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 six months ended June 30, 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 June 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and the six months ended June 30, 2021 and 2020, and changes in equity and cash flows for the six months ended June 30, 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 $244,409 thousand and $207,986 thousand, constituting 6.77% and 5.7% of consolidated total assets as of June 30, 2021 and 2020, respectively, total liabilities amounting to $103,173 thousand and $74,892 thousand, constituting 6.08% and 4.23% of consolidated total liabilities as of June 30, 2021 and 2020, respectively, and total comprehensive income amounting to loss $15,232 thousand, loss $37,368 thousand, loss $18,500 thousand and loss $34,609 thousand, constituting 49.20%, 44.40%, 15.13% and 30.45% of consolidated total comprehensive income for the three months and the six months ended June 30, 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 Company as of June 30, 2021 and 2020, and its consolidated financial performance for the three months and six months ended June 30, 2021 and 2020, as well as its consolidated cash flows for the six months ended June 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect 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) August 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

June 30, 2021, December 31, 2020, and June 30, 2020

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

June 30 2021 Amount ％ $ 582,405 16 94,340 3 523,115 15 809,128 22 8,409 - 11 - 911,940 25 82,029 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	June 30, 2021 Amount ％ $ 107,774 3 153 - 218 - 523,666 15 427,890 12 18,232 1 11,620 - - - 52,323 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	June 30, 2020 Amount ％ 320,000 9 463 - 971 - 533,885 15 439,711 12 41,773 1 8,370 - 239,889 7 35,795 1
3,011,377 83	3,010,069 83	1,141,876 32	1,478,103 41	1,620,857 45
93,144 3 324,425 9 82,297 2 53,634 2 3,674 - 31,887 1 - - 11,562 -	98,691 3 331,314 9 67,228 2 55,158 2 4,111 - 31,928 1 - - 10,690 -	398,116 11 213 - 73,036 2 83,651 2 547 - 624 -	- - 354 - 61,833 2 87,048 2 558 - 728 -	- - 282 - 62,640 2 87,174 2 580 - 832 -
		556,187 15	150,521 4	151,508 4
		1,698,063 47	1,628,624 45	1,772,365 49
		1,624,076 45 15,423 1 513,288 14 (103,097) (3) (173,021) (5)	1,624,076 45 15,423 - 591,094 17 (117,815) (3) (173,021) (5)	1,624,076 44 4,397 - 500,502 14 (123,706) (3) (173,021) (5)
600,623 17 $ 3,612,000 100	599,120 17 3,609,189 100
		1,876,669 52 37,268 1	1,939,757 54 40,808 1	1,832,248 50 44,491 1
		1,913,937 53	1,980,565 55	1,876,739 51
		$ 3,612,000 100	3,609,189 100	3,649,104 100

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 and the six months ended June 30, 2021 and 2020

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

For the three months ended June 30 2021 2020 Amount % Amount % $ 1,041,617 100 1,058,443 100 867,096 83 798,051 75	For the three months ended June 30 2021 2020 Amount % Amount % $ 1,041,617 100 1,058,443 100 867,096 83 798,051 75	For the three months ended June 30 2021 2020 Amount % Amount % $ 1,041,617 100 1,058,443 100 867,096 83 798,051 75	For the three months ended June 30 2021 2020 Amount % Amount % $ 1,041,617 100 1,058,443 100 867,096 83 798,051 75	For the six months ended June 30 2021 2020 Amount % Amount % 1,986,379 100 1,873,407 100 1,641,220 83 1,472,278 79	For the six months ended June 30 2021 2020 Amount % Amount % 1,986,379 100 1,873,407 100 1,641,220 83 1,472,278 79	For the six months ended June 30 2021 2020 Amount % Amount % 1,986,379 100 1,873,407 100 1,641,220 83 1,472,278 79	For the six months ended June 30 2021 2020 Amount % Amount % 1,986,379 100 1,873,407 100 1,641,220 83 1,472,278 79
	% 100 83	2020		2021	% 100 83	2020
Amount $ 1,041,617 867,096		Amount 1,058,443 798,051		Amount 1,986,379 1,641,220		Amount 1,873,407 1,472,278
174,521	17	260,392	25	345,159	17	401,129	21
50,685 30,450 28,044 407	5 3 3 -	59,474 33,941 32,198 128	6 3 3 -	101,482 60,792 53,418 612	5 3 3 -	107,853 65,569 56,885 669	6 3 3 -
109,586	11	125,741	12	216,304	11	230,976	12
959	-	1,019	-	1,927	-	2,077	-
65,894	6	135,670	13	130,782	6	172,230	9
341 7,795 (13,639) (2,336)	- 1 (1) -	2,583 1,333 (15,552) (2,572)	- - (1) -	1,082 10,041 (18,697) (4,425)	- 1 (1) -	6,808 6,071 (7,050) (5,775)	- - - -
(7,839)	-	(14,208)	(1)	(11,999)	-	54	-
58,055 (1,580)	6 -	121,462 20,856	12 2	118,783 8,304	6 -	172,284 27,825	9 1
59,635	6	100,606	10	110,479	6	144,459	8
(23,075) (66)	(2) -	(12,897) 57	(2) -	19,891 (141)	1 -	(26,436) 282	(2) -
(23,009)	(2)	(12,954)	(2)	20,032	1	(26,718)	(2)
(5,667) -	(1) -	(3,488) -	- -	(8,250) -	(1) -	(4,094) -	- -
(5,667)	(1)	(3,488)	-	(8,250)	(1)	(4,094)	-
(28,676)	(3)	(16,442)	(2)	11,782	-	(30,812)	(2)
$ 30,959	3	84,164	8	122,261	6	113,647	6
$ 59,804 (169) $ 59,635	6 -	100,635 (29)	10 -	110,945 (466)	6 -	144,513 (54)	8 -
	6	100,606	10	110,479	6	144,459	8

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 Comprehensive Income For the three months and the six months ended June 30, 2021 and 2020 (Expressed in thousands of New Taiwan dollars, Except Earnings Per Share)

(Reviewed, not audited)

	(Reviewed, not audited)	(Reviewed, not audited)	(Reviewed, not audited)	(Reviewed, not audited)
Comprehensive income attributable to`：` Shareholders of the parent Non-controlling interests Total comprehensive income Earnings per share (Note 6(u))(expressed in New Taiwan dollars)`：` Basic earnings per share Diluted earnings per share	For the three months ended June 30 2021 2020 Amount % Amount % $ 36,282 3 102,442 10 (5,323) - (18,278) (2)				For the six months ended June 30 2021 2020 Amount % Amount % 125,801 6 129,031 7 (3,540) - (15,384) (1)
			2020 Amount 102,442 (18,278)		2021		2020 Amount 129,031 (15,384)
	Amount $ 36,282 (5,323)	%		%	Amount 125,801 (3,540)	%
		3 -		10 (2)		6 -
	$ 30,959	3	84,164	8	122,261	6	113,647	6
	$	0.40		0.68		0.75		0.97
	$	0.40		0.68		0.74		0.97

