Operating revenue	465,595	27.47	Note 1	Note 1	Note 1	488,943	39.56
Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	3,700,877	99.47	Note 2	Note 2	Note 2	1,898,842	98.74
Delta Energy Systems (Germany) GmbH	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Operating revenue	572,332	82.01	70 days			50,210	38.37
Delta Electronics (Japan), Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	281,595	19.01	70 days			175,987	20.25
Delta Electronics (Netherlands) B.V.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	137,705	10.26	70 days			-	-
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Affiliated enterprise	Operating revenue	223,236	16.61	70 days			415,143	42.93
ELTEK AS	Eltek Deutschland GmbH	Affiliated enterprise	Operating revenue	158,231	14.64	70 days			120,391	12.13
ELTEK AS	ELTEK POWER FRANCE SAS	Affiliated enterprise	Operating revenue	164,397	15.18	70 days			163,714	16.49
ELTEK AS	Eltek s.r.o.	Affiliated enterprise	Operating revenue	102,957	9.50	70 days			85,716	8.64
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK AUSTRALIA PTY LIMITED	Affiliated enterprise	Operating revenue	116,064	0.24	70 days			116,170	0.26
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics ( Switzerland ) AG	Affiliated enterprise	Operating revenue	475,405	0.94	70 days			516,943	1.12
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Operating revenue	4,138,069	8.11	70 days			2,729,127	5.95

Table 4-2

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)
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Operating revenue	7,090,604 $	13.90	70 days			1,707,156 $	3.72
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	Affiliated enterprise	Operating revenue	1,264,498	2.48	70 days			188,546	0.42
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	Operating revenue	1,324,782	2.58	70 days			760,178	1.66
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	Operating revenue	751,471	1.49	70 days			817,028	1.79
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec Co., Ltd.	Affiliated enterprise	Operating revenue	394,922	0.78	70 days			408,043	0.88
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec Electronics (Suzhou) Co., Ltd.	Affiliated enterprise	Operating revenue	150,269	0.27	70 days			151,781	0.34
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	Operating revenue	346,613	0.67	90 days after delivery			463,944	1.01
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Japan), Inc.	Affiliated enterprise	Operating revenue	758,653	1.48	70 days			693,242	1.51
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Operating revenue	596,162	1.17	70 days			550,965	1.20
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK AS	Affiliated enterprise	Operating revenue	216,630	0.42	70 days			170,801	0.37
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Operating revenue	361,893	0.72	70 days			366,915	1
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics, Inc.	Ultimate parent company	Operating revenue	4,874,129	9.53	70 days			7,590,737	16.54
Delta Electronics Int’l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Operating revenue	3,275,872	6.41	90 days after delivery			4,539,944	9.90
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Americas) Ltd.	Affiliated enterprise	Operating revenue	422,868	0.84	70 days			400,564	0.88

Table 4-3

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)
Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	Operating revenue	1,700,785 $	3.34	70 days			1,663,744 $	3.63
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Operating revenue	114,964	12.01	70 days			109,380	10.34
Delta Electronics (Slovakia) s.r.o.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	408,565	42.73	70 days			474,167	22.42
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	Operating revenue	334,136	34.90	70 days			353,357	33.42
Eltek s.r.o.	ELTEK AS	Affiliated enterprise	Operating revenue	386,929	74.28	70 days			166,372	49.83
Eltek s.r.o.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	130,665	25.19	70 days			154,155	46.17
Delta Electronics (Thailand) Public Company Limited	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	Operating revenue	110,825	0.73	90 days after delivery			114,561	0.78
Delta Electronics (Thailand) Public Company Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	281,904	1.89	70 days			280,051	1.87
Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	Operating revenue	5,300,539	35.35	90 days after delivery			6,739,484	45.66
Delta Electronics (Thailand) Public Company Limited	Delta Electronics (Americas) Ltd.	Affiliated enterprise	Operating revenue	331,927	2.22	70 days			342,405	2.32
Delta Electronics, Inc.	Delta Electronics (Jiangsu) Ltd.	Subsidiary	Operating revenue	168,231	1.13	70 days			167,926	1.57
Delta Electronics, Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Subsidiary	Operating revenue	147,116	0.98	70 days			1,570,983	14.77
Delta Electronics, Inc.	Delta Electronics (Thailand) Public Company Limited	Subsidiary	Operating revenue	704,045	4.69	70 days			427,926	3.97
Delta Electronics, Inc.	DEI Logistics (USA) Corp.	Subsidiary	Operating revenue	1,528,949	10.24	90 days after delivery			1,733,824	16.12

Table 4-4

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, Inc.	Delta Electronics (Americas) Ltd.	Subsidiary	Operating revenue	315,270 $	2.12	70 days			271,767 $	2.53
Delta Electronics, Inc.	DELTA ELECTRONICS (USA) INC.	Subsidiary	Operating revenue	146,988	0.98	70 days			127,927	1.19
Delta Electronics (Americas) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	132,739	6.50	70 days			8,714	0.79
Vivotek Inc.	Vivotek USA, Inc.	Affiliated enterprise	Operating revenue	106,541	10.00	90 days	Note 3	Note 3	108,343	0.17

