ETERNAL - Interim / Quarterly Report 2021

Eternal Materials Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2021 and 2020 and Independent Auditors’ Review Report

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.

INDEPENDENT AUDITORS’ REVIEW REPORT

Eternal Materials Co., Ltd.

Opinion

We have reviewed the accompanying consolidated balance sheets of Eternal Materials Co., Ltd. (the “Company”) and its subsidiaries as of March 31, 2021 and 2020, and the consolidated statements of comprehensive income, changes in equity and cash flows for the three months then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). 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 and issued into effect by the Financial Supervisory Commission(FSC) 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 following paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 65“Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As disclosed in Note 12 to the consolidated financial statements, total assets of some non-significant subsidiaries included in the consolidated statements were NT$24,162,984 thousand and NT$22,710,775 thousand, constituting 42% and43% of the consolidated total assets; total liabilities were NT$9,119,254 thousand and NT$7,257,701, constituting 27% and24% of the consolidated total liabilities as of March 31 2021 and 2020, respectively; total comprehensive income profit or loss of these consolidated subsidiaries for the three months ended March 31,2021 and 2020 were at a profit of NT$297,480 thousand and loss of NT$245,408 thousand, respectively, constituting 49% and 674% of the consolidated total comprehensive income, respectively. The amounts and information disclosed in Notes 34 and 35 to the consolidated financial statements were based solely on the reports prepared and disclosed by these subsidiaries, which were not reviewed by independent accountants for the same reporting periods. In addition, as disclosed in Note 13 to the consolidated financial statements, the total carrying amounts of investments accounted for using the equity method were NT$2,391,084 thousand and NT$2,298,086 thousand as of March 31. 2021 and 2020, respectively; the share of the profit of associates and joint ventures accounted for using the equity method were NT$107,548 thousand and NT$49,724 thousand for the three months ended March 31, 2021 and 2020, respectively; the Share of the other comprehensive loss of associates and joint ventures were NT$9,100thousand and NT$10,344 thousand for the three months ended March 31, 2021 and 2020, respectively. The amounts and information disclosed in Notes 34 and 35 to the consolidated financial statements were based solely on the reports recognized and disclosed by investees, which were not reviewed by independent accountants for the same reporting periods

Qualified Conclusion

Base on our reviews, except for the effect of such adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and other equity-method investees as described in the preceding paragraph been reviewed by independent accountants, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the financial position of the Company and its subsidiaries as of March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and international Accounting Standard 34“Interim Financial Reporting”endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Chao-Chun Wang and Lee-Yuan Kuo.

Deloitte & Touche Taipei, Taiwan Republic of China

May 7, 2021

Notice to Readers

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

Eternal Materials Co., Ltd. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss－current（Note 7） Notes receivable, net (Notes 8 and 30) Notes receivable from related parties, net (Notes 8 and 29) Accounts receivable, net (Note 8) Accounts receivable from related parties, net (Notes 8 and 29) Other receivables (Notes 8 and 29) Inventories (Note 9) Other financial assets - current (Note 10) Other current assets - others Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Note 7) Financial assets at fair value through other comprehensive income - non-current (Note 11) Investments accounted for using the equity method (Note 13) Property, plant and equipment (Notes 14 and 30) Right-of-use assets (Note 15) Investment properties (Note 16) Intangible assets (Note 17) Deferred tax assets Other - non - current assets - others (Notes 18 and 30) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 19 and 30) Notes payable Accounts payable (Note 29) Other payables - others Current tax liabilities Lease liabilities - current (Note 15) Current portion of long-term borrowings(Notes 19 and 30) Other current liabilities - others (Note 22) Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 19) Long-term borrowings (Notes 19 and 30) Deferred tax liabilities Lease liabilities - non-current (Note 15) Other non-current liabilities (Note 13) Total noncurrent liabilities Total liabilities EQUITY ATTRIBUTABALE TO OWNERS OF THE COMPANY (Note 21) Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity attributable to owners of the Company NON-CONTROLLING INTERESTS (Note 21) Total equity TOTAL	March 31,2021（Reviewed） Amount ％ $ 5,045,153 9 1,064,380 2 5,437,189 9 60,348 - 11,772,139 20 201,359 - 883,742 2 8,528,904 15 194,471 - 920,446 2 34,108,131 59 13,196 - 1,149,086 2 2,407,539 4 16,390,008 28 1,142,872 2 1,315,234 2 277,987 1 401,956 1 344,423 1 23,442,301 41 $ 57,550,432 100 $ 5,520,572 10 833,076 2 5,845,875 10 1,925,690 3 320,486 1 75,808 - 2,339,713 4 190,196 - 17,051,416 30 2,995,666 5 9,535,420 17 2,662,578 5 231,475 - 1,248,249 2 16,673,388 29 33,724,804 59 12,402,795 22 368,946 1 4,188,871 7 1,442,690 3 6,038,364 10 11,669,925 20 ( 996,604) ( 2) 23,445,062 41 380,566 - 23,825,628 41 $ 57,550,432 100	December 31,2020（Audited） Amount ％ $ 6,108,294 11 - - 5,138,238 9 44,739 - 12,121,573 22 218,637 - 791,068 2 7,492,620 13 61,860 - 644,919 1 32,621,948 58 21,301 - 1,016,306 2 2,306,731 4 16,623,050 30 1,195,535 2 1,356,821 2 282,235 - 397,389 1 367,309 1 23,566,677 42 $ 56,188,625 100 $ 4,403,929 8 534,320 1 5,598,389 10 2,053,754 4 442,184 1 81,002 - 2,211,266 4 188,277 - 15,513,121 28 2,995,374 5 10,190,026 18 2,641,898 5 262,898 1 1,347,006 2 17,437,202 31 32,950,323 59 12,402,795 22 368,946 1 4,188,871 7 1,442,690 3 5,213,715 9 10,845,276 19 ( 782,520) ( 1) 22,834,497 41 403,805 - 23,238,302 41 $ 56,188,625 100	March 31,2020（Reviewed）
			Amount ％ $ 6,574,385 13 - - 4,266,034 8 50,475 - 9,042,612 17 163,173 - 900,880 2 7,450,687 14 66,950 - 742,311 2 29,257,507 56 12,585 - 872,144 2 2,334,412 4 16,924,714 32 998,791 2 1,176,300 2 402,477 1 385,869 1 209,343 - 23,316,635 44 $ 52,574,142 100 $ 4,323,731 8 123,336 - 3,856,970 8 1,475,975 3 159,924 - 45,695 - 3,652,861 7 98,883 - 13,737,375 26 2,994,486 6 9,801,403 19 2,728,456 5 94,169 - 1,335,100 2 16,953,614 32 30,690,989 58 12,402,795 23 356,046 1 3,942,840 8 510,893 1 5,857,191 11 10,310,924 20 ( 1,671,121) ( 3) 21,398,644 41 484,509 1 21,883,153 42 $ 52,574,142 100

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

(With Deloitte & Touche auditors’ review report dated May 7, 2021)

Eternal Materials Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
2021	2020
Amount	Amount $ 7,629,515 6,007,565 1,621,950 452,445 486,408 290,731 80,766 1,310,350 311,600 28,124 29,864 ( 50,580 ) ( 10,060 ) ( 108,284 ) 49,724 ( 61,212) 250,388 ( 46,943) 203,445		％
$ 11,202,419 8,639,843 2,562,576 694,611 524,926 336,171 ( 18,167) 1,537,541 1,025,035 27,636 52,924 ( 48,364 ) ( 34,874 ) ( 71,464 ) 107,548 33,406 1,058,441 ( 230,265) 828,176		100 79 21 6 6 4 1 17 4 - - ( 1 ) - ( 1 ) 1 ( 1) 3 - 3

(Continued)

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	％ 1 - ( 3 ) - ( 2) 5	2020
Amount $ 132,551 16,115 ( 363,982 ) ( 9,100) ( 224,416) $ 603,760 $ 824,649 3,527 $ 828,176 $ 610,565 ( 6,805) $ 603,760 $ 0.66 0.66		Amount $ 127,816 ( 33,508 ) ( 323,845 ) ( 10,344) ( 239,881) ($ 36,436) $ 211,739 ( 8,294) $ 203,445 ( $ 16,693 ) ( 19,743) ($ 36,436) $ 0.17 0.17	％
			2 ( 1 ) ( 4 ) - ( 3) -

(Concluded)

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

(With Deloitte & Touche auditors’ review report dated May 7, 2021)

Eternal Materials Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars, Except Dividends Per Share) (Reviewed, Not Audited)

			Equity Attributable to Owners of	Equity Attributable to Owners of	Equity Attributable to Owners of	the Company
Ordinary Shares $ 12,402,795 - - - - $ 12,402,795 $ 12,402,795 - - - - $ 12,402,795	Capital Surplus $ 368,946 - - - - $ 368,946 $ 356,046 - - - - $ 356,046		Retained Earnings		Unappropriated Earnings $ 5,213,715 824,649 - 824,649 - $ 6,038,364 $ 5,645,452 211,739 - 211,739 - $ 5,857,191		Other Equity	Total Other Equity $ (782,520) - (214,084) (214,084) - $ (996,604) $ (1,442,689) - (228,432) (228,432) - $ (1,671,121)
						Exchange Differences on Translation of The Financial Statements of Foreign Operations $ (1,320,826) - (362,750) (362,750) - $ (1,683,576) $ (1,684,908) - (322,740) (322,740) - $ (2,007,648)	Unrealized Gains and Losses on Financial Assets at Fair Value Through Other Comprehensive Income $ 538,306 - 148,666 148,666 - $ 686,972 $ 242,219 - 94,308 94,308 - $ 336,527
		Legal Reserve $ 4,188,871 - - - - $ 4,188,871 $ 3,942,840 - - - - $ 3,942,840		Special Reserve $ 1,442,690 - - - - $ 1,442,690 $ 510,893 - - - - $ 510,893

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

(With Deloitte & Touche auditors’ review report dated May 7, 2021)

Eternal Materials Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expense Amortization expense Expected credit loss (gain) Net gain on fair value changes of financial assets designated as at fair value through profit or loss Finance costs Interest income Share of the profit of associates and joint ventures Loss on disposal of property, plant and equipment Impairment loss recognized on non-financial assets Others Changes in operating assets and liabilities Notes receivable Notes receivable from related parties Accounts receivable Accounts receivable from related parties Other receivables Inventories Other current assets Notes payable Accounts payable Other payables Other current liabilities Other non-current liabilities Cash generated from operations Interest received Interest paid Income taxes paid Net cash generated from operating activities		For the three months Ended March 31	For the three months Ended March 31
		2021 $ 1,058,441 518,228 7,418 (18,167) (523) 71,464 (27,636) (107,548) 4,771 44,413 (53) (298,951) (15,609) 229,957 18,001 (97,459) (1,080,697) (238,530) 298,756 247,486 (87,110) 63,152 (90,575) 499,229 27,397 (66,054) (350,418) 110,154	2020 $ 250,388 486,107 15,343 80,766 (1,463) 108,284 (28,124) (49,724) 1,439 24,261 37 223,165 6,563 1,402,817 54,703 54,103 (267,456) (79,674) (90,162) (516,894) (325,669) 72,666 (7,168) 1,414,308 25,508 (107,932) (133,641) 1,198,243 (Continued)

Eternal Materials Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in other receivables from related parties Payments for intangible assets Decrease(increase) in long-term lease receivables Increase in other financial assets Decrease in other non-current assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (Decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Increase in guarantee deposits received Repayment of the principal portion of lease liabilities Decrease in non-controlling interests Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the three months Ended March 31	For the three months Ended March 31	For the three months Ended March 31
		2021 $ (1,069,328) 4,156 (480,551) 2,260 1,996 (5,371) 16,721 (135,721) 10,706 (1,655,132) 1,161,925 3,347,074 (3,862,542) 294 (22,038) (16,434) 608,279 (126,442) (1,063,141) 6,108,294 $ 5,045,153		2020 $ (245,357) 245,999 (389,683) 777 3,000 (73,425) (2,548) (19,601) 212 (480,626) (42,056) 3,444,788 (3,414,274) 3,482 (13,567) - (21,627) (131,251) 564,739 6,009,646 $ 6,574,385

(Concluded)

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

(With Deloitte & Touche auditors’ review report dated May 7, 2021)

Eternal Materials Co., Ltd. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Eternal Materials Co., Ltd. (the “Company”) was established in December 1964. The Company is mainly engaged in the research, manufacturing, processing, selling and trading of diversified industrial synthetic resins, epoxy resin, coating, molding compound, copper clad laminates, film materials, photoresist materials, electronic chemical materials, composite materials and bio-medical testing materials.

The Company’s shares have been listed on the Taiwan Stock Exchange (TWSE) since March 1994.

The consolidated financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company’s board of directors and authorized for issue on May 7, 2021.

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

a. The application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC), (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC).

The application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Company and its subsidiaries’ accounting policies.

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b. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

New IFRSs “Annual Improvements to IFRS Standards 2018-2020” Amendments to IFRS 3 “Reference to the Conceptual Framework” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” Amendments to IFRS 16“Covid-19-Related Rent Concessions beyond 30 June 2021” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 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 16 “Property, Plant and Equipment - Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a Contract”	Effective Date Announced by IASB (Note 1)
	January 1, 2022 (Note 2) January 1, 2022 (Note 3) To be determined by IASB April 1,2021(Note 8) January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 (Note 6) January 1, 2023 (Note 7) January 1, 2022 (Note 4) January 1, 2022 (Note 5)

New IFRSs
“Annual Improvements to IFRS Standards 2018-2020”

Amendments to IFRS 3 “Reference to the Conceptual Framework”

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture”

Amendments to IFRS 16“Covid-19-Related Rent Concessions beyond
30 June 2021”

IFRS 17 “Insurance Contracts”

Amendments to IFRS 17

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 16 “Property, Plant and Equipment - Proceeds
before Intended Use”

Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a
Contract”

Effective Date
Announced by IASB (Note 1)

January 1, 2022 (Note 2)
January 1, 2022 (Note 3)
To be determined by IASB
April 1,2021(Note 8)
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 6)
January 1, 2023 (Note 7)
January 1, 2022 (Note 4)
January 1, 2022 (Note 5)

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
Note 3: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
Note 4: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 5: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.
Note 6: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 7: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 8: A lessee should apply the amendment for annual reporting periods beginning on or after April 1, 2021, recognizing the cumulative effect of initial application at the beginning of the annual reporting period.

As of the date the consolidated financial statements were reported to the board of directors for issue, the Company and its subsidiaries are continuously assessing the possible impact that the application of other standards and interpretations will have on the Company and its subsidiaries’ financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

The interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements..

b. Basis of consolidation

The detailed information of subsidiaries (including the percentages of ownership and main businesses) is provided in Note 12 and Tables 7 and 8.

c. Other significant accounting policies

Except for the following, refer to the summary of significant accounting policies and basis of preparation in the consolidated financial statements for the year ended December 31,2020.

1)Retirement Benefits.

