FITH — Audit Report / Information 2020

Nov 13, 2020

FIT HOLDING CO., LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT

DECEMBER 31, 2020 AND 2019

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT

Opinion

We have audited the accompanying parent company only balance sheets of FIT Holding Co., Ltd. (the “Company”) as at December 31, 2020 and 2019, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as at December 31, 2020 and 2019, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audit of the parent company only financial statements as of and for the year ended December 31, 2020 in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China; and in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants, “Rule No. Financial-Supervisory-Securities-Auditing1090360805 issued by the Financial Supervisory Commission on February 25, 2020” and generally accepted auditing standards in the Republic of China for our audit of the parent company only financial statements as of and for the year ended December 31, 2019. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2020 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

The balance of investments accounted for under the equity method recognised from the Company’s subsidiaries, Glory Science Co., Ltd. (Glory Science), Power Quotient International Co., Ltd. (PQI), Foxlink Image Technology Co., Ltd. (Foxlink Image) and Shih Fong Power Co., Ltd. (Shih Fong) and investee accounted for using equity method, Foxwell Energy Co., Ltd. (Foxwell Energy), amounted to NT$7,876,626 thousand, constituting 96% of the Company’s total assets as at December 31, 2020, and the investment profit (shown as operating revenue) amounted to NT$102,367 thousand. Please refer to Note 4(7) for accounting policies on investments accounted for under the equity method and Note 6(1) for details of investments accounted for under the equity method. As the amounts are material to the parent company only financial statements of the Company, the investments accounted for under equity method - assessment of allowance for inventory valuation losses, investments accounted for under equity method - valuation of goodwill impairment and investments accounted for under equity method - valuation of property, plant and equipment impairment were identified as key audit matters.

Key audit matters for the Company’s 2020 parent company only financial statements are stated as follows:

Investments accounted for under equity method - Assessment of allowance for inventory valuation losses

Description

Please refer to Note 4(14) in the consolidated financial statements for accounting policies on inventories, Note 5(2) in the consolidated financial statements for the uncertainty of accounting estimates and assumptions applied to inventory valuation, and Note 6(6) in the consolidated financial statements for details of inventories.

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The Company’s subsidiaries are primarily engaged in the manufacturing and sale of optical instruments, peripheral equipment components, 3C products, image scanners and multifunction printers. As the electronic products’ life cycles are relatively short and the market is highly competitive, there is a higher risk of incurring inventory valuation losses or obsolescence due to en economic slowdown or an excess of supply over demand. Those subsidiaries’ inventories are measured at the lower of cost and net realisable value, and individually assessed for those inventories over a certain age in order to identify obsolete or slow-moving inventories.

Those subsidiaries’ amounts of inventory were material, and the net realisable value involves subjective judgement resulting in an uncertainty when assessing the obsolete or slow-moving inventories. The assessment of allowance for inventory valuation losses was identified as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Assessed the reasonableness of policies and procedures on allowance for inventory valuation losses.

2. Verified whether the systematic logic used in the inventory aging report is appropriate and in line with its policies.

3. Tested inventory valuation basis adequacy and recalculated the selected samples’ information in order to verify that the inventory was measured at the lower of cost and net realisable value.

Investments accounted for under equity method - Valuation of goodwill impairment

Description

Please refer to Note 4(20) in the consolidated financial statements for accounting policies on impairment loss on non-financial assets, Note 5(2) in the consolidated financial statements for the uncertainty of accounting estimates and assumptions applied to goodwill impairment valuation, and Note 6(12) in the consolidated financial statements for details of intangible assets.

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The amount of goodwill was generated from the acquisition of subsidiaries, Power Quotient International Co., Ltd. and Foxlink Image Technology Co., Ltd.. The Company valued the impairment of goodwill through the discounted cash flow method which measures the cash generating unit’s recoverable amount. As the assumptions of expected future cash flows involved subjective judgement and a high degree of uncertainty which would cause a material impact on the valuation result, the valuation of goodwill impairment was identified as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Obtained the external appraisal report on impairment valuation and examined the external appraiser’s qualification and assessed the independence, competence and objectiveness.

2. Assessed that the valuation model used in the appraisal report was widely used and appropriate.

3. Assessed the reasonableness of significant assumptions (including expected growth rate and discount rate) applied in the appraisal report.

Investments accounted for under equity method - Valuation of property, plant and equipment impairment

Description

Please refer to Note 4(20) in the consolidated financial statements for accounting policies on impairment loss on non-financial assets, Note 5(2) in the consolidated financial statements for the uncertainty of accounting estimates and assumptions applied to property, plant and equipment impairment valuation, and Note 6(8) in the consolidated financial statements for details of property, plant and equipment.

As the 3C components’ life cycles are relatively short and the market is highly competitive, there is a high risk of plant and equipment incurring an impairment loss. The Company’s subsidiaries valued the impairment of the cash generating unit’s property, plant and equipment which had an indication of impairment. We mainly relied on the external appraisal report. As the external appraisal report on impairment valuation involved subjective judgement, various assumptions and a high degree of uncertainty which would cause a material impact on the valuation result, the valuation of property, plant and equipment impairment was identified as a key audit matter.

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How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Examined the external appraiser’s qualification and assessed the independence, competence and objectiveness.

2. Verified whether the list of properties for the external appraiser is correct.

3. Assessed that the valuation method used in the appraisal report was appropriate.

4. Tested the external appraisal report’s valuation basis adequacy.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Company’s financial reporting process.

Auditors’ responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the generally accepted auditing standards in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably

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be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with the generally accepted auditing standards in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5.

• Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope

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and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Liang Yi Chang[Lin, Se-Kai] For and on behalf of PricewaterhouseCoopers, Taiwan March 26, 2021

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

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FIT HOLDING CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 7 6(1)	December31,2020 AMOUNT % $ 2,150 - 350,364 4 89 - 352,603 4 7,876,626 96 7,876,626 96 $ 8,229,229 100	December31,2019	December31,2019
		AMOUNT $ 2,150 350,364 89 352,603 7,876,626 7,876,626 $ 8,229,229	AMOUNT $ 665 - - 665 7,623,551 7,623,551 $ 7,624,216	%
Current assets 1100 Cash and cash equivalents 1210 Other receivables - related parties 1410 Prepayments 11XX Current Assets Non-current assets 1550 Investments accounted for under equity method 15XX Non-current assets 1XXX Total assets				- - -
				-
				100
				100
				100

(Continued)

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FIT HOLDING CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes 6(3) 6(4) 6(5) 6(6) 6(7) 9 11	December31,2020 December31,2019 AMOUNT % AMOUNT % $ 757,800 9 $ 615,000 8 12,800 - 4,893 - 30 - 18 - 770,630 9 619,911 8 400,000 5 300,000 4 400,000 5 300,000 4 1,170,630 14 919,911 12 2,462,421 30 2,462,421 32 4,198,013 51 4,237,390 56 8,361 - 8,361 - 89,848 1 ( 281,965) ( 4 ) 299,956 4 278,098 4 7,058,599 86 6,704,305 88 $ 8,229,229 100 $ 7,624,216 100
		AMOUNT $ 757,800 12,800 30 770,630 400,000 400,000 1,170,630 2,462,421 4,198,013 8,361 89,848 299,956 7,058,599 $ 8,229,229
Current liabilities 2100 Short-term borrowings 2200 Other payables 2300 Other current liabilities 21XX Current Liabilities Non-current liabilities 2540 Long-term borrowings 25XX Non-current liabilities 2XXX Total Liabilities Equity Share capital 3110 Share capital - common stock Capital surplus 3200 Capital surplus Retained earnings 3320 Special reserve 3350 Unappropriated retained earnings (accumulated deficit) Other equity interest 3400 Other equity interest 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity

The accompanying notes are an integral part of these parent company only financial statements.

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FIT HOLDING CO., LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars, except earnings (loss) per share)

Items	Year ended December 31 2020 2019 Notes AMOUNT % AMOUNT 6(1) $ 102,367 100 $ - 6(1) - - ( 281,228 ) 102,367 100 ( 281,228 ) 6(9) ( 24,917 ) ( 24) ( 13,130 ) ( 24,917 ) ( 24) ( 13,130 ) 77,450 76 ( 294,358 ) 7 1,536 1 1 6(8) 2,015 2 92,458 12,054 12 ( 14 ) ( 9,456 ) ( 9) ( 5,099 ) 83,599 82 ( 207,012 ) 6(10) - - - $ 83,599 82 ( $ 207,012 )	Year ended December 31	Year ended December 31	% - - - - - - - - - - - - -
		2020	2019
4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6200 General and administrative expenses 6000 Total operating expenses 6900 Operating profit (loss) Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7900 Profit (loss) before income tax 7950 Income tax expense 8200 Profit (loss) for the year

(Continued)

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FIT HOLDING CO., LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars, except earnings (loss) per share)

Items	Notes	YearendedDecember31	YearendedDecember31	YearendedDecember31	% - - - - - - - - - - - - 0.77) 0.07) 0.84) 0.77) 0.07) 0.84)
		2020	2019 % AMOUNT 47 $ 561,756 47 561,756 20) ( 138,242) 20) ( 138,242) 27 $ 423,514 109 $ 216,502 - ($ 189,059) - ( 17,953) - ($ 207,012) $ 234,752 - ( 18,250) - $ 216,502 0.34 ( $ - ( 0.34( $ 0.34 ( $ - ( 0.34 ( $	2019
		AMOUNT $ 48,003 48,003 19,896) ( 19,896) ( $ 28,107 $ 111,706 $ 83,599 - $ 83,599 $ 111,706 - $ 111,706 $
Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8330 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8380 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8360 Components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive income for the year 8500 Total comprehensive income for the year Profit (loss), attributable to: Owners of the parent Former owner of business combination under common control Total Comprehensive income (loss), attributable to: Owners of the parent Former owner of business combination under common control Total Earnings (loss) per share 9710 Basic earnings (loss) per share from continuing operations 9720 Basic earnings (loss) per share from equity attributable to former owner of business combination under common control 9750 Basic earnings (loss) per share 9810 Diluted earnings (loss) per share from continuing operations 9820 Diluted earnings (loss) per share from equity attributable to former owner of business combination under common control 9850 Diluted earnings (loss) per share	( (
		$
		$
		$

The accompanying notes are an integral part of these parent company only financial statements.