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 4-5

Delta Electronics, Inc. and Subsidiaries

Receivables from related parties reaching $100 million or 20% of the Company's paid-in capital or more March 31, 2021

Table 5

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

Creditor	Counterparty	Relationship with the counterparty	Balance as at March 31, 2021 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)
					Amount	Action taken
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	1,081,427 $	4.60	- $		- $
Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	4,748,298	4.73	-		-
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	4,898,236	2.94	-		1,997,534
Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	144,651	4.19	10		53
Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	5,345,991	10.20	4,247		-
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	100,264	2.22	54		44,080
Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	4,800,265	3.41	-		1,820,720
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics (Pingtan) Co., Ltd.	Affiliated enterprise	638,395	3.32	-		197,700
Delta Electronics (Shanghai) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	236,227	3.52	-		-
Delta Networks (Dongguan) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	1,143,365	4.45	3,955		370,430
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	949,087	7.43	-		-
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	167,337	3.90	-		99,969
Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	769,796	4.90	2,663		313,885
Chenzhou Delta Technology Co., Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	290,587	5.11	-		242,446
Chenzhou Delta Technology Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	125,071	4.44	-		65,631

Table 5-1

Creditor	Counterparty	Relationship with the counterparty	Balance as at March 31, 2021 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)
					Amount	Action taken
Cyntec Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	145,117 $	-	- $		145,117 $
Cyntec Co., Ltd.	Delta Electronics, Inc.	Ultimate parent company	488,943	3.56	-		186,256
Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	1,898,842	6.80	-		144,992
Delta Electronics (Japan), Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	175,987	6.57	-		90,213
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Affiliated enterprise	415,143	2.45	109,164		-
ELTEK AS	Eltek Deutschland GmbH	Affiliated enterprise	120,391	4.22	-		60,229
ELTEK AS	ELTEK POWER FRANCE SAS	Affiliated enterprise	163,714	4.31	-		-
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK AUSTRALIA PTY LIMITED	Affiliated enterprise	116,170	4.03	-		20,980
Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS BRASIL LTDA	Affiliated enterprise	105,097	2.79	-		-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics ( Switzerland ) AG	Affiliated enterprise	516,943	3.36	-		85,891
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	2,729,127	5.22	303,615		856,075
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics Power (Dongguan) Co., Ltd.	Affiliated enterprise	112,410	0.35	101,635		-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	1,707,156	16.48	-		1,062,020
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	Affiliated enterprise	188,546	12.63	-		152,928
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	760,178	7.78	23,373		-
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	817,028	3.95	393,783		285,350
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec Co., Ltd.	Affiliated enterprise	408,043	4.37	5,992		-

Table 5-2

Creditor	Counterparty	Relationship with the counterparty	Balance as at March 31, 2021 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)
					Amount	Action taken
Delta Electronics Int’l (Singapore) Pte. Ltd.	Cyntec Electronics (Suzhou) Co., Ltd.	Affiliated enterprise	151,781 $	4.54	- $		- $
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	463,944	2.95	3,041		852
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Japan), Inc.	Affiliated enterprise	693,242	4.31	17,285		276,481
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	550,965	5.48	-		-
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK AS	Affiliated enterprise	170,801	2.58	-		33,209
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	1,970,548	3.76	5,987		136,875
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics, Inc.	Ultimate parent company	7,590,737	2.49	13,122		742,270
Delta Electronics Int’l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	4,539,944	2.60	27,184		505,098
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Americas) Ltd.	Affiliated enterprise	400,564	3.73	3,453		71,511
Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	1,663,744	5.35	6,159		8,282
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	109,380	4.00	18		807
Delta Electronics (Slovakia) s.r.o.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	474,167	3.57	149		85,143
Delta Electronics (Slovakia) s.r.o.	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	353,357	3.56	-		110,181
Eltek s.r.o.	ELTEK AS	Affiliated enterprise	166,372	10.09	488		166,372
Eltek s.r.o.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	154,155	4.95	-		25,809
Delta Electronics (Thailand) Public Company Limited	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	114,561	4.29	5,904		-
Delta Electronics (Thailand) Public Company Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	280,051	4.19	3,795		44,252

Table 5-3

Creditor	Counterparty	Relationship with the counterparty	Balance as at March 31, 2021 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)
					Amount	Action taken
Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	6,739,484 $	3.35	100,418 $		346,867 $
Delta Electronics (Thailand) Public Company Limited	Delta Electronics (Americas) Ltd.	Affiliated enterprise	342,405	4.02	-		5,316
Delta Electronics, Inc.	Delta Electronics (Jiangsu) Ltd.	Subsidiary	167,926	0.98	-		-
Delta Electronics, Inc.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Subsidiary	2,024,946	0.28	59,095		1,992,521
Delta Electronics, Inc.	Delta Electronics (Thailand) Public Company Limited	Subsidiary	644,752	7.36	23,438		410,814
Delta Electronics, Inc.	DEI Logistics (USA) Corp.	Subsidiary	1,733,824	3.03	389		68,865
Delta Electronics, Inc.	Delta Electronics (Americas) Ltd.	Subsidiary	271,767	4.25	4,135		122,875
Delta Electronics, Inc.	DELTA ELECTRONICS (USA) INC.	Subsidiary	127,927	5.05	-		66,837
Delta International Holding Limited	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	576,018	-	-		576,018
Delta Networks Holding Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	828,549	-	-		-
DET International Holding Limited	Delta Electronics India Pvt. Ltd.	Affiliated enterprise	1,426,750	-	-		-
Delta Energy Systems (Germany) GmbH	Delta Electronics (Thailand) Public Company Limited	Affiliated enterprise	208,254	-	-		208,254
Fairview Assets Ltd.	Delta Controls Inc.	Affiliated enterprise	1,712,837	-	-		-
Fairview Assets Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	17,475,815	-	-		-
Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	18,494,040	-	-		-
Delta International Holding Limited	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	2,286,795	-	-		-

