EDT - Interim / Quarterly Report 2021

Stock Code ： 3038

(English Translation of Financial Report Originally Issued in Chinese)

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

For the three months ended March 31, 2021 and 2020 (With Independent Auditors’ Review Report Thereon)

Address: No. 5, Central 1st Rd., Qianzhen Dist., Kaohsiung, Taiwan, R.O.C. Telephone: 886-7-812-4832

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Contents
1、Cover page
2、Table of contents
3、Independent auditors’ review report
4、Consolidated balance sheets
5、Consolidated statements of comprehensive income
6、Consolidated statements of changes in equity
7、Consolidated statements of cash flows
8、Notes to consolidated financial statements
(1) Organization and business scope
(2) Financial statements authorization date and authorization process
(3) Application of New and Revised International Financial Reporting Standards
and Interpretations
(4) Summary of significant accounting policies
(5) Significant accounting assumptions and judgments, and major sources of
estimates uncertainty
(6) Explanation of significant accounts
(7) Transactions with Related Parties
(8) Pledged assets
(9) Commitments and contingencies
(10) Losses due to major disaster
(11) Significant subsequent events
(12) Other
(13) Supplementary Disclosure Requirements
(a) Information on significant transactions
(b) Information on investees
(c) Information on investments in Mainland China
(d) Major shareholders
(14) Segment information Page

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Contents 1`、`Cover page 2`、`Table of contents 3`、`Independent auditors’ review report 4`、`Consolidated balance sheets 5`、`Consolidated statements of comprehensive income 6`、`Consolidated statements of changes in equity 7`、`Consolidated statements of cash flows 8`、`Notes to consolidated financial statements (1) Organization and business scope (2) Financial statements authorization date and authorization process (3) Application of New and Revised International Financial Reporting Standards and Interpretations (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimates uncertainty (6) Explanation of significant accounts (7) Transactions with Related Parties (8) Pledged assets (9) Commitments and contingencies (10) Losses due to major disaster (11) Significant subsequent events (12) Other (13) Supplementary Disclosure Requirements (a) Information on significant transactions (b) Information on investees (c) Information on investments in Mainland China (d) Major shareholders (14) Segment information	Page
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Independent Auditors’ Review Report

The Board of Director’s

Emerging Display Technologies Corp

Introduction

We have reviewed the accompanying consolidated balance sheets of Emerging Display Technologies Corp. (the Company) and subsidiaries as of March 31, 2021 and 2020, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2021 and 2020, 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 Standard 34, “Interim Financial Reporting” endorsed issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standards 65, “Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4(b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent accountants. These financial statements reflect total assets amounting to $250,359 thousand and $248,892 thousand, constituting 7.16% and 7.51% of consolidated total assets as of March 31, 2021 and 2020, respectively, total liabilities amounting to $84,730 thousand and $58,643 thousand, constituting 5.25% and 4.40%of consolidated total liabilities as of March 31, 2021 and 2020, respectively, and total comprehensive gain (loss) amounting to loss $3,268 thousand and gain $2,759 thousand, constituting 3.58% and 9.36% of consolidated total comprehensive loss for the three months ended March 31, 2021 and 2020, respectively.

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Qualified Conclusion

Based on our reviews, except for the effects of the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent accountants, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Emerging Display Technologies Corp. and subsidiaries as of March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the audit resulting in this independent auditors’ review report are Po Jen, Yang and Yen Ta, Su.

KPMG

Taipei, Taiwan (Republic of China)

May 4, 2021

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(English Translation of Financial Statements and Report Originally Issued in Chinese)

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2021, December 31, 2021, and March 31, 2020

(Expressed in thousands of New Taiwan Dollars) (Reviewed, not audited)

March 31, 2021 Amount ％ $ 818,323 23 87,518 3 359,583 10 695,426 20 7,986 - 11 - 845,059 24 60,547 2	December 31,2020 Amount ％ 1,242,331 34 58,817 2 159,760 5 589,550 16 6,090 - 18 - 870,501 24 83,002 2	March 31, 2021 Amount ％ $ 107,963 3 72 - 1,401 - 409,920 12 413,890 12 62,948 2 12,338 - - - 42,446 1	December 31,2020 Amount ％ 700,000 19 195 - 1,234 - 400,068 11 274,518 8 51,559 2 7,325 - - - 43,204 1
2,874,453 82	3,010,069 83	1,050,978 30	1,478,103 41
105,139 3 328,815 9 86,031 3 55,099 2 3,883 - 31,904 1 - - 10,600 -	98,691 3 331,314 9 67,228 2 55,158 2 4,111 - 31,928 1 - - 10,690 -	398,390 11 278 - 75,789 2 86,276 3 560 - 675 -	- - 354 - 61,833 2 87,048 2 558 - 728 -
		561,968 16	150,521 4
		1,612,946 46	1,628,624 45
		1,624,076 47 15,423 - 453,346 13 (79,437) (2) (173,021) (5)	1,624,076 45 15,423 - 591,094 17 (117,815) (3) (173,021) (5)
621,471 18 $ 3,495,924 100	599,120 17 3,609,189 100
		1,840,387 53 42,591 1	1,939,757 54 40,808 1
		1,882,978 54	1,980,565 55
		$ 3,495,924 100	3,609,189 100

See accompanying notes to financial statements.

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(English Translation of Financial Statements and Report Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income For the three months ended March 31, 2021 and 2020

(Expressed in thousands of New Taiwan dollars, Except Earnings Per Share) (Reviewed, not audited)

For the three months ended March 31 2021 2020 Amount ％ Amount ％ $ 944,762 100 814,964 100 774,124 82 674,227 83 170,638 18 140,737 17 50,797 5 48,379 6 30,342 3 31,628 4 25,374 3 24,687 3 205 - 541 - 106,718 11 105,235 13 968 - 1,058 - 64,888 7 36,560 4 741 - 4,225 - 2,246 - 4,738 1 (5,058) (1) 8,502 1 (2,089) - (3,203) - (4,160) (1) 14,262 2 60,728 6 50,822 6 9,884 1 6,969 1 50,844 5 43,853 5 42,966 5 (13,539) (2) (75) - 225 - 43,041 5 (13,764) (2) (2,583) - (606) - - - - - (2,583) - (606) - 40,458 5 (14,370) (2) $ 91,302 10 29,483 3 $ 51,141 5 43,878 5 (297) - (25) - $ 50,844 5 43,853 5 $ 89,519 10 26,589 3 1,783 - 2,894 - $ 91,302 10 29,483 3 $ 0.34 0.30	For the three months ended March 31 2021 2020 Amount ％ Amount ％ $ 944,762 100 814,964 100 774,124 82 674,227 83 170,638 18 140,737 17 50,797 5 48,379 6 30,342 3 31,628 4 25,374 3 24,687 3 205 - 541 - 106,718 11 105,235 13 968 - 1,058 - 64,888 7 36,560 4 741 - 4,225 - 2,246 - 4,738 1 (5,058) (1) 8,502 1 (2,089) - (3,203) - (4,160) (1) 14,262 2 60,728 6 50,822 6 9,884 1 6,969 1 50,844 5 43,853 5 42,966 5 (13,539) (2) (75) - 225 - 43,041 5 (13,764) (2) (2,583) - (606) - - - - - (2,583) - (606) - 40,458 5 (14,370) (2) $ 91,302 10 29,483 3 $ 51,141 5 43,878 5 (297) - (25) - $ 50,844 5 43,853 5 $ 89,519 10 26,589 3 1,783 - 2,894 - $ 91,302 10 29,483 3 $ 0.34 0.30	For the three months ended March 31 2021 2020 Amount ％ Amount ％ $ 944,762 100 814,964 100 774,124 82 674,227 83 170,638 18 140,737 17 50,797 5 48,379 6 30,342 3 31,628 4 25,374 3 24,687 3 205 - 541 - 106,718 11 105,235 13 968 - 1,058 - 64,888 7 36,560 4 741 - 4,225 - 2,246 - 4,738 1 (5,058) (1) 8,502 1 (2,089) - (3,203) - (4,160) (1) 14,262 2 60,728 6 50,822 6 9,884 1 6,969 1 50,844 5 43,853 5 42,966 5 (13,539) (2) (75) - 225 - 43,041 5 (13,764) (2) (2,583) - (606) - - - - - (2,583) - (606) - 40,458 5 (14,370) (2) $ 91,302 10 29,483 3 $ 51,141 5 43,878 5 (297) - (25) - $ 50,844 5 43,853 5 $ 89,519 10 26,589 3 1,783 - 2,894 - $ 91,302 10 29,483 3 $ 0.34 0.30	For the three months ended March 31 2021 2020 Amount ％ Amount ％ $ 944,762 100 814,964 100 774,124 82 674,227 83 170,638 18 140,737 17 50,797 5 48,379 6 30,342 3 31,628 4 25,374 3 24,687 3 205 - 541 - 106,718 11 105,235 13 968 - 1,058 - 64,888 7 36,560 4 741 - 4,225 - 2,246 - 4,738 1 (5,058) (1) 8,502 1 (2,089) - (3,203) - (4,160) (1) 14,262 2 60,728 6 50,822 6 9,884 1 6,969 1 50,844 5 43,853 5 42,966 5 (13,539) (2) (75) - 225 - 43,041 5 (13,764) (2) (2,583) - (606) - - - - - (2,583) - (606) - 40,458 5 (14,370) (2) $ 91,302 10 29,483 3 $ 51,141 5 43,878 5 (297) - (25) - $ 50,844 5 43,853 5 $ 89,519 10 26,589 3 1,783 - 2,894 - $ 91,302 10 29,483 3 $ 0.34 0.30
2021	％ 100 82	2020
Amount $ 944,762 774,124		Amount 814,964 674,227

170,638	18	140,737	17
50,797 30,342 25,374 205	5 3 3 -	48,379 31,628 24,687 541	6 4 3 -
106,718	11	105,235	13
968	-	1,058	-
64,888	7	36,560	4
741 2,246 (5,058) (2,089)	- - (1) -	4,225 4,738 8,502 (3,203)	- 1 1 -
(4,160)	(1)	14,262	2
60,728 9,884	6 1	50,822 6,969	6 1
50,844	5	43,853	5
42,966 (75)	5 -	(13,539) 225	(2) -
43,041	5	(13,764)	(2)
(2,583) -	- -	(606) -	- -
(2,583)	-	(606)	-
40,458	5	(14,370)	(2)
$ 91,302	10	29,483	3
$ 51,141 (297)	5 -	43,878 (25)	5 -
$ 50,844	5	43,853	5
$ 89,519 1,783	10 -	26,589 2,894	3 -
$ 91,302	10	29,483	3
$	0.34		0.30
$	0.34		0.29

See accompanying notes to consolidated financial statements.

