Getac — Annual Report 2020

Nov 12, 2020

GETAC TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2020 AND 2019

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

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GETAC TECHNOLOGY CORP.

DECEMBER 31, 2020 AND 2019 CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT TABLE OF CONTENTS

Contents Page

1.	Cover Page	1
2.	Table of Contents	2 ~ 3
3.	Declaration of Consolidated Financial Statements of Affiliated Enterprises	4
4.	Independent Auditors’ Report	5 ~ 10
5.	Consolidated Balance Sheets	11 ~ 12
6.	Consolidated Statements of Comprehensive Income	13 ~ 14
7.	Consolidated Statements of Changes in Equity	15
8.	Consolidated Statements of Cash Flows	16 ~ 17
9.	Notes to the Consolidated Financial Statements	18 ~ 103
	(1) HISTORY AND ORGANISATION	18
	(2) THE DATE OF AUTHORISATION FOR ISSUANCE OF THE	18
	CONSOLIDATED FINANCIAL STATEMENTS AND
	PROCEDURES FOR AUTHORISATION
	(3) APPLICATION OF NEW STANDARDS, AMENDMENTS AND	18 ~ 19
	INTERPRETATIONS
	(4) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	19 ~ 42

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Contents Page

(5)	CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND	42 ~ 43
	KEY SOURCES OF ASSUMPTION UNCERTAINTY
(6)	DETAILS OF SIGNIFICANT ACCOUNTS	43 ~ 83
(7)	RELATED PARTY TRANSACTIONS	84 ~ 89
(8)	PLEDGED ASSETS	89
(9)	SIGNIFICANT CONTINGENT LIABILITIES AND	89
	UNRECOGNISED CONTRACT COMMITMENTS
(10)	SIGNIFICANT DISASTER LOSS	89
(11)	SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE	89
(12)	OTHERS	89 ~ 99
(13)	SUPPLEMENTARY DISCLOSURES	100
(14)	SEGMENT INFORMATION	101 ~ 103

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GETAC TECHNOLOGY CORP. AND SUBSIDIARIES

Declaration of Consolidated Financial Statements of Affiliated Enterprises

In connection with the Consolidated Financial Statements of Affiliated Enterprises of Getac Technology Corp. (the “Consolidated FS of the Affiliates”), we represent to you that, the entities required to be included in the Consolidated FS of the Affiliates as of and for the year ended December 31, 2020 in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” are the same as those required to be included in the Consolidated Financial Statements of Getac Technology Corp. and its subsidiaries (the “Consolidated FS of the Group”) in accordance with International Financial Reporting Standard 10, as well as that, the information required to be disclosed in the Consolidated FS of Affiliates is disclosed in the Consolidated FS of the Group. Consequently, Getac Technology Corp. does not prepare a separate set of Consolidated FS of Affiliates.

Very truly yours,

GETAC TECHNOLOGY CORP.

By

Hwang, Ming-Hang, Chairman February 25, 2021

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR 20000332

To the Board of Directors and Stockholders of Getac Technology Corp.

Opinion

We have audited the accompanying consolidated balance sheets of Getac Technology Corp. and its subsidiaries (the “Group”) as at December 31, 2020 and 2019, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the report of other auditors, as described in the Other matter – Reference to audits of other auditors section of our report, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 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 (ROC GAAS); 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 (ROC GAAS) 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

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have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. 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.

The key audit matters in relation to the consolidated financial statements for the year ended December 31, 2020 are outlined as follows:

Evaluation of inventories

Description

Refer to Note 4(13) for the accounting policies on evaluation of inventories, Note 5(2) for the critical accounting estimates and assumptions on evaluation of inventories and Note 6(6) for the details of inventories.

The Group is engaged in the research, development, manufacture and sales of notebook computers, handheld equipment for military and industrial computer system, structure parts for electronic, automotive and home appliance industries, and aerospace fasteners. Due to the rapid technological innovations and market competition, there is a higher risk of inventory losses due to slow-moving inventory and obsolescence. As inventories are stated at the lower of cost and net realisable value, the determination of net realisable value of inventories is subject to subjective judgment and uncertainties. Thus, we considered the evaluation of inventories 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: Sampled and validated inventory line items from the inventory aging report and agreed quantities and amounts to inventory sub-ledger and examined the appropriateness of categorization within the inventory aging report; verified the classification of obsolete inventories; and sampled and validated the net realisable value of slow-moving and obsolete inventories against respective historical information for diminution in inventory value in order to ensure the reasonableness of provision for inventory loss.

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Recognition of sales revenue

Description

Refer to Note 4(31) for the accounting policies on recognition of sales revenue, and Note 6(26) for the details of operating revenue. Sales revenue is the main operating activity and relevant to the Group’s financial performance. The Group sells different kinds of products with various transaction terms, which require judgment in determining the timing of the transfer of control of goods. Thus, we considered recognition of sales revenue 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: Obtained an understanding of and evaluated internal controls over the recognition of sales revenue, and tested the operating effectiveness of related control activities; sampled and validated transaction terms, performance obligations, prices, orders, shipping documents and assessed appropriateness of amount and timing of revenue recognition; sampled transactions from a specific period of time prior to and after the balance sheet date; and validated respective transaction terms and shipping documents in order to ensure sales revenue are recognised in the proper period.

Other matter – Reference to audits of other auditors

We did not audit the financial statements of certain investments accounted for under the equity method for the years ended December 31, 2020 and 2019 which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these investees, is based solely on the reports of other auditors. The balances of related investments accounted for under the equity method was NT$628,896 thousand and NT$653,403 thousand, constituting 2% and 2% of the total consolidated assets as of December 31, 2020 and 2019, respectively, and comprehensive loss from these investments accounted for under the equity method amounted to (NT$26,801) thousand and (NT$193,818) thousand, constituting (1%) and (10%) of the total consolidated comprehensive income for the years then ended, respectively.

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion with other matter section on the parent company only financial statements of Getac Technology Corp. as at and for the years ended December 31, 2020 and 2019.

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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.

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 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 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 Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: 1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and

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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.

2.

3.

4.

5.

6.

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.

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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.

Cheng, Ya-Huei[Wen, Fang-Yu ]

For and on behalf of PricewaterhouseCoopers, Taiwan February 25, 2021

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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.

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GETAC TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Assets	Notes 6(1) 6(2) 6(4) 6(5) 6(5) 6(5) and 7 7 6(6) 6(3) 6(7) 6(8), 7 and 8 6(9) and 7 6(11) 6(12)(13) 6(34) 6(14)(19)	December 31, 2020 AMOUNT % $ 5,706,030 17 63,883 - 547,275 2 13,793 - 7,498,176 22 15,446 - 87,588 - 5,443,201 16 450,350 2 19,825,742 59 741,617 2 1,009,557 3 8,593,044 25 997,111 3 477,088 1 686,960 2 553,255 2 970,559 3 14,029,191 41 $ 33,854,933 100	December 31, 2019	December 31, 2019
		AMOUNT $ 5,706,030 63,883 547,275 13,793 7,498,176 15,446 87,588 5,443,201 450,350 19,825,742 741,617 1,009,557 8,593,044 997,111 477,088 686,960 553,255 970,559 14,029,191 $ 33,854,933	AMOUNT $ 5,492,175 3,955 1,023,992 4,516 6,262,898 92,618 58,768 5,140,640 482,178 18,561,740 651,745 936,227 7,251,930 1,039,929 588,265 737,021 441,871 398,867 12,045,855 $ 30,607,595	%
Current Assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Current financial assets at amortised cost, net 1150 Notes receivable - net 1170 Accounts receivable - net 1180 Accounts receivable - related parties 1200 Other receivables 130X Inventories - net 1410 Prepayments 11XX Total current assets Non-current assets 1517 Financial assets at fair value through other comprehensive income - non- current 1550 Investments accounted for under the equity method 1600 Property, plant and equipment - net 1755 Right-of-use assets 1760 Investment property - net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX TOTAL ASSETS				18 - 3 - 21 - - 17 2
				61
				2 3 24 3 2 2 2 1
				39
				100

(Continued)

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GETAC TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Liabilities and Equity

December 31, 2020 December 31, 2019 Notes AMOUNT % AMOUNT % 6(15) $ 406,768 1 $ 558,406 2 6(16) 6,930 - 4,122 - 6(26) and 7 524,360 2 461,139 2 70 - 2,714 - 5,875,209 17 4,411,487 14 7 47,292 - 48,081 - 6(17) and 7 3,158,133 9 3,105,930 10 6(34) 604,618 2 335,583 1 6(21) 189,244 1 216,764 1 134,279 - 141,765 - 6(18) 180,318 1 222,516 1 492,750 2 804,525 3 115,950 - 28,449 - 11,735,921 35 10,341,481 34 6(26) 744,519 2 570,698 2 6(18) 1,931,865 6 1,850,373 6 6(21) 490,761 1 414,784 1 6(34) 75,834 - - - 6(34) 187,460 1 170,076 1 476,082 1 388,052 1 6(19) 219,196 1 199,391 1 4,125,717 12 3,593,374 12 15,861,638 47 13,934,855 46 6(22) 5,892,477 18 5,830,022 19 6(23) 3,264,236 9 3,083,657 10 6(24) 1,952,202 6 1,739,599 6 741,623 2 412,996 1 5,076,740 15 4,652,080 15 6(25) ( 682,231) ( 2) ( 741,624) ( 2 ) 16,245,047 48 14,976,730 49 1,748,248 5 1,696,010 5 17,993,295 53 16,672,740 54 9 $ 33,854,933 100 $ 30,607,595 100

Current liabilities 2100 Short-term borrowings 2120 Financial liabilities at fair value through profit or loss - current 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2230 Current income tax liabilities 2250 Provisions for liabilities - current 2280 Lease liabilities - current 2320 Long-term borrowings, current portion 2365 Refund liabilities - current 2399 Other current liabilities, others 21XX Total current liabilities Non-current liabilities 2527 Contract liabilities - non-current 2540 Long-term borrowings 2550 Provisions for liabilities - non-current 2560 Current tax liabilities - non-current 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of the parent Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity 3400 Other equity interest 31XX Total equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Significant Contingent Liabilities and Unrecognised Contract Commitments 3X2X TOTAL LIABILITIES AND EQUITY

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

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GETAC TECHNOLOGY CORP. 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)

Items

Year ended December 31 2020 2019 Notes AMOUNT % AMOUNT % 6(26) and 7 $ 27,837,743 100 $ 26,952,910 100 6(6)(32)(33) ( 20,060,915) ( 72) ( 19,311,825) ( 72) 7,776,828 28 7,641,085 28 6(32)(33) ( 1,882,897) ( 7) ( 2,022,318) ( 7) ( 1,538,631) ( 5) ( 1,407,365) ( 5) ( 1,293,643) ( 5) ( 1,287,905) ( 5) ( 4,715,171) ( 17) ( 4,717,588) ( 17) 6(11)(27) 54,124 - 52,319 - 3,115,781 11 2,975,816 11 6(28) 54,272 - 70,214 - 6(29) 165,632 1 100,916 1 6(30) ( 23,365) - 18,409 - 6(31) ( 47,212) - ( 42,208) - 6(7) ( 24,168) - ( 175,772) ( 1) 125,159 1 ( 28,441) - 3,240,940 12 2,947,375 11 6(34) ( 572,147) ( 2) ( 577,447) ( 2) $ 2,668,793 10 $ 2,369,928 9

4000 Operating Revenues 5000 Operating Costs 5900 Gross Profit Operating Expenses 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6500 Other income and expenses - net 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of losses of associates and joint ventures accounted for under the equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year

(Continued)

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GETAC TECHNOLOGY CORP. 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)

Items

Year ended December 31 2020 2019 Notes AMOUNT % AMOUNT % ($ 2,594) - ($ 11,023) - 6(3) 87,613 - 90,549 - 6(7) 116,074 1 ( 4,185) - 711 - 1,737 - 201,804 1 77,078 - 6(25) ( 101,222) ( 1) ( 454,524) ( 2) 6(7) ( 5,462) - ( 12,689) - 6(34) - - 4,397 - ( 106,684) ( 1) ( 462,816) ( 2) $ 95,120 - ($ 385,738) ( 2) $ 2,763,913 10 $ 1,984,190 7 $ 2,577,039 10 $ 2,129,188 8 $ 91,754 - $ 240,740 1 $ 2,658,162 10 $ 1,777,895 6 $ 105,751 - $ 206,295 1 6(35) $ 4.40 $ 3.67 6(35) $ 4.31 $ 3.59

Other comprehensive income (net) Items that will not be reclassified subsequently to profit or loss 8311 Remeasurement of defined benefit obligations 8316 Unrealised value gain on equity instrument at fair value through comprehensive income 8320 Share of other comprehensive gain (loss) of associates and joint ventures 8349 Income tax benefit related to items that will not be reclassified subsequently 8310 Other comprehensive income that will not be reclassified to profit or loss Items that may be reclassified subsequently to profit or loss 8361 Exchange differences arising on translation of foreign operations 8370 Share of other comprehensive loss of associates and joint ventures 8399 Income tax benefit related to items that may be reclassified subsequently 8360 Other comprehensive loss that may be reclassified to profit or loss 8300 Other comprehensive income (loss) for the year, net of tax 8500 Total comprehensive income for the year Profit attributable to: 8610 Owners of the parent 8620 Non-controlling interest Total comprehensive income attributable to: 8710 Owners of the parent 8720 Non-controlling interest Basic earnings per share 9750 Net income attributable to owners of the parent Diluted earnings per share 9850 Net income attributable to owners of the parent

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

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GETAC TECHNOLOGY CORP. AND SUBSIDIARIES CONSOLIDATED 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 Retrospective application and effect of retrospective restatement Balance at January 1 after adjustments Net income for the year Other comprehensive (loss) income for the year Total comprehensive income (loss) Appropriations of 2018 earnings Legal reserve Special reserve Cash dividends Exercise of employee stock options Change in associates and joint ventures accounted for under equity method Compensation cost of share-based payment Cash dividends paid to non-controlling interest Balance at December 31, 2019 Year ended December 31, 2020 Balance at January 1, 2020 Net income for the year Other comprehensive (loss) income for the year Total comprehensive income (loss) Appropriations of 2019 earnings Legal reserve Special reserve Cash dividends Exercise of employee stock options Change in associates and joint ventures accounted for under the equity method Compensation cost of share-based payment Cash dividends paid to non-controlling interest Balance at December 31, 2020	Notes						Equityattributable to	Equityattributable to	Equityattributable to	Equityattributable to	owners of theparen	t							Non-controlling interest		Total equity
			Common stock		Capital surplus			Retained earnings					Other equityinterest				Total
							Legal reserve	Special reserve			Unappropriated retained earnings		Currency translation differences		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(25) 6(24) 6(20)(22) 6(23)(25) 6(20) 6(25) 6(24) 6(20)(22) 6(23)(25) 6(20)		$ 5,791,652 - 5,791,652 - - - - - - 38,370 - - - $ 5,830,022 $ 5,830,022 - - - - - - 62,455 - - - $ 5,892,477		$ 2,938,630 - 2,938,630 - - - - - - 79,819 1,945 63,263 - $ 3,083,657 $ 3,083,657 - - - - - - 140,617 1,637 38,325 - $ 3,264,236		$ 1,518,353 - 1,518,353 - - - 221,246 - - - - - - $ 1,739,599 $ 1,739,599 - - - 212,603 - - - - - - $ 1,952,202		$ 318,032 - 318,032 - - - - 94,964 - - - - - $ 412,996 $ 412,996 - - - - 328,627 - - - - - $ 741,623		$ 4,579,845 ( 153 ) 4,579,692 2,129,188 ( 7,683 ) 2,121,505 ( 221,246 ) ( 94,964 ) ( 1,737,585 ) - 4,678 - - $ 4,652,080 $ 4,652,080 2,577,039 ( 2,299 ) 2,574,740 ( 212,603 ) ( 328,627 ) ( 1,632,879 ) - 24,029 - - $ 5,076,740		($ 185,478 ) - ( 185,478 ) - ( 429,795 ) ( 429,795 ) - - - - - - - ($ 615,273 ) ($ 615,273 ) - ( 120,096 ) ( 120,096 ) - - - - - - - ($ 735,369 )		( $ 207,858 ) - ( 207,858 ) - 86,185 86,185 - - - - ( 4,678 ) - - ( $ 126,351 ) ( $ 126,351 ) - 203,518 203,518 - - - - ( 24,029 ) - - $ 53,138		$ 14,753,176 ( 153 ) 14,753,023 2,129,188 ( 351,293 ) 1,777,895 - - ( 1,737,585 ) 118,189 1,945 63,263 - $ 14,976,730 $ 14,976,730 2,577,039 81,123 2,658,162 - - ( 1,632,879 ) 203,072 1,637 38,325 - $ 16,245,047		$ 1,568,865 - 1,568,865 240,740 ( 34,445 ) 206,295 - - - - - 1,022 ( 80,172 ) $ 1,696,010 $ 1,696,010 91,754 13,997 105,751 - - - - - 32,107 ( 85,620 ) $ 1,748,248		$ 16,322,041 ( 153 ) 16,321,888 2,369,928 ( 385,738 ) 1,984,190 - - ( 1,737,585 ) 118,189 1,945 64,285 ( 80,172 ) $ 16,672,740 $ 16,672,740 2,668,793 95,120 2,763,913 - - ( 1,632,879 ) 203,072 1,637 70,432 ( 85,620 ) $ 17,993,295

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

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GETAC TECHNOLOGY CORP. 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 Adjustments to reconcile profit (loss) Reversal of expected credit loss Depreciation Amortization on intangible assets (Gain) loss on valuation of financial assets and liabilities at fair value through profit and loss Interest expense Interest income Dividend income Gain on disposal of property, plant and equipment Gain on modification of lease contract Share of loss of associates and joint ventures accounted for under the equity method Compensation cost of share-based payment Changes in operating assets and liabilities Changes in operating assets Notes receivable - net Accounts receivable Accounts receivable - related parties Other receivables Inventories Prepayments Other non-current assets Changes in operating liabilities Contract liabilities Notes payable Accounts payable Accounts payable - related parties Other payables Provisions for liabilities Refund liabilities Other current liabilities Other non-current liabilities Cash inflow generated from operations Interest paid Interest received Dividends received Income tax paid Net cash flows from operating activities

YearendedDecember 31 Notes 2020 2019 $ 3,240,940 $ 2,947,375 ( 2,036 ) ( 1,320 ) 6(8)(9)(11)(32) 1,118,259 1,046,491 6(12)(32) 38,414 40,465 6(2)(16)(30) ( 58,273 ) 1,338 6(31) 47,212 42,208 6(28) ( 54,272 ) ( 70,214 ) 6(29) ( 13,601 ) ( 16,593 ) 6(8)(30) ( 19,374 ) ( 10,958 ) ( 333 ) - 6(7) 24,168 175,772 6(20) 70,432 64,285 ( 9,277 ) ( 2,905 ) ( 1,234,674 ) ( 963,418 ) 78,604 ( 73,568 ) ( 31,539 ) 253,757 ( 302,561 ) ( 326,294 ) 84,324 ( 138,564 ) ( 5,289 ) 39,310 237,042 147,083 ( 2,644 ) ( 285 ) 1,463,722 265,491 ( 789 ) ( 11,575 ) 36,123 44,705 48,457 24,985 ( 311,775 ) 533,651 87,501 38,786 6,603 6,196 4,535,364 4,056,204 ( 52,568 ) ( 47,817 ) 56,991 69,325 25,745 65,135 ( 373,773 ) ( 658,338 ) 4,191,759 3,484,509

(Continued)

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GETAC TECHNOLOGY CORP. 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 Acquisition of financial assets measured at amortized cost-current Proceeds from disposal of financial assets measured at amortized cost-current Acquisition of financial assets at fair value through other comprehensive income Proceeds from capital return of financial assets measured at cost Increase in long-term investments accounted for under the equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Increase in refundable deposits Decrease in financial assets measured at amortized cost- non-current Increase in financial assets measured at amortized cost- non-current Increase in other financial assets - non-current Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES (Decrease) increase in short-term borrowings Increase in long-term borrowings Repayment of long-term borrowings Increase (decrease) in deposits received Repayment of lease liabilities Proceeds from exercise of employee stock options Cash dividends paid Cash dividends paid to non-controlling interest Net cash flows used in financing activities Effects of changes in foreign exchange rates Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2020 2019 $ - ($ 32,417 ) 476,717 - ( 17,087 ) ( 49,952 ) 4,216 9,031 - ( 11,850 ) 6(36) and 7 ( 1,914,142 ) ( 1,495,664 ) 48,155 33,354 6(12) ( 12,717 ) ( 38,009 ) 6(14) ( 1,348 ) ( 7,236 ) - 18,531 ( 9,968 ) - ( 737,586 ) - ( 2,163,760 ) ( 1,574,212 ) 6(37) ( 151,638 ) 446,986 6(37) 502,295 403,330 6(37) ( 463,001 ) ( 455,808 ) 10,607 ( 2,196 ) 6(9) ( 152,387 ) ( 114,087 ) 203,072 118,189 ( 1,632,879 ) ( 1,737,585 ) ( 85,620 ) ( 80,172 ) ( 1,769,551 ) ( 1,421,343 ) ( 44,593 ) ( 177,360 ) 213,855 311,594 6(1) 5,492,175 5,180,581 6(1) $ 5,706,030 $ 5,492,175

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

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E9 GETAC TECHNOLOGY CORP. 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 ORGANISATION

Getac Technology Corp. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the research, development, manufacture and sales of notebook computers, hardware, software for military and industrial computer system, structure parts or mold, and aerospace fasteners.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised for issuance by the Board of Directors on February 25, 2021.