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

2)Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated on an interim period’s pre-tax income by applying to the tax rate that would be applicable to expected total annual earnings.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The same critical accounting judgments and key sources of estimation uncertainty of consolidated financial statements have been followed in these consolidated financial statements as those applied in the preparation of the consolidated financial statements of the year ended December 31,2020.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents (investments with original maturities of three months or less) Time deposits		March 31, 2021 $ 20,778 2,781,163 2,243,212 $ 5,045,153		December 31, 2020	March 31, 2020
				$ 11,413 2,841,405 3,255,476 $ 6,108,294	$ 12,023 3,703,754 2,858,608 $ 6,574,385

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7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets－current Hybrid financial assets Structured deposits Financial assets－non-current Non-derivative financial assets Mutual fund Pacven Walden Ventures V, L.P.		March 31, 2021 $ 1,064,380 $ 13,196	December 31, 2020 $ - $ 21,301		March 31, 2020
					$ - $ 12,585

8. NOTES, ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

Notes receivable Notes receivable from related parties Accounts receivable Less: Allowance for loss Accounts receivable from related parties Less: Allowance for loss Other receivables Less: Allowance for loss		March 31, 2021 $ 5,437,189 $ 60,348 $ 12,040,765 268,626) $ 11,772,139 $ 201,673 314) $ 201,359 $ 898,887 15,145) $ 883,742	December 31, 2020 $ 5,138,238 $ 44,739 $ 12,410,546 ( 288,973) $ 12,121,573 $ 219,674 ( 1,037) $ 218,637 $ 806,213 ( 15,145) $ 791,068		March 31, 2020
	( ( (		( ( (	( ( (	$ 4,266,034 $ 50,475 $ 9,297,453 254,841) $ 9,042,612 $ 177,077 13,904) $ 163,173 $ 916,025 15,145) $ 900,880

a. Notes receivable and accounts receivable

The notes and accounts receivable of the Company and its subsidiaries are measured at amortized cost. For the related credit management policies, refer to Note 28.

The loss allowance of the Company and its subsidiaries’ accounts receivable is recognized by using lifetime expected credit losses. The lifetime expected credit losses on accounts receivable are estimated using a provision matrix approach considering the past collection experience of the customers and an increase in late payments over the credit period.

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The following table details the loss allowance of notes and accounts receivable based on the Company and its subsidiaries’ provision matrix.

March 31, 2021

Gross carrying amount Loss allowance (lifetime ECL) Amortized cost December 31, 2020 Gross carrying amount Loss allowance (lifetime ECL) Amortized cost March 31, 2020 Gross carrying amount Loss allowance (lifetime ECL) Amortized cost	Not Past Due $ 15,759,400 (14,881) $ 15,744,519 Not Past Due $ 15,766,467 (15,613) $ 15,750,854 Not Past Due $ 11,679,565 (10,537) $ 11,669,028	0 to 30 Days 31 to 90 Days $ 1,345,109 $ 363,969 (7,313) (13,357) $ 1,337,796 $ 350,612 0 to 30 Days 31 to 90 Days $ 1,335,162 $ 423,402 (9,468) (19,551) $ 1,325,694 $ 403,851 0 to 30 Days 31 to 90 Days $ 904,176 $ 827,752 (9,994) (42,295) $ 894,182 $ 785,457	91 to 180 Days $ 45,774 (16,423) $ 29,351 91 to 180 Days $ 87,207 (50,270) $ 36,937 91 to 180 Days $ 214,646 (51,479) $ 163,167	Over 180 Days $ 225,723 (216,966) $ 8,757 Over 180 Days $ 200,959 (195,108) $ 5,851 Over 180 Days $ 164,900 (154,440) $ 10,460	Total $17,739,975 (268,940) $ 17,471,035 Total $ 17,813,197 (290,010) $ 17,523,187 Total $ 13,791,039 (268,745) $ 13,522,294

The movements of the loss allowance for doubtful accounts receivable were as follows:

Balance, beginning of the period Recognized (reversed) Written-off Effects of foreign currency exchange differences Balance, end of the period		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 290,010 (18,167) (332) (2,571) $ 268,940	2020 $ 221,717 65,621 (16,357) (2,236) $ 268,745

b. Other receivables

The Company and its subsidiaries’ allowance for loss are based on historical experience and current financial circumstances. The Company and its subsidiaries assessed that some of the other receivables could not be recovered. For the three months ended March 31, 2020, the Company recognized a loss allowance of $15,145 thousand.

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9. INVENTORIES

Raw materials Supplies Finished goods Inventory in transit		March 31, 2021 $ 3,666,123 132,616 4,414,951 315,214 $ 8,528,904	December 31, 2020 $ 2,976,856 165,834 4,098,371 251,559 $ 7,492,620		March 31, 2020
					$ 2,708,281 187,018 4,253,244 302,144 $ 7,450,687

The cost of inventories recognized as operating costs for the three months ended March 31, 2021 and 2020 was NT$8,639,843 thousand and NT$6,007,565 thousand, respectively, including loss on inventory NT$44,413 thousand and reversal of inventory NT$1,524 thousand, respectively.

10. OTHER FINANCIAL ASSETS - CURRENT

Time deposits with original maturities of more than three months	March 31, 2021 $ 194,471	December 31, 2020 $ 61,860	March 31, 2020 $ 66,950

11. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

Domestic investments Listed shares President Securities Corp. Unlisted shares Universal Venture Capital Investment Corp. Universal Development & Investment Capital I Co., Ltd. Der Yang Biotechnology Venture Capital Co., Ltd. Foreign investments Listed shares TBG Diagnostics Limited (TBG stocks)		March 31, 2021 $ 821,030 37,836 - 3,739 862,605 104,729	December 31, 2020 $ 642,849 32,602 - 3,769 679,220 185,302		March 31, 2020
					$ 445,281 33,494 16,874 5,381 501,030 202,264

(Continued)

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Unlisted shares Grace THW Holdings Limited		March 31, 2021 $ 181,752 286,481 $ 1,149,086	December 31, 2020 $ 151,784 337,086 $ 1,016,306		March 31, 2020
					$ 168,850 371,114 $ 872,144

These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Company and its subsidiaries’ strategy of holding these investments for long-term purposes.

12. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements were as follows:

Investor	Investee	Main Businesses	Percentage of Ownership (%)	Percentage of Ownership (%)	Percentage of Ownership (%)	Additional Descriptions
			March 31, 2021	December 31, 2020	March 31, 2020
The Company Eternal Global (BVI) Co., Ltd. Eternal Holdings Inc. Eternal International (BVI) Co., Ltd. E-Chem Corp. Eternal Nanyang Investment Co., Ltd. Mixville Holdings Inc. High Expectation Limited	Eternal Holdings Inc. Eternal Global (BVI) Co., Ltd. Mixville Holdings Inc. CHOU-KOU Materials Co., Ltd. Nikko-Materials Co., Ltd. Eternal Electronic Material (Thailand) Co., Ltd. New E Materials Co., Ltd. Eternal Materials (Malaysia) Sdn. Bhd. Elga Europe S.r.l. Eternal Chemical (China) Co., Ltd Changhe International Trading (GZFTZ) Co., Ltd. Eternal International (BVI) Co., Ltd. E-Chem Corp. Eternal Nanyang Investment Co., Ltd. PT Eternal Materials Indonesia Eternal Technology Corporation Eternal Chemical (China) Co., Ltd. Eternal Specialty Materials (Zhuhai) Co., Ltd. Eternal Materials (Malaysia) Sdn. Bhd. High Expectation Limited Eternal Materials (Guangdong) Co., Ltd.	International investment International investment International investment Selling, trading and providing services of resins material, electronic material and other related products Manufacturing and selling of dry film photoresist and vacuum laminator Trading services, cutting and selling of dry film photoresist Researching, developing, manufacturing and selling of photoelectric, semiconductor process related electronic chemical materials and equipment spare parts Manufacturing, selling, trading and providing service of resins material related products Manufacturing, selling, agency and processing of electronic chemical products Manufacturing and selling of resins material and processing products International trading, commercial trading, entrepot trading, products displayed, bonded warehousing and business consulting services International investment International investment International investment Selling, trading of chemical Manufacturing and selling of photoresist Managing, investing consulting services, researching, leasing, manufacturing and selling of resins material and photoelectric chemical materials Manufacturing and selling of acrylic resin and methacrylic acid Manufacturing, selling, trading and providing services of resins material related products International investment Manufacturing and selling of adhesives, resins material and processing of products	100 100 100 100 100 75 62.80 - 72.68 100 100 100 100 90 67 100 100 90 100 100 100	100 100 100 100 100 75 62.80 - 72.68 100 100 100 100 90 - 100 100 90 100 100 100	100 100 100 100 100 75 62.80 90 72.68 100 100 100 100 - - 100 100 90 - 100 100	1) 1) 1) 1) 1) 1) 1) 1) and 4) 1) 1) 1) 1) 1) and 2) 1) and 3) 1) 1) 1) and 4) 1) 1)

(Continued)

16 -

Investor	Investee	Main Businesses	Percentage of Ownership (%)	Percentage of Ownership (%)	Percentage of Ownership (%)	Additional Descriptions
			March 31, 2021	December 31, 2020	March 31, 2020
Eternal (China) Investment Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Nikko-Materials Co., Ltd.	Eternal Optical Material (Suzhou) Co., Ltd. Eternal Photoelectric Material Industry (Yingkou) Co., Ltd. Eternal Synthetic Resins (Changshu) Co., Ltd. Eternal Chemical (Chengdu) Co., Ltd. Eternal Electronic (Suzhou) Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Eternal Sun A. (Suzhou) Co., Ltd. Eternal Chemical (Tianjin) Co., Ltd. Eternal Specialty Materials (Suzhou) Co., Ltd. Eternal Photoelectric Material Industry (Kunshan) Co., Ltd Elga Europe S.r.l. Eternal Materials (Changzhou) Co., Ltd. Eternal Photoelectric Material Industry (Kunshan) Co., Ltd. Nikko Mechanics Co., Ltd.	Manufacturing and selling of optical film Researching, developing and manufacturing of photoresist dry film, liquid photo imaginable solder masks and printed circuit board related materials Manufacturing and selling of unsaturated polyester resin Researching and developing resins material and products Researching, developing, and manufacturing of dry film photoresist and dry film solder mask which used in electronic materials, researching resin materials and selling, providing after sales service of self-produced products Coating, slitting, cutting, processing, and selling of photoresist Researching, developing, manufacturing and selling of electronic high-tech chemical and related products Researching, developing, and manufacturing of optical protective film which used in display, and selling, providing after sales service of self-produced products Manufacturing and selling of adhesives, resins material and processing products Researching and developing chemical products, and selling, providing technical services of self-produced products Cutting and processing of dry film photoresist and selling self-produced products Manufacturing, selling, agency and processing of electronic chemical products Selling of fluorocarbon resin and polyester resin products Cutting and processing of dry film photoresist and selling self-produced products Designing, manufacturing, selling of industrial machinery and machine tool	100 100 100 100 100 100 100 60 100 100 - 22.32 - - 100	100 100 100 100 100 100 100 60 100 100 - 22.32 - - 100	100 100 100 100 100 100 100 60 100 100 84.06 22.32 100 15.94 80	1) 1) 1) 1) 1) 1) 1) 1) and 6) 1) 1) and 5) 1) and 6) 1) and 7)

(Concluded)

1) This is an immaterial subsidiary for which the consolidated financial statements are not reviewed by the Company’s independent auditors.
2) The company was established as a new subsidiary in September 2020.
3) The company was established as a new subsidiary in January 2021.
4) The Company had reorganization in September 2020 to transfer the equity of subsidiary Eternal Materials (Malayisa) Sdn. Bhd. to subsidiary Eternal Nanyang Investment Co., Ltd.
5) The divestment was resolved by the board of directors in December 2019, and the liquidation was completed in July 2020.
6) The disposal was resolved by the board of directors in May 2020, and the disposal was completed in August 2020.
7) The common shares of Nikko Mechanics Co., Ltd. were sold by Nikko-Materials Co., Ltd in the second quarter of 2020. Nikko-Materials Co., Ltd.’s shareholding ratio in Nikko Mechanics Co., Ltd. Increased from 80% to 100%.
b. The Company and its subsidiaries did not have any subsidiary with material non-controlling interests.
17 -

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (INCLUDING CREDIT BALANCE)

			March 31,		December	December	31,			March 31,
			2021			2020				2020
Investments accounted for using the equity method
Investments in associates		$	2,407,539		$	2,306,731			$	2,334,412
Credit balance of investments accounted for using the equity
method(recorded as other non-current liabilities)
Investments in associates	( $		16,455 )	( $		14,095 )		(	$	7,441 )
Investments in joint ventures			-				-	(		28,885)
	($		16,455)	($		14,095)		(	$	36,326)

a. Investments accounted for using the equity method

Investments in associates

Associates that are not individually material		March 31, 2021 $ 2,407,539		December 31, 2020 $ 2,306,731		March 31, 2020
						$ 2,334,412

Information about associates that are not individually material was as follows:

The Company and its subsidiaries’ share of Net profit for the period Other comprehensive income Total comprehensive income for the period		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 110,030 (9,222) $ 100,808	2020 $ 57,789 (10,679) $ 47,110

Fair values (Level 1) of investments in associates with available published price quotation are summarized as follows:

Daxin Materials Corporation		March 31, 2021 $ 2,208,865		December 31, 2020 $ 2,005,078		March 31, 2020
						$ 1,632,640

The Company and its subsidiaries held 50% ownership of DSM Eternal Resins (Kunshan) Co., Ltd., but had no control over it. Therefore, DSM Eternal Resins (Kunshan) Co., Ltd. was not included in the consolidated financial statements.

18 -

b. Credit balance of investments accounted for using the equity method

Associates that are not individually material Joint ventures that are not individually material	March 31, 2021 ( $ 16,455 ) - ($ 16,455)	December 31, 2020 ( $ 14,095 ) - ($ 14,095)	March 31, 2020
			( $ 7,441 ) (28,885) ($ 36,326)

Information about associates and joint ventures that are not individually material was as follows:

The Company and its subsidiaries’ share of Net loss for the period Other comprehensive income Total comprehensive loss for the period		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ (2,482) 122 $ (2,360)	2020 $ (8,065) 335 $ (7,730)

The Company and its subsidiaries’ share of losses of the associates and joint ventures exceeded their interests in those associates and joint ventures. After reducing their equity to zero, the Company and its subsidiaries recognized additional losses only to the extent that they have incurred legal obligations or constructive obligations, or made payments on behalf of those associates and joint ventures and transferred them to the credit balance of investments accounted for using the equity method (recorded as other non-current liabilities).

For the three months ended March 31, 2021 and 2020, the Company and its subsidiaries’ investments accounted for using the equity method (including credit balance) are based on the associates’ financial statements which have not been reviewed for the same period.

Refer to Tables 7 and 8 for the main businesses and countries of incorporation of the associates and joint ventures.

