Getac — Audit Report / Information 2021

Nov 12, 2021

GETAC HOLDINGS CORP.(FORMERLY GETAC TECHNOLOGY CORP.) AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2021 AND 2020

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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 HOLDINGS CORP.(FORMERLY GETAC TECHNOLOGY CORP.) DECEMBER 31, 2021 AND 2020 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 ~ 106
	(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	19 ~ 20
	INTERPRETATIONS
	(4) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	20 ~ 43

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Contents Page

(5)	CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND	43
	KEY SOURCES OF ASSUMPTION UNCERTAINTY
(6)	DETAILS OF SIGNIFICANT ACCOUNTS	44 ~ 85
(7)	RELATED PARTY TRANSACTIONS	86 ~ 91
(8)	PLEDGED ASSETS	91
(9)	SIGNIFICANT CONTINGENT LIABILITIES AND	91 ~ 92
	UNRECOGNISED CONTRACT COMMITMENTS
(10)	SIGNIFICANT DISASTER LOSS	92
(11)	SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE	92
(12)	OTHERS	92 ~ 102
(13)	SUPPLEMENTARY DISCLOSURES	102 ~ 103
(14)	SEGMENT INFORMATION	104 ~ 106

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GETAC HOLDINGS CORP. AND SUBSIDIARIES

Declaration of Consolidated Financial Statements of Affiliated Enterprises

In connection with the Consolidated Financial Statements of Affiliated Enterprises of Getac Holdings 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, 2021 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 Holdings 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 Holdings Corp. does not prepare a separate set of Consolidated FS of Affiliates.

Very truly yours,

GETAC HOLDINGS CORP.

By

Hwang, Ming-Hang, Chairman February 25, 2022

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR21000387

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

Opinion

We have audited the accompanying consolidated balance sheets of Getac Holdings Corp. (Formerly Getac Technology Corp.) and its subsidiaries (the “Group”) as at December 31, 2021 and 2020, 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, 2021 and 2020, 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 audits 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 for the years ended December 31, 2021 and 2020. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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.

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 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, 2021 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, 2021 and 2020 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$653,725 thousand and NT$628,896 thousand, constituting 2% and 2% of the total consolidated assets as of December 31, 2021 and 2020, respectively, and comprehensive income (loss) from these investments accounted for under the equity method amounted to NT$57,155 thousand and (NT$26,801) thousand, constituting 2% and (1%) 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 Holdings Corp. as at and for the years ended December 31, 2021 and 2020.

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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 obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk

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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.

Chien -Yu Liu[Cheng, Ya-Huei ]

For and on behalf of PricewaterhouseCoopers, Taiwan February 25, 2022

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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 HOLDINGS CORP.(FORMERLY GETAC TECHNOLOGY CORP.) AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(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)	December 31, 2021 AMOUNT % $ 5,785,111 16 13,642 - 12,827 - 11,569 - 7,402,690 21 52,510 - 165,036 - 7,593,566 21 605,065 2 21,642,016 60 870,122 2 1,152,264 3 8,849,503 25 812,647 2 211,316 1 652,860 2 712,179 2 941,479 3 14,202,370 40 $ 35,844,386 100	December 31, 2020	December 31, 2020
		AMOUNT $ 5,785,111 13,642 12,827 11,569 7,402,690 52,510 165,036 7,593,566 605,065 21,642,016 870,122 1,152,264 8,849,503 812,647 211,316 652,860 712,179 941,479 14,202,370 $ 35,844,386	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	%
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				17 - 2 - 22 - - 16 2
				59
				2 3 25 3 1 2 2 3
				41
				100

(Continued)

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GETAC HOLDINGS CORP.(FORMERLY GETAC TECHNOLOGY CORP.) AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Liabilities and Equity

December 31, 2021 December 31, 2020 Notes AMOUNT % AMOUNT % 6(15) $ 13,840 - $ 406,768 1 6(16) 3,009 - 6,930 - 6(26) and 7 596,083 2 524,360 2 - - 70 - 6,273,748 18 5,875,209 17 7 19,702 - 47,292 - 6(17) and 7 2,998,207 8 3,158,133 9 620,757 2 604,618 2 6(21) 290,000 1 189,244 1 148,372 - 134,279 - 6(18) 286,299 1 180,318 1 314,837 1 492,750 2 32,876 - 115,950 - 11,597,730 33 11,735,921 35 6(26) 832,773 2 744,519 2 6(18) 1,812,813 5 1,931,865 6 6(21) and 7 374,687 1 490,761 1 6(34) 25,278 - 75,834 - 6(34) 850,345 2 187,460 1 7 345,153 1 476,082 1 6(19) 42,218 - 219,196 1 4,283,267 11 4,125,717 12 15,880,997 44 15,861,638 47 6(22) 5,976,984 17 5,892,477 18 6(23) 3,457,936 9 3,264,236 9 6(24) 2,212,079 6 1,952,202 6 682,230 2 741,623 2 7,055,665 20 5,076,740 15 6(25) ( 1,162,423) ( 3) ( 682,231) ( 2 ) 18,222,471 51 16,245,047 48 1,740,918 5 1,748,248 5 19,963,389 56 17,993,295 53 9 $ 35,844,386 100 $ 33,854,933 100

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 HOLDINGS CORP.(FORMERLY GETAC TECHNOLOGY CORP.) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2021 AND 2020

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT FOR EARNINGS PER SHARE)

Items

Year ended December 31 2021 2020 Notes AMOUNT % AMOUNT % 6(26) and 7 $ 30,084,126 100 $ 27,837,743 100 6(6)(32)(33) ( 22,517,718) ( 75) ( 20,060,915) ( 72) 7,566,408 25 7,776,828 28 6(32)(33) ( 1,823,440) ( 6) ( 1,882,897) ( 7) ( 1,683,010) ( 5) ( 1,538,631) ( 5) ( 1,478,214) ( 5) ( 1,293,643) ( 5) ( 4,984,664) ( 16) ( 4,715,171) ( 17) 6(27) 30,498 - 54,124 - 2,612,242 9 3,115,781 11 6(28) 33,384 - 54,272 - 6(29) 267,251 1 165,632 1 6(30) 2,509,804 8 ( 23,365) - 6(31) ( 43,191) - ( 47,212) - 6(7) 70,518 - ( 24,168) - 2,837,766 9 125,159 1 5,450,008 18 3,240,940 12 6(34) ( 1,186,816) ( 4) ( 572,147) ( 2) $ 4,263,192 14 $ 2,668,793 10

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 profit and 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 HOLDINGS CORP.(FORMERLY GETAC TECHNOLOGY CORP.) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2021 AND 2020

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT FOR EARNINGS PER SHARE)

Items

Year ended December 31 2021 2020 Notes AMOUNT % AMOUNT % ($ 1,384) - ($ 2,594) - 6(3) 100,658 - 87,613 - 6(7) 131,218 1 116,074 1 277 - 711 - 230,769 1 201,804 1 6(25) ( 680,365) ( 2) ( 101,222) ( 1) 6(7) ( 4,915) - ( 5,462) - ( 685,280) ( 2) ( 106,684) ( 1) ($ 454,511) ( 1) $ 95,120 - $ 3,808,681 13 $ 2,763,913 10 $ 4,273,793 14 $ 2,577,039 10 ($ 10,601) - $ 91,754 - $ 3,823,128 13 $ 2,658,162 10 ($ 14,447) - $ 105,751 - 6(35) $ 7.20 $ 4.40 6(35) $ 7.06 $ 4.31

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 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 8360 Other comprehensive loss that may be reclassified to profit or loss 8300 Other comprehensive (loss) income for the year, net of tax 8500 Total comprehensive income for the year Profit (loss) attributable to: 8610 Owners of the parent 8620 Non-controlling interest Total comprehensive income (loss) 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 HOLDINGS CORP.(FORMERLY GETAC TECHNOLOGY CORP.) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2021 AND 2020

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

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 Change in associates and joint ventures accounted for under the equity method Exercise of employee stock options Compensation cost of share-based payment Cash dividends paid to non-controlling interest Balance at December 31, 2020 Year ended December 31, 2021 Balance at January 1, 2021 Net income (loss) for the year Other comprehensive (loss) income for the year Total comprehensive income (loss) Appropriations of 2020 earnings Legal reserve Cash dividends Reversal of special reserve Change in associates and joint ventures accounted for under the equity method Exercise of employee stock options Compensation cost of share-based payment Cash dividends paid to non-controlling interest Balance at December 31, 2021	Notes						Equityattributable to	Equityattributable to	Equityattributable to	Equityattributable to	owners of theparen	t							Non-controlling interest		Total equity
			Common stock		Capital surplus, additional paid-in capital			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(23) 6(20)(22) 6(20) 6(25) 6(24) 6(23) 6(20)(22) 6(20)		$ 5,830,022 - - - - - - - 62,455 - - $ 5,892,477 $ 5,892,477 - - - - - - - 84,507 - - $ 5,976,984		$ 3,083,657 - - - - - - 1,637 140,617 38,325 - $ 3,264,236 $ 3,264,236 - - - - - - 3,874 176,203 13,623 - $ 3,457,936		$ 1,739,599 - - - 212,603 - - - - - - $ 1,952,202 $ 1,952,202 - - - 259,877 - - - - - - $ 2,212,079		$ 412,996 - - - - 328,627 - - - - - $ 741,623 $ 741,623 - - - - - ( 59,393 ) - - - - $ 682,230		$ 4,652,080 2,577,039 ( 2,299 ) 2,574,740 ( 212,603 ) ( 328,627 ) ( 1,632,879 ) 24,029 - - - $ 5,076,740 $ 5,076,740 4,273,793 ( 1,117 ) 4,272,676 ( 259,877 ) ( 2,123,911 ) 59,393 30,644 - - - $ 7,055,665		($ 615,273 ) - ( 120,096 ) ( 120,096 ) - - - - - - - ($ 735,369 ) ($ 735,369 ) - ( 681,434 ) ( 681,434 ) - - - - - - - ($ 1,416,803 )		( $ 126,351 ) - 203,518 203,518 - - - ( 24,029 ) - - - $ 53,138 $ 53,138 - 231,886 231,886 - - - ( 30,644 ) - - - $ 254,380		$ 14,976,730 2,577,039 81,123 2,658,162 - - ( 1,632,879 ) 1,637 203,072 38,325 - $ 16,245,047 $ 16,245,047 4,273,793 ( 450,665 ) 3,823,128 - ( 2,123,911 ) - 3,874 260,710 13,623 - $ 18,222,471		$ 1,696,010 91,754 13,997 105,751 - - - - - 32,107 ( 85,620 ) $ 1,748,248 $ 1,748,248 ( 10,601 ) ( 3,846 ) ( 14,447 ) - - - - - 23,151 ( 16,034 ) $ 1,740,918		$ 16,672,740 2,668,793 95,120 2,763,913 - - ( 1,632,879 ) 1,637 203,072 70,432 ( 85,620 ) $ 17,993,295 $ 17,993,295 4,263,192 ( 454,511 ) 3,808,681 - ( 2,123,911 ) - 3,874 260,710 36,774 ( 16,034 ) $ 19,963,389

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

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GETAC HOLDINGS CORP.(FORMERLY GETAC TECHNOLOGY CORP.) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2021 AND 2020

(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 Loss (gain) on valuation of financial assets and liabilities at fair value through profit and loss Interest expense Interest income Dividend income Compensation cost of share-based payment Share of (profit) and loss of associates and joint ventures accounted for under the equity method Gain on disposal of property, plant and equipment Gain on disposal of investments Gain on modification of lease contract 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 received Dividends received Interest paid Income tax paid Net cash flows from operating activities

YearendedDecember 31 Notes 2021 2020 $ 5,450,008 $ 3,240,940 ( 171 ) ( 2,036 ) 6(8)(9)(11)(32) 1,179,580 1,118,259 6(12)(32) 35,549 38,414 6(2)(16)(30) 46,000 ( 58,273 ) 6(31) 43,191 47,212 6(28) ( 33,384 ) ( 54,272 ) 6(29) ( 13,846 ) ( 13,601 ) 6(20) 36,774 70,432 6(7) ( 70,518 ) 24,168 6(8)(30) ( 16,131 ) ( 19,374 ) 6(29) ( 2,518,624 ) - ( 7 ) ( 333 ) 2,224 ( 9,277 ) 93,301 ( 1,234,674 ) ( 37,065 ) 78,604 ( 81,024 ) ( 31,539 ) ( 2,150,365 ) ( 302,561 ) ( 184,530 ) 84,324 ( 7,767 ) ( 5,289 ) 159,976 237,042 ( 70 ) ( 2,644 ) 398,539 1,463,722 ( 27,589 ) ( 789 ) ( 132,288 ) 36,123 ( 15,319 ) 48,457 ( 177,913 ) ( 311,775 ) ( 83,072 ) 87,501 ( 161,306 ) 6,603 1,734,153 4,535,364 36,721 56,991 70,094 25,745 ( 43,580 ) ( 52,568 ) ( 686,197 ) ( 373,773 ) 1,111,191 4,191,759

(Continued)

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GETAC HOLDINGS CORP.(FORMERLY GETAC TECHNOLOGY CORP.) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2021 AND 2020

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets measured at fair value through other comprehensive income - non-current Proceeds from disposal of financial assets measured at amortized cost-current Decrease (increase) in financial assets measured at amortized cost-non-current Proceeds from disposal of subsidiaries Cash decrease due to disposal of subsidiaries Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Acquisition of intangible assets Decrease (increase) in other financial assets - non-current Net cash flows from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Increase in long-term borrowings Repayment of long-term borrowings (Decrease) increase in deposits received Repayment of lease liabilities Cash dividends paid Employee share options exercised 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 2021 2020 ($ 55,439 ) ($ 17,087 ) 21,932 4,216 534,448 476,717 9,968 ( 9,968 ) 6(36) 2,798,489 - 6(36) ( 538,219 ) - 6(36) and 7 ( 1,320,552 ) ( 1,914,142 ) 25,899 48,155 6(14) 8,643 ( 1,348 ) 6(12) ( 17,031 ) ( 12,717 ) 21,892 ( 737,586 ) 1,490,030 ( 2,163,760 ) 6(37) ( 392,928 ) ( 151,638 ) 6(37) 91,381 502,295 6(37) ( 104,452 ) ( 463,001 ) 6(37) ( 4,724 ) 10,607 6(9) ( 140,788 ) ( 152,387 ) 6(24) ( 2,123,911 ) ( 1,632,879 ) 260,710 203,072 ( 16,034 ) ( 85,620 ) ( 2,430,746 ) ( 1,769,551 ) ( 91,394 ) ( 44,593 ) 79,081 213,855 6(1) 5,706,030 5,492,175 6(1) $ 5,785,111 $ 5,706,030

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

~17~

GETAC HOLDINGS CORP.

(FORMERLY GETAC TECHNOLOGY CORP.) AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2021 AND 2020

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

1. HISTORY AND ORGANISATION

Getac Holdings Corporation (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.