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 six months ended June 30, 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 330,944 144,513 - 144,513 (25,733) (188,889) 48,695 5,612 315,142 405,734 110,945 - 110,945 (188,889) 138 327,928	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) - - (3,983) (11,499) (3,983) (11,499) - - - - - - - (5,612) (18,094) (105,612) (18,296) (99,519) - - (8,054) 22,910 (8,054) 22,910 - - - (138) (26,350) (76,747)		Treasury stock (173,021) - - - - - - - (173,021) (173,021) - - - - - (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) - (11,499) (11,499) - - - (5,612) (105,612) (99,519) - 22,910 22,910 - (138) (76,747)
		Legal capital reserve 57,015 - - - 25,733 - - - 82,748 82,748 - - - - - 82,748	Special capital reserve 151,307 - - - - - (48,695) - 102,612 102,612 - - - - - 102,612
	4,397
	- -							144,513 (15,482)	144,459 (30,812)
	-							129,031	113,647
	- - - -							- (188,889) - -	- (188,889) - -
	4,397							1,832,248	1,876,739
	15,423							1,939,757	1,980,565
	- -							110,945 14,856	110,479 11,782
	-							125,801	122,261
	- -							(188,889) -	(188,889) -
	15,423							1,876,669	1,913,937

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 six months ended June 30, 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: Increase in accounts receivable Decrease in other accounts receivable Increase in inventories Decrease (increase) in other current assets Total net changes in operating assets Changes in operating liabilities`：` Increase (decrease) in notes payable Increase in accounts payable Decrease in other payable Increase 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 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 six months ended June 30 2021 2020 $ 118,783 172,284	For the six months ended June 30 2021 2020 $ 118,783 172,284
	2021 $ 118,783
	32,537 619 612 (5,430) 4,425 (1,064) (9,870) (436) 1,470	39,286 764 669 3,087 5,775 (6,748) (2,730) - 14,458
	22,863	54,561
	(225,710) 3,397 (42,963) (1,388)	(133,971) 332 (36,773) 30,998
	(266,664)	(139,414)
	(1,016) 126,979 (34,856) 9,208 (3,397) (104)	664 108,371 (27,982) 11,353 (1,372) (104)
	96,814	90,930
	(169,850)	(48,484)
	(146,987)	6,077
	(28,204) 1,379 3,857 (4,719) (41,562)	178,361 7,910 - (5,521) (42,949)
	(69,249)	137,801
	(339,284) 1,338 (30,135) (20,887) 2,941 (183) - (1,038) -	(101,461) 50,203 (60,350) (11,880) - (1,525) (900) (45) (2,976)
	(387,248)	(128,934)
	(592,084) 400,000 - (6,841)	(80,000) - (80,000) (5,253)
	(198,925)	(165,253)
	(4,504)	(15,613)
	(659,926) 1,242,331	(171,999) 1,368,252
	$ 582,405	1,196,253

See accompanying notes to financial statements.

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the six months ended June 30, 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 August 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
． Amendments to IFRS 16 “COVID-19-Related Rent Concessions after June 30, 2021”
(b) The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2022, would not have a significant impact on its consolidated financial statements ：

．Amendments to IAS 16 “Property, Plant and Equipment－Proceeds before Intended Use”
．Amendments to IAS 37“Onerous Contracts－Cost of Fulfilling a Contract”
． Annual Improvements to IFRS Standards 2018-2020
． Amendments to IFRS 3 “Reference to the Conceptual Framework”
(c) The impact of IFRS issued by IASB but not yet endorsed by the FSC
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 1 “Disclosure of Accounting Policies”
． Amendments to IAS 8 “Definition of Accounting Estimates”
． Amendments to IAS 12 “Deferred tax related to assets and liabilities arising from a single transaction”

(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
			June 30,2021 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%	June 30,2020
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.

Note2: 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	June 30,2021 $ 389 573,149 14 8,853 -	December 31,2020	June 30,2020 378 345,146 95 522,513 328,121 1,196,253
		328 565,624 82 273,962 402,335
	$ 582,405	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 Forward exchange contract Total Current financial liabilities measured at fair value through profit or loss`：` Forward exchange contract Swap Contract	June 30,2021 $ 94,338 2 $ 94,340 June 30,2021 $ 153 - $ 153	December 31,2020 58,817 - 58,817 December 31,2020 - 195 195	June 30,2020 110,827 - 110,827 June 30,2020 - 463 463

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	Contract amount (Thousand Dollar)	June 30,2021 Currency Maturity period USD to CNY 2021.07.13~2021.08.17 December 31,2020 Currency Maturity period NTD to USD 2021.01.07 June 31,2020 Currency Maturity period NTD to USD 2020.08.04~2020.08.10
	USD 1,500 Contract amount (Thousand Dollar)
	USD 1,000 Contract amount (Thousand Dollar)
		Currency NTD to USD
	USD 2,000

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. 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. Lite-On Technology Corp. MEGA FHC Taiwan Cement Corp., 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	June 30,2021 $ 23,802 40,645 45,301 17,472 14,861 6,372 19,877 32,000 61,162 32,276 - 32,395 42,676 24,120 35,712 40,603 40,290 509,564 13,551 $ 523,115 $ 21,080 71,190 92,270 874 $ 93,144	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	June 30,2020 9,062 13,170 27,406 13,566 13,824 5,386 19,460 27,900 - 33,065 773 - - - - - - 163,612 14,179 177,791 17,008 86,660 103,668 897 104,565

～ 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 and six months ended June 30, 2021 and 2020, the Group has recognized dividend income $7,710, $2,730, $9,870 and $2,730 from the abovementioned equity instruments designated at fair value through other comprehensive income, respectively.

For the six months ended June 30, 2021 and 2020, the Group with the objective of investment and financial management had sold financial assets at fair value of $1,338 and $42,985, and accumulated gain on disposal of investments were $138 and $5,612, which had been reclassified from other equity interest to retained earnings, respectively.

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 June 30,2021, December 31, 2020 and June 30, 2020, the carrying amount of the listed stocks which were entrusted to financial institutions for security lending amounted to $23,802, $16,174and $9,062, respectively.

