EDT - Interim / Quarterly Report 2022

Stock Code ： 3038

(English Translation of Financial Report Originally Issued in Chinese)

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

For the three months ended March 31, 2022 and 2021 (With Independent Auditors’ Review Report Thereon)

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

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

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

The Board of Director’s

Emerging Display Technologies Corp

Introduction

We have reviewed the accompanying consolidated balance sheets of Emerging Display Technologies Corp. (the Company) and subsidiaries as of March 31, 2022 and 2021, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2022 and 2021, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

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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 $295,368 thousand and $250,359 thousand, constituting 7.95% and 7.16% of consolidated total assets as of March 31, 2022 and 2021, respectively, total liabilities amounting to $89,963 thousand and $84,730 thousand, constituting 5.26% and 5.25%of consolidated total liabilities as of March 31, 2022 and 2021, respectively, and total comprehensive gain (loss) amounting to gain $17,913 thousand and loss $3,268 thousand, constituting 15.06% and 3.58% of consolidated total comprehensive loss for the three months ended March 31, 2022 and 2021, respectively.

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Qualified Conclusion

Based on our reviews, except for the effects of the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent accountants, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Emerging Display Technologies Corp. and subsidiaries as of March 31, 2022 and 2021, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2022 and 2021 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, Yung Hsiang, Chen and Yen Ta, Su.

KPMG

Taipei, Taiwan (Republic of China) May 3, 2022

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

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2022, December 31, 2021, and March 31, 2021

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

March 31, 2022 Amount ％ $ 855,897 23 31 - 402,375 11 621,889 17 4,185 - 116 - 1,156,704 31 50,642 1	December 31,2021 Amount ％ 816,356 23 42 - 302,101 8 749,530 21 2,823 - 104 - 1,056,165 29 51,997 2	March 31, 2022 Amount ％ $ - - 63 - 20 - 611,226 16 436,417 12 43,434 1 11,208 - 52,554 1 1,154,922 30	March 31, 2022 Amount ％ $ - - 63 - 20 - 611,226 16 436,417 12 43,434 1 11,208 - 52,554 1 1,154,922 30	December 31,2021 Amount ％ - - - - 86 - 559,800 16 290,708 8 29,744 1 11,644 - 55,718 2	December 31,2021 Amount ％ - - - - 86 - 559,800 16 290,708 8 29,744 1 11,644 - 55,718 2	March 31, 2021 Amount ％ 107,963 3 72 - 1,401 - 409,920 12 413,890 12 62,948 2 12,338 - 42,446 2	March 31, 2021 Amount ％ 107,963 3 72 - 1,401 - 409,920 12 413,890 12 62,948 2 12,338 - 42,446 2
		Amount		Amount		Amount 107,963 72 1,401 409,920 413,890 62,948 12,338 42,446
		$ - 63 20 611,226 436,417 43,434 11,208 52,554 1,154,922		- - 86 559,800 290,708 29,744 11,644 55,718
			30	947,700	27	1,050,978	30
3,091,839 83	2,979,118 83	397,898 8 62,040 94,705 561 468	11 - 2 3 - -	398,349 240 68,730 100,977 544 520	11 - 2 3 - -	398,390 278 75,789 86,276 560 675	11 - 2 3 - -
130,869 4 331,622 9 70,097 2 54,609 1 3,416 - 21,743 1 8,876 -	113,460 3 332,762 9 77,475 2 52,967 2 3,685 - 21,737 1 8,239 -
		555,680	16	569,360	16	561,968	16
		1,710,602	46	1,517,060	43	1,612,946	46
621,232 17 $ 3,713,071 100	610,325 17 3,589,443 100	1,574,076 25,253 546,456 (73,494) (122,282)	42 1 15 (2) (3)	1,624,076 25,980 654,787 (104,491) (173,021)	45 1 18 (3) (5)	1,624,076 15,423 453,346 (79,437) (173,021)	47 - 13 (2) (5)
		1,950,009 52,460	53 1	2,027,331 45,052	56 1	1,840,387 42,591	53 1
		2,002,469	54	2,072,383	57	1,882,978	54
		$ 3,713,071	100	3,589,443	100	3,495,924	100

See accompanying notes to financial statements.

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(English Translation of Financial Statements and Report Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income For the three months ended March 31, 2022 and 2021

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

For the three months ended March 31 2022 2021 Amount ％ Amount ％ $ 1,027,899 100 944,762 100 847,429 82 774,124 82 180,470 18 170,638 18 56,557 6 50,797 5 37,892 4 30,342 3 28,613 3 25,374 3 (98) - 205 - 122,964 13 106,718 11 955 - 968 - 58,461 5 64,888 7 112 - 741 - 1,624 - 2,246 - 33,600 3 (5,058) (1) (2,196) - (2,089) - 33,140 3 (4,160) (1) 91,601 8 60,728 6 14,078 1 9,884 1 77,523 7 50,844 5 29,321 3 42,966 5 (232) - (75) - 29,553 3 43,041 5 11,887 1 (2,583) - - - - - 11,887 1 (2,583) - 41,440 4 40,458 5 $ 118,963 11 91,302 10 $ 77,794 7 51,141 5 (271) - (297) - $ 77,523 7 50,844 5 $ 111,555 10 89,519 10 7,408 1 1,783 - $ 118,963 11 91,302 10 $ 0.52 0.34	For the three months ended March 31 2022 2021 Amount ％ Amount ％ $ 1,027,899 100 944,762 100 847,429 82 774,124 82 180,470 18 170,638 18 56,557 6 50,797 5 37,892 4 30,342 3 28,613 3 25,374 3 (98) - 205 - 122,964 13 106,718 11 955 - 968 - 58,461 5 64,888 7 112 - 741 - 1,624 - 2,246 - 33,600 3 (5,058) (1) (2,196) - (2,089) - 33,140 3 (4,160) (1) 91,601 8 60,728 6 14,078 1 9,884 1 77,523 7 50,844 5 29,321 3 42,966 5 (232) - (75) - 29,553 3 43,041 5 11,887 1 (2,583) - - - - - 11,887 1 (2,583) - 41,440 4 40,458 5 $ 118,963 11 91,302 10 $ 77,794 7 51,141 5 (271) - (297) - $ 77,523 7 50,844 5 $ 111,555 10 89,519 10 7,408 1 1,783 - $ 118,963 11 91,302 10 $ 0.52 0.34	For the three months ended March 31 2022 2021 Amount ％ Amount ％ $ 1,027,899 100 944,762 100 847,429 82 774,124 82 180,470 18 170,638 18 56,557 6 50,797 5 37,892 4 30,342 3 28,613 3 25,374 3 (98) - 205 - 122,964 13 106,718 11 955 - 968 - 58,461 5 64,888 7 112 - 741 - 1,624 - 2,246 - 33,600 3 (5,058) (1) (2,196) - (2,089) - 33,140 3 (4,160) (1) 91,601 8 60,728 6 14,078 1 9,884 1 77,523 7 50,844 5 29,321 3 42,966 5 (232) - (75) - 29,553 3 43,041 5 11,887 1 (2,583) - - - - - 11,887 1 (2,583) - 41,440 4 40,458 5 $ 118,963 11 91,302 10 $ 77,794 7 51,141 5 (271) - (297) - $ 77,523 7 50,844 5 $ 111,555 10 89,519 10 7,408 1 1,783 - $ 118,963 11 91,302 10 $ 0.52 0.34	For the three months ended March 31 2022 2021 Amount ％ Amount ％ $ 1,027,899 100 944,762 100 847,429 82 774,124 82 180,470 18 170,638 18 56,557 6 50,797 5 37,892 4 30,342 3 28,613 3 25,374 3 (98) - 205 - 122,964 13 106,718 11 955 - 968 - 58,461 5 64,888 7 112 - 741 - 1,624 - 2,246 - 33,600 3 (5,058) (1) (2,196) - (2,089) - 33,140 3 (4,160) (1) 91,601 8 60,728 6 14,078 1 9,884 1 77,523 7 50,844 5 29,321 3 42,966 5 (232) - (75) - 29,553 3 43,041 5 11,887 1 (2,583) - - - - - 11,887 1 (2,583) - 41,440 4 40,458 5 $ 118,963 11 91,302 10 $ 77,794 7 51,141 5 (271) - (297) - $ 77,523 7 50,844 5 $ 111,555 10 89,519 10 7,408 1 1,783 - $ 118,963 11 91,302 10 $ 0.52 0.34
2022	％ 100 82	2021
Amount $ 1,027,899 847,429		Amount 944,762 774,124

180,470	18	170,638	18
56,557 37,892 28,613 (98)	6 4 3 -	50,797 30,342 25,374 205	5 3 3 -
122,964	13	106,718	11
955	-	968	-
58,461	5	64,888	7
112 1,624 33,600 (2,196)	- - 3 -	741 2,246 (5,058) (2,089)	- - (1) -
33,140	3	(4,160)	(1)
91,601 14,078	8 1	60,728 9,884	6 1
77,523	7	50,844	5
29,321 (232)	3 -	42,966 (75)	5 -
29,553	3	43,041	5
11,887 -	1 -	(2,583) -	- -
11,887	1	(2,583)	-
41,440	4	40,458	5
$ 118,963	11	91,302	10
$ 77,794 (271)	7 -	51,141 (297)	5 -
$ 77,523	7	50,844	5
$ 111,555 7,408	10 1	89,519 1,783	10 -
$ 118,963	11	91,302	10
$	0.52		0.34
$	0.52		0.34

See accompanying notes to consolidated financial statements.