14. PROPERTY, PLANT AND EQUIPMENT

For the Three Months Ended December 31, 2021

Carrying amount at January 1, 2021 Cost Balance at January 1, 2021 Additions Disposals Transferred to investment properties	Land $ 2,680,444 $ 2,680,444 2,979 - -	Buildings $ 5,362,540 $ 11,323,614 138,347 (3,004 ) 15,710	Machinery and Equipment $ 6,273,237 $ 21,620,157 316,026 (50,229 ) -	Storage Equipment $ 656,418 $ 1,559,720 16,866 (4,161 ) -	Examination Equipment $ 541,695 $ 1,644,996 22,842 (4,684 ) -	Other Equipment E $ 358,188 $ 902,637 33,912 (6,463 ) -	Construction in Progress and quipment to be Inspected Total $ 750,528 $ 16,623,050 $ 750,528 $ 40,482,096 (158,849 ) 372,123 - (68,541 ) - 15,710 (Continued)

19 -

Effect of foreign currency exchange difference Balance at March 31, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation Disposals Transferred to investment properties Effect of foreign currency exchange difference Balance at March 31, 2021 Carrying amount at March 31, 2021	Land (8,430) $ 2,674,993 $ - - - - - $ - $ 2,674,993	Buildings (84,997) $ 11,389,670 $ 5,961,074 137,871 (954 ) 713 (37,256) $ 6,061,448 $ 5,328,222	Machinery and Equipment (160,639) $ 21,725,315 $ 15,346,920 274,598 (47,140 ) - (99,156) $ 15,475,222 $ 6,250,093	Storage Equipment (10,300) $ 1,562,125 $ 903,302 16,863 (3,813 ) - (3,930) $ 912,422 $ 649,703	Examination Equipment (4,618) $ 1,658,536 $ 1,103,301 30,362 (4,502 ) - (2,670) $ 1,126,491 $ 532,045	Other Equipment E (12,010) $ 918,076 $ 544,449 20,101 (5,101 ) - (8,109) $ 551,340 $ 366,736	Construction in Progress and quipment to be Inspected (3,463) $ 588,216 $ - - - - - $ - $ 588,216	Total (284,457) $ 40,516,931 $ 23,859,046 479,795 (61,510 ) 713 (151,121) $ 24,126,923 $ 16,390,008

(Concluded)

For the Three Months Ended March 31, 2020

Carrying amount at January 1, 2020 Cost Balance at January 1, 2020 Additions Disposals Transferred to investment properties Impairment loss Reclassification Effect of foreign currency exchange difference Balance at March 31, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation Disposals Transferred to investment properties Impairment loss Effect of foreign currency exchange difference Reclassification Balance at March 31, 2020 Carrying amount at March 31, 2020	Land $ 2,713,753 $ 2,713,753 - - (43,451) - - (1,117) $ 2,669,185 $ - - - - - - - $ - $ 2,669,185	Buildings $ 5,715,567 $ 11,180,745 41,700 (556 ) (57,135 ) - 13,172 (96,962) $ 11,080,964 $ 5,465,178 133,870 (209 ) (16,718 ) 3,589 8,196 (32,498) $ 5,561,408 $ 5,519,556	Machinery and Equipment $ 6,297,691 $ 20,587,401 306,800 (13,178 ) - - - (160,795) $ 20,720,228 $ 14,289,710 262,674 (11,744 ) - 20,135 - (80,134) $ 14,480,641 $ 6,239,587	Storage Equipment $ 667,141 $ 1,500,221 8,472 (2,130 ) - - - (14,423) $ 1,492,140 $ 833,080 17,780 (1,993 ) - 37 - (4,830) $ 844,074 $ 648,066	Examination Equipment $ 472,136 $ 1,475,283 28,788 (1,116 ) - - - (5,282) $ 1,497,673 $ 1,003,147 26,772 (1,040 ) - - - (2,844) $ 1,026,035 $ 471,638	Other Equipment E $ 363,704 $ 862,673 4,415 (4,040 ) - - (13,172) (7,525) $ 842,351 $ 498,969 17,219 (3,818 ) - 1,629 (8,196 ) (3,879) $ 501,924 $ 340,427	Construction in Progress and quipment to be Inspected $ 1,205,554 $ 1,205,554 (153,822 ) - - (327) - (15,150) $ 1,036,255 $ - - - - - - - $ - $ 1,036,255	Total $ 17,435,546 $ 39,525,630 236,353 (21,020 ) (100,586 ) (327) - (301,254) $ 39,338,796 $ 22,090,084 458,315 (18,804 ) (16,718 ) 25,390 - (124,185) $ 22,414,082 $ 16,924,714

Considering future economic benefits, the plant, machinery and other equipment of Nikko-Materials Co., Ltd. which were expected to use for production have been evaluated the present value of the cash flow generated from operations at a discount rate of 5.95% as a recoverable amount. According to the assessment, the recoverable amount was less than the carrying amount. For the three months ended March 31, 2020, the impairment loss of $25,785 thousand (including the impairment loss of intangible assets of $68 thousand) was recognized in the current year (recorded as other gains and losses).

The above items of property, plant and equipment are depreciated on a straight-line basis over the following useful lives:

Buildings 5-50 years Machinery and equipment 3-20 years Storage equipment 5-20 years Examination equipment 5-15 years Other equipment 3-12 years

Refer to Note 30 for the amounts of property, plant and equipment pledged by the Company and its subsidiaries as collateral for bank borrowings.

Land (including those recorded as investment properties) held by the Company was revalued in 1980, 1990, 1997 and 2004, and as of March 31, 2021, December 31, 2020 and March 31, 2020, the revaluation increments of the land was $1,977,218 thousand.

20 -

15. LEASE ARRANGEMENTS

a. Right-of-use asset

Carrying amounts Land Buildings Machinery Storage equipment Other equipment		March 31, 2021 $ 854,460 189,889 74,489 906 23,128 $ 1,142,872		December 31, 2020 $ 871,970 214,559 83,674 957 24,375 $ 1,195,535		March 31, 2020
						$ 869,249 77,521 26,058 - 25,963 $ 998,791

Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Machinery Storage equipment Other equipment		For the Three Month Ended March 31	For the Three Month Ended March 31
		2021 $ 6,060 $ 5,420 14,994 4,363 51 2,646 $ 27,474	2020 $ 1,364 $ 5,402 11,307 2,062 - 2,475 $ 21,246

In addition, part of the land use rights for land located in mainland China is subleased under operating leases, and the relevant right-of-use assets are recorded as investment properties, refer to Note 16 for the details.

b. Lease liabilities

Carrying amounts Current Non-current		March 31, 2021 $ 75,808 $ 231,475	December 31, 2020 $ 81,002 $ 262,898		March 31, 2020
					$ 45,695 $ 94,169

Range of discount rate (%) for lease liabilities was as follows:

Land Buildings Machinery Storage equipment Other equipment	March 31, 2021 0.93～6.66 0.79～5.35 2.7 1.67 0.86～5.35	December 31, 2020 0.93～6.66 0.79～9.00 2.7 1.67 0.86～5.35	March 31, 2020
			0.93～6.66 0.86～5.35 1.67～4.40 - 0.86～5.35

21 -
c. Material lease activities and terms

Major lease arrangements of the Company’s subsidiaries are land use rights contracts with lease terms of 50 to 56 years.

d. Other lease information

Expenses relating to short-term and low-value asset leases Total cash outflow for all lease arrangements (including short-term and low-value asset leases)		For the Three Month Ended March 31	For the Three Month Ended March 31
		2021 $ 7,952 $ 30,810	2020 $ 7,155 $ 21,131

16. INVESTMENT PROPERTIES

For the Three Months Ended March 31, 2021

Carrying amount at January 1, 2021 Cost Balance at January 1, 2021 Transferred to property, plant and equipment Transferred to investment properties Effects of foreign currency exchange differences Balance at March 31, 2021 Accumulated depreciation andimpairment Balance at January 1, 2021 Depreciation Transferred to property, plant and equipment Transferred to investment properties Effects of foreign currency exchange differences Balance at March 31, 2021 Carrying amount at March 31, 2021	Land $ 59,827 $ 59,827 - - (2,879) $ 56,948 $ - - - - - $ - $ 56,948	Buildings $ 1,227,604 $ 1,407,484 (15,710) - (13,794) $ 1,377,980 $ 179,880 10,424 (713) - (2,349) $ 187,242 $ 1,190,738	Right-of-use Assets $ 69,390 $ 73,714 - (847) (546) $ 72,321 $ 4,324 535 - (50) (36) $ 4,773 $ 67,548	Total $ 1,356,821
				$ 1,541,025 (15,710) (847) (17,219)
				$ 1,507,249
				$ 184,204 10,959 (713) (50) (2,385)
				$ 192,015
				$ 1,315,234

22 -

For the Three Months Ended March 31, 2020

Carrying amount at January 1, 2020 Cost Balance at January 1, 2020 Transferred from property, plant and equipment Effects of foreign currency exchange differences Balance at March 31, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation Transferred from property, plant and equipment Effects of foreign currency exchange differences Balance at March 31, 2020 Carrying amount at March 31, 2020	Land $ 17,057 $ 17,057 43,451 (294) $ 60,214 $ - - - - $ - $ 60,214	Buildings $ 1,024,946 $ 1,147,244 57,135 (13,920) $ 1,190,459 $ 122,298 6,014 16,718 (1,625) $ 143,405 $ 1,047,054	Right-of-use Assets $ 70,374 $ 72,501 - (842) $ 71,659 $ 2,127 532 - (32) $ 2,627 $ 69,032	Total $ 1,112,377
				$ 1,236,802 100,586 (15,056)
				$ 1,322,332
				$ 124,425 6,546 16,718 (1,657)
				$ 146,032
				$ 1,176,300

The investment properties were leased for terms of 3 to 15 years.

The maturity analysis of lease payments receivable under operating leases of investment properties is as follows:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 onwards		March 31, 2021 $ 256,160 188,786 135,733 99,614 $ 87,867 365,373 $ 1,133,533		December 31, 2020 $ 259,117 221,217 136,481 112,848 $ 84,540 390,794 $ 1,204,997		March 31, 2020
						$ 234,881 247,256 180,602 128,655 $ 95,407 446,668 $ 1,333,469

The fair value of main part of the subsidiaries’ right-of-use assets and buildings located in China was evaluated by independent appraisers, and the rest which was reference to market evidence of transaction prices for similar properties and using income approach was evaluated by the management of the Company. The Company measured the fair value by using Level 3. The fair values were as follows.

Fair value		March 31, 2021 $ 3,027,121		December 31, 2020 $ 3,027,121		March 31, 2020
						$ 2,988,890

23 -

The following items of investment properties are depreciated on a straight-line basis over their useful lives as follow:

Buildings Right-of-use assets

20-50 years 34-36 years

Operating income and expenses directly related to investment properties

Rental income Operating expenses directly related to investment properties		For the Three Month Ended March 31	For the Three Month Ended March 31
		2021 $ 69,937 $ 26,938	2020 $ 50,689 $ 21,821

17. INTANGIBLE ASSETS

For the Three Months Ended March 31, 2021

Carrying amount at January 1, 2021 Cost Balance at January 1, 2021 Additions Disposals Effects of foreign currency exchange differences Balance at March 31, 2021 Accumulated amortization and impairment Balance at January 1, 2021 Amortization expense Disposals Effects of foreign currency exchange differences Balance at March 31, 2021 Carrying amount at March 31, 2021	Goodwill $ 38,892 $ 75,892 - - (2,618) $ 73,274 $ 37,000 - - - $ 37,000 $ 36,274	Expertise Customer Relationships $ - $ - $ 127,513 $ 104,038 - - - - - - $ 127,513 $ 104,038 $ 127,513 $ 104,038 - - - - - - $ 127,513 $ 104,038 $ - $ -	Computer Software $ 223,655 $ 239,226 1,749 - - $ 240,975 $ 15,571 3,769 - - $ 19,340 $ 221,635	Others $ 19,688 $ 143,163 3,622 (143 ) (15,541) $ 131,101 $ 123,475 2,863 (143 ) (15,172) $ 111,023 $ 20,078	Total $ 282,235 $ 689,832 5,371 (143 ) (18,159) $ 676,901 $ 407,597 6,632 (143 ) (15,172) $ 398,914 $ 277,987

24 -

For the Three Months Ended March 31, 2020

Carrying amount at January 1, 2020 Cost Balance at January 1, 2020 Additions Effects of foreign currency exchange differences Balance at March 31, 2020 Accumulated amortization and impairment Balance at January 1, 2020 Amortization expense Impairment loss Effects of foreign currency exchange differences Balance at March 31, 2020 Carrying amount at March 31, 2020	Goodwill $ 75,850 $ 75,850 - 394 $ 76,244 $ - - - - $ - $ 76,244	Expertise Customer Relationships $ 87,370 $ 61,927 $ 127,513 $ 104,038 - - - - $ 127,513 $ 104,038 $ 40,143 $ 42,111 3,542 3,715 - - - - $ 43,685 $ 45,826 $ 83,828 $ 58,212	Computer Software $ 78,254 $ 82,736 72,690 - $ 155,426 $ 4,482 1,357 - - $ 5,839 $ 149,587	Others $ 40,381 $ 128,722 735 (3,186) $ 126,271 $ 88,341 6,214 68 (2,958) $ 91,665 $ 34,606	Total $ 343,782 $ 518,859 73,425 (2,792) $ 589,492 $ 175,077 14,828 68 (2,958) $ 187,015 $ 402,477

The Company and its subsidiaries will test the recoverable amount of intangible assets at the end of the annual financial reporting period.

The subsidiary Elga Europe S.r.l. tested the recoverable amount of intangible assets (including goodwill, expertise and customer relationships, etc.) for annual financial reporting periods ending on December 31,2020 . The recoverable amount is based on the cash flow generated from operations at a discount rate of 7.21%. According to the assessment, the recoverable amount was less than the carrying amount. Therefore, an impairment loss of $162,055 thousand (recorded as other gains and losses) was recognized in 2020.

Intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Expertise 9 years Customer relationships 7 years Computer software 2-20 years Other intangible assets 3-20 years

18. FINANCE LEASE RECEIVABLES

The Company and its subsidiaries entered into a lease agreement with an associate Allnex - Eternal Resins (Guangdong) Co., Ltd. for the leasing out of machinery and equipment for ten years, and the implicit interest rate in the lease was 4.84%-6.23%. This agreement was deemed as a sale agreement. The gain on disposal will be deferred and subsequently recognized as profit over the lease term. As of March 31, 2021, December 31, 2020 and March 31, 2020, the balance of finance lease receivables generated from the aforementioned transactions was $27,070 thousand, $38,012 thousand, and $64,232 thousand, respectively.

The Company and its subsidiaries measured the loss allowance of the finance lease receivables based on lifetime expected credit losses. As of March 31, 2021, December 31, 2020 and March 31, 2020, no loss allowance was recognized.

