EDT — Interim / Quarterly Report 2021

Nov 5, 2021

Stock Code:3038

(English Translation of Financial Report Originally Issued in Chinese)

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

For the nine months ended September 30, 2021 and 2020 (With Independent Auditors’ Review Report Thereon)

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

～ 1 ～

Table of contents

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 estimation 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

1 2 3 4 5 6 7 8 8 8~9 9~10 10 11~43 43 44 44 44 44 44~45 45~47 47~48 48~49 49 50~51

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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 September 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and the nine months ended September 30, 2021 and 2020, and changes in equity and cash flows for the nine months ended September 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 and 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 $281,045 thousand and $209,702 thousand, constituting 7.77% and 5.40% of consolidated total assets as of September 30, 2021 and 2020, respectively, total liabilities amounting to $93,273 thousand and $71,778 thousand, constituting 5.73% and 3.67% of consolidated total liabilities as of September 30, 2021 and 2020, respectively, and total comprehensive income amounting to loss $7,672 thousand, profit $12,126 thousand, loss $26,172 thousand and loss $46,735 thousand, constituting 11.97%, 32.57%, 14.04% and 30.98% of consolidated total comprehensive income for the three months and the nine months ended September 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 Emerging Display Technologies Corp. and subsidiaries as of September 30, 2021 and 2020, and of its consolidated financial performance for the three months ended September 30, 2021 and 2020 and its consolidated financial performance, and its consolidated cash flows for the nine months ended September 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed by the Financial Supervisory Commission of the Republic of China.

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

KPMG

Taipei, Taiwan (Republic of China) November 4, 2021

Notes to Readers

The accompanying consolidated financial statements are intended only topresent thestatement of financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidatedfinancial statements are those generally accepted and applied in the Republic of China.

The independent auditors’review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’review report and consolidated financial statements, the Chinese version shall prevail.

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

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2021, December 31, 2020, and September 30, 2020

(Expressed in thousands of New Taiwan Dollars)

(Reviewed, not audited)

Assets Current assets： Cash and cash equivalents (Note 6(a)) Financial assets at fair value through profit or loss, current (Note 6(b)) Financial assets at fair value through other comprehensive income, current(Note 6(c)) Accounts receivable, net (Note 6(d) and (v)) Other receivables (Notes 6(e) and 6 (y)) Income tax assets Inventories (Note 6(f)) Other current assets (Notes 6(g) and 8) Total current assets Non-current assets: Financial assets at fair value through other comprehensive income, non-current (Note 6(c)) Property, plant and equipment (Notes 6(i) ,8 and 9) Right-of-use assets (Notes 6(j)) Investment property (Notes 6(k)) Intangible assets (Note 6(l)) Deferred income tax assets Prepayments for business facilities Other non-current financial assets (Notes 6(g) and 8) Total non-current assets Total assets	September 30,2021 Amount ％ $ 844,876 23 5,517 - 348,253 10 713,241 20 2,263 - 462 - 1,008,290 28 92,653 3	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	September 30,2020 Amount ％ 1,483,745 38 89,306 2 170,036 5 620,052 16 6,373 - 231 - 867,404 23 44,563 1 3,281,710 85 87,518 2 334,629 9 70,651 2 56,527 1 4,210 - 32,824 1 1,195 - 10,603 - 598,157 15 3,879,867 100 Liabilities and Equity Current liabilities： Short-term loans (Note 6(m)) Financial liability at fair value through profit and loss (Note 6(b)) Notes payable Accounts payable Other payables (Note 6(n)) Income tax liabilities Lease liabilities, current (Notes 6(p)) Other current liabilities (Notes 6(v)) Total current liabilities Non-current liabilities： Long-term loans (Notes 6(o) and 8) Deferred income tax liabilities Lease liabilities, non-current (Notes 6(p)) Net defined benefit liabilities, non-current Guarantee deposits received Other non-current liabilities－other Total non-current liabilities Total liabilities Equity attributable to owners of parent (Note 6(t))： Capital stock Capital surplus Retained earnings Other equity interest Treasury stock Total equity attributable to shareholders of the parent Non-controlling interests (Note 6(h)) Total equity Total liabilities and equity	September 30,2021 Amount ％ $ 194,445 5 12 - 185 - 518,821 15 258,962 7 31,721 1 12,195 - 59,593 2	December 31,2020 Amount ％ 700,000 19 195 - 1,234 - 400,068 11 274,518 8 51,559 2 7,325 - 43,204 1	September 30,2020 Amount ％ 1,006,469 26 1,580 - 1,416 - 431,507 11 257,941 7 52,516 1 9,316 - 43,493 1
				1,075,934 30	1,478,103 41	1,804,238 46
	3,015,555 84	3,010,069 83		398,613 11 242 - 70,375 2 82,830 2 547 - 572 - 553,179 15	- - 354 - 61,833 2 87,048 2 558 - 728 - 150,521 4	- - 156 - 63,144 2 86,461 2 570 - 779 - 151,110 4
	94,306 3 327,575 9 79,928 2 53,453 1 3,457 - 31,905 1 - - 11,519 -	98,691 3 331,314 9 67,228 2 55,158 2 4,111 - 31,928 1 - - 10,690 -
				1,629,113 45	1,628,624 45	1,955,348 50
				1,624,076 45 25,977 1 608,284 17 (134,554) (4) (173,021) (5)	1,624,076 45 15,423 - 591,094 17 (117,815) (3) (173,021) (5)	1,624,076 42 14,950 - 562,715 15 (141,483) (4) (173,021) (4)
	602,143 16 $ 3,617,698 100	599,120 17 3,609,189 100
				1,950,762 54 37,823 1	1,939,757 54 40,808 1	1,887,237 49 37,282 1
				1,988,585 55	1,980,565 55	1,924,519 50
				$ 3,617,698 100	3,609,189 100	3,879,867 100

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 nine months ended September 30, 2021 and 2020

(Expressed in thousands of New Taiwan dollars, Except Earnings Per Share)

(Reviewed, not audited)

For the three months ended September 30 2021 2020 Amount ％ Amount ％ Operating revenue (Note 6(v)) $ 1,094,234 100 969,887 100 Operating cost (Notes 6(f, r, w) and 12 ) 914,900 84 766,668 79 Gross profit 179,334 16 203,219 21 Operating expenses (Notes 6( r, w) ,7 and 12)： Selling expenses 46,200 4 46,620 5 General and administrative expenses 35,931 3 33,872 3 Research and development expenses 30,419 3 29,898 3 Expected credit impairment loss (gain)(Note 6(d)) 1,210 - (43) - Total operating expenses 113,760 10 110,347 11 Net other income (Note 6(x)) 941 - 1,014 - Net operating income 66,515 6 93,886 10 Non-operating income and expenses(Notes 6(c,y))： Interest income 36 - 1,681 - Other income 17,547 2 9,295 1 Other gains and losses 2,893 - (28,860) (3) Finance costs (2,415) - (3,018) - Total Non-operating income and expenses 18,061 2 (20,902) (2) Profit before income tax 84,576 8 72,984 8 Less: Income tax expense (Note 6(s)) 13,383 1 10,923 1 Profit 71,193 7 62,061 7 Other comprehensive income： Items that will not be reclassified subsequently to profit or loss Unrealized gains (losses) on investments in equity instruments at fair value through other comprehensive income (4,124) - (25,115) (3) Less：Income tax related to items that will not be reclassified subsequently (Note 6(s)) 29 - (126) - (4,153) - (24,989) (3) Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign financial statements (2,946) - 155 - Less: Income tax related to items that will be reclassified subsequently (Note 6(s)) - - - - (2,946) - 155 - Other comprehensive income, net (7,099) - (24,834) (3) Comprehensive income $ 64,094 7 37,227 4 Profit attributable to： Shareholders of the parent $ 71,592 7 62,213 7 Non-controlling interests (399) - (152) - Net Profit $ 71,193 7 62,061 7	For the three months ended September 30 2021 2020 Amount ％ Amount ％ $ 1,094,234 100 969,887 100 914,900 84 766,668 79	For the three months ended September 30 2021 2020 Amount ％ Amount ％ $ 1,094,234 100 969,887 100 914,900 84 766,668 79	For the three months ended September 30 2021 2020 Amount ％ Amount ％ $ 1,094,234 100 969,887 100 914,900 84 766,668 79	For the three months ended September 30 2021 2020 Amount ％ Amount ％ $ 1,094,234 100 969,887 100 914,900 84 766,668 79	For the three months ended September 30 2021 2020 Amount ％ Amount ％ $ 1,094,234 100 969,887 100 914,900 84 766,668 79	For the nine months ended September 30 2021 2020 Amount ％ Amount ％ 3,080,613 100 2,843,294 100 2,556,120 83 2,238,946 79	For the nine months ended September 30 2021 2020 Amount ％ Amount ％ 3,080,613 100 2,843,294 100 2,556,120 83 2,238,946 79	For the nine months ended September 30 2021 2020 Amount ％ Amount ％ 3,080,613 100 2,843,294 100 2,556,120 83 2,238,946 79	For the nine months ended September 30 2021 2020 Amount ％ Amount ％ 3,080,613 100 2,843,294 100 2,556,120 83 2,238,946 79
				2020				2020 Amount
	Amount $ 1,094,234 914,900	％		Amount	％ 100 79	Amount	％ 100 83
		100 84		969,887 766,668		3,080,613 2,556,120		2,843,294 2,238,946
	179,334	16		203,219	21	524,493	17	604,348	21
	46,200 35,931 30,419 1,210	4 3 3 -		46,620 33,872 29,898 (43)	5 3 3 -	147,682 96,723 83,837 1,822	5 3 3 -	154,473 99,441 86,783 626	6 3 3 -
	113,760	10		110,347	11	330,064	11	341,323	12
	941	-		1,014	-	2,868	-	3,091	-
	66,515	6		93,886	10	197,297	6	266,116	9
	36 17,547 2,893 (2,415)	- 2 - -		1,681 9,295 (28,860) (3,018)	- 1 (3) -	1,118 27,588 (15,804) (6,840)	- 1 (1) -	8,489 15,366 (35,910) (8,793)	- 1 (1) -
	18,061	2		(20,902)	(2)	6,062	-	(20,848)	-
	84,576 13,383	8 1		72,984 10,923	8 1	203,359 21,687	6 1	245,268 38,748	9 1
	71,193	7		62,061	7	181,672	5	206,520	8
		- -		(25,115) (126)	(3) -	15,767 (112)	1 - 1	(51,551) 156 (51,707)	(2) - (2)
	(4,153)	-		(24,989)	(3)	15,879
	(2,946) -	- -		155 -	- -	(11,196) -	- -	(3,939) -	- -
	(2,946)	-		155	-	(11,196)	-	(3,939)	-
	(7,099)	-		(24,834)	(3)	4,683	1	(55,646)	(2)
	$ 64,094	7		37,227	4	186,355	6	150,874	6
	$ 71,592 (399)	7 -		62,213 (152)	7 -	182,537 (865)	5 -	206,726 (206)	8 -
	$ 71,193	7		62,061	7	181,672	5	206,520	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 nine months ended September 30, 2021 and 2020