To enhance market competitiveness and overall operating performance, the Company intended to transform its organizational structure. The Company split and transferred related operations (including assets, liabilities and operating) of the Company’s Rugged Solutions Business Group and Mechatronic & Energy Solutions Business Group to the Company’s wholly-owned subsidiaries, Getac Technology Corporation and Atemitech Corporation as approved by the shareholders on July 14, 2021, and the effective date for the spin-off was set on October 1, 2021. The Company, formerly named Getac Technology Corporation, was renamed as Getac Holdings Corporation as a result of its transformation as a holding company. The Company is primarily engaged in general investment.

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

These consolidated financial statements were authorized for issuance by the Board of Directors on February 25, 2022.

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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 2021 are as follows:

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Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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New standards, interpretations and amendments endorsed by the FSC follows: New Standards, Interpretations and Amendments	effective from 2021 are as Effective date by International Accounting 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’
Amendment to IFRS 16, ‘Covid-19-related rent concessions	April 1, 2021(Note)
beyond 30 June 2021’
Note：Earlier application from January 1, 2021 is allowed by FSC.

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 2022 are as follows:

follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’ Amendments to IAS 16, ‘Property, plant and equipment: proceeds before intended use’ Amendments to IAS 37, ‘Onerous contracts— cost of fulfilling a contract’ Annual improvements to IFRS Standards 2018–2020	January 1, 2022 January 1, 2022 January 1, 2022 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.

~19~

(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 -----

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
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
Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information'
Amendments to IAS 1, ‘Classification of liabilities as current or noncurrent	January 1, 2023
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 12, ‘Deferred tax related to assets and liabilities	January 1, 2023

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.

• (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

~20~

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 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.

~21~

B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary Main Business Activities Pacific Royale Ltd. Investment holdings Getac Technology Corporation (Formerly Getac Corporation) Data management, info software, e-communication product wholesale and retail Hot Link Technology Ltd. Investment holdings 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 Atemitech Corporation (Formerly Mitac Precision Technology Corporation)		December 31,2021 December 31,2020 100 100 100 100 100 100 100 100 100 100 39.09 39.09 0 80.30 Ownership (%)	December 31,2021 December 31,2020 100 100 100 100 100 100 100 100 100 100 39.09 39.09 0 80.30 Ownership (%)	Description
			December 31,2021
Getac Holdings Corp. Getac Holdings Corp. Getac Holdings Corp. Getac Holdings Corp. Getac Holdings Corp. Getac Holdings Corp. Getac Holdings Corp.			100 100 100 100 100 39.09 0	100 100 100 100 100 39.09 80.30	Note 2 Note 5 Note 1 Note 11

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Ownership (%)
Main Business December December
Name of Investor Name of Subsidiary Activities 31, 2021 31, 2020 Description
----- End of picture text -----

Name of Investor	Name of Subsidiary	Activities	31,2021	31,2020	Description
Pacific Royale Ltd.	Integration	Investment holdings	100	100
	Technology Ltd.
Pacific Royale Ltd.	Victory Star	Investment holdings	100	100
	Developments Ltd.
Pacific Royale Ltd.	Talent View Ltd.	Investment holdings	100	100
Pacific Royale Ltd.	Running Power Ltd.	Investment holdings	0	100	Note 6
Pacific Royale Ltd.	WHP Workflow	Software design and	19.7	19.7
	Solutions, Inc.	development
Victory Star	Getac Technology	Manufacture and	100	100
Developments Ltd.	(Kunshan) Co., Ltd.	sales of notebooks
		and related products
Integration	Fon Yang Logistic	Agency of	100	100
Technology Ltd.	(Kunshan) Ltd.	domestic/foreign
		freight transport and
		import/export
		declaration and
		import/export trade
Getac Technology	Getac Inc.	Selling, providing	100	100	Note 2、3
Corporation		technical service,
(Formerly Getac		repair and
Corporation)		maintenance of
		computers and
		related products for
		military and
		industrial use
Getac Technology	Getac (UK) Ltd.	Sales and repair of	100	100	Note 2、3
Corporation		computers and
(Formerly Getac		related products
Corporation)
Getac Technology	Getac Technology	Sales of computers	100	100	Note 2、3
Corporation	GmbH	and related products
(Formerly Getac
Corporation)

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Ownership (%)
Main Business December December
Name of Investor Name of Subsidiary Activities 31, 2021 31, 2020 Description
----- End of picture text -----

Name of Investor	Name of Subsidiary	Activities	31,2021	31,2020	Description
Getac Technology	Getac (SuZhou)	Sales and repair of	100	100	Note 2、3
Corporation	Mobile Ltd.	computers and its
(Formerly Getac		peripherals,
Corporation)		commercial portable
		global positioning
		system, electronic
		parts, mold
		production
		equipment and office
		equipment,
		commission agent
		and import/export
		trade
Getac Technology	Getac Video	Sales of smart	100	100	Note 2、3
Corporation	Solutions Inc.	mobile surveillance
(Formerly Getac		solution (including
Corporation)		device hardware,
		software, cloud
		technologies and
		consulting services)
Getac Technology	WHP Workflow	Software design and	80.3	0	Note 11
Corporation	Solutions, Inc.	development
(Formerly Getac
Corporation)
Hot Link Technology	Master China Ltd.	Investment holdings	100	100
Ltd.
Hot Link Technology	Pacific Metal	Investment holdings	0	100	Note 10
Ltd.	Developments Ltd.	and trading
Hot Link Technology	Mainpower	Investment holdings	86.72	86.72	Combined
Ltd.	International Ltd.				ownership
Hot Link Technology	ACE Continental	Investment holdings	100	100
Ltd.	Industries Ltd.	and trading
Hot Link Technology	Bellingham	Investment holdings	100	100
Ltd.	Investments Ltd.
Hot Link Technology	Getac	Investment holdings	100	100	Note 12
Ltd.	Precision (HK)	and trading
	Limited
	(Formerly Getac
	Precision
	Technologies (Hong
	Kong) Limited)

~24~

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Ownership (%)
Main Business December December
Name of Investor Name of Subsidiary Activities 31, 2021 31, 2020 Description
----- End of picture text -----

Name of Investor	Name of Subsidiary	Activities	31,2021	31,2020	Description
Hot Link Technology	Mitac Technology	Import/export	100	100
Ltd.	Kyoto Corporation	electronic products,
		provide technical
		consulting
		maintenance, and
		repair services
Hot Link Technology	Mitac Precision	Investment holdings	100	100
Ltd.	Developments Ltd.	and trading
Hot Link Technology	Running Power Ltd.	Investment holdings	100	0	Note 6
Ltd.
Hot Link Technology	MPT Solution(HK)	Investment holdings	100	100	Newly
Ltd.	Limited	and trading			established
	(Formerly Mitac				in 2020 (
	Precision				Note 9)
	Development(HK)
	Ltd.)
Hot Link Technology	Mitac Precision	Design and	0	100	Note 10
Ltd.	Technology (Shunde)	manufacture of
	Ltd.	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

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Ownership (%)
Main Business December December
Name of Investor Name of Subsidiary Activities 31, 2021 31, 2020 Description
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Name of Investor	Name of Subsidiary	Main Business Activities	December 31,2021 Ownersh	December 31,2020 ip (%)	Description
Master China Ltd.	Mitac Precision	Design and	100	100
	Technology	manufacture of
	(Kunshan) Co., Ltd.	computer chassis
		and its components,
		precision plastic
		injection mold,
		molding parts and
		molding equipment
		processing sales, and
		maintenance and
		repair services of
Mainpower	SuZhou Mitac	Design and	72.56	72.56	Combined
International Ltd.	Precision Technology	manufacture of			ownership
	Co., Ltd.	computer chassis
		and its components,
		precision plastic
		injection mold,
		molding parts,
		stamping parts,
		molding equipment
		processing, design
		and repair services,
		and steel plate
ACE Continental	MPT Solution	Manufacturing of	100	100	Note 7
Industries Ltd.	(Vietnam) Company	printer and its
	Limited (Formerly	components, DVD,
	Mitac Precision	cell phone, digital
	Technology Vietnam	camera, PCB etc.
	Co., Ltd.)
Getac	Getac Precision	Manufacturing of	100	100
Precision (HK)	Technology	magnesium alloy
Limited	(Changshu) Co., Ltd.
(Formerly Getac
Precision
Technologies (Hong
Kong) Limited)

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Ownership (%)
Main Business December December
Name of Investor Name of Subsidiary Activities 31, 2021 31, 2020 Description
----- End of picture text -----

Name of Investor	Name of Subsidiary	Activities	31,2021	31,2020	Description
Getac	Mass Bridge Ltd.	Investment holdings	100	100	Note 4
Precision (HK)
Limited
(Formerly Getac
Precision
Technologies (Hong
Kong) Limited)
MPT Solution	MPT Solution	Manufacturing of	100	100	Note 8
(Vietnam) Company	(Hanoi) Company	printer and related
Limited	Limited (Formerly	products
	Mitac Precision
	Technology (HANOI)
	Co., Ltd.)
Mass Bridge Ltd.	Getac Precision	Manufacturing of	100	100
	Technology Vietnam	personal computers,
	Co., Ltd.	communication
		equipment,
		automobile
		electronic devices,
		precision punching
		dies, casting/forging
		raw parts for
		automobiles and
		motorcycles, and
		magnesium alloy
		castings
Mitac Precision	MPT Solution	Forging	100	0	Newly
Technology	(Xiangcheng) Co.,	manufacturing and			established
(Kunshan) Co., Ltd.	Ltd.	sales			in the third
					quarter of
					2021.
National Aerospace	Nafco Group Ltd.	Investment holdings	100	100
Fasteners
Nafco Group Ltd.	Nafco Holdings Ltd.	Investment holdings	100	100
Nafco Holdings Ltd.	Suzhou Nafco	Production of	100	100
	Precision Ltd.	components for
		airplane and engine
		use

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

Note 2: In October 2021, Getac Corporation was renamed as Getac Technology Corporation.

Note 3: After the reorganization in the third quarter of 2020, Getac Corporation held 100% shares

~27~

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 reorganization in the second quarter of 2020, Getac Precision Technologies (Hong Kong) Limited held 100% shares of Mass Bridge Ltd. which was originally held by Hot Link Technology Ltd.

• Note 5: Mitac Precision Technology Corporation was renamed to Atemitech Corporation in the first quarter of 2021.

• Note 6: After the reorganization in the first quarter of 2021, Hot Link Technology Ltd. held 100% shares of Running Power Ltd. which was originally held by Pacific Royale Ltd.

• Note 7: Mitac Precision Technology Vietnam Co., Ltd. was renamed to MPT Solution (Vietnam) Company Limited in the second quarter of 2021.

• Note 8: Mitac Precision Technology (HA NOI) Co., Ltd. was renamed to MPT Solution (Hanoi) Company Limited in the second quarter of 2021.

• Note 9: Mitac Precision Developments (HK) Limited was renamed to MPT Solution (HK) Limited in the second quarter of 2021.

• Note 10:Hot Link Technology Ltd. disposed its held 100% equity interests of Pacific Metal Developments Ltd. and Mitac Computer (Shunde) Ltd. in the second quarter of 2021.

• Note 11:Getac Holdings Corporation spilt and transferred the equity interest of WHP Workflow Solutions, Inc. to Getac Technology Corporation on October 1, 2021.

• Note 12: In January 2022, Getac Precision Technologies (Hong Kong) Limited was renamed as Getac Precision (HK) Limited.

• 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.

~28~

F. Subsidiaries that have non-controlling interests that are material to the Group:

As of December 31, 2021 and 2020, the non-controlling interest amounted to $1,740,918 and $1,748,248, respectively. The information on non-controlling interest and respective subsidiaries is as follows:

is as follows:
			Non-controllinginterest
		December	31, 2021	December	31, 2020
Name of	Principal place		Ownership		Ownership
subsidiary	of business	Amount	(%)	Amount	(%)
Mainpower International	British Virgin	$ 258,494	13.28%	$ 240,214	13.28%
Ltd.	Islands
SuZhou Mitac Precision	China	380,194	16.33%	353,343	16.33%
Technology Co., Ltd.					(Note)
National Aerospace Fasteners	Taiwan	1,102,230	60.91%	1,154,691	60.91%
Corporation

Note: Mainpower International Ltd. owned shares of SuZhou Mitac Precision Technology Co., Ltd. as of December 31, 2021 and 2020, with a shareholding ratio of 83.67% for both years. The remaining of shares were non-controlling interests.

Summarized financial information of the subsidiaries:

Balance sheets
			Mainpower International Ltd.
		December 31, 2021		December31,2020
Current assets		$	408	$	420
Non-current assets			1,948,020		1,810,422
Current liabilities			-		-
Non-current liabilities	(		1,944)	(	2,000)
Total net assets		$	1,946,484	$	1,808,842
	SuZhou		MitacPrecision	Technology Co.,Ltd.
		December31,2021		December31,2020
Current assets		$	2,630,305	$	2,811,995
Non-current assets			1,549,186		1,324,275
Current liabilities	(		1,780,559)	(	1,928,048)
Non-current liabilities	(		70,736)	(	44,456)
Total net assets		$	2,328,196	$	2,163,766

~29~

Balance sheets

National Aerospace Fasteners Corporation

Current assets Non-current assets Current liabilities Non-current liabilities Total net assets

	December	31,2021		December	31,2020
	$	1,103,929		$	974,814
		3,201,798			3,415,476
(		675,277)	(		528,662)
(		1,856,251)	(		1,988,479)
	$	1,774,199		$	1,873,149

Statements of comprehensive income

Total net assets Statements of comprehensive income		$	1,774,199 $	1,774,199 $	1,873,149
			Mainpower International		Ltd.
			Years ended	December31,
			2021		2020
Revenue		$	-	$	-
Profit before income tax			147,317		168,645
Income tax expense			-		-
Profit for the year from continuing
operations			147,317		168,645
Loss from discontinued operations			-		-
Profit for the year			147,317		168,645
Other comprehensive (loss) income, net of tax	(		9,675)		29,490
Total comprehensive income for the year		$	137,642	$	198,135
Comprehensive income attributable to
non-controlling interest		$	18,279	$	26,312
Dividends paid to non-controlling interest		$	-	$	-

SuZhou Mitac Precision Technology Co., Ltd.

