==> picture [127 x 51] intentionally omitted <==

----- Start of picture text -----

Stock Code
2354
----- End of picture text -----

Foxconn Technology Co., Ltd.

2020

Annual Report (Translation)

Websites for Annual Report Publication

Taiwan Stock Exchange Market Observation Post System:

http://mops.twse.com.tw Company Website: http://www.foxconntech.com.tw

Print date: April 30, 2021

THIS IS A TRANSLATION OF THE ANNUAL REPORT FOR THE 2021 ANNUAL SHAREHOLDERS’ MEETING OF FOXCONN TECHNOLOGY CO., LTD. (THE “COMPANY”). THIS TRANSLATION IS INTENDED FOR REFERENCE ONLY AND NOTHING ELSE, THE COMPANY HEREBY DISCLAIMS ANY AND ALL LIABILITIES WHATSOEVER FOR THE TRANSLATION. THE CHINESE TEXT OF THE ANNUAL REPORT SHALL GOVERN ANY AND ALL MATTERS RELATED TO THE INTERPRETATION OF THE SUBJECT MATTER STATED HEREIN.

I. Company’s Spokesperson:

Name: Cheng-Kuang Liu

Title: Senior Manager, Investment & Management Department

Telephone Number: 02-2268-0970

E-mail: [email protected] Deputy: Spokesperson Name: Cheng-Kuang Liu

Title: Senior Manager, Investment & Management Department Telephone Number: 02-2268-0970

E-mail: [email protected]

II. Address of the Company:

Headquarter: No. 66-1, Zhongshan Rd., Tucheng Dist., New Taipei City 236, Taiwan Telephone Number: 02-2268-0970

III. Shareholders’ Services:

Name: Grand Fortune Securities Co., Ltd. Address: 6F., No. 6, Sec. 1, Zhongxiao W. Rd., Zhongzheng Dist., Taipei City 100, Taiwan Website: http://www.gfortune.com.tw/ Telephone Number: (02)2371-1658

IV. Contact Information of the Certified Public Accountants for the latest Financial Report:

Names: CPA Min-Chuan Feng; CPA Han-Chi Wu Company: PricewaterhouseCoopers Taiwan Address: 27F., No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei City 110, Taiwan Website: http://www.pwc.tw/ Telephone Number: (02)2729-6666

V. Overseas Securities Exchange: None

VI. Foxconn Technology Co., Ltd. Website: http://www.foxconntech.com.tw

==> picture [61 x 37] intentionally omitted <==

Content

One.	Letter to Shareholders	1
Two.	Company Overview	7
	I.Establishment date	7
	II.Organization and operations	7
Three.	Corporate Governance	10
	1. Organization of the Company	10
	II. Implementation of Corporate Governance	24
	III. Audit Fees	61
	IV. Change of auditors	62
	V. Any of the Company’s Chairman, General Manager, or managers responsible for financial or
	accounting affairs being employed by the auditor’s firm or any of its affiliates in the most recent
	year:	62
	VI. Share transfers and change in shares pledges by directors, managers and shareholders with at
	least 10% stakes	63
	VII. Relations among top ten shareholders	64
	VIII. Shareholding ratios	65
Four.	Fund Raising	66
	I.Capital and Shares	66
	II. Corporate Bonds	70
		70
	III. Preferred shares (with warrants)
		70
	IV. Global depository receipts (GDRs)
		70
	V. Subscription of warrants for employees
	VI. Names of managers holding warrants for employees and top 10 employees in terms of
	acquisition and subscription of warrants	70
	VII. New and restricted stocks to employees	70
	VIII. Names of Managers holding New Shares for Employee Restricted Stocks and Top 10
	Employee in terms of Subscription of the New Shares, and the Acquisition Status	70
	IX. Issuance of new shares to merge with or acquire other companies	70
	X. Implementation of fund utilization plans	71
Five.	Operating Highlights	72
	I.Business activities	72
	II.Production and market analysis	83
	III. Employees during the most recent two years and as of print date of the annual report	91
	IV. Information on Environmental Protection Costs	92
	V.Labor-management relations	95
	VI.Important contracts	100

Six.	Financial information	101
	I.Most recent 5-Year concise balance sheet and comprehensive income statement	101
	II.Most recent 5-Year financial analysis	105
	III.Audit Committee’s review report on the financial statements of the most recent year	108
	IV. Most recent financial reports	109
	V. Individual financial statements audited by independent auditors for the most recent year	200
	VI. Financial insolvency incidents encountered by the Company and affiliates for the most recent
	years, up till the print date of this annual report: None	282
Seven.	Review of financial position, business performance and risk Issues	282
	I. Financial position analysis	282
	II.Financial performance analysis	283
	III. Cash Flow Analysis	284
	IV.Impacts of major capital expenditures in the most recent year to financial Performance	285
	V. Causes of profit or loss incurred on investments in the most recent year, and any improvements
	or investments planned for the next year	285
	VI.Analysis of risk factors	286
	VII.Other material items	294
Eight.	Supplementary disclosure	295
	I.Information on affiliated companies	295
	II.Private placement of securities in the most recent year up till the printing date of this annual report	310
	III.Holding or disposal of the Company's shares by subsidiaries in the last financial year, up till the
	printing date of this annual report	310
	IV. Other supplementary information	310
Nine.	Matters with significant influence on shareholders’ equity or securities prices:	310

One. Letter to Shareholders

Dear Shareholders:

The year 2020, also ROC 109 of the Minguo calendar and a Geng-Zi year in the Chinese lunar calendar, was a year of constant calamities and international conflicts. It was also a year when despair and hope coexisted.

The turmoils in the year started with the COVID-19 pandemic and the ensuing economic recessions and stock market crashes around the world. To rescue the economy and the stock markets, central banks all over the world have been lowering interest rates and stepping up quantitative easing. The U.S. Fed even resorted to unlimited quantitative easing. Stock markets were pushed up to the level at a magnitude as never before. The pandemic was a massive blow to the economy in Europe and the U.S. where tourism and services are the pillar industries. As the number of infections and deaths continued to rise up, different countries went into lockdowns. Economic activities were stalled. Many people lost their livelihood. Small-andmedium enterprises could not survive. Governments launched fiscal measures to save the economy, at a cost of mounting debts and a looming worry for the future.

The year 2020 also witnessed the U.S. presidential election. Democrats and republicans competed fiercely, adding disruption to the already troubled world. Whilst the election was ongoing, the US-China trade war, the technology war and the shouting match occupied the news headlines, against the backdrop of geopolitical and military confrontation, tension and strife. Whilst the election came to an end, the geopolitical and military standoffs continuously. The negative influence brought by the process will last decades. Although the politics economical and military sentiment around the world was depressing and desperate in 2020, the U.K.’s completion of Brexit, 7% reduction of global carbon emissions due to COVID-19, the closing of the U.S. presidential election and the introduction of vaccines ushered in a gleam of hope.

Whilst COVID-19 has brought the global economy to its knees, the economy in Asia was supported by relative better control of the virus. The economic growth in China and Taiwan was particularly impressive. Despite an economic slowdown, China’s GDP growth remained positive in 2020. This growth is a rare gem given the recessions in most countries. Benefited from robust prevention of the virus, strong exports and domestic demand, returning investments and transferred orders due to the US-China trade war and technology war, Taiwan posted the highest GDP growth among Four Asian Tigers. This was a remarkable economic achievement. However, there is a major concern for Taiwan’s economy. The Regional Comprehensive Economic Partnership (RCEP) was established in 2020 but Taiwan remained excluded. There is a risk of being marginalized if Taiwan continues to have troubles joining regional economic agreements in the long run. This may damage the long-term economic development. Both government agencies and private sectors should work together on this.

COVID-19 ran rampant and devastated the global economy in 2020. With an international clientele, we sell our products all over the world. Understandably, the pandemic has taken its toll on our operation. Although our topline was satisfactory, the profitability declined due to lower unit prices, rising transportation costs, and production disruptions caused by the pandemic. As these negative factors disappear and the pandemic eases off, management expects the business environment to improve and the Company should perform well.

Finally, management would like to express gratitude to our supporting shareholders. Thanks

to all of our employees and shareholders who worked with us through this tough year. Looking into the new year, we will focus on the consolidation of existing businesses and the development of new ventures. We will also strengthen our R&D investment and roadmap and engage in organization reengineering. Management remains confident despites challenges ahead. With the continued efforts from all employees and management, the Company’s ongoing projects in transformation will soon pay off and materialize. Thank you!

I. 2020 Operating Results

(I) The profit before tax was NT$5.436 billion in 2020, down by NT$2.94 billion or 35% from NT$8.376 billion in 2019. Net profit attributable to shareholders of the parent was NT$4.718 billion in 2020, down by NT$2.412billion or 34% from NT$7.13 billion in 2019. The earnings per share was NT$3.34.

(II) Budget implementation:

Given the absence of 2020 budgetary planning, we did not have to attain budgetary goals.

(III) R&D status:

It is evident that 5G, electric vehicles, artificial intelligence, automation and robots will be the booming and forward-looking industries for a long period of time. Whilst these sectors are connected with consumer electronics Taiwanese manufacturers are good at, there are many differences in technology, conceptualization and content. The only way to work on these differences is to enhance R&D. Hence, Foxconn Technology will focus on the following R&D initiatives:

Establishment of the R&D center: A number of R&D offices will be set up within the shortest time possible, to strengthen the core competences in existing technology and build the foundation of new technologies for the Company going forward.
Talent recruitment: The Company previously focused on the employment of PMs and professionals in engineering and manufacturing processes. The emphasis will be switched to R&D talent pipeline by recruiting from selected universities and education backgrounds, in order to gradually enhance the caliber of our workforce.
Strategic alliances with other industries: On top of our own efforts, we will work with companies from other industries for co-development and resources sharing and make inroads to emerging technologies and domains with this collective and complementary approach. Foxconn Technology has established cooperative ties with many organizations to date:
Colleges and universities: establishment of the talent pipeline and development of technologies
Research institutions: Cooperation in precision technology and development and introduction of new technologies
Government projects: The government operates a wide range of R&D and talent development schemes. We will participate in selective projects after

thorough evaluations.

As consumer electronics is a relatively mature industry, it is necessary to expand our footprint for growth momentum. Foxconn Technology will focus on electric vehicles, robots and wearables for its business in metal mechanical parts. The emphasis on heat dissipation projects will be electric vehicles, 5G and servers. Foxconn Technology needs to invest more in the R&D of these emerging technologies and applications. Only with a solid foundation can the Company obtain breakthroughs, acquire advantages and win business opportunities in the future.

II. 2021Business Plan Highlights

(I) Operating guidelines

The present situation points to a difficult competitive environment going forward. It is hence necessary to brace for new challenges and tackle legacy problems at the same time. The emerging challenges and existing problems are as follows:

The US-China technology war, tariff war, trade war and regional conflicts will continue.
The signing of regional trade agreements will have tremendous influence on industries.
Digital tax will be the contention over the next few years.
The Brexit aftermath and effects will continue.
Central banks around the world will maintain loose monetary policies for quite a while.
Governments all over the world will continue to introduce fiscal measures to rescue the economies hammered by COVID-19.
The pandemic has lasted the whole year and will continue to affect the world over next few quarters.
Isolationism in the U.S. may continue.
The era of mounting debts has arrived, for both public and private sectors.
The K-shaped recovery means the rich becomes richer and the poor becomes poorer. This will have a significant on business strategies for all companies.
Anti-trust is set to continue.

The issues mentioned above are the challenges faced by all corporates. As large companies become larger, any failure or lagging behind may lead to severe consequences. All industries may see the dominance of leading players and the crowdedness of small players. The challenge for all management teams is to identify and establish niches in the difficult marketplace with cooperative ties both vertically and horizontally. To maintain our leadership, Foxconn Technology is adopting the following measures:

In adherence with the group’s “3+3” strategy for future development and strategic synergy
In accordance with the group’s strategy to identify new growth drivers for the Company by focusing on electric vehicles, robots and automation
Enhancement of R&D momentum to obtain technology leadership and establish intellectual properties
Optimization of the product mix and the revenue breakdown to boost gross

margin

Organization reengineering to introduce new concepts, new knowledge and new ideas

Foxconn Technology has underperformed in both the topline and the bottom line during past few years. To resume growth momentum for revenues and profits, the Company is working on different fronts:

Existing products: trimming of the product portfolio and increasing shipments of products with higher gross margin
Future products: making inroads to domains such as electric vehicles, automaton, servers and robots for both thermal modules and metal mechanical parts
Manufacturing: re-arrangement of the factor area and re-deployment of production sites to boost production efficiency and accelerate the learning curve
Administration: review of operational procedures and start deep digitalization to boost operating efficiency
(II) Business targets and key strategies in production and marketing:

The market is generally optimistic about the economy in 2021 for the following reasons: 1) a relative low base due to COVID-19 in 2020; 2) introduction vaccines to restart the economy around the world; 3) fiscal stimulus measures by different governments to boost the global economic growth; 4) loose monetary policies by central banks all over the world to bolster the economy. To capitalize on the growth of the global economy, the Company will adopt the following business strategies: 1.Sales strategies:

(1) Sales: consistent with the group’s 3+3 strategy by promoting new businesses in electric vehicles and robots and optimizing the revenue mix with an increase in products with high gross profits. The purpose is to enhance the gross margin, the operating margin and the net margin on the consolidated income statement.
(2) Pricing: competing not with price cuts but by enhancing value added. Pursuit of greater price bargaining power with better precision technology and higher unit prices by leveraging scale production capability. Support of unit prices for low gross margin products and products reaching the end of the life cycle.
(3) Marketing: maintenance of existing quality customers; introduction of strategic and promising customers; and leverage of the group’s resources in order to attract customers in electric vehicles, 5G and robots.
2.Production strategies:
(1) Planning of production sites by taking into account the geographic locations of leading EMS manufacturers in order to reduce transportation costs and enhance service quality. Stepping up the percentage of production in low-cost regions.
(2) Continued increase in automation to improve production cost structure; use of robots to boost production value per worker

(3) Manufacturing process simplification and equipment upgrades to boost production speed; optimization of the manufacturing process to reduce overall production cost
3.R&D strategies:
(1) Establishment of a R&D center: focus to shift from solving engineering problems to fundamental R&D, precision technology development and technological integration. Proactive recruitment of R&D talents and setup of a R&D office to build a solid foundation of knowledge, technology and intellectual properties and accumulate technology momentum for long-term development.
(2) A two-pronged strategy for in-house R&D and collaboration by working with colleges & universities; research institutions; government agencies; and other private enterprises, in order to achieve synergy with collective efforts.
(III) External competitive environment and overall business environment

The industry trends for thermal module products are as follows:

Towards 5G, electric vehicles and clouds
Product development for high performance, miniaturization, and diversity
Manufacturing at larger capacities and with vertical integration
Industry consolidation ongoing with ownership changes

As a leader in the heat dissipation industry, Foxconn Technology is keeping a close eye on the industry trends. We are following the group’s 3+3 by preparing for future development. We strive to stay ahead of the game in forward-looking domains and establish leadership by leveraging the group’s resources.

The major events during the past year in the metal mechanical parts industry indicate the following trends:

Taiwanese companies withdraw from the market by selling facilities to Chinese companies.
The entrance of Chinese players will not have material influence on the competitive dynamics over the next year or two. However, any destructive competition will hinder the industry’s long-term development.
Aluminum and stainless steel are still in use for smartphones.
The industry is moving towards domains such as electric vehicles and robots. The most significant events in the metal mechanical parts industry during the past year are the change of the industry structure with our competitors’ selling facilities and ownership change. Despite these changes in competitive dynamics, we believe that it is difficult for divided competitors to compete with Foxconn

Technology, a company in unity. We expect to maintain our competitive advantage.

The past year was depressing. Negative events such as the pandemic, tariff

wars, trade wars, technology wars, Brexit, the U.S. election controversy, the Middle East political turmoil were all dispiriting. Meanwhile, economic recessions put many out of jobs and small shops out of business. In general, life was not easy. Fortunately, the U.S. election came to an end and the U.K. reached the Brexit agreement. The introduction of COVID-19 vaccines brought hope to everybody. The restart of the economy creates an optimistic sentiment for the year ahead. At the onset of the springtime and the economic recovery, the Company decided to start its R&D engine and organization reengineering. It is hoped that the investment today lays down the foundation for growth tomorrow.

Management is grateful of the long-standing support from shareholders and we understand that this comes with great responsibility for us. Business cycles go up and down. Product lifecycles run their courses. The international situation is a mixed bag. There is the good, the bad, and the ugly in the business environment. What remains constant is management’s dedication to turning the corner and achieving good operating results. Management keeps shareholders’ expectations close to heart. We will continue to work hard and exercise the due care as a good administrator. It is our goal to create good operating performance and growth momentum in return to the great expectation from shareholders. We would like to say thanks to all of our shareholders. Thanks to all!

Chairman: Lee Kuang-Yao

Two. Company Overview

I. Establishment date: April 26, 1990 Listing date: October 8, 1996

II. Organization and operations

1990 1. Q-RUN Technology Co., Ltd. was established with paid-in capital of NT$25 million.
Paid-in capital was increased from NT$25 million to NT$40 million.
1991 The Company successfully developed the first 20” ultra-high resolution, multi-frequency, dual focus, auto scan non-interlaced color display (SRC-1901) in Taiwan.
1992 Paid-in capital was increased from NT$40 million to NT$100million. Burrard Investment Pte Ltd. Singapore and Chung-Tien Lin came as shareholders of the Company.
1993 A contract was signed with NCD Co., Ltd, and the Company was entrusted to develop a 15" high-resolution black-and-white terminal (SRT-1501), and successfully completed the technology transfer.
1994 1. The Company purchased the plant of 3823 ping, at No. 3 Zhongshan Road, Tucheng City, Taipei County, and established the Tucheng Factory to meet the needs of the company's rapid growth.
Securities and Exchange Commission, Ministry of Finance approved the public offering of the Company's shares.
1995 1. The Company developed and manufactured the first multimedia computer, MONIPUTER (PM1550), with a rotating base and a fax machine, data machine, answering machine, image decompression (MPEG) card, sound card and TV function, which adopted INTEL Pentium 586 CPU. This added greatly to the niche for the emerging multimedia market.
Paid-in Capital was increased to NT$436 million.
SRC-1502 was selected the best 15” models by the one of the top three German magazines, WIN.
1996 1. The Company arranged capital increase from surplus and capital
- reserve and increased the paid-in capital to NT$596.72 million.
Securities and Exchange Commission approved the listing of shares for sale.

1997 Paid-in capital was increased to NT$877.75 million.

1998 1. The Company obtained TÜV Rheinland certification ISO 14001, environmental management system.
The Company conducted a cash capital increase, and the paid-in capital was increased to NT$1.457 billion.
1999 1. R&D department was established to dedicate to system development of desktop computers and video products.
The Company signed a purchase contract with Compaq Computer Corporation, and the Company sold the finished products of desktop computer to Compaq.
2000 The Company’s R&D developed Analog Board, Down Converter Board and Video Board and conducted PCB assembly of iMAC.
2001 The Company conducted a cash capital increase, and the paid-in capital was increased to NT$2.125billion.
2002 The Company arranged capital increase from surplus and increased the paid-in capital to NT$2,240,499,180.
2003 The Company arranged capital increase from surplus and increased the paid-in capital to NT$2.484 billion.
2004 1. On March 1, 2004, Foxconn Technology was merged into the Company, and the Surviving company was renamed to “Foxconn Technology Corporation Limited”. The paid-in capital was increased to NT$4.56876 billion.
The Company arranged capital increase from surplus and increased the paid-in capital to NT$5.65 billion.
2005 The Company arranged capital increase from surplus and increased the paid-in capital to NT$5.65 billion.
2006 The Company arranged capital increase from surplus and increased the paid-in capital to NT$6,537,872,500.
2007 1. 2006 The Company arranged capital increase from surplus and increased the paid-in capital to NT$7,589,553,370.
Unsecured domestic convertible corporate bonds were issued, totaling to NT$12 billion.
2008 The Company arranged capital increase from surplus and increased the paid-in capital to NT$8,479,008,700.
2009 The Company arranged capital increase from surplus and increased the paid-in capital to NT$9,720,488,740.

2010 The Company arranged capital increase from surplus and increased the paid-in capital to NT$11,129,901,720.

2011 The Company arranged capital increase from surplus and increased the paid-in capital to NT$11,727,199,810.
2012 The Company arranged capital increase from surplus and increased the paid-in capital to NT$12,370,159,720.
2013 The Company arranged capital increase from surplus and increased the paid-in capital to NT$13,064,902,250.
2014 The Company arranged capital increase from surplus and increased the paid-in capital to NT$13,767,258,270.
2015 The Company arranged capital increase from surplus and increased the paid-in capital to NT$13,950,239,520.
2016 1. The Company arranged capital increase from surplus and increased the paid-in capital to NT$14,144,851,920.
The Company invested JPY56.88320 billion in Sharp Corporation through its subsidiary company, Foxconn Technology Pte., Ltd.
2017 FuZhun Precision Industry (Shenyang) Co., Ltd. was established and Shenyang Plant was built.
2018 The subsidiary company, FUZHUN PRECISION INDUSTRY (SHEN ZHEN) CO.,LTD. and FUYU PRECISION COMPONENTS (KUNSHAN) CO., LTD acquired Champ Tech Optical (Foshan) Corporation.
2019 Appointment of Tzu-Hung Li as head of corporate governance.

Three. Corporate Governance

I. Organization of the Company

(I) Organization chart

==> picture [230 x 328] intentionally omitted <==

----- Start of picture text -----

Shareholders’
Meeting
Audit
Committee
Board of Directors
Compensation
Committee
Internal Audit
Division
Chairman
President
----- End of picture text -----

==> picture [461 x 107] intentionally omitted <==

----- Start of picture text -----

Electronic
Business Division Trading Product Component Division Part and R&D Center Finance and Accounting Administration Department information Department System
Service Department
Division
----- End of picture text -----

(II) Department Function Description:

President: President is responsible for working out business objectives, taking charge of the implementation of overall businesses, guiding and supervising the departments to deal with their respective businesses. Internal Audit Division: Audit internal regulations and rules and put forward proposals for improvement. Business Division: Implement the company's established product sales strategies and action plans. Responsible for the achievement of sales budget performance. Responsible for the development of the market, establish a marketing network to deliver products to customers at the right price, right time and right place, establish after-sales service centers to provide customers with complete after-sales service and to be the connection between customers and factories for technical problems, introduce new technologies or demand on the market into the company and mediate between the customers and the factory on issues regarding products. Electronic Product Trading Service Division: Responsible for providing 3C electronics and information products sales services. Part and Component Division: Responsible for the manufacture of parts and components of information products. R&D Center: In order to cater to consumers' expectations of information products and meet customer needs, the company's R&D center integrates the basic technology of experts

in the academic community and the existing technologies of the industry to develop the best quality functions and the most cost-effective products and services. Finance and Accounting Department: Responsible for accounting and billing, cost analysis, budgeting & control, capital planning and allocation, tax filing and taxation issues Administration Department: Responsible for shareholders’ services, human resources, employees’ attendance, general affairs, factory affairs and other affairs System information Department: Responsible for the company's information policy formulation, information system planning and maintenance, network communication planning, construction and maintenance.

(III) Directors’ name, main education background and work experience, date of election (assumption of duty), tenure, shares held, and shares held by spouse & minors:

																	April 25,2021	April 25,2021	April 25,2021
Title	Nationality or Place of Registration	Name	Gender	Date of Election (Assumption of Duty)	Tenure	First Elected Date	Shares El	Held when ected	Current S	hares Held	Shares Held by Spouse & Minors		Shares Nam	Held in the e of Others	Main Education Background and Work Experience	Concurrent Positions in the Company and Other Companies	Spouse or Immediate Family Holding Managerial Position
							Number	Percentage of Shareholding (%)	Number	Percentage of Shareholding (%)	Number	Percentage of Shareholding (%)	Number	Percentage of Shareholding (%)			Title	Name	Relationship
Chairman	R.O.C.	Hyield Venture Capital Co., Ltd.	-	20190621	3	20040610	85,003,766	6.00	85,003,766	6.00	0	0.00	0	0.00	None	None	None	None	None
	R.O.C.	Representative: Lee Kuang- Yao	Male	20200624	3	20200620	0	0.00	0	0.00	0	0.00	0	0.00	MBA, Soochow University Chief R&D Officer, Chenming Electronics Technology Corporation Senior Director, Hon Hai Precision Industry Co., Ltd.	Director and representative of Foxtron Vehicle Technologies Co., Ltd. Director of FARobot, Inc. Director of DUDOO Director of Finetech Co., Ltd. Director of Foxconn New Energy Vehicle Director of Foxconn Technology Pte. Ltd.	None	None	None
Director	R.O.C.	Hyield Venture Capital Co., Ltd.	-	20190621	3	20040610	85,003,766	6.00	85,003,766	6.00	0	0.00	0	0.00	None	None	None	None	None
	R.O.C.	Representative: Hung Chih- Chien	Male	20190621	3	20100608	0	0.00	12,562	0.00	0	0.00	0	0.00	Master's Degree in Mechanical Engineering, National Central University Vice Executive General Manager of Hon Hai Precision Industry Co., Ltd.	Director of Fine Tech Corporation Director of FUSING International Inc. Pte., Ltd. Chairman of FuJin Precision Industry (Jincheng) Co., Ltd. Chairman of FuTaiHua Precision Electronics (Chengdu) Co., Ltd. Director of HongZhun Precision Tooling (Shenzhen) Co., Ltd. Chairman of HongFuJin Precision Industrial (Taiyuan) Co., Ltd.	None	None	None
Director	R.O.C.	Caixin International Investment Ltd.	-	20190621	3	20100608	45,230	0.00	45,230	0.00	0	0.00	0	0.00	None	None	None	None	None
	R.O.C.	Representative: Lee Han-Ming	Male	20190621	3	20190621	0	0.00	369,875	0.03	895	0.00	0	0.00	Department of Industrial Design National Cheng Kung University	Director of Foreign Technology Ltd. Director of HighTempo International Ltd. Director of Q-Run Far East Corporation Director of Q-Run Holdings Limited Director of Topfry Industrial Ltd. Director of World Trade Trading Limited Director of Atkinson Holdings Ltd. Director of Kenny International Ltd. Director of Double Wealth Profits Ltd. Director of Precious Star International Ltd. Director of Foxconn Precision Components Holding Co., Ltd. Director of Gold Glory International Ltd. Director of Eastern Star Limited Director of Foxconn TechnologyPte. Ltd.	None	None	None

																	April 25, 2021	April 25, 2021	April 25, 2021
Title	Nationality or Place of Registration	Name	Gender	Date of Election (Assumption of Duty)	Tenure	First Elected Date	Shares Held when Elected		Current Shares Held		Shares Held by Spouse & Minors		Shares Held in the Name of Others		Main Education Background and Work Experience	Concurrent Positions in the Company and Other Companies	Spouse or Immediate Family Holding Managerial Position
							Number	Percentage of Shareholding (%)	Number	Percentage of Shareholding (%)	Number	Percentage of Shareholding (%)	Number	Percentage of Shareholding (%)			Title	Name	Relationship
Director	R.O.C.	Caixin International Investment Ltd.	-	20190621	3	20100608	45,230	0.00	45,230	0.00	0	0.00	0	0.00	None	None	None	None	None
	R.O.C.	Representative: Lee Xue-Kun	Male	20190621	3	20100608	0	0.00	96,867	0.01	0	0.00	0	0.00	Taipei Institute of Technology Associate Manager of Foxconn Technology Co., Ltd.	Director of HongFuJin Precision Industrial (Taiyuan) Co., Ltd. Director of FuZhun Precision Industry (Shenzhen) Co., Ltd. Director of Nanning Funing Precision Electronics Ltd.	None	None	None
Independent Director	R.O.C.	Lin Song-Shu	Male	20190621	3	20160622	0	0.00	0	0.00	0	0.00	0	0.00	Master's Degree in Accounting, National Taiwan University Assistant Manager KPMG Partnership Accountant and Chairman of DinKum Member of Taipei CPA Association Tax Regulation and Tax Affairs Committee Adjunct Lecturer of NTUSPECS, Lecturer of Taiwan SMECF	Director of Board, Chief of Tax, Partnership Accountant of Crowe Horwath Audit Committee Member of FOXCONN TECHNOLOGY Industry Co., Ltd. Compensation Committee Member of FOXCONN TECHNOLOGY Industry Co., Ltd. Independent Director of Genie Networks Ltd.	None	None	None
Independent Director	R.O.C.	Chen Yao- Ching	Male	20190621	3	20130626	0	0.00	0	0.00	0	0.00	0	0.00	Bachelor's Degree in Cooperative Economics and Social Entrepreneurship, Feng Chia University Chief Comptroller and Vice General Procurement Manager of Ford Lio Ho Motor Co., Ltd. Chairman of YouQuan TradingCo.,Ltd.	Audit Committee Member of FOXCONN TECHNOLOGY Industry Co., Ltd. Compensation Committee Member of FOXCONN TECHNOLOGY Industry Co., Ltd.	None	None	None
Independent Director	R.O.C.	Yu Hsiang- Tun	Male	20190621	3	20160622	7,177	0.00	0	0.00	0	0.00	0	0.00	Keio University Faculty of Business and Commerce, Japan Deputy General Manager, International Affairs Department Daiwa Asset Management Co., Ltd.	Audit Committee Member of FOXCONN TECHNOLOGY Industry Co., Ltd. Compensation Committee Member of FOXCONN TECHNOLOGY Industry Co., Ltd. Director of General Interface Solution (GIS) Holding Ltd. Independent Director of Advanced Optoelectronic Technology Inc.	None	None	None

Note 1: The election date for directors (including independent directors) was June 21, 2019, the date of assuming office on June 26, 2019. The term period is three years. Note 2:The director and representative from Hyield Venture Capital Co., Ltd., Cheng Fang-Yi, resigned on June 20, 2020 and Lee Kuang-Yao was subsequently appointed as the representative.

(IV) Major shareholders of institutional shareholders

		April 25,2021
Name of Institutional Shareholder	Name of Major Shareholders	Percentage of
Hyield Venture Capital Co., Ltd.	Hon Hai Precision IndustryCo., Ltd.	97.95%
	BaoXin International Investment Co., Ltd.	2.05%
Caixin International Investment Ltd.	Yonglin Foundation	56.67%
	XianJin International Investment Co., Ltd.	32.13%
	HsiungChih Investment Co., Ltd.	8.5%
	I-Cheng Investment Co., Ltd.	2.7%

(V) Principal shareholder of corporate shareholders with a juridical person as its major shareholder

major shareholder
		April 25,2021
Name of Institutional Shareholder	Principal shareholders of institutional shareholders (Note)	Percentage of Shareholding
Hon Hai Precision Industry Co., Ltd.	TerryGou	9.68%
	CTBC as custodian of TerryGou Trust TreasuryAccount	2.89%
	Citibank as custodian of Government of Singapore Investment Account	1.90%
	Citibank as custodian of Hon Hai Precision Industry Co., Ltd. Depositary Receipts Account	1.40%
	Citibank as custodian of Norwegian Central Bank Investment Account	1.21%
	Labor Pension Fund(the New Fund)	1.18%
	JPMorgan Chase as custodian of Vanguard Emerging Market Stock Index Fund	1.18%
	JPMorgan Chase Bank as custodian of Vanguard Star Vanguard Total International Stock Index	1.08%
	Standard Chartered Bank as custodian of the Fidelity Puritan Trust: Fidelity Low-Priced Stocks Fund	1.03%
	Fubon Life Insurance Co., Ltd.	0.92%
BaoXin International Investment Co., Ltd.	Hon Hai Precision Industry Co., Ltd.	100%
Yonglin Foundation	Shu-Ju Lin	100%
XianJin International Investment Co., Ltd.	ShunXin International Investment Co., Ltd.	50%
	Allgreat Overseas Limited	50%
HsiungChih Investment Co., Ltd.	Dennett Enterprises Limited	100%
I-ChengInvestment Co., Ltd.	CompanyObjective Developments Limited	100%

Note: If juristic person shareholders are not part of the organization of the Company, the shareholders' names and percentages of shareholding

must be disclosed beforehand, that is, the name of the funder or donor and its contribution or donation ratio.

(VI) Professional knowledge and independence check matrix of directors

Criteria Name	Has over five years work experience and meets the following professional qualifications	Has over five years work experience and meets the following professional qualifications	Has over five years work experience and meets the following professional qualifications	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Number of Other Public Companies in Which the Individual is Concurrently Serving as an Independent Director
	An Instructor or Higher Position in a Department of Commerce, Law, Finance, Accounting, or Other Academic Department Related to the Business Needs of the Company in a Public or Private Junior College, College or University	A Judge, Public Prosecutor, Attorney, Certified Public Accountant, or Other Professional or Technical Specialist Who has Passed a National Examination and been Awarded a Certificate in a Profession Necessary for the Business of the Company	Work Experience in the Areas of Commerce, Law, Finance, or Accounting, or Otherwise Necessary for the Business of the Company	1	2	3	4	5	6	7	8	9	10	11	12
Lee Kuang- Yao			✓			✓	✓		✓	✓	✓	✓	✓	✓		0
Hung Chih- Chien			✓	✓		✓	✓		✓		✓	✓	✓	✓		0
Lee Han- Ming			✓			✓	✓	✓	✓		✓	✓	✓	✓		0
Lee Xue- Kun			✓			✓	✓	✓	✓		✓	✓	✓	✓		0
Lin Song- Shu		✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	1
Chen Yao- Ching			✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	0
Yu Hsiang- Tun			✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	1

Note: Please tick the corresponding boxes if directors or supervisors have been any of the following during the two years prior to being elected or during the term of office.

(1) Not an employee of the Company or any of its affiliates.
(2) Not a director or supervisor of the company or any of its affiliates. The same does not apply, however, in cases where the person is an independent director of the company, its parent company, any subsidiary, or subsidiary of the same parent company as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary.
(3) Not a natural-person shareholder who holds shares, together with those held by the person’s spouse, minor children, or held by the person under others’ names, in an aggregate amount of one percent or more of the total number of issued shares of the company or ranks as one of its top ten shareholders.
(4) Not a managerial officer mentioned in paragraph (1), or a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship mentioned in paragraphs (2) and (3).
(5) Not a director, supervisor, or employee of an institutional shareholder that directly holds five percent or more of the total number of issued shares of the Company, or ranks as its top five shareholders, or has designated representative in accordance of Article 27 Section 1 or 2 of the Company Act in the Company as director/supervisor. The same does not apply, however, in cases where the person is an independent director of the company, its parent company, any subsidiary, or subsidiary of the same parent company as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary.
(6) Not a director, supervisor, or employee of other company with the Board seats or more than half of the voting shares under control of one person. The same does not apply, however, in cases where the person is an independent director of the company, its parent company, any subsidiary, or subsidiary of the same parent company as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary.
(7) Not a director, supervisor, or employee of other company whose chairman or general manager are the same person or spouse of the Company. The same does not apply, however, in cases where the person is an independent director of the company, its parent company, any subsidiary, or subsidiary of the same parent company as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary.
(8) Not a director, supervisor, managerial officer, or shareholder holding five percent or more of the shares of a specified company or institution that has a financial or business relationship with the company. The same does not apply, however, if specified company or institution possessing shareholdings of more than 20% and less than 50% of the total number of issued shares of the Company, and in cases where the person is an independent director of the company, its parent company, any subsidiary, or subsidiary of the same parent company as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary.

(9) Not a professional individual who, or an owner, partner, director, supervisor, or managerial officer of a sole proprietorship, partnership, company, or institution that provides auditing services or for the past two years, has provided commercial, legal, financial, accounting services or consultation amounted to less than a cumulative NTD500,000 to the Company or to any affiliate of the company, or a spouse thereof. However, this does not apply to members of Compensation Committee, Public Tender Offer Review Committee or Special Merger and Acquisition Committee carrying out their duties in accordance with Securities and Exchange Act or Business Mergers and Acquisitions Act.
(10) Not a spouse or a relative within two degrees of consanguinity to any director.
(11) Does not meet any of the criteria described in Article 30 of the Company Act.
(12) Not the proxy of any government agency, juridical person, or their representative that is a shareholder in the Company as outlined in Article 27 of the Company Act.

April 2021

(VII) Key Managers

													April 2021	April 2021	April 2021
Title	Nationality	Name	Date of Election (Assumption of Duty)	Gender	Shareholding		Shares Held by Spouse & Minors		Shares Nam	Held in the e of Others	Main Education Background and Work Experience	Concurrent Positions in Other Companies	Spouse or Immediate Family Holding Managerial Position
					Number	Percentage of Shareholding (%)	Number	Percentage of Shareholding (%)	Number	Percentage of Shareholding (%)			Title	Name	Relationship
President	R.O.C.	Lee Han- Ming	20090201	Male	369,875	0.03	895	0.00	0	0.00	Department of Industrial Design National Cheng Kung University	Director of Foreign Technology Ltd. Director of HighTempo International Ltd. Director of Q-Run Far East Corporation Director of Q-Run Holdings Limited Director of Topfry Industrial Ltd. Director of World Trade Trading Limited Director of Atkinson Holdings Ltd. Director of Kenny International Ltd. Director of Double Wealth Profits Ltd. Director of Precious Star International Ltd. Director of Foxconn Precision Components Holding Co., Ltd. Director of Gold Glory International Ltd. Director of Eastern Star Limited Director of Foxconn TechnologyPte. Ltd.	None	None	None
Accounting Director	R.O.C.	Lan Yuan- Wen	20180401	Female	0	0.00	0	0.00	0	0.00	University of Leeds, Communications Studies Department of Accounting, Providence University Manager of Ernst & Young Senior Manager of Accounting Department, Hon Hai Precision Industry Co.,Ltd.	Corporate Auditor of Foxconn Japan Co., Ltd Director of New Glory Holdings Limited Representative of Chairman from Hua-Zhun Investment Co., Ltd.	None	None	None
Financial Director	R.O.C.	Tzu-Hung Li	20150401	Male	80	0.00	0	0.00	0	0.00	MBA, University of Alabama, U.S.A. Chief of Finance Division, Hon Hai Precision Industry Co., Ltd. Senior Manager of Financial Director, Integrated Silicon Solution Inc. Financial Manager of ShiShin Electronic Co.,Ltd.	Director of FuJin Precision Industry (Shenzhen) Co., Ltd. Director of FuTaiKang Precision Components (Shenzhen) Co., Ltd. Supervisor of FuNeng New Energy Technology Services Co., Ltd. Supervisor of Qingdao Hygen Innovative Alloy Materials Co., Ltd	None	None	None

(VIII) Remuneration paid to Directors, General Manager and Vice General Manager(s) in the most recent fiscal year 1. Compensation to Director or Independent Director

Unit: NTD thousand

Title	Name	Remunerations of Directors	Remunerations of Directors	Remunerations of Directors	Remunerations of Directors	Remunerations of Directors	Remunerations of Directors	Remunerations of Directors	Remunerations of Directors	Sum of A, B, C and D as a percentage of net income	Sum of A, B, C and D as a percentage of net income	Compensation t	Compensation t	Compensation t	Compensation t	o Directors AlsoServingasCompanyEmployees	o Directors AlsoServingasCompanyEmployees	o Directors AlsoServingasCompanyEmployees	o Directors AlsoServingasCompanyEmployees	o Directors AlsoServingasCompanyEmployees	o Directors AlsoServingasCompanyEmployees	o Directors AlsoServingasCompanyEmployees	o Directors AlsoServingasCompanyEmployees	Sum of A, B, C, D, E, F and G as a percentage of net income	Sum of A, B, C, D, E, F and G as a percentage of net income	Compensation from Affiliates Other than Subsidiaries or Parent Company
		Remunerations (A)		Pensions (B)		Director Earnings Distribution (C)		Business Expenses (D)				Salary, Bonuses, and Special Allowance (E)		Pensions (F)		Employee Earnings Distribution (G) (Note)				Number of subscribable employee stock options (H)		Number of acquired new restricted employee stock
		Foxconn Technology	All consolidated companies	Foxconn Technology	All consolidated companies	Foxconn Technology	All consolidated companies	Foxconn Technology	All consolidated companies	Foxconn Technology	All consolidated companies	Foxconn Technology	All consolidated companies	Foxconn Technology	All consolidated companies	Foxconn Technology		All consolidated companies		Foxconn Technology	All consolidated companies	Foxconn Technology	All consolidated companies	Foxconn Technology	All consolidated companies
																Cash	Stock	Cash	Stock
Director	Hyield Venture Capital Co., Ltd.	-	-	-	-	-	-	-	-	-	-	5,389	5,389	268	268	17,682	-	17,682	-	None	None	None	None	0.4946%	0.4946%	-
	Lee Kuang- Yao
Director	Hyield Venture Capital Co., Ltd.
	Representative: Hung Chih- Chien
Director	Hyield Venture Capital Co., Ltd.
	Representative: Cheng Fang-Yi (Stepped down)
Director	Caixin International Investment Ltd.
	Representative: LeeHan-Ming
Director	Caixin International Investment Ltd.
	Representative: LeeXue-Kun
Independent Director	Lin Song-Shu	1,800	1,800	-	-	-	-	-	-	0.0381%	0.0381%	-	-	-	-	-	-	-	-	None	None	None	None	0.0381%	0.0381%	385
Independent Director	Chen Yao- Ching
Independent Director	Yu Hsiang-Tun
1. The policy I. The polic II. The resp 2. Compensa	, system, standar y, system, standa (1) The remunera (2) Transportatio onsibilities, risks (1) The Company (2) The remunera (3) Independent d (4) The Company tion to Directors	d and structure of compensation to Independent Director, and description of the correlation between the responsibilities, risks, time invested et cetera, and c rd and structure of disbursement tion and attendance fee of Independent Director is determined according to “Rules Governing the Remuneration of Directors and Procedures for Remunerat n allowances for independent directors: transportation expenses entitled by directors for traveling to the Company for meetings and time of involvement undertaken define the amount of compensation appropriated. 's Articles of Incorporation do not specify directors' remuneration. tion of independent directors is in the form of a fixed monthly remuneration. irectors are members of the Audit Committee and the Compensation Committee, and participate in the discussions and resolutions of relevant committee m assesses “Rules Governing the Remuneration of Directors and Procedures for Remuneration Disbursement” yearly to achieve a proper balance between su of the most recent year for services provided for the companies in the financial statements (e.g. non-employee consultant position) except listed above: Non										ompensation received: ion Disbursement”. eetings. Transportation allowances are based on the actual number of me stainable development and risk control. e				etings attended, and no remuneration is paid or other remuneration is received.

Note 1: The Board of Directors approved the distribution of employees’ remuneration for a total of NT$ 223,876,000 for 2020, estimated according to the actual distributed amount of the prior year.

Note 2: The director and representative from Hyield Venture Capital Co., Ltd., Cheng Fang-Yi, resigned on June 20, 2020 and Lee Kuang-Yao was subsequently appointed as the representative.

Remuneration bracket table

Range of Remuneration Paid to Directors		Name of	Directors	Directors
	Sum of the first 4 i	tems (A+B+C+D)	Sum of the first 7 items (A+B+C+D+E+F+G)
	Foxconn Technology	All consolidated companies H	Foxconn Technology	Parent company and all the investees
Less than NT$1,000,000	Hyield Venture Capital Co., Ltd., Hung Chih-Chien and Cheng Fang-Yi Caixin International Investment Ltd. Lee Han-Ming, Lee Xue-Kun, Dai Feng- Yuan Lin Song-Shu, Chen Yao-Ching, Yu Hsiang- Tun	Hyield Venture Capital Co., Ltd., Hung Chih-Chien and Cheng Fang-Yi Caixin International Investment Ltd. Lee Han-Ming, Lee Xue-Kun, Dai Feng- Yuan Lin Song-Shu, Chen Yao-Ching, Yu Hsiang- Tun	Hyield Venture Capital Co., Ltd., Hung Chih-Chien and Cheng Fang-Yi Caixin International Investment Ltd. Dai Feng-Yuan, Lin Song-Shu, Chen Yao- Ching and Yu Hsiang-Tun	Hyield Venture Capital Co., Ltd., Hung Chih-Chien and Cheng Fang-Yi Caixin International Investment Ltd. Dai Feng-Yuan, Lin Song-Shu, Chen Yao- Ching
NT$1,000,000 (incl.) ~ NT$2,000,000 (excl.)	-	-	-
NT$2,000,000 (incl.) ~ NT$3,500,000 (excl.)	-	-	-	-
NT$3,500,000 (incl.) ~ NT$5,000,000 (excl.)	-	-	-	-
NT$5,000,000 (incl.) ~ NT$10,000,000 (excl.)	-	-
NT$10,000,000 (incl.) ~ NT$15,000,000 (excl.)	-	-	Lee Han-Ming, Lee Xue-Kun	Lee Han-Ming, Lee Xue-Kun
NT$15,000,000 (incl.) ~ NT$30,000,000 (excl.)	-	-
NT$30,000,000 (incl.) ~ NT$50,000,000 (excl.)	-	-	-	-
NT$50,000,000 (incl.) ~ NT$100,000,000 (excl.)	-	-	-	-
NT$100,000,000 and above	-	-	-	-
Total	10	10	10	10

2. Remuneration paid to General Manager and Vice General Manager(s)

Unit: NTD thousand

								Unit:	Unit:	Unit:	Unit:	NTD thousand	NTD thousand

Title	Name	Salary (A)		Pensions (B)		Bonuses and Special Allowance (C)		Employee Earnings		Distribution (D) (Note)		Sum of A, B, C and D as a percentage of net income (%)		Compensation from Affiliates Other than Subsidiaries or Parent Company
		Foxconn Technology	All consolidated companies	Foxconn Technology	All consolidated companies	Foxconn Technology	All consolidated companies	Foxconn Technology		All consolidated companies		Foxconn Technology	All consolidated companies
								Cash	Stock	Cash	Stock
President	Lee Han- Ming	1,736	1,736	141	141	1,311	1,311	7,622	-	7,622	-	0.2291%	0.2291%	None

Note: The Board of Directors approved the distribution of employees’ remuneration for a total of NT$ 325,135,000 for 2019, estimated according to the actual distributed amount of the prior year.

Remuneration bracket table

	Remuneration bracket table	Remuneration bracket table
Range of Remuneration Paid to General Managers and Vice General Manager(s)	Name(s) of General Manager and Vice General Manager(s)
	Foxconn Technology	All consolidated companies E
Less than NT$1,000,000	-	-
NT$1,000,000 (incl.) ~ NT$2,000,000 (excl.)	-	-
NT$2,000,000 (incl.) ~ NT$3,500,000 (excl.)	-	-
NT$3,500,000 (incl.) ~ NT$5,000,000 (excl.)	-	-
NT$5,000,000 (incl.) ~ NT$10,000,000 (excl.)	Lee Han-Ming	Lee Han-Ming
NT$10,000,000 (incl.) ~ NT$15,000,000 (excl.)
NT$15,000,000 (incl.) ~ NT$30,000,000 (excl.)	-	-
NT$30,000,000 (incl.) ~ NT$50,000,000 (excl.)	-	-
NT$50,000,000 (incl.) ~ NT$100,000,000 (excl.)	-	-
NT$100,000,000 and above	-	-
Total	1	1

3. Employees’ profit sharing bonus paid to managerial officers:

			Unit: NTDthousand	Unit: NTDthousand	Unit: NTDthousand	Unit: NTDthousand
	Title	Name	Stock	Cash (Note)	Total	Total as a percentage of after-tax income
Managerial Officers	President	Lee Han-Ming	0	13,291	13,291	0.2817
	Financial Director	Tzu-Hung Li
	Accounting Director	Lan Yuan-Wen

Note: As of the print date of the annual report, the list of employees to be distributed with remuneration is not yet decided. The proposed amount is the estimate based on the actual distributed amount for 2019.

Analysis of the proportion of the total remuneration of directors, supervisors, general managers and vice general managers of the Company paid by the Company and all companies in the consolidated financial statement to net profit after tax in individual financial statements of the recent two years

financial statements of	the recent two years	the recent two years	the recent two years	the recent two years
Item Title	Total compensation as a percentage of after-tax income
	2020 (Note)		2019
	Foxconn Technology	All consolidated companies	Foxconn Technology	All consolidated companies
Director	0.5328%	0.5328%	0.4365%	0.4365%
General Manager and Vice General Manager(s)	0.3907%	0.3907%	0.0966%	0.0966%

Note: As of the print date of the annual report, the list of employees to be distributed with remuneration is not yet

decided. The proposed amount is the estimate based on the actual distributed amount for 2019.

The policies for payment of remuneration and its linkage to business performance and future risk exposure
(1) The Company's Articles of Incorporation do not specify directors' remuneration. None of the directors receives compensation.
(2) The remuneration and transportation allowances of directors (including independent directors) is determined according to “Rules Governing the Remuneration of Directors and Procedures for Remuneration Disbursement” as approved by the Board of Directors.
(3) Directors (including independent directors) receive fixed remuneration and transportation allowances. The Company does not offer variable remuneration.
(4) For directors or their representatives who are employees, or employees who are with affiliated companies or enterprises having investment relationships with the Company, no remuneration or transportation allowances shall be paid.
(5) The salaries of managerial officers include fixed salary, performance bonus, and remuneration to employees. Among these, salary references the level of the same industry and titles, rank, academic (economic) qualifications, professional capabilities and responsibilities. Bonuses are distributed according to the contribution of each business group to the Company's profit. Remuneration to employees is determined based on the performances of individual managers.
(6) According to Article 18 of the Company's Articles of Incorporation, 4%~6% of the annual profit (if

any) should be distributed as employees’ remuneration. The periodical review of managers’ salaries and remuneration shall be based on the Company’s Regulations Governing All Compensations to Managers. The distribution is allocated to business units according to contribution to the Company’s profits measured with internal performance criteria and profit and loss management reports. Furthermore, the remuneration system for managerial officers may be reviewed at any time and in a timely manner depending on actual operating conditions and relevant laws and regulations.

II. Implementation of Corporate Governance

(I) Operations of the Board of Directors:

During the most recent year (2020), the Board of Directors convened five meetings. The attendance record of individual directors is as follows:

Title	Name	Meetings Attended Personally	Meetings Attended by Proxy	% of Meeting Attended Personally	Remarks (Note)
Chairman	Hyield Venture Capital Co., Ltd. Representative: Lee Kuang-Yao	3	0	100%	Newly appointed.
Director	Hyield Venture Capital Co., Ltd. Representative: Hung Chih-Chien	4	0	80%
Director	Caixin International Investment Ltd. Representative: Lee Han-Ming	0	0	0%
Director	Caixin International Investment Ltd. Representative: Lee Xue-Kun	4	0	80%
Independent Director	Lin Song-Shu	5	0	100%
Independent Director	Chen Yao-Ching	5	0	100%
Independent Director	Yu Hsiang-Tun	5	0	100%
Director	Hyield Venture Capital Co., Ltd. Representative: Cheng Fang-Yi	1	1	50%	Stepped down.
Note:The director and representative from Hyield Venture Capital Co., Ltd., Cheng Fang-Yi, resigned on June 20, 2020 and Lee Kuang-Yao was subsequently appointed as the representative. Other issues to be noted: I. In the event of either of the following situations, dates, sessions, contents of resolutions of the Board Meetings, opinions from all independent directors, and Company responses to their opinions should be noted: (I) Issues specified in Article 14-3 of the Securities and Exchange Act: The company had set up the Audit Committee on June 26, 2016. The items related to Article 14-3 are listed as follows: 1.Approved by the fourth meeting of the 11th board on March 31, 2020: (1) The plan to appoint PricewaterhouseCoopers Taiwan to audit the 2020 financial report; assessment of external auditors’ independence; and audit fees 2. Approved by the seventh meeting of the 11th board on August 12, 2020: (1) Ratification of the change of head of internal audit 3. Approved by the eighth meeting of the 11th board on November 12, 2020: (1) Amendment of the internal control system (II) Other issues opposed by independent directors or about which directors have reservations that have been noted in the record or declared in writing: None. II. In situations where independent directors recuse themselves due to conflict of interest, the director's name, content of the resolution, reason for recusal, and his or her voting participation should be properly recorded: None. III. Evaluation frequency, evaluation period, evaluation scope, evaluation method and the content of evaluation of The Board of Directors evaluation and implementation, please refer to P25. IV. Enhancements to the functionality of the board of directors in the current and the most recent year (e.g. Establishment of an Audit Committee, improvement of information transparency etc.), and the progress of such enhancements: The Company has a Compensation Committee and an Audit Committee in place which assist directors to supervise theCompany's operations.

The Board of Directors evaluation and implementation

Evaluation frequency	Evaluation period	Evaluation scope	Evaluation method	Content of evaluation
Annually	2020/01/01 To 2020/12/31	Including the performance evaluation of the board of directors, directors and functional committees	Self-evaluation of the performance of board of directors, directors and functional committees	1.The items of the self-evaluation of the board of directors include the following aspects: (1) The degree of participation in the company's operations. (2) Improvement of the board of directors’ decision quality. (3) The composition and structure of the board of directors. (4) The selection and continuing education of directors. (5) Internal control. 2.The items for the self- evaluation of the individual directors include the following aspects: (1) Understanding of the Company’s goals and mission. (2) Awareness of directors' duties. (3) The degree of participation in the company's operations. (4) Internal relationship management and communication. (5) Continuing education of directors. (6) Internal control. 3. The items for the self- evaluation of the functional committees include the following aspects: (1) The degree of participation in the company's operations. (2) Awareness of the functional committees’ responsibilities. (3) Improvement of board decision quality. (4) Functional committee composition and member selection. (5)Internal control.

Evaluation Results:

The results of the performance evaluation of the board of directors were proposed to the board of directors and functional committees on March 30, 2021 and were used as a reference for the remuneration of individual directors and nominations for re-election. The results of the 2020 performance evaluation are as follows:

Evaluation method: Out of 5, evaluation average score exceeds 4 points, the result is “excellent”; evaluation average score 3 points or more but less than 4 points, the result is “good”; evaluation average score less than 3, the result is “need to be strengthened”
2.The overall average score of the board of directors’ performance self-evaluation is 4.38 points; the overall average score of the individual board members’ self-evaluation is 4.83 points. The results of the overall board performance evaluation are still effective.
The overall average score of the audit committee's self-evaluation is 4.59 points.
The overall average score of the compensation committee's self-evaluation is 4.42 points.

(II) Operations of the Audit Committee:

During the most recent year (2020),the Audit Committee convened five meetings. The

attendance record of independent directors is as follows:

Title	Name	Meetings Attended in Person	Meetings Attended by Proxy	% of Meetings Attended in Person (%)	Remarks
Independent Director	Lin Song-Shu	5	0	100%	Re-elected.
Independent Director	Chen Yao- Ching	5	0	100%	Re-elected.
Independent Director	Yu Hsiang- Tun	5	0	100%	Re-elected.
Other issues to be noted: I. In the event of either of the following situations, dates, sessions, proposal contents, resolutions of the Audit Committee, and Company responses to their opinions should be noted: (I) Issues specified in Article 14-5 of the Securities and Exchange Act: page 27 for details。 (II) Other matters not passed by the Audit Committee, which were then agreed upon by two-thirds of the entire membership of the Board of Directors: None. II. In situations where independent directors recuse themselves due to conflict of interest, the independent director's name, content of the resolution, reason for recusal, and his or her voting participation should be properly recorded: None III. Communication between Independent Directors, head of internal audit, and CPAs (including communication methods and results for material issues and the Company's finances and businesses): 1. Communication policy for Independent Directors and head of internal audit: (1) Head of internal auditors shall submit an audit report and correction follow-up report at the end of each month to the Independent Directors, stating the status of annual audit plan execution and follow- up on internal control corrections. (2) Work progress shall be reported to the Director at least once a quarter. In event of material and abnormal events, reports will be made and submitted to independent directors. There was no such abnormal event in 2020. Up to now, communication between Independent Directors and head of internal audit is good. 2. Summaryofprevious communications between Independent Directors and the head of internal audit: Audit Committee MeetingTime Items Discussed 2020/03/30 Highlights 1. Internal audit report (2019Q4) 2. Approval of 2019 statement of internal control. Discussion Results After review or approval by the Audit Committee, the Independent Directors posed no adverse opinions. 2020/05/13 Highlights Internal audit report (2020Q1) Discussion Results After review or approval by the Audit Committee, the Independent Directors posed no adverse opinions. 2020/08/12 Highlights Internal audit report (2020Q2) Discussion Results After review or approval by the Audit Committee, the Independent Directors posed no adverse opinions. 2020/11/12 Highlights 1. Internal audit report (2020Q3) 2. Formulation of 2021 annual audit plan 3. Amendment of the internal control system Discussion Results After review or approval by the Audit Committee, the Independent Directors posedno adverse opinions.

Communication policy for independent directors and CPAs
(1) In addition to at least two meetings on corporate governance each year, independent directors and CPAs auditors communicate and discuss in writing when necessary. The scope of communication includes the independence and relevant responsibilities of independent auditors in auditing consolidated financial statements; matters in relation to audit planning; material deficiencies identified in audits (including significant flaws in entry adjustments and internal control); contents of reviewed reports; and review results of interim financial statements.
(2) The Audit Committee completes review reports by referring to the audited Company’s consolidated financial statements and audit opinions.
Summary of previous communications between Independent Directors and the CPAs:

Audit Committee MeetingTime		Discussion Status
2020/03/30	Highlights	1. The CPAs explained at the meeting the content of the audited 2019 consolidated financial statements; material deficiencies identified in audits (including significant flaws in entry adjustments and internal control); and contents of the audit report. 2. The CPAs explained, discussed, and communicated with the meeting attendees on thequestions theyraised.
	Discussion Results	The Audit Committee already passed the annual financial report and submitted it to the Board of Directors for approval and announced and declared to the competent authorityon schedule.
2020/08/12	Highlights	1. The CPAs explained at the corporate governance meeting the content of the reviewed consolidated financial statements for the second quarter of 2020 and the review report. 2. The CPAs explained, discussed, and communicated with the meeting attendees on the questions they raised.
	Discussion Results	The independent directors communicated fully with the accountants, and the independent directors posed no adverse opinions.
2020/11/12	Highlights	1. The CPAs explained the responsibilities and independence and the audit plan for the auditing of the 2020 consolidated financial statements. 2. The CPAs explained, discussed, and communicated with the meeting attendees on the questions they raised. 3. The CPAs explained the audit report on the 2020 consolidated financial statements and the preliminary thoughts on the important review items to be communicated.
	Discussion Results	The independent directors communicated fully with the accountants, and the independent directors posed no adverse opinions.

IV. Key focus and operation status of the Audit Committee:
(1) Key focus in 2020
1. Communicating according to the audit plans with the Company’s internal auditors about the results of internal audit reports on a regular basis.
2. Communicating with the Company’s auditing accountants about the audit on consolidated financial statements of each quarter or audit results on a regular basis.
3. Reviewing financial reports
4. Review of the amendment of the internal control system

5. Appointing auditing accountants. 6. Reviewing the independence and service fees of CPAs. 7. Legal compliance (II)Operation status in 2020 Board of Directors Date/Term Proposal content and subsequent handling Items listed in Article 14- 5 of the Securities and Exchange Act 2020/03/30 Second Term 3rd meeting 1.The Company’s 2019 business report and financial statements ✓ 2. Approval of 2019 statement of internal control. ✓ 3. The plan to appoint PricewaterhouseCoopers Taiwan to audit the 2020 financial report; assessment of external auditors’independence; and audit fees ✓ Resolution by the Audit Committee (March 30, 2020) Agreed by allattendingmembers oftheAudit Committee The company's handling of the opinions of the audit committee: all the directors present agreed to pass. 2020/08/12 Second Term 6rd meeting Change of head of internalaudit ✓ Resolution by the Audit Committee (August 12, 2020) Agreed by all attending directors 2020/11/12 Second Term 7th meeting Amendment of the internal control system ✓ Resolution by the Audit Committee (November 12, 2020) Agreed by all attending members of the Audit Committee The company's handling of the opinions of the audit committee: all the directors present agreed to pass. Resolutionsnot approved by theAudit Committee but approved bymore thantwo-thirds ofalldirectors: None	5. Appointing auditing accountants. 6. Reviewing the independence and service fees of CPAs. 7. Legal compliance (II)Operation status in 2020 Board of Directors Date/Term Proposal content and subsequent handling Items listed in Article 14- 5 of the Securities and Exchange Act 2020/03/30 Second Term 3rd meeting 1.The Company’s 2019 business report and financial statements ✓ 2. Approval of 2019 statement of internal control. ✓ 3. The plan to appoint PricewaterhouseCoopers Taiwan to audit the 2020 financial report; assessment of external auditors’independence; and audit fees ✓ Resolution by the Audit Committee (March 30, 2020) Agreed by allattendingmembers oftheAudit Committee The company's handling of the opinions of the audit committee: all the directors present agreed to pass. 2020/08/12 Second Term 6rd meeting Change of head of internalaudit ✓ Resolution by the Audit Committee (August 12, 2020) Agreed by all attending directors 2020/11/12 Second Term 7th meeting Amendment of the internal control system ✓ Resolution by the Audit Committee (November 12, 2020) Agreed by all attending members of the Audit Committee The company's handling of the opinions of the audit committee: all the directors present agreed to pass. Resolutionsnot approved by theAudit Committee but approved bymore thantwo-thirds ofalldirectors: None	5. Appointing auditing accountants. 6. Reviewing the independence and service fees of CPAs. 7. Legal compliance (II)Operation status in 2020 Board of Directors Date/Term Proposal content and subsequent handling Items listed in Article 14- 5 of the Securities and Exchange Act 2020/03/30 Second Term 3rd meeting 1.The Company’s 2019 business report and financial statements ✓ 2. Approval of 2019 statement of internal control. ✓ 3. The plan to appoint PricewaterhouseCoopers Taiwan to audit the 2020 financial report; assessment of external auditors’independence; and audit fees ✓ Resolution by the Audit Committee (March 30, 2020) Agreed by allattendingmembers oftheAudit Committee The company's handling of the opinions of the audit committee: all the directors present agreed to pass. 2020/08/12 Second Term 6rd meeting Change of head of internalaudit ✓ Resolution by the Audit Committee (August 12, 2020) Agreed by all attending directors 2020/11/12 Second Term 7th meeting Amendment of the internal control system ✓ Resolution by the Audit Committee (November 12, 2020) Agreed by all attending members of the Audit Committee The company's handling of the opinions of the audit committee: all the directors present agreed to pass. Resolutionsnot approved by theAudit Committee but approved bymore thantwo-thirds ofalldirectors: None
Board of Directors Date/Term	Proposal content and subsequent handling	Items listed in Article 14- 5 of the Securities and Exchange Act
2020/03/30 Second Term 3rd meeting	1.The Company’s 2019 business report and financial statements	✓
	2. Approval of 2019 statement of internal control.	✓
	3. The plan to appoint PricewaterhouseCoopers Taiwan to audit the 2020 financial report; assessment of external auditors’independence; and audit fees	✓
	Resolution by the Audit Committee (March 30, 2020) Agreed by allattendingmembers oftheAudit Committee
	The company's handling of the opinions of the audit committee: all the directors present agreed to pass.
2020/08/12 Second Term 6rd meeting	Change of head of internalaudit	✓
	Resolution by the Audit Committee (August 12, 2020) Agreed by all attending directors
2020/11/12 Second Term 7th meeting	Amendment of the internal control system	✓
	Resolution by the Audit Committee (November 12, 2020) Agreed by all attending members of the Audit Committee
	The company's handling of the opinions of the audit committee: all the directors present agreed to pass.
Resolutionsnot	approved by theAudit Committee but approved bymore thantwo-thirds ofalldirectors: None

In order to perform its duties, the Audit Committee has the right to conduct any appropriate audits and investigations in accordance with its organizational regulations. Furthermore, it has direct communication channels with the Company's internal auditors, CPAs, and all employees. The Audit Committee also has the right to hire and supervise lawyers, accountants or other consultants to assist the Audit Committee in performing its duties. Please refer to the company's website for the Audit Committee's organizational procedures.