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FIT HOLDING CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Year 2019 Balance at January 1, 2019 Loss Other comprehensive income (loss) Total comprehensive income Capital surplus used to cover accumulated deficits Cash dividends paid from additional paid-in capital Adjustments to share of changes in equity of associates and joint ventures accounted for using the equity method Changes in ownership interests in subsidiaries Adjustments to reorganisation Balance at December 31, 2019 Year 2020 Balance at January 1, 2020 Profit Other comprehensive income (loss) Total comprehensive income Capital surplus used to cover accumulated deficits Adjustments to share of changes in equity of associates and joint ventures accounted for using the equity method Changes in investees' capital increase not recognized by shareholding percentage Capital surplus, difference between consideration and carrying amount of subsidiaries acquired or disposed Balance at December 31, 2020	Notes		Share capital - commonstock	Capital surplus, additional paid- incapital			Retained earnings	Retained earnings	Retained earnings	Otherequityinterest	Otherequityinterest	Equity attributable to former owner of business combination under common control		Totalequity
						Legal reserve	Special reserve		Unappropriated retained earnings (accumulated deficit)	Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(7) 6(6) 6(7)		$ 2,462,421 - - - - - - - - $ 2,462,421 $ 2,462,421 - - - - - - - $ 2,462,421	$ 5,019,688 - - - ( 166,692 ) ( 615,606 ) - - - $ 4,237,390 $ 4,237,390 - - - ( 281,965 ) 59,741 125,447 57,400 $ 4,198,013		$ - - - - - - - - - $ - $ - - - - - - - - $ -		$ 8,361 - - - - - - - - $ 8,361 $ 8,361 - - - - - - - $ 8,361	( $ 173,844 ) ( 189,059 ) 940 ( 188,119 ) 166,692 - ( 129 ) - ( 86,565 ) ( $ 281,965 ) ( $ 281,965 ) 83,599 6,249 89,848 281,965 - - - $ 89,848	($ 81,588 ) - ( 137,945 ) ( 137,945 ) - - - - - ($ 219,533 ) ($ 219,533 ) - ( 19,896 ) ( 19,896 ) - - - - ($ 239,429 )	($ 63,185 ) - 560,816 560,816 - - - - - $ 497,631 $ 497,631 - 41,754 41,754 - - - - $ 539,385	($ 77,196 ) ( 17,953 ) ( 297 ) ( 18,250 ) - - - 8,881 86,565 $ - $ - - - - - - - - $ -	$ 7,094,657 ( 207,012 ) 423,514 216,502 - ( 615,606 ) ( 129 ) 8,881 - $ 6,704,305 $ 6,704,305 83,599 28,107 111,706 - 59,741 125,447 57,400 $ 7,058,599

The accompanying notes are an integral part of these parent company only financial statements.

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FIT HOLDING CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit (loss) before tax Adjustments Adjustments to reconcile profit (loss) Share of profit (loss) of associates accounted for using the equity method Interest expense Interest income Gain on disposal of investments Changes in operating assets and liabilities Changes in operating liabilities Other payables Prepayments Other current liabilities Cash outflow generated from operations Dividend received Interest paid Interest received Net cash flows from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Increase in other receivables from related parties Acquisition of investments accounted for under the equity method Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Increase in long-term borrowings Decrease in long-term borrowings Cash dividends paid Net cash flows from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2020 2019 $ 83,599($ 207,012 ) 6(1) ( 102,367 ) 281,228 9,456 - ( 1,536 ) ( 1 ) 6(10) -( 92,235 ) 8,281 786 ( 89 ) - 11 17 ( 2,645 ) ( 17,217 ) 329,988 478,483 ( 9,830 ) - 1,536 1 319,049 461,267 ( 350,364 ) - ( 210,000 ) ( 760,000 ) ( 560,364 ) ( 760,000 ) 142,800 615,000 1,300,000 1,066,000 ( 1,200,000 ) ( 766,000 ) -( 615,606 ) 242,800 299,394 1,485 661 665 4 $ 2,150$ 665

The accompanying notes are an integral part of these parent company only financial statements.

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FIT HOLDING CO., LTD.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. History and Organisation

FIT Holding Co., Ltd. (the “Company”) is a holding company established by Glory Science Co., Ltd. (Glory Science), Power Quotient International Co., Ltd. (PQI) and Foxlink Image Technology Co., Ltd. (Foxlink Image) through a share swap in accordance with the regulations on October 1, 2018. The Company’s shares were listed on the Taiwan Stock Exchange (TSE) and approved by the regulatory authority on the same date. The Company acquired 100% shares of Glory Science, PQI and Foxlink Image through share swap by exchanging 1 common share of PQI with 0.194 common share of the Company, 1 common share of Foxlink Image with 0.529 common share of the Company and 1 common share of Glory Science with 1 common share of the Company. The Company is primarily engaged in establishing the management mechanism for the Group, supervising the subsidiaries’ operation, and integrating the resources and platforms to improve the Group’s overall operational efficiency. Cheng Uei Precision Industry Co., Ltd. became the ultimate parent company of the Company after acquiring over half of the seats in the Company’s Board of Directors due to the abovementioned share swaps.

1. The Date of Authorisation for Issuance of the Financial Statements and Procedures for

2. Authorisation

These parent company only financial statements were authorised for issuance by the Board of Directors on March 26, 2021.

1. Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC effective from 2020 are as follows:

2020 are as follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 1 and IAS 8,‘Disclosure initiative-definition of material’ Amendments to IFRS 3,‘Definition of a business’ Amendments to IFRS 9, IAS 39 and IFRS7 ,‘Interest rate benchmark reform’ Amendment to IFRS 16,‘Covid-19-related rent concessions’ Note：Earlier application from January 1, 2020 is allowed by FSC.	January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2020 (Note)

The above standards and interpretations have no significant impact to the Company’s

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financial condition and financial performance based on the Compnay’s assessment.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

2021 are as follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 4,‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16,‘Interest Rate Benchmark Reform—Phase 2’	January 1, 2021 January 1, 2021

The above standards and interpretations have no significant impact to the Compnay’s financial condition and financial performance based on the Company’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included

in the IFRSs as endorsed by the FSC are as follows:

in the IFRSs as endorsed by the FSC are as follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
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’ IFRS 17,‘Insurance contracts’ Amendments to IFRS 17, 'Insurance contracts' Amendments to IAS 1,‘Classification of liabilities as current or non- current’ Amendments to IAS 1,‘Disclosure of accounting policies’ Amendments to IAS 8,‘Definition of accounting estimates’ Amendments to IAS 16,‘Property, plant and equipment:proceeds before intended use’ Amendments to IAS 37,‘Onerous contracts—cost of fulfilling a contract Annual improvements to IFRS Standards 2018–2020	January 1, 2022 To be determined by International Accounting Standards Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2022 January 1, 2022 January 1, 2022

The above standards and interpretations have no significant impact to the Company’s

financial condition and financial performance based on the Company’s assessment.

4. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The parent company only financial statements of the Company have been prepared in

accordance with the Regulations Governing the Preparation of Financial Reports by

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Securities Issuers,

• (2) Basis of preparation

• A. The parent company only financial statements have been prepared under the historical cost convention

• B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

• (3) Foreign currency translation

• Items included in the financial statements of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in NTD, which is the Company’s functional and presentation currency.

• A. Foreign currency transactions and balances

  • (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

  • (b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

  • (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

  • (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

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• B. Translation of foreign operations

The operating results and financial position of all the company entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• (a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

• (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

• (c) All resulting exchange differences are recognised in other comprehensive income.

(4) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

• (b) Assets held mainly for trading purposes;

• (c) Assets that are expected to be realised within twelve months from the balance sheet date;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within twelve months from the balance sheet date;

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(5) Cash equivalents

• Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(6) Impairment of financial assets

For debt instruments measured at financial assets at amortised cost, at each reporting

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date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Company recognises the impairment provision for lifetime ECLs.

(7) Investments accounted for using equity method / subsidiaries and associates

• A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

• B. Unrealised profit (loss) from the transactions between the Company and subsidiaries have been offset. The accounting policies of the subsidiaries have been adjusted to be consistent with the Company’s accounting policies.

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

• D. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

• E. The Company’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• F. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognises the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

• G. Unrealised gains on transactions between the Company and its associates are

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eliminated to the extent of the Company’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• H. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• I. Upon loss of significant influence over an associate, the Company remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.

• J. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• K. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

• L. Pursuant to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall be equal to the amount attributable to owners of the parent in the parent company only financial statements. Owners’ equity in the parent company only financial statements shall be equal to equity attributable to owners of the parent in the parent company only financial statements.

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(8) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

• (9) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

(10) Employee benefits

• A. Short-term employee benefits

• Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

• B. Pensions

Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

• C. Employees’ compensation and directors’ remuneration

  • Employees’ compensation and directors’ and supervisors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

• (11) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised

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in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

(12) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved at the meeting of Board of Directors. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and

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are reclassified to ordinary shares on the effective date of new shares issuance.

• (13) Reorganisation under common control

  • A, The Group applies the related interpretations issued in R.O.C. for the intra-group reorganisation since there are no definite rules for business combinations of entities under common control in IFRS 3, ‘Business combinations’ as explained in the IFRS Q&A ‘explanations to IFRS 3 Business Combinations under Common Control’ issued by Accounting Research and Development Foundation on October 26, 2018. The aforementioned transaction is stated at book value method and the comparative financial statements of prior years were restated based on the assumption that the business combination occurred at the beginning of the year.