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(English Translation of Financial Statements and Report Originally Issued in Chinese)

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity

For the three months ended March 31, 2021 and 2020

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

		Equity attributable to shareholders of parent	Equity attributable to shareholders of parent	Equity attributable to shareholders of parent	Equity attributable to shareholders of parent	Equity attributable to shareholders of parent			Total Equity 1,951,981
Capital stock $ 1,624,076 - - - $ 1,624,076 $ 1,624,076 - - - - $ 1,624,076	Capital surplus	Retained earnings		Unappropriated earnings 330,944 43,878 - 43,878 374,822 405,734 51,141 - 51,141 (188,889) 267,986	Other equity interest Exchange differences on translation of foreign financial statements Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income (14,111) (88,501) - - (562) (16,727) (562) (16,727) (14,673) (105,228 (18,296) (99,519) - - (2,497) 40,875 (2,497) 40,875 - - (20,793) (58,644)		Treasury stock (173,021)	Total equity attributable to shareholders of parent 1,892,106
						Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income (88,501) - (16,727) (16,727) (105,228 (99,519) - 40,875 40,875 - (58,644)
		Legal capital reserve 57,015 - - - 57,015 82,748 - - - - 82,748	Special capital reserve 151,307 - - - 151,307 102,612 - - - - 102,612
	4,397
	- -				- (562)		- -	43,878 (17,289)	43,853 (14,370)
	-				(562)		-	26,589	29,483
	4,397				(14,673)		(173,021)	1,918,695	1,981,464
	15,423				(18,296)		(173,021)	1,939,757	1,980,565
	- -				- (2,497)		- -	51,141 38,378	50,844 40,458
	-				(2,497)		-	89,519	91,302
	-				-		-	(188,889)	(188,889)
	15,423				(20,793)		(173,021)	1,840,387	1,882,978

See accompanying notes to consolidated financial statements.

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(English Translation of Financial Statements and Report Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended March 31, 2021 and 2020

(Expressed in thousands of New Taiwan Dollars) (Reviewed, not audited)

Cash flows from (used in) operating activities`：` Profit (Loss) before tax Adjustments`：` Adjustments to reconcile profit (loss)`：` Depreciation expense Amortization expense Expected credit impairment loss Net (gains) losses on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Gain on disposal of property, plant, equipment Unrealized foreign exchange loss Total adjustments to reconcile profit Changes in operating assets and liabilities Changes in operating assets: Decrease (increase) in accounts receivable Decrease in other accounts receivable Decrease in inventories Decrease in other current assets Total net changes in operating assets Changes in operating liabilities`：` Increase in notes payable Increase (decrease) in accounts payable Decrease in other payable Increase (decrease) in other current liabilities Decrease in net defined benefit liability Decrease in other non-current liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes refund (paid) Net cash flows from (used in) operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of financial assets at fair value through profit or loss Acquisition of property, plant and equipment Proceeds from disposal of property, plant, equipment Acquisition of intangible assets Acquisition of investment property Other financial assets Increase in prepayments on purchase of equipment Net cash flows from (used in) investing activities Cash flows from (used in) financing activities: Decrease in short-term loans Increase in long-term loans Repayments of long-term loans Repayment of lease liabilities Net cash flows from (used in) financing activities Effects of changes in foreign exchange rates Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the three months ended March 31 2021 2020 $ 60,728 50,822	For the three months ended March 31 2021 2020 $ 60,728 50,822
	2021 $ 60,728
	16,224 324 205 (3,712) 2,089 (730) (2,160) (256) 10,902	20,344 381 541 9,121 3,203 (4,195) - - 1,654
	22,886	31,049
	(100,903) 178 25,543 20,525	190 152 12,766 21,984
	(54,657)	35,092
	167 8,704 (49,211) (724) (772) (52)	1,465 (37,675) (83,170) 9,429 (650) (52)
	(41,888)	(110,653)
	(96,545)	(75,561)
	(73,659)	(44,512)
	(12,931) 837 47 (2,216) 1,521	6,310 4,715 - (3,117) (608)
	(12,742)	7,300
	(163,372) - (25,113) (12,269) 2,762 (96) - (5) -	(88,953) 7,218 (60,350) (7,819) - (1,439) (903) (45) (268)
	(198,093)	(152,559)
	(592,084) 400,000 - (3,395)	(167,000) - (80,000) (3,218)
	(195,479)	(250,218)
	(17,694)	(6,660)
	(424,008) 1,242,331	(402,137) 1,368,252
	$ 818,323	966,115

See accompanying notes to financial statements.

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2021 and 2020

(All amounts expressed in thousands of New Taiwan dollars, unless otherwise specified) (Reviewed, not audited)

(1) Organization and Business Scope

Emerging Display Technologies Corp. (the Company) and its subsidiaries was incorporated as a limited liability Group under the laws of the Republic of China (ROC) on September 23, 1994. The address of its registered office and principal place of business is No.5, Central 1st Rd., Qianzhen Dist., Kaohsiung City, Taiwan. The Consolidated financial statements comprise Emerging Display Technologies Corp. and its subsidiaries (jointly referred to as the Group). The Group is engaged in the manufacture and sale of Capacity Touch Panel and liquid crystal displays (LCDs).

(2) Financial Statements Authorization Date and Authorization Process

The consolidated financial statements were authorized for issuance by the Board of Directors on March 4, 2021.

(3) Application of New and Revised International Financial Reporting Standards and Interpretations
(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2021:

“ ”
．Amendments to IFRS 4 Extension of the Temporary Exemption from Applying IFRS 9
．Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16“Interest Rate Benchmark Reform－ Phase 2
(b) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC ：

Standards or

Interpretations Content of amendment Effective date per IASB Amendments to IAS 16 The amendments prohibit a company January 1, 2022 “ Property, Plant and from deducting from the cost of property, － Equipment Proceeds plant and equipment amounts received before Intended Use” from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss.

The Group is evaluating the impact on its financial position and financial performance upon its initial adoption of the above mentioned standards or interpretations. The results, thereof, will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its financial statements:

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 17“ Insurance Contracts”and amendments to IFRS 17“ Insurance Contracts”
Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Amendments to IAS 37“Onerous Contracts－Cost of Fulfilling a Contract”
Amendments to IFRS 16 “A one-year extension to the for COVID-19 related rent concessions”
Annual Improvements to IFRS Standards 2018-2020
Amendments to IFRS 3 “Reference to the Conceptual Framework”
Amendments to IAS 1 “Disclosure of Accounting Policies”
Amendments to IAS 8 “Definition of Accounting Estimates”
(4) Summary of Significant Accounting Policies

(a) Statement of compliance

The consolidated financial statements have been prepared in conforming with the Regulation Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, “Interim Financial Reporting,” endorsed by FSC. These consolidated financial statements do not include all of the information required by the Regulations and by the IFRS endorsed by the FSC for full annual consolidated financial statements.

Except as described below, the significant accounting policies for the consolidated financial statement applied in these consolidated financial statements is consistent with those applied in the consolidated financial statements for the year ended December 31, 2020. Please refer to Note 4 of 2020 consolidated financial statement for detail information.

(b) Basis of consolidation

(i) Subsidiaries included in the consolidated financial statements are as follows:

Name of investor	Name of the subsidiary	Business Activity Sale of CTP and LCDs Investment holding Customer service and business support Trading Sale of CTP and LCDs Customer service and business support Investment Investment Investment Investment holding Investment holding Manufacturing of CTP and LCDs	Percentage ownership	Percentage ownership	Percentage ownership	Remarks
			March 31,2021 100.00% 78.49% 100.00% Note 1 100.00% 100.00% 100.00% 100.00% 52.50% 5.90% 11.41% 100.00%	December 31,2019 100.00% 78.49% 100.00% Note 1 100.00% 100.00% 100.00% 100.00% 52.50% 5.90% 11.41% 100.00%	March 31,2020
The Company The Company The Company The Company The Company The Company The Company The Company The Company Ying Dar Investment Development Corp. Bae Haw Investment Development Corp. Emerging Display International (Samoa) Corp.	Emerging Display Technologies Corp., U.S.A Emerging Display International (Samoa) Corp. EDT-Europe ApS Tremendous Explore Corp. Emerging Display Technologies Korea EDT-Japan Corp. Ying Dar Investment Development Corp. Bae Haw Investment Development Corp. Ying Cheng Investment Corp. Emerging Display International (Samoa) Corp. Emerging Display International (Samoa) Corp. Dong Guan Emerging Display Limited				100.00% 78.49% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 52.50% 5.90% 11.41% 100.00%	Major Subsidiary Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2

Note1: Tremendous Explore Corp. was liquidated in July, 2020. The related liquidation procedures had been completed.

Note 2: Quarterly financial reports are unaudited for non-major subsidiaries.

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(ii) Subsidiaries which are not included in the consolidated financial statements: None.

(c) Income tax

The Group prepared income tax in conforming with interim income tax measurement and disclosure of paragraph B12 of IAS 34 “Interim Financial Reporting”.

Income tax expense is calculated based on an interim period’s pre-tax income multiplied by best estimation of the annual income tax rate expected for the full financial year and recognized as current income tax expense. Current income tax expense and deferred tax expense are recognized based on the prorated estimated annual current income tax expense and deferred tax.

Income tax expense is directly recognized in equity items or other comprehensive items which is the

temporary difference between book value of assets and liabilities at reporting date and tax basis to measure by using appropriate tax of expected realize assets and settle the liabilities.

(d) Employee benefit

Interim defined benefit pension is calculated on a year-to-date basis using the actuarially determined pension cost rate adjusted for significant market fluctuations, curtailments, settlement or other one-time events.

(5) Critical Accounting Judgement and Key Sources of Estimation and Uncertainty

Management team prepared quarterly consolidated financial statements in conforming with IAS 34, “Interim Financial Reporting,”, and make judgement, estimation and assumption and the reporting amount will be affected by accounting policies, assets, liabilities, revenue and expense. The actual outcome might be different from the estimation.

In preparing the consolidated financial statements, critical accounting judgments and key sources of estimation uncertainty used by management in the application of accounting policies are consistent with those described in Note 5 of the consolidated financial statements for the year ended December 31, 2020.

(6) Explanation of significant accounting items

The explanation of significant accounting items of this quarterly consolidated financial statements had no significant difference compared with the Group consolidated financial statements for the year ended December 31, 2020. Please refer to Note 6 of 2020 consolidated financial statements.

(a) Cash and cash equivalents

Cash and cash equivalents Demand deposits Check deposits Time deposits Repurchase agreement Total	March 31,2021 $ 378 581,251 596 89,829 146,269	December 31,2020	March 31,2020 380 316,796 249 496,245 152,445 966,115
		328 565,624 82 273,962 402,335
	$ 818,323	1,242,331

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

Current financial assets mandatorily measured at fair value through profit or loss`：` Open-end mutual funds Swap Contract Total Current financial liabilities measured at fair value through profit or loss`：` Forward exchange contract Swap Contract	March 31,2021 $ 87,518 - $ 87,518 March 31,2021 $ 72 - $ 72	December 31,2020 58,817 - 58,817 December 31,2020 - 195 195	March 31,2020 103,962 368 104,330 March 31,2020 - - -

Please refer to Note 6(y) for the recognition of gain or loss at fair.

The abovementioned financial assets were not pledged as collateral.

The Group entered into derivative instruments to manage exposure to currency risk arising from operating activities and doesn’t applicable to hedge accounting. The Group’s derivative instruments were as follows presented under financial assets mandatorily measured at FVTPL and financial liabilities measured at FVTPL; presented under financial assets held for trading：

Forward exchange contract ：

Forward exchange contract Sell Swap contract Swap contract		March 31,2021 Currency Maturity period USD to CNY 110.05.13 December 31,2020 Currency Maturity period NTD to USD 110.01.07 March 31,2020 Currency Maturity period NTD to USD 109.06.05~109.06.29
	Contract amount (Thousand Dollar) USD 300	Currency
	Contract amount (Thousand Dollar) USD 1,000	Currency
	Contract amount (Thousand Dollar) USD 2,000	Currency
		NTD to USD

Please refer to Note 6(z) for credit risk and market risk.