(III) Discrepancies between Corporate Governance Best Practice Principles

for TWSE/TPEx Listed Companies and reasons for the discrepancies:

Items Assessed	Implementation Status	Implementation Status	Implementation Status	Deviation from Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
I. Has the Company established and disclosed its corporate governance principles based on "Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies”?	✓		The Company has set a corporate governance code of practice, for the protection of shareholders’ rights, to strengthen the functions of the Board of Directors, respect the interests of stakeholders, enhance the transparency of information and relevant rules. Please refer to the Company’s website for detailed information.	None
II. Equity structure and shareholder rights (I) Has the Company set internal operating procedures to deal with shareholder proposals, doubts, disputes and litigation matters, and does it implement these in accordance with its procedures? (II) Does the Company maintain a list of major Company shareholders and the ultimate owners of these shareholders? (III) Has the Company built and executed a risk management mechanisms and “firewall” between the Company and its affiliates? (IV) Has the Company set internal standards to prohibit the use of undisclosed insider information to trade securities on the market?	✓ ✓ ✓ ✓		(I) The Investor Relations Department has been established to handle shareholder proposals or disputes. (II) The Company maintains a list of major Company shareholders and the ultimate owners of these shareholders and discloses this information pursuant to the laws. (III) The Company has established appropriate internal risk control mechanisms and firewalls, in pursuant to the rules for specific companies or groups related business operations and financial transactions, supervision measures for subsidiaries, Procedures for Handling Endorsement/Guarantee, loans to others and guidelines for acquisition or disposal of assets, and other internal guidelines. Business relations between affiliated enterprises have been evaluated by an independent third party to prevent violations of unlawful transactions. (IV) The Company has established “Procedure on Insider Trading Prevention and Control” to prevent insider trading.	None
III. Composition and responsibilities of the				None

Items Assessed			Implementation Status	Implementation Status	Implementation Status	Implementation Status	Implementation Status
	Yes	No	Explanation
Board of Directors (I) Has the Company established a diversification policy for the composition of its Board of Directors and has it been implemented accordingly?	✓		(I) The Company has established “Corporate Governance Practical Principles” to ensure boards’ diversity and its implementation. The company’s Board of Directors (including Independent Directors) has adopted nomination system. The members of the Board of Directors are diverse, possessing technology and finance backgrounds and experience of management practices with a view to implement the policy of diversification and build a robust structure of the Company’s Board of Directors. (Please refer to page 16 for the professional knowledge and independence of board members) Status of Director diversification
			Name of Directors	Operation and Management	Leadership Decision	Knowledge of the Industry	Finance and Accounting
			Lee Kuang- Yao	✓	✓	✓
			Hung Chih- Chien	✓	✓	✓
			Lee Han- Ming	✓	✓	✓	✓
			Lee Xue- Kun	✓	✓	✓
			Lin Song- Shu	✓	✓		✓
			Chen Yao- Ching	✓	✓	✓	✓
			Yu Hsiang- Tun	✓	✓		✓
			The directors who are also employees account for 28.57% of the board, independent directors 42.86%. Two independent directors have served four to six years, one over seven years. One director is over 70 years old, three 60~69 years old, three below 60 years old. Managerial goals of the diversification policy: The Company pays attention to gender equality of the board composition and targets at 10% or higher of the directors to be female. A female director is expected to add to the 12th board for this target.

Items Assessed				Implementation Status	Deviation from Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons for the discrepancies:
	Yes	No		Explanation
(II) Has the Company establish other functional committees besides the Compensation Committee and Audit Committee of its own accord? (III) Has the Company formulated the guidelines on reviews and assessment methods of the board’s performance, conducted annual performance reviews, reported the results to the board, and incorporated the results into the remuneration of individual directors and the nomination for re-elections? (IV) Does the Company assess the independence of external auditors on a regular basis?	✓ ✓ ✓		The Board of Directors has formulated a diversified policy regarding the composition of members in the Company's corporate governance code of practice. This policy has been disclosed on the Company’s website and on the Market Observation Post System. Managerial goals Status of Implementation It is advisable that Directors who are also serving as the Company’s managers not account for more than one third of the all Directors. Achieved (II) The Company has established an Audit Committee and a Compensation Committee, as well as Corporate Social Responsibility Committee (CSR Committee). Other functional committees will be established based on future needs. (III) The Board of Directors on March 30, 2020 approved the Guidelines on Board Performance Reviews. Currently, the unit responsible for meetings carry out self-inspections each year on the Rules and Regulations of Board Meetings and operational management, to ensure the board functioning adherent to relevant laws and regulations. (IV) The Company regularly assesses the performance and independence of the CPAs through the Board of Directors every year. In the Board of Directors’ discussion of the appointment and assessment of independence of CPAs, it is necessary to present for each recommended CPA his/her resume and independence statement(of

Items Assessed	Implementation Status	Implementation Status	Implementation Status	Deviation from Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
			Bulletin No. 10 of the Norm of Professional Ethics for Certified Public Accountants). The assessments during the past two years were completed on March 27, 2019 and in March 2020. Items Assessed 1. Does the CPA have direct or material financial interest with the Company? 2. Does the CPA have loans or guarantees with the Company’s Directors or Supervisors? 3. Does the CPA have a close business relationship with the Company? 4. Does the CPA have a potential employment with his/her audit customer?
IV. Has the TWSE/TPEx listed company appointed suitable full-time (part-time) personnel or units of an appropriate number for corporate governance and designated a corporate governance officer in charge of corporate governance affairs (including but not limited to preparation of materials required by directors and supervisors for performing tasks; assistance to directors and supervisors in legal compliance; organization of board meetings and shareholders’ meetings as required by laws; and production of board meeting and shareholders’ meeting minutes)?	✓		To fulfill corporate governance and ensure the Board of Directors to exercise its functions to protect the right of investors, the Company has allocated suitable personal of an appropriate number for corporate governance and on May 13, 2019 the Board of Directors approved the appointment of the finance manager Tzu- Hung Li as head of corporate governance in charge of corporate governance affairs. Senior Director Tzu-Hung Li has over three years of experience as a finance manager in public companies. His main duties are as follows: 1. Handling of matters related to the board meeting and shareholders’ meeting pursuant to the law: (1) Proposed the agenda of the Board of Directors meeting and to notify the directors seven days prior to the designated date of meeting. Convene the meeting and provide information for the meeting. Notify the Board members to abstain from certain motions if conflict of interest is anticipated before the meeting. (2) Process filing of Shareholders’ Meetingand toproduce meetingnotice	None

Items Assessed	Implementation Status	Implementation Status	Implementation Status	Deviation from Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
			within the legally-stipulated deadline, meeting agenda, meeting minutes and annual reports. 2. Preparation of complete board meeting minutes and shareholders’ meeting minutes: The board meeting minutes and shareholders’ meeting minutes shall be prepared within 20 days after the meeting. 3. Assistance of the director’s inauguration and continuing education: The Company assists Directors in continuing education plans and training schedules according to the nature of the Company’s industry, and the directors’ education background and work experience. 4. Providing information needed by the Board of Directors to carry out its functions: (1) Regularly notify Board members on the latest legal amendments and developments regarding company management and corporate governance. (2) Inspect level of information secrecy and provide company information needed by the Board, maintaining smooth bi-lateral communications between directors and various business managers. (3) Pursuant to the corporate governance code of practice, when independent directors need meet with internal audit supervisors in private to understand the Company’s financial status, the designated personnel shall assist to arrange such meetings. 5. Assisting the Directors in legal compliance: (1) Report implementations of corporate governance to the Board, to ensure that the Company’s Shareholders’ Meeting and Board are in compliance with relevant laws and corporate governance practice principles. (2)Assist or remind the Board to comply

Items Assessed	Implementation Status	Implementation Status	Implementation Status	Deviation from Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
			with relevant legal regulations when performing relevant duties or while making resolutions, and to propose opinions before the Board forms an illegal resolution. (3) Responsible for reviewing the announcement for material decisions made by the Board to ensure the content of the announcement is in compliance with the law. 2020 key tasks were as follows: 1.Five board meetings, five Audit Committee meetings and two Compensation Committee meetings. 2. One general shareholders’ meeting. 3. Continuing education of board members (see page 38 of the annual report). 4. Continuing education of the head of corporate governance (see page 39 of the annual report).
V. Has the Company established a means of communicating with its Stakeholders (including but not limited to shareholders, employees, customers, suppliers, etc.) or created a Stakeholders Section on its Company website? Does the Company respond to stakeholders’ questions on corporate responsibilities?	✓		The Company has established “Stakeholder Division” and provided contact information MOPS and Company website to respond to major stakeholders’ concerns regarding corporate social responsibilities.	None
VI. Does the company appoint a professional shareholder service agency to deal with shareholder affairs?	✓		The Company authorized “Fubon Securities Co., Ltd.” as stock service agencyto handle shareholder transactions.	None
VII. Information Disclosure (I) Has the Company established a corporate website to disclose information regarding its financial, business and corporate governance status? (II) Does the Company adopt other information disclosure channels (e.g. maintaining an English-language website, designating staff to handle information collection and disclosure, appointing spokespersons, webcasting investors conference etc.)? (III) Does the Company publiclyannounce and	✓ ✓ ✓		(I) The Company has placed financial and corporate governance information of each year on its website. (II) The Company has an English website to disclose relevant information. The Company has a spokesperson(s), investor relations department and shareholder services related department(s) to disclose relevant information. (III)Startingin June 2019,the Company	None

Items Assessed	Implementation Status	Implementation Status	Implementation Status	Deviation from Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
file the annual financial reports within two months after the accounting year-end, and publicly announce and file the first, second and third quarterly financial reports and the monthly operating status report before the stipulated deadlines?			has been reporting revenues of the prior month on the fifth of each month (before the statutory deadtime).
VIII. Is there any other important information that can help to understand the Company’s corporate governance functioning? (including but not limited to employees’ rights;employees’ care; investor relations;supplier relations; stakeholders’ rights; further education for directors and supervisors; implementation of risk management policies and risk measurement criteria; implementation of customer policies; and purchase of liability insurance for directors and supervisors)	✓		(I) Interests and wellness of employees: Based on the Company's concept of human-centered approach toward human resource, the Company spares no effort in creating employee welfare and providing a safe and healthy working environment. The Company regards employees as the most valuable asset. The Company's success lies in attracting and retaining talents of diverse fields to work as a team. Each employee is assessed based on his/her qualifications and skills, regardless of his/her personal traits. The company fully supports all the principles of hiring and abides by the labor laws of the countries where the business is located. To comply with the amendments of the labor policies and promote gender equality, the Company has established “Guidelines for the Prevention and Management of Sexual Harassment” to preserve gender equality in employment and one’s dignity, and provide for the behavior of employees in the workplace. Pertaining to the protection of the confidentiality of employees’ basic information, to meet the organizational needs and preserve employee privacy, such information should not be disclosed under any circumstances, unless required by the government regulations. (II) Investor Relations: the Investor Relations Department was set up to specifically deal with shareholder proposals.	None
	`35`

Items Assessed	Implementation Status	Implementation Status	Implementation Status	Deviation from Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
			(III) Supplier Relationship: Good relations with suppliers are maintained at all times, and signing of the Integrity Commitment is required. (IV) Interests and Rights of Stakeholders: In order to protect the interests of the Company and its stakeholders, purchase contracts are signed with all suppliers to clearly define the trading and cooperation relationship between the parties to protect the legitimate rights and interests of both parties. (V) Continuing Education of Directors: The directors of the Company are qualified with professional industrial knowledge and practical experience in operation management. Please refer to the table below for more information on their continuing education. (VI) Execution of risk management policy and risk measuring standards: The management of various operational risks shall be managed by the relevant management unit according to the nature of its business, and the existing or potential risks of each business operation shall be reviewed by the audit office. The audit office shall prepare an implementation risk-oriented annual audit plan. The risk management of each department are as follows: All Divisions: Responsible for business decision-making planning, assessing medium- and long-term investment benefits to reduce strategic risks. Finance Department: Responsible for financial planning and fund scheduling, and establishment of hedging mechanisms to reduce business operational risks.

Items Assessed	Implementation Status	Implementation Status	Implementation Status	Deviation from Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
			System information Department: Responsible for network information security control, protection measures and responsible for network planning, construction, operation and maintenance, and continuously inspecting network quality to reduce network operation risks and information security risks. Accounting Department: Responsible for the revision of the accounting system, budgeting, collection and analysis of execution cost data, and providing correct and immediate financial information to assess operational performance and operational risk. (VII) Recusal of Directors due to conflict of interest: The Company’s directors recuse themselves in all cases regarding conflict of interest. (VIII) Liability insurance for the Company’s Directors: Liability insurance has been covered for Directors. (IX) Qualification of personnel associated with financial transparency: The company's accounting and auditing personnel have professional knowledge and practical experience. They have not obtained the relevant licenses specified by the competent authority. Relevant personnel will be encouraged and planned to obtain relevant licenses in the future.

Items Assessed	Implementation Status	Implementation Status	Implementation Status	Deviation from Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
IX. Please explain improvements that have been made as well as priorities and measures to improve the results of theCorporateGovernance Evaluation issued bythe TaiwanStock ExchangeCorporateGovernanceCenter: Number Evaluation Indicators Improvements that have been made as well as priorities and measures to improve the results 1 Do the Company’s independent directors participate in training courses and complete course hours as required in the Directions for the Implementation of Continuing Education for Directors and Supervisors of TWSE Listed and TPEx Listed Companies? In 2020, all independent directors completed continuing education. 2 Has the guideline for evaluating the performance of the Board of Directors established by the Company approved by the Board, and is the self- evaluation performed at least once a year, in which its results are disclosed on the Company website or annual report? The Board of Directors on March 30, 2020 approved the formulation of the Guidelines on Board Performance Reviews.

Continuing education for the Company’s directors in 2020 was as follows:

Title	Name	Date	Organizer	Course	Hours
Independent Director	Lin Song- Shu	2020/03/26	CPA Associations R.O.C. (Taiwan)	Ownership Planning	3 hours
		2020/11/16	CPA Associations R.O.C. (Taiwan)	Trust Behavior and Trust Asset Taxation	3 hours
Independent Director	Yu Hsiang- Tun	2020/06/29	Taiwan Corporate Governance Association	Concepts, Practice and Tools for Group Taxation Governance	3 hours
		2020/07/03	Taiwan Corporate Governance Association	Trends and Risk Management of Digital Technology and Artificial Intelligence	3 hours
Independent Director	Chen Yao- Ching	2020/12/29	Institute of Internal Auditors - Chinese Taiwan	Reading, Analysis and Use of Financial Statements	6 hours

Continuing education for the Company’s head of corporate governance in 2020 was as follows:

Title	Name	Date	Organizer	Course	Hours
				Newest Trend of Corporate
			Accounting Research and
		2020/01/10		Governance and Performance	3Hours
			Development Foundation
				Assessmentin Practice

				Practical Interpretation and
				Analysis of Regulatory
			Accounting Research and
		2020/05/14		Requirements for Establishment	3Hours
			Development Foundation
				of Corporate Governance
Corporate
	Li Tzu-			Officer/Personnel
Governance
	Hung			Newest Trend of Corporate
Manager
				Social Responsibility (CSR)
			Accounting Research and
		2020/06/19		Reporting and Practical	3Hours
			Development Foundation
				Interpretation & Analysis of

				Corporate Governance
				COVID-19 Impact on Corporate
			Accounting Research and
		2020/07/31		Governance and	3Hours
			Development Foundation
				Countermeasures

(IV) Organization, responsibilities and operation status of the Compensation

Committee:

1. Information on members of the Compensation Committee

Title	Criteria Name	Has over five years work experience and meets the following professional qualifications	Has over five years work experience and meets the following professional qualifications	Has over five years work experience and meets the following professional qualifications	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Independence Criteria (Note)	Number of Other Public Companies in Which the Individual is Concurrently Serving as a Member of the Compensation Committee
		An Instructor or Higher Position in a Department of Commerce, Law, Finance, Accounting, or Other Academic Department Related to the Business Needs of the Company in a Public or Private Junior College, College or University	A Judge, Public Prosecutor, Attorney, Certified Public Accountant, or Other Professional or Technical Specialist Who has Passed a National Examination and been Awarded a Certificate in a Profession Necessary for the Business of the Company	Work Experience in the Areas of Commerce, Law, Finance, or Accounting, or Otherwise Necessary for the Business of the Company	1	2	3	4	5	6	7	8	9	10
Independent Director	Lin Song- Shu		✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	1
Independent Director	Chen Yao- Ching			✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	0
Independent Director	Yu Hsiang- Tun			✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓	1

Note: Please tick the corresponding boxes if the members have been any of the following during the two years prior to being elected or during the term of office.

(1) Not an employee of the Company or any of its affiliates.
(2) Not a director or supervisor of the Company or any of its affiliates. (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, or subsidiary of the same parent company as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary.)
(3) Not a natural-person shareholder who holds shares, together with those held by the person’s spouse, minor children, or held by the person under others’ names, in an aggregate amount of one percent or more of the total number of issued shares of the Company or ranks as one of its top ten shareholders.
(4) Not a managerial officer mentioned in paragraph (1), or a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship mentioned in paragraphs (2) and (3).
(5) Not a director, supervisor, or employee of an institutional shareholder that directly holds five percent or more of the total number of issued shares of the Company, or ranks as its top five shareholders, or the designated representative pursuant to Article 27 Section 1 or 2 of the Company Act in the Company as director/supervisor (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, or subsidiary of the same parent company as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary.) .
(6) Not a director, supervisor, or employee of other company with the Board seats or more than half of the voting shares under control of one person (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, or subsidiary of the same parent company as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary.)
(7) Not a director, supervisor, or employee of other company whose chairman or general manager are the same person or spouse of the Company (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, or subsidiary of the same parent company as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary).
(8) Not a director, supervisor, managerial officer, or shareholder holding five percent or more of the shares of a specified company or institution that has a financial or business relationship with the company (The same does not apply, however, if specified company or institution possessing shareholdings of more than 20% and less than 50% of the total number of

issued shares of the Company, and in cases where the person is an independent director of the company, its parent company, or any subsidiary, or subsidiary of the same parent company as appointed in accordance with the laws of Taiwan or with the laws of the country of the parent company or subsidiary).

(9) Not a professional individual who, or an owner, partner, director, supervisor, or managerial officer of a sole proprietorship, partnership, company, or institution that provides auditing services or for the past two years, has provided commercial, legal, financial, accounting services or consultation amounted to less than a cumulative NTD500,000 to the Company or to any affiliate of the company, or a spouse thereof. However, this does not apply to members of Compensation Committee, Public Tender Offer Review Committee or Special Merger and Acquisition Committee carrying out their duties in accordance with Securities and Exchange Act or Business Mergers and Acquisitions Act. (10) Does not meet any of the criteria described in Article 30 of the Company Act.

2. Operations of the Compensation Committee

(1) There are 3 members in the Company’s Compensation Committee.

(2) Current Term: From June 26, 2019 to June 25, 2022. During the most recent year and as of the print day of the annual report, the Compensation Committee convened two meetings. Member qualifications and attendance records are as follows:

Title	Name	Meetings Attended in Person	Meetings Attended by Proxy	% of Meetings Attended in Person	Remarks
Convener	Lin Song-Shu	2	0	100%	Re-elected.
Member	Chen Yao-Ching	2	0	100%	Re-elected.
Member	Yu Hsiang-Tun	2	0	100%	Re-elected.
Other issues to be noted: I. Compensation Committee’s suggestions that are not accepted or amended by the the Board of Directors: None II. The resolutions of the Compensation Committee which Committee member has oppositions or reservations: None. III. Discussion items and resolutions by the Compensation Committee in 2019 and the Company’s handling of members’ opinions Meeting date Discussion Resolution The handling of the Company's opinion towards committee members. Third Term 7th meeting 2020.03.30 1. 1. Formulation of the Guidelines on Performance Reviews of the Board and Functional Committees. 2. Discussion and ratification of the distribution of remuneration to managers and employees for 2018. 3. Ratification of the year-end bonuses and performance bonuses to managers for 2019. Approved by all committee members. Submitted to the board meeting and approved by all attending Directors. Fourth Term 1st meeting 2020.11.12 1. Ratification of the distribution of remuneration to managers and employees for 2019. 2. Discussion of Directors’ remuneration and appropriation of compensation. 3. Discussion of the policies, system, standards and structure of the evaluation of managerial officers’ performance and compensation. 4. Amendment of the Company’s Self-Assessment Questionnaire on Performance Review of the Board; Self- Assessment Questionnaire on Performance Review of Directors; Self-Assessment Questionnaire on Performance Review of the Audit Committee; and Self-Assessment Questionnaire on Performance Review of the Compensation Committee. Approved by all committee members. Submitted to the board meeting and approved by all attending Directors.

(V) Difference and the reason for such a difference between the fulfilment of

corporate social responsibility and the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies

Practice Principles for	TWSE/GTSM Listed Companies	TWSE/GTSM Listed Companies	TWSE/GTSM Listed Companies
Items Assessed	ImplementationStatus			Deviation from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
I. Has the Company performed risk assessment pertaining to the environment, community and corporate governance issues related to the operation of the Company in accordance with materiality principle?	✓		The Company has always maintained a variety of communication channels with stakeholders, and the communication is rather frequent. This is to understand the issues pertinent to stakeholders so that timely responses may be made. Important issues are preliminarily identified in the principles of sustainability, materiality, completeness, and inclusion. Foxconn Technology’s Corporate Social Responsibility Committee refers to the AA1000 Materiality Test Guideline in the assessment and identification of key issues based on the degree of impact on the organization and stakeholders’ degree of concern. The results are ranked and plotted into a materiality matrix for mapping of most significant issues. For more details, please refer to the annual CSR report.	None
II. Has the Company designated personnel to implement corporate social responsibility policy with senior management authorized by the Board of Directors to manage them? Do they prepare status reports to the Board of Directors?	✓		In 2014, the Company established CSR Committee, with General Manager as the Director General responsible for instruction of the CSR strategy planning, and reporting to the supreme person in charge, the Chairman. Manager of each factory area shall assume the role of Deputy Director General, responsible for the leading of CSR projects, and Director General is responsible for the execution of CSR projects. Each Business Group of the Company has set up a CSR branch in charging of CSR affairs of the Business Group. When necessary, the CSR Committee convenes at the year end to map out the action plan and targets for the following year. Once confirmed by the Director General, the action plan is rolled out. Internal audits are conducted annually on different facility campuses, to ensure that all campuses adhere to CSR policies. Each business group and branch also reports to the CSR Committee from time to time and when	None

Items Assessed			ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
			necessary, to review the CSR program effectiveness and collate the issues stakeholders are concerned with. Written data is presented to the Director General after each year and CSR annual reports are produced and submitted to the Board of Directors.
III. Environmental Issues (I) Has the Company developed an proper environmental management system, given its distinctive characteristics? (II) Is the Company committed to achieving efficient use of resources, and using renewable materials that produce less impact on the environment? (III) Has the Company made an assessment on the potential risks and opportunities posed by climate changes to the present and future of the Company and undertaken countermeasures pertaining to climate changes?	✓ ✓ ✓		(I) In response to the international trend and customer demands, the Company has progressively established environment management systems for its business units, and passed the certification of ISO14001.			None
			Factory area	Certification acquisition date	Expiry date
			Yantai FuZhun	2003/06/27	2020/06/27~ 2021/06/27
			HongFuJin Precision Industrial (Taiyuan) Co., Ltd.	2011/05/12	2020/11/09~ 2023/05/13
			FuZhun Precision Industry (Shenzhen) Co., Ltd. (Hebi)	2008/11/10	2019/04/04~ 2022/04/03
			Kunshan FuYu	2008/11/17	2018/10/17~ 2021/09/14
			Champ Tech Optical (Foshan) Corporation	2011/3/24	2020/03/25~ 2023/03/24
			Nanning Funing	2014/12/1	2020/05/09~ 2022/03/08
			(II) The Company is actively promoting water recycling, and adopts renewable/biodegradable raw materials to effectively reduce the impact that the production process makes on the environment. (III) The Company has yet to conduct detailed assessments on potential risks and opportunities at the present and in the future regarding climate change. However, management is well aware of potential impacts, risks and opportunities associated with climate change and has put in place relevant measures in order

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
(IV) Has the Company measured its greenhouse gas emission, water use and total weight of waste, and established policies pertaining to energy conservation, reduction in carbon and greenhouse gas emission, reduction in water use, or management of waste disposal?	✓		to play our part for the environment. This also seizes business opportunities and pursues sustainability for the Company and the environment. The Company believes that it is necessary to stay on top of this issue. Management also keeps a close eye on the development of the relevant agenda. This is expected to be developed further going forward. Management Goals on Environmental Conservation 1. Carbon-reduction Goal: To play our part as a member of the global village, we have been checking its inventory of carbon emissions since 2014, with some facility sites certified up to date. To set up targets for energy efficiency and carbon reduction, the Company has also put in place energy management initiatives such as air- conditioning temperature setups, installation of chains on office lighting switches, larger spacing between hallway lights, 3R3 resource management policies, and so forth. The direct and indirect greenhouse gas emissions from the Company’s factories were 425,000, 5,858,000 and 210,000 tons of CO2e in 2018, 2019 and 2020, respectively. To continue with carbon reduction, the Company develops a three-year plan based on the emissions in 2018 and targets at 5% reduction per dollar revenue (or output value) by 2021. 2. Electricity-reduction Goal: According to the ISO 14064 standards, the Company’s main source of greenhouse gas emissions is the use of electricity (over 99%). Therefore, power consumption reduction is the Company’s key method for carbon reduction through continuous focus on smart energy management; production process optimization and machinery renewal;automation and unmanned

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
			factories. A benchmarking method is adopted for all the initiatives in energy efficiency. A three-year plan has been made to reduce electricity consumption by 5% per dollar revenue (or output value) from the basis in 2018 and targets at 5% reduction by 2020. Specific practices for energy conservation and environmental protection: ◼ Air-con temperature is set at 26℃ or above. ◼ 3R3 resource management ◼ Installation of chains on office lighting switches ◼ Increase spacing between corridor lights ◼ No neckties ◼ Posting of small energy-saving signs ◼ Sensor lights in pantries 3. Measures of energy-saving promotions in factory offices and offices: Below is the list of energy efficiency measures and engineering projects in 2020 at the Company’s main facilities sites (in Yantai, Taiyuan, Kunshan and Foshan) and in Taipei. Energy-saving engineering projects include the optimization of CNC manufacturing process and improvement of air-pressure connections; enhancement of workstation optimization equipment; optimization of tools and fixtures; improvement of energy efficiency with machine tables; optimization and betterment of stamping and cleaning; improvement of ground-floor lighting; replacement of metal halide lamps with LED bay lights; improvement of energy efficiency in spray rooms; improvement of energy efficiency with fans at cooling towers for air- conditioning systems; optimization and improvement of manufacturing processes;introduction of LED

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
			energy-efficient lights at conveyors; change of refrigerants for split-type air-conditioners; installation of total heat exchange for air-conditioning systems; use of window films on the sunny side of air-conditioned buildings; energy efficiency improvement of cooling towers; installation of Automatic Power Factor Regulators (APFRs) for power systems; change of all lights to LEDs, etc. In total, 11,228,339 kWh of electricity was saved. 4. Reduction in water use, or other management of waste disposal: In the face of global environmental changes, the water resources are becoming scarcer gradually. In addition to conserving energy and reducing carbon footprint, human are going to encounter another wave dire impact from the environment. To conserve water resources, the Company puts in place many plans that reduce water use. Via improving the production processes and recovering water, the Company actively reduce the waste water and environmental impact from production processes. The Company’s factories consumed a total of 4,777 and 1,856 tons of water in 2019 and 2020, respectively. The target of at least 5% reduction of water consumption per dollar revenue (or production value) was achieved in 2020. 5. Treatment of waste removal in all factory areas has been handled in accordance with local laws and regulations. External firms are appointed for recycling and disposal of general waste. The easiest way to cherish and conserve resources throughout the production process is to increase the number of uses and the life of service and to reduce wastes. The Company’s factories consumed a total of 7,025 and 6,486 tons of hazardous wastes in 2019 and 2020, respectively.

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
IV. Social Issues (I) Does the Company establish policies and procedures in compliance with regulations and internationally recognized human rights principles? (II) Has the Company established and implemented reasonable	✓ ✓		(I) The Company has established the codes of conduct of employees in accordance with the “Labor Standards Act” and related personnel regulations, to protect the legitimate rights and interests of employees. As a member of the RBA, the company has established the "Foxconn Technology Corporation Limited Corporate Social Responsibility (CSR) Code of Conduct" with reference to the RBA Code of Conduct, the Universal Declaration of Human Rights (UDHR), and the International Labor Organization (ILO) to provide disclosure on the protection of labor rights policy. According to the Company's Code of Conduct and related work practices, the Company identifies those factory areas with high social, environmental, and moral risk each year, and conducts social, environmental, and ethical on-site audits. Monitoring mechanism: The Company conducts self- inspections on all facility sites each year. The inspections in 2020 covered hazardous substance management; fire separation; fire-fighting facilities; electric appliances and equipment safety; gas safety; construction safety; occupational health, etc. Potential problems were identified and rectified. The Company ensures that all employees fully understand the importance of employee health and safety, and that the company's operations comply with local laws and regulations and relevant operating standards. (II) The Company’s policy on employees’ remunerations is	None

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
employee benefit measures (including salary, leave and other benefits), reasonably tying operating results to employee salary? (III) Does the Company provide employees with a safe and healthy work environment? Are employees trained regularly on safety and health issues?	✓		based on each person’s capacity, contribution to the Company, performances, market value of the position held and the Company’s operating risks going forward. According to the Company’s Articles of Incorporation, no less than 4-6% of the annual profits shall be allocated as employees’ remuneration. The leave policy of the Company is in compliance with the Labor Standards Act and pertinent regulations. The types of leave include annual leave, marriage leave, bereavement leave, maternity and paternity leave, childcare leave, family care leave, menstrual leave, prenatal checkup leave, quarantine leave, care leave and et cetera. Other welfare measures include food allowance, birthday gift or allowance, gift or allowance for three major holidays, lucky draw at get-togethers, health promotion activities and medical consultation, childbirth allowance, childcare allowance. Measures specifically catering for pregnant female employees include transportation subsidy, dietary supplement subsidy, courteous reception and other caring measures. More measures include wedding congratulatory money and bereavement ex gratia payment, education and training subsidies, employee group insurance. (III) The Company provides its employees with safe and healthy working environment, and lay much emphasis on employees’ mental and physical health. At the same time, the Company also has Health Management Center to provide medical and health-care related consultation to employees. In addition,the Company

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
(IV) Has the Company implemented an effective training program that helps employees develop skills over their career? (V) Pertaining to the health and safety of customer when using the Company’s products and services, consumer privacy, marketing and labeling, does the Company comply with the relevant regulations and international standards, and establish relevant policies on consumer protection and complaint procedure? (VI) Has the Company established policy on supplier management, demanding suppliers to observe code of conduct pertinent to environmental protection, labor safety and health or labor rights, and monitoring their implementation?	✓ ✓ ✓		provides also health-related lectures, with an aim to create a healthy environment for all employees. (IV) The Company adopts horizontal integration of Technology Development Committees. Employees are assigned to different Technology Development Committees according to their attributes and expertise. The Technology Development Committees seeks to introduce the newest knowledge and knowhow in different domains, promote information sharing, encourage professional development of employees and establish a comprehensive program for technical talent pipelines. (V) The Company observes applicable laws, regulations and international standards governing business activities, in order to protect health and safety of customers for our products/services, customers’ privacy and marketing labels. As the customers of the Company are international companies, to uphold the customer rights, the Company will, from time to time, communicate with them and conduct customer satisfaction survey, establishing communication channel with stakeholders—customers, so as to protect the customer and consumer rights, as well as their rights to complain. (VI) The Company works together with suppliers in social and environmental issues such as hazardous substance control, environmental protection, labor health & safety, human rights, conflict minerals and carbon footprint. We also urge our suppliers to transform into the green supplychain,in order to

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
			meet with local regulations. In 2020, a total of 102 deficiencies in Social and Environmental Responsibility (SER) were identified and subsequently rectified. To ensure occupational health & safety and labor rights, each facility site has established its own Environmental Health & Safety Committee. The committee inquires about employees’ lives, work related problems and issues in occupational health at the workplace. The Company did not receive major fines from the government due to occupational health & safety problems during theyear.
V. Does the Company refer to universal standard or guideline for report preparation when preparing for CSR Report and other non- financial disclosure reports? Does the Company obtain the confirmation or affirmation opinion from third party for the aforementioned reports?	✓		The CSR Report of the Company is mainly prepared in compliance with Global Reporting Initiative (GRI) issued by Global Sustainability Standards Board (GSSB), in which the disclosure is in pursuant to GRI core option, and confirmation and verification from third party are attained.	None
VI. If the Company has established integrity management principles in accordance with "Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies," please describe the current practices and anydeviations from the Best Practice Principles: None.
VII. Other important information to facilitate better understanding of corporate conduct and ethics compliance practices of the Company: (I) The Company has adopted a new processing system to enhance the capacity to recover wastes and sewage. The new system has been installed and put into operation in some manufacturing factory areas. (II) Based on the respect to employees, the Company emphasizes that it does not hire child labor, and does not force employees to work overtime. Managers are prohibited to discriminate or harass against employees. All these measures are all announce officially, and compliant channels have been established to listen to employees, and execute the filing of the complaints, follow-ups and corrections. (III) The company has safety and health management units in each factory area that examine the facilities, provide training to employees on industrial safety and health and conduct performance review on a regular basis. (IV) The company has a supplier management division that provides inspection and trainings on corporate social responsibilities to suppliers.
VIII. If the Company’s CSR Report passes certification of the pertinent inspection institution, further elaboration should be provided: The Company’s CSR Report is prepared by the CSR Committee, and are assured and verified by Guangdong Soonfine Law Offices in accordance with GRI G4.

Based on the materiality principle in corporate social responsibility, The Company conducts assessments of

relevant risks and refers to the findings in the formulation of risk management polies or strategies as follows:

Material Issues	Risk Assessment Items	Risk Management Policy or Strategy
Environment	Environmental Protection	1.Environmental protection is an important issue to the Company. Before building a factory, the Company will assess the impact on the ecosystem and apply for permit from the competent authority before commencing construction. 2.Once a factory ramps up, the site must obtain the ISO14001(environmental management system) certification and implements inspections to ensure compliance with the EU RoHS directive. Products may not contain hazardous substances such as lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyl (PBB) or polybrominated diphenyl ethers (PBDE), in order to effectively mitigate environmental pollution.
	Waste Water and Waste	1.Conforming to the law: the emission of waste water and waste must conform to the environmental protection regulations and national standard. 2.The emission of waste water, waste and pollutants requires a permit, and must be processed within the factory compound before emitted. 3.Depending on the type of waste, data is examined daily or regularly, declared and processed in accordance with the law.
	Environmental Protection Assessment on Suppliers	1.Referring to ISO and EMAS standards, the Company requires the suppliers to undertake environmental protection responsibility. 2.The Company rates and categorizes the suppliers, and tailors the intensity of the inspection conducted according to their respective categories. 3.Suppliers that pass inspection will be included in the environmental protection system.
Community	Employer- employee Relations	Establishing a friendly working environment and fostering constructive working relationships have always been the Company’s mission. The objective is to enhance creativity and productivity of employees so that they can realize their full potential and optimize the efficiency and operation of the Company. The strategies that the Company undertakes include: 1.Diversity amongst employees and no discrimination: Regardless of gender, race, age, ethnicity, qualification and et cetera, the Company does not tolerate discrimination so as to create the most easygoing environment for the employees. 2.Equality and freedom amongst employees: Employees shall be treated equally and they enjoy the freedom of assembly, association and forming labor union, so that they can work in a comfortable environment. 3.Good childcare policy: The Company has good childcare policy, mainly to provide the employees with a sense of security in raising offspring. 4.Conforming to rules and regulations of the law: Conforming to rules and regulations of the law is the most fundamental and mandatory behavior, but must still be included in the Company policies.
	Labor- Management Relations	The Company provides reasonable notice periods to employees according to laws. In the unfortunate circumstances when redundancy is necessary, the notice periods will provide employee a reasonable timeframe to seek employment and make the transition easier.
	Occupational Safety and Health	In terms of manufacturing, employees practically live at their factories. In order to protect the safety and health environment of employees, the company adopts the following strategies: 1.The government has established a robust legal and regulatory framework for the protection of labor’s occupational health and safety. The proper adherence to relevant laws and regulations ensures the occupational health and safety of employees. 2.Each facility site has established its own Environmental Health & Safety Committee, to stay on top of employees’ requirements and handle these issues in a timely manner.

Material Issues	Risk Assessment Items	Risk Management Policy or Strategy
		3.Implementation of the occupational health & safety management system (OHSAS18001)
	Child Labor	The Company prohibits the use of child labor.
Corporate Governance	Social and Economic Legal Compliance	The Company has put in place a robust organizational system and units (e.g., Audit Committee, head of corporate governance) and established the audit office to strictly implement the internal control mechanism. This is to ensure that both the Company and its employees can observe relevant laws and regulations by adhering to the following requirements: 1.Company: The operating activities must comply with the relevant rules and regulations. 2.Employee: Employees must comply with the “Corporate Social Responsibility Principles”of the Company.

(VI) Difference and the reason for such a difference between the fulfilment of

ethical corporate management and the Ethical Corporate Management Best

Practice Principles for TWSE/GTSM Listed Companies:

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
I. Establishment of Corporate Conduct and Ethics Policy and Implementation Measures (I) Does the Company establish corporate conduct and ethics policy that is approved by the Board of Directors and document such policy and procedure, as well as the commitment of the Board and Management team in the implementation of the policy thereof, in the bylaws and publicly available documents? (II) Has the Company established an risk assessment mechanism for unethical conduct, analyzed and evaluated activities that contain a higher risk of unethical conduct in the operating aspect on a regular basis, and established measures for the prevention of unethical conduct, which at least covering the business activities prescribed in paragraph 2, article 7 of the Ethical Corporate Management Best	✓ ✓		(I)The Company has formulated and the Board of Directors has approved Foxconn Technology’s Guidelines of Ethical Corporate Management. Based on the principle of lawfulness, justice, equality and honesty, these guidelines are incorporated into the human resource declaration and code of conduct in Employee’s Manual, in order to implement the Company’s ethical corporate management. (II) The Company has established an effective internal control system and regularly assesses and analyzes this system each year and produces assessment reports, as the basis for prevention of unethical behaviors.	None

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
Practice Principles for TWSE/GTSM Listed Companies? (III) Does the company establish relevant policies which are duly enforced to prevent unethical conduct, provide and implement operating procedures, behavioral guidelines, penalty for violation and appeal system in such policies, as well as evaluating and amending the aforementioned policies on a regular basis?	✓		(III)The Company periodically organizes training and education to all employees regarding code of conduct each year. New hires are provided with the training on employee code of conduct, management system, corporate ethics and morals, so that the rights and obligations of employees are clearly communicated. The abovementioned programs are regularly reviewed and modified.
II. Enforcement of ethical management (I) Does Company evaluate the ethical records of the businesses with which it has dealings and include clear ethical corporate behavior provisions in contracts with such counterparties? (II) Does the Company task a unit that reports directly to the Board of Directors and with promoting ethical standards, making periodical updates (at least once a year) to the Board on ethical management policy, as well as the supervision of measures for	✓ ✓		(I)The Company upholds a corporate culture of dignity and integrity, and is committed to fully complying with anti-corruption and anti- bribery laws and regulations, both local and international. The Company has a zero- tolerance policy towards activities or behaviors that are in violation of the anti- corruption policy. Corruption, bribery, embezzlement or improper activities are strictly prohibited. All employees are inducted with anti-corruption trainings. In addition, partnership with downstream suppliers, vendors and customers may only be established under the premise that they strictly comply with the anti-corruption policy to the utmost standard. (II)Under the Board of Directors, there are Audit Committees, Compensation Committee and Auditing Office, which are responsible for monitoring and checking the compliance of integritymanagement.	None

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
prevention of unethical conduct? (III) Does the company establish policies to prevent conflict of interests, provide appropriate communication and complaint channels and implement such policies properly?	✓		The Company’s Security Management Department is the dedicated unit for ethical corporate management, responsible for formulation, monitoring and implementation of ethical corporate management policies and prevention of unethical behaviors. Reports are made to the Board of Directors at least once per annum. Ethical corporate management in 2020: The Company requested employees to sign agreements such as Employee’s Voluntary Reporting; Employee’s Commitment to Ethics; and the Agreement for Honesty, Integrity and Intellectual Property. Internal and external experts were invited to provide training and education, so that the employees stayed alert and aware of the most updated changes in laws and regulations. This would prevent employees from violating the laws or repeating similar mistakes. (III)The Company asks all the new hires to sign the Agreement for Honesty, Integrity and Intellectual Property. All the colleagues are required to abide by the terms and conditions contained herein. The Company also asks its suppliers and other collaborating partners to sign the “Partner Commitment”, to ensure that business transactions with the suppliers are conducted in a transparent and fair manner, and that annual supplier meetings and occasional SER audits are

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
(IV) To implement relevant policies on ethical conducts, has the company established effective accounting and internal control systems, and had internal auditors made audit plans according to the results of the risk assessment of unethical conduct, so as to inspect the compliance of the preventive measures, or commissioned external CPA to conduct the audit? (V) Does the Company provide internal and external ethical conduct training programs on a regular basis?	✓ ✓		conducted to convey the Company's requirements of the supply chain to the suppliers. (IV)The Company’s internal audit unit formulates relevant audit plans and conducts inspections based on the assessment of risks associated with unethical behaviors. (V)Training and education in 2020 on ethical corporate management Curricula covered insider trading, trade secrets, general information on laws and regulations, communication & networking operational guidelines, and the Company’s information security policies. A total of 12 participants joined for an aggregate of 24 man-hours.
III. Implementation of the Whistleblowing System (I) Has the Company established specific whistle-blowing and reward procedures, accessible reporting channels, and designated personnel to handle the reported misconducts? (II) Has the Companyestablished standard	✓ ✓		(I)The company has established various r misconduct reporting channels, and all reports will be assigned to designated audit personnel and be handled with confidentiality. Employees and related personnel can report any misconducts through this system. Anyone who violates the rules of integrity management will be punished according to the company's regulation regarding rewards and punishments. Shall there be any violations of the law, legal actions will also be taken. (II)The Companyhas established	None

Items Assessed	ImplementationStatus	ImplementationStatus	ImplementationStatus	Deviation from the Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies and reasons for the discrepancies:
	Yes	No	Explanation
operating procedures for investigating misconducts, follow-up measures taken after investigation and confidentiality protection mechanism? (III) Has the Company provided proper whistleblower protection?	✓		a task force for handling and investigation of improper behaviors. The Guidelines Governing Whistleblowing and Reporting Frauds were put in place, to define the confidentiality principles, investigation procedures and measures after completion of investigations. (III) The company clearly defines in the SER Code of Conduct that confidentiality and anonymity will be guaranteed to ensure the confidentiality of the identity of suppliers and employees.
IV. Enhancement of Information Disclosure Does the Company disclose its guidelines on business ethics as well as information about implementation of such guidelines on its website and Market Observation Post System?	✓		External Company website in Chinese and English: (http://www.foxconntech.com.tw)	None
V. If the Company has established integrity management principles in accordance with "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies," please describe its current practices and anydeviations from the Best Practice Principles: None.
VI. Other important information to facilitate better understanding of the Company’s corporate conduct and ethics compliance practices (e.g., review the company’s corporate conduct and ethics policy). For “Principle for Integrity Management” and “CSR Report”, please refer to the Company website: http://www.foxconntech.com.tw/

(VII) If the Company has established corporate governance principles or other relevant guidelines, the channels of access to such principles must be disclosed:

Please refer to the Company’s website for the company’s Corporate Governance Principles.

(VIII) Other important information material to the understanding of corporate

governance within the Company: None.

(IX) Status of Implementation of Internal Control System

1. Statement of internal control system

Foxconn Technology Co., Ltd. Statement of Internal Controls

Date: March 30, 2021

The following statement has been made based on a self-assessment of the Company’s internal control system in 2020:

I. The Company is aware that creation, implementation, and maintenance of internal control system are the responsibilities of its board of directors and management, and has duly established such a system. The purpose of internal control system is to provide reasonable assurances concerning the outcomes and efficiency of the Company’s operations (including profitability, business performance, and asset security), the reliability, timeliness, and transparency of reported information, and compliance and accomplishment of relevant regulations and goals.
II. There are inherent limitations to even the most well designed internal control system. As such, an effective internal control system can only reasonably assure the achievement of the three goals mentioned above. Furthermore, changes in the environment and circumstances may all affect the effectiveness of the internal control system. However, the internal control system of the Company features a self-monitoring mechanism that rectifies any deficiencies immediately upon discovery.
III. The Company evaluates the effectiveness of its internal control system design and execution based on the criteria specified in “Regulations Governing Establishment of Internal Control Systems by Public Companies” (hereinafter referred to as the “Regulations”). The criteria introduced by the “Regulations” consists of five major elements, each representing a different stage of internal control: 1. Control environment, 2. Risk assessment, 3. Control activities, 4. Information and communication, and 5. Monitoring activities. Each major element is further divided into several sub-elements. Please refer to the “Regulations” for the above mentioned elements.
IV. The Company has adopted the abovementioned criteria to validate the effectiveness of its internal control system design and execution.
V. Based on the assessments described above, the Company considers the design and execution of its internal control system to be effective as of December 31, 2020. This system (including the supervision and management of subsidiaries) has provided assurance concerning the Company's business results, target accomplishments, reliability, timeliness, and transparency of reported information, and its compliance with relevant laws.
VI. This statement constitutes part of the Company’s annual report and prospectus, and shall be disclosed to the public. Any illegal misrepresentation or non-disclosure in the public statement above are subject to legal consequences described in Articles 20, 32, 171, and 174 of the Securities and Exchange Act.
VII. This statement was approved by the Company’s Board of Directors on March 30, 2021. All the five attending directors agreed to the contents of this statement above.

Foxconn Technology Co., Ltd.

Chairman: Lee Kuang-Yao

General Manager: Lee Han-Ming

If the Company is required by the Security and Futures Bureau to hire an accountant to audit the Company’s internal control system, the audit report prepared by the CPAs should be disclosed: Not applicable.
(X) In the most recent year up till the printing date of this annual report, penalties imposed against the Company and employees for regulatory violation, or penalties against employees imposed by the Company for violation of internal control policy, which would affect the shareholders’ interests and the share price significantly, if any, shall have the content of the penalties, areas of weakness and any corrective actions taken described: None.
(XI) Major resolutions passed at shareholders’ meetings and board meetings held in the most recent year up till the printing date of this annual report:
1. Resolutions and implementation by all the attending shareholders at the annual

shareholders’ meeting on June 23, 2020:

Resolutions	Execution
Approval of 2019 business report and financial statements	-
Approval of distribution of 2019 earnings	NT$2.5 cash dividends per share issued on August 21, 2020.

2. Important resolutions by the Board of Directors in 2020 and as of April 30, 2021

Date	Major Resolutions
2020.03.30	1.The Company’s 2019 business report and financial statements 2. Decision on the date of 2020 annual shareholders’ meeting and convening matters 3. Approval of the procedures for accepting proposals from shareholders 4. Formulation of the Company’s Guidelines on Performance Reviews of the Board and Functional Committees 5. Amendment of the Rules and Regulations of Board Meetings 6. Amendment of the Audit Committee's organizational procedures 7. Amendment of the Compensation Committee’s organizational procedures 8. Amendment of the Corporate Governance Practical Principles 9. Amendment of the Corporate Social Responsibility Principles 10. Drafting of 2019 statement of internal control. 11. The plan to appoint PricewaterhouseCoopers Taiwan to audit the 2020 financial report; assessment of external auditors’ independence; and audit fees 12. Ratification of distribution of the distribution of remuneration to managers and employees for 2018 13. Ratification of the year-end bonuses and performance bonuses to managers for 2019
2020.05.13	1. Planning of the distribution of remuneration to employees for 2019 2. Planning of the distribution of 2019 earnings 3. Distribution of 2019 earnings via cash dividends
2020.06.24	Election of Chairman
2020.08.12	Ratification of the change of head of internal audit
2020.11.12	1. Proposed to apply for the relevant credit line from the financial institution and sign related contracts, to meet the needs of operating turnover and interest rate risk management. 2. Ratification of the use of bank facilities to issue guarantees for customs duties and authorization of Chairman to pre-approve the amount of such guarantees below a certain threshold 3. Amendment of the internal control system 4. Formulation of 2021 annual audit plan 5. Ratification of the distribution of remuneration to managers and employees for 2019 6. Amendment of the Regulations Governing Salaries, Compensations and Remunerations to Managers 7. Amendment of the Company’s Self-Assessment Questionnaire on Performance Review of the Board; Self-Assessment Questionnaire on Performance Review of Directors; Self-Assessment Questionnaire on Performance Review of the Audit Committee; and Self-Assessment Questionnaire on Performance Review of the Compensation Committee

Date
2021.03.30
2021.04.27

Major Resolutions

1. 2020 business report and financial statements
2. Planning of the distribution of remuneration to employees for 2020
3. Planning of the distribution of 2020 earnings
4. Amendment of the Articles of Incorporation
5. Decision on the date of 2021 annual shareholders’ meeting and convening
matters
6. Approval of the procedures for accepting proposals from shareholders
7. Release of restrictions on the prohibition of directors’ participation in competing
businesses
8. Drafting of 2020 statement of internal control.
9. The plan to appoint PricewaterhouseCoopers Taiwan to audit the 2021 financial
report; assessment of external auditors’ independence; and audit fees
10. Ratification of the year-end bonuses and performance bonuses to managers for
2020

Proposal of remuneration for new appointment of Assistant Vice President Lee
Kuang-Yao

(XII) Written opinions or declarations made by Directors or Supervisors against board resolutions in the most recent year, up till the printing date of this annual report: None.
(XIII) Resignations and dismissals of Chairperson, General Manager, Chief Accounting Officer, Chief Financial Officer, Chief Internal Auditor, Corporate Governance Officer, and R&D heads during the most recent year and as of the print date of the annual report

Title	Name	On-board Date	Date of Resignation or Dismissal	Summary of Resignation or Dismissal
Head of internal audit	Chun-Hao Chang	January 18, 2006	June 5, 2020	Resination for personal career planning

III. Audit Fees

(I) Range of Audit Fees

Name of accounting firm	Name of accounting firm	Name of CPA	Name of CPA	Name of CPA	Audit period	Audit period	Remarks	Remarks
PricewaterhouseCoopers Taiwan		Min-Chuan Feng	Han-Chi Wu		Year 2020		-
							Unit: NTDthousand
Range		Fee category		Audit fees		Non-Audit fees		Total
1	Less than NT$2,000thousand					✓		✓
2	NT$2,000thousand(incl.) ~ NT$4,000thousand
3	NT$4,000thousand(incl.) ~ NT$6,000thousand			✓				✓
4	NT$6,000thousand(incl.) ~ NT$8,000thousand
5	NT$8,000thousand(incl.) ~ NT$10,000thousand
6	NT$10,000thousandand above

Unit: NTD thousand

==> picture [454 x 85] intentionally omitted <==

----- Start of picture text -----

Non-Audit fees
Name of accounting Name of Audit CPA audit
firm CPA fees System Commercial Human Other Subtotal period
design registration resources (Note)
Min-
Chuan
PricewaterhouseCoopers 2020.01.01~
Feng; 4,730 - - - 740 740
Taiwan 2020.12.31
Han-Chi
Wu
----- End of picture text -----

Note: “Others” comprises of NT$550,000 audit fees for transfer pricing; NT$150,000 for master files and country-by-country reports; and NT$40,000 for tax filing by dual-status business entities.

(II) Non-audit remuneration to external auditors, accounting firms and related businesses that amount to one-quarter or higher of audit remuneration: Not applicable.
(III) If there is a reduction of audit fees paid compared to that in the previous year due to change of accounting firms, the amount of fees reduced, percentage, and reason shall be disclosed: None.
(IV) If the audit fees paid is less than 10% of that in the previous year, the amount of fees reduced, percentage, and reason shall be disclosed: None.

IV. Change of auditors

(I) About the predecessor auditors：none
(II) About the successor auditors: none
(III) Reply of former CPAs: None.
V. Any of the Company’s Chairman, General Manager, or managers responsible for financial or accounting affairs being employed by the auditor’s firm or any of its affiliated Company in the most recent year: None.

VI. Share transfers and change in shares pledges by directors, managers and shareholders with at least 10% stakes

(I) Changes in Equity

Unit: Shares

Title	Name	Year	2020	As of April 30	of currentyear
		Net increase (decrease) in shares held	Net increase (decrease) in shares pledged	Net increase (decrease) in shares held	Net increase (decrease) in shares pledged
Director	Hyield Venture Capital Co.,Ltd.	0	0	0	0
	Representative: Lee Kuang-Yao	0	0	0	0
Director	Hyield Venture Capital Co.,Ltd.	0	0	0	0
	Representative: HungChih-Chien	0	0	0	0
Director	Caixin International Investment Ltd.	0	0	0	0
	Representative: Lee Han-Ming	0	0	0	0
Director	Caixin International Investment Ltd.	0	0	0	0
	Representative: Lee Xue-Kun	0	0	0	0
Independent Director	Lin Song-Shu	0	0	0	0
Independent Director	Chen Yao-Ching	0	0	0	0
Independent Director	Yu Hsiang-Tun	0	0	0	0
President	Lee Han-Ming	0	0	0	0
Accounting Director	Lan Yuan-Wen	0	0	0	0
Financial Director	Tzu-Hung Li		0	0	0

(II) Share transfers: There was no share transfers between related parties.

(III) Information on equity pledge: The counterparties of share pledges are not related parties.

VII. Relations among top ten shareholders:

							April 25,2021unit: shares	April 25,2021unit: shares	April 25,2021unit: shares
Name	Shareholding		Shares Held	by Spouse & Minors	Total shares	held in the name of others	Names of spouse or other relatives within two degrees of consanguinity who are also among the Company’s top10 largest shareholders		Remarks
	Number	Percentage of Shareholding	Number	Percentage of Shareholding	Number	Percentage of Shareholding	Name	Relationship
Hon Hai Precision Industry Co., Ltd. Responsible person: Liu Yang-Wei	139,725,801	9.87%	0	0.00%	0	0.00%	BaoXin International Investment Co., Ltd. Hyield Venture Capital Co., Ltd. HongYuan International Investment Co., Ltd HongQi International Investment Co., Ltd.	Investors whose investment is under equity method	－
	0	0.00%	0	0.00%	0	0.00%
BaoXin International Investment Co., Ltd. Responsible person: Huang Te-Tsai	126,181,274	8.92%	0	0.00%	0	0.00%	HongYuan International Investment Co., Ltd HongQi International Investment Co., Ltd.; Hyield Venture Capital	Chairman Same as above	－
	0	0.00%	0	0.00%	0	0.00%
Hyield Venture Capital Co.,Ltd.	85,003,766	6.00%	0	0.00%	0	0.00%	None	None	－
Hyield Venture Capital Co., Ltd. Representatives: Lee Kuang-Yao,Hung Chih- Chien	12,562	0.00%	0	0.00%	0	0.00%	None	None	－
XinSheng Investment Co.,Ltd.	67,896,000	4.80%	0	0.00%	0	0.00%	None	None	－
HongYuan International Investment Co. Ltd Responsible person: Huang Te-Tsai	34,139,368	2.41%	0	0.00%	0	0.00%	BaoXin International Investment Co., Ltd. HongQi International Investment Co., Ltd.; Hyield Venture Capital Co.,Ltd.	Chairman Same as above	－
	0	0.00%	0	0.00%	0	0.00%
HongQi International Investment Co., Ltd. Responsible person: Huang Te-Tsai	31,870,165	2.25%	0	0.00%	0	0.00%	HongYuan International Investment Co., Ltd BaoXin International Investment Co., Ltd.; Hyield Venture Capital Co.,Ltd.	Chairman Same as above	－
	0	0.00%	0	0.00%	0	0.00%
Standard Chartered Bank as custodian of LGT	16,475,000	1.17%	0	0.00%	0	0.00%	None	None	－
JPMorgan Chase as custodian of Vanguard Emerging Market Stock Index Fund	15,678,663	1.11%	0	0.00%	0	0.00%	None	None	－
JPMorgan Chase Bank as custodian of Vanguard Star Vanguard Total International Stock Index	13,891,233	0.98%	0	0.00%	0	0.00%	None	None	－
XianJin International Investment Co.,Ltd.	10,222,000	0.72%	0	0.00%	0	0.00%	None	None	－

VIII. Aggregated shareholding %	VIII. Aggregated shareholding %	VIII. Aggregated shareholding %			March 31, 2021; unit 1,000 shares	March 31, 2021; unit 1,000 shares
Affiliated Enterprise	Ownership by	the Company	Ownership by Directors, Supervisors, Managerial officers, and directly/indirectly owned subsidiaries		Total Ownership
	Shares	% of Shareholding	Shares	% of Shareholding	Shares	% of Shareholding
Foxconn Precision Components Holding Co., Ltd.	135,840	100%	-	-	135,840	100%
Q-Run Holdings Ltd.	480,078	100%	-	-	480,078	100%
IDG Energy Investment Group., Ltd			297,000	21.55%	297,000	21.55%
FSK Holding., Ltd			Not applicable (Note 1)	21%	Not applicable (Note 1)	21%
Hua-Zhun Investment Co., Ltd.	125,478	100%	-	-	125,478	100%
Syntrend Creative park Co., Ltd	49,032	20%	-	-	49,032	20%

Note 1: Not applicable. As it is not a company limited, it did not issue stock. The investment by Foxconn Technology Co., Ltd. is presented in proportion to its equity held.

Note 2: Only the investment made by Foxconn Technology Co., Ltd. using the equity method and the affiliates controlled directly or indirectly are disclosed.