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(English Translation of Financial Statements and Report Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Consolidated Statements of Changes in Stockholders’ Equity For the three months ended March 31, 2022 and 2021

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

		Equity attributable to shareholders of parent	Equity attributable to shareholders of parent	Equity attributable to shareholders of parent	Equity attributable to shareholders of parent	Equity attributable to shareholders of parent			Total Equity 1,980,565
Capital stock $ 1,624,076 - - - - $ 1,624,076 $ 1,624,076 - - - - - (50,000) - $ 1,574,076	Capital surplus	Retained earnings		Unappropriated earnings 405,734 51,141 - 51,141 (188,889) 267,986 430,152 77,794 - 77,794 (188,889) 2,764 - - 321,821	Other equity interest Exchange differences on translation of foreign financial statements Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income (18,296) (99,519) - - (2,497) 40,875 (2,497) 40,875 - - (20,793) (58,644) (29,998) (74,493) - - 11,532 22,229 11,532 22,229 - - - (2,764) - - - - (18,466) (55,028)		Treasury stock (173,021)	Total equity attributable to shareholders of parent 1,939,757
						Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income (99,519) - 40,875 40,875 -
		Legal capital reserve 82,748 - - - - 82,748 106,820 - - - - - - - 106,820	Special capital reserve 102,612 - - - - 102,612 117,815 - - - - - - - 117,815
	15,423
	- -						- -	51,141 38,378	50,844 40,458
	-						-	89,519	91,302
	-						-	(188,889)	(188,889)
	15,423					(58,644) (74,493) - 22,229 22,229 - (2,764) - - (55,028)	(173,021)	1,840,387	1,882,978
	25,980						(173,021)	2,027,331	2,072,383
	- -						- -	77,794 33,761	77,523 41,440
	-						-	111,555	118,963
							- - 50,739 -	(188,889) - - 12	(188,889) - - 12
	25,253						(122,282)	1,950,009	2,002,469

See accompanying notes to consolidated financial statements.

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

Consolidated Statements of Cash Flows

For the years ended March 31, 2022 and 2021

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

(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 (gain) Net (gains) losses on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Gain on disposal of property, plant, equipment Unrealized foreign exchange loss (gain) Others Total adjustments to reconcile profit Changes in operating assets and liabilities Changes in operating assets: Decrease (increase) in accounts receivable Decrease in other accounts receivable Decrease (Increase) in inventories Decrease in other current assets Total net changes in operating assets Changes in operating liabilities`：` Increase (Decrease) in notes payable Increase in accounts payable Decrease in other payable Decrease in other current liabilities Decrease in net defined benefit liability Decrease in other non-current liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes refund (paid) Net cash flows from (used in) operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of financial assets at fair value through profit or loss 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, equipment Acquisition of intangible assets Increase in Other financial assets Net cash flows from (used in) investing activities Cash flows from (used in) financing activities: Decrease in short-term loans Increase in long-term loans Repayment of lease liabilities Net cash flows from (used in) financing activities Effects of changes in foreign exchange rates Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the three months ended March 31 2022 2021 $ 91,601 60,728
	2022 $ 91,601
	15,133 332 (98) 73 2,196 (108) (1,550) (385) (12,378) 12	16,224 324 205 (3,712) 2,089 (730) (2,160) (256) 10,902 -
	3,227	22,886
	141,888 299 (96,954) 2,384	(100,903) 178 25,543 20,525
	47,617	(54,657)
	(66) 38,562 (41,992) (3,229) (6,272) (52)	167 8,704 (49,211) (724) (772) (52)
	(13,049)	(41,888)
	34,568	(96,545)
	37,795	(73,659)
	129,396 66 34 (2,604) (430)	(12,931) 837 47 (2,216) 1,521
	126,462	(12,742)
	(103,950) 15,528 (10,000) 10,001 (9,535) 385 (62) (241)	(163,372) - (25,113) - (12,269) 2,762 (96) (5)
	(97,874)	(198,093)
	- - (3,150)	(592,084) 400,000 (3,395)
	(3,150)	(195,479)
	14,103	(17,694)
	39,541 816,356	(424,008) 1,242,331
	$ 855,897	818,323

See accompanying notes to financial statements.

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the three months ended March 31, 2022 and 2021

(All amounts expressed in thousands of New Taiwan dollars, unless otherwise specified)

(Reviewed, not audited)

(1) Organization and Business Scope

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

(2) Financial Statements Authorization Date and Authorization Process

The consolidated financial statements were authorized for issuance by the Board of Directors on March 3, 2022.

(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, 2022:

‧ 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
(b) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The Group does not expect the following new and amended standards, which have yet to be

endorsed by the FSC, to have a significant impact on the 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”

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(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, 2021. Please refer to Note 4 of 2021 consolidated financial statement for detail information.

(b) Basis of consolidation
(i) Subsidiaries included in the consolidated financial statements are as follows:

Name of investor	Name of the subsidiary	Business Activity Sale of CTP and LCDs Investment holding Customer service and business support Sale of CTP and LCDs Customer service and business support Investment Investment Investment Investment holding Investment holding Manufacturing of CTP and LCDs	Percentage ownership	Percentage ownership	Percentage ownership	Remarks
			March 31,2022 100.00% 78.49% 100.00% 100.00% 100.00% 100.00% 100.00% 52.50% 5.90% 11.41% 100.00%	December 31,2021 100.00% 78.49% 100.00% 100.00% 100.00% 100.00% 100.00% 52.50% 5.90% 11.41% 100.00%	March 31,2021
The Company The Company The Company The Company The Company The Company The Company The Company Ying Dar Investment Development Corp. Bae Haw Investment Development Corp. Emerging Display International (Samoa) Corp.	Emerging Display Technologies Corp., U.S.A Emerging Display International (Samoa) Corp. EDT-Europe ApS Emerging Display Technologies Korea EDT-Japan Corp. Ying Dar Investment Development Corp. Bae Haw Investment Development Corp. Ying Cheng Investment Corp. Emerging Display International (Samoa) Corp. Emerging Display International (Samoa) Corp. Dong Guan Emerging Display Limited				100.00% 78.49% 100.00% 100.00% 100.00% 100.00% 100.00% 52.50% 5.90% 11.41% 100.00%	Major Subsidiary Note Note Note Note Note Note Note Note Note

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

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

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(c) Income tax

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

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

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

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

(d) Employee benefit

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

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

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

In preparing the consolidated financial statements, critical accounting judgments and key sources of estimation uncertainty used by management in the application of accounting policies are consistent with those described in Note 5 of the consolidated financial statements for the year ended December 31, 2021.

(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, 2021. Please refer to Note 6 of 2021 consolidated financial statements.

(a) Cash and cash equivalents

Cash and cash equivalents Demand deposits Check deposits Time deposits Repurchase agreement Total	March 31,2022 $ 479 524,797 34 330,587 -	March 31,2022 $ 479 524,797 34 330,587 -	December 31,2021	March 31,2021 378 581,251 596 89,829 146,269 818,323
			304 720,318 31 95,703 -
	$	855,897	816,356

～ 10 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

Current financial assets mandatorily measured at fair value through profit or loss`：` Open-end mutual funds Forward exchange contract Total Current financial liabilities measured at fair value through profit or loss`：` Forward exchange contract	March 31,2022 $ - 31 $ 31 March 31,2022 $ 63	December 31,2021 - 42 42 December 31,2021 -	March 31,2021 87,518 - 87,518 March 31,2021 72

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

The abovementioned financial assets were not pledged as collateral.

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

Forward exchange contract ：

Forward exchange contract Sell Forward exchange contract Sell Forward exchange contract Sell		March 31,2022 Currency Maturity period USD to CNY 111.04.06~111.05.06 December 31,2021 Currency Maturity period USD to CNY 111.01.14 March 31,2021 Currency Maturity period USD to CNY 110.05.13
	Contract amount (Thousand Dollar) USD 1,000	Currency
	Contract amount (Thousand Dollar) USD 800	Currency
	Contract amount (Thousand Dollar) USD 300	Currency
		USD to CNY

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

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

Equity instruments at fair value through other comprehensive income-current: Common stocks listed on domestic markets -current: Innolux Corp. Fubon Financial Holding Co., Ltd. Synnex Technology International Co., Ltd. Nan Ya Plastics Corporation Pegatron Co., Ltd. CoAsia Electronics Corp. E.SUN Financial Holding Co., Ltd. Far Eastern New Century Corp. Quanta Computer Inc. Shian Yih Electronic Co., Ltd. AGV Products Corporation Getac Technology Corporation CTBC Financial Holding Co., Ltd. Chicony Electronics Co., Ltd. Lite-On Technology Corp. Mega Financial Holding Co., Ltd. Taiwan Cement Corp., Ltd. ASE Technology Holding Co., Ltd. China Development Financial Holding Corp. Advanced International Multitech Co.,Ltd Evergreen Marine Corp. (Taiwan) Ltd. Total Common stocks listed on foreign markets `－`current`：` Becton, Dickinson and Company Total Equity instruments at fair value through other comprehensive income-noncurrent: Common stocks unlisted on domestic markets – non-current: Ascendax Venture Capital Corp. Chenfeng Optronics Corp. Total Preference stocks listed on domestic markets- non-current`：` Fubon Financial Holding Co., Ltd Total	March 31,2022 $ 19,271 - - 9,320 15,638 6,109 - - 61,722 32,775 - - - 26,940 42,222 53,024 39,421 30,533 13,440 23,610 28,350 402,375 - $ 402,375 $ 20,799 109,200 129,999 870 $ 130,869	December 31,2021 22,483 - - - 14,925 7,120 - - 66,195 31,350 - - - 24,690 39,556 43,940 37,920 - - - - 288,179 13,922 302,101 21,376 91,210 112,586 874 113,460	March 31,2021 24,203 17,040 29,975 16,758 16,006 6,102 19,726 30,200 46,060 32,205 918 34,515 41,548 30,450 - - - - - - - 345,706 13,877 359,583 20,698 83,580 104,278 861 105,139

～ 12 ～

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

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

For the three months ended March 31, 2022 and 2021, the Group has recognized the dividend income of $1,550 and $2,160 from equity instruments designated at fair value through other comprehensive income, respectively.