(Expressed in thousands of New Taiwan dollars, Except Earnings Per Share)

(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 September 30 2021 2020 Amount ％ Amount ％ $ 63,539 7 44,436 5 555 - (7,209) (1)	For the three months ended September 30 2021 2020 Amount ％ Amount ％ $ 63,539 7 44,436 5 555 - (7,209) (1)	For the three months ended September 30 2021 2020 Amount ％ Amount ％ $ 63,539 7 44,436 5 555 - (7,209) (1)	For the three months ended September 30 2021 2020 Amount ％ Amount ％ $ 63,539 7 44,436 5 555 - (7,209) (1)	For the nine months ended September 30 2021 2020 Amount ％ Amount ％ 189,340 6 173,467 7 (2,985) - (22,593) (1)	For the nine months ended September 30 2021 2020 Amount ％ Amount ％ 189,340 6 173,467 7 (2,985) - (22,593) (1)	For the nine months ended September 30 2021 2020 Amount ％ Amount ％ 189,340 6 173,467 7 (2,985) - (22,593) (1)	For the nine months ended September 30 2021 2020 Amount ％ Amount ％ 189,340 6 173,467 7 (2,985) - (22,593) (1)
		％ 7 -	2020		2021	％ 6 -	2020
	Amount $ 63,539 555		Amount 44,436 (7,209)	％	Amount 189,340 (2,985)		Amount 173,467 (22,593)
				5 (1)
	$ 64,094	7	37,227	4	186,355	6	150,874	6
	$	0.48		0.42		1.23		1.39
	$	0.48		0.42		1.22		1.38

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 nine months ended September 30, 2021 and 2020

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

Balance at January 1, 2020 Profit Other comprehensive income Total comprehensive income Appropriation and distribution of retained earnings： Legal reserve Cash dividends to shareholders Reversal of special reserve Cash dividends to subsidiaries Disposal of investments in equity instruments at fair value through other comprehensive income Balance as of September 30, 2020 Balance at January 1, 2021 Profit Other comprehensive income Total comprehensive income Appropriation and distribution of retained earnings： Legal reserve Cash dividends to shareholders Special reserve Cash dividends to subsidiaries Disposal of investments in equity instruments at fair value through other comprehensive income Return of employee stock ownership trust repayment cost Balance as of September 30, 2021			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	Equity attributable to shareholders of parent			Non-controlling interests	Total Equity 1,951,981
	Capital stock	Capital surplus	Retained earnings Legal capital reserve Special capital reserve Unappropriated Earnings 57,015 151,307 330,944 - - 206,726 - - - - - 206,726 25,733 - (25,733) - - (188,889) - (48,695) 48,695 - - - - - 5,612 82,748 102,612 377,355 82,748 102,612 405,734 - - 182,537 - - - - - 182,537 24,072 - (24,072) - - (188,889) - 15,203 (15,203) - - - - - 23,542 - - - 106,820 117,815 383,649				Other equity interest		Treasury stock	Total equity attributable to shareholders of parent
							Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
			Legal capital reserve	Special capital reserve
	$ 1,624,076	4,397	57,015	151,307			(14,111)	(88,501) - (29,362)	(173,021)	1,892,106	59,875
	- -	- -	- -	- -		206,726 - 206,726	- (3,897)		- -	206,726 (33,259)	(206 (22,387	) 206,520 ) (55,646)
	-	-	-	-			(3,897)	(29,362)	-	173,467	(22,593	) 150,874
	- - - - -	- - - 10,553 -	25,733 - - - -	- - (48,695) - -		(25,733) (188,889) 48,695 - 5,612	- - - - -	- - - - (5,612)	- - - - -	- (188,889) - 10,553 -	- - - - -	- (188,889) - 10,553 -
	$ 1,624,076	14,950	82,748	102,612		377,355	(18,008)	(123,475)	(173,021)	1,887,237	37,282	1,924,519
	$ 1,624,076	15,423	82,748	102,612		405,734	(18,296)	(99,519)	(173,021)	1,939,757	40,808	1,980,565
	- -	- -	- -	- - - - - 15,203 - - - 117,815		182,537 -	- (10,900)	- 17,703	- -	182,537 6,803	(865) (2,120)	181,672 4,683
	-	-	-			182,537	(10,900)	17,703	-	189,340	(2,985)	186,355
	- - - - - -	- - - 10,553 - 1 25,977	24,072 - - - - -			(24,072) (188,889) (15,203) - 23,542 -	- - - - - - (29,196)	- - - - (23,542) -	- - - - - -	- (188,889) - 10,553 - 1	- - - - - -	- (188,889) - 10,553 - 1
	$ 1,624,076		106,820			383,649		(105,358)	(173,021)	1,950,762	37,823	1,988,585

See accompanying notes to consolidated financial statements.

～ 6 ～

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

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Consolidated Statements of Cash Flows For the nine months ended September 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 and equipment Unrealized foreign exchange (gain) loss Others Total adjustments to reconcile profit Changes in operating assets and liabilities Changes in operating assets: Increase in Financial assets mandatorily measured at fair value through profit or loss Increase in accounts receivable Decrease in other accounts receivable Increase in inventories (Increase) decrease in other current assets Total net changes in operating assets Changes in operating liabilities： (Decrease) increase 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 (used in) from 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 Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Acquisition of Investment property Increase in 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) increase in short-termloans Increase in long-term loans Repayments of long-termloans Cash dividends Repayments the principal portion of lease liabilities Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the nine months ended September 30 2021 2020 $ 203,359 245,268 48,262 57,915 918 1,126 1,822 626 (5,668) 565 6,840 8,793 (1,095) (8,412) (27,398) (9,272) (436) - (3,224) 31,273 1 - 20,022 82,614 (5,532) - (127,525) (93,408) 3,588 3,499 (139,171) (67,650) (12,355) 16,056 (280,995) (141,503) (1,049) 1,109 119,751 5,488 (16,345) (23,098) 16,545 19,024 (4,218) (2,085) (156) (157) 114,528 281 (166,467) (141,222) (146,445) (58,608) 56,914 186,660 1,412 10,022 27,309 9,240 (6,580) (8,434) (41,897) (43,142) 37,158 154,346 (339,254) (101,773) 170,914 50,203 (30,135) (60,350) 94,451 25,161 (34,444) (20,645) 2,941 - (264) (1,559) - (895) (1,058) (3,033) - (1,195) (136,849) (114,086) (505,445) 606,727 400,000 - - (320,000) (178,342) (178,330) (10,464) (8,356) (294,251) 100,041 (3,513) (24,808) (397,455) 115,493 1,242,331 1,368,252 $ 844,876 1,483,745	For the nine months ended September 30 2021 2020 $ 203,359 245,268 48,262 57,915 918 1,126 1,822 626 (5,668) 565 6,840 8,793 (1,095) (8,412) (27,398) (9,272) (436) - (3,224) 31,273 1 - 20,022 82,614 (5,532) - (127,525) (93,408) 3,588 3,499 (139,171) (67,650) (12,355) 16,056 (280,995) (141,503) (1,049) 1,109 119,751 5,488 (16,345) (23,098) 16,545 19,024 (4,218) (2,085) (156) (157) 114,528 281 (166,467) (141,222) (146,445) (58,608) 56,914 186,660 1,412 10,022 27,309 9,240 (6,580) (8,434) (41,897) (43,142) 37,158 154,346 (339,254) (101,773) 170,914 50,203 (30,135) (60,350) 94,451 25,161 (34,444) (20,645) 2,941 - (264) (1,559) - (895) (1,058) (3,033) - (1,195) (136,849) (114,086) (505,445) 606,727 400,000 - - (320,000) (178,342) (178,330) (10,464) (8,356) (294,251) 100,041 (3,513) (24,808) (397,455) 115,493 1,242,331 1,368,252 $ 844,876 1,483,745
		57,915 1,126 626 565 8,793 (8,412) (9,272) - 31,273 - 82,614
		- (93,408) 3,499 (67,650) 16,056
		(141,503)
		1,109 5,488 (23,098) 19,024 (2,085) (157)
		281
		(141,222)
		(58,608)
		186,660 10,022 9,240 (8,434) (43,142)
		154,346
		(101,773) 50,203 (60,350) 25,161 (20,645) - (1,559) (895) (3,033) (1,195)
		(114,086)
		606,727 - (320,000) (178,330) (8,356)
		100,041
		(24,808)
		115,493 1,368,252
		1,483,745

See accompanying notes to financial statements.