25 -

The composition of finance lease receivables (including related parties) is as follows:

Unamortized lease payments Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 onwards Loss: Unearned financial income Finance lease receivable (recorded as other non-current assets - other)		March 31, 2021 $ 26,151 27,078 18,811 18,718 18,625 69,766 179,149 32,628) $ 146,521	December 31, 2020 $ 27,750 27,284 26,817 18,860 18,767 76,392 195,870 ( 34,846) $ 161,024		March 31, 2020
	(		(	(	$ 38,598 10,916 10,463 2,365 2,274 6,278 70,894 6,662) $ 64,232

19. BORROWINGS

a. Short-term borrowings

Type of Borrowings
Interest Rate
Range (%)
March 31, 2021
Mortgage secured loans
0.00-3.50

Unsecured loans
0.58-3.71
Purchase loans
1.04-2.90
Secured loans
1.00-4.35

December 31, 2020
Mortgage secured loans
0.00-3.30

Unsecured loans
0.68-3.71
Purchase loans
1.13-3.10
Secured loans
1.00-4.35

March 31, 2020
Mortgage secured loans
0.57-3.15

Unsecured loans
1.29-4.35
Purchase loans
1.77-4.35
Secured loans
3.14-4.35

Amount
$ 390,489
3,649,304
243,584
1,237,195
$ 5,520,572
$ 271,782
2,607,208
219,393
1,305,546
$ 4,403,929
$ 352,462
2,049,454
183,385
1,738,430
$ 4,323,731

26 -

b. Long-term borrowings

Type of Borrowings
Agreement Period
and Interest Payable
Schedule
Interest Rate
Range (%)
March 31, 2021
Mortgage secured loans
From December 17, 2010
to December 31, 2025.
Interest is paid based
on schedule.
0.86-2.70

Secured loans
From September 17,
2020 to November 25,
2025. Interest is paid
based on schedule.
1.14-1.46
Unsecured loans
From July 28, 2016 to
October 2, 2023.
Interest is paid based
on schedule.
0.63-3.85

Long-term bills payable
Commercial paper
Revolving credit, the
period of the
agreement is five
years. Maturity date is
May 2023. Only
banking surcharge and
interests have to be
paid before the
maturity date.
1.27
Less: Unamortized discounts

Less: Current portion of
long-term borrowings

December 31, 2020
Mortgage secured loans
From December 17, 2010
to December 31, 2025.
Interest is paid based
on schedule.
0.86-2.70

Secured loans
From September 17,
2018 to November 25,
2025. Interest is paid
based on schedule.
1.16-1.50

Unsecured loans
From July 28, 2016 to
October 2, 2023.
Interest is paid based
on schedule.
0.60-3.85

Amount
$ 70,094
1,622,685
$ 9,282,875

10,975,654
900,000

(521)

899,479
11,875,133
(2,339,713)

$ 9,535,420
$ 80,874
1,599,100
$ 9,821,886

11,501,860
(Continued)

27 -

Type of Borrowings
Agreement Period
and Interest Payable
Schedule
Interest Rate
Range (%)
Long-term bills payable
Commercial paper
Revolving credit, the
period of the
agreement is five
years. Maturity date is
May 2023. Only
banking surcharge and
interests have to be
paid before the
maturity date.
1.28
Less: Unamortized discounts

Less: Current portion of
long-term borrowings

March 31, 2020
Mortgage secured loans
From December 17, 2010
to December 31, 2025.
Interest is paid based
on schedule.
0.86-2.70

Secured loans
From September 17,
2018 to September 17,
2021. Interest is paid
based on schedule.
1.20-5.17
Unsecured loans
From August 17, 2015 to
October 2, 2023.
Interest is paid based
on schedule.
0.65-4.30

Long-term bills payable
Commercial paper
Revolving credit, the
period of the
agreement is five
years. Maturity date is
May 2023. Only
banking surcharge and
interests have to be
paid before the
maturity date.
1.40
Less: Unamortized discounts

Amount
900,000

(568)

899,432
12,401,292
(2,211,266)

$ 10,190,026
$ 98,278
2,310,360
10,146,440

12,555,078
900,000

(814)

899,186
13,454,264
(Continued)

28 -

Type of Borrowings Agreement Period and Interest Payable Schedule Interest Rate Range (%) Less: Current portion of long-term borrowings	Amount $ (3,652,861) $ 9,801,403 (Concluded)

The above commercial paper was issued by Taiwan Cooperative Bills Finance Corporation and International Bills Finance Corporation and guaranteed by a syndicated credit line from 8 banks led by E.SUN Commercial Bank, Ltd.

c. Facility agreements and financial covenants
1) During the period of the credit facility agreements, the Company and its subsidiaries made agreements with the creditors that the current ratio, liability ratio, interest coverage ratio and net tangible assets of the consolidated financial statements will be maintained within a certain specified ratio or amount and reviewed at least once half a year or a year. If the Company or its subsidiaries breach these clauses, the bank and syndicated banks can cancel the credit line or declare that part or all of the loan together with accrued interest immediately due. The Company was in compliance with the syndicated credit facility agreements based on its consolidated financial statements for the years ended December 31, 2020 and 2019.
2) As of March 31, 2021, the Company and its subsidiaries utilized the credits under signed facility agreements of the following banks.

Bank	Currency	Credit line
Bank SinoPac Co., Ltd.	NTD	$ 1,200,000
HSBC Bank (Taiwan) Limited	NTD	600,000
KGI Bank Co., Ltd.	NTD	600,000
E.SUN Commercial Bank, Ltd.	NTD	200,000
Taipei Fubon Commercial Bank Co., Ltd.	EUR	5,000

3) As of March 31, 2021, the Company and its subsidiaries executed syndicated credit facility agreements with the following banks.

In November, 2020, the subsidiary entered into a syndicated credit facility agreement with 5 banks led by Taipei Fubon Commercial Bank Co., Ltd. for a USD $50,000 thousand credit line; the proceeds are for expanding medium-term working capital and increase capital to repay the subsidiaries’ existing liabilities.

In November 2017, the Company entered into a syndicated credit facility agreement with 8 banks led by E.SUN Commercial Bank, Ltd. for a NT$4,200,000 thousand credit line; the proceeds are for repaying liabilities and expanding medium-term working capital.

4) Refer to Note 30 for the assets pledged as collateral for bank borrowings of the Company and its subsidiaries.
29 -

d. Bonds Payable

5 year secured bonds - issued at par value Issued in November 2019. Interest at 0.82%, bullet repayment, payable annually. Less: Issuance cost		March 31, 2021 $ 3,000,000 (4,334) $ 2,995,666		December 31, 2020 $ 3,000,000 (4,626) $ 2,995,374		March 31, 2020
						$ 3,000,000 (5,514) $ 2,994,486

The above bonds payable’s proceeds are for repaying liabilities. In October 2019, the Company entered into a syndicated guarantee facility agreement with 4 banks led by Bank of Taiwan for a NT$3,024,600 thousand credit line.

20. RETIREMENT BENEFIT PLANS

For the three months ended March 31, 2021 and 2020, the pension expenses of defined benefit plans were $8,714 thousand and $10,577 thousand, respectively, and these were calculated based on the pension cost rate determined by the actuarial calculation on December 31, 2020 and 2019, respectively.

21. EQUITY

a. Share capital

b. Capital surplus March 31, 2021 December 31, 2020 March 31, 2020 Number of shares authorized (in thousands) 1,800,000 1,800,000 1,800,000 Shares authorized $ 18,000,000 $ 18,000,000 $ 18,000,000 Number of shares issued and fully paid (in thousands) 1,240,280 1,240,280 1,240,280 Shares issued $ 12,402,795 $ 12,402,795 $ 12,402,795 March 31, 2021 December 31, 2020 March 31, 2020 May be used to offset deficit, distributed as cash or transferred to share capital (Note) Additional paid-in capital $ 309,017 $ 309,017 $ 309,017 Treasury share transactions 19,642 19,642 19,642 The difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition 12,872 12,872 30 341,531 341,531 328,689 May be used to offset deficit only Share of change in equities of associates or joint ventures 27,357 27,357 27,357 Others 58 58 - 27,415 27,415 27,357 $ 368,946 $ 368,946 $ 356,046	b. Capital surplus March 31, 2021 December 31, 2020 March 31, 2020 Number of shares authorized (in thousands) 1,800,000 1,800,000 1,800,000 Shares authorized $ 18,000,000 $ 18,000,000 $ 18,000,000 Number of shares issued and fully paid (in thousands) 1,240,280 1,240,280 1,240,280 Shares issued $ 12,402,795 $ 12,402,795 $ 12,402,795 March 31, 2021 December 31, 2020 March 31, 2020 May be used to offset deficit, distributed as cash or transferred to share capital (Note) Additional paid-in capital $ 309,017 $ 309,017 $ 309,017 Treasury share transactions 19,642 19,642 19,642 The difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition 12,872 12,872 30 341,531 341,531 328,689 May be used to offset deficit only Share of change in equities of associates or joint ventures 27,357 27,357 27,357 Others 58 58 - 27,415 27,415 27,357 $ 368,946 $ 368,946 $ 356,046	b. Capital surplus March 31, 2021 December 31, 2020 March 31, 2020 Number of shares authorized (in thousands) 1,800,000 1,800,000 1,800,000 Shares authorized $ 18,000,000 $ 18,000,000 $ 18,000,000 Number of shares issued and fully paid (in thousands) 1,240,280 1,240,280 1,240,280 Shares issued $ 12,402,795 $ 12,402,795 $ 12,402,795 March 31, 2021 December 31, 2020 March 31, 2020 May be used to offset deficit, distributed as cash or transferred to share capital (Note) Additional paid-in capital $ 309,017 $ 309,017 $ 309,017 Treasury share transactions 19,642 19,642 19,642 The difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition 12,872 12,872 30 341,531 341,531 328,689 May be used to offset deficit only Share of change in equities of associates or joint ventures 27,357 27,357 27,357 Others 58 58 - 27,415 27,415 27,357 $ 368,946 $ 368,946 $ 356,046

		$ 309,017 19,642 30 328,689 27,357 - 27,357 $ 356,046

30 -
Note: The capital surplus could be used to offset a deficit and distribute as cash dividends or transfer to capital when the Company has no deficit (limited to a certain percentage of the Company’s paid-in capital and once a year).
c. Retained earnings and dividend policy

The Company’s Articles stipulate that annual profit should be utilized in the following order:

1) Pay for income tax.
2) Offset deficit of previous years.
3) Appropriate as legal reserve 10% of the remaining profit, until the accumulated legal reserve equals the paid-in capital.
4) Appropriate as special reserve in accordance with the shareholders’ meeting or as requested by the authorities.
5) The remainder along with the unappropriated earnings are considered as distributable earnings. In accordance with dividend policy, the proposal of earnings appropriation is prepared by the board of directors and resolved in the shareholders’ meeting.

The legal reserve may be used to offset deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s fully paid share capital, the excess may be transferred to capital or distributed in cash.

The Company should appropriate to or reverse a special reserve. Special reserve of NT$426,930 thousand was appropriated because of the exemptions from IFRS 1 elected by the Company. There is not any reversal of special reserve as of March 31,2021 .

The appropriations of earnings for 2020 and 2019 had been proposed by the board of directors in March 2021 and approved in the shareholders’ meetings in June 2020, respectively. The appropriations and dividends per share were as follows:

Legal reserve Special reserve(reversed) Cash dividends	Appropriations of Earnings 2020 2019 $ 248,248 $ 246,031 ( 660,170 ) 931,797 1,860,419 1,736,391	Dividends Per Share (NT$)	Dividends Per Share (NT$)
	2020 $ 248,248 ( 660,170 ) 1,860,419	2020 $ 1.5	2019
			$ 1.4

The appropriations of earnings for 2020 will be resolved in the shareholders’ meeting to be held in June 2021.

d. Other equity items
1) Exchange differences on translation of the financial statements of foreign operations

Balance, beginning of the period Recognized for the period Exchange differences on translation of the financial statements of foreign operations	For the Three Months Ended March 31
	2021 2020 $ (1,320,826) $ (1,684,908) (353,650) (312,396)

31 -

Share of exchange differences of associates accounted for using the equity method (9,100) (10,344) Balance, end of the period $ (1,683,576) $ (2,007,648)

Exchange differences on translating foreign operations because the subsidiaries in mainland China were affected by the exchange rate fluctuations of the RMB to the NTD.

2) Unrealized gains and losses on financial assets at FVTOCI

Balance, beginning of the period Recognized for the period Unrealized gains and losses - equity instruments Balance, end of the period e. Non-controlling interests Balance, beginning of the period Share of net gain (loss) for the period Other comprehensive income or loss for the period Exchange differences on translation of the financial statements foreign operations Dividends distributed by subsidiaries Non-controlling interests arising from establishing a new subsidiary Non-controlling interest reduced from liquidation of subsidiaries Balance, end of the period 22. REVENUE Revenue from contracts with customers Revenue from the sale of goods Lease revenue		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 2020 $ 538,306 $ 242,219 148,666 94,308 $ 686,972 $ 336,527 For the Three Months Ended March 31
		2021 2020 $ 403,805 $ 504,398 3,527 (8,294) (10,332) (11,449) (18,523) - 2,089 - - (146) $ 380,566 $ 484,509 For the Three Months Ended March 31
		2021 $ 11,135,119 67,300 $ 11,202,419	2020 $ 7,580,679 48,836 $ 7,629,515

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Notes and accounts receivable Contract liabilities (recorded as other current liabilities - others) Sale of goods		March 31, 2021 $ 17,471,035 $ 122,960	December 31, 2021 $ 17,523,187 $ 131,902		March 31, 2020		January 1, 2020
					$ 13,522,294 $ 54,283		$ 15,361,112 $ 9,720

The changes in the balance of contract liabilities resulted primarily from the difference in timing between the satisfaction of performance obligations and customer payment.