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

Equity instruments at fair value through other comprehensive income-current: Common stocks listed on domestic markets -current: Innolux Corp. Fubon Financial Holding Co., Ltd. Taiwan Cement Corp., Ltd. Synnex Technology International Co., Ltd. Nan Ya Plastics Corporation Pegatron Co., Ltd. CoAsia Electronics Corp. E.SUN Financial Holding Co., Ltd. Far Eastern New Century Corp. Quanta Computer Inc. Shian Yih Electronic Co., Ltd. AGV Products Corporation Getac Technology Corporation CTBC Financial Holding Co., Ltd. Chicony Electronics Co., Ltd. Total Common stocks listed on foreign markets `－`current`：` Becton, Dickinson and Company Total Equity instruments at fair value through other comprehensive income-noncurrent: Common stocks unlisted on domestic markets – non-current: Ascendax Venture Capital Corp. Chenfeng Optronics Corp. Total Preference stocks listed on domestic markets- non-current`：` Fubon Financial Holding Co., Ltd Total	March 31,2021 $ 24,203 17,040 - 29,975 16,758 16,006 6,102 19,726 30,200 46,060 32,205 918 34,515 41,548 30,450 345,706 13,877 $ 359,583 $ 20,698 83,580 104,278 861 $ 105,139	December 31,2020 16,174 14,025 - - 15,099 14,537 5,764 19,310 28,950 - 30,637 1,011 - - - 145,507 14,253 159,760 19,566 78,260 97,826 865 98,691	March 31,2020 5,999 11,265 7,900 24,445 11,487 12,528 3,744 16,975 18,040 29,498 30,456 695 - - - 173,032 13,890 186,922 14,318 131,320 145,638 842 146,480

～ 12 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

The purpose that the Group invests in the abovementioned equity instruments is for long term strategies, but rather for trading purpose, and therefore, is accounted for as FVOCI.

For the three months ended March 31, 2021 and 2020, the Group has recognized the dividend income of $2,16 and $0 from equity instruments designated at fair value through other comprehensive income, respectively.

None of the aforementioned stock investments were disposed for the three months ended March 31, 2021 and 2020, therefore, there were no transfers of any cumulative gain or loss under equity relating

to these investments.

Please refer to Note 6(z) for market risk.

The abovementioned financial assets were not pledged as collateral.

For the purpose of increasing investment profits, the Group entrusts partial listed companies as the beneficiary. According to the terms of the contract, the Group does not transfer risk and remuneration of these financial assets, and they had not been derecognized. As of March 31,2021, December 31, 2020 and March 31, 2020, the carrying amount of the listed stocks which were entrusted to financial institutions for security lending amounted to $24,203, $16,174and $5,999, respectively.

(d) Accounts receivable

Accounts receivable-measured as amortized cost Allowance for impairment	March 31,2021 $ 701,244 (5,818) $ 695,426	December 31,2020 595,163 (5,613) 589,550	March 31,2020 559,833 (19,312) 540,521

The Group applies the simplified approach to provide for the loss allowance used for expected credit losses, which permit the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, accounts receivables have been grouped based on past default experience of the customers and shared credit risk characteristics, as well as incorporate forward looking information, including macroeconomic and relevant industry information. The loss allowance provision was determined as follows ：

	March 31,2021
Carrying amount of Accounts Receivable	Weighted-average expected credit loss rate 0.12% 0.29% 92% 100% -	Loss allowance for lifetime expected credit losses 682 315 69 4,131 -
$ 588,068 108,295 750 4,131 - $ 701,244
		5,818

～ 13 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Current Overdue less than 90 days Overdue 91~180 days Overdue 181 days Current Overdue less than 90 days Overdue 91~180 days Overdue 181~270 days Overdue 271~365 days Overdue over 365 days	December 31,2020 Carrying amount of Accounts Receivable Weighted-average expected credit loss rate $ 495,965 0.12% 95,060 0.96% 4,138 100% - - $ 595,163 March 31,2020 Carrying amount of Accounts Receivable Weighted-average expected credit loss rate $ 372,577 0.10% 168,435 0.10% 50 0.10% - - - - 18,771 100% $ 559,833	December 31,2020 Carrying amount of Accounts Receivable Weighted-average expected credit loss rate $ 495,965 0.12% 95,060 0.96% 4,138 100% - - $ 595,163 March 31,2020 Carrying amount of Accounts Receivable Weighted-average expected credit loss rate $ 372,577 0.10% 168,435 0.10% 50 0.10% - - - - 18,771 100% $ 559,833		Loss allowance for lifetime expected credit losses 574 908 4,131 -
		Weighted-average expected credit loss rate 0.12% 0.96% 100% - March 31,2020
				5,613
				Loss allowance for lifetime expected credit losses 372 169 - - - 18,771
		Weighted-average expected credit loss rate 0.10% 0.10% 0.10% - - 100%
				19,312

The movement in the provision for impairment loss with respect to trade receivables was as follows:

Balance on January 1 Recognition of impairment loss Ending balance	For the three months ended March 31 2021 2020 $ 5,613 18,771 205 541 $ 5,818 19,312	For the three months ended March 31 2021 2020 $ 5,613 18,771 205 541 $ 5,818 19,312
	2021 $ 5,613 205
	$ 5,818

The abovementioned financial assets were not pledged as collateral.

Please refer to Note 6(z) for credit risk.

(e) Other receivables

Other receivables
Loans to employee Dividend receivables Others Allowance for impairment	March 31,2021 $ 4,984 2,146 856 - $ 7,986	December 31,2020	March 31,2020 8,664 - 2,140 - 10,804
		5,154 33 903 -
		6,090

Please refer to Note 6(z) for credit risk.

～ 14 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(f) Inventories

Inventories
Raw materials and supplies Work in process Finished goods Inventories in transit	March 31,2021 $ 342,598 283,708 216,203 2,550	December 31,2020	March 31,2020 255,215 300,460 233,166 1,665 790,506
		346,225 299,441 215,535 9,300
	$ 845,059	870,501

The details of cost of sales are as follows ：

Reclassification to cost of sales and expenses Inventory loss of write-down (gain on reversal of inventory) Unamortized manufacturing expenses Loss on scrap Others	For the three months ended March 31	For the three months ended March 31
	2021	2020
	$ 759,736 (11,330) 4,708 21,080 (70)	651,278 1,088 6,335 15,563 (37)
	$ 774,124	674,227

For the three months ended March 31,2021, the Group recognized a gain from price recovery of inventory was due to, the previous write-down inventories had been sold, therefore, the net realizable value of inventories lowered than cost was no longer existed, the reversal was recorded as operating costs. For the three months ended March 31,2020, the Group recognized an inventory valuation loss, accounted for as cost of goods sold, due to the decreasing value from the carrying amount to the net realized value.

Inventories were not pledged as collaterals.

(g) Other current assets

The details of other current assets are as follows ：

Income tax refund receivable Prepayment for purchases Prepaid expense Prepaid sales tax Restricted time deposits Refundable deposits Others Book as: Other current assets Other financial assets`－`non-current	March 31,2021 $ 2,468 33,409 5,125 14,124 2,057 10,073 3,891	December 31,2020	March 31,2020 2,002 17,981 6,818 6,939 2,107 7,064 3,371 46,282 38,660 7,622 46,282
		1,954 63,725 6,757 5,496 2,051 10,164 3,545
	$ 71,147	93,692
	$ 60,547 10,600	83,002 10,690
	$ 71,147	93,692

～ 15 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

The above mentioned restricted time deposits had been pledged as collateral. Please refer to note 8.

(h) Major non-controlling interests’ share of subsidiaries

Significant to the Group of the non-controlling interest subsidiaries are as follows:

Name of subsidiaries Ying Cheng Investment Corp. Emerging Display International (Samoa) Corp.	Principal place of business	Proportion of non-controlling interest voting equity March 31,2020 December 31,2019 March 31,2019 47.5% 47.5% 47.5% 4.2% 4.2% 4.2%
	Taiwan Samoa

Summarize above subsidiaries financial information as below which had prepared based on International Financial Reporting Standards endorsed by FSC. The below financial information was prior to the offset amount with the Group:

Summarized financial information for Ying Cheng Investment Corp. is as follows:

	March	March	December	March
	31,2021		31,2020	31,2020
Current asset	$	9,970	10,002	10,090
Non-current asset		71,640	67,080	112,560
Current liability		(30)	(50)	(50)
Net asset	$	81,580	77,032	122,600
Non-controlling equity closing book amount	$	38,751	36,591	58,235
		For	the three months ended March 31
			2021	2020
Operating revenue		$	-	-
Net loss		$	(12)	(12)
Other comprehensive income			4,560	6,240
Comprehensive income		$	4,548	6,228
Loss attributable to non-controlling interest		$	(6)	(6)
Comprehensive income attributable to non-controlling		$	2,160	2,958
interest

Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Net increase(decrease) in cash and cash equivalents	For the three months ended March 31 2021 2020 $ (32) (12) - - - - $ (32) (12)
	$ (32)

～ 16 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Summarized financial information for Emerging Display International (Samoa) Corp. is as follows ：

		March		December	March
	31,2021			31,2020	31,2020
Current asset	$	119,594		138,640	133,338
Non-current asset		36,477		15,264	20,865
Current liability		(49,751)		(53,503)	(46,243)
Non-current liability		(14,884)		-	-
Net asset	$	91,436		100,401	107,960
Non-controlling equity closing book amount	$	3,840		4,217	4,534
Current asset
			For	the three months ended March 31
				2021	2020
Operating revenue		$		20,083	33,782
Net loss		$		(6,930)	(456)
Other comprehensive income				(2,035)	(1,059)
Comprehensive income		$		(8,965)	(1,515)
Loss attributable to non-controlling interest		$		(291)	(19)
Comprehensive income attributable to non-controlling
interest		$		(377)	(64)
			For	the three months ended March 31
				2021	2020
Cash flow from operating activities		$		1,232	9,317
Cash flow from investing activities				(1,258)	(488)
Cash flow from financing activities				(1,659)	(1,509)
Effects of changes in foreign exchange rates				(68)	(219)
Net increase(decrease) in cash and cash equivalents		$		(1,753)	7,101

(i) Property, plant and equipment

The cost and depreciation of the property, plant and equipment of the Group were as follows:

Land	Building and construction	Machinery and equipment	Other	Total
$ 23,940 - - - 46	1,048,089 541 - (66) (339)	2,402,579 1,314 3,423 - (1,494)	146,461 10,511 (3,423) (5,184) (73)	3,649,342 12,521 - (5,250) (1,935)
$ 23,986	1,048,225	2,405,822	148,292	3,654,678
$ 25,201 - - 206	1,047,550 65 275 (400)	2,384,197 486 64 (2,258)	133,476 2,564 (339) (66)	3,618,755 3,115 - (2,528)
$ 25,407	1,047,490	2,382,489	135,635	3,619,342

～ 17 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Land	Building and construction	Machinery and equipment	Office equipment	Other
$ - - - - $ - $ - - - $ - $ 23,940 $ 23,986 $ 25,201 $ 25,407	817,727 3,750 (66) (336)	2,355,670 4,752 - (1,453) 2,358,969 2,330,684 5,540 (2,182) 2,334,042 46,909 46,853 53,513 48,447	27,246 87 - (77) 27,256 26,927 198 (17) 27,108 1,027 1,097 1,404 1,213	117,385 3,909 (2,678) (53) 118,563 95,053 6,544 (52) 101,545 29,076 29,729 38,423 34,090
	821,075
	800,136 4,477 (481)
	804,132
	230,362
	227,150
	247,414
	243,358

Please refer to Note 6(y) for detail of disposal gain and loss.