～ 7 ～

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

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

For the nine months ended September 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, Cianjhen 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

November 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:

～ 8 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Notes to consolidated 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”

• ． 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 were as follows:

Name of investor	Name of the subsidiary	Business Activity Sale of CTP and LCDs Investment holding Customer service and business support Business support Customer service and business support Investment Investment Investment	Percentage ownership	Percentage ownership	Percentage ownership	Remarks
			September 30,2021 100.00% 78.49% 100.00% 100.00% 100.00% 100.00% 100.00% 52.50%	December 31,2020 100.00% 78.49% 100.00% 100.00% 100.00% 100.00% 100.00% 52.50%	September 30,2020
The Company The Company The Company The Company The Company The Company The Company The Company	Emerging Display Technologies Corp., U.S.A Emerging Display International (Samoa) Corp. EDT-Europe ApS Emerging Display Technologies Korea EDT-Japan Corp. Ying Dar Investment Development Corp. Bae Haw Investment Development Corp. Ying Cheng Investment Corp.				100.00% 78.49% 100.00% 100.00% 100.00% 100.00% 100.00% 52.50%	Major Subsidiary Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2

～ 9 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Name of investor Name of the subsidiar Business Activity YingDar Investment Development Corp. Emerging Display International (Samoa) Corp. Investment holding Bae Haw Investment Development Corp. Emerging Display International (Samoa) Corp. Investment holding Emerging Display International (Samoa) Corp. Dong Guan Emerging Display Limited Manufacturing of CTP and LCDs The Company Tremendous Explore Corp. Trading	Percentage ownership September 30 ,2021 December 31,2020 September 30,2020 Remarks 5.90% 5.90% 5.90% Note 2 11.41% 11.41% 11.41% Note 2 100.00% 100.00% 100.00% Note 2 Note 1 Note 1 Note 1 Note 2	Percentage ownership September 30 ,2021 December 31,2020 September 30,2020 Remarks 5.90% 5.90% 5.90% Note 2 11.41% 11.41% 11.41% Note 2 100.00% 100.00% 100.00% Note 2 Note 1 Note 1 Note 1 Note 2
	September 30 ,2021 5.90% 11.41% 100.00% Note 1	December 31,2020 5.90% 11.41% 100.00% Note 1

Note 1: Tremendous Explore Corp. was liquidated in July, 2020. The related liquidation procedures had been completed.

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

(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) Significant accounting assumptions and judgement, and major sources of estimation 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.

～ 10 ～

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

(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	September 30,2021 $ 394 835,653 9 8,820 - $ 844,876	December 31,2020	September 30,2020 326 393,803 284 125,664 963,668 1,483,745
		328 565,624 82 273,962 402,335
		1,242,331

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

Current financial assets mandatorily measured at fair value through profit or loss： Open-end mutual funds Swap Contract Dual Currency Investment Contract Current financial liabilities measured at fair value through profit or loss： Forward exchange contract Swap Contract	September 30,2021 $ - - 5,517 $ 5,517 $ 12 -	December 31,2020	September 30,2020 89,276 30 - 89,306 - 1,580 1,580
		58,817 - - 58,817 - 195 195
	$ 12

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

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

～ 11 ～

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

liabilities measured at FVTPL; presented under financial assets held for trading:

Forward exchange contract ：

Forward exchange contract Sell Swap contract Swap contract	September 30,2021	September 30,2021
	Contract amount (in thousand) Currency USD 250 USD to CNY December 31,2020
	Contract amount (in thousand) Currency USD 1,000 TWD to USD September 30,2020
	Contract amount (in thousand) USD 7,000

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

～ 12 ～

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 Microelectronics Corp. E.SUN Financial Holding Co., Ltd. Far Eastern New Century Corp. Quanta Computer Inc. Shian Yih Electronic Co., Ltd AGV Products Corporation 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	September 30,2021 $ 19,501 - 46,458 - 14,472 5,834 21,092 - 54,172 31,278 - 23,100 38,750 39,614 40,290		December 31,2020		September 30,2020 10,748 12,570 27,176 12,495 13,781 5,033 19,348 25,300 - 29,284 759 - - - - 156,494 13,542 170,036 17,493 69,160 86,653 865 87,518
			16,174 14,025 - 15,099 14,537 5,764 19,310 28,950 - 30,637 1,011 - - - - 145,507
	334,561
	13,692		14,253
	$ 348,253		159,760
	$ 19,662 73,780		19,566 78,260
	93,442		97,826
	864		865
	$ 94,306		98,691

～ 13 ～

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 nine months ended September 30, 2021 and 2020, the Group has recognized dividend income $17,528, $6,542, $27,398and $9,272 from the abovementioned equity instruments designated at fair value through other comprehensive income, respectively.

For the nine months ended September 30, 2021 and 2020, the Group with the objective of investment and financial management had sold financial assets at fair value of $170,914 and $42,985, and accumulated gain on disposal of investments were $23,542 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 September 30,2021, December 31, 2020 and September 30, 2020, the carrying amount of the listed stocks which were entrusted to financial institutions for security lending amounted to $19,501, $16,174and $10,748, respectively.

(d) Accounts receivable

Accounts receivables-measured at amortized cost Allowance for impairment	September 30,2021 $ 720,673 (7,432)	December 31,2020	September 30,2020 639,447 (19,395) 620,052
		595,163 (5,613)
	$ 713,241	589,550

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 ：

Not over due Overdue less than 90 days Overdue 91~180 days Overdue 181~270 days Overdue over 271 days				September 30,2021
			Carrying amount of Accounts Receivable $ 618,382 97,340 127 2 4,822 $ 720,673	Weighted-average expected credit loss rate 0.11% 1.95% 0.37% 0.12% 100%	Loss allowance for lifetime expected credit losses
						711 1,899 - - 4,822 7,432

～ 14 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Not over due Overdue less than 90 days Overdue 91~180 days Overdue over 181days Not over due Overdue less than 90 days Overdue 91~180 days Overdue 181~270 days Overdue 271~365 days Overdue over 365 days				December 31,2020
			Carrying amount of Accounts Receivable $ 495,965 95,060 4,138 - $ 595,163	Weighted-average expected credit loss rate 0.12% 0.96% 100% - September 30,2020	Loss allowance for lifetime expected credit losses
						574 908 4,131 - 5,613
			Carrying amount of Accounts Receivable $ 421,007 199,346 317 - 6 18,771 $ 639,447	Weighted-average expected credit loss rate 0.10% 0.10% 0.10% 0.10% 47.00% 100%	Loss allowance for lifetime expected credit losses
						421 200 - - 3 18,771 19,395

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

Balance at January 1 Recognition of impairment loss Effect of changes in foreign currency exchange rates Ending balance	For the nine months 2021 $ 5,613 1,822 (3)	ended September 30 2020 18,771 626 (2) 19,395
	$ 7,432

The abovementioned financial assets were not pledged as collateral.

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

• (e) Other receivables

Loans to employee Others Allowance for impairment	September 30,2021 $ 1,645 618 -	December 31,2020	September 30,2020 5,324 1,049 - 6,373
		5,154 936 -
	$ 2,263	6,090

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

～ 15 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(f) Inventories

Raw materials Work in process Finished goods Inventories in transit	September 30,2021 $ 468,769 323,009 208,392 8,120	December 31,2020	September 30,2020
		346,225 299,441 215,535 9,300	333,945 309,183 219,727 4,549
	$ 1,008,290	870,501	867,404

The details of the cost of sales were as follows:

Reclassification to cost of goods sold Inventory loss of write-down (gain on reversal of inventory ) Unallocated production overheads Loss on scrap Others	For the three months endedSeptember 30	For the three months endedSeptember 30	For the nine months	endedSeptember 30
	2021	2020	2021	2020
	$ 897,591 (42) 2,845 14,573 (67)	743,088 987 4,770 17,869 (46)	2,507,350 (9,679) 11,459 47,154 (164)	2,174,088 (5,594) 14,515 56,051 (114)
	$ 914,900	766,668	2,556,120	2,238,946

For the three months ended September 30,2020, the Group recognized an inventory valuation loss, accounted for as cost of goods sold, due to the decreasing value from the carrying amount to the net realized value.

For the three months ended September 30,2021 and the nine months ended September 30, 2021, the Group recognized a gain from price recovery of inventory was due to, the previous write-down inventories had been sold, therefore, the net realizable value of inventories lowered than cost was no longer existed, and thus the reversal was recorded as operating costs.

Inventories were not pledged as collaterals.