Revenue of the reporting period recognized from the balance of contract liabilities at the beginning of the year is as follows:

From the balance of contract liabilities at the beginning of the period Sale of goods	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 118,026	2020 $ 8,016

23. PROFIT BEFORE INCOME TAX

a. Interest income

Interest on bank deposits Others b. Other gains and losses Loss on disposal of property, plant and equipment Gains on financial assets Financial assets designated as at FVTPL Impairment loss on Property, plant and equipment Impairment loss on Intangible assets Others	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2021 2020 $ 22,247 $ 24,738 5,389 3,386 $ 27,636 $ 28,124 For the Three Months Ended March 31
		2021 ($4,771) $ 523 - - (44,116) $ (48,364)	2020 ($1,439) $ 1,463 (25,717) (68) (24,819) $ (50,580)

33 -

c. Finance costs

Interest on loans Interest on lease liabilities Less: Amounts included in the cost of qualifying assets Information about capitalized interest was as follows: Capitalized interest amount Capitalization rates (%) d. Depreciation and amortization Property, plant and equipment Investment properties Right-of-use assets Intangible assets Other non-current assets - others Analysis of depreciation by function Operating costs Operating expenses Analysis of amortization by function Operating costs Operating expenses		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 2020 $ 72,057 $ 110,186 820 409 (1,413) (2,311) $ 71,464 $ 108,284 For the Three Months Ended March 31
		2021 2020 $ 1,413 $ 2,311 1.03-1.16 1.44-4.94 For the Three Months Ended March 31
		2021 $ 479,795 10,959 27,474 6,632 786 $ 525,646 $ 399,595 118,633 $ 518,228 $ 455 6,963 $ 7,418	2020 $ 458,315 6,546 21,246 14,828 515 $ 501,450 $ 382,877 103,230 $ 486,107 $ 454 14,889 $ 15,343

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e. Employee benefits

Short-term employee benefits Salaries Labor and health insurance Others Post-employment benefits Defined contribution plans Defined benefit plans (Note 20) Analysis by function Operating costs Operating expenses		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 919,117 87,383 77,620 1,084,120 54,388 8,714 63,102 $ 1,147,222 $ 483,518 663,704 $ 1,147,222	2020 $ 814,803 67,108 63,301 945,212 34,723 10,577 45,300 $ 990,512 $ 418,746 571,766 $ 990,512

g. Compensation of employees and remuneration of directors

The Company distributed Compensation of employees and remuneration of directors at rates of 4.5% (inclusive)-5.5% and no higher than 1%, respectively, of pre-tax profit prior to the deduction of Compensation of employees and remuneration of directors. The Compensation of employees and the remuneration of directors are as follows:

Compensation of employees Remuneration of directors	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 44,000 $ 4,050	2020 $ 12,000 $ 2,100

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate and will be adjusted in the next year.

35 -

The Compensation of employees and remuneration of directors and supervisors (all in cash) approved by the Company’s board of directors in March 2021 and 2020, and accrual amounts recognized in the consolidated financial statements, respectively, were as follows:

Amounts approved in the board of directors’ meeting Amounts recognized in the financial statements Difference	For the Year Ended December 31	For the Year Ended December 31
	2020 Compensation of employees Remuneration of Directors $ 123,628 $ 16,200 131,000 16,200 $ (7,372) $ -	2019
		Compensation of employees Remuneration of Directors $ 121,177 $ 15,325 122,000 15,325 $ (823) $ -

The differences were adjusted to profit and loss for the years ended December 31, 2021 and 2020.

Information on the Compensation of employees and remuneration of directors approved by the Company’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

24. INCOME TAX

a. Income tax expense (benefit) recognized in profit or loss

Current tax Deferred tax	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 204,499 25,766 $ 230,265	2020 $ 52,219 (5,276) $ 46,943

b. Income tax expense (benefit) recognized in other comprehensive income

Deferred tax Unrealized gains and losses on financial assets at fair value through other comprehensive income	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ (16,115)	2020 $ 33,508

c. Income tax assessment

The Company’s income tax returns as of 2019 have been assessed by the tax authorities.

36 -

25. EARNINGS PER SHARE

Unit: NT$ Per Share

Basic earnings per share Diluted earnings per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 0.66 $ 0.66	2020 $ 0.17 $ 0.17

The net profit and weighted average number of ordinary shares outstanding used in the computation of earnings per share were as follows:

Net profit for the period attributable to owners of the Company Number of ordinary shares		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 824,649	2020 $ 211,739

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share		Unit: Thousand Shares For the Three Months Ended March 31	Unit: Thousand Shares For the Three Months Ended March 31
		2021 1,240,280 4,494 1,244,774	2020 1,240,280 5,727 1,246,007

Since the Company is allowed to settle the compensation paid to employees by cash or shares, the Company assumed that the entire amount of the compensation will be settled in shares and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the shares have a dilutive effect. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

37 -

26. CASH FLOW INFORMATION

a. Information on investment activities

Acquisition of property, plant and equipment Decrease in payables for equipment Increase in other non-current liabilities Capitalized interest Cash paid		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 372,123 109,932 (91) 481,964 (1,413) $ 480,551	2020 $ 236,353 194,727 (39,086) 391,994 (2,311) $ 389,683

b. Changes in major liabilities arising from financing activities

For the three months ended March 31, 2021

January 1, 2021 Cash Flows Short-term borrowings $ 4,403,929 $ 1,161,925 Long-term borrowings 12,401,292 (515,468 ) Bonds payable 2,995,374 -	Non-cash Changes Exchange Rate Adjustment Issuance Cost March 31, 2021 $ (45,282) $ - $ 5,520,572 (10,691) - 11,875,133 - 292 2,995,666

For the three months ended March 31, 2020

January 1, 2020 Cash Flows Short-term borrowings $ 4,414,613 $ (42,056 ) Long-term borrowings 13,476,436 30,514 Bonds payable 2,994,192 -	Non-cash Changes Exchange Rate Adjustment Issuance Cost March 31, 2020 $ (48,826) $ - $ 4,323,731 (52,686) - 13,454,264 - 294 2,994,486

27. CAPITAL MANAGEMENT

The Company and its subsidiaries’ objectives in capital management are to safeguard the Company and its subsidiaries’ ability to continue as a going concern and to provide reasonable returns to shareholders, to maintain an optimal capital structure and to reduce the cost of capital.

The Company’s capital management policy is to maintain a strong capital base that maintains the confidence of investors, creditors and the market, as well as supports future operations. Capital includes the Company’s shares, capital surplus, and retained earnings.

28. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments that are not measured at fair value

Financial assets and liabilities that are not measured at fair value are of short-term duration and are usually repriced at the current market interest rate. Either their carrying amounts are close to their fair values, or their fair values could not be reliably measured.

38 -
b. Fair value of financial instruments that are measured at fair value on a recurring basis
1) Fair value hierarchy

March 31,2021 Financial instruments at FVTPL Structured Deposit Mutual funds Financial instruments at FVTOCI Equity instruments Domestic and foreign listed shares Domestic and foreign unlisted shares December31,2020 Financial instruments at FVTPL Mutual funds Financial instruments at FVTOCI Equity instruments Domestic and foreign listed shares Domestic and foreign unlisted shares March 31,2020 Financial instruments at FVTPL Mutual funds Financial instruments at FVTOCI Equity instruments Domestic and foreign listed shares Domestic and foreign unlisted shares	Level 1 $ - $ - $ 821,030 $ - $ - $ 642,849 $ - $ - $ 647,545 $ -	Level 2 $1,064,380 $ - $ - $ - $ - $ - $ - $ - $ - $ -	Level 3 $ - $ 13,196 $ 104,729 $ 223,327 $ 21,301 $ 185,302 $ 188,155 $ 12,585 $ - $ 224,599	Total $1,064,380
				$ 13,196
				$ 925,759
				$ 223,327
				$ 21,301
				$ 828,151
				$ 188,155
				$ 12,585
				$ 647,545
				$ 224,599

There was no transfer between Level 1 and Level 2 for the three months ended March 31, 2021 and 2020. Since TBG stocks in 2020 had no published price quotations as the fair value input for more than a certain period of time, it was transferred from Level 1 to Level 3.

39 -
2) Reconciliation of Level 3 fair value measurements of financial instruments

For the Three Months Ended March 31, 2021

Fund Financial Assets at FVTPL Financial assets Balance, beginning of the period $ 21,301 Recognized in profit or loss (recorded as other gains and losses) (3,945) Recognized in other comprehensive income - Disposal (4,156) Effects of foreign currency exchange differences (4) Balance, end of the period $ 13,196 Unrealized other gains and losses $ (3,768) For the Three Months Ended March 31, 2020 Fund Financial Assets at FVTPL Financial assets Balance , beginning of the period $ 12,483 Recognized in profit or loss (recorded as other gains and losses) 688 Recognized in other comprehensive income - Disposal (688) Effects of foreign currency exchange differences 102 Balance end of the period $ 12,585 Unrealized other gains and losses $ 688	Stocks Financial Assets at FVTOCI $ 373,457 - (45,629) - 228 $ 328,056 Stocks and Certificates of Interest Financial Assets at FVTOCI $ 225,563 - (1,983) - 1,019 $ 224,599	Total $ 394,758 (3,945) (45,629) (4,156) 224 $ 341,252 $ (3,768) Total $ 238,046 688 (1,983) (688) 1,121 $ 237,184 $ 688
Financial assets Balance , beginning of the period Recognized in profit or loss (recorded as other gains and losses) Recognized in other comprehensive income Disposal Effects of foreign currency exchange differences Balance end of the period Unrealized other gains and losses

3) Valuation techniques and inputs applied for Level 2 fair value measurement

The fair value of structured time deposit is measured by the future cash flows that are estimated and discounted by the expected yield based on the observable index at the end of period.

4) Valuation techniques and inputs applied for level 3 fair value measurement

The fair values of TBG stocks, domestic unlisted shares, foreign unlisted shares, certificates of interest and mutual funds were determined by the market approach and arrived at by reference to the type of industry, similar companies and the company’s operations.

40 -

c. Categories of financial instruments

Financial assets Fair value through profit or loss Mandatorily classified as at fair value through profit or loss Financial assets at amortized cost (Note 1) Financial assets at fair value through other comprehensive income - equity instruments Financial liabilities Financial liabilities at amortized cost (Note 2)	March 31, December 31, March 31, 2021 2020 2020
	$ 1,077,576 $ 21,301 $ 12,585 23,740,640 24,637,813 21,156,680 1,149,086 1,016,306 872,144 29,112,584 28,090,292 26,318,704

Note 1: The balances included financial assets at amortized cost, including cash and cash equivalents, notes and accounts receivable (including related parties), other financial assets - current and non-current (recorded as other non-current assets - others), other receivables, refundable deposits (recorded as other non-current assets - others), and long-term receivables (recorded as other non-current assets - others).
Note 2: The balances included financial liabilities at amortized cost, which comprise short-term borrowings, notes and accounts payable, other payables - others, long-term borrowings (including current portion), bonds payable, guarantee deposits received (recorded as other non-current liabilities), and long-term payables (recorded as other non-current liabilities).

d. Financial risk management objectives and policies

The financial risk management objectives of the Company and its subsidiaries are mainly to manage the market risk, credit risk and liquidity risk related to operating activities and to verify, measure and manage the financial risks according to the policies. The Company and its subsidiaries have set up policies, procedures and internal controls to manage the risks in their financial activities. The significant financial activities of the Company and its subsidiaries are in accordance with relevant regulations and internal controls approved by the board of directors. During the execution of financial management activities, the Company and its subsidiaries should be in compliance with the relevant rules of financial risk management.

1) Market risk

a) Foreign currency risk

The Company and its subsidiaries’ operating activities and net investments in foreign operations are denominated mainly in foreign currencies. Consequently, the Company and its subsidiaries are exposed to foreign currency risk. To protect against reductions in the value of foreign currency assets and against the volatility of future cash flows caused by changes in foreign exchange rates, the Company and its subsidiaries utilize derivative financial instruments, such as foreign exchange forward contracts, or maintain net foreign currency assets and liabilities. Foreign currency risk could be reduced but might not be fully eliminated by these methods.

For the carrying amounts of the Company and its subsidiaries’ significant non-functional currency denominated monetary assets and liabilities (including those eliminated on consolidation) at the balance sheet date, refer to Note 33.

41 -

Sensitivity analysis

The following table details the sensitivity to a 1% change in the functional currencies against the relevant foreign currencies.

ForeignCurrencies :FunctionalCurrencies Financial assets Monetary items USD:NTD USD:RMB USD:MYR RMB:NTD EUR:USD JPY:NTD THB:NTD Financial liabilities Monetary items USD:NTD USD:RMB USD:MYR EUR:USD JPY:NTD	Impact on Profit or Loss
	For the Three Months Ended March 31
	2021 2020 $ 23,654 $ 24,356 5,923 12,001 3,191 3,706 2,374 1,735 - 2,957 2,235 1,853 1,442 1,311 20,916 21,760 7,391 9,188 4,385 3,954 - 2,659 1,545 1,476

b) Interest rate risk

The borrowings of the Company and its subsidiaries with fixed interest rates were not exposed to cash flow risk. The borrowings with floating interest rates were exposed to cash flow risk as effective interest rates change.

The carrying amounts of the Company and its subsidiaries’ financial assets and financial liabilities with exposure to interest rate risks at the balance sheet dates were as follows:

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	March 31, December 31, March 31, 2021 2020 2020
	$ 2,602,313 $ 3,493,360 $ 2,940,558 8,002,949 8,039,274 9,794,486 3,699,559 2,741,246 3,588,304 12,695,705 12,105,221 10,977,996

If interest rates had been 1% higher and all other variables were held constant, the Company and its subsidiaries’ cash flow interest rate risk from financial liabilities would have increased cash outflows by NT$126,597 thousand and NT$109,780 thousand for the three months ended March 31, 2021 and 2020, respectively.

42 -

c) Other price risk

The Company and its subsidiaries were exposed to equity price risk through their investments in equity securities. If equity prices had been 1% higher/lower, other comprehensive income for the three months ended March 31, 2021 and 2020 would have increased/decreased by NT$8,210 thousand and NT$6,475 thousand, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk refer to the risk of financial loss to the Company and its subsidiaries arising from default by the clients or counterparties of financial instruments on the contract obligations. According to the Company and its subsidiaries’ policy, each local entity in the Company and its subsidiaries is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. The Company and its subsidiaries assess the credit quality of the customers by taking into account their financial position, past experience and other factors to conduct internal risk management and in order to enhance credit guarantee, holding some collaterals of accounts receivable from part of distributors. While the Company and its subsidiaries have procedures to monitor and limit exposure to credit risk on accounts receivable, there can be no assurance that such procedures will effectively limit credit risk and avoid losses. This risk is heightened during periods when economic conditions worsen.

3) Liquidity risk

The Company and its subsidiaries manage its liquidity risk by maintaining adequate cash and cash equivalents, bank borrowings, and so on. The table below summarizes the maturity profile of the Company and its subsidiaries’ financial liabilities based on contractual undiscounted payments, including principal and interest.