  • B. As described in Note 1, the share swap transactions between the Company and Glory Science were considered as reorganisation under common control and the Company is substantially a continuation of Glory Science. The Company recognised the associated assets and liabilities for its parent company only financial statements before the incorporation date based on the carrying amount of the parent company only financial statements of Glory Science. The comparative financial statements were restated based on the assumption that Glory Science was considered as consolidated subsidiary accounted for using equity method at the beginning.

  • C. The Company acquired share interest of Shinfox Energy Co., Ltd., a subsidiary of the ultimate parent company through share swap for the year ended December 31, 2019. As the acquisition was a Group internal reorganisation, in accordance with Accounting Research and Development Foundation Interpretation 101-301, it was deemed that the Company invested in Shinfox at the beginning. When restating the consolidated financial statements of prior years, Shinfox’s equity owned by the Company, are classified as “Equity attributable to former owner of business combination under common control” and profit or loss recognised by the Company are classified as “Net profit (loss) of equity attributable to former owner of business combination under common control”.

• Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

• (1) Critical judgements in applying the Company’s accounting policies

  • None.

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(2) Critical accounting estimates and assumptions

Impairment assessment of investments accounted for using equity method

The Company assesses the impairment of an investment accounted for using equity method as soon as there is any indication that it might have been impaired and its carrying amount cannot be recovered. The Company assesses the recoverable amounts of an investment accounted for under the equity method based on the present value of the Company’s share of expected future cash flows of the investee, and analyses the reasonableness of related assumptions.

6. Details of Significant Accounts

(1) Investments accounted for using the equity method

Foxlink Image Technology Co., Ltd. Power Quotient International Co., Ltd. Shih Fong Power Co., Ltd. Glory Science Co., Ltd. Foxwell Energy Co., Ltd.	December31,2020 December 31, 2019 3,682,263 $ 3,608,129 $ 2,211,702 1,938,232 1,000,903 822,469 772,681 1,254,721 209,077 - 7,876,626 $ 7,623,551 $

• A. On June 14, 2019, the Company acquired 100% of the share capital of Shih Fong Power Co., Ltd. (Shih Fong) for $280,000 and obtained the control over Shih Fong.

• B. The investment profit (loss) of $102,367 and ($281,228) recognised for the investments accounted for using equity method for the years ended December 31, 2020 and 2019, respectively, was based on each investee’s audited financial statements for the corresponding period.

• C. To integrate Group resources and enhance the efficiency of entities division of labour, Foxwell Energy Corporation Ltd. (Foxwell Energy), an 89.29% owned subsidiary of the Company’s subsidiary, PQI, became one of the wholly owned subsidiaries of Shinfox Energy (formerly named Shinfox Co., Ltd.) by converting stocks into shares as approved by the shareholders on November 25, 2019. The effective date for this conversion was set on December 27, 2019. The conversion ratio is 1 share of Foxwell Energy’s common stock converted to 1 share of Shinfox Energy. Shinfox Energy increase its capital by issuing new shares in the amount of 60,000,000 shares which would be granted to PQI. PQI held a 76.56% equity interest in Shinfox Energy after conversion. This conversion was deemed a group restructuring since the ultimate parent company of PQI is the same with Shinfox Energy, and thus the subsidiary is considered as consolidated at the beginning of merger. The difference between the acquisition cost and net equity would be adjusted in retained earnings for the year ended December 31, 2019 in the amount of $86,565.

• D. Details of the Company’s subsidiaries are provided in Note 4(3) of the Company’s

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2020 consolidated financial statements.

(2) Pensions

The Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under defined contribution pension plans of the Company for the years ended December 31, 2020 and 2019, were $181 and $144, respectively.

(3) Short-term borrowings

Type of borrowings December 31, 2020 Interest rate range Collateral Bank borrowings Unsecured borrowings $ 757,800 1.05% None Type of borrowings December 31, 2019 Interest rate range Collateral Bank borrowings Unsecured borrowings $ 615,000 0.81%~0.91% None

- (4) Long term borrowings

Long-term borrowings Unsecured borrowings	615,000 $ 0.81%~0.91% None
Type of borrowings	Undrawn Borrowing period Interest Borrowing and repayment term rate range facilities December 31,2020 Borrowing period is from October 2020 to August 2022; principal is repayable in full amount at the maturity date; interest is repayable monthly. 1.10% - 300,000 $ Borrowing period is from October 2020 to July 2022; principal is repayable in full amount at the maturity date; interest is repayable monthly. 1.22% - 100,000
Long-term bank borrowings Unsecured borrowings Unsecured borrowings

$ 400,000

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Type of borrowings	Undrawn Borrowing period Interest Borrowing and repayment term rate range facilities December 31,2019 Borrowing period is from October 2019 to April 2021; principal is repayable in full amount at the maturity date; interest is repayable monthly. 1.12% - 300,000 $
Long-term bank borrowings Unsecured borrowings

(5) Share capital

As described in Note 1, the Company acquired 100% of the shares of Glory Science, PQI and Foxlink Image through share swap by exchanging 1 common share of Glory Science into 1 common share of the Company, 1 common share of PQI converted to 0.194 common share of the Company and 1 common share of Foxlink Image converted to 0.529 common share of the Company. As of December 31, 2020, the Company’s authorised capital was $3,000,000, consisting of 300,000 thousand shares of ordinary stock (including 30,000 thousand shares reserved for employee stock options), and the paid-in capital was $2,462,421 with a par value of $10 (in dollars) per share. Ordinary shares outstanding at December 31,2020 amounted to 246,242 thousand shares.

(6) Capital surplus

• A. In accordance with IFRS Q&A issued by the Accounting Research and Development Foundation (ARDF) on October 26, 2018 and ARDF Interpretation 100-390, as described in Note 4, the share swap transactions between the Company and Glory Science were considered as a reorganisation under common control on October 1, 2018.

• B. Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

• C. The shareholders resolved that the Company distribute cash by using capital surplus of $615,606 (NT$2.5 (in dollars) per share) on June 21, 2019.

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• (7) Retained earnings (accumulated deficits to be covered)

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. The remaining earnings shall be proposed by the Board of Directors and resolved by the shareholders as dividends to shareholders. According to the Company’s dividend policy, no more than 90% of the distributable retained earnings shall be distributed as shareholders’ bonus and cash dividend distributed in any calendar year shall be at least 20% of the total distributable earnings in that year based on future capital expenditures budget and capital requirements.

• B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• C. Special reserve

• (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• (b) As described in Note 4(2), the Company is substantially a continuation of Glory Science. Therefore, the amount previously set aside by the Company as special reserve in accordance with Order No. Financial-Supervisory-SecuritiesCorporate-1010012865, dated April 6, 2012, shall be the same as the amount reclassified from accumulated translation adjustment under shareholders’ equity to retained earnings for the exemptions elected by the Group. The increase in special reserve as a result of retained earnings arising from the adoption of IFRS amounted to $8,361 thousand.

• D. The shareholders resolved that the Company cover accumulated deficits by using capital surplus of $281,965 on June 24, 2020 and $166,692 on June 21, 2019.

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(8) Other income

ther income
Revenue from directors’and supervisors’ remuneration of the subsidiaries Gain recognised in bargain purchase transaction Others	Year ended December 31
	2020 2,015 $ - - 2,015 $	2019
		- $ 92,235 223
		92,458 $

(9) Expenses by nature

xpenses by nature
Employee benefit expense Wages and salaries Directors’remuneration Labour and health insurance fees Pension costs Other personnel expenses	Year ended December 31
	2020 16,723 $ 2,870 382 181 222 20,378 $	2019
		6,285 $ - 333 144 198
		6,960 $

• A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 6% for employees’ compensation and shall not be higher than 3% for directors’ and supervisors’ remuneration.

• B. For the year ended December 31, 2020, employees’ compensation was accrued at $5,600; while directors’ and supervisors’ remuneration was accrued at $1,200. The aforementioned amounts were recognised in salary expenses.

• C. For the years ended December 31, 2020 and 2019, the Company had loss before tax, and thus did not accrue employees’ compensation and directors’ remuneration. Information about employees’ compensation and directors’ remuneration of the

• Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

• (10) Income tax

• A. The Company had no income tax expense for the years ended December 31, 2020 and 2019.

• B. Reconciliation between income tax expense and accounting profit

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		Year ended December 31	Year ended December 31	Year ended December 31
		2020		2019
Tax calculated based on loss	$	16,720	($	37,812)
before tax and statutory tax rate
Tax exempt income by tax regulation	(	16,384)		34,208
Taxable loss not recognised as deferred
tax assets	(	336)		3,604
Income tax expense	$	-	$	-

• C. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets of the Company’s domestic subsidiaries are as follows:

	December 31,2020
Year incurred 2018	Amount filed/ Unrecognised assessed Unused amount deferred tax assets 4,103 $ 2,210 $ 2,210 $	Expiry year
		2028

	December 31,2019
Year incurred 2018 2019	Amount filed/ Unrecognised assessed Unused amount deferred tax assets 4,103 $ 4,103 $ 4,103 $ 18,020 18,020 18,020	Expiry year
		2028 2029

• D. The Company’s income tax returns through 2018 have been assessed and approved by the Tax Authority.