Four. Fund Raising

I. Capital and Shares

(I) Capital and Shares

				Unit:Thousand shares
Share categories		Authorized capital
	Outstanding shares (public listed)	Unissued shares	Shares retained for employee share warrants or convertible bonds withwarrants	Total
Registered Common Shares	1,414,485	35,515	50,000	1,500,000

(II) Sources of Capital

Unit: Thousand shares / NTD thousand

Year Month	Issue price (NTD)	Authorized capital	Authorized capital	Paid-in capital	Paid-in capital	Remark	s	s
		Number	Amount	Number	Amount	Source of capital (NTD thousand)	Paid-in properties other than cash	Others
1990.4	－	2,500	25,000	2,500	25,000	Establishment	None	－
1990.9	－	4,000	40,000	4,000	40,000	Capital increase from cash 15,000	None	－
1992.6	－	10,000	100,000	10,000	100,000	Capital increase from cash 60,000	None	－
1994.5	10 10	30,000	300,000	30,000	300,000	Capital increase from cash 120,000 Capital increase from surplus 80,000	None	Note 1
1995.5	20 10	43,600	436,000	43,600	436,000	Capital increase from cash 40,000 Capital increase from surplus 96,000	None	Note 2
1996.8	10	100,000	1,000,000	59,672	596,720	Capital increase from surplus 121,480 Capital increase from capital reserve 39,240	None	Note 3
1997.6	35	100,000	1,000,000	74,672	746,720	Capital increase from cash 150,000	None	Note 4
1997.7	10	100,000	1,000,000	87,775	877,750	Capital increase from surplus 131,030	None	Note 5
1998.12	21	200,000	2,000,000	145,700	1,457,000	Capital increase from cash 579,250	None	Notes 6 and 8
2002.2	20	250,000	2,500,000	212,500	2,125,000	Capital increase from cash 668,000	None	Notes 7 and 8
2002.9	10	500,000	5,000,000	224,049	2,240,499	Capital increase from surplus 115,499	None	Note 9
2003.9	10	500,000	5,000,000	248,400	2,484,000	Capital increase from surplus 243,501	None	Note 10
2004.4	10	700,000	7,000,000	458,876	4,568,760	Capital increase from acquisition 2,084,760	None	Note 11
2004.9	10	700,000	7,000,000	506,500	5,065,000	Capital increase from surplus 496,240	None	Note 12
2005.9	10	900,000	9,000,000	562,135	5,621,350	Capital increase from surplus 556,350	None	Note 13
2006.9	10	900,000	9,000,000	653,787	6,537,873	Capital increase from surplus 916,523	None	Note 14
2007.9	10	900,000	9,000,000	758,955	7,589,553	Capital increase from surplus 1,051,680	None	Note 15
2008.10	10	1,000,000	10,000,000	847,901	8,479,009	Capital increase from surplus 889,455	None	Note 16
2009.8	10	1,100,000	11,000,000	972,041	9,720,409	Capital increase from surplus 1,241,400	None	Note 17
2010.9	10	1,250,000	12,500,000	1,112,990	11,129,902	Capital increase from surplus 1,409,493	None	Note 18
2011.8	10	1,500,000	15,000,000	1,172,720	11,727,200	Capital increase from surplus 597,298	None	Note 19
2012.8	10	1,500,000	15,000,000	1,237,016	12,370,159	Capital increase from surplus 642,959	None	Note 20
2013.7	10	1,500,000	15,000,000	1,306,490	13,064,902	Capital increase from surplus 694,742	None	Note 21
2014.7	10	1,500,000	15,000,000	1,376,726	13,767,258	Capital increase from surplus 702,356	None	Note 22
2015.9	10	1,500,000	15,000,000	1,395,024	13,950,240	Capital increase from surplus 182,982	None	Note 23
2016.7	10	1,500,000	15,000,000	1,414,485	14,144,852	Capital increase from surplus 194,612	None	Note 24

Note 1: Approved by FSC August 29, 1994 (83), TCZ(I) No. 31973

Note 2: Approved by FSC May 5, 1995 (84), TCZ(I) No. 23841

Note 3: Approved by FSC May 10, 1996 (85), TCZ(I) No. 30388

Note 4: Approved by FSC March 14, 1997 (86), TCZ(I) No. 20306

Note 5: Approved by FSC June 3, 1997 (86), TCZ(I) No. 43820

Note 6: Approved by FSC October 27, 1998 (87), TCZ(I) No. 53727; with restrictions on listing or trading

Note 7: FSC October 31, 2001 (90), TCZ(I) No. 162346; with restrictions on listing or trading

Note 8: FSC May 23, 2002 (91), TCZ(I) No. 125626; lifting of the restrictions in 1998 and 2001 on listing or trading

Note 9: Approved by FSC July 19, 2002 (91), TCZ(I) No. 0910140539 Note 10: Approved by FSC July 16, 2003 (92), TCZ(I) No. 0920132018 Note 11: Approved by FSC January 7, 2004 (93), TCZ(I) No. 0920161216 Note 12: Approved by FSC September 16, 2004 (93), TCZ(I) No. 09301177690 Note 13: Approved by FSC July 22, 2005 (94), JGZYZ No. 0940129818 Note 14: Approved by FSC July 11, 2006 (95), JGZYZ No. 0950129698 Note 15: Approved by FSC July 5, 2007 (96), JGZYZ No. 0960034305 Note 16: Approved by FSC June 30, 2008 (97), JGZYZ No. 0970032406 Note 17: Approved by FSC June 23, 2009 (98), JGZFZ No. 0980031085 Note 18: Approved by FSC July 1, 2010 (99), JGZFZ No. 0990034119 Note 19: Approved by FSC June 23, 2011 (100), JGZFZ No. 1000028745 Note 20: Approved by FSC July 5, 2012 (101), JGZFZ No. 1010029787 Note 21: Approved by FSC July 11, 2013 (102), JGZFZ No. 1020027015 Note 22: Approved by FSC July 17, 2014 (103), JGZFZ No. 1030027391 Note 23: Approved by FSC July 24, 2015 (104), JGZFZ No. 1040028127 Note 24: Declaration approved on July 27, 2016 by the FSC.

(III) Information relevant to the aggregate reporting policy: None.

(IV) Shareholder Structure

						April 25,2021 Total 165,798 1,414,485,192 100.00%
Shareholder Structure Quantity	Government agencies	Financial institutions	Others institutional investors	Foreign institutions and individuals	Individuals	Total
Number of Shareholders	6	39	213	676	164,864	165,798
Shareholding	7,330,108	28,319,994	507,356,402	265,574,939	605,903,749	1,414,485,192
Percentage of Shareholding	0.52%	2.00%	35.87%	18.77%	42.84%	100.00%

(V) Shareholding Distribution Status

1. Distribution of common shares

			April 25,2021 Holding Percentage (%) 0.45% 15.04% 7.81% 3.60% 2.87% 3.21% 1.87% 1.53% 3.70% 2.42% 2.39% 1.45% 1.18% 1.09% 51.39% 100.00%
Shareholding	Number of Shareholders	Total Shares Held	Holding Percentage (%)
1 to 999	35,981	6,412,115	0.45%
1,000 to 5,000	104,823	212,672,805	15.04%
5,001 to 10,000	14,422	110,431,533	7.81%
10,001 to 15,000	4,075	50,958,256	3.60%
15,001 to 20,000	2,204	40,523,870	2.87%
20,001 to 30,000	1,798	45,400,694	3.21%
30,001 to 40,000	746	26,418,451	1.87%
40,001 to 50,000	467	21,627,543	1.53%
50,001 to 100,000	747	52,266,743	3.70%
100,001 to 200,000	246	34,193,432	2.42%
200,001 to 400,000	125	33,735,390	2.39%
400,001 to 600,000	43	20,615,887	1.45%
600,001 to 800,000	24	16,740,806	1.18%
800,001 to 1,000,000	17	15,525,867	1.09%
1,000,001 and above	80	726,961,800	51.39%
Total	165,798	1,414,485,192	100.00%

Distribution of preferred stocks: The Company does not issue preferred stocks.

(VI) List of major shareholders

(VI) List of major shareholders
	April 25,2021
Shares Name of major shareholders	Shares Held (Shares)	Holding Percentage (%)
Hon Hai Precision Industry Co., Ltd.	139,725,801	9.87%
BaoXin International Investment Co., Ltd.	126,181,274	8.92%
Hyield Venture Capital Co., Ltd.	85,003,766	6.00%
XinSheng Investment Co., Ltd.	67,896,000	4.80%
HongYuan International Investment Co. Ltd	34,139,368	2.41%
HongQi International Investment Co., Ltd.	31,870,165	2.25%
Standard Chartered Bank as custodian of LGT	16,475,000	1.17%
JPMorgan Chase as custodian of Vanguard Emerging Market Stock Index Fund	15,678,663	1.11%
JPMorgan Chase Bank as custodian of Vanguard Star Vanguard Total InternationalStock Index	13,891,233	0.98%
XianJin International Investment Co., Ltd.	10,222,000	0.72%

(VII) Information on Market Price, Book Value, Earnings Per Share and Dividends

Items	Year	Year	2019	2020	As of March 31 of current year
Market price per share	Highest		75.1	67.0	79.6
	Lowest		57.5	45.85	53.9
	Average		64.14	54.77	72.44
Equity per share	Before distribution		76.79	77.99	85.49
	After distribution		74.29	76.19	-
Earnings per share	Weighted-average shares(thousand shares)		1,414,485	1,414,485	1,414,485
		Earningsper share(NTD)	5.04	3.34	0.7
Dividends per share		Cash dividends	2.5	1.8	-
	Stock dividen ds	From earnings	-	-	-
		From capital surplus	None	None	-
	Cumulative undistributed dividends		None	None	-
Investmen t return analysis	P/E ratio		12.73	16.40	-
	Price-dividend ratio		25.66	30.43	-
	Cash dividendyield		3.90%	3.29%	-

(VIII) Dividend Policy and Execution Status

1. Dividend policy:

The Company is in a growing stage. Therefore, the Company’s dividend distribution policy is subject to the Company’s current and future investment environment, capital requirements, domestic and foreign competition, capital budgets and other factors, taking into account the interests of shareholders and long-term financial planning considerations, stock dividends on the accumulated allocable earnings should not be less than 15% of the accumulated allocable earnings and cash dividends of not less than 10%.

2. Distribution of dividends

According to Article 18-1 of the Company’s Articles of Incorporation, the issuance of cash

dividends requires the convening of a board meeting with at least two thirds of directors attending and approval from at least half of the attending directors.

The Board of Directors on March 30, 2021 decided to distribute from 2020 earnings available for distribution a total of NT$2,546,073,346 as dividends to shareholders. This translates to NT$1.8 cash dividends per share. Chairman is authorized to determine the ex-dividend day, issuance date and other relevant matters.

(IX) Impact of stock dividends on Company’s operating performance, EPS and ROE: Not Applicable.
(X) Remuneration to employees and Directors
Information on limit or percentage of remuneration to employees, directors, and supervisors, as set forth in the Company’s Articles of Incorporation: According the Articles of Incorporation adopted by the Board, 4-6% of the company profit
- (Surplus refers to profit before tax deducted appropriated employee compensation) is to set aside for employee remuneration.
The estimation basis of the remuneration amount to employees, directors, and supervisors for the current period; the estimation basis of the number of shares of stock dividend to employees; and the the accounting treatment of the discrepancy, if any, between the actual distributed amount of employees’ stock bonus and estimated figure thereof:
- (1) The Board of Directors on March 30, 2021 decided the distribution of remuneration in cash to employees for 2020 with based on 4% of the 2020 profits.
- (2) Where there is discrepancy between the actually distributed and the estimated amount, it shall be treated in accordance with the estimates.
Remuneration resolved by the board of directors:
- (1) Plan to distribute remuneration in cash to employees.
- (2) In circumstances where there is a difference between the actual distributed and recognized amount, the difference, reasons and handling of such matter shall be stated as followed: There is no difference between the actual distributed amount and the recognized amount.
Actual distribution of remuneration to employees and Directors in the previous fiscal year.

(1) Actual distribution:

r. al distribution:	r. al distribution:	r. al distribution:
			Unit: NTD; shares
Remuneration to employees			Directors' remuneration
Amount of employee stock dividends	Number of shares of the employee stockdividends	Employee cash dividends
0	0	325,134,590	0

(2) In circumstances where any differences between the actual distributed and recognized amount,
the difference, reasons and handling of such matter shall be stated as follows:
There is no difference between the actual distributed amount and the recognized amount.

(XI) Share repurchases: None

II. Corporate Bonds

(I) Corporate Bonds: None
(II) Convertible Corporate Bonds: None
(III) Exchangeable Corporate Bonds: None
(IV) Shelf Registration Statement for Issuing Corporate Bonds: None
(V) Corporate Bonds: None.
III. Preferred Shares (with Warrants): None.
IV. Global Depository Receipts (GDRs): None.
V. Subscription of Warrants for Employee: None.
VI. Names of Managers holding Warrants for Employee and Top 10 Employees in Terms of Acquisition and Subscription of Warrants: None
VII. Employee Restricted Stock Plans: None.
VIII. Names of Managers holding New Shares for Employee Restricted Stocks and Top 10 Employee in terms of Subscription of the New Shares, and the Acquisition Status: None.
IX. Issuance of New Shares Regarding to Acquisitions of the Other Companies:
- (I) Issuance of new shares to merge with or acquire other companies in the most recent fiscal year and the current year as of the printing date of this annual report:
  1. The assessment opinions of the lead securities underwriter concerning the issuance of new shares to merge with or acquire other companies in the most recent quarter: None.
  2. The implementation status of the past quarter. If the progress or benefit of such implementation does not meet the targets, its impact on shareholders’ equity and an improvement plan shall be specified: None.
- (II) Issuance of new shares that has been approved at the board meeting to merge with or acquire other companies in the most recent fiscal

year and the current year as of the printing date of this annual report: None.

X. Implementation of Fund Utilization Plans:

The Company has no uncompleted issuance plans or completed plans with unrealized benefits in the last three years of the issuance or private placement of securities.

Five. Operating Highlights

I. Business Activities:

(I) Business scope:

1. Major content of business activities

Manufacturing, processing and sales of televisions, fax machines, video recorders, audio and related components.
Manufacturing, processing and sales of computer terminals, computers, monitors, electronic computers and peripheral device, power supplies and related components.
The development, design, manufacture and sale of uninterrupted power supply system and equipment.
The development, design, manufacture and sale of telephone and communication equipment.
Import and export trade business of the products listed above.
Agenting for the distribution, quotation and bidding of domestic and foreign manufacturers’ products.
G801010 Warehousing and Storage
CC01080 Electronics Components Manufacturing
C805050 Industrial plastic products manufacturing.
CC01010 Electric Power Supply, Electric Transmission and Power Distribution Machinery Manufacturing
C801010 Basic Chemical Industrial
CA02990 Other Metal Products Manufacturing (Metal Computer Casings)
I301010 Information Software Services
I301020 Data Processing Services
I301030 Electronic Information Supply Services
C805030 Plastic Daily Necessities Manufacturing
ZZ99999 All business items that are not prohibited or restricted by law, except those that are subject to special approval.

2. Operational proportion:

The business operation is mainly on 3C electronic devices. Please refer to the Production and Sales Table for the output and sales volumes in the most recent two years.

3. Current product items:

(1) Production and sales of metal mechanical parts for a diversity of mobile phones, computers and consumer electronics.
(2) Production and sales of metal parts and mechanical parts for automobiles and electric vehicles.
(3) Production and sales of thermal modules for a diversity of mobile phones, computers, servers and game consoles.
(4) Production and sales of MIM related products.

(5) System assembly and sale of consumer electronics products.

4. New products to be developed:

(1) Metal mechanical parts
Surface treatment technology: precision anodic treatment; multi-layer anodic treatment; special micro arc oxidation treatment; a variety of coating technologies; high gloss metallic effects and ultra-thin film coatings development
R&D in a range of materials：zinc-aluminum alloys; graphene; carbon fiber; special stainless steel and other composite materials
Development of production processing technologies: precision machinery processing; stir welding; friction welding; aluminum deep drawing; heterogeneous welding; precision friction welding; and laser engravingetc.
(2) Heat dissipation products: one-piece cold plates; high thermal density heat pipes; cooling vapor chambers; weldless processing; loop heat pipes (LHPs); graphene heat dissipation products and ultra-thin heat pipes

(II) Industry overview:

1. Industry overview and its development

(1) Metal mechanical parts

Metal mechanical parts are required for any structure that needs to be strengthened or any structure that aims to be light and compact. It is not easy for the general public to be aware of the existence of internal mechanical parts, but the presence of external mechanical parts is easy to see. The description below provides a snapshot of the industry’s current status:

1.The industry consolidation is ongoing. Few Taiwanese companies have sold their facilities to Chinese companies this year and this trend is likely to continue this year. Therefore, the competition from the red supply chain may intensify.
2.Metal mechanical parts for smartphones have been the bright spot for the industry. However, the demand for notebooks went up dramatically due to home working in the pandemic. This also pushed up the demand for metal mechanical parts used in notebook. This phenomenon is expected to last another while.
3.That said, the unit price of metal mechanical parts are not rising much for the time being given the difficulty of price hikes for end products.
4.The applications have been gradually expanded from mobile phones and computers to wearables and electric vehicles.
5.In conclusion, there is a growing variety of applications, evidenced by the
development of material utilization, surface treatment and production technology.

(2) Thermal modules

When the growth stagnated or even declined for the desktop computer and notebook segments, the thermal module industry relied heavily on the mobile phone market to maintain growth. However, the coronavirus outbreak starting in early 2020 disrupted the pattern for all industries. The demand for mobile phones evaporated amid lockdowns

around the world and some interesting developments emerged.

People had to work from home, study from home, and shop from home due to lockdowns. The demand for notebooks and servers jumped and became the main support for the thermal dissipation market starting in the second quarter.
The demand for notebook cooling pads pushed up not only the volume but also unit prices. This contributed to the increase of the average selling prices of the thermal dissipation industry. The rising of volumes and prices at the same time is indeed a rare prosperity.
COVID-19 wreaked havoc here and there and caused lockdowns all over the world. The regions with good control of the virus became the production hubs for the world. This accelerated the trend of large players becoming larger and speeded up industry consolidation by squeezing small players.
Due to complexity in manufacturing process of notebook cooling pads, the red supply chain still cannot compete with Taiwanese companies. As a result, Taiwanese suppliers have been the beneficiary of the demand during the pandemic.
COVID-19 increased the demand for ecommerce and thus the demand for servers and thermal modules. This has been a boost to thermal module makers from Taiwan.
The stay-at-home economy drives the demand for e-sports gaming notebooks. The pursuit of high efficiency, high speed and high image quality boosts the demand for thermal dissipation. The number of heat pipes required is also on the rise.
(3) Game consoles

For years, industry experts have been bearish about the future of game consoles, for a number of reasons: (1) The popularity of e-sports has been squeezing the development of game consoles. (2) The growing penetration of mobile games has been eroding the market of game consoles. (3) Population aging and low birth rates are negatives to he game console industry. (4) The rising development cost and hence longer recovery periods increase the risk for game console companies. Despite a long list of reasons for experts to be bearish, the game console industry has been standing steady.

The stay-at-home economy during the 2020 pandemic has greatly benefited the game console industry. Lockdowns caused disruption to the supply of certain components, but this only postponed the demand. Once the production and the supply chain recovered, the pent-up demand exceeded the supply - a phenomenon well covered in media around the world. Another reason for the ballooning demand is the launch of new consoles. As the waiting cycle for buyers becomes longer, we have reasons to be optimistic about the game console industry today and tomorrow.

(1) The market positioning of game console is different from that of e-sports or mobile games and therefore, customer segments are not necessarily overlapped. The game console industry has a regular customer base.
(2) The stay-at-home economy shows us that game consoles are for family entertainment, not the same as other consumer electronics for individual users.
(3) Some games are sharable; others are not for sharing. When the whole family stays at home during the pandemic, game consoles game consoles provide shared entertainment for family members. This shareability makes game consoles

distinctively different from e-sports and mobile games.

COVID-19 has hit many industries, but the game console industry benefited from the pandemic. The industry has demonstrated its resilience. The production positioning and characteristics underpin the industry’s confidence in its long-term development. Therefore, we have reasons to believe that the game console industry should be able to co-exist with the e-sports and the mobile game industry for a long time.

2. The upper, middle and lower streams of the industry

【Manufacture of aluminum extrusion thermal products】

==> picture [443 x 314] intentionally omitted <==

----- Start of picture text -----

Upper stream middle stream lower stream
Stamping
Coloring treatment
Fan
Fixing device heat dissipaters System supplier
Aluminum extrusion Processing to length Cross-cutting
Cleaning treatment Heat-conducting medium
Aluminum extrusion heat dissipation device
Anodizing
CNC processing
----- End of picture text -----

【Processing and manufacture of metal casing】

Upper stream middle stream lower stream

==> picture [360 x 119] intentionally omitted <==

----- Start of picture text -----

Magnesium ingots, Die casting/extrusion 3C products
magnesium granular and others Automobile Industry
balls, Precision processing Machine tool industry
recycled magnesium, Lapping Bicycle industry
aluminum ingots, Conversion coating Raised floor
recycled aluminum, Coating Internet of things
stainless steel, other Quality control
metals
----- End of picture text -----

【Manufacture of welding thermal products】

Upper stream Middle stream

Lower stream

==> picture [389 x 263] intentionally omitted <==

----- Start of picture text -----

plating
Stamping sole plate
Aluminum plate
Cleaning of nickel
Fan
plating device
Stamping
Aluminium strip Cleaning of nickel Cooling fins Fixing device heat dissipaters System supplier
Welding heat dissipation Heat-conducting medium
Heat pipe
----- End of picture text -----

【System assembly of consumer electronics products (game consoles)】

==> picture [372 x 126] intentionally omitted <==

----- Start of picture text -----

Upper stream Middle stream Lower stream
Microprocessor
Plastic, rubber industry Plastic material
Steel, metal industry Sheet metal
Electronic industry Small LCD
Electrical wire, cable Motor Branded manufacturer
industry Printed circuit board
Electronic parts and
components
Electrical wire
----- End of picture text -----

3. Development trend and competition of products

(1) Metal mechanical parts
A. Development trend of products
- a. Mix-and-match design: The trend of mixing up different materials with a variety of metals continues.

b. Mechanical parts fragmentation: In the era of 5G, fragmentation of mechanical parts is required to meet the structural need for multiple antennas. This means higher the technical standard for the precision and density of metal parts and mechanical components.

c. Diversity of materials: In addition to traditional materials such as magnesium alloys, aluminum alloys and stainless steel, carbon fibers, titanium and composite materials are starting to emerge.

d. Expanding footprint from consumer electronics domain: In addition to maintaining a foothold in consumer electronics, all the industry players are moving into electric vehicles, medicare, robots and artificial intelligence.

B. Metal case product competition
a.Competitive landscape this year: It will remain an oligopolistic market, with key players

from Taiwan and few from the U.S. However, the ownership change with our

competitors this year will alter the competitive dynamics going forward.

b. Competitive landscape in the future: Our main competitors are as follows:

Competitors	Competitions	Remarks
Catcher Technology Co.,Ltd.	Magnuminium alloy, aluminum-magnesium alloy, 3C parts and components,metalcasing	Listed entity
Casetek Holdings Limited.	Magnuminium alloy, aluminum-magnesium alloy, 3C parts and components,metalcasing	Listed entity
Waffer Technology Corp.	magnuminium alloy, aluminum-magnesium alloy, automobile metal parts	Listed entity
Jabil	Aluminum-magnesium alloy, 3C parts and components, metal casing	Listed companies in the U.S.

However, Catcher Technology sold its facilities in Taizhou to the Chinese company

Lens Technology this year and this allowed the red supply chain to enter the metal

mechanical parts industry and changed the competitive environment. Pegatron Corporation plans to delist its subsidiary Casetek Holdings by acquiring all the outstanding shares in the first quarter of 2021. As this move is to prepare for future competition, its development is worth watching.

(2) Thermal modules
A. Development trend of products
a. End markets: Driven by working and learning from home and cloud computing during the pandemic, the demand for heat dissipation in notebooks and servers is expected to exceed the supply in the short-to-mid-term. Over the long run, the growth drivers will come from electric vehicles, healthcare, robots, 5G and AI where heat dissipation is required for high speed computing. This is also where the industry players are focusing on.
b. Product trends: The development of thin and highly efficient products is all the rage.

The demand for thermal plates and heat pipes is rising rapidly.

c.Materials: The mixing and matching of materials continues. The application of

graphene as a new material is an evident trend.

B. Thermal modules
a. Close to a perfect competition: There are a large number of players in the heat dissipation market. Whilst the market is not in a perfect competition, the price competition is fierce.
b. Continuing industry consolidation: Due to intense competition, some companies seek to gain strengths and reduce pressure for management with M&A activities.
c. Difficulty in mass production: Given the large variety of customized products, it is not easy to reduce costs through mass production. This is the reason why manufacturers are able to maintain relatively good gross margins.
d. Development directions: Electric vehicles, high speed computing, handheld devices and 5G are the trends and development directions for the heat dissipation industry going forward.
e. The Company’s main competitors

Products	Competitors
Thermal modules	Asia Vita Components, Auras Technology, Chaun-Choung Technology, Forcecon Tech.
Fan	Asia Vita Components, Sunonwealth Electric Machine Industry , Nidec, NMB, ADDA Corp., Forcecon Tech.
Heat pipe	Asia Vita Components, Yeh-Chiang Technology Corp., Chaun- Choung Technology, Fujikura

(III) Summary of Technology and R&D;

The R&D expenditures in 2020 totaled NT$1,742,124 thousand or 1.66% of revenues. As of March 31, 2021, R&D expenses totaled NT$468,483 thousand or 2.31% of revenues.

Successfully developed technologies or manufacture process improvements
(1) Friction Stir Welding
(2) Vacuum Die Casting
(3) Micro-Arc-Oxidation
(4) Hydrolic long life recirculation bearing
(5) Physical Vapor Decomposition
(6) PWM circuit design
(7) Thermal product with vapor chamber heat spreader
(8) Liquid Impulse Cooling
(9) Lead Free Soldering Process
(10) Phase Change Material
(11) Multi-color Anodizing
(12) Metal Insert Molding Process
(13) MIM-Metal Injection Molding
(14) Graphene-based composite materials

2. Technical levels

Studies show that more than 50% of the wear-and-tear of electronics products is due to high heat. This explains the constantly increasing demand for heat dissipation. Given the relentless pursuit of high performance for electronics products, it is imperative for the heat dissipation industry to devise ways to enable electronics products to function with better efficiency and for a longer life, in order to reduce waste of resources for the planet earth.

High-speed computing, IoT (Internet-of-Things), autonomous driving and cloud computing all require continuous functioning of electronics products with high performance. The demand for heat dissipation is urgent. The bars are getting higher for heat dissipation products and technologies. The following trends will not change anytime soon: 1) slim, light and compact products 2) Multi-processing continues. Processor power keeps increasing, so does the demand for heat dissipation. 3) The growing acceptance of electric vehicles poses the challenge to the heat dissipation industry, as the operating environment for heat dissipating products moves from the stable indoor to the dynamic outdoor. There is a long list of difficulties to overcome for product design. The thermal module industry needs to enhance the capability in product integration and demonstrate the flexibility in self-adjustment in order to stay ahead of trends, outperform in the competition, and contribute to the green planet by extending product lives and reduce resource consumption.

Thermal modules consist of several key components. The technical requirements for these components are rather high, for example:

a. Heat pipes: This component transfers heat via phase change between liquid and gas in the low pressure environment, to primarily resolves the problem of overly high heat density at single points. Going thinner and dealing with oxidation are the current challenges, mainly to meet the demand for smartphones.
b. Fans: This component involves the consideration for thermal flows, air flows and current flows. Fans are the major source of noise in devices. The challenge ahead for all manufacturers is to use mathematics and technology to resolve the problems of heat dissipation and noise and to make the product thinner.

The resolution of the problems in heat pipes and fans poses a tremendous challenge. However, Foxconn Technology has an abundance of human resources in R&D to rise to the challenge in product design and technology. We also have adequate manufacturing experience to work out the bottleneck in the production process, engineering personnel to meet the requirement for customization, and flexibility in capacity adjustment to cope with the challenge of the pandemic and satisfy the regular and additional orders from customers.

The most significant events in the metal mechanical parts industry was (1) Catcher Technology’s sale of its facilities in Taizhou in 2020; (2) Casetek Holdings’ privatization in the first quarter of 2021. These two events reflect a few technological challenges faced with the metal mechanical parts industry.

a. Whilst a long learning curve prevents new entrants from entering this industry, it also lengths ramp-up timetable and bumps up learning costs for existing players. Any misstep will have material influence on profits and losses.

b. A rate for technological value and equipment depreciation: The metal mechanical parts industry is capital intensive. The volume of required equipment is big and such equipment is costly. Depreciation expenses are a heavy burden. Technological development delay, low yields, slow ramp-ups or product precision problems may be a disastrous blow to business and operation.

c. Too many options for surface treatment technology: Oils are used for the forming process of metal mechanical parts. This causes great difficulty in surface treatment of metal mechanical parts. This is the reason why few companies are able to manage all the treatment technologies. There is prevalent conservatism in the industry because the technology developed may not be accepted by customers. This is negative to the adoption of metal mechanical parts.

We see Catcher Technology’s sale of facilities and the privatization of Casetek

Holdings necessary evils of the industry consolidation. It is the natural selection process of the industry’s evolution. It may not be pleasant, but needs to be dealt with positively. As competitors are becoming “fragmented”, we have reasons to believe that there will be more room for strategic maneuvers to defeat individual competitors. There will also be

flexibility in strategic partnerships vertically and horizontally. This may benefit the development of our group.

(IV) Long- and Short-term business development plans:

Short-term business development plans
(1) Metal mechanical parts
a. Product launches by clients and demand from consumers have been delayed due to the pandemic. Therefore, the restocking of old models, the production of new models, and the inventory buildup for new products will all jammed up from the second half of 2021 to the first half of 2022. The Company will accommodate the requirements from customers by gradually optimizing production schedules and increasing yields. This will satisfy customers’ needs and achieve the best results for the Company.
b. In response to rising demand for notebooks from those who work or study from home, the Company will increase utilization and adjust capacity allocations in a timely manner, in order to boost gross margin via economies of scale and change in the product mix.
c. The outbreak of COVID-19, the signing of the RCEP (Regional Comprehensive Economic Partnership) and the negotiation of the EU-China Comprehensive Investment Agreement will create tremendous and structural change to industry structure and the supply chain. Foxconn Technology will carefully examine the subsequent influence and adjust development plans according and timely.
d. This is the year for 5G takeoff. Foxconn Technology’s clients have all launched their 5G products. To respond to these new 5G products and specifications, the structure of metal components has to change. For example, the installation of multiple antennas will make the structure more fragmented. The Company will research and develop new manufacturing processes and technologies and modify production procedures to address these changes and attract more orders.
(2) Thermal modules
a.The stay-at-home economy during the pandemic has boosted the demand for personal computers and game products. The ensuing demand for heat dissipation products is also going up. Foxconn Technology is proactively planning for business development to capitalize on this opportunity.
b. The demand from smartphones and tablets for heat dissipation products continue to go up. The Company seeks to grasp this business opportunity by investing in R&D activities and developing new products and new technologies, as the market pursues thin, light, and compact products.
(3) Game consoles

a.Our main customers are benefiting from their traction in the China market. We will continue to keep a close eye on the sales of customers in order to win orders and maximize value.
b. The stay-at-home economy driven by the pandemic is creating explosive demand for game consoles. To capitalize on this rare business opportunity, Foxconn Technology is working closely with customers for their requirements and orders.
Long-term business development plans
(1) Metal mechanical parts
a.We will adhere to the group’s 3+3 strategy by developing metal mechanical parts for electric vehicles, robots, and healthcare products, in order to create value by leveraging the group’s resources.
b. With regard to the competitors’ sale of facilities and change pursuing competitors’ privatization, Foxconn Technology believes that competitors divided cannot compete Foxconn Technology united. As long as we march forward steadily and firmly, chances are we will claim victory for the future.
c.We will gradually adjust the allocation of our capacities by staying close to the EMSs working for our customers.
(2) Thermal modules
a. We will adhere to the group’s 3+3 strategy by developing metal mechanical parts for electric vehicles, robots, and healthcare products, in order to create value by leveraging the group’s resources.
b. We continue to consolidate facilities and integrate vertically in order to reduce costs and operating expenses.
c. We seek to develop new clientele and new technology, with new clientele to pave way for future growth and new technology to keep up with product trends.
(3) Game consoles
a.We grow with customers by synchronizing with their product development timetables, to ensure customer satisfaction.
b. As our customers continue to adjust development strategies, we will adjust ours according to respond any possible changes going forward.

II. Production and Market Analysis

(I) Market Analysis

1. Main product sales areas:

Unit: NTD thousand

Product			Sales ar	Sales ar	eas	eas			Total	Total
	USA		China		Japan		Others		Amount	%
	Amount	%	Amount	%	Amount	%	Amount	%
3C products	827,084	0.78	26,392,939	25.19	72,595,317	69.28	4,974,259	4.75	104,789,599	100

2. Market share

A. Metal mechanical parts

There is no market share statistics provided by research institutions. There are close to one hundred procedures for the production of metal mechanical parts but few manufacturers can manage the entire process alone. As many products are the result of collaboration by industry players, it is difficult to estimate market shares with the traditional approach. However, the following facts may shed some light:

(1) Notebooks: Taiwanese manufacturers currently dominate the metal mechanical parts market for notebooks. Chinese companies collectively have only 2~4% market share. U.S. companies in general are not involved much.
(2) Smartphones: Taiwanese manufacturers have the lion’s share in the high-end market. U.S. companies have about 10~15% market share. Feature phones use both plastics and lowend metal components. Plastics are cheaper and hence widely used. In a nutshell, the calculation of market shares for metal mechanical parts is difficult.
(3) Tablets: Taiwanese manufacturers are the major players. Companies from the U.S. and China are less active.

B. Thermal modules

A thermal module consists of key components such as fans, heat pipes, thermal pastes, fins and fasteners. The suppliers for these components are mostly from Japan and Taiwan. Due to a relative small market size, no research firms have calculated the market shares for different players. Given a lack of relevant data, it is only possible to refer to some facts to gauge the whole picture of market share distributions.

(1) Computers: Foxconn Technology is the leader in the desktop segment. The notebook segment is shared by Chaun-Choung Technology, Auras Technology, and Asia Vita Components. However, there are many players in the thermal module market for notebooks, and the price competition is fierce. The change in market shares is rather drastic each year.
(2) Smartphones: There has been an increasing adoption of thermo-uniformity plates, but this is still largely limited to Korean brands and certain high-end models. It is difficult to estimate market shares because not all smartphones use it.
(3) Consumer electronics: There is a large variety of consumer electronics products. The thermal dissipation market for game consoles is dominated by Foxconn Technology from

Taiwan and shared by two to three companies from Japan.

C. Assembly of Game Consoles

Companies from Taiwan and Japan collaborate in the production, manufacturing and assembly.

3. Future market supply and demand and potential growth

A. Metal mechanical parts

Demand and supply outlook -- The supply and demand looks to remain stable for another

period of time, for the following reasons:

a. The competitive landscape is in equilibrium, without new entrants.
b. There has been no significant expansion among existing players either.
c. The demand is relatively weak and capacity utilization is low during the pandemic. There is no need for capacity expansion.

Future growth -- The outlook for the metal mechanical parts market remains bright, for the following reasons:

a. Consumer electronics: Currently, notebooks, smartphones, and other consumer electronics are the end markets for metal mechanical parts. The growth of these end markets were previously slowing down. However, working and studying from home has boosted the growth of the notebook market. 5G is set to create replacement demand for smartphones. In sum, the outlook is bright for the near-medium future.
b. New domains: The manufacturers have been seeking new frontiers over recent years, with the focus on the highly promising electric vehicle market. Governments around the world have been promoting electric vehicles in order to reduce carbon emissions. The growth for the next decade is expected.

B. Thermal modules

Demand and supply outlook -- The demand and supply is relative stable given the market structure, for the following reasons:

a. Thermal modules are customized. Whether mass production is necessary depends on product
design. As a result, imbalance between supply and demand is less likely.
b. Different companies in the thermal module industry focus on different areas, and capacity expansion is typically not a means for competitiveness. This means a relatively stable demand and supply landscape.

Future growth: The market size is huge for thermal modules and the outlook is bright, Many manufacturers are bullish about future prospects and have been raising money in the capital market. The reasons for the bright outlook of the heat dissipation industry are as follows:

a. Electric vehicles, high speed computing and the cloud are all promising end markets because thermal modules at higher unit prices are required to resolve the overheating problem.
b. The demand for thermal modules was pushed by the demand for notebooks and game consoles because of the stay-at-home economy during the pandemic.
c. The replacement demand for electronics products is created by the transition from 4G to 5G. This enhances the underlying demand for thermal modules.

C. Market of Game Consoles

Demand and supply outlook - The demand and supply of the game consoles assembly market is rather stable because of two reasons. First, game consoles are a mature product and the industry structure is highly stable, not conducive to changes. Second, it is down to the practice of Japanese customers. As long as the delivery of price-competitive, high-quality of products is maintained, the long-term customer relations will remain stable.

Future growth - Game consoles are a mature product with limited growth. However, the demand in 2020 was strong due to the stay-at-home economy in the pandemic. Future growth depends on the the development of the end-market for customers.

4. Competitive niche

The year 2020 was full of calamities for the world. The impact of the pandemic was cross the board. Before COVID-19, the global economy was already struggling with the consequence of tariff wars and technology wars. The G2 dynamics have been putting companies in a difficult situation. The overall business environment was challenging amid geopolitical conflicts. The outbreak was not only the last straw but also a sweeping blow. As a result, people’s livelihood was affected. Shops shut their doors and companies closed their businesses. Both the public and the private sectors had to borrow to withstand the crisis. The global economy declined at a magnitude never seen during the past decades. All major economies sank into a recession except China.

It is in a difficult environment and the challenging circumstances that we can better see the resilience and the competitive edge of a company. After careful deliberation, we conclude that Foxconn Technology has certain competitive niches our competitors do not have.

A. Group’s resources: As the most important member of the Hon Hai group, Foxconn Technology can leverage the group’s resources. The flexibility to access relevant resources is something our competitors do not have.
B. Diversity: Foxconn Technology boasts a diversity of clientele, products, and technologies. This diversity effectively reduces Foxconn Technology’s operational risks and boosts the overall flexibility as a competitive edge.
C. Product integration: Foxconn Technology offers metal mechanical parts and thermal modules as two key components. During the past few years, electronics products are becoming thinner, lighter, more compact and aesthetically attractive. To accommodate these requirements, metal mechanical parts and thermal modules are increasingly integrated. This is the competitive edge unique to Foxconn Technology.
D. Capacity allocation capability: Our production sites are in different locations, and hence, our capacity flexibility is unparalleled. This competitive advantage is clearly demonstrated with lockdowns here and there.

5. Positive and negative factors for future growth and strategic responses

A. Positive factors
a. Solid financial structure: Foxconn Technology has a healthy balance sheet. We have been in profits for more than a decade and we generate positive cash flows. Given the high uncertainty in the business environment, a robust financial structure is critical.

b. Positive product trends: The outlook is bright for end markets such as electric vehicles, robots, 5G, and servers. These markets have strong demand over the mid-to-long term for Foxconn Technology’s metal mechanical parts and thermal modules. This is a positive to the Company’s prospect.
c. Industry’s structural evolution: Since the start of 2020, our competitors in metal mechanical parts or thermal modules have been selling facilities, taking their companies private, raising money in the capital market or changing ownership structures. These divisions and equity ownership changes will undermine their competitive strengths and benefit Foxconn Technology’s long-term development.
d. Group’s resources: Foxconn Technology will adhere with the group’s 3+3 strategy by leveraging the group’s resources to develop products for electric vehicles, robots, and healthcare applications, in order to provide one-stop-shopping solutions and services to customers.
e. Management team’s adjustments: Since the beginning of 2020, we have been adjusting our management team, in order to introduce new talents and fresh outlooks and to create long-term growth momentum.

B. Negative factors

a. The adverse impact of the pandemic continues from last year. COVID-19 looks to persist for another while.
b. The opposition between Chin and the U.S. will not only persist, but also intensify. This will continue to have adverse effects on the global technology industry.
c. As our competitors sold facilities to Chinese companies, the red supply chain has found its way to the game.
d. The consumer electronics industry has entered the maturity stage. Future growth will come from emerging domains such as electric vehicles, robots, and IoT (Internet-ofThings).

C. Strategic responses

a. The impact of COVID-19 is long-term and global. It has been a driver of the stay-at-home economy. As Foxconn Technology’s products are used for the stay-at-home economy, we have been adjusting production lines and manpower in order to capitalize on this business opportunity and mitigate the adverse impact of the pandemic.
b. For manufacturers, the influence of the tensions between China and the U.S. is primarily started with the tariff war. We have been leveraging the flexibility of production sites around the world, to counter the negative impact of the tariff war. We are also considering establishing capacities in different regions, to avid the long-term impact of the tariff war.
c. Although the red supply chain has entered the game, it will not create competitive pressure in the short term. Over the long run, the Company adopts two strategic responses: (1) In the domains where we compete, we strive to enhance technology, precision, integration and quality in order to maintain good customer relations and attract orders. 2) In the new domains, we seek new growth drivers for our technology and avoid direct competition.
d. The continued development of new domains for growth is a must for the Company. Therefore, it is essential to step up R&D intensity and develop the technology required for

the new domains. We will adhere with the group’s 3+3 strategy by rapidly entering new end markets such as electric vehicles, robots, 5G and healthcare.

(II) The main purpose and manufacture process of major products

Major product	Main purpose
Metal mechanical parts	5G, IoT (Internet-of-Things), notebooks, mobile phones, tablets, digital single-lens reflex cameras, electric vehicles, robots and other electronics or electric machinery products
Thermal modules	5G, IoT (Internet-of-Things), desktops, notebooks, mobile phones, tablets, servers, workstations, data centers, game consoles, robots, electric vehicles, and other electronics products
Game consoles assembly	For personal and family entertainment

1. Metal mechanical parts production flow:

==> picture [386 x 256] intentionally omitted <==

----- Start of picture text -----

Raw metal materials Manufacture Quality Coating
Control
Die casting Lapping Final Quality Control
Manufacture Quality Manufacture Quality
Control Control Packaging
Machining Conversion coating
Shipment of products
Manufacture Quality
Control
----- End of picture text -----

2. Thermal module production flow:

==> picture [356 x 242] intentionally omitted <==

----- Start of picture text -----

Aluminum extrusion Stamping Fan
Processing to length Coloring Fixing device
Cross-cutting Cleaning
Heat-conducting medium
CNC Anodizing
Shipment of finished heat
dissipater
Welding heat dissipation
device
----- End of picture text -----

3. Game consoles production flow:

==> picture [355 x 242] intentionally omitted <==

----- Start of picture text -----

Electronic parts and Soldering of substrates Functional testing
components
SMT auto insertion Substrate repair Packaging
In-Circuit-Test Baking of substrate
Sampling inspection
Manual insertion Functional testing
Shipment of finished
products
System assembly
----- End of picture text -----

(III) Status of main material supply

Product item	Material	Status of supply
Electronic parts and components	Metal ingots	As the Company has built good long-term relationships with suppliers and major international customers, has many years of experience in collaborative development and cooperation, and has established long-term high- quality production and sales cooperation, a stable supply of key components can ensured.
	Coloring pigments
	Motor
	Aluminum extrusion
	Heat pipe
	Cooling fins
	Fans
Electronic system assembly	Graphics Processing Units
	Memory sticks
	LED drivers
	Motherboards
	Parts and components

(IV) List of major customers/suppliers in the most recent two years

1. Information on major suppliers in the most recent two years:

Unit: NTD thousand

	1.Informat	ion on major suppliers in the m	ion on major suppliers in the m	ion on major suppliers in the m	ost recent two	years:	years:	years:		Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand
		2019				2020			As	of the most recent quarter in 2021
Item	Name	Amount	Percent of annual net purchase (%)	Relationship with the issuer	Name	Amount	Percent of annual net purchase (%)	Relationship with the issuer	Name	Amount	Percent of annual net purchase as of the previous quarter of the current year(%)	Relationship with the issuer
1	HY	54,224,167	60.59%	Affiliated company	HY	64,431,901	63.99%	Affiliated company	HY	8,915,588	50.43%	Affiliated company
	Others	35,273,797	39.41%	-	Others	36,256,545	36.01%	-	Others	8,762,183	49.57%	-
	Net purchase	89,497,964	100%	-	Net purchase	100,688,446	100%	-	Net purchase	17,677,771	100%	-

Note: Difference in the purchase amount results from the Company's consideration on raw material demand and cost.

2. Information on major customers in the most recent two years

Unit: NTD thousand

	2.Inform	ation on major customers in the	ation on major customers in the	ation on major customers in the	most recent t	wo years	wo years	wo years	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand
		2019				2020			As of the most recent quarter in 2021
Item	Name	Amount	Percent of annual net sales (%)	Relationship with the issuer	Name	Amount	Percent of annual net sales (%)	Relationship with the issuer	Name	Amount	Percent of annual net sales as of the previous quarter of the current year (%)	Relationship with the issuer
1	C	60,974,985	61.10%	None	C	71,521,504	68.25%	None	C	13,780,817	67.97%	None
2	SY	11,868,992	11.89%	Affiliated company	SY	8,667,966	8.27%	Affiliated company	SY	2,122,024	10.47%	Affiliated company
	Others	26,958,152	27.01%	-	Others	24,600,129	23.48%	-	Others	4,370,825	21.56%	-
	Net sales	99,802,129	100%	-	Net sales	104,789,599	100%	-	Net sales	20,273,666	100%	-

Note: Difference in the purchase amount results from the market trend or clients’ demand.

(V) Table of production volume/value in the most recent two years:

(V) Table of production volume/value in the most recent two years:	(V) Table of production volume/value in the most recent two years:	(V) Table of production volume/value in the most recent two years:	(V) Table of production volume/value in the most recent two years:	(V) Table of production volume/value in the most recent two years:	(V) Table of production volume/value in the most recent two years:	(V) Table of production volume/value in the most recent two years:
Unit: thousand pcs, NTDthousand
Year Production volume/value Major product	2019			2020
	Capacity	Volume	Value	Capacity	Volume	Value
3C products	1,649,320	1,616,980	92,541,600	2,177,709	2,135,009	103,378,303

(VI) Table of sales volume/value in the most recent two years:

(VI) Table of sales volume/value in the most recent two years:	(VI) Table of sales volume/value in the most recent two years:	(VI) Table of sales volume/value in the most recent two years:	(VI) Table of sales volume/value in the most recent two years:	(VI) Table of sales volume/value in the most recent two years:	(VI) Table of sales volume/value in the most recent two years:	(VI) Table of sales volume/value in the most recent two years:	(VI) Table of sales volume/value in the most recent two years:	(VI) Table of sales volume/value in the most recent two years:
Unit: thousand pcs, NTDthousand
Year Sales volume/ value Majorproduct	2019				2020
	Domestic		Export		Domestic		Export
	Volume	Value	Volume	Value	Volume	Value	Volume	Value
3C products	0	326	1,567,127	99,620,468	9	6,265	2,027,504	104,626,975
Others	0	0	0	181,335	0	0	0	156,359
Total	0	326	1,567,127	99,801,803	9	6,265	2,027,504	104,783,334

III. Employee Data for the Past Two Years by Annual Report Printing Date

The following table shows only the number of employees in the parent company, but not the number of employees of subsidiaries in the consolidated financial statements.

Year	Year	2019	2020	As of March 31 of currentyear
No. of employees	Staff	174	206	213
	Operator	-	-	-
	Total	174	206	213
Average age		47.19	44.47	45.55
Average tenure		13.25	14.14	14.16
Distribution of education backgrounds	PhD	4.02%	2.91%	2.81%
	Master	37.93%	39.32%	38.49%
	College	53.45%	53.39%	53.99%
	Senior highschool	3.45%	3.88%	4.22%
	Below senior high school	1.15%	0.48%	0.46%

IV. Information on Environmental Protection Costs

In the most recent year up to the printing of the annual report, the total amount of losses (including the compensation amount and breach of regulations found during an environmental protection inspection, as well as the disclosure of the date, serial number, statute and content of the breach thereof, and the content of the penalty) incurred by the Company due to environmental pollution should be disclosed; disclosure of the current and future possible estimated amount, and counter-measures should also be made; if an estimation cannot be made, the reason should also be disclosed: None.

(I) The Company has designated personnel to be responsible for environmental protection work pursuant to the law, and the environment is well maintained. Therefore, in the recent two years and up to the printing date of the annual report, there have been no pollution disputes, or losses or compensation due to environmental pollution.
(II) Expenditure on environmental protection
In 2020, the Company’s expenditure on environmental protection was about NT$7,608,000, compared to NT$51,808,000 in 2019. The Company attaches great importance to environmental protection and continues to support environmental protection with practical actions. The expenses are mainly used in the maintenance of waste gas treatment facilities, related inspection of hazardous wastes disposal, improvement of temporary storage for hazardous wastes, new installment of waste gas treatment gantry cleaning lines, improvement of the connectivity of systems, anode waste gas scrubber, intelligent integrated oil mist machine, sheltered air duct, sandblasting air duct and tower body maintenance. There was no serious environmental leakage at the Company’s facility sites in 2020.

Factory area	Expenditure on environmental protection	Proposed purchase of pollution- prevention equipment or expenditure	Predicted improvement
Yantai	563,923	Expenditure for hazardous waste treatment in 2020	Handled hazardous waste through hazardous waste treatment companies with competent certifications
Taiyuan	701,000	D3 Installation of grease treatment at workshops for mechanical processing	Waste gases should not be emitted directly. They must be processed with oil mist equipment before emission.
	488,000	D6 Installation of online monitoring at the exhaust port of spraying facilities	Installation of automatic VOCs detectors to keep an eye on pollution
Kunshan	62	Spending on reclaimed water systems	A total of 17985 tons of water reclaimed after equipment acceptance in June 2020
Nanning	11	Processing of Hazardous Waste	Collection of hazardous wastes for processing by qualified vendors
	7	Garbage treatment expenses	Domestic wastes to be centralized for processing by environmental waste units
	3	Environmental monitoring expenses	Monitoring and inspection of waste gases, waste water andnoise
Foshan	35	Waste gas treatment facilities	Addition of waste gas treatment facilities and revamp of pipes
	52	Revamp of waste water treatment facilities	Revamp of aged waste water treatment stations
	16	Hazardous waste treatment	Hazardous wastes from production activities to be handled by qualified vendors
Total	1,753,109	Currency: RMB
NTD	7,608,493	Exchange rate: 1RMB→ 4.34NTD

(1) Prevention of stationary pollution source
The air pollutants generated in the manufacture process are collected into the wet scrubbers through the exhaust pipes, and the pollutants in the exhaust gas are removed before discharged to the atmosphere. The factory area has lawfully obtained a stationary pollution source operating permit, regularly reports the pollutant concentration of the exhaust gas every year, and submits declaration to the relevant environmental protection authorities in accordance with the law. There is no emission of ozone depleting substance from any facility site. In 2020, a limited amount of air pollutions were generated at certain sites due to requirement of manufacturing processes. This includes 2.05 tons of sulfur oxides and 2.05 tones of nitrogen oxides by the Yantai campus; 2 tons of nitrogen oxides, 26 tons of nitrogen oxides and 2 tons of particle matters y the Taiyuan campus; 0.25 ton of sulfur oxides, 0.95 ton of nitrogen oxides, and 0.26 tons of particle matters by the Hebi campus; 0.02 ton of nitrogen oxides, 0.19 ton of nitrogen oxides, 1.6 tons of VOCs and 0.78 ton of particle matters by the Kunshan campus; 0.04 ton of nitrogen oxides, 0.46 ton of nitrogen oxides, and 0.006 ton of particle matters by the Foshan campus.
(2) Prevention of water pollution
All factory areas of Foxconn Technology have obtained wastewater discharge permit from the government. The wastewater from each factory area is treated with chemical or biochemical methods before being discharged. The pollutants in the water are removed before discharged into the municipal sewage treatment plant through the discharge outlets. Water quality analysis laboratories and testing instruments for the inspection of temperature, pH-value, suspended solids, heavy metals, chemical oxygen demand are set up in each factory area, and the Company inspects the discharged water on a daily basis to ensure the compliance with wastewater discharge standards. The government measures the concentration of discharged water at the factory areas every quarter to ensure compliance with relevant standards, and ensure that the discharged wastewater does not pose any serious impact on the water body and related habitats.
(3) Cleaning of wastes
Treatment of waste removal in all factory areas has been handled in accordance with local laws and regulations. External firms are appointed for recycling and disposal of general waste. Hazardous wastes are first stored temporarily at the warehouses for hazardous wastes. Once the volumes reach a certain number,professional vendors approved by the government are called in to collect the wastes. Bills and receipts are issued and submitted to the environmental authorities of local governments.

	Unit: ton	Unit: ton	Unit: ton	Unit: ton	Unit: ton	Unit: ton	Unit: ton	Unit: ton	Unit: ton	Unit: ton
Factory area	Yantai		Hebi		Taiyuan and Kunshan		Pan-Shenzhen		Total
Year	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020
Wastewater	69,363	80,235	506,644	163	485,837	189,675	77,126	2,003	1,138,970	272,076
Non-hazardous waste	2,892	2,347	424	87	985	705	281	356	4,582	3,495
Hazardous waste	136	144	1,526	585	5,305	2,208	58	53	7,025	2,990
Total	72,391	82,726	508,594	835	492,127	192,588	77,465	2,412	1,150,577	278,561

(4) Toxic chemical substances management

Currently, there are no toxic chemical substances generated during the production process in factory areas.

(III) Compliance with RoHS:

In production processes, in addition to complying with industry regulations, the company will also produce according to customers' environmental requirements, using traceability management procedures to attach obvious labels indicating the source and composition of materials, which can be traced back at any time. EU Restriction on Hazardous Substances Directive, RoHS is carried out on all products to ensure that the product does not contain hazardous substances such as lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls and polybrominated diphenyl ethers. Suppliers are required to provide source of raw materials and conduct RoHS testings. The Company also requires its suppliers to have complete policies and investigation procedures for the management of conflict minerals, identifying that the raw materials provided are obtained from illegal mining of gold (Au), tantalum (Ta), tin (Sn) and tungsten (W) from conflict areas to ensure that the products produced by the Company are not directly or indirect funding the armed groups that violate human rights in the Democratic Republic of the Congo or neighboring countries. The company promotes upstream smelters to obtain certifications of Conflict Free Smelter, CFS.

V. Labor-Management Relations

Current important labor agreement and implementation:

The Company has been treating its employees with sincerity and established mutual trust with them through its welfare system and good training system that guarantee a fulfilling and stable life for them. Though there is no union in the Company, but the Company has established “Workers and Employers Meeting” and meets regularly pursuant to the law, over the years, its employees can give full play to their team spirit, coordinate the Company’s decision, cooperate with each other to create a harmonious environment for working. The Company pursuant to the relevant labor laws and regulations, to protect the legitimate interests of employees, provides employees with safe and healthy working environment, and set up an employee feedback and complaints mechanism. The Company adopts the followings measures to build a harmonious labor relation:

(I) Employee benefits measures:

Founded in June 1990, the Welfare Committee is composed of 7 members, including 1 appointed by the employer and 6 by employees. The committee members are re-elected every four years, and there are adjunct staff under the committee. At present, the welfare offerings by the Welfare Committee are as follows:

(1) Food allowance;
(2) Birthday gift (cash presents);
(3) Gifts on three traditional holidays, Chinese New Year, Dragon boat Festival, and Mid-autumn Festival;
(4) Lucky draw during get-togethers;
(5) Health promotion activities and medical consultation;
(6) Employee maternity pension, child allowance, and provide traffic subsidy, nutrition subsidy, and health care for pregnant employees;
(7) Employee wedding gifts and funeral relief funds;
(8) Training subsidiaries;
(9) Group insurance.
(II) ) Career Development and Training for Employees:

In order to enhance employees' knowledge,exert their personal potential, and allow them to pursue their goal of organizational learning and the lifelong learning, the Company has invested a lot of resources in employee education and training courses and the establishing of related facilities. Each year, human resources department and various business units develop and open courses, to promotes employees to attend various courses such as general education, management, and professional skills according to their professions. They also have established an on-line learning platform to enable employees to learn anytime and anywhere in order to cultivate employees’ professional competence, thereby increase the productivity to improve the company's operating efficiency.

(1) The Company has established a Human resource training department that develops employee training procedures and training schedules. The curriculum design is classified according to the Group's four major management systems, and is based on the premise of comprehensively improvement on Company's productivity. Being in line with the requirements Technology

Development Committees of each business units, the Company carries out module training courses on IE, economy and management, general knowledge, professional knowledge and core technology. The courses are carried out to strengthen the employees’ professional abilities to increase productivity and improve Company’s operational profits.

(2) E-learning and libraries are built to enhance learning anytime and anywhere.
(3) Employee training system is established to integrate related information on trainings.
(4) In 2020, the Company provided 53,636 hours of trainings for Company employees (174 persons) with the training fees reaching up to NT$112 thousand.
(III) Code of conduct or ethics:

In order to help employees have a better understanding of ethics, rights, obligations and the code of conduct, the Company hereby works out the relevant measures and regulations to provide basis for all employees. The relevant measures are briefed as follows:

(1) Rules on decision-making right and decentralization: To improve work efficiency, strengthen the management on decentralization and effectively standardize the rights of employees at different levels.
(2) Organizational structure and duties of each department: Clearly define the organizational functions of each unit and the duties of each position.
(3) The Employee Handbook is prepared to help employees understand the relevant measures and procedures.
a. New employee orientation program: To eliminate new employees’ insecurity towards the new environment and help them to familiarize with the working environment and colleagues after reporting for duty as soon as possible, and help them to be mentally and physically ready in a short period of time, to exert productivity and reduce the turnover rate of new colleagues.
b. Code of business ethics: To improve all employees’ behavioral quality, business ethics and expertise and try to maximize the Company’s profit within the legal scope. Every employee has the responsibility to prevent the Company’s interests from loosing or being impaired and is obliged to maintain the Company’s reputation so as to guarantee its permanent growth and development.
c. Working rules: To clearly regulate various working conditions, personnel management regulations, etc., so that employees can follow.
d. Regulations on Employee attendance: To Strengthen the attendance and leave system to establish a good employee working discipline.
e. Reward and punishment system: Rewards or punishment are given to employees whose behavior or conduct has brought benefit or loss to the Company’s operation.
f. Performance assessment method for employees: Employees’ working achievements and performance are assessed annually as the basis for salary adjustment, promotion, distribution of bonus and arrangement for training courses.

(IV) Working environment and protective measures for employees’ personal safety
(1) According to the regulations of the competent authority, the Company formulates safety

and health work codes for employees to follow the safety and health practices.

(2) Safety and health management unit and personnel:
a. According to the Occupational Safety and Health Act, a labor safety and health management unit was established. On April 20, 2016, the unit was renamed “occupational safety & health management unit” and reported to the regulators for reference (New Taipei City Government Labor Inspection Office No.: B105001519).
b. In the workplace, on-site safety and health supervision personnel are set up in accordance with the law and sufficient emergency personnel are deployed.
c. Annual security management plans are established and implemented accordingly.
d. Annual automatic inspection plans are prepared in accordance with the Regulations on Occupational Health and Safety Management.
e. Conduct monthly industrial accidents declaration in accordance of regulations
f. Safety and health management monthly reports are compiled on a monthly basis and kept for future reference.
g. Safety and health committee meetings are held convened quarterly, at which reports and discussion of safety and health related matters are carried out.
h.The monitoring of the operating environment is conducted once every half a year as required. No incompliance was identified in 2020.
i.All factory areas in Yantai, Kunshan, Taiyuan, Hebi and Pan-Shenzhen have obtained OHSAS 18001 certification which is within expiration date.

Table of certifications obtained by each factory area of the Company

Certification	Factory area	Starting year	Expiration year	Issuer
Occupational Health and Safety Management System (OHSAS	Yantai	2020	2021	DNV.GL
	Taiyuan	2020	2023	Universal Certification Centre

	Kunshan	2020	2023	Universal Certification Centre
	Nanning	2020	2023	TUV
45001)	Foshan	2021	2023	TUV

(3) Facility safety
a. An automatic inspection procedure for mechanical equipment shall be set and be implemented in compliance to the prepared annual plans.
b. High and low voltage electrical equipment or facilities are maintained monthly by designated qualified firms in accordance with the regulations.
c. According to the statistics in the past five years provided by the Fire Department,

electrical fires account for more than 30% of the total fires. For this reason, infra-red

thermographers tests were carried out on electrical equipment in the factory areas

every six months. Uninterrupted power supply detections are carried out to determine if maintenance is required, in order to reduce the risk of electrical fires.

d. Elevators are maintained monthly by designated qualified firms in accordance with the regulations.
e. According to the regulations of the competent authority, the Elevators should be

inspected by the inspection agencies every year before they may be used.

f. When signing the contracts with contractors, safety and health precautions shall be
provided in writing. Before the personnel enter the scene, they shall first implement the

hazard notification workshop, organize an consultative organization every quarter, conduct inspections of the work area from time to time, and issue improvement notice for any violation of company's contract management regulations and follow up on the improvements to ensure appropriate implement contract management.

g. When new production process and new equipment are installed, machine safety check will be carried out, and strengthen the spirit of change management through form management and cross-department joint checking mechanism.
(4) Environmental sanitation:

a. The Company implements drinking water management, water dispensers are maintained by designated qualified firms on a monthly basis. Such monthly drinking water inspections are based on standards higher than regulatory and legal standards. b. The staff conducts a general health check every year, and the expenses are fully compensated by the Welfare Committee.

c. Automated external defibrillators are set up and qualified operators are trained according to the proportion of the unit.

d. Emergency rescue equipment such as emergency response cabinets, fire-fighting clothing and air cylinders (SCBA) are set up, and equipment inspection are included in the automatic inspection project. For the members of the internal response system, corresponding education and training will be conducted every year.

(5) Fire safety
a. The whole plant fire differential detector was upgraded to a smoke heat composite model.

b. A complete fire protection system is set up in accordance with the provisions of the Fire Protection Law, and the Company designate qualified firms to maintain the fire protection facilities or equipment on a monthly basis, and improve on any defects.

c. The Company plans annual training programs and implement fire group training.
d. Every year, the Company conducts whole factory evacuation drills and cooperate with the Group's labor safety and health management division to hold safety and health month related activities.
e. The Company sends personnel to participate in external training courses (including damage prevention, emergency response, etc.) on irregular basis.

(V) Retirement system

The Company has formulated the retirement and pension plans for employees in accordance with the Labor Standards Act and the Labor Pension Act, including:

(1) Qualification for Labor Standards Act (old system): A defined benefit pension plan is adopted.

a. Retirement application: A worker may apply for voluntary retirement under any of the following conditions: where the worker attains the age of fifty-five and has worked for fifteen years; where the worker has worked for more than twenty-five years; where the worker attains the age of sixty and has worked for ten years.

b. Pension payment: The retirement pension base shall be one month’s average wage of the worker at the time when his or her retirement is approved. According to employees’ serving years, two bases shall be given for each full year of service. One base is given for each full year exceeding the 15th year of serving. The total number of bases shall be no more than 45. The length of service is calculated as half year when it is less than six months and as one year when it is more than six months. As per Article 54 of the Labor Standards Act, an additional 20% on top of the amount calculated according to the aforementioned article shall be given to workers forced to retire due to conditions occurred from the execution of their duties.
c. Employee retirement reserve allocation: The Company shall set aside 2% of the total employee monthly salary amount and deposit them into the employee retirement reserve account pursuant to the applicable retirement system provided by the Labor Standards Act; and ensure that this amount cannot be used as a subject of transfer, seizure, offset, or collateral. Before the end of each year, the employee retirement reserve account balance shall be calculated. If the balance is insufficient to pay employees with conditions specified in Article 53 or Subparagraph 1, Paragraph 1 of Article 54 of the Labor Standard Act for the next year, the Company shall make up the differences before the end of March next year
d. The supervision of pension funds: Since September 2000, the Company legally established the Supervisory Committee of Workers’ Retirement Fund, which is reelected every four years and in charge of checking the amount, deposit and withdrawal as well as payment of retirement fund so as to ensure employees’ rights.

(2) Qualification for the Labor Pension Act (new system): A defined contribution pension plan is adopted.

a. The Company appropriates 6% employee’s pension reserve every month: According to the Monthly Contribution Wages Classification of Labor Pension issued by the Bureau of Labor Insurance, the Company appropriates 6% of the worker’s monthly wage to his/her personal pension fund account.
b. Employee contribution: Workers may also voluntarily contribute within 6% of their wage to the labor pension reserve.