March 31, 2021

Non-derivative financial liabilities Short-term borrowings Notes payable Accounts payable Other payables Lease liabilities Long-term borrowings (including current portion) Bonds payable Long-term payable December 31, 2020 Non-derivative financial liabilities Short-term borrowings Notes payable Accounts payable Other payables Lease liabilities Long-term borrowings (including current portion) Bonds payable Long-term payable	Less Than 1 Year $ 5,548,079 833,076 5,845,875 1,925,690 84,082 4,034,280 24,600 8,298 $ 18,303,980 Less Than 1 Year $ 4,422,932 534,320 5,598,389 2,053,754 92,355 4,134,573 24,600 - $ 16,860,923	1-2 Years $ - - - - 73,951 4,025,081 24,600 14,775 $ 4,138,407 1-2 Years $ - - - - 78,924 4,321,629 24,600 10,031 $ 4,435,184	2-3 Years $ - - - - 57,361 2,881,445 24,600 - $ 2,963,406 2-3 Years $ - - - - 63,845 3,042,984 24,600 - $ 3,131,429	3-5 Years $ - - - - 75,649 1,178,828 3,014,693 - $ 4,269,170 3-5 Years $ - - - - 87,718 1,183,305 3,020,826 - $ 4,291,849	Over 5 Years $ - - - - 30,559 - - - $ 30,559 Over 5 Years $ - - - - 36,690 1,063 - - $ 37,753	Total $ 5,548,079 833,076 5,845,875 1,925,690 321,602 12,119,634 3,088,493 23,073 $ 29,705,522 Total $ 4,422,932 534,320 5,598,389 2,053,754 359,532 12,683,554 3,094,626 10,031
						$ 28,757,138

43 -

March 31, 2020

Non-derivative financial liabilities Short-term borrowings Notes payable Accounts payable Other payables Lease liabilities Long-term borrowings (including current portion) Bonds payable	Less Than 1 Year $ 4,346,555 123,336 3,856,970 1,475,975 48,453 6,770,353 24,600 $ 16,646,242	1-2 Years $ - - - - 35,155 2,390,384 24,600 $ 2,450,139	2-3 Years $ - - - - 21,133 3,078,449 24,600 $ 3,124,182	3-5 Years $ - - - - 33,043 1,523,554 3,039,427 $ 4,596,024	Over 5 Years $ - - - - 8,863 10,032 - $ 18,895	Total $ 4,346,555 123,336 3,856,970 1,475,975 146,647 13,772,772 3,113,227
						$ 26,835,482

e. Transfers of financial assets

Subsidiary factored accounts receivable, discounted notes and transferred most of the banker’s acceptance bills of receivables from China to vendors for repayment. According to the contract, if the accounts receivable are not paid at maturity, the bank has the right to request the subsidiary to pay the unsettled balance. If above financial assets are not paid at maturity, the bank and vendors have the right to request the subsidiary to pay the unsettled balance. As the subsidiary has not transferred the significant risks and rewards relating to these accounts receivable, it continues to recognize the full carrying amount of the financial assets and has recognized the cash received on the transfer as secured payables and borrowings.

As of March 31,2021,December 31, 2020 and March 31,2020, the carrying amount of the accounts receivable that have been transferred but have not been derecognized amounted to $2,626,744 thousand, $2,329,453 thousand and $1,595,048 thousand, respectively, and the carrying amount of the related borrowings and accounts payables were $2,624,113 thousand ,$2,328,143 thousand and $1,593,446 thousand, respectively.

29. TRANSACTIONS WITH RELATED PARTIES

Details of transactions between the Company and its subsidiaries and other related parties are disclosed below:

a. Related party names and relationships

Related Party Name
Allnex-Eternal Resins Corporation Limited
Allnex-Eternal Resins (Guangdong) Co., Ltd.
Eternal Electronic Materials (Kunshan) Co., Ltd.
Daxin Materials Corporation
Showa Denko New Material (Zhuhai) Co., Ltd.
ESCO Specialty Coatings (Shanghai) Co., Ltd.
DSM Resins (Far East) Ltd.
Hangzhou Yongxinyang Photoelectric Materials Co., Ltd.
Mitsubishi Polyester Film (Suzhou) Co., Ltd.

Relationship

Associate
Associate
Associate
Associate
Associate
Associate
Associate
Joint venture (removed from related
parties after October 2020)
Other related party

44 -

b. Operating revenue

Related Party Account Item Category Revenue from sales of goods Associates Joint ventures		For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 158,858 - $ 158,858	2020 $ 95,742 1,615 $ 97,357

Sales to related parties were made at prices similar to that of general transactions. The collection terms are 60-150 days from the end of the month.

c. Purchase of goods

Related Party Category Other related parties	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 1,928	2020 $ -

Purchases from related parties were made at prices similar to that of general transactions. The payment terms are 30-120 days from the date the goods are received.

d. Other income

Related Party Category/Name Associates Allnex-Eternal Resins (Guangdong) Co., Ltd. Others Inclusive of rental income, service fees and so on.	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 8,828 2,374 $ 11,202	2020 $ 6,738 2,082 $ 8,820

e. Receivables from related parties

Account Item Notes and accounts receivable	Related Party Category Associates Joint ventures		March 31, 2021 $ 261,707 - $ 261,707		December 31, 2020 $ 263,376 - $ 263,376		March 31, 2020
							$ 186,652 26,996 $ 213,648

The receivables arise mainly from sales transactions; the receivables were not guaranteed, pledged and are without interest. As of March 31, 2021, December 31, 2020 and March 31, 2020,, the balance of allowance for loss is NT$314 thousand, NT$1,037 thousand and NT$13,904 thousand, respectively.

f. Payable to related parties

Account Item Account payable	Related Party Category Associates Joint ventures		March 31, 2021 $ - 1,928		December 31, 2020 $ 1,958 -		March 31, 2020
							$ - -

45 -

$ 1,928 $ 1,958 $ -

The payables arise manly from purchase transactions; the payables were not pledged and are without interest.

g. Loans to related parties

Related Party Account Item Category/Name Other receivables Associates ESCO Specialty Coatings (Shanghai) Co., Ltd. Eternal Electronic Materials (Kunshan) Co., Ltd.		March 31, December 31, March 31, 2021 2020 2020	March 31, December 31, March 31, 2021 2020 2020	March 31, December 31, March 31, 2021 2020 2020
		$ 158,556 $ 104,256 $ 262,812	$ 159,761 $ 105,048 $ 264,809	$ 153,180 $ 102,120
				$ 255,300

The Company and its subsidiaries provided loans to related parties at rates comparable to market interest rates.

h. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ 32,127 120 $ 32,247	2020 $ 16,905 89 $ 16,994

30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The Company and its subsidiaries’ assets mortgaged or pledged as collateral for bank borrowings discounted notes loans, supplier payment,customs guarantee and performance guarantee were as follows:

Notes receivable Property, plant and equipment Other financial assets - time deposit certificates (recorded as other non-current assets - other)		March 31, December 31, 2021 2020	March 31, December 31, 2021 2020	March 31, 2020
		$ 2,626,744 280,521 18,109 $ 2,925,374	$ 2,329,453 295,789 15,000 $ 2,640,242	$ 1,595,048 287,261 19,601 $ 1,901,910

46 -

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

a. The Company and its subsidiaries have issued but unused letters of credit with an aggregate amount of NT$160,924 thousand as of March 31, 2021.
b. The Company and its subsidiaries have contracts that were not yet incurred to purchase property, plant and equipment and intangible assets of NT$360,028 thousand at March 31, 2021.

32. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

None.

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than functional currencies of the Company and its subsidiaries before elimination and the exchange rates between the foreign currencies and the respective functional currencies were disclosed. The significant assets and liabilities denominated in foreign currencies were as follows:

		Foreign
		Currency			Carrying
	(In Thousands)		Exchange Rate		Amount
March 31,2021
Financial assets
Monetary items
USD	$	82,895	28.5350 (USD:NTD)	$	2,365,409
USD		20,758	6.5688 (USD:RMB)		592,330
USD		11,183	4.3416 (USD:MYR)		319,107
RMB		54,640	4.3440 (RMB:NTD)		237,356
JPY		867,336	0.2577 (JPY:NTD)		223,512
THB		157,667	0.9149 (THB:NTD)		144,250
Non-monetary items
Financial assets at fair value
through other comprehensive
income
AUD		4,824	21.7100 (AUD:NTD)		104,729
Investments accounted for using
the equity method
USD		939,239	28.5350 (USD:NTD)		26,801,178
RMB		5,989,887	0.1522 (RMB:USD)		26,020,071
JPY		7,377,291	0.2577 (JPY:NTD)		1,901,128
MYR		241,951	0.2303 (MYR:USD)		1,590,224
THB		155,404	0.9149 (THB:NTD)		142,179
Financial liabilities
Monetary items
USD		73,301	28.5350 (USD:NTD)		2,091,644
USD		25,903	6.5688 (USD:RMB)		739,142
USD		15,368	4.3416 (USD:MYR)		438,526
JPY		599,420	0.2577 (JPY:NTD)		154,471

(Continued)

47 -

		Foreign
		Currency			Carrying
	(In Thousands)		Exchange Rate		Amount
December 31,2020
Financial assets
Monetary items
USD	$	80,407	28.4800 (USD:NTD)	$	2,289,991
USD		18,223	6.5067 (USD:RMB)		518,991
USD		12,252	4.1947 (USD:MYR)		348,937
RMB		95,030	4.3770 (RMB:NTD)		415,946
JPY		860,699	0.2763 (JPY:NTD)		237,811
THB		148,594	0.9556 (THB:NTD)		141,996
Non-monetary items
Financial assets at fair value through
other comprehensive income
AUD		8,442	21.9500 (AUD:NTD)		185,302
Investments accounted for using
the equity method
USD		931,351	28.4800 (USD:NTD)		26,524,885
RMB		5,883,766	0.1537 (RMB:USD)		25,753,246
JPY		6,626,721	0.2763 (JPY:NTD)		1,830,963
MYR		241,959	0.2384 (MYR:USD)		1,642,778
THB		147,262	0.9556 (THB:NTD)		140,723
Financial liabilities
Monetary items
USD		67,306	28.4800 (USD:NTD)		1,916,875
USD		30,755	6.5067 (USD:RMB)		875,902
USD		16,292	4.1947 (USD:MYR)		463,996
JPY		671,965	0.2763 (JPY:NTD)		185,664
		Foreign
		Currency			Carrying
	(In Thousands)		Exchange Rate		Amount
March 31,2020
Financial assets
Monetary items
USD	$	80,583	30.2250 (USD:NTD)	$	2,435,621
USD		39,704	7.1034 (USD:RMB)		1,200,053
USD		12,263	4.4994 (USD:MYR)		370,649
RMB		40,786	4.2550 (RMB:NTD)		173,544
JPY		664,547	0.2788 (JPY:NTD)		185,276
EUR		8,896	1.0998 (EUR:USD)		295,703
THB		141,408	0.9270 (THB:NTD)		131,085

(Continued)

48 -

		Foreign
		Currency	Exchange Rate		Carrying
	(In Thousands)				Amount
Financial assets at fair value
through other comprehensive
income
AUD	$	10,854	18.6350 (AUD:NTD)	$	202,264
Investments accounted for using
the equity method
USD		837,635	30.2250 (USD:NTD)		25,317,522
RMB		5,825,054	0.1408 (RMB:USD)		24,785,606
JPY		5,030,037	0.2788 (JPY:NTD)		1,402,374
MYR		89,186	6.7175 (MYR:NTD)		599,106
EUR		4,585	33.24 (EUR:NTD)		152,401
THB		142,528	0.9270 (THB:NTD)		132,124
Financial liabilities
Monetary items
USD		71,993	30.2250 (USD:NTD)		2,175,988
USD		30,400	7.1034 (USD:RMB)		918,840
EUR		8,000	1.0998 (EUR:USD)		265,920
USD		13,082	4.4994 (USD:MYR)		395,403
JPY		529,363	0.2788 (JPY:NTD)		147,586

(Concluded)

The total realized and unrealized foreign exchange gains and losses were a loss of NT$34,874 thousand and a loss of NT$10,060 thousand for the three months ended March 31, 2021 and 2020, respectively. It is impractical to disclose net foreign exchange gains and losses by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of each entity.

34. ADDITIONAL DISCLOSURES

a. Information about significant transactions and investees:
1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Marketable securities held (Table 3)
4) Marketable securities acquired or disposed at costs or prices at least NT$300 million or 20% of the paid-in capital: None
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)
9) Trading in derivative instruments: (Note 7)
49 -
10) Others: The business relationship between the parent company and the subsidiaries and between each subsidiary, and the circumstances and amounts of any significant transactions (Table 6)
11) Information on investees (Table 7)
b. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment gain or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 8)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses:
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period (Table 4)
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period (Table 4)
- c) The amount of property transactions and the amount of the resultant gains or losses: None
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes (Table 2)
- e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds (Table 1)
- f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services: None
c. Information of major shareholders : list of the shareholders with ownership of 5% or greater, showing the names, the number of shares and percentage of ownership held by each shareholder. (Table 9)

35. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance focuses on the types of industrial materials. Reported segments of the Company and its subsidiaries were as follows:

Resins Materials

Mainly operating variety of industrial resins materials.

Electronic Materials

Mainly operating electronic and optoelectronic industry raw material.

High Performance Materials

Mainly operating UV - light curing raw material.

50 -

� Others

The other operating segments which did not meet the quantitative threshold for separate reporting.

Segment revenues and operating results

The Company and its subsidiaries’ segment profit (loss) is used as the basis for assessing the performance of the operating segments. The following is an analysis of the Company and its subsidiaries’ revenues and results of operations by reportable segment.

For the three months ended March 31,2021 Revenue from the sale of goods Revenues from external customers Revenue from the rendering of service Inter-segment revenues Total revenue Segment operating profit (loss) For the three months ended March 31,2020 Revenue from the sale of goods Revenues from external customers Revenue from the rendering of service Inter-segment revenues Total revenue Segment operating profit (loss)	Resins Materials $ 5,455,545 - 643,789 $ 6,099,334 $ 234,773 $ 3,657,464 - 373,020 $ 4,030,484 $ 120,406	Electronic Materials $ 3,511,402 - 1,404,334 $ 4,915,736 $ 605,353 $ 2,480,002 - 942,343 $ 3,422,345 $ 172,749	High Performance Materials $ 2,159,294 - 388,777 $ 2,548,071 $ 289,416 $ 1,435,667 - 248,738 $ 1,684,405 $ 127,321	Others $ 8,878 67,300 923 $ 77,101 $ (104,507) $ 7,546 48,836 998 $ 57,380 $ (108,876)	Adjustment and Elimination $ - - (2,437,823) $ (2,437,823) $ - $ - - (1,565,099) $ (1,565,099) $ -	Total $ 11,135,119 67,300 -
						$ 11,202,419
						$ 1,025,035
						$ 7,580,679 48,836 -
						$ 7,629,515
						$ 311,600