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(11) Earnings (loss) per share

Earnings (loss) per share
			Year ended December 31,2020
			Weighted average number of
		Amount	ordinary shares outstanding		Earnings per share
		after tax		(share in thousands)		(in dollars)
Basic earnings per share
Profit attributable to the parent	$	83,599	$	246,242	$	0.34
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent	$	83,599		246,242
Assumed conversion of all dilutive
potential ordinary shares
Employees’compensation		-		173
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all dilutive
potential ordinary shares	$	83,599	$	246,415	$	0.34
			Year ended December 31,2019
			Weighted average number of
		Amount	ordinary shares outstanding			Loss per share
		after tax		(share in thousands)		(in dollars)
Basic and diluted loss per share
Loss attributable to the parent	($	189,059)			($	0.77)
Equity attributable to former
owner of business combination
under common control	(	17,953)			(	0.07)
	($	207,012)		246,242	($	0.84)

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties

Relationship with the Company

Cheng Uei Precision Industry Co., Ltd. (Cheng Uei) Ultimate parent Foxlink International Investment (FII) Subsidiary of the ultimate parent Fu Uei International Investment Ltd. (FUII) Subsidiary of the ultimate parent Foxlink Image Technology Co., Ltd. (Foxlink Image) Subsidiary of the Company Power Quotient International Co., Ltd. (PQI) Subsidiary of the Company Glory Science Co., Ltd. (Glory Science) Subsidiary of the Company Shih Fong Power Co., Ltd. (Shih Fong) Subsidiary of the Company Foxwell Energy Co., Ltd. (Foxwell Energy)

Ultimate parent Subsidiary of the ultimate parent Subsidiary of the ultimate parent

Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Investee that the Company accounted for using equity method

Shinfox Energy Co. Ltd. (Shinfox)

The Company is its ultimate parent The Company is its ultimate parent The Company is its ultimate parent The Company is its ultimate parent

Foxwell Energy Corporation Ltd. (Foxwell Energy) Glory Optics (Yancheng) Co., Ltd. (GOYC) Glorytek (Yancheng) Co., Ltd. (Glorytek Yancheng)

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Loans from related parties

Loans to related parties:

A. Outstanding balance:

Loans from related parties Loans to related parties: A. Outstanding balance:
B. Interest income GOYC Glorytek Yancheng GOYC Glorytek Yancheng		December 31,2020 219,054 $ 131,310 350,364 $ Year ended December 31, 2020 841 $ 694 1,535 $	December 31,2019 - $ - - $ Year ended December 31, 2019
				- $ - - $

The loans to subsidiaries are repayable based on the agreement and carry interest at 1.12% per annum.

(2) Key management compensation

None.

8. Pledged Assets

None.

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contingencies

Central Motion Picture Corporation (the “Central Motion Picture”), a financial asset at fair value through other comprehensive income that the Group obtained through investments accounted for using equity method, amounting to $257,656, was determined to be an affiliate organisation of the Kuomintang by the Ill-gotten Party Assets Settlement Committee (the “Ill-gotten Party”) in its written disposition, DangChan-Chu-Zi No. 107007, issued on October 9, 2018. Under paragraph 1, Articles 5 and 9 of the Act Governing the Settlement of Ill-gotten Properties by Political Parties and Their Affiliate Organisations (the “Act”), properties that were held by the Central Motion Picture when the Act was released on August 10, 2016 are considered as unjustly received properties. The presumed ill-gotten party assets as prescribed in the preceding paragraph 1 of Article 5 are prohibited from being transferred or disposed starting from the date of promulgation of this Act. However, this restriction is not applicable if it is necessary to perform its legal duties or other justifiable reasons. The properties held by the Central Motion Picture are considered as unjustly received properties; however, their existing rights in leases, superficies, mortgage, or pawnage are not affected if Ill-gotten Party considers such assets as unjustly received assets and then orders the bona fide third party to transfer such assets to the State, local selfgoverning bodies, or original owners. Under Article 16, the Central Motion Picture

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may file an administrative litigation (an action for revocation) in the Taipei High Administrative Court within two months after the aforementioned written disposition was served. In addition, the Central Motion Picture may file for a suspension of execution under Paragraph 2, Article 116 of the Administrative Litigation Act. On December 12, 2018, the Central Motion Picture Corporation submitted a cause of action to the Taipei High Administrative Court, which ruled to approve the suspension of execution in January 2020. However, the Ill-gotten Party subsequently filed an appeal against the ruling, and it was dismissed by the High Administrative Court in February 2020. Meanwhile, the Central Motion Picture filed a revocation action with the Taipei High Court, and it was pending approval as of January 14, 2020. As of the financial reporting date, the possible outcome of this litigation cannot be determined.

• (2) Commitments

• A, Information on endorsements/guarantees of the Company is provided in Note 13(1)B.

• B. As of December 31, 2020 and 2019, the subsidiaries of the Company issued promissory notes amounting to $5,682,681 and $284,991, respectively, for undertaking the Offshore Wind Farm Property Procurement and Installation Project of Taipower and the Solar Photovoltaic System Construction Project.

• C. The subsidiaries of the Company entered into agreements of equipment procurement and operation maintenance with Taipower for Phase II of the Offshore Wind Power Project, the “Wind Farm Property Procurement and Installation Project” with a total consideration of $56,588,000 and $6,300,000, respectively. The equipment procurement agreement stipulated that the Company shall complete the substructure installation of all wind turbines and marine substations before September 30, 2024, dispatch all units safely before September 30, 2025 and complete all construction before December 31, 2025. The Company will provide a 2-year warranty from the date of construction acceptance and guarantee a certain power supply from equipment. There is a staged progress and a final deadline for the performance of the project, and the penalty for overdue contract is calculated on the basis of each phase of the construction until the date of termination or cancellation of the agreement. The operation maintenance agreement regulated the terms of the guaranteed annual availability rate penalty for all wind power equipment and the period of the agreement was five years after all units have been safely dispatched.

• Significant Disaster Loss None.

• Significant Events after the Balance Sheet Date

• A. The appropriation of 2020 earnings had been approved by the Board of Directors on March 26, 2021. Details are summarized below:

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Legal reserve Cash dividends	2020	2020
	Amount 8,985 $ 73,873	Dividends per share (in dollars)
		0.30 $

• B. The cash payment from capital surplus of $172,369 (NTD $0.7 per share) had been approved by the Board of Directors on March 26, 2021.

12. Others

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or use the working capital effectively to reduce debt.

(2) Financial instruments

A. Financial instruments by category

nancial instruments Financial instruments by category
Financial assets Financial assets at amortised cost Cash and cash equivalents Financial liabilities Financial liabilities at amortised cost Short-term borrowings Other accounts payable Long-term borrowings	December 31,2020 2,150 $ December 31,2020 757,800 $ 12,800 400,000 1,170,600 $	December 31,2019
		665 $
		December 31,2019
		615,000 $ 4,893 300,000
		919,893 $

B. Financial risk management policies

The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk.

The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial position and financial performance.

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• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Exchange rate risk

• i. The Company’s foreign exchange rate risk mainly arises from recognised assets and liabilities

• ii. The Company’s businesses involve some non-functional currency operations. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

December 31, 2020 Foreign currency amount Book value (In thousands) Exchange rate (NTD)

(Foreign currency: functional currency) Financial assets Monetary items RMB:NTD $ 80,326 $ 4.3770 $ 351,587

• iii. The total exchange gain (loss), including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2020 and 2019, amounted to $12,054 and ($14), respectively.

• iv. Analysis of foreign currency market risk arising from significant foreign exchange variation:

(Foreign currency: functional currency) Financial assets Monetary items RMB:NTD	Degree of Effect on profit Effect on other variation or loss before tax comprehensive income 1% 3,516 $ - Year ended December 31,2020 Sensitivityanalysis
	Degree of variation 1%

Interest rate risk

The Company is not exposed to market risk arising from material change in interest rates as it did not invest in interest rate products and its borrowings were at fixed rate.

(b) Credit risk

Credit risk refers to the risk of financial loss to the Company arising from

default by the counterparties of financial instruments on the contract

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obligations. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial institutions, only independently rated parties with a good credit rating are accepted.

• (c) Liquidity risk

• i. Cash flow forecasting is performed in the Company. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs so that the Company does not breach agreement related to liabilities.

• ii. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities

Non-derivative financial	liabilities
December 31, 2020 Short-term borrowings Other payables Long-term borrowings	Less than 1year 758,403 $ 12,800 4,520 775,723 $	Between 2 and 5years - $ - 402,589 402,589 $	Over 5years
			- $ - -
			- $

Non-derivative financial liabilities

Non-derivative financial	liabilities
December 31, 2019 Short-term borrowings Other payables Long-term borrowings	Less than 1year 615,484 $ 4,893 3,362 623,739 $	Between 2 and 5years - $ - 300,995 300,995 $	Over 5years
			- $ - -
			- $

(3) Fair value information

The Company did not trade any financial instruments measured at fair value.

13. Supplementary Disclosures

(1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300

~35~

million or 20% of the Company’s paid-in capital: Please refer to table 4.

• E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

• F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 6.

• I. trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: Please refer to table 7.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China) ： Please refer to table 8.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 9.

• B. Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in the third areas

• (a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: Please refer to Note 13(1) G.

• (b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: Please refer to Note 13(1) G.

• (c) The amount of property transactions and the amount of the resulting gains or losses:None.

• (d) Balance and purpose of provision of endorsements/guarantees or collaterals at December 31, 2020: Please refer to 13(1) B.

• (e) Maximum balance, ending balance, interest rate range and interest for financing during the year ended and as at December 31, 2020: Please refer to Note 13(1) A.

• (f) Other significant transactions that affected the gains and losses or financial status for the period, i.e. rendering/receiving of service: None.

(4) Major shareholders information

Please refer to table 10.

14. Segment Information

None.

~36~

FIT HOLDING CO., LTD.