(d) Accounts receivable

Accounts receivable-measured as amortized cost Allowance for impairment	June 30,2021 $ 815,349 (6,221) $ 809,128	December 31,2020 595,163 (5,613) 589,550	June 30,2020 684,283 (19,436) 664,847

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 ：

	June 30,2021
Carrying amount of Accounts Receivable	Weighted-average expected credit loss rate 0.12% 0.35% 40% 93% 100%	Loss allowance for lifetime expected credit losses 745 577 77 691 4,131
$ 647,090 163,189 194 745 4,131 $ 815,349
		6,221

～ 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	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	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		Loss allowance for lifetime expected credit losses 574 908 4,131 -
		Weighted-average expected credit loss rate 0.12% 0.96% 100% -
				5,613

June 30,2020 Carrying amount of Accounts Receivable Weighted-average expected credit loss rate Loss allowance for lifetime expected credit losses Current $ 574,061 0.10% 574 Overdue less than 90 days 91,417 0.10% 91 Overdue 91~180 days 2 0.09% - Overdue 181~270 days 32 0.10% - Overdue 271~365 days - - - Overdue over 365 days 18,771 100% 18,771 $ 684,283 19,436 The movement in the provision for impairment loss with respect to trade receivables was as follows: For the six months endedJune 30 2021 2020 Balance on January 1 $ 5,613 18,771 Recognition of impairment loss 612 669 Effect of changes in foreign currency exchange rates (4) (4) Ending balance $ 6,221 19,436	June 30,2020		Loss allowance for lifetime expected credit losses 574 91 - - - 18,771

			19,436

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	June 30,2021	December 31,2020	June 30,2020 8,494 2,730 1,471 - 12,695
	$ 1,814 6,076 519 -	5,154 33 903 -
	$ 8,409	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

$ $ follows`：` April to June, 2021	$	June 30,2021 391,794 326,908 186,190 7,048	December 31,2020
			346,225 299,441 215,535 9,300
	$	911,940	870,501
			January to June, 2021
$ 850,023 1,693 3,906 11,501 (27)		779,722 (7,669) 3,410 22,619 (31)	1,609,759 (9,637) 8,614 32,581 (97)
$ 867,096		798,051	1,641,220

For the three months ended June 30,2021, 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. For the three months ended June 30,2020 and the six months ended June 30, 2021 and 2020, 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.

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	June 30,2021 $ 2,764 50,917 4,176 18,305 2,045 11,046 4,338	December 31,2020	June 30,2020 2,063 10,667 6,372 3,469 2,096 7,009 4,360 36,036 28,480 7,556 36,036
		1,954 63,725 6,757 5,496 2,051 10,164 3,545
	$ 93,591	93,692
	$ 82,029 11,562	83,002 10,690
	$ 93,591	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 Taiwan Samoa	Proportion of non-controlling interest voting equity June 30,2021 December 31,2020 June 30,2020 47.5% 47.5% 47.5% 4.2% 4.2% 4.2%	Proportion of non-controlling interest voting equity June 30,2021 December 31,2020 June 30,2020 47.5% 47.5% 47.5% 4.2% 4.2% 4.2%
		June 30,2021 47.5% 4.2%	December 31,2020 47.5% 4.2%

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:

June 30,2021 December 31,2020 June 30,2020 Current asset $ 9,941 10,002 10,071 Non-current asset 61,020 67,080 74,280 Current liability - (50) (30) Net asset $ 70,961 77,032 84,321 Non-controlling equity closing book amount $ 33,707 36,591 40,053 April to June, 2021 April to June, 2020 January to June, 2021 January to June, 2020 Operating revenue $ - - - - Net Profit (loss) $ 1 2 (11) (10) Other comprehensive income (10,620) (38,280) (6,060) (32,040) Comprehensive income $ (10,619) (38,278) (6,071) (32,050) Profit (loss) attributable to non-controlling interest $ - 1 (6) (5) Comprehensive income attributable to non-controlling interest $ (5,044) (18,182) (2,884) (15,224) For the six months ended June 30 2021 2020 Cash flow from operating activities $ (61) (30) Cash flow from investing activities - - Cash flow from financing activities - - Net decrease in cash and cash equivalents $ (61) (30)	June 30,2021 $ 9,941 61,020 -	June 30,2021 $ 9,941 61,020 -	December 31,2020	June 30,2020 10,071 74,280 (30)
	$		10,002 67,080 (50)
	$	70,961	77,032	84,321
	$	33,707	36,591	40,053
			January to June, 2021	January to June, 2020
$ -		-	-	-
$ 1 (10,620)		2 (38,280)	(11) (6,060)	(10) (32,040)
$ (10,619)		(38,278)	(6,071)
				(32,050)
$ -		1	(6)	(5)
$ (5,044)		(18,182)	(2,884)	(15,224)

～ 16 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

June 30,2021 December 31,2020 Current asset $ 132,336 138,640 Non-current asset 36,127 15,264 Current liability (70,730) (53,503) Non-current liability (12,938) - Net asset $ 84,795 100,401 Non-controlling equity closing book amount Current asset $ 3,561 4,217 April to June, 2021 April to June, 2020 January to June, 2021 Operating revenue $ 50,751 52,606 70,834 Net loss $ (4,021) (724) (10,951) Other comprehensive income (2,620) (1,572) (4,655) Comprehensive income $ (6,641) (2,296) (15,606) Loss attributable to non-controlling interest $ (169) (30) (460) Comprehensive income attributable to non-controlling interest $ (279) (96) (656)	June 30,2021 December 31,2020 Current asset $ 132,336 138,640 Non-current asset 36,127 15,264 Current liability (70,730) (53,503) Non-current liability (12,938) - Net asset $ 84,795 100,401 Non-controlling equity closing book amount Current asset $ 3,561 4,217 April to June, 2021 April to June, 2020 January to June, 2021 Operating revenue $ 50,751 52,606 70,834 Net loss $ (4,021) (724) (10,951) Other comprehensive income (2,620) (1,572) (4,655) Comprehensive income $ (6,641) (2,296) (15,606) Loss attributable to non-controlling interest $ (169) (30) (460) Comprehensive income attributable to non-controlling interest $ (279) (96) (656)	December 31,2020	June 30,2020 146,129 18,516 (58,981) - 105,664 4,438 January to June, 2020
		138,640 15,264 (53,503) - 100,401

		4,217
		January to June, 2021
$ 50,751	52,606	70,834	86,388
$ (4,021) (2,620)	(724) (1,572)	(10,951) (4,655)	(1,180) (2,631)
$ (6,641)	(2,296)	(15,606)	(3,811)
$ (169)	(30)	(460)	(49)
$ (279)	(96)	(656)	(160)

Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Effects of changes in foreign exchange rates Net decrease in cash and cash equivalents	For the six months ended June 30 2021 2020 $ 6,546 724 (3,789) (845) (3,381) (1,942) (161) (258) $ (785) (2,321)
	$ (785)

(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 - - - (521)	1,048,089 1,159 - (65) (1,200)	2,402,579 2,627 4,756 (41,740) (3,097)	146,461 17,567 (4,756) (6,809) (132)	3,649,342 21,507 - (48,614) (5,164)
$ 23,419	1,047,983	2,365,125	152,331	3,617,071
$ 25,201 - - - (294)	1,047,550 115 272 - (1,527)	2,384,197 1,780 1,080 - (5,147)	133,476 6,048 (1,352) (84) (160)	3,618,755 7,943 - (103) (7,283)
$ 24,907	1,046,410	2,381,910	137,928	3,619,312