Table 5-4

Creditor	Counterparty	Relationship with the counterparty	Balance as at March 31, 2021 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance date (Note 2)
					Amount	Action taken
Delta International Holding Limited	Drake Investment (HK) Limited	Affiliated enterprise	714,623 $	-	- $		- $
Delta International Holding Limited	Delta Electronics (H.K.) Ltd.	Affiliated enterprise	12,577,372	-	-		-
Eltek AS	Delta Electronics (Poland) Sp. z. o.o.	Affiliated enterprise	105,374	-	-		-
Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	1,581,651	-	-		-
Delta Greentech (Netherlands) B.V.	Eltek s.r.o.	Affiliated enterprise	201,217	-	-		-
Delta Energy Systems (Germany) GmbH	Delta Energy Systems Property (Germany) GmbH	Affiliated enterprise	401,760	-	-		-
Vivotek Inc.	Vatics Inc.	Affiliated enterprise	238,422	-	-		16
Vivotek Inc.	Vivotek USA, INC.	Affiliated enterprise	108,343	3.90	-		-

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

Note 2: The amount represents collections subsequent to March 31, 2021 up to April 28, 2021.

Table 5-5

Delta Electronics, Inc. and Subsidiaries

Significant inter-company transactions during the reporting period Three months ended March 31, 2021

Table 6

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

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.	DEI Logistics (USA) Corp.	Subsidiary	Operating revenue	1,528,949 $	(Note 5)	2.11
1	Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	952,373	(Note 4)	1.31
1	Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	6,248,570	(Note 4)	8.62
2	Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Operating revenue	4,295,645	(Note 4)	5.93
2	Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	13,781,225	(Note 4)	19.01
3	Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	Operating revenue	4,223,353	(Note 4)	5.83
4	Delta Networks (Dongguan) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	1,413,692	(Note 4)	1.95
5	Delta Electronics (Wuhu) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	1,747,881	(Note 4)	2.41
6	Delta Electronics (Chenzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	896,829	(Note 4)	1.24
7	Cyntec Electronics (Suzhou) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Operating revenue	3,700,877	(Note 7)	5.11
8	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Dongguan) Co., Ltd.	Affiliated enterprise	Operating revenue	4,138,069	(Note 4)	5.71
8	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Jiangsu) Ltd.	Affiliated enterprise	Operating revenue	7,090,604	(Note 4)	9.78
8	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Networks (Dongguan) Ltd.	Affiliated enterprise	Operating revenue	1,264,498	(Note 4)	1.74
8	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Wuhu) Co., Ltd.	Affiliated enterprise	Operating revenue	1,324,782	(Note 4)	1.83
8	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Chenzhou) Co., Ltd.	Affiliated enterprise	Operating revenue	751,471	(Note 4)	1.04

Table 6-1

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)
8	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Japan), Inc.	Affiliated enterprise	Operating revenue	758,653 $	(Note 4)	1.05
8	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics, Inc.	Ultimate parent company	Operating revenue	4,874,129	(Note 4)	6.72
8	Delta Electronics Int’l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Operating revenue	3,275,872	(Note 5)	4.52
8	Delta Electronics Int’l (Singapore) Pte. Ltd.	DELTA ELECTRONICS (USA) INC.	Affiliated enterprise	Operating revenue	1,700,785	(Note 4)	2.35
9	Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	Operating revenue	5,300,539	(Note 5)	7.31
1	Delta Electronics (Dongguan) Co., Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Accounts receivable	4,748,298	(Note 4)	1.38
2	Delta Electronics (Jiangsu) Ltd.	Delta Electronics (Shanghai) Co., Ltd.	Affiliated enterprise	Accounts receivable	4,898,236	(Note 4)	1.42
2	Delta Electronics (Jiangsu) Ltd.	Delta Electronics Int’l (Singapore) Pte. Ltd.	Affiliated enterprise	Accounts receivable	5,345,991	(Note 4)	1.55
3	Delta Electronics (Shanghai) Co., Ltd.	Delta Greentech (China) Co., Ltd.	Affiliated enterprise	Accounts receivable	4,800,265	(Note 4)	1.40
8	Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics, Inc.	Ultimate parent company	Accounts receivable	7,590,737	(Note 4)	2.21
8	Delta Electronics Int’l (Singapore) Pte. Ltd.	DEI Logistics (USA) Corp.	Affiliated enterprise	Accounts receivable	4,539,944	(Note 5)	1.32
9	Delta Electronics (Thailand) Public Company Limited	DET Logistics (USA) Corporation	Affiliated enterprise	Accounts receivable	6,739,484	(Note 5)	1.96
10	Fairview Assets Ltd.	Delta Electronics Int' l (Singapore) Pte. Ltd.	Affiliated enterprise	Other receivables - related parties	17,475,815	(Note 6)	5.08
11	Delta International Holding Limited	Delta Electronics (Netherlands) B.V.	Affiliated enterprise	Other receivables - related parties	18,494,040	(Note 6)	5.38