			Years ended	December31,	December31,
			2021		2020
Revenue		$	4,741,406	$	3,952,008
Profit before income tax			215,886		239,325
Income tax expense	(		39,816)	(	37,766)
Profit for the year from continuing
operations			176,070		201,559
Loss from discontinued operations			-		-
Profit for the year			176,070		201,559
Other comprehensive (loss) income , net of tax	(		11,639)		35,146
Total comprehensive income for the year		$	164,431	$	236,705
Comprehensive income attributable to
non-controlling interest		$	26,852	$	38,654
Dividends paid to non-controlling interest		$	-	$	-

~30~

Statements of comprehensive income

National Aerospace Fasteners Corporation

Revenue (Loss) profit before income tax Income tax benefit (Loss) profit for the year from continuing operations Loss from discontinued operations (Loss) profit for the year Other comprehensive (loss) income , net of tax Total comprehensive (loss) income for the year Comprehensive (loss) income attributable to non-controlling interest Dividends paid to non-controlling interest

Statements of cash flows

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

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

		Natio	nal AerospaceFasteners Corporation	nal AerospaceFasteners Corporation	nal AerospaceFasteners Corporation	nal AerospaceFasteners Corporation
			Years endedDecember31,
			2021			2020
		$	1,426,205		$	1,704,031
(			105,369)			51,066
			8,640			8,766
(			96,729)			59,832
			-			-
(			96,729)			59,832
(			1,155)			7,127
($			97,884)		$	66,959
($			59,621)		$	40,768
($			16,034)	($		85,620)
			Mainpower International			Ltd.
			Years ended December31,
			2021			2020
($			56)	($		105)
(			2,008)			-
			2,052			83
(			12)	(		22)
			418			440
	$		406		$	418
SuZhou			Mitac Precision		Technology Co.,Ltd.
			Years ended December31,
			2021			2020
	$		32,125		$	236,688
(			218,740)	(		159,845)
			282,932	(		492)
(			5,060)			15,688
			91,257			92,039
			280,512			188,473
	$		371,769		$	280,512

~31~

Statements of cash flows

Statements of cash flows
			National Aerospace FastenersCorporation
			Years ended	December31,
			2021		2020
Net cash provided by operating activities		$	73,546		526,410 $
Net cash used in investing activities	(		62,386)	(	174,907)
Net cash used in financing activities	(		36,746)	(	340,654)
Effect of exchange rates on cash and cash
equivalents			188		301
(Decrease) increase in cash and cash equivalents	(		25,398)		11,150
Cash and cash equivalents, beginning of year			135,509		124,359
Cash and cash equivalents, end of year		$	110,111		135,509 $

(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:

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     - i. Assets and liabilities for each balance sheet presented are translated at the spot exchange rate 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 realized, or are intended to be sold or consumed within the normal operating cycle;

  • (b) Assets held mainly for trading purposes;

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

  • (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to 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 amortized 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 amortized 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 recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

• D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

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

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

• (a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are 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 amortized cost

• A. Financial assets at amortized cost are those that meet all of the following criteria:

• (a) The objective of the Group’s business model is achieved by collecting contractual cash flows.

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at amortized cost are 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 amortized cost , at each reporting date, the Group recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognizes the impairment provision for lifetime ECLs.

(12)Derecognition of financial assets

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

(13)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 recognize 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 recognizes 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. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously 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 amortized cost using the interest method and recognised 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 amortized 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 recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been 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

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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 amortized 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 categorized as financial liabilities held for trading unless they are designated as hedges.

• B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are 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 realize 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.

• 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.

- (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

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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 realized 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. 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.

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(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 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.

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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 recognizes expenses for the related costs for which the grants are intended to compensate.

(33)Reorganization

Under regulations of competent authority of the R.O.C, the reorganization 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.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. The information is addressed below:

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

• None.

(2) Critical accounting estimates and assumptions

• Evaluation of inventories

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

As of December 31, 2021, the carrying amount of inventories was $7,593,566.

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6. DETAILS OF SIGNIFICANT ACCOUNTS

(1)Cash and cash equivalents

Cash on hand Checking accounts and demand deposits Time deposits Total	December31,2021 December31,2020 1,837 $ 980 $ 5,113,383 4,420,971 669,891 1,284,079 5,785,111 $ 5,706,030 $

• 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	December31,2021 - $ - 13,642 13,642 $	December31,2020
		- $
		- 63,883
		63,883 $

• A. The Group recognised net (loss) gain of $(43,840) and $53,675 on financial assets mandatorily measured at fair value through profit or loss for the years ended December 31, 2021 and 2020, respectively.

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

==> picture [465 x 66] intentionally omitted <==

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

December 31, 2021
Contract Terms
Notional Amount
Item (in thousands) Strike Rate Settlement Date
----- End of picture text -----

Item	Notional Amount (in thousands)	StrikeRate	SettlementDate
Sales of forward foreign	USD 41,000	6.4123~6.4568	2022.01.07~
exchange		(Note 1)	2022.04.07
Purchases of forward foreign	CNY 121,947	6.4124~6.433	2022.01.19~
exchange		(Note 2)	2022.03.28
Sales of forward foreign	EUR 3,700	31.337~31.428	2022.01.14~
exchange		(Note 3)	2022.02.14
Sales of forward foreign	EUR 3,701	1.1324~1.135	2022.01.14~
exchange		(Note 4)	2022.03.25
Sales of forward foreign	USD 17,000	27.695~28.018	2022.01.20~
exchange		(Note 5)	2022.03.31
Note 1: Advance booking USD to buy CNY.
Note 2: Advance booking CNY to sell USD.
Note 3: Advance booking EUR to buy TWD.
Note 4: Advance booking EUR to buy USD.
Note 5: Advance booking USD to buy TWD.

December 31, 2020

Contract Terms

Item	Notional Amount (in thousands)	StrikeRate SettlementDate 28.237~28.69 (Note 1) 2021.01.15~ 2021.03.22 6.5310~6.7332 (Note 2) 2021.01.07~ 2021.03.09 6.6515~6.9035 (Note 3) 2021.01.08~ 2021.02.26

The Group entered into forward foreign exchange contracts to hedge exchange rate risk of import and export proceeds and exchange of NTD and foreign currencies. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

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

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

December 31, 2021 December 31, 2020

Items Non-current items: Equity instruments Listed stocks Unlisted stocks Subtotal Valuation adjustments Total	461,955 $ 467,615 $ 318,899 286,335 780,854 753,950 89,268 12,333) ( 870,122 $ 741,617 $

• 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.

• 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:

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income	Years ended December31,
	2021 2020 100,658 $ 87,613 $

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

(4)Financial assets at amortized cost

others as collateral. Financial assets at amortized cost
Items Current items: Time deposits-over 3 months	December31,2021 12,827 $	December31,2020
		547,275 $

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

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

(5)Notes and accounts receivable

Notes and accounts receivable
		December31,2021			December31,2020
Notes receivable		$	11,569		$	13,793
Accounts receivable		$	7,415,479		$	7,511,136
Accounts receivable-related parties			52,510			15,446
Less: Allowance for uncollectible accounts	(		12,789)	(		12,960)
		$	7,455,200		$	7,513,622

~46~

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

Not past due 1 to 90 days 91 to 180 days Over 180 days	Accountsreceivable Notes receivable Accounts receivable Notes receivable 7,226,061 $ 11,569 $ 7,297,179 $ 13,793 $ 231,674 - 227,951 - 9,909 - 1,334 - 345 - 118 - 7,467,989 $ 11,569 $ 7,526,582 $ 13,793 $ December 31, 2021 December 31, 2020

The above ageing analysis was based on past due date.

• B. As of December 31, 2021 and 2020, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2020, the balance of receivables from contracts with customers amounted to $6,375,028.

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

• D. As at December 31, 2021 and 2020, 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 $11,569 and $13,793, and accounts receivable were $7,467,989 and $7,526,582, respectively.

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

• (6)Inventories

Inventories
Raw materials Work in process Finished goods In-transit inventories Total	December31,2021 4,081,924 $ 379,737 2,878,716 253,189 7,593,566 $	December31,2020
		3,430,234 $ 400,045 1,403,669 209,253
		5,443,201 $

The cost of inventories recognised as expense for the year:

Cost of goods sold Loss on decline in market price and obsolete and slow-moving inventories Others	Years endedDecember31,	Years endedDecember31,
	2021 22,235,124 $ 260,923 21,671 22,517,718 $	2020
		19,926,037 $ 106,465 28,413
		20,060,915 $

~47~

(7)Investments accounted for under the equity method

Investments accounted for under the equity method
Waffer Technology Corp. Lian Jie Investment Co., Ltd. Advanced Medical Design Lian Jie Investment Co., Ltd II. Harbinger Ruyi II Harbinger Ruyi	December31,2021 653,725 $ 248,023 64,922 59,834 107,375 18,385 1,152,264 $	December31,2020 628,896 $ 168,252 55,592 64,317 73,647 18,853
		1,009,557 $

A. Associates:

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

Company name	Principal place of business	Shareholdingratio	Shareholdingratio	Method of measurement
		December 31, 2021 35.00% 49.98%	December 31,2020 35.74% 49.98%
Waffer Technology Corp. Lian Jie Investment Co., Ltd.	Taiwan Taiwan			Equity method Equity method

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

Balance sheets

Balance sheets
			Waffer Technology		Corp.
		December31,2021		December31,2020
Current assets		$	2,525,136	$	2,392,265
Non-current assets			2,601,481		2,067,587
Current liabilities	(		2,553,473)	(	1,969,383)
Non-current liabilities	(		102,788)	(	112,868)
Total net assets		$	2,470,356	$	2,377,601
Share in associate's net assets		$	866,204	$	850,388
Unrealised gain from Waffer Technology Corp.
selling land to the Company	(		245,526)	(	254,539)
Goodwill			33,047		33,047
Carrying amount of the associate		$	653,725	$	628,896

~48~

			LianJieInvestment Co.,Ltd.	LianJieInvestment Co.,Ltd.	LianJieInvestment Co.,Ltd.	LianJieInvestment Co.,Ltd.	LianJieInvestment Co.,Ltd.	LianJieInvestment Co.,Ltd.
			December	31,2021				December31,2020
Current assets			$	135,613				8,988 $
Non-current assets				368,440				327,721
Current liabilities			(	7,818)			(	80)
Non-current liabilities					-			-
Total net assets			$	496,235				336,629 $
Share in associate's net assets			$	248,023				168,252 $
Carrying amount of the associate			$	248,023				168,252 $
Statements of comprehensive income
			Waffer Technology Corp.
			Years ended		December31,
			2021					2020
Revenue		$	2,824,307			$		1,997,427
Profit for the year from
continuing operations		$	164,735			$		649,834
Other comprehensive loss, net
of tax	(			19,457)	(			14,768)
Total comprehensive income		$	145,278			$		635,066
Dividends received from associates		$		36,201		$		-
			Lian Jie Investment Co., Ltd.
			Years ended		December 31,
			2021					2020
Revenue		$		5,709		$		5,702
Profit for the year from
continuing operations		$		6,042		$		5,565
Other comprehensive income , net
of tax				24,988				115,984
Total comprehensive income		$		31,030		$		121,549
Dividends received from associates		$		7,665		$		1,913

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

As of December 31, 2021 and 2020, the carrying amount of the Group’s individually immaterial associates amounted to $250,516 and $212,409, respectively.

Profit (loss) for the year from continuing operations Other comprehensive income , net of tax Total comprehensive income	2021 2020 8,414 $ 11,724) ($ 10,013 104,949 18,427 $ 93,225 $ Years endedDecember31,

~49~

• (d) The Group’s material associate, Waffer Technology Corp. has quoted market prices. As of December 31, 2021 and 2020, the fair value was $2,348,459 and $1,153,045, respectively.

• (e) The Group is the single largest shareholder of Waffer Technology Corp. with a 35% 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 force, but only has significant influence, over the investee.

• B. The share of gain (loss) of associates and joint ventures accounted for under the equity method were $70,518 and ($24,168), respectively, and other comprehensive gain $126,303 and $110,612 were recognised for the years ended December 31, 2021 and 2020, respectively.

~50~

(8)Property, plant and equipment

2021

			2021
Land At January 1 Cost 2,266,704 $ Accumulated depreciation and impairment 60,803) ( 2,205,901 $ Opening net book amount as at January 1 2,205,901 $ Additions - Disposals - Transfers - 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 60,803) ( 2,205,901 $	Buildings and structures	Machinery and equipment	Office equipment Other equipment 234,323 $ 3,546,809 $ 165,740) ( 2,314,361) ( 68,583 $ 1,232,448 $ 68,583 $ 1,232,448 $ 34,984 377,959 2,005) ( 7,523) ( 539 141,237 30,374) ( 445,094) ( 1,700) ( 9,287) ( 70,027 $ 1,289,740 $ 245,716 $ 3,866,760 $ 175,689) ( 2,577,020) ( 70,027 $ 1,289,740 $
	4,416,692 $ 1,336,263) ( 3,080,429 $ 3,080,429 $ 23,339 - 1,473 156,849) ( 21,794) ( 2,926,598 $ 4,406,229 $ 1,479,631) ( 2,926,598 $	5,468,513 $ 3,669,283) ( 1,799,230 $ 1,799,230 $ 349,251 - 27,823 343,546) ( 12,992) ( 1,819,766 $ 5,630,904 $ 3,811,138) ( 1,819,766 $

~51~

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 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 $				Total
		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 $

A. The capitalized interest were $0 and $1,606 for the years ended December 31, 2021 and 2020, respectively.

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

~52~

－ (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 Total Land Buildings Machinery and equipment Business vehicles Office equipment	December 31, 2021 December 31, 2020 Carrying amount Carrying amount 325,311 $ 337,229 $ 474,009 644,180 4,577 6,811 4,950 5,248 3,800 3,643 812,647 $ 997,111 $ Years ended December 31,	December 31, 2021 December 31, 2020 Carrying amount Carrying amount 325,311 $ 337,229 $ 474,009 644,180 4,577 6,811 4,950 5,248 3,800 3,643 812,647 $ 997,111 $ Years ended December 31,
	2021 Depreciationcharge 9,453 $ 163,909 2,197 3,965 1,262 180,786 $	2020 Depreciationcharge 11,583 $ 144,063 2,168 4,364 1,214 163,392 $

• C. For the years ended December 31, 2021 and 2020, the additions to right-of-use assets were $84,987 and $253,157, respectively.

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

and $253,157, respectively. The information on profit and loss accounts relating to	lease contracts is as follows:	lease contracts is as follows:
Items affecting profit or loss Interest expense on lease liabilities	Years endedDecember31,
	2021 13,168 $	2020
		9,672 $

• E. For years ended December 31, 2021 and 2020, the Group’s total cash outflow for leases were $153,956 and $162,059, 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.

~53~

(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, 2021 and 2020, the Group recognised rental income in the amounts of $64,450 and $116,024, respectively, based on the operating lease agreement, which does not include variable lease payments.