3. 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:

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

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follows:

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

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:

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Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

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’	January 1, 2022
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
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 non-	January 1, 2023
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:proceeds before	January 1, 2022
intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

The above standards and interpretations have no significant impact to 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 Accounting Standard 34, ‘Interim financial reporting’ as endorsed by the FSC.

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(2)Basis of preparation

• A. Except for the following items, these 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 recognised 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 critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement 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 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 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 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 recognised 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. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other

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comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary Main Business Activities Pacific Royale Ltd. Investment holdings Getac Corporation (Formerly Fong Yang Technology Corporation) Data management, info software, e-communication product wholesale and retail Hot Link Technology Ltd. Investment holdings Mitac Precision Technology Corporation Electronic equipment and mold related wholesale and retail Fong Guan Investment Ltd. Investment holdings National Aerospace Fasteners Corporation Manufacturing, processing, agency and sale of aerospace fasteners and structure parts for airplane and ship use WHP Workflow Solutions, Inc. Software design and development		December 31,2020 December 31,2019 Ownership (%)	December 31,2020 December 31,2019 Ownership (%)	Description
			December 31,2020
Getac Technology Corp. 〞 〞 〞 〞 〞 〞			100 100 100 100 100 39.09 80.30	100 100 100 100 100 39.09 80.30	Note 2 Note 1

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Name of Investor Name of Subsidiary Main Business Activities Pacific Royale Ltd. Getac Inc. Selling, providing technical service, repair and maintenance of computers and related products for military and industrial use 〞 Integration Technology Ltd. Investment holdings 〞 Victory Star Developments Ltd. Investment holdings 〞 Talent View Ltd. Investment holdings 〞 Running Power Ltd. Investment holdings 〞 Getac (UK) Ltd. Sales and repair of computers and related products 〞 Getac Technology GmbH Sales of computers and related products 〞 WHP Workflow Solutions, Inc. Software design and development Pacific Royale Ltd. and its subsidiaries Getac Technology (Kunshan) Co., Ltd. Manufacture and sales of notebooks and related products 〞 Fon Yang Logistic (Kunshan) Ltd. Agency of domestic/foreign freight transport and import/export declaration and import/export trade	December 31,2020 December 31,2019 Ownership (%) 0 100 100 100 100 100 100 100 100 100 0 100 0 100 19.70 19.70 100 100 100 100	Description
		Note 3 Note 3 Note 3

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Name of Investor Name of Subsidiary Main Business Activities Pacific Royale Ltd. and its subsidiaries Getac (SuZhou) Mobile Ltd. Sales and repair of computers and its peripherals, commercial portable global positioning system, electronic parts, mold production equipment and office equipment, commission agent and import/export trade 〞 Getac Video Solutions Inc. Sales of smart mobile surveillance solution (including device hardware, software, cloud technologies and consulting services) Getac Corporation (Formerly Fong Yang Technology Corporation) Getac Inc. Selling, providing technical service, repair and maintenance of computers and related products for military and industrial use 〞 Getac (UK) Ltd. Sales and repair of computers and related products 〞 Getac Technology GmbH Sales of computers and related products	December 31,2020 December 31,2019 Ownership (%) 0 100 0 100 100 0 100 0 100 0	Description
		Note 3 Note 3 Note 3 Note 3 Note 3

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Name of Investor Name of Subsidiary Main Business Activities Getac Corporation (Formerly Fong Yang Technology Corporation) Getac (SuZhou) Mobile Ltd. Sales and repair of computers and its peripherals, commercial portable global positioning system, electronic parts, mold production equipment and office equipment, commission agent and import/export trade 〞 Getac Video Solutions Inc. Sales of smart mobile surveillance solution (including device hardware, software, cloud technologies and consulting services) Hot Link Technology Ltd. Master China Ltd. Investment holdings 〞 Pacific Metal Developments Ltd. Investment holdings and trading Mainpower International Ltd. Investment holdings ACE Continental Industries Ltd. Investment holdings and trading Bellingham Investments Ltd. Investment holdings 〞 Getac Precision Technologies (Hong Kong) Limited Investment holdings 〞 Mitac Technology Kyoto Corporation Import/export electronic products, provide technical consulting maintenance, and repair services	December 31,2020 December 31,2019 Ownership (%) 100 0 100 0 100 100 100 100 86.72 86.72 100 100 100 100 100 100 100 100	Description
		Note 3 Note 3 Combined ownership

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Name of Investor Name of Subsidiary Main Business Activities Hot Link Technology Ltd. Mitac Precision Developments Ltd. Investment holdings and trading 〞 Mass Bridge Ltd. Investment holdings 〞 Mitac Precision Developments (HK) Limited Investment holdings and trading Hot Link Technology Ltd. and its subsidiaries Mitac Precision Technology (Kunshan) Co., Ltd. Design and manufacture of computer chassis and its components, precision plastic injection mold, molding parts and molding equipment processing sales, and maintenance and repair services of own products 〞 SuZhou Mitac Precision Technology Co., Ltd. Design and manufacture of computer chassis and its components, precision plastic injection mold, molding parts, stamping parts, molding equipment processing, design and repair services, and steel plate i 〞 Mitac Precision Technology Vietnam Co., Ltd. Manufacturing of printer and its components, DVD, cell phone, digital camera, PCB etc.	December 31,2020 December 31,2019 Ownership (%) 100 100 0 100 100 0 100 100 72.56 72.56 100 100	Description
		Note 4 Newly established Combined ownership

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Name of Investor Name of Subsidiary Main Business Activities Hot Link Technology Ltd. and its subsidiaries Mitac Precision Technology (Shunde) Ltd. Design and manufacture of computer chassis and its components, precision plastic injection mold, molding parts, stamping parts and molding equipment processing, design and repair services and steel plate cutting, etc 〞 Getac Precision Technology (Changshu) Co., Ltd. Manufacturing of magnesium alloy 〞 Mitac Precision Technology (HANOI) Co., Ltd. Manufacturing of printer and related products 〞 Getac Precision Technology Vietnam Co., Ltd. Manufacturing of personal computers, communication equipment, automobile electronic devices, precision punching dies, casting/forging raw parts for automobiles and motorcycles, and magnesium alloy castings 〞 Mass Bridge Ltd. Investment holdings	December 31,2020 December 31,2019 Ownership (%) 100 100 100 100 100 100 100 100 100 0	Description
		Note 4

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Name of Investor Name of Subsidiary Main Business Activities National Aerospace Fasteners Corporation Nafco Group Ltd. Investment holdings Nafco Group Ltd. Nafco Holdings Investment holdings Nafco Holdings Ltd. Suzhou Nafco Precision Ltd. Production of components for airplane and engine use	December 31,2020 December 31,2019 Ownership (%) 100 100 100 100 100 100	Description

• Note 1: National Aerospace Fasteners Corporation was included in the consolidated financial statements as the Group has substantial control over it.

• Note 2: Fong Yang Technology Corporation was renamed to Getac Corporation during the year ended December 31, 2020.

• Note 3: After the reorganisation in the second quarter of 2020, Getac Corporation held 100% shares of Getac Inc., Getac (UK) Ltd., and Getac Technology GmbH which were originally held by Pacific Royale Ltd. ； of Getac (SuZhou) Mobile Ltd. which was originally held by Integration Technology Ltd ； and of Getac Video Solutions Inc. which was originally held by Running Power Ltd.

• Note 4: After the reorganisation in the third quarter of 2020, Getac Precision Technologies (Hong Kong) Limited held 100% shares of Mass Bridge Ltd. which was originally held by Hot Link Techonolgy Ltd.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Restricted ability to transfer funds from subsidiaries to parent company: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group: As of December 31, 2020 and 2019, the non-controlling interest amounted to $1,748,248 and $1,696,010, respectively. The information on non-controlling interest and respective subsidiaries is as follows:

is as follows:
Name of subsidiary	Principal place of business		Non-controllinginterest
		December	31,2020	December	31,2019
		Amount	Ownership (%)	Amount	Ownership (%)
Mainpower International Ltd. SuZhou Mitac Precision Technology Co., Ltd. National Aerospace Fasteners Corporation	British Virgin Islands China Taiwan	$ 240,214 353,343 1,154,691	13.28% 16.33% (Note) 60.91%	$ 213,902 314,689 1,167,419	13.28% 16.33% (Note) 60.91%

Note: Mainpower International Ltd. owned shares of SuZhou Mitac Precision Technology Co.,

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Ltd. as of December 31, 2020 and 2019, with a shareholding ratio of 83.67% for both years. The remaining of shares were non-controlling interests.

Summarised financial information of the subsidiaries:

Balance sheets

Balance sheets
			Mainpower International Ltd.
		December 31,2020		December 31,2019
Current assets	$		420	$	441
Non-current assets			1,810,422		1,612,371
Current liabilities			-		-
Non-current liabilities	(		2,000)	(	2,105)
Total net assets	$		1,808,842	$	1,610,707
	SuZhou Mitac Precision TechnologyCo.,Ltd.
		December 31,2020		December 31, 2019
Current assets	$		2,811,995	$	1,710,072
Non-current assets			1,324,275		1,179,878
Current liabilities	(		1,928,048)	(	941,764)
Non-current liabilities	(		44,456)	(	21,125)
Total net assets	$		2,163,766	$	1,927,061
			National Aerospace Fasteners Corporation
		December 31,2020		December 31, 2019
Current assets	$		974,814	$	1,447,070
Non-current assets			3,415,476		3,535,478
Current liabilities	(		528,662)	(	1,133,102)
Non-current liabilities	(		1,988,479)	(	1,934,144)
Total net assets	$		1,873,149	$	1,915,302

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Statements of comprehensive income

Statements of comprehensive income
		Mainpower International		Ltd.
		Years ended	December 31,
		2020		2019
Revenue	$	-	$	-
Profit before income tax		168,645		81,640
Income tax expense		-		-
Profit for the year from continuing
operations		168,645		81,640
Loss from discontinued operations		-		-
Profit for the year		168,645		81,640
Other comprehensive income (loss), net of tax		29,490	(	69,255)
Total comprehensive income for the year	$	198,135	$	12,385
Comprehensive income attributable to
non-controlling interest	$	26,312	$	1,924
Dividends paid to non-controlling interest	$	-	$	-
Statements of comprehensive income
	SuZhou	Mitac Precision TechnologyCo.,Ltd.
		Years ended	December 31,
		2020		2019
Revenue	$	3,952,008	$	2,366,521
Profit before income tax		239,325		119,563
Income tax expense	(	37,766)	(	22,001)
Profit for the year from continuing
operations		201,559		97,562
Loss from discontinued operations		-		-
Profit for the year		201,559		97,562
Other comprehensive income (loss), net of tax		35,146	(	80,294)
Total comprehensive income for the year	$	236,705	$	17,268
Comprehensive income attributable to
non-controlling interest	$	38,654	$	2,820
Dividends paid to non-controlling interest	$	-	$	-

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Statements of comprehensive income

National Aerospace Fasteners Corporation

Revenue

Profit before income tax

Income tax benefit (expense) Profit for the year from continuing operations Loss from discontinued operations Profit for the year

Other comprehensive income (loss), net of tax Total comprehensive income for the year Comprehensive income attributable to non-controlling interest Dividends paid to non-controlling interest

Statements of cash flows

Net cash used in operating activities Effect of exchange rates on cash and cash equivalents Decrease in cash and cash equivalents

Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year

Net cash provided by operating activities Net cash used in investing activities Net cash (used in) provided by financing activities Effect of exchange rates on cash and cash equivalents Increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year

	Years ended	December	31,
	2020	2019
$	1,704,031	$	2,816,190
	51,066		457,838
	8,766	(	107,014)
	59,832		350,824
	-		-
	59,832		350,824
	7,127	(	19,925)
$	66,959	$	330,899
$	40,785	$	201,551
($	85,620)	($	80,172)
	Mainpower International		Ltd.
	Years ended	December	31,
	2020	2019
($	105)	($	136)
	83		127
(	22)	(	9)
	440		449
$	418	$	440
SuZhou	Mitac Precision TechnologyCo.,Ltd.
	Years ended	December	31,
	2020	2019
$	236,688	$	80,579
(	159,845)	(	65,542)
(	492)		1,127
	15,688	(	32,465)
	92,039	(	16,301)
	188,473		204,774
$	280,512	$	188,473

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		National Aerospace Fasteners	National Aerospace Fasteners	Corporation
		Years ended	December 31,
		2020		2019
Net cash provided by operating activities	$	526,410	$	528,724
Net cash used in investing activities	(	174,907)	(	462,637)
Net cash used in financing activities	(	340,654)	(	79,409)
Effect of exchange rates on cash and cash
equivalents		301	(	20,329)
Increase (decrease) in cash and cash equivalents		11,150	(	33,651)
Cash and cash equivalents, beginning of year		124,359		158,010
Cash and cash equivalents, end of year	$	135,509	$	124,359

(4)Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). 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 recognised in profit or loss in the period in which they arise.

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

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

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

• B. Translation of foreign operations

• (a)The operating results and financial position of all the group entities and associates 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 spot exchange rate

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prevailing 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 recognised 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 when the Group still retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, or losing joint control of the former jointly controlled entity, 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 when 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 realised, or are intended to be sold or consumed within the normal operating cycle;

  • (b) Assets held mainly for trading purposes;

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

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

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

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

  • (b) Liabilities arising mainly from trading activities;

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

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

The Group classifies all liabilities that do not meet the above criteria as non-current liabilities.

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(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 that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents. Time deposits with maturity period over three months not meeting the definition of cash equivalents are classified as financial assets at amortised cost.

(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 amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Group recognises 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 recognise 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 recognised and derecognised 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 recognised 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 recognised 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 recognised in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified

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from equity to profit or loss.

(9)Financial assets at amortised cost

• A. Financial assets at amortised 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 amortised cost are recognised and derecognised using trade date accounting.

• 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 recognised in profit or loss when the asset is derecognised 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.

(11)Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income and financial assets at amortised cost , at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(12)Derecognition of financial assets

• The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(13)Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable 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 using the 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

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  - indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

• B. The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the 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 recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• 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 recognises change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership. The capital surplus was transferred proportionally to profit or loss when the associates are subsequently disposed.

• D. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the 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 recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• 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 recognised in profit or loss.

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

• (15)Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the

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construction period are capitalized.

• B. Subsequent costs are included in the asset’s carrying amount or recognised 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 derecognised. 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 balance sheet date. 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 of property, plant and equipment are as follows:

Buildings and structures Machinery and equipment Office equipment Other equipment

～ 3 years 55 years ～ 3 years 12 years ～ 3 years 10 years ～ 3 years 10 years

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

• A. Leases are recognised 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 recognised 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 the following:

• (a) Fixed payments, less any lease incentives receivable; and

• (b) Variable lease payments that depend on an index or a rate.

• The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised 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 amount of the initial measurement of lease liability.

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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 recognised 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 the difference between remeasured lease liability in profit or loss.

(17)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 10 ~ 50 years.

(18)Intangible assets

• A. Computer software

Computer software expenditures are stated at cost and amortized on a straight-line basis over its estimated useful life of 1 to 5 years.

• B. Goodwill

Goodwill arises in a business combination accounted for by applying the acquisition method.

• C. Special technology

Separately acquired special technology is stated at historical cost. Special technology acquired in a business combination are recognised at fair value at the acquisition date and amortised using the straight-line method over their estimated useful lives of 7 years.

• D. Patents

Patents are amortized on a straight-line basis over its estimated useful life of 3 to 5 years.

(19)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 recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognised.

• B. The recoverable amounts of goodwill, intangible assets with an indefinite useful life and intangible assets that have not yet been available for use shall be evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised 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

~37~

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.

(20)Borrowings

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

(21)Notes and accounts 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.

(22)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 categorised 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 recognised in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.

(23)Derecognition of financial liabilities

• A financial liability is derecognised when the obligation under the liability specified in the contract is discharged or cancelled or expires.

(24)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 recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(25)Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as interest expense. Provisions are not recognised for future operating losses.

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(26)Employee benefits

A. Short-term employee benefits

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

• B. Pensions

(a) Defined contribution plans

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

• (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 recognised 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 highquality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.

  • ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

  • iii. Past service costs are recognised immediately in profit or loss.

  • iv. Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

• C. Employees’ bonus and directors’ and supervisors’ remuneration Employees’ bonus and directors’ and supervisors’ remuneration are recognised as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. However, if the accrued amounts for employees’ bonus and directors’ and supervisors’ remuneration are different from the actual distributed amounts as resolved by the stockholders at their stockholders’ meeting subsequently, the differences should be recognised based on the accounting for changes in estimates.

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- (27)Employee share based payment

• For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and nonvesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

(28)Income tax

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

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company 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 income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred income 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 nor loss. Deferred income 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 income 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 income tax asset is realised or the deferred income tax liability is settled.

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

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

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Deferred income 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.

• F. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

• G. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised in profit or loss.

(29)Share capital

• Ordinary shares are classified as equity. The classification of preferred shares is determined according to the special rights attached to preferred shares based on the substance of the contract and the definition of financial liabilities and equity instruments. Preferred shares are classified as liabilities when they have the basic characteristics of financial liabilities; otherwise, they are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

• (30)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.

• (31)Revenue recognition

• A. Sales of goods

  • (a) The Group manufactures and sells notebook computers, hardware, and software for military and industrial computer systems, molds and aerospace fasteners products. Sales are recognised 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 sales is recognised based on the price specified in the contract, net of the estimated sales returns as well as sales discounts and allowances. A refund liability is recognised for expected sales discounts and allowances payable to customers in relation to

~41~

sales made until the end of the reporting period. The sales usually are made with a credit term of 5 months. The Group does not expect to have any contracts where the period between the transfer of the promised goods to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

• (c) The Group’s obligation to provide maintenance for faulty products under the standard warranty terms is recognised as a provision.