For the three months ended March 31, 2022, the Group with the objective of investment and financial management had sold financial assets at fair value of $15,528, and accumulated gain on disposal of investments were $2,764, which had been reclassified from other equity interest to retained earnings. None of the aforementioned stock investments were disposed for the three months ended March 31, 2021, therefore, there were no transfers of any cumulative gain or loss under equity relating to these investments.

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

The abovementioned financial assets were not pledged as collateral.

For the purpose of increasing investment profits, the Group entrusts partial listed companies as the beneficiary. According to the terms of the contract, the Group does not transfer risk and remuneration of these financial assets, and they had not been derecognized. As of March 31,2022, December 31, 2021 and March 31, 2021, the carrying amount of the listed stocks which were entrusted to financial institutions for security lending amounted to $19, 271, $22,483and $24,203, respectively.

(d) Accounts receivable

Accounts receivable-measured as amortized cost Allowance for impairment	March 31,2022 $ 627,640 (5,751) $ 621,889	December 31,2021 755,372 (5,842) 749,530	March 31,2021 701,244 (5,818) 695,426

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

	March 31,2022
Carrying amount of Accounts Receivable	Weighted-average expected credit loss rate 0.12% 0.42% 0.10% 0.10% - 100%	Loss allowance for lifetime expected credit losses 638 289 2 - - 4,822
$ 551,776 68,861 2,173 8 - 4,822 $ 627,640
		5,751

～ 13 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Current Overdue less than 90 days Overdue 91~180 days Overdue 181~270 days Overdue 271~365 days Overdue 365 days	December 31,2021 Carrying amount of Accounts Receivable Weighted-average expected credit loss rate $ 604,526 0.11% 146,013 0.23% 9 0.10% - - 2 21.39% 4,822 100% $ 755,372	December 31,2021 Carrying amount of Accounts Receivable Weighted-average expected credit loss rate $ 604,526 0.11% 146,013 0.23% 9 0.10% - - 2 21.39% 4,822 100% $ 755,372		Loss allowance for lifetime expected credit losses 686 334 - - - 4,822
		Weighted-average expected credit loss rate 0.11% 0.23% 0.10% - 21.39% 100%
				5,842

Current Overdue less than 90 days Overdue 91~180 days Overdue 181~270 days Overdue 271 days	Carrying amount of Accounts Receivable $ 588,068 108,295 750 4,131 - $ 701,244	March 31,2021		Loss allowance for lifetime expected credit losses 682 315 69 4,131 - 5,818
		Weighted-average expected credit loss rate 0.12% 0.29% 92% 100% -

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

Balance on January 1 Reversal of impairment loss Effect of changes in foreign currency exchange rates Ending balance	For the three months ended March 31 2022 2021 $ 5,842 5,613 (98) 205 7 - $ 5,751 5,818	For the three months ended March 31 2022 2021 $ 5,842 5,613 (98) 205 7 - $ 5,751 5,818
	2022 $ 5,842 (98) 7 $ 5,751

The abovementioned financial assets were not pledged as collateral.

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

(e) Other receivables

Other receivables
Loans to employee Dividend receivables Others Allowance for impairment	March 31,2022 $ 1,305 1,550 1,330 - $ 4,185	December 31,2021	March 31,2021 4,984 2,146 856 - 7,986
		1,475 34 1,314 -
		2,823

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

～ 14 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(f) Inventories

Inventories
Raw materials and supplies Work in process Finished goods Inventories in transit	March 31,2022 $ 521,390 425,935 207,389 1,990 $ 1,156,704	December 31,2021	March 31,2021 342,598 283,708 216,203 2,550 845,059
		525,651 303,876 220,020 6,618 1,056,165

The details of cost of sales are as follows ：

Reclassification to cost of sales and expenses Inventory loss of write-down (gain on reversal of inventory) Unamortized manufacturing expenses Loss on scrap Others	For the three months ended March 31	For the three months ended March 31
	2022	2021
	$ 833,760 (130) 3,596 10,257 (54) $ 847,429	759,736 (11,330) 4,708 21,080 (70)
		774,124

The above gain from price recovery of inventory was due to the previous write-down inventories had been sold, therefore, the net realizable value of inventories lowered than cost was no longer existed, the reversal was recorded as operating costs.

Inventories were not pledged as collaterals.

(g) Other current assets

The details of other current assets are as follows ：

Income tax refund receivable Prepayment for purchases Prepaid expense Prepaid sales tax Restricted time deposits Refundable deposits Others Book as: Other current assets Other financial assets`－`non-current	March 31,2022 $ 2,173 6,403 6,606 28,768 2,542 8,876 4,150	December 31,2021	March 31,2021 2,468 33,409 5,125 14,124 2,057 10,073 3,891 71,147 60,547 10,600 71,147
		2,067 12,968 5,111 24,547 3,050 7,988 4,505 60,236
	$ 59,518
	$ 50,642 8,876	51,997 8,239 60,236
	$ 59,518

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

～ 15 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

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

Name of subsidiaries Ying Cheng Investment Corp. Emerging Display International (Samoa) Corp.	Principal place of business	Proportion March 31,2022 47.5% 4.2%	of non-controlling interest voting equity December 31,2021 March 31,2021 47.5% 47.5% 4.2% 4.2%
			December 31,2021 47.5% 4.2%
	Taiwan Samoa

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

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

March 31,2022 $ 9,870 93,600 (30)	December 31,2021	March 31,2021 9,970 71,640 (30)
	9,902 78,180 (50)
$ 103,440 $ 49,134	88,032	81,580
	41,815	38,751

～ 16 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

		March		December	March
		31,2022		31,2021	31,2021
Current asset	$	123,368		119,265	119,594
Non-current asset		39,059		39,522	36,477
Current liability		(75,625)		(72,464)	(49,751)
Non-current liability		(7,618)		(9,274)	(14,884)
Net asset	$	79,184		77,049	91,436
Non-controlling equity closing book amount	$	3,326		3,237	3,840
Current asset
			For	the three months ended March 31
				2022	2021
Operating revenue		$		54,762	20,083
Net loss		$		(6,324)	(6,930)
Other comprehensive income				8,460	(2,035)
Comprehensive income		$		2,136	(8,965)
Loss attributable to non-controlling interest		$		(265)	(291)
Comprehensive income attributable to non-controlling
interest		$		89	(377)
			For	the three months ended March 31
				2022	2021
Cash flow from operating activities		$		(6,736)	1,232
Cash flow from investing activities				(985)	(1,258)
Cash flow from financing activities				(1,837)	(1,659)
Effects of changes in foreign exchange rates				660	(68)
Net decrease in cash and cash equivalents		$		(8,898)	(1,753)

(i) Property, plant and equipment

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

Land	Building and construction	Machinery and equipment	Machinery and equipment	Other	Total	Total
$ 23,268 - - 794	1,055,674 522 - 2,728	2,373,003 9 - 7,266 2,380,278 2,402,579 1,314 3,423 - (1,494)		157,510 7,610 (2,312) 282	3,637,843 8,141 (2,312) 11,332 3,655,004 3,649,342 12,521 - (5,250) (1,935)
$ 24,062	1,058,924		2,380,278	163,090		3,655,004
$ 23,940 - - - 46	1,048,089 541 - (66) (339)		,402,579 1,314 3,423 - (1,494)	146,461 10,511 (3,423) (5,184) (73)		3,649,342 12,521 - (5,250) (1,935)
$ 23,986	1,048,225	2	,405,822	148,292		3,654,678

～ 17 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Land	Building and construction	Machinery and equipment	Office equipment	Other
$ - - - - $ - $ - - - - $ - $ 23,268 $ 24,062 $ 23,940 $ 23,986	830,811 2,971 - 1,864	2,319,409 4,550 - 6,773 2,330,732 2,355,670 4,752 - (1,453) 2,358,969 53,594 49,546 46,909 46,853	27,193 80 - 228 27,501 27,246 87 - (77) 27,256 1,195 1,149 1,027 1,097	127,668 3,985 (2,312) 162
	835,646			129,503 117,385 3,909 (2,678) (53) 118,563 29,842 33,587 29,076 29,729
	817,727 3,750 (66) (336)
	821,075
	224,863
	223,278
	230,362
	227,150