(VI) Other important agreements: None.

(II) Loss suffered from labor disputes in the latest year and up to the printing date of this Annual Report: The Company has no major dispute on labor relation or labor agreement in the latest year and up to the printing date of this Annual Report.

VI. Im ortant Contracts p

Contract type	Contracting party	Term of agreement	Summary	Clauses
Bill of sale	PKM Corporation	Effective for one year from May 01, 2012, unless either party terminates the contract two months prior to the expiration of the term, each session will be automatically extended for anotheryear.	Terms and conditions of the sale and purchase of finished products	—

Six. Financial Information

I. Most Recent 5-Year Concise Balance Sheet and Comprehensive

Income Statement

(I) Concise Balance Sheet and Statement of Comprehensive Income - IFRS

1. Concise Consolidated Balance Sheet

Unit: NTD thousand

Year Items	Year Items	Financial information for the most recent five years	Financial information for the most recent five years	Financial information for the most recent five years	Financial information for the most recent five years	Financial information for the most recent five years	Financial information as of March 31, 2021
		2016	2017	2018 (Note)	2019	2020
Current assets		99,607,682	138,389,929	107,023,860	108,072,195	113,612,184	103,636,887
Property, plant, and equipment		9,150,769	7,444,897	7,515,455	5,942,398	4,960,067	4,708,065
Intangible Assets		-	-	1,767,192	1,577,962	1,481,287	1,452,783
Other assets		39,493,826	69,629,601	40,257,828	48,983,262	49,056,182	60,576,997
Total assets		148,252,277	215,464,427	156,564,335	164,575,817	169,109,720	170,374,732
Current liabilities	Before Distribution	40,800,971	80,153,382	56,020,510	54,840,529	58,012,616	48,683,309
	After Distribution	46,176,015	85,245,529	60,546,863	58,376,742	60,558,689	48,683,309
Non-current liabilities		705,029	716,112	953,891	1,129,678	828,349	826,834
Liability	Before Distribution	41,506,000	80,869,494	56,974,401	55,970,207	58,840,965	49,510,143
	After Distribution	46,881,044	85,961,641	61,500,754	59,506,420	61,387,038	49,510,143
Equity of the parent company		106,672,366	134,519,139	99,511,661	108,619,425	110,315,497	120,917,292
Capital stock		14,144,852	14,144,852	14,144,852	14,144,852	14,144,852	14,144,852
Capital surplus		7,793,643	7,768,067	7,767,553	7,527,178	7,527,365	7,541,965
Retained Earnings	Before Distribution	69,042,525	73,623,018	77,645,748	80,163,968	81,333,471	80,192,190
	After Distribution	63,667,481	68,530,871	73,119,395	76,627,755	78,787,398	80,192,190
Other equity		15,691,346	38,983,202	(46,492)	6,783,427	7,309,809	19,038,285
Treasury stock		-	-	-	-	-	-
Non-controlling interests		73,911	75,794	78,273	(13,815)	(46,742)	(52,703)
Total equity	Before Distribution	106,746,277	134,594,933	99,589,934	108,605,610	110,268,755	120,864,589
	After Distribution	101,371,233	129,502,786	95,063,581	105,069,397	107,722,682	120,864,589

2. Concise Entity Balance Sheet

Unit: NTD thousand

Year Items	Year Items		Financial information for the most recent five years	Financial information for the most recent five years	Financial information for the most recent five years		Financial information as of March 31, 2021
		2016	2017	2018	2019	2020
Current assets		15,998,217	42,418,271	26,564,916	21,646,591	23,199,990	Not applicable
Property, plant, and equipment		97,796	95,304	77,567	71,979	71,220
Intangible Assets		-	-	-	-	-
Other assets		113,009,379	143,801,286	111,068,680	122,266,765	125,309,149
Total assets		129,105,392	186,314,861	137,711,163	143,985,335	148,580,359
Current liabilities	Before Distribution	21,852,492	51,220,029	37,576,040	34,862,222	37,821,640
	After Distribution	27,227,536	56,312,176	42,102,393	38,398,435	40,367,713
Non-current liabilities		580,534	575,693	623,462	503,688	443,222
Liability	Before Distribution	22,433,026	51,795,722	38,199,502	35,365,910	38,264,862
	After Distribution	27,808,070	56,887,869	42,725,855	38,902,123	40,810,935
Equity of the parent company		-	-	-	-	-
Capital stock		14,144,852	14,144,852	14,144,852	14,144,852	14,144,852
Capital surplus		7,793,643	7,768,067	7,767,553	7,527,178	7,527,365
Retained Earnings	Before Distribution	69,042,525	73,623,018	77,645,748	80,163,968	81,333,471
	After Distribution	63,667,481	68,530,871	72,939,395	76,627,755	78,787,398
Other equity		15,691,346	38,983,202	(46,492)	6,783,427	7,309,809
Treasury stock		-	-	-	-	-
Non-controlling interests		-	-	-	-	-
Total equity	Before Distribution	106,672,366	134,519,139	99,511,661	108,619,425	110,315,497
	After Distribution	101,297,322	129,426,992	94,985,308	105,083,212	107,769,424

3. Concise Consolidated Income Statement

Unit: NTD thousand

Year Items	Financial information for the most recent five years	Financial information for the most recent five years	Financial information for the most recent five years	Financial information for the most recent five years	Financial information for the most recent five years	Financial information as of March 31, 2021
	2016	2017	2018	2019	2020
Operating revenue	80,110,459	147,815,617	142,057,432	99,802,129	104,789,599	20,273,666
Gross profit	14,603,024	14,259,307	13,492,743	9,950,386	6,469,573	1,650,467
Operating profit or loss	11,324,204	10,526,142	8,606,384	5,294,292	2,618,425	688,533
Non-operating revenues and expenses	2,390,050	920,086	2,726,067	3,081,986	2,817,345	458,413
Profit before tax	13,714,254	11,446,228	11,332,451	8,376,278	5,435,770	1,146,946
Business units in current continuing operation income	10,719,973	9,968,335	9,150,847	7,037,114	4,686,123	982,720
Discontinued operation loss	-	-	-	-	-	-
Current period net profit (loss)	10,719,973	9,968,335	9,150,847	7,037,114	4,686,123	982,720
Other comprehensive income of the current period (net amount after taxation)	8,859,498	23,280,941	(39,030,627)	6,824,527	513,048	12,144,587
Total current period comprehensive income	19,579,471	33,249,276	(29,879,780 )	13,861,641	5,199,171	13,127,307
Net profit attributed to the parent company	10,721,108	9,965,386	9,146,659	7,129,801	4,718,343	988,706
Net profit attributed to non-controllinginterests	(1,135)	2,949	4,188	(92,687)	(32,220)	(5,986)
Total comprehensive income attributable to owners of the parent company	19,587,263	33,247,393	(29,882,259 )	13,953,729	5,232,098	13,133,268
Total comprehensive income attributable to non-controllinginterests	(7,792)	1,883	2,479	(92,088)	(32,927)	(5,961)
Earnings per share (NTD)	7.59	7.05	6.47	5.04	3.34	0.70

4. Concise Individual Total Comprehensive Income Statement

Unit: NTD thousand

4. Concise Individual	Total Comprehensive Income Statement	Total Comprehensive Income Statement	Total Comprehensive Income Statement	Total Comprehensive Income Statement	Total Comprehensive Income Statement	Unit: NTD thous
Year Items	Financial information forthemostrecentfive years					Financial information as of March 31, 2021
	2016	2017	2018	2019	2020
Operatingrevenue	26,732,882	84,414,971	93,824,119	66,650,972	78,290,566	Not applicable.
Grossprofit	2,202,046	4,296,827	4,875,876	3,531,551	3,872,150
Operating profit or loss	1,770,422	3,879,340	4,152,958	2,997,680	3,067,394
Non-operating revenues and expenses	9,966,364	7,108,702	6,328,638	4,805,549	2,305,619
Profit before tax	11,736,786	10,988,042	10,481,596	7,803,229	5,373,013
Business units in current continuing operation income	10,721,108	9,965,386	9,146,659	7,129,801	4,718,343
Discontinued operation loss	-	-	-	-	-
Current period net profit (loss)	10,721,108	9,965,386	9,146,659	7,129,801	4,718,343
Other comprehensive income of the current period (net amount after taxation)	8,866,155	23,282,007	(39,028,918)	6,823,928	513,755
Total current period comprehensive income	19,587,263	33,247,393	(29,882,259)	13,953,729	5,232,098
Net profit attributed to theparent company	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable
Net profit attributed to non-controllinginterests	-	-	-	-	-
Total comprehensive income attributable to owners of the parent company	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable
Total comprehensive income attributable to non-controllinginterests	-	-	-	-	-
Earnings per share (NTD)	7.59	7.05	6.47	5.04	3.34

(II) Names and opinions of external auditors over the past five years

Name of CPA	Audit Opinions	Reasons for changing external auditors
Yung-Chien Hsu, Sheng-Chung Hsu	Unqualified	-
Yung-Chien Hsu, Sheng-Chung Hsu	Unqualified	-
Sheng-Chung Hsu, Han-Chi Wu	Unqualified	Adjustment of internal administrative structure
Han-Chi Wu, Min-Chuan Feng	Unqualified	Adjustment of internal administrative structure
Han-Chi Wu,Min-Chuan Feng	Unqualified

II. Most Recent 5-Year Financial Analysis

(I) Consolidated Financial Analysis - IFRS

Items (Note 2)	Year	Financial analysis for the most recent fiveyears	Financial analysis for the most recent fiveyears	Financial analysis for the most recent fiveyears	Financial analysis for the most recent fiveyears	Financial analysis for the most recent fiveyears	Financial analysis for the quarter ending on March 31, 2021
		2016	2017	2018 (Note 3)	2019	2020
Financial structure(%)	Total liabilities to total assets	28%	37.53%	36.39%	34.01%	34.79%	29.06%
	Long-term capital to PP&E	1166.53%	1807.88%	1325.14%	1827.64%	2223.13%	2567.18%
Debt-paying ability (%)	Current ratio	244.13%	172.66%	191.04%	197.07%	195.84%	212.88%
	Quick ratio	188.73%	141.77%	153.46%	128.66%	186.56%	203.88%
	Times Interest Earned	193.97	45.83	19.91	20.63	23.60	13.12
Operating performance	Accounts receivable turnover (times)	3.29	3.91	3.34	3.23	3.54	0.82
	Average collection days	110.60	93.36	109.28	113.00	103.10	110.61
	Inventoryturnover(times)	15.21	34.19	35.73	31.34	25.38	4.06
	Accounts payable turnover (times)	3.78	4.44	3.78	3.25	3.37	0.77
	Average inventory turnover days	23.99	10.67	10.22	11.64	14.38	22.47
	Property, plant and equipment turnover(times)	7.57	17.81	18.99	14.83	19.22	4.19
	Total Assets Turnover (times)	0.59	0.81	0.76	0.62	0.63	0.12
Profitability	ROA(%)	7.93%	5.60%	5.15%	4.67%	2.95%	0.59%
	ROE(%)	10.84%	8.26%	7.82%	6.85%	4.31%	0.85%
	Pre-tax profit to paid-in capital(%)	96.96%	80.92%	80.12%	59.22%	38.43%	8.11%
	Netprofit rate(%)	13.38%	6.74%	6.44%	7.14%	4.50%	4.85%
	Earnings per share (NTD) (Note 1)	7.59	7.05	6.47	5.04	3.34	0.70
Cash flow	Cash flow ratio(%)	35.56%	10.42%	20.95%	23%	4.19%	0.97%
	Cash flow adequacy (%)	408.43%	271.79%	166.68%	144.97%	103.86%	85.33%
	Cash flow reinvestment ratio (%)	7.72%	1.81%	5.14%	6.04%	-0.83%	0.33%
Leverage	Operatingleverage	1.00	1.00	1.00	1.00	1.00	1.00
	Financial leverage	1.01	1.03	1.07	1.09	1.11	1.05
Please state the reasons for all financial ratio changes within the most recent two years. (Analysis may be exempt for changes less than 20%) 1. Higher quick ratio primarily due to a significant increase of cash and cash equivalents under current assets in 2020 2. Higher average inventory turnover days primarily due to a significant increase in the average inventory and the resulting lower inventory turnover during the period 3. Lower return on assets and return on equity primarily due to lower net income during the period 4. Lower Pre-tax profit to paid-in capital, net profit rate, and earnings per share primarily due to lower gross profits, earnings before tax, and net profit during the period 5. Lower operating cash flow ratio, cash flow adequacy ratio and cash re-investment ratio primarily due to lower net cash flows from operatingactivities

Please state the reasons for all financial ratio changes within the most recent two years. (Analysis may be exempt for changes less than 20%)

Higher quick ratio primarily due to a significant increase of cash and cash equivalents under current assets in 2020
Higher average inventory turnover days primarily due to a significant increase in the average inventory and the resulting lower inventory turnover during the period
Lower return on assets and return on equity primarily due to lower net income during the period
Lower Pre-tax profit to paid-in capital, net profit rate, and earnings per share primarily due to lower gross profits, earnings before tax, and net profit during the period
Lower operating cash flow ratio, cash flow adequacy ratio and cash re-investment ratio primarily due to lower net cash flows from operating activities

Note 1: It is calculated based on the number of weighted average outstanding shares and by retrospectively adjusting the increase of weighted number of outstanding shares due to transferring surplus into capital increase over the years.

Note 2: Please refer to the explanations on page 108 for the calculation formulas of the analyzed items.

(II) Individual financial analysis - International Financial Reporting Standards

Year Items (Note 2)	Year Items (Note 2)	Financial analysis for the most recent fiveyears	Financial analysis for the most recent fiveyears	Financial analysis for the most recent fiveyears	Financial analysis for the most recent fiveyears	Financial analysis for the most recent fiveyears	Financial analysis for the quarter ending on March 31, 2021
		2015	2017	2018	2019	2020
Financial structure (%)	Total liabilities to total assets	17.38%	27.80%	27.74%	24.56%	25.75%	Not applicable.
	Long-term capital to PP&E	109,076.41%	141,147.42%	128,291.23%	150,904.33%	154,893.99%
Debt-paying ability (%)	Current ratio	73.21%	82.82%	70.70%	62.09%	61.34%
	Quick ratio	64.99%	80.36%	69.78%	60.71%	54.70%
	Times Interest Earned	838.30	50.37	21.40	24.84	47.41
Operating performance	Accounts receivable turnover(times)	6.46	7.11	6.43	5.33	5.68
	Average collection days	56.49	51.33	56.76	68.48	64.28
	Inventoryturnover(times)	27.55	53.10	116.92	174.62	51.74
	Accounts payable turnover (times)	2.41	4.33	3.84	3.31	4.14
	Average inventory turnover days	13.25	6.87	3.12	2.09	7.06
	Property, plant and equipment turnover(times)	546.71	874.31	1085.48	891.38	1093.45
	Total Assets Turnover (times)	0.41	0.54	0.58	0.47	0.54
Profitability	ROA(%)	16.63%	6.44%	5.90%	5.25%	3.29%
	ROE(%)	20.1%	8.26%	7.82%	6.85%	4.31%
	Pre-tax profit to paid-in capital(%)	82.98%	77.68%	74.10%	55.17%	37.99%
	Netprofit rate(%)	40.10%	11.81%	9.75%	10.70%	6.03%
	Earnings per share (NTD) (Note 1)	7.59	7.05	6.47	5.04	3.34
Cash flow	Cash flow ratio(%)	-13.48%	20.81%	2.08%	4.86%	-9.55%
	Cash flow adequacy (%)	65.29%	72.75%	81.95%	79.48%	24.75%
	Cash flow reinvestment ratio(%)	-6.75%	3.91%	-4.30%	-2.59%	-6.45%
Leverage	Operatingleverage	1.22	1.10	1.17	1.17	1.25
	Financial leverage	1.01	1.06	1.14	1.13	1.04
Please state the reasons for all financial ratio changes within the most recent two years. (Analysis may be exempt for changes less than 20%) 1. Higher times Interest Earned primarily due to reduced interest expense during the period 2. Lower inventory turnovers and higher average inventory turnover days primarily due to significant increase in average inventory from the prior period 3. Higher property, plant and equipment turnover primarily due to increased revenues 4. Lower return on assets and return on equity primarily due to lower profits before tax during the period 5.Lower Pre-tax profit to paid-in capital, net profit rate, and earnings per share primarily due to lower gross profits, earnings before tax, and net profit during the period 6. Lower operating cash flow ratio, cash flow adequacy ratio and cash re-investment ratio primarily due to lower net cash flows from operatingactivities

Please refer to the explanations on pages 1-6 for the calculation formulas of the analyzed items.

1. Financial structure

(1) Total liabilities to total assets = Total liabilities / Total assets
(2) Long-term capital to PP&E = (Net equity + Long-term debts) / Net property, plant and equipment
1. Debt-paying ability
(1) Current ratio = Current Assets / Current liability
(2) Quick ratio = (Current assets - Inventory - Prepaid expenses) / Current liability
(3) Interest protection multiple = Net income before income tax and interest expense / Interest expense
Operating performance

(1) Account receivable (including account receivable and notes receivable from operation) turnover = Net sales / the Average of account receivable (including account receivable and notes receivable from operation) balance

(2) Average collection days = 365 / account receivable turnover
(3) Inventory turnover = Cost of goods sold / Average inventory
(4) Account payable (including account payable and notes payable from operation) turnover = Cost of goods sold / the average of account payable (including account payable and notes payable from operation) balance
(5) Average inventory turnover days = 365 / Inventory turnover
(6) Property, plant and equipment turnover = Net sales / Net property, plant and equipment
(7) Total assets turnover = Net sales / Total assets
Profitability
(1) ROA = [PAT + Interest expense × (1 - Interest rate)] / Average total assets
(2) ROE = PAT / Average net equity
(3) Net income ratio = PAT / Net sales
(4) EPS = (PAT - Dividend from prefer stock) / Weighted average outstanding shares
1. Cash flow
(1) Cash flow ratio = Net cash flow from operating activities / Current liabilities
(2) Cash flow adequacy ratio = Most recent 5-year cash flow from operating activities / Most recent 5-year (Capital expenditure + Increase of inventory + Cash dividend)
(3) Cash investment ratio = (Cash flow from operating activities - cash dividend) / (Gross fixed assets + Long-term investment + Other assets + Working capital)
Leverage
(1) Operating leverage = (Net revenue - Variable cost of goods sold and operating expense) / Operating income

(2) Financial leverage = Operating income / (Operating income - Interest expenses)

III. Audit Committee’s Review Report on Financial Statements of Most Recent Year

Audit Committee’ Review Report

The Board of Directors have prepared and presented the Company’s 2020 Financial Statement, Business Report, and proposal for earnings distribution. The 2020 Financial Statement has been audited by

PricewaterhouseCoopers Taiwan and issued with an independent auditor’s report. The abovementioned 2020 financial statements, business report and table for earnings distribution was reviewed by the Audit Committee and no incompliance was identified. These reports are hence published according to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act.

Foxconn Technology Co., Ltd.

Convener of the Auditing Committee: Lin Song-Shu

May (day), 2021 March 30

IV. Most Recent Financial Reports

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

Financial Review No. 20004725 (2021) To the Board of Directors and Shareholders of Foxconn Technology Co., Ltd.

Opinion

We have audited the accompanying consolidated balance sheets of Foxconn Technology Co., Ltd. and its subsidiaries (the “Group”) as of 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.

aaaaaIn our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2020 and 2019, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audit of the consolidated 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 consolidated 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 consolidated financial statements section of our report. We are independent of the Group 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.

109 ~2~

Key audit matters

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

Key audit matters on the Group’s 2020 consolidated financial statements are stated as follows:

Revenue cutoff

Description

Refer to Note 4(30) for accounting policy on revenue recognition and Note 6(21) for details of revenues. The Group has three revenue types, including (1) direct shipment from the factory, (2) FOB destination, and (3) hub. For FOB destination and hub, revenue is recognized when goods are shipped to destination or picked up by customers (when control of the products is transferred). The supporting documents for revenue recognition include receipts from customers (FOB destination), reports or other information provided by hub custodians and inventory movement record of hub. As the hubs are located around the world with numerous custodians, the frequency and contents of statements provided by custodians vary, and the process of revenue recognition involves numerous manual procedures, these factors may potentially result in inaccurate timing of sales revenue recognition and discrepancy between the physical inventory quantities in the hubs and the quantities as reflected in accounting records.

Since there are numerous daily revenue transactions from hubs and from FOB destination and the transaction amounts prior to and after the balance sheet date are significant to the financial statements, revenue cutoff has been identified as a key audit matter.

How our audit addressed the matter

aaWe performed the following key audit procedures in respect of the above key audit matter:

Evaluated and tested the Group’s internal controls over revenue recognition.
Tested sales transactions that took place shortly before and after the balance sheet date by verifying the customers’ receipt notes, supporting documents provided by hub custodian, and inventory movement records, and ascertained whether cost of goods sold was recognized in the correct reporting period.
Confirmed physical inventory quantities held by distribution warehouses and agreed to accounting records. Assessed the reasonableness of reconciling items identified through confirmation or physical inventory, if any, and inspected related supporting documents and rationale.

Provision for inventory valuation losses

110 ~3~

Description

Refer to Note 4(14) for accounting policies on inventory valuation, Note 5(2) for uncertainty of accounting estimates and assumptions in relation to inventory valuation losses, and Note 6(6) for details of inventories. As of December 31, 2020, the Group’s inventories and provision for inventory valuation losses amounted NT$5,058,277 thousand and NT$62,699 thousand, respectively.

The Group is primarily engaged in manufacturing and sales of 3C electronic products. Due to rapid technological innovations, short electronic product life cycles and fluctuations in market prices, there is a higher risk of inventory losses arising from market value decline or obsolescence. The Group recognizes inventories at the lower of cost and net realizable value, which is determined based on historical data of inventory closeout. Inventory valuation losses are provided against inventory aged over a certain time period and individually identified as obsolete or damaged.

As the amounts of inventory are material, types of inventories vary, the identification of obsolete or damaged inventories and determination of net realizable value are subject to management and audit judgement, we considered the provision for inventory valuation losses as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

Ensured consistent application of accounting policies on provision for inventory valuation losses and ascertained compliance with respective accounting guidance.
Validated the appropriateness of system logic of inventory aging report utilized by management in assessing inventory valuation losses and sampled and tested transactions for proper categorization in inventory aging report.
Assessed the reasonableness of inventory valuation losses through discussion with management as to the determination of net realizable value of obsolete or damaged inventories and validated related supporting documents.

Offsetting financial assets and liabilities agreements with financial institutions

Description

Refer to Note 4(25) for accounting policies on offsetting financial assets and liabilities, Note 5(1)B. for critical accounting judgements in relation to offsetting financial assets and liabilities, and Note 6(13) for details of offsetting financial assets and liabilities. As of December 31, 2020, the total amount of financial instruments set off was NT$2,795,447 thousand.

The Group entered into financial assets and financial liabilities offsetting agreements with financial institutions. Based on the judgement made by management, the agreement meets the requirements of IAS 32, ‘Financial instruments: Presentation’. In accordance with IAS 32, financial assets and liabilities are offset and reported in the net amount when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability

111 ~4~

simultaneously.

The determination of fulfilling the criteria for offsetting in IAS 32, ‘Financial instruments: Presentation’ is subject to judgment. The Group entered into various offsetting agreements which involve individually significant financial instruments. The financial assets and financial liabilities are presented separately once the offsetting criteria is not met. As these would have a material impact on the consolidated financial statements, we considered the offsetting of financial assets and liabilities as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

Assessed and tested internal controls over offsetting agreements entered into with financial institutions on financial assets and financial liabilities, and determined whether the offsetting criteria of IAS 32, ‘Financial instruments: Presentation’ was met, accounting processes were followed and there was proper segregation of duties.
Obtained and reviewed the above agreements to ensure that offsetting criteria of IAS 32, ‘Financial instruments: Presentation’ was met and to confirm that the offsetting amount was accurate.
Confirmed the existence and the rights and obligations of financial assets and financial liabilities offsetting agreements with respective financial institutions.

Other matter – Parent company only financial reports

We have audited and expressed an unmodified opinion on the parent company only financial statements of Foxconn Technology Co., Ltd. as of and for the years ended December 31, 2020 and 2019.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’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 Group 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 Group’s financial reporting process.

112 ~5~

Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a 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 be expected to influence the economic decisions of users taken on the basis of these consolidated 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:

Identify and assess the risks of material misstatement of the consolidated 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 controls.
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 Group’s internal controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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 Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the consolidated 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 report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated 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 Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

113 ~6~

We communicate with those charged with governance regarding, among other matters, the planned scope 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 consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our 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.

Feng, Jackie Wu, Han-Chi

For and on behalf of PricewaterhouseCoopers, Taiwan

March 30, 2021

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated 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 consolidated 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.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

114 ~7~

FOXCONN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Assets	December31,2020 AMOUNT % `$` `76,101,991` `45` `63,079` `-` `17,647` `-` `18,262,123` `11` `11,376,433` `7` `2,424,374` `1` `4,995,578` `3` `370,959` `-` `113,612,184` `67` `524,752` `-` `36,601,116` `22` `3,048,215` `2` `5,259,090` `3` `4,960,067` `3` `1,124,777` `1` `1,279,045` `1` `1,481,287` `1` `571,646` `-` `647,541` `-` `55,497,536` `33` `$` `169,109,720` `100`	December31,2019	December31,2019
	AMOUNT `$` `76,101,991` `63,079` `17,647` `18,262,123` `11,376,433` `2,424,374` `4,995,578` `370,959` `113,612,184` `524,752` `36,601,116` `3,048,215` `5,259,090` `4,960,067` `1,124,777` `1,279,045` `1,481,287` `571,646` `647,541` `55,497,536` `$` `169,109,720`	AMOUNT `$` `40,123,656` `21,081` `34,717,011` `13,447,539` `16,122,773` `844,462` `2,512,591` `283,082` `108,072,195` `493,296` `35,327,626` `3,874,615` `5,791,082` `5,942,398` `1,282,774` `1,032,105` `1,577,962` `549,302` `632,462` `56,503,622` `$` `164,575,817`	%
Current assets 1100 Cash and cash equivalents 1110 Current financial assets at fair value through profit or loss 1136 Current financial assets at amortized cost, net 1170 Accounts receivable, net 1180 Accounts receivable due from related parties, net 1200 Other receivables 130X Inventories 1470 Other current assets 11XX Total current assets Non-current assets 1510 Non-current financial assets at fair value through profit or loss 1517 Non-current financial assets at fair value through other comprehensive income 1535 Non-current financial assets at amortized cost, net 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property - net 1780 Intangible assets 1840 Deferred tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets			`24` `-` `21` `8` `10` `1` `2` `-`
			`66`
			`-` `21` `2` `4` `4` `1` `1` `1` `-` `-`
			`34`
			`100`

(Continued)

115 ~8~

FOXCONN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December31,2020 December31,2019 Notes AMOUNT % AMOUNT % 6(13) `$` `15,946,381` `9 $` `15,765,436` `9` 6(2) `214,420` `-` `99,427` `-` `7,815,684` `5` `6,370,560` `4` 7 `21,768,465` `13` `22,417,094` `14` 6(14) and 7 `10,851,743` `6` `8,703,833` `5` 6(27) `901,434` `1` `997,277` `1` 7 `156,494` `-` `149,619` `-` `357,995` `-` `337,283` `-` `58,012,616` `34` `54,840,529` `33` 6(27) `574,504` `1` `683,987` `1` 7 `174,428` `-` `322,580` `-` `79,417` `-` `123,111` `-` `828,349` `1` `1,129,678` `1` `58,840,965` `35` `55,970,207` `34` 6(16) `14,144,852` `8` `14,144,852` `9` 6(17) `7,527,365` `4` `7,527,178` `5` 6(18) `12,731,133` `8` `12,018,153` `7` `-` `-` `46,492` `-` `68,602,338` `41` `68,099,323` `41` 6(19) `7,309,809` `4` `6,783,427` `4` `110,315,497` `65` `108,619,425` `66` 6(20) `(` `46,742)` `- (` `13,815)` `-` `110,268,755` `65` `108,605,610` `66` 9 11 `$` `169,109,720` `100 $` `164,575,817` `100`	December31,2019	December31,2019
			%
Current liabilities 2100 Short-term loans 2120 Current financial liabilities at fair value through profit or loss 2170 Accounts payable 2180 Accounts payable to related parties 2200 Other payables 2230 Current tax liabilities 2280 Current lease liabilities 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2570 Deferred tax liabilities 2580 Non-current lease liabilities 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of parent Share capital 3110 Ordinary share Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 31XX Total equity attributable to owners of parent 36XX Non-controlling interests 3XXX Total equity Commitments and Contingent Liabilities Significant Subsequent Events 3X2X Total liabilities and equity			`9` `-` `4` `14` `5` `1` `-` `-`
			`33`
			`1` `-` `-`
			`1`
			`34`
			`9` `5` `7` `-` `41` `4`
			`66` `-`
			`66`
			`100`

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

~9~ 116

FOXCONN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

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

Items Year ended December 31
2020
2019
Notes
AMOUNT
%
AMOUNT
%
6(21) and 7
$
104,789,599
100
$
99,802,129
100
6(6)(21) and 7
(
98,320,026 ) (
94) (
89,851,743 ) (
90)
6,469,573
6
9,950,386
10
6(25) and 7
(
621,879 ) (
1) (
580,807 ) (
1)
(
1,487,145 ) (
1) (
1,851,921 ) (
2)
(
1,742,124 ) (
2) (
2,223,366 ) (
2)
(
3,851,148 ) (
4) (
4,656,094 ) (
5)
2,618,425
2
5,294,292
5
6(22)
2,034,933
2
2,363,864
2
6(10)(23) and 7
1,436,652
1
1,129,357
1
6(24) and 7
(
102,811 )
-
139,184
-
7
(
249,299 )
- (
458,576 )
-
6(7)
(
302,130 )
- (
91,843 )
-
2,817,345
3
3,081,986
3
5,435,770
5
8,376,278
8
6(27)
(
749,647 ) (
1) (
1,339,164 ) (
1)
$
4,686,123
4
$
7,037,114
7

(Continued)

117 ~10~

FOXCONN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

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

Items Year ended December 31
2020
2019
Notes
AMOUNT
%
AMOUNT
%
6(15)
( $
15,784 )
- ($
7,489 )
-
6(3)
2,262,646
2
10,378,477
10
6(27)
3,157
-
1,498
-
2,250,019
2
10,372,486
10
6(19)(20)
(
1,736,971 ) (
1) (
3,547,959 ) (
3)
(
1,736,971 ) (
1) (
3,547,959 ) (
3)
$
513,048
1
$
6,824,527
7
$
5,199,171
5
$
13,861,641
14
$
4,718,343
4
$
7,129,801
7
(
32,220 )
- (
92,687 )
-
$
4,686,123
4
$
7,037,114
7
$
5,232,098
5
$
13,953,729
14
(
32,927 )
- (
92,088 )
-
$
5,199,171
5
$
13,861,641
14
6(28)
$
3.34
$
5.04
$
3.32
$
5.01

Components of other
comprehensive income that will
not be reclassified to profit or
loss
8311
Actuarial losses on defined
benefit plans
8316
Unrealized gains from
investments in equity
instruments measured at fair
value through other
comprehensive income
8349
Income tax related to
components of other
comprehensive income that will
not be reclassified to profit or
loss
8310
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
8361
Exchange differences on
translation
8360
Other comprehensive loss that
will be reclassified to profit or
loss
8300
Other comprehensive income, net
8500
Total comprehensive income
Profit (loss), attributable to:
8610
Owners of parent
8620
Non-controlling interests
Comprehensive income (loss)
attributable to:
8710
Owners of parent
8720
Non-controlling interests
Earnings per share (in dollars)
9750
Basic earnings per share
9850
Diluted earnings per share

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

~11~ 118

FOXCONN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Notes				Equityattributableto	wners of the parent					Non-controlling interests	Total equity
	Ordinaryshare	Capital surplus		RetainedEarnings			Other EquityInterest		Total
			Legal reserve	Special reserve	Unappropriated retained earnings	d	Financial statements translation ifferences of foreign operations	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
6(19) 6(18) 6(19) 6(18) 6(7)	`$` `14,144,852` `-` `-` `-` `-` `-` `-` `-` `$` `14,144,852` `$` `14,144,852` `-` `-` `-` `-` `-` `-` `-` `$` `14,144,852`	`$` `7,767,553` `-` `-` `-` `-` `-` `-` `(` `240,375 )` `$` `7,527,178` `$` `7,527,178` `-` `-` `-` `-` `-` `-` `187` `$` `7,527,365`	`$` `11,103,487` `-` `-` `-` `914,666` `-` `-` `-` `$` `12,018,153` `$` `12,018,153` `-` `-` `-` `712,980` `-` `-` `-` `$` `12,731,133`	`$` `-` `-` `-` `-` `-` `46,492` `-` `-` `$` `46,492` `$` `46,492` `-` `-` `-` `-` `(` `46,492` `)` `-` `-` `$` `-`	`$` `66,542,261` `7,129,801` `(` `5,991 )` `7,123,810` `(` `914,666 )` `(` `46,492 )` `(` `4,526,353 )` `(` `79,237 )` `$` `68,099,323` `$` `68,099,323` `4,718,343` `(` `12,627 )` `4,705,716` `(` `712,980 )` `46,492` `(` `3,536,213 )` `-` `$` `68,602,338`		`($` `2,578,011 )` `-` `(` `3,548,558 )` `(` `3,548,558 )` `-` `-` `-` `-` `($` `6,126,569 )` `($` `6,126,569 )` `-` `(` `1,736,264 )` `(` `1,736,264 )` `-` `-` `-` `-` `($` `7,862,833 )`	`$` `2,531,519` `-` `10,378,477` `10,378,477` `-` `-` `-` `-` `$` `12,909,996` `$` `12,909,996` `-` `2,262,646` `2,262,646` `-` `-` `-` `-` `$` `15,172,642`	`$` `99,511,661` `7,129,801` `6,823,928` `13,953,729` `-` `-` `(` `4,526,353 )` `(` `319,612 )` `$ 108,619,425` `$ 108,619,425` `4,718,343` `513,755` `5,232,098` `-` `-` `(` `3,536,213 )` `187` `$ 110,315,497`	`$` `78,273` `(` `92,687 )` `599` `(` `92,088 )` `-` `-` `-` `-` `($` `13,815 )` `($` `13,815 )` `(` `32,220 )` `(` `707 )` `(` `32,927 )` `-` `-` `-` `-` `($` `46,742 )`	`$` `99,589,934` `7,037,114` `6,824,527` `13,861,641` `-` `-` `(` `4,526,353 )` `(` `319,612 )` `$ 108,605,610` `$ 108,605,610` `4,686,123` `513,048` `5,199,171` `-` `-` `(` `3,536,213 )` `187` `$ 110,268,755`

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

119 ~12~

FOXCONN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Income and expenses having no effect on cash
flows
Depreciation

Amortization

Expected credit gain

Net loss on financial assets or liabilities at fair
value through profit or loss
Gain on disposal of investments

Gain on disposal of property, plant and
equipment

Interest expense
Interest income

Dividend income

Share of loss of associates and joint ventures
accounted for under equity method

Changes in assets/liabilities relating to operating
activities
Changes in operating assets
Accounts receivable net
Accounts receivable due from related parties
Other receivables
Inventories
Other current assets
Net changes in liabilities relating to operating
activities
Accounts payable
Accounts payable to related parties
Other payables
Other current liabilities
Cash inflow generated from operations
Income taxes paid
Net cash flows from operating activities Years ended December 31
Notes
2020
2019
$
5,435,770 $
8,376,278
6(25)
1,439,165
1,974,922
6(25)
118,095
127,848
12(2)
(
699 ) (
976 )
47,971
652,616
6(24)
(
11,693 ) (
13,108 )
6(24)
(
238,298 ) (
140,844 )
249,299
458,576
6(22)
(
2,034,933 ) (
2,363,864 )
6(23)
(
377,254 ) (
394,167 )
6(7)
302,130
91,843
(
4,858,564 )
2,970,604
4,740,602 (
1,234,257 )
228,282
19,957
(
2,500,156 )
316,949
(
83,715 )
191,344
1,443,201 (
1,651,083 )
(
628,678 )
4,451,939
306,428
661,266
(
28,079 )
23,512
3,548,874
14,519,355
(
1,115,791 ) (
1,924,602 )
2,433,083
12,594,753

(Continued)

120 ~13~

FOXCONN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES
Increase in financial assets at amortized cost -
current
Decrease in financial assets at amortized cost -
current
Acquisition of financial assets at fair value through
profit or loss
Proceeds from disposal of investments accounted
for under equity method
Decrease in financial assets at amortized cost - non -
current
Increase in financial assets at amortized cost - non -
current
Cash paid for business combination
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and
equipment

Increase in net receivable/ payable on raw materials
(Increase) decrease in refundable deposits
Other non-current assets
Interest received
Dividends received

Net cash flows from (used in) investing
activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term loans
Decrease in short-term loans
Cash dividends paid

Payments of lease liabilities
Interest paid
Other non-current liabilities
Net cash flows used in financing activities
Effect of changes in foreign currency exchange rates
on cash
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year Years ended December 31
Notes
2020
2019
$
- ($
19,299,106 )
34,424,071
1,121,520
- (
569,559 )
-
11,617
1,284,571
1,369,020
(
428,180 )
-
- (
4,319,741 )
6(29)
(
455,079 ) (
1,171,246 )
6(29)
582,728
302,709

(
119,679 ) (
252,395 )
(
14,211 )
49,714
775
15,067
2,071,323
2,393,023
6(23)
377,254
394,167
37,723,573 (
19,955,210 )
16,691,281
15,670,709
(
16,546,516 ) (
13,691,926 )
6(18)
(
3,536,213 ) (
4,526,353 )
(
149,328 ) (
332,920 )
(
240,888 ) (
428,227 )
11,934
18,865
(
3,769,730 ) (
3,289,852 )
(
408,591 ) (
1,417,736 )
35,978,335 (
12,068,045 )
40,123,656
52,191,701
$
76,101,991 $
40,123,656

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

121 ~14~

FOXCONN TECHNOLOGY CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2020 AND 2019

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

1. HISTORY AND ORGANIZATION

The Company, originally known as Q-RUN Technology Co., Ltd., was established on April 26, 1990. On March 1, 2004, the Company merged with Foxconn Precision Components Co., Ltd. and was renamed as Foxconn Technology Co., Ltd. The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in manufacturing, processing and sales of case, heat dissipation modules and consumer electronics products.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were authorized for issuance by the Board of Directors on March 30, 2021.

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:

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 IFRS 7, ‘Interest rate benchmark reform’ Amendment to IFRS 16, ‘Covid-19-related rent concessions’ Note: Earlier application from January 1, 2020 is allowed by the FSC.	January 1, 2020 January 1, 2020 January 1, 2020 June 1, 2020 (Note)

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

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

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

122 ~15~

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 Group’s financial condition and financial performance based on the Group’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:

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”).

123 ~16~

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
(a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group 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. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Inter-company material transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure the consistency with the policies adopted by the Group.
(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.
(d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.
(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss.

124 ~17~

B. Subsidiaries included in the consolidated financial statements:

Investor	Subsidiary	Main Business Activities Investment holdings in companies in Mainland China, Hong Kong and America primarily engaged in manufacturing, sale, research and development of computer thermal module and computer components Investment holdings in companies in Mainland China, Hong Kong, Singapore and America primarily engaged in manufacturing, sale, research and development of aluminum magnesium case and computer components Investment holdings in R.O.C. companies Investment holding and reinvestment	December December 31,2020 31,2019 100 100 100 100 100 100 100 100 Ownership (%)	Note
			December 31,2020 100 100 100 100
Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Precision Components Holding Co., Ltd.	Foxconn Precision Components Holding Co., Ltd. Q-RUN Holdings Ltd. Huazhun Investment Co., Ltd. Atkinson Holdings Ltd.

125 ~18~

Investor	Subsidiary	Main Business Activities Investment holding and reinvestment Investment holding and reinvestment Investment holding and reinvestment Investment holding and reinvestment Sales, investment holdings and reinvestment Investment holding and reinvestment Investment holding and reinvestment Investment holding and reinvestment Investment holding and reinvestment Investment holding and reinvestment Investment holding and reinvestment Investment holding and reinvestment	December December 31,2020 31,2019 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Ownership (%)	Note
			December 31,2020 100 100 100 100 100 100 100 100 100 100 100 100
Q-RUN Holdings Ltd. Q-RUN Holdings Ltd. Q-RUN Holdings Ltd. Q-RUN Holdings Ltd. Q-RUN Holdings Ltd. Atkinson Holdings Ltd. Atkinson Holdings Ltd. Atkinson Holdings Ltd. Q-RUN Far East Corporation Q-RUN Far East Corporation Q-RUN Far East Corporation Q-RUN Far East Corporation	Q-RUN Far East Corporation World Trade Trading Ltd. High Tempo International Ltd. FTC Technology Inc. Foxconn Technology Pte. Ltd. Kenny International Ltd. Double Wealth Profits Ltd. Precious Star International Ltd. Eastern Star Limited Foreign Technology Ltd. Topfry Industrial Ltd. Gold Glory International Ltd.

126 ~19~

Investor	Subsidiary	Main Business Activities Investment holding and reinvestment Investment holding and reinvestment Manufacturing and marketing of power plug and wall socket, micro ribbon connectors for terminals, etc. Manufacturing and marketing of computer components (computer thermal module) Production of LED lamps and LED display; engagement in smart light pole and other products in relation to LED Manufacturing and marketing of computer components (computer thermal module) Manufacturing and marketing of computer components and peripherals and computer cases	December December 31,2020 31,2019 100 100 100 100 22.76 22.76 100 100 0 100 65 65 87.63 87.63 Ownership (%)	Note
			December 31,2020 100 100 22.76 100 0 65 87.63
Q-RUN Far East Corporation Foxconn Technology Pte. Ltd. Kenny International Ltd. Double Wealth Profits Ltd. Fuzhun Precision (Shenzhen) Industry Co., Ltd. Fuzhun Precision (Shenzhen) Industry Co., Ltd. Eastern Star Limited	New Glory Holdings Ltd. FTP Technology Inc. Fu Yu Precision Components (Kunshan) Co., Ltd. Fuzhun Precision (Shenzhen) Industry Co., Ltd. Fuyu Technology (Nanyang) Co., Ltd. Champ Tech Optical (Foshan) Corporation Hon Fujin Precision Industry (Taiyuan) Co., Ltd.			(a)

127 ~20~

Investor	Subsidiary	Main Business Activities New alloy material, precision molds, new electronic components, portable computers and their components Manufacturing and marketing of computer components and related peripherals, computer cases and metal stamping Research, development, production and sales of aluminum alloy materials, rail vehicle components, car accessories and electronic components; manufacturing and sales of structured metal products and metal container (not including precious metal and electroplating) Manufacture and sale of automobile parts; manufacture and sale of aluminum alloy parts used for automobiles and electronics Manufacturing and marketing of computer case – electronic and electrical components Manufacturing and marketing of power plug and wall socket, micro ribbon connectors for terminals, etc.	Ownership (%)	Ownership (%)
			December 31,2020 100 12.37 70 100 100 77.24	December 31,2019
Eastern Star Limited Precious Star International Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Topfry Industrial Ltd. Gold Glory International Ltd.	Fuzhun Precision (Hebi) Electronics Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Qingdao Hiyn Materials Co., Ltd. Fuzhun Precision Industry (Shenyang) Co., Ltd. Fuhuigang Industral (Shenzhen) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd.			100 12.37 70 100 100 77.24

128 ~21~

Ownership (%)

Investor	Subsidiary	Main Business Activities Manufacturing and marketing of computer components (computer thermal module) Manufacturing and marketing of computer case – electronic and electrical components Manufacturing and marketing of computer components (computer thermal module)	December 31,2020 35 100 100	December 31,2019
Fu Yu Precision Components (Kunshan) Co., Ltd. New Glory Holdings Limited New Glory Holdings Limited	Champ Tech Optical (Foshan) Corporation YanTai Fuzhun Precision Electronics Co., Ltd. Nanning Funing Precision Electronics			35 100 100

Co., Ltd.

  - (a) The Group’s subsidiary, Fuyu Technology (Nanyang) Co., Ltd., completed its liquidation at the end of 2020 and repaid the capital amount invested by the Group. It also generated $11,693 of gain on disposal of investment for the Group, which has been listed under “other gains and losses”.

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.
(4) Foreign currency translation

The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Group’s 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 recognized 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 retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

129 ~22~

  - (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 recognized 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 recognized in other comprehensive income. However, nonmonetary 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’.

B. Translation of foreign operations
- (a) The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
  - i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
  - ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
  - iii. All resulting exchange differences are recognized in other comprehensive income.
- (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even the Group still retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.
- (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even the Group still retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.
(5) 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 realized, 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 realized 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 pay off 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 paid off within the normal operating cycle;
- (b) Liabilities arising mainly from trading activities;
- (c) Liabilities that are to be paid off 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

130 ~23~

classification.

(6) 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 and bands sold under repurchase agreement that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

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

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income. Financial assets at amortized cost or fair value through other comprehensive income are designated as of fair value through profit or loss at initial recognition when they eliminate or significantly reduce a measurement or recognition inconsistency.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.
D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
(8) Financial assets at fair value through other comprehensive income
A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:
- (a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
- (b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:
- (a) The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
- (b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognized in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss.
(9) Financial assets at amortized cost
A. Financial assets at amortized cost are those that meet all of the following criteria:
- (a) The objective of the Group’s business model is achieved by collecting contractual cash flows.
- (b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at amortized cost are recognized and derecognized using trade date accounting.

131 ~24~

C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognized in profit or loss when the asset is derecognized or impaired.
D. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.
(10) Accounts and notes receivable
A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
C. The Group’s operating pattern of accounts receivable that are expected to be factored is for the purpose of receiving contract cash flow and selling, and the accounts receivable are subsequently measured at fair value, with any changes in fair value recognized in other comprehensive income.
(11) Impairment of financial assets

For financial assets at amortized cost, at each reporting date, the Group recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes 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 Group recognizes the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets
The Group derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.
(13) Leasing arrangements (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognized in profit or loss on a straight-line basis over the lease term.

(14) Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

(15) Investments accounted for under equity method / associates
A. 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 per cent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.
B. The Group’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

132 ~25~

C. 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 Group’s ownership percentage of the associate, the Group recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.
D. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealized 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 Group.
E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’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 Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized 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.
F. Upon loss of significant influence over an associate, the Group remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognized in profit or loss.
G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized 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 recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
(16) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.
B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives for buildings and structures, machinery and equipment and other equipment are 3~55 years, 1~10 years and 1~10 years, respectively.

133 ~26~

(17) Leasing arrangements (lessee) - right-of-use assets/ lease liabilities

A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognized as an expense on a straight-line basis over the lease term.
B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable. The Group subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.
C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability;
- (b) Any lease payments made at or before the commencement date; and
- (c) Any initial direct costs incurred by the lessee.
- The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.
D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit of loss the difference between the remeasured lease liability and the change in right of use asset.
(18) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 8 ~ 55 years.

(19) Intangible assets
A. Goodwill arises in a business combination accounted for by applying the acquisition method.
B. Patent rights and technical skill are amortized on a straight-line basis over their estimated useful life of 5 years.
(20) Impairment of non-financial assets
A. The Group 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 recognized 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. Except for goodwill, when the circumstances or reasons for recognizing 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 amortized historical cost would have been if the impairment had not been recognized.
B. The recoverable amounts of goodwill that have not yet been available for use are evaluated periodically. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.
C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the

134 ~27~

goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

(21) Loans

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

(22) Accounts and notes payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.
B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(23) Financial liabilities at fair value through profit or loss
A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorized as financial liabilities held for trading unless they are designated as hedges.
B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

(24) Derecognition of financial liabilities

A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

(25) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

(26) Non-hedging derivatives

Non-hedging derivatives are initially recognized at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognized in profit or loss.

(27) 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 recognized as expenses in that period when the employees render service.

B. Pensions

(a) Defined contribution plans

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

135 ~28~

(b) Defined benefit plans
- i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.
- ii. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.
C. Employees’ compensation, directors’ and supervisors’ remuneration Employees’ compensation and directors’ and supervisors’ remuneration are recognized as expenses and liabilities, 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 employees compensation is paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution .

(28) Income tax

A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized 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 and its subsidiaries 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 recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated 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 and associates, except where the timing of the reversal of the temporary difference is controlled by the Group 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 realized or the deferred tax liability is settled.
D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.

136 ~29~

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 recognized amounts and there is an intention to settle on a net basis or realize 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 realize the asset and settle the liability simultaneously.

(29) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(30) Revenue recognition
A. The Group is primarily engaged in manufacturing and sales of consumer electronics products. Sales are recognized when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.
B. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated sales discounts and allowances. Revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.
C. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

(31) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes expenses for the related costs for which the grants are intended to compensate.
(32) Business combinations
A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisitionrelated costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or the present ownership instruments’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

137 ~30~

B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognized and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognized directly in profit or loss on the acquisition date.
(33) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’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 Group’s accounting policies

A. Revenue recognition

The Group provides integrated electronics manufacturing services to meet the following criteria by judgment, and recognizes revenue on a gross basis:

(a) The Group is primarily responsible for the provision of goods or services;
(b) The Group assumes the inventory risk before transferring the specified goods or services to the customer or after transferring control of the goods or services to the customer.
(c) The Group has discretion in establishing prices for the goods or services.
B. Offsetting financial instruments

The determination of whether the Group’s financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

(2) Critical accounting estimates and assumptions

Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the Group must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

As of December 31, 2020, information on the carrying amount of inventories is provided in Note 6(6).

~31~ 138

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Cash equivalents Time deposits Repurchase Agreement Bond	December 31,2020 514 $ 70,338,643 5,721,834 41,000 76,101,991 $	December 31,2019
		2,678 $ 34,460,821 5,619,157 41,000
		40,123,656 $

A. The Group associates with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. Time deposits with maturity in excess of three months and restricted time deposits on December 31, 2020 and 2019 have been listed under “financial assets at amortized cost - current” and “ financial assets at amortized cost - non-current”.

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

Assets Current items: Financial assets mandatorily measured at fair value through profit or loss Derivatives Non-current items: Financial assets mandatorily measured at fair value through profit or loss Fund Liabilities Current items: Financial liabilities mandatorily measured at fair value through profit or loss Derivatives	December 31,2020 63,079 $ 524,752 $ 214,420 $	December 31,2019
		21,081 $
		493,296 $
		99,427 $

A. To enhance the strategic cooperation network of integrating resources and developing the semiconductor industry, the Group’s subsidiary, Hon Fujin Precision Industry (Taiyuan) Co., Ltd., invested in Jinan Fujie Industrial Investment Fund Partnership in the amount of RMB 125 million in January 2019 (limited partnership), which is listed as “non-current financial assets at fair value through profit or loss”.

~32~ 139

B. Amounts recognized in profit or loss in relation to financial assets and liabilities at fair value through profit or loss are listed below:

hrough profit or loss are listed below:
		Years ended	December 31,
		2020	2019
Financial assets and liabilities mandatorily
measured at fair value through profit or loss
Derivatives	($	323,616)	$	89,167
Fund		25,357	(	46,623)
	($	298,259)	$	42,544

C. The Group entered into contracts relating to derivative financial assets or liabilities which were not accounted for under hedge accounting. The information is listed below:

Derivative instruments Current items: Forward exchange contracts Foreign exchange contracts	December 31,2020	December 31,2020
	USD (SELL) 4,000 CNH (BUY) 27,174 USD (SELL) 4,000 CNH (BUY) 27,092 USD (SELL) 7,000 CNH (BUY) 46,320 USD (SELL) 17,000 CNH (BUY) 115,277 USD (SELL) 10,000 CNH (BUY) 65,920 USD (SELL) 23,000 CNH (BUY) 155,618 USD (SELL) 30,000 CNH (BUY) 197,946 USD (SELL) 10,000 CNH (BUY) 68,033 TWD (SELL) 4,526,106 USD (BUY) 152,000 Contract amount (Nominal Principal in thousands)	Contractperiod
		2020/11~2021/3 2020/10~2021/1 2020/12~2021/5 2020/11~2021/1 2020/12~2021/3 2020/10~2021/1 2020/12~2021/4 2020/11~2021/3 2020/3~2021/3

~33~ 140

	December 31,2019	December 31,2019
	Contract amount
Derivative instruments	(Nominal Principal in thousands)		Contractperiod
Current items:
Cross currency swap contracts	TWD (SELL)	924,300	2019/3~2020/3
	USD (BUY)	30,000
	TWD (SELL)	4,291,170	2019/3~2020/3
	HKD (BUY)	1,090,878
Forward exchange contracts	USD (SELL)	16,000	2019/11~2020/2
	CNH (BUY)	112,480
	USD (SELL)	13,000	2019/11~2020/3
	CNH (BUY)	91,221
	USD (SELL)	5,000	2019/12~2020/4
	CNH (BUY)	35,135
	USD (SELL)	10,000	2019/12~2020/3
	CNH (BUY)	70,350
	USD (SELL)	10,000	2019/11~2020/1
	CNH (BUY)	70,420
	USD (SELL)	25,000	2019/11~2020/2
	CNH (BUY)	175,700
	USD (SELL)	10,000	2019/12~2020/3
	CNH (BUY)	70,175
Foreign exchange contracts	TWD (SELL)	4,567,904	2019/3~2020/3
	USD (BUY)	152,000

(a) Cross currency swap contracts

The Group signed cross currency swap contracts aiming to satisfy capital requirements. Under the terms of exchange rate swaps, the principal in two currencies are exchanged at the beginning and the end of period to reduce exchange rate risk. Under the terms of rate swaps, the fixed interest rates of two currencies are exchanged to reduce interest rate risk.

(b) Forward exchange contracts

The Group signed forward exchange contracts to hedge exchange rate risks arising from the activities listed below:

i. Business activity: The payables due from importing materials and supplies as well as receivables from exports.
ii. Investment activity: The payment due from importing machinery and equipment.
iii. Financial activity: Assets and liabilities (financing) resulting from long-term or short-term loans.
(c) Foreign exchange contracts

The Group entered into foreign exchange contracts to satisfy capital requirements. The principal in two currencies are swapped using the same exchange rate at the beginning and the end of the period to reduce exchange rate risk.

D. The counterparties of derivative instruments held by the Group are all banks with good credit quality or financial institutions with investment grade credit ratings that are above A.

141 ~34~

E. The Group has no financial assets at fair value through profit or loss pledged to others.
(3) Financial assets at fair value through other comprehensive income

Items Non-current items: Equity instruments	December 31,2020 36,601,116 $	December 31,2019
		35,327,626 $

A. The Group has elected to classify investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income.
B. The Group has no financial assets at fair value through other comprehensive income pledged to others.
C. Amounts recognized in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

			Years ended December31,	Years ended December31,	Years ended December31,	Years ended December31,	Years ended December31,
			2020				2019
Fair value change recognized in other
comprehensive income			$	2,262,646		$	10,378,477
Dividend income recognized in profit
or loss			$	377,254		$	394,167
Please refer to table	3 for information on financial assets at fair value through other comprehensiv
income.
Financial assets at amortized cost
	Items	December		31,2020	December 31,2019
Current items:
Capital guarantee financial products		$		-	$		18,800,350
Time deposits with maturity in excess of
three months				-			15,905,898
Pledged time deposits				17,647			10,763
		$		17,647	$		34,717,011
Non-current items:
Time deposits with maturity in excess of
one year		$		435,455	$		-
Bank debentures-trust	fund		2,612,760				3,874,615
		$	3,048,215		$		3,874,615

Please refer to table 3 for information on financial assets at fair value through other comprehensive income.

(4) Financial assets at amortized cost

A. Please refer to Note 6(22 ) for information on recognized gains and losses on financial assets at amortized cost. The Group entered into a capital guarantee financial product contract with the bank, with returns ranging from 3.05% to 3.88% for the year ended December 31, 2019.
B. In March 2018 and December 2017, the Group invested in the trust fund named Guangdong Finance Trust - Peng Yun Tian Hua Collection Fund Trust for RMB 500 million and RMB 1 billion, respectively. The fund was mainly created for the investment in Guangzhou Guangyin Nanyue Intelligent Technology Industrial Investment Partnership. This investment is included in “financial assets at amortized cost-non-current.”

As of December 31, 2020, the Group has received cumulative return in the amount of RMB 900 million in accordance with the investment agreement.

142 ~35~

C. Details of the Group’s financial assets at amortized cost pledged to others as collateral as of December 31, 2020 and 2019 are provided in Note 8.
D. All of the Group's investments have high credit quality.

(5) Notes and accounts receivable

Notes and accounts receivable
	December 31,2020		December 31,2019
Notes receivable	$	19,425	$	1,159
Accounts receivable		18,248,750		13,451,424
		18,268,175		13,452,583
Less: Allowance for bad debts	(	6,052)	(	5,044)
	$	18,262,123	$	13,447,539

A. The Group does not hold any collateral as security.
B. Information relating to credit risk is provided in Note 12(2).

(6) Inventories

Inventories
	December 31,2020		December 31,2019
Raw materials	$	620,292	$	298,547
Work in process		403,534		383,085
Finished goods		4,034,451		2,008,225
		5,058,277		2,689,857
Less: Allowance for inventory obsolescence
and market price decline	(	62,699)	(	177,266)
	$	4,995,578	$	2,512,591

The cost of inventories recognized as expense for the year:

The cost of inventories recognized as expense	for the year: $	4,995,578	2,512,591 $	2,512,591 $
		Years ended	December 31,
		2020		2019
Cost of inventories sold	$	98,627,821	$	90,032,852
(Gain) loss on inventory obsolescence
and market price decline	(	137,871)		33,955
Revenue from sale of scraps	(	169,924)	(	215,064)
	$	98,320,026	$	89,851,743

Due to the sale of some of the inventories with net realizable value lower than cost in 2020, the amount of provision for inventory valuation losses was reduced.

~36~ 143

(7) Investments accounted for using equity method

Investments accounted for using equity method
Investees	December 31,2020		December 31,2019
At January 1	$	5,791,082	$	8,713,290
Disposal of investments accounted for using equity
method		-	(	2,492,999)
Share of loss of investments accounted for under
equity method	(	302,130)	(	91,843)
Change in capital surplus		187	(	240,375)
Change in retained earnings		-	(	79,237)
Change in other equity interest (Note 6(19))	(	230,049)	(	17,754)
At December 31	$	5,259,090	$	5,791,082
	December 31,2020		December 31,2019
Associates	$	5,259,090	$	5,791,082

A. In 2018, the Group subsequently acquired the common stock of FE Holdings USA, Inc. at USD 1 per share in accordance with the resolution passed by the Board of Directors in January 2018. The total investment amount was $2,461,701 (USD 80,400 thousand), representing an ownership stake of 33%. However, the Group’s ownership stake decreased to 15.5% and lost significant control over the investee since the Group did not participate in the capital increase proportionally to its ownership stake in 2019. The investment was transferred to financial assets at fair value through other comprehensive income which resulted in gain on disposal of investment amounting to $10,237, shown as ‘other gains and losses’.
B. On October 31, 2019, the Group transferred all its ownership stake in Foxstar Technology Co., Ltd. to Zhonghe (Nanyang) Information Technology Service Center (Limited Partnership) which resulted in gain on disposal of investment amounting to $2,871, shown as ‘other gains and losses’.
C. The Group’s share of the operating results in all individually immaterial associates are summarized below:

below:
		Years ended	December 31,
		2020		2019
Loss for the year from continuing operations	($	302,130)	($	91,843)
Other comprehensive loss, net of tax	(	230,049)	(	17,754)
Total comprehensive loss for the year	($	532,179)	($	109,597)

D. The Group’s investment, IDG Energy Investment Limited, has quoted market prices. As of December 31, 2020 and 2019, the fair value was $5,454,405 and $5,772,923, respectively.

144 ~37~

(8) Property, plant and equipment

roperty, plant and equipment
At January 1 Cost Accumulated depreciation Opening net book amount as of January 1 Additions Reclassifications Transfer Disposals Depreciation expense Net exchange differences Closing net book amount as of December 31 At December 31 Cost Accumulated depreciation			2020
	Land 51,850 $ - 51,850 $ 51,850 $ - - - - - - 51,850 $ 51,850 $ - 51,850 $	Buildings and structures	Machinery and equipment Others 18,457,368 $ 4,391,845 $ 16,834,642) ( 3,694,624) ( 1,622,726 $ 697,221 $ 1,622,726 $ 697,221 $ 304,718 126,976 6,448 417 - - 98,580) ( 8,733) ( 582,718) ( 207,707) ( 12,371 5,243 1,264,965 $ 613,417 $ 14,826,361 $ 4,253,425 $ 13,561,396) ( 3,640,008) ( 1,264,965 $ 613,417 $
		8,455,120 $ 5,362,555) ( 3,092,565 $ 3,092,565 $ 36,923 208,653 345,459) ( - 360,873) ( 9,425 2,641,234 $ 8,355,160 $ 5,713,926) ( 2,641,234 $

145 ~38~

2019

At January 1 Cost Accumulated depreciation Opening net book amount as of January 1 Additions Reclassifications Transfer Disposals Depreciation expense Net exchange differences Closing net book amount as of December 31 At December 31 Cost Accumulated depreciation	Land Buildings and structures 51,850 $ 8,509,762 $ - 5,172,309) ( 51,850 $ 3,337,453 $ 51,850 $ 3,337,453 $ - 103,061 - 367,279 - 194,851) ( - 4,799) ( - 395,765) ( - 119,813) ( 51,850 $ 3,092,565 $ 51,850 $ 8,455,120 $ - 5,362,555) ( 51,850 $ 3,092,565 $	Machinery and equipment Others 22,794,113 $ 4,940,438 $ 20,174,278) ( 4,087,663) ( 2,619,835 $ 852,775 $ 2,619,835 $ 852,775 $ 241,473 188,811 12,876 21,855 - - 346,408) ( 28,045) ( 842,537) ( 311,147) ( 62,513) ( 27,028) ( 1,622,726 $ 697,221 $ 18,457,368 $ 4,391,845 $ 16,834,642) ( 3,694,624) ( 1,622,726 $ 697,221 $	Construction in progress and equipment under acceptance Total 653,542 $ 36,949,705 $ - 29,434,250) ( 653,542 $ 7,515,455 $ 653,542 $ 7,515,455 $ 245,031 778,376 402,010) ( - - 194,851) ( - 379,252) ( - 1,549,449) ( 18,527) ( 227,881) ( 478,036 $ 5,942,398 $ 478,036 $ 31,834,219 $ - 25,891,821) ( 478,036 $ 5,942,398 $

The significant components of buildings and structures include main plants and leasehold improvements, which are depreciated over 20~55 and 3~11 years, respectively.