～ 17 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Land	Building and construction	Machinery and equipment	Office equipment	Other
$ - - - -	817,727 7,454 (65) (792) 824,324 800,136 8,996 - (1,205) 807,927 230,362 223,659 247,414 238,483	2,355,670 9,345 (41,740) (2,995) 2,320,280 2,330,684 10,996 - (4,976) 2,336,704 46,909 44,845 53,513 45,206	27,246 169 - (196)	117,385 7,838 (4,304) (96)
$ -			27,219	120,823
$ - - - -			26,927 333 (19) (146)	95,053 12,994 (84) (113)
$ -			27,095	107,850
$ 23,940 $ 23,419 $ 25,201 $ 24,907			1,027	29,076
			994	31,508
			1,404	38,423
			1,062	30,078

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 22,578 (1,165)	Transportation equipment 326 348 (11)	Total 94,639 22,926 (1,176)
$ 66,409	49,317	663	116,389
$ 67,226 (817) -	23,509 - (492)	214 - (3)	90,949 (817) (495)
$ 66,409	23,017	211	89,637
$ 5,482 1,360 -	21,893 5,903 (721)	36 141 (2)	27,411 7,404 (723)
$ 6,842	27,075	175	34,092
$ 2,757 1,364 -	10,857 5,398 (280)	128 64 (2)	13,742 6,826 (282)
$ 4,121	15,975	190	20,286

～ 18 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Building and construction 6,011	Transportation equipment 290	Total 67,228
22,242	488	82,297
12,652	86	77,207
7,042	21	69,351

(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 (987)	Building and construction 15,500 (337)	Total 60,833 (1,324)
$ 44,346	15,163	59,509
$ 47,720 - (557)	15,418 900 (192)	63,138 900 (749)
$ 47,163	16,126	63,289
$ - - -	5,675 327 (127)	5,675 327 (127)
$ -	5,875	5,875
$ - - -	5,304 322 (66)	5,304 322 (66)
$ -	5,560	5,560
$ 45,333	9,825	55,158
$ 44,346	9,288	53,634
$ 47,720	10,114	57,834
$ 47,163	10,566	57,729

～ 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 June 30, 2021 Balance as of January 1, 2020 Individual acquisition Disposals Effects of changes in foreign exchange rates Balance as of June 30, 2020 Amortization: Balance as of January 1, 2021 Amortization Disposals Effects of changes in foreign exchange rates Balance as of June 30, 2021 Balance as of January 1, 2020 Amortization Disposals Effects of changes in foreign exchange rates Balance as of June 30, 2020 Carrying amount: Balance as of January 1, 2021 Balance as of June 30, 2021 Balance as of January 1, 2020 Balance as of June 30, 2020	Patent $ 2,888 157 (108) -		Computer software cost 9,477 26 - (18)		Total amount 12,365 183 (108) (18) 12,422 11,575 1,525 (965) (13) 12,122 8,254 619 (108) (17) 8,748 7,798 764 (965) (12) 7,585 4,111 3,674 3,777 4,537
	$ 2,937		9,485
	$ 3,557 157 (965) -		8,018 1,368 - (13)
	$ 2,749		9,373
	$ 1,433 129 (108) -		6,821 490 - (17)
	$ 1,454		7,294
	$ 2,137 140 (965) -		5,661 624 - (12)
	$ 1,312		6,273
	$ 1,455		2,656
	$ 1,483		2,191
	$ 1,420		2,357
	$ 1,437		3,100

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		June 30,2021 $ 107,774 $ 2,068,945 0.80%~1%	December 31,2020 700,000 1,173,097 0.80%~0.85%		June 30,2020
					320,000
					1,408,327
					0.80%~0.95%

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	June 30,2021 $ 49,263 15,000 21,130 12,678 36,022 188,895 104,902	December 31,2020	June 30,2020 43,912 25,000 25,556 15,333 33,737 188,889 107,284 439,711
		47,042 68,000 14,683 8,810 34,270 - 101,713
	$ 427,890	274,518

(o) Long-term loans

The details of long-term loans were as follows：

June 30,2021 $ 400,000 - (1,884)	December 31,2020	June 30,2020 - 240,000 (111)
	- - -
$ 398,116	-	239,889
$ - 398,116	- -	239,889 -
$ 398,116	-	239,889
$ 400,000	800,000	240,000
1.1543%	-	1.7895%

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 August, 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 bank's own fund and $600,000 by issuing 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. Restrictions related to the contract are as follows:

Pursuant to the loan contract, for the duration of the loan the Group must conform to the predetermined financial covenants involving special financial ratios calculated based on the annual consolidated financial statements. If the special financial ratios cannot meet the requirement, the Group should improve within nine months after the end of the fiscal year. If the adjusted financial ratios reviewed by the certified accountant meet the requirements, it will not be regarded as breach of the contract. During the period for adjustment, unused lines of credit, excluding the revolving credit extension, will be suspended until such ratios are in compliance with the contract requirement. But during the said period, the interest rate would increase additional 0.125%. If the special financial ratios cannot meet the requirement, the majority of the banks should resolve if they agree to waive the violation of the financial ratio, Before the decision of most credit banks, the violation of the financial ratio will not be regarded as breach of the contract.

(i) A minimum current ratio of 100% should be maintained.

(ii) A maximum debt ratio of 150% should be maintained.

(iii) A minimum times interest earned ratio of 2.5 should be maintained.

(iv) Minimum net tangible assets of $1,400,000 should be maintained.

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	June 30,2021 $ 11,620 $ 73,036	December 31,2020 7,325 61,833	June 30,2020 8,370 62,640

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	April to June,2021 $ 802 $ 272	April to June,2020	January to June, 2021 1,485 814	January to June, 2020 1,342 992
		655 430

～ 22 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets COVID-19-related rent concessions	$ 60 $ -	65	120	123 1,181
		116	-

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

Total cash outflow for leases	For the six months ended June 30 2021 2020 $ 9,341 7,486

Please refer to Note 6(p) of 2020 consolidated financial statements for information of the lease.

(q) Operating lease

There was no increase for operating lease for the six months ended June 30, 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 ：

Operating cost Selling expenses General and administrative expenses Research and development expenses	April to June,2021	April to June,2020	January to June, 2021 459 24 72 54 609	January to June, 2020 575 30 91 69 765
	$ 229 12 36 27	288 16 44 35
	$ 304	383

(ii) Defined Contribution Plan

Cost recognized in expense was as below ：

Operating cost Selling expenses General and administrative expenses Research and development expenses	April to June,2021	April to June,2020	January to June, 2021 11,737 2,821 1,176 1,378 17,112	January to June, 2020 9,931 2,570 817 1,374 14,692
	$ 5,961 1,471 592 693	4,489 1,270 329 691
	$ 8,717	6,779

～ 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 ：

April to June,2021	April to June,2020	January to June, 2021	January to June, 2020
$ 5,286 (6,878)	24,255 (3,578)	15,165 (6,878)	31,207 (3,578)
(1,592)	20,677	8,287	27,629
12	179	17	196
$ (1,580)	20,856	8,304	27,825

For the six months ended June 30,2021 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	April to June,2021	April to June,2020	January to June, 2021	January to June, 2020
	$ (66)	57	(141)	282

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 six months ended June 30, 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 June 30, 2021, December 31 and June 30, 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	June 30,2021 $ 14,950 473	December 31,2020 14,950 473 15,423	June 30,2020 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 to distribute cash dividend per share 1.2 in the meeting of the board of directors held on March 10, 2021, which was authorized by company’s articles of incorporation; and report to the shareholders’ meeting held on July 26, 2021, along with o ther distribution include Legal reserve $24,072 and Reversal of special reserve $15,203 had been approved.