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

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

(j) Right-of-use assets

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

Land $ 66,409 106 (4,674) -	Building and construction 51,684 - (4,463) 1,286	Transportation equipment 658 - - 23	Total 118,751 106 (9,137) 1,309
$ 61,841 $ 66,409 - -	48,507 27,904 22,695 (729)	681	111,029
		326 - -	94,639 22,695 (729)
$ 66,409	49,870	326	116,605
$ 8,204 648 -	32,761 2,667 (4,463) 721	311 70 - 13	41,276 3,385 (4,463) 734
$ 8,852	31,686	394	40,932
$ 5,482 680 -	21,893 2,855 (399)	36 27 -	27,411 3,562 (399)
$ 6,162	24,349	63	30,574

～ 18 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

Carrying amount: Balance at January 1, 2022 Balance at March 31, 2022 Balance at January 1, 2021 Balance at March 31, 2021	Land $ 58,205 $ 52,989 $ 60,927 $ 60,247	Building and construction 18,923 16,821 6,011 25,521	Transportation equipment	Total 77,475 70,097 67,228 86,031
			347
			287
			290
			263

(k) Investment property

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

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

Rental income of leased investment property has a fixed amount.

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

Cost or deemed cost: Balance at January 1, 2022 Effect of changes in foreign exchange rates Balance at March 31, 2022 Balance at January 1, 2021 Effect of changes in foreign exchange rates Balance at March 31, 2021 Depreciation: Balance at January 1, 2022 Depreciation Effect of changes in foreign exchange rates Balance at March 31, 2022 Balance at January 1, 2021 Depreciation Effect of changes in foreign exchange rates Balance at March 31, 2021 Carrying amount: Balance at January 1, 2022 Balance at March 31, 2022 Balance at January 1, 2021 Balance at March 31, 2021	Land $ 44,059 1,504 $ 45,563 $ 45,333 87	Building and construction 15,065 514 15,579 15,500 30 15,530 6,157 162 214 6,533 5,675 164 12 5,851 8,908 9,046 9,825 9,679	Total 59,124 2,018 61,142 60,833 117 60,950 6,157 162 214 6,533 5,675 164 12 5,851 52,967 54,609 55,158 55,099
	$ 45,420
	$ - - -
	$ -
	$ - - -
	$ -
	$ 44,059
	$ 45,563 $ 45,333 $ 45,420

～ 19 ～

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

There was no significant differences of the Group’s fair value of investment property which compared with the consolidated financial statements Note 6(k) for the year ended December 31,2021.

The investment property was not pledged as collateral.

(l) Intangible assets

The movements of intangible assets were as follows:

Initial cost: Balance as of January 1, 2022 Individual acquisition Effects of changes in foreign exchange rates Balance as of March 31, 2022 Balance as of January 1, 2021 Individual acquisition Disposals Effects of changes in foreign exchange rates Balance as of March 31, 2021 Amortization: Balance as of January 1, 2022 Amortization Effects of changes in foreign exchange rates Balance as of March 31, 2022 Balance as of January 1, 2021 Amortization Disposals Effects of changes in foreign exchange rates Balance as of March 31, 2021 Carrying amount: Balance as of January 1, 2022 Balance as of March 31, 2022 Balance as of January 1, 2021 Balance as of March 31, 2021	Patent $ 3,029 35 -		Computer software cost 8,991 27 34 9,052 9,477 27 - (1)		Total amount 12,020 62 34 12,116 12,365 96 (54) (1) 12,406 8,335 332 33 8,700 8,254 324 (54) (1) 8,523 3,685 3,416 4,111 3,883
	$ 3,064 $ 2,888 69 (54) -

	$ 2,903		9,503
	$ 1,494 67 -		6,841 265 33 7,139 6,821 260 - (1)
	$ 1,561 $ 1,433 64 (54) -

	$ 1,443		7,080
	$ 1,535 $ 1,503 $ 1,455		2,150 1,913 2,656


	$ 1,460		2,423

Intangible assets were not pledged as collateral.

～ 20 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(m) Short-term loans

The details of short-term loans were as follows:

Unsecured bank loans Unused lines of credit Range of interest rates		March 31,2022 $ - $ 1,989,000 -	December 31,2021 - 1,979,365 -		March 31,2021
					107,963 1,878,280 0.81%~1%

Short-term loans were not pledged as collateral.

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

(n) Other payables

Other payables
Salaries and wages payables Year-end bonus payables Employee remuneration payables Directors’ and supervisors’ remuneration payables Employee benefit liabilities Dividends payable Others	March 31,2022 $ 46,985 22,000 19,460 9,711 31,383 188,889 117,989 $ 436,417	December 31,2021	March 31,2021 46,280 15,000 17,993 10,796 37,145 188,895 97,781 413,890
		48,584 67,000 14,486 6,727 29,329 - 124,582
		290,708

(o) Long-term loans

The details of long-term loans were as follows：

Commercial paper payable Less: discount on long-term loans Total Unused long-term credit lines Range of interest rates	March 31,2022 $ 400,000 2,102	December 31,2021	March 31,2021 400,000 (1,610) 398,390 400,000 1.1613%
		400,000 1,651
	$ 397,898	398,349
	$ 400,000	400,000
	1.4007%	1.1610%

The Group signed a 5-year syndicated loan contract with E-SUN bank and six other banks on 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 banks’ own fund and $600,000 by using Group-issued commercial paper guaranteed by the banks, and the combined credit line should not exceed $800,000. According to the loan contract, 9 months after the date the contract was signed will be considered as the first appropriation date to calculate the revolving credit even if the credit line is unused after 9 months. The credit line, with a total of five phases, decreases every 6 months, beginning the 36th month after the first appropriation date. The first to fourth phases of the total credit line amounting to $800,000 will decrease by 12.5%, and the fifth phase will decrease by 50%. As the credit line decreases, the

～ 21 ～

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

residual of the excess credit line will be repaid upon maturity. The Group issued a total of $400,000 commercial paper on February 5, 2021. For the related information and concerned restricted terms, please refer to Note 6(o) of 2021 consolidated financial statements.

Assets pledged as collateral for long-term borrowings are disclosed in note 8.

(p) Lease liabilities

The details of lease liabilities were as follows ：

Current Non-Current	March 31,2022 $ 11,208 $ 62,040	December 31,2021	March 31,2021 12,338 75,789
		11,644
		68,730

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

The amounts recognized in profit or loss were as follows ：

	For the years ended	For the years ended	For the years ended
		March 31,2022	March 31,2021
Interest on lease liabilities	$	749	683

Expenses relating to short-term leases	$	477	542
Expenses relating to leases of low-value assets,
excluding short-term leases of low-value assets	$	186	60
The amounts recognized in the statement of cash flows		for the Group were	as follow`：`
	For the years ended		For the years ended
		March 31,2022	March 31,2021
Total cash outflow for leases	$	4,485	4,890

(i) Lease of land, building and construction

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

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

～ 22 ～

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

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

(ii) Other leases

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

(q) Operating lease

There was no increase for operating lease for the three months ended March 31, 2022 and 2021, for detail of Investment property leases, please refer to Note 6(q) of the 2021 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, 2021 and 2020.

Cost recognized in expense was as below ：

Operating cost Selling expenses General and administrative expenses Research and development expenses	For the years ended March 31,2022	For the years ended March 31,2021 230 12 36 27 305
	$ 251 15 43 31
	$ 340

(ii) Defined Contribution Plan

Cost recognized in expense was as below ：

Operating cost Selling expenses General and administrative expenses Research and development expenses	For the years ended March 31,2022	For the years ended March 31,2022	For the years ended March 31,2021
	$ 6,949 1,725 621 714 $ 10,009		5,776 1,350 584 685 8,395
		10,009

～ 23 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(s) Income tax

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

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

For the years ended March 31,2022	For the years ended March 31,2022	For the years ended March 31,2021
$ $	14,081	9,879
	(3) 14,078	5
		9,884

(ii) For the three months ended March 31,2022 and 2021 no income tax was recognized directly in equity.

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

Items that will not be reclassified subsequently to profit or loss`：` Unrealized gains or losses from investments in equity instruments measured at FVOCI	For the years ended March 31,2022	For the years ended March 31,2021
	$ (232)	(75)

Approval of income tax

The Company’s income tax returns for all fiscal years up to 2020 have been examined and approved by the R.O.C. tax authority.

(t) Share capital and other equity

The Group had no share capital change for the three months ended March 31, 2022 and 2021 except below statement. Please refer to Note 6(t) of 2021 consolidated financial statements for detail information.

(i) Capital Stock

The Company’s resolution of Board meeting held on Jan. 12, 2022, passed to retire 5,000 thousand shares of its treasury stocks bought back in 2019 for the purpose of transfer to employees, the related registration procedures had been finished. As of March 31, 2022, December 31 and March 31, 2021, the authorized share capital of the Company amounted to $3,500,000 comprising 350,000 thousand shares with a par value of TWD10 per share, outstanding shares of stock are 157,408, 162,408 and 162,408 thousand shares. Excluding shares of treasury stock that had been purchased by the Company and shares of stock held by the subsidiaries, outstanding shares of stock are 148,613 thousand shares.