Property, plant and equipment pledged as collateral for long-term loans and finance were disclosed in Note 8.

(j) Right-of-use assets

The movements in the cost and depreciation of the leased land, buildings, transportation equipment were as follows ：

Land $ 66,409 - -	Building and construction 27,904 22,695 (729)	Transportation equipment 326 - -	Total 94,639 22,695 (729)
$ 66,409	49,870	326	116,605
$ 67,226 (817) -	23,509 - (131)	214 - 2	90,949 (817) (129)
$ 66,409	23,378	216	90,003
$ 5,482 680 -	21,893 2,855 (399)	36 27 -	27,411 3,562 (399)
$ 6,162	24,349	63	30,574
$ 2,757 683 -	10,857 2,720 (63)	128 33 1	13,742 3,436 (62)
$ 3,440	13,514	162	17,116

～ 18 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Land $ 60,927	Building and construction 6,011	Transportation equipment 290	Total 67,228
$ 60,247	25,521	263	86,031
$ 64,469	12,652	86	77,207
$ 62,969	9,864	54	72,887

(k) Investment property

Investment property includes assets owned by the Group such as office buildings leased to third party.

Based on original lease terms of investment property, non-cancellable lease term is four years and the lessee has the right to extend upon expiry. Subsequent lease term will consult with the lessee and didn't charge contingent rental. Please refer to Note 6(q) for information of the rental income.

Rental income of leased investment property has a fixed amount.

Investment property cost and depreciation of the Group were as follows ：

Land $ 45,333 87	Building and construction 15,500 30	Total 60,833 117
$ 45,420	15,530	60,950
$ 47,720 - 390	15,418 903 129	63,138 903 519
$ 48,110	16,450	64,560
$ - - -	5,675 164 12	5,675 164 12
$ -	5,851	5,851
$ - - -	5,304 149 44	5,304 149 44
$ -	5,497	5,497
$ 45,333	9,825	55,158
$ 45,420	9,679	55,099
$ 47,720	10,114	57,834
$ 48,110	10,953	59,063

～ 19 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

There was no significant differences of the Group’s fair value of investment property which compared with the consolidated financial statements Note 6(k) for the year ended December 31,2020.

The investment property was not pledged as collateral.

(l) Intangible assets

Initial cost and accumulated amortization for intangible assets were as follows:

Initial cost: Balance as of January 1, 2021 Individual acquisition Disposals Effects of changes in foreign exchange rates Balance as of March 31, 2021 Balance as of January 1, 2020 Individual acquisition Disposals Effects of changes in foreign exchange rates Balance as of March 31, 2020 Amortization: Balance as of January 1, 2021 Amortization Disposals Effects of changes in foreign exchange rates Balance as of March 31, 2021 Balance as of January 1, 2020 Amortization Disposals Effects of changes in foreign exchange rates Balance as of March 31, 2020 Carrying amount: Balance as of January 1, 2021 Balance as of March 31, 2021 Balance as of January 1, 2020 Balance as of March 31, 2020	Patent $ 2,888 69 (54) -		Computer software cost 9,477 27 - (1)		Total amount 12,365 96 (54) (1) 12,406 11,575 1,439 (912) 2 12,104 8,254 324 (54) (1) 8,523 7,798 381 (912) 3 7,270 4,111 3,883 3,777 4,834
	$ 2,903		9,503
	$ 3,557 70 (912) -		8,018 1,369 - 2
	$ 2,715		9,389
	$ 1,433 64 (54) -		6,821 260 - (1)
	$ 1,443		7,080
	$ 2,137 69 (912) -		5,661 312 - 3
	$ 1,294		5,976
	$ 1,455		2,656
	$ 1,460		2,423
	$ 1,420		2,357
	$ 1,421		3,413

Intangible assets were not pledged as collateral.

～ 20 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(m) Short-term loans

The details of short-term loans were as follows:

Unsecured bank loans Unused lines of credit Range of interest rates		March 31,2021 $ 107,963 $ 1,878,280 0.81%~1%	December 31,2020 700,000 1,173,097 0.80%~0.85%		March 31,2020
					233,000 1,492,698 0.98%~1.03%

Short-term loans were not pledged as collateral.

Please refer to note 6(z) for the interest rate risk and sensitivity analysis of the financial liabilities of the Group.

(n) Other payables

Other payables
Salaries and wages payables Year-end bonus payables Employee remuneration payables Directors’ and supervisors’ remuneration payables Employee benefit liabilities Dividends payable Others	March 31,2021 $ 46,280 15,000 17,993 10,796 37,145 188,895 97,781		December 31,2020	March 31,2020 39,850 10,000 19,172 11,503 29,473 - 93,245 203,243
			47,042 68,000 14,683 8,810 34,270 - 101,707
		$ 413,890	274,512

(o) Long-term loans

The details of long-term loans were as follows：

Commercial paper payable Secured bank loans Less: discount on long-term loans Total Recognized in: Long-term loans, current portion Unused long-term credit lines Range of interest rates	March 31,2021 $ 400,000 - (1,610)	December 31,2020	March 31,2020 - 240,000 (278) 239,722 239,722 240,000 1.8083%
		- - -
	$ 398,390	-
	$ -	-
	$ 400,000	800,000
	1.1613%	-

On November 17, 2016, the Group entered into a syndicated loan agreement with eight banks leaded by Tai Shin Bank for the period from the date of first borrowing to the three-year term with cycle use lines of credit. The credit line will decrease every 6 months since two years after the first appropriation date. The first and second phase will decrease by 20% of the effective credit line, and the third phase will decrease by 60%. The Group will repay the total borrowing upon maturity. The contract had expired and the borrowed amount had been fully repaid in 2020.

～ 21 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

The Group signed a 5 year syndicated loan contract with E.SUN bank and six other banks at May 15, 2020, with a revolving credit line of $800,000 from the first appropriation date to maturity date, wherein $800,000 can be appropriated by using the Company's own fund and $600,000 by using commercial paper, and the combined credit line should not exceed $800,000. According to the loan contract, the Group should repay the syndicated loan contract signed on November 17, 2016, before the first appropriation date. Additionally, the date after 9 months when the contract was signed will be considered as the first appropriation date even if the credit line is unused after 9 months. The credit line will decrease every 6 months since 36-month after the first appropriation date with total five year to decrease the credit line. The first to fourth phase will decrease by 12.5% of the effective credit line and the fifth phase will decrease by 50% which will repay the total borrowing upon maturity. The Group borrowed the amount of $400,000 on February 5, 2021, by issued Commercial paper. For the related information and concerned restricted terms, please refer to Note 6(o) of 2020 consolidated financial statements.

Assets pledged as collateral for long-term loans are disclosed in Note 8.

(p) Lease liabilities

The details of lease liabilities were as follows ：

Current Non-Current	March 31,2021 $ 12,338 $ 75,789	December 31,2020	March 31,2020 10,687 63,691
		7,325
		61,833

For maturity analysis, please refer to Note 6 (z) Financial Instruments.

The amounts recognized in profit or loss were as follows ：

Interest on lease liabilities Expenses relating to short-term leases Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets COVID-19-related rent concessions	For the years ended March 31,2021 $ 683	For the years ended March 31,2020 687 562 58 1,131
	$ 542
	$ 60 $ -

The amounts recognized in the statement of cash flows for the Group were as follow ：

Total cash outflow for leases	For the years ended March 31,2021 $ 4,890	For the years ended March 31,2020 4,835

(i) Lease of land, building and construction

The Group leases land and buildings for its office use. The leases of land and buildings run for approximately 2 to 10 years, and the lease period of office premises is usually 2 to 3 years.

Lease payments for certain contracts are subject to changes in the local price index, which usually occur once a year.

～ 22 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

The lease agreements for some of the equipment include the option to extend the lease or terminate the lease, which are managed separately by each region, and therefore the individual terms and conditions agreed upon are different within the Group. These options are only for the Group to have enforceable rights and the lessor does not have this right. In the event that it is not possible to reasonably determined the period of the extended lease that will be exercisable, the related payments over the period covered by the option are not included in the lease liability.

(ii) Other leases

The lease period for the Group leased transportation equipment is one to two years.

The Group supervises the use of such transportation equipment and re-measures the lease liability and right-of-use assets on the reporting date.

In addition, the lease term of the Group leased machinery and equipment is one to three years. These leases are short-term or low-value leases. The Group chooses to apply the exemption recognition requirement without recognizing its related right-of-use assets and lease liabilities.

(q) Operating lease

There was no increase for operating lease for the three months ended March 31, 2021 and 2020. Please refer to Note 6(q) of the 2020 consolidated financial statements.

(r) Employee benefits

(i) Defined benefit plan

There were no significant market fluctuations, curtailments, settlement or other one-time events after the end of the previous financial year, the pension cost measurement and disclosure of interim pension cost were calculated based on actuarial adopted on December 31, 2020 and 2019.

Cost recognized in expense was as below ：

December 31, 2020 and 2019. Cost recognized in expense was as below`：`
Operating cost Selling expenses General and administrative expenses Research and development expenses	For the years ended March 31,2021	For the years ended March 31,2020 287 14 47 34 382
	$ 230 12 36 27
	$ 305

(ii) Defined Contribution Plan

Cost recognized in expense was as below ：

Operating cost Selling expenses General and administrative expenses Research and development expenses	For the years ended March 31,2021	For the years ended March 31,2020
	$ 5,776 1,350 584 685	5,442 1,300 488 683 7,913
	$ 8,395

～ 23 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(s) Income tax

Income tax expense for the period is best estimated by multiplying pretax income for the interim reporting period with the effective annual tax rate as forecasted by management.

The amounts of income tax expense (benefit) were as follows ：

Current tax expense Current Deferred tax expense(benefit) Origination and reversal of temporary differences Income tax expense	For the years ended March 31,2021	For the years ended March 31,2020
	$ 9,879	6,952 17 6,969
	5
	$ 9,884

For the three months ended March 31,2021 and 2020 no income tax was recognized directly in equity.

The amount of income tax benefit recognized in other comprehensive income (loss) were as follows ：

Items that will not be reclassified subsequently to profit or loss`：` Unrealized gains or losses from investments in equity instruments measured at FVOCI	For the years ended March 31,2021	For the years ended March 31,2020
	$ (75)	225

Approval of income tax

The Company’s income tax returns for all fiscal years up to 2019 have been examined and approved by the R.O.C. tax authority.

(t) Share capital and other equity

The Group had no share capital change for the three months ended March 31, 2021 and 2020 except

below statement. Please refer to Note 6(t) of 2020 consolidated financial statements for detail information.