146 ~39~

(9) Leasing arrangements - lessee

A. The Group leases various assets including land use right, buildings and structures as well as other equipment. Except for the rental period of land use right which is 50 years, rental contracts are typically made for periods of 1 to 5 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
B. Short-term leases with a lease term of 12 months or less comprise business vehicles.
C. The carrying amount of right-of-use assets and the depreciation expense are as follows:

Land use right Buildings and structures Others Land use right Buildings and structures Others		December 31,2020 December 31,2019 Carryingamount Carryingamount 808,260 $ 821,111 $ 302,662 444,485 13,855 17,178 1,124,777 $ 1,282,774 $ Years ended December 31,	December 31,2020 December 31,2019 Carryingamount Carryingamount 808,260 $ 821,111 $ 302,662 444,485 13,855 17,178 1,124,777 $ 1,282,774 $ Years ended December 31,
	2020 Depreciation expense 21,914 $ 144,467 8,531 174,912 $		2019 Depreciation expense 24,897 $ 287,361 15,907 328,165 $

D. For the years ended December 31, 2020 and 2019, the additions to right-of-use assets amounted to $5,071 and $77,270, respectively.
E. Information on profit or loss in relation to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets		Years ended December 31,	Years ended December 31,
		2020 19,291 $ 131,035 $ 5,648	2019 51,375 $ 46,696 4,599

F. For the years ended December 31, 2020 and 2019, the Group’s total cash outflow for leases amounted to $305,302 and $435,590, respectively.
G. Information about the right-of-use assets that were pledged to others as collateral is provided in Note 8.
(10) Leasing arrangements - lessor
A. The Group leases various assets including buildings. Rental contracts are typically made for periods of 1 and 5 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
B. For the years ended December 31, 2020 and 2019, the Group recognized rent income in the amounts of $267,727 and $218,538, respectively, based on the operating lease agreement, which does not include variable lease payments.
C. The maturity analysis of the lease receivables under the operating leases is as follows:

~40~ 147

2021 2022 2023 2024 2025	December 31,2020 90,806 $ 2020 62,087 2021 8,753 2022 3,540 2023 1,286 2024 166,472 $	December 31,2019
		166,693 $ 156,175 20,489 8,062 1,831
		353,250 $

The rent income recognized by the Group is measured based on the area actually used by the lessee. The lease receivables listed above are calculated based on the area actually used by the lessee at each of the balance sheet date.

(11) Investment property

f the balance sheet date. Investment property
At January 1 Cost Accumulated depreciation and impairment Opening net book amount as of January 1 Transfer in Depreciation expense Net exchange differences Closing net book amount as of December 31 At December 31 Cost Accumulated depreciation and impairment		2020
	Land $ 95,910 - 95,910 $ $ 95,910 - - - 95,910 $ $ 95,910 - 95,910 $	Buildings and structures Total 1,989,417 $ 2,085,327 $ 1,053,222) ( 1,053,222) ( 936,195 $ 1,032,105 $ $ 936,195 1,032,105 $ 345,459 345,459 112,955) ( 112,955) ( 14,436 14,436 1,183,135 $ 1,279,045 $ 2,462,318 $ 2,558,228 $ 1,279,183) ( 1,279,183) ( 1,183,135 $ 1,279,045 $	Total
			1,279,045 $

148 ~41~

At January 1 Cost Accumulated depreciation and impairment Opening net book amount as of January 1 Transfer in Depreciation expense Net exchange differences Closing net book amount as of December 31 At December 31 Cost Accumulated depreciation and impairment	Land Buildings and structures Total $ 95,910 1,855,197 $ 1,951,107 $ - 981,087) ( 981,087) ( 95,910 $ 874,110 $ 970,020 $ $ 95,910 $ 874,110 970,020 $ - 194,851 194,851 - 97,308) ( 97,308) ( - 35,458) ( 35,458) ( 95,910 $ 936,195 $ 1,032,105 $ $ 95,910 1,989,417 $ 2,085,327 $ - 1,053,222) ( 1,053,222) ( 95,910 $ 936,195 $ 1,032,105 $ 2019

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

property are shown below:
Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the year	Years ended December 31,
	2020 161,752 $ 112,955 $	2019
		171,802 $
		97,308 $

B. The fair value of the investment property held by the Group as of December 31, 2020 and 2019 was $2,219,072 and $1,919,825, respectively. Valuations were made using the comparative method which is categorized within Level 3 in the fair value hierarchy.

~42~ 149

(12) Intangible assets

Intangible assets
				2020
	Patent rights and
		technical skills		Goodwill		Total
At January 1
Cost	$	567,563	$	1,133,371	$	1,700,934
Accumulated amortization	(	122,972)		-	(	122,972)
	$	444,591	$	1,133,371	$	1,577,962
January 1	$	444,591	$	1,133,371	$	1,577,962
Amortization	(	118,095)		-	(	118,095)
Net exchange differences		8,389		13,031		21,420
December 31	$	334,885	$	1,146,402	$	1,481,287
At December 31
Cost	$	449,703	$	1,146,402	$	1,596,105
Accumulated amortization	(	114,818)		-	(	114,818)
	$	334,885	$	1,146,402	$	1,481,287
				2019
	Patent rights and
		technical skills		Goodwill		Total
At January 1
Cost	$	589,672	$	1,177,520	$	1,767,192
Accumulated amortization		-		-		-
	$	589,672	$	1,177,520	$	1,767,192
January 1	$	589,672	$	1,177,520	$	1,767,192
Amortization	(	127,848)		-	(	127,848)
Net exchange differences	(	17,233)	(	44,149)	(	61,382)
December 31	$	444,591	$	1,133,371	$	1,577,962
At December 31
Cost	$	567,563	$	1,133,371	$	1,700,934
Accumulated amortization	(	122,972)		-	(	122,972)
	$	444,591	$	1,133,371	$	1,577,962

A. As of December 31, 2020 and 2019, goodwill allocated to the cash-generating units of production and sales of mechanical components’ operating segments amounted to $1,146,402 and $1,133,371, respectively.
B. The goodwill recoverable amount of all cash-generating units has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by the management covering a five-year period. Cash flows beyond the fiveyear period were extrapolated using the estimated growth rates stated below.
C. The recoverable amount of all cash-generating units calculated using the value-in-use exceeded their carrying amount, so goodwill was not impaired. The key assumptions used for value-in-use

150 ~43~

calculations are as follows:

calculations are as follows:
China Gross margin Growth rate Discount rate	Years ended December 31,
	2020 14.65% 2% 14.29%	2019
		14.50% 2% 15.96%

Management determined budgeted gross margin based on past performance and their expectations of market development. The weighted average growth rates used are consistent with the projection included in industry reports. The discount rates used were pre-tax and reflected specific risks relating to the relevant operating segments.

(13) Short-term loans

Short-term loans
Type of loans Bank loans Unsecured loans Other short-term loans Type of loans Bank loans Secured loans Unsecured loans Other short-term loans	December 31,2020 15,850,580 95,801 15,946,381 $ December 31,2019 134,750 $ 15,535,975 $ 94,711 15,765,436 $	Interest rate range	Collateral
		0.48%~0.97% 4.35% Interest rate range	None " Collateral
		5.66% 0.59%~3.20% 4.35%	Land use right None "

A. Information on abovementioned collateral is provided in Note 8.
B. The Group has signed an agreement to offset financial assets and liabilities with financial institutions. Details of the offset as of December 31, 2020 and 2019 are as follows:

December 31, 2020

	December 31,2020
Gross amount of recognized financial liabilities 2,795,447 $	Gross amount of recognized financial assets in the balance sheet 2,795,447 $ December 31,2019	Net amount of financial liabilities presented in the balance sheet
		- $

Gross amount of recognized financial liabilities 4,035,690 $	Gross amount of recognized financial assets in the balance sheet 4,035,690 $	Net amount of financial liabilities presented in the balance sheet
		- $

151 ~44~

(14) Other payables

Other payables
Payable for purchases made by parties on behalf of others Awards and salaries payable Payable on mold expense Employees’ compensation payable Consumption goods expense payable General operating expense payable Processing fees payable Repairs and maintenance expense payable Payables for miscellaneous purchases Employee benefits payable Payables for equipment Others	December 31,2020 2,025,556 $ 1,979,078 1,297,678 1,296,708 1,090,445 466,431 464,948 389,238 375,500 200,214 190,814 1,075,133 10,851,743 $	December 31,2019
		56,713 $ 1,920,762 560,989 1,460,134 1,421,777 331,324 419,639 149,090 510,735 174,176 55,068 1,643,426
		8,703,833 $

(15) Pensions

A. Defined benefit plans

(a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.

(b) The amounts recognized in the balance sheet are as follows (shown as ‘other non-current liabilities’):

liabilities’):
	December	31,2020	December	31,2019
Present value of defined benefit obligations	($	67,933)	($	57,744)
Fair value of plan assets		34,299		39,056
Net defined benefit liability	($	33,634)	($	18,688)

~45~ 152

(c) Movements in net defined benefit liabilities are as follows:

		Present value of	Present value of
		defined benefit				Fair value of		Net defined
			obligations			plan assets	benefit liability
2020
Balance at January 1	($		57,744)	$		39,056	($	18,688)
Past service cost	(		528)			-	(	528)
Interest income	(		462)			319	(	143)
	(		58,734)			39,375	(	19,359)
Remeasurements
Return on plan assets (Note)			-			1,266		1,266
Change in demographic
assumptions	(		567)			-	(	567)
Change in financial
assumptions	(		2,833)			-	(	2,833)
Experience adjustments	(		13,650)			-	(	13,650)
	(		17,050)			1,266	(	15,784)
Pension fund contribution			-			1,509		1,509
Paid pension			7,851	(		7,851)		-
			7,851	(		6,342)		1,509
Balance at December 31	($		67,933)	$		34,299	($	33,634)
		Present value of
		defined benefit				Fair value of		Net defined
			obligations			plan assets	benefit liability
2019
Balance at January 1	($		51,634)		$	38,843	($	12,791)
Current service cost			-			-		-
Interest income	(		581)			446	(	135)
	(		52,215)			39,289	(	12,926)
Remeasurements
Return on plan assets (Note)			-			1,433		1,433
Change in demographic
assumptions	(		345)			-	(	345)
Change in financial
assumptions	(		1,724)			-	(	1,724)
Experience adjustments	(		6,853)			-	(	6,853)
	(		8,922)			1,433	(	7,489)
Pension fund contribution			-			1,727		1,727
Paid pension			3,393	(		3,393)		-
			3,393	(		1,666)		1,727
Balance at December 31	($		57,744)	$		39,056	($	18,688)

Note: The amount included in interest income or expense is excluded.

153 ~46~

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after approval by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2020 and 2019 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.
(e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	Years ended December 31,	Years ended December 31,
	2020 0.35% 2.00%	2019
		0.80%
		2.00%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

December 31,2020 Effect on present value of defined benefit obligation December 31,2019 Effect on present value of defined benefit obligation	Increase Decrease Increase Decrease 0.25% 0.25% 0.25% 0.25% 1,603 $ 1,657) ($ 1,585) ($ 1,542 $ 1,350 $ 1,396) ($ 1,340) ($ 1,303 $ Discount rate Future salaryincreases	Future salaryincreases	Future salaryincreases
			Decrease 0.25%
			1,542 $
			1,303 $

The sensitivity analysis above was based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

(f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2021 are $1,320.

B. Defined contribution plans

(a) Effective July 1, 2005, the Company and its domestic subsidiaries have 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 and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of

154 ~47~

Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

(b) The subsidiaries in mainland China have defined contribution pension plans and the Group contributes an amount monthly based on 14%~20% of employees’ monthly salaries and wages to an independent fund administered by a government agency. The plan is administered by the government of mainland China. Other than the monthly contributions, the Group does not have further pension liabilities.
(c) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2020 and 2019 were $392,218 and $620,396, respectively. Due to the impact of the Covid-19 pandemic on China in 2020, the Chinese government has reduced the pension contributions by half from February 2020 for a duration of 5 months.
(16) Share capital

As of December 31, 2020, the Company’s authorized capital was $15,000,000 (including subscription warrant or 50 million shares reserved for convertible bonds issued by the Company), and the paid-in capital was $14,144,852, consisting of 1,414,485 thousand ordinary shares with a par value of $10 (in dollars) per share.

(17) Capital surplus

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 Law requires that the amount of capital surplus to be capitalized 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.

(18) Retained earnings

A. In accordance with the Company’s Articles of Incorporation, current year’s earnings must be distributed in the following order:
(a) Covering accumulated deficit;
(b) Setting aside as legal reserve equal to 10% of current year’s net income after tax and distribution pursuant to clause (A). However, this limit is not applicable when the legal reserve has reached the paid-in capital; and
(c) Setting aside a special reserve in accordance with applicable legal and regulatory requirements.

The remaining earnings along with the unappropriated earnings at the beginning of the period are considered as accumulated distributable earnings. In accordance with the dividend policy, the proposal of earnings appropriation is prepared by the Board of Directors and resolved by the shareholders.

The Board of Directors is authorized to appropriate dividends, bonuses, capital surplus, or legal reserve either entirely or partially in cash, with at least two-thirds of the members of the Board of Directors in attendance at a board meeting, and approved by more than half of the directors present. The above appropriation does not require approval by the shareholders.

The Company is at the growing stage. The Company’s stock dividend policy shall consider the Company’s current and future investment environment, capital needs, local and foreign competition situation and capital budget, along with shareholders’ profit and the Company’s long-term financial plans. The shareholders’ dividends are appropriated based on accumulated distributable earnings, which shall not be lower than 15% of the distributable earnings for the period and the cash dividends shall not be less than 10% of the shareholders’ dividends.

~48~ 155

B. According to related regulations, 10% of the balance of earnings after tax less the accumulated loss of prior years should be set aside as legal reserve, until such legal reserve amount reaches the total authorized capital. 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. 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.
D. The appropriations of earnings for 2019 and 2018 had been resolved at the stockholders’ meeting on June 23, 2020 and June 21, 2019, respectively. Details are summarized below:

					Years ended December 31,	Years ended December 31,
			2019			2018
					Dividends per		Dividends per
		Amount		share(in dollars)		Amount	share(in dollars)
Legal reserve	$	712,980			$	914,666
Special reserve	(	46,492)				46,492
Cash dividends		3,536,213		$	2.5	4,526,353	3.2 $
	$	4,202,701			$	5,487,511
The appropriations	of earnings for 2020 as approved at the Board of Directors’ meeting as of
March 30, 2021 is as follows:
					Year ended December 31,		2020
						Dividends per
					Amount	share(in dollars)
Legal reserve				$	470,572
Cash dividends					2,546,073	$	1.8
				$	3,016,645

E. The appropriations of earnings for 2020 as approved at the Board of Directors’ meeting as of March 30, 2021 is as follows:

The information on distribution of earnings will be posted in the “Market Observation Post System” of the TSEC.

156 ~49~

2020

(19) Other equity items

(20)

Non-controlling interests
Unrealized gain
(loss) on financial
assets at fair value
through other
Currency
comprehensive
translation
income
adjustments
Total
At January 1
12,909,996
$ 6,126,569)
($ 6,783,427
$ Revaluation of fair value
2,262,646
-
2,262,646
Currency translation
differences:
- Group
-
1,506,215)
(
1,506,215)
(
- Associates
-
230,049)
(
230,049)
(
At December 31
15,172,642
$ 7,862,833)
($ 7,309,809
$ Unrealized gain
(loss) on
financial assets
at fair value
through other
Currency
comprehensive
translation
income
adjustments
Total
At January 1
2,531,519
$ 2,578,011)
($ 46,492)
($ Revaluation of fair value
10,378,477
-
10,378,477
Currency translation
differences:
- Group
-
3,530,804)
(
3,530,804)
(
- Associates
-
17,754)
(
17,754)
(
At December 31
12,909,996
$ 6,126,569)
($ 6,783,427
$ 2019
2020
2019
At January 1
13,815)
($ 78,273
$ Shares attributable to non-controlling interests:
Loss for the year
32,220)
(
92,687)
(
Currency translation differences
707)
(
599
At December 31
46,742)
($ 13,815)
($

157 ~50~

(21) Operating revenue

Revenue from contracts with customers

Years ended December31,	Years ended December31,
2020 104,789,599 $	2019
	99,802,129 $

The Group derives revenue from the transfer of goods and services at a point in time in the following categories:

categories:
Interest income Other income Electronic Production and products sales of mechanical tradingservices components Others Total Revenue from contracts with customers 77,513,692 $ 27,119,548 $ 156,359 $ 104,789,599 $ Year ended December 31,2020 Electronic Production and products sales of mechanical tradingservices components Others Total Revenue from contracts with customers 65,823,754 $ 33,797,040 $ 181,335 $ 99,802,129 $ Year ended December31,2019 2020 2019 Interest income from bank deposits 1,406,517 $ 1,428,216 $ Interest income from capital guarantee financial products 628,416 935,648 2,034,933 $ 2,363,864 $ Years ended December 31, 2020 2019 Government grants revenue 651,201 366,446 Rental revenue 267,727 218,538 Dividend income 377,254 394,167 Others 140,470 150,206 1,436,652 $ 1,129,357 $ Years ended December 31,	Year ended December 31,2020
	Electronic Production and products sales of mechanical tradingservices components Others 77,513,692 $ 27,119,548 $ 156,359 $ Year ended December31,2019	Total
		104,789,599 $

		Total
		99,802,129 $

(22) Interest income

(23) Other income

158 ~51~

(24) Other gains and losses

Other gains and losses
			Years ended	December 31,
			2020			2019
Gains on disposal of property, plant and equipment	$		238,298	$		140,844
Gains on disposal of investments			11,693			13,108
Net currency exchange gains			319,422			126,310
Gains on financial assets (liabilities) at fair value
through profit or loss	(		298,259)			42,544
Others	(		373,965)	(		183,622)
	($		102,811)	$		139,184
Expenses by nature
			Years ended	December 31,
			2020			2019
Employee benefit expense		$	7,432,771		$	8,614,971
Depreciation			1,439,165			1,974,922
Amortization			118,095			127,848
		$	8,990,031		$	10,717,741
Employee benefit expense
			Years ended	December 31,
			2020			2019
Wages and salaries		$	6,172,129		$	6,910,476
Labor and health insurance fees			269,713			330,750
Pension costs			392,889			620,531
Other personnel expenses			598,040			753,214
		$	7,432,771		$	8,614,971

(25) Expenses by nature

(26) Employee benefit expense

A. According to the Company’s Articles of Incorporation, if the Company accrues profit (referring to profit before tax prior to deducting the appropriation of employees’ compensation and directors’ remuneration), 4%~6% should be appropriated as employees’ compensation.
B. For the years ended December 31, 2020 and 2019, employees’ compensation was accrued at $223,876 and $325,135, respectively. The aforementioned amounts were recognized in salary expenses. For the years ended December 31, 2020 and 2019, the employees’ compensation was estimated and accrued based on 4% and 6% of profit of current year distributable as of the end of reporting period, respectively.
C. Employees’ compensation for 2020 and 2019 as resolved by the Board of Directors were in agreement with those amounts recognized in the 2020 and 2019 financial statements. In 2020 and 2019, the employees’ compensation was distributed in the form of cash amounting to $223,876 and $325,135, respectively.
D. Information about employees’ compensation of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.
E. Due to the impact of the Covid-19 pandemic on China in 2020, the Chinese government has

159 ~52~

reduced company contributions for health insurance by half from February 2020 for a duration of 5 months.

(27) Income tax

A. Components of income tax expense:

of 5 months. ome tax Components of income tax expense:
			Years ended December 31,
			2020			2019
Current tax:
Current tax on profits for the year	$		917,152	$		1,431,034
Tax on undistributed surplus earnings			142,094			181,368
Prior year income tax overestimation	(		184,849)	(		118,899)
Total current tax			874,397			1,493,503
Deferred tax:
Origination and reversal of temporary
differences	(		124,750)	(		154,339)
Income tax expense	$		749,647	$		1,339,164
Reconciliation between income tax expense and accounting			profit:
			Years ended	December 31,
			2020			2019
Tax calculated based on profit before tax and		$	1,395,713		$	2,344,829
statutory tax rate (Note)
Exempt income according to tax law	(		603,311)	(		1,068,134)
Additional tax on undistributed earnings			142,094			181,368
Prior year income tax overestimation	(		184,849)	(		118,899)
Income tax expenses			749,647			1,339,164
Origination and reversal of temporary differences			124,750			154,339
Prior year income tax overestimation			184,849			118,899
Prepaid income tax	(		323,418)	(		723,768)
Prior year income tax payable			162,382			139,705
Net exchange differences			3,224	(		31,062)
Current income tax liabilities		$	901,434		$	997,277

B. Reconciliation between income tax expense and accounting profit:

Note: The basis for computing the applicable tax rate are the rates applicable in the respective countries where the Group entities operate.

160 ~53~

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

Recognized in profit January1 or loss Temporary differences: Deferred tax assets: Reserve for inventory obsolescence and market price decline 3,146 $ - $ Permanent loss on market value decline of long-term equity investments 16,222 - Differences in useful lives of property, plant and equipment 485,594 215) ( Unused compensated absences for employees 15,764 5,442) ( Others 28,576 19,193 549,302 $ 13,536 $ Deferred tax liabilities: Foreign investment income using equity method 442,657) ($ 96,580 $ Unrealized exchange gain 41,018) ( 21,857) ( Unrealized valuation gain on financial instruments - - Others 200,312) ( 36,491 683,987) ($ 111,214 $			2020

161 ~54~

Recognized in profit January1 or loss Temporary differences: Deferred tax assets: Reserve for inventory obsolescence and market price decline 3,146 $ - $ Permanent loss on market value decline of long-term equity 16,222 - Differences in useful lives of property, plant and equipment 488,040 16,481 Unused compensated absences for employees 13,374 2,869 Others 42,719 17,682) ( 563,501 $ 1,668 $ Deferred tax liabilities: Foreign investment income using equity method 505,142) ($ 62,485 $ Unrealized exchange gain - 41,018) ( Unrealized valuation gain on financial instruments 105,530) ( 105,530 Others 233,770) ( 25,674 844,442) ($ 152,671 $			2019

~55~ 162

D. The Company did not recognize taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2020 and 2019, the temporary differences unrecognized as deferred tax liabilities were $97,587,869 and $98,103,567, respectively. Abovementioned taxable temporary differences arose from the differences between the estimated carrying amounts of long-term investments in foreign subsidiaries and tax payable. The Company will not dispose the subsidiaries in the foreseeable future nor remit back the earnings, and accordingly, deferred tax liabilities were not recognized.
E. The Company’s income tax returns through 2017 have been assessed and approved by the Tax Authority.

(28) Earnings per share

Authority. Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Year ended December 31,2020
	Amount after tax 4,718,343 $ 4,718,343 $ - 4,718,343 $	Weighted average number of ordinary shares outstanding (shares in thousands) 1,414,485 6,004 1,420,489	Earnings per share (in dollars)
			3.34 $
			3.32 $

~56~ 163

(29)	Supplemental cash flow information Investing activities with partial cash payments: Weighted average number of ordinary Earnings Amount shares outstanding per share after tax (shares in thousands) (in dollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent 7,129,801 $ 1,414,485 5.04 $ Diluted earnings per share Profit attributable to ordinary shareholders of the parent 7,129,801 $ Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 8,389 Shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 7,129,801 $ 1,422,874 5.01 $ Year ended December 31,2019 2020 2019 Purchase of property, plant and equipment 590,825 $ 778,376 $ Add: Opening balance of payable on equipment 55,068 447,938 Less: Ending balance of payable on equipment 190,814) ( 55,068) ( Cash paid during the year 455,079 $ 1,171,246 $ Years ended December 31, 2020 2019 Disposal of property, plant and equipment 345,611 $ 520,096 $ Add: Opening balance of receivable on equipment 264,637 47,250 Less: Ending balance of receivable on equipment 27,520) ( 264,637) ( Cash received during the year 582,728 $ 302,709 $ Years ended December 31,	Year ended December 31,2019	Year ended December 31,2019
			Earnings per share (in dollars)
			5.04 $
			5.01 $

164 ~57~

(30) Changes in liabilities from financing activities:

2020 At January 1 Changes in cash flows from financing activities Amortization of interest expense Additions Impact of changes in foreign exchange rate At December 31 2019 At January 1 Effect of initial adoption of IFRS 16 Balance at January 1 after adjustments Changes in cash flows from financing activities Amortization of interest expense Additions Remeasurement of lease liabilities Impact of changes in foreign exchange rate At December 31		Short-term loans	Lease liabilities	Total liabilities from financingactivities
		15,765,436 $ 144,765 - - 36,180 15,946,381 $ Short-term loans	472,199 $ 168,619) ( 19,291 5,071 2,980 330,922 $ Lease liabilities	16,237,635 $ 23,854) ( 19,291 5,071 39,160 16,277,303 $ Total liabilities from financingactivities
	13,877,029 $ - 13,877,029 1,978,783 - - - 90,376) ( 15,765,436 $		- $ 1,284,141 1,284,141 384,295) ( 51,375 77,270 572,922) ( 16,630 472,199 $	13,877,029 $ 1,284,141 15,161,170 1,594,488 51,375 77,270 572,922) ( 73,746) ( 16,237,635 $

165 ~58~

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

LATED PARTY TRANSACTIONS
Names of related parties and relationship

Names of relatedparties Relationshipwith the Group

Hon Hai Precision Industry Co., Ltd. and Subsidiaries
(Hon Hai and Subsidiaries)
Foxconn Precision Electronics (Taiyuan) Co., Ltd.
Pan-International Industrial Corporation and Subsidiaries
Eson Precision Ind. Co., Ltd. and Subsidiaries
Sharp Corporation and Subsidiaries
Innolux Corporation
CyberTAN Technology Inc. and Subsidiaries
General Interface Solution Holding Limited and Subsidiaries
Ennoconn Corporation and Subsidiaries
Fuyao Precision Component (Kunshan) Co., Ltd.
SIO International Holdings Limited Taiwan Branch
Qingdao Haiyuan Industrial Co., Ltd.
Hebi Gengde Electronics Co., Ltd.
Hangzhou Gengde Electronics Co., Ltd. Entities with significant
influence to the Group
〞
Other related party
〞
〞
〞
〞
〞
〞
〞
〞
〞
〞
〞

(2) Significant related party transactions

A. Sales

nificant related party transactions Sales gdao Haiyuan Industrial Co., Ltd. i Gengde Electronics Co., Ltd. gzhou Gengde Electronics Co., Ltd.	`〞` `〞` `〞`	`〞` `〞` `〞`
Sales of goods and services: Entities with significant influence to the Group -Hon Hai and Subsidiaries Other related parties	Years ended December 31,
	2020 18,424,975 $ 313,972 18,738,947 $	2019
		24,235,332 $ 98,099
		24,333,431 $

Except for circumstances in which there are no similar transactions for reference and the prices and credit periods are negotiated by both parties, the aforementioned related party is offered prices very close to those offered to other customers and given a payment period of 30 to 90 days. For transactions involving the sale of raw materials to the aforementioned related party and subsequent repurchase of goods made from the same raw materials from the same party, the initial sale of raw materials is eliminated due to economic substance.

B. Purchases

Purchases
Purchases of goods and services: Entities with significant influence to the Group -Hon Hai and Subsidiaries Other related parties	Years ended December 31,
	2020 70,386,346 $ 5,985,420 76,371,766 $	2019
		60,470,014 $ 4,440,251
		64,910,265 $

Except for circumstances in which there are no similar transactions for reference and the prices

~59~ 166

and payment terms are negotiated by both parties, the Group makes purchases from the aforementioned related party at the prevailing market price, with payment periods of 30 to 90 days.

C. Receivables from related parties

days. Receivables from related parties
	December 31,2020		December 31,2019
Accounts receivable:
Entities with significant influence to the Group
-Hon Hai and Subsidiaries	$	11,311,060	$	16,077,902
Other related parties		68,502		49,719
		11,379,562		16,127,621
Less: Allowance for bad debts	(	3,129)	(	4,848)
		11,376,433		16,122,773
Other receivables-purchases made on behalf of
associates:
Entities with significant influence to the Group
-Hon Hai and Subsidiaries		1,394,124		51,333
Other related parties		736,129		-
Other receivables-sale of property, plant and
equipment:
Entities with significant influence to the Group
-Hon Hai and Subsidiaries		631		86,365
		2,130,884		137,698
	$	13,507,317	$	16,260,471

The receivables from related parties arise mainly from sales transactions. The amount is due three months after the invoice date. The receivables are unsecured and non-interest bearing.

~60~ 167

D. Payables to related parties

Payables to related parties
Accounts payable: Entities with significant influence to the Group -Hon Hai and Subsidiaries Other related parties Other payables: Entities with significant influence to the Group -Hon Hai and Subsidiaries Payables for equipment Purchases made by associates on behalf of the Company Others Other related parties: Others	December 31,2020 20,904,215 $ 864,250 21,768,465 12,646 1,315 416,928 13,169 444,058 22,212,523 $	December 31,2019
		21,227,820 $ 1,189,274
		22,417,094
		7,862 10,916 554,610 18,069
		591,457
		23,008,551 $

Others Other related parties: Others $	Others Other related parties: Others $	416,928 13,169 444,058 22,212,523 $	416,928 13,169 444,058 22,212,523 $	554,610 18,069 591,457 23,008,551	554,610 18,069 591,457 23,008,551
The payables to related parties arise mainly from purchase		transactions and are		at arm’s-length,
non-interest bearing and payable within 30~90 days.
E. Management service fees payable
		Years ended	December 31,
		2020		2019
Management service fees
Entities with significant influence to the Group
-Hon Hai and Subsidiaries	$	4,920	$	337,338
F. Raw materials purchased on behalf of others
		Years ended December 31,
		2020		2019
Entities with significant influence to the Group
-Hon Hai and Subsidiaries
Raw materials purchased on behalf of associates	$	33,297,650	$	23,940,737
Associates purchasing raw materials on behalf
of the Group		6,182		1,077,796
Other related parties
Raw materials purchased on behalf of associates		1,839,924			-
	$	35,143,756	$	25,018,533

~61~ 168

G. Property transactions

(a) Acquisition of property:

erty transactions cquisition of property:
				Years ended		December		31,
				2020			2019
Acquisition of property, plant and		equipment:
Entities with significant influence		to the Group
-Hon Hai and Subsidiaries			$		79,014	$			103,497
Other related parties					392				-
			$		79,406	$			103,497
As of December 31, 2020, there were no major acquisitions of					property from related parties.
roceeds from sale of property, plant and equipment:
		Years ended December 31,
		2020				2019
	Proceeds from				Proceeds from
	sale of property,				sale of	property,
Sale of property, plant and		plant and			plant and
equipment:		equipment	Gain on sale		equipment		Gain on sale
Entities with significant
influence to the Group
-Hon Hai and Subsidiaries	$	261,255	$	188,036	$	112,174		$	99,682

As of December 31, 2020, there were no major acquisitions of property from related parties. (b) Proceeds from sale of property, plant and equipment:

H. Lease transactions - lessee

(a) The Group leases plant from entities with significant influence on the Group. Rental contracts are typically made for periods of 1 to 6 years. Rents are paid at the beginning or end of each month.

(b) Acquisition of right-of-use assets:

The Group acquired right-of-use assets from related parties amounting to $2,687 and $42,699 for the years ended December 31, 2020 and 2019, respectively. On January 1, 2019 (the date of initial application of IFRS 16), the Group increased right-of-use assets by $483,038.

(c) Lease liabilities:
i. Outstanding balance:

Lease liabilities: i. Outstanding balance:
ii. Interest expense Current: Entities with significant influence to the Group Non-current: Entities with significant influence to the Group Entities with significant influence to the Group	December 31,2020 142,017 $ 85,619 $ Year ended December 31,2020 14,020 $	December 31,2019
		133,935 $
		225,062 $
		Year ended December 31,2019
		21,481 $

~62~ 169

I. Loans to/ from related parties: Loans from related parties

(a) Outstanding balance (listed in “short-term loans”):

	December 31,2020	December 31,2020	December 31,2019
Other related parties	$	95,801	94,711 $
(b) Interest expense
		Years ended	December31,
		2020	2019
Other related parties	$	4,179	4,343 $
. Rentalincome
Foxconn Precision Electronics (Taiyuan) Co., Ltd. (referred herein as“Foxconn (Taiyuan)”), a
subsidiary of Hon Hai, leases part of plants, offices and dormitories in Taiyuan from the Group in
April, 2016. Lease price is agreed upon by both parties and the Group collects rent monthly from
Foxconn (Taiyuan) in accordance with the agreement. The rental income under operating leases
for the years ended December 31, 2020 and 2019	were $119,838 and $117,258, respectively.
Key management compensation
		Years ended December 31,
		2020	2019
Salaries and other short-term employee benefits	$	36,162	26,031 $
Post-employment benefits		524	523
Share-based payments		33,912	28,666
	$	70,598	55,220 $

J. Rental income

(3) Key management compensation

8. PLEDGED ASSETS

On December 31, 2020 and 2019, the book value of the Group’s assets pledged as collateral is as follows:

Pledge assets Land use right (shown as ‘right-of-use assets’) Pledged time deposits (shown as ‘financial assets at amortized cost - current’)	December 31,2020 December 31,2019 - $ 112,040 $ 17,647 $ 10,763 $ Book value	Purpose
	December 31,2020 - $ 17,647 $
		Short-term loanss Customs guarantee

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

(1) Contingencies None.

(2) Commitments

A. Capital expenditure contracted for at the balance sheet date but not yet incurred is as follows:

Capitalexpenditurecontracted for at the balance sheet	date but not yet incurr	ed is as follows:
Property, plant and equipment	December 31,2020 41,861 $	December 31,2019
		49,964 $

~63~ 170

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

As of March 30, 2021, the Board of Directors have approved the proposal for the appropriation of earnings in 2020, as described in Note 6(18).

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to operate with the goal 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 Group may adjust the amount of dividends paid to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total loans (including “current and non-current loans” as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as “equity” as shown in the consolidated balance sheet less total intangible assets.

During 2020, the Group’s strategy, which was unchanged from 2019, was to maintain the gearing ratio below 70%.

(2) Financial instruments

A. Financial instruments by category

io below 70%. nancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortized cost Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities at amortized cost Lease liabilities	December 31,2020 587,831 $ 36,601,116 111,230,783 148,419,730 $ 214,420 $ 56,382,273 56,596,693 $ 330,922 $	December 31,2019
		514,377 $ 35,327,626 109,130,056
		144,972,059 $
		99,427 $ 53,256,923
		53,356,350 $
		472,199 $

Note: Financial assets at amortized cost included cash, accounts receivable, accounts receivable wdue from related parties and other receivables; financial liabilities at amortized cost wincluded short-term loans, accounts payable, accounts payable to related parties and other wpayables.

B. Risk management policies

(a) Risk categories:

The Group employs a comprehensive financial risk management and control system to clearly identify, measure and control the various kinds of financial risk it faces, including market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

(b) Management objectives:

i. Except for market risk, which is controlled by outside factors, the remainder of the foregoing types of risks can be controlled internally or removed from business processes.

171 ~64~

Therefore, the goal in managing each of these risks is to reduce them to zero.

  - ii. As for market risk, the goal is to optimize its overall position through strict analysis, suggestion, execution and audit processes, and proper consideration of a) long-term trends in the external economic/financial environment, b) internal operating conditions, and c) the actual effects of market fluctuations.

  - iii. The Group’s overall risk management policy focuses on the unpredictable items in financial markets and seeks to reduce the risk that potentially pose adverse effects on the Group’s financial position and financial performance.

  - iv. For the information on the derivative financial instruments that the Group entered into, please refer to Note 6(2).

(c) Management system:
- i. Risk management is executed by the Group’s finance department by following policies approved by the Board. Through cooperation with the Group's operating units, finance department is responsible for identifying, evaluating and hedging financial risks.
- ii. The Board has a written policy covering overall risk management. It also has written policies covering specific issues, such as exchange rate risk, interest rate risk, credit risk, derivative and non-derivative financial instruments used, and the investment of excess working capital.
C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. Nature :

The Group is a multinational group in the Electronic manufacturing services industry. Most of the exchange rate risk from operating activities comes from:

(i) Foreign exchange risk arises from different exchange rates to functional currency as the invoice dates of accounts receivable and payable denominated in non-functional foreign currency are different. Because the amount after the assets and liabilities are offset is insignificant, income/loss is insignificant as well. (Note: The Group has several sites in various countries and thus is exposed to various foreign exchange risks. The main risk arises from USD and RMB.)
(ii) Changes in exchange rates of functional currencies to presentation currency at different timing will cause another foreign exchange risk.
(iii) Except for the above transactions (operating activities) recognized in the income statement, assets and liabilities recognized in the balance sheet and the net investment in foreign operations also result in the exchange rate risk.
ii. Management:
(i) For such risks, the Group has set up policies requiring companies in the Group to manage its exchange rate risks.
(ii) As to the exchange rate risk arising from the difference between various functional currencies and the reporting currency in the consolidated financial statements, it is managed by the Group’s finance department.
iii. Sources of risk:
(i) U.S. dollars and NT dollars:

Foreign exchange risk arises primarily from gains or losses from translating U.S. dollar-denominated assets, such as cash, cash equivalents, accounts receivable, other

172 ~65~

receivables and time deposits with maturity in excess of three months, and U.S. dollar-denominated liabilities, such as loans, accounts payable and other payables, into New Taiwan dollars.

(ii) U.S. dollars and RMB:

Foreign exchange risk arises primarily from gains or losses from translating U.S. dollar-denominated cash, cash equivalents, accounts receivable and other receivables, other assets, loans, accounts payable and other payables and other liabilities, into RMB.

iv. 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: functional currency) Financial assets Monetary items USD`：`NTD USD`：`RMB Non-monetary items Foreign operations USD`：`NTD Financial liabilities Monetary items USD`：`NTD USD`：`RMB	Foreign currency amount (in thousands) 661,979 $ 581,553 4,242,417 695,550 380,491	Exchange rate 28.48 6.5249 28.48 28.48 6.5249	Book value (NTD) 18,853,162 $ 16,562,629 120,824,032 19,809,264 10,836,384	Degree of variation 1% 1% 1% 1%	Effect on profit or loss
					188,532 $ 165,626 198,093 108,364

173 ~66~

December 31, 2019

(Foreign currency: functional currency) Financial assets Monetary items USD`：`NTD USD`：`RMB Non-monetary items Foreign operations USD`：`NTD Financial liabilities Monetary items USD`：`NTD USD`：`RMB	Foreign currency amount (in thousands) 452,771 661,966 3,980,566 624,622 436,913	Exchange rate 29.98 6.9762 29.98 29.98 6.9762	Book value (NTD) 13,574,075 $ 19,845,741 119,337,372 18,726,168 13,098,652	Degree of variation 1% 1% 1% 1%	Effect on profit or loss
					135,741 $ 198,457 187,262 130,987

v. Total exchange gain (loss), including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2020 and 2019 amounted to $319,422 and 126,310, respectively.

Price risk

i. Nature

The Group primarily invests in domestic and foreign publicly traded and unlisted equity instruments, which are accounted for as financial assets at fair value through other comprehensive income. The price of those equity instruments will be affected by the uncertainty of the future value of the investment.

ii. Extent

If the price of such equity instrument rises or falls by 1%, with all other factors held constant, the impact on other comprehensive income due to equity instruments measured at fair value through other comprehensive income would increase/decrease $366,011 and $353,276 for the years ended December 31, 2020 and 2019, respectively.

Cash flow and fair value interest rate risk

The Group’s interest rate risk arises from short-term loans. Short-term loans with floating rates expose the Group to cash flow interest rate risk, but most of the risks are offset by cash and cash equivalents with variable interest rates.

If short-term loans interest rates rise or fall by 1%, with all other factors held constant, profit after tax would decrease/increase by $9,305 and $20,110 for the years ended December 31, 2020 and 2019, respectively.

~67~ 174

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments.
According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. The Group assesses the credit quality of the customers by taking into account their financial position, past experience and other factors to conduct its internal risk management.

Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilization of credit limits is regularly monitored. Major credit risk arises from cash and cash equivalents, derivative financial instruments, deposits and short-term investments with banks and financial institutions, and other financial instruments. The counterparties are banks with good credit quality, financial institutions with investment grade credit ratings and government agencies, so there is no significant default concerns and credit risk.

ii. If the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
iii. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
(ii) The disappearance of an active market for that financial asset because of financial difficulties;
(iii) Default or delinquency in interest or principal repayments;
(iv) Adverse changes in national or regional economic conditions that are expected to cause a default.
iv. The ageing analysis of accounts receivable (including related parties) as follows:

Not past due 0 to 90 days 91 to 180 days 181 to 270 days 271 to 360 days Over 361 days	December 31,2020 25,451,974 $ 4,193,759 - 1,632 31 341 29,647,737 $	December 31,2019
		22,637,102 $ 6,571,514 275,907 56,099 12,860 26,722
		29,580,204 $

The above ageing analysis was based on past due date.

v. As of December 31, 2020 and 2019, accounts receivable (including related parties) and notes receivable were all from contracts with customers. As of January 1, 2019, the balance of receivables (including related parties) from contracts with customers amounted to $32,150,875.
vi. The Group assesses the expected credit losses of accounts receivable (including related parties) as follows:

175 ~68~

(i) Accounts receivable are divided into segments according to the Group’s credit rating standards; expected credit losses for each segment are assessed based on the specific loss rate or provision matrix for the segment.
(ii) Loss rates are calculated based on past and current information, taking into account forward-looking information provided by the Business Indicators Database of the National Development Council and the Basel Committee on Banking Supervision.
(iii) As of December 31, 2020 and 2019, the loss allowance for accounts receivable (including related parties), assessed using loss rate or provision matrix, is as follows:

December 31, 2020 Expected loss rate Total book value Allowance for bad debts December 31, 2019 Expected loss rate Total book value Allowance for bad debts	Group1 and 2 0.0285% 27,747,935 $ 7,917 $ Group1 and 2 0.03% 27,027,980 $ 8,104 $	Group3 0.0665% 803,727 $ 535 $ Group3 0.07% 1,845,826 $ 1,293 $	Group4 0.0665% 1,096,075 $ 729 $ Group4 0.07% 706,398 $ 495 $	Total
				29,647,737 $
				9,181 $
				Total
				29,580,204 $
				9,892 $

Group 1: Standard Poor’s, Fitch’s, or Moody’s rating of A-level, or rated as A-level in accordance with the Group’s credit policies for those that have no external credit ratings.
Group 2: Standard Poor’s or Fitch’s rating of BBB, Moody’s rating of Baa, or rated as B or C in accordance with the Group’s credit policies for those that have no external credit ratings.
Group 3: Standard Poor’s or Fitch’s rating of BB + and below, or Moody’s rating of Ba1 and below.
Group 4: Rated as other than A, B, or C in accordance with the Group’s credit policies for those that have no external credit ratings.
vii. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable (including related parties) is as follows:

		2020
At January 1	$		9,892
Gain on reversal of expected credit impairment loss	(		699)
Effect of foreign exchange	(		12)
At December 31	$		9,181
		2019
At January 1	$		11,098
Gain on reversal of expected credit impairment loss	(		976)
Effect of foreign exchange	(		230)
At December 31	$		9,892

176 ~69~

(c) Liquidity risk

i. Cash flow forecasting is performed by each of the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed loan facilities at all times so that the Group does not breach loan limits or covenants (where applicable) on any of its loan facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable external regulatory or legal requirements, for example, currency restrictions.
ii. The Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities.
Except for lease liabilities listed below, as of December 31, 2020 and 2019, the Group’s non-derivative financial liabilities (including short-term loans, accounts payable and other payables) and derivative financial liabilities (including foreign exchange contracts, cross currency swap contracts and forward foreign exchange contracts) will expire within 1 year.

1 year.
December 31, 2020	Less than 1year	Between 1 to 2years	Over 2years	Total
	169,096 $ Less than 1year	47,159 $ Between 1 to 2years	166,832 $ Over 2years	383,087 $ Total
Lease liability December 31,2019 Lease liability
	168,937 $	165,327 $	208,535 $	542,799 $

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability takes place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in derivative instruments is included in Level 2.
Level 3: Unobservable inputs for the asset or liability.
B. Fair value information of investment property at cost is provided in Note 6(11).
C. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:
(a) The related information on the nature of the assets and liabilities is as follows:

177 ~70~

December 31, 2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Derivative instruments Financial assets at fair value through profit or loss-non-current fund Financial assets at fair value through other comprehensive income Equity instruments Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Derivative instruments December 31, 2019 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Derivative instruments Financial assets at fair value through profit or loss-non-current fund Financial assets at fair value through other comprehensive income Equity instruments Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Derivative instruments	Level 1 - $ - $ 32,396,608 $ - $ Level 1 - $ - $ 33,042,314 $ - $	Level 2 63,079 $ - $ - $ 214,420 $ Level 2 21,081 $ - $ - $ 99,427 $	Level 3 - $ 524,752 $ 4,204,508 $ - $ Level 3 - $ 493,296 $ 2,285,312 $ - $	Total
				63,079 $
				524,752 $
				36,601,116 $
				214,420 $
				Total
				21,081 $
				493,296 $
				35,327,626 $
				99,427 $

~71~ 178

(b) The methods and assumptions the Group used to measure fair value are as follows:
i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares

  - Market quoted price Closing price

ii. The fair value of foreign investment fund is measured by reference to counterparty quotes.
iii. When assessing non-standard and low-complexity financial instruments, for example, interest rate swap contracts and foreign exchange contracts, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate.
v. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, liquidity risk and etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and nonfinancial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.
vi. The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.
D. For the years ended December 31, 2020 and 2019, there was no transfer into or out from Level 3.
E. The financial assets at fair value through profit or loss, categorized within Level 3 on December 31, 2020 pertain to the investment fund partnership invested through the subsidiary, Hon Fujin Precision Industry (Taiyuan) Co., Ltd. and equity investment in FE HOLDINGS USA, INC. and VIZIO Inc. invested through the subsidiary, Q-Run Holdings Ltd.. The qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation models used in Level 3 measurement are net asset value and market price method.

179 ~72~

Non-derivative
equity
instrument:
Private equity
fund
investment
Unlisted
shares
Unlisted
shares
Non-derivative
equity
instrument:
Private equity
fund
investment
Unlisted
shares

Fair value
Significant
Range
Relationship
at December,
Valuation
unobservable
(weighted
of inputs to
31,2020
technique
input
average)
fair value
524,752
$ Net asset value
Not applicable Not applicable Not applicable
2,134,544
$ Net asset value
Not applicable Not applicable Not applicable
2,069,964
$ Market price
method
P/E multiplier
P/S multiplier
7.80
0.24
The higher the
multiplier, the
higher the fair
value
Fair value
Significant
Range
Relationship
at December,
Valuation
unobservable
(weighted
of inputs to
31,2019
technique
input
average)
fair value
493,296
$ Net asset value
Not applicable Not applicable Not applicable
2,285,312
$ Net asset value
Not applicable Not applicable Not applicable

F. The Group has carefully assessed the valuation models and parameters used to measure fair value. However, use of different valuation models or parameters may result in different measurement. The following is the effect on profit or loss from financial assets categorized within Level 3 if the inputs used to valuation models have changed:

Financial assets Equity instruments	Input Multipliers of the price-to- earnings ratio and price-to- sales ratio	Change ±1%		Favourable Unfavourable change change - $ - $ December 31,2020 inprofit or loss Recognized	Favourable Unfavourable change change - $ - $ December 31,2020 inprofit or loss Recognized	Favourable Unfavourable change change - $ - $ December 31,2020 inprofit or loss Recognized		Favourable Unfavourable change change 20,700 $ 20,700 $ December 31,2020 Recognized in other comprehensive income	Favourable Unfavourable change change 20,700 $ 20,700 $ December 31,2020 Recognized in other comprehensive income	Favourable Unfavourable change change 20,700 $ 20,700 $ December 31,2020 Recognized in other comprehensive income
				Favourable change				Favourable change
				- $		- $		20,700 $		20,700 $

180 ~73~

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 reaching $300 million or 20% of paid-in capital or more: Please refer to table 4.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $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: Please refer to Notes 6(2), 6(25) and 12(3).
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, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 7.

(4) Information of major shareholders

Major shareholders information: Please refer to table 10.

14. SEGMENT INFORMATION

(1) General information

The Group is primarily engaged in the assembly and sales of cases, heat dissipation modules and consumer electronics products. The chief operating decision-maker manages abovementioned items by business activities. Currently, business activities can be categorized into trading services of electronic products and manufacturing and sales of mechanism and components.

Revenue and operating income of operating segments are used by the Group’s chief operating decision-maker for imputation of internal costs and allocation of expenses to segment profit (loss) and are used as an indication for assessment of performance and allocation of resources.

(2) Measurement of segment information

The financial information of reportable segments provided to the chief operating decision maker is as follows:

181 ~74~

Year	ended December 31,2020	ended December 31,2020
Electronic products tradingservices 77,513,692 $ 623,156 78,136,848 $ 2,444,272 $ 3,935 $ 13,119 $ 120,554 $ - $ Year	Production and sales of mechanical components Total 27,119,548 $ 104,633,240 $ 2,076,744 2,699,900 29,196,292 $ 107,333,140 $ 1,811,325 $ 4,255,597 $ 1,552,310 $ 1,556,245 $ 2,021,814 $ 2,034,933 $ 128,745 $ 249,299 $ - $ - $ ended December 31,2019	Total
		104,633,240 $ 2,699,900
		107,333,140 $
		4,255,597 $
		1,556,245 $
		2,034,933 $
		249,299 $
		- $
Electronic products tradingservices 65,823,754 $ 712,353 66,536,107 $ 2,315,241 $ 7,169 $ 171,341 $ 337,293 $ - $	Production and sales of mechanical components 33,797,040 $ 2,003,692 35,800,732 $ 4,052,311 $ 2,093,847 $ 2,192,227 $ 69,348 $ - $	Total
		99,620,794 $ 2,716,045
		102,336,839 $
		6,367,552 $
		2,101,016 $
		2,363,568 $
		406,641 $
		- $

Note: The measurement of operating segment assets is not provided to the operating decision-maker; thus, the measurement that shall be disclosed is zero.

(3) Reconciliation for segment income (loss)

Sales between segments are carried out at arm’s length. The revenue from external parties reported to the chief operating decision-maker is measured in a manner consistent with that in the income statement.

A reconciliation of reportable segment profit or loss to the profit/ (loss) before tax and discontinued operations for the years ended December 31, 2020 and 2019 is provided as follows:

~75~ 182

			Years ended December 31,	Years ended December 31,	Years ended December 31,
Operatingrevenue			2020		2019
Reportable segments income	$		107,333,140	$	102,336,839
Other segments income			156,359		181,335
Elimination of inter-segment revenue	(		2,699,900)	(	2,716,045)
Total corporate revenue	$		104,789,599	$	99,802,129
			Years ended December 31,
Profit and loss			2020		2019
Profit of reported segment	$		4,255,597	$	6,367,552
Profit of other operating segments			430,526		669,562
Profit before income tax	$		4,686,123	$	7,037,114
Information on product
			Years ended December 31,
			2020		2019
Electronic products		$	77,513,692	$	65,823,754
Mechanism and components			27,119,548		33,797,040
Others			156,359		181,335
		$	104,789,599	$	99,802,129

(4) Information on product

(5) Geographical information

Geographical information for the years ended December 31, 2020 and 2019 is as follows: Years ended December 31,

Non-current Revenue assets 26,392,939 $ 8,696,430 $ 72,595,317 - 1,433,056 193,518 827,084 23 3,541,203 6 104,789,599 $ 8,889,977 $ 2020	2019	2019
Revenue 26,392,939 $ 72,595,317 1,433,056 827,084 3,541,203 104,789,599 $	Revenue 31,255,589 $ 61,241,815 1,561,632 1,223,767 4,519,326 99,802,129 $	Non-current assets
		9,687,827 $ - 197,551 2 9
		9,885,389 $

(6) Major customer information

Details of customers contributing more than 10% of operating revenue of the Group for the years ended December 31, 2020 and 2019 are as follows:

Years ended December 31,

Customer A Group B Group	Revenue % 72,498,904 $ 69% 18,424,975 18% 90,923,879 $ 2020	2019	2019
	Revenue 72,498,904 $ 18,424,975 90,923,879 $	Revenue 60,618,293 $ 24,235,332 84,853,625 $	%
			61% 24%

183 ~76~

Foxconn Technology Co., Ltd. and Subsidiaries

Table 1

Loans to others

Year ended December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a relatedparty	Maximum outstanding balance during the year ended December 31,2020	Balance at December 31,2020	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Note
													Item	Value
1 1 2	Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD.	Qingdao Hiyn Materials Co., Ltd. Fuzhun Precision Industy (Shenyang) Co., Ltd. YanTai Fuzhun Precision Electronics Co., Ltd.	Other receivables Other receivables Other receivables	Y Y Y	217,960 $ 192,808 607,100	158,538 $ 191,602 569,600	130,865 $ 139,347 569,600	4.35000% 3.91500% 0.49138%	Short-term financing Short-term financing Short-term financing	$ - - -	Business operation Business operation Business operation	$ - - -	Land None None	332,711 $ - -	4,075,034 $ 33,094,649 33,094,649	16,300,135 $ 66,189,298 66,189,298	Note 1 Note 2 Note 2

Note 1: For short-term loans, limit on loans granted for a single party is 10% of the lending company’s net assets and ceiling on total loans is 40% of the Company’s net assets based on the latest audited or reviewed financial statements. Note 2: Limit on loans granted for a single foreign company whose voting rights are 100% owned directly and indirectly by the Company is 30% of the Company’s net assets and 60% for ceiling on total loans. Note 3: Limit on loans granted for a single foreign company whose voting rights are 100% owned directly and indirectly by the Company is 200% of the net assets of the creditor's subsidiary and 400% for ceiling on total loans.

Table 1, Page 1 184

Foxconn Technology Co., Ltd. and Subsidiaries Provision of endorsements and guarantees to others

For the year ended December 31, 2020

Number （Note1） Table 2	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party （Note 3）	Maximum outstanding endorsement/ guarantee amount as of December 31, 2020 （Note4）	Outstanding endorsement/ guarantee amount at December 31, 2020 （Note 5）	Actual amount drawn down （Note 6）	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 （Note 3）	Provision of endorsements/ guarantees by parent company to subsidiary （Note 7）	Provision of Provision of endorsements/ endorsements/ guarantees by guarantees to subsidiary to the party in parent Mainland company China （Note 7）（Note 7） Footnote Expressed in thousands of NTD (Except as otherwise indicated)	Provision of Provision of endorsements/ endorsements/ guarantees by guarantees to subsidiary to the party in parent Mainland company China （Note 7）（Note 7） Footnote Expressed in thousands of NTD (Except as otherwise indicated)	Provision of Provision of endorsements/ endorsements/ guarantees by guarantees to subsidiary to the party in parent Mainland company China （Note 7）（Note 7） Footnote Expressed in thousands of NTD (Except as otherwise indicated)
		Companyname	Relationship with the endorser/ guarantor （Note2）
0 1 2 3	Foxconn Technolog y Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Fu Yu Precision Component (Kunshan) Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd.	Foxconn Technology Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Fu Yu Precision Component (Kunshan) Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd.	1 1 1 1	110,315,497 $ 40,750,340 7,091,657 7,213,963	2,000 $ 18,178 79 21,910	2,000 $ 7,838 78 21,773	2,000 $ 7,838 78 21,773	- $ 7,838 - -	0.00% 0.01% 0.00% 0.02%	110,315,497 $ 40,750,340 7,091,657 7,213,963	N N N N	N N N N	Y Y Y Y	Note 8 Note 9 Note 9 Note 9

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:

(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: Ceiling on total endorsements/guarantees granted by the Company is 100% of the Company's net assets and the limit on endorsements/guarantees provided for a single party is 50% of the Company's net assets; limit on total endorseme granted by the Company and its subsidiaries is 100% of the Company and its subsidiaries' net assets, the limit on endorsements/guarantees provided for a single party is 50% of the Company's net assets; limit on total guarantees related granted by and for the Company and its subsidiaries is 100% of the Company and its subsdiaries' net assets, and limit on guarantees provided for a single party is 100% of its subsidiaries. Note 4: Maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

Note 5: Fill in the amount approved by the Board of Directors or the chariman if the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China. Note 8: The Company provided tax-related guarantees for itself.

Note 9: The Company and its subsidiaries provided tax-related guarantees for themselves.

Table 2, Page 1 185

Foxconn Technology Co., Ltd. and Subsidiaries 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)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December31,2020	As of December31,2020		Note
				Number of shares	Bookvalue	Ownership (%)	Fairvalue
Foxconn Technology Co., Ltd. 〞〞〞 Huazhun Investment Co., Ltd. 〞 Q-Run Holdings Ltd. 〞〞 Foxconn Technology Pte. Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd 〞 Fuzhun Precision (Shenzhen) Industry Co., Ltd.	Common stock of CyberTAN Technology Inc. Common stock of Pan-International Industrial Corp. Common stock of Innolux Corporation Common stock of Advanced Optoelectronic Technology, Inc. Common stock of Innolux Corporation Common stock of Advanced Optoelectronic Technology, Inc. Common stock of China Harmony Auto Holding Ltd. Common stock of FE Holdings USA, Inc. Preferred stock of VIZIO Inc. Common stock of Sharp Corporation Jinan Fujie Industrial Investment Fund Partnership (limited partnership) Guangdong Finance Trust - Peng Yun Tian Hua Collection Fund Trust Guangdong Finance Trust - Peng Yun Tian Hua Collection Fund Trust Guangdong Finance Trust - Peng Yun Tian Hua Collection Fund Trust	None 〞〞〞〞〞〞〞〞〞〞〞〞〞	Financial assets at fair value through other comprehensive income - non-current 〞〞〞〞〞〞〞〞〞 Financial assets at fair value through profit or loss - non-current Financial assets at amortized cost - non-current 〞〞	10,035,348 1,079,986 127,556,349 1,000 121,036,800 7,672,000 38,452,340 8,040 67,368 64,640,000 - - - -	181,640 $ 27,701 1,798,545 30 1,706,619 232,462 520,969 2,134,544 2,069,964 27,928,642 524,752 217,730 2,177,300 217,730	3.05 0.21 1.31 0 1.25 5.31 2.44 11.93 Note 1 12.14 9.09 - - -	181,640 $ 27,701 1,798,545 30 1,706,619 232,462 520,969 2,134,544 2,069,964 27,928,642 524,752 217,730 2,177,300 217,730

Note 1: As of December 31, 2020, the Company owns 67,368 shares of preferred stock in VIZIO Inc., with an ownership interest of 50% in the preferred stock, but no voting rights.