51 -

TABLE 1

Eternal Materials Co., Ltd. and Subsidiaries

FINANCING PROVIDED TO OTHERS FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Party	Maximum Balance for the Period (Note 2)	Ending Balance (Note 3)	Actual Amount Drawn	Interest Rate (%)	Nature of Financing (Note 4)	Transaction Amount	Reason for Financing	Allowance for Bad Debt	Colla	teral	Financing Limits for Each Borrowing Company	Financing Company’s Total Financing Limit	Note
													Item	Value
1 1 2 2 2 2 2 2 2 2 3 3 3 3 3 4	Eternal Electronic Material (Guangzhou) Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal Materials (Guangdong) Co., Ltd. Eternal Materials (Guangdong) Co., Ltd. Eternal Materials (Guangdong) Co., Ltd. Eternal Materials (Guangdong) Co., Ltd. Eternal Materials (Guangdong) Co., Ltd. Eternal Holdings Inc.	Eternal Electronic (Suzhou) Co., Ltd. ESCO Specialty Coatings (Shanghai) Co., Ltd. Eternal Chemical (Tianjin) Co., Ltd. Eternal Synthetic Resins (Changshu) Co., Ltd. Eternal Materials (Guangdong) Co., Ltd. Eternal Specialty Materials (Suzhou) Co., Ltd. Eternal Chemical (Chengdu) Co., Ltd. Eternal Electronic Materials (Kunshan) Co., Ltd. Changhe International Trading (GZFTZ) Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal Electronic (Suzhou) Co., Ltd. Eternal Optical Material (Suzhou) Co., Ltd. Eternal Photoelectric Material Industry (Yingkou) Co., Ltd. Eternal Technology Corporation	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y	$ 438,400 160,016 1,052,160 1,096,000 131,520 438,400 1,490,560 208,512 175,360 438,400 131,520 1,578,240 175,360 876,800 306,880 340,680	$ 434,400 158,556 521,280 434,400 - 217,200 738,480 208,512 - 434,400 - 651,600 86,880 434,400 152,040 171,210	$ 434,400 158,556 285,722 333,010 - 65,325 669,200 104,256 - - - - 83,835 374,822 41,846 171,210	4.750 4.250 3.852 3.852 - 3.852 3.852 4.350 - - - - 3.850 3.850 3.850 1.800	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	$ - - - - - - - - - - - - - - - -	Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs	$ - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - -	$ 6,164,035 1,232,807 9,061,291 9,061,291 9,061,291 9,061,291 9,061,291 1,812,258 9,061,291 9,061,291 7,453,269 7,453,269 7,453,269 7,453,269 7,453,269 35,890,812	$ 6,164,035 1,232,807 9,061,291 9,061,291 9,061,291 9,061,291 9,061,291 1,812,258 9,061,291 9,061,291 7,453,269 7,453,269 7,453,269 7,453,269 7,453,269 35,890,812	Note 6 Note 8 Note 6 Note 6 Note 6 Note 6 Note 6 Note 8 Note 6 Note 6 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5

(Continued)

52 -

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Party	Maximum Balance for the Period (Note 2)	Ending Balance (Note 3)	Actual Amount Drawn	Interest Rate (%)	Nature of Financing (Note 4)	Transaction Amount	Reason for Financing	Allowance for Bad Debt	Colla	teral	Financing Limits for Each Borrowing Company	Financing Company’s Total Financing Limit	Note
													Item	Value
4 5 5 5 5 5 5 5 5	Eternal Holdings Inc. Eternal (China) Investment Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal (China) Investment Co.,Ltd.	Eternal Sun A. (Suzhou) Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal Optical Material (Suzhou) Co., Ltd. Eternal Photoelectric Material Industry (Yingkou) Co,. Ltd. Eternal Chemical (Chengdu) Co., Ltd. Eternal Chemical (Tianjin) Co., Ltd. Eternal Synthetic Resins (Changshu) Co., Ltd. Eternal Materials (Guangdong) Co., Ltd. Eternal Electronic (Suzhou)Co.,Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties Long-term receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from relatedparties	Y Y Y Y Y Y Y Y Y	$ 205,452 876,800 1,139,840 263,040 1,607,280 526,080 695,040 131,520 434,400	$ 205,452 434,400 912,240 260,640 1,607,280 521,280 695,040 130,320 434,400	$ 102,726 - 564,720 260,640 738,480 521,280 347,520 - -	1.787 - 3.850-4.050 4.250 3.850 3.850 3.850 - -	2 2 2 2 2 2 2 2 2	- - - - - - - - -	Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs Operating needs	- - - - - - - - -	- - - - - - - - -	- - - - - - - - -	$ 7,178,162 29,327,850 29,327,850 29,327,850 29,327,850 29,327,850 29,327,850 29,327,850 29,327,850	$ 7,178,162 29,327,850 29,327,850 29,327,850 29,327,850 29,327,850 29,327,850 29,327,850 29,327,850	Note 7 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5

(Concluded)

Note 1: The representation of the numbers are as follows:

No. 0 represents the issuer.
Investees are numbered in order from No. 1.

Note 2: The maximum balance for the period is approved by the board of directors, and translated into NTD using the exchange rate at the balance sheet date.

Note 3: The ending balance for the period is approved by the board of directors, and translated into NTD using the exchange rate at the balance sheet date.

Note 4: Nature of financing is as follows:

Business relationship.

2. Short-term financing

Note 5: According to the financing company’s Operation Procedures for Lending Funds to Others, either the financing limit for each borrowing company or financing company’s total financing limits shall not exceed 200% of the net worth of the company as of December 31, 2020, and it should be translated into NTD using the exchange rate at the balance sheet date.
Note 6: According to the financing company’s Operation Procedures for Lending Funds to Others, either the financing limit for each borrowing company or financing company’s total financing limits shall not exceed 200% of the net worth of the company’s latest financial statement, and it should be translated into NTD using the exchange rate at the balance sheet date.
Note 7: According to the financing company’s Operation Procedures for Lending Funds to Others, either the financing limit for each borrowing company or financing company’s total financing limits shall not exceed 40% of the net worth of the company as of December 31, 2020, and it should be translated into NTD using the exchange rate at the balance sheet date.
Note 8: According to the financing company’s Operation Procedures for Lending Funds to Others, either the financing limit for each borrowing company or financing company’s total financing limits shall not exceed 40% of the net worth of the company’s latest financial statement, and it should be translated into NTD using the exchange rate at the balance sheet date.
Note 9: Amount was eliminated from the consolidated financial statements, except for investments accounted for using the equity method.
53 -

TABLE 2

Eternal Materials Co., Ltd. and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limits on Endorsements /Guarantees Given on Behalf of Each Party	Maximum Amount Endorsements /Guarantees During the Period (Note 4)	Outstanding Endorsements /Guarantees the End of the Period (Note 5)	Actual Amount Drawn	Amount Endorsements /Guarantees by Collaterals	Ratio of Accumulated Endorsements /Guarantees to Net Equity per Latest Financial Statements (%)	Maximum Endorsements /Guarantees Amount Allowable	Endorsements /Guarantees Given by Parent on Behalf of Subsidiaries	Endorsements /Guarantees by Subsidiaries on Behalf of Parent	Endorsements /Guarantees Given on Behalf of Companies in Mainland China	Note
		Name	Relationship (Note 2)
0 0 0 0 0 0 0 1 1	Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal (China) InvestmentCo.,Ltd.	Eternal Holdings Inc. Eternal Technology Corporation Nikko-Materials Co., Ltd. Eternal Sun A. (Suzhou) Co., Ltd. Eternal Materials (Malaysia) Sdn. Bhd. Elga Europe S.r.l. Eternal Nanyang Investment Co., Ltd. Eternal Chemical (Tianjin) Co., Ltd. Eternal Synthetic Resins (Changshu) Co.,Ltd.	2 2 2 2 2 2 2 2 2	$ 23,445,062 23,445,062 23,445,062 23,445,062 23,445,062 23,445,062 23,445,062 14,663,925 14,663,925	$ 502,216 285,350 135,800 102,726 1,507,865 412,440 1,426,750 131,520 131,520	$ 502,216 285,350 135,800 102,726 1,507,865 412,440 1,419,500 131,520 131,520	$ 273,936 285,350 - 95,592 951,971 399,416 1,169,935 - -	- - - - - - - - -	2.14 1.22 0.38 0.44 6.43 1.71 6.09 - -	$ 23,445,062 23,445,062 23,445,062 23,445,062 23,445,062 23,445,062 23,445,062 14,663,925 14,663,925	Y Y Y Y Y Y Y N N	N N N N N N N N N	N N N Y N N N Y Y	Notes 3 and 6 Notes 3 and 6 Notes 3 and 6 Notes 3 and 6 Notes 3 and 6 Notes 3 and 6 Notes 3 and 6 Note 7 Note 7

(Continued)

54 -
Note 1: The representation of the numbers are as follows:
No. 0 represents the issuer.
Investees are numbered in order from No. 1.
Note 2: Relationships between the endorser/guarantor and the party being endorsed/guaranteed are as follows:
Have a business relationship.
The company owns directly or indirectly more than 50% of the voting shares of the company.
Total ownership of more than 50% of the investee, either directly by the Company and/or indirectly by the Company’s subsidiaries.
Subsidiaries in which the Company owns directly or indirectly more than 90% of the voting shares.
Companies where the Company is required to provide guarantees or endorsements for the construction project based on the construction contract.
Companies where the shareholders provide endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership due to a joint venture.
According to the Consumer Protection Act, companies that are required to provide guarantees and endorsements for joint and several liabilities if involved in the business of pre-sale of real estate.
Note 3: In accordance with the parent company’s “Procedures for Provision of Endorsements and Guarantees”, limit on endorsement/guarantee given on behalf of each party is 100% of the parent company’s net worth based on latest financial statements.
Note 4: Maximum amount endorsed/guaranteed during the period is approved by the board of directors, and translated into NTD using the exchange rate at the balance sheet date.
Note 5: Outstanding endorsements/guarantees at the end of the period are approved by the board of directors, and translated into NTD using the exchange rate at the balance sheet date.
Note 6: In accordance with the parent company’s “Procedures for Provision of Endorsements and Guarantees”, maximum endorsement/guarantee amount allowable is 100% of the parent company’s net worth based on latest financial statements.
Note 7: In accordance with the subsidiary’s “Procedures for Provision of Endorsements and Guarantees”, the limit on endorsement/guarantee given on behalf of each party and the maximum amount endorsed/guaranteed is based on its net worth in the financial statements for the year ended December 31, 2020.
55 -

TABLE 3

Eternal Materials Co., Ltd. and Subsidiaries

MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENT IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES) March 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		March	31, 2021		Note
				Shares/Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
Eternal Materials Co., Ltd. Mixville Holdings Inc.	President Securities Corp. (stock) TBG Diagnostics Limited (stock) Universal Venture Capital Investment Corp. (stock) Der Yang Biotechnology Venture Capital Co., Ltd. (stock) Hwa Nan Venture Capital Co., Ltd. (stock) Grace THW Holding Limited (stock) Pacven Walden Ventures V, L.P. (fund)	- - - - - - -	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - non-current	34,937,430 40,200,000 5,000,000 353,994 57,438 1,900,000 -	$ 821,030 104,729 37,836 3,739 - 181,752 13,196	2.50 18.48 4.15 11.11 10.60 Note Note	$ 821,030 104,729 37,836 3,739 - 181,752 13,196

Note : The percentage of ownership is less than 1%.

56 -

TABLE 4

Eternal Materials Co., Ltd. and Subsidiaries

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company name	Related Party	Relationship		Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchases/Sales (Note 2)	Amount	% to Total	Payment Terms	Unit Price	Payment Term	Ending Balance	% to Total
Eternal Materials Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Nikko Mechanics Co., Ltd.	Eternal Specialty Materials (Zhuhai) Co., Ltd. Eternal Electronic Material (Thailand) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Eternal Electronic (Suzhou) Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Nikko-Materials Co., Ltd.	Subsidiary Subsidiary Sister company Sister company Sister company Parent company	Sales Sales Sales Sales Sales Sales	$ 151,264 107,176 131,438 140,879 165,215 358,029	4 3 19 20 23 100	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	$ - - - - - -	- - - - - -	$ 117,353 133,998 283,585 322,016 312,443 309,286	3 4 17 17 16 100	Note 3 Note 3 Note 3 Note 3 Note 3 Note 3

Note 1: The terms are similar to that of non-related party transactions.

Note 2: For transactions between related parties, only one side of the transaction was disclosed.

Note 3: Amounts were eliminated from the consolidated financial statements.

57 -

TABLE 5

Eternal Materials Co., Ltd. and Subsidiaries

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL March 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Doubtful Accounts
					Amount	Actions Taken
Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Nikko Mechanics Co., Ltd.	CHOU-KOU Materials Co., Ltd. Eternal Specialty Materials (Zhuhai) Co., Ltd. Eternal Electronic Materials (Thailand) Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Eternal Electronic (Suzhou) Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Nikko-Materials Co., Ltd.	Subsidiary Subsidiary Subsidiary Subsidiary Sister company Sister company Sister company Parent company	$ 105,897 117,353 133,998 100,475 283,585 322,016 312,443 309,286	3.48 4.72 3.25 3.73 1.93 1.52 2.17 4.58	$ - - - - 62,305 56,476 58,392 -	- - - - Collected subsequently Collected subsequently Collected subsequently -	$ 39 32,191 - - 82,079 - 58,392 147,080	$ - - - - - - -

Note: Amount was eliminated from the consolidated financial statements.

58 -

TABLE 6

Eternal Materials Co., Ltd. and Subsidiaries

INTERCOMPANY BUSINESS RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE THREE MONTHS ENDED March 31, 2021 (In Thousands of New Taiwan Dollars)

No. (Note 1)	Company Name	Counterparty	Relationship (Note 2)		Transactions Details	Transactions Details
				Financial Statement Item (Note 6)	Amount	Terms	% to Total Revenues or Assets (Note 3)
0 0 0 0 0 0 1 1 2 2 2 2 2 3 3 3	Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Holdings Inc. Eternal Holdings Inc. Eternal (China) Investment Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal Chemical (China) Co., Ltd. Eternal Chemical (China) Co., Ltd.	Eternal Specialty Materials (Zhuhai) Co., Ltd. Eternal Specialty Materials (Zhuhai) Co., Ltd. Eternal Electronic Material (Thailand) Co., Ltd. Eternal Electronic Material (Thailand) Co., Ltd. CHOU-KOU Materials Co., Ltd. Eternal (China) Investment Co., Ltd. Eternal Technology Corporation Eternal Sun A. (Suzhou) Co., Ltd Eternal Optical Material (Suzhou) Co., Ltd. Eternal Photo electronic Material Industry (Yingkou) Co., Ltd. Eternal Chemical (Chengdu) Co., Ltd. Eternal Chemical (Tianjin) Co., Ltd. Eternal Synthetic Resins (Changshu) Co., Ltd. Eternal Chemical (Tianjin) Co., Ltd. Eternal Synthetic Resins (Changshu) Co., Ltd. Eternal Chemical (Chengdu) Co., Ltd.	1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3	Revenue from sales of goods Accounts receivable Revenue from sales of goods Accounts receivable Accounts receivable Accounts receivable Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	$ 151,264 117,353 107,176 133,998 105,897 100,475 171,210 102,726 564,720 260,640 738,480 521,280 347,520 285,722 333,010 669,200	Note3 Note3 Note3 Note3 Note3 Note3 Note4 Note4 Note4 Note4 Note4 Note4 Note4 Note4 Note4 Note4	1.35 0.20 0.96 0.23 0.18 0.17 0.30 0.18 0.98 0.45 1.28 0.91 0.60 0.50 0.58 1.16

(Continued)

59 -

No. (Note 1)	Company Name	Counterparty	Relationship (Note 2)		Transactions Details	Transactions Details
				Financial Statement Item (Note 6)	Amount	Terms	% to Total Revenues or Assets (Note 3)
4 4 4 5 5 5 5 6 7 7	Eternal Electronic Material (Guangzhou) Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Eternal Materials (Guangdong) Co., Ltd. Nikko Mechanics Co., Ltd Nikko Mechanics Co.,Ltd.	Eternal Electronic (Suzhou) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Eternal Electronic (Suzhou) Co., Ltd. Eternal Electronic (Suzhou) Co., Ltd. Eternal Optical Material (Suzhou) Co., Ltd. Nikko-Materials Co., Ltd Nikko-Materials Co.,Ltd.	3 3 3 3 3 3 3 3 2 2	Other receivables from related parties Revenue from sales of goods Accounts receivable Revenue from sales of goods Accounts receivable Revenue from sales of goods Accounts receivable Other receivables from related parties Revenue from sales of goods Accounts receivable	$ 434,400 131,438 283,585 165,215 312,443 140,879 322,016 374,822 358,029 309,286	Note4 Note3 Note3 Note3 Note3 Note3 Note3 Note4 Note3 Note3	0.75 1.17 0.49 1.47 0.54 1.26 0.56 0.65 3.20 0.54

(Concluded)

N ote 1: The transaction information of the Company and its subsidiaries is numbered in column “No.”. The representation of the numbers are as follows:

No. 0 represents the Company.
Subsidiaries are numbered in order from No. 1.