(i) Capital Stock

As of March 31, 2021, December 31 and March 31, 2020, the authorized share capital of the Company amounted to $3,500,000 comprising 350,000 thousand shares with a par value of TWD10 per share, outstanding shares of stock are 162,408 thousand shares. Excluding shares of treasury stock that had been purchased by the Company and shares of stock held by the subsidiaries, outstanding shares of stock are 148,613 thousand shares.

(ii) Capital surplus

Capital surplus was as follows ：

Treasury stock Disgorgement Total	March 31,2021 $ 14,950 473	December 31,2020 14,950 473 15,423	March 31,2020 4,397 - 4,397
	$ 15,423

～ 24 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(iii) Earnings distribution

The appropriations of earnings for 2020 have been approved in the meeting of the board of directors held on March 10, 2021, which was authorized by company’s articles of Incorporation. And the appropriations of earnings for 2019 had been approved in the shareholders’ meeting held on June 12, 2020. The appropriation and dividend per share were as follows ：

Cash dividend to shareholders (TWD)`：` Cash $ ) Other equity (net of tax) Foreign exchange differences arising from foreign operation Balance at January 1, 2021 $ (18,296) `－`Changes of the Group (2,497) Balance at March 31, 2021 $ (20,793) Balance at January 1, 2020 $ (14,111) `－`Changes of the Group (562) Balance at March 31, 2020 $ (14,673)	Cash dividend to shareholders (TWD)`：` Cash $ ) Other equity (net of tax) Foreign exchange differences arising from foreign operation Balance at January 1, 2021 $ (18,296) `－`Changes of the Group (2,497) Balance at March 31, 2021 $ (20,793) Balance at January 1, 2020 $ (14,111) `－`Changes of the Group (562) Balance at March 31, 2020 $ (14,673)	$	2020 1.2 Unrealized gains (losses) on financial assets measured at FVOCI (99,519) 40,875		2019 1.2 Total (117,815) 38,378 (79,437) (102,612) (17,289) (119,901)
	$ (18,296) (2,497)
	$ (20,793)		(58,644)
	$ (14,111) (562)		(88,501) (16,727)
	$ (14,673)		(105,228)

(iv) Other equity (net of tax)

(v) Treasury stock

The changes of treasury stocks were as follows ：

(Expressed in thousands of shares)

Reason to buy back January to March, 2021 Transfer to employees January to March, 2020 Transfer to employees	Beginning Shares 5,000 5,000	Increase shares	Decrease shares -	Ending share 5,000 5,000
		-
		-	-

As of March 31, 2021, December 31 and March 31, 2020, the costs of treasury stocks amounted to $50,739.

In accordance with Securities and Exchange Act requirements, treasury stocks held by the Company should not be pledged, and do not hold shareholder rights before their transfer. Ying Dar Corp. and Bae Haw Corp., 100%-owned subsidiaries of the Company, held the Company’s common stock. For the three months ended March 31, 2021 and 2020, Ying Dar Corp. and Bae Haw Corp. did not purchase or dispose any of the Company’s shares. As of March 31, 2021, December 31 and March 31, 2020, Ying Dar Corp. and Bae Haw Corp. together held 8,794 thousand shares of the Company’s common stock, The cost was $122,282 which was recognized in treasury stocks. As of March 31, 2021, December 31 and March 31, 2020, their market values amounted to $175,888, $169,292and $140,710, respectively.

～ 25 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(u) Earnings per share

The calculation of basic earnings per share and diluted earnings per share were as follows ：

For the three months ended March 31

Basic earnings per share Profit attributable to owners of parent Weighted-average number of ordinary shares at end of year (expressed in thousands of shares) Expressed in New Taiwan dollars Diluted earnings per share Profit attributable to owners of parent Weighted-average number of ordinary shares (expressed in thousands of shares) Effect of potentially dilutive ordinary stock: `－`Employee bonus (expressed in thousands of shares) Weighted-average number of ordinary shares- diluted (expressed in thousands of shares) Expressed in New Taiwan dollars	2021	2020
	$ 51,141	43,878 148,613 0.30 43,878 148,613 987 149,600 0.29
	148,613
	$ 0.34
	$ 51,141
	148,613 737
	149,350
	$ 0.34

In computing above basic earnings (loss) per share of ordinary stock for the three months ended March 31, 2021 and 2020, the weighted-average numbers of shares of common stock outstanding excluded 8,794 thousand shares of common stock held by the Company’s subsidiaries as treasury stock.

(v) Revenue from Contracts with Customers

(i) Disaggregation of revenue

For Domestic $ 574,000 172 164,061	the three months ended March	the three months ended March
	2021
	North America - 170,588 35,407	Other operating department 468 - 66
$ 738,233	205,995	534
$ 158,019 577,401 2,813	103,445 100,589 1,961	- - 534
$ 738,233	205,995	534

～ 26 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

		For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
			2020
				Other
			North	operating
		Domestic	America	department		Total
Primary geographical markets:
Europe	$	470,350	36		90	470,476
USA		-	156,322	-		156,322
Others		140,835	47,032		299	188,166
Total	$	611,185	203,390		389	814,964
Major products:
Liquid crystal display modules	$	172,995	105,671	-		278,666
Capacitive touch panel and		433,337	89,818	-		523,155
capacitive touch panel module
Others		4,853	7,901		389	13,143
Total	$	611,185	203,390		389	814,964
(ii) Contract balance
		March 31,2021 December 31,2020			March 31,2020
Accounts receivable (including related parties)		$	701,244	595,163		559,833
Less: allowance for impairment Total		$	(5,818) 695,426	(5,613) 589,550		(19,312) 540,521
Contract liability`－`Unearned revenue
(recognized in other current liabilities)		$	32,066	33,286		24,225

Please refer to Note 6(d) for accounts receivables and impairment.

The amount of revenue recognized for the three months ended March 31, 2021 and 2020, that was included in the contract liability balance at the beginning of the period were $1,982 and $1,676 respectively.

(w) Employee’s remuneration, and directors’ and supervisors’ remuneration

According to the Company’s articles of association, the Company should contribute no less than 5% of the profit as employee remuneration and a maximum of 3% as directors’ and supervisors’ remuneration when there is profit for the year. However, certain amounts of the earnings should be reserved if there is an accumulated loss from operations in previous years in advance of the appropriation of the employee bonuses. The aforementioned employee bonuses will be distributed in cash or stock to employees who satisfy certain specifications of the Group and its affiliates.

The Company accrued the remuneration of employees amounted and the remuneration of directors' and supervisors' amounted were as follows ：

Employee’s remuneration Directors’ and supervisors’ remuneration	For the three months ended March 31 2021 2020 $ 3,310 2,810 $ 1,986 1,686
	2021
	$ 3,310
	$ 1,986

～ 27 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

The above amount were estimated as the Company’s net income before tax, excluding remuneration of employees and remuneration of directors and supervisors, multiplied by the appropriate percentage in compliance with the Company’s articles. These expenses were recognized in operating costs and operating expenses for the respective period. In case the variances between actual and estimated expenses occur during next year, the variances concerned will be recognized in next year’s profit. If the Company’s Board of Directors resolve to issue its stocks as the remuneration of employees, it will be calculated based on the closing price of its stock on the day before the approval by of Directors.

The accrued compensation of employees amounted to $14,683 and $16,362 for 2020 and 2019, respectively, and the accrued remuneration of directors’ and supervisor’s amounted to $8,810 and $9,817 respectively. Actual distribution had no difference with accrued amounts. The previous distribution of compensation to employees, remuneration of directors and supervisors approved by Board of Directors for related information, please go to website: http://emops.twse.com.tw.

(x) Other operating income and expenses

Net other income (expenses) consists of rental income from investment property and lending space.

(y) Non-operating income and expenses

(i) Interest income

The details of interest income were as follows ：

Bank deposits Others	For the three months ended March 31	For the three months ended March 31
	2021	2020
	$ 730 11	4,195 30 4,225
	$ 741

(ii) Other income

The details of other income were as follows ：

Dividend income Others	For the three months ended March 31	For the three months ended March 31
	2021	2020
	$ 2,160 86	- 4,738 4,738
	$ 2,246

(iii) Other gains and losses Details of other gains and losses were as follows ：

Foreign exchange gains (losses) Net gains (losses) on disposal of financial assets (liabilities) measured at fair value through profit or loss Net gains on disposal of property, plant and equipment Others	For the three months ended March 31	For the three months ended March 31
	2021	2020
	$ (8,089) 2,775 256 -	18,257 (9,749) - (6) 8,502
	$ (5,058)

～ 28 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(iv) Finance cost

Details of finance costs were as follows ：

Finance cost Details of finance costs were as follows`：`
Interest expenses Bank loans Lease liabilities Management fee of syndicated loan	For the three months ended March 31
	2021	2020
	$ 1,356 683 50	2,454 687 62
	$ 2,089	3,203

(z) Financial instruments

There was no significant change of the Group’s fair value of financial instruments, exposure to credit risk, liquidity risk and market risk except below statements. Please refer to Note 6(z) of 2020 consolidated financial statements.

(i) Credit risk
1) Exposure to credit risk

The Group’s maximum exposure to credit risk was the carrying amount of financial assets.

2) Concentration of credit risk

As of March 31, 2021 and December 31, 2020, one customer accounted for 38.69% and 45.56% of total accounts receivables. The Group has no significant concentration of its accounts receivable as of March 31, 2020.

3) Accounts receivable of credit risk

Please refer to Note 6(d) for accounts receivable and notes receivable of credit risk exposure. Other financial assets measured at amortized cost including other accounts receivable, refundable deposits, and certificate deposit recognized as debt instrument without active market. All of these financial assets are considered to be low risk, and thus the impairment provision recognized during the period was limited to 12 months expected credit losses. None of the expected credit losses that should be included in the assessment. Please refer to Note 6(e).

(ii) Liquidity risk

Details of financial liabilities categorized by due dates were as follows. The amounts include interest expenses but exclude the impacts of negotiated net amounts.

Carrying amount March 31, 2021 Non-derivative financial liabilities Secured loans (floating rate) $ 398,390 Unsecured loans (floating rate) 107,963 Accounts payable (non- interest bearing) 409,920 Notes payable (non-interest bearing) 1,401 Other payable (non-interest bearing) 413,890 Lease liability (fixed interest rate) 88,127 Guarantee deposits received (non-interest bearing) 560	Contracted cash flows (422,538) (108,180) (409,920) (1,401) (413,890) (122,888) (560)	Due within 6 months (2,316) (108,180) (409,920) (1,401) (413,890) (8,303) -	Due in 6- 12months (2,316) - - - - (7,283) -	Due in 1- 2 years (4,645) - - - - (12,929) -	Due in 2- 5 years (413,261) - - - - (19,548) (560)	Due in over 5 years - - - - - (74,825) -

～ 29 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

Carrying amount 72	Contracte d cash flows 8,510 (8,561)	Due within 6 months 8,510 (8,561)	Due in 6- 12months - -	Due in 1- 2 years - -	Due in 2- 5 years - -	Due in over 5 years - -
$ 1,420,323	(1,479,428)	(944,061)	(9,599)	(17,574)	(433,369)	(74,825)
$ 700,000 400,068 1,234 274,518 69,158 558 195	(700,756) (400,068) (1,234) (274,518) (102,319) (558) 28,480 (28,703)	(700,756) (400,068) (1,234) (274,518) (5,700) - 28,480 (28,703)	- - - - (3,737) - - -	- - - - (5,068) - - -	- - - - (11,996) (558) - -	- - - - (75,818) - - -
$ 1,445,731	(1,479,676)	(1,382,499)	(3,737)	(5,068)	(12,554)	(75,818)
$ 239,722 233,000 394,093 1,772 203,243 74,378 591	(241,617) (233,135) (394,093) (1,772) (203,243) (109,301) (591)	(241,617) (233,135) (394,093) (1,772) (203,243) (7,298) -	- - - - - (5,751) -	- - - - - (5,536) (34)	- - - - - (11,918) (557)	- - - - - (78,798) -
$ 1,146,799	(1,183,752)	(1,081,158)	(5,751)	(5,570)	(12,475)	(78,798)

The Group does not expect that the cash flows could occur significantly earlier or at significantly different amount.