Table 3, Page 1 186

Table 4

Foxconn Technology Co., Ltd. and Subsidiaries

Aggregate purchases or sale of the same securities reaching $300 million or 20% of paid-in capital or more

Year ended December 31, 2020

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Marketable securities	General ledger account	Counterparty (Note 4)	Relationship with the investor (Note 4)	Balance as at January1,2020	Balance as at January1,2020	Addition	Addition		Disposal	Disposal		Balance as at December 31,2020	Balance as at December 31,2020
					Number of shares (In thousands)	Amount	Number of shares (In thousands)	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Fuzhun Precision (Shenzhen) Industry Co., Ltd. Fuzhun Precision (Shenzhen) Industry Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Nanning Funing Precision Electronics Ltd. Nanning Funing Precision Electronics Ltd. Nanning Funing Precision Electronics Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd	Shanghai Commercial & Savings Bank “Winner” Currency and Bond Series (Drip into Gold) Financial product (WG19011S) Guangdong Finance Trust - Peng Yun Tian Hua Collection Fund Trust Fortune Shuttle No. 1 BOC Principal Guaranteed Open- end RMB Wealth Management Product BOC Principal Guaranteed Open- end RMB Wealth Management Product BOC Principal Guaranteed Open- end RMB Wealth Management Product Open-end RMB Wealth Management Product Open-end RMB Wealth Management Product Open-end RMB Wealth Management Product Bank of Beijing for RMB public structured deposits - 14 Bank of Beijing for RMB public structured deposits - 15 Bank of Beijing for RMB public structured deposits - 16 Bank of Beijing for RMB public structured deposits - 17	Note 1 Note 2 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	The Shanghai Commercial & Savings Bank Guangdong Yuecai Intrust & Investment Company Shanghai Pudong Development Bank Bank of China Bank of China Bank of China Bank of China Bank of China Bank of China Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing	〞〞〞〞〞〞〞〞〞〞〞〞〞	- - - - - - - - - - - - -	RMB 150,000 thousand RMB 200,000 thousand RMB 700,000 thousand - - - - - - RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand	- - - - - - - - - - - - -	- - - RMB 650,000 thousand RMB 700,000 thousand RMB 600,000 thousand RMB 200,000 thousand RMB 200,000 thousand RMB 200,000 thousand - - - -	- - - - - - - - - - - - -	RMB 150,888 thousand RMB 161,832 thousand RMB 701,755 thousand RMB 653,793 thousand RMB 702,723 thousand RMB 605,149 thousand RMB 201,880 thousand RMB 201,184 thousand RMB 201,070 thousand RMB 505,362 thousand RMB 505,414 thousand RMB 504,841 thousand RMB 506,431 thousand	RMB 150,000 thousand RMB 150,000 thousand RMB 700,000 thousand RMB 650,000 thousand RMB 700,000 thousand RMB 600,000 thousand RMB 200,000 thousand RMB 200,000 thousand RMB 200,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand	RMB 888 thousand RMB 11,832 thousand RMB 1,755 thousand RMB 3,793 thousand RMB 2,723 thousand RMB 5,149 thousand RMB 1,880 thousand RMB 1,184 thousand RMB 1,070 thousand RMB 5,362 thousand RMB 5,414 thousand RMB 4,841 thousand RMB 6,431 thousand	- - - - - - - - - - - - -	- RMB 50,000 thousand - - - - - - - - - - -

Table 4, Page 1 187

Investor	Marketable securities	General ledger account	Counterparty (Note 4)	Relationship with the investor (Note 4)	Balance as at January1,2020	Balance as at January1,2020	Addition	Addition		Disposal	Disposal		Balance as at December 31,2020	Balance as at December 31,2020
					Number of shares (In thousands)	Amount	Number of shares (In thousands)	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd	Bank of Beijing for RMB public structured deposits - 18 Bank of Beijing for RMB public structured deposits - 19 Bank of Beijing for RMB public structured deposits - 21 Bank of Beijing for RMB public structured deposits - 22 Bank of Beijing for RMB public structured deposits - 23 Bank of Beijing for RMB public structured deposits - 24 Bank of Beijing for RMB public structured deposits - 25 Bank of Beijing for RMB public structured deposits - 26 Bank of Beijing for RMB public structured deposits - 27 Bank of Beijing for RMB public structured deposits - 28 Bank of Beijing for RMB public structured deposits - 29 Bank of Beijing for RMB public structured deposits - 31 Bank of Beijing for RMB public structured deposits - 32 Bank of Beijing for RMB public structured deposits - 33 Bank of Beijing for RMB public structured deposits - 34 Bank of Beijing for RMB public structured deposits - 35	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing	〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	- - - - - - - - - - - - - - - -	RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand - - - - - - - - - - - - -	- - - - - - - - - - - - - - - -	- - - RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 200,000 thousand RMB 300,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand	- - - - - - - - - - - - - - - -	RMB 506,378 thousand RMB 506,219 thousand RMB 504,685 thousand RMB 504,774 thousand RMB 504,774 thousand RMB 504,685 thousand RMB 504,685 thousand RMB 504,737 thousand RMB 504,685 thousand RMB 504,789 thousand RMB 504,537 thousand RMB 201,764 thousand RMB 302,877 thousand RMB 504,611 thousand RMB 504,658 thousand RMB 504,844 thousand	RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 200,000 thousand RMB 300,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand	RMB 6,378 thousand RMB 6,219 thousand RMB 4,685 thousand RMB 4,774 thousand RMB 4,774 thousand RMB 4,685 thousand RMB 4,685 thousand RMB 4,737 thousand RMB 4,685 thousand RMB 4,789 thousand RMB 4,537 thousand RMB 1,764 thousand RMB 2,877 thousand RMB 4,611 thousand RMB 4,658 thousand RMB 4,844 thousand	- - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - -

188 Table 4, Page 2

Investor	Marketable securities	General ledger account	Counterparty (Note 4)	Relationship with the investor (Note 4)	Balance as at January1,2020	Balance as at January1,2020	Addition	Addition		Disposal	Disposal		Balance as at December 31,2020	Balance as at December 31,2020
					Number of shares (In thousands)	Amount	Number of shares (In thousands)	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd	Bank of Beijing for RMB public structured deposits - 36 Guangdong Finance Trust - Peng Yun Tian Hua Collection Fund Trust	Note 1 Note 1	Bank of Beijing Guangdong Yuecai Intrust & Investment Company	〞〞	- -	- RMB 700,000 thousand	- -	RMB 500,000 thousand -	- -	RMB 504,611 thousand RMB 191,413 thousand	RMB 500,000 thousand RMB 150,000 thousand	RMB 4,611 thousand RMB 41,413 thousand	- -	- RMB 550,000 thousand

Note 1 ： Recorded in “financial assets at amortized cost-current”.

Note 2 ： Recorded in “financial assets at amortized cost-non-current”. Note 3 ： Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank.

189 Table 4, Page 3

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)

Foxconn Technology Co., Ltd. and Subsidiaries

Table 5

									(Except as otherwise	(Except as otherwise	indicated)
Purchaser/seller	Counterparty	Relationship withthe counterparty		Transaction			Differences in transaction terms compared to third party transactions		Notes/accountsreceivable (payable)		Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD. FOXCONN TECHNOLOGY PTE. LTD. FOXCONN TECHNOLOGY PTE. LTD. FTC TECHNOLOGY INC. Fuzhun Precision (Shenzhen) Industry Co., Ltd.	Foxconn (Far East) Ltd. and subsidiaries Champ Tech Optical (Foshan) Corporation FTC Technology Inc. Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries Hon Fujin Precision Industry (Taiyuan) Co., Ltd. SHARP CORPORATION and subsidiaries Foxconn (Far East) Ltd. and subsidiaries Champ Tech Optical (Foshan) Corporation	The indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. The investee is an indirect subsidiary of the Company The investee is an indirect subsidiary of the Company The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The investee is an indirect subsidiary of the Company Other related parties The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries	Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales	730,418 $ 228,922 188,871 12,709,659 711,219 288,214 3,771,586 1,320,939 161,072 2,244,026 3,138,469 246,449 151,241 117,142	1 - - 89 5 7 92 77 9 20 29 2 60 91	90 days 90 days 90 days 90 days 90 days 90 days 60 days 90 days 90 days 90 days 90 days 60 days 90 days 90 days	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	363,568 $ 89,709 29,229 8,966,295 197,483 218,450 1,199,416 411,759 - 853,881 1,377,188 55,004 46,185 -	2 1 - 96 2 15 83 77 - 26 41 2 47 -	Note 2

190 Table 5, Page 1

Differences in transaction

							Differences in transaction	Differences in transaction
Purchaser/seller	Counterparty	Relationship withthe counterparty		Transaction			terms compared to third party transactions		Notes/accountsreceivable (payable)		Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Nanning Funing Precision Electronics Co., Ltd. YanTai Fuzhun Precision Electronics YanTai Fuzhun Precision Electronics Champ Tech Optical (Foshan) Corporation Champ Tech Optical (Foshan) Corporation Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD.	FOXCONN TECHNOLOGY PTE LTD. Foxconn (Far East) Ltd. and subsidiaries Fu Yu Precision Components (Kunshan) Co., Ltd. Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries Nanning Funing Precision Electronics Co., Ltd. Champ Tech Optical (Foshan) Corporation Fuzhun Precision (Hebi) Electronics Co., Ltd. YanTai Fuzhun Precision Electronics Co., Ltd. INNOLUX CORPORATION GENERAL INTERFACE SOLUTION (GIS) HOLDING LIMITED SHARP CORPORATION Foxconn (Far East) Ltd. and subsidiaries Foxconn (Far East) Ltd. and subsidiaries Foxconn (Far East) Ltd. and subsidiaries	The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision The counterparties of the investee are indirect subsidiaries of the Company and its The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its The indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. The investee is an indirect subsidiary of the Company The investee is an indirect subsidiary of the Company The investee is an indirect subsidiary of the Company The investee is an indirect subsidiary of the Company Other related parties Other related parties Other related parties The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries	Sales Sales Sales Sales Sales Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases	131,533 $ 166,919 232,982 510,512 3,040,535 64,620,124 1,975,678 2,050,556 175,074 291,507 2,022,343 179,517 3,208,674 3,268,043 401,445 1,014,928	5 15 22 7 40 85 3 3 - - 3 - 4 24 12 9	90 days 90 days 90 days 90 days 90 days 90 days 30 days 90 days 90 days 90 days 60 days 60 days 60 days 90 days 90 days 90 days	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	28,594 $ 75,364 87,167 262,089 572,373 14,258,282) ( 394,758) ( 522,134) ( 105,931) ( 74,667) ( 210,609) ( - 509,967) ( 5,815,247) ( 164,144) ( 187,266) (	5 27 32 11 23 77) ( 2) ( 3) ( 1) ( - 1) ( - 3) ( 75) ( 16) ( 6) (

Table 5, Page 2 191

Purchaser/seller	Counterparty	Relationship withthe counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accountsreceivable (payable)	Notes/accountsreceivable (payable)	Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
FOXCONN TECHNOLOGY PTE. LTD. Champ Tech Optical (Foshan) Corporation Champ Tech Optical (Foshan) Corporation	Hon Hai Precision Industry Co., Ltd. Foxconn (Far East) Ltd. and subsidiaries Pan-International Industrial Corp. and subsidiaries	The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries Other related parties	Purchases Purchases Purchases	774,164 $ 242,296 418,370	7 4 6	90 days 90 days 90 days	Note 1 Note 1 Note 1	Note 1 Note 1 Note 1	302,734) ($ 41,205) ( 128,900) (	9) ( 2) ( 6) (

Note 1: Except for circumstances in which there are no similar transactions for reference and the prices and credit periods are negotiated by both parties,

the aforementioned related party is offered prices very close to those offered to other customers and given a payment period of 30 to 90 days.

Note 2: For transactions involving the sale of raw materials to the aforementioned related party and subsequent repurchase of goods made from the same raw materials from the same party, the initial sale of raw materials is eliminated due to economic substance.

Table 5, Page 3 192

Foxconn Technology Co., Ltd. and Subsidiaries

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

December 31, 2020

			December 31, 2020
Table 6 Creditor	Counterparty	Relationshipwith the counterparty	Balance as at December 31,2020	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date Expressed (Except as	in thousands of NTD otherwise indicated) Allowance for doubtful accounts
					Amount	Action taken
Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD. FOXCONN TECHNOLOGY PTE. LTD. Nanning Funing Precision Electronics Co., Ltd. Champ Tech Optical (Foshan) Corporation	Foxconn (Far East) Ltd. and subsidiaries Foxconn (Far East) Ltd. and subsidiaries SHARP CORPORATION and subsidiaries Pan-International Industrial Corp. and subsidiaries Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries Foxconn Technology Co., Ltd. Foxconn (Far East) Ltd. and subsidiaries Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Foxconn Technology Co., Ltd. Foxconn (Far East) Ltd. and subsidiaries	The indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. The indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. Other related parties Other related parties The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The Company’s ultimate parent company The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The Company’s ultimate parent company The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries	363,568 $ 1,394,124 (shown as other receivables)(Note 1) 101,120 (shown as other receivables)(Note 1) 771,723 (shown as other receivables)(Note 1) 8,966,295 197,483 218,450 1,199,416 411,759 105,931 853,881 1,377,188 394,758 262,089	1 .74 Not applicable Not applicable Not applicable 1 .14 3.54 1.97 3.96 2.48 1.86 2.84 1.97 6.71 2.10	5,712 $ - - - 3,869,051 - 49,436 73,683 152,436 21,767 28,262 100,559 4,769 39,773	Subsequent collection - - - Subsequent collection - Subsequent collection Subsequent collection Subsequent collection Subsequent collection Subsequent collection Subsequent collection Subsequent collection Subsequent collection	5,712 $ - - - 3,869,051 - 49,436 73,683 152,436 21,767 28,262 100,559 4,769 17,023	- $ - - - - - - - - - - - - -

193 Table 6, Page 1

Creditor	Counterparty	Relationshipwith the counterparty	Balance as at December 31,2020	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Champ Tech Optical (Foshan) Corporation Champ Tech Optical (Foshan) Corporation	Foxconn Technology Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD.	The Company’s ultimate parent company The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries	522,134 $ 572,373	4.40 5.47	- $ -	- -	- $ -	- $ -

Note 1: Receivables from purchases of materials by investees on behalf of the ultimate parent company.

194 Table 6, Page 2

Foxconn Technology Co., Ltd. and Subsidiaries

Table 7

Significant inter-company transactions during the reporting period

Year ended December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
0 0 0 0 0 0 1 1 2 2 3 3 4 5 5 5 6 6 7 7 8	Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. 〝 Hon Fujin Precision Industry (Taiyuan) Co., Ltd. 〝 Fu Yu Precision Components (Kunshan) Co., Ltd. 〝 FOXCONN TECHNOLOGY PTE. LTD. 〝 YanTai Fuzhun Precision Electronics Co., Ltd. Champ Tech Optical (Foshan) Corporation Champ Tech Optical (Foshan) Corporation 〝 Nanning Funing Precision Electronics Co., Ltd. Nanning Funing Precision Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Shenzhen) Industry Co., Ltd.	Nanning Funing Precision Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. FTC Technology Inc. YanTai Fuzhun Precision Electronics Co., Ltd. Champ Tech Optical (Foshan) Corporation 〝 FOXCONN TECHNOLOGY PTE. LTD. 〝 FOXCONN TECHNOLOGY PTE. LTD. 〝 Hon Fujin Precision Industry (Taiyuan) Co., Ltd. 〝 Fu Yu Precision Components (Kunshan) Co., Ltd. Foxconn Technology Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD. 〝 FOXCONN TECHNOLOGY PTE. LTD. Foxconn Technology Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD. Foxconn Technology Co., Ltd. Champ Tech Optical (Foshan) Corporation	1 1 1 1 1 1 3 3 3 3 3 3 3 2 3 3 2 3 2 3	Purchases Purchases Sales Purchases Purchases Sales Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales	1,975,678 $ 175,074 188,871 291,507 2,050,556 228,922 711,219 197,483 3,771,586 1,199,416 3,138,469 1,377,188 232,982 522,134 3,040,535 572,373 131,533 394,758 161,072 105,931 117,142	Note 4 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	2 - - - 2 - 1 - 4 1 2 1 - - 3 - - - - -

Note 1: The information of transactions between the Company and the subsidiaries should be noted in “Number” column.

Note 2: (1) Number 0 represents the Company.

Note 2: (2) The consolidated subsidiaries are numbered in order from number 1.

Note 2: The transaction relationship with counterparties are as follows:

Note 2: (1) The Company to the consolidated subsidiary.

Note 2: (2) The consolidated subsidiaries to the Company.

Note 2: (3) The consolidated subsidiaries to other consolidated subsidiaries.

Note 3: Disclosure standard of transactions between the Company and subsidiaries is when purchases, sales and receivables (payables) from (to) related parties account for at least $100,000 or 20% of capital. Relative related are not disclosed. Note 4: Except for circumstances in which there are no similar transactions for reference and the prices and credit periods are negotiated by both parties, the aforementioned related party is offered prices very close to those offered to other customers and given a payment period of 30 to 90 days.

Note 5: In calculating the ratio, the transaction amount is divided by consolidated total assets for balance sheet accounts and is divided by consolidated total revenues for income statement accounts. Note 6: For information of loans to others, please refer to table 1.

Table 7, Page 1 195

Foxconn Technology Co., Ltd. and Subsidiaries

Information on investees

Year ended December 31, 2020

				Year ended December 31, 2020	Year ended December 31, 2020
Investor Table 8	Investee	Location	Mainbusiness activities	Initial investment amount		Sharesheld as atDecember		31,2020	Net profit (loss) of the investee for the year ended December31,2020	Investment income (loss) recognised by the Company for the year ended December31,2020 Note Expressed in thousands of NTD (Except as otherwise indicated)
				Balance as at December31,2020	Balance as at December31,2019	Numberofshares	Ownership (%)	Bookvalue
Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd.	Q-Run Holdings Ltd. Foxconn Precision Components Holding Co., Ltd. Huazhun Investment Co., Ltd. Syntrend Creative Park Co., Ltd.	Cayman Islands Cayman Islands Taiwan Taiwan	Investment holding Investment holding Investment Retail of office machinery and equipment and electronic appliances, and information software services	9,851,192 $ 492,742 1,254,780 490,322	9,851,192 $ 492,742 1,254,780 490,322	480,077,600 135,839,643 125,478,000 49,032,250	100 100 100 20	104,857,153 $ 15,966,879 1,995,846 277,578	1,987,983 $ 533,232 12,150 18,887) (	1,956,152 $ 533,232 12,150 3,772) (

Note: Besides Foxconn Precision Components Holding Co., Ltd., Q-Run Holdings Ltd. and Huazhun Investment Co., Ltd. are subsidiaries of the Company, Atkinson Holdings Ltd., Q-Run Far East Corporation, World Trade Trading Ltd., High Tempo International Ltd., FTC Technology Inc., Foxconn Technology Pte. Ltd., Kenny International Ltd., Double Wealth Profits Ltd., Precious Star International Ltd., Eastern Star Limited., Foreign Technology Ltd., Topfry Industrial Ltd., Gold Glory International Ltd., New Glory Holdings Ltd., FTP Technology Inc., Fu Rui Precision Components (Kunshan) Co., Ltd., Fuzhun Precision (Shenzhen) Industry Co., Ltd., Fuyu Technology (Nanyang) Co., Ltd., Champ Tech Optical (Foshan) Corporation, Hon Fujin Precision Industry (Taiyuan) Co., Ltd., Fuzhun Precision (Hebi) Electronics Co., Ltd., Qingdao Hiyn Materials Co., Ltd., Fuhuigang Industrial (Shenzhen) Co., Ltd., Fu Yu Precision Components (Kunshan) Co., Ltd., YanTai Fuzhun Precision Electronics Co., Ltd., Nanning Funing Precision Electronics Co., Ltd. and Fuzhun Precision (Shenyang) Industry Co., Ltd. are subsidiaries of the Company as well.

196 Table 8, Page 1

Foxconn Technology Co., Ltd. and Subsidiaries

Information on investees in Mainland China

Table 9

Year ended December 31, 2020

Expressed in thousands of NTD

(Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2020	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the year ended December 31,2020	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the year ended December 31,2020	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2020	Net income of investee for the year ended December 31,2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2020 (Note 2)	Book value of investments in Mainland China as of December 31,2020	Accumulated amount of investment income remitted back to Taiwan as of December 31,2020	Note
					Remitted to Mainland China	Remitted back to Taiwan
Fuhuigang Industrial (Shenzhen) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. Fuzhun Precision (Shenzhen) Industry Co., Ltd. Fu Rui Precision Components (Kunshan) Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Nanning Funing Precision Electronics Co., Ltd. YanTai Fuzhun Precision Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd.	Computer case – electronic and electrical components Manufacturing and marketing of power plug and wall socket, micro ribbon connectors for terminals, etc. Manufacturing and marketing of computer components (computer thermal module) Electrical board components processing; manufacturing and marketing of optoelectronics and computer cables Manufacturing and marketing of computer components and related peripherals, computer cases and metal stamping Manufacturing and marketing of computer components (computer thermal module) Manufacturing and marketing of computer case - electronic and electrical components New alloy material, precision molds, new electronic components, portable computers and their components	220,919 $ 1,115,676 555,360 350,048 11,676,800 279,104 1,124,960 4,206,496	2 2 2 2 2 2 2 2	220,919 $ 560,657 56,960 224,536 3,972,960 - 1,124,960 1,415,456	`-` `$` `-` `-` `-` `-` `-` `-` `-`	`-` `$` `-` `-` `-` `-` `-` `-` `-`	220,919 $ 560,657 56,960 224,536 3,972,960 - 1,124,960 1,415,456	25,461 $ 530,177 343,319 - 528,516 342,088 3,725) ( 213,896	100 100 100 100 100 100 100 100	25,461 $ 530,177 343,319 - 528,516 342,088 3,725) ( 213,896	463,312 $ 7,091,657 5,308,174 - 40,750,340 3,152,682 642,938 7,213,963	`-` `$` `-` `-` `-` `-` `-` `-` `-`

197 Table 9, Page 1

Accumulated amount of Investment amount approved Ceiling on investments in remittance from Taiwan to by the Investment Commission Mainland China imposed by Mainland China as of of the Ministry of Economic the Investment Commission Company name December 31, 2020 Affairs (MOEA) of MOEA (Note 3) Foxconn Technology Co., Ltd. $ 7,576,448 $ 20,313,816 $ -

Note 1: Investment methods are classified into the following three categories:
(1) Directly invest in a company in Mainland China.
(2) Through investing in Q-Run Holdings Ltd. or Foxconn Precision Components Holding Co., Ltd., which then invested in Mainland China.
(3) Others.
Note 2: Except for Hon Fujin Precision Industry (Taiyuan) Co., Ltd., the investment income (loss) recognised by all other investees in Mainland China for the year ended December 31, 2020 were not audited or attested by R.O.C. parent company's CPA.
Note 3: Pursuant to the amended ‘Guidelines Governing the Review of Investment or Technical Cooperation in the Mainland Area’ dated on August 29, 2008, as the Company has obtained the certificate of being qualified
for operating headquarters, issued by the Industrial Development Bureau, MOEA, the ceiling amount of the investment in Mainland China is not applicable to the Company from May 31, 2018 to May 30, 2021.
Note 4: The Company needs no approval by Investment Commission of the Ministry of Economic Affairs for investment in Qingdao Hiyn Materials Co., Ltd., Fuzhun Precision (Shenyang) Industry Co., Ltd., Fuyu Technology
(Nanyang) Co., Ltd. and Champ Tech Optical (Foshan) Corporation which were reinvested through an existing company in Mainland China.
Note 5: The Company’s subsidiary, Fu Yu Precision Components (Kunshan) Co., Ltd., merged with the subsidiary, Fu Rui Precision Components (Kunshan) Co., Ltd, with the effective date set on December 31, 2018. As of December 31, 2020, the merger is still in process.

Table 9, Page 2 198

Foxconn Technology Co., Ltd. and Subsidiaries

Major shareholders information December 31, 2020

Table 10

Name of major shareholders Hon Hai Precision Industry Co., Ltd. Bao Xin International Investment Co., Ltd. Hung Yang Venture Investment Co., Ltd.

Shares held as at December 31,2020	Shares held as at December 31,2020
Number of shares	Ownership (%)
139,725,801 126,181,274 85,003,766	9.87 8.92 6.00

Table 10, Page 1 199

V. Most Recent Stand Alone Financial Statements Audited by CPAs

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

Financial Review No. 20004722 (2021) To the Board of Directors and Stockholders of Foxconn Technology Co., Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of Foxconn Technology Co., Ltd. (the “Company”) as of December 31, 2020 and 2019, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the 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 financial position of Foxconn Technology Co., Ltd. as of December 31, 2020 and 2019, and its financial performance and its 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-SecuritiesAuditing-1090360805 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 Group 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.

200 ~2~

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.

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

Revenue Cutoff

Description

Refer to Note 4(27) for accounting policy on revenue recognition and Note 6(19) for details of revenues. The Company has three revenue types, including (1) direct shipment from the factory, (2) FOB destination, and (3) hub. For FOB destination and hub, revenue is recognized when goods are shipped to destination or picked up by customers (when control of the products is transferred). The supporting documents for revenue recognition include receipts from customers (FOB destination), reports or other information provided by hub custodians and inventory movement record of hub. As the hubs are located around the world with numerous custodians, the frequency and contents of statements provided by custodians vary, and the process of revenue recognition involves numerous manual procedures, these factors may potentially result in inaccurate timing of sales revenue recognition and discrepancy between the physical inventory quantities in the hubs and the quantities as reflected in accounting records.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

Evaluated and tested the Company’s internal controls over revenue recognition.
Tested sales transactions that took place shortly before and after the balance sheet date by verifying the customers’ receipt notes, supporting documents provided by hub custodian, and inventory movement records, and ascertained whether cost of goods sold was recognized in the correct reporting period.

201 ~3~

Confirmed physical inventory quantities held by distribution warehouses and agreed to accounting records. Assessed the reasonableness of reconciling items identified through confirmation or physical inventory, if any and inspected related supporting documents and rationale.

– The Company and Investments accounted for under equity method/subsidiaries Provision for inventory valuation losses

Description

Refer to Note 4(13) for accounting policies on inventory valuation, Note 4(14) for accounting policies on investments accounted for under equity method/subsidiaries and associates, Note 5 for uncertainty of accounting estimates and assumptions in relation to inventory valuation losses, and Notes 6(6) and 6(7) for details of inventories and investments accounted for under equity method.

The Company is primarily engaged in the sales of 3C electronic products manufactured by its subsidiaries. Due to rapid technological innovations, short electronic product life cycles and fluctuations in market prices, there is a higher risk of inventory losses arising from market value decline or obsolescence. The Company and its subsidiaries recognize inventories at the lower of cost and net realizable value which is determined based on historical data of inventory closeout. Inventory valuation losses are provided against inventory aged over a certain time period and individually identified as obsolete or damaged. Provision for inventory valuation losses is recognized under “inventory” and “investments accounted for under equity method – subsidiaries” in the parent company only financial statements.

As the amounts of the Company and its subsidiaries’ inventory are material, types of inventories vary, the identification of obsolete or damaged inventories and determination of net realizable value are subject to management and audit judgement, we considered the provision for inventory valuation losses as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

Ensured consistent application of accounting policies on provision for inventory valuation losses and ascertained compliance with respective accounting guidance.
Validated the appropriateness of system logic of inventory aging report utilized by management in assessing inventory valuation losses and sampled and tested transactions for proper categorization in inventory aging report.

202 ~4~

Assessed the reasonableness of inventory valuation losses through discussion with management as to the determination of net realizable value of obsolete or damaged inventories and validated related supporting documents.

Responsibilities of management and those charged with governance for the parent company only 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 the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, 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 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.

203 ~5~

We also:

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.
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 controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management
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 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 report. However, future events or conditions may cause the Company to cease to continue as a going concern.
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 also provide those charged with governance with a statement that we have complied with relevant

204 ~6~

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.

Jackie, Feng Wu, Han-Chi For and on behalf of PricewaterhouseCoopers, Taiwan March 30, 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.

205 ~7~

FOXCONN TECHNOLOGY CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Assets	December31,2020 AMOUNT % `$` `2,341,791` `2` `4,337` `-` `-` `-` `15,696,185` `11` `579,018` `-` `2,141,747` `1` `2,423,129` `2` `13,783` `-` `23,199,990` `16` `2,007,916` `1` `123,097,456` `83` `71,220` `-` `1,315` `-` `120,983` `-` `73,479` `-` `8,000` `-` `125,380,369` `84` `$` `148,580,359` `100`	December31,2019	December31,2019
	AMOUNT `$` `2,341,791` `4,337` `-` `15,696,185` `579,018` `2,141,747` `2,423,129` `13,783` `23,199,990` `2,007,916` `123,097,456` `71,220` `1,315` `120,983` `73,479` `8,000` `125,380,369` `$` `148,580,359`	AMOUNT `$` `6,369,328` `10,946` `3,457,000` `10,387,754` `905,378` `79,317` `422,313` `14,555` `21,646,591` `1,271,373` `120,816,539` `71,979` `2,001` `123,571` `45,281` `8,000` `122,338,744` `$` `143,985,335`	%
Current assets 1100 Cash and cash equivalents 1110 Current financial assets at fair value through profit or loss 1136 Financial assets at amortized cost- current 1170 Accounts receivable, net 1180 Accounts receivable due from related parties, net 1200 Other receivables 130X Inventories 1470 Other current assets 11XX Total current assets Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 1550 Investments accounted for using equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property - net 1840 Deferred tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets			`5` `-` `2` `7` `1` `-` `-` `-`
			`15`
			`1` `84` `-` `-` `-` `-` `-`
			`85`
			`100`

(Continued)

~8~ 206

FOXCONN TECHNOLOGY CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December31,2020 AMOUNT % `$` `14,518,000` `10` `214,420` `-` `2,352,892` `2` `16,086,768` `11` `3,706,830` `2` `830,262` `1` `689` `-` `111,779` `-` `37,821,640` `26` `408,950` `-` `638` `-` `33,634` `-` `443,222` `-` `38,264,862` `26` `14,144,852` `9` `7,527,365` `5` `12,731,133` `9` `-` `-` `68,602,338` `46` `7,309,809` `5` `110,315,497` `74` `$` `148,580,359` `100`	December31,2019	December31,2019
	AMOUNT `$` `14,518,000` `214,420` `2,352,892` `16,086,768` `3,706,830` `830,262` `689` `111,779` `37,821,640` `408,950` `638` `33,634` `443,222` `38,264,862` `14,144,852` `7,527,365` `12,731,133` `-` `68,602,338` `7,309,809` `110,315,497` `$` `148,580,359`	AMOUNT `$` `14,785,129` `99,427` `1,888,146` `15,630,547` `1,648,200` `704,752` `683` `105,338` `34,862,222` `483,673` `1,327` `18,688` `503,688` `35,365,910` `14,144,852` `7,527,178` `12,018,153` `46,492` `68,099,323` `6,783,427` `108,619,425` `$` `143,985,335`	%
Current liabilities 2100 Short-term loans 2120 Current financial liabilities at fair value through profit or loss 2170 Accounts payable 2180 Accounts payable to related parties 2200 Other payables 2230 Current tax liabilities 2280 Current lease liabilities 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2570 Deferred tax liabilities 2580 Non-current lease liabilities 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Ordinary share Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3XXX Total equity Commitments and Contingent Liabilities Significant Subsequent Events 3X2X Total liabilities and equity			`10` `-` `1` `11` `1` `1` `-` `-`
			`24`
			`1` `-` `-`
			`1`
			`25`
			`10` `5` `8` `-` `47` `5`
			`75`
			`100`

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

207 ~9~

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

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

Items YearendedDecember31
2020
2019
Notes
AMOUNT
%
AMOUNT
%
6(19) and 7
$
78,290,566
100
$
66,650,972
100
6(6)(23) and 7
(
74,418,416 )(
95) (
63,119,421 ) (
95)
3,872,150
5
3,531,551
5
6(23)
(
213,569 )
-
(
170,207 )
-
(
247,212 )
-
(
156,369 )
-
(
343,975 )(
1) (
207,295 ) (
1)
(
804,756 )(
1) (
533,871 ) (
1)
3,067,394
4
2,997,680
4
6(20)
13,119
-
171,637
-
6(21)
34,379
-
39,864
-
6(22)
(
119,085 )
-
134,891
-
(
120,554 )
-
(
337,898 )
-
6(7)
2,497,760
3
4,797,055
7
2,305,619
3
4,805,549
7
5,373,013
7
7,803,229
11
(
654,670 )(
1) (
673,428 ) (
1)
$
4,718,343
6
$
7,129,801
10
6(14)
( $
15,784 )
-
($
7,489 )
-
6(18)
736,543
1
(
144,473 ) (
1)
6(18)
1,526,103
2
10,522,950
16
6(25)
3,157
-
1,498
-
2,250,019
3
10,372,486
15
6(18)
(
1,736,264 ) (
2) (
3,548,558 ) (
5)
-
-
-
-
(
1,736,264 )(
2) (
3,548,558 ) (
5)
$
5,232,098
7
$
13,953,729
20
6(26)
$
3.34
$
5.04
$
3.32
$
5.01

4000
Operating revenue
5000
Operating costs
5900
Gross profit from operations
Operating expenses
6100
Selling expenses
6200
Administrative expenses
6300
Research and development expenses
6000
Total operating expenses
6900
Net operating income
Non-operating income and expenses
7100
Interest income
7010
Other income
7020
Other gains and losses
7050
Finance costs
7070
Share of profits of associates and joint
ventures accounted for using equity
method
7000
Total non-operating income and
expenses
7900
Profit before income tax
7950
Tax expense
8200
Profit
Components of other comprehensive
income that will not be reclassified to
profit or loss
8311
Actuarial losses on defined benefit plans
8316
Unrealized gain (loss) on valuation of
financial assets at fair value through
other comprehensive income
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
8349
Income tax related to components of
other comprehensive income that will not
be reclassified to profit or loss
8310
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
8361
Exchange differences on translation
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
Other comprehensive loss that will be
reclassified to profit or loss
8500
Total comprehensive income
Basic earnings per share (in dollars)
9750
Basic earnings per share
9850
Diluted earnings per share

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

~10~ 208

FOXCONN TECHNOLOGY 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 ended December 31, 2019 Balance at January 1, 2019 Profit Other comprehensive income (loss) Total comprehensive income (loss) Appropriations and distribution of 2018 earnings Legal reserve Special reserve Cash dividends Changes in equity of associates and joint ventures accounted for using equity method Balance at December 31, 2019 Year ended December 31, 2020 Balance at January 1, 2020 Profit (loss) Other comprehensive income (loss) Total comprehensive income (loss) Appropriations and distribution of 2019 earnings Legal reserve Special reserve reversal Cash dividends Changes in equity of associates and joint ventures accounted for using equity method Balance at December 31, 2020	Notes		Ordinary share		Capitalsurplus				RetainedEarnings			Other EquityInterest	Other EquityInterest	Other EquityInterest		Totalequity
							Legal reserve		Special reserve		Unappropriated retained earnings	Financial statements translation differences of foreignoperations		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
	6(17) 6(17)		`$` `14,144,852` `-` `-` `-` `-` `-` `-` `-` `$` `14,144,852` `$` `14,144,852` `-` `-` `-` `-` `-` `-` `-` `$` `14,144,852`	`$` `7,767,553` `-` `-` `-` `-` `-` `-` `(` `240,375 )` `$` `7,527,178` `$` `7,527,178` `-` `-` `-` `-` `-` `-` `187` `$` `7,527,365`			`$` `11,103,487` `-` `-` `-` `914,666` `-` `-` `-` `$` `12,018,153` `$` `12,018,153` `-` `-` `-` `712,980` `-` `-` `-` `$` `12,731,133`	`$` `-` `-` `-` `-` `-` `46,492` `-` `-` `$` `46,492` `$` `46,492` `-` `-` `-` `-` `(` `46,492 )` `-` `-` `$` `-`		`$` `66,542,261` `7,129,801` `(` `5,991 )` `7,123,810` `(` `914,666 )` `(` `46,492 )` `(` `4,526,353 )` `(` `79,237 )` `$` `68,099,323` `$` `68,099,323` `4,718,343` `(` `12,627 )` `4,705,716` `(` `712,980 )` `46,492` `(` `3,536,213 )` `-` `$` `68,602,338`		`($` `2,578,011` `)` `-` `(` `3,548,558` `)` `(` `3,548,558` `)` `-` `-` `-` `-` `($` `6,126,569` `)` `($` `6,126,569` `)` `-` `(` `1,736,264` `)` `(` `1,736,264` `)` `-` `-` `-` `-` `($` `7,862,833` `)`		`$` `2,531,519` `-` `10,378,477` `10,378,477` `-` `-` `-` `-` `$` `12,909,996` `$` `12,909,996` `-` `2,262,646` `2,262,646` `-` `-` `-` `-` `$` `15,172,642`	`$` `99,511,661` `7,129,801` `6,823,928` `13,953,729` `-` `-` `(` `4,526,353` `)` `(` `319,612` `)` `$ 108,619,425` `$ 108,619,425` `4,718,343` `513,755` `5,232,098` `-` `-` `(` `3,536,213` `)` `187` `$ 110,315,497`

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

~11~ 209

FOXCONN TECHNOLOGY 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 before tax
Adjustments
Adjustments to reconcile profit (loss)
Depreciation (including investment property)

Amortization

Expected credit loss (gain)

Interest expense
Share of profits of associates and joint ventures accounted for
using equity method

Net loss on financial assets or liabilities at fair value through
profit or loss
Loss (gain) on disposal of property, plant and equipment
Dividend income

Interest income

Changes in operating assets and liabilities
Changes in operating assets
Accounts receivable, net
Accounts receivable due from related parties
Other receivables
Inventories
Changes in operating liabilities
Accounts payable
Accounts payable to related parties
Other payables
Other current liabilities
Cash (outflow) inflow generated from operations
Income tax paid
Net cash flows (used in) from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease (increase) in financial assets at amortized cost-
current
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and equipment
Interest received
Dividends received
Other current assets
Net cash flows from (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in short-term loans
Cash dividends paid

Payments of lease liabilities
Interest paid
Other non-current liabilities
Net cash flows used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year Years ended December 31
Notes
2020
2019
$
5,373,013 $
7,803,229
6(23)
4,950
7,778
6(23)
-
1,146
12(2)
1,324 (
658 )
120,554
337,898
6(7)
(
2,497,760 ) (
4,797,055 )
121,602
616,129
1,536 (
1,460 )
6(21)
(
15,341 ) (
12,856 )
6(20)
(
13,119 ) (
171,637 )
(
5,309,814 )
2,347,324
326,419
68,953
(
117,408 )
7,196
(
2,000,816 ) (
153,152 )
464,746
562,610
456,221 (
3,716,792 )
92,594 (
155,221 )
6,441
20,919
(
2,984,858 )
2,764,351
(
628,924 ) (
1,068,544 )
(
3,613,782 )
1,695,807
3,457,000 (
2,957,000 )
6(8)
(
2,998 )
-
545
3,664
29,444
158,300
22,210
104,293
772
852
3,506,973 (
2,689,891 )
(
267,129 )
1,095,969
6(17)
(
3,536,213 ) (
4,526,353 )
(
683 ) (
699 )
(
115,865 ) (
327,754 )
(
838 ) (
1,591 )
(
3,920,728 ) (
3,760,428 )
(
4,027,537 ) (
4,754,512 )
6,369,328
11,123,840
$
2,341,791 $
6,369,328

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

~12~ 210

FOXCONN TECHNOLOGY 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 ORGANIZATION

FOXCONN Technology Co., Ltd. (the “Company”), originally known as Q-RUN Technology Co., Ltd., was established on April 26, 1990. On March 1, 2004, the Company merged with Foxconn Precision Components Co., Ltd. and was renamed as Foxconn Technology Co., Ltd. The Company is primarily engaged in manufacturing, processing and sales of case, heat dissipation modules and consumer electronics products.

THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

The accompanying parent company only financial statements were authorized for issuance by the Board of Directors on March 30, 2021.

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:

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 IFRS 7, ‘Interest rate benchmark reform’ Amendment to IFRS 16, ‘Covid-19-related rent concessions’	January 1, 2020 January 1, 2020 January 1, 2020 June 1, 2020 (Note)

Note: Earlier application from January 1, 2020 is allowed by the FSC. The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’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:

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 Company’s financial

211 ~13~

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:

Effective Date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 3, ‘Reference to the conceptual January 1, 2022 framework’ Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of To be determined by assets between an investor and its associate or joint venture’ International Accounting Standards Board IFRS 17, ‘Insurance contracts’ January 1, 2023 Amendments to IFRS 17, 'Insurance contracts' January 1, 2023 Amendments to IAS 1, ‘Classification of liabilities as current or January 1, 2023 non-current’ Amendments to IAS 1, ‘Disclosure of accounting policies’ January 1, 2023 Amendments to IAS 8, ‘Definition of accounting estimates’ January 1, 2023 Amendments to IAS 16, ‘Property, plant and equipment: January 1, 2022 proceeds before intended use’ Amendments to IAS 37, ‘Onerous contracts— January 1, 2022 cost of fulfilling a contract’ Annual improvements to IFRS Standards 2018–2020 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 the accompanying 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 accompanying parent company only financial statements of the Company have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

(2) Basis of preparation

A. Except for the following items, the accompanying parent company only financial statements have been prepared under the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.
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

212 ~14~

critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the accompanying parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

The accompanying parent company only financial statements are presented in New Taiwan dollars, 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 recognized 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 retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized 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 recognized 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 recognized in other comprehensive income. However, nonmonetary 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’.
B. Translation of foreign operations
(a) The operating results and financial position of all the company, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
- i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
- ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
- iii. All resulting exchange differences are recognized in other comprehensive income.
(b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale.
(c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even the Company still retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

(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:

213 ~15~

  - (a) Assets arising from operating activities that are expected to be realized, 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 realized 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 pay off 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 paid off within the normal operating cycle;
- (b) Liabilities arising mainly from trading activities;
- (c) Liabilities that are to be paid off 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) Financial assets at fair value through profit or loss
A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income. Financial assets at amortized cost or fair value through other comprehensive income are designated as of fair value through profit or loss at initial recognition when they eliminate or significantly reduce a measurement or recognition inconsistency.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.
D. The Company recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.
(7) Financial assets at fair value through other comprehensive income
A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:
- (a) The objective of the Company’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
- (b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value plus transaction

214 ~16~

costs. The Company subsequently measures the financial assets at fair value:

(a) The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
(b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognized in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss.

(8) Financial assets at amortized cost

A. Financial assets at amortized cost are those that meet all of the following criteria:
(a) The objective of the Company’s business model is achieved by collecting contractual cash flows.
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at amortized cost are recognized and derecognized using trade date accounting.
C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognized in profit or loss when the asset is derecognized or impaired.
D. The Company’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.
(9) Accounts and notes receivable
A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(10) Impairment of financial assets
For debt instruments measured at fair value through other comprehensive income and financial assets at amortized cost including accounts receivable or contract assets that have a significant financing component, at each reporting date, the Company recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes 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 recognizes the impairment provision for lifetime ECLs.

(11) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expires.

– (12) Leasing agreements (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognized in profit or loss on a straight-line basis over the lease term.

~17~ 215

(13) Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

(14) Investments accounted for under equity method / subsidiaries and associates
A. Subsidiary is an entity where the Company has the right to dominate its finance and operation policies (includes special purpose entity), normally the Company owns more than 50 percent of the voting rights directly or indirectly in that entity. Subsidiaries are accounted for under the equity method in the Company's parent company only financial statements.
B. Unrealized gains or losses resulted from inter-company transactions with subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the Company.
C. After acquisition of subsidiaries, the Company recognizes proportionately for the share of profit and loss and other comprehensive incomes in the income statement as part of the Company's profit and loss and other comprehensive income, respectively. When the share of loss from a subsidiary exceeds the carrying amount of Company's interests in that subsidiary, the Company continues to recognize its shares in the subsidiary's loss proportionately.
D. Associates are all entities over which the Company 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 per cent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.
E. The Company’s share of its investements’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized 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 recognize 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 recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.
G. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized 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 recognized in other comprehensive income in relation to the associate are reclassified

216 ~18~

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 recognized in profit or loss.
J. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized 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 recognized 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 recognized 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 recognized as capital surplus in relation to the associate are transferred to profit or loss proportionately.
L. According to “Rules Governing the Preparations of Financial Statements by Securities Issuers”, 'profit for the year' and 'other comprehensive income for the year' reported in an entity's parent company only statement of comprehensive income, shall equal to 'profit for the year' and 'other comprehensive income' attributable to owners of the parent reported in that entity's consolidated statement of comprehensive income. Total equity reported in an entity's parent company only financial statements, shall be equal to the equity attributable to owners of parent reported in that entity's consolidated financial statements.
(15) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.
B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives for buildings and structures, machinery and equipment and other equipment are 3~55 years, 1~10 years and 1~10 years, respectively.
(16) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities
A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low value assets, lease payments are recognized as an expense on a straight-line basis over the

217 ~19~

lease term.

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable.

The Company subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date; and
(c) Any initial direct costs incurred by the lessee.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

(17) Investment property

(18) 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 recognized 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 recognizing 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 amortized historical cost would have been if the impairment had not been recognized.
(19) Loans
A. Loans comprise long-term and short-term bank loans and other long-term and short-term loans. Loans are recognized initially at fair value, net of transaction costs incurred. Loans are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the loans using the effective interest method.
B. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates.
(20) Accounts and notes payable
A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.
B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

218 ~20~

(21) Financial liabilities at fair value through profit or loss

A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorized as financial liabilities held for trading unless they are designated as hedges.
B. At initial recognition, the Company measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Company subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

(22) Derecognition of financial liabilities

A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

(23) Offsetting financial instruments

(24) Employee benefits
A. Short-term employee benefits

B. Pensions
(a) Defined contribution plan

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

(b) Defined benefit plan
- i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.
- ii. Remeasurements arising on defined benefit plan are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.
- iii. Past service costs are recognized immediately in profit or loss.
C. Employees’ compensation, directors’ and supervisors’ remuneration
Employees’ compensation and directors’ and supervisors’ remuneration are recognized as expenses and liabilities, 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 employees’ compensation is paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution .

(25) Income tax

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

219 ~21~

items recognized directly in equity, in which cases the tax is recognized 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 recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated 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 realized or the deferred tax liability is settled.
D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized 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 recognized amounts and there is an intention to settle on a net basis or realize 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 realize the asset and settle the liability simultaneously.
(26) Dividends

(27) Revenue recognition
A. The Company is primarily engaged in manufacturing and sales of consumer electronics products. Sales are recognized when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.
B. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated sales discounts and allowances. Revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. As the time interval between the transfer of committed goods

~22~ 220

or service and the payment of customer does not exceed one year, the Company does not adjust the transaction price to reflect the time value of money.

C. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of the accompanying 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 Revenue recognition

The Company determines whether the nature of its performance obligation is to provide the specified goods or services itself (i.e. the Company is a principal) or to arrange for the other party to provide those goods or services (i.e. the Company is an agent) based on the transaction model and its economic substance. The Company is a principal if it controls a promised good or service before it transfers the good or service to a customer. The Company recognizes revenue at gross amount of consideration to which it expects to be entitled in exchange for those goods or services transferred. The Company is an agent if its performance obligation is to arrange for the provision of goods or services by another party. The Company recognizes revenue at the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the other party to provide its goods or services. Indicators that the Company controls the good or service before it is provided to a customer include the following:

The Company provides integrated electronics manufacturing services to meet the following criteria by judgment, and recognizes revenue on a gross basis:

A. The Company is primarily responsible for the provision of goods or services;
B. The Company assumes the inventory risk before transferring the specified goods or services to the customer or after transferring control of the goods or services to the customer.
C. The Company has discretion in establishing prices for the goods or services.
(2) Critical accounting estimates and assumptions Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the Company must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

As of December 31, 2020, information on the carrying amount of inventories is provided in Note 6(6).

~23~ 221

DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Checking accounts and demand deposits Cash equivalents Time deposits	December 31,2020 `2,341,791` `$` `-` `2,341,791` `$`	December 31,2019
		`2,981,588` `$` `3,387,740` `6,369,328` `$`

A. The Company associates with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. The Company has no cash and cash equivalents pledged to others. Time deposits with maturity in excess of three months as of December 31, 2019 have been listed under “financial assets at amortized cost-current”.
(2) Financial assets or liabilities at fair value through profit or loss

Assets Current items: Financial assets mandatorily measured at fair value through profit or loss Derivatives Liabilities Current items: Financial liabilities mandatorily measured at fair value through profit or loss Derivatives	December 31,2020 `4,337` `$` `214,420` `$`	December 31,2019
		`10,946` `$` `99,427` `$`

A. Amounts recognized in profit or loss in relation to financial assets and liabilities at fair value through profit or loss are listed below:

hrough profit or loss are listed below:
Financial assets and liabilities mandatorily measured at fair value through profit or loss Derivatives	Years ended December31,
	2020 `526,247)` `($`	2019 `51,551` `$`

B. The Company entered into contracts relating to derivative financial assets or liabilities which were not accounted for under hedge accounting. The information is listed below:

~24~ 222

December 31, 2020

	December 31,2020
Derivative instruments Current items: Foreign exchange contracts Forward exchange contracts Derivative instruments Current items: Foreign exchange contracts Cross currency swap contracts Forward exchange contracts	Contractperiod TWD (SELL) `4,526,106` 2020/03~2021/03 USD (BUY) `152,000` USD (SELL) `4,000` 2020/11~2021/03 CNH (BUY) `27,174` Contract amount (Nominal Principal in thousands) December 31,2019	Contractperiod
	TWD (SELL) `4,567,904` USD (BUY) `152,000` TWD (SELL) `4,291,170` HKD (BUY) `1,090,878` TWD (SELL) `924,300` USD (BUY) `30,000` USD (SELL) `16,000` CNH (BUY) `112,480` (Nominal Principal in thousands) Contract amount	Contractperiod
		2019/03~2020/03 2019/03~2020/03 2019/03~2020/03 2019/11~2020/02

(a) Cross currency swap contracts

The Company signed cross currency swap contracts aiming to satisfy capital requirements. Under the terms of exchange rate swaps, the principal in two currencies are exchanged at the beginning and the end of period to reduce exchange rate risk. Under the terms of rate swaps, the fixed interest rates of two currencies are exchanged to reduce interest rate risk.

(b) Forward exchange contracts

The Company signed forward exchange contracts to hedge exchange rate risks arising from the activities listed below:

i. Business activity: The payables due from importing materials and supplies as well as receivables from exports.
ii. Investment activity: The payment due from importing machinery and equipment.
iii. Financial activity: Assets and liabilities (financing) resulting from long-term or short-term loans.

(c) Foreign exchange contracts

The Company entered into foreign exchange contracts to satisfy capital requirements. The principal in two currencies are swapped using the same exchange rate at the beginning and the end of the period to reduce exchange rate risk.

~25~ 223

C. The counterparties of derivative instruments held by the Company are all banks with good credit quality or financial institutions with investment grade credit ratings that are above A.
D. The Company has no financial assets at fair value through profit or loss pledged to others.
(3) Financial assets at fair value through other comprehensive income

Items Non-current items: Equity instruments	December 31,2020 `2,007,916` `$`	December 31,2019
		`1,271,373` `$`

A. The Company has elected to classify equity instruments that are considered to be strategic investments as financial assets at fair value through other comprehensive income.
B. The Company recognized other comprehensive gains (losses) of $736,543 and ($144,473) for fair value change for the years ended December 31, 2020 and 2019, respectively. The aforementioned comprehensive gains (losses) recognized that are related to the fair value change of Energy Information System Co., Ltd. for the years ended December 31, 2020 and 2019 amounted to $736,000 and ($177,304), respectively.
C. As of December 31, 2020, the Company has no financial assets at fair value through other comprehensive income pledged to others.
(4) Financial assets at amortized cost

comprehensive income pledged to others. Financial assets at amortized cost
Items Current items: Time deposits with maturity in excess of three months	December 31,2020 `-` `$`	December 31,2019
		`3,457,000` `$`

A. As of December 31, 2020 and 2019, the Company has no financial assets at amortized cost pledged to others.
B. The Company transacts with reputable financial institutions and the probability of default is expected to be very low.
(5) Accounts receivable

expected to be very low. Accounts receivable
Accounts receivable Less: Allowance for bad debts `(`	December 31,2020 `15,700,830` `$` `4,645)` `15,696,185` `$`	December 31,2019
		`10,391,016` `$` `3,262)` `(` `10,387,754` `$`

A. The Company does not hold any collateral as security.
B. Information relating to credit risk is provided in Note 12(2).
(6) Inventories

A. The Company does not hold any collateral as security. B. Information relating to credit risk is provided in Note 12(2). Inventories `15,696,185` `$` `10,387,754` `$`	A. The Company does not hold any collateral as security. B. Information relating to credit risk is provided in Note 12(2). Inventories `15,696,185` `$` `10,387,754` `$`	`10,387,754` `$`
The cost of inventories recognized as expense for the year: December31,2020 December31,2019 Finished goods `2,438,858` `$` `438,042` `$` Less: Allowance for inventory obsolescence and market price decline `15,729)` `(` `15,729)` `(` `2,423,129` `$` `422,313` `$` 2020 2019 Cost of inventories sold `74,418,416` `$` `63,119,421` `$` Years ended December31,		December31,2019
	2020 `74,418,416` `$`	2019
		`63,119,421` `$`

224 ~26~

(7) Investments accounted for using equity method

Investments accounted for using equity method
Investees	December 31,2020		December 31,2019
At January 1	`$`	`120,816,539`		`$`	`109,456,141`
Share of profit of investments accounted for using
equity method		`2,497,760`			`4,797,055`
Dividends distributed by investments accounted for using equity method	`(`	`6,869)`	`(`		`91,437)`
Change in capital surplus		`187`	`(`		`240,375)`
Change in retained earnings		`-`	`(`		`79,237)`
Change in other equity interest (Note 6(18))	`(`	`210,161)`			`6,974,392`
At December 31	`$`	`123,097,456`		`$`	`120,816,539`
	December 31,2020		December 31,2019
Subsidiaries	`$`	`122,819,878`		`$`	`120,535,189`
Associates		`277,578`			`281,350`
	`$`	`123,097,456`		`$`	`120,816,539`

A. The Company’s subsidiary:
(a) Details of the Company’s subsidiaries are provided in Note 4(3) of the Company’s consolidated financial statements as of and for the year ended December 31, 2020.
(b) The Company’s investments in China through FOXCONN PRECISION COMPONENTS HOLDING CO., LTD. and Q-RUN HOLDINGS LTD. are engaged in the production and sales of computer components (computer radiators, magnesium alloys and computer components). Please refer to Note 13 for the disclosure of information on investments in China.
B. The Company’s associates:

The operating results of the Company’s share in all individually immaterial associates are summarized below:

ummarized below:
Other comprehensive loss, net of tax	Years ended December 31,
	2020 2019 `18,887)` `($` `24,399)` `($`	2019

~27~ 225

(8) Property, plant and equipment

Property, plant and equipment
At January 1 Cost Accumulated depreciation Opening net book amount as of January 1 Additions Transfer in Disposals Depreciation expense Closing net book amount as of December 31 At December 31 Cost Accumulated depreciation At January 1 Cost Accumulated depreciation Opening net book amount as of January 1 Transfer Disposals Depreciation expense Closing net book amount as of December 31 At December 31 Cost Accumulated depreciation							2020
	Land			Buildings and structures `54,108` `$` `41,874)` `12,234` `$` `12,234` `$` `-` `1,581` `-` `533)` `13,282` `$` `57,915` `$` `44,633)` `13,282` `$`			Machinery and equipment `81,038` `$` `78,425)` `2,613` `$` `2,613` `$` `-` `-` `-` `373)` `2,240` `$` `81,038` `$` `78,798)` `2,240` `$` 2019	Others `76,857` `$` `71,575)` `(` `5,282` `$` `5,282` `$` `2,998` `-` `2,081)` `(` `2,351)` `(` `3,848` `$` `77,774` `$` `73,926)` `(` `3,848` `$`
	`51,850` `$` `-` `51,850` `$` `51,850` `$` `-` `-` `-` `-` `51,850` `$` `51,850` `$` `-` `51,850` `$`		`(` `(` `(`			`(` `(` `(`
	Land `51,850` `$` `-` `51,850` `$` `51,850` `$` `-` `-` `-` `51,850` `$` `51,850` `$` `-` `51,850` `$`			Buildings and structures
		`(` `(` `(`	`51,749` `$` `41,540)` `10,209` `$` `10,209` `$` `2,541` `-` `516)` `12,234` `$` `54,108` `$` `41,874)` `12,234` `$`		`(` `(` `(`

~28~ 226

`－` (9) Leasing arrangements lessee

A. The Company leases various assets including buildings and structures. Rental contracts are typically made for a period of 5 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, and leased assets may not be used as security for borrowing purposes.
B. Low-value assets comprise multifunction printers.
C. The carrying amount of right-of-use assets and the depreciation expense are as follows:

Low-value assets comprise multifunction printers. The carrying amount of right-of-use assets and the	depreciation expense are as follows:	depreciation expense are as follows:	depreciation expense are as follows:	re as follows:
Buildings and structures Buildings and structures	December 31,2020 December 31,2019 Book value Book value `1,315` `$` `2,001` `$` 2020 2019 Depreciation expense Depreciation expense `686` `$` `686` `$` Years ended December 31,	December 31,2020 December 31,2019 Book value Book value `1,315` `$` `2,001` `$` Years ended December 31,		December 31,2019
				Book value
			2019 Depreciation expense	2019
			`686` `$`

D. For the years ended December 31, 2020 and 2019, there were no additions to right-of-use assets.
E. Information on profit or loss in relation to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on leases of low-value assets	Years ended December 31,	Years ended December 31,
	2020 `16` `$` `75`	2019
		`22` `$` `81`

F. SFor the years ended December 31, 2020 and 2019, the Company’s total cash outflows for leases were $774 and $802, respectively.
G. Information about the right-of-use assets that were pledged to others as collateral is provided in Note 8.

(10) Leasing arrangements - lessor

A. The Company leases various assets including buildings. Rental contracts are typically made for a period of 4 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
B. For the years ended December 31, 2020 and 2019, the Company recognized rent income in the amount of $18,722 and $19,855, respectively, based on the operating lease agreement, which does not include variable lease payments.
C. The maturity analysis of the lease receivables under the operating leases is as follows:

2021 2022 2023 2024 2025	December 31,2020 `15,649` `$` 2020 `14,978` 2021 `4,425` 2022 `1,074` 2023 `258` 2024 `36,384` `$`	December 31,2019
		`20,187` `$` `20,187` `19,809` `7,382` `1,151` `68,716` `$`

The rent income recognized by the Company is measured based on the area actually used by the lessee. The lease receivables listed above are calculated based on the area actually used by the

227 ~29~

lessee at each of the balance sheet dates.

(11) Investment property

lessee at each of the balance sheet dates. Investment property
At January 1 Cost Accumulated depreciation and impairment Opening net book amount as of January 1 Transfer out Depreciation expense Closing net book amount as of December 31 At December 31 Cost Accumulated depreciation and impairment At January 1 Cost Accumulated depreciation and impairment Opening net book amount as of January 1 Transfer in Depreciation expense Closing net book amount as of December 31 At December 31 Cost Accumulated depreciation and impairment			2020
	Land `95,910` `$` `-` `95,910` `$` `95,910` `$` `-` `-` `95,910` `$` `95,910` `$` `-` `95,910` `$`	Buildings and structures `66,584` `$` `38,923)` `(` `27,661` `$` `27,661` `$` `1,581)` `(` `1,007)` `(` `25,073` `$` `62,777` `$` `37,704)` `(` `25,073` `$` 2019		Total `162,494` `$` `38,923)` `(` `123,571` `$` `123,571` `$` `1,581)` `(` `1,007)` `(` `120,983` `$` `158,687` `$` `37,704)` `(` `120,983` `$`
	Land `95,910` `$` `-` `95,910` `$` `95,910` `$` `-` `-` `95,910` `$` `95,910` `$` `-` `95,910` `$`

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

~30~ 228

Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the year	Years ended December 31,	Years ended December 31,
	2020 `18,722` `$` `1,007` `$`	2019
		`19,855` `$`
		`1,167` `$`

B. The fair value of the investment property held by the Company as of December 31, 2020 and 2019 was $708,791 and $677,598, respectively. Valuations were made using the income approach which is categorized within Level 3 in the fair value hierarchy.

(12) Short-term loans

Short-term loans
Other payables Type of loans December 31,2020 Bank loans Unsecured loans `14,518,000` `$` Type of loans December 31,2019 Bank loans Unsecured loans `14,785,129` `$` Payable for purchases made by parties on behalf of others Employees’ compensation payable Awards and salaries payable Others	Interest rate range	Collateral None Collateral None December31,2019 `51,654` `$` `1,460,134` `36,497` `99,915` `1,648,200` `$`
	0.48%~0.80% Interest rate range
	0.59%~3.19673% December31,2020 `2,013,001` `$` `1,296,708` `266,194` `130,927` `3,706,830` `$`

(13) Other payables

(14) Pensions

A. Defined benefit plan

(b) The amounts recognized in the balance sheet are as follows (shown as ‘other non-current liabilities’):

liabilities’):
	December	31,2020	December	31,2019
Present value of defined benefit obligations	`($`	`67,933)`	`($`	`57,744)`
Fair value of plan assets		`34,299`		`39,056`
Net defined benefit liability	`($`	`33,634)`	`($`	`18,688)`

~31~ 229

(c) Movements in net defined benefit liabilities are as follows:

Balance at January 1 Past service cost Interest income Remeasurements Return on plan assets (Note) Change in demographic assumptions Change in financial assumptions Experience adjustments Pension fund contribution Paid pension Balance at December 31 Balance at January 1 Current service cost Interest income Remeasurements Return on plan assets (Note) Change in demographic assumptions Change in financial assumptions Experience adjustments Pension fund contribution Paid pension Balance at December 31	Present value of defined benefit obligations `57,744)` `($` `528)` `(` `462)` `(` `58,734)` `(` `-` `567)` `(` `2,833)` `(` `13,650)` `(` `17,050)` `(` `-` `7,851` `(` `7,851` `(` `($ 67,933)`	Fair value of Net defined plan assets benefit liability `39,056` `$` `18,688)` `($` `-` `528)` `(` `319` `143)` `(` `39,375` `19,359)` `(` `1,266` `1,266` `-` `567)` `(` `-` `2,833)` `(` `-` `13,650)` `(` `1,266` `15,784)` `(` `1,509` `1,509` `7,851)` `-` `6,342)` `1,509` `$34,299` `33,634)` `($` 2020 2019
	Present value of defined benefit obligations `51,634)` `($` `-` `581)` `(` `52,215)` `(` `-` `345)` `(` `1,724)` `(` `6,853)` `(` `8,922)` `(` `-` `3,393` `(` `3,393` `(` `($ 57,744)`	Fair value of Net defined plan assets benefit liability `38,843` `$` `12,791)` `($` `-` `-` `446` `135)` `(` `39,289` `12,926)` `(` `1,433` `1,433` `-` `345)` `(` `-` `1,724)` `(` `-` `6,853)` `(` `1,433` `7,489)` `(` `1,727` `1,727` `3,393)` `-` `1,666)` `1,727` `$ 39,056` `18,688)` `($`

Note: The amount included in interest income or expense is excluded.

~32~ 230

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after approval by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2020 and 2019 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.
(e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	Years ended December 31,	Years ended December 31,
	2020 `0.35%` `2.00%`	2019
		`0.80%` `2.00%`

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

December 31,2020 Effect on present value of defined benefit obligation December 31,2019 Effect on present value of defined benefit obligation	Increase Decrease 0.25% 0.25% `$ 1,603` `($ 1,657)` `$ 1,350` `($ 1,396)` Discount rate	Future salaryincreases	Future salaryincreases
	Increase 0.25% `$ 1,603` `(` `$ 1,350` `(`	Increase 0.25% `($ 1,585)` `($ 1,340)`	Decrease 0.25%
			`$ 1,542` `$ 1,303`

(f) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2021 are $1,320.

B. Defined contribution plan

(a) Effective July 1, 2005, 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

~33~ 231

accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

(b) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2020 and 2019 were $12,332 and $11,096, respectively.
(15) Share capital

As of December 31, 2020, the Company’s authorized capital was $15,000,000 (including subscription warrant or 50 million shares reserved for convertible bonds issued by the Company), and the paid-in capital was $14,144,852, consisting of outstanding ordinary shares of 1,414,485 thousand shares with a par value of $10 (in dollars) per share.