• (d) A receivable is recognised 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.

• B. Sales of services

The Group provides cloud storage and software computing as well as warranty extension service. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised on a straight-line basis during the service period. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

(32)Government grants

Government grants are recognised 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 recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate.

(33)Reorganisation

Under regulations of competent authority of the R.O.C, the reorganisation within the Group is recorded at the carrying value.

(34)Operating segments

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

1. 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. The information is addressed below:

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

None.

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(2) Critical accounting estimates and assumptions

Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable 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 realisable 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, the carrying amount of inventories was $5,443,201.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1)Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash on hand Checking accounts and demand deposits Time deposits Total	December 31,2020 980 $ 4,420,971 1,284,079 5,706,030 $	December 31,2019
		944 $ 3,502,447 1,988,784
		5,492,175 $

• A. The Group transacts 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 Group has no cash and cash equivalents pledged to others as collateral.

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

Financial assets at fair value through profit or loss
Current items: Financial assets mandatorily measured at fair value through profit or loss Non-hedging derivatives Valuation adjustment Total	December 31,2020 - $ - 63,883 63,883 $	December 31,2019
		- $
		- 3,955
		3,955 $

• A. The Group recognised net gain of $53,675 and $1,759 on financial assets mandatorily measured at fair value through profit or loss for the years ended December 31, 2020 and 2019, respectively.

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B. The non-hedging derivative instruments transaction and contract information are as follows:

		December 31,2020
		Contract	Terms
	Notional Amount
Item	(in thousands)	Strike Rate	Settlement Date
Sales of forward foreign	USD 22,000	28.237~28.69	2021.01.15~
exchange		(Note 1)	2021.03.22
〞	USD 37,000	6.5310~6.7332	2021.01.07~
		(Note 2)	2021.03.09
Purchases of forward foreign	CNY 198,358	6.6515~6.9035	2021.01.08~
exchange		(Note 3)	2021.02.26
Note 1: Advance booking USD to buy TWD.
Note 2: Advance booking USD to buy CNY.
Note 3: Advance booking CNY to sell USD.

Item Sales of forward foreign exchange	Notional Amount (in thousands)	December 31,2019 Contract Terms
		Strike Rate Settlement Date 7.0151~7.1669 (Note) 2020.01.09~ 2020.03.19
	CNY 70,623

Note : Advance booking CNY to sell USD.

The Group signed forward exchange in order to hedge foreign exchange risk from the prices of imports and exports; however, the Group did not apply hedge accounting.

C. The Group has no financial assets at fair value through profit or loss pledged to others as collateral.

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

	December	31,2020	December	31,2019
Items
Non-current items:
Equity instruments
Listed stocks	$	467,615	$	478,228
Unlisted stocks		286,335		275,525
		753,950		753,753
Valuation adjustments	(	12,333)	(	102,008)
Total	$	741,617	$	651,745

• A. Above equity instruments were held for medium and long-term investments, therefore they were classified as financial assets at fair value through other comprehensive income.

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• B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

==> picture [470 x 91] intentionally omitted <==

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

Years ended December 31,
2020 2019
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
$ 87,613 $ 90,549
comprehensive income
----- End of picture text -----

• C. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

(4)Financial assets at amortised cost

others as collateral. Financial assets at amortised cost
Items Current items: Time deposits-over 3 months	December 31,2020 547,275 $	December 31,2019
		1,023,992 $

• A. Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided in Note 8.

• B. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

(5)Notes and accounts receivable

Notes and accounts receivable
	December 31, 2020	December 31,2019
Notes receivable	13,793 $	$	4,516
Accounts receivable	7,511,136 $	$	6,276,463
Accounts receivable-related parties	15,446		94,049
Less: Allowance for uncollectible accounts	12,960) (	(	14,996)
	7,513,622 $	$	6,355,516

• A. The ageing analysis of accounts receivable and notes receivable that were past due but not impaired is as follows:

is as follows:
Not past due 1 to 90 days 91 to 180 days Over 180 days	Accounts receivable Notes receivable 7,297,179 $ 13,793 $ 227,951 - 1,334 - 118 - 7,526,582 $ 13,793 $ December 31,2020	December 31, 2019
	Accounts receivable 7,297,179 $ 227,951 1,334 118 7,526,582 $	Accounts receivable 6,044,360 $ 323,280 1,995 877 6,370,512 $	Notes receivable
			4,516 $ - - -
			4,516 $

The above ageing analysis was based on past due date.

• B. As of December 31, 2020 and 2019, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2019, the balance of receivables from contracts with customers amounted to $5,335,136.

• C. The Group does not hold any collateral as security.

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D. As at December 31, 2020 and 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes receivable were $13,793 and $4,516, and accounts receivable were $7,526,582 and $6,370,512, respectively.

• E. Information relating to credit risk is provided in Note 12(2).

(6)Inventories

$7,526,582 and $6,370,512, respectively. E. Information relating to credit risk is provided in Note 12(2). Inventories
December 31,2020 Raw materials 3,430,234 $ Work in process 400,045 Finished goods 1,403,669 In-transit inventories 209,253 Total 5,443,201 $	December 31,2019
	3,262,906 $ 438,645 1,244,489 194,600
	5,140,640 $

The cost of inventories recognised as expense for the year:

(7)	Investments accounted for under the equity method Cost of goods sold Loss on decline in market price and obsolete and slow-moving inventories Others Waffer Technology Corp. Lian Jie Investment Co., Ltd. Advanced Medical Design Lian Jie Investment Co., Ltd II. Harbinger Ruyi II Harbinger Ruyi	Years ended December 31,	Years ended December 31,
		2020 19,926,037 $ 106,465 28,413 20,060,915 $ December 31,2020 628,896 $ 168,252 55,592 64,317 73,647 18,853 1,009,557 $	2019
			19,087,972 $ 107,198 116,655
			19,311,825 $
			December 31,2019
			653,403 $ 109,415 63,516 50,399 39,501 19,993
			936,227 $

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A. Associates:

• (a) The basic information of the associates that are material to the Group is as follows:

	Principal
	place of	Shareholdingratio		Method of
Company name	business	December 31, 2020	December 31, 2019	measurement
Waffer Technology	Taiwan	35.74%	35.91%	Equity method
Corp.
Lian Jie Investment	Taiwan	49.98%	49.98%	Equity method
Co., Ltd.

• (b) The summarized financial information of the associates that are material to the Group is shown below:

Balance sheets

Balance sheets
		Waffer TechnologyCorp.
	December 31,2020		December 31,2019
Current assets	$	2,392,266	$	1,769,235
Non-current assets		2,067,586		2,101,902
Current liabilities	(	1,969,383)	(	1,918,615)
Non-current liabilities	(	112,868)	(	225,193)
Total net assets	$	2,377,601	$	1,727,329
Share in associate's net assets	$	850,388	$	620,356
Unrealised gain from Waffer Technology Corp.
sold land to the Company	(	254,539)		-
Goodwill		33,047		33,047
Carrying amount of the associate	$	628,896	$	653,403
		Lian Jie Investment Co.,Ltd.
	December 31,2020		December 31,2019
Current assets	$	8,988	$	5,963
Non-current assets		327,721		213,138
Current liabilities	(	80)	(	80)
Non-current liabilities		-		-
Total net assets	$	336,629	$	219,021
Share in associate's net assets	$	168,252	$	109,415
Goodwill		-		-
Carrying amount of the associate	$	168,252	$	109,415

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Statements of comprehensive income

Statements of comprehensive income
		Waffer TechnologyCorp.
		Years ended	December 31,
		2020		2019
Revenue	$	1,997,427	$	2,187,850
Profit (loss) for the year from
continuing operations	$	649,834	($	504,037)
Other comprehensive loss, net
of tax	(	14,768)	(	34,836)
Total comprehensive income (loss)	$	635,066	($	538,873)
Dividends received from associates	$	-	$	30,117
		Lian Jie Investment Co.,Ltd.
		Years ended	December 31,
		2020		2019
Revenue	$	5,702	$	4,560
Profit for the year from
continuing operations	$	5,565	$	4,469
Other comprehensive income (loss), net
of tax		115,984	(	4,062)
Total comprehensive income	$	121,549	$	407
Dividends received from associates	$	1,913	$	-

(c) The Group’s share of the operating results are summarized below:

As of December 31, 2020 and 2019, the carrying amount of the Group’s individually immaterial associates amounted to $212,409 and $173,409, respectively.

		Years ended	December 31,	December 31,
		2020		2019
(Loss) profit for the year from continuing operations	($	11,724)	$	8,811
Other comprehensive income (loss), net of
tax		104,949	(	14,621)
Total comprehensive income (loss)	$	93,225	($	5,810)

(d) The Group’s material associate, Waffer Technology Corp. has quoted market prices. As of December 31, 2020 and 2019, the fair value was $1,153,045 and $820,145, respectively.

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• (e) The Group is the single largest shareholder of Waffer Technology Corp. with a 35.74% equity interest. The Group has no current ability to direct the management decisions and operation strategy of Waffer Technology Corp. including strategical decision (such as financing, acquisition, personnel policies and dividend policy), only with the shares which were held by the Company and subsidiaries can not reach the statutory attendance rate of the shareholders' meeting, which indicates that the Group has no current ability to direct the relevant activities of Waffer Technology Corp. the Group has no control, but only has significant influence, over the investee.

• (f) On March 31, 2019, a deflagration accident occurred in the Group’s Mainland China subsidiary, Waffer Technology (Kunshan) Limited, of Waffer Technology Corp. As of December 31, 2019, the service pay was accrued amounting to RMB 46,323 thousand. As of February 24, 2021, casualty claim has been received from group insurance, social security fund and employer’s liability insurance in the amount of RMB 15,810 thousand. Remaining expenses for employees’ death and medical expenses for injury can be recovered from social security and CGL (Commercial General Liability), thus, the management estimated that significant expense actually will not occur.

• B. The share of loss of associates and joint ventures accounted for under the equity method were ($24,168) and ($175,772), respectively, and other comprehensive gain (loss) $110,612 and ($16,874) were recognised for the years ended December 31, 2020 and 2019, respectively.

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(8)Property, plant and equipment

roperty, plant and equipment
Land At January 1 Cost 1,263,704 $ Accumulated depreciation and impairment 60,803) ( 1,202,901 $ Opening net book amount as at January 1 1,202,901 $ Additions 900,000 Disposals - Transfers 103,000 Depreciation charge - Net exchange differences - Closing net book amount as at December 31 2,205,901 $ At December 31 Cost 2,266,704 $ Accumulated depreciation and impairment 60,803) ( 2,205,901 $				2020
		Buildings and structures	Machinery and equipment	Office equipment Other equipment 206,014 $ 3,148,092 $ 144,135) ( 2,023,710) ( 61,879 $ 1,124,382 $ 61,879 $ 1,124,382 $ 28,087 367,679 82) ( 21,700) ( 4,742 155,680 25,349) ( 400,710) ( 694) ( 7,117 68,583 $ 1,232,448 $ 234,323 $ 3,546,809 $ 165,740) ( 2,314,361) ( 68,583 $ 1,232,448 $
		3,848,070 $ 1,201,406) ( 2,646,664 $ 2,646,664 $ 49,327 - 543,732 143,844) ( 15,450) ( 3,080,429 $ 4,416,692 $ 1,336,263) ( 3,080,429 $	5,177,509 $ 3,508,684) ( 1,668,825 $ 1,668,825 $ 217,405 6,999) ( 267,929 348,057) ( 127 1,799,230 $ 5,468,513 $ 3,669,283) ( 1,799,230 $

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Land At January 1 Cost 1,263,704 $ Accumulated depreciation and impairment 60,803) ( 1,202,901 $ Opening net book amount as at January 1 1,202,901 $ Additions - Disposals - Transfers - Depreciation charge - Net exchange differences - Closing net book amount as at December 31 1,202,901 $ At December 31 Cost 1,263,704 $ Accumulated depreciation and impairment 60,803) ( 1,202,901 $				2019
		Buildings and structures	Machinery and equipment	Office equipment Other equipment 189,671 $ 3,684,050 $ 141,852) ( 2,702,995) ( 47,819 $ 981,055 $ 47,819 $ 981,055 $ 28,529 485,726 12) ( 4,897) ( 6,165 76,898 20,128) ( 380,170) ( 494) ( 34,230) ( 61,879 $ 1,124,382 $ 206,014 $ 3,148,092 $ 144,135) ( 2,023,710) ( 61,879 $ 1,124,382 $				Total
		3,522,295 $ 1,201,581) ( 2,320,714 $ 2,320,714 $ 9,374 156) ( 508,174 124,527) ( 66,915) ( 2,646,664 $ 3,848,070 $ 1,201,406) ( 2,646,664 $	4,950,705 $ 3,427,025) ( 1,523,680 $ 1,523,680 $ 327,924 5,535) ( 198,118 332,575) ( 42,787) ( 1,668,825 $ 5,177,509 $ 3,508,684) ( 1,668,825 $

A. The capitalised interest were $1,606 and $4,809 for the years ended December 31, 2020 and 2019, respectively.

B. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

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－ (9)Leasing arrangements lessee

• A. The Group leases various assets including land, buildings and structures, business vehicles and office equipment. Rental contracts are typically made for periods of 2 to 50 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, but leased buildings and structures may not be used for subleasing to others.

• B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings Machinery and equipment Business vehicles Office equipment	December 31,2020 Carrying amount 337,229 $ 644,180 6,811 5,248 3,643 997,111 $	December 31, 2019 Carrying amount
		467,203 $ 554,516 8,881 4,473 4,856
		1,039,929 $

Land Buildings Machinery and equipment Business vehicles Office equipment	Years ended December 31,	Years ended December 31,
	2020 Depreciation charge 11,583 $ 144,063 2,168 4,364 1,214 163,392 $	2019 Depreciation charge 14,130 $ 121,651 2,077 4,022 1,206 143,086 $

• C. For the years ended December 31, 2020 and 2019, the additions to right-of-use assets were $253,157 and $122,668, respectively.

• D. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities	Years ended December 31,	Years ended December 31,
	2020 9,672 $	2019
		8,581 $

• E. For years ended December 31, 2020 and 2019, the Group’s total cash outflow for leases were $162,059 and $122,668, respectively.

• F. Some of the Group’s lease contracts contain variable lease payment terms, with the payments subject to adjustments based on the Consumer Price Index.

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(10)Leasing arrangements – lessor

• A. The Group rents various assets including factories and buildings through non-cancellable operating lease agreements leases. Rental contracts are typically made for periods of 4 to 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 recognised rental income in the amounts of $116,024 and $129,748, respectively, based on the operating lease agreement, which does not include variable lease payments.

• C. The maturity analysis of the undiscounted lease payments under the operating lease is as follows:

December 31, 2020 2020 - $ 2021 111,107 2022 115,105 2023 83,839 Total 310,051 $	December 31, 2019
	109,119 $ 110,734 114,953 84,011
	418,817 $

(11)Investment property

Investment property
Land At January 1 Cost 19,866 $ Accumulated depreciation and impairment 2,611) ( 17,255 $ Opening net book amount as at January 1 17,255 $ Reclassifications - Depreciation charge - Net exchange differences - Closing net book amount as at December 31 17,255 $ At December 31 Cost 19,866 $ Accumulated depreciation and impairment 2,611) ( 17,255 $			2020
			Land-use rights
		- $ - - $ - $ 105,389 1,919) ( 4,647 108,117 $ 177,388 $ 69,271) ( 108,117 $

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Land At January 1 Cost 19,866 $ Accumulated depreciation and impairment 2,611) ( 17,255 $ Opening net book amount as at January 1 17,255 $ Reclassifications - Depreciation charge - Net exchange differences - Closing net book amount as at December 31 17,255 $ At December 31 Cost 19,866 $ Accumulated depreciation and impairment 2,611) ( 17,255 $	Buildings and Structures Total 917,082 $ 936,948 $ 478,116) ( 480,727) ( 438,966 $ 456,221 $ 438,966 $ 456,221 $ 200,246 200,246 46,005) ( 46,005) ( 22,197) ( 22,197) ( 571,010 $ 588,265 $ 1,074,985 $ 1,094,851 $ 503,975) ( 506,586) ( 571,010 $ 588,265 $ 2019

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

		Years ended	December 31,	December 31,
		2020		2019
Rental income from investment property	$	116,024	$	129,748
Direct operating expenses arising from
the investment property that generated
rental income in the year	($	61,900)	($	77,429)

• B. The fair value of investment property held by the Group were $775,474 and $987,097 as of December 31, 2020 and 2019, respectively. The fair values as of December 31, 2020 and 2019 were valued by independent appraisers. Valuations were made using the comparative method, income approach and cost approach which is categorised within Level 3 in the fair value hierarchy. Key assumption is in the following table.

Capitalization rate	December 31,2020 1.43%	December 31,2019 1.36%

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(12)Intangible assets

At January 1 Cost Accumulated amortisation Opening net book amount as at January 1 Additions Amortisation charge Net exchange differences Closing net book amount as at December 31 At December 31 Cost Accumulated amortisation	Computer software Goodwill Acquired special technology 142,559 $ 621,365 $ 102,383 $ 106,750) ( - 27,815) ( 35,809 $ 621,365 $ 74,568 $ 35,809 $ 621,365 $ 74,568 $ 12,717 - - 23,495) ( - 14,565) ( 4,965 28,368) ( 708) ( 29,996 $ 592,997 $ 59,295 $ 156,143 $ 592,997 $ 101,357 $ 126,147) ( - 42,062) ( 29,996 $ 592,997 $ 59,295 $ 2020	Patent Total 7,000 $ 873,307 $ 1,721) ( 136,286) ( 5,279 $ 737,021 $ 5,279 $ 737,021 $ - 12,717 354) ( 38,414) ( 253) ( 24,364) ( 4,672 $ 686,960 $ 6,650 $ 857,147 $ 1,978) ( 170,187) ( 4,672 $ 686,960 $

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==> picture [482 x 423] intentionally omitted <==

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

2019
Acquired
Computer special
software Goodwill technology Patent Total
At January 1
Cost $ 178,355 $ 606,458 $ 102,886 $ - $ 887,699
Accumulated
amortisation ( 147,504) - ( 13,401) - ( 160,905)
$ 30,851 $ 606,458 $ 89,485 $ - $ 726,794
Opening net book
amount as at
-
January 1 $ 30,851 $ 606,458 $ 89,485 $ $ 726,794
Additions 30,806 - - 7,203 38,009
Reclassifications - 28,118 - - 28,118
-
Amortisation charge ( 25,478) ( 14,565) ( 422) ( 40,465)
Net exchange
differences ( 370) ( 13,211) ( 352) ( 1,502) ( 15,435)
Closing net book
amount as at
December 31 $ 35,809 $ 621,365 $ 74,568 $ 5,279 $ 737,021
At December 31
Cost $ 142,559 $ 621,365 $ 102,383 $ 7,000 $ 873,307
Accumulated
amortisation ( 106,750) - ( 27,815) ( 1,721) ( 136,286)
$ 35,809 $ 621,365 $ 74,568 $ 5,279 $ 737,021
----- End of picture text -----

A. Details of amortisation of intangible assets are as follows:

Operating costs Selling expenses Administrative expenses Research and development expenses	Years ended December 31,	Years ended December 31,
	2020 6,139 $ 756 9,639 21,880 38,414 $	2019
		8,879 $ 1,395 8,503 21,688
		40,465 $

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• B. Goodwill attributes to following the Group’s cash-generating units identified according to operating segment:

Goodwill Goodwill	Electronicparts 507,489 $ Electronicparts 534,217 $	Structureparts Aerospace fasteners Total 31,134 $ 54,374 $ 592,997 $ Structure parts Aerospace fasteners Total 32,774 $ 54,374 $ 621,365 $ December 31,2019 December 31, 2020

(13)Impairment of non-financial assets

Goodwill attributes to the Group’s cash-generating units identified according to operating segment. The 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 five-year period are extrapolated using the estimated growth rates stated below.