(g) Other current assets

The details of other current assets were as follows:

Income tax refund receivable Prepayment for purchases Prepaid expense Prepaid sales tax Restricted time deposits Refundable deposits Others	September 30,2021 $ 1,938 55,938 3,865 24,898 2,049 11,009 4,475	December 31,2020	September 30,2020
		1,954 63,725 6,757 5,496 2,051 10,164 3,545	1,851 28,205 5,880 3,244 2,091 10,066 3,829
	$ 104,172	93,692	55,166

～ 16 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

September 30,2021 December 31,2020 September 30,2020 Book as : Other current assets $ 92,653 83,002 44,563 Other financial assets－non-current 11,519 10,690 10,603 $ 104,172 93,692 55,166 The above mentioned restricted time deposits as collateral for loan was disclosed in Note 8. Non-controlling interests' share of subsidiaries Significant to the Group of the non-controlling interest subsidiaries were as follows: Principal place of business Proportion of non-controlling interest voting equity Name of subsidiaries September 30,2021 December 31,2020 September 30,2020 Ying Cheng Investment Corp. Taiwan 47.5% 47.5% 47.5% Emerging Display International (Samoa) Corp. Samoa 4.2% 4.2% 4.2%	September 30,2021	December 31,2020	September 30,2020
	$ 92,653 11,519	83,002 10,690
	$ 104,172	93,692

(h) Non-controlling interests' share of subsidiaries

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. was as follows:

Current asset Non-current asset Current liability Net asset Non-controlling equity closing book amount Operating revenue Net profit (loss) Other comprehensive income Comprehensive income Profit (loss) attributable to non-controlling interest Comprehensive income attributable to non-controlling interest			Sep. 30, 2021 $ 9,941 63,240 -	Sep. 30, 2021 $ 9,941 63,240 -						Sep. 30, 2020 10,041 59,280 - 69,321 32,928 January to September, 2020 - (11) (47,040) (47,051) (5) (22,349)
			$ 73,181
			$ 34,762
			July to September, 2021 -
	$
	$		(1) 2,220	(1) (15,000)				(12) (3,840)
	$		2,219	(15,001)				(3,852)
	$		-	- (7,125)				(6)
	$		1,055					(1,829)

～ 17 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Net decrease in cash and cash equivalents	January to September, 2021 $ (61) - - $ (61)	January to September, 2020	January to September, 2020
			(61) - - (61)

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

2021.9.30 2020.12.31 2020.9.30 Current asset $ 112,111 138,640 137,346 Non-current asset 40,355 15,264 17,162 Current liability (68,504) (53,503) (50,837) Non-current liability (11,074) - - Net asset $ 72,888 100,401 103,671 Non-controlling equity closing book amount $ 3,061 4,217 4,354 July to September, 2021 July to September, 2020 January to September, 2021 January to September, 2020 Operating revenue $ 52,747 43,017 123,581 129,405 Net loss $ (9,522) (3,612) (20,473) (4,792) Other comprehensive income (2,385) 1,618 (7,040) (1,013) Comprehensive income $ (11,907) (1,994) (27,513) (5,805) Loss attributable to non-controlling interest $ (399) (152) (859) (201) Comprehensive income attributable to non-controlling interest $ (500) (84) (1,156) (244) January to September, 2021 January to September, 2020 Cash flow from operating activities $ 32,583 4,044 Cash flow from investing activities (10,546) (1,539) Cash flow from financing activities (5,121) (3,480) Effects of changes in foreign exchange rates (303) (94) Net decrease in cash and cash equivalents $ 16,613 (1,069)	2021.9.30 2020.12.31 $ 112,111 138,640 40,355 15,264 (68,504) (53,503) (11,074) - $ 72,888 100,401 $ 3,061 4,217 July to September, 2021 July to September, 2020 January to September, 2021	2021.9.30 $ 112,111 40,355 (68,504) (11,074) $ 72,888	2021.9.30 $ 112,111 40,355 (68,504) (11,074) $ 72,888	2021.9.30 $ 112,111 40,355 (68,504) (11,074) $ 72,888	2021.9.30 $ 112,111 40,355 (68,504) (11,074) $ 72,888		2020.12.31 138,640 15,264 (53,503) -	2020.12.31 138,640 15,264 (53,503) -	2020.12.31 138,640 15,264 (53,503) -				2020.9.30 137,346 17,162 (50,837) -
		$							100,401				103,671
		$			3,061				4,217				4,354
													January to September, 2020
	$ 52,747				43,017				123,581				129,405
	$ (9,522) (2,385)				(3,612) 1,618				(20,473) (7,040)				(4,792) (1,013)
	$ (11,907)				(1,994)				(27,513)				(5,805)
	$		(399)		(152)				(859)				(201) (244)
			(500)						(1,156)

～ 18 ～

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

(i) Property, plant and equipment

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

Cost or deemed cost: Balance at January 1, 2021 Additions Reclassification Disposals Effect of movements in exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Additions Reclassification Disposals Effect of movements in exchange rates Balance at September 30, 2020 Depreciation: Balance at January 1, 2021 Depreciation for the year Disposals Effect of movements in exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Depreciation for the year Disposals Effect of movements in exchange rates Balance at September 30, 2020 Carrying amounts: Balance at January 1, 2021 Balance at September 30, 2021 Balance at January 1, 2020 Balance at September 30, 2020	Land $ 23,940 - - - (529) $ 23,411 $ 25,201 - - - (740)	Building and construction	Machinery and equipment	Machinery and equipment	Office equipment	Other	Total
		1,048,089 1,769 - (65) (1,253)		2,402,579 6,580 8,954 (41,871) (3,285) 2,372,957 2,384,197 3,802 6,075 - (1,624)	28,273 518 - - (243)	146,461 27,651 (8,954) (7,618) (207)	3,649,342 36,518 - (49,554) (5,517)
		1,048,540			28,548	157,333	3,630,789
		1,047,550 438 272 - (1,004)			28,331 170 - (29) (139)	133,476 14,157 (6,347) (84) (32)	3,618,755 18,567 - (113) (3,539)
	$ 24,461	1,047,256		2,392,450	28,333	141,170	3,633,670
	$ - - - -	817,727 10,641 (65) (835)		2,355,670 14,009 (41,871) (3,171)	27,246 248 - (223)	117,385 11,693 (5,113) (127)	3,318,028 36,591 (47,049) (4,356)
	$ -	827,468		2,324,637	27,271	123,838	3,303,214
	$ - - - -	800,136 13,225 - (469)		2,330,684 16,403 - (1,565)	26,927 420 (29) (116)	95,053 18,478 (84) (22)	3,252,800 48,526 (113) (2,172)
	$ -	812,892		2,345,522	27,202	113,425	3,299,041
	$ 23,940	230,362		46,909	1,027	29,076	331,314
	$ 23,411	221,072		48,320	1,277	33,495	327,575
	$ 25,201	247,414		53,513	1,404	38,423	365,955
	$ 24,461	234,364		46,928	1,131	27,745	334,629

～ 19 ～

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

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 which were recognized in right-of-use assets were as follows ：

Right-of-use assets cost： Balance at January 1, 2021 Additions Effect of movements in exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Additions Other reduction Disposals Effect of movements in exchange rates Balance at September 30, 2020 Depreciation： Balance at January 1, 2021 Depreciation for the year Effect of movements in exchange rates Balance atSeptember 30, 2021 Balance at January 1, 2020 Depreciation for the year Disposals Effect of movements in exchange rates Balance atSeptember 30, 2020 Carrying amounts: Balance at January 1, 2021 Balance atSeptember 30, 2021 Balance at January 1, 2020 Balance atSeptember 30, 2020		Land $ 66,409 - - $ 66,409	Building and construction	Transportation equipment		Total 94,639 24,327 (1,370)
			27,904 23,980 (1,359)	326 347 (11)
			50,525	662		117,596
		$ 67,226 - (817) - - $ 66,409	23,509 4,321 - - (198)	214 341 - (213) (10)		90,949 4,662 (817) (213) (208)
			27,632	332		94,373
		$ 5,482 2,041 - $ 7,523	21,893 8,932 (924)	36 210 (2)		27,411 11,183 (926)
			29,901	244		37,668
		$ 2,757 2,044 - - $ 4,801	10,857 8,111 - (56)	128 95 (213) (1) 9		13,742 10,250 (213) (57)
			18,912			23,722
		$ 60,927 $ 58,886 $ 64,469 $ 61,608	6,011 20,624 12,652 8,720	290 418 86 323		67,228
						79,928
						77,207
						70,651

(k) Investment property

Investment property which 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 lease term upon expiry. Subsequent lease term will consult with the lessee and didn't charge contingent lease. Please refer to Note 6(q) for information of the lease income.

～ 20 ～

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

Lease income of leased investment property has a fixed amount. Investment property cost and depreciation of the Group were as follows:

Cost or deemed cost: Balance at January 1, 2021 Effect of changes in foreign exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Additions Effect of changes in foreign exchange rates Balance at September 30, 2020 Depreciation: Balance at January 1, 2021 Depreciation for the year Effect of changes in foreign exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Depreciation Effect of changes in foreign exchange rates Balance at September 30, 2020 Carrying amounts: Balance at January 1, 2021 Balance at September 30, 2021 Balance at January 1, 2020 Balance at September 30, 2020	Land $ 45,333 (1,003)	Building and construction 15,500 (343)		Total 60,833 (1,346)
	$ 44,330	15,157		59,487
	$ 47,720 - (1,401) $ 46,319 $ - - - $ - $ - - - $ - $ 45,333 $ 44,330 $ 47,720 $ 46,319	15,418 895 (475)		63,138 895 (1,876) 62,157 5,675 488 (129)
		15,838
		5,675 488 (129)
		6,034		6,034
		5,304 494 (168)		5,304 494 (168)
		5,630		5,630
		9,825 9,123 10,114 10,208		55,158 53,453 57,834 56,527

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.

～ 21 ～

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

(l) Intangible assets

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

Balance at January 1, 2021 Individual acquisition Disposals Effects of changes in foreign exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Individual acquisition Disposals Effects of changes in foreign exchange rates Balance at September 30, 2020 Amortization: Balance at January 1, 2021 Amortization Disposals Effects of changes in foreign exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Amortization Disposals Effects of changes in foreign exchange rates Balance at September 30, 2020 Carrying amounts: Balance at January 1, 2021 Balance at September 30, 2021 Balance at January 1, 2020 Balance at September 30, 2020	Patent $ 2,888 209 (162) - $ 2,935 $ 3,557 191 (965) - $ 2,783 $ 1,433 193 (162) - $ 1,464 $ 2,137 200 (965) - $ 1,372 $ 1,455 $ 1,471 $ 1,420 $ 1,411	Computer software cost 9,477 55 (953) (18) 8,561 8,018 1,368 - (19) 9,367 6,821 725 (953) (18) 6,575 5,661 926 - (19) 6,568 2,656 1,986 2,357 2,799		Total
				12,365 264 (1,115) (18) 11,496 11,575 1,559 (965) (19) 12,150 8,254 918 (1,115) (18) 8,039 7,798 1,126 (965) (19) 7,940 4,111 3,457 3,777 4,210

Intangible assets were not pledged as collateral.