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

2021 2022 2023 Total	December31,2021 December31,2020 - $ 111,107 $ 576 115,105 528 83,839 1,104 $ 310,051 $

(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 $ Disposal of subsidiaries - 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 $		2021
		Land-use rights
		177,388 $ 69,271) ( 108,117 $ 108,117 $ 96,355) ( 1,775) ( 1,263) ( 8,724 $ 13,334 $ 4,610) ( 8,724 $

~54~

					2020	2020	2020	2020
					Land-use		Buildings and
			Land		rights			Structures		Total
At January 1
Cost		$	19,866	$	-		$	1,074,985	$	1,094,851
Accumulated depreciation and
impairment	(		2,611)		-	(		503,975)	(	506,586)
		$	17,255	$	-		$	571,010	$	588,265
Opening net book amount as at
January 1		$	17,255	$	-		$	571,010	$	588,265
Reclassifications			-		105,389	(		182,570)	(	77,181)
Depreciation charge			-	(	1,919)	(		34,988)	(	36,907)
Net exchange differences			-		4,647	(		1,736)		2,911
December 31		$	17,255	$	108,117		$	351,716	$	477,088
At December 31
Cost		$	19,866	$	177,388		$	886,791	$	1,084,045
Accumulated depreciation and
impairment	(		2,611)	(	69,271)	(		535,075)	(	606,957)
		$	17,255	$	108,117		$	351,716	$	477,088

• 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,
		2021		2020
Rental income from investment property	$	64,450	$	116,024
Direct operating expenses arising from
the investment property that generated
rental income in the year	($	33,952)	($	61,900)

• B. The fair value of investment property held by the Group were $222,744 and $775,474 as of December 31, 2021 and 2020, respectively. The fair values as of December 31, 2021 and 2020 were valued by independent appraisers. Valuations were made using the comparative method, income approach and cost approach which is categorized within Level 3 in the fair value hierarchy. Key assumption is in the following table:

December 31, 2021 December 31, 2020 Capitalization rate 1.23% 1.43%

~55~

(12)Intangible assets

At January 1 Cost Accumulated amortisation and impairment 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 and impairment	Computer software Goodwill Acquired special technology 156,143 $ 592,997 $ 101,357 $ 126,147) ( - 42,062) ( 29,996 $ 592,997 $ 59,295 $ 29,996 $ 592,997 $ 59,295 $ 16,589 - - 20,648) ( - 14,565) ( 32) ( 15,130) ( 290) ( 25,905 $ 577,867 $ 44,440 $ 164,313 $ 577,867 $ 100,809 $ 138,408) ( - 56,369) ( 25,905 $ 577,867 $ 44,440 $ 2021	Patent Total 6,650 $ 857,147 $ 1,978) ( 170,187) ( 4,672 $ 686,960 $ 4,672 $ 686,960 $ 442 17,031 336) ( 35,549) ( 130) ( 15,582) ( 4,648 $ 652,860 $ 6,902 $ 849,891 $ 2,254) ( 197,031) ( 4,648 $ 652,860 $

~56~

At January 1 Cost Accumulated amortisation and impairment 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 and impairment	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 $

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

Operating costs Selling expenses Administrative expenses Research and development expenses	Years endedDecember31,	Years endedDecember31,
	2021 2,803 $ 800 10,138 21,808 35,549 $	2020
		6,139 $ 756 9,639 21,880
		38,414 $

~57~

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

Goodwill Goodwill		December31,2021	December31,2021
	Electronic parts 493,234 $	Structure parts Aerospacefasteners 30,259 $ 54,374 $ December31,2020		Total
				577,867 $
	Electronic parts 507,489 $	Structure parts 31,134 $	Aerospacefasteners 54,374 $	Total
				592,997 $

(13)Impairment of non-financial assets

Impairment testing of goodwill is conducted at annual financial reporting date. 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.

The recoverable value calculated by the Group based on the value in use exceeds the carrying value,

so the goodwill has not impaired. The main assumptions used to calculate the value in use are as follows:

• 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 units.

(14)Other non-current assets

units. Other non-current assets
		December	31,2021		December	31,2020
Other financial assets - non-current		$	715,695		$	737,586
Guarantee deposits paid			40,820			49,463
Pledged deposits			1,000			10,968
Prepayment on machinery and equipment			144,443			140,786
Others			39,521			31,756
Overdue receivables			19,849			19,849
Allowance for uncollectible
accounts - overdue receivables	(		19,849)	(		19,849)
		$	941,479		$	970,559

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

~58~

(15)Short-term borrowings

Type of borrowings Unsecured bank loans Type of borrowings Unsecured bank loans	December31,2021 13,840 $ December 31, 2020 406,768 $	Interest rate range 0.6%~0.86% Interestraterange 0.56%~0.75%

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

Current items Financial liabilities held for trading Non-hedging derivatives Valuation adjustment Total	December31,2021 - $ - 3,009 3,009 $	December31,2020 - $ - 6,930
		6,930 $

• A. The Group recognised net (loss) gain of ($2,160) and $4,598 on financial liabilities held for trading for years ended December 31, 2021 and 2020, respectively.

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

December 31, 2021

Contract Terms

		December31,2021 Contract	Terms
Item Sales of forward foreign exchange Sales of forward foreign exchange Sales of forward foreign exchange Sales of forward foreign exchange Purchase of forward foreign exchange Foreign exchange swaps	Notional Amount (inthousands)	StrikeRate 31.205 (Note 1) 1.1128~1.1319 (Note 2) 1.3198~1.324 (Note 3) 27.679 (Note 4) 6.4139 (Note 5) 27.803~27.812 (Note 6)	SettlementDate
	EUR 1,000 EUR 5,000 GBP 1,200 USD 1,000 CNY 6,414 USD 12,000		2022.01.06 2022.01.19~2022.04.08 2022.02.25~2022.03.25 2022.01.19 2022.04.08 2022.03.17~2022.03.22

Note 1: Advance booking EUR to buy TWD. Note 2: Advance booking EUR to buy USD. Note 3: Advance booking GBP to buy USD. Note 4: Advance booking USD to buy TWD. Note 5: Advance booking CNY to sell USD. Note 6: Advance booking USD to sell TWD.

~59~

		December31,2020
		Contract	Terms
	Notional Amount
Item	(inthousands)	StrikeRate	SettlementDate
Sales of forward foreign exchange	EUR 5,100	1.19255~1.2233 (Note 1)	2021.01.28~2021.02.24
Sales of forward foreign exchange	EUR 5,800	33.617~34.315 (Note 2)	2021.01.06~2021.02.09
Sales of forward foreign exchange	USD 5,000	28.089~28.09 (Note 3)	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.

The Group signed forward exchange and foreign exchange swaps to hedge exchange rate risk of import and export proceeds and exchange of NTD and foreign currencies. However, the Group did not apply hedge accounting.

(17)Other payables

did not apply hedge accounting. Other payables
Salary, bonus and remuneration payable Payables on machinery and equipment Others Total	December 31, 2021 1,335,683 $ 64,293 1,598,231 2,998,207 $	December 31, 2020
		1,505,526 $ 87,747 1,564,860
		3,158,133 $

~60~

- (18)Long term borrowings

Type of borrowings	Borrowing period and repayment term	Collateral	December31,2021	December31,2021	December31,2021
Long-term bank
borrowings
Secured borrowings	Repayable monthly until	Land, Buildings		$	776,334
	December 2036
Secured borrowings	Repayable monthly until	Land, Buildings			129,915
	September 2033
Secured borrowings	Repayable monthly until	Land, Buildings			218,640
	December 2029
Secured borrowings	Repayable monthly until	Land, Buildings			40,000
	January 2028
Secured borrowings	Repayable monthly until	Land, Buildings			134,418
	May 2025
Secured borrowings	Repayable monthly until	Land, Buildings			253,990
	April 2025
Secured borrowings	Repayable monthly until September 2026	Machinery and equipment			163,153
Secured borrowings	Repayable monthly until November 2026	Machinery and equipment			57,660
Unsecured borrowings	Repayable monthly until October 2024				310,002
Unsecured borrowings	Repayable every 3 months until
	November 2022				5,000
Unsecured borrowings	Repayable every 3 months until
	September 2023				10,000
Subtotal					2,099,112
Less: Current portion			(		286,299)
			$		1,812,813
Interest rate range					0.5%~1.2%

~61~

Type of borrowings Borrowing period and repayment term Collateral December 31, 2020

Long-term bank
borrowings
Secured borrowings	Repayable monthly until	Land, Buildings		$	823,292
	December 2036
Secured borrowings	Repayable monthly until	Land, Buildings			132,298
	September 2033
Secured borrowings	Repayable monthly until	Land, Buildings			180,000
	December 2029
Secured borrowings	Repayable monthly until	Land, Buildings			142,122
	May 2025
Secured borrowings	Repayable monthly until	Land, Buildings			268,846
	April 2025
Secured borrowings	Repayable monthly until September 2026	Machinery and equipment			162,356
Secured borrowings	Repayable monthly until November 2026	Machinery and equipment			57,380
Unsecured borrowings	Repayable monthly until October 2024				335,889
Unsecured borrowings	Repayable every 3 months until
	November 2021				10,000
Subtotal					2,112,183
Less: Current portion			(		180,318)
			$		1,931,865
Interest rate range					0.5%~1.23%

~62~

(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 Company reached an agreement with employees whose pensions contributed under defined benefit pension plans to settle service years of defined benefit pension plans in accordance with the Labor Standards Act and the Labor Pension Act. No pension under defined benefit pension plans would be contributed after settling service years of defined benefit pension plans on July 1, 2021. The collection of overpayments of pensions after settling employees’ service years is currently being processed by the Department of Labor, Taoyuan City Government.

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

The Company
Present value of defined benefit obligations Fair value of plan assets Net defined benefit liability		December31,2021	December31,2020
		- $ 2,047 2,047 $	276,983) ($ 112,199 164,784) ($

• b. The subsidiary, National Aerospace Fasteners Corporation

Present value of defined benefit obligations Fair value of plan assets Net defined benefit liability	December31,2021	December31,2020
	44,733) ($ 48,547 3,814 $	44,099) ($ 47,027 2,928 $

~63~

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

a. The Company

a. The Company
At January 1 Current service cost Interest (expense) income Gain on repayment Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in demographic 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 276,983) ($ 385) ( 1,039) ( 43,199 235,208) ( - 7,634) ( 5,194 2,440) ( - 237,648 - $			Fair value of plan assets 2021	Net defined benefitliability
			112,199 $ - 437 - 112,636 1,056 - - 1,056 100,008 211,653) ( 2,047 $ 2020		164,784) ($ 385) ( 602) ( 43,199 122,572) ( 1,056 7,634) ( 5,194 1,384) ( 100,008 25,995 2,047 $
		Present value of defined benefit obligations		Fair value of plan assets		Net defined benefitliability
	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 $		163,351) ($ 501) ( 1,213) ( 165,065) ( 3,645 427) ( 7,167) ( 395 3,554) ( 3,121 714 164,784) ($

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b. The subsidiary, National Aerospace Fasteners Corporation

At January 1 Current service cost Interest (expense) income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in financial assumptions Experience adjustments Pension fund contribution At December 31 At January 1 Current service cost Interest (expense) income Remeasurements: Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31				2021
	Present value of defined benefit obligations			Fair value of plan assets	Net defined benefitliability
	44,099) ($ 717) ( 132) ( 44,948) ( 45) ( 1,362 1,102) ( 215 - 44,733) ($			47,027 $ - 141 47,168 - - 712 712 667 48,547 $ 2020	2,928 $ 717) ( 9 2,220 45) ( 1,362 390) ( 927 667 3,814 $
		Present value of defined benefit obligations		Fair value of plan assets		Net defined benefit liability
	43,414) ($ 660) ( 304) ( 44,378) ( 944) ( 397 547) ( - 826 44,099) ($		44,708 $ - 313 45,021 - 1,507 1,507 1,325 826) ( 47,027 $		1,294 $ 660) ( 9 643 944) ( 1,904 960 1,325 - 2,928 $

(e) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization

~65~

products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings 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 is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2021 and 2020 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

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

• a. The Company

The Company
Discount rate Future salary increases	Year ended December 31,2021	Year ended December 31,2020 0.50%
	0.50%
	3.00%	3.00%

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b. The subsidiary, National Aerospace Fasteners Corporation

Year ended December Year ended December 31, 2021 31, 2020 Discount rate 0.50% 0.30% Future salary increases 3.00% 2.75%

Future mortality rate was estimated based on the 5th and 6th Taiwan Standard Ordinary Experience Mortality Table for the years ended December 31, 2021 and 2020.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

a. The Company

Discount rate Future salary increases Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%

December 31, 2021

==> picture [433 x 104] intentionally omitted <==

b. The subsidiary, National Aerospace Fasteners Corporation

Discount rate Future salary increases Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%

==> picture [433 x 121] intentionally omitted <==

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.

(g) Expected contributions to the defined benefit pension plans of the subsidiary, National Aerospace Fasteners Corporation for the year ending December 31, 2022 amount is $6,670.

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• 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, 2021 and 2020 were $54,855 and $51,971, 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 subsidiaries have no further obligations beyond the monthly contributions. The pension costs under the defined contribution pension plan for the years ended December 31, 2021 and 2020 were $133,916 and $81,680, 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, 2021 and 2020 were $15,731 and$13,749, respectively.

(20)Share-based payment

• A. As of December 31, 2021 and 2020, the Company’s share-based payment arrangements were as follows:

follows:
Type of arrangement	Grant date	Quantity granted (in thousands of shares)	Contract period	Vestingconditions
Seventh employee stock options Eighth employee stock options	July 26, 2017 October 11, 2018	20,000 20,000	6 years 6 years	2 years’ service vested 50% 3 years’ service vested 75% 4 years’ service vested 100% 2 years’ service vested 50% 3 years’ service vested 75% 4 years’ service vested 100%

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

• (a) Details of seventh employee stock options for the years ended December 31, 2021 and 2020 are set forth below:

are set forth below:
		2021				2020
				Weighted-				Weighted-
	No. of options		average exercise		No. of options		average exercise
	(	in thousands		price	(	in thousands		price
		of shares)	(in NT dollars)			of shares)	(in NT dollars)
Options outstanding at
January 1		11,147	$	32.70		15,423	$	34.60
Options exercised	(	4,736)		31.30	(	4,051)		33.17
Options forfeited	(	93)		-	(	225)		-
Options outstanding at
December 31		6,318		30.80		11,147		32.70
Options exercisable at
December 31		6,318		30.80		6,539		32.70

• (b) Information on the seventh employee stock options outstanding as of December 31, 2021 and 2020 is as follows:

2020 is as follows:
December 31, 2021 Expected weighted average residual years 1.57 years	December31,2020
	2.57 years

(c) The Company estimated the fair value of seventh 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:

under the Black-Scholes option model. The estimation of fair value are as follows:	weighted-average parameters used in the
	Grant date-July 26, 2018
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

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• C. 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, 2021 and 2020 are set forth below:

		2021	2021			2020	2020
				Weighted				Weighted
		No. of options		average		No. of options		average
		( in thousands	exercise price			( in thousands	exercise price
		ofshares)	(in	NTdollars)		ofshares)	(in	NTdollars)
Options outstanding
at January 1		16,230	$	31.30		19,470	$	33.20
Options exercised	(	3,714)		30.28	(	2,195)		31.30
Options forfeited	(	400)		-	(	1,045)		-
Options outstanding at
December 31		12,116		29.50		16,230		31.30
Options exercisable at
December 31		7,610		29.50		7,018		31.30

• (b) Information on the eighth employee stock options outstanding as of December 31, 2021 and 2020 is as follows:

020 is as follows:
December 31, 2021 Expected weighted average residual years 2.78 years	December31,2020
	3.78 years

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

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• D. For the years ended December 31, 2021 and 2020, the share-based payment arrangements of the subsidiary, National Aerospace Fastener Corporation, are as follows:

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

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

• (a)Details of the share-based payment arrangements for the years ended December 31, 2021 and 2020 are as follows:

	2021	2021		2020	2020
			Weighted-			Weighted-
			average			average
		exercise price			exercise price
	No. of options		(indollars)	No. of options		(indollars)
Options outstanding
at January 1	3,262	$	87.40	3,560	$	91.40
Options forfeited	320) (		87.40	298) (		91.40
Options outstanding
at December 31	2,942		87.40	3,262		91.40
Options exercisable
at December 31	1,471		87.40	-		-

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

follows:
Issue date approved	Expirydate		No. of shares Exercise price (in thousands) (in dollars) 2,942 $ 87.4 December31,2021 No. of shares Exercise price (in thousands) (in dollars) 3,262 $ 87.4 December31,2020
			No. of shares (in thousands)
December 13, 2019 Issue date approved	December 13, 2025 Expirydate
			No. of shares (in thousands)
December 13, 2019	December 13, 2025		3,262	$ 87.4

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(c)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 informationaisaasafollows:

Type of arrangement Grant date Employee stock options December 13, 2019	Stock price Exercise price 91.4 91.4	Expected price volatility Expected option life Expected dividends 31.90%~ 34.04% (Note) 4~5 years -	Risk- free interest rate Fair value per unit 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.