The appropriations of earnings for 2019 had been approved to distribute cash dividend per share 1.2 in the shareholders’ meeting held on June 20, 2020.

(iv) Other equity (net of tax)

Foreign exchange differences arising from foreign operation	Unrealized gains (losses) on financial assets measured at FVOCI (99,519) 22,910 (138) (76,747)	Total (117,815) 14,856 (138) (103,097)
$ (18,296) (8,054) -
$ (26,350)
$ (14,111) (3,983) -	(88,501) (11,499) (5,612)	(102,612) (15,482) (5,612) (123,706)
$ (18,094)	(105,612)

(v) Treasury stock

The changes of treasury stocks were as follows ：

(Expressed in thousands of shares)

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

As of June 30, 2021, December 31 and June 30, 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 six months ended June 30, 2021 and 2020, Ying Dar Corp. and Bae Haw Corp. did not purchase or dispose any of the Company’s shares. As of June 30, 2021, December 31 and June 30, 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 June 30, 2021, December 31 and June 30, 2020, their market values amounted to $191,278, $169,292 and $186,441, 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 ：

April to June, 2021	April to June, 2020	January to June, 2021	January to June, 2020
59,804	100,635	110,945	144,513
148,613	148,613	148,613	148,613
$ 0.40	0.68	0.75	0.97
59,804	100,635	110,945	144,513
148,613 144	148,613 300	148,613 581	148,613 834
148,757	148,913	149,194	149,447
$ 0.40	0.68	0.74	0.97

In computing above basic earnings (loss) per share of ordinary stock for the six months ended June 30, 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

Domestic $ 590,667 42 196,826	April to June 2021	April to June 2021	Total 591,149 206,841 243,627
	North America - 206,799 46,659	Other operating department 482 - 142 624 - - 624 624
$ 787,535	253,458		1,041,617
$ 170,434 603,484 13,617	109,567 138,345 5,546		280,001 741,829 19,787
$ 787,535	253,458		1,041,617

～ 26 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Domestic $ 416,588 536 107,500	April to June 2020	April to June 2020
	North America - 441,159 92,477	Other operating department 159 - 24
$ 524,624	533,636	183
$ 221,046 294,108 9,470	161,776 370,429 1,431	- - 183
$ 524,624	533,636	183
Domestic $ 1,164,667 214 360,887	January to	June 2021
	North America - 377,387 82,066	Other operating department 950 - 208
$ 1,525,768	459,453	1,158
$ 328,453 1,180,885 16,430	213,012 238,934 7,507	- - 1,158
$ 1,525,768	459,453	1,158
Domestic $ 886,938 536 248,335	January to	June 2020
	North America 36 597,481 139,509	Other operating department 249 - 323
$ 1,135,809	737,026	572
$ 394,041 727,445 14,323	267,447 460,247 9,332	- - 572
$ 1,135,809	737,026	572

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(ii) Contract balance

Accounts receivable (including related parties) Less: allowance for impairment Total Contract liability`－`Unearned revenue (recognized in other current liabilities)	June 30,2021 $ 815,349 (6,221) $ 809,128 $ 38,745	December 31,2020		June 30,2020 684,283 (19,436) 664,847 23,664
		595,163 (5,613) 589,550 33,286

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

The amount of revenue recognized for the three months and six months ended June 30, 2021 and 2020, that was included in the contract liability balance at the beginning of the period were $746, $1,069, $2,728 and $2,745 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 amount of the remuneration of employees and of directors and supervisors were as follows ：

April to June 2021	April to June 2020	January to June 2021
$ 3,137	6,384	6,447
$ 1,882	3,830	3,868

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.

～ 28 ～

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

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 ：

April to June 2021	April to June 2020	January to June 2021	January to June 2020
$ 334 7	2,553 30	1,064 18	6,748 60 6,808 January to June 2020
$ 341	2,583	1,082
	April to June 2020	January to June 2021
$ 7,710 85	2,730 (1,397)	9,870 171	2,730 3,341 6,071
$ 7,795	1,333	10,041

(ii) Other income

The details of other income were as follows ：

(iii) Other gains and losses

Details of other gains and losses were as follows ：

Foreign exchange 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	April to June 2021	April to June 2020	January to June 2021	January to June 2020
	$ (15,741) 1,926 180 (4)	(20,883) 5,530 - (199)	(23,830) 4,701 436 (4)	(2,626) (4,219) - (205) (7,050)
	$ (13,639)	(15,552)	(18,697)

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(iv) Finance cost

Details of finance costs were as follows ：

Interest expenses Bank loans Lease liabilities Management fee of syndicated loan	April to June 2021	April to June 2020	January to June 2021	January to June 2020
	$ 1,484 802 50	1,854 655 63	2,840 1,485 100	4,308 1,342 125 5,775
	$ 2,336	2,572	4,425

(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 and contract assets.

2) Concentration of credit risk

As of June 30, 2021 and December 31, 2020, one customer accounted for 36.55% and 45.56% of total accounts receivable. The Group has no significant concentration of its accounts receivable as of June 30, 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) and 6(g).

(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 June 30, 2021 Non-derivative financial liabilities Secured Long-term loans(including long term loans, current portion) (floating rate) $ 398,116 Unsecured Short-term loans (floating rate) 107,774 Accounts payable (non-interest bearing) 523,666 Notes payable (non-interest bearing) 218 Other payable (non-interest bearing) 427,890 Lease liability (fixed interest rate) 84,656 Guarantee deposits received (non- interest bearing) 547	Contracted cash flows (421,252) (107,850) (523,666) (218) (427,890) (118,539) (547)	Due within 6 months (2,315) (107,850) (523,666) (218) (427,890) (7,823) -	Due in 6- 12months (2,290) - - - - (6,890) -	Due in 1- 2 years (4,617) - - - - (12,588) -	Due in 2- 5 years (412,030) - - - - (17,406) (547)	Due in over 5 years - - - - - (73,832) -