～ 22 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(m) Short-term loans

The details of short-term loans were as follows:

Letters of credit loans Unsecured bank loans Total Unused lines of credit Range of interest rates	September30, 2021 $ 44,445 150,000 $ 194,445 $ 1,973,567 0.70%~0.8006%		December 31,2020 - 700,000 700,000 1,173,097 0.80%~0.85%	September30, 2020 17,469 989,000 1,006,469 814,328 0.80%~1.11%

Short-term loans were not pledged as collateral.

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

(n) Other payables

Salaries and wages payables Year-end bonus payables Employee remuneration payables Directors’ and supervisors’ remuneration payables Employee benefit liabilities Others	September 30,2021 $ 50,260 40,000 11,024 6,615 29,021 122,042 $ 258,962	December 31,2020 47,042 68,000 14,683 8,810 34,270 101,713 274,518		September 30,2020 43,899 45,000 13,171 7,903 33,625 114,343
				257,941

(o) Long-term loans

The details of long-term loans were as follows:

Commercial paper payable Less: discount on long-term loans Total Recognized in: Long-term loans Unused lines of credit Range of interest rates	September 30,2021 $ 400,000 (1,387) $ 398,613 $ 398,613 $ 400,000 1.1543%	December 31,2020	September 30,2020 - - - - 800,000 -
		- -
		- - 800,000
		-

～ 23 ～

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 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 1.25%. 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 $140,000 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	September 30,2021 $ 12,195	December 31,2020	September 30,2020 9,316 63,144
		7,325
	$ 70,375	61,833

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

The amounts recognized in profit or loss were as follows ：

～ 24 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Interest on lease liabilities Expenses relating to short-term leases Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets Rent concessions due toCOVID-19 The amounts recognized in the statement of Total cash outflow for leases	July to September, 2021	July to September, 2020	January to September, 2021	January to September, 2020
	$ 840	630	2,325	1,972
	$ 510	540	1,324	1,532
	$ 59 $ -	60 179 183 174 - 1,355 the Group were as follow： For the nine months ended September 30 2021 2020 $ 14,207 11,902	179 -
	cash flows for
		2021 $ 14,207

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

(q) Operating lease

There was no increase for operating lease for the nine months ended September 30, 2021. 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	July to September, 2021	July to September, 2020	January to September, 2021	January to September, 2020 866 43 136 102 1,147
	$ 227 13 38 27	291 13 45 33	686 37 110 81
	$ 305	382	914

～ 25 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(ii) Defined contribution plan

Cost recognized in expense was as below ：

Operating cost Selling expenses General and administrative expenses Research and development expenses	July to September, 2021	July to September, 2020	January to September, 2021	January to September, 2020
	$ 6,717 909 464 689	4,825 1,323 392 709	18,454 3,730 1,640 2,067	14,756 3,893 1,209 2,083
	$ 8,779	7,249	25,891	21,941

(s) Income tax

Income tax expense for the period was best estimated by multiplying pretax income for the interim reporting period with the effective annual tax rate as forecasted by management. The amounts of income tax expense (benefit) were as follows ：

Current tax expense(benefit) Current Adjust previous current tax Deferred tax expense (benefit) Origination and reversal of temporary differences Income tax expense	July to September, 2021	July to September, 2020	January to September, 2021	January to September, 2020
	$ 13,391 - 13,391	10,943 - 10,943	28,556 (6,878)	42,150 (3,578)
			21,678	38,572
	(8)	(20)	9	176
	$ 13,383	10,923	21,687	38,748

For the nine months ended September 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	July to September, 2021	July to September, 2020 (126)	January to September, 2021		January to September, 2020
	$ 29		(112)		156

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.

～ 26 ～

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

(t) Share capital and other equity

The Group had no share capital change for the nine months ended September 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 September 30, 2021, December 31 and September 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 were 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 were 148,613thousand shares.

(ii)Capital surplus

Capital surplus was as follows ：

Treasury stock Disgorgement Return of employee stock ownership trust repayment cost	September 30,2021 $ 25,503 473 1	December 31,2020	September 30,2020 14,950 - -
		14,950 473 - 15,423
	$ 25,977		14,950

(iii) Earnings distribution

The appropriations of earnings for 2020 and 2019 have been approved to distribute cash dividend in the meeting of the board of directors held on March 10, 2021 and June 20, 2020, respectively. The appropriation and dividend per share were as follows ：

Cash dividend to shareholders (TWD) Cash v) Other equity Balance at January 1, 2021 －Changes of the Group －Disposal of investments in equity instrument at FVOCI Balance at September 30, 2021	$ Foreign exchange differences arising from foreign **operation **	$	2020 1.2		2018 1.2
					Total
	$ (18,296) (10,900) -				(117,815) 6,803 (23,542) (134,554)
	$ (29,196)

(iv) Other equity

～ 27 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Balance at January 1, 2020 －Changes of the Group －Disposal of investments in equity instrument at FVOCI Balance at September 30, 2020	Foreign exchange differences arising from foreign operation	Unrealized gains (losses) on financial assets measured at FVOCI (88,501) (29,362) (5,612)	Total (102,612) (33,259) (5,612) (141,483)
	$ (14,111) (3,897) - $ (18,008)
		(123,475)

(v) Treasury stock

The changes of treasury stocks were as follows ：

(Expressed in thousands of shares)

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

As of September 30, 2021, December 31 and September 30, 2020, the cost 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 nine months ended September 30, 2021 and 2020, Ying Dar Corp. and Bae Haw Corp. did not purchase or dispose any of the Company’s shares. As of September 30, 2021, December 31, 2020 and September 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 September 30, 2021, December 31 and September 30, 2020, their market values amounted to $156,980, $169,292and $151,703, respectively.

(u) Earnings per share

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

～ 28 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Basic earnings per share Profit attributable to owners of parent Weighted-average number of ordinary shares at end of year (expressed in thousands of shares) Expressed in New Taiwan dollars Diluted earnings per share Profit attributable to owners of parent Weighted-average number of ordinary shares at end of year (expressed in thousands of shares) Effect of potentially dilutive ordinary stock: －Employee bonus (expressed in thousands of shares) Weighted-average number of ordinary shares- diluted (expressed in thousands of shares) Expressed in New Taiwan dollars		July to September, 2021		July to September, 2020		January to September, 2021		January to September, 2020
	$	71,592 148,613		62,213 148,613		182,537		206,726 148,613 1.39 206,726 148,613 1,029 149,642 1.38
						148,613
	$	0.48		0.42		1.23
		$ 71,592		62,213		182,537
		148,613 256		148,613 231		148,613 806
		148,869		148,844		149,419
	$	0.48		0.42		1.22

In computing above basic earnings (loss) per share of ordinary stock for the nine months ended September 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.

～ 29 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(v) Revenue from Contracts with Customers

• (i) Disaggregation of revenue

Primary geographical markets: Europe USA Others Total Major products: Liquid crystal display modules Capacitive touch panel and module Others Total Primary geographical markets: Europe USA Others Total Major products: Liquid crystal display modules Capacitive touch panel and module Others Total	Domestic $ 606,225 - 170,438	July to September 2021	July to September 2021	Total 606,971 252,870 234,393
		North America - 252,870 63,847	Other operating department 746 - 108
	$ 776,663	316,717	854	1,094,234
	$ 212,108 549,287 15,268	115,956 187,695 13,066	- - 854	328,064 736,982 29,188
	$ 776,663	316,717	854	1,094,234
	Domestic $ 625,137 - 121,818			Total 626,933 140,588 202,366
		North America 1,688 140,588 80,542	Other operating department 108 - 6
	$ 746,955	222,818	114	969,887
	$ 176,411 564,029 6,515	105,222 102,214 15,382	- - 114	281,633 666,243 22,011
	$ 746,955	222,818	114	969,887

～ 30 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

January to September 2021 Domestic North America Other operating department Primary geographical markets: Europe $ 1,770,892 - 1,696 USA 214 630,257 - Others 531,325 145,913 316 Total $ 2,302,431 776,170 2,012 Major products: Liquid crystal display modules$ 540,561 328,968 - Capacitive touch panel and module 1,730,172 426,629 - Others 31,698 20,573 2,012 Total $ 2,302,431 776,170 2,012 January to September2020 Domestic North America Other operating department Primary geographical markets: Europe $ 1,512,075 1,724 357 USA 536 738,069 - Others 370,153 220,051 329 Total $ 1,882,764 959,844 686 Major products: Liquid crystal display modules$ 570,452 372,669 - Capacitive touch panel and module 1,291,474 562,461 - Others 20,838 24,714 686 Total $ 1,882,764 959,844 686 (ii) Contract balance September 30,2021 December 31,2020 Accounts receivable (including related parties) $ 720,673 595,163 Less: allowance for impairment (7,432) (5,613) Total $ 713,241 589,550	Domestic $ 1,770,892 214 531,325	Domestic $ 1,770,892 214 531,325	January to September 2021	January to September 2021	January to September 2021	January to September 2021	Total 1,772,588 630,471 677,554 3,080,613 869,529 2,156,801 54,283 3,080,613 Total 1,514,156 738,605 590,533 2,843,294 943,121 1,853,935 46,238 2,843,294 September 30,2020 639,447 (19,395) 620,052
			North America - 630,257 145,913		Other operating department 1,696 - 316
	$ 2,302,431		776,170		2,012
	$ 540,561 1,730,172 31,698		328,968 426,629 20,573		- - 2,012
	$ 2,302,431		776,170		2,012
	Domestic $ 1,512,075 536 370,153
			North America 1,724 738,069 220,051		Other operating department 357 - 329
	$ 1,882,764		959,844		686
	$ 570,452 1,291,474 20,838		372,669 562,461 24,714		- - 686
	$ 1,882,764		959,844		686
				595,163 (5,613)
		$ 713,241		589,550

～ 31 ～

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

Contract liability－Unearned revenue (recognized in other current liabilities)	September 30,2021 $ 42,835	December 31,2020	September 30,2020 33,259
		33,286

Please refer to Note 6(d) for accounts receivables and impairment. The amount of revenue recognized for the three months and nine months ended September 30, 2021 and 2020, that was included in the contract liability balance at the beginning of the period were $1,331, $937, $4,059 and $3,682 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 remuneration. The aforementioned employee remuneration will be distributed in cash or stock to employees who satisfy certain specifications of the Group and its affiliates.