(iii) Market Risk

1) Currency risk

Significant financial assets and liabilities exposed to foreign currency risk were as follows ：

December 31, 2020 Foreign currency Exchange rate TWD amount 62,555 28.48 1,781,570 52,538 0.2763 14,516 4,021 4.377 17,601 75 35.02 2,627 2,566 28.48 73,070	December 31, 2020 Foreign currency Exchange rate TWD amount 62,555 28.48 1,781,570 52,538 0.2763 14,516 4,021 4.377 17,601 75 35.02 2,627 2,566 28.48 73,070	March 31, 2020 Foreign currency Exchange rate TWD amount 53,360 30.225 1,612,810 15,608 0.2788 4,351 2,017 4.255 8,581 32 33.24 1,053 4,909 30.225 148,302	March 31, 2020 Foreign currency Exchange rate TWD amount 53,360 30.225 1,612,810 15,608 0.2788 4,351 2,017 4.255 8,581 32 33.24 1,053 4,909 30.225 148,302
Foreign currency	Exchange rate	Foreign currency 53,360 15,608 2,017 32 4,909	Exchange rate
62,555 52,538 4,021 75 2,566	28.48 0.2763 4.377 35.02 28.48		30.225 0.2788 4.255 33.24 30.225

～ 30 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

March 31, 2021 Foreign currency Exchange rate TWD amount 14,170 28.535 404,341 12,770 0.2577 3,291 - - - 300 28.535 8,561	March 31, 2021 Foreign currency Exchange rate TWD amount 14,170 28.535 404,341 12,770 0.2577 3,291 - - - 300 28.535 8,561	December 31, 2020 Foreign currency Exchange rate TWD amount 14,997 28.48 427,119 16,437 0.2763 4,541 72 35.02 2,534 1,000 28.48 28,480	December 31, 2020 Foreign currency Exchange rate TWD amount 14,997 28.48 427,119 16,437 0.2763 4,541 72 35.02 2,534 1,000 28.48 28,480	March 31, 2020 Foreign currency Exchange rate TWD amount 11,250 30.225 340,036 25,026 0.2788 6,977 - - - - - -	March 31, 2020 Foreign currency Exchange rate TWD amount 11,250 30.225 340,036 25,026 0.2788 6,977 - - - - - -
Foreign currency 14,170 12,770 - 300	Exchange rate 28.535 0.2577 - 28.535	Foreign currency	Exchange rate	Foreign currency 11,250 25,026 - -	Exchange rate
		14,997 16,437 72 1,000	28.48 0.2763 35.02 28.48		30.225 0.2788 - -

The Group’s exposure to foreign currency risk arises from the translation of the cash and cash equivalents, accounts receivables, other receivables, financial assets measured at fair value through profit or loss, financial assets and liabilities measured at fair value through other comprehensive income, accounts payables, and other payables. As of March 31, 2021 and 2020, if the exchange rate of the TWD versus the USD, CNY, JPY, and EUR have increased or decreased by 1%, given no changes in other factors, profit after tax would have increased or decreased by $7,383 and $9,087, and other comprehensive income after tax would have increased or decreased by $114. The analysis is performed on the same basis of prior year.

The Group has variety kinds of functional currencies, hence we use summarized method to disclose exchange gain (loss) of monetary items. For the three months ended March 31, 2021 and 2020, foreign exchange gain (including realized and unrealized) amounted to loss $8,089 and gain$18,257, respectively.

2) Interest rate analysis

Please refer to liquidity risk management for the detail of the Group’s financial liabilities’ interest exposure.

The sensitivity analysis of interest was made based on the interest rate of derivative and nonderivative instruments at the reporting date. The analysis of liabilities bearing floating interest rates was prepared based on the assumption that the outstanding amount at the reporting date had existed for the whole year. When internal report to the Group’s top management regarding the interest rate change, they use 0.25% increase or decrease of interest rate assumption as the interest rate change which also represents this is the reasonable interest rate range assessed by the top management.

If interest rates on loans had increased or decreased by 0.25% with all other variables held constantly. The impact on the Group will be as follows ：

For the three months ended March 31

2021 Increase 0.25% Decrease 0.25% After-tax profit After-tax profit $ 254 254	2020 Increase 0.25% Decrease 0.25% After-tax profit After-tax profit 237 237

The above-mentioned variables attribute to the Group’s change of interest rate on loan.

3) Other price risk

If the prices of financial instrument change at reporting date, with all other variables held constant,

the influences were as follows ：

～ 31 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

For the three months ended March 31

Equity price at reporting date Increase 3% Decrease 3%	2021 Other comprehensive income after tax Net profit (loss) $ 13,858 2,261 $ (13,858) (2,261)	2021 Other comprehensive income after tax Net profit (loss) $ 13,858 2,261 $ (13,858) (2,261)	2020 Other comprehensive income after tax Net profit (loss) 9,919 2,675 (9,919) (2,675)
	$ (13,858)	(2,261)	(9,919)

(iv) Fair value

1) Categories and fair values of financial instruments

The fair value of financial assets and liabilities at fair value through profit or loss, and financial assets at fair value through other comprehensive income, are measured on a recurring basis. The following table shows the carrying amount and fair value of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information on financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value and on investments in equity instruments which do not have any quoted price in an active market and lease liability.

	March 31, 2021	March 31, 2021	March 31, 2021
Carrying Amount $ 87,518		Fairvalue
	Level 1 Level 2 Level 3 87,518 - - 360,444 - - - - 104,278 - - - - - - - - - - - - - - - - 72 - - - - - - - - - - - - - - - - - - - December 31, 2020

360,444 104,278
464,722
818,323 695,426 7,986 2,057 10,073
1,533,865
$ 2,086,105
$ 72
506,353 1,401 409,920 413,890 88,127 560
1,420,251
$ 1,420,323

Carrying Amount $ 58,817		Fairvalue
	Level 1 58,817 160,625	Level 2 - -	Level 3 - -

160,625

～ 32 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

	December 31, 2020	December 31, 2020	December 31, 2020
Carrying Amount 97,826		Fairvalue
	Level 1 Level 2 Level 3 - - 97,826 - - - - - - - - - - - - - - - - 195 - - - - - - - - - - - - - - - - - - - March 31, 2020

258,451
1,242,331 589,550 6,090 2,051 10,164
1,850,186
$ 2,167,454
$ 195
700,000 1,234 400,068 274,518 69,158 558
1,445,536
$ 1,445,731

Carrying Amount	Level 1 - 103,962 187,764 - - - - - - - - - - - -	Fair value
		Level 2 368 - - - - - - - - - - - - - -	Level 3 - - - 145,638 - - - - - - - - - - -
$ 368 103,962
104,330
187,764 145,638
333,402
966,115 540,521 10,804 2,107 7,064
1,526,611
$ 1,964,343
$ 472,722 1,772 394,093 203,243 74,378 591
$ 1,146,799

～ 33 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

The Group measures its assets and liabilities use input observable market data. The fair value hierarchy categorizes the inputs used in valuation techniques are as follows ：

Level 1: quoted prices (unadjusted) in the active markets for identified assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
2) Valuation techniques and assumptions unused in fair value determination
(A) Financial assets measured at amortized cost

If the quoted prices in active markets are available, the market price is established as the fair value. However, if quoted prices in active markets are not available, the fair value will be estimated by valuation technique or the prices quoted by competitors.

(B) Financial assets and financial liabilities measured at amortized cost

If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

3) Valuation techniques and assumptions used in fair value determination

Non-derivative instruments

If a financial instrument has a quoted price in an active market, the quoted price is used as fair value. Quoted prices of major stock exchanges and quoted prices of government bonds are the basis for measuring the fair value of stocks listed on an exchange, stocks listed on the OTC, and debt instruments with quoted prices in an active market.

The fair values of the Group’s listed securities and open-end funds with standard terms and conditions and traded in active markets are determined by the quoted market prices.

Measurements of fair value of financial instruments without active market are based on valuation technique or quoted price from competitor. Fair value measured by valuation technique can be extrapolated from similar financial instruments, discounted cash flow method or other valuation technique. Using discounted cash flow method to calculate fair value, the main assumption is to reflect monetary time value and return of invest risk to discount and measure based on investee’s estimated future cash flow.

Derivative instruments

The fair value of Swap contracts is based on quoted prices from the counterparty.

4) Transfer between level 1 and level 2

There was no transfer between the fair value hierarchy levels for the year ended March 31, 2021 and 2020.

～ 34 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

5) Movement of financial assets through other comprehensive income categorized within Level 3.

Balance at January 1, 2021 Recognized in other comprehensive income Balance at March 31, 2021 Balance at January 1, 2020 Recognized in other comprehensive income Balance at March 31, 2020	Financial assets at fair value through other comprehensive income Unquoted equity instruments $ 97,826 6,452 $ 104,278 $ 139,872 5,766 $ 145,638

6) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s financial instruments that use Level 3 inputs to measure fair value include financial assets measured at fair value through other comprehensive income– equity investments.

The Group’s equity investments without active market in Level 3 have more than one significant unobservable input. The significant unobservable inputs of equity investments without active market are individually independent, and there is no correlation between them.

Quantified information of significant unobservable inputs was as follows ：

Item Financial assets at fair value through other comprehensive income-equity investments without an active market	Valuation technique Discounted Cash Flow Method	Significant unobservable inputs `．` Continuing growth rate (as of March 31,2021, December 31,2020 and March 31, 2020 ranged from 0.48%`、`0.48% and 2.10% respectively) `．` Weighted average cost of capital (as of March 31,2021, December 31,2020 and March 31, 2020 ranged from 10.16%`、`10.52% and 8.87% respectively) `．` Market illiquidity discount rate (as of March 31,2021, December 31,2020 and March 31, 2020 ranged from 59.80%`、`60.73% and 40.22% respectively) `．` Non-controlling interests discount rate (as of March 31,2021, December 31,2020 and March 31, 2020 were 29.87%)	Inter-relationship between significant unobservable inputs and fair value measurement
			`．` If the continuing growth rate was higher, the estimated fair value would increase. `．` If WACC were higher, the estimated fair value would decrease. `．` If the market illiquidity discount rate was higher, the estimated fair value would decrease. `．` If the non-controlling interests discount rate was higher, the estimated fair value would decrease.