～ 30 ～

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

Carrying amount 153	Contracted cash flows 33,297 (33,432)	Due within 6 months 33,297 (33,432)	Due in 6- 12months - -	Due in 1- 2 years - -	Due in 2- 5 years - -	Due in over 5 years - -
$ 1,543,020	(1,600,097)	(1,069,897)	(9,180)	(17,205)	(429,983)	(73,832)
$ 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)
$ 239,889 320,000 533,885 971 439,711 71,010 580 463	(240,529) (320,445) (533,885) (971) (439,711) (105,284) (580) 59,260 (59,568)	(240,529) (320,445) (533,885) (971) (439,711) (6,468) - 59,260 (59,568)	- - - - - (4,135) - - -	- - - - - (4,958) (34) - -	- - - - - (11,918) (546) - -	- - - - - (77,805) - - -
$ 1,606,509	(1,641,713)	(1,542,317)	(4,135)	(4,992)	(12,464)	(77,805)

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	June 30, 2020 Foreign currency Exchange rate TWD amount 68,089 29.63 2,017,487 10,341 0.2751 2,845 1,863 4.191 7,807 9 33.27 291 3,136 29.63 92,906	June 30, 2020 Foreign currency Exchange rate TWD amount 68,089 29.63 2,017,487 10,341 0.2751 2,845 1,863 4.191 7,807 9 33.27 291 3,136 29.63 92,906
Foreign currency	Exchange rate	Foreign currency 68,089 10,341 1,863 9 3,136	Exchange rate
62,555 52,538 4,021 75 2,566	28.48 0.2763 4.377 35.02 28.48		29.63 0.2751 4.191 33.27 29.63

～ 31 ～

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

June 30, 2021	June 30, 2021	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	June 30, 2020 Foreign currency Exchange rate TWD amount 16,870 29.63 499,854 33,305 0.2751 9,162 - - - 2,000 29.63 59,260	June 30, 2020 Foreign currency Exchange rate TWD amount 16,870 29.63 499,854 33,305 0.2751 9,162 - - - 2,000 29.63 59,260
Foreign currency 21,377 19,430 - 1,200	Exchange rate 27.86 0.2521 - 27.86	Foreign currency	Exchange rate	Foreign currency 16,870 33,305 - 2,000	Exchange rate
		14,997 16,437 72 1,000	28.48 0.2763 35.02 28.48		29.63 0.2751 - 29.63

The Group’s exposure to foreign currency risk arises from the translation of the cash and cash equivalents, accounts receivables, other receivables, financial assets and liabilities at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, accounts payables, and other payables. As of June 30, 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 $5,319 and $12,812, respectively, and equity will increase or decrease by $108 and $113, respectively. 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 and the six months ended June 30, 2021 and 2020, foreign exchange gain or loss (including realized and unrealized) amounted to loss $15,741, loss $20,883, loss $23,830 and loss $2,626, 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 six months ended June 30

2021 Increase 0.25% Decrease 0.25% After-tax profit After-tax profit $ 508 508	2020 Increase 0.25% Decrease 0.25% After-tax profit After-tax profit 560 560
	Increase 0.25% After-tax profit 560

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 ：

～ 32 ～

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

For the six months ended June 30

Equity price at reporting date Increase 3% Decrease 3%	2021 Other comprehensive income after tax Net profit (loss) $ 18,406 2,461 $ (18,406) (2,461)	2021 Other comprehensive income after tax Net profit (loss) $ 18,406 2,461 $ (18,406) (2,461)	2020 Other comprehensive income after tax Net profit (loss) 8,385 2,853 (8,385) (2,853)	2020 Other comprehensive income after tax Net profit (loss) 8,385 2,853 (8,385) (2,853)
				Net profit (loss) 2,853 (2,853)
	$ (18,406)	(2,461)	(8,385)

(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.

	June 30, 2021	June 30, 2021
Carrying Amount $ 94,338 2		Fair value
	Level 1 94,338 - 523,989 - - - - - - - - - - - - -	Level 2 Level 3 - - 2 - - - - 92,270 - - - - - - - - - - 153 - - - - - - - - - - - - -

94,340
523,989 92,270
616,259
582,405 809,128 8,409 2,045 11,046
1,413,033
$ 2,123,632
$ 153
505,890 218 523,666 427,890 84,656 547
1,542,867
1,543,020

Total financial liabilities	1,543,020
Financial assets at FVTPL Debt instrument with quoted market prices Financial assets at FVOCI Equity instrument with quoted market prices		December 31, 2020			Amount 58,817 160,625
	Carrying Amount $ 58,817		Fairvalue
		Level 1 58,817 160,625	Level 2 - -	Level 3 - -

	160,625

～ 33 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Equity instrument at fair value without quoted market prices Subtotal Financial assets at amortized cost Cash and cash equivalent Account receivables Other account receivables Restricted deposit Refundable deposits (recognized in other assets - noncurrent) Subtotal Total Financial liabilities at FVTPL Swap contract Financial liabilities at amortized cost Bank loans Notes payable Accounts payable Other payable Lease liabilities Guarantee deposits Subtotal Total financial liabilities			December 31, 2020	December 31, 2020	December 31, 2020	Amount 97,826 - - - - - 195 - - - - -
	Carrying Amount 97,826 258,451 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			Fairvalue
			Level 1 - - - - - - - - - - - - -	Level 2 - - - - - - 195 - - - - - -	Level 3 97,826 - - - - - - - - - - - -

		June 30, 2020	June 30, 2020	June 30, 2020
Carrying Amount	-	Level 1 110,827 178,688 - - - - - - - - - - - -	Fair value
			Level 2 - - - - - - - - 463 - - - - - - -	Level 3 - - 103,668 - - - - - - - - - - -
110,827
178,688 103,668
282,356
1,196,253 664,847 12,695 2,096 7,009
1,882,900
$ 2,276,083
$ 463
$ 559,889 971 533,885 439,711 71,010 580
1,606,046
$ 1,606,509

～ 34 ～

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. 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 June 30, 2021 and 2020.

～ 35 ～

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 June 30, 2021 Balance at January 1, 2020 Recognized in other comprehensive income Balance at June 30, 2020	Financial assets at fair value through other comprehensive income Unquoted equity instruments $ 97,826 (5,556) $ 92,270 $ 139,872 (36,204) $ 103,668

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 June 30,2021, December 31,2020 and June 30, 2020 ranged from 0.48%`、`0.48% and 2.10% respectively) `．` Weighted average cost of capital (as of June 30, 2021, December 31,2020 and June 30, 2020 ranged from 10.20%`、`10.52% and 9.47% respectively) `．` Market illiquidity discount rate (as of June 30,2021, December 31,2020 and June 30 2020 ranged from 59.80%`、`60.73% and 42.12% respectively) `．` Non-controlling interests discount rate `．` (as of June 30,2021, December 31,2020 and June 30, 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 was 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.