• A. Operating revenue growth rate calculated with sales forecast with reference to industry and market-related information.

• B. Gross profit rate calculated with historical data with reference to sales forecast.

• C. Operating expense rate calculated with historical data with reference to sales forecast.

• D. Discount rates used were pre-tax and reflected specific risks relating to the relevant operating.

(14)Other non-current assets

Other non-current assets
		December	31,2020		December	31,2019
Other financial assets - non- current	$		737,586	$		-
Guarantee deposits paid			49,463			48,115
Pledged deposits			10,968			1,000
Prepayment on machinery and equipment			140,786			323,285
Others			31,756			26,467
Overdue receivables			19,849			19,849
Allowance for uncollectible
accounts - overdue receivables	(		19,849)	(		19,849)
	$		970,559	$		398,867

The utilisation of other financial assets - non-current, which are the offshore funds repatriated by a company, is restricted by the Act according to “The Management, Utilisation, and Taxation of Repatriated Offshore Funds Act”. Details of deposits pledged to others as collateral are provided in Note 8.

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(15)Short-term borrowings

==> picture [480 x 238] intentionally omitted <==

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

December 31, 2020 Interest rate range
Type of borrowings
Unsecured bank loans $ 406,768 0.56%~0.75%
December 31, 2019 Interest rate range
Type of borrowings
Unsecured bank loans $ 558,406 2.47%~2.63%
Financial liabilities at fair value through profit or loss
December 31, 2020 December 31, 2019
Current items
Financial liabilities held for trading
- -
Non-hedging derivatives $ $
- -
Valuation adjustment 6,930 4,122
Total $ 6,930 $ 4,122
----- End of picture text -----

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

• A. The Group recognised net gain (loss) of $4,598 and ($3,097) on financial liabilities held for trading for years ended December 31, 2020 and 2019, respectively.

• B. The non-hedging derivative instrument transactions and contract information are as follows:

Item Sales of forward foreign exchange " "	Notional Amount (in thousands) Strike Rate Settlement Date EUR 5,100 1.19255~1.2233 (Note 1) 2021.01.28~2021.02.24 EUR 5,800 33.617~34.315 (Note 2) 2021.01.06~2021.02.09 USD 5,000 28.089~28.09 (Note 3) 2021.03.02~2021.03.10 December 31, 2020 Contract Terms	Notional Amount (in thousands) Strike Rate Settlement Date EUR 5,100 1.19255~1.2233 (Note 1) 2021.01.28~2021.02.24 EUR 5,800 33.617~34.315 (Note 2) 2021.01.06~2021.02.09 USD 5,000 28.089~28.09 (Note 3) 2021.03.02~2021.03.10 December 31, 2020 Contract Terms
		Settlement Date
		2021.01.28~2021.02.24 2021.01.06~2021.02.09 2021.03.02~2021.03.10

Note 1: Advance booking EUR to buy USD. Note 2: Advance booking EUR to buy TWD. Note 3: Advance booking USD to buy TWD.

December 31, 2019

			December 31,2019	December 31,2019
Item Sales of forward foreign exchange " "	Notional Amount (in thousands)		Contract Terms
			Strike Rate 1.1091~1.1209 (Note 1) 29.937~29.954 (Note 2) 1.2901~1.2965 (Note 3)	Settlement Date
	EUR 9,600 USD 6,000 GBP 1,700			2020.01.22~2020.03.27 2020.01.30~2020.01.31 2020.01.22~2020.02.27

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Note 1: Advance booking EUR to buy USD. Note 2: Advance booking USD to buy NTD. Note 3: Advance booking GBP to buy USD.

The Group signed forward exchange to hedge foreign exchange risk from the prices of imports and exports; however, the Group did not apply hedge accounting.

(17)Other payables

Other payables
Salary, bonus and remuneration payable Payables on machinery and equipment Others Total	December 31,2020 1,505,526 $ 87,747 1,564,860 3,158,133 $	December 31,2019
		1,281,322 $ 69,149 1,755,459
		3,105,930 $

- (18)Long term borrowings

Type of borrowings Borrowing period and repayment term Collateral Long-term bank borrowings Secured borrowings Repayable monthly until December 2036 Land, Buildings Secured borrowings Repayable monthly until September 2033 Land, Buildings Secured borrowings Repayable monthly until December 2029 Land, Buildings Secured borrowings Repayable monthly until May 2025 Land, Buildings Secured borrowings Repayable monthly until April 2025 Land, Buildings Secured borrowings Repayable monthly until September 2026 Machinery and equipment Secured borrowings Repayable monthly until November 2026 Machinery and equipment Unsecured borrowing Repayable monthly until October 2024 Unsecured borrowing Repayable every 3 months until November 2021 Subtotal Interest rate range Less: Current portion

December 31,2020 823,292 $ 132,298 180,000 142,122 268,846 162,356 57,380 335,889 10,000 2,112,183 180,318) ( 1,931,865 $ 0.5%~1.23%

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Type of borrowings Borrowing period and repayment term Collateral Long-term bank borrowings Secured borrowings Repayable monthly until December 2036 Land, Buildings Secured borrowings Repayable monthly until September 2033 Land, Buildings Secured borrowings Repayable monthly until May 2025 Land, Buildings Secured borrowings Repayable monthly until April 2025 Land, Buildings Secured borrowings Repayable monthly until September 2026 Machinery and equipment Secured borrowings Repayable monthly until November 2026 Machinery and equipment Unsecured borrowing Repayable monthly until October 2024 Unsecured borrowing Repayable every 3 months until December 2021 (Note 1 and Note 2) Unsecured borrowing Repayable every 3 months until December 2021 (Note 1 and Note 2) Subtotal Interest rate range Less: Current portion	December 31,2019	December 31,2019
		919,616 $ 141,710 220,000 308,232 119,489 5,866 117,976 90,000 150,000 2,072,889 222,516) ( 1,850,373 $ 0.7%~1.4%

Note 1: Key performance indicators for bank loans. The subsidiary, National Aerospace Fasteners Corporation, entered into a medium term agreement of loan facilities with the banks. During the term of the borrowings, the subsidiary is obliged to maintain certain liquidity ratios, financial debt ratios and times interest earned as agreed-upon mutually in the annual consolidated financial statements.

Note 2: The loan was repaid early in November 2020.

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(19)Pensions

• A. (a) The Company and the subsidiary, National Aerospace Fasteners Corporation, have defined benefit pension plans in accordance with the Labor Standards Act, covering all regular employees for services provided prior to July 1, 2005, and employees who choose to remain in the defined benefit pension plan subsequent to the enforcement of the Labor Pension Act on July 1, 2005. Under the defined benefit pension plans, employees are entitled to two base points for every year of service for the first 15 years and one base point for each additional year thereafter, up to a maximum of 45 base points. The pension payment to employees is computed based on years of service and average salaries or wages of the last six months prior to approved retirement. The Company and the subsidiary contribute an amount equal to 2% of salaries and wages paid each month to a pension fund. The pension fund is administered by a pension fund monitoring committee (the “Committee”) and deposited under the Committee’s name in the Bank of Taiwan. Also, the Company and the subsidiary would assess the balance in the aforementioned labor pension reserve account by December 31 every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and the subsidiary will make contributions to cover the deficit by next March.

• (b) The amounts recognised in the balance sheet are determined as follows: a. The Company

The Company
The subsidiary, National Aerospace Fasteners Corporation December31,2020 Present value of defined benefit obligations 276,983) ($ Fair value of plan assets 112,199 Net defined benefit liability 164,784) ($ December 31,2020 Present value of defined benefit obligations 44,099) ($ Fair value of plan assets 47,027 Net defined benefit liability 2,928 $	December31,2020	December31,2019
		274,382) ($ 111,031 163,351) ($ December 31,2019
	44,099) ($ 47,027 2,928 $	43,414) ($ 44,708 1,294 $

• b. The subsidiary, National Aerospace Fasteners Corporation

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

a. The Company

a. The Company
At January 1 Current service cost Interest (expense) income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in demographic assumptions Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31 At January 1 Current service cost Interest (expense) income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in demographic assumptions Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31	Present value of defined benefit obligations			Fair value of plan assets 2020	Net defined benefit liability
	274,382) ($ 501) ( 2,058) ( 276,941) ( - 427) ( 7,167) ( 395 7,199) ( - 7,157 276,983) ($		111,031 $ - 845 111,876 3,645 - - - 3,645 3,121 6,443) ( 112,199 $ 2019		163,351) ($ 501) ( 1,213) ( 165,065) ( 3,645 427) ( 7,167) ( 395 3,554) ( 3,121 714 164,784) ($
		Present value of defined benefit obligations		Fair value of plan assets		Net defined benefit liability
	261,480) ($ 485) ( 2,942) ( 264,907) ( - 603) ( 11,059) ( 791) ( 12,453) ( - 2,978 274,382) ($		105,932 $ - 1,209 107,141 3,768 - - - 3,768 3,100 2,978) ( 111,031 $		155,548) ($ 485) ( 1,733) ( 157,766) ( 3,768 603) ( 11,059) ( 791) ( 8,685) ( 3,100 - 163,351) ($

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b. The subsidiary, National Aerospace Fasteners Corporation

At January 1 Current service cost Interest (expense) income Remeasurements: Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31 At January 1 Current service cost Interest (expense) income Remeasurements: Change in financial assumptions Experience adjustments Pension fund contribution At December 31	Present value of defined benefit obligations	Present value of defined benefit obligations	Fair value of plan assets 44,708 $ - 313 45,021 - 1,507 1,507 1,325 826) ( 47,027 $ 2020 2019	Fair value of plan assets 44,708 $ - 313 45,021 - 1,507 1,507 1,325 826) ( 47,027 $ 2020 2019	Net defined benefit liability 1,294 $ 660) ( 9 643 944) ( 1,904 960 1,325 - 2,928 $	Net defined benefit liability 1,294 $ 660) ( 9 643 944) ( 1,904 960 1,325 - 2,928 $
	43,414) ($ 660) ( 304) ( 44,378) ( 944) ( 397 547) ( - 826 44,099) ($
		Present value of defined benefit obligations		Fair value of plan assets		Net defined benefit liability
	38,445) ($ 809) ( 384) ( 39,638) ( 1,393) ( 2,383) ( 3,776) ( - 43,414) ($			40,977 $ - 408 41,385 - 1,438 1,438 1,885 44,708 $	2,532 $ 809) ( 24 1,747 1,393) ( 945) ( 2,338) ( 1,885 1,294 $

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and the subsidiary’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no

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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 are less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company and the subsidiary have no right to participate in managing and operating that fund and hence the Company and the subsidiary are 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 Utilisation Report announced by the government.

• (e) The principal actuarial assumptions used were as follows:

• a. The Company

Discount rate Future salary increases	Year ended December 31,2020 Year ended December 31, 2019 0.50% 0.75% 3.00% 3.00%

Future mortality rate was estimated based on the 5th Taiwan Standard Ordinary Experience Mortality Table

b. The subsidiary, National Aerospace Fasteners Corporation

Discount rate Future salary increases	Year ended December 31, 2020	Year ended December 31, 2019
	0.30%	0.70%
	2.75%	2.75%

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:

a. The Company

obligation is affected. The Company	The analysis was as follows:	The analysis was as follows:	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	Discount rate				Future salaryincreases
	Increase 0.25%		Decrease 0.25%		Increase 0.25%	Decrease 0.25%
	7,168) ($ 7,445) ($		7,442 $ 7,739 $		7,145 $ 7,448 $	6,922) ($ 7,206) ($

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b. The subsidiary, National Aerospace Fasteners Corporation

==> picture [443 x 155] intentionally omitted <==

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

Discount rate Future salary increases
Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%
December 31, 2020
Effect on present
value of defined
($ 1,175) $ 1,224 $ 1,095 ($ 1,060)
benefit obligation
December 31, 2019
Effect on present
value of defined
($ 1,164) $ 1,213 $ 1,090 ($ 1,055)
benefit obligation
----- End of picture text -----

The sensitivity analysis above was arrived at 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 analyzing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The method and assumptions used for the preparation of sensitivity analysis did not change compared to the previous period.

• (f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2021 amount to $1,997.

• (g) As of December 31, 2020, the weighted average duration of the retirement plan is 10.4 years. The analysis of timing of the future pension payment was as follows:

Within 1 year 1-2 year(s) 2-5 years Over 5 years	16,448 $ 20,042 30,003 78,864
	145,357 $

• B. (a) Effective July 1, 2005, the Company and its domestic subsidiary 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 subsidiary contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2020 and 2019 were $51,971 and $53,228, respectively.

• (b) The Company’s Mainland China subsidiaries have a defined contribution plan. Monthly contributions are based on a certain percentage of employees' monthly salaries and wages to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China. Under the scheme, retirement benefits of existing and retired employees are to be provided by the government-managed fund and the

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subsidiaries have no further obligations beyond the monthly contributions. The pension costs under the defined contribution pension plan for the years ended December 31, 2020 and 2019were $81,680 and $134,383, respectively.

  - (c) Other overseas subsidiaries have defined contribution plans for contributions to an independent fund administered by the government in accordance with local regulations that are based on a certain percentage of employees’ monthly salaries and wages. Other than the monthly contributions, the subsidiaries has no further obligations. The pension costs under the defined contribution pension plans of the subsidiaries for the years ended December 31, 2020 and 2019 were $13,749 and $9,242, respectively.

• (20)Share-based payment

• A. As of December 31, 2020, the Company’s share-based payment arrangements were as follows:

Type of arrangement Grant date Sixth employee stock options November 7, 2013 Seventh employee stock options July 26, 2017 Eighth employee stock options October 11, 2018	Quantity granted (in thousands of shares)	Contract period Vesting conditions 6 years 2 years’ service vested 50% 3 years’ service vested 75% 4 years’ service vested 100% 6 years 2 years’ service vested 50% 3 years’ service vested 75% 4 years’ service vested 100% 6 years 2 years’ service vested 50% 3 years’ service vested 75% 4 years’ service vested 100%
	10,300 20,000 20,000

• B. Details of the sixth employee stock options are set forth below:

• (a) Details of sixth employee stock options for the years ended December 31, 2020 and 2019 are set forth below:

set forth below:
Options outstanding at January 1 Options exercised Options outstanding at December 31 Options outstanding at December 31		2020		2019
		No. of options ( in thousands of shares)	Weighted- average exercise price (in NT dollars)	No. of options ( in thousands of shares)	Weighted- average exercise price (in NT dollars)
		- - - -	- - - - $	- - 600) ( 600	- - 10.31 10.60 $

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• (b) The Company estimated the fair value of sixth employee stock options as of grant date under the Black-Scholes option model. The weighted-average parameters used in the estimation of fair value are as follows:

fair value are as follows:
	Grant date-November 7, 2013
Exercise price (in dollars)		$15
Ratio of cash dividends		0%
Expected price volatility		36.83%~41.97%
Risk-free interest ratio		0.78%~1.09%
Expected option life (years)		2.2~4.1
Fair value per share (in dollars)		$3.76~$4.6

• C. Details of the seventh employee stock options are set forth below:

• (a) Details of the seventh employee stock options for the years ended December 31, 2020 and 2019 are set forth below:

Options outstanding at January 1 Options exercised Options forfeited Options outstanding at December 31 Options exercisable at December 31	2020	2020	2019
	No. of options ( in thousands of shares)	Weighted average exercise price (in NT dollars)	No. of options ( in thousands of shares) Weighted average exercise price (in NT dollars) 19,940 $ 37.00 3,237) ( 34.60 1,280) ( - 15,423 34.60 6,093 34.60
	15,423 4,051) ( 225) ( 11,147 6,539	$ 34.60 33.17 - 32.70 32.70

• (b) Information on the seventh employee stock options outstanding as of December 31, 2020 is as follows:

as follows:
Range of exerciseprice	Options outstanding at end of theyear			Options exercisable at end of theyear
	No. of options ( in thousands of shares)	Expected weighted average residualyears	Weighted average exerciseprice	No. of options ( in thousands of shares)	Weighted average exerciseprice
$32.70	11,147	2.57 years	$32.70	6,539	$32.70

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• (c) The Company estimated the fair value of seventh stock options as of grant date under the Black-Scholes option model. The weighted-average parameters used in the estimation of fair value are as follows:

value are as follows:
	Grant date-July26,2017
Exercise price (in dollars)		$42.25
Ratio of cash dividends		5%
Expected price volatility		34.39%
Risk-free interest ratio		0.7091%~0.7678%
Expected option life (years)		5.42
Fair value per share (in dollars)		$7.2428~$7.5272

• D. Details of the eighth employee stock options are set forth below:

• (a) Details of the eighth employee stock options for the years ended December 31, 2020 and 2019 are set forth below:

Options outstanding at January 1 Options exercised Options forfeited Options outstanding at December 31 Options exercisable at December 31	2020	2020	2019
	No. of options ( in thousands of shares)	Weighted average exercise price (in NT dollars)	No. of options ( in thousands of shares) Weighted average exercise price (in NT dollars) 20,000 $ 35.55 - - 530) ( - 19,470 33.20 - -
	19,470 2,195) ( 1,045) ( 16,230 7,018	$ 33.20 31.30 - 31.30 31.30

• (b) Information on the eighth compensatory employee stock options outstanding as of December 31, 2020 is as follows:

Range of exerciseprice	Options outstanding at end of theyear	Options outstanding at end of theyear	Options outstanding at end of theyear	Options exercisable at end of theyear	Options exercisable at end of theyear
	No. of options (in thousands of shares)	Expected weighted- average residual years	Weighted- average exerciseprice	No. of options (in thousands of shares)	Weighted- average exerciseprice
$31.30	16,230	3.78 years	$31.30	7,018	31.30

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• (c)The Company estimated the fair value of eighth stock options as of grant date under the BlackScholes option model. The weighted-average parameters used in the estimation of fair value are as follows:

re as follows:
	Grant date-October 11, 2018
Exercise price (in dollars)		$35.55
Ratio of cash dividends		5%
Expected price volatility		30.66%
Risk-free interest ratio		0.6981%~0.7450%
Expected option life (years)		6
Fair value per share (in dollars)		$5.2256~5.4049

• E. For the year ended December 31, 2020, the share-based payment arrangements of the subsidiary, National Aerospace Fastener Corporation, were as follows:

Type of arrangement	Grant date	Quantity granted (in thousands of shares) Contract period Vesting conditions 3,560 6 years 2 years’ service vested 50% 3 years’ service vested 75% 4 years’ service vested 100%
Employee stock options	December 13, 2019

The abovementioned share-based payment arrangements are equity-settled.