• E. Expenses incurred on the Group’s share-based payment transactions with equity-settled for the years ended December 31, 2021 and 2020 were $36,774 and $70,432, respectively.

(21)Provisions (warranty)

Provisions (warranty)	Provisions (warranty)
Analysis of total provisions: At January 1 $ Additional provisions Used during the year ( At December 31 $ Current Non-current		2021 2020 680,006 631,548 $ 291,678 216,780 306,997) 168,322) ( 664,687 680,006 $ December31,2021 December31,2020 290,000 $ 189,244 $ 374,687 $ 490,762 $
	$
		290,000 $		189,244 $
		374,687 $		490,762 $

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, 2021, 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 $5,976,984 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

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

	follows:	follows:
(23)	Capital surplus At January 1 Employee stock options exercised At December 31 Sharepremium At January 1 3,000,546 $ Employee stock options exercised 231,113 Compensation cost of employee stock options - Recognition of changes in equities of associates - At December 31 3,231,659 $ 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	2021 2020 589,248 583,002 8,451 6,246 597,699 589,248 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 2021
				Changes in net equity of associates and joint ventures accounted for under the equity method 2021
			113,722 $ - - - 113,722 $	16,544 $ - - 3,874 20,418 $ 2020	24,666 $ - - - 24,666 $	108,758 $ 54,910) ( 13,623 - 67,471 $ Employee stock options
		Sharepremium 2,818,696 $ 181,850 - - 3,000,546 $	Difference between consideration and carrying amount of subsidiaries acquired or disposed	Changes in net equity of associates and joint ventures accounted for under the equity method	Recognition of changes in the subsidiary’s equity
			113,722 $ - - - 113,722 $	14,907 $ - - 1,637 16,544 $	24,666 $ - - - 24,666 $	111,666 $ 41,233) ( 38,325 - 108,758 $

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

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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 be 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 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.

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• D. The appropriations of 2021 and 2020 earnings had been resolved at the Board of Directors’ and shareholders’ meeting on February 25, 2022 and July 14, 2021, respectively. Details are summarized below:

summarized below:
	2021						2020
								Dividends per
		Dividends per							share (in
	Amount	share (indollars)				Amount		dollars)(Note)
Legal reserve	430,332 $				$	259,877
Special reserve	480,193				(	59,393)
Cash dividends	2,154,075	$	3.6			2,123,911		$	3.58708898
Total	3,064,600 $				$	2,324,395
Other equity items
						2021
		Unrealised gain
			(loss) on			Currency
		valuation				translation			Total
At January 1		$	53,138	($		735,369)		($	682,231)
Revaluation
–Group			100,658				-		100,658
–Associates			131,228				-		131,228
Currency translation differences:
–Group			-	(		676,519)		(	676,519)
–Associates			-	(		4,915)		(	4,915)
Disposal of financial assets at
fair value through other
comprehensive income
–Associates	(		30,644)				-	(	30,644)
At December 31		$	254,380	($		1,416,803)		($	1,162,423)

(25)Other equity items

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2020

(26)

Operating revenue A. Disaggregation of revenue from contracts The Group’s revenue is subdivided into the following major business units: B. Contract liabilities The Group has recognised the following revenue-related contract liabilities: Unrealised gain (loss) on valuation Currency translation Total At January 1 126,351) ($ 615,273) ($ 741,624) ($ Revaluation –Group 87,613 - 87,613 –Associates 115,905 - 115,905 Currency translation differences: –Group - 114,634) ( 114,634) ( –Associates - 5,462) ( 5,462) ( Disposal of financial assets at fair value through other comprehensive income –Associates 24,029) ( - 24,029) ( At December 31 53,138 $ 735,369) ($ 682,231) ($ 2021 2020 Revenue from contracts with customers 30,084,126 $ 27,837,743 $ Years ended December31, 2021 Electronic parts Structure parts Aerospace fasteners Revenue from external customer contracts 13,527,185 $ 15,130,736 $ 1,426,205 $ 30,084,126 $ Total 2020 Electronic parts Structure parts Aerospace fasteners Revenue from external customer contracts 12,811,509 $ 13,322,203 $ 1,704,031 $ 27,837,743 $ Total December31,2021 December31,2020 January 1, 2020 Contract liabilities 1,428,856 $ 1,268,879 $ 1,031,837 $

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

year.
	Years ended	December 31,
	2021	2020
Revenue recognised that was included in
the contract liability balance at the
beginning of the year	432,218 $	295,741 $

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,
			2021			2020
Other income
Rental income from investment property		$	64,450		$	116,024
Other expenses
Depreciation charges on investment
property	(		22,931)	(		34,988)
Operating expense on investment property	(		11,021)	(		26,912)
Total		$	30,498		$	54,124

(28)Interest income

Interest income
Other income Interest income: Interest income from bank deposits Other interest income Other income: Dividend income Government grants revenue Other income - others	Years ended December31,
	2021 2020 33,283 $ 54,144 $ 101 128 33,384 $ 54,272 $ Years endedDecember31,	2020
	2021 13,846 $ 142,408 110,997 267,251 $	2020
		13,601 $ 61,691 90,340
		165,632 $

(29)Other income

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(30)Other gains and losses

Gain on disposal of property, plant and equipment Net currency exchange gain (loss) Net (loss) gain on financial assets at fair value through profit or loss Gain on disposal of investments Miscellaneous disbursements

		Years ended	December31,	December31,
		2021		2020
	$	16,131		$	19,374
		30,154	(		89,843)
(		46,000)			58,273
		2,518,624			-
(		9,105)	(		11,169)
	$	2,509,804	($		23,365)

(31)Finance costs

Interest expense: Bank loan Leased liabilities

Years ended December31,	Years ended December31,
2021 30,023 $ 13,168 43,191 $	2020
	37,540 $ 9,672
	47,212 $

(32)Expenses by nature

Expenses by nature
Employee benefit expense Employee benefit expense Depreciation charges Amortisation charges Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses	Years ended December 31,
	2021 2020 6,690,655 $ 6,124,299 $ 1,179,580 1,118,259 35,549 38,414 7,905,784 $ 7,280,972 $ Years endedDecember31,	2020
		6,124,299 $ 1,118,259 38,414
		7,280,972 $
	2021 5,643,608 $ 443,890 162,768 440,389 6,690,655 $	2020
		5,270,967 $ 412,479 149,765 291,088
		6,124,299 $

(33)Employee benefit expense

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’ 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.

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• B. For the years ended December 31, 2021 and 2020, employees’ compensation were accrued at $53,600 and $156,756, respectively; while directors’ and supervisors’ remuneration were accrued at $6,200 and $5,300, respectively. The aforementioned amounts were recognised in salary expenses. For the years ended December 31, 2021 and 2020, the employees’ compensation and directors’ remuneration were recognised based on the fixed amount and ratio of the profit accrued in the period.

• On February 25, 2022, the Board of Directors of the Company resolved employees’ compensation in the amount of $53,600, and directors’ remuneration in the amount of $7,200 for the year ended December 31, 2021. For directors’ remuneration, the difference of $1,000 between the amount resolved by the Board of Directors and the amount recognised in the 2021 financial statements will be adjusted in the profit or loss of 2022.

Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors is available at the “Market Observation Post System” website of the Taiwan Stock Exchange.

(34)Income tax

• A. Income tax expense

			Years ended	December 31,	December 31,	December 31,
			2021			2020
Current tax:
Current tax on profits for the year		$	685,489		$	732,710
Tax on unappropriated earnings			-			7,774
Prior year income tax over estimation	(		2,911)	(		75,048)
Total current tax		$	682,578		$	665,436
Deferred tax:
Origination and reversal of temporary
differences			504,238	(		83,056)
Impact of change in tax rate			-	(		10,233)
Total deferred tax		$	504,238	($		93,289)
Income tax expense		$	1,186,816		$	572,147

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B. Reconciliation between income tax expense and accounting profit

			Years ended	December31,	December31,
			2021		2020
Tax calculated based on profit before
tax and statutory tax rate (note)		$	1,313,852	$	921,537
Tax exempt income by tax
regulation	(		88,086)	(	20,283)
Expenses disallowed by tax
regulation			6,197		123
Temporary differences not recognised
as deferred tax liabilities	(		691,593)	(	245,187)
Tax on undistributed earnings			-		7,774
Change in assessment of realisation of
deferred tax assets			-	(	72,581)
Prior year income tax overestimate	(		2,911)	(	75,048)
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)
Estimated and accrued tax liabilities based on
possible earnings repatriated by the offshore
subsidiaries			649,357		-
Income tax expense		$	1,186,816	$	572,147

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,
	2021	2020
Remeasurement of defined benefit
obligations	($277)	($711)

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

							2021	2021	2021
									Recognised
									in other
					Recognised in			comprehensive
			January1			profit or loss			income		December31
－Deferred tax assets:
Temporary differences:
Provision for market value decline		$	169,793		$	109,173		$	-		$	278,966
and obsolescence of inventories
Unrealised warranty expense			126,310			6,628			-			132,938
Unrealised pension			29,954	(		29,954)			-			-
Unrealised gross profit			22,831			31,039			-			53,870
Unrealised expenses			33,996			21,033			-			55,029
Others			57,588	(		27,450)			-			30,138
Tax losses			112,783			48,455			-			161,238
Subtotal		$	553,255		$	158,924		$	-		$	712,179
－Deferred tax liabilities:
Unrealised pension	($		673)	($		509)		$	277	($		905)
Book-tax difference on	(		137,919)	(		21,563)			-	(		159,482)
machinery and equipment
Others	(		48,868)	(		641,090)			-	(		689,958)
Subtotal	($		187,460)	($		663,162)		$	277	($		850,345)
Total		$	365,795	($		504,238)		$	277	($		138,166)

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2020

								Recognised
								in other
					Recognised in		comprehensive
			January1			profit or loss		income		December31
－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 exchange gain	($		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

• E. The Company did not recognize taxable temporary differences relating to several subsidiaries investment as deferred tax liabilities. As of December 31, 2021 and 2020, the unrecognised deferred tax liabilities were $6,895,939 and $7,178,690, respectively

• F. The Company repatriated reinvestment income arising from offshore reinvestment in accordance with the Management, Utilization, and Taxation of Repatriated Offshore Funds Act for the year ended December 31, 2020. 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. The Company estimated and accrued deferred tax liabilities based on possible earnings repatriated by the offshore subsidiaries amounting to $649,357 for the year ended December 31, 2021.

• H. 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, 2021, the remaining amount of $75,834 was unpaid, among this amount, $50,556 was shown as income tax liabilities, $25,278 was shown as non-current income tax liabilities.

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• I. The Company’s income tax returns through 2019 have been assessed and approved by the Tax Authority.

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

• (35)Earnings per share

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Less:Effects of potential dilutive common shares issued by the investee accounted for under the equity method Assumed conversion of all dilutive potential ordinary shares Employee stock options Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares		Year ended December 31,	Year ended December 31,	Year ended December 31,	2021
		Amount aftertax		Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (indollars)
	4,273,793 $ 4,273,793 4,636) ( - - 4,269,157 $			593,259 593,259 - 9,990 1,433 604,682	7.20 $ 7.06 $

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(36)

Supplemental cash flow information A. Investing activities with partial cash payments Amount aftertax Weighted average number of ordinary shares outstanding (shares in thousands) Earnings per share (indollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent 2,577,039 $ 585,029 4.40 $ 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 4.31 $ Year ended December 31,2020 2021 2020 Purchase of property, plant and equipment 1,293,441 $ 2,115,239 $ Add: Opening balance of payable on machinery and equipment 87,747 69,149 Add: Ending balance of prepayable on machinery and equipment 144,443 140,786 Less: Ending balance of payable on machinery and equipment 64,293) ( 87,747) ( Less: Opening balance of prepayable on machinery and equipment 140,786) ( 323,285) ( Cash paid during the year 1,320,552 $ 1,914,142 $ Years endedDecember31,

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• B. The subsidiary, Hot Link Technology Ltd., sold its held 100% equity interests of the subsidiaries, Pacific Metal Developments Ltd. and Mitac Computer (Shunde) Ltd. and the Company lost its control over those subsidiaries. Information on related assets, liabilities and disposals of those subsidiaries is as follows:

subsidiaries is as follows:
The carrying amount of assets and liabilities of	those subsidiaries.
Cash and cash equivalents	$	538,219
Accounts receivable, net		2,355
Other receivables		238
Investment property, net		231,602
Other payables	(	3,793)
Current tax liabilities	(	1,258)
Guarantee deposits received	(	12,332)
Total net assets	$	755,031
Consideration received-cash	$	2,798,489
Total amount of net assets disposed	(	755,031)
Necessary cost of disposals	(	3,869)
Difference on foreign currency translation
reclassified from equity to profit or loss due to
losing control over subsidiaries		479,035
Gain on disposal of investments	$	2,518,624

(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 Leaseliabilities 2,112,183 $ 610,361 $ 13,071) ( 153,956) ( - 37,120 2,099,112 $ 493,525 $ 2021 2020	Long-term borrowngs Leaseliabilities 2,112,183 $ 610,361 $ 13,071) ( 153,956) ( - 37,120 2,099,112 $ 493,525 $ 2021 2020	Long-term borrowngs Leaseliabilities 2,112,183 $ 610,361 $ 13,071) ( 153,956) ( - 37,120 2,099,112 $ 493,525 $ 2021 2020	Guarantee depositsreceived	Guarantee depositsreceived
	406,768 $ 392,928) ( - 13,840 $					34,735 $ 4,724) ( 12,332) ( 17,679 $
		Short-term borrowngs		Long-term borrowngs	Leaseliabilities		Guarantee depositsreceived
	558,406 $ 151,638) ( - 406,768 $			2,072,889 $ 39,294 - 2,112,183 $	529,817 $ 162,059) ( 242,602 610,360 $		24,128 $ 10,607 - 34,735 $

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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 Europe Ltd.