(ii) Capital surplus

Capital surplus was as follows ：

Treasury stock Disgorgement Return of employee stock ownership trust Total	March 31,2022 $ 24,764 473 16	December 31,2021 25,503 473 4 25,980	March 31,2021 14,950 473 - 15,423
	$ 25,253

～ 24 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(iii) Earnings distribution

The appropriations of earnings for 2021 and 2020 have been approved in the meeting of the board of directors held on March 10, 2022, and 2021, the appropriation and dividend per share were as follows ：

Dividends distributed to ordinary shareholders (TWD)`：` Cash (iv) Other equity (net of tax) Foreign exchange differences arising from foreign operation Balance at January 1, 2022 $ (29,998) `－`Changes of the Group 11,532 Disposal of investments in equity instrument measured at FVOCI - Balance at March 31, 2022 $ (18,466) Balance at January 1, 2021 $ (18,296) `－`Changes of the Group (2,497) Balance at March 31, 2021 $ (20,793)	Dividends distributed to ordinary shareholders (TWD)`：` Cash (iv) Other equity (net of tax) Foreign exchange differences arising from foreign operation Balance at January 1, 2022 $ (29,998) `－`Changes of the Group 11,532 Disposal of investments in equity instrument measured at FVOCI - Balance at March 31, 2022 $ (18,466) Balance at January 1, 2021 $ (18,296) `－`Changes of the Group (2,497) Balance at March 31, 2021 $ (20,793)	2021 $ 1.2	2020 1.2 Total (104,491) 33,761 (2,764) (73,494) (117,815) 38,378 (79,437)
		Unrealized gains (losses) on financial assets measured at FVOCI (74,493) 22,229 (2,764)
	$ (29,998) 11,532 -
	$ (18,466)	(55,028)
	$ (18,296) (2,497)	(99,519) 40,875
	$ (20,793)	(58,644)

(v) Treasury stock

The changes of treasury stocks were as follows ：

(Expressed in thousands of shares)

Reason to buy back January to March, 2022 Transfer to employees January to March, 2021 Transfer to employees	Beginning Shares 5,000 5,000	Increase shares	Decrease shares (5,000)	Ending share - 5,000
		-
		-	-

As of March 31, 2022, December 31 and March 31, 2021, the costs of treasury stocks amounted to $0, $50,739 and $50,739 respectively.

In accordance with Securities and Exchange Act requirements, treasury stocks held by the Company should not be pledged, and do not hold shareholder rights before their transfer.

Ying Dar Corp. and Bae Haw Corp., 100%-owned subsidiaries of the Company, held the Company’s common stock. For the three months ended March 31, 2022 and 2021, Ying Dar Corp. and Bae Haw Corp. did not purchase or dispose any of the Company’s shares. As of March 31, 2022, December 31 and March 31, 2021, Ying Dar Corp. and Bae Haw Corp. together held 8,794 thousand shares of the Company’s common stock, The cost was $122,282 which was recognized in treasury stocks. As of March 31, 2022, December 31 and March 31, 2021, their market values amounted to $167,972, $171,051 and $175,888, respectively.

～ 25 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(u) Earnings per share

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

For the three months ended March 31

Basic earnings per share Profit attributable to owners of parent Weighted-average number of ordinary shares at end of year (expressed in thousands of shares) Expressed in New Taiwan dollars Diluted earnings per share Profit attributable to owners of parent Weighted-average number of ordinary shares (expressed in thousands of shares) Effect of potentially dilutive ordinary stock: `－`Employee bonus (expressed in thousands of shares) Weighted-average number of ordinary shares- diluted (expressed in thousands of shares) Expressed in New Taiwan dollars	2022	2021
	$ 77,794	51,141 148,613 0.34 51,141 148,613 737 149,350 0.34
	148,613
	$ 0.52
	$ 77,794
	148,613 835
	149,448
	$ 0.52

In computing above basic earnings (loss) per share of ordinary stock for the three months ended March 31, 2022 and 2021, the weighted-average numbers of shares of common stock outstanding excluded 8,794 thousand shares of common stock held by the Company’s subsidiaries as treasury stock.

(v) Revenue from Contracts with Customers
(i) Disaggregation of revenue

For Domestic $ 573,533 17 177,929	the three months ended March	the three months ended March
	2022
	North America - 221,974 54,303	Other operating department 82 - 61
$ 751,479	276,277	143
$ 243,354 485,688 22,437	110,053 147,619 18,605	- - 143
$ 751,479	276,277	143

～ 26 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

		For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
			2021
				Other
			North	operating
		Domestic	America	department		Total
Primary geographical markets:
Europe	$	574,000	-		468	574,468
USA		172	170,588	-		170,760
Others		164,061	35,407		66	199,534
Total	$	738,233	205,995		534	944,762
Major products:
Liquid crystal display modules	$	158,019	103,445	-		261,464
Capacitive touch panel and		577,401	100,589	-		677,990
capacitive touch panel module
Others		2,813	1,961		534	5,308
Total	$	738,233	205,995		534	944,762
(ii) Contract balance
		March 31,2022 December 31,2021			March 31,2021
Accounts receivable (including related parties)		$	627,640	755,372		701,244
Less: allowance for impairment			(5,751)	(5,842)		(5,818)
Total		$	621,889	749,530		695,426
Contract liability`－`Unearned revenue (recognized in other current liabilities)		$	38,343	40,390		32,066

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

The amount of revenue recognized for the three months ended March 31, 2022 and 2021, that was included in the contract liability balance at the beginning of the period were $4,270 and $1,982 respectively.

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

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

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

Employee’s remuneration Directors’ and supervisors’ remuneration	For the three months ended March 31 2022 2021 $ 4,974 3,310 $ 2,984 1,986
	2022
	$ 4,974
	$ 2,984

～ 27 ～

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

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

The accrued compensation of employees amounted to $14,486 and $14,683 for 2021 and 2020, respectively, and the accrued remuneration of directors’ and supervisor’s amounted to $8,691 and $8,810 respectively. Actual distribution had no difference with accrued amounts. The previous distribution of compensation to employees, remuneration of directors and supervisors approved by Board of Directors for related information, please go to website: http://emops.twse.com.tw.

(x) Other operating income and expenses

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

(y) Non-operating income and expenses

(i) Interest income

The details of interest income were as follows ：

Bank deposits Others	For the three months ended March 31	For the three months ended March 31
	2022	2021
	$ 108 4	730 11 741
	$ 112

(ii) Other income

The details of other income were as follows ：

Dividend income Others	For the three months ended March 31	For the three months ended March 31
	2022	2021
	$ 1,550 74	2,160 86
	$ 1,624	2,246

(iii) Other gains and losses

Details of other gains and losses were as follows ：

) Other gains and losses Details of other gains and losses were as follows`：`	$ 1,624 2,246	$ 1,624 2,246
Foreign exchange gains (losses) Net gains on disposal of financial assets (liabilities) measured at fair value through profit or loss Net gains on disposal of property, plant and equipment Others	For the three months ended March 31
	2022	2021
	$ 33,535 328 385 (648)	(8,089) 2,775 256 - (5,058)
	$ 33,600

～ 28 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(iv) Finance cost

Details of finance costs were as follows ：

Finance cost Details of finance costs were as follows`：`
Interest expenses Bank loans Lease liabilities Management fee of syndicated loan	For the three months ended March 31
	2022	2021
	$ $ 1,397 749 50	1,356 683 50
	$ 2,196	2,089

(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 2021 consolidated financial statements.

(i) Credit risk
1) Exposure to credit risk

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

2) Concentration of credit risk

As of March 31, 2022, and December 31, 2021, two customers accounted for 32.98% and 46.31% of total accounts receivable balance. As of March 31, 2021, one customer accounted for 38.69% of total accounts receivable balance.

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.