Loans to others

Year ended December 31, 2020

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

No. (Note 1) Creditor Borrower General ledger account Is a related party Maximum outstanding balance during the year ended December 31, 2020 Balance at December 31, 2020 Interest rate Nature of loan (Note 2) Amount of transactions with the borrower Reason for short-term financing Allowance for doubtful accounts Actual amount drawn down	Collateral	Limit on loans granted to a single party (Note 3)	Ceiling on total loansgranted	Footnote
	Item Value
0 FIT Holding Co., Ltd. Glory Optics (Yancheng) Co., Ltd. Other receivables Y 289,014 $ 288,882 $ 218,850 $ 0.98%-1.2% 2 - $ Operations - $ 0 FIT Holding Co., Ltd. Glorytek (Yancheng) Co., Ltd. Other receivables Y 131,370 131,310 131,310 0.98%-1.2% 2 - Operations - 1 Foxlink Image Technology Co., Ltd. Glory Science Co., Ltd. Other receivables Y 300,000 300,000 143,000 0.85%-1.2% 2 - Operations - 1 Foxlink Image Technology Co., Ltd. Power Quotient International Co., Ltd. Other receivables Y 648,000 600,000 425,000 0.89%-1.23% 2 - Operations - 2 Glory Science Co., Ltd. Glory Optics (Yancheng) Co., Ltd. Other receivables Y 399,970 253,866 253,866 1.5% 2 - Operations - 3 GLORY OPTICS(BVI) CO., LTD. Glorytek (Yancheng) Co., Ltd. Other receivables Y 93,060 - - - 2 - Operations - 3 GLORY OPTICS(BVI) CO., LTD. Glory Optics (Yancheng) Co., Ltd. Other receivables Y 75,068 - - - 2 - Operations - 4 Glorytek (Yancheng) Co., Ltd. Glory Optics (Yancheng) Co., Ltd. Other receivables Y 28,026 28,013 28,013 3% 2 - Operations - 4 Glorytek (Yancheng) Co., Ltd. Glorytek (Yancheng) Co., Ltd. Other receivables Y 220,910 218,850 175,080 5% 2 - Operations - 5 Power Quotient Technology (YANCHENG) Co., Ltd. Jiangsu Foxlink New Energy Technology Co.,Ltd. Other receivables Y 457,600 - - - 2 - Group capital movement - 6 Foxwell Energy Corporation Ltd. Beiyuan Wind Power Co., Ltd. Other receivables Y 50,000 - - Over one month, 1.75% 2 - Group capital movement - 6 Foxwell Energy Corporation Ltd. Changyuan Wind Power Co., Ltd. Other receivables Y 50,000 - - Over one month, 1.75% 2 - Group capital movement - 7 Shinfox Co., Ltd. Foxwell Energy Corporation Ltd. Other receivables Y 50,000 50,000 - 1.6% 2 - Group capital movement - 7 Shinfox Co., Ltd. Foxwell Power Co., Ltd. Other receivables Y 50,000 50,000 - 1.6% 2 - Group capital movement - 7 Shinfox Co., Ltd. SHINFOX NATURAL GAS CO., LTD. Other receivables Y 60,000 60,000 - 1.5%-1.6% 2 - Group capital movement -	- - $ - - - - - - - - - - - - - - - - - - - - - - - - - - - -	2,117,579 $ 2,117,579 1,174,532 1,174,532 309,072 - - 477,261 477,261 695,052 - - 501,621 501,621 501,621	2,823,439 $ 2,823,439 1,174,532 1,174,532 309,072 - - 477,261 477,261 695,052 - - 501,621 501,621 501,621

Note 1: The numbers filled in for the loans to others provided by the Company or subsidiaries are as follows:

• ‘ ’

• (1) The Company is 0 .

(2) The subsidiaries are numbered in order starting from ‘1’.�

Note 2: Fill in the nature of the loan as follows:

(1) Fill in 1 for business transaction.

(2) Fill in 2 for short-term financing

Note 3: The Company's and its subsidiaries' limits on loans to singal party and total loans are calculated based on the Company's and its subsidiaries' "Procedures for Provision of Loans".

(a) Total limit on loans granted to the companies having business relationship with the Company is 40% of the Company's net assets, limit on loans granted to a single party is 150% of the amount of business transactions between the creditor and borrower in the current year; the amount of business transactions means the higher between sales and purchases.

(b) Limit on total loans to parties with short-term financing is 40% of the Company's net assets; but limit on loans to a single party is 30% of the Company's net assets.

(c) Ceiling on total loans granted between foreign companies whose voting shares are 100% held by the Company directly or indirectly, or on loans granted to the Company by such foreign companies is 100% of their net asset value.

The total amount of loans granted to a single company should not exceed 100% of the net assets. Financing period shall not be more than 3 years.

(d) Among the Company and the parent company or subsidiaries, or loans between the Company's subsidiaires, excluding the loans to others qualifying the abovementioned condition, (c), the authorised limit on the Company's or the Company's subsidiaries' loans to a singal party shall be lower than 10% of the company's net assets based on the company's lastest financial statements.

(e) Limit on total loans and individual limit on lonas to others of the Company's subsidiaries are both under 40% of the Company's net assets.

Table 1, Page 1

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

FIT HOLDING CO., LTD.

Provision of endorsements and guarantees to others Year ended December 31, 2020

Number (Note 1) Endorser/ guarantor	Partybeingendorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2020	Outstanding endorsement/ guarantee amount at December 31, 2020	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
	Companyname Relationship with the endorser/ guarantor (Note2)
0 FIT Holding Co., Ltd. 0 FIT Holding Co., Ltd. 0 FIT Holding Co., Ltd. 1 Glory Science Co., Ltd. 1 Glory Science Co., Ltd. 2 Foxwell Energy Corporation Ltd. 3 Foxlink Image Technology Co., Ltd. 3 Foxlink Image Technology Co., Ltd. 4 Shinfox Co., Ltd.	Power Quotient International Co., Ltd. 2 Glory Science Co., Ltd. 2 Foxwell Energy Corporation Ltd. 2 Glory Optics (Yancheng) Co., Ltd. 2 Glorytek (Yancheng) Co., Ltd. 2 Beiyuan Wind Power Co., Ltd. 2 Glory Science Co., Ltd. 4 Power Quotient International Co., Ltd. 4 Foxwell Energy Corporation Ltd. 2	10,587,898 $ 10,587,898 9,882,038 1,159,023 1,159,023 1,238,685 4,110,865 4,110,865 1,881,077	720,000 $ 1,260,000 531,698 185,070 185,070 600,000 600,000 300,000 800,000	720,000 $ 1,121,310 522,778 - - - 600,000 300,000 800,000	400,000 $ 625,000 522,778 - - - 200,000 300,000 790,000	- - - - - - - - -	10.20 15.89 7.41 - - - 8.50 4.25 11.33	10,587,898 $ 10,587,898 10,587,898 1,159,023 1,159,023 1,238,685 4,404,498 4,404,498 1,881,077	Y Y Y Y Y Y N N Y	N N N N N N N N N	N N N Y Y N N N N

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

• (1) The Company is '0'.

• (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories; fill in the number of category each case belongs to:

• (1) Having business relationship.�

(2) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (3) The endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.

• (4) The endorser/guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company.�

• (5) Mutual guarantee of the trade made by the endorsed/guaranteed company or joint contractor as required under the construction contract.�

• (6) Due to joint venture, all shareholders provide endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.�

• (7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.�

Note 3: Total limit or limit on loans to a singal party of the Company's and subsidiaires is calculated in accordance with the Company's "Procedures for Provision of Endorsements and Guarantees".

• (1) Limit on total endorsements is 150% of the Company's net asset.

• (2) Limit on endorsements to a single party is 140% of the Company's net asset.

• (3) Limit on total endorsements granted by the Company and its subsidiaries is 150% of the Company's net asset.

• (4) Total limit on the Company's and its subsidiaries endorsement/guarantee to a singal party is 140% of the Company's net assets and to the subisidiaries that the Company owned more than 90% (included) voting shares is 150% of the Company's net assets.

• (5) For business transaction with the Company, the guarantee amount should not exceed 150% of the amount of business transaction, which is the higher between sales and purchases.

• (6) The companies whose voting rights are 90% owned directly and indirectly by the Company can provide endorsement/guarnatee each other with a limat of 10% of the Company's net assets, but not available for the companies whose voting rights are 100% owned directly and indirectly by the Company.

• (7) The Company's subsidiary who prepared to provide endorsement/guarnatee to others due to business transaction shall implement in accordance with the Company's procedures, and the calculation of the Company's net assets shall use the subsidiary's net assets.

Table 2, Page 1

FIT HOLDING CO., LTD.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

Year ended December 31, 2020

Table 3

Expressed in thousands of NTD

(Except as otherwise indicated)

Securitiesheld by	Marketable securities	Relationship with the securitiesissuer	General ledgeraccount		As of December31,2020	As of December31,2020		Footnote
				Number of shares (inthousands)	Bookvalue	Ownership (%)	Fairvalue
Foxlink Image Technology Co., Ltd. Foxlink Image Technology Co., Ltd. Foxlink Image Technology Co., Ltd. Foxlink Image Technology Co., Ltd. Power Quotient International Co., Ltd. Power Quotient International Co., Ltd. Power Quotient International Co., Ltd. Power Quotient International Co., Ltd. Power Quotient International Co., Ltd. Power Quotient Technology (YANCHENG) Co., Ltd.	TAIWAN STAR TELECOM CORPORATION LIMITED Central Motion Picture Corporation Cheng Uei Precision Industry Co., Ltd. Wellgen Medical Co., Ltd. SAINT SONG CORP. OURS TECHNOLOGY INC. INNOPLUS CO., LTD. TAIWAN STAR TELECOM CORPORATION LIMITED STACK DEVICES CORPORATION Jiangsu Foxlink New Energy Technology Co.,Ltd.	Not applicable Investee of the Company's parent company which is accounted for using equity method The Company's parent company Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	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 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	50,000 4,294 27,503 1,500 127 13 160 50,000 70 -	350,000 $ 257,656 1,295,391 18,375 - - - 350,000 - 73,997	0.91 4.00 5.37 15.80 1.05 0.21 12.00 0.91 0.11 12.90	350,000 $ 257,656 1,295,391 18,375 - - - 350,000 - 73,997	Not pledged as collateral Not pledged as collateral Not pledged as collateral Not pledged as collateral Not pledged as collateral Not pledged as collateral Not pledged as collateral Not pledged as collateral Not pledged as collateral Not pledged as collateral

Table 3, Page 1

As of December 31, 2020

Securitiesheld by	Marketable securities	Relationship with the securitiesissuer	General ledgeraccount	Number of shares (inthousands)	Bookvalue	Ownership (%)	Fairvalue	Footnote
Shinfox Co., Ltd. Shinfox Co., Ltd. Foxwell Energy Corporation Ltd.	Corvus Energy Ltd. SEC INTERNATIONAL INC. Full Entertainment Marketing Co., Ltd.	Not applicable Not applicable Not applicable	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	22 54 300	- - -	0.12 9.00 1.50	- - -	Not pledged as collateral Not pledged as collateral Not pledged as collateral

Table 3, Page 2

FIT HOLDING CO., LTD.