Table 6-2

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)
11	Delta International Holding Limited	Delta Electronics (H.K.) Ltd.	Affiliated enterprise	Other receivables - related parties	12,577,372 $	(Note 6)	3.66

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 6-3

Delta Electronics, Inc. and Subsidiaries Information on investees Three months ended March 31, 2021

Table 7

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 March 31,2021	as at March 31,2021	Net profit (loss) of the investee for the three months ended March 31,2021	Investment income (loss) recognised by the Company for the three months ended March 31, 2021	Footnote
				Balance as at March 31,2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Delta Electronics, Inc.	Delta International Holding Limited	Malta	Equity investments	8,922,118 $	8,922,118 $	67,680,000	100.00	69,606,746 $	496,898 $	558,655 $	(Note 6)
Delta Electronics, Inc.	Delta Networks Holding Limited	Cayman Islands	Equity investments	29,582	29,582	83,800,000	100.00	3,160,380	32,307	144) (	(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	18,607,544	1,273,581	1,210,150	(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	4,389,536	1,618,319	59,788	(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	33,284,093	281,871	234,813	(Note 6)
Delta Electronics, Inc.	DelBio Inc.	Taiwan	Manufacturing, wholesale and retail of medical equipment	900,000	900,000	21,761,836	100.00	221,818	16,896	15,896	(Note 6)
Delta Electronics, Inc.	Delta Electronics Capital Company	Taiwan	Equity investments	3,253,241	3,253,241	350,000,000	100.00	3,739,890	267,870	267,870	(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	39,844,705	3,394,054	3,445,964	(Note 6)
Delta Electronics, Inc.	Allied Material Technology Corp.	Taiwan	Lease services, etc.	2,113,978	2,113,978	211,400,909	99.97	1,652,524	22,980) (	22,973) (	(Note 6)
Delta Electronics, Inc.	Delta America Ltd.	U.S.A.	Equity investments	103,065	103,065	2,100,000	10.26	289,909	150,578	8,293) (	(Notes 6 and 9)
Delta Electronics, Inc.	Vivotek Inc.	Taiwan	Manufacturing and sales of video compression software and encoding, network video server, webcam and its related components	4,217,006	4,217,016	45,782,058	52.65	3,906,607	52,183	3,953	(Note 6)
Delta Electronics, Inc.	Chunghwa SEA Holdings	Taiwan	Equity investments	8,800	-	880,000	44.00	8,783	39) (	17) (	(Note 18)
Delta International Holding Limited	Delta Electronics (Thailand) Public Company Limited	Thailand	Manufacturing and exporting power supplies, other electronic parts and components	12,292,228	12,292,228	191,984,450	15.39	11,930,094	1,618,319	193,977	(Note 13)
Delta International Holding Limited	DEI Logistics (USA) Corp.	U.S.A.	Warehousing and logistics services	28,535	28,535	1,000,000	100.00	224,536	3,993	3,993	(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	81,580	81,580	5,600	100.00	713,392	67,723	67,723	(Note 1)
Delta International Holding Limited	Digital Projection International Ltd.	Britain	Equity investments	403,099	403,099	46,949,667	100.00	270,749	36,368) (	38,948) (	(Note 1)
Delta International Holding Limited	Vivitek Corporation	U.S.A.	Sales of projector products and their materials	42,803	42,803	9,000,000	100.00	104,677	8,492) (	8,492) (	(Note 1)