Details of the share-based payment arrangements for the years ended December 31, 2020 and 2019 are as follows:

2019 are as follows:
Options outstanding at January 1 Options granted Options forfeited Options outstanding at December 31 Options exercisable at December 31	2020			2019
	No. of options	Weighted- average exercise price (in dollars)		No. of options	Weighted- average exercise price (in dollars)
	3,560 - 298) ( 3,262 -	91.40 $ - 91.40 87.40 -		- 3,560 - 3,560 -	- $ 91.40 - 91.40 -

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The expiry date and exercise price of stock options outstanding at balance sheet date are as follows:

follows:
		December 31, 2020
		No. of shares Exercise price
Issue date approved	Expirydate	(in thousands) (in dollars)
December 13, 2019	December 13, 2025	3,262 $ 87.4
		December 31, 2019
		No. of shares Exercise price
Issue date approved	Expirydate	(in thousands) (in dollars)
December 13, 2019	December 13, 2025	3,560 $ 91.4

The fair value of stock options of the subsidiary, National Aerospace Fastener Corporation, granted on grant date is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

nformation is as follows:
Type of arrangement Grant date Employee stock options December 13, 2019	Stock price	Exercise price	Expected price volatility	Expected option life	Expected dividends	Risk- free interest rate	Fair value per unit
	91.4	91.4	31.90%~ 34.04% (Note)	4~5 years	-	0.56%~ 0.59%	$23.65~ $28.04

Note: Expected price volatility rate was a fluctuation extent of the stock price in the future period. The future period used to estimate expected price volatility rate was measured based on the stock option expected life equivalent period prior to the measurement date.

F. Expenses incurred on the Group’s share-based payment transactions with equity-settled for the years ended December 31, 2020 and 2019 were $70,432 and $64,285, respectively.

(21)Provisions (warranty)

Provisions (warranty)
Analysis of total provisions: At January 1 $ Additional provisions Used during the year ( Exchange differences At December 31 $ Current Non-current		2020 2019 631,548 606,563 $ 216,780 180,278 168,322) 154,009) ( - 1,284) ( 680,006 631,548 $ December 31,2020 December 31,2019 189,244 $ 216,764 $ 490,761 $ 414,784 $
	$
		189,244 $		216,764 $
		490,761 $		414,784 $

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The Group provides warranties on rugged notebook products sold. Provision for warranty is estimated based on historical warranty data of rugged computer products.

(22)Share capital

As of December 31, 2020, the Company had an authorized capital of $8,500,000, consisting of 850 million shares of common stock (including 80 million shares reserved for employee stock options and 50 million shares reserved for convertible bonds issued by the Company), and an issued capital of $5,892,477 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Movements in the number of the Company’s ordinary shares (in thousands) outstanding are as follows:

follows:
Capital surplus At January 1 Employee stock options exercised At December 31 Sharepremium At January 1 2,818,696 $ Employee stock options exercised 181,850 Compensation cost of employee stock options - Recognition of changes in equities of associates - At December 31 3,000,546 $	Difference between consideration and carrying amount of subsidiaries acquired or disposed 113,722 $ - - - 113,722 $		2020 2019 583,002 579,165 6,246 3,837 589,248 583,002 Changes in net equity of associates and joint ventures accounted for under the equity method Recognition of changes in the subsidiary’s equity Employee stock options 2020
			Changes in net equity of associates and joint ventures accounted for under the equity method 2020
			14,907 $ - - 1,637 16,544 $	24,666 $ - - - 24,666 $	111,666 $ 41,233) ( 38,325 - 108,758 $

(23)Capital surplus

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At January 1 Employee stock options exercised Compensation cost of employee stock options Recognition of changes in equities of associates At December 31	Sharepremium 2,712,672 $ 106,024 - - 2,818,696 $	Difference between consideration and carrying amount of subsidiaries acquired or disposed 113,722 $ - - - 113,722 $	Changes in net equity of associates and joint ventures accounted for under the equity method 12,962 $ - - 1,945 14,907 $ 2019	Recognition of changes in the subsidiary’s equity 24,666 $ - - - 24,666 $	Employee stock options
					74,608 $ 26,205) ( 63,263 - 111,666 $

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

(24)Retained earnings

• A. Under the Company’s Articles of Incorporation, in addition to offsetting prior years' losses after paying all taxes as required by law, 10% of the Company's profit at the closing of each fiscal year shall first be set aside as legal reserve, and special reserve shall be set aside or reversed according to laws, the remainder plus undistributed earnings carried over from previous years shall be allocated at the board's proposal. Proposal for allocation in the form of newly issued shares shall be subject to shareholders' resolution. The Company may, in accordance with the provision of Paragraph 5 of Article 240 of the Company Act, by a resolution adopted by a majority vote of a meeting of the board of directors attended by two-thirds or more of the total number of the directors, distribute dividends and bonuses in form of cash, and submit a report to a shareholders meeting.

• At least 10% of dividends proposed must in the form of cash dividend. However, the actual percentage of cash dividends may be adjusted and resolved during board of directors meetings depending on the Company's financial structure, future fund needs, and profitability.

• B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their

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share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.

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

• (b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate 1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently.

• D. The appropriations of 2020 and 2019 earnings had been resolved at the Board of Directors’ and shareholders’ meeting on February 25, 2021 and May 29, 2020, respectively. Details are summarized below:

Amount Dividends per share(in dollars) Legal reserve 259,877 $ Special reserve 59,393) ( Cash dividends 2,123,911 3.6 $ Total 2,324,395 $ 2020	Amount Dividends per share (in dollars)(Note) 212,603 $ 328,627 1,632,879 2.79597267 $ 2,174,109 $ 2019

Note: The dividend rate was adjusted due to changes in the number of shares with distribution right.

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(25)Other equity items

(26)	Operating revenue At January 1 Revaluation –Group –Associates Currency translation differences: –Group –Associates Disposal of financial assets at fair value through other comprehensive income –Associates At December 31 At January 1 Revaluation –Group –Associates Currency translation differences: –Group –Group tax –Associates Disposal of financial assets at fair value through other comprehensive income –Associates At December 31 Revenue from contracts with customers	Unrealised gain (loss) on valuation	Unrealised gain (loss) on valuation	Unrealised gain (loss) on valuation
		126,351) ($ 87,613 115,905 - - 24,029) ( 53,138 $ Unrealised gain (loss) on valuation
			Unrealised gain (loss) on valuation

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A. Disaggregation of revenue from contracts

The Group’s revenue is subdivided into the following major business units:

				Aerospace
2020	Electronic parts	Structure parts		fasteners		Total
Revenue from external
customer contracts	12,811,509 $	$	13,322,203	1,704,031 $		27,837,743 $
				Aerospace
2019	Electronic parts	Structure parts		fasteners		Total
Revenue from external
customer contracts	12,384,972 $	$	11,751,749	2,816,189 $		26,952,910 $
Contract liabilities
The Group has recognised	the following revenue-related contract liabilities:
	December 31,	2020	December 31, 2019			January1,2019
Contract liabilities	1,268,879 $		$	1,031,837	$	928,400

B. Contract liabilities

Revenue recognised that was included in the contract liability balance at the beginning of the year

year
Revenue recognised that was included in the contract liability balance at the beginning of the year	2020 2019 295,741 $ 220,750 $ Years ended December 31,
		220,750 $

Contract liabilities mainly comprised of extension warranty contract and cloud service revenue, which are provided by electronic parts segment to customers.

(27)Other income and expenses–net

Other income and expenses–net
	Years ended		December 31,
	2020			2019
Other income
Rental income from investment property	$	116,024	$	129,748
Other expenses
Depreciation charges on investment
property	(	34,988)	(	46,005)
Operating expense on investment property	(	26,912)	(	31,424)
Total	$	54,124	$	52,319

(28)Interest income

Interest income
Interest income: Interest income from bank deposits	Years ended December 31,
	2020 54,272 $	2019
		70,214 $

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(29)Other income

Other income
		Years ended	December 31,
		2020		2019
Other income:
Dividend income	$	13,601	$	16,593
Other income - others		152,031		84,322
	$	165,632	$	100,915
Other gains and losses
		Years ended	December 31,
		2020		2019
Gain on disposal of property, plant
and equipment	$	19,374	$	10,958
Net currency exchange (loss) gain	(	89,843)		17,963
Net gain (loss) on financial assets at fair value
through profit or loss		58,273	(	1,338)
Miscellaneous disbursements	(	11,169)	(	9,173)
	($	23,365)	$	18,410

(30)Other gains and losses

(31)Finance costs

Finance costs
Expenses by nature Interest expense: Bank loan Leased liabilities Employee benefit expense Depreciation charges Amortisation charges	Years ended December 31,
	2020 2019 37,540 $ 33,627 $ 9,672 8,581 47,212 $ 42,208 $ Years ended December 31,	2019
		33,627 $ 8,581
		42,208 $
	2020 6,124,299 $ 1,118,259 38,414 7,280,972 $	2019
		5,626,886 $ 1,046,491 40,465
		6,713,842 $

(32)Expenses by nature

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(33)Employee benefit expense

Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses	2020 2019 5,270,967 $ 4,793,380 $ 412,479 397,232 149,765 195,910 291,088 240,364 6,124,299 $ 5,626,886 $ Years ended December 31,

• A. In accordance with the Company's Articles of Incorporation, where the Company accrues annual net income, if any, the Company shall distribute more than 1% but less than 10% of which as employees’ compensation and no more than 1% of which as directors’ and supervisors’ remuneration with the resolution of Board of Directors. However, annual net income should be firstly reserved to offset the Company’s accumulated deficit prior to the distribution of compensation and remuneration.

• B. For the years ended December 31, 2020 and 2019, employees’ compensation were accrued at $156,756 and $127,198, respectively; while directors’ and supervisors’ remuneration were accrued at $5,300 and $5,300. The aforementioned amounts were recognised in salary expenses. On February 25, 2021, the Board of Directors of the Company resolved employees’ compensation in the amount of $156,756, and directors’ remuneration in the amount of $6,200 for the year ended December 31, 2020. For directors’ remuneration, the difference of $900 between the amount resolved by the Board of Directors and the amount recognised in the 2020 financial statements will adjust in the profit or loss of 2021.

• The employees’ compensation of $127,198 and directors’ remuneration of $5,300 for 2019 as resolved by the Board of Directors on February 27, 2020 were in agreement with those amounts recognised in the 2019 financial statements.

• For the years ended December 31, 2020 and 2019, the employees’ compensation and directors’ and supervisors’ remuneration were recognised based on the fixed amount and ratio of the profit accrued in the period.

Information about employees’ compensation and directors’ and supervisors’ remuneration 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.

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(34)Income tax

A. Income tax expense

		Years ended	December 31,	December 31,
		2020		2019
Current tax:
Current tax on profits for the year	$	732,710	$	600,186
Tax on unappropriated earnings		7,774		9,748
Prior year income tax over estimation	(	75,048)	(	41,240)
Total current tax	$	665,436	$	568,694
Deferred tax:
Origination and reversal of temporary
differences	(	83,056)		8,753
Impact of change in tax rate	(	10,233)		-
Total deferred tax	($	93,289)	$	8,753
Income tax expense	$	572,147	$	577,447

B. Reconciliation between income tax expense and accounting profit

		Years ended	December 31,	December 31,
		2020		2019
Tax calculated based on profit before
tax and statutory tax rate (note)	$	922,180	$	792,322
Tax exempt income by tax
regulation	(	20,283)	(	2,712)
Expenses disallowed by tax
regulation		123		175
Temporary differences not recognised
as deferred tax liabilities	(	245,187)	(	134,812)
Tax on undistributed earnings		7,774		9,748
Change in assessment of realisation of
deferred tax assets	(	72,581)	(	46,034)
Prior year income tax (over)
underestimation	(	75,691)	(	41,240)
Income tax on the offshore reinvestment income
repatriated by the enterprise based on the
Management, Utilization, and Taxation of
Repatriated Offshore Fund Act		66,045		-
Impact of change in tax rate	(	10,233)		-
Income tax expense	$	572,147	$	577,447

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

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C. The income tax credit relating to components of other comprehensive income is as follows:

	Years ended	December 31,
	2020	2019
Currency translation differences	$ -	($ 4,397)
Remeasurement of defined benefit
obligations	(711)	( 1,737)
	($ 711)	($6,134)

• D. Amounts of deferred tax assets or liabilities as a result of temporary differences, tax losses and investment tax credits are as follows:

							2020	2020	2020
									Recognised
									in other
						Recognised in		comprehensive
			January1			profit or loss			income			December 31
－Deferred tax assets:
Temporary differences:
Provision for market value decline		$	105,446		$	64,347		$	-		$	169,793
and obsolescence of inventories
Unrealised warranty expense			126,310			-			-			126,310
Unrealised pension			29,243			-			711			29,954
Unrealised gross profit			49,241	(		26,410)			-			22,831
Unrealised expenses			31,279			2,717			-			33,996
Others			54,318			3,270			-			57,588
Tax losses			46,034			66,749			-			112,783
Subtotal	$		441,871	$		110,673		$	711	$		553,255
－Deferred tax liabilities:
Unrealised pension	($		3,217)		$	2,544		$	-	($		673)
Book-tax difference on	(		117,197)	(		20,722)			-	(		137,919)
machinery and equipment
Others	(		49,662)			794			-	(		48,868)
Subtotal	($		170,076)	($		17,384)		$	-	($		187,460)
Total		$	271,795		$	93,289		$	711		$	365,795

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2019

									Recognised
									in other
							Recognised in	comprehensive
				January1			profit or loss		income			December 31
－Deferred tax assets:
Temporary differences:
Provision for market value decline			$	92,582		$	12,864	$	-		$	105,446
and obsolescence of inventories
Unrealised warranty expense				121,313			4,997		-			126,310
Unrealised pension				30,174			(2,668)		1,737			29,243
Unrealised gross profit				4,438			44,803		-			49,241
Unrealised expenses				-			31,279		-			31,279
Tax losses				-			46,034		-			46,034
Others				32,984			16,937		4,397			54,318
Subtotal	$			281,491	$		154,246	$	6,134	$		441,871
－Deferred tax liabilities:
Unrealised exchange gain	($			585)		$	585	$	-		$	-
Unrealised pension	(			627)	(		2,590)		-	(		3,217)
Book-tax difference on				-	(		117,197)		-	(		117,197)
machinery and equipment
Others	(			5,865)	(		43,797)		-	(		49,662)
Subtotal	($			7,077)	($		162,999)	$	-	($		170,076)
Total		$		274,414	($		8,753)	$	6,134		$	271,795

• E. The Company did not recognise taxable temporary differences relating to several subsidiaries investment as deferred tax liabilities. As of December 31, 2020 and 2019, the unrecognized deferred tax liabilities were $7,155,638 and $6,494,996, respectively

• F. The Company repatriated reinvestment income arising from offshore reinvestment in accordance with the Management, Utilization, and Taxation of Repatriated Offshore Funds Act. The act imposes a tax rate of 8% on the repatriated funds. The Company recognised tax expense in the amount of $66,045. 50% tax of aforementioned funds can be applied a tax refund to the Competent Authority after completing the actual investment. If funds were used in others purpose or violate the investment plan, the fund will be imposed at a tax rate of 20%.

• G. Because of the pandemic, the Company applied to pay profit-seeking enterprise income tax in 36 installments for the year ended December 31, 2019, in accordance with the Tax Collection Act. As of December 31, 2020, the remaining amount of $126,390 was unpaid, among this amount, $50,556 was shown as income tax liabilities, $75,834 was shown as non-current income tax liabilities.

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

• I. The income tax returns of the subsidiary, National Aerospace Fasteners Corporation, through 2018 have been assessed and approved by the Tax Authority.

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(35)Earnings per share

Earnings per share	Earnings per share	Earnings per share
Amount after tax Weighted average number of ordinary shares outstanding (shares in thousands) Basic earnings per share Profit attributable to ordinary shareholders of the parent 2,577,039 $ 585,029 Diluted earnings per share Profit attributable to ordinary shareholders of the parent 2,577,039 585,029 Less:Effects of potential dilutive common shares issued by the investee accounted for under the equity method 20) ( - Assumed conversion of all dilutive potential ordinary shares Employee stock options - 9,342 Employees’ compensation - 3,613 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 2,577,019 $ 597,984 Year ended December 31,			Earnings per share (in dollars) 2020
		585,029 585,029 - 9,342 3,613 597,984		4.40 $ 4.31 $

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(36)	Supplemental cash flow information Investing activities with partial cash payments Amount after tax Weighted average number of ordinary shares outstanding (shares in thousands) Earnings per share (in dollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent 2,129,188 $ 580,457 3.67 $ Diluted earnings per share Profit attributable to ordinary shareholders of the parent 2,129,188 580,457 Less:Effects of potential dilutive common shares issued by the investee accounted for under the equity method 11) ( - Assumed conversion of all dilutive potential ordinary shares Employee stock options - 9,107 Employees’ compensation - 3,167 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 2,129,177 $ 592,731 3.59 $ Year ended December 31,2019 2020 2019 Purchase of property, plant and equipment 2,115,239 $ 1,168,810 $ Add: Opening balance of payable on machinery and equipment 69,149 72,718 Add: Ending balance of prepayment on machinery and equipment 140,786 323,285 Less: Ending balance of payable on machinery and equipment 87,747) ( 69,149) ( Less: Opening balance of prepayable on machinery and equipment 323,285) ( - Cash paid during the year 1,914,142 $ 1,495,664 $ Years ended December 31,	Earnings per share (in dollars) 2019

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(37)Changes in liabilities from financing activities

January 1 Changes in cash flow from financing activities Changes in other non-cash items December 31 January 1 Changes in cash flow from financing activities Changes in other non-cash items December 31	Short-term borrowngs	Short-term borrowngs	Long-term borrowngs Lease liabilities 2,072,889 $ 529,817 $ 39,294 162,059) ( - 242,602 2,112,183 $ 610,360 $ 2020 Long-term borrowngs Lease liabilities 2,125,367 $ 537,660 $ 52,478) ( 122,668) ( - 114,825 2,072,889 $ 529,817 $ 2019	Long-term borrowngs Lease liabilities 2,072,889 $ 529,817 $ 39,294 162,059) ( - 242,602 2,112,183 $ 610,360 $ 2020 Long-term borrowngs Lease liabilities 2,125,367 $ 537,660 $ 52,478) ( 122,668) ( - 114,825 2,072,889 $ 529,817 $ 2019		Deposits received
	558,406 $ 151,638) ( - 406,768 $ Short-term borrowngs					24,128 $ 10,607 - 34,735 $ Deposits received
		111,420 $ 446,986 - 558,406 $	2,125,367 $ 52,478) ( - 2,072,889 $	537,660 $ 122,668) ( 114,825 529,817 $	26,324 $ 2,196) ( - 24,128 $

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7. RELATED PARTY TRANSACTIONS

(1)Names of related parties and relationship

Names of related parties Mitac International Corp. Mitac Computing Technology Corporation Mitac Computer (Kunshan) Co., Ltd. Mitac Innovation (Kunshan) Ltd. Mitac Information Technology Ltd. Mitac Research (Shanghai) Ltd. Mitac Technology (Kunshan) Co., Ltd. Mitac Logistics Corporation Mitac Europe Ltd. Mitac Digital Technology Corporation Mitac Logistic Service (KunShan) Ltd. Hyve Design Solutions (Taiwan) Corporation Waffer Technology Corp. Waffer Technology (Maanshan) Limited Waffer Technology (Kunshan) Ltd. Lien Hwa Property Development Corporation Synnex Technology International Corp. Mitac Information Technology Corp. BestCom Infotech Corp. Synnex Australia Pty Ltd. Synnex New Zealand Ltd. Mitac Communication Co., Ltd. Jian Foods Incorporation

Relationship with the Group Entity having significant influence on the Group

Associate of the entity in the same group having significant influence on the Group Associate of the entity in the same group having significant influence on the Group Associate of the entity in the same group having significant influence on the Group Associate of the entity in the same group having significant influence on the Group Associate of the entity in the same group having significant influence on the Group Associate of the entity in the same group having significant influence on the Group Associate of the entity in the same group having significant influence on the Group Associate of the entity in the same group having significant influence on the Group Associate of the entity in the same group having significant influence on the Group Associate of the entity in the same group having significant influence on the Group Associate of the entity in the same group having significant influence on the Group Associate Subsidiary of associate Subsidiary of associate Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party

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(2)Significant related party transactions

• A. Operating revenue

Other related parties Entities having significant influence on the Group Associates	2020 2019 268,795 $ 251,841 $ 64,782 125,377 - 24,077 333,577 $ 401,295 $ Years ended December 31,

• (a) The selling prices to related parties are determined based on the market price in the region of the related party.