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

Year ended December 31, 2020

Table 4 Investor	Marketable securities	General ledger account	Counterparty	Relationship with the counterparty	Balance as at January1,2020	Balance as at January1,2020	Addition	Addition		Disposal	Disposal		Expressed in thousands of NTD (Except as otherwise indicated) Balance as at December 31,2020	Expressed in thousands of NTD (Except as otherwise indicated) Balance as at December 31,2020
					No. of shares (in thousands)	Amount	No. of shares (in thousands)	Amount	No. of shares (in thousands)	Selling price	Book value	Gain (loss) on disposal	No. of shares (in thousands)	Amount
Foxlink Image Technology Co., Ltd. Foxwell Energy Corporation Ltd. Foxwell Energy Corporation Ltd.	Shih Fong Power Co., Ltd. Changyuan Wind Power Co., Ltd. Beiyuan Wind Power Co., Ltd.	Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method	Capital increase by cash Foxwell Energy Co., Ltd. Foxwell Energy Co., Ltd.	Affiliate Other related party Other related party	- 23,000 16,000	$ - 197,206 129,109	79,800,000 - -	$ 957,600 - -	- 23,000 16,000	$ - 319,150 240,187	$ - 193,660 125,827	$ - 125,490 114,360	79,800,000 - -	$ 957,600 - -

Table 4, Page 1

Table 5

FIT HOLDING CO., LTD.

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more Year ended December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
ACCU-IMAGE TECHNOLOGY LIMITED Foxlink Image Technology Co., Ltd. Wei Hai Fu Kang Electric Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED Dongguan Fu Wei Electronics Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED Dong Guan Fu Zhang Precision Industry Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED Dongguan Fu Wei Electronics Co., Ltd. Foxlink Image Technology Co., Ltd. Glory Science Co., Ltd.	Foxlink Image Technology Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED ACCU-IMAGE TECHNOLOGY LIMITED Wei Hai Fu Kang Electric Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED Dongguan Fu Wei Electronics Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED Dong Guan Fu Zhang Precision Industry Co., Ltd. Foxlink Image Technology Co., Ltd. Dongguan Fu Wei Electronics Co., Ltd. Glorytek (Yancheng) Co., Ltd.	Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate	Processing income Processing income Sales Purchases Processing income Processing costs Processing income Processing costs Processing income Processing costs Purchases	586,226) ($ 586,226 190,473) ( 190,473 428,381) ( 428,381 114,510) ( 114,510 175,080) ( 175,080 117,220	-100% 75% -98% 33% -67% 72% -79% 19% -27% 22% 18%	Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement 90 days after monthly billings 90 days after monthly billings Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement	Mutual agreement Mutual agreement Mutual agreement Mutual agreement Mutual agreement Mutual agreement Mutual agreement Mutual agreement Mutual agreement Mutual agreement Mutual agreement	None None None None None None None None None None None	12,541 $ 12,541) ( 46,781 46,781) ( 262,549 262,549) ( 117,061 117,061) ( 178,981 178,981) ( 11,254) (	22% -4% 96% -100% 56% -69% 53% -31% 38% -60% -14%

Table 6, Page 1

Table 6

FIT HOLDING CO., LTD.

Receivables from related parties reaching $100 million or 20% of paid-in capital or more

Year ended December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Overdue receivables

					Overdue	receivables
Creditor	Counterparty	Relationship withthe counterparty	Balance as at December31,2020	Turnover rate	Amount	Actiontaken	Amount collected subsequent to the balance sheet date	Allowance for doubtfulaccounts
Dongguan Fu Wei Electronics Co., Ltd. Dongguan Fu Wei Electronics Co., Ltd. Dong Guan Fu Zhang Precision Industry Co., Ltd. Dong Guan Fu Zhang Precision Industry Co., Ltd. Foxlink Image Technology Co., Ltd. Foxlink Image Technology Co., Ltd. Glory Science Co., Ltd. Glory Science Co., Ltd. Glory Science Co., Ltd. Yancheng Yaowei Technology Co., Ltd. Glorytek (Suzhou) Co., Ltd. FIT Holding Co., Ltd. FIT Holding Co., Ltd.	ACCU-IMAGE TECHNOLOGY LIMITED Foxlink Image Technology Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED Foxlink Image Technology Co., Ltd. Power Quotient International Co., Ltd. Glory Science Co., Ltd. Glorytek (Yancheng) Co., Ltd. Glory Optics (Yancheng) Co., Ltd. Glorytek (Yancheng) Co., Ltd. Glorytek (Suzhou) Co., Ltd. Glorytek (Yancheng) Co., Ltd. Glorytek (Yancheng) Co., Ltd. Glory Optics (Yancheng) Co., Ltd.	Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate Affiliate	262,549 $ 178,981 117,061 103,223 425,000 143,000 328,575 507,221 121,199 138,336 177,144 131,310 219,054	1.37 1.96 0.84 0.33 Note 1 Note 1 0.07 Note 1 Note 1 0.06 Note 1 Note 1 Note 1	- $ - - - - - - - - - - - -	- - - - - - - - - - - - -	$ - 43,770 30,055 11,238 - - - - - - - - -	- $ - - - - - - - - - - - -

Note 1: It was recognised in other receivables, therefore it was not applicable.

Table 7, Page 1

FIT HOLDING CO., LTD. Significant inter-company transactions during the reporting period Year ended December 31, 2020

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship	General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues or total assets (Note 3)
1 1 2 2 3 4 5 5 5 5 6 6	FIT Holding Co., Ltd. FIT Holding Co., Ltd. Foxlink Image Technology Co., Ltd. Foxlink Image Technology Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED Wei Hai Fu Kang Electric Co., Ltd. Dongguan Fu Wei Electronics Co., Ltd. Dongguan Fu Wei Electronics Co., Ltd. Dongguan Fu Wei Electronics Co., Ltd. Dongguan Fu Wei Electronics Co., Ltd. Dong Guan Fu Zhang Precision Industry Co., Ltd. Dong Guan Fu Zhang Precision Industry Co., Ltd.	Glorytek (Yancheng) Co., Ltd. Glory Optics (Yancheng) Co., Ltd. Power Quotient International Co., Ltd. Glory Science Co., Ltd. Foxlink Image Technology Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED ACCU-IMAGE TECHNOLOGY LIMITED ACCU-IMAGE TECHNOLOGY LIMITED Foxlink Image Technology Co., Ltd. Foxlink Image Technology Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED ACCU-IMAGE TECHNOLOGY LIMITED	1 1 3 3 3 3 3 3 3 3 3 3	Other receivables Other receivables Other receivables Other receivables Processing income Sales revenue Processing income Accounts receivable Processing income Accounts receivable Processing income Accounts receivable	131,310 $ 219,054 425,000 143,000 586,226 190,473 428,381 262,549 175,080 178,981 114,510 117,061	Based on the Company's policies Based on the Company's policies Based on the Company's policies Based on the Company's policies Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement Flexible collection, depending on the capital requirement	1% 1% 2% 1% 8% 3% 6% 1% 2% 1% 2% 1%

Table 8, Page 1

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship	General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues or total assets (Note 3)
7 7 7 8 9	Glory Science Co., Ltd. Glory Science Co., Ltd. Glory Science Co., Ltd. Glorytek (Suzhou) Co., Ltd. Yancheng Yaowei Technology Co., Ltd.	Glory Optics (Yancheng) Co., Ltd. Glorytek (Yancheng) Co., Ltd. Glorytek (Yancheng) Co., Ltd. Glorytek (Yancheng) Co., Ltd. Glorytek (Suzhou) Co., Ltd.	3 3 3 3 3	Other receivables Accounts receivable Other receivables Other receivables Accounts receivable	507,221 328,575 121,199 175,080 138,336	Collected depending on the capital requirement after offsetting receivables and payables Based on the Company's policies Based on the Company's policies Collected depending on the capital requirement after offsetting receivables and payables Based on the Company's policies	2% 1% 1% 1% 1%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:�

(1) Parent company is '0'.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to.� (1) Parent company to subsidiary.

(2)Subsidiary to parent company.�

(3)Subsidiary to subsidiary.�

Note 3: Percentage of total consolidated revenues or total assets is calculated using the total consolidated assets at the end of the year when the subject of transaction is an asset/liability, � and is calculated by total consolidated revenues during the year when the subject of transaction is a revenue/expense.

Note 4: The inter-company transactions not exceeding $0.1 billion are not disclosed. In addition, counterparty related parties' transactions are not disclosed.

Table 8, Page 2

Table 8

FIT HOLDING CO., LTD.