～ 36 ～

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 June 30, 2021 Continuing growth rate 0.48% Weighted average cost of capital 10.20% 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% June 30, 2020 Continuing growth rate 2.10% Market illiquidity discount rate 9.47% Market illiquidity discount rate 42.12% Non-controlling interests discount rate 29.87%	Changes in fairvalue reflected inOCI Fluctuation in inputs Favorable Unfavorable 0.1% $ 560 560 0.1% 770 700 1% 2,030 2,030 1% 980 1,050 0.1% $ 700 700 0.1% 350 350 1% 1,960 1,960 1% 1,120 1,120 0.1% $ 1,330 1,400 0.1% 1,680 1,680 1% 1,470 1,470 1% 1,260 1,260	Changes in fairvalue reflected inOCI	Changes in fairvalue reflected inOCI
				Unfavorable
				560 700 2,030 1,050 700 350 1,960 1,120 1,400 1,680 1,470 1,260

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.

～ 37 ～

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 `：`

Short-term loans Long-term loans (including long term loans, current portion) Lease liabilities Guarantee deposits Total liabilities from financing activities	January 1, 2021 $ 700,000 (1,600) (Note1) 69,158 558 $ 768,116	Cash flows (592,084) 400,000 (6,841) -			Non-cash changes	Non-cash changes	Changes in lease payments - - - -	June 30, 2021 107,774 398,116 84,656 547
				Foreign exchange movement (142) - (587) (11)	Amortized - (284) - -	Other (Note 2) - - 22,926 -
		(198,925)		(740)	(284)	22,926	-	591,093

Short-term loans Long-term loans (including long term loans, current portion) Lease liabilities Guarantee deposits Total liabilities from financing activities	January 1, 2020 400,000 319,555 78,482 587		Cash flows (80,000) (80,000) (5,253) -				Non-cash	Non-cash	changes	Changes in lease payments - - (1,181) -	June 30, 2020 320,000 239,889 71,010 580
					Foreign exchange movement - - (221) (7)		Amortized - 334 - -		Other (Note 2) - - (817) -
	$ 798,624		(165,253)		(228)		334		(817)	(1,181)	631,479

(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	April to June, 2021	April to June, 2020	January to June, 2021	January to June, 2020 13,289 207 - - - 13,496
	$ 5,783 107 - - - $ 5,890	7,327 33 - - - 7,360	14,602 212 - - - 14,814

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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 Purpose Restricted time deposits-current Guarantee for customs Restricted time deposits-non-current Performance guarantee Property, plant and equipment-buildings Guarantee for long-term loans	June 30,2021 $ 1,530 515 176,212 $ 178,257	December 31,2020	June 30,2020 1,549 547 217,210 219,306
		1,525 526 -
		2,051

(9) Commitments and Contingencies

(a) As of June 30, 2021, December 31, 2020 and June 30, 2020, the Group’s unused letters of credit for purchases of raw materials, machinery and equipment amounted to $2,283, $4,422 and $6,508, respectively.

(b) As of June 30, 2021, December 31, 2020 and June 30, 2020, the Group has signed contracts for the purchase of equipments. The unrecognized contingencies of contracts for the purchase of equipments amounted to $1,864, $1,995 and $5,902, 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 June 30	For the three months ended June 30	For the three months ended June 30	For the three months ended June 30
		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	120,770 12,715 68	59,982 3,598 227	180,752 16,313 295	125,036 15,923 82	66,249 3,019 301	191,285 18,942 383

By function By item		For the six months ended June 30
		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	245,988 25,491 142	121,936 7,046 477	367,924 32,537 619	233,650 32,897 168	126,570 6,389 596	360,220 39,286 764

Note ： The Government subsidy related to COVID-19 for the three months and six months ended June 30, 2021, amounted to $1,249 and $2,059, 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.

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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 six months ended June 30, 2021 were as follows ：

(i) Loans extended to other parties ： None

(ii) Guarantees provided to other parties: None

(iii) Securities owned as of June 30, 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	June 30,2021	June 30,2021	June 30,2021	June 30,2021	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 The Company The Company The Company 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. stock Far Eastern New Century Corp. stock Quanta Computer Inc. stock Synnex Technology International Co. , Ltd. stock Getac Technology Corporation. stock Nan Ya Plastics Corporation. stock Pegatron Co., Ltd. stock Ctbc financial holding co., ltd. Getac Technology Corporation. stock Chicony electronics co., ltd. stock Lite-On Technology Corp. stock MEGA FHC. stock Taiwan Cement Corp., Ltd. stock Coasia Microelectronics Corp. stock Shian Yih Electronic Co., Ltd. stock Becton, Dickinson and Company. stock JPMorgan Multiple Income Fund (USD) Yuanta Taiwan High-yield Leading Company Fund A Shian Yih Electronic Co., Ltd. stock The Company’s stock Everest Technology Inc. Shian Yih Electronic Co., Ltd. stock The Company’s stock Chenfeng Optronics Corp. 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 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`－` 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 1,147,089 550,000 755,785 1,000,000 699,000 890,000 589,000 210,000 216,000 1,880,000 300,000 620,000 1,236,000 790,000 450,338 480,000 2,000 10,053.075 2,175,045.00 550,000 5,346,672 1,000,000 395,000 3,447,716 6,000,000	21,080 10,170 874 23,802 40,645 19,877 32,000 61,162 45,301 32,395 17,472 14,861 42,676 24,120 35,712 40,603 40,290 6,372 10,872 13,551 61,430 32,908 12,457 116,290 - 8,947 74,988 61,020	5.25% 1.47% - 0.01% - 0.01% 0.02% 0.02% 0.05% 0.10% - 0.01% 0.01% 0.04% 0.03% 0.01% 0.01% 0.32% 0.78% - - - 0.90% 3.29% 1.47% 0.65% 2.12% 8.83%	21,080 10,170 874 23,802 40,645 19,877 32,000 61,162 45,301 32,395 17,472 14,861 42,676 24,120 35,712 40,603 40,290 6,372 10,872 13,551 61,430 32,908 12,457 116,290 - 8,947 74,988 61,020	- - - - - - - - - - - - - - - - - - - - (Note) - (Note) -

Note: It was eliminated in the consolidation

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

(iv) Accumulated trading amount of a single security in excess of $300 million or 20% of the Group’s issued share capital: None.
(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	412,119 412,119	21.27% 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.	259,586 (259,586)	30.28% 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 r	Account eceivables of 259,586	3.57	-	-	61,225	-	(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	412,119 259,586	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.	20.75% 7.19%
0	The Company	Emerging Display Technologies Corp., U.S.A.	1	Selling expenses-Commission	21	No non-related-party transaction to compare to.	-
0	The Company	EDT-Europe ApS	1	Selling expenses-Commission Other payable	33,467 5,750	No non-related-party transaction to compare to.	1.68% 0.16%
0	The Company	Emerging Display Technologies Korea	1	Selling expenses-Commission	2,007	No non-related-party transaction to compare to.	0.10%
0	The Company	EDT-Japan Corp.	1	Selling expenses-Commission	6,878	No non-related-party transaction to compare to.	0.35%
0	The Company	Dong Guan Emerging DisplayLimited	1	Processing cost Accounts payable	70,834 62,324	No non-related-party transaction to compare to.	3.57% 1.73%