Table 7-1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at March 31,2021	as at March 31,2021	Net profit (loss) of the investee for the three months ended March 31,2021	Investment income (loss) recognised by the Company for the three months ended March 31, 2021	Footnote
				Balance as at March 31,2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Delta International Holding Limited	Delta Electronics (Switzerland) AG	Switzerland	Equity investments, research, development and sales of electronic products	580,528 $	580,528 $	10,000	100.00	887,237 $	132,415 $	130,969 $	(Note 1)
Delta International Holding Limited	DELTA ELECTRONICS HOLDING (USA) INC.	U.S.A.	Equity investments	1,948,653	1,948,653	1,060,624	100.00	2,260,918	231,805	231,271	(Note 1)
Delta International Holding Limited	Eltek AS	Norway	Research, development and sales of power supplies and others	14,186,674	14,186,674	93,531,101	100.00	12,065,991	33,886	136,948) (	(Note 1)
Delta International Holding Limited	Delta Controls Inc.	Canada	Provide solutions to building management and control	2,140,125	2,140,125	75,000,000	100.00	2,593,031	16,896	16,896	(Note 1)
Delta International Holding Limited	Delta Electronics Europe Ltd.	Britain	Repair centre and providing support services	104,438	104,438	500,000	100.00	57,380	2,768) (	2,768) (	(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	172,637	172,637	2,314,592	100.00	142,600	4,016	4,016	(Note 2)
Delta Electronics (Netherlands) B.V.	Delta Electronics (H.K.) Ltd.	Hong Kong	Equity investments, operations management and engineering services	9,370,811	9,370,811	2,549,297,600	100.00	21,601,641	899,085	899,085	(Note 8)
Delta Electronics (Netherlands) B.V.	Boom Treasure Limited	Hong Kong	Equity investments	2,485,994	2,485,994	1	100.00	1,966,795	62,482	33,627	(Note 8)
Delta Electronics (Netherlands) B.V.	Drake Investment (HK) Limited	Hong Kong	Equity investments	4,911,340	4,911,340	304,504,306	100.00	4,988,747	155,965	154,901	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta America Ltd.	U.S.A.	Equity investments	1,473,303	1,473,303	18,374,182	89.74	2,502,665	150,578	134,923	(Notes 8 and 9)
Delta Electronics (Netherlands) B.V.	Optovue, Inc.	U.S.A.	Research, development, design, manufacturing and sales of medical equipment	1,055,795	1,055,795	5,190,330	29.50	722,051	52,971) (	17,108) (	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta Greentech Electronics Industry LLC	Turkey	Marketing and sales of electronic products	160,367	160,367	940,687	100.00	72,852	24,377	29,337	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta Greentech (Brasil) S.A.	Brazil	Manufacturing and sales of electronic products	202,884	202,884	4,315,657	100.00	179,908	17,709	17,709	(Note 8)
Delta Electronics (Netherlands) B.V.	DELTA ELECTRONICS BRASIL LTDA.	Brazil	Manufacturing and sales of electronic products	578,790	578,790	87,000,000	100.00	397,607	15,245) (	15,245) (	(Note 8)
Delta Electronics (Netherlands) B.V.	Amerlux, LLC	U.S.A.	Design and producing of dedicated lighting system and facilities	2,788,412	2,788,412	-	100.00	2,779,328	9,554	10,166) (	(Note 8)
Delta Electronics (Netherlands) B.V.	Delta Greentech SGP Pte. Ltd.	Singapore	Equity investments	797,001	797,001	12,175,470	100.00	648,847	19,660	10,929	(Note 8)
Delta Electronics (Netherlands) B.V.	Trihedral Engineering Limited	Canada	Software and associated engineering service	1,017,973	1,008,818	51,495	100.00	1,034,410	27,144	21,614	(Note 8)
Delta America Ltd.	Delta Electronics (Americas) Ltd.	U.S.A.	Sales of electronic components	215,561	215,561	250,000	100.00	1,405,715	102,107	102,107	(Note 15)

Table 7-2

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at March 31,2021	as at March 31,2021	Net profit (loss) of the investee for the three months ended March 31,2021	Investment income (loss) recognised by the Company for the three months ended March 31, 2021	Footnote
				Balance as at March 31,2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Delta America Ltd.	Delta Solar Solutions LLC	U.S.A.	Equity investments	64,774 $	64,774 $	-	100.00	45,873 $	1,268 $	1,268 $	(Note 15)
Delta Electronics Int’l (Singapore) Pte. Ltd.	Delta Electronics (Thailand) Public Company Limited	Thailand	Manufacturing and exporting power supplies, other electronic parts and components	34,140,753	34,140,753	534,479,306	42.85	34,426,763	1,618,319	540,086	(Note 13)
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK POWER INCORPORATED	Philippines	Sales of power supplies and others	21,496	21,496	11,400,000	100.00	12,641	2,047) (	2,047) (	(Note 7)
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK POWER CO., LTD.	Thailand	Sales of power supplies and others	-	-	40,000	100.00	223,575	6,361) (	6,361) (	(Note 7)
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK POWER (CAMBODIA) LTD.	Cambodia	Sales of power supplies and others	-	-	1,000	100.00	17,875) (	-	-	(Note 7)
Delta Electronics Int’l (Singapore) Pte. Ltd.	ELTEK POWER (MALAYSIA) SDN. BHD.	Malaysia	Sales of power supplies and others	58,935	58,935	300,000	100.00	54,244) (	3,106	3,106	(Note 7)
Delta Electronics Int’l (Singapore) Pte. Ltd.	Loy Tec Electronics GmbH	Austria	Provide solutions to building management and control	2,315,885	2,315,885	-	100.00	1,557,559	26,709	13,559	(Note 7)
Delta Networks Holding Limited	Delta Networks, Inc.	Cayman Islands	Equity investments	5,075,206	5,075,206	1,196,886,000	100.00	2,008,910	31,692	31,569	(Note 3)
Delta Networks, Inc.	Delta Networks (HK) Limited	Hong Kong	Equity investments	998,725	998,725	35,000,000	100.00	1,986,132	32,128	32,128	(Note 4)
Digital Projection International Ltd.	Digital Projection Holdings Ltd.	Britain	Equity investments	168,764	168,764	40,526,221	100.00	186,559) (	36,368) (	36,368) (	(Note 17)
Cyntec Co., Ltd.	Fairview Assets Ltd.	Cayman Islands	Equity investments	1,116,521	1,116,521	32,740,062	100.00	29,482,319	211,383	211,383	(Note 5)
Cyntec Co., Ltd.	Power Forest Technology Corporation	Taiwan	IC design of power management	347,387	347,387	24,134,934	100.00	266,420	9,344	7,594	(Note 5)
Delta Electronics (Thailand) Public Company Limited	DET International Holding Limited	Cayman Islands	Equity investments	8,645,531	8,645,531	264,357,330	100.00	6,726,419	97,335) (	97,335) (	(Note 16)
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	188,469	188,469	20,600,000	100.00	92,048	2,931) (	2,931) (	(Note 16)
Delta Electronics (Thailand) Public Company Limited	Delta Energy Systems (Singapore) PTE. LTD.	Singapore	Equity investments, trading, management and consultancy	5,099,542	5,099,542	146,586,590	100.00	8,930,160	15,995) (	15,995) (	(Note 16)
Delta Electronics (Thailand) Public Company Limited	DELTA ELECTRONICS (VIETNAM) COMPANY LIMITED	Vietnam	Sales of electronic products	2,773	2,773	-	100.00	719	2,072) (	2,072) (	(Note 16)
Delta Electronics (Thailand) Public Company Limited	DELTA ELECTRONICS INDIA MANUFACTURING PRIVATE LIMITED	India	Manufacturing and marketing of electronic products	421	-	110,999	100.00	421	-	-	(Notes 16 and 18)
Vivotek Inc.	Vatics Inc.	Taiwan	Designing and sales of multimedia integrated circuits	305,651	305,651	141,706	50.53	47,426) (	18,772) (	6,979) (	(Note 11)