Information on investees

Year ended December 31, 2020

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2020	as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020 (Note 1)	Investment income (loss) recognized by the Company for the year ended December 31, 2020 (Note 1)	Footnote
				Balance as at December 31, 2020	Balance as at December 31,2019	Number of shares	Ownership (%)	Book value
FIT Holding Co., Ltd. FIT Holding Co., Ltd. FIT Holding Co., Ltd. FIT Holding Co., Ltd. FIT Holding Co., Ltd. Foxlink Image Technology Co., Ltd. Foxlink Image Technology Co., Ltd. Foxlink Image Technology Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED Glory Science Co., Ltd. GLORY TEK (BVI) CO., LTD.	Glory Science Co., Ltd. Foxlink Image Technology Co., Ltd. Power Quotient International Co., Ltd. Shih Fong Power Co., Ltd. Foxwell Energy Co., Ltd. ACCU-IMAGE TECHNOLOGY LIMITED KLEINE DEVELOPMENTS LIMITED Shih Fong Power Co., Ltd. POWER CHANNEL LIMITED GLORY TEK (BVI) CO., LTD. GLORY TEK (SAMOA) CO., LTD.	Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands British Virgin Islands Taiwan Hong Kong British Virgin Islands Samoa	Manufacture and sales of optical instruments Manufacture of image scanners and multifunction printers Manufacture and sales of telecommunication electronic components Hydroelectricity generation Energy service management Manufacture of image scanners and multifunction printers Manufacture and sales of magnesium products Hydroelectricity generation Holding and reinvesting businesses General investments business General investments business	2,214,868 $ 3,011,140 2,172,180 760,000 210,000 1,030,318 - 957,600 139,552 1,379,545 780,074	2,214,868 $ 3,011,140 2,172,180 760,000 - 1,030,318 642,224 - 139,552 1,379,545 780,074	95,970,371 164,993,974 324,690,529 95,000,000 21,000,000 13,241,034 - 79,800,000 3,575 40,699,819 25,050,628	100.00 100.00 100.00 41.30 14.00 100.00 0.00 34.70 35.75 100.00 100.00	772,681 $ 3,682,263 2,211,702 1,000,903 209,077 1,383,042 - 957,197 507,611 583,887 692,930	482,494) ($ 382,773 212,885 2,634) ( 6,592) ( 150,150 3 2,634) ( 122,016 336,236) ( 197,992) (	482,494) ($ 376,562 211,174 1,952) ( 923) ( - - 403) ( - - -	Subidiary (Note 1) Subidiary (Note 1) Subidiary (Note 1) Subidiary (Note 1) Subidiary (Note 1) Second-tier subsidiary (Note 1) Investee (Note 3) Investee (Note 1) Investee (Note 1) Second-tier subsidiary (Note 1) Third-tier subsidiary (Note 1)

Table 9, Page 1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2020	as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020 (Note 1)	Investment income (loss) recognized by the Company for the year ended December 31, 2020 (Note 1)	Footnote
				Balance as at December 31, 2020	Balance as at December 31,2019	Number of shares	Ownership (%)	Book value
GLORY TEK (BVI) CO., LTD. GLORY TEK (BVI) CO., LTD. GLORYTEK SCIENCE INDIA PRIVATE LIMITED Power Quotient International Co., Ltd. Power Quotient International Co., Ltd. Power Quotient International Co., Ltd. Power Quotient International Co., Ltd. Power Quotient International Co., Ltd. Power Quotient International Co., Ltd. Power Quotient International Co., Ltd. Power Quotient International Co., Ltd. Power Sufficient International Co., Ltd. Shinfox Co., Ltd. Shinfox Co., Ltd.	GLORY OPTICS (BVI) CO., LTD. GLORYTEK SCIENCE INDIA PRIVATE LIMITED TEGNA ELECTRONICS PRIVATE LIMITED Power Quotient International (H.K.) Co., Ltd. PQI JAPAN CO., LTD SYSCOM DEVELOPMENT CO., LTD. Apix LIMITED PQI Mobility Inc. Castles Technology Co., Ltd. Power Sufficient International Co., Ltd. Shinfox Co., Ltd. Castles Technology Co., Ltd. Foxwell Energy Corporation Ltd. SHINFOX ENERGY INTERNATIONAL INC.	British Virgin Islands India India Hong Kong Japan British Virgin Islands British Virgin Islands Samoa Taiwan Taiwan Taiwan Taiwan Taiwan Republic of Seychelles	Trading Trading and manufacturing Trading and manufacturing Sales of electronic telecommunication components Sales of electronic telecommunication components General investments holding Specialised investments holding Specialised investments holding Trading and manufacturing of magnetic card and reader for barcode Sales of medical instruments Energy service management Trading and manufacturing of magnetic card and reader for barcode Energy service management Energy service management	494,837 99,927 13,174 389,705 23,129 309,378 2,946,803 284,800 43,061 10,000 561,482 6,670 672,000 -	494,849 99,927 13,174 389,705 23,129 309,378 2,946,803 284,800 48,831 10,000 553,110 6,670 672,000 35,976	16,000,000 21,773,105 3,001,000 106,100,000 24,300 10,862,980 12,501 10,000,000 10,847,003 1,000,000 58,743,000 331,000 67,200,000 -	100.00 99.27 10.00 100.00 100.00 100.00 100.00 100.00 12.11 100.00 58.74 0.37 100.00 -	58,973) ( 85,423 12,971 4,712) ( 156,089) ( 407,489) ( 1,109,517 695,052 176,017 8,935 740,111 5,412 848,087 -	139,482) ( 1,252 6,130 38) ( 115) ( 2,210 62,793 12,589) ( 198,122 731 244,389 198,122 185,566 -	- - - - - - - - - - - - - -	Third-tier subsidiary (Note 1) Third-tier subsidiary (Note 1) Investee (Note 1) Second-tier subsidiary (Note 1) Second-tier subsidiary (Note 1) Second-tier subsidiary (Note 1) Second-tier subsidiary (Note 1) Second-tier subsidiary (Note 1) Investee (Note 1) Second-tier subsidiary (Note 1) Second-tier subsidiary (Note 1) Investee (Note 1) Third-tier subsidiary (Note 1) Third-tier subsidiary (Note 2)

Table 9, Page 2

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2020	as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020 (Note 1)	Investment income (loss) recognized by the Company for the year ended December 31, 2020 (Note 1)	Footnote
				Balance as at December 31, 2020	Balance as at December 31,2019	Number of shares	Ownership (%)	Book value
Shinfox Co., Ltd. Shinfox Co., Ltd. Shinfox Co., Ltd. Foxwell Energy Corporation Ltd. Foxwell Energy Corporation Ltd. SYSCOM DEVELOPMENT CO., LTD SYSCOM DEVELOPMENT CO., LTD Apix LIMITED Apix LIMITED Sinocity Industries Co., Ltd. Perennial Ace Limited Foxlink Powerbank International Technology Private Limited	SHINFOX NATURAL GAS CO.,LTD. Foxwell Power Co., Ltd. Shinfox Power Co., Ltd. Beiyuan Wind Power Co., Ltd. Changyuan Wind Power Co., Ltd. PQI CORPORATION Foxlink Powerbank International Technology Private Limited Sinocity Industries Co., Ltd. Perennial Ace Limited DG LIFESTYLE STORE LIMITED Studio A Technology Limited TEGNA ELECTRONICS PRIVATE LIMITED	Taiwan Taiwan Taiwan Taiwan Taiwan USA India Hong Kong British Virgin Islands Macau Hong Kong India	Energy service management Energy service management Energy service management Wind energy Wind energy Sales of electronic telecommunication components Sales of electronic telecommunication components Sales of electronic telecommunication components Specialised investments holding Trading and manufacturing Trading and manufacturing Trading and manufacturing	120,000 99,000 - - - 199,360 95,778 2,479,275 606,624 357 4,998 11,649	15,000 10,000 - 160,000 230,000 199,360 95,778 2,479,275 606,624 357 4,998 11,649	12,000 9,900 - - - 7,000,000 21,790,000 6,000,000 No shares issued 100,000 1,225,000 3,001,000	80.00 99.00 - - - 100.00 99.27 100.00 100.00 100.00 24.50 10.00	103,015 99,460 - - - 492,603) ( 85,081 889,537 219,848 635 93,174 12,915	12,762) ( 1,425 52) ( 3,280) ( 3,547) ( 303 1,921 48,507 14,286 130,136) ( 58,309 6,130	- - - - - - - - - - - -	Third-tier subsidiary (Note 1) Third-tier subsidiary (Note 1) Third-tier subsidiary (Notes 1 and 4) Fourth-tier subsidiary (Notes 1 and 4) Fourth-tier subsidiary (Notes 1 and 4) Third-tier subsidiary (Note 1) Third-tier subsidiary (Note 1) Third-tier subsidiary (Note 1) Third-tier subsidiary (Note 1) Fourth-tier subsidiary (Note 1) Investee (Note 1) Investee (Note 1)

Note 1: It was recognised based on the company's financial statements reviewed by the independent auditors. Note 2: It was retired in the first quarter of 2020. Note 3: It was retired in the second quarter of 2020.

Note 4: It was sold in the fourth quarter of 2020.

Table 9, Page 3

FIT HOLDING CO., LTD.

Information on investments in Mainland China

Year ended December 31, 2020

Table 9 Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to	Amount remitted from	Amount remitted from	Accumulated amount of remittance from Taiwan to Mainland China as	Net income of investee for the year ended December 31,	Ownership held by the Company (direct or indirect) Investment income (loss) recognized by the Company for the year ended December 31, 2020	Book value of investments in Mainland China as of December 31, Expressed in thousands of NTD (Except as otherwise indicated) Accumulated amount of investment income remitted back to Taiwan as of Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Dong Guan Han Yang Computer Limited Sharetronic Data Technology Co., Ltd. Dong Guan Fu Zhang Precision Industry Co., Ltd. Wei Hai Fu Kang Electric Co., Ltd. Dongguan Fu Wei Electronics Co., Ltd. Glorytek (Suzhou) Co., Ltd. Glorytek (Yancheng) Co., Ltd. Yancheng Yao Wei Technology Co., Ltd Glory Optics (Yancheng) Co., Ltd. Power Quotient Technology (YANCHENG) Co., Jiangsu Foxlink New Energy Technology Co.,Ltd. PQI (Xuzhou) New Energy Co., Ltd. Kunshan Jiuwei Info Tech Co., Ltd.	Manufacture of image scanners and multifunction printers and investment in property Manufacutre and sales of mobile phone, LCD TV Connector and electronic components Mould development and moulding tool manufacture Manufacture and sale of parts and moulds of photocopiers and scanners Manufacture and sales of image scanners, multifunction and printers and its accessories Trading and manufacturing Trading and manufacturing Trading and manufacturing Trading and manufacturing Manufacture and sales of electronic components Manufacture and sales of electronic components Manufacture and sale of electronic telecommunication components Supply chain finance energy service management	174,828 $ 678,078 231,037 227,840 170,880 398,720 256,320 43,770 944,412 569,600 678,435 43,770 1,424	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 2 Note 3 Note 1 Note 2 Note 2 Note 3	174,828 $ 122,179 169,897 142,400 151,181 398,720 256,320 - 329,444 Note 4 Note 5 Note 5 1,424	- $ - - - - - - - - - - - -	- $ - - - - - - - - - - - -	174,828 $ 122,179 169,897 142,400 151,181 398,720 256,320 - 329,444 - - - 1,424	18,503 $ 408,080 2,813) ( 15,610) ( 73,942 127,156) ( 129,381) ( 3,574) ( 203,066) ( 12,589) ( - 12 3,466	100 18,503 $ 7.13 40,468 100 2,813) ( 100 15,610) ( 100 73,942 100 127,156) ( 100 129,381) ( 100 3,574) ( 100 203,066) ( 100 12,589) ( Note 7 - 100 12 100 3,466	247,575 $ - $ Note 6 381,392 - Note 6 261,020 - Note 6 250,436 - Note 6 513,673 - Note 6 477,261 - Note 6 304,355) ( - Note 6 143,422 - Note 6 631,079 - Note 6 695,052 - Note 6 - - - 43,782 - Note 6 13,714 - Note 6