～ 35 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

Item Financial assets at fair value through other comprehensive income- equity investments without an active market	Valuation technique Net Asset Value Method	Significant unobservable inputs `．` Net Asset Value	Inter-relationship between significant unobservable inputs and fair value measurement
			N/A

7) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumption

The Group’s measurement on the fair value of financial instruments is deemed reasonable despite different valuation models or assumptions may lead to different results. For fair value measurements in Level 3, changing one or more of the assumptions would have the following effects on other comprehensive income ：

	Inputs March 31, 2021 Continuing growth rate 0.48% Weighted average cost of capital 10.16% Market illiquidity discount rate 59.80% Non-controlling interests discount rate 29.87% December 31, 2020 Continuing growth rate 0.48% Weighted average cost of capital 10.52% Market illiquidity discount rate 60.73% Non-controlling interests discount rate 29.87% March 31, 2020 Continuing growth rate 2.10% Market illiquidity discount rate 8.87% Market illiquidity discount rate 40.22% Non-controlling interests discount rate 29.87%	Changes in fairvalue reflected inOCI Fluctuation in inputs Favorable Unfavorable 0.1% $ 630 560 0.1% 840 700 1% 2,100 2,100 1% 1,190 1,190 0.1% $ 700 700 0.1% 350 350 1% 1,960 1,960 1% 1,120 1,120 0.1% $ 2,170 2,100 0.1% 2,660 2,660 1% 2,170 2,170 1% 1,890 1,890	Changes in fairvalue reflected inOCI	Changes in fairvalue reflected inOCI
				Unfavorable
				560 700 2,100 1,190 700 350 1,960 1,120 2,100 2,660 2,170 1,890

The favorable and unfavorable effects represented the changes in fair value, and fair value was based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflected the effects of changes in a single input, and it did not include the interrelationships and variances with another input.

(aa) Financial risk management

There was no significant change of the Group’s financial risk management objectives and

policy as disclosed in 2020 consolidated report. Please refer to Note 6(aa) of 2020 consolidated financial statements.

～ 36 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

(ab) Capital management

The Group’s capital management objectives, policies and procedures were compliance with 2020 consolidated financial statements. Further, there was no significant change of the summary quantitative information as disclosed in 2020 consolidated financial statements. Please refer to Note 6(ab) of 2020 consolidated financial statements.

(ac) Financing activities of non-cash transaction

The Group’s investing and financing activities which did not affect the current cash flow were as follows ：

(i) Please refer to Note 6(j) for right of use assets.

(ii) Reconciliation of liabilities arising from financing activities were as follows `：`

January 1, 2021 $ 700,000 (1,600)(Note1) 69,158 558 $ 768,116 January 1, 2020	Cash flows (592,084) 400,000 (3,395) -			Non-cash changes	Non-cash changes	Non-cash changes	Non-cash changes	Non-cash changes	Changes in lease payments - - - -	March 31, 2021 107,963 398,390 88,127 560
		Foreign exchange movement 47 - (331) 2		Amortized - (10) - -			Other - - 22,695(Note2) -

	(195,479)		(282)		(10)		22,695		-	595,040
	Cash flows
			Foreign exchange movement - - (69) 4			Amortized - 167 - -
$ 798,624	(250,218)		(65)			167		(817)

(Note 1) Previous prepaid syndicated related expense

(Note 2) Obtain (Reduce) the right-of-use assets

(7) Transactions with Related Parties

Compensation of key management personnel

The information on key management personnel compensation was as follows ：

Short-term employee benefits Post-employment benefits Termination benefits Other long-term benefits Share-based payments	For the three months ended March 31 2021 2020 $ 8,819 5,962 105 174 - - - - - - $ 8,924 6,136
	2021
	$ 8,819 105 - - -
	$ 8,924

～ 37 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

(8) Pledged Assets

The details and carrying values of pledged assets were as follows ：

Pledged Assets Restricted time deposits-current Restricted time deposits-non-current Property, plant and equipment`－` buildings	Purpose Guarantee for customs Performance guarantee Guarantee for long-term loans	March 31,2021 $ 1,530 527 178,008 $ 180,065	December 31,2020	March 31,2020 1,549 558 221,353
			1,525 526 - 2,051
				223,460

(9) Commitments and Contingencies

(a) As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group’s unused letters of

credit for purchases of raw materials, machinery and equipment amounted to $0, $4,422 and $14,093, respectively.

(b) As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group has signed contracts for the purchase of equipments. The unrecognized contingencies of contracts for the purchase of equipments amounted to $2,536, $1,995 and $595, respectively.

(10) Losses Due to Major Disasters: None

(11) Significant Subsequent Events: None

(12) Other

(a) The details of the Group’s employee benefits, depreciation, and amortization were as follows ：

By function By item	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
	2021			2020
	Recorded as operating cost	Recorded as operating expenses	Total	Recorded as operating cost	Recorded as operating expenses	Total
Employee benefits (Note) Depreciation Amortization	125,218 12,776 74	61,954 3,448 250	187,172 16,224 324	108,614 16,974 86	60,321 3,370 295	168,935 20,344 381

Note: The Government subsidy related to COVID-19 for the three months ended March 31,

2021, amounted to $819 was recognized in decrease of Employee benefits.

(b) Seasonal operation ：

The operation of the Group hadn’t been affected by either seasonal or periodical factors.

～ 38 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

(13) Supplementary Disclosure Requirements

(a) Information on significant transactions `：`

In accordance with the ROC “Guidelines Governing the Preparation of Financial Reports by Securities Issuers”, the required disclosures for the three months ended March 31, 2021 were as follows ：

(i) Loans extended to other parties `：` None

(ii) Guarantees provided to other parties: None

(iii) Securities owned as of March 31, 2021 (subsidiaries, associates and joint ventures not included) `：`

Name of security holder	Name of security and type	Relationship between issuer of security and the security holder	Financial statement account	March 31,2021	March 31,2021	March 31,2021	March 31,2021	Remarks
				Units (shares)	Carrying Value	Percentage of ownership	Fair value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company Ying Dar Investment Development Corp Ying Dar Investment Development Corp Ying Dar Investment Development Corp Bae Haw Investment Development Corp Bae Haw Investment Development Corp Bae Haw Investment Development Corp Ying Cheng Investment Corp.	Ascendax Venture Capital Corp. stock Chenfeng Optronics Corp. stock Fubon Financial Holding Co., Ltd. Preferred Shares B Innolux Corp. stock Fubon Financial Holding Co., Ltd. stock E.SUN Financial Holding Co., Ltd. Far Eastern New Century Corp. Quanta Computer Inc. Synnex Technology International Co. , Ltd. stock Getac Technology Corporation Nan Ya Plastics Corporation stock Pegatron Co., Ltd. stock	- - - - - - - - - - - - - - - - - - - - - The Company - - The Company -	Financial assets at FVOCI`－` noncurrent Financial assets at FVOCI`－` noncurrent Financial assets at FVOCI`－` noncurrent Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVTPL`－`current Financial assets at FVTPL`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－` noncurrent Financial assets at FVOCI`－` noncurrent Financial assets at FVOCI`－`current Financial assets at FVOCI`－` noncurrent Financial assets at FVOCI`－` noncurrent	1,470,000 1,000,000 13,845 1,147,089 300,000 755,785 1,000,000 470,000 550,000 589,000 210,000 216,000 1,880,000 300,000 450,338 480,000 2,000 10,053.08 1,810,878.90 550,000 101,500 5,346,672 1,000,000 395,000 3,447,716 6,000,000	20,698 11,940 861 24,203 17,040 19,726 30,200 46,060 29,975 34,515 16,758 16,006 41,548 30,450 6,102 10,848 13,877 60,735 26,783 12,430 918 106,934 - 8,927 68,954 71,640	5.25% 1.56% - 0.01% - 0.01% 0.02% 0.01% 0.03% 0.10% - 0.01% 0.01% 0.04% 0.32% 0.78% 0.01% - - 0.90% 0.02% 3.29% 1.47% 0.65% 2.12% 9.38%	20,698 11,940 861 24,203 17,040 19,726 30,200 46,060 29,975 34,515 16,758 16,006 41,548 30,450 6,102 10,848 13,877 60,735 26,783 12,430 918 106,934 - 8,927 68,954 71,640	- - - - - - - - - - - - - - - - - - - - - (Note) - (Note) -
	CTBC FINANCIAL HOLDING
	CO., LTD CHICONY ELECTRONICS CO., LTD. Coasia Microelectronics Corp. stock Shian Yih Electronic Co., Ltd. stock Becton, Dickinson and Company JPMorgan Multiple Income Fund (USD) Yuanta Taiwan High-yield Leading Company Fund A Shian Yih Electronic Co., Ltd. stock AGV Products Corporation stock The Company’s stock Everest Technology Inc. Shian Yih Electronic Co., Ltd. stock The Company’s stock Chenfeng Optronics Corp. stock

Note: It was eliminated in the consolidation

(iv) Accumulated trading amount of a single security in excess of $300 million or 20% of the Group’s issued share capital: None.

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(v) Acquisition of property, plant and equipment in excess of $300 million or 20% of issued share capital: None.
(vi) Disposal of property, plant and equipment in excess of $300 million or 20% of issued share capital: None.
(vii) Sales to and purchases from related parties in excess of $100 million or 20% of issued share capital

was as follows `：`

Purchasing (selling) company	Counter party	Relationship	Detail of transaction	Detail of transaction	Detail of transaction	Detail of transaction	Circumstances of and reasons for deviation from regular trading conditions	Circumstances of and reasons for deviation from regular trading conditions	Resulting receivables (payables)	Resulting receivables (payables)	Remarks
			Purchase (sale)	Amount	% of net purchase (sales)	Credit line	Unit price	Period for credit	Balance	% of notes and accounts receivable (payable)
The Company Emerging Display Technologies Corp., U.S.A.	Emerging Display Technologies Corp., U.S.A. The Company	Subsidiary of the Company Subsidiary of the Company	Sale Purchase	185,116 185,116	20.05% 100.00%	3 months 3 months	Sales prices offered to Emerging Display Technologies Corp., U.S.A. was not significantly different from those offered to other customers The company is the major supplier for Emerging Display Technologies Corp., U.S.A.	Considering the trading practices in North American market, the company set credit duration as three months for North American market, which is slightly longer than one to three months set in other markets. The company is the major supplier for Emerging Display Technologies Corp., U.S.A.	220,275 (220,275)	29.20% 100.00%	(Note) (Note)

Note: It was eliminated in the consolidation.

(viii)Receivables from related parties in excess of $100 million or 20% of issued share capital

were as follows ：

Name of company the has the receivables	Counterparty	Relationship	Balance of amount	Turnover ratio	Overdue	Overdue	Amount collected in the subsequent period	Allowance for doubtful accounts	Remarks
					Amount	Status
The Company	Emerging Display Technologies Corp., U.S.A.	Subsidiary of the Company	Account receivables of 220,275	3.50	-	-	37,007	-	(Note)

Note: It was eliminated in the consolidation.