Table 7-3

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at March 31,2021	as at March 31,2021	Net profit (loss) of the investee for the three months ended March 31,2021	Investment income (loss) recognised by the Company for the three months ended March 31, 2021	Footnote
				Balance as at March 31,2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Vivotek Inc.	Vivotek Holdings, Inc.	U.S.A.	Holding company	31,555 $	31,555 $	1,050	100.00	265,976 $	17,676 $	30,013 $	(Note 11)
Vivotek Inc.	Realwin Investment Inc.	Taiwan	A venture capital company	173,696	173,696	17,369,635	100.00	111,066	1,124	1,629	(Note 11)
Vivotek Inc.	Vivotek Netherlands B.V.	Netherlands	Sales service	11,418	11,418	3,000	100.00	11,241	217	217	(Note 11)
Vivotek Inc.	Otus Imaging, Inc.	Taiwan	Sales of webcams and related components	44,294	44,294	6,000,000	100.00	47,602	1,676	1,676	(Note 11)
Vivotek Inc.	Vivotek (Japan) Inc.	Japan	Sales service	17,939	17,939	6,600	100.00	23,974	179	179	(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	322,823	17,679	17,679	(Note 10)
Realwin Investment Inc.	Skywatck INC.	Taiwan	Wholesale of electronic equipment	755	755	50,070	0.88	-	442) (	-	(Note 14)
Realwin Investment Inc.	Wellstates Investment, LLC	U.S.A.	Investment and commercial lease of real estate	34,859	34,859	-	100.00	48,850	759	759	(Note 12)
Realwin Investment Inc.	Aetek Inc.	Taiwan	Sales of webcams and related components	34,045	34,045	3,372,500	56.21	50,603	4,951	2,783	(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	10,075) (	543) (	489) (	(Note 12)
Realwin Investment Inc.	Lidlight Inc.	Taiwan	Sales of lighting equipment	10,200	10,200	1,020,000	51.00	1,541	2,334) (	1,190) (	(Note 12)
Realwin Investment Inc.	Vatics Inc.	Taiwan	Designing and sales of multimedia integrated circuits	31,123	31,123	10,892	3.88	2,389) (	18,772) (	729) (	(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 10: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Vivotek Holdings, Inc.

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

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

Note 13: The 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’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 15: The Company’s second-tier subsidiary, which was recognised as investment gains/losses through Delta America Ltd.

Note 16: The Company’s third-tier subsidiary, which was recognised as investment gains/losses through Delta Electronics (Thailand) Public Company Limited. Note 17: The Company’s second-tier subsidiary, which was recognised as investment gains/losses through Digital Projection International Ltd. Note 18: Established or invested during 2021.

Table 7-4

Delta Electronics, Inc. and Subsidiaries Information on investments in Mainland China Three months ended March 31, 2021