Movements in the number of the Company’s ordinary shares outstanding are as follows:

At January 1 (December 31)	2020 Number of ordinary shares(in thousands) `1,414,485`	2019
		Number of ordinary shares(in thousands)
		`1,414,485`

(16) Capital surplus

(17) Retained earnings

A. In accordance with the Company’s Articles of Incorporation, current year’s earnings must be distributed in the following order:
(a) Covering accumulated deficit;
(b) Setting aside as legal reserve equal to 10% of current year’s net income after tax and distribution pursuant to clause (A);
(c) Setting aside a special reserve in accordance with applicable legal and regulatory requirements.

The remaining earnings along with the unappropriated earnings at the beginning of the period are considered as accumulated distributable earnings. In accordance with dividend policy, the proposal of earnings appropriation is prepared by the Board of Directors and resolved by the shareholders.

B. According to related regulations, 10% of the balance of earnings after tax less the accumulated loss of prior years should be set aside as legal reserve, until such legal reserve amount reaches the total authorized capital. 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

~34~ 232

is limited to the portion in excess of 25% of the Company’s paid-in capital.

C. 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.
D. The appropriations of earnings for 2019 and 2018 had been resolved at the stockholders’ meeting on June 23, 2020 and June 21, 2019, respectively. Details are summarized below:

Years ended December 31,

Dividends per Amount share(in dollars) Legal reserve `712,980` `$` Special reserve `46,492)` `(` Cash dividends `3,536,213` `2.5` `$` `4,202,701` `$` 2019	Dividends per Amount share(in dollars) `914,666` `$` `46,492` `4,526,353` `3.2` `$` `5,487,511` `$` 2018

The appropriations of earnings for 2020 as approved at the Board of Directors’ meeting as of March 30, 2021 is as follows:

March 30, 2021 is as follows:
Legal reserve Cash dividends	Year ended December31,2020
	Amount `470,572` `$` `2,546,073` `3,016,645` `$`	Dividends per share(in dollars)
		`1.8` `$`

The information on distribution of earnings will be posted in the “Market Observation Post System” of the TSEC.

(18) Other equity items

System” of the TSEC. Other equity items
At January 1 Revaluation of fair value - Parent - Subsidaries Currency translation differences: - Parent and subsidaries At December 31			2020
		Unrealized gain (loss) on financial assets at fair value through other Currency comprehensive translation income adjustments `12,909,996` `$` `6,126,569)` `($` `736,543` `-` `1,526,103` `-` `-` `1,736,264)` `(` `15,172,642` `$` `7,862,833)` `($`		Total `6,783,427` `$` `736,543` `1,526,103` `1,736,264)` `(` `7,309,809` `$`

~35~ 233

Operating revenue At January 1 Revaluation of fair value - Parent - Subsidaries Currency translation differences: - Parent and subsidaries At December 31 Revenue from contracts with customers			2019
	Unrealized gain (loss) on financial assets at fair value through other Currency comprehensive translation income adjustments Total `2,531,519` `$` `2,578,011)` `($` `46,492)` `($` `-` `144,473)` `(` `-` `144,473)` `(` `10,522,950` `-` `10,522,950` `-` `3,548,558)` `(` `3,548,558)` `(` `12,909,996` `$` `6,126,569)` `($` `6,783,427` `$` 2020 2019 `78,290,566` `$` `66,650,972` `$` Years ended December 31,

(19) Operating revenue

The Company derives revenue from the transfer of goods and services at a point in time in the following categories:

	The Company derives revenue from following categories: Revenue from contracts with custome	the transfer of goods and services at a point in time in the rs `78,290,566` `$` `66,650,972` `$`	the transfer of goods and services at a point in time in the rs `78,290,566` `$` `66,650,972` `$`	the transfer of goods and services at a point in time in the rs `78,290,566` `$` `66,650,972` `$`
(20)	Interest income Revenue from contracts with customers Revenue from contracts with customers Interest income from bank deposits	Year ended December 31,2020
		Electronic products tradingservices Others Total `78,136,849` `$` `153,717` `$` `78,290,566` `$` Year ended December 31,2019		Total
		Electronic products tradingservices `66,570,492` `$` `$`	Others Total `80,480` `$` `66,650,972` `$` 2020 2019 `13,119` `171,637` `$` Years ended December31,	Total
			2020 `13,119`

~36~ 234

(21) Other income

Other income
			Years ended	December 31,
			2020		2019
Dividend income			`15,341`		`12,856`
Rental revenue			`18,722`		`19,855`
Others			`316`		`7,153`
		`$`	`34,379`	`$`	`39,864`
Other gains and losses
			Years ended	December 31,
			2020		2019
Gains on financial assets (liabilities) at fair
value through profit or loss	`($`		`526,247)`	`$`	`51,551`
Net currency exchange gains			`409,903`		`83,243`
Others	`(`		`2,741)`		`97`
	`($`		`119,085)`	`$`	`134,891`

(22) Other gains and losses

Information related to gains (losses) on financial assets at fair value through profit or loss is provided in Note 6(2).

(23) Expenses by nature

in Note 6(2). Expenses by nature
Employee benefit expense Depreciation (Note) Amortization	Years ended December 31,
	2020 `795,221` `$` `4,950` `-` `800,171` `$`	2019
		`624,021` `$` `7,778` `1,146`
		`632,945` `$`

Note: Including depreciation of investment property and right-of-use assets. (24) Employee benefit expense

Employee benefit expense
Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses	Years ended December 31,
	2020 `716,847` `$` `24,230` `13,003` `41,141` `795,221` `$`	2019
		`556,757` `$` `20,755` `11,231` `35,278`
		`624,021` `$`

A. According to the Company’s Articles of Incorporation, if the Company accrues profit (referring to profit before tax prior to deducting the appropriation for employees’ compensation and directors’ remuneration), 4%~6% should be appropriated as employees’ compensation.
B. For the years ended December 31, 2020 and 2019, employees’ compensation was accrued at $223,876 and $325,135, respectively. The aforementioned amounts were recognized in salary expenses. For the year ended December 31, 2020, the employees’ compensation was estimated and accrued based on 4% of profit of current year distributable as of the end of reporting period.

Employees’ compensation for the years ended December 31, 2020 and 2019 as resolved by the Board of Directors were in agreement with the amounts recognized in the 2020 and 2019 financial statements. For the years ended December 31, 2020 and 2019, the employees’

235 ~37~

compensation were distributed in the form of cash amounting to $223,876 and $325,135, respectively.

Information about employees’ compensation of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(25) Income tax

A. Components of income tax expense:

Stock Exchange. ome tax Components of income tax expense:
		Years ended December 31,
		2020			2019
Current tax:
Current tax on profits for the year	`$`	`571,093`	`$`		`602,941`
Tax on undistributed surplus earnings		`142,094`			`181,368`
Prior year income tax under (over) estimation		`41,247`	`(`		`368)`
Total current tax		`754,434`			`783,941`
Deferred tax:
Origination and reversal of temporary
differences	`(`	`99,764)`	`(`		`110,513)`
Income tax expense	`$`	`654,670`	`$`		`673,428`
Reconciliation between income tax expense and accounting		profit:
		Years ended	December 31,
		2020			2019
Tax calculated based on profit before tax and
statutory tax rate	`$`	`1,074,603`		`$`	`1,560,563`
Exempt income according to tax law	`(`	`603,274)`	`(`		`1,068,135)`
Tax on undistributed earnings		`142,094`			`181,368`
Prior year income tax under (over) estimation		`41,247`	`(`		`368)`
Income tax expense		`654,670`			`673,428`
Origination and reversal of temporary differences		`99,764`			`110,513`
Prior year income tax (under) over estimation	`(`	`41,247)`			`368`
Prior year income tax payable		`120,000`			`120,000`
Prepaid income tax	`(`	`2,925)`	`(`		`199,557)`
Current income tax liabilities	`$`	`830,262`		`$`	`704,752`

B. Reconciliation between income tax expense and accounting profit:

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

~38~ 236

January1 Temporary differences: Deferred tax assets: Reserve for inventory obsolescence `3,146` `$` Permanent loss on market value decline of long-term equity investments `16,222` Unused compensated absences for employees `3,540` Unrealised loss on financial instruments `17,696` Others `4,677` `(` `45,281` `$` Deferred tax liabilities: Foreign investment income using equity method `442,655)` `($` Others `41,018)` `(` `(` `483,673)` `($`		2020
		Recognized in profit or loss `-` `$` `-` `888` `24,321` `168)` `25,041` `$` `96,580` `$` `21,857)` `74,723` `$`

~39~ 237

January1 Temporary differences: Deferred tax assets: Reserve for inventory obsolescence `3,146` `$` Permanent loss on market value decline of long-term equity investments `16,222` Unused compensated absences for employees `2,852` Unrealised loss on financial instruments `-` Others `38,048` `(` `60,268` `$` `(` Deferred tax liabilities: Foreign investment income using equity method `505,141)` `($` Unrealised valuation gain on financial instruments `105,530)` `(` Others `-` `(` `610,671)` `($`		2019
		Recognized in profit or loss `-` `$` `-` `688` `17,696` `34,869)` `16,485)` `$` `62,486` `$` `105,530` `41,018)` `126,998` `$`

D. The Company did not recognize taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2020 and 2019, the temporary differences unrecognized as deferred tax liabilities were $97,587,869 and $98,103,567, respectively. Abovementioned taxable temporary differences arose from the differences between estimated carrying amounts of long-term investments in foreign subsidiaries and tax payable. The Company will not dispose the subsidiaries in the foreseeable future nor remit back earnings and thus, did not recognize deferred income tax liabilities.

E. The Company’s income tax returns through 2017 have been assessed and approved by the Tax Authority.

238 ~40~

(26) Earnings per share

Earnings per share
Basic earnings per share Net income Diluted earnings per share Net income Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Net income plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Net income Diluted earnings per share Net income Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Net income plus assumed conversion of all dilutive potential ordinary shares	Year ended December 31,2020
	Weighted average number of ordinary Earnings Amount shares outstanding per share after tax (shares in thousands) (in dollars) `4,718,343` `$` `1,414,485` `3.34` `$` `4,718,343` `$` `-` `5,991` `4,718,343` `$` `1,420,476` `3.32` `$` Weighted average number of ordinary Earnings Amount shares outstanding per share after tax (shares in thousands) (in dollars) `7,129,801` `$` `1,414,485` `5.04` `$` `7,129,801` `$` `-` `8,389` `7,129,801` `$` `1,422,874` `5.01` `$` Year ended December 31,2019		Earnings per share (in dollars)
	Amount after tax `7,129,801` `$` `7,129,801` `$` `-` `7,129,801` `$`	Weighted average number of ordinary shares outstanding (shares in thousands) `1,414,485` `8,389` `1,422,874`

239 ~41~

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

LATED PARTY TRANSACTIONS
Names of related parties and relationship

Names of relatedparties Relationshipwith the Company

Hon Hai Precision Industry Co., Ltd. and Subsidiaries
(Hon Hai and Subsidiaries)
Hongfujin Precision Electronics (Yantai) Co., Ltd.
Pan-International Industrial Corporation and Subsidiaries
Innolux Corporation
Sharp Corporation and Subsidiaries
General Interface Solution Limited
Ennoconn Corporation and Subsidiaries
CyberTAN Technology, Inc. and Subsidiaries
SIO International Holdings Limited Taiwan Branch Entity with significant influence to
the Company
〞
Other related party
〞
〞
〞
〞
〞
〞

For more information about the Company and other subsidiaries, please refer to Note 7.

(2) Significant related party transactions

A. Sales

nificant related party transactions Sales
Sales of goods and services: Entities with significant influence to the Company -Hon Hai and Subsidiaries Subsidiaries Other related parties	Years ended December 31,
	2020 `848,925` `$` `469,439` `34,004` `1,352,368` `$`	2019
		`704,432` `$` `553,397` `43,476` `1,301,305` `$`

B. Management service revenue (shown as ‘operating revenue’)

Management service revenue: Subsidiaries	Years ended December 31,	Years ended December 31,
	2020 `153,717` `$`	2019
		`158,956` `$`

~42~ 240

C. Purchases

Purchases
Purchases of goods and services: Entities with significant influence to the Company -Hon Hai and Subsidiaries Subsidiaries Other related parties	Years ended December 31,
	2020 `64,633,599` `$` `4,492,814` `5,441,003` `74,567,416` `$`	2019
		`54,708,022` `$` `5,331,239` `3,132,186` `63,171,447` `$`

Except for circumstances in which there are no similar transactions for reference and the prices and payment terms are negotiated by both parties, the Company makes purchases from the aforementioned related party at the prevailing market price, with payment periods of 30 to 90 days.

D. Receivables from related parties

days. Receivables from related parties
Accounts receivable: Entities with significant influence to the Company -Hon Hai and Subsidiaries Subsidiaries Other related parties Less: Allowance for bad debts `(`	December 31,2020 `397,483` `$` `180,682` `966` `579,131` `113)` `(` `579,018` `$`	December 31,2019
		`539,571` `$` `333,927` `32,052` `905,550` `172)` `905,378` `$`

The receivables from related parties arise mainly from sales transactions. The amount is due three months after the invoice date. The receivables are unsecured and non-interest bearing. No allowance for doubtful debts was provided against receivables from related parties.

E. Payables to related parties

Payables to related parties
Accounts payable: Entities with significant influence to the Company -Hon Hai and Subsidiaries Subsidiaries Other related parties	December 31,2020 `14,263,356` `$` `1,097,490` `725,922` `16,086,768` `$`	December 31,2019
		`13,951,320` `$` `1,058,296` `620,931` `15,630,547` `$`

The payables to related parties arise mainly from purchase transactions and are made at arm’slength, non-interest bearing and payable within 30~90 days.

241 ~43~

F. Raw materials purchased on behalf of others

Raw materials purchased on behalf of others
Raw materials purchased on behalf of others Entities with significant influence to the Company Other related parties Receivables for raw materials purchased on behalf of others (shown as‘other receivables’) Entities with significant influence to the Company Other related parties	Years ended December 31,
	2020 `33,297,650` `1,839,924` `35,137,574` `$` December 31,2020 `1,394,124` `736,129` `2,130,253` `$`	2019
		`23,940,737` `-` `23,940,737` `$` December 31,2019
		`51,333` `-` `51,333` `$`

G. Lease transactions – lessee
(a) The Company leases plant from entities with significant influence on the Company. Rental contracts are typically made for a period of 5 years. Rents are paid at the beginning of each month.

(b) Acquisition of right-of-use assets:

On January 1, 2019 (the date of initial application of IFRS 16), the Company increased rightof-use assets by $2,687.

(c) Lease liabilities:

i. Outstanding balance:

quisition of right-of-use assets: January 1, 2019 (the date of initial application use assets by $2,687. ase liabilities: Outstanding balance:	of IFRS 16), the Company increased right-	any increased right-
Interest expense Current: Entities with significant influence to the Company Non-current: Entities with significant influence to the Company Entities with significant influence to the Company	December 31,2020 December 31,2019 `689` `$` `683` `$` `638` `$` `1,327` `$` Years ended December 31,	December 31,2019
	2020 `16` `$`	2019
		`22` `$`

ii. Interest expense

(3) Key management compensation

Key management compensation Company
Salaries and other short-term employee benefits Post-employment benefits Share-based payments	2020 2019 `36,162` `$` `26,031` `$` `524` `523` `33,912` `28,666` `70,598` `$` `55,220` `$` Years ended December 31,
		2019
		`26,031` `$` `523` `28,666` `55,220` `$`

~44~ 242

8. PLEDGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

As of March 30, 2021, the Company’s Board of Directors has approved the proposal for the appropriation of earnings in 2020, which can be referred to in Note 6(17).

12. OTHERS

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to operate with the goal 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, issue new shares or sell assets to reduce debt. The Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including “current and noncurrent borrowings” as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as “equity” as shown in the consolidated balance sheet less total intangible assets.

During 2020, the Company’s strategy, which was unchanged from 2019, was to maintain the gearing ratio below 70%.

(2) Financial instruments

A. Financial instruments by category

o below 70%. ancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortised cost Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities at amortised cost Lease liabilities	December 31,2020 `4,337` `$` `2,007,916` `20,758,741` `22,770,994` `$` `214,420` `$` `36,664,490` `36,878,910` `$` `1,327` `$`	December 31,2019
		`10,946` `$` `1,271,373` `21,198,777` `22,481,096` `$` `99,427` `$` `33,952,022` `34,051,449` `$` `2,010` `$`

Note: Financial assets at amortized cost included cash, accounts receivable, accounts receivable due from related parties and other receivables; financial liabilities at amortized cost included short-term loans, accounts payable, accounts payable to related parties and other payables.

B. Risk management policies
(a) Risk categories

The Company employs a comprehensive financial risk management and control system to

243 ~45~

clearly identify, measure and control the various kinds of financial risk it faces, including market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

(b) Management objectives:
- i. Except for market risk, which is controlled by outside factors, the remainder of the foregoing types of risks can be controlled internally or removed from business processes. Therefore, the goal in managing each of these risks is to reduce them to zero.
- ii. As for market risk, the goal is to optimize its overall position through strict analysis, suggestion, execution and audit processes, and proper consideration of a) long-term trends in the external economic/financial environment, b) internal operating conditions, and c) the actual effects of market fluctuations.
- iii. The Company’s overall risk management policy focuses on the unpredictable items in financial markets and seeks to reduce the risk that potentially pose adverse effects on the Company’s financial position and financial performance.
- iv. For the information on the derivative financial instruments that the Company enters into, please refer to Note 6(2).
(c) Management system:
- i. Risk management is executed by the Company’s finance department by following policies approved by the Board. Through cooperation with the Company's operating units, finance department is responsible for identifying, evaluating and hedging financial risks.
- ii. The Board has a written policy covering overall risk management. It also has written policies covering specific issues, such as exchange rate risk, interest rate risk, credit risk, derivative and non-derivative financial instruments used, and the investment of excess working capital.
C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. Nature :

The Company is a multinational group in the electronic manufacturing services industry. Most of the exchange rate risk from operating activities comes from:

(i) Foreign exchange risk arises from different exchange rates to functional currency as the invoice dates of accounts receivable and payable denominated in non-functional foreign currency are different. Because the amount after the assets and liabilities are offset is insignificant, income/loss is insignificant as well. (Note: The Company has several sites in various countries and thus is exposed to various foreign exchange risks. The main risk arises from USD and RMB.)
(ii) Changes in exchange rates of functional currencies to presentation currency at different timing will cause another foreign exchange risk.
(iii) Except for the above transactions (operating activities) recognized in the income statement, assets and liabilities recognized in the balance sheet and the net investment in foreign operations also result in the exchange rate risk.
ii. Management:
(i) For such risks, the Company has set up policies requiring the Company to manage its exchange rate risks.
(ii) As to the exchange rate risk arising from the difference between various functional

~46~ 244

currencies and the reporting currency in the parent company only financial statements, it is managed by the Company’s finance department.

iii. Sources of risk:
U.S. dollars and NT dollars:

Foreign exchange risk arises primarily from gains or losses from translating U.S. dollardenominated assets, such as cash, cash equivalents, accounts receivable, other receivables and time deposits maturing in excess of three months, and U.S. dollar-denominated liabilities, such as loans, accounts payable and other payables, into New Taiwan dollars.

iv. 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	December 31,2020
Foreign currency amount (in thousands) `661,979` `4,242,417` `695,550`	Exchange rate `28.48` `28.48` `28.48`	Book value (NTD) `18,853,162` `$` `120,824,032` `19,809,264`	Degree of variation `1%` `1%`	Effect on profit or loss
				`188,532` `$` `198,093`

~47~ 245

December 31, 2019

(Foreign currency: functional currency) Financial assets Monetary items USD`：`NTD Non-monetary items Foreign operations USD`：`NTD Financial liabilities Monetary items USD`：`NTD	Foreign currency amount (in thousands) `452,771` `3,980,566` `624,622`	Exchange rate `29.98` `29.98` `29.98`	Book value (NTD) `13,574,075` `$` `119,337,372` `18,726,168`	Degree of variation `1%` `1%`	Effect on profit or loss
					`135,741` `$` `187,262`

v. Total exchange gain (loss), including realized and unrealized, 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 $409,903 and $83,243, respectively.

Price risk

i. Nature

The Company primarily invests in domestic listed equity instruments, which are accounted for as financial assets at fair value through other comprehensive income. The price of those equity instruments will be affected by the uncertainty of the future value of the investment.

ii. Extent

If the price of such equity instrument rises or falls by 1%, with all other factors held constant, the impact on other comprehensive income due to equity instruments measured at fair value through other comprehensive income would have been an increase/decrease of $20,079 and $12,714 for the years ended December 31, 2020 and 2019, respectively.

Cash flow and fair value interest rate risk

The Company’s interest rate risk arises from short-term loans. Short-term loans with floating rates expose the Company to cash flow interest rate risk, but most of the risks are offset by cash and cash equivalents with variable interest rates.

If short-term loans interest rates rise or fall by 1%, with all other factors held constant, profit after tax would decrease/increase by $6,757 and $17,702 for the years ended December 31, 2020 and 2019, respectively.

(b) Credit risk

Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments.

i. According to the Company’s credit policy, the Company is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. The Company assesses the credit quality of the

~48~ 246

customers by taking into account their financial position, past experience and other factors to conduct its internal risk management.

ii. If the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
iii. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
(ii) The disappearance of an active market for that financial asset because of financial difficulties;
(iii) Default or delinquency in interest or principal repayments;
(iv) Adverse changes in national or regional economic conditions that are expected to cause a default.
iv. The ageing analysis of accounts receivable (including related parties) is as follows:

Not past due 0 to 90 days 91 to 180 days 181 to 270 days 271 to 360 days Over 361 days	December 31,2020 `16,264,630` `$` `15,331` `-` `-` `-` `-` `16,279,961` `$`	December 31,2019
		`11,093,293` `$` `199,732` `2,175` `997` `369` `-` `11,296,566` `$`

The above ageing analysis was based on past due date.

v. As of December 31, 2020 and 2019, accounts receivable (including related parties) and notes receivable were all from contracts with customers. As of January 1, 2019, the balance of receivables from contracts with customers amounted to $13,712,843.
vi. The Company assesses the expected credit losses of accounts receivable (including those from related parties) as follows:
(i) Accounts receivable are divided into segments according to the Company’s credit rating standards; expected credit losses for each segment are assessed based on the specific loss rate or provision matrix for the segment.
(ii) Loss rates are calculated based on past and current information, taking into account forward-looking information provided by the Business Indicators Database of the National Development Council and the Basel Committee on Banking Supervision.
(iii) As of December 31, 2020 and 2019, the loss allowance for accounts receivable (including those from related parties), assessed using loss rate or provision matrix, is as follows:

247

~49~

December 31,2020 Expected loss rate Total book value Allowance for bad debts December 31,2019 Expected loss rate Total book value Allowance for bad debts	Group1 `0.0285%` `15,543,058` `$` `4,391` `$` Group1 `0.03%` `10,737,245` `$` `3,135` `$`	Group2 `0.0285%` `320,745` `$` `91` `$` Group2 `0.03%` `231,826` `$` `70` `$`	Group3 `0.0665%` `227,712` `$` `151` `$` Group3 `0.07%` `281,915` `$` `197` `$`	Group4 `0.0665%` `188,446` `$` `125` `$` Group4 `0.07%` `45,580` `$` `32` `$`	Total
					`16,279,961` `$` `4,758` `$` Total
					`11,296,566` `$` `3,434` `$`

Group 1: Standard Poor’s, Fitch’s, or Moody’s rating of A-level, or rated as A-level in accordance with the Group’s credit policies for those that have no external credit ratings.
Group 2: Standard Poor’s or Fitch’s rating of BBB, Moody’s rating of Baa, or rated as B or C in accordance with the Group’s credit policies for those that have no external credit ratings.
Group 3: Standard Poor’s or Fitch’s rating of BB + and below, or Moody’s rating of Ba1 and below.
Group 4: Rated as other than A, B, or C in accordance with the Group’s credit policies for those that have no external credit ratings.
vii. The ageing analysis of accounts receivable (including related parties) that were past due but not impaired is as follows:

At January 1 Provision for impairment At December 31 At January 1 Gain on reversal of expected credit impairment loss `(` At December 31	2020 `3,434` `$` `1,324` `4,758` `$` 2019 `4,092` `$` `658)` `3,434` `$`

(c) Liquidity risk

i. Cash flow forecasting is performed by each of the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into

~50~ 248

consideration the Company’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable external regulatory or legal requirements, for example, currency restrictions.

ii. The Company’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities are analyzed into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities and to the expected maturity date for derivative financial liabilities.
iii. Except for lease liabilities listed below, as of December 31, 2020 and 2019, the Company’s non-derivative financial liabilities (including short-term loans, accounts payable and other payables) and derivative financial liabilities (including foreign exchange contracts, cross currency swap contracts and forward foreign exchange contracts) will expire within 1 year.

December 31, 2020 Non-derivative financial liabilities: Lease liability December 31, 2019 Non-derivative financial liabilities: Lease liability	Less than 1year `699` `$` Less than 1year `699` `$`	Between 1 to 2years `641` `$` Between 1 to 2years `699` `$`	Over 2years `-` `$` Over 2years `641` `$`	Total
				`1,340` `$` Total
				`2,039` `$`

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability takes place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Company’s investment in derivative instruments is included in Level 2.
Level 3: Unobservable inputs for the asset or liability.
B. Fair value information of investment property at cost is provided in Note 6(11).
C. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:
(a) The related information on the nature of the assets and liabilities is as follows:

249 ~51~

December 31, 2020		Level 1		Level 2		Level 3		Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Derivative instruments	`$`	`-`	`$`	`4,337`	`$`	`-`	`$`	`4,337`
Financial assets at fair value
through other comprehensive
income
Equity instruments	`$`	`2,007,916`	`$`	`-`	`$`	`-`	`$`	`2,007,916`
Liabilities
Recurring fair value measurements
Financial liabilities at fair value
through profit or loss
Derivative instruments	`$`	`-`	`$`	`214,420`	`$`	`-`	`$`	`214,420`
December 31,2019		Level 1		Level 2		Level 3		Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Derivative instruments	`$`	`-`	`$`	`10,946`	`$`	`-`	`$`	`10,946`
Financial assets at fair value
through other comprehensive
income
Equity instruments	`$`	`1,271,373`	`$`	`-`	`$`	`-`	`$`	`1,271,373`
Liabilities
Recurring fair value measurements
Financial liabilities at fair value
through profit or loss
Foreign exchange contracts	`$`	`-`	`$`	`99,427`	`$`	`-`	`$`	`99,427`

D. The methods and assumptions the Company used to measure fair value are as follows:
i. The instruments the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares

Market quoted price Closing price

ii. When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange contracts and options, the Company adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
iii. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing

~52~ 250

models. Forward exchange contracts are usually valued based on the current forward exchange rate.

iv. The Company takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Company’s credit quality.
E. For the years ended December 31, 2020 and 2019, there was no transfer into or out from Level 1 to Level 2.
F. For the years ended December 31, 2020 and 2019, there was no transfer into or out from Level 3.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.
D. Acquisition or sale of the same security with the accumulated cost reaching $300 million or 20% of paid-in capital or more: Please refer to table 3.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $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 4.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.
I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Notes 6(2), 6(22) and 12(3).
J. Significant inter-company transactions during the reporting periods: Please refer to table 6.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 7.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 6.

(4) Information on major shareholders

Major shareholders information: Please refer to table 10.

14. SEGMENT INFORMATION

None.

251 ~53~

Foxconn Technology Co., Ltd. Loans to others

Table 1

Year ended December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a relatedparty	Maximum outstanding balance during the year ended December 31,2020	Balance at December 31,2020	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Note
													Item	Value
1 1 2	Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD.	Qingdao Hiyn Materials Co., Ltd. Fuzhun Precision Industy (Shenyang) Co., Ltd. YanTai Fuzhun Precision Electronics Co., Ltd.	Other receivables Other receivables Other receivables	Y Y Y	217,960 $ 192,808 607,100	158,538 $ 191,602 569,600	130,865 $ 139,347 569,600	4.35000% 3.91500% 0.49138%	Short-term financing Short-term financing Short-term financing	$ - - -	Business operation Business operation Business operation	$ - - -	Land None None	332,711 $ - -	4,075,034 $ 33,094,649 33,094,649	16,300,135 $ 66,189,298 66,189,298	Note 1 Note 2 Note 2

Table 1, Page 1 252

Foxconn Technology Co., Ltd.

Provision of endorsements and guarantees to others For the year ended December 31, 2020

Number （Note 1） Table 2	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party （Note3）	Maximum outstanding endorsement/ guarantee amount as of December 31, 2020 （Note 4）	Outstanding endorsement/ guarantee amount at December 31, 2020 （Note5）	Actual amount drawn down （Note6）	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 （Note3）	Provision of endorsements/ guarantees by parent company to subsidiary （Note 7）	Provision of Provision of endorsements/ endorsements/ guarantees by guarantees to subsidiary to the party in parent Mainland company China （Note 7）（Note 7） Footnote Expressed in thousands of NTD (Except as otherwise indicated)	Provision of Provision of endorsements/ endorsements/ guarantees by guarantees to subsidiary to the party in parent Mainland company China （Note 7）（Note 7） Footnote Expressed in thousands of NTD (Except as otherwise indicated)	Provision of Provision of endorsements/ endorsements/ guarantees by guarantees to subsidiary to the party in parent Mainland company China （Note 7）（Note 7） Footnote Expressed in thousands of NTD (Except as otherwise indicated)
		Companyname	Relationship with the endorser/ guarantor （Note 2）
0 1 2 3	Foxconn Technology Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Fu Yu Precision Component (Kunshan) Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd.	Foxconn Technology Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Fu Yu Precision Component (Kunshan) Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd.	1 1 1 1	110,315,497 $ 40,750,340 7,091,657 7,213,963	2,000 $ 18,178 79 21,910	2,000 $ 7,838 78 21,773	2,000 $ 7,838 78 21,773	- $ 7,838 - -	0.00% 0.01% 0.00% 0.02%	110,315,497 $ 40,750,340 7,091,657 7,213,963	N N N N	N N N N	Y Y Y Y	Note 8 Note 9 Note 9 Note 9

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:

(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: Ceiling on total endorsements/guarantees granted by the Company is 100% of the Company's net assets and the limit on endorsements/guarantees provided for a single party is 50% of the Company's net assets; limit on total endorsements/g granted by the Company and its subsidiaries is 100% of the Company and its subsidiaries' net assets, the limit on endorsements/guarantees provided for a single party is 50% of the Company's net assets; limit on total guarantees related to granted by and for the Company and its subsidiaries is 100% of the Company and its subsdiaries' net assets, and limit on guarantees provided for a single party is 100% of its subsidiaries. Note 4: Maximum outstanding balance of endorsements/guarantees provided as of the reporting period. Note 5: Fill in the amount approved by the Board of Directors or the chariman if the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 9: The Company and its subsidiaries provided tax-related guarantees for themselves.

253 Table 2, Page 1

Foxconn Technology 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)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December31,2020	As of December31,2020		Note
				Number of shares	Bookvalue	Ownership (%)	Fairvalue
Foxconn Technology Co., Ltd. 〞〞〞 Huazhun Investment Co., Ltd. 〞 Q-Run Holdings Ltd. 〞〞 Foxconn Technology Pte. Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd 〞 Fuzhun Precision (Shenzhen) Industry Co., Ltd.	Common stock of CyberTAN Technology Inc. Common stock of Pan-International Industrial Corp. Common stock of Innolux Corporation Common stock of Advanced Optoelectronic Technology, Inc. Common stock of Innolux Corporation Common stock of Advanced Optoelectronic Technology, Inc. Common stock of China Harmony Auto Holding Ltd. Common stock of FE Holdings USA, Inc. Preferred stock of VIZIO Inc. Common stock of Sharp Corporation Jinan Fujie Industrial Investment Fund Partnership (limited partnership) Guangdong Finance Trust - Peng Yun Tian Hua Collection Fund Trust Guangdong Finance Trust - Peng Yun Tian Hua Collection Fund Trust Guangdong Finance Trust - Peng Yun Tian Hua Collection Fund Trust	None 〞〞〞〞〞〞〞〞〞〞〞〞〞	Financial assets at fair value through other comprehensive income - non-current 〞〞〞〞〞〞〞〞〞 Financial assets at fair value through profit or loss - non-current Financial assets at amortized cost - non-current 〞〞	10,035,348 1,079,986 127,556,349 1,000 121,036,800 7,672,000 38,452,340 8,040 67,368 64,640,000 - - - -	181,640 $ 27,701 1,798,545 30 1,706,619 232,462 520,969 2,134,544 2,069,964 27,928,642 524,752 217,730 2,177,300 217,730	3.05 0.21 1.31 0 1.25 5.31 2.44 11.93 Note 1 12.14 9.09 - - -	181,640 $ 27,701 1,798,545 30 1,706,619 232,462 520,969 2,134,544 2,069,964 27,928,642 524,752 217,730 2,177,300 217,730

Note 1: As of December 31, 2020, the Company owns 67,368 shares of preferred stock in VIZIO Inc., with an ownership interest of 50% in the preferred stock, but no voting rights.

Table 3, Page 1 254

Table 4

Foxconn Technology Co., Ltd.

Aggregate purchases or sale of the same securities reaching $300 million or 20% of paid-in capital or more

Year ended December 31, 2020

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Marketable securities	General ledger account	Counterparty (Note 4)	Relationship with the investor (Note 4)	Balance as at January1,2020	Balance as at January1,2020	Addition	Addition		Disposal	Disposal		Balance as at December 31,2020	Balance as at December 31,2020
					Number of shares (In thousands)	Amount	Number of shares (In thousands)	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Fuzhun Precision (Shenzhen) Industry Co., Ltd. Fuzhun Precision (Shenzhen) Industry Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Nanning Funing Precision Electronics Ltd. Nanning Funing Precision Electronics Ltd. Nanning Funing Precision Electronics Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd	Shanghai Commercial & Savings Bank “Winner” Currency and Bond Series (Drip into Gold) Financial product (WG19011S) Guangdong Finance Trust - Peng Yun Tian Hua Collection Fund Trust Fortune Shuttle No. 1 BOC Principal Guaranteed Open- end RMB Wealth Management Product BOC Principal Guaranteed Open- end RMB Wealth Management Product BOC Principal Guaranteed Open- end RMB Wealth Management Product Open-end RMB Wealth Management Product Open-end RMB Wealth Management Product Open-end RMB Wealth Management Product Bank of Beijing for RMB public structured deposits - 14 Bank of Beijing for RMB public structured deposits - 15 Bank of Beijing for RMB public structured deposits - 16 Bank of Beijing for RMB public structured deposits - 17	Note 1 Note 2 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	The Shanghai Commercial & Savings Bank Guangdong Yuecai Intrust & Investment Company Shanghai Pudong Development Bank Bank of China Bank of China Bank of China Bank of China Bank of China Bank of China Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing	〞〞〞〞〞〞〞〞〞〞〞〞〞	- - - - - - - - - - - - -	RMB 150,000 thousand RMB 200,000 thousand RMB 700,000 thousand - - - - - - RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand	- - - - - - - - - - - - -	- - - RMB 650,000 thousand RMB 700,000 thousand RMB 600,000 thousand RMB 200,000 thousand RMB 200,000 thousand RMB 200,000 thousand - - - -	- - - - - - - - - - - - -	RMB 150,888 thousand RMB 161,832 thousand RMB 701,755 thousand RMB 653,793 thousand RMB 702,723 thousand RMB 605,149 thousand RMB 201,880 thousand RMB 201,184 thousand RMB 201,070 thousand RMB 505,362 thousand RMB 505,414 thousand RMB 504,841 thousand RMB 506,431 thousand	RMB 150,000 thousand RMB 150,000 thousand RMB 700,000 thousand RMB 650,000 thousand RMB 700,000 thousand RMB 600,000 thousand RMB 200,000 thousand RMB 200,000 thousand RMB 200,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand	RMB 888 thousand RMB 11,832 thousand RMB 1,755 thousand RMB 3,793 thousand RMB 2,723 thousand RMB 5,149 thousand RMB 1,880 thousand RMB 1,184 thousand RMB 1,070 thousand RMB 5,362 thousand RMB 5,414 thousand RMB 4,841 thousand RMB 6,431 thousand	- - - - - - - - - - - - -	- RMB 50,000 thousand - - - - - - - - - - -

Table 4, Page 1 255

Investor	Marketable securities	General ledger account	Counterparty (Note 4)	Relationship with the investor (Note 4)	Balance as at January1,2020	Balance as at January1,2020	Addition	Addition		Disposal	Disposal		Balance as at December 31,2020	Balance as at December 31,2020
					Number of shares (In thousands)	Amount	Number of shares (In thousands)	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd	Bank of Beijing for RMB public structured deposits - 18 Bank of Beijing for RMB public structured deposits - 19 Bank of Beijing for RMB public structured deposits - 21 Bank of Beijing for RMB public structured deposits - 22 Bank of Beijing for RMB public structured deposits - 23 Bank of Beijing for RMB public structured deposits - 24 Bank of Beijing for RMB public structured deposits - 25 Bank of Beijing for RMB public structured deposits - 26 Bank of Beijing for RMB public structured deposits - 27 Bank of Beijing for RMB public structured deposits - 28 Bank of Beijing for RMB public structured deposits - 29 Bank of Beijing for RMB public structured deposits - 31 Bank of Beijing for RMB public structured deposits - 32 Bank of Beijing for RMB public structured deposits - 33 Bank of Beijing for RMB public structured deposits - 34 Bank of Beijing for RMB public structured deposits - 35	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing Bank of Beijing	〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	- - - - - - - - - - - - - - - -	RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand - - - - - - - - - - - - -	- - - - - - - - - - - - - - - -	- - - RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 200,000 thousand RMB 300,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand	- - - - - - - - - - - - - - - -	RMB 506,378 thousand RMB 506,219 thousand RMB 504,685 thousand RMB 504,774 thousand RMB 504,774 thousand RMB 504,685 thousand RMB 504,685 thousand RMB 504,737 thousand RMB 504,685 thousand RMB 504,789 thousand RMB 504,537 thousand RMB 201,764 thousand RMB 302,877 thousand RMB 504,611 thousand RMB 504,658 thousand RMB 504,844 thousand	RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 200,000 thousand RMB 300,000 thousand RMB 500,000 thousand RMB 500,000 thousand RMB 500,000 thousand	RMB 6,378 thousand RMB 6,219 thousand RMB 4,685 thousand RMB 4,774 thousand RMB 4,774 thousand RMB 4,685 thousand RMB 4,685 thousand RMB 4,737 thousand RMB 4,685 thousand RMB 4,789 thousand RMB 4,537 thousand RMB 1,764 thousand RMB 2,877 thousand RMB 4,611 thousand RMB 4,658 thousand RMB 4,844 thousand	- - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - -

Table 4, Page 2 256

Investor	Marketable securities	General ledger account	Counterparty (Note 4)	Relationship with the investor (Note 4)	Balance as at January1,2020	Balance as at January1,2020	Addition	Addition		Disposal	Disposal		Balance as at December 31,2020	Balance as at December 31,2020
					Number of shares (In thousands)	Amount	Number of shares (In thousands)	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Hon Fujin Precision Industry (Taiyuan) Co., Ltd Hon Fujin Precision Industry (Taiyuan) Co., Ltd	Bank of Beijing for RMB public structured deposits - 36 Guangdong Finance Trust - Peng Yun Tian Hua Collection Fund Trust	Note 1 Note 1	Bank of Beijing Guangdong Yuecai Intrust & Investment Company	〞〞	- -	- RMB 700,000 thousand	- -	RMB 500,000 thousand -	- -	RMB 504,611 thousand RMB 191,413 thousand	RMB 500,000 thousand RMB 150,000 thousand	RMB 4,611 thousand RMB 41,413 thousand	- -	- RMB 550,000 thousand

Note 1 ： Recorded in “financial assets at amortized cost-current”.

Table 4, Page 3 257

Foxconn Technology 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

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

									(Except as otherwise	(Except as otherwise	indicated)
Purchaser/seller	Counterparty	Relationship withthe counterparty		Transaction			Differences in transaction terms compared to third party transactions		Notes/accountsreceivable (payable)		Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD. FOXCONN TECHNOLOGY PTE. LTD. FOXCONN TECHNOLOGY PTE. LTD. FTC TECHNOLOGY INC. Fuzhun Precision (Shenzhen) Industry Co., Ltd.	Foxconn (Far East) Ltd. and subsidiaries Champ Tech Optical (Foshan) Corporation FTC Technology Inc. Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries Hon Fujin Precision Industry (Taiyuan) Co., Ltd. SHARP CORPORATION and subsidiaries Foxconn (Far East) Ltd. and subsidiaries Champ Tech Optical (Foshan) Corporation	The indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. The investee is an indirect subsidiary of the Company The investee is an indirect subsidiary of the Company The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The investee is an indirect subsidiary of the Company Other related parties The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries	Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales	730,418 $ 228,922 188,871 12,709,659 711,219 288,214 3,771,586 1,320,939 161,072 2,244,026 3,138,469 246,449 151,241 117,142	1 - - 89 5 7 92 77 9 20 29 2 60 91	90 days 90 days 90 days 90 days 90 days 90 days 60 days 90 days 90 days 90 days 90 days 60 days 90 days 90 days	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	363,568 $ 89,709 29,229 8,966,295 197,483 218,450 1,199,416 411,759 - 853,881 1,377,188 55,004 46,185 -	2 1 - 96 2 15 83 77 - 26 41 2 47 -	Note 2

258 Table 5, Page 1

Differences in transaction

							Differences in transaction	Differences in transaction
Purchaser/seller	Counterparty	Relationship withthe counterparty		Transaction			terms compared to third party transactions		Notes/accountsreceivable (payable)		Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Nanning Funing Precision Electronics Co., Ltd. YanTai Fuzhun Precision Electronics YanTai Fuzhun Precision Electronics Champ Tech Optical (Foshan) Corporation Champ Tech Optical (Foshan) Corporation Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD.	FOXCONN TECHNOLOGY PTE LTD. Foxconn (Far East) Ltd. and subsidiaries Fu Yu Precision Components (Kunshan) Co., Ltd. Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries Nanning Funing Precision Electronics Co., Ltd. Champ Tech Optical (Foshan) Corporation Fuzhun Precision (Hebi) Electronics Co., Ltd. YanTai Fuzhun Precision Electronics Co., Ltd. INNOLUX CORPORATION GENERAL INTERFACE SOLUTION (GIS) HOLDING LIMITED SHARP CORPORATION Foxconn (Far East) Ltd. and subsidiaries Foxconn (Far East) Ltd. and subsidiaries Foxconn (Far East) Ltd. and subsidiaries	The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision The counterparties of the investee are indirect subsidiaries of the Company and its The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its The indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. The investee is an indirect subsidiary of the Company The investee is an indirect subsidiary of the Company The investee is an indirect subsidiary of the Company The investee is an indirect subsidiary of the Company Other related parties Other related parties Other related parties The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries	Sales Sales Sales Sales Sales Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases	131,533 $ 166,919 232,982 510,512 3,040,535 64,620,124 1,975,678 2,050,556 175,074 291,507 2,022,343 179,517 3,208,674 3,268,043 401,445 1,014,928	5 15 22 7 40 85 3 3 - - 3 - 4 24 12 9	90 days 90 days 90 days 90 days 90 days 90 days 30 days 90 days 90 days 90 days 60 days 60 days 60 days 90 days 90 days 90 days	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	28,594 $ 75,364 87,167 262,089 572,373 14,258,282) ( 394,758) ( 522,134) ( 105,931) ( 74,667) ( 210,609) ( - 509,967) ( 5,815,247) ( 164,144) ( 187,266) (	5 27 32 11 23 77) ( 2) ( 3) ( 1) ( - 1) ( - 3) ( 75) ( 16) ( 6) (

259 Table 5, Page 2

Purchaser/seller	Counterparty	Relationship withthe counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accountsreceivable (payable)	Notes/accountsreceivable (payable)	Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
FOXCONN TECHNOLOGY PTE. LTD. Champ Tech Optical (Foshan) Corporation Champ Tech Optical (Foshan) Corporation	Hon Hai Precision Industry Co., Ltd. Foxconn (Far East) Ltd. and subsidiaries Pan-International Industrial Corp. and subsidiaries	The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries Other related parties	Purchases Purchases Purchases	774,164 $ 242,296 418,370	7 4 6	90 days 90 days 90 days	Note 1 Note 1 Note 1	Note 1 Note 1 Note 1	302,734) ($ 41,205) ( 128,900) (	9) ( 2) ( 6) (

Note 1: Except for circumstances in which there are no similar transactions for reference and the prices and credit periods are negotiated by both parties,

the aforementioned related party is offered prices very close to those offered to other customers and given a payment period of 30 to 90 days.

260 Table 5, Page 3

Foxconn Technology Co., Ltd.

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

December 31, 2020

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationshipwith the counterparty	Balance as at December 31,2020	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD. FOXCONN TECHNOLOGY PTE. LTD. Nanning Funing Precision Electronics Co., Ltd. Champ Tech Optical (Foshan) Corporation	Foxconn (Far East) Ltd. and subsidiaries Foxconn (Far East) Ltd. and subsidiaries SHARP CORPORATION and subsidiaries Pan-International Industrial Corp. and subsidiaries Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries FOXCONN TECHNOLOGY PTE. LTD. Foxconn (Far East) Ltd. and subsidiaries Foxconn Technology Co., Ltd. Foxconn (Far East) Ltd. and subsidiaries Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Foxconn Technology Co., Ltd. Foxconn (Far East) Ltd. and subsidiaries	The indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. The indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. Other related parties Other related parties The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The Company’s ultimate parent company The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries The Company’s ultimate parent company The counterparties of the investee are indirect subsidiaries of Hon Hai Precision Industry Co., Ltd. and its subsidiaries	363,568 $ 1,394,124 (shown as other receivables)(Note 1) 101,120 (shown as other receivables)(Note 1) 771,723 (shown as other receivables)(Note 1) 8,966,295 197,483 218,450 1,199,416 411,759 105,931 853,881 1,377,188 394,758 262,089	1 .74 Not applicable Not applicable Not applicable 1 .14 3.54 1.97 3.96 2.48 1.86 2.84 1.97 6.71 2.10	5,712 $ - - - 3,869,051 - 49,436 73,683 152,436 21,767 28,262 100,559 4,769 39,773	Subsequent collection - - - Subsequent collection - Subsequent collection Subsequent collection Subsequent collection Subsequent collection Subsequent collection Subsequent collection Subsequent collection Subsequent collection	5,712 $ - - - 3,869,051 - 49,436 73,683 152,436 21,767 28,262 100,559 4,769 17,023	- $ - - - - - - - - - - - - -

261 Table 6, Page 1

Creditor	Counterparty	Relationshipwith the counterparty	Balance as at December 31,2020	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Champ Tech Optical (Foshan) Corporation Champ Tech Optical (Foshan) Corporation	Foxconn Technology Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD.	The Company’s ultimate parent company The counterparties of the investee are indirect subsidiaries of the Company and its subsidiaries	522,134 $ 572,373	4.40 5.47	- $ -	- -	- $ -	- $ -

Note 1: Receivables from purchases of materials by investees on behalf of the ultimate parent company.

Table 6, Page 2 262

Foxconn Technology Co., Ltd.

Table 7

Significant inter-company transactions during the reporting period

Year ended December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
0 0 0 0 0 0 1 1 2 2 3 3 4 5 5 5 6 6 7 7 8	Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. 〝 Hon Fujin Precision Industry (Taiyuan) Co., Ltd. 〝 Fu Yu Precision Components (Kunshan) Co., Ltd. 〝 FOXCONN TECHNOLOGY PTE. LTD. 〝 YanTai Fuzhun Precision Electronics Co., Ltd. Champ Tech Optical (Foshan) Corporation Champ Tech Optical (Foshan) Corporation 〝 Nanning Funing Precision Electronics Co., Ltd. Nanning Funing Precision Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. Fuzhun Precision (Shenzhen) Industry Co., Ltd.	Nanning Funing Precision Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd. FTC Technology Inc. YanTai Fuzhun Precision Electronics Co., Ltd. Champ Tech Optical (Foshan) Corporation 〝 FOXCONN TECHNOLOGY PTE. LTD. 〝 FOXCONN TECHNOLOGY PTE. LTD. 〝 Hon Fujin Precision Industry (Taiyuan) Co., Ltd. 〝 Fu Yu Precision Components (Kunshan) Co., Ltd. Foxconn Technology Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD. 〝 FOXCONN TECHNOLOGY PTE. LTD. Foxconn Technology Co., Ltd. FOXCONN TECHNOLOGY PTE. LTD. Foxconn Technology Co., Ltd. Champ Tech Optical (Foshan) Corporation	1 1 1 1 1 1 3 3 3 3 3 3 3 2 3 3 2 3 2 3	Purchases Purchases Sales Purchases Purchases Sales Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales	1,975,678 $ 175,074 188,871 291,507 2,050,556 228,922 711,219 197,483 3,771,586 1,199,416 3,138,469 1,377,188 232,982 522,134 3,040,535 572,373 131,533 394,758 161,072 105,931 117,142	Note 4 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	2 - - - 2 - 1 - 4 1 2 1 - - 3 - - - - -

Note 1: The information of transactions between the Company and the subsidiaries should be noted in “Number” column.

Note 2: (1) Number 0 represents the Company.

Note 2: (2) The consolidated subsidiaries are numbered in order from number 1.

Note 2: The transaction relationship with counterparties are as follows:

Note 2: (1) The Company to the consolidated subsidiary.

Note 2: (2) The consolidated subsidiaries to the Company.

Note 2: (3) The consolidated subsidiaries to other consolidated subsidiaries.

263 Table 7, Page 1

Foxconn Technology Co., Ltd.

Information on investees

Year ended December 31, 2020

				Year ended December 31, 2020	Year ended December 31, 2020
Table 8 Investor	Investee	Location	Mainbusiness activities	Initial investment amount		Sharesheld as atDecember		31,2020	Net profit (loss) of the investee for the year ended December31,2020	Expressed in thousands of NTD (Except as otherwise indicated) Investment income (loss) recognised by the Company for the year ended December31,2020 Note
				Balance as at December31,2020	Balance as at December31,2019	Numberofshares	Ownership (%)	Bookvalue
Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd. Foxconn Technology Co., Ltd.	Q-Run Holdings Ltd. Foxconn Precision Components Holding Co., Ltd. Huazhun Investment Co., Ltd. Syntrend Creative Park Co., Ltd.	Cayman Islands Cayman Islands Taiwan Taiwan	Investment holding Investment holding Investment Retail of office machinery and equipment and electronic appliances, and information software services	9,851,192 $ 492,742 1,254,780 490,322	9,851,192 $ 492,742 1,254,780 490,322	480,077,600 135,839,643 125,478,000 49,032,250	100 100 100 20	104,857,153 $ 15,966,879 1,995,846 277,578	1,987,983 $ 533,232 12,150 18,887) (	1,956,152 $ 533,232 12,150 3,772) (

Table 8, Page 1 264

Foxconn Technology Co., Ltd.

Information on investees in Mainland China

Table 9

Year ended December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2020	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the year ended December 31,2020	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the year ended December 31,2020	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2020	Net income of investee for the year ended December 31,2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2020 (Note 2)	Book value of investments in Mainland China as of December 31,2020	Accumulated amount of investment income remitted back to Taiwan as of December 31,2020	Note
					Remitted to Mainland China	Remitted back to Taiwan
Fuhuigang Industrial (Shenzhen) Co., Ltd. Fu Yu Precision Components (Kunshan) Co., Ltd. Fuzhun Precision (Shenzhen) Industry Co., Ltd. Fu Rui Precision Components (Kunshan) Co., Ltd. Hon Fujin Precision Industry (Taiyuan) Co., Ltd. Nanning Funing Precision Electronics Co., Ltd. YanTai Fuzhun Precision Electronics Co., Ltd. Fuzhun Precision (Hebi) Electronics Co., Ltd.	Computer case – electronic and electrical components Manufacturing and marketing of power plug and wall socket, micro ribbon connectors for terminals, etc. Manufacturing and marketing of computer components (computer thermal module) Electrical board components processing; manufacturing and marketing of optoelectronics and computer cables Manufacturing and marketing of computer components and related peripherals, computer cases and metal stamping Manufacturing and marketing of computer components (computer thermal module) Manufacturing and marketing of computer case - electronic and electrical components New alloy material, precision molds, new electronic components, portable computers and their components	220,919 $ 1,115,676 555,360 350,048 11,676,800 279,104 1,124,960 4,206,496	2 2 2 2 2 2 2 2	220,919 $ 560,657 56,960 224,536 3,972,960 - 1,124,960 1,415,456	`-` `$` `-` `-` `-` `-` `-` `-` `-`	`-` `$` `-` `-` `-` `-` `-` `-` `-`	220,919 $ 560,657 56,960 224,536 3,972,960 - 1,124,960 1,415,456	25,461 $ 530,177 343,319 - 528,516 342,088 3,725) ( 213,896	100 100 100 100 100 100 100 100	25,461 $ 530,177 343,319 - 528,516 342,088 3,725) ( 213,896	463,312 $ 7,091,657 5,308,174 - 40,750,340 3,152,682 642,938 7,213,963	`-` `$` `-` `-` `-` `-` `-` `-` `-`

Table 9, Page 1 265

Note 1: Investment methods are classified into the following three categories:
(1) Directly invest in a company in Mainland China.
(2) Through investing in Q-Run Holdings Ltd. or Foxconn Precision Components Holding Co., Ltd., which then invested in Mainland China.
(3) Others.
Note 2: Except for Hon Fujin Precision Industry (Taiyuan) Co., Ltd., the investment income (loss) recognised by all other investees in Mainland China for the year ended December 31, 2020 were not audited or attested by R.O.C. parent company's CPA.
Note 3: Pursuant to the amended ‘Guidelines Governing the Review of Investment or Technical Cooperation in the Mainland Area’ dated on August 29, 2008, as the Company has obtained the certificate of being qualified
for operating headquarters, issued by the Industrial Development Bureau, MOEA, the ceiling amount of the investment in Mainland China is not applicable to the Company from May 31, 2018 to May 30, 2021.
Note 4: The Company needs no approval by Investment Commission of the Ministry of Economic Affairs for investment in Qingdao Hiyn Materials Co., Ltd., Fuzhun Precision (Shenyang) Industry Co., Ltd., Fuyu Technology
(Nanyang) Co., Ltd. and Champ Tech Optical (Foshan) Corporation which were reinvested through an existing company in Mainland China.
Note 5: The Company’s subsidiary, Fu Yu Precision Components (Kunshan) Co., Ltd., merged with the subsidiary, Fu Rui Precision Components (Kunshan) Co., Ltd, with the effective date set on December 31, 2018. As of December 31, 2020, the merger is still in process.

266 Table 9, Page 2

Table 10

Foxconn Technology Co., Ltd.

Major shareholders information

December 31, 2020

Name of major shareholders	Shares held as at December31,2020	Shares held as at December31,2020
	Number of shares	Ownership (%)
Hon Hai Precision Industry Co., Ltd. Bao Xin International Investment Co., Ltd. Hung Yang Venture Investment Co., Ltd.	139,725,801 126,181,274 85,003,766	9.87 8.92 6.00

267 Table 10, Page 1

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2020

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

Summary 1

Items Cash in banks Check deposits Demand deposits Foreign deposits USD 71,173 In thousands Exchange rate 28.48 JPY 114,363 In thousands Exchange rate 0.2800 EUR 207 In thousands Exchange rate 35.02 HKD 1,175 In thousands Exchange rate 3.6700 SGD 25 In thousands Exchange rate 21.56 RMB 607 In thousands Exchange rate 4.3500 Description	Amount
	2,532 $ 265,909 2,027,010 31,598 7,245 4,317 535 2,645
	2,341,791 $

(Remainder of page intentionally left blank)

268 Summary 1, Page 1

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF ACCOUNTS RECEIVABLE DECEMBER 31, 2020

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

Summary 2

Items			Amount	Remark
PKM CORPORATION		$	14,708,497
				Balance of individual
				customers is under 5% of
Others			992,333	this account's balance.
			15,700,830
Less: Allowance for bad debts	(		4,645)
		$	15,696,185
Accounts receivable from related parties
Hongfujin Precision Electroncis (Yantai) Co., Ltd.		$	168,040
Hongfujin Precision Electroncis (Wuhan) Co., Ltd.			91,147
Champ Tech Optical (Foshan) Corporation			89,709
Shenzhen Fugui Precision Industry Co., Ltd.			42,543
Nanning Funing Precision Electronics Co., Ltd.			31,536
High Tempo International Ltd. - B.V.I			30,382
FTC Technology Inc.			29,229
				Balance of individual
				customers is under 5% of
Others			96,545	this account's balance.
			579,131
Less: Allowance for bad debts	(		113)
		$	579,018

269 Summary 2, Page 1

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF INVENTORY FOR THE YEAR ENDED DECEMBER 31, 2020

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

Summary 3

Summary 3
Items Finished goods Inventory in transit Less: Provision for inventory valuation losses	Summary
		Cost 2,085,876 $ 352,982 2,438,858 15,729) ( 2,423,129 $

270 Summary 3, Page 1

FOXCONN TECHNOLOGY CO., LTD. MOVEMENT SUMMARY OF INVESTMENTS ACCOUNTED FOR UNDER THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2020

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

Summary 4

Companyname	In thousand shares Amount 480,078 103,757,140 $ 135,840 15,580,232 125,478 1,197,817 49,032 281,350 120,816,539 $ As of January1,2020	In thousand shares Amount - 4,093,525 $ - 535,298 - 804,898 - - 5,433,721 $ Additions(Note 1)	In thousand shares Amount - 2,993,512) ($ - 148,651) ( - 6,869) ( - 3,772) ( 3,152,804) ($ Deductions(Note 2)	As	Ownership (%) Amount 100 104,857,153 $ 100 15,966,879 100 1,995,846 20 277,578 123,097,456 $ of December 31,2020	Market value or net	equiryvalue	Pledged as collateral
	In thousand shares 480,078 135,840 125,478 49,032	In thousand shares - - - -		In thousand shares 480,078 135,840 125,478 49,032	Ownership (%) 100 100 100 20	Totalprice 104,959,596 $ 15,966,879 1,995,846 245,703 123,168,024 $	Valuation basis Equity method 〃〃〃
Q-RUN HOLDINGS LTD. FOXCONN PRECISION CONPONENTS HOLDING CO., LTD. HUAZHUN INVESTMENT CO., LTD. SYNTREND CREATIVE PARK CO., LTD.								None 〃〃〃

Note 1: Additions include investment income accounted for using equity method, change in capital surplus and recognition of valuation adjustment for FVTOCI financial assets gain on investees' financial instruments. Note 2: Deductions include investment loss accounted for using equity method, cash dividends received, change in capital surplus, recognition of valuation adjustment for FVTOCI financial assets loss on investees' financial instruments and exchange differences on translation of foreign financial statements.

(Remainder of page intentionally left blank)

271 Summary 4, Page 1

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF SHORT-TERM LOANS DECEMBER 31, 2020

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

Summary 5

Summary 5
Items Unsecured bank loans 〞〞〞〞〞〞〞〞〞〞〞	Bank Amount Standard Chartered Bank (Taiwan) Ltd. 996,800 $ Bank of America Taipei Branch 1,139,200 Citibank Taiwan Ltd. Taipei Branch 1,993,800 HSBC Bank (Taiwan) Limited 1,165,000 The Bank of Tokyo-Mitsubishi, Ltd. 2,848,000 Mizuho Bank Taipei Branch 1,086,000 China Construction Bank Taipei Branch 1,050,000 DBS Bank (Taiwan) Ltd. 1,139,200 Crédit Agricole Corporate and 1,000,000 Investment Bank Taipei Fubon Commercial Bank Co., Ltd 1,500,000 E.Sun Bank (East Sanchung Branch) 600,000 14,518,000 $	Term of Contract 2020/12/11~2021/1/04 2020/12/23~2021/1/22 2020/12/09~2021/1/15 2020/12/31~2021/1/29 2020/12/28~2021/1/28 2020/10/29~2021/3/29 2020/12/18~2021/1/15 2020/12/04~2021/1/04 2020/10/29~2021/4/29 2020/11/13~2021/1/13 2020/12/28~2021/1/28	Rate 0.50% 0.57% 0.48% 0.65% 0.55% 0.55% 0.51% 0.48% 0.80% 0.50% 0.77%	Financing amount (In thousands) USD 60,000 USD 40,000 USD 113,000 USD 140,000 USD 100,000 USD 150,000 USD 200,000 USD 100,000 USD 250,000 NTD 1,500,000 NTD 3,000,000	Collateral None 〞〞〞〞〞〞〞〞〞〞	Footnote

Summary 5, Page 1 272

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF ACCOUNTS PAYABLE FOR THE YEAR ENDED DECEMBER 31, 2020

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

Summary 6

Vendor Name Accounts payable Company A Company W Company G Others Accounts payable to related parties Hongfujin Precision Electroncis (Yantai) Co., Ltd. Others	Description	Amount Notes 1,768,306 $ 263,442 193,609 127,535 Balance of individual vendor is under 5% of this account's balance. 2,352,892 $ 14,223,941 $ 1,862,827 Balance of individual vendor is under 5% of this account's balance. 16,086,768 $	Notes

273 Summary 6, Page 1

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2020

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

Summary 7

Items Electronic products Others Less: Sales returns and discounts	Quantity (in thousands) Amount Note 80,942,966 $ 153,717 81,096,683 2,806,117) ( 78,290,566 $	Remark

Note: The number of products sold is varied and the units of pricing are different, so the quantity is not listed.