• (b) The term of credit for related parties was 150 days after offsetting certain receivables and payables.

(c) The term of credit for third party customers were approximately 150 days after delivery.

B. Purchases

Purchases
Other related parties Associates Entities having significant influence on the Group	Years ended December 31,
	2020 162,219 $ 700 135 163,054 $	2019
		137,403 $ 37,195 118
		174,716 $

• (a) The prices on purchases from related parties are determined based on the market price in the region of the related party.

(b) The term of payment for related parties was 150 days after offsetting certain receivables and payables, respectively.

(c) The term of payment for third party suppliers was approximately 150 days after delivery.

• C. Receivables from related parties

• (a) Accounts receivable

ceivables from related parties Accounts receivable
Entities having significant influence on the Group Other related parties Associates	December 31,2020 9,904 $ 4,914 628 15,446 $	December 31,2019
		39,570 $ 53,047 1
		92,618 $

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(b) Other receivables

Other related parties Associate Entities having significant influence on the Group	December 31,2020 December 31,2019 3,194 $ 21 $ 2,182 2,109 82 3,165 5,458 $ 5,295 $

It mainly refers to receivables for payments on behalf of others.

• D. Accounts payable

(a) Accounts payable

counts payable Accounts payable
Other payables Other related parties Associates Entities having significant influence on the Group Associates Entities having significant influence on the Group Other related parties	December 31,2020 45,553 $ 1,739 - 47,292 $ December 31,2020 40,076 $ 15,755 10,123 65,954 $	December 31, 2019
		37,520 $ 10,447 114
		48,081 $
		December 31,2019 3 $ 7,916 2,972
		10,891 $

• (b) Other payables

Other payables arose from payments on purchases of plant and miscellaneous payable.

• (c) Contract liabilities

Other related party	December31,2020 1,113 $	December31,2019
		42 $

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E. Rental income

Item Associate-Mitac Computer (Kunshan) Co., Ltd. Office and plant Associates Office and plant Entities having significant influence Office and plant Associates-Waffer Technology (Kunshan) Ltd. Office and plant	2020 2019 10,993 $ 11,509 $ 464 372 416 436 - 18,662 11,873 $ 30,979 $ Years ended December 31,

F. Property transactions

• (a) Acquisition of property, plant and equipment

perty transactions Acquisition of property, plant and equipment
Associates-Waffer Technology Corp. Other related parties	Years ended December 31,
	2020 1,031,207 $ 14,372 1,045,579 $	2019
		- $ 1,084
		1,084 $

On April 15, 2020, the Company’s Board of Directors resolved to purchase land and plant from the associate, Waffer Technology Corp. in the amounts of $1,003,000 and $27,000, respectively. As of December 31, 2020, the unpaid amount was $40,000.

(b) Disposal of property, plant and equipment

Associate		Disposal proceeds Gain on disposal Disposal proceeds Gain on disposal 4,475 $ 4,475 $ 211 $ 211 $ Years ended December 31, 2020 2019	Disposal proceeds Gain on disposal Disposal proceeds Gain on disposal 4,475 $ 4,475 $ 211 $ 211 $ Years ended December 31, 2020 2019	Disposal proceeds Gain on disposal Disposal proceeds Gain on disposal 4,475 $ 4,475 $ 211 $ 211 $ Years ended December 31, 2020 2019	Disposal proceeds Gain on disposal Disposal proceeds Gain on disposal 4,475 $ 4,475 $ 211 $ 211 $ Years ended December 31, 2020 2019	Disposal proceeds Gain on disposal Disposal proceeds Gain on disposal 4,475 $ 4,475 $ 211 $ 211 $ Years ended December 31, 2020 2019	Disposal proceeds Gain on disposal Disposal proceeds Gain on disposal 4,475 $ 4,475 $ 211 $ 211 $ Years ended December 31, 2020 2019	Disposal proceeds Gain on disposal Disposal proceeds Gain on disposal 4,475 $ 4,475 $ 211 $ 211 $ Years ended December 31, 2020 2019	Disposal proceeds Gain on disposal Disposal proceeds Gain on disposal 4,475 $ 4,475 $ 211 $ 211 $ Years ended December 31, 2020 2019
		Disposal proceeds Gain on disposal 4,475 $ 4,475 $ 2020
		Disposal proceeds					Disposal proceeds
		$	4,475		4,475 $		211 $		211 $

－ G. Leasing arrangements lessee

(a) The Group leases buildings and equipment from Lien Hwa Property Development Corporation, Mitac International Corp. and Mitac Computer (Kunshan) Co., Ltd. Rental contracts are typically made for periods of 3 to 6 years. Rents are paid before the end of month.

(b) Acquisition of right-of-use assets

The Group acquired right-of-use assets amounting to $25,033 from Lien Hwa Property Development Corporation for the year ended December 31, 2020. On January 1, 2019 (the date of initial application of IFRS 16), the Group increased right-of-use assets by $408,804.

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(c) Lease liabilities

i. Ending balance

ease liabilities Ending balance
	December	31, 2020	December	31, 2019
Other related parties-Lien Hwa Property
Development Corporation	$	182,738	$	226,609
Entities having significant influence on the
Group-Mitac Computer (Kunshan)
Co., Ltd.		49,306		63,676
Entities having significant influence on the
Group-Mitac International Corp.		26,293		38,270
Total	$	258,337	$	328,555

ii. Interest expense

Interest expense
Other related parties Entities having significant influence on the Group Total	Years ended December 31,
	2020 2019 2,395 $ 3,216 $ 2,255 2,246 4,650 $ 5,462 $

H. Others

thers
Entities having significant influence on the Group Other related parties Associates	Transaction item Other expenses Other expenses Other expenses	Years ended December 31,
		2020 2019 123,393 $ 138,702 $ 21,355 20,219 245 1,750 144,993 $ 160,671 $

On December 31, 2019, the Group’s other advance receipts, the nature of which was miscellaneous, from substantive related parties amounted to $145.

(3)Key management compensation

Key management compensation
Salaries and other short-term employee benefits Termination benefits Total	Years ended December 31,
	2020 141,416 $ 733 142,149 $	2019
		156,177 $ 973
		157,150 $

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8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

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Book value
Pledged asset December 31, 2020 December 31, 2019 Purpose
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Pledged asset	Dece	mber 31,2020	Dece	mber 31,2019	Purpose
Property, plant and equipment
Land	$	1,202,901	$	1,202,901	Long-term loans
Buildings		1,126,266		885,991	Long-term loans
Unfinished construction		-		275,525	Long-term loans
Machinery and equipment		230,338		164,515	Long-term loans
Other equipment		28,596		11,499	Long-term loans
Pledged time deposits (shown
as financial assets at
amortised cost-current and
other non-current assets)		10,968		10,884	Customs duties

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

On June 5, 2019, Panasonic Corporation sued Getac Technology Corporation and Getac Inc. (Collectively, “Getac”) in the United States District Court for the Central District of California, accusing Getac’s K120 product of infringing Panasonic’s four U.S. Design Patents; Panasonic Corporation has amended the claim on October 23, 2019 and dropped its infringement allegation involving one of the patents but added UX10 rugged tablet as an infringing product on March 24, 2020. We have engaged King & Spalding LLP to handle the case in behalf of Getac.

(2) Commitments

As of December 31, 2020 and 2019, the subsidiary, National Aerospace Fasteners Corporation, has outstanding construction and equipment purchase contracts totaling $237,684 and $577,216, of which $87,722 and $294,828 remains unpaid, respectively.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and to maintain an optimal capital structure to reduce the cost of capital, and to provide returns to the shareholders. In order to maintain a healthy capital structure, the Group considers future operating capital needs, capital expenditures and dividend expenditures through financial analysis, monitoring the Group’s capital structure in order to fulfill capital management

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objectives.

(2) Financial instruments

A. Financial instruments by category

ectives. ancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost/Loans and receivables Cash and cash equivalents Notes receivable Accounts receivable Other receivables Guarantee deposits paid Financial assets at amortised cost - current Financial assets at amortised cost - non-current Other financial assets - non-current Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities held for trading Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable Other payables Long-term borrowings (including current portion) Refund liability Guarantee deposits received Lease liabilities	December 31,2020 63,883 $ 741,617 5,706,030 13,793 7,513,622 87,588 49,463 547,275 10,968 737,586 15,471,825 $ 6,930 $ 406,768 70 5,922,501 3,158,133 2,112,183 492,750 34,735 12,134,070 $ 610,360 $	December 31,2019
		3,955 $ 651,745 5,492,175 4,516 6,355,516 58,768 48,115 1,023,992 1,000 -
		13,639,782 $
		4,122 $ 558,406 2,714 4,459,568 3,105,930 2,072,889 804,525 24,128
		11,032,282 $
		529,817 $

B. Financial risk management policies

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

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

• (b) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Notes 6(2) and (16).

• C. Significant financial risks and degrees of financial risks

• (a)Market risk

Foreign exchange risk

• i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.

• ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The group companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the entity’s functional currency. To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the Group use forward foreign exchange contracts, transacted with Group treasury.

• iii. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: RMB and USD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

as follows:
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB Financial liabilities Monetary items USD:NTD USD:RMB	December 31,2020
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)
	89,133 $ 205,807 73,513 141,133	28.48 6.5249 28.48 6.5249	2,538,508 $ 5,861,383 2,093,650 4,019,468

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		December 31,2019	December 31,2019
	Foreign currency
		amount			Book value
		(In thousands) Exchange rate			(NTD)
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD:NTD	$	83,101	29.98	$	2,491,368
USD:RMB		129,813	6.9762		3,891,794
Financial liabilities
Monetary items
USD:NTD		78,577	29.98		2,355,738
USD:RMB		106,569	6.9762		3,194,939

iv. Total exchange (loss) gain, including realised and unrealised 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 ($89,843) and $17,963, respectively.

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

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB Financial liabilities Monetary items USD:NTD USD:RMB	Year ended December 31,2020	Year ended December 31,2020	Year ended December 31,2020
		Sensitivityanalysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
	1% 1% 1% 1%	25,385 $ 94,541 20,937 40,195	- $ - - -

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		Year ended December 31,	Year ended December 31,	2019	2019
		Sensitivityanalysis
					Effect on other
	Degree	of	Effect on profit		comprehensive
	variation		or loss		income
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD:NTD	1%	$	24,914	$	-
USD:RMB	1%		38,918		-
Financial liabilities
Monetary items
USD:NTD	1%		23,557		-
USD:RMB	1%		31,949		-

Price risk

• i.The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through other comprehensive income.To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio.

• ii.The Group’s investments in equity securities comprise domestic and foreign stocks. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, other components of equity for the years ended December 31, 2020 and 2019 would have increased/decreased by $7,416 and $6,517, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

• i.The Group’s main interest rate risk arises from long-term borrowings. Long-term borrowings issued at variable rates expose the Group to cash flow interest rate risk. During the years ended December 31, 2020 and 2019, the Group’s borrowings at variable rate were denominated in the New Taiwan Dollars (NTD) and United States Dollars (USD).

• ii.The Group’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

• iii.If annual interest rates on denominated borrowings had been 0.25% higher/lower with all other variables held constant, post-tax profit for the years ended December 31, 2020 and 2019 would have been $4,224 and $4,146 lower/higher, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

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(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 on the contract obligations. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding accounts and notes receivable.

• ii. According to the Group’s credit policy, each operating entities manages individual customer and analyse its credit risk, in particular evaluation of factors undermine the customers’ repayment such as the customers’ financial status and historical transactions as well as monitoring the usage of credit facilities on a regular basis. For banks and financial institutions, only well-rated parties are accepted.

• iii. The Group classifies customers’ accounts receivable in accordance with customer types. The Group applies the simplified approach using loss rate methodology to estimate expected credit loss.

• iv. The Group adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

• (i) If the contract payments were past due 1~90 day(s) based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition;

• (ii) The default occurs when the contract payments are past due over 90 days.

• v. 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 reorganisation 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.

• vi. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. On December 31, 2020, the Group’s written-off financial assets that are still under recourse procedures amounted to $0.

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vii. The Group used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. On December 31, 2020 and 2019, the loss rate methodology is as follows:

rate methodology	y	is as follows:
December 31, 2020 Expected loss rate Total book value Loss allowance December 31, 2019 Expected loss rate Total book value Loss allowance		Notpast due		1~90 days past due		91~180 days past due 0~100% 1,334 $ 1,255 $ 91~180 days past due		Over 180 days past due 0~100% 118 $ 116 $ Over 180 days past due 100% 877 $ 877 $	Total
		0%~0.03% 7,297,179 $ 7,351 $ Notpast due		0%~0.50% 227,951 $ 4,238 $ 1~90 days past due					7,526,582 $
									12,960 $
									Total
		0%~0.03% 6,044,360 $ 1,813 $		0%~0.03% 323,280 $ 10,311 $		100% 1,995 $ 1,995 $			6,370,512 $
									14,996 $

viii. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

		2020
		Accounts receivable
At January 1	$	14,996
Reversal of impairment loss	(	2,036)
At December 31	$	12,960
		2019
		Accounts receivable
At January 1	$	16,316
Reversal of impairment loss	(	1,320)
At December 31	$	14,996

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements.

• ii. The table below analyses 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 nonderivative financial liabilities and to the expected maturity date for derivative financial

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liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

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Less than 1 Between 1 Between 2
December 31, 2020 year and 2 years and 5 years Over 5 years
Short-term borrowings $ 406,768 $ - $ - $ -
Notes payable 70 - - -
- - -
Accounts payable 5,922,501
- - -
Other payables 3,158,133
- - -
Refund liability 492,750
Long-term borrowings
(including current portion) 200,529 294,117 877,138 867,292
-
Other financial liabilities 22,323 6,597 5,815
Lease liabilities 159,063 150,100 189,448 142,181
Less than 1 Between 1 Between 2
December 31, 2019 year and 2 years and 5 years Over 5 years
Short-term borrowings $ 558,406 $ - $ - $ -
- - -
Notes payable 2,714
- - -
Accounts payable 4,459,568
- - -
Other payables 3,105,930
- - -
Refund liability 804,525
Long-term borrowings
(including current portion) 247,390 331,108 721,687 924,118
Other financial liabilities 1,732 2,118 15,162 5,116
Lease liabilities 143,011 152,698 236,705 8,255
Derivative financial liabilities:
Less than 1 Between 1 Between 2
December 31, 2020 year and 2 years and 5 years Over 5 years
Forward exchange contracts $ 6,930 $ - $ - $ -
Less than 1 Between 1 Between 2
December 31, 2019 year and 2 years and 5 years Over 5 years
Forward exchange contracts $ 4,122 $ - $ - $ -
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• iii. The Company does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value estimation

• 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 take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the

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Group’s investment in listed stocks, beneficiary certificates, on-the-run Taiwan central government bonds and derivative instruments with quoted market prices 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 unlisted stocks and 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 carrying amounts of cash and cash equivalents, notes receivable, accounts receivable, other receivables, guarantee deposits paid, short-term borrowings, notes payable, accounts payable, other payables, long-term borrowings (including current portion) and guarantee deposits received are approximate to their fair values.

• D. The related information of 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 at December 31, 2020 and 2019 is as follows:

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

December 31, 2020 Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at fair
value through profit or loss
- -
Forward exchange contracts $ $ 63,883 $ $ 63,883
Financial assets at fair value
through other comprehensive
income
Equity securities 434,805 - 306,812 741,617
Total $ 434,805 $ 63,883 $ 306,812 $ 805,500
Financial liabilities:
Financial liabilities at fair
value through profit or loss
Forward exchange contracts $ - $ 6,930 $ - $ 6,930
----- End of picture text -----

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

December 31, 2019 Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at fair
value through profit or loss
- -
Forward exchange contracts $ $ 3,955 $ $ 3,955
Financial assets at fair value
through other comprehensive
income
-
Equity securities 381,639 270,106 651,745
Total $ 381,639 $ 3,955 $ 270,106 $ 655,700
Financial liabilities:
Financial liabilities at fair
value through profit or loss
Forward exchange contracts $ - $ 4,122 $ - $ 4,122
----- End of picture text -----

• E. The methods and assumptions the Group used to measure fair value are as follows:

• (a) The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed shares, used closing price as market quoted price.

• (b) Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes.

• (c) When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, 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.

• F. For the years ended December 31, 2020 and 2019, there was no transfer between Level 1 and Level 2.

• G. The following chart is the movement of Level 3 for the years ended December 31, 2020 and 2019:

		Equitysecurities
		2020
January 1, 2020	$	270,106
Acquired in the year		17,087
Settled in the year	(	4,216)
Gain recognised in other comprehensive income		23,835
December 31, 2020	$	306,812

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		Equitysecurities
		2019
January 1, 2019	$	243,394
Acquired in the year		49,952
Settled in the year	(	9,031)
Losses recognised in other comprehensive income	(	14,209)
December 31, 2019	$	270,106

• H. Investment segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions and making any other necessary adjustments to the fair value.

• I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

alue measurement:
Non-derivative equity instrument: Unlisted shares Non-derivative equity instrument: Unlisted shares	Fair value at December 31, 2020	Valuation technique Net asset value Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	306,812 $ Fair value at December 31, 2019		Net asset value Significant unobservable input	- Range (weighted average)	The higher the net asset value, the higher the fair value Relationship of inputs to fair value
	270,106 $	Net asset value	Net asset value	-	The higher the net asset value, the higher the fair value

• (4) Impact of the COVID 19 pandemic on the operation of the Group for the year of 2020

Amid the effects of the COVID-19 pandemic, the Group aimed to adjust the operations to mitigate such impact. As a result, the operating income had a slight growth for the year ended December 31, 2019. Currently, the case number of COVID-19 continues to increase globally and the conflict between America and China is worsening. Both these events may have an impact on the market, such that acceptable orders are difficult to forecast. The actual impact to the Group cannot be reasonably estimated as it will be dependent on the subsequent control of the COVID-19 pandemic.

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13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

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

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

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

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to table 4.

• 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) and 6(16).

• 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. Major transactions with the investee in Mainland China: Please refer to table 5 and table 9.

(4) Major shareholders information

Major shareholders information: Please refer to table 10.

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14. SEGMENT INFORMATION

(1) General information

The Group considers the business from a product perspective; the Group is primarily engaged in manufacturing and sales of information products such as computers and portable devices for military use and industrial use, parts for the electronics, automobiles and appliances, as well as all types of fastenings meeting aerospace specification.

(2) Measurement of segment information

The accounting policies for preparing operating segment information are the same as the significant accounting polices summarized in Note 4. The Group evaluates the performance of operating segments based on segment performance is measured by profit (loss) after tax from continuing operations of each segment individual the financial statements of each operating segment.