Table 8

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 January1,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for three months ended March 31, 2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for three months ended March 31, 2021	Accumulated amount of remittance from Taiwan to Mainland China as at March 31, 2021	Net income (loss) of investee for the three months ended March 31,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the three months ended March 31, 2021 (Note 21)	Book value of investments in Mainland China as at March 31,2021	Accumulated amount of investment income remitted back to Taiwan as at March 31,2021	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Delta Electronics (Dongguan) Co., Ltd.	Manufacturing and sales of transformer and thermal products	2,791,008 $	Invested by DHK	2,197,028 $	- $	- $	2,197,028 $	74,134 $	100.00	73,881 $	3,965,180 $	275,649 $	(Notes 3 and 16)
Delta Electronics Power (Dongguan) Co., Ltd.	Manufacturing and sales of power supplies	1,201,324	Invested by DHK	675,909	-	-	675,909	46,980	100.00	46,980	2,481,947	383,396	(Notes 6 and 16)
Delta Electronics (Shanghai) Co., Ltd.	Product design, management consulting service and distribution of electronic products	3,452,772	Invested by DHK	446,386	-	-	446,386	843,633	100.00	847,023	7,957,420	-	(Notes 7 and 16)
Delta Electronics (Wuhu) Co., Ltd.	Manufacturing and sales of LED light source, power supplies and others	3,823,690	Invested by DHK	488,269	-	-	488,269	30,681	100.00	30,378	4,389,490	-	(Notes 8 and 16)
Delta Electronics (Chenzhou) Co., Ltd.	Manufacturing and sales of transformers	1,797,705	Invested by DHK	121,984	-	-	121,984	32,768	100.00	33,619	1,946,213	-	(Notes 9 and 16)
Delta Electronics (Jiangsu) Ltd.	Manufacturing and sales of power supplies and transformers	5,330,623	Invested by DHK	11,637,425	-	-	11,637,425	201,383	100.00	198,177	11,328,001	-	(Notes 13 and 16)
Delta Green (Tianjin) Industries Co., Ltd.	Manufacturing and sales of transformers	129,264	Invested by DHK	944,085	-	-	944,085	7,457) (	100.00	7,457) (	51,376) (	-	(Notes 10 and 16)
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	211,159	Invested by DHK	1,081,757	-	-	1,081,757	4,249	100.00	4,249	159,142	-	(Note 16)
Delta Electronics (Pingtan) Co., Ltd.	Wholesale and retail of electronic products and energy-saving equipment	130,594	Invested by DHK	148,231	-	-	148,231	17,040	100.00	17,040	209,948	-	(Note 16)
Delta Electronics (Beijing) Co., Ltd.	Installation of mechanic, electronic, telecommunication and circuit equipment	217,657	Invested by DHK	13,051	-	-	13,051	1,385	100.00	1,385	162,023	-	(Notes 11 and 16)
Delta Electronics (Xi'an) Co., Ltd.	Sales of computer, peripheral equipment and software	239,422	Invested by DHK	241,362	-	-	241,362	3,253) (	100.00	3,253) (	201,907	-	(Note 16)

Table 8-1

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as at January1,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for three months ended March 31, 2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for three months ended March 31, 2021	Accumulated amount of remittance from Taiwan to Mainland China as at March 31, 2021	Net income (loss) of investee for the three months ended March 31,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the three months ended March 31, 2021 (Note 21)	Book value of investments in Mainland China as at March 31,2021	Accumulated amount of investment income remitted back to Taiwan as at March 31,2021	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
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	5,764,070 $	Invested by CHK	5,663,124 $	- $	- $	5,663,124 $	207,353 $	100.00	207,353 $	8,157,936 $	- $	(Note 18)
Delta Networks (Dongguan) Ltd.	Manufacturing and sales of other radio-broadcast receivers and the equipment in relation to broadband access networking system	998,725	Invested by DNHK	1,275,695	-	-	1,275,695	35,440	100.00	35,440	1,839,650	627,770	(Notes 5 and 17)
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	64,201	Invested by DNHK	19,975	-	-	19,975	3,243) (	30.00	973) (	16,323	-	(Note 17)
DelBio (Wujiang) Co., Ltd.	Manufacturing, wholesale and retail of medical equipment	114,140	Invested by DelBio	114,140	-	-	114,140	11,043	100.00	11,043	186,772	-	(Note 19)
Chenzhou Delta Technology Co., Ltd.	Manufacturing and sales of transformers	111,005	Invested by DCZ	-	-	-	-	12,432	100.00	12,250	205,355	-	(Note 14)
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.	43,531	Invested by DPEC and DGC	-	-	-	-	151	96.32	151	33,733	-	(Note 14)
Delta Energy Technology Puhuan (Shanghai) Co., Ltd.	Energy technology, development and consulting of environmental technical skills, and design and sales of energy saving equipment	435	Invested by DET-SH	-	-	-	-	33	96.32	33	9,173	-	(Note 14)
Guangzhou Amerlux Lighting Co., Ltd.	Wholesale of lighting fixture and decorative objects	13,554	Invested by Amerlux Lighting Hong Kong Limited	171,852	-	-	171,852	7,448	100.00	7,448	48,969	-	(Notes 12 and 20)
Delta Greentech (China) Co., Ltd.	Sales of uninterruptible power systems	2,472,578	Invested by Drake-HK, Boom and DGSG	8,726,364	-	-	8,726,364	277,986	95.91	266,619	6,216,452	-	(Notes 4 and 15)
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.	428,025	Invested by DHK	28,535	399,490	-	428,025	261,521) (	100.00	261,521) (	115,861	-	(Note 16)

Table 8-2

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as at January1,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for three months ended March 31, 2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for three months ended March 31, 2021	Accumulated amount of remittance from Taiwan to Mainland China as at March 31, 2021	Net income (loss) of investee for the three months ended March 31,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the three months ended March 31, 2021 (Note 21)	Book value of investments in Mainland China as at March 31,2021	Accumulated amount of investment income remitted back to Taiwan as at March 31,2021	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
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	108,828 $	Invested by DPT	- $	- $	- $	- $	- $	40.00	- $	12,189 $	- $	(Note 14)

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 6.55505 to US$1 and NTD 4.35313 to RMB$1.