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 six months ended June 30, 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
				June 30, 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%	82,996 (Note1)	936	980	Subsidiary (Note2)
The Company	Emerging Display International (Samoa) Corp.	Samoa	Investment holding	180,503	180,503	5,984,071	78.49%	66,555	(10,951)	(8,595)	Subsidiary (Note2)
The Company	EDT-Europe ApS	Denmark	Customer service and business support	2,077	2,077	125,000	100.00%	3,572	2,033	2,033	Subsidiary (Note2)
The Company	Emerging Display Technologies Korea	Korea	Business support	1,677	1,677	58,212,500	100.00%	1,499	138	138	Subsidiary (Note2)
The Company	EDT-Japan Corp.	Japan	Customer service and business support	17,401	17,401	5,000	100.00%	6,322	1,189	1,189	Subsidiary (Note2)
The Company	Ying Dar Investment Development Corp.	Taiwan	Investment	89,000	89,000	8,900,000	100.00%	19,342	(662)	(662)	Subsidiary (Note2)
The Company	Bae Haw Investment Development Corp.	Taiwan	Investment	89,000	89,000	8,900,000	100.00%	34,559	(1,260)	(1,260)	Subsidiary (Note2)
The Company	Ying Cheng Investment Corp.	Taiwan	Investment	84,000	84,000	8,400,000	52.50%	37,255	(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%	5,003	(10,951)	(646)	Subsidiary (Note2)
Bae Haw Investment Development Corp.	Emerging Display International (Samoa) Corp.	Samoa	Investment holding	25,488	25,488	870,000	11.41%	9,675	(10,951)	(1,250)	Subsidiary (Note2)

Note1: It was deducted unrealized profit from sales $8,618. 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 June 30, 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 June 30, 2021	Accumulated investment income repatriated to Taiwan as of June 30, 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)	(10,764)	95.80% (Note2)	loss of $10,312 Based on the investee’s financial statements audited by the same auditor as the Group (Note3)	72,752 (Note4)	-

(ii) Limitation on investments in Mainland China ：

Accumulated investment amount remitted from Taiwan to Mainland China as of June 30, 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
193,200 (Note8) (USD6,934,668) (Note5)	388,695 (Note8) (USD13,951,732) (Note6)	1,273,108 (Note7)

～ 42 ～

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

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.
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 $635 which was recognized by Ying Dar Investment Development Corp. and a loss of $1,228 which was recognized by Bae Haw Investment Development Corp.
Note 4 ： The amount includes $4,481which was invested by Ying Dar Investment Development Corp. and $8,665 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 $81,379 for Ying Dar Investment Development Corp. and $65,728 for Bae Haw Investment Development Corp.
Note 8 ： Transactions denominated in foreign currencies were recorded using the rate of exchange at June 30, 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 six months ended June 30, 2021.

(d) Major shareholder ：

on significant transactions” for the six months ended June 30, ajor shareholder`：`	2021.
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.

～ 43 ～

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

(14) Segment Information

Reportable segment information was as follows ：

		April to June, 2021	April to June, 2021		Total 1,041,617 -
Domestic $ 787,535 226,806	North America 253,458 -	Mainland China - 50,751	Other operating Department 624 21,589	Adjustment s and Eliminations - (299,146)
$ 1,014,341	253,458	50,751	22,213	(299,146)	1,041,617
$ 72,078	779	(4,080)	2,782	(13,504)	58,055
					Total 1,058,443 -
Domestic $ 524,624 491,278	North America 533,636 45	Mainland China - 52,606	Other operating Department 183 19,209	Adjustment s and Eliminations - (563,138)
$ 1,015,902	533,681	52,606	19,392	(563,138)	1,058,443
$ 110,794	16,424	(227)	1,551	(7,080)	121,462
		January to	June, 2021		Total 1,986,379 -
Domestic $ 1,525,768 411,745	North America 459,453 21	Mainland China	Other operating Department 1,158 42,352	Adjustments and Eliminations - (524,952)
		- 70,834
$ 1,937,513	459,474	70,834	43,510	(524,952)	1,986,379
$ 131,469	1,210	(11,098)	3,849	(6,647)	118,783
		January to	June, 2020		Total 1,873,407 -
Domestic $ 1,135,809 699,282	North America 737,026 91	Mainland China	Other operating Department 572 38,472	Adjustments and Eliminations - (824,233)
		- 86,388
$ 1,835,091	737,117	86,388	39,044	(824,233)	1,873,407
$ 165,672	11,095	(546)	1,719	(5,656)	172,284

～ 44 ～

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

Domestic $ 3,377,948	North America 380,791	Mainland China 159,610	Other operating Department 30,897	Adjustment s and Eliminations (337,246)	Total 3,612,000
$ 3,441,342	310,291	144,865	31,559	(318,868)	3,609,189
$ 3,476,420	550,420	155,241	24,865	(557,842)	3,649,104
$ 1,634,341	289,325	83,668	19,505	(328,776)	1,698,063
$ 1,639,092	217,736	53,503	21,956	(303,663)	1,628,624
$ 1,782,673	453,751	58,981	15,815	(538,855)	1,772,365

The following is the explanation of material reconciliation item ：

(a) For the three and six months ended June 30, 2021 and 2020, the operating segments revenue eliminated from the consolidated entities were $299,146, $563,138, $524,952 and $824,233, respectively.
(b) For the three and six months ended June 30, 2021 and 2020, the operating segments profit and loss eliminated from the consolidated entities were $13,504, $7,080, $6,647 and $5,656, respectively.
(c) As of June 30, 2021, December 31, 2020 and June 30, 2020, the operating segments assets eliminated from the consolidated entities were $337,246, $318,868 and $557,842, respectively.
(d) As of June 30, 2021, December 31, 2020 and June 30, 2020 the operating segments liabilities eliminated from the consolidatedc entities were $328,776, $303,663 and $538,855, respectively.

～ 45 ～

AI assistant

EDT — Interim / Quarterly Report 2021

52271_rns_2021-11-05_ea5e58e4-71ca-40a6-ab07-bc4c4b79d600.pdf

Table of contents

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2021, December 31, 2020, and June 30, 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 and the six months ended June 30, 2021 and 2020

Consolidated Statements of Changes in Stockholders’ Equity For the six months ended June 30, 2021 and 2020

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

Consolidated Statements of Cash Flows

For the six months ended June 30, 2021 and 2020

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

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

For the six months ended June 30, 2021 and 2020

(1) Organization and Business Scope

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(4) Summary of Significant Accounting Policies

(a) Statement of compliance

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

(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

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

Notes to consolidated financial statements

(s) Income tax

Approval of income tax

EDT Interim / Quarterly Report 2021

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

(a) Information on significant transactions `：`

(iii) Securities owned as of June 30, 2021 (subsidiaries, associates and joint ventures not included) `：`

were 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 `：`