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

Employee remuneration Directors’ and supervisors’ remuneration	July to September, 2021	July to September, 2020	January to September, 2021	January to September, 2020
	$ 4,577	3,977	11,024	13,171
	$ 2,747	2,387	6,615	7,903

The above amount were estimated as the Company’s net income before tax, excluding remuneration of employees and remuneration of directors and supervisors, multiplied by the appropriate percentage in compliance with the Company’s articles. These expenses were recognized in operating costs and operating expenses for the respective period. In case the variances between actual and estimated expenses occur during next year, the variances concerned will be recognized in next year’s profit. If the Company’s Board of Directors resolve to issue its stocks as the remuneration of employees, it will be calculated based on the closing price of its stock on the day before the approval by of Directors. The accrued compensation of employees amounted to $14,683 and $16,362 for 2020 and 2019, respectively, and the accrued remuneration of directors’ and supervisor’s amounted to $8,810 and $9,817 respectively. Actual distribution had no difference with accrued amounts. The previous distribution of compensation to employees, remuneration of directors and supervisors approved by Board of Directors for related information, please go to website: http://emops.twse.com.tw.

• (x) Other operating income and expenses

Other operating income and expenses were lease income of leased investment property.

～ 32 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(y) Non-operating income and expenses

• (i) Interest income

Details of Interest income were as follows ：

Bank deposits Others	July to September, 2021	July to September, 2020	January to September, 2021	January to September, 2020
	$ 31 5	1,664 17	1,095 23	8,412 77
	$ 36	1,681	1,118	8,489

• (ii) Other income

Details of other income were as follows ：

Dividend Revenue Others	July to September, 2021	July to September, 2020	January to September, 2021	January to September, 2020
	$ 17,528 19	6,542 2,753	27,398 190	9,272 6,094
	$ 17,547	9,295	27,588	15,366

• (iii) Other gains and losses

Details of other gains and losses were as follows ：

Foreign exchange gains (losses) Net gains (losses) on disposal of financial assets (liabilities) measured at fair value through profit or loss Net gainson disposal of property, plant and equipment Others	July to September, 2021	July to September, 2020	January to September, 2021	January to September, 2020
	$ 2,532 1,152 - (791)	(30,740) 1,880 - -	(21,298) 5,853 436 (795)	(33,366) (2,339) - (205)
	$ 2,893	(28,860)	(15,804)	(35,910)

• (iv) Finance costs

Details of finance costs were as follows ：

Interest expenses Bank loans Lease liability Management fee of syndicated loan	July to September, 2021	July to September, 2020	January to September, 2021	January to September, 2020
	$ 1,525 840 50	2,263 630 125	4,365 2,325 150	6,571 1,972 250
	$ 2,415	3,018	6,840	8,793

～ 33 ～

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

(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 is the carrying amount of financial assets and contract assets.

• 2) Concentration of credit risk

As of September 30, 2021, two customers accounted for 40.63%, of total accounts receivable balance. As of December 31, and September 30, 2020, one customer accounted for 45.56% and 43.19% of total accounts receivable.

• 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.

～ 34 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

September 30, 2021 Non-derivative financial liabilities Secured Long-term loans(including long term loans, current portion) (floating rate) Unsecured loans (floating rate) Accounts payable(non-interest bearing) Notes payable (non-interest bearing) Other payable (non-interest bearing) Lease liability (fixed interest rate) Guarantee deposits received (non-interest bearing ) Derivative financial liabilities Forward exchange contract： Cash in Cash out December 31, 2020 Non-derivative financial liabilities Unsecured loans (floating rate) Accounts payable(non-interest bearing) Notes payable (non-interest bearing) Other payable (non-interest bearing) Lease liability (fixed interest rate) Guarantee deposits received (non-interest bearing ) Derivative financial liabilities Swap Contract： Cash in Cash out September 30, 2020 Non-derivative financial liabilities Unsecured loans (floating rate) Accounts payable(non-interest bearing) Notes payable (non-interest bearing) Other payable (non-interest bearing) Lease liability (fixed interest rate) Guarantee deposits received (non-interest bearing ) Derivative financial liabilities Swap Contract： Cash in Cash out	Carrying amount $ 398,613 194,445 518,821 185 258,962 82,570 547 12	Contracted cash flows (420,088) (194,619) (518,821) (185) (258,962) (115,632) (547) 6,961 (6,963)	Due within 6 months (2,290) (194,619) (518,821) (185) (258,962) (8,017) - 6,961 (6,963) (982,896)	Due in 6-12months (2,315) - - - - (7,133) - - -	Due in 1-2years (4,617) - - - - (12,310) - - - (16,927)	Due in 2-5years (410,866) - - - - (15,333) (547) - - (426,746)	Due in over 5 years - - - - - (72,839) - - -
	$ 1,454,155	(1,508,856)		(9,448)			(72,839)
	$ 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)
	$ 1,006,469 431,507 1,416 257,941 72,460 570 1,580	(1,007,218) (431,507) (1,416) (257,941) (106,105) (570) 174,600 (175,935)	(1,007,218) (431,507) (1,416) (257,941) (7,273) - 174,600 (175,935)	- - - - (4,241) - - -	- - - - (5,861) (34) - -	- - - - (11,918) (536) - -	- - - - (76,812) - - -
	$ 1,771,943	(1,806,092)	(1,706,690)	(4,241)	(5,895)	(12,454)	(76,812)

～ 35 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

(iii) Market Risk

• 1) Exchange rate risk

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

September 30, 2021 Foreign currency Exchange rate TWD amount Financial assets Monetary items USD $ 56,062 27.85 1,561,324 JPY 26,474 0.249 6,592 CNY 763 4.305 3,284 EUR 115 32.32 3,711 Non-monetary items USD 692 27.85 19,262 Financial liabilities Monetary items USD 23,783 27.85 662,354 JPY 17,281 0.249 4,303 EUR - - - Non-monetary items USD 250 27.85 6,963	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 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 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 14,997 28.48 427,119 16,437 0.2763 4,541 72 35.02 2,534 1,000 28.48 28,480	September 30, 2020 Foreign currency Exchange rate TWD amount 75,809 29.10 2,206,042 16,429 0.2756 4,528 1,837 4.270 7,843 288 34.15 9,846 3,385 29.10 98,498 16,009 29.10 465,853 26,846 0.2756 7,399 - - - 6,000 29.10 174,600	September 30, 2020 Foreign currency Exchange rate TWD amount 75,809 29.10 2,206,042 16,429 0.2756 4,528 1,837 4.270 7,843 288 34.15 9,846 3,385 29.10 98,498 16,009 29.10 465,853 26,846 0.2756 7,399 - - - 6,000 29.10 174,600
	Foreign currency 62,555 52,538 4,021 75 2,566 14,997 16,437 72 1,000	Exchange rate 28.48 0.2763 4.377 35.02 28.48 28.48 0.2763 35.02 28.48	Foreign currency 75,809 16,429 1,837 288 3,385 16,009 26,846 - 6,000	Exchange rate 29.10 0.2756 4.270 34.15 29.10 29.10 0.2756 - 29.10

The foreign currency risk was mainly incurred from the translation of cash and cash equivalents, accounts receivable, other receivables, financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, accounts payable, and other payables. As of September 30, 2021 and 2020, the exchange rate of the TWD versus the USD, CNY, JPY, and EUR increases or decreases by 1%, given no changes in other factors, profit after tax will increase or decrease by $6,839 and $11,468, respectively, and equity will increase or decrease by $110 and $108, respectively. The analysis assumes that all other variables remain constant.

The Group has variety kinds of functional currencies; hence we use summarized method to disclose exchange gain or loss of monetary items. For the three months and the nine months ended September 30, 2021 and 2020, the exchange gains or loss (including realized and unrealized) that resulted from monetary items translated to the functional currency was $2,532, ($30,740), ($21,298) and ($33,366), respectively.

• 2) Interest rate risk

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 non-derivative 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.

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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 nine months ended September 30

2021 Increase 0.25% Decrease 0.25% After-tax loss After-taxprofit $ 892 892	2020 Increase 0.25% Decrease 0.25% After-tax loss After-tax profit 1,510 1,510	2020 Increase 0.25% Decrease 0.25% After-tax loss After-tax profit 1,510 1,510
		Decrease 0.25% After-tax profit 1,510

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 ：

For the nine months ended September 30

Equity price at reporting date Increase 3% Decrease 3%	2021 Other comprehensive income after tax Netprofit(loss) $ 13,195 133 $ 13,195 133	2020 Other comprehensive income after tax Netprofit(loss) 7,647 2,344 7,647 2,344

(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.