Note 2: The accumulated remittance as at January 1, 2021, remitted or collected this period, accumulated remittance as at March 31, 2021 and investment income remitted back as at March 31, 2021 was translated into New Taiwan Dollars at the average exchange rate of NTD 28.535 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 March 31, 2021 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 March 31, 2021 the procedure was still in process.

Note 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: Delta Electronics (Jiangsu) Ltd. merged with Delta Electronics Components (Wujiang) Ltd. and Delta Video Display System (Wujiang) Ltd. on January 1, 2021. Under the merger, Delta Electronics (Jiangsu) Ltd. was the surviving company while Delta Electronics Components (Wujiang) Ltd. and Delta Video Display System (Wujiang) Ltd. were the dissolved companies.

Note 14: 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 15: Jointly invested through Drake Investment (HK) Limited, DELTA GREENTECH SGP Pte. Ltd. and Boom Treasure Limited.

Note 16: Invest through Delta Electronics (H.K.) Ltd.

Note 17: Invest through Delta Networks (HK) Limited. Note 18: Invest through Cyntec Holding (HK) Limited.

Note 19: Invest through DelBio Inc.

Note 20: Invest through Amerlux Lighting Hong Kong Limited.

Note 21: Except for Delta Green (Tianjin) Industries Co., Ltd., Delta Electronics (Pingtan) Co., Ltd., Delta Energy Technology (Shanghai) Co., Ltd., DelBio (Wujiang) Co., Ltd., Eltek Energy Technology (Dongguan) Ltd., Delta Energy Technology Puhuan (shanghai) Co., Ltd., Delta Electronics (Beijing) Co., Ltd., Delta Electronics (Xi'an) Co., Ltd., Amerlux Lighting Co., Ltd., Cyntec Electronics (WuHu) Co., Ltd., Delta Networks (Xiamen) Ltd. and Fujian Kaixin Construction Engineering Co., Ltd. whose investment income (loss) was recognised based on recognised gain or loss on investment based on financial statement prepared by each company, others were recognised.

Table 8-3

Company name	Accumulated amount remitted from Taiwan to Mainland China as at March 31, 2021	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)	$ 28,098,576	$ 29,042,941	$ -
Cyntec Co., Ltd.	5,663,124	5,663,124	16,383,663
DelBio Inc. (Note 4)	114,140	114,140	134,378

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 NTD28.535 to US$1 at the balance sheet date. Note 2: The investment income of US$22,000 thousand, US$18,000 thousand, US$10,509 thousand and US$14,351 thousand were remitted back on March 11, 2011, June 27, 2012, August 14, 2012, June 24, 2009 and December 29, 2005, respectively, from the investee companies in Mainland China and was permitted by Investment Commission on August 3, 2012, August 28, 2012, July 17, 2009 and January 6, 2006, respectively, which are deductible from the Company’s accumulated amount remitted out of Taiwan to Mainland China. Note 3: According to “Regulation Governing the Approval of Investment or Technical Cooperation in Mainland China”, the Company obtained the approval of operation headquarters from Industrial Development Bureau of Ministry of Economic Affairs. There is no ceiling of investment amount. Note 4: The ceiling is caculated based on DelBio Inc.’s 60% of net assets as at March 31, 2021.

Table 8-4

Delta Electronics, Inc. and Subsidiaries

Major shareholders information

March 31, 2021

Table 9

March 31, 2021 Table9
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 9-1

AI assistant

DELTA — Interim / Quarterly Report 2021

52000_rns_2021-12-23_d255cfcf-c7fb-41c5-a232-b97ce14b6e92.pdf

DELTA ELECTRONICS, INC. AND SUBSIDIARIES

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

Introduction

Scope of review

Basis for Qualified Conclusion

Qualified Conclusion

– Other Matter Review Reports By Other Independent Auditors

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2021 AND 2020

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2021 AND 2020

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY THREE MONTHS ENDED MARCH 31, 2021 AND 2020

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY THREE MONTHS ENDED MARCH 31, 2021 AND 2020

DELTA ELECTRONICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2021 AND 2020

DELTA ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2021 AND 2020

DELTA ELECTRONICS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 2021 AND 2020

1. HISTORY AND ORGANIZATION

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

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(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

Statements of cash flows

DET

(4) Employee benefits

(b) Defined benefit plan

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

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

(4) Hedging financial assets and liabilities

(5) Notes and accounts receivable

(9) Property, plant and equipment

(10) Leasing arrangements - lessee

(11) Intangible assets

(12) Other non-current assets

- (15) Long term borrowings

(16) Pensions

B. Defined contribution plan

(17) Share capital

(18) Capital surplus

(19) Retained earnings

(20) Operating revenue

A. Disaggregation of revenue from contracts with customers

B. Contract assets and liabilities

(21) Interest income

(22) Other income

(23) Other gains and losses

(24) Finance costs

(26) Employee benefit expense

(27) Income tax

A. Income tax expense

(a) Components of income tax expense:

(28) Earnings per share

(29) Share-based payment

(b) Restricted stocks to employees

(30) Business combinations

(32) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(2) Significant transactions and balances with related parties

A. Operating revenue

B. Purchases of goods

(3) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(1) Contingencies

(2) Commitments

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

DELTA Interim / Quarterly Report 2021

`–` Other Matter Review Reports By Other Independent Auditors