Mitac Digital Technology Corporation Mitac Logistic Service (KunShan) Ltd.

MiTAC Information Systems (KunShan) Co.,Ltd. MiTAC Investment Holding Ltd.

Waffer Technology Corp. Waffer Technology (Maanshan) Limited Waffer Technology (Kunshan) Ltd. JVP VIII, L.P. Harbinger VIII Venture Capital Corp. 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 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 Substantive related party

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(2)Significant related party transactions

• A. Operating revenue

ficant related party transactions perating revenue
Other related parties Entities having significant influence on the Group Associates	Years endedDecember31,
	2021 154,803 $ 52,374 60 207,237 $	2020
		268,795 $ 64,782 -
		333,577 $

• (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
	Years ended	December 31,
	2021		2020
Other related parties	188,014 $	$	162,219
Entities having significant influence on
the Group	121		135
Associates	69		700
	188,204 $	$	163,054

• (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

Other related parties Entities having significant influence on the Group Associates	December31,2021 29,066 $ 23,444 - 52,510 $	December31,2020 4,914 $ 9,904 628 15,446 $

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(b) Other receivables

Other receivables
Entities having significant influence on the Group Associates Other related parties	December31,2021 1,073 $ 398 315 1,786 $	December31,2020
		82 $ 2,182 3,194
		5,458 $

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

D. Accounts payable

(a) Accounts payable

It mainly refers to receivables for payments on counts payable Accounts payable	behalf of others.
Other payables Other related parties Associates Entities having significant influence on the Group Entities having significant influence on the Group Other related parties Associates	December31,2021 19,502 $ 79 121 19,702 $ December 31, 2021 10,313 $ 3,197 40,406 53,916 $	December31,2020
		45,553 $ 1,739 -
		47,292 $
		December 31, 2020
		15,755 $ 10,123 40,076
		65,954 $

(b) Other payables

Other payables arose from receipts under custody and miscellaneous payable.

• (c) Contract liabilities

Other related party	December31,2021 1,959 $	December31,2020
		1,113 $

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E. Rental income

Rental income
Item Associate-Mitac Computer (Kunshan) Co., Ltd. Office and plant Entities having significant influence on the Group Office and plant Associates Office and plant	Years endedDecember31,
	2021 11,141 $ 422 469 12,032 $	2020
		10,993 $ 416 464
		11,873 $

• F. Property transactions

• (a) Acquisition of property, plant and equipment

perty transactions Acquisition of property, plant and equipment
Other related party Associates Associates-Waffer Technology Corp.	2021 2020 850 $ 14,372 $ 139 - - 1,031,207 989 $ 1,045,579 $ Years ended December31,
		2020
		14,372 $ - 1,031,207
		1,045,579 $

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, 2021, the unpaid amount $40,000 was shown as other payables.

(b) Disposal of property, plant and equipment

Associates Entities having significant influence on the Group		Years endedDecember31,	Years endedDecember31,	Years endedDecember31,	Years endedDecember31,	Years endedDecember31,	Years endedDecember31,	Years endedDecember31,
		Disposal proceeds Gain on disposal - $ - $ 100 100 100 $ 100 $ 2021				2020
		Disposal proceeds				Disposal proceeds		Gain on disposal
		- $ 100 100 $		- $ 100 100 $		4,475 $ - 4,475 $		4,475 $ -
								4,475 $

• G. Acquisition of financial assets

cquisition of financial assets
Associates-Harbinger VIII Venture Capital Corp.	Years endedDecember31,
	2021 37,500 $	2020
		- $

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－ H. 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 on the payment date agreed in the lease agreement.

(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.

(c) Lease liabilities

• i. Ending balance

Lease liabilities i. Ending balance
ii. Interest expense iii. Interest income Other related parties-Lien Hwa Property Development Corporation Entities having significant influence on the Group-Mitac Computer (Kunshan) Co., Ltd. Entities having significant influence on the Group-Mitac International Corp. Total Other related parties Entities having significant influence on the Group Total Other related parties Entities having significant influence on the Group Total	December31,2021 December31,2020 122,613 $ 182,738 $ 33,238 49,306 - 26,293 155,851 $ 258,337 $ Years ended December31,	December31,2020
		182,738 $ 49,306 26,293
		258,337 $
	2021 2020 959 $ 2,395 $ 1,670 2,255 2,629 $ 4,650 $ Years ended December31,	2020
		2,395 $ 2,255
		4,650 $
	2021 74 $ 18 92 $	2020
		95 $ 33
		128 $

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H. Others

Transaction item Entities having significant influence on the Group Other expenses Other related parties Other expenses Associates Other expenses Total	2021 2020 139,837 $ 123,393 $ 31,636 21,355 1,545 245 173,018 $ 144,993 $ Years endedDecember31,

(3)Key management compensation

Key management compensation
Salaries and other short-term employee benefits Termination benefits Total	Years ended December 31,
	2021 2020 130,792 $ 141,416 $ 876 733 131,668 $ 142,149 $

8. PLEDGED ASSETS

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

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

Book value
Pledged asset December 31, 2021 December 31, 2020 Purpose
----- End of picture text -----

Property, plant and equipment
Land	$	1,202,901	$	1,202,901	Long-term loans
Buildings		1,078,197		1,126,266	Long-term loans
Machinery and equipment		194,862		230,338	Long-term loans
Other equipment		42,601		28,596	Long-term loans
Pledged time deposits (shown
as financial assets at
amortised cost-current and
other non-current assets)		10,688		10,968	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. The Company has engaged King & Spalding LLP to handle the case in behalf of Getac.

(2) Commitments

As of December 31, 2021 and 2020, the subsidiary, National Aerospace Fasteners Corporation, has

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outstanding construction and equipment purchase contracts totaling $78,882 and $237,684, of which $43,147 and $87,722 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 objectives.

(2) Financial instruments

A. 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	December31,2021 13,642 $ 870,122 5,785,111 11,569 7,455,200 165,036 40,820 12,827 1,000 715,695 15,071,022 $	December31,2020
		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 $

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

December 31, 2021 December 31, 2020
Financial liabilities
Financial liabilities at fair value through profit
or loss
Financial liabilities held for trading $ 3,009 $ 6,930
Financial liabilities at amortised cost
Short-term borrowings 13,840 406,768
Notes payable - 70
Accounts payable 6,293,450 5,922,501
Other payables 2,998,207 3,158,133
Long-term borrowings (including current
portion) 2,099,112 2,112,183
Refund liability 314,837 492,750
Guarantee deposits received 17,679 34,735
$ 11,740,134 $ 12,134,070
Lease liabilities $ 493,525 $ 610,361
----- End of picture text -----

• 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 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

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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: CNY 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:

==> picture [437 x 107] intentionally omitted <==

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

December 31, 2021
Foreign currency
amount Exchange Book value
(In thousands) rate (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
----- End of picture text -----

Financial assets Monetary items
USD:NTD USD:CNY Financial liabilities Monetary items USD:NTD USD:CNY (Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:CNY Financial liabilities Monetary items USD:NTD USD:CNY	89,655 $ 27.680 2,481,650 $ 364,789 6.3757 10,097,360 100,106 27.680 2,770,934 202,570 6.3757 5,607,138 Foreign currency amount (Inthousands) Exchangerate Book value (NTD) 89,133 $ 28.48 2,538,508 $ 205,807 6.5249 5,861,383 73,513 28.48 2,093,650 141,133 6.5249 4,019,468 December 31,2020
	Foreign currency amount (Inthousands)	Exchangerate
	89,133 $ 205,807 73,513 141,133	28.48 6.5249 28.48 6.5249

iv. Total exchange gain (loss), including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2021 and 2020 amounted to $30,154 and ($89,843), respectively.

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

Year ended December 31, 2021

Sensitivity analysis

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Effect on other
Degree of Effect on profit comprehensive
variation or loss income
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD:NTD 1% $ 24,817 $ -
USD:CNY 1% 100,974 -
Financial liabilities
Monetary items
USD:NTD 1% 27,709 -
USD:CNY 1% 56,071 -
Year ended December 31, 2020
Sensitivity analysis
Effect on other
Degree of Effect on profit comprehensive
variation or loss income
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD:NTD 1% $ 25,385 $ -
USD:CNY 1% 58,614 -
Financial liabilities
Monetary items
USD:NTD 1% 20,937 -
USD:CNY 1% 40,195 -
----- End of picture text -----

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, 2021 and 2020 would have increased/decreased by $8,701 and $7,416, respectively, as a

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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, 2021 and 2020, 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 amortized 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, 2021 and 2020 would have been $4,198 and $4,224 lower/higher, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

• (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 analyze 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:

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• (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, 2021 and 2020, the Group’s written-off financial assets that are still under recourse procedures amounted to $0.

• vii. The Group used the forecast to adjust historical and timely information to assess the default possibility of accounts receivable. On December 31, 2021 and 2020, the loss rate methodology is as follows:

rate methodology is	s	as follows:
December 31, 2021 Expected loss rate Total book value Loss allowance December 31, 2020		Not past due		1~90 days past due		91~180 days past due		Over 180 days past due 0~100% 345 $ 345 $ Over 180 days past due 0~100% 118 $ 116 $	Total
		0%~0.03% 7,226,061 $ 6,929 $ Not past due		0%~0.50% 231,674 $ 3,480 $ 1~90 days past due		0~100% 9,909 $ 2,034 $ 91~180 days past due			7,467,989 $
									12,788 $
									Total
		0%~0.03% 7,297,179 $ 7,351 $		0%~0.50% 227,951 $ 4,238 $		0~100% 1,334 $ 1,255 $			7,526,582 $
Expected loss rate Total book value Loss allowance
									12,960 $

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

2021

			2021
			Accountsreceivable
At January 1		$	12,960
Reversal of impairment loss	(		171)
At December 31		$	12,789

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		2020
		Accountsreceivable
At January 1	$	14,996
Reversal of impairment loss	($	2,036)
At December 31	$	12,960

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

Non-derivative financial liabilities:

December31,2021	Less than 1 year	Between 1 and 2years	Between 2 and5 years - $ - - - 751,305 - 118,847 Between 2 and5 years	Over5 years
Short-term borrowings Accounts payable Other payables Refund liability Long-term borrowings (including current portion) Other financial liabilities Lease liabilities December31,2020	13,840 $ 6,293,450 2,998,207 314,837 302,172 17,679 157,945 Less than 1 year	- $ - - - 398,212 - 149,677 Between 1 and 2years		- $ - - - 754,899 - 74,638 Over5 years
Derivative financial liabilities: Short-term borrowings Notes payable Accounts payable Other payables Refund liability Long-term borrowings (including current portion) Other financial liabilities Lease liabilities December31,2021	406,768 $ 70 5,922,501 3,158,133 492,750 200,529 22,323 159,063 Less than 1 year	- $ - - - - 294,117 - 150,100 Between 1 and 2years	- $ - - - - 877,138 6,597 189,448 Between 2 and5 years	- $ - - - - 867,292 5,815 142,181 Over5 years
Forward exchange contracts	3,009 $	- $	- $	- $

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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 $ - $ - $ -

• 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 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.

~99~

• 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, 2021 and 2020 is as follows:

December31,2021 Financial assets: Financial assets at fair value through profit or loss Forward exchange contracts Financial assets at fair value through other comprehensive income Equity securities Total Financial liabilities: Financial liabilities at fair value through profit or loss Forward exchange contracts December31,2020 Financial assets: Financial assets at fair value through profit or loss Forward exchange contracts Financial assets at fair value through other comprehensive income Equity securities Total Financial liabilities: Financial liabilities at fair value through profit or loss Forward exchange contracts	Level 1 - $ 518,819 518,819 $ - $ Level 1 - $ 434,805 434,805 $ - $	Level 2 13,642 $ - 13,642 $ 3,009 $ Level 2 63,883 $ - 63,883 $ 6,930 $	Level3 - $ 351,303 351,303 $ - $ Level3 - $ 306,812 306,812 $ - $	Total 13,642 $ 870,122
				883,764 $
				3,009 $
				Total
				63,883 $ 741,617
				805,500 $
				6,930 $

• 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

~100~

are normally observable in the market.

• F. For the years ended December 31, 2021 and 2020, 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, 2021 and 2020:

			Equity securities
			2021
January 1, 2021		$	306,812
Acquired in the year			55,439
Settled in the year	(		21,932)
Gain recognised in other comprehensive income			10,984
December 31, 2021		$	351,303
			Equity securities
			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

• H. Investment segment is in charge of valuation procedures for fair value measurements being categorized 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	Fair value at December 31, 2021	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fairvalue
	351,303 $	Net asset value	Net asset value	-	The higher the net asset value, the higher the fair value

~101~

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

• (4) Impact of the COVID 19 pandemic on the operation of the Group for the year of 2021

• 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, 2020. 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.

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: Please refer to table 4.

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

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

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

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

• I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Notes 6(2) 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.

~102~

(4) Major shareholders information

Major shareholders information: Please refer to table 10.