March 31, 2022 Non-derivative financial liabilities Secured Long-term loans (including long term loans, current portion)(floating rate) Accounts payable (no interest) Notes payable (no interest) Other payable (no interest) Lease liability (fixed interest rate) Guarantee deposits received (no interest)	Carrying amount $ 397,898 611,226 20 436,417 73,248 561	Contracted cash flows (421,583) (611,226) (20) (436,417) (102,511) (561)	Due within 6 months (2,794) (611,226) (20) (436,417) (7,358) -	Due in 6- 12months (2,794) - - - (6,449) -	Due in 1- 2 years (5,618) - - - (12,038) (561)	Due in 2- 5 years (410,377) - - - (11,280) -	Due in over 5 years - - - - (65,386) -

～ 29 ～

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

Carrying amount 63	Contracted cash flows 28,601 (28,625)	Due within 6 months 28,601 (28,625)	Due in 6- 12months - -	Due in 1- 2 years - -	Due in 2- 5 years - -	Due in over 5 years - -
$ 1,519,433	(1,572,342)	(1,057,839)	(9,243)	(18,217)	(421,657)	(65,386)
$ 398,349 559,800 86 290,708 80,374 544	(419,034) (559,800) (86) (290,708) (112,713) (544)	(2,290) (559,800) (86) (290,708) (7,810) -	(2,341) - - - (6,683) -	(4,644) - - - (12,752) (510)	(409,759) - - - (13,622) (34)	- - - - (71,846) -
$ 1,329,861	(1,382,885)	(860,694)	(9,024)	(17,906)	(423,415)	(71,846)
$ 398,390 107,963 409,920 1,401 413,890 88,127 560 72	(422,538) (108,180) (409,920) (1,401) (413,890) (122,888) (560) 8,510 (8,561)	(2,316) (108,180) (409,920) (1,401) (413,890) (8,303) - 8,510 (8,561)	(2,316) - - - - (7,283) - - -	(4,645) - - - - (12,929) - - -	(413,261) - - - - (19,548) (560) - -	- - - - - (74,825) - - -
$ 1,420,323	(1,479,428)	(944,061)	(9,599)	(17,574)	(433,369)	(74,825)

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

(iii) Market Risk

1) Currency risk

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

December 31, 2021 Foreign currency Exchange rate TWD amount 55,966 27.68 1,549,141 18,516 0.2405 4,453 1,061 4.344 4,610 61 31.32 1,911 503 27.68 13,922	December 31, 2021 Foreign currency Exchange rate TWD amount 55,966 27.68 1,549,141 18,516 0.2405 4,453 1,061 4.344 4,610 61 31.32 1,911 503 27.68 13,922	March 31, 2021 Foreign currency Exchange rate TWD amount 47,626 28.535 1,358,998 66,205 0.2577 17,061 5,495 4.344 23,869 59 33.48 1,969 2,615 28.535 74,612	March 31, 2021 Foreign currency Exchange rate TWD amount 47,626 28.535 1,358,998 66,205 0.2577 17,061 5,495 4.344 23,869 59 33.48 1,969 2,615 28.535 74,612	March 31, 2021 Foreign currency Exchange rate TWD amount 47,626 28.535 1,358,998 66,205 0.2577 17,061 5,495 4.344 23,869 59 33.48 1,969 2,615 28.535 74,612
Foreign currency	Exchange rate	Foreign currency 47,626 66,205 5,495 59 2,615	Exchange rate
55,966 18,516 1,061 61 503	27.68 0.2405 4.344 31.32 27.68		28.535 0.2577 4.344 33.48 28.535	1,358,998 17,061 23,869 1,969 74,612

～ 30 ～

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

March 31, 2022 Foreign currency Exchange rate TWD amount 25,183 28.625 720,877 15,613 0.2353 3,674 43 31.92 1,381 750 28.625 21,469	March 31, 2022 Foreign currency Exchange rate TWD amount 25,183 28.625 720,877 15,613 0.2353 3,674 43 31.92 1,381 750 28.625 21,469	December 31, 2021 Foreign currency Exchange rate TWD amount 19,232 27.68 532,329 15,651 0.2405 3,764 - - - 800 27.68 22,144	December 31, 2021 Foreign currency Exchange rate TWD amount 19,232 27.68 532,329 15,651 0.2405 3,764 - - - 800 27.68 22,144	March 31, 2021 Foreign currency Exchange rate TWD amount 14,170 28.535 404,341 12,770 0.2577 3,291 - - - 300 28.535 8,561	March 31, 2021 Foreign currency Exchange rate TWD amount 14,170 28.535 404,341 12,770 0.2577 3,291 - - - 300 28.535 8,561
Foreign currency 25,183 15,613 43 750	Exchange rate 28.625 0.2353 31.92 28.625	Foreign currency	Exchange rate	Foreign currency 14,170 12,770 - 300	Exchange rate
		19,232 15,651 - 800	27.68 0.2405 - 27.68		28.535 0.2577 - 28.535

The Group’s exposure to foreign currency risk arises from the translation of the cash and cash equivalents, accounts receivables, other receivables, financial assets and liabilities measured at fair value through profit or loss, financial assets measured at fair value through other comprehensive income, accounts payables, and other payables. As of March 31, 2022 and 2021, if the exchange rate of the TWD versus the USD, CNY, JPY, and EUR have increased or decreased by 1%, given no changes in other factors. For the three months ended March 31, 2022 and 2021, profit after tax would have increased or decreased by $4,551 and $7,383, and other comprehensive income after tax would have increased or decreased by $0 and $111, respectively. The analysis is performed on the same basis of prior year.

The Group has variety kinds of functional currencies, hence we use summarized method to disclose exchange gain (loss) of monetary items. For the three months ended March 31, 2022 and 2021, foreign exchange gain (including realized and unrealized) amounted to gain $33,535 and loss $8,089, respectively.

2) Interest rate analysis

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

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

If interest rates on loans had increased or decreased by 0.25% with all other variables held constantly, Profit after tax for the three months ended March 31, 2022 and 2021 would have been decreased or increased by $200 and $254, respectively, mainly as a result of liabilities bearing floating interest rates.

3) Other price risk

If the prices of financial instrument change at reporting date, with all other variables held constant, the influences were as follows ：

～ 31 ～

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

For the three months ended March 31

Equity price at reporting date Increase 3% Decrease 3%	2022 Other comprehensive income after tax Net profit (loss) $ 15,999 - $ (15,999) -	2022 Other comprehensive income after tax Net profit (loss) $ 15,999 - $ (15,999) -	2021 Other comprehensive income after tax Net profit (loss) 13,858 2,261 (13,858) (2,261)
	$ (15,999)	-	(13,858)

(iv) Fair value

1) Categories and fair values of financial instruments

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

	March 31, 2022	March 31, 2022	March 31, 2022
Carrying Amount $ 31		Fairvalue
	Level 1 Level 2 Level 3 - 31 - 403,245 - - - - 129,999 - - - - - - - - - - - - - - - - 63 - - - - - - - - - - - - - - - - - - - December 31, 2021

403,245 129,999
533,244
855,897 621,889 4,185 2,542 8,876
1,493,389
$ 2,026,664
$ 63
$ 397,898 20 611,226 436,417 73,248 561
1,519,370
$ 1,519,433

Carrying Amount $ 42		Fairvalue
	Level 1 - 302,975	Level 2 42 -	Level 3 - -

302,975

～ 32 ～

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

	December 31, 2021	December 31, 2021	December 31, 2021
Carrying Amount 112,586		Fairvalue
	Level 1 Level 2 Level 3 - - 112,586 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - March 31, 2021

415,561
816,356 749,530 2,823 3,050 7,988
1,579,747
$ 1,995,350
398,349 86 559,800 290,708 80,374 544
$ 1,329,861

Carrying Amount	Level 1 87,518 360,444 - - - - - - - - - - - - -	Fair value
		Level 2 - - - - - - - - 72 - - - - - -	Level 3 - - 104,278 - - - - - - - - - - - -
$ 87,518
360,444 104,278
464,722
$ 818,323 695,426 7,986 2,057 10,073
1,533,865
$ 2,086,105
$ 72
506,353 1,401 409,920 413,890 88,127 560
1,420,251
$ 1,420,323

～ 33 ～

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

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

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

Non-derivative instruments

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

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

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

Derivative instruments

The fair value of Swap contracts and Forward exchange contract is based on quoted prices from the counterparty.

3) Transfer between level 1 and level 2

There was no transfer between the fair value hierarchy levels for the year ended March 31, 2022 and 2021.

～ 34 ～

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

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

Balance at January 1, 2022 Recognized in other comprehensive income Balance at March 31, 2022 Balance at January 1, 2021 Recognized in other comprehensive income Balance at March 31, 2021	Financial assets at fair value through other comprehensive income Unquoted equity instruments $ 112,586 17,413 $ 129,999 $ 97,826 6,452 $ 104,278

5) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement
The Group’s financial instruments that use Level 3 inputs to measure fair value include financial assets measured at fair value through other comprehensive income– equity investments.

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

Quantified information of significant unobservable inputs was as follows ：

Item Financial assets at fair value through other comprehensive income-equity investments without an active market	Valuation technique Discounted Cash Flow Method	Significant unobservable inputs `．` Continuing growth rate (as of March 31,2022, December 31,2021 and March 31, 2021 ranged from 1.44%`、`1.44% and 0.48% respectively) `．` Weighted average cost of capital (as of March 31,2022, December 31,2021 and March 31, 2021 ranged from 9.01%`、`9.75% and 10.16% respectively) `．` Market illiquidity discount rate (as of March 31,2022, December 31,2021 and March 31, 2021 ranged from 53.63%`、`58.64% and 59.80% respectively) `．` Non-controlling interests discount rate (as of March 31,2022, December 31,2021 and March 31, 2021 ranged from 29.48%`、`29.48% and 29.87% respectively)	Inter-relationship between significant unobservable inputs and fair value measurement
			`．` If the continuing growth rate was higher, the estimated fair value would increase. `．` If WACC were higher, the estimated fair value would decrease. `．` If the market illiquidity discount rate was higher, the estimated fair value would decrease. `．` If the non-controlling interests discount rate was higher, the estimated fair value would decrease.