Financial assets at FVTPL Dual currency investment contract Financial assets at FVOCI Equity instrument with quoted market prices 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				September 30, 2021	September 30, 2021	September 30, 2021	Amount 5,517 349,117 93,442 - - - - -
		Carrying Amount $ 5,517			Fai	r value
				Level 1 - 349,117 - - - - - -	Level 2	Level 3 7 - - 93,442 - - - - -
					5,51 - - - - - - -
		349,117 93,442
		442,559
		844,876 713,241 2,263 2,049 11,009
		1,573,438
	$ 2,021,514

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

September 30, 2021

Financial liabilities at FVTPL Forward exchange contract Financial liabilities at amortized cost Bank loans Notes payable Account payable Other payable Lease liability Guarantee deposits received Subtotal Total Financial assets at FVTPL Debt instrument with quoted market prices Financial assets at FVOCI Equity instrument with quoted market prices 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	Carrying Amount $ 12				Fair	Fair	value	Amount 12 - - - - - - Amount 58,817 160,625 97,826 - - - - - 195 - - - - -
				Level 1 Level 2 Level 3 - 12 - - - - - - - - - - - - - - - - - - - December 31, 2020
	593,058 185 518,821 258,962 82,570 547
	1,454,143
	$ 1,454,155
	Carrying Amount					Fair	value
				Level 1 58,817 160,625 - - - - - - - - - - - - -		Level 2	Level 3 - - 97,826 - - - - - - - - - - - -
	$ 58,817					- - - - - - - - 195 - - - - - -
	160,625 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

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Financial assets at FVTPL Derivative financial assets Debt instrument with quoted market prices Subtotal Financial assets at FVOCI Equity instrument with quoted market prices 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 Account payable Other payable Lease liability Guarantee deposits received Subtotal Total			September 30, 2020	September 30, 2020	September 30, 2020	Amount 30 89,276 170,901 86,653 - - - - - 1,580 - - - - - -
	Carrying Amount $ 30 89,276			Fair	value
			Level 1 - 89,276 170,901 - - - - - - - - - - - - -	Level 2 30 - - - - - - - - 1,580 - - - - - -	Level 3 - - - 86,653 - - - - - - - - - - - -
	89,306
	170,901 86,653
	257,554
	1,483,745 620,052 6,373 2,091 10,066
	2,122,327
	$ 2,469,187
	$ 1,580
	1,006,469 1,416 431,507 257,941 72,460 570
	1,770,363
	$ 1,771,943

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.

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

• 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 and Forward exchange contract 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 nine months ended September 30, 2021 and 2020.

• 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 September 30, 2021 Balance at January 1, 2020 Recognized in other comprehensive income Balance at September 30, 2020	Financial assets at fair value through other comprehensive income Unquoted equity instruments $ 97,826 (4,384) $ 93,442 $ 139,872 (53,219) $ 86,653

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

• 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 FVOCI - equity investments without an active market Financial assets at FVOCI - equity investments without an active market	Valuation technique Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement Discounted Cash Flow Method ‧Continuing growth rate (as of September 30,2021, December 31,2020 and September 30, 2020 ranged from 0.48%、0.48% and 2.10% respectively) ‧Weighted average cost of capital (as of September 30,2021, December 31,2020 and September 30, 2020 ranged from 10.20%、 10.52% and 9.79% respectively) ‧Market illiquidity discount rate (as of September 30,2021, December 31,2020 and September 30, 2020 ranged from 65.40%、 60.73% and 52.61% respectively) ‧Non-controlling interests discount rate (as of September 30,2021, December 31,2020 and September 30, 2020 were 29.87%) ‧The higher the continuing growth rate, the higher the fair value. ‧The higher the WACC, the lower the fair value. ‧The higher the market illiquidity discount rate, the lower the fair value. ‧The higher the non-controlling interests discount rate, the lower the fair value. Net assets value Method ‧Net assets value ‧Not applicable	Inter-relationship between significant unobservable inputs and fair value measurement

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

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 September 30, 2021 Continuing growth rate 0.48% Weighted average cost of capital 10.20% Market illiquidity discount rate 65.40% Non-controlling interests discount rate 29.87%	Changes in fairvalue reflected inOCI Fluctuation in inputs Favorable Unfavorable 0.1% $ 700 700 0.1% 910 910 1% 2,100 2,100 1% 1,050 1,050	Changes in fairvalue reflected inOCI	Changes in fairvalue reflected inOCI
				Unfavorable
				700 910 2,100 1,050

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

	Inputs 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% Inputs September 30, 2020 Continuing growth rate 2.10% Weighted average cost of capital 9.79% Market illiquidity discount rate 52.61% Non-controlling interests discount rate 29.87%	Changes in fair value reflected in OCI Fluctuation in inputs Favorable Unfavorable 0.1% $ 700 700 0.1% 350 350 1% 1,960 1,960 1% 1,120 1,120 Changes in fair value reflected in OCI Fluctuation in inputs Favorable Unfavorable 0.1% $ 1,050 1,050 0.1% 1,260 1,260 1% 1,470 1,470 1% 980 980	Changes in fair value reflected in OCI	Changes in fair value reflected in OCI
				Unfavorable
				Unfavorable
				1,050 1,260 1,470 980

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.

(bb) 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.

(ab) 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：

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Short-term loans Long-term loans (including long term loans, current portion) Lease liabilities Guarantee deposits Total liabilities from financing activities 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 January 1, 2020 $ 400,000 319,555 78,482 587 $ 798,624	Cash flows (505,445) 400,000 (10,464) -	Cash flows (505,445) 400,000 (10,464) -				Non-cash changes	Non-cash changes	Non-cash changes			September 30, 2021 194,445 398,613 82,570 547
					Foreign exchange movement (110) - (451) (11)		Amortized - 213 - -		Other (Note2) - - 24,327 -	Changes of lease payments - - - -
		(115,909		)	(572)		213		24,327	- Changes of lease payments - - (1,355) - (1,355)		676,175
		Cash flows 606,727 (320,000) (8,356) - 278,371										September 30, 2020
				Foreign exchange movement (258) - (156) (17) (431)			Amortized - 445 - - 445		Other - - 3,845 - 3,845
												1,006,469 - 72,460 570 1,079,499

(Note 1) Prepaid expense related to syndicated loan

(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	July to September, 2021	July to September, 2020	January to September, 2021	January to September, 2020
	$ 10,339 170 - - -	5,280 104 - - -	24,941 382 - - -	18,569 311 - - -
	$ 10,509	5,384	25,323	18,880

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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	September 30,2021 $ 1,534 515 174,872	December 31,2020	September 30,2020
		1,525 526 - 2,051	1,554 537 - 2,091
	$ 176,921

(9) Commitments and Contingencies

• (a) As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group’s unused letters of credit for purchases of raw materials, machinery and equipment amounted to $ 4,788, $ 4,422 and $ 7,445, respectively.

• (b) As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group has signed contracts for the purchase of equipment. The unrecognized contingencies of contracts for the purchase of equipment amounted to $ 7,647, $ 1,995 and $ 1,567, respectively.

• (c) As of September 30, 2021, the Group has signed contracts for the purchase of office. The unrecognized contingencies of contracts for the purchase of equipment amounted to $ 6,127.

(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	July to September	July to September	July to September	July to September	July to September	July to September
	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	144,535 12,234 71	58,620 3,491 228	203,155 15,725 299	127,155 15,250 69	62,275 3,379 293	189,430 18,629 362
By function By item	January to September
	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	390,523 37,725 213	180,556 10,537 705	571,079 48,262 918	360,805 48,147 237	188,845 9,768 889	549,650 57,915 1,126

NOTE: The Government subsidy related to COVID-19 for the three months and nine months ended September 30, 2021 and 2020, amounted to $7,832, $ 1,259, $7,832and $3,318, respectively, and was recognized in decrease of Employee benefits.

• (b) Seasonal operation ： The operation of the Group hadn’t been affected by either seasonal or periodical

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

factors.

(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 nine months ended September 30, 2021 were as follows ：

• (i) Loans extended to other parties ： None

(ii) Guarantees provided to other parties: None

(iii) Securities owned as of September 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		September 30,2021	September 30,2021	September 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 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 E.SUN Financial Holding Co., Ltd. Quanta Computer Inc. stock Synnex Technology International Co. , Ltd. stock Pegatron Co., Ltd. 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 Dual Currency Investment contract 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 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	1,749,300 1,000,000 13,845 1,147,089 801,972 699,000 890,000 216,000 300,000 620,000 1,236,000 790,000 459,345 480,000 2,000 - 550,000 5,346,672 1,000,000 395,000 3,447,716 6,000,000	19,662 10,540 864 19,501 21,092 54,172 46,458 14,472 23,100 38,750 39,614 40,290 5,834 10,536 13,692 5,517 12,072 95,438 - 8,670 61,542 63,240	5.25% 1.37% - 0.01% 0.01% 0.02% 0.05% 0.01% 0.04% 0.03% 0.01% 0.01% 0.32% 0.78% 0.01% - 0.90% 3.29% 1.47% 0.65% 2.12% 8.22%	19,662 10,540 864 19,501 21,092 54,172 46,458 14,472 23,100 38,750 39,614 40,290 5,834 10,536 13,692 5,517 12,072 95,438 - 8,670 61,542 63,240	- - - - - - - - - - - - - - - - (Note) - - (Note) -

Note: It was eliminated in the consolidation.

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

• (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.