~103~

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, 2021 and 2020 is as follows:

Year ended December 31, 2021

			Electronic parts			Structure parts			Aerospacefasteners			Consolidation
Revenue from external customers		$	13,527,185		$	15,130,736		$	1,426,205		$	30,084,126
Segment income (loss)		$	1,560,147		$	2,799,749	($		96,704)		$	4,263,192
Segment income (loss), including:
Interest income		$	10,262		$	22,103		$	1,019		$	33,384
Interest expense	(		1,143)	(		17,062)	(		24,986)	(		43,191)
Depreciation and amortisation	(		349,376)	(		599,055)	(		266,698)	(		1,215,129)
Investment income or loss accounted
for under the equity method			70,518			-			-			70,518
Income tax expense	(		329,216)	(		866,234)			8,634	(		1,186,816)

~104~

Year ended December 31, 2020

			Electronic parts			Structure parts			Aerospacefasteners			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)

~105~

(4) Geographical information

Geographical information for the years ended December 31, 2021 and 2020 is as follows:

follows:
China America Europe Others China Taiwan Vietnam Others	$ $	2021 2020 13,424,482 10,214,451 $ 8,403,146 7,983,578 3,390,760 3,825,255 4,865,738 5,814,459 30,084,126 27,837,743 $ Years endedDecember31 Revenuefromexternalcustomers Non-current assets
		December 31,
		2021 4,214,328 $ 4,329,576 1,517,825 648,561 10,710,290 $	2020
			4,308,793 $ 4,541,132 1,424,120 652,700
			10,926,745 $

(5) Information on products

Information on products
Electronic parts Structure parts Aerospace fasteners	2021 13,527,185 $ 15,130,736 1,426,205 30,084,126 $	2020
		12,811,509 $ 13,322,203 1,704,031
		27,837,743 $

(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, 2021 and 2020:

consolidated statements of comprehensive income for 2021 and 2020:	the years ended December 31,
Customer Customer O Customer M Customer L Customer Customer L Customer O	YearendedDecember31,2021
	4,874,778 $
	3,808,713 $
	3,805,461 $
	Year ended December31,2020
	4,189,615 $
	3,785,712 $

~106~

Getac Holdings Corp. and Subsidiaries

Table 1

Loans to others Year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2021	Balance at December 31, 2021 （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
0 1 1 2 2 2 2 2 2 2 2 3 4 4 5 5	Getac Holdings Corporation Pacific Royale Ltd. Pacific Royale 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. 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.	Fong Guan Investments Ltd. Mitac Precision Developments Ltd. Fong Guan Investments Ltd. Mitac Precision Developments Ltd. MPT Solution (HK) Limited Getac Precision Technologies (Hong Kong) Ltd. Getac Technology Corp. Atemitech Corporation Getac Precision Technology Vietnam Co., Ltd. Getac Technology (Kunshan) Co., Ltd. Getac Holdings Corporation Mitac Precision Developments Ltd. Hot Link Technology Ltd. Pacific Royale Ltd. Getac Precision Technology Vietnam Co., Ltd. MPT Solution (Vietnam) Company Limited	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	40,000 $ 369,528 3,000 1,275,988 1,398,000 279,600 553,600 692,000 556,000 838,800 1,118,400 908,840 260,028 56,960 1,658,400 856,050	40,000 $ 358,456 3,000 - 1,384,000 276,800 553,600 692,000 553,600 830,400 968,800 - 157,776 - 830,400 830,400	40,000 $ 358,456 3,000 - 736,288 276,800 553,600 553,600 415,200 830,400 415,200 - 157,222 - 631,104 509,312	0.75% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%	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	- $ - - - - - - -	None None None None None None None None None None None None None None None None	- $ - - - - - - - - - - - - - - -	45,998 $ 4,270,083 1,138,689 18,342,281 18,342,281 18,342,281 4,891,275 4,891,275 18,342,281 18,342,281 18,342,281 2,407,723 1,354,728 1,354,728 3,879,712 3,879,712	3,644,494 $ 4,270,083 1,138,689 18,342,281 18,342,281 18,342,281 4,891,275 4,891,275 18,342,281 18,342,281 18,342,281 2,407,723 1,354,728 1,354,728 3,879,712 3,879,712

Table 1, Page 1

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2021	Balance at December 31, 2021 （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
6 7 7 8 9 9 10 10 10 11 12	Talent View Ltd. Mitac Computer (Shunde) Ltd. Mitac Computer (Shunde) Ltd. WHP Workflow Solutions,Inc. Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Getac Inc. Getac Inc. Getac Inc. Getac Technology Corp. National Aerospace Fasteners Corporation	Mitac Precision Developments Ltd. Getac Technology (Kunshan) Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Getac Video Solutions Inc. Getac Technology (Kunshan) Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Getac Holdings Corporation Getac Video Solutions Inc. Getac Technology Corp. Fong Guan Investments Ltd. Suzhou Nation Precision Ltd.	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	482,242 $ 241,303 241,303 41,940 271,083 283,255 285,350 250,290 139,050 56,000 146,955	- $ - - - 262,960 282,196 - 249,120 - - 96,880	- $ - - - 262,960 282,196 - 249,120 - - 96,880	0.0% 0.0% 0.0% 0.0% 1.0% 2.0% 0.0% 2.5% 0.0% 0.0% 1.0%	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	- $ - - - - - - -	None None None None None None None None None None None	- $ - - - - - - - - - -	40 $ 1,115,425 297,447 63,862 5,639,381 1,503,835 702,980 702,980 187,461 713,725 354,840	40 $ 1,115,425 297,447 63,862 5,639,381 1,503,835 702,980 702,980 187,461 713,725 354,840

Table 1, Page 2

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) Getac Holdings Corporation has policy of maximum loans to others: (a) Short-term financing : (i) The total borrowing amount should not be higher than 20% of the net assets on the latest financial statements audited or reviewed by independent auditors. (ii)The borrowing amount for each borrowing company should not be higher than 30% 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. Note(2) 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:(3) Getac Technology 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:(4) 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. (5) National Aerospace Fasteners Corporation has policy of maximum loans to others: 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, 2021. Note 4:Amount as resolved by the Board of Directors.

Table 1, Page 3

Getac Holdings Corp. and Subsidiaries

Provision of endorsements and guarantees to others

Year ended December 31, 2021

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, 2021	Outstanding endorsement/ guarantee amount at December 31, 2021	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 Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation 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	9,111,235 $ 9,111,235 9,111,235 887,099	8,561 $ 14,268 434,248 149,809	8,304 $ 13,840 388,368 128,712	8,304 $ 13,840 377,294 -	- - - -	0.05 0.08 2.13 7.25	$ 9,111,235 9,111,235 9,111,235 887,099	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 Holdings Corp. and Subsidiaries

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

Year ended December 31, 2021

			Year ended December 31, 2021
Table 3 Securitiesheld by	Marketable securities	Securities	Relationship with the securitiesissuer	General ledgeraccount		Expressed in thousands of NTD (Except as otherwise indicated) As of December31,2021			Note
					Numberofshares	Bookvalue	Ownership (%)	Fairvalue
Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation 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 Substantive related party None None Substantive related party 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 3,213,811 8,338,028 1 - 11,250,000 4,439,182 1,179,630 700,000 20,307	362,560 $ 46,327 109,880 2,400 82,341 110,355 156,260 - - -	0.85% 13.28% 9.39% 0.12% 1.16% 11.57% 0.37% 7.41% 0.51% 2.75%	362,560 $ 46,327 109,880 2,400 82,341 110,355 156,260 - - -	Abolished Closed

Table 3, Page 1

Getac Holdings Corp. and Subsidiaries

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

Year ended December 31, 2021

Table 4 Investor	Marketable securities	General ledger account	Counterparty	Relationship with the investor	Balance as at January1,2021	Balance as at January1,2021	Addition(Note)	Addition(Note)		Disposal	Disposal		(Except as otherwise indicated) Expressed in thousands of NTD Balance as at December 31, 2021	(Except as otherwise indicated) Expressed in thousands of NTD Balance as at December 31, 2021
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Getac Holdings Corporation	Getac Technology Corp.	Investments accounted for under equity method	Getac Technology Corp.	The Company's subsidiary	41,100,000	$ 257,217	82,334,000	$ 1,235,010	-	$ -	$ -	$ -	123,434,000	$ 1,784,315

Note: Including the capital increase and the spin-off and transfer transaction.

Table 4, Page 1

Getac Holdings 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, 2021

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 Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation 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. MPT Solution(HK) Limited Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Inc.	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. MPT Solution(HK) Limited Synnex Technology International Corp. Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Inc. Getac Technology GmbH Getac Video Solutions Inc. Getac Technology (Kunshan) Co., Ltd. Getac Technology Corp.	The Company's subsidiary The Company's subsidiary The Company's subsidiary The Company's subsidiary The Company's subsidiary The Company's subsidiary The Company's subsidiary The Company's subsidiary Substantive related party Ultimate parent entity Ultimate parent entity Ultimate parent entity Ultimate parent entity Ultimate parent entity Ultimate parent entity Ultimate parent entity Ultimate parent entity The Company's subsidiary The Company's subsidiary The Company's subsidiary The Company's subsidiary Parent company	Sales Sales Sales Sales Sales Sales Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Sales Sales Sales Sales Sales Purchases Purchases	3,901,748 $ 351,683 460,265 405,095 210,511 179,297 990,926 354,971 178,631 3,901,748 351,683 460,265 405,095 210,511 179,297 990,926 354,971 1,214,011 145,169 179,941 849,387 1,214,011	42% 4% 5% 4% 2% 2% 20% 7% 4% 74% 78% 78% 57% 54% 39% 48% 6% 54% 6% 8% 62% 23%	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 1 Note 1 Note 1 Note 1 Note 1 Note 3 Note 3	Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 5 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 5 Note 2 Note 2 Note 2 Note 2 Note 5 Note 4	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 1 Note 1 Note 1 Note 1 Note 1 Note 3 Note 3	- $ - - - - - - - - - - - - - - - - 186,022 35,409 167,473 2,795,750) ( 186,022) (	0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 24% 5% 22% 81% 100%

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)
Getac Technology GmbH Getac Video Solutions INC. Getac Technology (Kunshan) Co., Ltd. Atemitech Corporation Atemitech Corporation Mitac Technology(Kyoto) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. MPT Solution(HK) Limited Atemitech Corporation Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Developments Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. MPT Solution(HK) Limited Suzhou Mitac Precision Technology Co., Ltd. MPT Solution(HK) Limited MPT Solution (Vietnam) Company Limited	Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Mitac Technology(Kyoto) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. Atemitech Corporation Atemitech Corporation Atemitech Corporation MPT Solution(HK) Limited Mitac Precision Developments Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. MPT Solution(HK) Limited Mitac Precision Technology (Kunshan) Co., Ltd. MPT Solution(HK) Limited Suzhou Mitac Precision Technology Co., Ltd. MPT Solution(HK) Limited	Parent company Parent 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	Purchases Purchases Sales Sales Purchases Purchases Sales Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales	145,169 $ 179,941 849,387 125,939 245,482 125,939 245,482 112,196 112,196 407,483 407,483 5,561,728 5,561,728 1,543,376 1,543,376 224,809	25% 39% 41% 12% 29% 18% 12% 2% 13% 5% 76% 63% 72% 33% 25% 14%	Note 3 Note 3 Note 1 Note 1 Note 3 Note 3 Note 1 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1	Note 4 Note 4 Note 5 Note 2 Note 4 Note 4 Note 2 Note 1 Note 3 Note 1 Note 3 Note 2 Note 4 Note 2 Note 4 Note 2	Note 3 Note 3 Note 1 Note 1 Note 3 Note 3 Note 1 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1 Note 3 Note 1	($35,409) 167,473) ( 2,795,750 22,880 351,671) ( 22,880) ( 351,671 160,319 160,319) ( 5,473 5,473) ( 2,861,982 2,861,982) ( 520,716 520,716) ( 33,795	100% 93% 86% 3% 37% 50% 49% 6% 17% 0% 0% 67% 85% 33% 15% 10%

Table 5, Page 2

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)
MPT Solution(HK) Limited Getac Precision Technology (ChangShu) Co., Ltd. Getac Precision (HK) Limited Getac Precision Technology Vietnam Co., Ltd. Mitac Precision Developments Ltd. Getac Precision Technology Vietnam Co., Ltd. Getac Precision (HK) Limited Mitac Precision Technology (Kunshan) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. MPT Solution (Vietnam) Company Limited Getac Precision Technology Vietnam Co., Ltd. MPT Solution(HK) Limited Mitac Technology(Kyoto) Co., Ltd. MPT Solution(HK) Limited Suzhou Mitac Precision Technology Co., Ltd. Getac Precision (HK) Limited Getac Precision Technology (ChangShu) Co., Ltd. Suzhou Nafco Precision Ltd.	MPT Solution (Vietnam) Company Limited Getac Precision (HK) Limited Getac Precision Technology (ChangShu) Co., Ltd. Mitac Precision Developments Ltd. Getac Precision Technology Vietnam Co., Ltd. Getac Precision (HK) Limited Getac Precision Technology Vietnam Co., 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. MPT Solution (Vietnam) Company Limited Mitac Technology(Kyoto) Co., Ltd. MPT Solution(HK) Limited Suzhou Mitac Precision Technology Co., Ltd. MPT Solution(HK) Limited Getac Precision Technology (ChangShu) Co., Ltd. Getac Precision (HK) Limited National Aerospace Fasteners Corporation	Affiliated company Parent company The Company's subsidiary Affiliated company Affiliated company Parent company The Company's subsidiary 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 direct wholly-owned subsidiary	Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales	224,809 $ 465,575 465,575 130,654 130,654 1,162,486 1,162,486 158,289 158,289 414,125 414,125 151,529 151,529 136,641 136,641 188,126 188,126 191,681 191,681 133,690	4% 35% 28% 9% 24% 82% 70% 2% 2% 9% 8% 10% 15% 2% 19% 3% 6% 11% 23% 48%	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 1 Note 3 Note 1	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 2 Note 4 Note 2	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 1 Note 3 Note 1	($33,795) 251,876 251,876) ( - - 227,352 227,352) ( 38,486 38,486) ( 151,613 151,613) ( 42,517 42,517) ( 21,253 21,253) ( 51,182 51,182) ( 160,809 160,809) ( 49,877	1% 45% 47% 0% 0% 88% 43% 1% 2% 10% 5% 13% 35% 1% 46% 2% 4% 31% 37% 54%

Table 5, Page 3

Expressed in thousands of NTD

Differences in transaction terms compared to third party

									Expressed in thousands of NTD	Expressed in thousands of NTD
Purchaser/seller	Counterparty	Relationship withthe counterparty		Transaction			Differences in transaction terms compared to third party transactions		Notes/accountsreceivable (payable) (Except as otherwise indicated)
			Purchases / Sales	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
National Aerospace Fasteners Corporation	Suzhou Nafco Precision Ltd.	Suzhou Nafco Precision Ltd. ’s parent company	Purchases	133,690 $	26%	Note 3	Note 4	Note 3	($49,877)	29%

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 4

Getac Holdings Corp. and Subsidiaries

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

Year ended December 31, 2021

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at Deceember31,2021	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Getac Technology Corp. Getac Technology Corp. Getac Technology (Kunshan) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. MPT Solution(HK) Limited Getac Precision Technologies (Hong Kong) Limited Mitac Precision Technology (Kunshan) Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Getac Precision Technology (ChangShu) Co., Ltd. Getac Precision Technology Vietnam Co., Ltd.	Getac Inc. Getac Video Solutions INC. Getac Technology Corp.(Note) Atemitech Corporation(Note) Atemitech Corporation Getac Precision Technology (ChangShu) Co., Ltd. MPT Solution(HK) Limited MPT Solution(HK) Limited Mitac Precision Technology (Kunshan) Co., Ltd. Getac Precision (HK) Limited Getac Precision (HK) Limited	The Company's subsidiary The Company's subsidiary Affiliated company Affiliated company Affiliated company The Company's subsidiary Affiliated company Affiliated company Affiliated company Parent company Parent company	186,022 $ 167,473 2,795,750 351,671 160,319 160,809 2,861,982 520,716 151,613 251,876 227,352	13.05 2.15 0.9 4.12 1.4 2.38 3.89 5.93 3.77 2.46 6.82	- $ - - - - - - - - - -	- - - - - - - - - - -	137,371 $ - 143,650 138,400 - 8,993 387,520 - 9,490 41,679 -	- - - - - - - - - - -

Note:Getac Technology Corp. and Atemitech Corporation transaction with Getac Technology (Kunshan) Co., Ltd. are processing service, which is presented as sales, net.