(Remainder of page intentionally left blank)

274 Summary 7, Page 1

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2020

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

Summary 8
	Items		Amount
Beginning raw materials		$	-
Add: Incoming inventory			-
Less: Ending raw materials			-
Material consumption			-
Manufacturing expenses			-
Manufacturing costs			-
Add: Beginning work in process			-
Incoming inventory			-
Cost of finished goods			-
Add: Beginning finished goods			438,042
Acquisition of finished goods			76,218,234
Less: Ending finished goods		(	2,438,858)
Other operating costs			200,998
		$	74,418,416

(Remainder of page intentionally left blank)

275 Summary 8, Page 1

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF OTHER OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2020

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

Summary 9

Items Wages and salaries Labor and health insurance Pension Processing fee Others	Description	Amount Remark 135,287 $ 5,227 3,106 3,586 53,792 Balance of individual accounts is under 5% of this account's balance. 200,998 $	Remark

276 Summary 9, Page 1

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF SELLING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2020

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

Summary 10

Items Wages and salaries Freight Storage Pension Others	Description	Amount Remark 120,958 $ 33,100 3,646 2,106 53,759 Balance of individual accounts is under 5% of this account's balance. 213,569 $	Remark

Summary 10, Page 1 277

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF GENERAL AND ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2020

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

Summary 11 Items Description Amount Remark Wages and salaries $ 156,634 Other professional service expenses 8,197 Pension 3,101 Balance of individual accounts is under 5% of this account's Others 79,280 balance. $ 247,212

Summary 11, Page 1 278

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF RESEARCH AND DEVELOPMENT EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2020

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

Summary 12 Items Wages and salaries Labor and health insurance Pension Others	Description	Amount Remark 303,968 $ 9,347 4,690 25,970 Balance of individual accounts is under 5% of this account's balance. 343,975 $	Remark

Summary 12, Page 1 279

FOXCONN TECHNOLOGY CO., LTD. SUMMARY OF EMPLOYEE BENEFITS EXPENSES, DEPRECIATION AND AMORTIZATION BY FUNCTION FOR THE YEAR ENDED DECEMBER 31, 2020

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

Summary 13

Summary 13
By nature Employee benefits expenses (Note) Wages and salaries Labor and health insurance Pension Directors' compensation Others Depreciation Amortization		Year ended December 31,2020		Total 716,847 $ 24,230 13,003 1,800 39,341 795,221 $ 4,950 $ - $		Year ended December 31,2019
	Classified as Operating Costs 135,287 $ 5,042 3,106 - 8,070 151,505 $ 686 $ - $	Classified as Operating Expenses 581,560 $ 19,188 9,897 1,800 31,271 643,716 $ 3,257 $ - $	Classified as Non-operating Expenses - $ - - - - - $ 1,007 $ - $		Classified as Operating Costs 175,573 $ 6,055 3,314 - 9,132 194,074 $ 1,679 $ - $	Classified as Operating Expenses 381,184 $ 14,700 7,917 1,902 24,244 429,947 $ 4,933 $ 1,146 $	Classified as Non-operating Expenses - $ - - - - - $ 1,166 $ - $	Total
								556,757 $ 20,755 11,231 1,902 33,376
								624,021 $
								7,778 $
								1,146 $

Note A: As of December 31, 2020 and 2019, the Company had 176 and 166 employees, respectively, including 5 non-employee directors for both years.

B. A company whose stock is listed for trading on the stock exchange or over-the-counter securities exchange shall additionally disclose the following information:
(a) Average employee benefit expense in current year was $4,640 ((Total employee benefit expense in current year - Total directors’ compensation in current year)/ (Number of employees in current year - Number of non-employee directors in current year)).

Average employee benefit expense in previous year was $3,864 ((Total employee benefit expense in previous year - Total directors’ compensation in previous year)/ (Number of employees in previous year - Number of non-employee directors in previous year)).

(b) Average employee salaries in current year was $4,192 (Total employee salaries in current year / (Number of employees in current year - Number of non-employee directors in current year)).

Average employee salaries in previous year was $3,458 (Total employee salaries in previous year / (Number of employees in previous year - Number of non-employee directors in previous year)).

(c) Adjustment of average employee salaries was (21.22%) ((Average employee salaries in current year - Average employee salaries in previous year)/ Average employee salaries in previous year).
(d) The compensation to supervisors was $0 for the years ended December 31, 2020 and 2019.

280 Summary 13, Page 1

FOXCONN TECHNOLOGY CO., LTD.

SUMMARY OF EMPLOYEE BENEFITS EXPENSES, DEPRECIATION AND AMORTIZATION BY FUNCTION (Cont.) FOR THE YEAR ENDED DECEMBER 31, 2020

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

Summary 13

(e) The Company's compensation policies (including for board of directors, managers and employees)
(i) Compensation policy for board of directors: the distribution of compensation and travel allowance to directors (including independent directors) are made in accordance with the “Rules for Distribution of Compensation to Directors” as approved by the board of directors. All directors received a fixed payment for compensation and travel allowance, and no variable payments were made.
(ii) Compensation policy for managers: the distribution of salaries to managers are made in accordance with the "Rules for Distribution of Remuneration to Managers", the Company's profit and loss statement for management, and their level of contribution. Timely reviews of the manager's remuneration program will be made in line with the actual operating conditions and the relevant laws and regulations. The remuneration program includes a base salary, a performance bonus, and an individual bonus. For base salaries, the Company takes into account the industry standards, job title, academic qualifications, experiences, professional competencies and job responsibilities. The performance bonuses are allocated based on the level of contribution made by each operating segment to the profits earned by the Company. The individual bonus is based on the individual performance of each manager.
(iii) Compensation policy for employees: the distribution of compensation to the employees is based on the individual's capabilities, level of contribution to the company, individual's performance, the value of the role to the Company, and the projected future risks the Company will face. If the Company generates a profit in the current period, 4-6% of distributable profit shall be allocated as employees' bonus in accordance with the Company's Articles of Association. The bonus will be paid to each employee based on their performance.

Summary 13, Page 2 281

VI. Financial insolvency incidents encountered by the Company and affiliates for the most recent years, up till the printing date of this annual report: None.

Seven. Review of Financial Position, Business Performance and Risk Issues I. Financial Position Analysis

Unit: NTD thousand

Year Items	2020	2019	Difference	Difference	Analysis of changes (Note)
			Amount	%
Current assets	113,612,184	108,072,195	5,539,989	5%
Investments under equity method	5,259,090	5,791,082	(531,992)	(9%)
Property, plant, and equipment	4,960,067	5,942,398	(982,331)	(17%)
Other assets	45,278,379	44,770,142	508,237	1%
Total assets	169,109,720	164,575,817	4,533,903	3%
Current liabilities	58,012,616	54,840,529	3,172,087	6%
Other liabilities	828,349	1,129,678	(301,329)	(27%)	1
Long-term liabilities	-	-	-	-
Total Liabilities	58,840,965	55,970,207	2,870,758	5%
Share capital	14,144,852	14,144,852	-	-
Capital surplus	7,527,365	7,527,178	187	0%
Retained earnings	81,333,471	80,163,968	1,169,503	1%
Other equity and non- controllinginterests	7,263,067	6,769,612	493,455	7%
Total equity	110,268,755	108,605,610	1,663,145	2%

Note: Percentage of change analysis: Detailed description shall be stated if the percentage of change exceeds 20% and the amount exceeds NT$10,000,000.

Lower other liabilities primarily due to the reduction of lease liabilities - non-current.

II. Financial Performance Analysis

				Unit: NTD thousand	Unit: NTD thousand
Year Items	2020	2019	Amount of change	Percentage of change	Analysis of changes (Note)
Operating revenue	104,789,599	99,802,129	4,987,470	5%	1
Gross profit	6,469,573	9,950,386	(3,480,813)	(35%)	1
Operating profit or loss	2,618,425	5,294,292	(2,675,867)	(51%)	2
Non-operating revenues and expenses	2,817,345	3,081,986	(264,641)	(9%)
Profit before tax	5,435,770	8,376,278	(2,940,508)	(35%)	2
Business units in current continuing operation income	4,686,123	7,037,114	(2,350,991)	(33%)	2
Discontinued operation loss	-	-	-
Current period net profit (loss)	4,686,123	7,037,114	(2,350,991)	(33%)	2
Other comprehensive income in current period (Net amount aftertax)	513,048	6,824,527	(6,311,479)	(92%)	3
Total current period comprehensive income	5,199,171	13,861,641	(8,662,470)	(62%)	3

Note: Percentage of change analysis: Detailed description shall be stated if the percentage of change exceeds 20% and the amount exceeds NT$10,000,000.

Lower gross profits primarily due to change in product mix during the period
Lower operating profits, earnings before tax, income from continuing operations, and net profit primarily due to the significant reduction in gross profits
Lower other comprehensive income and total comprehensive income during the period primarily due to the reduction in value of financial assets measured at fair value through other comprehensive income

III. Cash Flow Analysis

(I) Summary of cash flow change analysis in the most recent year:

Year Item	2020	2019	Percentage of increase (decrease) (%)
Cash flow ratio (%)	4.19	23.00	(82%)
Cash flow adequacy (%)	103.86	144.97	(28%)
Cash flow reinvestment ratio (%)	(0.83)	6.04	(114%)
Summary of change: 1. Lower cash flow ratio primarily due to significantly lower cash flows from operating activities 2. Lower cash flow adequacy ratio primarily due to significantly lower cash flows from operating activities and higher cash dividend payouts during the most recent five years 3. Lower cash flow reinvestment ratio primarily due to lower cash flows from operating activities during the period

(II) Cash flow analysis for the coming year:

(II) Cash flow analysis for the coming year:	(II) Cash flow analysis for the coming year:	(II) Cash flow analysis for the coming year:	(II) Cash flow analysis for the coming year:
				Unit: NTDthousand
Cash balance at the beginning of period (1)	Estimated yearly net cash inflow from operating activities(2)	Estimated yearly net cash outflow (3)	Anticipated Cash Surplus (Shortage) (1)+(2)-(3)	Remedies for cash shortage
				Investment plan	Financial plan
76,101,991	7,513,918	5,420,128	78,195,781	-	-
Summary of cash flow change analysis in the current year (2021): 1. Operating activities: The Company expects increasing operations and forecasts a cash inflow of NT$7,513,918 thousand for the year. 2. Investing activities: Expand production equipment and strategic overseas investment in line with business needs. 3. Financingactivities: The Companywill distribute cash dividend and repayshort-term bank loans,

IV. Impacts of Major Capital Expenditures in the Most Recent Year to Financial Performance

(I) Major capital expenditures and sources of capital:

					Unit: NTDthousand
Project	Actual or planned source of capital	Planned completion date	Total capital required	Actual or planned	capital expenditures
				2020 (Actual)	2021 (Planned)
Expansion of factories and machineries	Working capital	December 31, 2021	1,268,242	455,079	813,163

(II) Estimated benefits:

The aforementioned capital expenditure is incurred for an additional acquisition of necessary production and R&D machinery and equipment, as well as for the expansion of production lines, sales and maintenance bases at home and abroad, all of which are to meet the Company's needs on business development, enhancing product competitiveness, and actively developing related technologies such as heat transfer modules, metal casings and electronic assembly.

V. Causes of Profit or Loss Incurred on Investments in the Most Recent Year, and Any Improvements or Investments Planned for the Next Near

The Company's reinvestment is mainly used to expand the production capacity of overseas subsidiaries to enhance the overall cost competitiveness and quality advantages. The investment company's current operating conditions are good and stable.

VI. Analysis of Risk Factors

(I) The impact of interest rates, exchange rate changes, and inflation on the Company's profit and loss and future response measures:
Interest rates:
- (1) Interest rate movements in 2020 The pandemic spread around the world in 2020, causing consumption and investment to cool down, production and trade to plummet and pushing the global economy into a severe recession. To boost the economy, central banks around the world have resorted to many measures such as super quantitative easing (QE) and loose monetary policies. The European Central Bank and Bank of Japan have been maintaining ultra low interests for much longer. The U.S. Fed announced two emergency interest rate cuts in March to reduce the Federal Funds Rates to 0~0.25%. Despite its success in fending off COVID-19, Taiwan suffered a significant economic decline during the first half of 2020 due to the drastic decline of the global economy. To cope with the impact of the pandemic, the central bank in Taiwan also reduced the interest rates by 25 bps in March, bringing the rediscount rate to the historical low point of 1.125%.
- (2) Annual net interest income (interest income less interest expenses) reached NT$1 million, a positive contribution to the Company.
- (3) Future response measures:
- As vaccines have been approved and administered by governments around the world, the pandemic is expected to gradually ease off in 2021. Meanwhile, the political uncertainties in the U.S. and Europe have been eliminated. The economic growth will outpace the performance in 2020.The Company will continue to leverage the group’s advantage and robust operational mechanism to negotiate favorable interest rates with financial institutions, in order to reduce funding cost effectively and generate financial incomes appropriately.

2. Exchange rates:

(1) Exchange Interest rate movements in 2020:
① The EUR/USD started at the 1.1183 level against the US dollars in the beginning of 2020. In January, the Manufacturing Purchasing Managers' Index (PMI) in the Euro zone remained in a doldrum. The geopolitical tension in the Middle East erupted again. The US dollars rebounded strongly from a six-month low point and as a result, the Euro was weakened. In February, the UK and the EU were divided in the trade negotiations. The economic difference between the U.S. and Europe continued to widen, and the Euro continued to drop to the 1.08 level. In early March, the U.S. Fed reduced the interest rates by 50 bps. This created a heavy pressure on the U.S. dollars because of the market’s expectation for further and aggressive interest rate cuts. As a result, the Euro climbed back to the 1.14 level. Soon after this, COVID-19 hit Europe hard and the economy took a heavy blow. The U.S. Fed cut the interest rates again by 1%. The stock markets crashed around the world. The risk sentiment escalated the U.S. dollars was pursued as the safe haven currency. This resulted in a rapid depreciation of the Euro, to the lowest point of the year at 1.0636 on March 23, before a rebound. In June and July, investors anticipated rising COVID-19 infections to hammer the U.S. economic recovery compared to other countries. The U.S. dollars dived to the lowest point during the past two years, and the Euro appreciated to 1.1846. In September, the inflation data for the Euro zone was weak. The global stock markets faltered due to rising COIVID-19 cases and the uncertainty surrounding the U.S. election in November. Investors sought the U.S. dollars as a safe haven. The Euro depreciated to 1.1625 at the end of September. In November and December, Biden won the U.S. election. The pharma

heavyweight Pfizer claimed that its COVID-19 vaccine under development is over 90% effective. The market expected the U.S. Fed and the U.S. Congress to implement more measures to mitigate the adverse impact of the pandemic on the economy. The U.S. dollars softened and the Euro continued to go strongly, reaching the highest point of 2020 at 1.2310 on December 30 and closed at 1.2258 on December 31. The fluctuation of the Euro was 14.97% throughout 2020.

② The USD/JPY opened at 109.01 at the beginning of 2020. In early January, the Japanese yen fluctuated under the influence of the geopolitics between the U.S. and Iran. In February, the economic data released in the U.S. were strong and the risk sentiment in response to COVID-19 in Asia favored the U.S. dollars. As a result, the USD/JPY came to the highest point of the year at 112.23 on February 20. In early March, COVID-19 accelerated its pace throughout the world. The U.S. Fed implemented an emergency interest rate cut. The stock markets in Europe and the U.S. crashed. The demand for the Japanese yen as a safe haven currency continued to rise. The USD/JPY declined dramatically and hit the lowest point of 101.18 of the year on March 9. The U.S. Fed had another emergency interest rate cut and deployed a massive bond purchase program. Investors were increasingly concerned about the economy and sought safe heaven in the U.S. dollars due to its highest liquidity. The Japanese yen gave way as the safe haven currency. The USD/JPY climbed up rapidly to 111 before a drop back. In June and July, the conflict between China and the U.S. deteriorated on many fronts. The U.S. saw a dramatic decline in GDP during the second quarter. The road of the economic recovery was uncertain. As a result, the U.S. dollars depreciated quickly, with the USD/JPY down from 109.50 to around 104.65. From August to December, the confirmed COVID-19 cases in the U.S. kept rising. Biden won the U.S. election. Many companies expressed optimism about the progress of coronavirus vaccines. The U.S. Congress reached consensus for another round of relief measures. All the factors contributed to a positive market mood. Investors continued to believe that the U.S. dollars would remain weak. The Japanese yen appreciated further and closed the year at 103.19, with the annual fluctuation reaching 10.14%.
③The USD/NTD opened at 30.125 at the beginning of 2020. In early January, President Tsai IngWen and the Democratic Progressive Party (DPP) claimed a landslide victory the the election for presidential re-election and the majority seats of the Legislative Yuan. The central bank in Taiwan also allowed the hot money to bring the NT dollars to the above 30 level. In February and March, the global markets trembled on the pandemic. The international crude oil prices collapsed. Central banks around the world were busy cutting interest rates to stimulate the economies. The central bank in Taiwan also reduced the interest rate by 25bps in March to boost the economy. The USD/NTD reached the highest point of the year at 30.540 on March 20. From April to June, the U.S. Fed launched a US$2.3 trillion coronavirus rescue package, sending the US dollars downward. Hot money flew into emerging markets in Asia and pushed up the NT dollars, the Chinese yuan, and the Korean won. The NT dollars briefly hit 29.500, a high point during the past two years. In July and August, the NT dollars consolidated around the 29.400 level. In September, the US dollars weakened in the international market. Exporters continued to sell US dollars and pushed the appreciation of the NT dollars further. From October to December, foreign capital flooded into the Taiwan stock markets after the U.S. election came to an end. The lack of buying interest completely in the US dollars placed the NT dollars under heavy pressure of appreciation. The central bank of Taiwan tried to keep the NT dollars at 28.500 with unlimited purchases, but the short-term momentum of the NT dollars remained strong. In the end, the USD/NTD came to the lowest point for the year at 28.095 on December 29 and closed the year at 28.348. The annual fluctuation of the NT dollars reached 8.12%.
④The USD/RMB opened at 6.9822 a the beginning of 2020. In early January, the positive news of expected signing of the US-China trade agreement created a rally of the RMB to 6.85 or so. Shortly after this, the coronavirus spread in China and Wuhan went into a lockdown. The panic sentiment arose. The USD/RMB in February jumped to 7.03 before a fall back when China managed to control the endemic. In early March, COVID-19 ravaged the world. The U.S. Fed was forced to lower the interest rates twice in a row. The White House implemented a travel ban and the market became increasingly panicked. Investors rushed to purchase the US dollars due to its best liquidity. As a result, the USD/RMB exceeded 7.10. In April and May, the increase of COVID-19 deaths hit the risk sentiment. The US dollar index held steadily. Meanwhile, the U.S. President Trump threatened to take revenge against China, to compensate the loss of the U.S. economy due to the pandemic. The USD/RMB reached the highest point for the year at 7.1777

on May 27. From June to December, the Chinese economy recovered well. The spreads between China and the U.S. remained wide. The progress of COVID-19 vaccines development looked optimistic. This created continued pressure on the U.S. dollars. Offshore funds flew into China, pushing up the Chinese yuan. Although the People’s Bank of China in October reduced the foreign exchange risk reserves to zero for selling forward contracts, as a strong signal to slow down the appreciation of the Chinese yuan. However, there was a limited space for maneuvers. The USD/RMB reached the trough for the year at 6.5154 on December 31 and closed at 6.5302 on the same day. The annual fluctuations reached 9.49%.

⑤Although the market expects the U.S. Fed to maintain a loose monetary policy in 2021, but the vaccination program may speed up the U.S. economic recovery. The US dollars may remain strong against other major currencies in 2021. That said, there will be impacts from unexpected economic and political events.
(2) The impact on the Company's profit and loss:

In respond to the change of the external environment, the Company adopts a conservative approach in its currency hedging and seeks to minimize the impact of currency fluctuations on our operations. The net income/loss from currency conversions and financial instrument transactions totaled NT$ -4 million on the consolidated financial report for 2020.

(3) Future response measures:

In order to avoid the risk of exchange rate fluctuations, the Company will continue to adopt the natural hedging method of assets and liabilities offsetting to avoid risk exposure and reduce the impact of exchange rate risk.

3. Inflation

The volatility of the commodity price movements was significantly higher in 2020 due to the pandemic. Many commodities prices were collapsed at the beginning of the year but managed to have a comeback afterward. The inflation in Taiwan was low due to the pandemic and international oil price drops. The Consumer Price Index (CPI) declined by 0.23% year-over-year, compared to an increase of 0.56% in 2019.The impact on the Company’s profit and loss was insignificant. The global economy in 2021 is set to recovery from the lockdowns during the 2020 pandemic. Commodity prices may continue to go up, and it is necessary to brace for the impact of rising prices for raw materials. The Company’s management will adhere to the long-standing policies by making timely adjustments in response to inflation/deflation and other changes in the external environment. Meanwhile, the management will continue to strengthen procurement advantages, reduce all costs and diversify clienteles in order to boost operating performance.

(II) Policies regarding highly-risky, highly-leveraged investments, lending, endorsements and guarantees, and derivatives trading; main reasons for related profits or losses, and responding measures:

High-risk, high-leverage investment: None.
Capital loans (applicable to both the Company and subsidiaries):
(1) The borrowers of the Company’s loans are subject to the followings:
- Businesses that the Company has business dealing with.

Where an company or firm short-term financing facility is necessary, provided that such amount of loan to others shall not exceed 40% of the Company’s net worth.
(2) The term "short-term" mentioned in the preceding paragraph refers to one year. Where the Company's operating cycle exceeds one year, such operating cycle shall prevail.
(3) The term "amount of loan to others” in paragraph 1 subparagraph 2 refers to the cumulative balance of the Company's short-term financing.
(4) The restriction in paragraph 1 subparagraph 2 shall not apply to inter-company loans of funds between overseas companies in which Company holds, directly or indirectly, 100% of the voting shares.
(5) Future response measures: When the Company grants loans, such matter may be processed according to the Procedure for Loaning Funds, only after being approved at board meeting.

3. Capital loans (applicable to both the Company and subsidiaries):

(1) The counterparties of the Company’s endorsement/guarantee are subject to the followings:
Companies that the Company has business dealing with.
- A company in which the Company directly or indirectly holds more than fifty percent
- (50%) of the voting shares.
- A company that directly or indirectly holds more than fifty percent (50%) of the voting
- shares in the Company.
(2) Companies in which the Company holds, directly or indirectly, ninety percent (90%) or more of the voting shares may make endorsements/guarantees for each other, and the amount of endorsements/guarantees may not exceed ten percent (10%) of the net worth of the Company. This restriction shall not apply to endorsements/guarantees made between companies in which the Company holds, directly or indirectly, one hundred percent (100%) of the voting shares.
(3) Where the Company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project, or where all capital contributing shareholders make endorsements/ guarantees for their jointly invested company in proportion to their shareholding percentages, or where companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for preconstruction homes pursuant to the Consumer Protection Act for each other, such endorsements/guarantees may be made free of the restriction of the preceding two paragraphs.
(4) Capital contribution as referred to in the preceding paragraph shall mean a capital contribution made directly by the Company, or through a company in which the Company holds one hundred percent (100%) of the voting shares.
(5) Future response measures: When the Company issues endorsements/guarantees, such matter may be processed according to the Operational Procedures for Endorsements and Guarantees, only after being approved at board meeting.

4. Derivative trading policies:

(1) Policy: The Company engages in derivative commodity transactions, which are mainly used

for risk aversion. Hedged positions include: exchange rate, interest rate and raw materials related to the Company's production activities, the scope of which covers the assets and liability positions held by the Company or expected assets and liabilities to be held. The trading direction shall be subject to the trading direction of hedging transaction which is the reverse of the trading direction of hedged positions.

(2) The main reason for profit or loss: The company inevitably generates risk exposures of exchange rate, interest rate or cost of procurement from ordinary operating activities or necessary financial activities required for business operation, resulting in fluctuations and uncertainties in the Company's profit and loss. the Company mainly conducts hedging transactions, in order to exclude such uncertainty from operation risks, to allow the Company to focus on ordinary sales activities, with an ultimate goal of minimizing the impact of nonoperating gains and losses.
(3) Future response measures: According to the Company's procedures for derivative transactions, the Company formulate detailed and standardized operation procedures on the division of powers and responsibilities. In terms of internal control, the relevant personnel of the Company must strictly safeguard and control the following six types of risk management: credit risk, market risk, liquidity risk, operational risk, legal risks, cash flow risk, etc. In addition to regular performance evaluation, analysis, and discussion, the Company's internal auditors check the operational processes of the transactions on a regular and irregular basis, identify and immediately make correction to the problems found, and provide timely improvement suggestions on whether the Company's matters comply with relevant government laws and Company procedures, to improve management performance.

(III) Future R&D plans and projected investment in R&D expenses:

Integrating existing technologies related to heat transfer, materials, automation, surface treatment, electronic products, etc., reviewing the need for new technologies, and summarizing the relevant strategies of these technologies.
Development of cooling case integration technology:

The R&D expenditure during the pas three years was between NT$1.742 billion and NT$2.223 billion, or 1.24%~2.23% of revenues. The R&D expenditure for 2021 is expected to be in the same range, as a percentage of revenues. Building a cooling case integration technology R&D center to expand the development of new products. Combining existing key components and system product

design/integration/manufacturing capabilities, the Company is confident to break the current 3C market share structure, which the US and Japan are dominating. The progress of important plans is as followed.

Annual plans of coming years	Current plan	Projected investment in R&D expenses of revenue	Duration to complete massproduction
Innovative thermal flow	Under research	1.24%~2.23%	2021
Surface treatment technology	Under research		2021
Material/Process technology	Under research		2021

(IV) Effect on the Company's financial operations of important policies adopted and changes in the legal environment at home and abroad, and measures to be taken in response: None.
(V) Effect on the Company's financial operations of developments in science and technology as well as industrial change, and measures to be taken in response.

With the advancement and evolution of technology, in recent years, 3C products such as computers, communications and consumer electronics have sought to differentiate in terms of design, functional reorganization and materials to attract consumers' attention and consumption temptation. At the same time, the rise of emerging markets and intense competition among manufacturers have kept the downward trend of the prices unchanged. However, the speed of change is different depending on the products. Besides, as the consumer tastes change rapidly, the product life cycle has also been shortened drastically as well. These trends are serious challenges for OEMs’ capabilities in terms of R&D, rapid mass production, operation, cost control, inventory control, and capital scheduling. Nonetheless, the Company and its customers adopt a collaborative development mechanism, where the Company tailors to customer's needs, product design directly adopts the mass production concept, and strictly control the inventory level with computer system and administrative mechanism. The Company also has been working hard to reduce costs over the years to maintain its leading position in cost, increase operational efficiency and maximize profits for shareholders. Therefore, when major changes in technology lead to changes in industry trends, restructuring of supply chain segments and price competition are inevitable. The Company is able to cope with the changes and convert the advantages created by past efforts into profits. Therefore, the changes in new technology has a fairly positive impact on the Company's finance.

(VI) Effect on the Company's crisis management of changes in the company's corporate image, and measures to be taken in response:

In addition to the product quality, mass production speed, cost control, delivery punctuality and system integration capabilities, the Company's corporate image is more importantly built on customer trust in the Company's execution, management capabilities and overall service. At the same time, in order to increase the customer's trust in the Company, the Company is self-motivated to set up a complete crisis management mechanism. After years of accumulated experience, the crisis management mechanism is becoming completed. In the event of a major crisis, the Company is able to properly handle the Company's reputation and corporate image.

(VII) Expected benefits and possible risks associated with any merger and acquisitions, and mitigation measures being or to be taken:

There is no plans for acquisition up till the printing date of the annual report.

(VIII) Expected benefits and possible risks associated with any plant expansion, and mitigation measures being or to be taken:

The Company’s main production sites are in Kunshan, Shanxi, Foshan and Hebi, China. Operational and R&D center are in Taiwan. We take the industry prospects, customer needs and opportunities for expansion into consideration for suitable future layout. The Company will alo continue to introduce innovative technologies and operational concepts to improve the manufacturing process to improve quality, reduce cost, and provide customers with more timely and appropriate services.

(IX) Risks associated with any consolidation of sales or purchasing operations, and mitigation measures being or to be taken:

The Company is a vertically integrated supplier, aiming at providing customers with the best service. The customers of the Company include various well known domestic and foreign brand names. Currently, there is no consolidation of sales or purchasing operations. Our actual product is “speed, quality, engineering services, flexibility, and cost”. We believe that as long as we can carry out the five aforementioned elements thoroughly, our customer sources will be secured. The industry or the supply chain is changing rapidly. Continuous strengthening of the Company’s "competitiveness" is the only long-term solution. A truly competitive company can continue to grow and profit even if its industry is in a recession. How to improve its competitiveness is The subject of our company's concern.

(X) Effect upon and risk to the company in the event a major quantity of shares belonging to a director, supervisor, or shareholder holding greater than a 10 percent stake in the company has been transferred or has otherwise changed hands, and mitigation measures being or to be taken:

There is no such situation up till the printing date of the annual report.

(XI) Effect upon and risk to company associated with any change in governance personnel or top management, and mitigation measures being or to be taken:

There is no change in the Company's governance personnel or top management up till the printing date of the annual report.

(XII) Litigious and non-litigious matters: None.

(XIII) Information security risk

Information security structure

The Company has established an organization structure for Information Security

Committee, with its top executive of a business sector as a committee member, its deputy

director as a deputy committee member, its chief information officer as a member of the Information Security Standing Committee member. The committee's director-general is the director of the information security, and the executive director is the head of each department. Regular management review meetings are held to formulate and review information security management objectives and policies. In order to effectively implement the information security management policy, the information security consists of a procedure/operation team, an audit team, an education training team, and an emergency response team, which are held by senior management personnel of various functional departments to promote the information security management review meeting resolutions of safe operation. In order to enable the information security management system to continue to operate in a stable and steady manner.

Information security policy:

The Company's information security policy is to "maintain the Company's information confidentiality, integrity, availability and legality, and avoid improper use, leakage, tampering, damage, loss, etc. in the event of human error, vandalism or natural disasters, which affects the Company’s operation or brings harm to the Company’s benefits.” Over the years, we have followed the requirements of the security policy, regularly conducted information security promotion, and staff information security education and training. In order to better align with the international information security management trend and respond to customer information security requirements, we began to introduce the ISO27001 information security management system in 2011, and passed ISO27001 certification for important information system services on August 2011. The certificate is valid until July 2023. Through the introduction of the ISO27001 information security management system, the Company has implemented information security policies, protected customer information and corporate intellectual property, strengthened the flexibility at information security incidents, and achieved information security policy metrics standards.

The Company actively monitors the degree of security risk exposure through the technical aspects of the security strategy, the contingency mechanism, the software and hardware construction, and other technological aspects. However, considering that the security insurance is still an emerging insurance category, the Company will appoint a professional insurance company to evaluate and compare the risk of the Group and the degree of risk transfer, and review the qualifications of the claims forensic institutions and confirm the claim practice, all of which to ensure that the Group obtains the best insurance coverage. The Company will arrange for insurance coverage immediately after the research is completed.

Information security control:

The cyber attack method is changing with each passing day. The information system can't completely prevent cyber attacks from any third party. The cyber attacks can embed malicious programs on the Company's intranet to destroy or stealing of data through e- mail, phishing, brute force and other methods. Destructive attacks may result in disruption of the Company's production operations, and data theft attacks may result in the loss of important operational information or employees’ and customers’ personal data. The company actively plans to deploy information security measures to continuously

improve the information security environment and reduce information security risks. Management related specifications are formulated in various aspects inlcude, policy system, organizational responsibility, human security, document management, asset management, communication and operation management, access control, physical environment, system development and maintenance, operational continuity management, security incident management, regulatory compliance. The Company has installed network firewalls, intrusion detection systems, email security systems, automated detection and update of operating systems, virus protection systems, network authorization systems, security monitoring systems, and vulnerability scanning system. Every six months, internal and external professional auditors and audit organizations performs audit on the Company's information security management system. Each year, the security operations, risk control and event improvement are reviewed and reported to the Security Committee to control and reduce the security risks.

Employee information security training:
New employees are given basic information security training upon entering the Company. Regular education training, posters and film promotions are used to strengthen the inservice employees' awareness of security. For the problems found in the internal information audit, the information security management and control are immediately implemented through the corrective prevention process, to reduce the leakage of data and confidential information of the Company and the customers. When external information security incidents occur, a security breach will be reported to strengthen the Company's information security maturity, and improve the employees’ awareness of external malicious attack prevention, etc., providing information security for the Company's production and operation activities.
The Company did not experience any major cyber-attacks that affected operations in 2020.
Managing measures:

(XIV) Other important risks, and mitigation measures being or to be taken: None.

VII. Other Material Items: None

Eight. Supplementary Disclosure

I. Information On Affiliated Companies

(I) Consolidated business reports of affiliated companies

Organizational chart of affiliated companies

==> picture [703 x 332] intentionally omitted <==

----- Start of picture text -----

Foxconn
Technology
Co., Ltd.
100% 100% 100%
Foxconn
Precision Q-Run
Hua-Zhun
Components Holdings
Holding Investment Co., Ltd..
Ltd.
Co.,Ltd.- -Cayman
Cayman
100% 100% 100% 100% 100% 100%
Holdings Ltd.-BahamasAtkinson Far East-B.V.I.Q-RunCorp. World TradeTrading-B.V.I.Ltd. InternationalHigh Tempo-B.V.I.Ltd. TechnologyFTCInc. Technology-SingaporeFoxconnPte. Ltd.
100% 100% 100% 100% 100% (Note 4) 100% 100% 100% 100%
International-BahamasKennyLtd. Double WealthProfits Ltd.-Samoa Precious StarInternational-B.V.I.Ltd. Eastern Star-Bahamas Ltd. TechnologyForeign-B.V.I.Ltd. Industrial-B.V.I.TopfryLtd. InternationalGold Glory-BahamasLtd. NEW GLORYHOLDINGSLTDHK TechnologyFTPInc.
100% (註2) 100% 12.37% 87.63% 100% 100% 100% 100% 100%
(Kunshan) Co.,Fury PrecisionComponentsLtd Technology(Nanyang)Co. Ltd.Fuyu 100%(Note 3) (Shenzhen) Co.,PrecisionIndustryFuZhunLtd. 65% Optical (Foshan)Champ TechCorporation (Shenyang) Co.,PrecisionIndustryFuZhunLtd. 100% HongFuJin(Taiyuan)IndustrialPrecisionCo., Ltd 70% Materials Co., LtdInnovative AlloyQingdao Hygen (Hebi) Co.,ElectronicsPrecisionFuZhunLtd. (Shenzhen)FuhuigunCo., Ltd.Industry FuYu Precision(Kunshan) Co.,ComponentsLtd. Yantai FuZhunElectronicsPrecisionCo., Ltd. ElectronicsPrecisionNanningFuningLtd.
35%
----- End of picture text -----

Note 1: The affiliated companies the Company is subordinated to do not own the Company’s shares.

Note 2: The Company’s subsidiary FuYu Precision Components (Kunshan) Co., Ltd. absorbed and acquired the subsidiary Fury Precision Components (Kunshan) Co., Ltd on December 31, 2018. The latter was deregistered on August 10, 2020.

Note 3: The subsidiary Fuyu Technology (Nanyang) Co. Ltd. was liquidated at the end of 2020 and all the remaining funds were returned to shareholders.

Note 4: The subsidiary Foreign Technology Ltd. was liquidated in the first quarter of 2021 and all the remaining funds were returned to shareholders.

2. Information on affiliated companies

December 31, 2020

				December 31, 2020
Company name	Date of incorporation	Address	Paid-in capital	Business scope
Foreign Technology Ltd.	03/28/2000	Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola,VG1110,British Virgin Islands	US$250,000	Not limited, but subject to local laws and regulations.
HIGH TEMPO INTERNATIONAL LIMITED	03/18/1999	Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola,VG1110,British Virgin Islands	US$1.00	Not limited, but subject to local laws and regulations.
Q-Run Far East Corporation	04/30/1999	Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola,VG1110,British Virgin Islands	US1,052,073,076	Not limited, but subject to local laws and regulations.
Q-RUN HOLDINGS LIMITED	01/06/1999	P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman,KY1-1205 Cayman Islands	US$480,077,600	Not limited, but subject to local laws and regulations.
Foxconn Technology Pte. Ltd.	04/18/2005	79 Anson Road # 07-03 Singapore (079906)	US519,575,996.19	Not limited, but subject to local laws and regulations.
Topfry Industrial Ltd.	03/18/1998	Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola,VG1110,British Virgin Islands	US$7,500,000	Not limited, but subject to local laws and regulations.
World Trade Trading Limited	01/05/1999	Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola,VG1110,British Virgin Islands	US$38,100,000	Not limited, but subject to local laws and regulations.
Atkinson Holdings Ltd.	06/29/1998	Vistra Corporate Services Centre, Marlborough & Queen Streets, Nassau,New Providence,Bahamas	US$34,839,000	Not limited, but subject to local laws and regulations.
Kenny International Ltd.	08/10/1995	Vistra Corporate Services Centre, Marlborough & Queen Streets, Nassau,New Providence,Bahamas	US$6,793,000	Not limited, but subject to local laws and regulations.
Double Wealth Profits Ltd.	09/08/1998	Vistra Corporate Services Centre, Ground Floor NPF Building, Beach Road,Apia,Samoa	US$2,000,000	Not limited, but subject to local laws and regulations.
Precious Star International Ltd.	07/02/1999	Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola,VG1110,British Virgin Islands	US$21,896,000	Not limited, but subject to local laws and regulations.
Foxconn Precision Components Holding CompanyLimited	12/04/1998	P.O. Box 31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman,KY1-1205 Cayman Islands	US$135,839,643	Not limited, but subject to local laws and regulations.
Gold Glory International Ltd.	03/18/1998	Vistra Corporate Services Centre, Marlborough & Queen Streets, Nassau,New Providence,Bahamas	US$18,512,000	Not limited, but subject to local laws and regulations.
FTC Technology Inc.	09/02/2005	2525 Brockton Dr., Austin, TX 78758	US$100,000	Not limited, but subject to local laws and regulations.
FTP Technology Inc.	10/07/2005	8809B Fallbrook Dr. Houston, TX 77064	US$250,000	Not limited, but subject to local laws and regulations.
Eastern Star Limited	05/21/1997	Vistra Corporate Services Centre, Marlborough & Queen Streets, Nassau,New Providence,Bahamas	US$302,809,000	Not limited, but subject to local laws and regulations.
New Glory Holdings Limited	11/29/2007	Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong.	HK$ 5,389,670,315	Not limited, but subject to local laws and regulations.
HongFuJin Precision Industrial (Taiyuan) Co., Ltd.	08/26/2002	No.1, Longfei Street, Tanghuai Park, Taiyuan City, Zonggai Demonstration Zone, Shanxi Province, 030032 China	US$410,000,000	Production of new alloy materials, precision molds, new electronic components, portable computers and spare parts for the above-mentioned products, new architectural materials, aluminum alloy architectural profile, construction doors and windows and construction curtain walls,automotive,electronic related

Company name	Date of incorporation	Address	Paid-in capital	Business scope
				aluminum alloy components, sales of Company products. Production and operation of new environmental protection and energy-saving lamps. Production and operation of metal display casings, metal automotive components. Production, operation and installation of metal construction materials. Sales of company-produced products and provide after-sales service. Production and sales of barreled drinking water. Production and development of mobile communication systems, base stations, switching equipment and digital trunking system equipment and components, electronic product testing equipment, digital cameras and key components, third-generation and subsequent mobile communication system mobile phones, base stations, core network equipment, network monitoring equipment and relevant molds of the above-mentioned products. Providing relevant technical consultation and after-sales service, and sales of the Company's own products. Import and Export of the above-mentioned products Mobile phone repair and maintenance; inspection of automation equipment, robotic equipment and its components, development, designing, production, sales and provision of automation equipment, remodeling of robotic equipment and modules, relocation, repair, and maintenance services. (If project is subject to authorization, approval must be attained before commencement of operation.)
Yantai FuZhun Precision Electronics Co., Ltd.	02/13/2007	No.18, Changsha Avenue, Economic Technology Development Zone, Yantai City, Shandong Province, 265701 China	US$39,500,000	Development and production of new flat panel displays, new electronic components, materials for semiconductor and component purpose, LCD TVs, portable microcomputers, large and medium-sized electronic computers, large precision instruments, metal molds, mold standard parts, new and high-tech non-ferrous metal Materials, construction hardware, heat dissipation components, large-capacity memory, digital TV, digital camcorder,motor,new environmentalprotection and

Company name	Date of incorporation	Address	Paid-in capital	Business scope
				energy-saving lamps, new game consoles (100% export), equipment for electronics, testing equipment, tool and die manufacturing, manufacturing of high-end CNC machine tools and the manufacture of parts of the above- mentioned products. Sales of the above-mentioned Company-produced products and after-sales service. (With the exception of specially regulated merchandise by the country, authorized merchandise are allowed for production withpermit).
Fuhuigun Industry (Shenzhen) Co., Ltd.	08/18/1998	Yousong No.10 Industrial Zone, Longhua Sub-district, Longhua, Shenzhen, 518000 China	US$ 7,500,000	Own property leasing (operable under the Company's legal property certificate). Production and operation of computer casing components, electronic components and power electronic components 80% export Addition: Computer-aided design, auxiliary testing, auxiliary manufacturing, auxiliary engineering systems, and other computer application systems. 80% export
FuYu Precision Components (Kunshan) Co., Ltd.	07/09/1998	No. 880, Zizhu Road, Yushan Town Kunshan, Jiangsu, 215316 China	US$49,200,000	Development and production of new alloy materials, precision modules and new electronic components, portable computer, special-purpose optoelectronic material, optoelectronic components, fiber optic connectors and the accessories of the aforementioned products; production of medical equipment, batteries, fans, intelligent equipment, game consoles and the material of their components; sales of company products. The following items are limited to the production in branch factories: Production of special materials for components include tape, foam, conductive aluminum foil, conductive fabric, dustproof net, cushion and other computer and computer peripherals, mobile phones and other digital audio and video codec equipment. Sales of electric bicycles, mobility scooters, and parts thereof; manufacturing and sales of off- highway vehicles and parts thereof. (If project is subject to authorization, approval must be attained before commencement of operation.)

Company name	Date of incorporation	Address	Paid-in capital	Business scope
FuZhun Precision Electronics (Hebi) Co., Ltd.	01/31/2013	The North Of Weiliu Street, Middle Of Heqi Road, Heqi Industrial Agglomeration Area, Hebi City, Henan Province, P.R.China	US$147,700,000	Production of new alloy materials, precision molds, new electronic components, portable computers and spare parts for the above-mentioned products. Production and operation of new architectural materials, aluminum alloy architectural profile, construction doors and windows, construction curtain walls, automotive, electronic related aluminum alloy components, new environmental protection and energy-saving lamps, metal display casings, and metal automotive components. Production, operation and installation of metal construction materials. Sales of company-produced products and provide after-sales service. Labor dispatch services. (If special operating permit is involved, approval must be obtained before commencement of operation.)
FuZhun Precision Industry (Shenzhen) Co., Ltd.	07/24/1998	F1-4, Plant 2, Sec. K1, Longhua St., Foxconn Longhua Technology Park, Shenzhen City, Guangdong Province, 518109 China	US$19,500,000	Production and operation of new electronic components, heat-dissipating components for new electronic, electrical and communication products, hardware and plastic parts, materials specially for electronic components for insulation, heat dissipation, adhesive tape, electronic masking, buffering and protection. Automotive heat sinks, audio-visual equipment and related spare parts, motors and related spare parts, electronic and industrial aluminum profiles, new environmentally-friendly and energy-saving lamps, aluminum profiles for architectural decoration and aluminum alloy doors and windows and glass curtain walls. Addition: Production and operation of magnesium alloy, aluminum alloy automotive components, and magnesium alloy, aluminum alloy raised floor products. Production and operation of digital TV sets, computer peripherals, digital audio and video equipment and spare parts. After-sales service for self-produced products Production and operation of new electronic components, heat-dissipating components for new electronic, electrical and communicationproducts,hardware and

Company name	Date of incorporation	Address	Paid-in capital	Business scope
				plastic parts, materials specially for electronic components for insulation, heat dissipation, adhesive tape, electronic masking, buffering and protection. Automotive heat sinks, audio-visual equipment and related spare parts, motors and related spare parts, electronic and industrial aluminum profiles, new environmentally-friendly and energy-saving lamps, aluminum profiles for architectural decoration and aluminum alloy doors and windows and glass curtain walls. Addition: Production and operation of magnesium alloy, aluminum alloy automotive components, and magnesium alloy, aluminum alloy raised floor products. Production and operation of digital TV sets, computer peripherals, digital audio and video equipment and spare parts. After-sales service for self-producedproducts
Nanning Funing Precision Electronics Ltd.	09/10/2007	Bldg 67, No. 45, Tinghong Rd., Nanning City, Guangxi Province, 530031 China	US$9,800,000	Research, development, and production of new electronic components, portable microcomputers, high- end servers, computer peripherals, high-end routers, game consoles, digital cameras, digital audio/video codec devices, televisions, mobile communication devices, LED lamps, solar system and heat dissipation modules and related components of the above-mentioned products. Production of automotive heat sinks, hardware and plastic parts, new architectural materials, aluminum profiles for industrial and architectural decoration and glass curtain wall. Sales of self-produced products and after-sales services. Import and export of architectural materials (excluding steel), electronics and related products. Wholesale business and related services. Production, processing and operation of precision molds. Manufacture of plastic pellets. Property leasing. Labor dispatch services. (If merchandize subjects to quota, authorization and special management, proceed accordingto regulations of the law).
Hua-Zhun Investment Co., Ltd.	04/13/2004	8F-5, No. 1, Fuxing South Road, Section 1, Taipei City	NTD1,254,780,000	Investment

Company name	Date of incorporation	Address	Paid-in capital	Business scope
Qingdao Hygen Innovative Alloy Materials Co., Ltd	7/6/2006	Chen family port village, Ligezhuang Town, Jiaozhou City, Qingdao, Shandong Province, 266300, China	RMB70,000,000	R&D, production and sales of aluminum alloy profiles, rail vehicle accessories, auto parts and electronic components. Manufacture and sales of structural metal products, metal packaging containers (excluding electroplating), aluminum alloy profile grinding fluids, detergents, metal surface treatment additives (All above do not contain products that are restricted or prohibited from operating or hazardous chemical. Excluding storage of freezing, cold storage, refrigeration, of hazardous chemicals). Manufacturing, sales, wholesale and retail of products: Chemical products (The above do not contain products that are restricted or prohibited from operating or hazardous chemical. Excluding storage of freezing, cold storage, refrigeration, of hazardous chemicals), mechanical parts, hardware, lubricants, metal surface treatment (excluding electroplating). Import and export of Company’s products and technologies, and mechanical equipment, spare parts, raw and auxiliary materials and technologies required by the Company (excluding goods and technologies that the Company is restricted or prohibited from by the country.) (Pursuant to the law, only approved projects by the relevant regulatory bodies can commence operation.)
FuZhun Precision Industry (Shenyang) Co., Ltd.	1/10/2017	No. 50-2, Yingkesong 2nd Rd., Sujiatun District, Shenyang City, Liaoning Province, 110100 China	RMB72,770,000	Manufacture and sales of auto parts. Manufacture and sales of new alloy materials, precision molds, new electronic components, portable computers and components. Manufacture and sales of new architectural materials, new environmental-friendly and energy- saving lamps, metal display casings, aluminum alloy architectural profiles, construction doors and windows, building curtain wall, automobile, electronic related aluminum alloy parts. Manufacture, sales and installation of metal building materials. Manufacture and sales of barreled drinkingwater. Import and export of

Company name	Date of incorporation	Address	Paid-in capital	Business scope
				self-operated and agent commodities and technologies, excluding goods and technologies that the Company is restricted or prohibited from by the country. (Pursuant to the law, only approved projects by the relevant regulatorybodies can commence operation.)
Champ Tech Optical (Foshan) Corporation	3/16/2005	No. 35, Huabao N. Rd., Chengxi Industrial Zone, Chancheng District, Foshan City, Guangdong Province, 528000 China	RMB 346,601,200	Production and operation of new electronic products, computers, electrical appliances, communication products, network equipment and peripheral equipment and their spare parts, as well as special materials and automation equipment, control systems and spare parts for the above-mentioned products. New environmental- friendly and energy-saving lamps and control systems, LED display application products, intelligent access controllers, in-vehicle and indoor air purification equipment, wireless charging equipment, bathroom- master and ventilation systems, fly and mosquito-trap lamps, vanity mirror lamps and other smart home products and spare parts. Electronic cigarettes. Drones, projectors, cameras, video cameras and other related video recording products and spare parts. New printing devices and accessories. Product cleaning automation equipment and spare parts. Precision stamping dies, precision cavity molds, mold standard parts, jigs and spare parts. Maintenance service and installation of various types of optical lenses and Multi-dimensional glasses. R&D, testing, maintenance service and installation of self-produced products. Wholesale, retail import and export of electrical appliances, equipment, modular jigs, consumer electronics and spare parts (no stores, no handling of state managed products. Products engaging quota control delegated management are handled in accordance with relevant state regulations.) and testing and maintenance services. Design and sales and technical services of energy management projects. (The aforementioned projects are not subjected to Special Administrative Measures for the Access of

Company name	Date of incorporation	Address	Paid-in capital	Business scope
				Foreign Investment). (Pursuant to the law, only approved projects by the relevant regulatory bodies can commence operation.)

Shareholders in common of the Company and its affiliates with deemed control and subordination: None.
Business scope of the Company and its affiliated companies: The business scope of the Company and its affiliated companies includes manufacturing, processing and trading of related components of OEM for electronic system assembly and electronic products.

5. Information of the directors, supervisors, and presidents of the Company and its affiliates

Company name	Title	Name or Representative	Shareholding	Shareholding
			Number	Percentage of Shareholding
Foreign Technology Ltd.	Director	Lee Han-Ming	0	0%
HIGH TEMPO INTERNATIONAL LIMITED	Director	Lee Han-Ming	0	0%
Q-Run Far East Corporation	Director	Lee Han-Ming	0	0%
Q-RUN HOLDINGS LIMITED	Director	Lee Han-Ming	0	0%
Foxconn Technology Pte. Ltd.	Director	Lee Kuang-Yao/ Lee Han-Ming / Lee Hui-Fang	0	0%
Topfry Industrial Ltd.	Director	Lee Han-Ming	0	0%
World Trade Trading Limited	Director	Lee Han-Ming	0	0%
Atkinson Holdings Ltd.	Director	Lee Han-Ming	0	0%
Kenny International Ltd.	Director	Lee Han-Ming	0	0%
Double Wealth Profits Ltd.	Director	Lee Han-Ming	0	0%
Precious Star International LTD	Director	Lee Han-Ming	0	0%
Foxconn Precision Components Holding Company Limited	Director	Lee Han-Ming	0	0%
Gold Glory International Ltd.	Director	Lee Han-Ming	0	0%
Eastern Star Limited	Director	Lee Han-Ming	0	0%
FTC Technology Inc.	Director	Chien-Hua Wang	0	0%
FTP Technology Inc.	Director	Yun-Chu Tien	0	0%
New Glory Holdings Limited	Director	Lan Yuan-Wen	0	0%
	Chairman	Wen-Hsiung Chang	0	0%
Fuhuigun Industry (Shenzhen) Co., Ltd.	Director	Ping-Neng Chang	0	0%
	Director	Chung-Tai Cheng	0	0%
	Chairman	Chan-Ming Liu	0	0%
	Director	Chao-Chin Hu	0	0%
FuYu Precision Components (Kunshan) Co., Ltd.	Director	Ming-Hui Lin	0	0%
	Supervisor	Tsai-Jung Liu	0	0%

Company name	Title	Name or Representative	Shareholding	Shareholding
			Number	Percentage of Shareholding
	Chairman	Kao-Chung Chieh	0	0%
	Director	Yun-Chu Tien	0	0%
FuZhun Precision Industry (Shenzhen) Co., Ltd.	Director	Lee Xue-Kun	0	0%
	Supervisor	Pin-Yi Chen	0	0%
	Chairman	Chin-Cheng Tang	0	0%
	Director	Chen-Fu Lin	0	0%
FuZhun Precision Electronics (Hebi) Co., Ltd.	Director	Wu-Kuang Chen	0	0%
	Supervisor	Hsuan-Kai Huang	0	0%
	Chairman	Hung Chih-Chien	0	0%
	Director	Wu-Kuang Chen	0	0%
HongFuJin Precision Industrial (Taiyuan) Co., Ltd.	Director	Lee Xue-Kun	0	0%
	Supervisor	Chien-Min Wang	0	0%
	Chairman	Yung-Pin Lin	0	0%
	Director	Chiu-Jih Chang	0	0%
Nanning Funing Precision Electronics Ltd.	Director	Lee Xue-Kun	0	0%
	Supervisor	Yu-Yu Chen	0	0%
	Chairman	Ping-Lung Ou	0	0%
	Director	Chien-Ting Wang	0	0%
	Director	Chih-Chiang Wang	0	0%
Qingdao Hygen Innovative Alloy Materials Co., Ltd	Director	Chin-Hsiu Chen	0	0%
	Director	Chun-Chi Li	0	0%
	Supervisor	Tzu-Hung Li	0	0%
Hua-Zhun Investment Co., Ltd.	Chairman	Foxconn Technology Co., Ltd.	125,478,000	100%
	Representative	Lan Yuan-Wen	0	0%
	Supervisor	Foxconn Technology Co., Ltd.	125,478,000	100%
	Representative	Yu-Hua Huang	0	0%

Company name	Title	Name or Representative	Shareholding	Shareholding
			Number	Percentage of Shareholding
	President	Hsiao-Te Li	0	0%
	Director	Hsiao-Te Li	0	0%
Yantai FuZhun Precision Electronics Co., Ltd.	Director	Fu-Feng Tang	0	0%
	Supervisor	Chung-Tai Cheng	0	0%
	Chairman	Wen-Hsiung Chang	0	0%
	Director	Mo-Hsi Tu	0	0%
FuZhun Precision Industry (Shenyang) Co., Ltd.	Director	Te-He Chiu	0	0%
	Supervisor	Ching-Hsien Chang	0	0%
	Chairman	Chen-Tien Lai	0	0%
	Director	Yung-Pin Lin	0	0%
Champ Tech Optical (Foshan) Corporation	Director	Kao-Chung Chieh	0	0%
	Supervisor	Pin-Yi Chen	0	0%

6. The financial position and operation results of affiliated companies

	December 31,2020;Unit: NTD	December 31,2020;Unit: NTD	December 31,2020;Unit: NTD	December 31,2020;Unit: NTD	December 31,2020;Unit: NTD	December 31,2020;Unit: NTD	December 31,2020;Unit: NTD	December 31,2020;Unit: NTD
Company name	Paid-in capital	Total assets	Liability	Shareholders’ equity	Operating revenue	Operating profit	Net Income (after tax)	Earnings per share (after tax)
Atkinson Holdings Ltd.	992,214,720	12,017,899,292	0	12,017,899,292	0	0	532,099,965	NA
Double Wealth Profits Ltd.	56,960,000	5,352,165,147	0	5,352,165,147	0	0	346,050,801	NA
Eastern Star Limited	8,624,000,320	42,923,911,132	0	42,923,911,132	0	0	677,034,204	NA
Foreign Technology Ltd.	7,120,000	0	0	0	0	0	8,451	NA
Foxconn Precision Components Holdings Ltd.	3,868,713,033	15,966,878,762	0	15,966,878,762	0	0	533,231,848	NA
Foxconn Technology Pte. Ltd.	14,797,524,366	39,537,877,425	8,428,658,563	31,109,218,862	11,002,731,336	(17,629,175)	407,735,067	NA
FTC Technology Inc.	2,848,000	127,007,130	29,671,774	97,335,356	250,885,617	4,261,671	4,386,816	NA
FTP Technology Inc.	7,120,000	147,704,713	52,116,321	95,588,392	127,053,505	9,439,363	9,907,613	NA
Gold Glory International Ltd.	527,221,760	5,516,826,539	-	5,516,826,539	0	0	409,512,410	NA
High Tempo International Limited	0	1,717,491,669	798,498,060	918,993,609	0	37,026	(60,383,445)	NA
Kenny International Ltd.	193,464,640	1,623,622,215	-	1,623,622,215	0	0	120,669,168	NA
Precious Star International Ltd.	623,598,080	5,064,669,030	22,755,435	5,041,913,595	0	2,394	65,379,996	NA
New Glory Holdings Ltd., - HK	19,719,753,581	4,298,795,123	40,328	4,298,754,795	0	0	338,510,971	NA
Q-Run Far East Corporation	29,963,041,204	54,188,724,522	0	54,188,724,522	0	0	1,389,811,882	NA
Q-Run Holdings Limited	13,672,610,048	105,036,849,452	77,253,282	104,959,596,170	0	897,315	1,991,829,186	NA
Topfry Industrial Ltd.	213,600,000	463,311,188	0	463,311,188	0	0	25,460,841	NA
World Trade Trading Limited	1,085,088,000	977,007,568	0	977,007,568	0	0	(60,714,996)	NA
FuZhun Precision Industry (Shenzhen) Co., Ltd.	643,938,783	5,536,437,565	228,263,834	5,308,173,731	128,867,579	(8,094,250)	343,319,010	NA
FuYu Precision Components (Kunshan) Co.,Ltd.	1,692,279,017	9,901,246,977	2,809,589,771	7,091,657,206	4,105,385,194	212,640,572	530,177,058	NA
Fuhuigun Industry (Shenzhen) Co., Ltd.	270,178,967	494,019,394	30,707,298	463,312,096	0	(7,256,259)	25,460,854	NA

Company name	Paid-in capital	Total assets	Liability	Shareholders’ equity	Operating revenue	Operating profit	Net Income (after tax)	Earnings per share (after tax)
Hua-Zhun Investment Co., Ltd.	1,254,780,000	1,995,846,379	0	1,995,846,379	0	(101,085)	12,150,328	NA
HongFuJin Precision Industrial (Taiyuan) Co.,Ltd.	12,995,868,196	53,372,936,150	12,622,596,352	40,750,339,798	14,339,001,193	(946,944,134)	528,515,997	NA
Nanning Funing Precision Electronics Ltd.	315,718,777	4,194,391,026	1,041,709,524	3,152,681,502	2,680,279,913	279,436,960	342,087,594	NA
Yantai FuZhun Precision Electronics Co., Ltd.	1,103,886,092	1,502,970,838	860,032,816	642,938,022	1,082,001,534	(32,536,953)	(3,724,704)	NA
Qingdao Hygen Innovative Alloy Materials Co.,Ltd	304,822,000	595,166,209	902,321,173	(307,154,964)	0	(65,104,110)	(103,441,878)	NA
FuZhun Precision Electronics (Hebi) Co., Ltd.	3,966,639,367	8,282,844,184	1,068,881,566	7,213,962,618	1,719,838,694	(220,656,770)	213,896,360	NA
FuZhun Precision Industry (Shenyang) Co.,Ltd.	316,884,242	506,335,827	293,970,241	212,365,586	373,398,073	51,057,922	45,633,014	NA
Champ Tech Optical (Foshan) Corporation	1,509,310,204	6,882,992,155	3,431,868,843	3,451,123,312	7,538,466,691	428,992,180	513,924,330	NA

(II) Consolidated financial statements of affiliated enterprises

Declaration of consolidated financial statements of affiliated enterprises (2020 Q4 Consolidated financial statements P4)

(III) Business reports of affiliated enterprises: None.

II. Private Placement of Securities in the Most Recent Year Up Till the Printing Date of This Annual Report: None.
III. Holding or Disposal of the Company's Shares by Subsidiaries in the Last Financial Year, Up Till the Printing Date of this Annual Report: None.
IV. Other Supplementary Information: None.

Nine. Matters Affecting Shareholders’ Equity Stock Price: None.

Foxconn Technology Co., Ltd.

Representative: Lee Kuang-Yao

AI assistant

FTC — Annual Report 2020

52024_rns_2021-11-05_bd6b09ac-8e13-4a70-88aa-2d1403fd0def.pdf

Foxconn Technology Co., Ltd.

2020

Print date: April 30, 2021

I. Company’s Spokesperson:

III. Shareholders’ Services:

V. Overseas Securities Exchange: None

Content

One. Letter to Shareholders

Dear Shareholders:

I. 2020 Operating Results

(II) Budget implementation:

(III) R&D status:

II. 2021Business Plan Highlights

(I) Operating guidelines

Two. Company Overview

I. Establishment date: April 26, 1990 Listing date: October 8, 1996

II. Organization and operations

Three. Corporate Governance

I. Organization of the Company

(I) Organization chart

(II) Department Function Description:

(IV) Major shareholders of institutional shareholders

(V) Principal shareholder of corporate shareholders with a juridical person as its major shareholder

(VI) Professional knowledge and independence check matrix of directors

(VII) Key Managers

(VIII) Remuneration paid to Directors, General Manager and Vice General Manager(s) in the most recent fiscal year 1. Compensation to Director or Independent Director

Remuneration bracket table

2. Remuneration paid to General Manager and Vice General Manager(s)

Remuneration bracket table

3. Employees’ profit sharing bonus paid to managerial officers:

II. Implementation of Corporate Governance

(I) Operations of the Board of Directors:

Evaluation Results:

(II) Operations of the Audit Committee:

(III) Discrepancies between Corporate Governance Best Practice Principles

for TWSE/TPEx Listed Companies and reasons for the discrepancies:

(IV) Organization, responsibilities and operation status of the Compensation

Committee:

1. Information on members of the Compensation Committee

2. Operations of the Compensation Committee

(V) Difference and the reason for such a difference between the fulfilment of

(VI) Difference and the reason for such a difference between the fulfilment of

Practice Principles for TWSE/GTSM Listed Companies:

(IX) Status of Implementation of Internal Control System

1. Statement of internal control system

Foxconn Technology Co., Ltd. Statement of Internal Controls

shareholders’ meeting on June 23, 2020:

2. Important resolutions by the Board of Directors in 2020 and as of April 30, 2021

III. Audit Fees

(I) Range of Audit Fees

IV. Change of auditors

VI. Share transfers and change in shares pledges by directors, managers and shareholders with at least 10% stakes

(I) Changes in Equity

VII. Relations among top ten shareholders:

Four. Fund Raising

I. Capital and Shares

(I) Capital and Shares

(II) Sources of Capital

(III) Information relevant to the aggregate reporting policy: None.

(IV) Shareholder Structure

(V) Shareholding Distribution Status

1. Distribution of common shares

(VI) List of major shareholders

(VII) Information on Market Price, Book Value, Earnings Per Share and Dividends

(VIII) Dividend Policy and Execution Status

1. Dividend policy:

2. Distribution of dividends

(XI) Share repurchases: None

II. Corporate Bonds

X. Implementation of Fund Utilization Plans:

Five. Operating Highlights

I. Business Activities:

(I) Business scope:

1. Major content of business activities

2. Operational proportion:

3. Current product items:

4. New products to be developed:

FTC Annual Report 2020