～ 35 ～

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

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

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

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

	Inputs March 31, 2022 Continuing growth rate 1.44% Weighted average cost of capital 9.01% Market illiquidity discount rate 53.63% Non-controlling interests discount rate 29.48% December 31, 2021 Continuing growth rate 1.44% Weighted average cost of capital 9.75% Market illiquidity discount rate 58.64% Non-controlling interests discount rate 29.48% March 31, 2021 Continuing growth rate 0.48% Weighted average cost of capital 10.16% Market illiquidity discount rate 59.80% Non-controlling interests discount rate 29.87%	Changes in fairvalue reflected inOCI Fluctuation in inputs Favorable Unfavorable 0.1% $ 1,260 1,190 0.1% 1,680 1,540 1% 2,380 2,380 1% 1,540 1,540 0.1% $ 1,050 1,050 0.1% 1,400 1,400 1% 2,240 2,170 1% 1,260 1,260 0.1% $ 630 560 0.1% 840 700 1% 2,100 2,100 1% 1,190 1,190	Changes in fairvalue reflected inOCI	Changes in fairvalue reflected inOCI
				Unfavorable
				1,190 1,540 2,380 1,540 1,050 1,400 2,170 1,260 560 700 2,100 1,190

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 2021 consolidated report. Please refer to Note 6(aa) of 2021 consolidated financial statements.

～ 36 ～

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

(ab) Capital management

The Group’s capital management objectives, policies and procedures were compliance with 2021 consolidated financial statements. Further, there was no significant change of the summary quantitative information as disclosed in 2021 consolidated financial statements. Please refer to Note 6(ab) of 2021 consolidated financial statements.

(ac) Financing activities of non-cash transaction

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

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

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

Long-term loans (including long term loans, current portion) Lease liabilities Guarantee deposits Total liabilities from financing activities	January 1, 2022 $398,349 80,374 544 $ 479,267	Cash flows - (3,150) - (3,150)	Non-cash changes Foreign exchange movement Amortized Other (Note2) - (451) - 592 - (4,568) 17 - - 609 (451) (4,568)	Non-cash changes Foreign exchange movement Amortized Other (Note2) - (451) - 592 - (4,568) 17 - - 609 (451) (4,568)	March 31, 2022 397,898 73,248 561 471,707
			Foreign exchange movement - 592 17 609	Amortized (451) - - (451)

Short-term loans Long-term loans (including long term loans, current portion) Lease liabilities Guarantee deposits Total liabilities from financing activities	January 1, 2021 $ 700,000 (1,600) (Note1) 69,158 558 $ 768,116	Cash flows (592,084) 400,000 (3,395) - (195,479)	Non-cash changes Foreign exchange movement Amortized Other (Note2) 47 - - - (10) - (331) - 22,695(Note2) 2 - - (282) (10) 22,695	Non-cash changes Foreign exchange movement Amortized Other (Note2) 47 - - - (10) - (331) - 22,695(Note2) 2 - - (282) (10) 22,695	Non-cash changes Foreign exchange movement Amortized Other (Note2) 47 - - - (10) - (331) - 22,695(Note2) 2 - - (282) (10) 22,695	March 31, 2021 107,963 398,390 88,127 560
			Foreign exchange movement 47 - (331) 2 (282)		Amortized - (10) - - (10)
						595,040

(Note 1) Previous prepaid syndicated related expense

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

(7) Transactions with Related Parties

Compensation of key management personnel

(i) The information on key management personnel compensation was as follows ：

Short-term employee benefits Post-employment benefits	For the three months ended March 31 2022 2021 $ 11,047 8,819 131 105 $ 11,178 8,924
	2022
	$ 11,047 131
	$ 11,178

～ 37 ～

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

(8) Pledged Assets

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

Pledged Assets Restricted time deposits-current Restricted time deposits-non-current Property, plant and equipment`－` buildings	Purpose Guarantee for customs Performance guarantee Guarantee for long-term loans	March 31,2022 $ 2,542 - 172,041 $ 174,583	December 31,2021	March 31,2021 1,530 527 178,008
			2,538 512 173,195
			176,245	180,065

(9) Commitments and Contingencies: None

(10) Losses Due to Major Disasters: None

(11) Significant Subsequent Events: None

(12) Other

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

By function By item	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
	2022			2021
	Recorded as operating cost	Recorded as operating expenses	Total	Recorded as operating cost	Recorded as operating expenses	Total
Employee benefits (Note) Depreciation Amortization	143,420 11,975 71	72,843 3,158 261	216,263 15,133 332	125,218 12,776 74	61,954 3,448 250	187,172 16,224 324

(b) Seasonal operation `：`

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

～ 38 ～

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

(13) Supplementary Disclosure Requirements

(a) Information on significant transactions `：`

In accordance with the ROC “Guidelines Governing the Preparation of Financial Reports by Securities Issuers”, the required disclosures for the three months ended March 31, 2022 were as follows ：

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

(ii) Guarantees provided to other parties: None

(iii) Securities owned as of March 31, 2022 (subsidiaries, associates and joint ventures not included) `：`

Name of security holder	Name of security and type	Relationship between issuer of security and the security holder	Financial statement account	March 31,2022	March 31,2022	March 31,2022	March 31,2022	Remarks
				Units (shares)	Carrying Value	Percentage of ownership	Fair value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company 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 Quanta Computer Inc. stock Pegatron Co., Ltd. stock Chicony Electronics Co., Ltd. stock Lite-On Technology Corp. stock Mega Financial Holding Co., Ltd. stock Taiwan Cement Corp., Ltd. stock ASE Technology Holding Co., Ltd. stock Nan Ya Plastics Corporation. stock China Development Financial Holding Corp.stock Advanced International Multitech Co., Ltd.stock Evergreen Marine Corp. (Taiwan) Ltd. stock Coasia Microelectronics Corp. stock Shian Yih Electronic Co., Ltd. stock Shian Yih Electronic Co., Ltd. stock The Company’s stock Everest Technology Inc. Shian Yih Electronic Co., Ltd. stock The Company’s stock Chenfeng Optronics Corp. stock	- - - - - - - - - - - - - - - - - - The Company - - The Company -	Financial assets at FVOCI`－` noncurrent Financial assets at FVOCI`－` noncurrent Financial assets at FVOCI`－` noncurrent Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－`current Financial assets at FVOCI`－` 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 1,147,089 699,000 216,000 300,000 620,000 1,236,000 790,000 295,000 100,000 700,000 300,000 210,000 459,344 480,000 550,000 5,346,672 1,000,000 395,000 3,447,716 6,000,000	20,799 15,600 870 19,271 61,722 15,638 26,940 42,222 53,024 39,421 30,533 9,320 13,440 23,610 28,350 6,109 11,040 12,650 102,121 - 9,085 65,851 93,600	5.25% 1.19% - 0.01% 0.02% 0.01% 0.04% 0.03% 0.01% 0.01% 0.01% - - 0.22% - 0.32% 0.78% 0.90% 3.40% 1.47% 0.65% 2.19% 7.14%	20,799 15,600 870 19,271 61,722 15,638 26,940 42,222 53,024 39,421 30,533 9,320 13,440 23,610 28,350 6,109 11,040 12,650 102,121 - 9,085 65,851 93,600	- - - - - - - - - - - - - - - - - - (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.

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EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

Purchasing (selling) company	Counter party	Relationship	Detail of transaction	Detail of transaction	Detail of transaction	Detail of transaction	Circumstances of and reasons for deviation from regular trading conditions	Circumstances of and reasons for deviation from regular trading conditions	Resulting receivables (payables)	Resulting receivables (payables)	Remarks
			Purchase (sale)	Amount	% of net purchase (sales)	Credit line	Unit price	Period for credit	Balance	% of notes and accounts receivable (payable)
The Company Emerging Display Technologies Corp., U.S.A.	Emerging Display Technologies Corp., U.S.A. The Company	Subsidiary of the Company Subsidiary of the Company	Sale Purchase	269,488 269,488	26.39% 100.00%	3 months 3 months	Sales prices offered to Emerging Display Technologies Corp., U.S.A. was not significantly different from those offered to other customers The company is the major supplier for Emerging Display Technologies Corp., U.S.A.	Considering the trading practices in North American market, the company set credit duration as three months for North American market, which is slightly longer than one to three months set in other markets. The company is the major supplier for Emerging Display Technologies Corp., U.S.A.	225,366 (225,366)	33.31% 100.00%	(Note) (Note)

Note: It was eliminated in the consolidation.

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

were as follows ：

Name of company the has the receivables	Counterparty	Relationship	Balance of amount	Turnover ratio	Overdue	Overdue	Amount collected in the subsequent period	Allowance for doubtful accounts	Remarks
					Amount	Status
The Company	Emerging Display Technologies Corp., U.S.A.	Subsidiary of the Company	Account receivables of 225,366	4.02	-	-	44,791	-	(Note)

Note: It was eliminated in the consolidation.