(ix)Derivative financial instrument transactions ： Please refer to note 6(b).
(x) Significant inter-Group transactions ：

No.	Name	Counterparty	Relationship (Note)	Details of transaction	Details of transaction	Details of transaction	Details of transaction
				Subject	Amount	Term of trading	% of total consolidated revenue or total asset
0	The Company	Emerging Display Technologies Corp., U.S.A.	1	Sales revenue Accounts payable	185,116 220,275	Considering the trading practices in North American market, the Group set credit duration as three months for North American market, which is slightly longer than one to three months set in other markets.	19.59% 6.30%
0	The Company	Emerging Display Technologies Corp., U.S.A.	1	Selling expenses-Commission Other payable	21 43	No non-related-party transaction to compare to.	- -
0	The Company	EDT-Europe ApS	1	Selling expenses-Commission Other payable	16,311 4,047	No non-related-party transaction to compare to.	1.73% 0.12%
0	The Company	Emerging Display Technologies Korea	1	Selling expenses-Commission	1,009	No non-related-party transaction to compare to.	0.11%
0	The Company	EDT-Japan Corp.	1	Selling expenses-Commission	3,443	No non-related-party transaction to compare to.	0.36%
0	The Company	Dong Guan Emerging DisplayLimited	1	Processing cost Accounts payable	20,083 62,478	No non-related-party transaction to compare to.	2.13% 1.79%

Note ： Relationship notes as follows ： 1) Parent Group to subsidiary.

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

(b) Information on investees (excluding information on investees in Mainland China) `：`

Relevant information about investees for the three months ended March 31, 2021 was as follows ：

Name of investor	Name of investee	Location	Business cope	Original cost of investment	Original cost of investment	Held at the end of term	Held at the end of term	Held at the end of term	Net income (loss) of the investee	Investment income (less) recognized	Remarks
				March 31, 2021	December 31, 2020	Shares owned	Percentage owned	Carrying value
The Company	Emerging Display Technologies Corp., U.S.A.	USA	Trading	121,656	121,656	3,500,000	100.00%	84,728 (Note1)	340	347	Subsidiary (Note2)
The Company	Emerging Display International (Samoa) Corp.	Samoa	Investment holding	180,503	180,503	5,984,071	78.49%	71,768	(6,930)	(5,439)	Subsidiary (Note2)
The Company	EDT-Europe ApS	Denmark	Customer service and business support	2,077	2,077	125,000	100.00%	2,277	353	353	Subsidiary (Note2)
The Company	Emerging Display Technologies Korea	Korea	Business support	1,677	1,677	58,212,500	100.00%	1,497	88	88	Subsidiary (Note2)
The Company	EDT-Japan Corp.	Japan	Customer service and business support	17,401	17,401	5,000	100.00%	6,055	514	514	Subsidiary (Note2)
The Company	Ying Dar Investment Development Corp.	Taiwan	Investment	89,000	89,000	8,900,000	100.00%	26,903	(421)	(421)	Subsidiary (Note2)
The Company	Bae Haw Investment Development Corp.	Taiwan	Investment	89,000	89,000	8,900,000	100.00%	40,033	(803)	(803)	Subsidiary (Note2)
The Company	Ying Cheng Investment Corp.	Taiwan	Investment	84,000	84,000	8,400,000	52.50%	42,830	(12)	(6)	Subsidiary (Note2)
Ying Dar Investment Development Corp.	Emerging Display International (Samoa) Corp.	Samoa	Investment holding	13,234	13,234	450,000	5.90%	5,395	(6,930)	(409)	Subsidiary (Note2)
Bae Haw Investment Development Corp.	Emerging Display International (Samoa) Corp.	Samoa	Investment holding	25,488	25,488	870,000	11.41%	10,423	(6,930)	(791)	Subsidiary (Note2)

Note1: It was deducted unrealized profit from sales $8,458. Note2: It was eliminated in the consolidation.

(c) Information on investees in Mainland China `：`

(i) Information on investments in Mainland China `：`

Investee company	Main businesses and products	Received capital	Investment method	Accumulated amount invested in Mainland China as of Jan. 1, 2021	Invested capital remitted from or repatriated to Taiwan	Invested capital remitted from or repatriated to Taiwan	Accumulated amount invested in Mainland China as of March. 31, 2021	Net income of investee	The Group’s direct or indirect investment ratio	Investment gain (loss) recognized by the Group	Book value of the investment as of March. 31, 2021	Accumulated investment income repatriated to Taiwan as of March. 31, 2021
					Remittance	Repatriation
Dong Guan Emerging Display Limited	Manufacturing of LCDs and Touch panel	248,516 (USD 7,625,300)	Investing through a third country by establishing a holding Group in a third country.	219,225 (USD 6,746,936) (Note1)	-	-	219,225 (USD 6,746,936)	(6,953)	95.80% (Note2)	loss of $6,661 Based on the investee’s financial statements audited by the same auditor as the Group (Note3)	78,914 (Note4)	-

(ii) Limitation on investments in Mainland China ：

Accumulated investment amount remitted from Taiwan to Mainland China as of March 31, 2021	Investment amount approved by the Investment Commission, Ministry of Economic Affairs	Limit on investment in Mainland China set by the Investment Commission, Ministry of Economic Affairs
197,881(Note8) (USD6,934,668) (Note5)	398,113(Note8) (USD13,951,732) (Note6)	1,249,926(Note7)

Note1 ： The amount includes $13,234 which was invested by Ying Dar Investment Development Corp. and $25,488 which was invested by Bae Haw Investment Development Corp.

～ 41 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

Note 2 ： The ratio includes 5.90% which was held by Ying Dar Investment Development Corp. and 11.41% which was held by Bae Haw Investment Development Corp.
Note 3 ： The amount includes a loss of $410 which was recognized by Ying Dar Investment Development Corp. and a loss of $793 which was recognized by Bae Haw Investment Development Corp.
Note 4 ： The amount includes $4,860 which was invested by Ying Dar Investment Development Corp. and $9,399 which was invested by Bae Haw Investment Development Corp.
Note 5 ： The amount includes the remaining capital amounting to US$188 thousands dollars of Emerging Technologies Int’l Trading (Shanghai) Co., Ltd. didn’t remit back after it had completed liquidation in 2009 due to net loss.
Note 6 ： The approved amount includes US$637,732 obtained from Ying Dar Investment Development Corp. and US$870,000 obtained from Bae Haw Investment Development Corp. The amount obtained from Ying Dar Investment Development Corp. includes the remaining capital amounting to US$187,732 of Emerging Technologies Int’l Trading (Shanghai) Co., Ltd. didn’t remit back after it had completed liquidation in 2009 due to net loss.
Note 7 ： The amount includes $80,302 for Ying Dar Investment Development Corp. and $65,392 for Bae Haw Investment Development Corp.
Note 8 ： Transactions denominated in foreign currencies were recorded using the rate of exchange at March 31, 2021.
(iii) Significant transactions ：

The significant inter-Group transactions with the subsidiary in Mainland China, which were eliminated in the preparation of the consolidated financial statements, was disclosed in “information on significant transactions” for the three months ended March 31, 2021.

(d) Major shareholder ：

ajor shareholder`：`
Shareholding Shareholder’s Name	Shares	Percentage
Tseng,Jui-Ming	11,043,723	6.8%

Note1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

Note2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual trustee who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, refer to Market Observation Post System.

～ 42 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

(14) Segment Information

Reportable segment information was as follows ：

	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	Total 944,762 -
		2021
Domestic $ 738,233 184,939	North America 205,995 21	Mainland China - 20,083	Other operating Department 534 20,763	Adjustment s and Eliminations - (225,806)
$ 923,172	206,016	20,083	21,297	(225,806)	944,762
$ 59,391	431	(7,018)	1,067	6,857	60,728
					Total 814,964 -
		2020
Domestic $ 611,185 208,004	North America 203,390 46	Mainland China - 33,782	Other operating Department 389 19,263	Adjustment s and Eliminations - (261,095)
$ 819,189	203,436	33,782	19,652	(261,095)	814,964
$ 54,878	(5,329)	(319)	168	1,424	50,822
Domestic $ 3,274,815	North America 341,208	Mainland China 147,009	Other operating Department 29,001	Adjustment s and Eliminations (296,109)	Total 3,495,924
$ 3,441,342	310,291	144,865	31,559	(318,868)	3,609,189
$ 3,148,932	358,962	144,903	19,771	(358,008)	3,314,560
$ 1,568,769	248,132	64,634	19,173	(287,762)	1,612,946
$ 1,639,092	217,736	53,503	21,956	(303,663)	1,628,624
$ 1,347,312	273,448	46,243	12,194	(346,101)	1,333,096

The following is the explanation of material reconciliation item ：

(a) For the three months ended March 31, 2021 and 2020, the operating segments revenue eliminated from the consolidated entities were $225,806 and $261,095, respectively.
(b) For the three months ended March 31, 2021 and 2020, the operating segments profit and loss eliminated from the consolidated entities were $6,857 and $1,424, respectively.
(c) As of March 31, 2021, December 31, 2020 and March 31, 2020, the operating segments assets eliminated from the consolidated entities were $296,109, $318,868and $358,008, respectively.
(d) As of March 31, 2021, December 31, 2020 and March 31, 2020 the operating segments liabilities eliminated from the consolidated entities were $287,762, $303,663 and $346,101, respectively.

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AI assistant

EDT — Interim / Quarterly Report 2021

52271_rns_2021-11-05_8bc7ba40-6be0-4124-82c2-4f426376055e.pdf

Table of contents

Independent Auditors’ Review Report

The Board of Director’s

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2021, December 31, 2021, and March 31, 2020

(English Translation of Financial Statements and Report Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income For the three months ended March 31, 2021 and 2020

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity

(Expressed in thousands of New Taiwan dollars)

(English Translation of Financial Statements and Report Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended March 31, 2021 and 2020

(Expressed in thousands of New Taiwan Dollars) (Reviewed, not audited)

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

For the three months ended March 31, 2021 and 2020

(1) Organization and Business Scope

(2) Financial Statements Authorization Date and Authorization Process

Standards or

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(a) Statement of compliance

(b) Basis of consolidation

(i) Subsidiaries included in the consolidated financial statements are as follows:

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(c) Income tax

(d) Employee benefit

(5) Critical Accounting Judgement and Key Sources of Estimation and Uncertainty

(6) Explanation of significant accounting items

(a) Cash and cash equivalents

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

(d) Accounts receivable

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(f) Inventories

(g) Other current assets

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

(h) Major non-controlling interests’ share of subsidiaries

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(i) Property, plant and equipment

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(j) Right-of-use assets

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(k) Investment property

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

(l) Intangible assets

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(m) Short-term loans

Short-term loans were not pledged as collateral.

(n) Other payables

(o) Long-term loans

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

(p) Lease liabilities

(i) Lease of land, building and construction

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated financial statements

(q) Operating lease

(r) Employee benefits

(i) Defined benefit plan

(ii) Defined Contribution Plan

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

EDT Interim / Quarterly Report 2021

(ii) Reconciliation of liabilities arising from financing activities were as follows `：`

(a) Information on significant transactions `：`

(i) Loans extended to other parties `：` None

(iii) Securities owned as of March 31, 2021 (subsidiaries, associates and joint ventures not included) `：`

was as follows `：`

(b) Information on investees (excluding information on investees in Mainland China) `：`

(c) Information on investees in Mainland China `：`

(i) Information on investments in Mainland China `：`