Note 1: Through investing in an existing company in the third area, which then invested in the investee in Mainland China. Note 2: As the investment is invested through an existing company in Mainland China, which then invested in the investee. Note 3: An investee established in the third area and an reinvestee in Mainland China invested by an investee in Mainland China. Note 4: The capital of an indirect investment of PQI, Power Quotient Technology (YANCHENG) Co., Ltd., was remitted by the financing from the investee in the third party. Note 5: The capital of an indirect investment of PQI, Jiangsu Foxlink New Energy Technology Co.,Ltd. and PQI (Xuzhou) New Energy Co., Ltd. , was remitted by a capital from Power Quotient Technology (YANCHENG) Co., Ltd. Note 6: It was recognised based on the investee's financial statements reviewed by the independent auditors. Note 7: Jiangsu Foxlink New Energy Technology Co., Ltd. was initially a subsidiary of the Group. However, the Group did not participate in the capital increase of Jiangsu Foxlink New Energy Technology Co., Ltd. in April 2020, thus, the Group lost its control over the company, and this investment was recognised in investments accounted for using equity method. Subsequently, the company proceeded to reduce its capital by returning cash, and the shareholding ratio decreased to 12.9%. The Group lost its control over the company, therefore, this investment was classified in financial assets at fair value through other comprehensive income.

Table 10, Page 1

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December31,2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed bythe InvestmentCommission of MOEA
Foxlink Image Technology Co., Ltd. Glory Science Co., Ltd. Power Quotient International Co., Ltd.	771,956 $ 984,484 1,424	923,199 $ 1,194,736 622,146	1,761,799 $ 463,992 1,704,187

Table 10, Page 3

Table 10

FIT HOLDING CO., LTD. Major shareholders information December 31, 2020

Name of major shareholders	Shares	Shares
	Number of shares held	Ownership (%)
Foxlink International Investment Ltd. Zhi De Investment Co., Ltd. Fu Uei International Investment Ltd. (FUII)	58,303,464 21,055,687 14,690,257	23.67% 8.55% 5.96%

Table 11, Page 1

FIT HOLDING CO., LTD. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD YEAR ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan dollars)

STATEMENT 1

Name	BeginningBalance	BeginningBalance	Addition	Addition	Decrease	Decrease		EndingBalance		Market Value or Net Assets Value	Market Value or Net Assets Value	Collateral
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Percentage of Ownership	Amount	Unit Price	Total Amount
Foxlink Image Technology Co., Ltd. Power Quotient International Co., Ltd. Glory Science Co., Ltd. Shih Fong Power Co., Ltd. Foxwell Energy Co., Ltd.	164,993,974 324,690,529 95,970,371 95,000,000	3,608,129 $ 1,938,232 1,254,721 822,469 -	- - - 21,000,000	74,134 $ 273,470 - 178,434 209,077	- - - -	- $ - 482,040) ( - -	164,993,974 324,690,529 95,970,371 95,000,000 21,000,000	100% 100% 100% 41.3% 14%	3,682,263 $ 2,211,702 772,681 1,000,903 209,077	17.80 $ 7.08 8.05 10.66 9.96	2,936,331 $ 2,298,988 772,681 1,012,582 209,077	None None None None None
		7,623,551 $		735,115 $		482,040) ($			7,876,626 $		7,229,659 $

Note 1: Changes in current year included acquisition of investments accounted for using equity method and share of profit or loss or other comprehensive income in investees accounted for using the equity method.

Note 2: Net assets value was calculated based on the Company’s shareholding ratio in each investee according to their financial statements.

Statement 1, Page 1

FIT HOLDING CO., LTD. STATEMENT OF SHORT-TERM BORROWINGS YEAR ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan dollars)

STATEMENT 2

STATEMENT 2
Nature	Description		EndingBalance	Contract Period	Range of Interest Rate	Credit Line	Collateral	Note
Unsecured borrowings Unsecured borrowings	Bank SinoPac Taishin Bank		507,800 $ 250,000 757,800 $	2020/12/30~2021/1/29 2020/12/25~2021/1/25	1.05% 1.05%	165,000 $ 250,000	None None

Statement 2, Page 1

FIT HOLDING CO., LTD. STATEMENT OF LONG-TERM BORROWINGS YEAR ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan dollars)

STATEMENT 3 Creditor	Description		Amount	Contract Period	Interest Rate	Collateral
Yuanta Bank Jih Sun Bank	Borrowing period is from October 2020 to August 2022; principal is repayable in full amount at the maturity date; interest is repayable monthly. Borrowing period is from October 2020 to June 2022; principal is repayable in full amount at the maturity date; interest is repayable monthly.		300,000 $ 100,000 400,000 $	2020/10/23~2021/8/25 2020/10/8~2022/6/18	1.10% 1.22%	None None

Statement 3, Page 1

FIT HOLDING CO., LTD.

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION

YEAR ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan dollars)

STATEMENT 4

STATEMENT 4
Nature Function	Year ended December 31,2020			Year ended December 31,2019
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs	Classified as Operating Expenses	Total
Employee Benefit Expense
Wages and salaries	$-	$ 16,723	$ 16,723	$-	$ 6,285	$ 6,285
Labour and health insurance fees	-	382	382	-	333	333
Pension costs	-	181	181	-	144	144
Directors'remuneration	-	2,870	2,870	-	-	-
Other personnel expenses	-	222	222	-	198	198

Note:

1. As at December 31, 2020 and 2019, the Company had 22 and 11 employees,including 9 and 5 non-employee directors, respectively.

2. A company whose stock is listed for trading on the stock exchange or over-the-counter securities exchange shall additionally disclose the following information ：

3. (1) Average employee salaries in current year was $1,286 (Total employee salaries in current year/(Number of employees in current year–Number of non-employee directors in current year)).

4. (2) Average employee salaries in previous year was $1,048 (Total employee salaries in previous year/(Number of employees in previous year–Number of non-employee directors in previous year)).

6. (3) Adjustments of average employee salaries was 23% ((Average employee salaries in current year Average employee salaries in previous year) / Average employee salaries in previous year).

7. (4) There was no supervisors’ remuneration in current and previous years. (The Company has no supervisors’ remuneration as it has set up an audit committee)

Statement 4, Page 1

FIT HOLDING CO., LTD.

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION (Cont.)

YEAR ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan dollars)

STATEMENT 4

• (5) The Company’s remuneration policy (including directors, supervisors, managers, and employees) is as follows:

• A. Relevance between the policy, standard and portfolio and established procedures of the remuneration that the Company paid to directors and independent directors and operational performance and future risk;

  • (a) Directors’ remuneration of the Company was paid in accordance with the standards of attendance allowance and travel fee payments approved by the Board of Directors as well as the general pay levels.

  • (b) In accordance with Article 26 of the Company’s Articles of Incorporation: a ratio of distributable profit of the current year’s profit before tax that excludes employees’ compensation and directors’ remuneration, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration, which will be resolved by the Board of Directors. The ratio shall not be lower than 6% for employees’ compensation and shall not be higher than 3% for directors’ remuneration.

• B. Relevance between the policy, standard and portfolio and established procedures of the remuneration that the Company paid to managers and operational performance and future risk;

  • (a) Managers’ remuneration of the Company was determined in accordance with requirements stated in the performance evaluation regulations of the Company, depending on personal performance and contribution to the Company’s overall operation and by reference to the general pay levels of the industry and was conducted after being reviewed by the remuneration committee and reported to the Board of Directors for approval.

  • (b) In accordance with Article 26 of the Company’s Articles of Incorporation: a ratio of distributable profit of the current year’s profit before tax that excludes employees’ compensation and directors’ remuneration, after covering accumulated losses, shall be distributed as employees' compensation and directors’ remuneration, which will be resolved by the Board of Directors. The ratio shall not be lower than 6% for employees’ compensation and shall not be higher than 3% for directors’ remuneration.

Statement 4, Page 2

FIT HOLDING CO., LTD.

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION (Cont.)

YEAR ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan dollars)

STATEMENT 4

• C. Relevance between the policy, standard and portfolio and established procedures of the remuneration that the Company paid to employees and operational performance and future risk;

• (a) Employees’ remuneration included monthly salary (including meal allowances), annual salary adjustment for personal performance, performance bonus, holiday bonus and earnings bonus. Salary payment of the Company’s employees was determined in accordance with the general pay levels of the industry, operation of the Company, employees’ educational background, experience, ability and contribution and was adjusted depending on the market salary dynamics, changes in the overall economic and industrial climate and the government regulations.

• (b) In accordance with Article 26 of the Company’s Articles of Incorporation: a ratio of distributable profit of the current year’s profit before tax that excludes employees’ compensation and directors’ remuneration, after covering accumulated losses, shall be distributed as employees' compensation and directors’ remuneration, which will be resolved by the Board of Directors. The ratio shall not be lower than 6% for employees’ compensation and shall not be higher than 3% for directors’ remuneration.

Statement 4, Page 3