(3) Segment information

The segment information provided to the Chief Operating Decision-Maker on the reportable segments for the years ended December 31, 2020 and 2019 is as follows:

Year ended December 31, 2020

		Electronicparts		Structureparts		Aerospace fasteners		Consolidation
Revenue from external customers	$	12,811,509	$	13,322,203	$	1,704,031	$	27,837,743
Segment income	$	1,536,186	$	1,072,776	$	59,831	$	2,668,793
Segment income (loss), including:
Interest income	$	10,008	$	43,778	$	486	$	54,272
Interest expense	(	15,903)	(	4,646)	(	26,663)	(	47,212)
Depreciation and amortisation	(	295,227)	(	582,735)	(	278,711)	(	1,156,673)
Investment income or loss accounted
for under the equity method	(	24,168)		-		-	(	24,168)
Income tax expense	(	393,205)	(	187,712)		8,770	(	572,147)

~101~

Year ended December 31, 2019

		Electronicparts		Structureparts		Aerospace fasteners		Consolidation
Revenue from external customers	$	12,384,971	$	11,751,749	$	2,816,190	$	26,952,910
Segment income	$	1,368,555	$	650,549	$	350,824	$	2,369,928
Segment income (loss), including:
Interest income	$	9,566	$	58,772	$	1,876	$	70,214
Interest expense	(	8,955)	(	2,334)	(	30,919)	(	42,208)
Depreciation and amortisation	(	255,008)	(	593,276)	(	238,672)	(	1,086,956)
Investment income or loss accounted
for under the equity method	(	175,772)		-		-	(	175,772)
Income tax expense	(	266,698)	(	203,735)	(	107,014)	(	577,447)

~102~

(4) Geographical information

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

China America Europe Others China Taiwan Vietnam Others	2020 2019 10,214,451 $ 9,086,727 $ 7,983,578 7,591,990 3,825,255 4,415,650 5,814,459 5,858,543 27,837,743 $ 26,952,910 $ 2020 2019 4,308,793 $ 3,571,795 $ 4,590,595 4,178,153 1,424,120 1,513,041 652,700 752,023 10,976,208 $ 10,015,012 $ Non-current assets December 31,

(5) Information on products

Information on products
Electronic parts Structure parts Aerospace fasteners	2020 12,811,509 $ 13,322,203 1,704,031 27,837,743 $	2019
		12,384,971 $ 11,751,749 2,816,190
		26,952,910 $

(6) Major customer information

Single customers accounting for more than 10% of the sales revenue on the Group’s consolidated statements of comprehensive income for the years ended December 31, 2020 and 2019:

consolidated statements of comprehensive income for 2020 and 2019:	the years ended December 31,
Customer Customer L Customer O Customer Customer L Customer O	Year ended December 31,2020
	4,189,615 $
	3,785,712 $
	Year ended December 31,2019
	3,728,839 $
	3,212,772 $

~103~

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

Getac Technology Corp. and Subsidiaries Loans to others Year ended December 31, 2020

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2020	Balance at December 31, 2020 （Note 4）	Actual amount drawn down	Interest rate	Nature of loan （Note 2）	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party （Note 3）	Ceiling on total loans granted （Note 3）
													Item	Value
1 1 2 2 3 4 4 5 5 5 6 7 8 9 10 10 11	Pacific Royale Ltd. Pacific Royale Ltd. Hot Link Technology Ltd. Hot Link Technology Ltd. Pacific Metal Developments Ltd. ACE Continental Industries Ltd. ACE Continental Industries Ltd. Mitac Precision Developments Ltd. Mitac Precision Developments Ltd. Mitac Precision Developments Ltd. Talent View Ltd. Mitac Computer (Shunde) Ltd. WHP Workflow Solutions,Inc. Mitac Precision Technology (Kunshan) Co., Ltd. Getac Inc. Getac Inc. Getac Corporation	Getac (UK) Ltd. Mitac Precision Developments Ltd. Mitac Precision Developments Ltd. Pacific Royale Ltd. Mitac Precision Developments Ltd. Pacific Royale Ltd. Hot Link Technology Ltd. Fong Guan Investments Ltd. Mitac Precision Technology Vietnam Co., Ltd. Getac Precision Technology Vietnam Co., Ltd. Mitac Precision Developments Ltd. Getac Technology (Kunshan) Co., Ltd. Getac Video Solutions Inc. Getac Technology (Kunshan) Co., Ltd. Getac Video Solutions Inc. Getac Technology Corp. Fong Guan Investments Ltd.	Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable	Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y	$ 27,748 978,652 105,070 704,825 963,463 74,950 108,900 55,963 907,500 1,058,750 568,700 241,078 15,125 287,138 88,890 284,800 56,000	$ - 368,816 99,680 - 907,088 56,960 102,528 - 854,400 854,400 481,312 240,065 14,240 270,560 85,440 284,800 56,000	$ - 368,816 99,680 - 907,088 56,960 102,528 - 455,680 845,856 481,312 240,065 14,240 270,560 85,440 284,800 56,000	0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.0% 2.5% 1.0% 2.5% 2.5% 0.75%	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- $ - - - - - - - - - - - - - - - -	Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing Working capital financing	- $ - - - - - - - - - - - - - - - -	None None None None None None None None None None None None None None None None None	- $ - - - - - - - - - - - - - - - -	$ 4,784,281 4,784,281 14,096,341 14,096,341 2,477,311 1,223,597 1,223,597 301,749 3,771,866 3,771,866 726,665 1,121,420 58,349 4,906,652 502,493 502,493 112,107	$ 4,784,281 4,784,281 14,096,341 14,096,341 2,477,311 1,223,597 1,223,597 301,749 3,771,866 3,771,866 726,665 1,121,420 58,349 4,906,652 502,493 502,493 112,107

Table 1, Page 1

Maximum

					Maximum
No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	outstanding balance during the year ended December 31, 2020	Balance at December 31, 2020 （Note 4）	Actual amount drawn down	Interest rate	Nature of loan （Note 2）	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party （Note 3）	Ceiling on total loans granted （Note 3）
													Item	Value
12 12	National Aerospace Fasteners Corporation National Aerospace Fasteners Corporation	Suzhou Nation Precision Ltd. Suzhou Nation Precision Ltd.	Other receivable Other receivable	Y Y	$ 196,541 107,639	$ - 107,639	$ - 99,680	3.0% 1.0%	1 1	Sales $25,850 Purchase $115,778 -	Business relationship. Working capital financing	- $ -	None None	- $ -	$ 374,630 374,630	$ 374,630 374,630

Note 1:The numbers filled in for the loans 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:(1) Having business relationship.

(2) In need of short-term financing.

Note3: (1) Pacific Royale Ltd./Hot Link Technology Ltd./Pacific Metal Developments Ltd./ACE Continental Industries Ltd./ Talent View Ltd./Mitac Computer (Shunde) Ltd./WHP Workflow Solutions Inc./ Mitac Precision Technology (Kunshan) Co., Ltd./Getac Inc. has policy of maximum loans to others:

(a) Short-term financing :

(i) The borrowing amount for each borrowing entity and total borrowing amount should not be higher than 40% of the net assets on the latest financial statements audited or reviewed by independent auditors.

(ii) Foreign companies with 100% voting rights directly or indirectly owned by the ultimate parent company:

the borrowing amount for each borrowing company and total borrowing amount should not be higher than 150% of the Company’s net assets on the latest financial statements audited or reviewed by independent auditors. (b) The total borrowing amount must not exceed 150% of the net value disclosed in the Company’s latest financial statements which has been audited or reviewed by independent auditors. Note3:(2) Getac Corporation has policy of maximum loans to others:

(a) Short-term financing :

The borrowing amount for each borrowing entity and total borrowing amount should not be higher than 40% of the net assets on the latest financial statements audited or reviewed by independent auditors.

(b) The total borrowing amount must not exceed the net value disclosed in the Company’s latest financial statements which has been audited or reviewed by independent auditors. Note3:(3) Mitac Precision Developments Ltd. has policy of maximum loans to others:

(a) Short-term financing :

(i) The borrowing amount for each borrowing entity and total borrowing amount should not be higher than 40% of the net assets on the latest financial statements audited or reviewed by independent auditors. (ii) Foreign companies with 100% voting rights directly or indirectly owned by the ultimate parent company:

the borrowing amount for each borrowing company and total borrowing amount should not be higher than 500% of the Company’s net assets on the latest financial statements audited or reviewed by independent auditors. (b) The total borrowing amount must not exceed 500% of the net value disclosed in the Company’s latest financial statements which has been audited or reviewed by accountants.

(4) National Aerospace Fasteners Corporation has policy of maximum loans to others:

(a) The amount of an individual loan granted by the Company to National Aerospace Fasteners Corporation or business with business relationship with the Company shall not exceed the business transaction amount in the past year between the parties. Business relationship means the higher amount of purchase or sells. The limit of National Aerospace Fasteners Corporation on individual loans granted to a single party and ceiling on total loans granted are 20% of the net equity of National Aerospace Fasteners Corporation as of December 31, 2020.

(b) The borrowing amount for each borrowing company and total borrowing amount should not be higher than 20% of the Company’s net assets on the latest financial statements audited or reviewed by independent auditors. and ceiling on total loans granted are 20% of the net equity of National Aerospace Fasteners Corporation as of December 31, 2020. Note 4:Amount as resolved by the Board of Directors.

Table 1 , Page 2

Getac Technology Corp. and Subsidiaries

Provision of endorsements and guarantees to others

Year ended December 31, 2020

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Number （Note 1）	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a singleparty	Maximum outstanding endorsement/ guarantee amount as of December 31, 2020	Outstanding endorsement/ guarantee amount at December 31, 2020	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided （Note 2）	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China
		Companyname	Relationship with the endorser/ guarantor
0 0 0 1	Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. National Aerospace Fasteners Corporation	Getac Inc. Getac Video Solutions Inc. Getac Technology GmbH Suzhou Nation Precision Ltd.	Note 3 Note 3 Note 3 Note 4	$ 8,122,523 8,122,523 8,122,523 936,575	$ 17,630 15,015 551,514 36,284	$ 8,544 14,240 434,248 18,142	$ 8,544 - 414,754 -	- - - -	0.05 0.09 2.67 0.97	$ 8,122,523 8,122,523 8,122,523 936,575	Y Y Y Y	N N N N	N N N Y

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:(1)The maximum amount of endorsements and guarantees provided by the Company should not be higher than 50% of the net assets on the latest financial statements audited or reviewed by independent auditors.

(2)The maximum amount of endorsements and guarantees provided by National Aerospace Fasteners Corporation should not be higher than 50% of the net assets on the latest financial statements audited or reviewed by independent auditors.

Note 3:The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company. Note 4:The endorser/guarantor National Aerospace Fasteners Corporation and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company.

Table 2, Page 1

Getac Technology Corp. and Subsidiaries

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

Year ended December 31, 2020

			Year ended December 31, 2020
Table 3 Securitiesheld by	Marketable securities	Securities	Relationship with the securitiesissuer	General ledgeraccount		Expressed in thousands of NTD (Except as otherwise indicated) As of December31,2020			Note
					Numberofshares	Bookvalue	Ownership (%)	Fairvalue
Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Pacific Royale Ltd. Pacific Royale Ltd. National Aerospace Fasteners Corporation National Aerospace Fasteners Corporation	Stock Stock Stock Stock Stock Stock Stock Stock Stock Stock	Mitac Holdings Corp. Harbinger VI Venture Capital Corp. Harbinger VII Venture Capital Corp. Hsin Chu Golf Country Club JVP VIII, L.P. Harbinger VIII Venture Capital Corp. Mitac Holdings Corp. Fortune Greater China Fund II, L.P. Mokoh & Assoicates, Inc. Shintori Restaurant Co., Ltd.	Indirect investee company accounted for under the equity method None None None None None Pacific Royale Ltd.'s indirect investee accounted for using equity method None None None	Financial assets at fair value through other compiehensive income- non-current Financial assets at fair value through other compiehensive income- non-current Financial assets at fair value through other compiehensive income- non-current Financial assets at fair value through other compiehensive income- non-current Financial assets at fair value through other compiehensive income- non-current Financial assets at fair value through other comprehensive income- noncurrent Financial assets at fair value through other compiehensive income- non-current Financial assets at fair value through other compiehensive income- non-current Financial assets at fair value through other compiehensive income- non-current Financial assets at fair value through other compiehensive income- non-current	10,299,987 3,745,020 10,000,000 1 - 7,500,000 4,439,182 1,179,630 700,000 20,307	$ 303,850 47,438 143,059 2,400 39,978 73,936 130,956 - - -	0.85% 13.28% 9.39% 0.12% 1.16% 11.57% 0.37% 7.41% 0.51% 2.75%	$ 303,850 47,438 143,059 2,400 39,978 73,936 130,956 - - -	Closed Closed

Table 3, Page 1

Getac Technology Corp. and Subsidiaries

Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more

Year ended December 31, 2020

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

Real estate acquired by	Real estate acquired	Date of the event	Transaction amount	Status of payment	Counterparty	Relationship with the counterparty	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	Basis or reference used in setting the price	Reason for acquisition of real estate and status of the real estate	Other commitments
							Original owner who sold the real estate to the counterparty	Relationship between the original owner and the acquirer	Date of the original transaction	Amount
Getac Technology Corp. Getac Technology Corp.	Land located on Dazhi Rd., Taoyuan City Building located on Dazhi Rd., Taoyuan City	2020.04.15 2020.04.15	$ 1,003,000 27,000	$ 963,000 27,000	Waffer Technology Corp. Waffer Technology Corp.	Associates Associates	Taiwan Provincial Government Construction Department N/A	None N/A	1972.06.09 N/A	$ 32,039 N/A	Refer to real estate valuation report Refer to real estate valuation report	Disperse the proportion of production bases worldwide to meet the future operating growth. Disperse the proportion of production bases worldwide to meet the future operating growth.	None None

Table 4, Page 1

Getac Technology Corp. and Subsidiaries Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more Year ended December 31, 2020

Table 5

Table 5
Purchaser/seller	Counterparty	Relationship withthe counterparty		Transaction			Differences in transaction terms compared to third party transactions		Notes/accountsreceivable (payable) (Except as otherwise indicated) Expressed in thousands of NTD
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Inc. Getac (UK) Ltd. Getac Technology GmbH Mitac Technology (Kyoto) Co., Ltd. Getac (SuZhou) Mobile Ltd. Getac Video Solutions Inc. Getac Technology (Kunshan) Co., Ltd. Mitac Precision Developments Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Developments Ltd. Suzhou Mitac Precision Technology Co., Ltd. Mitac Precision Developments Ltd. Mitac Precision Technology (Vietnam) Co., Ltd.	Getac Inc. Getac (UK) Ltd. Getac Technology GmbH Mitac Technology (Kyoto) Co., Ltd. Getac (SuZhou) Mobile Ltd. Getac Video Solutions Inc. Getac Technology (Kunshan) Co., Ltd. Mitac Precision Developments Ltd. BestCom Infotech Corp. Synnex Technology International Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Mitac Precision Developments Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Developments Ltd. Suzhou Mitac Precision Technology Co., Ltd. Mitac Precision Developments Ltd.	The Company's second-tier subsidiary The Company's second-tier subsidiary The Company's second-tier subsidiary The Company's second-tier subsidiary The Company's second-tier subsidiary The Company's third-tier subsidiary The Company's third-tier subsidiary The Company's second-tier subsidiary Substantive related party Substantive related party The Company's indirect wholly-owned subsidiary The Company's indirect wholly-owned subsidiary The Company's indirect wholly-owned subsidiary The Company's indirect wholly-owned subsidiary The Company's indirect wholly-owned subsidiary The Company's indirect wholly-owned subsidiary The Company's indirect wholly-owned subsidiary The Company's indirect wholly-owned subsidiary Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company	Sales Sales Sales Sales Sales Sales Purchases Purchases Sales Purchases Purchases Purchases Purchases Purchases Purchases Purchases Sales Sales Sales Purchases Sales Purchases Sales	5,073,244 $ 391,326 831,337 498,030 262,883 233,301 2,413,459 410,198 196,419 162,219 5,073,244 391,326 831,337 498,030 262,883 233,301 2,413,459 410,198 3,908,916 3,908,916 820,246 820,246 294,296	44% 3% 7% 4% 2% 2% 39% 7% 2% 3% 92% 94% 97% 64% 76% 81% 100% 6% 62% 61% 21% 13% 17%	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 3 Note 3 Note 1 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 1 Note 1 Note 1 Note 3 Note 1 Note 3 Note 1	Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 5 Note 4 Note 2 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 5 Note 2 Note 2 Note 4 Note 2 Note 4 Note 2	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 3 Note 3 Note 1 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 1 Note 1 Note 1 Note 3 Note 1 Note 3 Note 1	97,892 $ 51,459 64,092 33,131 40,359 108,033 2,333,873) ( 161,784) ( 3,253 45,553) ( 97,892) ( 51,459) ( 64,092) ( 33,131) ( 40,359) ( 108,033) ( 2,333,873 161,784 2,265,715 2,265,715) ( 73,605 73,605) ( 82,461	8% 4% 5% 3% 3% 9% 67% 5% 0% 1% 89% 100% 107% 67% 66% 51% 100% 6% 68% 78% 4% 3% 21%

Table 5, Page 1

Expressed in thousands of NTD

Differences in transaction terms compared to third party

(Except as otherwise indicated)

							Differences in transaction terms compared to third party	Differences in transaction terms compared to third party	(Except as otherwise indicated)	(Except as otherwise indicated)
Purchaser/seller	Counterparty	Relationship withthe counterparty		Transaction			transactions		Notes/accountsreceivable (payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Mitac Precision Developments Ltd. Getac Precision Technology (ChangShu) Co., Ltd. Mitac Precision Developments Ltd. Getac Precision Technology Vietnam Co., Ltd. Mitac Precision Developments Ltd. Mitac Precision Developments Ltd. Getac Precision Technology (ChangShu) Co., Ltd. Mitac Precision Developments Ltd. Mitac Technology (Kyoto) Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Technology (Vietnam) Co., Ltd. Getac Precision Technology Vietnam Co., Ltd. Suzhou Nafco Precision Ltd. National Aerospace Fasteners Corporation	Mitac Precision Technology (Vietnam) Co., Ltd. Mitac Precision Developments Ltd. Getac Precision Technology (ChangShu) Co., Ltd. Mitac Precision Developments Ltd. Getac Precision Technology Vietnam Co., Ltd. Getac Precision Technology (ChangShu) Co., Ltd. Mitac Precision Developments Ltd. Mitac Technology (Kyoto) Co., Ltd. Mitac Precision Developments Ltd. Getac Technology (Kunshan) Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Getac Precision Technology Vietnam Co., Ltd. Mitac Precision Technology (Vietnam) Co., Ltd. National Aerospace Fasteners Corporation Suzhou Nafco Precision Ltd.	Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company Affiliated company National Aerospace Fasteners Corporation’s subsidiary Suzhou Nafco Precision Ltd. ’s parent company	Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases	294,296 $ 415,794 415,794 1,213,686 1,213,686 156,536 156,536 223,589 223,589 143,099 143,099 273,567 273,567 138,705 138,705 116,388 116,388	5% 36% 7% 92% 19% 2% 26% 4% 29% 2% 3% 7% 7% 8% 40% 38% 28%	Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3	Note 4 Note 2 Note 4 Note 2 Note 4 Note 2 Note 4 Note 2 Note 4 Note 2 Note 4 Note 2 Note 4 Note 2 Note 4 Note 2 Note 4	Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3	82,461) ($ 115,967 115,967) ( 416,470 416,470) ( 50,188 50,188) ( 14,286 14,286) ( 47,487 47,487) ( 68,273 68,273) ( 57,146 57,146) ( 30,896 30,896) (	3% 27% 4% 94% 14% 2% 26% 1% 29% 1% 4% 4% 3% 15% 31% 86% 38%

Note 1:The collection periods of related parties are 150 days after offsetting certain receivables and payables. The collection period of third party customers is approximately 150 days after shipping date.

Note 2:The selling price for sales to related parties is based on the market value of the goods.

Note 3:The payment periods to overseas related parties are 150 days after offsetting certain receivables and payables.

The payment period to third party suppliers is approximately 150 days after shipping date.