Note 2: The relationships among the transaction parties are as follows:

The parent company to subsidiary.
The subsidiary to the parent company.
The subsidiary to another subsidiary.

Note 3: The terms are similar to non-related party transactions.

Note 4: In accordance with the Operational Procedures for Lending Funds to Others.
Note 5: For transactions between related parties, only one side of the transaction was disclosed.
60 -

TABLE 7

Eternal Materials Co., Ltd. and Subsidiaries

INFORMATION ON INVESTEES (EXCLUDING INVESTMENT IN MAINLAND CHINA) FOR THE THREE MONTHS ENDED March 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as of March 31, 2021	Balance as of March 31, 2021	Balance as of March 31, 2021	Net Income (Loss) of the Investee	Investment Gain (Loss)	Note
				March 31, 2021	December 31, 2020	Number of Shares	Percentage of Ownership (%)	Carrying Amount
Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Materials Co., Ltd. Eternal Holdings Inc. Eternal Holdings Inc. Eternal Holdings Inc. Eternal Holdings Inc. Eternal Holdings Inc. Eternal Holdings Inc. Eternal International (BVI) Co., Ltd. Mixville Holdings Inc. Eternal (China) Investment Co., Ltd. Nikko-Materials Co., Ltd. Eternal Nanyang Investment Co., Ltd.	Eternal Holdings Inc. Eternal Global (BVI) Co., Ltd. Mixville Holdings Inc. Advanced PETFILM Investment Co., Ltd. Daxin Materials Corporation New E Materials Co., Ltd. DSM Resins (Far East) Co., Ltd. Eternal Electronic Material (Thailand) Co., Ltd. CHOU-KOU Materials Co., Ltd. Nikko-Materials Co., Ltd. Elga Europe S.r.l. Eternal International (BVI) Co., Ltd. E-Chem Corp. Eternal Nanyang Investment Co., Ltd. PT Eternal Materials Indonesia Allnex-Eternal Resins Corporation Limited Polymer Instrumentation and Consulting Services, Ltd. Eternal Technology Corporation High Expectation Limited Elga Europe S.r.l. Nikko Mechanics Co., Ltd. Eternal Materials (Malaysia) Sdn. Bhd.	Samoa British Virgin Islands British Virgin Islands Japan Taiwan Taiwan Taiwan Thailand Japan Japan Italy British Virgin Islands Samoa Samoa Indonesia Hong Kong United States United States Cayman Islands Italy Japan Malaysia	International investment International investment International investment International investment Manufacturing and selling of chemical, resins materials and electronic materials. Researching, developing, manufacturing and selling of photoelectric, semiconductor process related electronic chemical materials and equipment spare parts Manufacturing and selling of powder coating resin Trading services, cutting and selling of dry film photoresist Selling, trading and providing services of resins material, electronic material and other related products Manufacturing and selling of dry film photoresist and vacuum laminator Manufacturing, selling, agency and processing of electronic chemical products International investment International investment International investment Selling, trading of chemical Trading and international investment Plastic products manufacturing Manufacturing and selling of photoresist International investment Manufacturing, selling, agency and processing of electronic chemical products Designing, manufacturing, selling of industrial machinery and machine tool Manufacturing, selling, trading and providing services of resins material related products	$ 6,259,870 717,527 989,582 788,630 191,052 82,322 36,400 90,919 60,431 257,657 287,169 5,739,033 165,608 540,493 4,242 174,293 121,913 600,693 871,519 58,610 135,626 1,748,418	$ 6,259,870 717,527 989,582 788,630 191,052 82,322 36,400 90,919 60,431 257,657 287,169 5,739,033 165,608 540,493 - 174,293 121,913 600,693 871,519 58,610 135,626 1,748,418	204,273,859 16,821,024 29,530,000 270 23,423,812 6,907,585 3,660,000 937,500 4,000 11,520 - 183,793,592 4,990,000 18,450,000 207 5,341,000 4,694,296 2,333 26,005,000 - 6,560 347,324,000	100.00 100.00 100.00 20.00 22.80 62.80 40.00 75.00 100.00 100.00 72.68 100.00 100.00 90.00 67.00 49.00 30.00 100.00 100.00 22.32 100.00 100.00	$ 18,026,173 4,761,263 4,013,742 443,843 698,832 44,437 176,539 142,179 83,347 1,373,938 1,854 14,944,556 2,262,251 395,862 2,911 367,983 - (95,118 ) 3,803,043 920 343,213 1,590,224	$ 466,142 120,327 70,683 37,868 161,899 (3,544 ) 62,292 10,618 3,280 164,516 (16,113) 341,737 118,416 (5,390 ) (1,814) 24,037 - (8,462 ) 74,619 (16,113 ) 42,914 (268 )	$ 468,639 116,993 74,130 13,381 36,913 (2,225 ) 24,917 7,957 5,636 157,454 (11,711 ) - - - - - - - - - - -	Note Note Note Note Note Note Note Note Note Note Note

Note : It had been consolidated into the net income (loss) of investees recognized by the Company using the equity method, and also considered into the calculation of the Company’s investment income or loss.

61 -

TABLE 8

Eternal Materials Co., Ltd. and Subsidiaries

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE PERIOD ENDED March 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investments from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outward Remittance for Investments from Taiwan as of March 31, 2021	Net Income (Loss) of the Investee	% of Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of March 31, 2021	Accumulated Repatriation of Investment Income as of March 31, 2021	Note
					Outward	Inward
Eternal Chemical (China) Co., Ltd. DSM Eternal Resins (Kunshan) Co., Ltd. Changhe International Trading (GZFTZ) Co., Ltd. Eternal Electronic Material (Guangzhou) Co., Ltd. Eternal Optical Material (Suzhou) Co., Ltd. Eternal Photo Electronic Materials (Guangzhou) Co., Ltd. Eternal Photoelectric Material Industry (Yingkou) Co., Ltd. Eternal Electronic Materials (Kunshan) Co., Ltd. Eternal Synthetic Resins (Changshu) Co., Ltd. Eternal Chemical (Tianjin) Co., Ltd. Eternal Specialty Materials (Zhuhai) Co., Ltd. ESCO Specialty Coatings (Shanghai) Co., Ltd. Eternal Materials (Guangdong) Co., Ltd. Eternal (China) Investment Co., Ltd.	Manufacturing and selling of resins material and processing products Manufacturing and selling of powder coating resin International trading, commercial trading, entrepot trading, products displayed, bonded warehousing and business consulting services Coating, slitting, cutting, processing, and selling of photoresist Manufacturing and selling of optical film Researching, developing, manufacturing and selling of electronic high-tech chemical and related products Researching, developing and manufacturing of photoresist dry film, liquid photo imaginable solder masks and printed circuit board related materials Manufacturing and selling of epoxy molding compound which used in electronic parts and related products Manufacturing and selling of unsaturated polyester resin Manufacturing and selling of adhesives, resins material and processing products Manufacturing and selling of acrylic resin and methacrylic acid Researching, manufacturing and selling of processing electronic high-tech chemical, high performance coating, material and products Manufacturing and selling of adhesives, resins material and processing products Managing, investing consulting services, researching, leasing, manufacturing and selling of resins material and photoelectric chemicals materials	$ 755,651 183,470 13,661 1,259,046 614,887 997,694 124,282 524,337 726,426 1,008,004 611,011 403,180 1,297,259 7,557,603	2 2 2 2 2 2 2 2 2 2 2 2 2 2	$ 625,549 91,735 7,020 444,685 - - - 456,427 279,811 599,320 243,540 196,680 868,175 4,264,844	$ - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - -	$ 625,549 91,735 7,020 444,685 - - - 456,427 279,811 599,320 243,540 196,680 868,175 4,264,844	$ 109,330 22,197 (31) 90,325 (17,153) 141,019 2,333 16,934 (8,742) 22,102 131,568 (3,474) 74,648 350,181	100.00 50.00 100.00 100.00 100.00 100.00 100.00 40.00 100.00 100.00 90.00 40.00 100.00 100.00	$ 109,330 11,098 (31) 90,325 (17,153) 141,019 2,333 9,572 (8,742) 22,102 118,411 (2,482) 74,648 350,181	$ 4,530,646 407,825 19,384 3,082,018 (722,923) 2,833,513 (204,469) 224,380 200,752 866,888 2,249,659 (16,455) 3,800,891 15,011,666	$ 1,081,282 479,187 - 983,767 - - - - - - 788,866 - 1,371,700 -	Note 2 Note 3 Note 3 Note 2 Note 3 Note 2 Note 3 Note 3 Note 3 Note 3 Note 2 Note 3 Note 3 Notes 3 and 4

(Continued)

62 -

Investee Company	Main Businesses and Products	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investments from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Investment Flows	Accumulated Outward Remittance for Investments from Taiwan as of March 31, 2021	Net Income (Loss) of the Investee	% of Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of March 31, 2021	Accumulated Repatriation of Investment Income as of March 31, 2021	Note
						Outward		Inward
Eternal Chemical (Chengdu) Co., Ltd. Eternal Electronic (Suzhou) Co., Ltd. Eternal Sun A. (Suzhou) Co., Ltd. Eternal Specialty Materials (Suzhou) Co., Ltd. Showa Denko New Material (Zhuhai) Co., Ltd.	Researching and developing resins material and products Researching, developing, and manufacturing of dry film photoresist and dry film solder mask which used in electronic materials, researching resin materials and selling, providing after sales service of self-produced products Researching, developing, and manufacturing of optical protective film which used in display, and selling, providing after sales service of self-produced products Researching and developing chemical products, and selling, providing technical services of self-produced products Manufacturing and selling and manufacturing of functional resins, resins composite material and providing technical services		$ 450,351 1,381,040 751,443 1,199,225 366,881	2 2 2 2 2	$ - - - - -	$	- - - - -	$ - - - - -	$ - - - - -	$ (28,497) 52,077 (22,551) 67,544 1,153	100.00 100.00 60.00 100.00 30.00	$ (28,497) 52,077 (13,531) 67,544 673	$ (413,273) 1,508,118 80,403 1,391,690 88,137	$ - - - - -	Note 3 Note 2 Note 3 Note 3 Note 3
														(Concluded)
Investor Company		Accumulated Outward Remittance for Investments in Mainland China as of March 31, 2021 (Note 5)		Investment Amount Authorized the Investment Commission, MOEA (Note 5)		by	Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA (Note 6)
Eternal Materials Co., Ltd.		$ 8,083,938		$ 24,464,815			$ -

(Concluded)

Note 1: Investment methods are classified into the following three categories:

Direct investment in a company in mainland China.
Investing through companies in a third region (Eternal Holdings Inc., Eternal Global (BVI) Co., Ltd and Mixville Holdings Inc.).
Others.

Note 2: The investment gains and losses were recognized from the financial statements reviewed by the parent company’s CPA in the ROC.

Note 3: The investment gains and losses of the investee company were recognized from the financial statements which have not been reviewed by other CPAs.

Note 4: The investment gains and losses of Eternal (China) Investment Co., Ltd. included investment income (loss) recognized by the invested company.

Note 5: The amounts were translated into NTD using the current exchange rate.

Note 6: According to the “Regulation Governing the Approval of Investment or Technical Cooperation in Mainland China”, modified on August 29, 2008, the Company obtained the approval of the operational headquarters from the Industrial Development Bureau of Ministry of Economic Affairs. There is no ceiling for the investment amount.
63 -

TABLE 9

Eternal Materials Co., Ltd. and Subsidiaries

INFORMATION OF MAJOR SHAREHOLDERS March 31, 2021

Name of the Major Shareholder	Shares	Shares
	Number of Shares Owned	Percentage of Ownership
Kwang Yang Motor Co., Ltd. Kwang Hsing Industrial Co., Ltd. Kao, Ying-Shih	124,000,000 84,000,000 78,287,830	9.99 6.77 6.31

Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preference shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster 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.
64 -

AI assistant

ETERNAL — Interim / Quarterly Report 2021

51898_rns_2021-11-05_3de49a2c-c0f3-4a1d-8605-1d3151ef86f3.pdf

Eternal Materials Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2021 and 2020 and Independent Auditors’ Review Report

INDEPENDENT AUDITORS’ REVIEW REPORT

Opinion

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

Eternal Materials Co., Ltd. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

Eternal Materials Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

Eternal Materials Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars, Except Dividends Per Share) (Reviewed, Not Audited)

Eternal Materials Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

Eternal Materials Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

Eternal Materials Co., Ltd. and Subsidiaries

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

b. Basis of consolidation

1)Retirement Benefits.

2)Taxation

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. NOTES, ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

March 31, 2021

b. Other receivables

9. INVENTORIES

10. OTHER FINANCIAL ASSETS - CURRENT

11. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

12. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements were as follows:

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (INCLUDING CREDIT BALANCE)

14. PROPERTY, PLANT AND EQUIPMENT

15. LEASE ARRANGEMENTS

a. Right-of-use asset

b. Lease liabilities

d. Other lease information

16. INVESTMENT PROPERTIES

For the Three Months Ended March 31, 2020

Operating income and expenses directly related to investment properties

17. INTANGIBLE ASSETS

For the Three Months Ended March 31, 2020

18. FINANCE LEASE RECEIVABLES

19. BORROWINGS

a. Short-term borrowings

d. Bonds Payable

20. RETIREMENT BENEFIT PLANS

21. EQUITY

23. PROFIT BEFORE INCOME TAX

c. Finance costs

e. Employee benefits

g. Compensation of employees and remuneration of directors

24. INCOME TAX

25. EARNINGS PER SHARE

26. CASH FLOW INFORMATION

27. CAPITAL MANAGEMENT

28. FINANCIAL INSTRUMENTS

c. Categories of financial instruments

d. Financial risk management objectives and policies

1) Market risk

a) Foreign currency risk

Sensitivity analysis

c) Other price risk

2) Credit risk

3) Liquidity risk

March 31, 2020

e. Transfers of financial assets

29. TRANSACTIONS WITH RELATED PARTIES

b. Operating revenue

g. Loans to related parties

ETERNAL Interim / Quarterly Report 2021