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

• (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	Relations hip	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. The Company Dong Guan Emerging Display Limited	Emerging Display Technologies Corp., U.S.A. The Company Dong Guan Emerging Display Limited The Company	Subsidiary of the Company Subsidiary of the Company Sub-subsid iary of the Company Sub-subsid iary of the Company	Sale Purchase Purchase (processing cost) Sale (processing revenue)	713,056 713,056 123,581 123,581	23.65% 100.00% 6.00% 100.00%	3 months 3 months 1~3 months 1~3 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. The Company is the only entity that Dong Guan Emerging Display Limited provides processing service to. There is no comparable transaction. The Company is the only entity the sub-subsidiary provides processing service to. There is no comparable transaction.	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. The Company is the only entity the sub-subsidiary provides processing service to. The Company is the only entity the sub-subsidiary provides processing service to.	238,781 (238,781) (16,755) 16,755	31.14% 100.00% 3.47% 100.00%	(Note) (Note) (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	Relationsh ip	Balance of amount	Turnover ratio	Overdue	Overdue	Amount collected in the subsequent period	Allowance for doubtful accounts	Remarks
					Amount	Amount
The Company	Emerging Display Technologies Corp., U.S.A.	Subsidiary of the Company	Account receivables of 238,781	4.31	-	-	31,976	-	(Note)

Note: It was eliminated in the consolidation.

• (ix) Derivative financial instrument transactions ：

Please refer to note 6(b).

(x) Significant inter-Group transactions ：

)	Significant in	ter-Grouptra	nsactions	：
No.	Name	Counterparty	Relationship (Note)		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 receivable	713,056 238,781	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.	23.15% 6.60%
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	48,096 7,607	No non-related-party transaction to compare to.	1.56% 0.21%

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

No.	Name	Counterparty	Relationship (Note)		Details of transaction	Details of transaction
				Subject	Amount	Term of trading	% of total consolidated revenue or total asset
0	The Company	Emerging Display Technologies Korea	1	Selling expenses -Commission	2,955 t	No non-related-party ransaction to compare to.	0.10%
0	The Company	EDT-Japan Corp.	1	Selling expenses -Commission	10,280 t	No non-related-party ransaction to compare to.	0.33%
0	The Company	Dong Guan Emerging DisplayLimited	1	Processing cost Accountspayable	123,581 16,755 t	No non-related-party ransaction to compare to.	4.01% 0.46%

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

(b) Information on investees ：

Relevant information about investees for the nine months ended September 30, 2021 was as follows:

Name of investor	Name of investee	Location	Business Scope	Original cost of investment	Original cost of investment	Held at the end of	Held at the end of	term	Net income (loss) of the investee	Investment income (less) recognized	Remarks
				September 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%	90,031 (Note 1)	10,014	10,088	Subsidiary (Note 2)
The Company	Emerging Display International(Samoa)Corp.	Samoa	Investment holding	180,503	180,503	5,984,071	78.49%	57,210	(20,473)	(16,069)	Subsidiary (Note 2)
The Company	EDT-Europe ApS	Denmark	Customer service and business support	2,077	2,077	125,000	100.00%	5,338	3,826	3,826	Subsidiary (Note 2)
The Company	Emerging Display Technologies Korea	Korea	Business support	1,677	1,677	58,212,500	100.00%	1,509	224	224	Subsidiary (Note 2)
The Company	EDT-Japan Corp.	Japan	Customer service and business support	17,401	17,401	5,000	100.00%	6,459	1,705	1,705	Subsidiary (Note 2)
The Company	Ying Dar Investment Development Corp.	Taiwan	Investment	89,000	89,000	8,900,000	100.00%	25,123	5,645	5,645	Subsidiary (Note 2)
The Company	Bae Haw Investment Development Corp.	Taiwan	Investment	89,000	89,000	8,900,000	100.00%	37,352	2,081	2,081	Subsidiary (Note 2)
The Company	Ying cheng Investment Corp.	Taiwan	Investment	84,000	84,000	8,400,000	52.50%	38,420	(12)	(6)	Subsidiary (Note 2)
Ying Dar Investment Development Corp.	Emerging Display International(Samoa)Corp.	Samoa	Investment holding	13,234	13,234	450,000	5.90%	4,300	(20,473)	(1,208)	Subsidiary (Note 2)
Bae Haw Investment Development Corp.	Emerging Display International(Samoa)Corp.	Samoa	Investment holding	25,488	25,488	870,000	11.41%	8,316	(20,473)	(2,336)	Subsidiary (Note 2)

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

Note 1: It was deducted unrealized profit from sales $10,592.

Note 2: 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 January 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 September 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 September 30, 2021	Accumulated investment income repatriated to Taiwan as of September 30, 2021
					Remitt ance	Repatr iation
Dong Guan Emerging Display Limited	Manufactu ring 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)	(20,288)	95.80% (Note2)	loss of $19,435 Based on the investee’s financial statements audited by the same auditor as the Group (Note 3)	61,344 (Note4)	-

• (ii) Limitation on investments in Mainland China:

Accumulated investment amount remitted from Taiwan to Mainland China as of September 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
193,131(Note 8) (US$6,934,668)(Note5)	388,556 (Note8) (US$13,951,732)(Note6)	1,302,130 (Note7)

• Note 1: 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 $1,197 which was recognized by Ying Dar Investment Development Corp. and a loss of $2,315 which was recognized by Bae Haw Investment Development Corp.

• Note 4: The amount includes $3,778 which was invested by Ying Dar Investment Development Corp. and $7,306 which was invested by Bae Haw Investment Development Corp.

• Note 5: The amount includes the remaining capital amounting to US$188 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 $72,337 for Ying Dar Investment Development Corp. and $59,336 for Bae Haw Investment Development Corp.

• Note 8: Transactions denominated in foreign currencies were recorded using the rate of exchange

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

at September 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 nine months ended September 30, 2021.

• (d) Major shareholders

List of all shareholders with ownership of 5 percent or greater showing the names and the number of

shares and percentage of ownership held by each shareholder:

s andpercentage of ownershipheld byeach shareholder:
Shareholding Shareholder’s Name	Shares	Percentage
Tseng, Jui-Ming	11,043,723	6.8%

• Note 1: 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 consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

• Note 2: 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.

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(14) Segment Information

Reportable segment information was as follows ：

Revenue: Sales to customers other than consolidated entities Sales among consolidated entities Total revenue Segment Income Revenue: Sales to customers other than consolidated entities Sales among consolidated entities Total revenue Segment Income Revenue: Sales to customers other than consolidated entities Sales among consolidated entities Total revenue Segment Income			July to September, 2021	July to September, 2021				Total
	Domestic	North America	Mainland China	Other operating Department		Adjustments and Eliminations
	$ 776,663 300,612	316,717 - 316,717	- 52,747	854 18,979		- (372,338)		1,094,234 -
	$ 1,077,275		52,747	19,833		(372,338)		1,094,234
	$ 79,875	9,395	(9,636)	2,938		2,004		84,576
								Total
	Domestic	North America	Mainland China	Other operating Department		Adjustments and Eliminations
	$ 746,955 199,197	222,818 44	- 43,017	114 19,476		- (261,734)		969,887 -
	$ 946,152	222,862	43,017	19,590		(261,734)		969,887
	$ 73,675	(224)	(3,641)	3,086		88		72,984
								Total
	Domestic	North America	Mainland China	Other operating Department		Adjustments and Eliminations
	$ 2,302,431 712,357	776,170 21	- 123,581	2,012 61,331		- (897,290)		3,080,613 -
	$ 3,014,788	776,191	123,581	63,343		(897,290)		3,080,613
	$ 211,344	10,605	(20,734)	6,787		(4,643)		203,359

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Revenue: Sales to customers other than consolidated entities Sales among consolidated entities Total revenue Segment Income Segment Assets September 30,2021 December 31,2020 September 30,2020 Segment Liabilities September 30,2021 December 31,2020 September 30,2020			January to September, 2020	January to September, 2020			Total 2,843,294 -
	Domestic	North America	Mainland China	Other operating Department		Adjustments and Eliminations
	$ 1,882,764 898,479	959,844 135	- 129,405	686 57,948		- (1,085,967)
	$ 2,781,243	959,979	129,405	58,634		(1,085,967)	2,843,294
	$ 239,347	10,871	(4,187)	4,805		(5,568)	245,268
	Domestic $ 3,351,188	North America	Mainland China 143,612	Other operating Department 29,903		Adjustments and Eliminations (274,998)	Total 3,617,698
		367,993
	$ 3,441,342	310,291	144,865	31,559		(318,868)	3,609,189
	$ 3,698,503	302,884	145,243	33,284		(300,047)	3,879,867
	$ 1,529,994	267,549	79,578	16,577		(264,585)	1,629,113
	$ 1,639,092	217,736	53,503	21,956		(303,663)	1,628,624
	$ 1,956,664	208,053	50,837	20,941		(281,147)	1,955,348

The following is the explanation of material reconciliation item ：

• (a) For the three and nine months ended September 30, 2021 and 2020, the operating segments revenue eliminated from the consolidated entities were $ 372,338, $ 261,734, $ 897,290 and $ 1,085,967, respectively.

• (b) For the three months and nine months ended September 30, 2021 and 2020, the operating segments profit and loss eliminated from the consolidated entities were loss $2,004, loss $88, profit $4,643 and profit $5,568, respectively.

• (c) As of September 30, 2021, December 31, 2020 and September 30, 2020, the operating segments assets eliminated from the consolidated entities were $274,998, $318,868 and $300,047, respectively.

• (d) As of September 30, 2021, December 31, 2020 and September 30, 2020, the operating segments liabilities eliminated from the consolidated entities were $264,585, $303,663 and $281,147, respectively.

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