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

No.	Name	Counterparty	Relationship (Note)	Details of transaction	Details of transaction	Details of transaction	Details of transaction
				Subject	Amount	Term of trading	% of total consolidated revenue or total asset
0	The Company	Emerging Display Technologies Corp., U.S.A.	1	Sales revenue Accounts payable	269,488 225,366	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.	26.22% 6.07%
0	The Company	Emerging Display Technologies Corp., U.S.A.	1	Other payable	22	No non-related-party transaction to compare to.	-
0	The Company	EDT-Europe ApS	1	Selling expenses-Commission Other payable	14,858 4,422	No non-related-party transaction to compare to.	1.45% 0.12%
0	The Company	Emerging Display Technologies Korea	1	Selling expenses-Commission	875	No non-related-party transaction to compare to.	0.09%
0	The Company	EDT-Japan Corp.	1	Selling expenses-Commission	2,886	No non-related-party transaction to compare to.	0.28%
0	The Company	Dong Guan Emerging DisplayLimited	1	Processing cost Accounts payable	54,762 20,410	No non-related-party transaction to compare to.	5.33% 0.55%

Note `：` Relationship notes as follows `：`

1) Parent Group to subsidiary
2) Subsidiary to parent Group
3) Subsidiary to subsidiary

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

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

Relevant information about investees for the three months ended March 31, 2022 was as follows ：

Name of investor	Name of investee	Location	Business cope	Original cost of investment	Original cost of investment	Held at the end of term	Held at the end of term	Held at the end of term	Net income (loss) of the investee	Investment income (less) recognized	Remarks
				March 31, 2022	December 31, 2021	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%	96,402 (Note1)	1,386	1,375	Subsidiary (Note2)
The Company	Emerging Display International (Samoa) Corp.	Samoa	Investment holding	180,503	180,503	5,984,071	78.49%	62,152	(6,324)	(4,964)	Subsidiary (Note2)
The Company	EDT-Europe ApS	Denmark	Customer service and business support	2,077	2,077	125,000	100.00%	2,076	(707)	(707)	Subsidiary (Note2)
The Company	Emerging Display Technologies Korea	Korea	Business support	1,677	1,677	58,212,500	100.00%	1,560	4	4	Subsidiary (Note2)
The Company	EDT-Japan Corp.	Japan	Customer service and business support	17,401	17,401	5,000	100.00%	6,352	252	252	Subsidiary (Note2)
The Company	Ying Dar Investment Development Corp.	Taiwan	Investment	89,000	89,000	8,900,000	100.00%	20,720	(385)	(385)	Subsidiary (Note2)
The Company	Bae Haw Investment Development Corp.	Taiwan	Investment	89,000	89,000	8,900,000	100.00%	36,274	(734)	(734)	Subsidiary (Note2)
The Company	Ying Cheng Investment Corp.	Taiwan	Investment	84,000	84,000	8,400,000	52.50%	54,306	(6)	(6)	Subsidiary (Note2)
Ying Dar Investment Development Corp.	Emerging Display International (Samoa) Corp.	Samoa	Investment holding	13,234	13,234	450,000	5.90%	4,672	(6,324)	(373)	Subsidiary (Note2)
Bae Haw Investment Development Corp.	Emerging Display International (Samoa) Corp.	Samoa	Investment holding	25,488	25,488	870,000	11.41%	9,035	(6,324)	(722)	Subsidiary (Note2)

Note1: It was deducted unrealized profit from sales $11,058. Note2: It was eliminated in the consolidation.

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

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

Investee company	Main businesses and products	Received capital	Investment method	Accumulated amount invested in Mainland China as of Jan. 1, 2022	Invested capital remitted from or repatriated to Taiwan	Invested capital remitted from or repatriated to Taiwan	Accumulated amount invested in Mainland China as of March. 31, 2022	Net income of investee	The Group’s direct or indirect investment ratio	Investment gain (loss) recognized by the Group	Book value of the investment as of March. 31, 2022	Accumulated investment income repatriated to Taiwan as of March. 31, 2022
					Remittance	Repatriation
Dong Guan Emerging Display Limited	Manufacturing of LCDs and Touch panel	248,516 (USD 7,625,300)	Investing through a third country by establishing a holding Group in a third country.	219,225 (USD 6,746,936) (Note1)	-	-	219,225 (USD 6,746,936)	(6,626)	95.80% (Note2)	loss of $6,348 Based on the investee’s financial statements audited by the same auditor as the Group (Note3)	67,169 (Note4)	-

(ii) Limitation on investments in Mainland China ：

Accumulated investment amount remitted from Taiwan to Mainland China as of March 31, 2022	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
198,505 (Note8) (USD6,934,668) (Note5)	399,368 (Note8) (USD13,951,732) (Note6)	1,304,985 (Note7)

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

～ 41 ～

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

Note 2 ： The ratio includes 5.90% which was held by Ying Dar Investment Development Corp. and 11.41% which was held by Bae Haw Investment Development Corp.
Note 3 ： The amount includes a loss of $391 which was recognized by Ying Dar Investment Development Corp. and a loss of $756 which was recognized by Bae Haw Investment Development Corp.
Note 4 ： The amount includes $4,137 which was invested by Ying Dar Investment Development Corp. and $8,000 which was invested by Bae Haw Investment Development Corp.
Note 5 ： The amount 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 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 $73,705 for Ying Dar Investment Development Corp. and $61,275 for Bae Haw Investment Development Corp.
Note 8 ： Transactions denominated in foreign currencies were recorded using the rate of exchange at March 31, 2022.
(iii) Significant transactions ：

The significant inter-Group transactions with the subsidiary in Mainland China, which were eliminated in the preparation of the consolidated financial statements, was disclosed in “information on significant transactions” for the three months ended March 31, 2022.

(d) Major shareholder ：

ajor shareholder`：`
Shareholding Shareholder’s Name	Shares	Percentage
Tseng,Jui-Ming	11,043,723	7.01%

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

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

～ 42 ～

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

(14) Segment Information

Reportable segment information was as follows ：

	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	Total 1,027,899 -
		2022
Domestic $ 751,479 269,771	North America 276,277 -	Mainland China - 54,762	Other operating Department 143 18,619	Adjustment s and Eliminations - (343,152)
$ 1,021,250	276,277	54,762	18,762	(343,152)	1,027,899
$ 95,401	1,725	(6,347)	(420)	1,242	91,601
					Total 944,762 -
		2021
Domestic $ 738,233 184,939	North America 205,995 21	Mainland China - 20,083	Other operating Department 534 20,763	Adjustment s and Eliminations - (225,806)
$ 923,172	206,016	20,083	21,297	(225,806)	944,762
$ 59,391	431	(7,018)	1,067	6,857	60,728
Domestic $ 3,457,351	North America 354,649	Mainland China 153,357	Other operating Department 21,016	Adjustment s and Eliminations (273,302)	Total 3,713,071
$ 3,328,326	444,707	150,018	27,009	(360,617)	3,589,443
$ 3,274,815	341,208	147,009	29,001	(296,109)	3,495,924
$ 1,620,455	247,312	83,243	11,028	(251,436)	1,710,602
$ 1,427,514	342,284	81,739	16,470	(350,947)	1,517,060
$ 1,568,769	248,132	64,634	19,173	(287,762)	1,612,946

The following is the explanation of material reconciliation item ：

(a) For the three months ended March 31, 2022 and 2021, the operating segments revenue eliminated from the consolidated entities were $343,152 and $225,806, respectively.
(b) For the three months ended March 31, 2022 and 2021, the operating segments profit and loss eliminated from the consolidated entities were $1,242 and $6,857, respectively.
(c) As of March 31, 2022, December 31, 2021 and March 31, 2021, the operating segments assets eliminated from the consolidated entities were $273,302, $360,617and $296,109, respectively.
(d) As of March 31, 2022, December 31, 2021 and March 31, 2021, the operating segments liabilities eliminated from the consolidated entities were $251,436, $350,947 and $287,762, respectively.

～ 43 ～

AI assistant

EDT — Interim / Quarterly Report 2022

52271_rns_2022-11-11_2eca83c6-b86e-4e15-b80f-91939c55c57a.pdf

Table of contents

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2022, December 31, 2021, and March 31, 2021

(English Translation of Financial Statements and Report Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income For the three months ended March 31, 2022 and 2021

(English Translation of Financial Statements and Report Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Consolidated Statements of Changes in Stockholders’ Equity For the three months ended March 31, 2022 and 2021

(Expressed in thousands of New Taiwan dollars)

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

Consolidated Statements of Cash Flows

For the years ended March 31, 2022 and 2021

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

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

For the three months ended March 31, 2022 and 2021

(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

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(4) Summary of Significant Accounting Policies

(a) Statement of compliance

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(c) Income tax

(d) Employee benefit

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

(6) Explanation of significant accounting items

(a) Cash and cash equivalents

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

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

(d) Accounts receivable

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(f) Inventories

(g) Other current assets

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

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

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(i) Property, plant and equipment

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(j) Right-of-use assets

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(k) Investment property

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

(l) Intangible assets

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

(m) Short-term loans

Short-term loans were not pledged as collateral.

(n) Other payables

(o) Long-term loans

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

(p) Lease liabilities

(i) Lease of land, building and construction

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

(ii) Other leases

(q) Operating lease

(r) Employee benefits

(i) Defined benefit plan

(ii) Defined Contribution Plan

EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES

Notes to consolidated financial statements

EDT Interim / Quarterly Report 2022

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

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

(b) Seasonal operation `：`

(a) Information on significant transactions `：`

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

(iii) Securities owned as of March 31, 2022 (subsidiaries, associates and joint ventures not included) `：`

Note `：` Relationship notes as follows `：`

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

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

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