Note 4:The purchase price on purchases from other related parties is based on the market value of the goods.

Note 5:The processing charges are based on cost plus an agreed upon percentage markup.

Table 5, Page 2

Getac Technology Corp. and Subsidiaries

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

Year ended December 31, 2020

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at Deceember31,2020	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Getac Technology (Kunshan) Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Getac Technology Corp. Getac Precision Technology (ChangShu) Co., Ltd. Getac Precision Technology Vietnam Co., Ltd. Mitac Precision Developments Limited	Getac Technology Corp. Mitac Precision Developments Limited Getac Video Solutions Inc. Mitac Precision Developments Limited Mitac Precision Developments Limited Getac Technology Corp.	The Company's indirect wholly-owned subsidiary Affiliated company The Company's second-tier subsidiary Affiliated company Affiliated company The Company's indirect wholly-owned subsidiary	2,333,873 $ 2,265,715 108,033 115,967 416,470 161,784	1.12 2.22 2.30 2.97 2.56 3.52	- $ - - - - -	- - - - - -	250,985 $ 589,535 37,862 40,240 113,920 40,510	- - - - - -

Note:The Company transaction with Getac Technology (Kunshan) Co., Ltd. is processing service, which is presented as sales, net.

Table 6, Page 1

Getac Technology Corp. and Subsidiaries

Significant inter-company transactions during the reporting period Year ended December 31, 2020

Table 7 Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)			Transaction	Expressed in thousands of NTD (Except as otherwise indicated)
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0 Getac Technology Corp. Getac Inc. 1 0 Getac Technology Corp. Getac (UK) Ltd. 1 0 Getac Technology Corp. Getac Technology GmbH 1 0 Getac Technology Corp. Mitac Technology (Kyoto) Co., Ltd. 1 0 Getac Technology Corp. Getac (SuZhou) Mobile Ltd. 1 0 Getac Technology Corp. Getac Video Solutions Inc. 1 0 Getac Technology Corp. Getac Video Solutions Inc. 1 1 Pacific Royale Ltd. Mitac Precision Developments Ltd. 3 3 Getac Technology (Kunshan) Co., Ltd. Getac Technology Corp. 2 3 Getac Technology (Kunshan) Co., Ltd. Getac Technology Corp. 2 4 Hot Link Technology Ltd. Mitac Precision Developments Ltd. 3 8 Suzhou Mitac Precision Technology Co., Ltd. Mitac Precision Developments Ltd. 3 8 Suzhou Mitac Precision Technology Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. 3 9 Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Developments Ltd. 3 9 Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Developments Ltd. 3 9 Mitac Precision Technology (Kunshan) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. 3 9 Mitac Precision Technology (Kunshan) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. 3 10 Pacific Metal Developments Ltd. Mitac Precision Developments Ltd. 3 15 Mitac Precision Developments Ltd. Getac Technology Corp. 2 15 Mitac Precision Developments Ltd. Getac Technology Corp. 2 15 Mitac Precision Developments Ltd. Getac Precision Technology (ChangShu) Co., Ltd. 3 15 Mitac Precision Developments Ltd. Mitac Technology (Kyoto) Co., Ltd. 3 15 Mitac Precision Developments Ltd. Getac Precision Technology Vietnam Co., Ltd. 3 15 Mitac Precision Developments Ltd. Mitac Precision Technology Vietnam Co., Ltd. 3 16 Getac Precision Technology Vietnam Co., Ltd. Mitac Precision Developments Ltd. 3 16 Getac Precision Technology Vietnam Co., Ltd. Mitac Precision Developments Ltd. 3 18 ACE Continental Industries Ltd. Hot Link Technology Ltd. 3 21 Mitac Precision Technology Vietnam Co., Ltd. Mitac Precision Developments Ltd. 3 21 Mitac Precision Technology Vietnam Co., Ltd. Getac Precision Technology Vietnam Co., Ltd. 3 23 Getac Precision Technology (ChangShu) Co., Ltd. Mitac Precision Developments Ltd. 3 23 Getac Precision Technology (ChangShu) Co., Ltd. Mitac Precision Developments Ltd. 3 24 Talent View Ltd. Mitac Precision Developments Ltd. 3 26 Mitac Computer (Shunde) Ltd. Getac Technology (Kunshan) Co., Ltd. 3 Note 1:The numbers filled in for the transaction company in respect of inter-company transactions are as follows: (1)Parent company is ‘0’. (2)The subsidiaries are numbered in order starting from ‘1’. Note 2:The relationship with the transaction parties are as follows: (1)The Company to the consolidated subsidiary. (2)The consolidated subsidiary to the Company. (3)The consolidated subsidiary to the consolidated subsidiary. Note 3:Ratio of asset/liability is divided by consolidated total assets, and ratio of gain/loss accounts is divided by consolidated sales rev Note 4:The collection period on balances from overseas related parties is 150 days after offsetting certain receivables and payables. The selling prices on sales to related parties are based on the market value of the goods. Note 5:Only transaction amounts exceeding $100 million or 20 percent of the Company’s capital are disclosed.				Sales Sales Sales Sales Sales Sales Accounts receivable Other receivables Sales Accounts receivable Other receivables Sales Sales Sales Accounts receivable Sales Other receivables Other receivables Sales Accounts receivable Sales Sales Other receivables Other receivables Sales Accounts receivable Other receivables Sales Sales Sales Accounts receivable Other receivables Other receivables enue.	5,073,244 $ 391,326 831,337 498,030 262,883 233,301 108,033 376,845 2,413,459 2,333,873 101,850 820,246 273,567 3,908,916 2,265,715 143,099 276,450 926,835 410,198 161,784 156,536 223,589 937,020 567,450 1,213,686 416,470 104,760 294,296 138,705 415,794 115,967 491,790 235,019	Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Operation Note 4 Note 4 Operation Note 4 Note 4 Note 4 Note 4 Note 4 Operation Operation Note 4 Note 4 Note 4 Note 4 Operation Operation Note 4 Note 4 Operation Note 4 Note 4 Note 4 Note 4 Operation Operation	18% 1% 3% 2% 1% 1% 0% 1% 9% 7% 0% 3% 1% 14% 7% 1% 1% 3% 1% 0% 1% 1% 3% 2% 4% 1% 0% 1% 0% 1% 0% 1% 1%

Table 7, Page 1

Getac Technology Corp. and Subsidiaries

Table 8

Expressed in thousands of NTD

Information on investees (not including investees in Mainland China)

Year ended December 31, 2020

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2020	as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognised by the Company for the year ended December 31,2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp.	Pacific Royale Ltd. Lian Jie Investment Co., Ltd. Getac Corporation Hot Link Technology Ltd. Waffer Technology Corp. Mitac Precision Technology Corporation Fong Guan Investments Ltd. National Aerospace Fasteners Corporation	British Virgin Islands Taiwan Taiwan British Virgin Islands Taiwan Taiwan Taiwan Taiwan	Investment holdings Investment holdings Data management, info software, e-communication product wholesale and retail Investment holdings Manufacture and sales of Magnesium alloy thixomolding Wholesale and retail of electric equipment and mold Investment holdings Manufacture, processing, agency, and sales of source control bolts and structural parts for aircraft and ship	$ 1,752,325 113,056 411,000 3,628,378 496,228 100 200,500 394,919	$ 1,752,325 113,056 11,000 3,628,378 496,228 100 200,500 394,919	54,220,869 11,305,650 41,100,000 110,776,211 40,522,289 10,000 20,050,000 20,578,174	100 49.98 100 100 23.92 100 100 39.09	$ 3,189,521 168,252 257,217 9,369,872 459,662 6 134,082 772,831	$ 197,215 5,564 33,554 1,035,646 649,834 - 5,531) ( 59,832	$ 197,215 2,781 33,554 1,035,646 14,445) ( - 5,531) ( 23,388	Note 1

Table 8, Page 1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2020	as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognised by the Company for the year ended December 31,2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Fong Guan Investments Ltd. Getac Corporation Getac Corporation Getac Corporation Getac Corporation Getac Corporation	Advanced Medical Design Co., Ltd. Lian Jie Investment Co., Ltd. II WHP Workflow Solutions, Inc. Waffer Technology Corp. Waffer Technology Corp. National Aerospace Fasteners Corporation Getac Inc. Getac (UK) Ltd. Getac Technology GmbH	Taiwan Taiwan U.S.A. Taiwan Taiwan Taiwan U.S.A. U.K Germany	Manufacturing and wholesale of medical applicances Investment holdings Software design and development Manufacture and sales of Magnesium alloy thixomolding Manufacture and sales of Magnesium alloy thixomolding Manufacture, processing, agency, and sales of source control bolts and structural parts for aircraft and ship Selling, providing technical service, repair and maintenance of computers and related products for military and industrial use Sales and repair of computer, software and relevant products Sales of computer, software and relevant products	$ 61,850 48,750 478,651 200,000 86 2 86,881 26,850 16,377	$ 61,850 48,750 478,651 200,000 86 2 86,881 26,850 16,377	2,185,000 4,875,000 314,600 20,000,000 5,000 92 1,600,000 350,000 1	48.56 48.75 80.30 11.80 - - 100 100 100	$ 55,592 64,317 478,140 196,851 72 2 317,653 29,463 53,689	($ 420) 10,308) ( 3,687 649,834 649,834 59,832 107,709 12,585 9,969	($ 204) 5,025) ( 8,735) ( - - - - - -	Note 2 Note 2 Note 2

Table 8, Page 2

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2020	as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognised by the Company for the year ended December 31,2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Getac Corporation Pacific Royale Ltd. Pacific Royale Ltd. Pacific Royale Ltd. Pacific Royale Ltd. Pacific Royale Ltd. Pacific Royale Ltd. Pacific Royale Ltd. Pacific Royale Ltd. Hot Link Technology Ltd. Hot Link Technology Ltd.	Getac Vedio Solutions Inc. Integration Technology Ltd. Master China Ltd. Talent View Ltd. Victory Star Developments Ltd. Running Power Ltd. Harbinger Ruyi Venture Limited Harbinger Ruyi II Venture Limited WHP Workflow Solutions, Inc. Master China Ltd. Pacific Metal Developments Ltd.	U.S.A. British Virgin Islands British Virgin Islands British Virgin Islands British Virgin Islands British Virgin Islands British Virgin Islands British Virgin Islands U.S.A. British Virgin Islands British Virgin Islands	Sales of smart mobile surveillance solution (including device hardware, software, cloud technologies and consulting services) Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Software design and development Investment holdings Investment holdings and trading	$ 29,640 63,395 427,367 536,601 327,580 29,490 31,520 49,320 79,381 571,813 1,287,555	$ 29,640 63,395 427,367 536,601 327,580 29,490 31,520 49,320 79,381 571,813 1,287,555	1,000,000 2,000,001 13,550,000 17,000,001 9,900,001 1,000,001 1,000,000 15,000 77,179 9,900,001 38,900,000	100 100 N/A 100 100 100 28.57 48.39 19.70 100 100	($ 260,411) 68,582 385,904 484,178 1,523,899 - 18,853 73,646 105,672 2,886,001 1,651,540	($ 102,139) 2,749) ( 272,904 6 201,813 - 1,359) ( 365 3,687 272,904 31,592	$ - - - - - - - - - - -	Note 2 Preferred stock

Table 8, Page 3

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2020	as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognised by the Company for the year ended December 31,2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Hot Link Technology Ltd. Hot Link Technology Ltd. Hot Link Technology Ltd. Hot Link Technology Ltd. Hot Link Technology Ltd. Hot Link Technology Ltd. Hot Link Technology Ltd. Getac Precision Technologies (Hong Kong) Limited ACE Continental Industries Ltd.	Mainpower International Ltd. ACE Continental Industries Ltd. Bellingham Investments Ltd. Getac Precision Techonologies (Hong Kong) Ltd. Mitac Technology Kyoto Corporation Mitac Precision Developments Ltd. Mitac Precision Developments (HK) Limited Mass Bridge Ltd. Mitac Precision Technology Vietnam Co., Ltd.	British Virgin Islands British Virgin Islands Samoa H.K Japan British Virgin Islands H.K British Virgin Islands Vietnam	Investment holdings Investment holdings and trading Investment holdings Investment holdings Import/export electronic product, provide technical consulting, maintenance and repair services Investment holdings Investment holdings and trading Investment holdings Manufacture of printer and its components, DVD, cell phone, digital camera and PCB	$ 1,147,343 648,709 143,264 714,215 32,290 599,800 598 177,529 648,709	$ 1,147,343 648,709 143,264 505,167 32,290 599,800 - 177,529 648,709	35,912,843 20,000,001 1 22,172,911 1,800 20,000,001 20,000 5,500,001 N/A	86.72 100 100 100 100 100 100 100 100	$ 1,568,628 815,731 2,161 1,692,152 24,243 754,373 570 295,149 653,786	$ 168,645 320,939 115 133,292 3,267 128,325 - 99,324 321,009	$ - - - - - - - - -	Note 3 Note 3

Table 8, Page 4

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2020	as at December 31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognised by the Company for the year ended December 31,2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Mitac Precision Technology Vietnam Co., Ltd. Mass Bridge Ltd. National Aerospace Fasteners Corporation Nafco Group Ltd.	Mitac Precision Technology (HA NOI) Co., Ltd. Getac Precision Technology Vietnam Co., Ltd. Nafco Group Ltd. Nafco Holdings Ltd.	Vietnam Vietnam British Virgin Islands British Virgin Islands	Manufacture of printer and related products Manufacture of personal computers, communication equipment, automobile electronic devices, precision punching dies, casting/forging raw parts for automobiles and motorcycles, and magnesium alloy castings Investment holdings Investment holdings	$ 15,853 177,529 405,897 405,897	$ 15,853 177,529 405,897 405,897	N/A N/A 13,000,000 13,000,000	100.00 100 100 100	$ 5,048 293,863 397,995 397,193	($ 176) 99,323 30,676) ( 30,676) (	$ - - - -

Note 1:Fong Yang Technology Corporation is renamed to Getac Corporation for the year ended December 31, 2020.

Note 2:After the reorganisation in the second quarter of 2020, Getac Corporation held 100% shares of Getac Inc., Getac (UK) Ltd., Getac Technology GmbH which were originally held by Pacific Royale Ltd., of Getac (SuZhou) Mobile Ltd. which was originally held by Integration Technology Ltd. and of Getac Video Solutions Inc. which was originally held by Running Power Ltd.

Note 3:After the reorganisation in the third quarter of 2020, Getac Precision Technologies (Hong Kong) Limited held 100% shares of Mass Bridge Ltd. which was originally held by Hot Link Techonolgy Ltd.

Table 8, Page 5

Getac Technology Corp. and Subsidiaries

Information on investments in Mainland China

Year ended December 31, 2020

Table 9

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in MainlandChina	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 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 （Note3）	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 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	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Getac Technology (Kunshan) Co., Ltd. Mitac Precision Technology (KunShan) Co., Ltd. Mitac Precision Technology (Shunde) Ltd.	Manufacture and sale of notebooks and related products Design and manufacture of computer chassis and its components, precision plastic injection mold, molding parts and molding equipment processing, sales and maintenance and repair services of own products. Design and manufacture of computer chassis and its components, precision plastic injection mold, molding parts stamping parts, molding equipment processing, design and repair services, and steel plate cutting, etc.	$ 327,580 784,629 221,750	3 3 3	$ 327,580 652,267 957,846	$ - - -	$ - - -	$ 327,580 652,267 957,846	$ 201,813 272,903 30,946	100 100 100	$ 201,813 272,903 30,946	$ 1,523,761 3,271,101 743,281	$ - - -

Table 9, Page 1

Investee in MainlandChina	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 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 （Note3）	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 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	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Suzhou Mitac Precision Technology Co., Ltd. Fon Yang Logistic (Kunshan) Ltd. Getac (SuZhou) Mobile Ltd. Getac Precision Technology (ChangShu) Co., Ltd.	Design and manufacture of computer chassis and its components, precision plastic injection mold, molding parts and molding equipment processing, sales and maintenance and repair services of own products. Agency of domestic/foreign freight transport and import/export declaration and import/export trade Design and manufacture of computers and its peripherals, commercial portable global positioning system, electronic parts, mold production equipment, whole sales of office equipment and spare parts, commission agent, import/export trade and maintenance and repair services of the products. Manufacture of magnesium alloy	$ 1,589,287 31,255 32,140 623,154	3 3 1 3	$ 112,776 - 4,781 -	- - - -	- - - -	$ 112,776 - 4,781 -	$ 201,559 ( 1,684) 602 33,971	72.56 100 100 100	$ 146,251 ( 1,684) 602 33,971	$ 1,570,028 31,372 31,110 1,365,848	$ - - 9,539 -

Table 9, Page 2

Investee in MainlandChina	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 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 （Note3）	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 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	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Suzhou Nafco Precision Ltd.	Production of components for airplane and engine use	$ 405,897	3	$ 405,897	-	-	$ 405,897	($ 30,676)	100	($ 30,676)	$ 397,193	$ -

Accumulated amount of remittance from

	Accumulated amount of remittance from
Companyname	Taiwan to Mainland China as of December31,2020	Investment amount approved by the Investment Commission of the Ministryof Economic Affairs(MOEA)	Ceiling on investments in Mainland China imposed by the InvestmentCommission of MOEA
Getac Technology Corp. Getac Corporation National Aerospace Fasteners Corporation	2,489,238 $ 405,897 4,781	4,252,325 $ 370,240 29,748	9,747,028 $ 1,123,889 168,160

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

• (1) Directly invest in a company in Mainland China.

• (2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.

• (3) Others

• (a) Through investing in Pacific Royale Ltd. and its subsidiaries in a third area, which then invest in Getac Technology (Kunshan) Co., Ltd.,

Fon Yang Logistic (Kunshan) Ltd. , and Mitac Precision Technology (KunShan) Co., Ltd.

• (b) Through investing in Hot Link Technology Ltd. and its subsidiaries in a third area, which then invest in Mitac Precision Technology (KunShan) Co., Ltd.,

Mitac Precision Technology (Shunde) Ltd., Mitac Precision Technology (SuZhou) Ltd. and Getac Precision Metallic Technologies (ChangShu) Ltd..

• (c) Through investing in a third area establish Nafco Holdings Ltd.,which then invests in Suzhou Nafco Precision Ltd.

Note 2: Recognition methods of investment income (loss) are classified into two categories as follows:

• (1) It should be indicated if the company is in the process of incorporation and have no profit or loss yet.

• (2) Basis for recognising investment income (loss) is as follows:

• (a) The financial statements of Getac Technology (KunShan) Co., Ltd., Mitac Precision Technology (KunShan) Co., Ltd., Mitac Precision Technology (SuZhou) Ltd., and Getac Precision Technology (ChangShu) Co., Ltd. were audited by their R.O.C. parent company's CPA.

• (b) The financial statements of Suzhou Nafco Precision Ltd., were audited by National Aerospace Fasteners Corporation's CPA.

• (3) The financial statements of other companies except those stated in Note 2 (2) (a) and (b) were not audited by a CPA.

• Note 3: The difference between the disclosed accumulated amount of remittance from Taiwan to Mainland China for investment approved by the Investment Commission of the Ministry of Economic Affair and the

recognised amount comes from the remitted USD1,200 thousand from Mainland China to Taiwan in 2002 and USD12,000 thousand that has not been remitted from the liquidated subsidiaries in Mainland China.

Table 9, Page 3

Getac Technology Corp. and Subsidiaries Major shareholders information Year ended December 31, 2020

Table 10

Name of major shareholders	Shares	Shares
	Name of shares held	Ownership (%)
Mitac International Corp.	190,396,939	32.31%

Table 10 , Page 1