Table 6, Page 1

Getac Holdings Corp. and Subsidiaries Significant inter-company transactions during the reporting period Year ended December 31, 2021

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(Note3)
0 0 0 0 0 0 1 1 1 1 1 2 3 3 4 4 4 5 5 6 6 6 6 6 7 7 8 8 8 8 8 9 9 9	Getac Holdings Corp. Getac Holdings Corp. Getac Holdings Corp. Getac Holdings Corp. Getac Holdings Corp. Getac Holdings Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Atemitech Corporation Getac Precision (HK) Limited Getac Precision (HK) Limited Getac Precision Technology Vietnam Co., Ltd. Getac Precision Technology Vietnam Co., Ltd. Getac Precision Technology Vietnam Co., Ltd. MPT Solution (Vietnam) Company Limited MPT Solution (Vietnam) Company Limited MPT Solution(HK) Limited MPT Solution(HK) Limited MPT Solution(HK) Limited MPT Solution(HK) Limited MPT Solution(HK) Limited Getac Precision Technology (ChangShu) Co., Ltd. Getac Precision Technology (ChangShu) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. Getac Technology (Kunshan) Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd.	Getac Inc. Getac (UK) Ltd. Getac Technology GmbH Mitac Technology (Kyoto) Co., Ltd. Getac (SuZhou) Mobile Ltd. Getac Video Solutions Inc. Getac Inc. Getac Technology GmbH Getac Video Solutions INC. Getac Inc. Getac Video Solutions INC. Mitac Technology(Kyoto) Co., Ltd. Getac Precision Technology (ChangShu) Co., Ltd. Getac Precision Technology (ChangShu) Co., Ltd. Mitac Precision Developments Ltd. Getac Precision (HK) Limited Getac Precision (HK) Limited MPT Solution(HK) Limited Getac Precision Technology Vietnam Co., Ltd. Getac Holdings Corp. Mitac Technology(Kyoto) Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Atemitech Corporation Atemitech Corporation Getac Precision (HK) Limited Getac Precision (HK) Limited Getac Holdings Corp. Getac Technology Corp. Atemitech Corporation Getac Technology Corp. Atemitech Corporation Mitac Precision Developments Ltd. MPT Solution(HK) Limited Getac Technology (Kunshan) Co., Ltd.	1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Sales Sales Sales Sales Sales Sales Sales Sales Sales Accounts receivable Accounts receivable Sales Sales Accounts receivable Sales Sales Accounts receivable Sales Sales Sales Sales Sales Sales Accounts receivable Sales Accounts receivable Sales Sales Sales Accounts receivable Accounts receivable Sales Sales Sales	3,901,748 $ 351,683 460,265 405,095 210,511 179,297 1,214,011 145,169 179,941 186,022 167,473 125,939 191,681 160,809 130,654 1,162,486 227,352 224,809 151,529 354,971 136,641 188,126 112,196 160,319 465,575 251,876 990,926 849,387 245,482 2,795,750 351,671 407,483 5,561,728 158,289	Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 5 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4	13% 1% 2% 1% 1% 1% 4% 0% 1% 1% 0% 0% 1% 0% 0% 4% 1% 1% 1% 1% 0% 1% 0% 0% 2% 1% 3% 3% 1% 8% 1% 1% 18% 1%

Table 7, Page 1

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)			Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note3)
9 9 9 10 10 10 10 11 12 12 12 12 12 12 12 13 14 14 15 16	Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Technology (Kunshan) Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. Pacific Royale 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. Hot Link Technology Ltd. ACE Continental Industries Ltd. Mitac Precision Developments Ltd. Mitac Precision Developments Ltd. Getac Inc. Suzhou Nafco Precision Ltd.	Getac Technology (Kunshan) Co., Ltd. Suzhou Mitac Precision Technology Co., Ltd. MPT Solution(HK) Limited MPT Solution(HK) Limited Mitac Precision Technology (Kunshan) Co., Ltd. MPT Solution(HK) Limited Mitac Precision Technology (Kunshan) Co., Ltd. Mitac Precision Developments Ltd. MPT Solution (HK) Limited Getac Precision (HK) Limited Getac Technology Corp. Atemitech Corporation Getac Precision Technology Vietnam Co., Ltd. Getac Technology (Kunshan) Co., Ltd. Getac Holdings Corp. Hot Link Technology Ltd. Getac Precision Technology Vietnam Co., Ltd. MPT Solution (Vietnam) Company Limited Getac Video Solutions Inc. National Aerospace Fasteners Corporation	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2	Other receivables Other receivables Accounts receivable Sales Sales Accounts receivable Accounts receivable Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Sales	262,960 $ 282,196 2,861,982 1,543,376 414,125 520,716 151,613 358,456 736,288 276,800 553,600 553,600 415,200 830,400 415,200 157,222 631,104 509,312 249,120 133,690	Operation Operation Note 4 Note 4 Note 4 Note 4 Note 4 Operation Operation Operation Operation Operation Operation Operation Operation Operation Operation Operation Operation Note 4	1% 1% 8% 5% 1% 1% 0% 1% 2% 1% 2% 2% 1% 2% 1% 0% 2% 1% 1% 0%

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 revenue. 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.

Table 7, Page 2

Table 8

Getac Holdings Corp. and Subsidiaries

Information on investees (not including investees in Mainland China)

Year ended December 31, 2021

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December	Shares held as at December	31,2021	Net profit (loss) of the investee for the year ended December 31, 2021	Investment income (loss) recognised by the Company for the year ended December 31,2021	Footnote
				Balance as at December 31, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation	Pacific Royale Ltd. Lian Jie Investment Co., Ltd. Getac Technology Corporation Hot Link Technology Ltd. Waffer Technology Corp. Atemitech 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	1,281,850 $ 113,056 1,146,000 3,628,378 496,228 79,091 200,500 394,919	1,752,325 $ 113,056 411,000 3,628,378 496,228 100 200,500 394,919	37,220,869 11,305,650 123,434,000 110,776,211 40,522,289 7,191,000 20,050,000 20,578,174	100 49.98 100 100 23.43 100 100 39.09	2,851,361 $ 248,023 1,784,315 12,200,740 476,319 173,310 153,268 724,401	$116,701 1,775) ( 279,055 3,429,817 164,735 93,504 19,549 96,729) (	$116,701 887) ( 279,055 3,429,817 41,579 93,504 19,549 37,811) (	Note 1 Note 5

Table 8, Page 1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December	Shares held as at December	31,2021	Net profit (loss) of the investee for the year ended December 31, 2021	Investment income (loss) recognised by the Company for the year ended December 31,2021	Footnote
				Balance as at December 31, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Getac Holdings Corporation Getac Holdings Corporation Getac Holdings Corporation Fong Guan Investments Ltd. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp. Getac Technology Corp.	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 - 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 - 20,000,000 5,000 92 1,600,000 350,000 1	48.56 48.75 - 11.57 - - 100 100 100	64,922 $ 59,834 - 205,027 69 2 467,400 31,522 56,833	$20,369 414) ( 4,848 164,735 164,735 96,729) ( 144,891 3,536 9,314	$9,891 202) ( 5,457) ( - - - - - -	Note 9 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	Shares held as at December	31,2021	Net profit (loss) of the investee for the year ended December 31, 2021	Investment income (loss) recognised by the Company for the year ended December 31,2021	Footnote
				Balance as at December 31, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Getac Technology Corp. Getac Technology Corp. 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. WHP Workflow Solutions, Inc. Integration Technology Ltd. Master China Ltd. Talent View Ltd. Victory Star Developments Ltd. Harbinger Ruyi Venture Limited Harbinger Ruyi II Venture Limited WHP Workflow Solutions, Inc. Master China Ltd. Pacific Metal Developments Ltd.	U.S.A. U.S.A. 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) Software design and development Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Software design and development Investment holdings Investment holdings and trading	29,640 $ 478,651 63,395 427,367 536,601 327,580 31,520 49,320 79,381 571,813 -	29,640 $ - 63,395 427,367 536,601 327,580 31,520 49,320 79,381 571,813 1,287,555	1,000,000 314,600 2,000,001 13,550,000 17,000,001 9,900,001 1,000,000 15,000 77,179 9,900,001 -	100 80.30 100 - 100 100 28.57 48.39 19.70 100 -	($389,811) 453,253 66,146 375,064 19 1,632,960 18,385 107,375 100,806 3,385,365 -	($141,359) 4,848 1,223) ( 505,534 1 117,084 41 781) ( 4,848 505,534 15,826	- - - - - - - - - - -	Note 2 Note 9 Preferred stock
											The investee was disposed in June 2021.

Table 8, Page 3

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December	Shares held as at December	31,2021	Net profit (loss) of the investee for the year ended December 31, 2021	Investment income (loss) recognised by the Company for the year ended December 31,2021	Footnote
				Balance as at December 31, 2021	Balance as at December 31, 2020	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. Hot Link Technology Ltd. Getac Precision (HK) Limited ACE Continental Industries Ltd.	Mainpower International Ltd. ACE Continental Industries Ltd. Bellingham Investments Ltd. Getac Precision (HK) Limited Mitac Technology Kyoto Corporation Mitac Precision Developments Ltd. MPT Solution(HK) Limited Running Power Ltd. Mass Bridge Ltd. MPT Solution (Vietnam) Company Limited	British Virgin Islands British Virgin Islands Samoa H.K Japan British Virgin Islands H.K British Virgin Islands 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 Investment holdings Manufacture of printer and its components, DVD, cell phone, digital camera and PCB	1,147,343 $ 648,709 143,264 714,215 32,290 599,800 279,798 29,490 177,529 648,709	1,147,343 $ 648,709 143,264 714,215 32,290 599,800 598 29,490 177,529 648,709	35,912,843 20,000,001 1 22,172,911 1,800 20,000,001 10,020,000 1,000,001 5,500,001 N/A	86.72 100 100 100 100 100 100 100 100 100	$1,687,992 903,152 2,161 1,541,295 26,156 775,942 282,501 - 264,496 745,735	$147,317 220,995 62 11,881) ( 5,323 43,361 5,169 - 99,789 220,973	- - - - - - - - - -	Note 3、10 Note 4 Note 8 Note 3 Note 6

Table 8, Page 4

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December	Shares held as at December	31,2021	Net profit (loss) of the investee for the year ended December 31, 2021	Investment income (loss) recognised by the Company for the year ended December 31,2021	Footnote
				Balance as at December 31, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
MPT Solution (Vietnam) Company Limited Mass Bridge Ltd. National Aerospace Fasteners Corporation Nafco Group Ltd.	MPT Solution (Hanoi) Company Limited 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	100 100 100 100	4,797 $ 263,260 331,788 330,024	($176) 99,788 65,088) ( 65,088) (	- - - -	Note 7

Note 1:In October 2021, Getac Corporation was rename as Getac Technology Corporation.

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. Note 4:Mitac Solution (HK) Limited is renamed to MPT Solution (HK) Limited in the third quarter of 2020. Note 5:Mitac Precision Technology Corporation is renamed to Atemitech Corporation in the second quarter of 2021. Note 6:Mitac Precision Technology Vietnam Co.,Ltd. is renamed to MPT Solution (Vietnam) Company Limited in the second quarter of 2021. Note 7:Mitac Precision Technology (HA NOI) Co.,Ltd. is renamed to MPT Solution (Hanoi) Company Limited in the second quarter of 2021. Note 8:After the reorganisation in the first quarter of 2021, Hot Link Technology Ltd. held 100% shares of Running Power Ltd. which was originally held by Pacific Royale Ltd. Note 9:On October 1, 2021, Getac Holdings Corporation split and transferred its equity interests of WHP Workflow Solutions, Inc. to Getac Technology Corporation. Note 10:In January 2022, Getac Precision Technologies (Hong Kong) Limited was renamed as Getac Precision (HK) Limited.

Table 8, Page 5

Getac Holdings Corp. and Subsidiaries

Information on investments in Mainland China

Table 9

Year ended December 31, 2021

Expressed in thousands of NTD

A. Investee in Mainland China, main business activities and related information:

(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, 2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2021	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2021 （Note3）	Net income of investee for the year ended December 31, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for year ended December 31, 2021 （Note 2）	Book value of investments in Mainland China as of December 31,2021	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2021	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 Not applicable	3 $ 327,580 3 652,267 Not applicable 957,846		$ - - -	$ - - -	$ 327,580 652,267 957,846	$ 117,084 505,534 11,642	100 100 -	$ 117,084 505,534 11,642	$ 1,632,826 3,759,648 -	$ - - -	Note 4

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, 2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2021	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2021 （Note3）	Net income of investee for the year ended December 31, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for year ended December 31, 2021 （Note 2）	Book value of investments in Mainland China as of December 31,2021	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2021	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 -	$ 176,069 1,236) ( 2,453 104,275) (	72.56 100 100 100	$ 127,756 1,236) ( 2,453 104,275) (	$ 1,689,355 29,969 33,532 1,253,875	$ - - 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, 2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2021	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2021 （Note3）	Net income of investee for the year ended December 31, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for year ended December 31, 2021 （Note 2）	Book value of investments in Mainland China as of December 31,2021	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2021	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Suzhou Nafco Precision Ltd. MPT Solution (Xiangcheng) Co., Ltd.	Production of components for airplane and engine use Forging manufacturing and sales	405,897 $ 6,438	3 3	$ 405,897 -	$ - -	$ - -	$ 405,897 -	($65,088) 2	100 100	($65,088) 2	$ 330,024 6,515	$ - -	Note 5

B. Ceiling on investments in Mainland China:

Accumulated amount of remittance from

	Accumulated amount of remittance from
Companyname	Taiwan to Mainland China as of December31,2021	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.(formerly Getac Corporation) National Aerospace Fasteners Corporation Getac Holdings Corporation(formerly Getac Technology Corporation)	4,781 2,489,238 $ 405,897	29,748 3,388,079 $ 359,840	1,070,588 10,933,482 $ 1,064,519

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.,

Suzhou Mitac Precision Technology Co., Ltd., Getac Precision Metallic Technologies (ChangShu) Ltd. and MPT Solution(Xiangcheng) Co.,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.

Table 9, Page 3

• (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., Suzhou Mitac Precision Technology 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. Note 4: The investee was disposed in June 2021.

Note 5: The investee was newly established in the third quarter of 2021.

Getac Holdings Corp. and Subsidiaries Major shareholders information Year ended December 31, 2021

Table 10

Name of major shareholders	Shares	Shares
	Name of shares held	Ownership (%)
Mitac International Corp.	190,396,939	31.86%

Table 10 , Page 1